Dáil debates

Wednesday, 15 October 2014

Financial Resolutions 2015 - Financial Resolution No. 3: General (Resumed)

 

5:35 pm

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail) | Oireachtas source

I congratulate the Minister of State, Deputy Simon Harris, on his appointment and wish him every success in his new role. He is certainly getting a baptism of fire.

Government Deputies getting carried away on the back of yesterday’s budget pronouncements should keep an eye on today’s international markets, which show the weakness of the world economy. So many of the promises and expenditure commitments made yesterday were based on the assumption of a strong world economy. Ireland is still the most open global economy and depends very much on exports. The US trade figures released several days ago suggest a weakening US economy, however. As we are entering a period of considerable uncertainty in the Middle East, as well as uncertainty over global health issues, I wish there were more prudence on the part of Members opposite, as well as respect for some of the different arguments made on this side.

Yesterday, the Minister for Jobs, Enterprise and Innovation published a statement announcing that IDA Ireland would invest in creating 13,000 new jobs in 2015. This is what the agency has done for the past two years. As Deputy Tóibín said, this shows a complete lack of ambition and willingness in the Department to push the job creation agencies. We have the best development agency in the world in the IDA, but it has to be pushed. Net losses for IDA jobs last year came to 6,296. When taken from the new net jobs created, 13,367, the total number of jobs created actually came to 7,071. It will look more or less the same for 2014.

Similarly, the Minister said Enterprise Ireland would create 13,000 new jobs this year, as it did last year. After everyone has cheered, when one takes the losses out one can see that only 5,542 net jobs were created. Between the two agencies, they created only one set of the promised 13,000 jobs. That again shows the predominance of spin over substance and announcements over actual jobs which characterises the Minister’s tenure in the Department of Jobs, Enterprise and Innovation.

For this reason, we must focus and put an emphasis on local entrepreneurs and local enterprises. Initially, I welcomed the establishment of the LEOs, local enterprise offices. Four months on, however, I am sceptical as to their impact on the ground and their consistency across the country. I am concerned that Enterprise Ireland, as the lead and parent organisation of LEOs, did not and could never understand the role of the local entrepreneur who is not interested in being an exporter or flying around the world and for whom tax breaks for spending time out of country mean nothing. I see nothing in this budget that will assist the local entrepreneur.

I welcome the extension of the trading online scheme, but only €5 million will be spent on it this year and only €3 million next year. We should be putting more money into this scheme to get more people to trade online. For retail, online is the future. No matter how small a retail outlet is, if it is not online it does not have a future, because the generation coming after us - the generation of the Minister of State, Deputy Simon Harris - will do everything online. The notion of fluttering around shops will be utterly alien to them. Again, this measure shows there is no ambition or absolute hunger within the Department to pursue new avenues when it comes to enterprise.

Last week during the Roscommon-South Leitrim by-election, I met a gentleman who will soon employ six people in Carrick-on-Shannon and is hoping to expand his business in Athlone. The first communication he got from a State agency was from Roscommon County Council informing him that he owed €6,500 in rates on the building in which his business was based. There was no mention of the contact details for the LEO, the employment incentive scheme or the various other enterprise schemes that the Government trumpets. Essentially, before he opens his door to do business, he is told to give the local authority €6,000, and never mind his potential to create jobs. That culture that pervades the permanent government came across yesterday too. The support of entrepreneurship was just words. The Minister for Finance said small and medium-sized enterprises were the lifeblood of the economy, but then slapped a 3% tax increase on entrepreneurs who earn over €100,000 as opposed to a PAYE earner on the same. At the same time, he introduced a welcome scheme to encourage more executives in multinational companies to relocate here. For an executive in a multinational company with all the backup that provides, we will roll out the red carpet and change the tax code. However, we will hammer a local entrepreneur who puts his or her neck on the line every day of the week for an extra 3% if their earnings go over €100,000. That is not the culture we need. We need a culture that says to someone who has the guts and courage to put their neck on the line to start up a business that we will support them. We also need to say that if it is not successful, we will support them in getting back on track. There is nothing in the budget in this regard, however.

I have lost count of the number of promises made by the Minister for Jobs, Enterprise and Innovation about the launch of the new regional enterprise strategy. He promised it would be before the end of December, but the IDA has said it will be in the first quarter of next year. While the IDA continues to pump investment into the big cities at the regions’ loss, we are recreating all the problems of pressure on property and rental values. We cannot continue to ignore the regions.

Dúirt an Teachta Tóibín nach bhfuil aon toradh ann don údarás. Tá buiséad an údaráis scriosta agus níl tuiscint ar bith ag an Rialtas do na fadhbanna atá ag gnóthaí sna Gaeltachtaí. Tá sin soiléir ón mbuiséad a d'fhoilsigh an tAire Stáit, an Teachta McHugh, inniu, mar níl toradh ar bith ann do na daoine atá ag iarraidh gnóthaí a bhunadh sna Gaeltachtaí nó sna réigiúin. Regardless of whether it is a Gaeltacht or a region, there is little interest in supporting those economies.

We in County Mayo were expecting an announcement on the long-term support of Ireland West Airport Knock. Up to 700,000 passengers will go through the airport this year. It employs 110 people, contributing more to the State in PAYE and PRSI than the State contributes in its subvention. It needs support. I make no apology for laying this on the table of my constituency colleague, the Taoiseach. It is time for him to put up or shut up. It is time to remember that this airport is not just for Mayo but for the region. The Minister for Finance, Deputy Michael Noonan, had no problem in putting on the Limerick and Munster jerseys when it came to bailing out Shannon Airport. It is time the Taoiseach put on the jersey for the west and supported Ireland West Airport Knock. We are not looking for a handout but for an investment that will repay itself many times over.

The Minister for Communications, Energy and Natural Resources, Deputy Alex White, earlier spoke about the budget being the right balance. Many Labour Party Ministers have patted themselves on the back about this budget, claiming we are on the road to recovery. For the past 20 months I have been working on the case of a smashing young fellow with Down’s syndrome. It is incredible what the system has made his parents go through just to get a GP card - not the medical card for which they originally applied - and the LTI, long-term illness, book. The boy’s mother informed me this morning that while they are grateful for both, they have been turned down for the child’s standing equipment, walking aids and back and harness supports.

She received a letter recently stating that the LTI scheme does not cover these items. The e-mail goes through the prices, and the woman says that her husband is handy at fixing things. The physio has been helping by ringing around to see if anyone is finished with aids. Her husband has welded a few pieces on and the physio is happy enough, but would prefer one that was not broken. The physio also told the woman that the child would not walk until he was three years old and that it would take longer if he did not get the equipment he needs. We cannot talk about recovery and a fair budget while we allow that to happen - while we allow the parent of a child with Down's syndrome or any disability to be put through the wringer by this system, or while we delay a child's being able to walk because we do not provide him with aids. The Government should not talk about recovery, getting the right balance or fairness while this happens on the Government's watch.

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