Dáil debates

Wednesday, 16 September 2020

Protecting Jobs and Supporting Business: Statements

 

6:45 pm

Photo of James O'ConnorJames O'Connor (Cork East, Fianna Fail) | Oireachtas source

We are engaging in an unprecedented level of State intervention to combat the Covid-19 crisis. We should ensure this money is invested smartly and in a manner that future-proofs our country, not only for living with Covid-19 today but also for living in a post-Covid world. It has been a difficult time for many in this country and the virus has exposed many of the structural problems across our economy. I believe strongly we have an opportunity, as President Ursula von der Leyen stated today in her state of the Union address, to turn this "fragility towards a new vitality". We must pursue a new model of stakeholder engagement and invest smartly in the future development of our country. We need to ensure regional balance is at the centre of this new social contract. Protecting and building indigenous industries and putting sufficient capital infrastructure in place is vital to ensuring the ecosystems of local economies are sustainable and self-sufficient. I recognise the good work the Government has done in ensuring the employee-employer relationship was maintained through the wage subsidy scheme. Grants were also given to SMEs to get them through this crisis. However, we must recognise that the pandemic has fundamentally changed the way some sectors in our economy operate. There has not been enough engagement with these groups in creating a roadmap to adapt to this new normal.

I have seen at first hand the damage this pandemic has done to industries such as the aviation sector. I spoke in the Chamber last week about the need for clarity on international travel. I also met representatives of Cork Airport, the managing director of the airport and the CEO of Ryanair, along with Deputies Pádraig O'Sullivan and Aindrias Moynihan. The Government announced that we will be following the European traffic light system for travel, which is coming into place next month, and updating our current green list. However, there is a serious need for the Department of Business, Enterprise and Innovation to work with the Department of Transport, Tourism and Sport to implement the report of the task force on aviation recovery, which clearly states that State intervention within the aviation sector is required. The wage subsidy schemes are redundant if the industry is structurally broken. The estimated GDP contribution of air transport to Ireland is €8.9 billion is and the aviation sector supports 140,000 jobs. We saw what that looked like at our visit to the airport. I am extremely concerned about this issue and would like to see more engagement from the Department of Transport, Tourism and Sport. Those attending the meeting asked for that engagement and I wish to feed that back to Dáil Éireann and the Minister.

It is not only those in the financial sector and the IFSC who benefit from the aviation industry. I am talking about the pilots at Aer Lingus and Ryanair, the cabin crew, the baggage handlers and the airport staff. Many members of Aer Lingus cabin crew who are very unhappy with their treatment by Aer Lingus have been in touch with our office. I hope that airline will significantly step up its dialogue with its staff. We must also consider the countless spin-offs of employment that occur as a consequence of the well-functioning aviation industry in this country.

Reform of the national development plan, NDP, is also required to ensure this country is match fit to support businesses. In the lead-up to the budget in October we must support projects that have a net positive return for the economy. Strategic capital investment is required in a reformed national development plan to ensure strong regional growth across the country. Without a solid infrastructure base, no jobs can be supported. That is a simple fact. Over the last week, I have received news of two major school complexes in my constituency, in Carrigtwohill and Mallow, pressing ahead with tendering. These State-led projects are a prime example of ways we can reboot our economy in constituencies such as Cork East, which I represent. I am also very excited about the review of the national development plan and the opportunity for the Government to review some of the areas that had been left out of the previous plan, which was drawn up in 2014. For example, I had a strong dialogue with the Taoiseach on the need for projects such as the upgrade of the N25, which would benefit people living in parts of east Cork like Midleton and Youghal, to be included in that plan. I would like to see greater State expenditure on transport and infrastructure to ensure the skilled labourers who have returned to Ireland and those who are out of work have an opportunity to go back into employment. There is no doubt we will need massive Government support to build our way out of this recession and that should be done through building projects. I thank the Minister, Deputy Michael McGrath, for his engagement. I am aware there will be some degree of consultation with Deputies around the review of the NDP and that will be exceptionally important to ensure all of us get a chance to have some input into that process.

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