Peter Fitzpatrick (Louth, Fine Gael) | Oireachtas source

I welcome the opportunity to discuss the Government's economic policy. As Deputies will be aware, economics is defined as a social science which analyses the production, distribution and consumption of goods and services. In the context of Ireland and the benefits that are accruing as a result of the Government's policy, it is easy to identify numerous national successes. Each night, as I cross the Boyne cable bridge in my constituency of Louth-East Meath, I see the benefits that have accrued.

In 2011 Ireland returned to economic growth. Real GDP increased by 1.4%, the first annual increase for some time. In the first six months of 2012, it increased by 0.5%. This compares favourably with the Department of Finance's forecast of 0.7% GDP growth for the entire year. Between 2007 and 2010, GDP decreased by 17.1%. In the context of employment, the Government inherited a jobs market that was in free fall. More than 250,000 private sector jobs were lost from March 2008 to March 2011. The numbers on the live register peaked at 448,000 in August 2011. The number of jobs in the private sector has increased by 16,900, or 1.5%, since the first quarter of 2011. While total employment fell by 13,700 in the second quarter of 2012, the vast majority of these job losses were due to the public sector reform programme. There was a net increase of 6,000 jobs in IDA Ireland companies in 2011. This pattern has continued in 2012 ,with 5,000 new jobs announced in the first six months of the year. Major announcements since March 2011 include: the creation of 1,000 jobs by PayPal in the town in which I reside, Dundalk; the creation of 800 jobs by Sky, the creation of 500 by Mylan; and the creation of a further 500 by Apple.

One area in which I am particularly interested in that which relates to mortgages. The pace of mortgage arrears slowed in the first quarter 2012, following a rapid rise during 2011. The Government's strategy has four aspects, namely: the rolling out of resolution strategies by the banks; new personal insolvency legislation to incentivise banks to reach an agreed solution with borrowers; the offering of comprehensive advice, including via a new website and an independent financial advisory service; and a mortgage-to-rent scheme to keep families in their homes.

Another area of economic policy on which I am particularly focused is that of jobs and job creation. My constituency has been fortunate enough to have welcomed some large international companies since this Government entered office. The Government halved the 8.5% lower rate of employers' PRSI on weekly wages of up to €356, thus aiding employment in low skilled sectors. The OECD has welcomed this scheme and advised the government to extend the PRSI reduction past the end of 2013. The government also introduced a reduced rate VAT of 9% in respect of tourism-related activities. Overseas visits in 2011, at 6.62 million, were up 7.9% on 2010. Under the Action Plan for Jobs 2012, more than 270 measures will be implemented by 15 Government Departments and 36 agencies to make it easier for businesses to commence operations, expand, export and create jobs. Employment in accommodation and food service activities is up by 10,600 since March 2011.

While great successes, these are only the beginning. The Government acknowledges this fact. In that context, we are determined to continue and not rest on our laurels. We are also determined to continue this good work and create a meaningful and lasting economic future for this country.

See this speech in context