Derek Nolan (Galway West, Labour)

This debate must be put in context and it is important that members of the Opposition realise that the Government is only nine weeks in office. In its first month, it dealt with the banks considerably, effectively and resolutely. In its second month, it dealt comprehensively with the EU-IMF review of our finances and renegotiated many of the deal's elements, including some of the measures contained in this package, which was announced on Tuesday. The jobs initiative must be seen as a positive step. Coming so soon in the lifetime of the Government, it is to be welcomed.

The Government was honest about this being a modest approach and should not be attacked by the Opposition as having proposed a failure that will not live up to expectations. We have had 14 years of spin and clever ways of displaying matters. The public is open to an honest and up front approach to such matters.

I welcome the proposals, modest as they are. The initiative is the first step in a series of steps that the Government will take over the lifetime of its five-year term in office and is considerable in what it does. In particular, I welcome and am impressed by the sectoral focus on the tourism industry. As a Deputy for Galway West, Galway city serves as a tourism hub for our county, Connemara, County Clare and all around. The package of measures will benefit employment when introduced. In Galway city, an area called the Latin quarter has a focus on tourism and comprises restaurants, pubs, shops and all of the types of attraction tourists want. The initiative will create a safe environment in which those businesses can trade. It will also ensure that their jobs can be kept and improved. The VAT reduction from 13.5% to 9% on those products and services is welcome. A 1% cut across the board on the lower rate of VAT would have been less impressive and made less of an impact than a focused substantial reduction.

I welcome the abolition of the air travel tax because it was not done as a simple abolition. Instead, it was done in negotiation with the airlines and on the agreement that the tax would be reviewed and reimposed if the number of flights and passengers to Ireland was not restored. The Government and private industry have taken a constructive approach so as to ensure taxes and concessions will be used and not just pocketed into profit margins.

I also welcome the common travel visa announced by the Minister for Justice and Equality, Deputy Shatter, yesterday. It will create a single travel area for tourists between the United Kingdom and Ireland. This has considerable potential, particularly in the run up to the Olympics. Many foreign visitors from outside Europe view Ireland and the UK as a single travel destination. The ability to do a few days in Ireland will benefit our economy.

I welcome the cementing of the reversal of the minimum wage cut. Fianna Fáil claimed it could not be done, but it has been done. The matter was renegotiated because the reversal was the right thing to do. It rewards people for their work, gives them dignity and respect and puts money into their pockets so that they can live decent lives and contribute to the economy.

Two announcements are particularly welcome in Galway West. The €3.3 million allocation for secondary roads is a considerable increase on the year's allocation and will allow for a large number of improvements to roads that were badly damaged during the severe frost. It will create employment and improve road safety, thereby saving lives. We also welcome the fact that 23 schools in County Galway will have works done, from roofs to accessibility to toilets. As these works are badly needed, the money will be properly spent, will have a real impact and will benefit children and the education system.

The initiative as announced will put a credit guarantee scheme in place. This must be done quickly, as we cannot run the risk of doing what Fianna Fáil did, which was to constantly announce that credit would flow when none was ever made available. The scheme is to be welcome, but it needs to be up and running quickly and explained and communicated to people effectively.

The jobs initiative is a good one and I commend the Government on its introduction.

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