Deirdre Clune (Cork South Central, Fine Gael)

This debate is probably the first of many as we head into very difficult times in trying to get the economy back on track. Fine Gael is committed to the target deficit of 3% of GDP by 2014 and in the coming weeks we will be outlining our plans for implementing change and economic policy, particularly in terms of job stimulus and getting this country working again.

It is a sad fact that the recent reckless policy pursued by the Government and the banks means we now find ourselves at the mercy of the faceless markets. We must act now, as we face budget 2011, to ensure we can access funding from these markets in the future, given they are dictating our budgetary policy. The Taoiseach stated earlier today that the figure of €15 billion that must be found between now and 2014 was arrived at by Government decision. However, it is merely a forecast and we do not know what growth factors were included, what decisions were involved, how the Government forecast growth and unemployment or how the money is to be found.

Earlier today, the leader of my party, Deputy Enda Kenny, outlined Fine Gael's plans in various areas, with a focus on an enterprise-led economy. The export figures released today are very good, as noted by many Government speakers, and exports will remain our focus. While competitiveness has improved, it has not improved due to anything the Government has done but because of the relationship of the euro to the pound and dollar, and because wages in this country have decreased voluntarily. However, Government charges, local authority charges and red tape all contribute to a distinct lack of competitiveness. It does not matter whether one is exporting a pound of butter or financial services, all the products and services we hope to export from this country are competing in European and global markets and the weight attached to them by excess Government charges is that of a millstone.

Now is the time to support the indigenous SME sector. Last week in this House, Fine Gael put forward a well thought-out motion, proposed by Deputy John Perry, outlining a State-backed loan guarantee facility for small and medium businesses throughout the country but it was rejected by the Government. We have been asked to come forward with positive suggestions and this is supposed to be an era of consensus. Last September the Minister for Enterprise, Trade and Innovation, Deputy Batt O'Keeffe, stated publicly that he wanted to introduce such a scheme yet he rejected Fine Gael's scheme last week. Why not take it on board? Not every aspect was perfect, but why not work with the Opposition in terms of implementing a measure that would give succour and support to small and medium enterprises?

The return to global growth will be crucial to achieving our targets but that is outside the control of whoever governs this country. What is within our control must be acted upon, however, and barriers to activity must be tackled. For a small open economy such as ours, particularly when domestic confidence is so low and will drop further, our exports are the key component that has the potential to provide growth and to bring known benefits and create jobs in the local economy, thereby creating a ripple effect for small and medium enterprises and resulting in increased revenue for Government. This is the track we should follow but we have allowed ourselves to come off the rails in this area. Property, development and land acquisition was too easy and, as a result, we lost much expertise across the economy in the last decade. We lost expertise in our banking system in regard to dealing with small business and enterprise and we lost the ability to manage a small, open economy that depends on the European and global market to sell its goods and services.

The Taoiseach in his earlier contribution referred to exports. I hope this was not mere rhetoric or grasping at straws but a serious intent to manage this area. Many reports have been produced, including those of the innovation task force and the recent Forfás report entitled "Making It Happen", and these have outlined the areas where local indigenous enterprises can be supported in terms of productivity, research and development, innovation and education attainment. We must develop an approach across certain viable sectors, such as communications, business, finance and insurance services. We have strength in these areas on which we need to build. The area of health care services is one where we have developed much expertise. We must also recognise that there are growth areas, including in regard to clean energy, green technology, the marine and maritime services, health care, particularly e-health care services, and IT, in which we have developed huge expertise. We need to tap into these and sell those services abroad, as well as supporting development in those areas. The area of education services is important and was highlighted today by Deputy Kenny. We can sell this nation as an education island in terms of exporting those services and bringing foreign students here.

Small and medium enterprises are the key to the growth of this country. The Government has the responsibility to create and develop the environment in which those enterprises can function and thrive.

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