Timmy Dooley (Clare, Fianna Fail)

I thank the proposers of the motion for giving us an opportunity to discuss what is one of the most important issues facing the Government and the House. It is right at this stage that we have a general review of the jobs budget or jobs initiative - I will not get into parsing the words. What was sold at the time of the election was that when the now Government parties came to power they would introduce appropriate measures, bring a budget before the House within a set number of days and set about resolving the jobs crisis.

Deputy O'Dea referred to the jobs initiative, has largely been a failure. The Government pinned much of its activities, resources and efforts on the tourism sector at a time when that sector was recovering. The Government set its targets against one of the lowest levels tourism had seen for many years, largely influenced by the ash cloud which occurred the previous year and which had skewed numbers completely off target. It would be a trick to suggest that growth rates in excess of 10%, 12% or 15% would be the result as that was happening in any event. The extent to which the VAT reduction in particular has had on activity is marginal. To boil it down, the simple fact of the matter is that the 4% reduction in VAT on a meal for two would not pay for a cup of tea for one afterwards. This is the minuscule effect it has had on the tourism sector.

As Deputy O'Dea stated, the measure will remove €800 million from the pockets of pensioners over a full year period. These are people who genuinely spend money, but if they are frightened and uncertainty is created about their future they will not spend. It is my view, and over time statistics will bear this out, the net effect of transferring wealth from pensioners to the VAT reduction will be a destabilising effect on the economy, because money is being taken from those who spend. A little confidence would have allowed these people to continue to plan for their future and spend as they always have done. This is a real issue.

During the course of the election campaign, the Government parties attacked the previous Government for the introduction of the travel tax. We had reduced it to a relatively nominal figure and were using it to support and promote the activities of Fáilte Ireland and Tourism Ireland with regard to attracting inward investment. The Government parties stated they would abolish it, set about doing so but have so far failed in the attempt. It has failed to achieve success with the airlines and has failed to convince them of the necessity to attract greater tourism levels. It has failed to meet their demands and needs.

I have sat on the other side of the House and I accept airlines are difficult to deal with, particularly one which is among the largest in Europe. They do not negotiate easily and they certainly do not assist governments. The Government parties seemed to be on their side when they were on this side of the House and made it sound very plausible and easy, that all the airlines needed was tender loving care and, lo and behold, the bedrooms of Ireland would be filled with tourists from overseas. The Government has not succeeded in doing this. It would be nice if we had a little humility and acceptance with regard to the issues that have had to be faced.

I will remind the Government of the historical context in which it fought the election and what was included in the programme for Government. There was much talk about the strategic investment bank, which would be the panacea to create jobs. I have not heard much about it recently. The Government has spoken much about banking and the implementation of the banking strategy we put in place-----

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