Olivia Mitchell (Dublin South, Fine Gael)

Unemployment must be the major issue of concern for all Members. It is somewhat unfair that this motion refers to the jobs initiative as tokenistic. I cannot see what is tokenistic about a major reduction in VAT and PRSI rates for employers of low-paid workers. I doubt those paying for these tax cuts through the levy on their pensions would regard it as tokenistic either. The results from the initiative have also been promising which validate its direction and target. In the hospitality sector, the falling costs in VAT, PRSI and changes to the wage-setting mechanisms have resulted in a reduction in prices charged and, accordingly, an increase in tourists visiting Ireland. In the restaurant industry alone, it was recently announced it saw an increase of 500 jobs in just two months. Exports have grown, particularly in the high-value food area. This is all being underpinned by the drive to contain and reduce business costs.

I accept the motion's point that unemployment is our largest challenge as it is a real economic tragedy. If we do not stabilise the downward trend in employment, the reduction in spending power in the economy will simply reinforce this downward spiral. An unemployment rate at 14% means no family has been unaffected by the demoralising effect of unemployment.

Our economic recovery depends on a world recovery and Ireland being competitive enough to sell into that world. Regarding the latter, it is acknowledged Ireland has made progress in driving down costs. While achieving a world recovery is not in our control, preventing one is. The world financial crisis is at its most acute with market sentiment fragile and near to imploding. The last thing Ireland wants to do is be a catalyst for causing such an implosion. That is why I am surprised Members opposite call for burning the unguaranteed bondholders. I dearly wish when the bank guarantee was given in 2008 and when Anglo Irish Bank was nationalised in 2009, a stand had been taken to distance taxpayers from responsibility for those unguaranteed bonds. No one lobbied harder than Fine Gael to make that stand. However, conditions have changed. Ireland is in a bailout situation, a bankrupt country dependent on the lender of last resort as the Minister stated earlier. There are conditions to the bailout which must be observed even though we may not like them. Now, with the financial markets in such a fragile state, is not the time to renegotiate this. It is irresponsible to talk about burning the bondholders when one sees the contagion effect of a possible French bank meltdown arising from the recent suggestion that Greece may default.

Deputy Pringle referred to changes to the PRSI arrangements for self-employed people who lose their business. They must be afforded protection under the social welfare system. The JobBridge programme needs to be amended to cater for young graduates. Originally, the GradLink programme was to be incorporated into the internship programme, but few young graduates are eligible for the latter. We cannot forget about them and I would like to see the programme tweaked to allow some of them to avail of it. Young graduates, particularly science graduates, lose their skills quickly if they are not employed. Worse yet, they could emigrate. We cannot afford to lose them.

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