John O'Mahony (Mayo, Fine Gael) | Oireachtas source

I propose to share time with Deputy Alan Farrell.

I concur with many of the points Deputy Deasy made on the need for new jobs to be spread more evenly in geographic terms. I will return to this issue and how it affects my constituency in a moment.

I regret that Deputy Healy-Rae has left the Chamber. He criticised the Government for engaging in spin and accused it of hypocrisy before raising the issue of post offices. Of approximately 2,000 post offices in the network in 2001, approximately 853 closed under previous Governments in the period from 2001 until 2011 and 14 have closed since the current Government was elected. While I do not claim the Government has done everything right - mistakes have been made and other options could have taken in certain matters - it is important to bring balance to this issue and I hope to do so in the few minutes available to me.

Since the Government took office, the turbulence that rocked the country and wreaked havoc on the lives of thousands has been replaced by a sense of stability. In 2007 and 2008, it was predicted that the economy would experience a soft landing and the economic downturn would be a blip. These predictions proved groundless and the Government faced a mammoth task when it took power in 2011. Record numbers of businesses were failing, the construction industry was imploding and the only funding available to the State was from European institutions and the International Monetary Fund. It seemed the Government faced an impossible task. As a result, it was forced to make difficult decisions which affected every household either in terms of employment or income. In short, the Government had to reduce expenditure while, at the same time, protecting employment and creating new jobs. Furthermore, Ireland's international credibility was at rock bottom and needed to be restored. At a macro level, the Government had many balls in the air at once and at a micro level Deputies had many issues to contend with in their constituencies. The task facing us was not an easy one.

The Government's many successes include the reduction in the interest rate on the promissory notes, the increase of 61,000 in the number of people in employment last year compared to 2012 and a decline in the number of people on the live register for 20 months in succession. It is accepted, however, that many challenges lie ahead. For example, we must still balance the budget. In matching income with expenditure, we must try to continue to bring employment to a level that is as close to full employment as possible and ensure the thousands of people who had to leave our shores have an opportunity to return if they so wish.

If one drew a line across the centre of the Chamber, the Government side would see the glass as half full, while the Opposition side would see it as half empty. However, such an exercise would not bring us any further. Viewed another way, if the Government could have looked three years into the future when it entered office - irrespective of which parties were elected - I believe it would still have taken the current path it is on. While the job is by no means finished, the step-by-step approach the Government has pursued has yielded some success. I accept, however, that this will come as little consolation to those who do not have a job, are in mortgage distress or have homes in negative equity. People are still hurting despite the stability that has been achieved and the platform that has been created.

Tourism is one of a number of successes achieved in recent years. The reduction to 9% in the VAT rate for the tourism industry, the abolition of the travel tax and the marketing of The Gathering last year have contributed to this success. Deputy Deasy referred to the uneven geographical spread of the new jobs being created. From my observations, the recent growth in tourism appears to have been evenly spread.

Last year, almost 700,000 passengers used Ireland West Airport Knock. I chaired a study group which produced a report setting out recommendations aimed at increasing passenger numbers at the airport to 1.2 million per annum. I welcome the Government's decision to extend funding for regional airports for ten years, rather than eliminate it at the end of 2014, as had been originally envisaged. Our report estimated that €36 million will be required if the airport is to achieve its potential. Ireland West Airport Knock serves the entire west and north west region. If it achieves growth, thousands of jobs could spin off for County Donegal, County Galway, the midlands and elsewhere. In the immediate aftermath of the abolition of the air travel tax, a number of new routes were added at the airport. These will result in an increase of 80,000 in passenger numbers and generate further employment.

Much work has been done to encourage inward investment and job creation. Increasing the number of people in employment by 61,000 last year was a major achievement. The positive effects of employment growth and the green shoots of recovery can be seen primarily in urban areas. While cities and towns clearly need employment growth given their populations, delivering jobs to smaller towns and villages is proving a problem. In County Mayo, Allergan in Westport is expanding, while Northgate has started operations in Castlebar. On the other hand, jobs have been lost at Homecare Medical Supplies and 700 jobs are under threat at Elvery's which employs 180 people in County Mayo. The proposed management buy-out of Elvery's should proceed to ensure jobs at the company are protected. The loss of 180 jobs in Mayo would be equivalent to the loss of 1,000 jobs in Dublin.

To return to the need to ensure a better spread of new jobs, it will be necessary to review IDA policies and strategy. The two major employers in my constituency base of Claremorris, CBE Limited and DeCare Dental, established operations in the town as a result of a local connection to the town rather than any efforts made by the IDA. Between them, these two companies employ upwards of 400 people. What this example shows is that the criteria applied by the IDA result in many areas that need employment failing to secure new jobs. Claremorris has a MAN or metropolitan area network, a fibre network that makes the town an ideal location for investment. A greater geographical spread of investment is required. Thirty or 40 jobs in small towns such as Ballyhaunis, Kiltimagh, Knock, Charlestown, Swinford, Foxford or Ballinrobe would be equivalent to 500 jobs in a large urban centre.

The Mayo County Manager and head of the county council's enterprise section are enthusiastically pressing ahead with the establishment of local employment offices or LEOs. These offices can provide mentoring for small businesses that deliver two, five or ten jobs. In some ways, these jobs have a more lasting effect than major investments. The local employment offices offer great potential in that regard.

There are challenges ahead. A big issue for my county is that of grid network infrastructure. All of this requires community buy-in. I welcome the establishment of an independent commission to investigate undergrounding of the pylons. If we continue to steamroll communities, progress will not be made. It is not an option either to do nothing. There is a need for a meeting of minds on this issue and for community buy-in. While much progress has been made more needs to be done. I have no doubt the Government will not take its eye off the ball in the years ahead.

See this speech in context