John O'Mahony (Mayo, Fine Gael)

I welcome the jobs initiative and see it, as the Government does, as a start in tackling the large increase in unemployment which occurred in the past two years. Nobody would suggest the crisis can be sorted overnight. While some may opt not to do anything, with the excuse that we could not borrow for such schemes, for those who will finish an apprenticeship or find a work placement, this initiative will be invaluable.

I welcome the reduction of VAT to 9% for businesses and hotels in the tourism industry. This measure will increase turnover and create a stimulus for increasing employment. Those who provide extra jobs will be further encouraged by the measure to halve the lower rate of PRSI payable by the employer.

The abolition of the travel tax is another positive move. I agree with marketing the positive attractions for visitors to Ireland in our core markets abroad. While I agree with the need for marketing our country, I regret the initiative focuses solely on the three State airports without reference to Ireland West Airport Knock which services the whole of the west and north west, areas not served by Cork or Shannon airports. Of the western seaboard airports, Ireland West Airport Knock now has 48% of the UK market. It needs to be considered more in aviation policy and tourism strategy. The airport is the most cost effective in the State and serves ten UK destinations as well as servicing all the counties from the tip of Donegal to Blacksod, County Mayo, to County Longford. These are tourism counties with all of the attractions, infrastructure and facilities to meet the needs of the thousands of tourists we are trying to attract. Will Ireland West Airport be given a share of the Tourism Ireland marketing budget?

This jobs initiative is just a beginning. More is needed to provide new jobs and to protect the many jobs teetering on the edge. It is ironic that when the Minister announced the jobs initiative on Tuesday, Cordil Construction informed its suppliers and subcontractors that it would have to suspend works temporarily on all its sites for the next two weeks. This was because of a sudden and serious cash flow problem caused by the reduction of overdraft facilities from €2 million to €150,000 by its banks. This company is owed more than €4 million for works done for the State. It employs 60 people directly with a further 1,200 people affected in spin-off employment with subcontractors and suppliers. The company has plenty of projects on its books ready to be started, with 15 live projects already in situ. It has completed work for the Departments of Education and Skills, Defence, the Environment, Community and Local Government and Health and Children to the highest standards. While I am no financial expert, I have no other agenda but the protection of jobs. A solution must be found that will enable up to 1,200 jobs to be saved. The consequences otherwise will be 1,200 people out of work at a cost to the Exchequer of €20,000 per job. I appeal to those with influence to resolve this matter.

Recently brought to my attention was the case of a housing estate taken over by a bank that made funding available for the estate to be finished off. The work was done by unregistered builders in the black economy. If the banks are being bailed out by the State, they had better ensure they employ registered builders to complete the work.

Another issue relates to the ability of companies from outside the state to tender for construction jobs within the state, paying their workers way below the rates that Irish companies pay. I spoke recently with a roofing contractor who lost a €100,000 contract because a contractor from outside the State could pay €20,000 less in wages. This has implications for our economy and the country because it means higher social welfare bills due to job losses. These issues have to be tackled and will save many jobs and much money for the State.

See this speech in context