Peadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

For the past three years, the Government's economic policy has favoured all sectors of job creation other than local indigenous business, even though the latter is the most productive and sustainable sector in the long run. We certainly welcome foreign direct investment, but an over-reliance on FDI is dangerous in the longer term.

In its press statement today regarding the Action Plan for Jobs, I noted with an ominous sense of déjà vu that the Government is focusing on jobs in the construction sector. We have called for more investment in housing construction to meet the need that is there. We acknowledge that ensuring adequate supply is very important. However, current Government tax policy is resulting in speculators piling into the housing market in a number of narrow pockets throughout the State, elbowing potential home owners out of their way. This has a second negative impact, other than the implications for potential home owners, in so far as enterprise is essentially competing with property for funds. Indeed, the current capital gains tax regime is in danger of soaking up all available funds to the detriment of local indigenous business. Moreover, the vast majority of FDI is going into Dublin and to a far lesser extent Cork, to the detriment of the rest of the country. This is resulting in a two-tier economy.

Focusing on indigenous business is the way to create a regional balance in the development of enterprise, and the county enterprise board has heretofore been the tool to do that. I take this opportunity to acknowledge the many people who have worked on the boards over the years. They have not always been right in what they have done, but it is also the case that they have not always been provided with the necessary funding to do what they wanted to do. Since 2008 or so, when Batt O'Keeffe was Minister, they have not had any direction. Instead, they have had a sword hanging over the heads. Yet they continued to transfer funds and knowledge to start-up businesses and micro-enterprises at a time when such were badly needed. In some ways, the skills and knowledge residing in the country enterprise boards will be diluted as a consequence of this legislation. My concern is that the culture of the local authority will become the culture of what was formerly the country enterprise board, and not vice versa.

I urge the Government to ensure that the new structures are properly funded and supported into the future. We must create a balance within our enterprise mix which places local manufacturing and internationally tradeable services at the centre of a sustainable growth path.

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