Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

Like other speakers, I believe the progress made to date by the Government is significant. General indicators show our debt is now very much sustainable and that growth has returned. Unemployment levels are dropping; employment is increasing and there is low inflation. Generally, therefore, progress is reasonable.

I wish to talk about challenges at national level and those that arise for me at local level as a Deputy in Limerick city. With regard to national challenges, I wish to take up a point on Professor Morgan Kelly's commentary on the SME sector. The challenges are such that there is a need to ensure we can decouple property debt from the business and working capital debt of SMEs. In many cases during the Celtic tiger years, sound businesses invested in property, thus affecting their capacity to maintain and create jobs. Our first priority must be to ensure mechanisms are put in place to decouple property debt from business debt. Ironically, this was done for the banks through NAMA in that many of the development loans causing difficulties for the banks' balance sheets were transferred to the agency. We must consider doing something similarly creative for the SME sector.

As the economy continues to grow, we must ensure the banks can provide adequate capital, particularly where bridging finance is required by companies for building projects. Thus, if there are opportunities in the marketplace, the banks should provide funding in advance. This might arise where funding is required to build a small estate. Typically, a company may need to invest in plant and equipment to create and export products. We must create an environment in which people can establish an enterprise culture in the SME sector and must reward them for doing so. As we all know, the multinational sector is vital, but SMEs are the backbone in terms of job creation.

Locally in Limerick city we have made significant progress in the past three years. Limerick local authorities will be merged into one after the next local elections. At executive level, this has happened. There is a Limerick city economic plan for the period to 2030, but we need to consider strategies for rural villages. Doing so is vital. In County Clare the relevant villages include Parteen and Ardnacrusha. On the Limerick side, they include Castleconnell, Moroe, Cappamore, Caherconlish, Doon and Ballyneety. It is a question of putting a mechanism in place to ensure they can survive and prosper.

Multinational jobs are being created consistently by a wide range of companies across a range of sectors, which is very welcome. I visited Dell only last week and learned that it employed 1,000 people in Limerick consistently in value-added jobs and creative areas. This is to be welcomed.

In Limerick, in partnership with the Shannon Airport Authority, we are putting in place a plan for a diaspora centre. The national diaspora centre, proposed under the Department of Transport, Tourism and Sport, will, if successful, be a major provider of jobs and spin-off economic activity in the region, including Limerick city. I am very supportive of the project, on which I am actively engaged as it will bring major benefits to Limerick and the wider region.

See this speech in context