Batt O'Keeffe (Cork North West, Fianna Fail)

I move amendment No. 2:

To delete all words after "Dáil Éireann" and substitute the following:

"—supports fully the actions and policies of the Government designed to restore sustainable economic growth and job creation capacity to the economy as soon as possible, through:

safeguarding the future of the banking system as a provider of credit to viable enterprises in the State;

pursuing policies to ensure restoration of overall economic competitiveness including reducing the cost of doing business and taking action to reform the public sector to secure a more efficient and cost competitive delivery of public services;

planning a sustainable and achievable reduction in public spending to contain the increase in the burden of taxation that would otherwise arise and which would hamper job creation in the future;

preserving a low tax regime on companies and business to attract foreign enterprise and jobs;

providing a capital stimulus package of nearly €40 billion over the next six years which will fund infrastructure projects to support about 30,000 jobs each year for the next six years;

helping to sustain over 100,000 jobs by providing financial support to over 1,700 companies through the Employment Subsidy Scheme and the Enterprise Stabilisation Fund;

implementing an employer job (PRSI) incentive scheme to support job creation and counter the drift of people into long-term unemployment and which is expected to create up to 10,000 new jobs;

establishing the €500 million Innovation Fund to support entrepreneurs so that they can create jobs; and

increasing the number of training places for the unemployed to over 180,000 so that they have the skills to access the 96,000 vacancies forecasted to arise each year on average up to 2014;

welcomes, in particular, the Government's five year integrated trade, tourism and investment plan, Trading and Investing in a Smart Economy, designed to increase the value of indigenous exports by 33%; to diversify the destination of indigenous exports; to increase overseas visitors to 8 million; to secure an additional 780 inward investment projects through the Industrial Development Agency (IDA) Ireland and create up to 300,000 sustainable jobs across the economy."

I propose to share time with Deputies Seán Fleming, Margaret Conlon and Michael Kennedy.

I move the amendment on behalf of the Government and welcome the opportunity to respond to the motion presented by the Fine Gael Party. More precisely, I utterly reject the motion tabled by Members opposite. The calls they make demonstrate a lack of knowledge of our infrastructural investment programme, PRSI incentive scheme, strategy to increase tourist numbers, action to increase credit flow to the productive economy, policy driven improved national competitiveness, expansion of training places and increased support for entrepreneurs.

Most of all, the Fine Gael Party has demonstrated a partisan inability to recognise and endorse the comprehensive and coherent job strategy devised by the Government in Infrastructure Investment Priorities 2010-2016 and the Trading and Investing in a Smart Economy strategy.

I propose first to address the most erroneous of the charges made by the Opposition, namely, that the Government has failed to present a coherent jobs strategy. This is plainly incorrect. There is ample evidence of the significant action that has been taken across the whole government system to address the challenges faced by the economy. Our action has concentrated on taking steps over the past two years to address three key issues, namely, sorting out the banking crisis, placing the public finances on a path to recovery and tackling our cost competitiveness. All three issues are essential foundations for job creation and job maintenance.

The Fine Gael Party implies there is some single policy or intervention that will return our economy to high employment and sustainable enterprise growth. That is not the case and it is the reason the Government is working on a multifaceted approach focusing on jobs and growth. The Government's response is a realistic one which puts first things first by consolidating the fiscal position, supporting our banks as future providers of capital, keeping up substantial capital spending as an investment in future jobs, regaining competitiveness by appropriate price and wage policies, supporting jobs in the SME sector, stabilising the economy and supporting the export sector by pro-business tax policies.

This is the cornerstone of the coherent foreign trade and investment plan published yesterday to secure a 300,000 increase in jobs in the next five years. These are jobs at all skill levels, in all sectors of the economy and in every county. From the local corner shop, bookshops, bed and breakfasts, retailers, garages, printers, packers, hauliers, IT specialists, manufacturers and supervisors to CEOs, a smart economy delivers job opportunities in all these areas. This is something our critics must understand.

The Government is positioning Ireland to be successful in selling our goods and services abroad, winning global investment and attracting visitors from around the world. Our plan will help Irish farmers and firms expand their market share overseas and will boost food exports. Export-led growth is the right strategy. Supporting export-led growth is our job strategy.

Labour's strategy is simply to borrow and build. Fine Gael's strategy is unknown even to itself. This is fine when you are in Opposition. The Government, on the other hand, is setting clear, ambitious targets to be achieved over the next five years.

To reach our targets we need, of course, to start growing again. This week's official figures show strong growth in exports by Irish companies in the first eight months of this year. Enterprise Ireland companies will recover approximately 70% of the export earnings that were lost last year. Exports are up 8% between June and July and our trade surplus is up 29% to €4 billion. This strong performance is helped by the international engagements of this Government in our important trading markets. I regret the fact that this work is not valued or appreciated by the Leader of the Opposition, this being evident from his recent efforts to block an important ministerial trade mission to the US.

Notwithstanding the fiscal constraints, we are delivering what is still one of the most substantial capital investment programmes in the OECD. We will invest nearly €40 billion by the end of 2016. As well as supporting 30,000 direct construction jobs in the economy every year, it will also deliver valuable infrastructure in new roads, public transport, schools and research facilities. It will also help homes and businesses reduce their long-term energy costs through the retrofit programme.

The Fine Gael motion bemoans inaction to encourage entrepreneurship. This is incredible. Entrepreneurship continues to thrive in this country despite the challenges presented by both the global and domestic economic environments. This has been verified by the Global Entrepreneurship Monitor Reports that show that entrepreneurs starting businesses as a percentage of the population is 4.3% in Ireland, compared to just 2.7% across the EU and 2.9% in the UK. The rate of established entrepreneurs in Ireland is one of the highest across the OECD. The businessmen and women who establish and drive enterprise in Ireland, have played, and will continue to play, a central role in our future economic advancement.

Over the past decade, the Government has made significant investment in developing the broader environment for start-ups. This has included substantial investment in incubators, seed and venture funds, angel networks and mentors. Enterprise Ireland has supported between 50 and 70 start-ups each year over the past decade. We aim to increase this to 100 start ups a year by 2016.

The increased funding for enterprise under the Government's capital programme will provide for the establishment of a €500 million innovation fund as well as more funding for seed and venture capital and angel funds. Innovation Fund Ireland brings a new dimension to our existing venture capital sector and will allow more innovative ideas to become commercial realities in an improved competitive environment.

The annual competitiveness report, published by the National Competitiveness Council, is interesting. It acknowledged that since January 2008, Ireland has regained some of the competitiveness it had lost at the start of the global economic downturn. The improvement in competitiveness is closely linked to the policies the Government has pursued to restore stability to the economy. Some of the indicators of improved competitiveness can be seen in the fact that inflation remains below that of our main trading partners. We are seeing lower costs for business, particularly in areas such as energy and rental of prime industrial space and office space. Thirty three local authorities have either frozen their commercial rates at 2009 prices or reduced them for 2010. Wage costs have also reduced across the economy.

Despite this recent improvement, we are determined to do more. We are reducing the administrative burden by driving better regulation. Some €20 million in savings for business have already been achieved through cutting out paperwork, revising the rules for small businesses and making better use of on-line services. We aim to achieve €500 million in savings by 2012. Priority is being given to reducing the administrative burdens in the three key areas of company law, health and safety, and employment legislation.

Local authority charges remain a concern to the business sector and we will progress the recommendations of the recent efficiency review of the local authority system, to secure savings, which will further reduce pressure on business and ensure we can sustain and create jobs. I can assure the House that measures to further reduce costs to business will feature along side our policies to reduce the deficit and drive public sector reform.

A Leas-Cheann Comhairle, the Opposition motion mentions a number of specific proposals on PRSI, credit for SMEs, the Competitiveness Council, removing red tape and updating bankruptcy law. Well, just in case those over there have missed it, this Government has already introduced a PRSI exemption scheme for new jobs; a Credit Review Office to increase credit to SMEs; is committed to improving competitiveness; is making progress on culling red tape and has brought forward measures on bankruptcy in the Civil Law (Miscellaneous Provisions) Bill 2010.

On credit for small business, I particularly welcome the results of the recent ISME survey, which shows an improvement in access to bank credit for small businesses in the period from June to August. Some 58% of companies had accessed credit compared to 45% in the previous quarter. This is a very welcome improvement and will allow these companies to sustain and grow employment.

The role of the Government is not to directly create jobs. Our job is to ensure that the enterprise environment is optimal, so that enterprises can establish, grow and thrive, leading to the growth of Irish exports and the creation of sustainable jobs. The Government's economic strategy will enable us to go forward as a more competitive economy with a sustainable and innovative enterprise base. This Government has put and continues to put jobs and growth at the centre of our economic strategy. Our efforts have yielded results to date.

The Opposition can peddle its negativity all it wants. This is not a jobs strategy. The Opposition's sniping will not help one person get off the dole queue. Its populist outrage will not help a single Irish firm sell its products abroad. Its griping will not help Ireland win a single investment project. Nor will it attract one extra visitor to Ireland.

The Government is focused on delivering its jobs strategy and taking the right, tough decisions. That is how we will create employment, drive export growth, win more international investment and boost tourist numbers. For that reason, I commend the Government's motion to the House.

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