James Bannon (Longford-Westmeath, Fine Gael)

Like Deputy McEntee, I am disappointed that the Government could not see its way to support this intelligent motion before the House. I am equally disappointed, when the Government looks for co-operation, that it does not give co-operation to this side of the House. The people of Ireland strongly mistrust this Government. My people and those who want to stand by Ireland want to see the back of the Government as quickly as possible.

The country needs hope at this time of appalling economic fallout. Given the air of quiet despair, the citizens need something to cling on to. Much to the surprise of foreign journalists, civil unrest and protest at the decimation of our lifestyle and our future prospects, as individuals and as a nation, have not surfaced to any marked degree despite the fact that we are being provoked by the Government.

Nonetheless, the need for hope of an improved economic climate is paramount. That hope is tied up with the expectation that foreign inward investment will be maintained. However, that will only be possible if the 12.5% corporation tax rate is not increased.

That tax rate has been the carrot that has helped build up a perception of Ireland as a business friendly country, but any attempt to increase the rate would wipe out the gains at the stroke of a pen. Anything that increases the cost base for investors is a blow to our competitiveness. The benefit of any short-term gain to rectify Government fiscal mismanagement would be far outweighed by the long-term fall-out.

Although the 12.5% tax rate has stood us in good stead, our competitiveness is lagging well behind other strongly-performing countries. For example, our labour costs are far higher than those of China and India, which have now overtaken the US as competing locations for Irish subsidiaries.

Ireland's poor infrastructure and lack of broadband roll-out in many areas have been a significant drawback to foreign inward investment. Longford-Westmeath, which has some of the worst roads in the country and has been shamefully let down in terms of broadband coverage and other infrastructure investment, has seen the closure of companies that have relocated to more business-friendly locations abroad. For example, the recent closure of B3 Cables and Campbell Electronics in County Longford, Nexon's in Athlone, County Westmeath and Gannon Concrete in Kilbeggan raise questions about the serious lack of competitiveness engendered by the Government.

The closure of the Department of Agriculture, Fisheries and Food's offices, both in Longford and Mullingar, were a considerable blow to the midland farming community. These closures are a direct result of the lack of infrastructure, high business costs and wage levels. High fuel costs, along with other stealth taxes, have brought about the current economic downturn in the midlands.

Longford-Westmeath has a highly-trained workforce and the number unemployed has now exceeded 16,000. We have been forced to see the closure of businesses, Longford barracks and Granard courthouse which played their part as sources of revenue in the constituency, and were an important part of our heritage. Given the track record of the Taoiseach and his Government, it is laughable that my colleague, Deputy Mary O'Rourke, stated in the House that-----

See this speech in context