Simon Harris (Wicklow, Fine Gael)

Setting the context in any debate is important. Debates and initiatives do not occur in a vacuum. The jobs initiative that the Minister unveiled in the House this week is only required due to the gross incompetence and failure of the previous Fianna Fáil-led Government. It is difficult to take in this House or anywhere else lectures on limitations, or perceived limitations, of any initiatives from a party which has brought us to this brink. The steps proposed here could have been introduced by any Government at any time but they were not. It is telling that the first major initiative of this new Government has recognised that job creation is at the core of its mission.

I very much want to welcome the targeted 4.5% reduction in the VAT rate. This was a clever, targeted and focused measure and, from my experience as a former director of the board of Wicklow Tourism, I agree with the Minister that there is huge potential for growth within our tourism industry. This measure will also provide crucial and essential assistance for local small and medium businesses. Only yesterday morning I heard on radio a hairdresser outline how this new rate will help her business remain sustainable and retain local employment. The halving of the lower rate of PRSI will also make it easier for businesses like hers to take on additional employees in the future.

The additional funding for capital projects is also a very welcome initiative. In my constituency of Wicklow the €1.39 million of extra funding for our roads will help create jobs while also repairing some of the damage done in our locality in the recent past due to the severe weather. The retrofit programme aimed at helping householders to save money by increasing their energy efficiency is also to be praised.

I was encouraged by the comments of the Minister, Deputy Rabbitte, on national radio this morning that he will work with both pillar banks and energy supply companies to ensure consumers can get the maximum benefit from this scheme. This effort in itself makes this Government more energy conscious and green friendly than the previous Government. There is clearly no need for a Green Party here.

However, I want to ask the Minister to take up the need for a European-wide jobs initiative with his colleagues. The Taoiseach, the Minister for Finance and the Minister of State with responsibility for European affairs should pursue this with colleagues in the European Union. Europe has been seen as talking purely about banking in this economic crisis but there is a role for the EU and ECB to play in terms of job creation. The European Union and the ECB could learn from this Government's initiative. We saw what happened in Argentina where they created more than 2 million jobs in less than four months with a job guarantee scheme. I ask the Minister to raise this issue with his colleagues in the European Union.

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