Martin Ferris (Kerry North-West Limerick, Sinn Fein)

Thank you, a Ceann Comhairle. As my party colleagues already have pointed out, the most notable aspect of the jobs initiative is its modesty in comparison with the election promises made by both Government parties. Gone are the ambitious plans to create multi-billion job creation programmes and to initiate a comprehensive stimulus programme. Instead, they are reduced to raiding the private pensions sector, having already followed the previous Government in committing the National Pension Reserve Fund as collateral for the overwhelming and unsustainable bank debt.

The simple fact is that by agreeing to continue to implement the IMF-EU austerity programme, both parties have been forced to abandon their undoubtedly genuine desire to have tackled the unemployment problem in a more meaningful way. The reason they have been forced to do so is that the IMF and the EU have no interest in the sort of stimulus package that would help to get us out of this mess but are insistent that whatever money is floating around will be used primarily to pay off the outstanding debts. It is apparent from the updated agenda underlying the ironically named IMF-EU stability programme published last week that they do not envisage any real improvement in the jobs situation. Indeed, on page 13 of that update it is bluntly stated "the unemployment rate is set to remain high over the forecast horizon". This is despite the fact the IMF takes a fairly positive view of global economic growth, which it is forecast will be reflected within Europe over the next few years. Unfortunately, the benefit of any such upturn will not accrue to those in this State who will remain on the dole, whose wages will remain under attack and whose overall standard of living will continue to fall as we remain indentured to the bank debt.

It also appears the IMF and EU believe that whatever employment growth might take place will come about not as the consequence of a stimulus package but through cutting wages. It will be interesting to hear what the Government's response will be to the current review of the employment regulation orders and registered employment agreements, if as expected, it recommends that employers be allowed to opt out of agreements setting wage rates for 300,000 mainly low-income workers. The publication of that review, which I understand already is in the hands of the Minister, Deputy Bruton, comes at a time when low-wage employers in the fast food sector are awaiting a High Court decision on their application to opt out of the employment regulation order, ERO, in the catering sector and other similar applications are pending. It is clear that both the IMF-EU and the employers' organisations expect the reversal of the cut to the national minimum wage will be offset by the undermining of the structures and agreements in place to protect other low-paid workers. If the review complies with the clear intent of the IMF as stated at the time of the bailout, to review the wage orders with a view to elimination, then the race to the bottom will have begun in earnest. Employers will regard it as a green light to slash wages across a whole range of sectors with a view not to creating new jobs but to increasing profits.

Profits in low-wage sectors already are healthy. According to February statistics on European hotels, Dublin hotels enjoyed an increase in profits of 40%. As occupancy rates were also among the highest in Europe, there is not much of a case to be argued that the sector requires that its staff have their wages slashed. Moreover, it is ironic that at the very time it was presumably reaping the benefits of those profits, the O'Callaghan Group, which owns the Davenport Hotel, attempted to force members of staff to agree to the cut in the minimum wage as part of their contract.

I certainly agree with the Minister, Deputy Noonan, and with my constituency colleague, the Minister for Tourism, Culture and Sport, Deputy Deenihan, that tourism represents a way to create jobs. However, this will not be and should not be done by attacking the wages and conditions of the people whose work forms the basis for tourism in this State. Moreover, those who are employed in this sector primarily are women on low incomes.

Another aspect of the jobs initiative should be touched upon. As I already have noted, the ambitious plans to create a major jobs fund have been downgraded to a levy on private pensions. Moreover, as stated previously, the reason is that the IMF and EU will not allow the State to inject the sort of funds promised during the election. However, large amounts of money could be accessed were the State more imaginative. For example, recently released statistics show that more than 90% of Irish pension funds are invested overseas. We also know from the Central Statistics Office, CSO, that staggering amounts of money nominally under the control of Irish residents and institutions are invested in overseas securities. At the end of 2009, these amounted to a total of €1.25 trillion. When we contrast this with what someone described as the pathetic level of private capital investment in the State during the Celtic tiger years, something is drastically wrong. Not only are the ordinary people of the State forced to pay off the gambling debts of a small number of failed bankers and speculators, but others of that ilk continue to refuse to invest in the real economy when there are more than €200 billion of funds owned by Irish residents and institutions invested in Britain.

This has been the pattern over the history of the State. It was the refusal by Irish banks and people with wealth to invest in manufacturing that led to the arrival of overseas firms attracted by IDA grants and a skilled workforce. That sector remains important, but we also need to examine ways to ensure that a proportion of the vast funds invested abroad are instead invested in the real economy. It would represent a massive stimulus to job creation in place of the modest proposal we are debating. Ironically, €29 million will be spent on this jobs initiative, but the visits of the Queen and the President of America will cost us more than €30 million.

In my constituency, approximately 26% of workers in Tralee in County Kerry are unemployed, twice the national average. Under an initiative begun by the global pharmaceutical centre of excellence, GPCE, some 5,000 jobs will be created in Tralee. This number would not only be significant for Tralee and north County Kerry, but for the entire region. It is an ambitious programme, a great deal of money has been invested and much has been done to try to make the dream become a reality. I do not say this lightly, but the State agency, IDA, has done nothing to help. Time and again, requests for meetings with the leadership of the IDA have been refused. The Taoiseach has met the group behind the GPCE proposal while the Minister for Tourism, Culture and Sport, Deputy Deenihan, representatives throughout the county and I have been actively supporting the proposal's fruition. A proactive approach on the part of the Government is urgently needed. It must instruct the IDA to be proactive in trying to secure the GPCE. The project can and will happen if this type of commitment is forthcoming. The GPCE would provide a significant lift to a depressed area.

Coastal areas have suffered considerably. Rural coastal areas have depended on the fishing and construction sectors primarily and, to some degree, small to medium-sized farms. Unfortunately, the fishing sector has suffered a large decline, not just during the past two or three years, but in the past decade. This has been because of insufficient quota to make a viable living. Small family farms are under significant pressure, with many of those employed on such farms having been raised on them. Their escape valve was the construction sector. Once the economic stimulus in peripheral Ireland, it has since collapsed. I cannot stress enough the importance of proactively trying to ensure that people with skills, ability and training are allowed to make a contribution to society via meaningful jobs with meaningful wages. If we create jobs with meaningful household wages, we create spending power and, consequently, more jobs. It is essential that this consideration be taken on board.

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