Joe Costello (Dublin Central, Labour) | Oireachtas source

I propose to share time with the Minister of State at the Department of Transport, Tourism and Sport, Deputy Michael Ring, and Deputies Noel Harrington and Peter Fitzpatrick. I welcome the opportunity to speak on budget 2014, a budget that maintains the Government's focus on economic stability and job creation. The progress made over the past few years has enabled the fiscal adjustment to be reduced from €3.1 billion to €2.5 billion, a significant improvement. I have responsibility for the Government overseas aid programme and I am pleased that, in the most difficult circumstances, we are in a position to provide over €602 million for Ireland's official development assistance in 2014. Of this, some €482 million will be managed under Vote 27 under the Department of Foreign Affairs and Trade, which manages the overall aid programme. A further €120 million will be accounted for by Ireland's share of the European Union development co-operation budget and development contributions of the other Departments. In the context of an overall fiscal adjustment of €2.5 billion, the Government had no option but to reduce public expenditure for a further year. Unfortunately, no area of Government can be immune. In these circumstances, the small reduction in overseas development assistance, of 3% on 2013, is a fair and balanced outcome.

The allocation of €602 million to the fight to end extreme poverty and hunger in the world is a hugely significant decision, which was only possible because of our commitment and the commitment of the Irish people to working with and on behalf of those in the world who face life and death choices every day as they struggle to feed themselves and their families and provide for the basic human needs. Ireland's aid programme is recognised internationally for its effectiveness, for its strong focus on Africa, particularly sub-Saharan Africa, and hunger and malnutrition, and for its partnership approach. During our recent EU Presidency and at the United Nations last month, we took the lead role in the development of a new policy framework to build on the millennium development goals post-2015 until 2030.

Our credibility internationally is built on our work in some of the poorest countries and communities in the world. The Government has reinforced our commitment to international development and its centrality to Irish foreign policy in its new policy document, One World, One Future, which we launched earlier this year. Our policy document reaffirms our commitment to reaching the United Nations target of providing 0.7% of GNP for overseas development aid when our economic circumstances permit. On current estimates, our percentage should stand at 0.46% in 2013 and 0.43% in 2014. We can be proud of what we are achieving with this funding. We can be proud of stabilising the aid budget after seven years of heavy reductions. With sustained growth in our economy and credible prospects in the years ahead, we can begin to move again towards the achievement of international aid targets.

Regarding job creation, the Labour Party in government is committed to fixing our broken economy and getting people back to work. Under the previous Government, 250,000 people lost their jobs between 2008 and 2011. While it will take time to recover, things are moving in the right direction. The latest figures show that more than 3,000 jobs are being created each month. This is a substantial number considering that the last time we were in government, in 1996, we were creating 4,000 jobs and it was the beginning of the Celtic tiger. We are getting there rapidly.

I supported the introduction of a 9% VAT rate for tourism-related activities and I was in favour of its retention this year. The tourism sector is a key sector in the Irish economy and the measure helped to lower costs during a difficult time, thereby boosting tourism and creating additional jobs. Employment in the accommodation and food service sector has increased by over 30% between the second quarter of 2011 and the second quarter of 2013, an increase of 15,000 jobs in the sector. Clearly, this is a major success. As the Minister of State with responsibility for trade, I was keenly aware of the importance of The Gathering initiative introduced in 2013 and of the hospitality sector in boosting Ireland's economy. In the area of trade, we had an increase of 6% in 2011 and 5.5% in 2012. We wait to see what the increase will be in 2013.

There was a record level of exports, at €182 million, and foreign direct investment and Enterprise Ireland activities are exceeding targets. Within that sector, there has been considerable progress. There is much in this budget that is productive and jobs orientated, considering that we are still in a bailout situation. I look forward to seeing us exit the troika arrangement on 15 December and regaining economic sovereignty.

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