Peadar Tóibín (Meath West, Sinn Fein)

Ar dtús, ba mhaith liom cúpla rud a rá. The Irish people are not drowning in negativity; they are drowning in debt. That is the biggest issue facing this country. The previous Minister of State who spoke said that no submissions were made with regard to this jobs initiative. Our party made a submission to the Irish people, which was called our election manifesto, only nine weeks ago. Therefore, that statement is patently untrue.

I will speak first about the importance of the issue at hand. Some 439,000 people are unemployed in this State. These are men and women of all ages, skills, backgrounds and experiences. These people are living with the daily reality of having had their wages plummet and of having to hunt for jobs that are not there. The outworking of a Fianna Fáil Government policy has forced hundreds of thousands of competent men and women on to the dole queues. The curse of unemployment does not stop with those 439,000 people. There are hundreds of thousands of children whose parents are unemployed and their collective incomes have plummeted while their expenditures such as mortgages, fuel, food and so on have remained rigid or have increased. That is not to speak of the collapse in confidence and the depression and despair that is often brought about by unemployment. Hundreds of thousands of others have been forced to emigrate. Roughly the same number of people who sit the leaving certificate each year are now emigrating from this State. That is a phenomenal figure. The GAA generation is being gutted, with some of its brightest, most energetic, most intelligent people being forced to leave this State. Communities are being decimated and the most energetic of our people are being deflated.

The core of business in this State is closing down. Construction companies, retailers and wholesalers are closing at a rate never seen previously. At the end of February figures released showed that there was a 46% increase in the rate of business closures. There were 2,900 corporate closures in 2009 and 2010 and the number of insolvencies from January to April in 2011 was 588, which is an increase on the number for the same period last year. That figure indicates that there are 46 corporate insolvencies a week. It is estimated by the Small Firms Association that a potential of 62,500 small businesses could close in the next year, which means 200,000 jobs are under pressure. These jobs are under threat as a result of a contracting economy, reduced demand and rigid cost base. The contracting economy and the reduced demand are a result of an economic shock and Fianna Fáil policies, but these are being accentuated by Fine Gael-Labour policies being implemented today.

Our economy is flatlining as a result of three years of deflationary policy. The deficit in April 2011 was €9.9 billion, which is in contrast to €7 billion in the first four months of 2010. Debt servicing on our national debt in that period cost €1.8 billion. The Government is at one level introducing paltry jobs initiatives but at the same level the thrust of its economic policy is gutting an extinguishing demand that is necessary for jobs.

Unemployment is a devastating issue and an urgent crisis that demands a comprehensive response. This information is not new to the Fine Gael Party and the Labour Party. Both parties made jobs the most important issue in the run up to the general election nine weeks ago. They spent their election campaigns hyping the jobs initiatives in which they would get involved. The Minister of State, Deputy Brian Hayes, said a few minutes ago that people would not believe extravagant claims about producing 50,000 jobs or 80,000 jobs. Nine weeks ago the Fine Gael Party said that it would produce 100,000 jobs in government and that it would produce a €9 billion stimulus. The Labour Party spoke of a €500 million jobs fund and of a strategic investment bank with funds of €2 billion from the National Pensions Reserve Fund. Cynically, nine weeks later both parties have retreated fully from their election promises and have gone into reverse mode. They are reducing the significance of this jobs initiative every day, and it is no wonder.

When I looked at the figures yesterday it was clear that €40 million was assigned to creating jobs. That €40 million must be contrasted with the depth of the problem, namely, the 439,000 people unemployed and it also must be contrasted with the €24 billion the Government is pouring into the banks. On the figures in the Minister's document yesterday, €40 million would create 400 jobs. Four hundred jobs is the response of this Government to the 439,000 people who are unemployed. That is equivalent to opening up two Tesco stores. It is the equivalent of three days of young people emigrating from this State. There are more than 400 unemployed people in any two large residential housing estates in Dublin, Galway, Limerick, Cork or any of the small towns throughout the country. The Minister's response to the largest crisis this country has seen is shockingly disproportionate. There are many good people on his side of the House who know that and who will be frustrated and disgusted at the paltry measures brought forward in this jobs initiative.

It is important also to mention that there is so much more missing in this jobs initiative. The agrifood sector is very important to the constituents of some of the Ministers on the benches opposite who come from rural constituencies yet there is nothing about agrifood in this jobs initiative. It contains no reform of enterprise development agencies or any programme for small businesses with fewer than ten employees. Other than the PRSI initiative, no attempt has been made to reduce costs to small businesses or rents and rates, an important issue to hundreds of retailers across the State. A major opportunity has been missed to produce a far and wide reaching jobs initiative that could have reached into every community.

Yesterday my party colleague, Deputy Pearse Doherty, said there is a need for a major stimulus injection into the economy, a policy considered good economic practice in any recession. There is no doubt a stimulus package would work best in a large closed economy. It can, however, work in a small open economy like ours if it is targeted, strategic and linked to improving economic competitiveness.

Competitiveness can also be improved with labour intensive infrastructural projects while investment in education can be increased to create a knowledge economy. The previous Government spoke of a knowledge economy yet produced a property bubble and reduced the level of investment in education. This Fine Gael-Labour Government is still reducing the moneys going into education.

Sinn Féin has stated it will take €2 billion from the National Pensions Reserve Fund to fast-track labour intensive investment projects, such as a schools building programme. The Minister of State, Deputy Alan Kelly, knows of schools in his constituency that need proper refurbishment. This policy was similar to a proposal made by the Labour Party during the general election nine weeks ago.

Sinn Féin would invest €600 million in supports for viable businesses to maintain employee levels while providing a €500 million stimulus package for families and ensure income for the retail sector. Sinn Féin has also said it will abolish the universal social charge, another Labour Party election pledge. Retailers have said the effect of the charge and consequent drop in income will be the closure of 400 retailers and associated jobs.

Another gaping hole in the jobs initiative is the lack of enterprise agency reform. It is possible to reform, create jobs and save money. Will the Government consider amalgamating IDA Ireland, Enterprise Ireland and Invest Northern Ireland? Selling Ireland as a tourism product is already done by Tourism Ireland on an all-Ireland basis, yet three separate enterprise organisations are dealing with selling indigenous businesses abroad and attracting foreign direct investment. Only one agency is needed for the State on an all-Ireland basis. Amalgamating the existing agencies will reduce duplication in office provision and organisational infrastructure while creating more jobs as a result.

While Enterprise Ireland does a good job in developing business, it is still too reactive. It should be going into local communities, engaging with small businesses to ensure they grow and export. It is incredible only 80 high potential start-up units open every year. Enterprise Ireland must be given a proactive remit to generate more start-up businesses.

County enterprise boards are at the coalface of small business. The jobs initiative contains no export programme for these boards. Many of them have massive knowledge and skill-sets but their funding was cut by the last Fianna Fáil Government by 30%. Again, this initiative makes no provision for the creation of one-stop shops or business incubation centres with the country enterprise board structure. Neither is FÁS linked with third level institutions to create partnerships to grow small businesses in small communities.

The initiative does not address cutting costs for small businesses. Rents, rates, telecoms are still costing small businesses too much. All Members were asked by small businesses during the election to do something about these rising costs. The initiative, however, contains nothing to address this matter which is disappointing. I have already asked the Minister to consider creating a progressive rate which would depend on a business's income and take into consideration if it is export-driven or heavily involved in research and development.

Commercial rents are squeezing small businesses out of existence. While the Government may claim it is busy and will deal with the issue in due course, it should be remembered rents are forcing businesses to close every day with jobs lost and many forced to emigrate. In the time it took for the Government to draw up this initiative since it took office, up to 13,000 people have emigrated. There are vested interests in the commercial rent area, including NAMA and certain property owners. I hope Fine Gael and Labour will stand up for the interests of small businesses rather than putting NAMA and developers first and ensure exorbitant rents are not charged. If exorbitant rents are not tackled sooner, more people will be forced on to social welfare.

No measures are contained in the initiative to tackle energy, telecoms and waste costs for small businesses. Last week Bord Gáis flagged the fact that it was inevitable for it to increase it charges by 20% before the end of the year. How many jobs could this increase cost businesses?

In 2005, net foreign earnings in the agrifood sector amounted to 32% of total earnings from primary and manufacturing industry. In 2008, Ireland's food and drink exports were €8.2 billion, representing approximately 10% of overall merchandise trade exports, while one in seven people is employed in the sector. However, not one single sectorial measure has been introduced in the jobs initiative. Considering the current upward pressures on commodities internationally and the competitive advantage Ireland has in the sector, it is shocking the sector has been ignored by Fine Gael and Labour. Despite the largest crisis we have seen, massive unemployment levels and promises made by Fine Gael and the Labour Party nine weeks ago what we have received is a revenue neutral stimulus. Anyone with a background in economics will know that revenue neutral stimulus is by definition an oxymoron. A stimulus must not be revenue neutral. It must be an infusion of revenue into the economy.

The Minister for Finance, Deputy Noonan, stated that this will not be a large Keynesian stimulus package, which makes him Minister for Finance and minister for stating the obvious. This jobs initiative is at best a rearrangement of the deck chairs. At a time when Ireland's domestic economy is in urgent need of a stimulus all we get is a drop in the ocean. Some business and unemployment organisations have given a guarded welcome to these initiatives. There are several positive elements in the initiatives, which I welcome, including the creation of training places and work placements. In an economy so devoid of new business, a drop in the ocean, which this is, is obviously considered welcome.

I urge the Members opposite, whom I know will be devastated with this although they will talk the talk, to push as hard as they can within their parliamentary parties for a loosening up investment to create a major stimulus package which will bring about radical change in this State.

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