Brendan Smith (Cavan-Monaghan, Fianna Fail)

I welcome the opportunity to make contribution on the jobs initiative announced by the Minister for Finance on Tuesday. Along with my Fianna Fáil colleagues, I welcome some of the initiatives while questioning some of the omissions and some of the measures that have been introduced. I welcome the emphasis on tourism, which is appropriate in view of the high profile visits to the country in the next two weeks, which give us the opportunity to showcase our people, our products and our welcome for visitors. We all hope those visits go well in every way.

We also welcome the labour activation measures. I had the opportunity in Private Members' time to table a motion, which was accepted by the Government, and to discuss with the Minister for Education and Skills, on the need to grow numbers as quickly as possible to facilitate people to take part in labour activation measures.

I welcome the reduced costs and the reduction in VAT for restaurants and other outlets. I hope those reductions will be passed on to consumers, we have seen in the past the Government reducing costs but the benefits were not passed on to the consumer. We hope there is a proper response by the hospitality and tourism sector to a worthwhile initiative.

The Minister referred in his speech to the fact that our economic recovery will be export-led. I am glad Deputy McEntee, the Minister of State in the Department of Agriculture, Fisheries and Food is here, because his Department and the relevant agencies have a critical role to play to ensure we maximise the potential of those sectors.

To mark Europe Day last Monday, we had the opportunity to listen to an address by Máire Geoghegan-Quinn, the European Commissioner for Science, Research and Innovation. She made a good speech to Members and following her statement that our tax cannot be changed unilaterally in Europe, that it must be a unanimous decision by all member states, the Minister for Finance referred the 12.5% rate of corporation tax as being here to stay, and said there can be no deviation. We put a motion to that effect before the House a number of weeks ago during Private Members' time but the Government did not accept the wording. I hope the commitment outlined here by the Minister for Finance will be strictly adhered to by his Government.

The Minister for Finance referred to the research and development tax credit scheme and the Commissioner spoke about the huge opportunities for Government, the statutory agencies and the private sector to draw down substantial funding in the whole area of research and development because there is a new emphasis by the European Commission on a ring-fenced budget for research and development and innovation. People may not be aware that many of our agencies and Departments have been very successful in drawing down substantial funding through different EU programmes. My knowledge comes from the success of Teagasc in drawing down major funding in the areas of research and innovation that are critical so we can develop new products to add value. Many of our top quality young scientists and researchers are gainfully employed by Teagasc and other agencies because of funding that comes from central Government and worthwhile programmes it has devised. The worthwhile nature of such proposals was recognised by the European Commission and funded accordingly.

I am glad the Minister has improved the tax credit scheme. Once, as a Minister, I met a multinational company in the United States that has a significant base in this country. The executives spoke in particular about the importance of the research and development tax credit scheme and corporation tax. These are critical measures to ensure we retain jobs and grow additional job opportunities for our people. That whole area of research and development is critical and I am glad the Irish nominee to the European Commission is the Commissioner charged with responsibility for this area. Central Government, Ministers and officials in Department and the relevant statutory agencies have ready access to the Commissioner and her officials to ensure we continue to draw down the maximum level of funding to assist us in the investment, research and innovation that will be commercialised and that will create jobs on this island.

When we speak about Irish submissions, we are referring very often to submissions that have been made on an all-island basis. We have very good co-operation between the two agriculture Departments, North and South, and between all the relevant agencies. A huge level of co-operation is ongoing between universities, third level institutions and other research agencies, which is good because we cannot live in isolation. It is appropriate those applications are often jointly submitted.

Over the past number of years we have been in a position to provide new laboratory facilities. Those are of critical importance but equally important is the cohort of well qualified and enthusiastic young people in our research institutes. They are critically important for food and other industries. Research and development covers all sectors of manufacturing.

Deputy Patrick O'Donovan referred to the need to ensure that the agri-food sector is encouraged and I agree with him. I was disappointed that the Minister for Finance did not refer to the agri-food sector in his contribution last Tuesday when he referred to export-led growth because, thankfully, over the past 18 months in particular, there has been a resurgence in the agri-food sector, including fisheries. There has been a growing realisation in the past 18 to 20 months of the potential of that sector to contribute significantly to the regeneration of the economy and to the creation of much-needed employment.

I am pleased that the Minister of State, Deputy McEntee is present. We must ensure a good result from the Common Agricultural Policy review. I listened to the contributions of the Members of the European Parliament who spoke here on Monday. I hope the finalisation of the review will occur during the Irish Presidency in early 2013 because such support for the primary producer and the agri-food sector is critical to ensuring resultant job creation in manufacturing and in food enterprises throughout the country. There are more than 600 enterprises widely dispersed and by their nature they are very well accommodated in rural Ireland.

Some members of the Government have been putting out a message that the previous Government disengaged from Europe. This is incorrect. I had responsibility for the agriculture, food and fisheries sectors and we were very involved at both political and official levels in all discussions on the Common Fisheries Policy, the Common Agricultural Policy, talks on Mercosur or on the World Trade Organisation. At different times, like-minded member states have grouped together to deal with particular issues such as the WTO talks or the Common Agricultural Policy. On most occasions those groups have been established, led and chaired by the Irish Minister, as was the case with me and many of my predecessors. I am sure the Ministers and their departmental officials will still do so.

It is incorrect for any Minister to say that the previous Government was not totally engaged in Europe at all levels. We put forward the Irish arguments and viewpoints and we ensured, as Commissioner Geoghegan-Quinn said, that in most instances, Ireland punched above its weight with regard to schemes and policy reviews which are common to the European Union. The Common Fisheries Policy and the Common Agricultural Policy are the two policies within the European Union which are common to all 27 member states and which are critical to Ireland. Along with the then Taoiseach and the Minister for Finance, I had the opportunity to argue that Ireland needed a properly and adequately resourced Common Agricultural Policy. We need direct payments to continue and we need to ensure support for environmental schemes and that active farmers are prioritised in the disbursement of funds. These are important measures and policies which the previous Government supported and they need to be continued.

We must ensure that we will achieve a successful outcome in the review of the Common Agricultural Policy. The decoupling payments and direct payments to Irish farmers need to be continued. Given the volatility in commodity prices in world markets the market must be supported when prices take a downturn. President Barroso and the European Commission were adamant about the need to secure agreement with the Mercosur countries but this would not be to the advantage of Ireland and the proposal is not acceptable. I hope the Government continues to make strong representations at every opportunity at political and official level and at ministerial and heads of government level that the Mercosur deal as proposed and considered by the European Commission and by the trade Commissioner is not acceptable to this country.

The extra funding for school building projects announced in the jobs initiative is welcome. I do not understand how it can be announced in a press release that €40 million more is available for school building projects. I acknowledge that €30 million is available this year and this is to be welcomed but I understand that €20 million of this funding is being diverted from the third level capital fund. The facts should be laid out clearly.

I am pleased there is additional funding for the summer works scheme because all of us as public representatives have seen the value of this scheme and the devolved grants scheme. They represent a good return on the money spent, a much better return than in the old days of the planning and design and the tendering processes which did not result in value for money. During the past six or seven years, the introduction of the devolved grants scheme, the contingency grants scheme and the summer works grants scheme have all been beneficial from the point of view of upgrading, at good value to the taxpayer, so many classrooms and the provision of additional classrooms and accommodation.

The value for money audit of smaller schools is a concern for people in rural Ireland. There has been a welcome and much-needed investment in the upgrading of facilities in small schools over the past years and which is giving a good return for money. I know of instances in my own constituency and county where a summer works scheme costing €80,000 to €100,000 has transformed a school as opposed to hundreds of thousands being spent on projects. I welcome the additional funding provided in the summer works scheme which I am sure will be put to good use.

Small rural schools are central to rural communities. I attended an event in my own county yesterday at which the Protestant community was very well represented. Many senior church figures spoke to me because they are concerned about the possible threat to small schools. County Cavan has five or six Church of Ireland schools spread over a big rural county. Most have enrolments of under 50 pupils but all of these schools have been refurbished or will have new accommodation provided over the next years. We need clarification as quickly as possible that such schools are not under threat because the communities are concerned. I have raised this issue with the Minister for Education and Skills, Deputy Quinn and I am sure he will be receptive to the needs of those schools.

The unfortunate growth in unemployment in the past few years has resulted in an increased demand from jobseekers for upskilling, reskilling and activation measures and approximately double the number of places were provided in the period 2008 to 2010. Fianna Fáil has been committed to a policy of vocational retraining for many years and to the type of training opportunities close to the labour market which ensure jobseekers remain ready for work. We also believe in the importance of providing training for people according to their own abilities. Not all learners are suited to a training or academic environment and therefore it is essential to ensure there is flexibility and diversity of provision in order to meet the training needs of Ireland's modern economy. Whether in Government or in opposition, Fianna Fáil firmly believes in outlining its clear policy that it is right for the State to play a role not just in the facilitation and quality assurance of training activation measures but in their direct provision.

The State's training and employment agency, FÁS, has had mixed coverage over the past years. One's view of FÁS is often influenced by where one comes from. I have a good view of the work of FÁS in my constituency of Cavan-Monaghan and in the north east in general. I refer particularly to its provision of schemes and services at local level. It is wrong for us to make bland general assertions about the usefulness, worthiness and ability of any major private or public sector organisation or agency in meeting its remit. I am biased in the case of FÁS because I am familiar with the quality of the personnel who work for it in my local area. I know they have worked extremely hard over the years to serve the north east well. They have worked with local communities to offer community employment schemes and other services. They have also worked with individuals.

A number of changes have been initiated over recent years to improve the delivery of employment, training and community services to the public. Related responsibilities in those areas have been brought together. A commitment was made to ensure a freshly mandated State training provider would be put in place. That process was commenced by the Tánaiste in the previous Government. The current programme for Government provides that a new skills agency will be established. I hope that will be done at the earliest possible date. This is one of the crucial factors that are affecting the country.

I would like to say two or three things about tourism. I have already referred to the high-profile visits to Ireland that will take place in the coming weeks. My colleague, Deputy Browne, mentioned this morning that the marketing initiatives of the relevant agencies are often quite outdated. I have noticed that newspaper advertisements encouraging people to visit counties Cavan, Monaghan or Meath, for example, seem to be more numerous towards the end of the year. I have often wondered whether additional funding is made available to State tourism agencies at that time of the year. Perhaps such agencies have to spend the money at that time or risk having it taken from them. That might not be a fair comment on my part. I hope it is not the case and that this phenomenon is part of a better marketing initiative. Thankfully, Tourism Ireland has been established on an all-Ireland basis. I understand there is good co-operation between the relevant Departments on either side of the Border. When I served in government, I was pleased to have an opportunity to work with a Northern Ireland Minister, Arlene Foster, on the launch of a tourism initiative in counties Cavan and Fermanagh. I am sure that will continue under the current Government here and the new Executive in the North.

The relevant promotion agencies have failed miserably to promote Ireland to the domestic market. One of my colleagues, Councillor Pat Conaty, rang me last year after the opening of a new motorway to ask why the then Government was not placing a significant emphasis on reminding the public that Ireland is an extremely small island. If one is in south-west Cork, nowadays it does not take one as long to travel the distance to the Glens of Antrim, Derry or other parts of the northern half of this country. Similarly, journey times from west to east have decreased. The fact that all parts of this small island are within easy reach of potential visitors and tourists should be more effectively marketed. We understand the need to attract visitors from overseas, but there should be a new emphasis on ensuring people realise that the Glens of Antrim are now more easily accessible from counties Wexford and Waterford and other parts of the south east, or counties Cork and Kerry and other parts of the south west. The reverse is also the case, of course. The significant progress that has been made in reducing journey times across this island, for example by completing the motorways and improving the road network, offers great potential to the tourism sector. We should ensure we derive the maximum benefit from our infrastructural strengths in the context of an all-island economy.

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