Kieran O'Donnell (Limerick City, Fine Gael)

I am delighted to have an opportunity to speak on the jobs initiative, which I believe is practical and creative. It covers a wide range of areas and must be viewed in context, namely, the IMF deal which restricts us in terms of the amount of money we can borrow. Fine Gael gave a commitment to put jobs at the top of its agenda when in government and has done so in terms of the introduction of the jobs incentive scheme. Every measure in the jobs initiative is directed at bringing about employment. In terms of training, approximately 21,000 new places are being created. I believe the internship programme is practical and creative. It will allow businesses across all sectors, some of which can ill afford to take on people, to take on for €50 per week a trainee for a six to nine month period, thus benefiting the employer and employee. The other training programmes will assist in getting people back into the workforce.

The €135 million allocated to the capital programme will result in the creation of 6,000 jobs. The retrofit programme will create more than 2,000 jobs and the €30 million being invested in the schools building programme will result in the creation of approximately 3,000. Jobs will also be created through spending on repair of our roads. Also, the jobs provided will yield benefit in terms of improved homes, schools and roads. I welcome the smarter travel project which will be important for Limerick.

The previous Government was focused on the smart economy. However, we must also get people from a low skill base back into employment. Tourism provides this opportunity. The VAT rate for this sector has been reduced from 13.5% to 9%, which is more than a one-third reduction. This will result in enormous practical benefits in the industry. Limerick city in my constituency is reliant on tourism. I welcome the visa waiver system, which again is a practical measure and the reduction in the travel tax to zero. It was a crazy tax, day one.

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