Richard Bruton (Dublin North Central, Fine Gael)

Yes, please. I have listened to the former Minister, who is leaving the Chamber. It strikes me as bizarre that Fianna Fáil appears to have wonderful ideas and superior ways of doing things than the current Government, yet had 14 years in which to do them and does not seem to have surfaced with its own ideas. Fianna Fáil speakers have not uttered a word about the disastrous policy mistakes that have brought the country to its knees. From peak to trough, national income fell by 26% under Fianna Fáil and 20% of all people in the private sector lost their jobs. The vast majority of the 20% were young people. As such, it is difficult to take lectures from former Ministers about the follies of our ways when the evidence of their failed policies is there for all to see.

It will take some time before we remedy the problems, but the significance of yesterday's announcement was that it represented a decisive change of direction. I have been listening in the Chamber to people who are craving a large number for jobs or a massive spending stimulus almost as if we could produce a rabbit out of a hat. Unfortunately, this notion is a legacy of the sort of thinking that got us into this hole. Believing that we can dip into our spending somewhere and turn it into X, Y and Z jobs is not the way a modern economy works. The sort of thinking we need is, for example, a consideration of the rate of return on our investment.

This shift in opinion is what makes yesterday's announcement so refreshing. It represents a decisive change of direction. Unlike the previous Government, we are no longer discussing how to nurse along the banking failures of the past, the failed developers and the ghost estates. Instead, we are discussing what to do about small businesses that can create something, how to give them partial loan guarantees, how to give them access to finance and how to get them on the road to creating something. No one on the Opposition benches is willing to pick up on this decisive change. It is not a question of closing programmes and cutting off recruitment, which we have often seen in recent years. Rather, it is a question of trying to open up some doors. Some of the provisions are modest, but the changes in direction are significant. More important, the provisions have in mind enterprises that can create something for us at home.

This is a short-term package. We are not even nine weeks in government, but this initiative is a clear direction as to the new type of thinking and transformative change that will occur. If we are to crack the problem, the Government will need to transform right across the board. The comprehensive spending reviews and the establishment of a public service reform Department are all about showing that how we did things previously is not good enough for the future. Transformative change will not only be required in the private sector and in its capacity to create jobs and a strong engine of economic growth from indigenous ingenuity and talent, but also in the public service, which must use ingenuity, reduce costs imposed on business and deliver good services with fewer resources.

A decisive change is under way, but too much of the language in the debate to date has been the language of the past, for example, "Count the jobs". Governments do not create jobs. Enterprises that find new markets, break into export sectors and become more competitive through their innovations create jobs, and we want to stimulate them. Every measure chosen for this budget was designed to help with the jobs challenge. Much of the budget is concerned with giving young talent the chance to influence the growth of jobs. For this reason, the internship programme is important. More than 150 companies have indicated to me their willingness to support it. It is positive that we can get quality companies that are exporting to take on young talent. The situation could then develop, as those people, who could be the entrepreneurs of the future, are getting relevant experience.

We want to adapt people's skills. Some people invested their talents in the construction sector, but it will not yield the same returns seen previously. We must reskill those people. A strong theme in this announcement is that we must support those who are in a position to start businesses. We must help people to win new markets. I am looking within my Department to determine how we can improve programmes to help Irish businesses to access new markets. It is depressing that 90% of our exports come from foreign-owned companies. This is a statistic we can change and it is gratifying that, according to recent figures, Irish-owned businesses are leading the charge and making significant progress. Last year's export figures were the best in a decade, with Ireland regaining market share lost during that period. We must build on and support this significant development.

However, such a change has not occurred in the tourism sector. For this reason, much of yesterday's announcement focused on how to make tourism a performing sector. These tax changes - a 4.5% cut in the product price of many of our offerings to tourists and a 4.25% reduction in much of the wage bill in the sector - are significant and constitute the Government making survival easier for businesses. The sector is labour-intensive, with a 30% to 35% labour content in its activities. This announcement makes a difference and has the potential to create positive spin-offs. As the Minister stated yesterday, we want the airlines to respond to the changes and the price advantages to be passed on. It is a genuine way to make the sector more competitive so as to reverse the trend of a 25% decrease in tourist numbers.

We need to be innovative in the way we exploit opportunities in new markets. I am delighted that an idea generated by the private sector is being imported into Government thinking, namely, a finder's fee for people who find investors willing to invest in Ireland. This new thinking is outside the box, so why should we not do it? The Government will take good ideas from anywhere. We will reform the visa system to make investment easier. It is crazy that an investor from India, one of the world's most rapidly growing economies, or China can visit the UK but cannot then continue on to Ireland because he or she would need a second visa. We are changing this situation. Investors considering the UK can investigate Ireland on the same visa. It is an obvious and simple measure, but one that has not been taken until now. We must consider the simple ideas and rely on being smart instead of on large spending programmes.

We can support enterprise. One of the key themes in the announcement is that of reducing costs for employers, such as halving the cost of PRSI in respect of 600,000 workers. We will follow this significant easing with a radical overhaul of the system for wage fixing in many sectors. We will open access to finance, but not only by way of the Minister for Finance's decisive banking resolution. We will create banks that will be well capitalised and have low loan-to-deposit ratios. They will be in a position to lend an estimated €12 billion per year. In addition, we recognise that some businesses simply will not be on the radar. A risk-averse banking system will not give succour to some businesses which really need funds to make progress.

We can be innovative in other ways, including in public service procurement. If even 1% more went to Irish businesses, that would represent €150 million. Other countries have blazed a trail in finding ways by which innovative small companies can get involved in public procurement. We want to model a system that is equally responsive.

Of course, this is just a start. There are other areas in which Government decisions and investment are important, including the infrastructure bank and the NewERA project. These are other opportunities for us to invest wisely in infrastructure that will make it easier for businesses to create jobs and we are working on them. It is important for the Government to put down a marker stating this is a decisive change in policy. It is not all about solving the problems of the banks and fixing the public finances. It is also about giving people a chance to create a strong and vibrant economy. I accept that it would be nicer if we did not have to ask pension funds to contribute, but if we do not ensure we have a strong economy, producing growth and creating jobs, we will not be able to meet our pension commitments. The best way of meeting pension commitments in the long term is to have a vibrant economy. That must be our priority.

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