Enda Kenny (Mayo, Fine Gael)

I thank the Taoiseach for his commendation of Deputy Barrett. I am sure the Deputy will fulfil his duties with his usual high level of dedication and commitment.

This was an important meeting that the Taoiseach attended as Head of Government on 17 June. I already referred during Questions to the Taoiseach to the five main headlines that were referred to by the Heads of Government, namely, research and development, job creation, reduction of greenhouse gas emissions, the importance of education as we face the future, and promoting social inclusion. The Taoiseach remarked in his contribution that some have sought to suggest that the European Union's involvement in the budgetary process would represent a loss of sovereignty. I am pleased that matter has been cleared up.

The presentation and preparation of the budget by the Government, in the context of what we discussed this morning, would be very helpful. An examination of the most pressing issues facing the Government, including the amount of money to be taken out of the economy, cutbacks, the priorities to be accorded to different Votes and so on, would be helpful to the Minister for Finance in the preparation of his budget. In terms of Europe's involvement in looking at Ireland's budgetary proposals, there should be an interaction not only with the Government but with the Parliament. The European Parliament has gained in importance in terms of its co-decision making capacity with the Council of Ministers. Europe's assessment of our Government's budgetary proposals should be made available to the House as well as the Government.

The reaction from the Government must be to put our own house in order. The OECD report indicates a stark situation where 370,000 jobs may be lost in a four-year period. If we add to that the numbers who have left and who will leave because of difficult economic circumstances, it makes for a very difficult position. The FÁS report on the labour market indicated a loss of 87,000 jobs in 2010 and a further 22,000 loses in 2011. This is exacerbated by the fact that male unemployment is now at 16.5%, twice the rate of female unemployment. Some young people who sign on for jobseeker's allowance from an early age are still drawing social welfare in one form or another well into their 50s. This is not how it should be. In the context of this document and Europe facing this problem, a great deal more could be done by the Government over and above putting several hundred people on training courses. For our part, we have pointed out a range of measures related to investment in real infrastructure which would allow for assets deemed valuable in terms of attracting local and international investment to thrive and provide real jobs. Such measures would at least in part answer the call to deal with the issues discussed at the Heads of Government meeting on Ireland's behalf.

It has been a daunting prospect for Europe and every country to react to the scale of the international crisis. We have argued previously about the extent of the impact on Ireland and whether it was a home grown crisis. Nevertheless, the situation is that Europe has responded in a way which sets out clear guidelines for countries to avoid breaching the Stability and Growth Pact and, for those which have done so, how to get back on track. These issues are of serious import for every country.

I am unsure if the Government would escape another referendum or treaty by engineering a European IMF situation. I do not foresee this as a possibility. The measure adopted by the Heads of Government at the Council was worthwhile in terms of setting up the emergency fund which may be drawn on if necessary. This was probably the only possible response given the circumstances in which Europe found itself. The reports being prepared under Mr. Van Rompuy will be important and meetings in October and December will deal with other elements of this.

The Heads of Government did not discuss the situation which arose with the blockade of Gaza by Israel. I am pleased to note some progress has been made in this regard and that on the basis of decisions now being taken general assistance and some construction materials will be allowed into Gaza under supervision. I trust this will be the beginning of a process that can become more flexible in time and lead to a situation where a position of 90% unemployment can be addressed to a greater extent. I share the Taoiseach's view in this regard and I thank the Government for the clarity of its response. I wish to leave the remainder of my time to Deputy Barrett.

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