Finian McGrath (Dublin North Central, Independent)

I thank the Ceann Comhairle for the opportunity of speaking on the important and urgent debate on the jobs initiative. Before I go into the details of the debate, I must state that I have many friends and family members who have lost their jobs over the past 12 months. It has been a terrible experience for all of them, and that is why we have to focus on job creation as part of any strategy to deal with the economic mess. We must all think of the human side of losing one's job or not having had one at all. I urge all Deputies in this debate, regardless of party, to focus on this as a matter of priority.

Unemployment and emigration are two evils that must be tackled. While I strongly welcome some of the proposals in this package, we have a national and civic duty to come up with other ideas and sensibly costed plans to create employment. This is not the time for sitting on the fence, and we all have a role to play. Our first priority must be to buy Irish products and support our local small businesses by buying from them - whether it is a small local shop, a pub, a restaurant or a factory. This is the way forward and it must be part of the solution. For example, on the subject of funding and supporting small businesses, we should start a low-budget campaign to encourage people to spend an extra €20 per week in their local shops and businesses. This has the potential to create 20,000 new jobs. Let us remind ourselves of the €75 billion in savings that are in bank deposits at the moment. This money mostly belongs to people over 55 years of age because many of them are afraid to spend. I encourage those over 55 to get out there and spend an extra €20 per week out of the few bob they have to support local small businesses.

We also need big job creation projects as part of the strategy. One project that is ready to roll, but on which the Government is dithering, is the plan for the metro north. This has major potential for job creation - a couple of thousand jobs - but would also have considerable local impact for small businesses along the proposed route while it is being constructed. This is something that has gone off the boil in recent weeks, but it should be considered.

I welcome the announcement by the Minister, Deputy Noonan, that funding will be provided for building projects in schools. In my constituency, for example, Belgrove National School, which the Minister knows well, needs this funding. The project is ready to roll. It is the same with the Holy Faith school in Clontarf.

I have heard much debate tonight about the private sector and the public sector, but we must not forget the role of the semi-state in job creation. There is major potential in this sector to provide jobs. The recurrent theme over the past 12 months has been that private sector equals good and public sector equals bad. I strongly disagree with this. We need a mix of the public sector and the private sector to get job creation on track. A good-quality, efficient public sector can play a major part in creating jobs.

With regard to the proposals we heard today, I support the cut in the 13.5% rate of VAT to 12% by 2013. I also support the halving of the lower 8.5% rate of PRSI up to the end of 2013 on jobs paying up to €356 per week. I strongly support reversing the cut in the minimum wage to bring it back to €8.65 per hour. When we are creating jobs and providing employment, we must ensure that people have a reasonable and decent wage. I warmly welcome the abolition of the €3 travel tax as part of the deal with airlines to restore lost routes. There is potential there.

With regard to employment, we need to fix the cost base and consider issues such as commercial rates. We must stimulate the economy, facilitate enterprise and encourage job creation, particularly on the north side of Dublin.

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