Seán Sherlock (Cork East, Labour)
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I wish to share time with Deputy Michael D. Higgins.

John O'Donoghue (Kerry South, Ceann Comhairle)
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Is that agreed? Agreed.

Seán Sherlock (Cork East, Labour)
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In recent times, November has been one of the best months of the year for the Minister for Finance. Today, of all days, will tell a different story. The serious decline in the housing construction market clearly confirms the continuing fall in Exchequer receipts from taxes such as stamp duty. Exchequer figures for November show that total tax receipts are almost €2 billion behind the target set out in last year's budget. The Department of Finance signalled last Friday that taxes collected this year would be approximately €1.7 billion below target.

What will today's budget bring and what will be the Minister for Finance's priorities for the economy for the year ahead? With inflation running at 4.8% — among the highest rates in Europe — the scope for an expansive budget is limited. The budget is very relevant to the Fine Gael motion. There is not a great deal in that motion with which I disagree. The issues of competitiveness and rising labour costs are key drivers for any economic outlook. The budget will determine whether the calls within the motion will bear fruit.

My colleague, Deputy Penrose, outlined a number of fundamental points relating to the lack of investment in infrastructure and issues of public sector pay. It is true that infrastructural spending in this country is well below par. There may have been serious spending on inter-urban routes such as that between Cork and Dublin, but there are still regional disparities which have not been sorted out. How long does it take a train to get from Dublin to Sligo? If a burst water pipe can turn Dublin's principal motorway into a car park for eight hours, then what can we seriously expect from a Government that is lunging from one crisis to another? There are secondary and non-national roads throughout this island that are rarely travelled by Ministers, and that eminent backbencher from south Kerry himself admitted that if there was a pothole to be filled in the absence of the Ceann Comhairle, he would look after it. Should we be living on an island as prosperous as this with even one pothole to our name in this day and age? The fact they exist at all is a testament to the lack of investment in non-national roads throughout the country.

In regard to broadband, there are parts of north Cork where people are still dialling-up to access the Internet. Dialling up in 2007 is a joke. Data published by the European Commission shows that in 2007, 74% of households in the Netherlands have broadband access compared with 31% in Ireland. Who is responsible for ensuring that Ireland meets its goal of becoming what the Government calls a "world-class knowledge economy" in just over five years? How can we compete on a global scale if the roll-out of broadband is at such a paltry level?

The Fine Gael motion calls on the Government to take necessary actions on public sector pay. It is difficult to comprehend just exactly what this means. The vast bulk of both public sector and private sector workers are operating at wage levels that keep them and their families' heads just above the water-line. A total of 1.5 million people have salaries worth less than €38,000. To survive on a wage of €38,000 in today's terms is a difficult task. Real people operate and survive within this bracket, but they are under pressure in this society. Their mortgages have increased and they have borrowed to meet the demands of day to day living. They are overworked, overcharged for child care and overstretched. Their average basket of food items is increasing at a rate of 4% to 5% per annum. People on this income bracket can ill afford to absorb such increases, yet they are the back-bone of this economy.

Today the Minister will present the usual budget of tax and social welfare changes. He must look at this income bracket and provide some measure of relief to increase real income to offset the increasing cost of living. Fianna Fáil made generous election promises on health, education and justice with more teachers, more gardaí and more consultants promised. Today will tell whether the Minister intends to fulfil those promises.

There is a nervousness about Ireland's economic prospects, and much talk of a tight budget. This motion largely addresses those concerns. There is a school of thought that says we should not play politics with the economy. I do not wish to score points, but I do want to remind this Government that its handling of the economy has a bearing on people's jobs and their mortgages and how they provide for their families. In supporting the spirit of this motion, but not the full tenet of it, we believe it is the role of an Opposition to contribute constructively on how to maintain economic prosperity and further economic development.

There are serious issues about our competitiveness and we have to face up to that. However, there is also a lot that is positive about the economy. In that respect, as a nation we need to focus on opportunities. The economic review and outlook, produced by the Department of Finance last month, predicted that the economy will grow by about 3% next year. It is not what we would want but it is growth and we should acknowledge that. We still need to focus on the possibilities. Growth in the economy is no longer driven by the export of goods. However, growth of services exports is very healthy. We need to continue the focus on sectors such as sales, research and development and high-value traded services. We need to ensure, not just that we invest in research in our universities, but that the knowledge being generated is turned into commercial activities and that young indigenous companies survive.

The agricultural sector is a mainstay of our economy. Food and drinks exports account for over €8 billion. We must also look to our rural economy and ensure that investment continues in the agri-food sector. We ignore the potential of the rural economy at our peril. At the same time, we must continue to ensure we can attract foreign investment.

Michael D Higgins (Galway West, Labour)
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I welcome the opportunity of saying a few words. It is very easy to speak against the Government amendment to the motion. The motion has some very good proposals, but there are some points with which I disagree.

This is a sad day for my constituency because we have just lost 500 jobs, so competitiveness is not an abstract discussion. I find it extraordinary that the larger parties in this House failed to discuss the price we have paid for a speculative version of the economy. There is nothing vague about this. In the Minister's speech last night, we heard about the contribution the mortgage payment makes to inflation. How does this come about? Between 1995 and 2000, our growth rate was sustained by an export performance. Between 2000 and 2005, exports often went in the wrong direction and our growth rate was sustained by a revaluation of the property base of the economy. The unchecked speculative tendencies, supported by the large parties of this House, have gone like a dose of salts through the economy, making it impossible for two people on modest incomes to afford even a first home. We must look at where real productivity is taking place in the economy. There are 250,000 small and medium enterprises hiring 800,000 people. In serious economics, we need to be able to look at the productive base of the economy. We also need to be able to look at the genuine factors that are affecting competitiveness.

We have an opportunity this afternoon regarding the hidden agreements made by the semi-State bodies to sell their assets. For example, CIE offered to sell some of its property to release money for the capital programme in the national development plan, disgracefully abandoning responsibility to public transport.

The Ministers of State here today are people for whom I have respect and I listened with great care to the Minister last night. There is a need for an integration of life-long learning, to which the Minister referred in his speech. It is ridiculous that all the different Departments and agencies place difficulties in the way of a worker who wants to go back to his or her education. There are huge impediments to getting off social welfare and going back to education, or going from a low-paid, low-skilled job into further education.

John Maynard Keynes once said that one should begin to worry about the economy if the ratio of difference in incomes between the people at the top and the bottom increased by more than 50 to one. What about when it is 5,000 to one? Will anybody speak about the immorality of non-executive directors of banks and other companies rewarding themselves with outrageous salaries, which they then deliver into ostentatious expenditure? The only people who salivate at their performance are those who write in the Sunday Independent. Do not ask the hundreds of thousands of low-paid civil servants, many of whom are drawing family income supplement, to watch on while these slobber at the trough and the media admires them.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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I wish to share time with the Minister of State, Deputy Michael Ahern, and Deputies Power, Nolan, Thomas Byrne and White.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Is that agreed? Agreed.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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"The old order changeth, yielding place to new," said Tennyson, in a poem which begins, "So all day long the noise of battle roll'd", capturing the turbulence and soul searching which great changes often bring. The trouble with Ireland, unlike Camelot, is that the old order is taking too long to change, despite the noise of economic battles, and introspection is not providing radical alternatives. Neither is Fine Gael, in the person of its spokesman, who seems bent on presenting to the world an image of this country which is damaging, dismal and disingenuous, the product of a mind and a party more concerned with political point scoring than national advantage.

James Bannon (Longford-Westmeath, Fine Gael)
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The Minister should wake up.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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I will first deal with public sector reform, the elephant in the room, the old order that must change. We and the trade unions are requiring public service personnel to provide services to a modern economy within a system and a culture that are outdated and inefficient. Companies and individuals in the private sector, who contribute enormous sums to the public purse, are demanding change as are many, quietly, within the public service whose potential remains untapped and inhibited by a culture that drives out initiative and restricts the desire and need of individuals to have some control over the work they do. It is time for all stakeholders in the public sector to come together to help create for this country a modern, state of the art public service system. A system that will enable the people within it to realise their full potential, giving Ireland the vibrant, creative, confident, competent and professional service that it must have to maintain its success and to continue to grow.

Pretending that Ministers can change systems and mind set in months, or years, is a political game that takes up too much time in this House. Last week Labour and Fine Gael sought to blame Deputy Harney for a system that everyone in this House knows has been slowly falling apart for the past 25 years.

James Bannon (Longford-Westmeath, Fine Gael)
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The Government let down every woman in this country.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Deputy Harney cannot change the direction or the culture of that Titanic in three years. It will take longer, cost more and will be a hard slog for a Minister whose courage and ability no one has any reason to doubt, but whose hands are tied, as everybody here knows, by faction fights, vested interests and inertia.

Terence Flanagan (Dublin North East, Fine Gael)
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These are more excuses.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Labour and Fine Gael came into this House knowing this.

James Bannon (Longford-Westmeath, Fine Gael)
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Deputy McGuinness pretends to look in when it suits him.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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However they couldn't resist the call of the headline and the lure of cheap publicity, which they put before the respect they should have for someone who is doing a great job in difficult circumstances on behalf of this country. I have no difficulty admitting that we have made mistakes.

James Bannon (Longford-Westmeath, Fine Gael)
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Many mistakes were made.

Terence Flanagan (Dublin North East, Fine Gael)
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Plenty of them.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Neither have I any difficulty in understanding how and why those mistakes were made and accepting them as the natural consequences of a steep learning curve. Change, ideally should be the child of foresight and planning, but is frequently an orphan who arrives on the doorsteps of governments, commercial enterprises and individuals bearing gifts or problems, or both, all needing immediate attention. When favourable trade winds, aided by the horse trading ability of the Irish, began blowing billions of euro into a system which for generations had dealt with pennies in a ponderous, conservative, and reactionary manner, something was bound to give, and it did. On the Committee of Public Accounts I watched decent people time and again trying to explain why millions of euro had disappeared down financial black holes that they did not have the experience to anticipate or the ability to prevent. These were the growing pains of a nation, the cost of moving from nickels and dimes to billions, the inevitable consequence of winning the European jackpot. It revealed the inability of the system to cope, but how could it be avoided? Awash with money and short of experience we made mistakes. We created enough boards to empty a rain forest and enough safe hands to provide goalkeepers to the world. We also created an economic miracle that is the envy of the world and released a spirit of adventure and creativity that has made Ireland and Irish companies significant and respected players on the international economic stage.

How dare the Opposition in the Irish Parliament denigrate all this endeavour for political gain? How dare they deny the evidence of their eyes and try to talk the country into a recession?

James Bannon (Longford-Westmeath, Fine Gael)
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The Government is bringing it down.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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How dare they twist statistics and exploit understandable mistakes to make petty political points? How dare they use exterior events over which we have no control as examples of mismanagement?

James Bannon (Longford-Westmeath, Fine Gael)
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What about the e-voting machines and PPARS, when the Government squandered more than €300 million of taxpayers' money?

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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It is true that we made mistakes, but it is untrue that we could have prepared in any real way for the fact that we were going to do so well. Infrastructure development of all types everywhere follows success as, initially, do mistakes. Nobody can prepare for something that may happen, the extent of which is unknown, by spending money yet to be earned. It is disingenuous to suggest otherwise. Countries such as Dubai, India and Russia are still desperately trying to improve their infrastructure and grappling with the effects of wealth, with varying degrees of success, and they all have low wages or vast natural resources, or both. Nor is it true that inflation, the fall of the stock market and rising interest rates are problems faced only by this country. They are worldwide problems. They affect us, but there is little an open economy can do about that except stand and fight and that is what this Government and country are doing.

Low-skill manufacturing has moved to low-cost countries. It always does. That is economic reality, not Government mismanagement. It is also an indication of how successful we are. It was inevitable that our agriculture sector would be pressed by international market forces to consolidate and rationalise. That has happened. Now agriculture and the food companies reliant on it are reaping the benefits. If Fine Gael members wish to believe the sub-prime lending debacle, the fall in the dollar, the increase in the price of oil and China's voracious appetite for raw materials is the responsibility of Fianna Fáil, they may do so, but I doubt anyone believes them. I doubt they believe it themselves, but they have come into this House in the hope of persuading the public that it is the case. That unworthy task, that three card trick, has now been exposed.

James Bannon (Longford-Westmeath, Fine Gael)
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Deputy McGuinness did not read the World Economic Forum report.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Can the Opposition Members tell me, with their pockets full of flawed statistics, the answer to one question? How is it, amid all the doom and gloom they laid before us yesterday, that the Central Statistics Office announced this morning that Ireland is creating a net extra 1,300 jobs a week? Please explain.

As an economy we are where we should be: fighting for our share of the high-end markets of the world and promoting Ireland as a location for multinationals who also serve that market. We are doing so with vigour and confidence, using the experience gained at the boardroom tables of the world over many years by organisations such as Enterprise Ireland and the IDA. They have experience, ability and significant Government support. They are doing a good job. In my work I will support and assist the SME sector.

The State is more efficient in the use of funds. Major infrastructure developments are coming in on time and on budget. We have, and continue to attract, companies that need exceptional skills and are prepared to pay for them and we are producing top class companies of our own. We continue, at an increasingly fast and confident pace, to improve our transport and broadband infrastructure and our IT networks. We have some way to go, but we are getting there and we are more confident about and focused on what we are doing.

The Government recognises that Irish third-level educational qualifications should not just be common, but should also be universally recognised as hallmarks of academic excellence and, to this end, the Government continues to invest heavily in education. We should in some way seek to bring together Pythagoras and Picasso, the sciences and humanities, for the benefit of both, providing we do not dilute the primary degree. At a time of worldwide economic upheaval it is easy to forget this country has come far and fast and that Ireland continues to be a destination of choice for inward investment and a hotbed of local endeavour and enterprise. The Government will ensure this continues.

Michael Ahern (Cork East, Fianna Fail)
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I am delighted to have the opportunity to speak to the House on this important topic. It is time to dispel this fashionable pessimism about our economy and Ireland's competitiveness performance which is unfortunately gaining currency and which is a denial of the facts.

Terence Flanagan (Dublin North East, Fine Gael)
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We are realists.

Michael Ahern (Cork East, Fianna Fail)
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Such unbalanced comments undermine the work of our development agencies and public servants in trying to win markets and gain business for Ireland. Across the world, our competitors are constantly vying to take market share from us. The competitiveness model which Ireland has to follow is one where innovation, talent and flexibility are our acknowledged core competencies. At EU level there is a renewed emphasis on intensifying the pace of implementation and delivery of the Lisbon reform programme for growth and jobs and for raising the levels of innovation, both technological and non-technological, across the EU. The EU Commission's assessment of Ireland's performance is that we are making good progress in the implementation of the Lisbon strategy through our national reform programme.

James Bannon (Longford-Westmeath, Fine Gael)
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The Government is introducing stealth taxes.

Michael Ahern (Cork East, Fianna Fail)
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The underpinning role of the social partnership process and the range of commitments agreed under Towards 2016 is also acknowledged. The National Development Plan 2007-2013 further demonstrates a level of investment and a range of measures across the policy spectrum which reinforces this strategy. The European Commission places Ireland in the first tier of member states with the strongest record and progress in pursuit of the Lisbon goals. As far as the Department of Enterprise, Trade and Employment's responsibilities are concerned, Ireland scores highly in terms of best enterprise environment due to the ease of starting a business, good access to capital and relatively low levels of administrative red tape.

The significant sums the Government proposes to spend on science, technology and innovation over the lifetime of the National Development Plan 2007-2013 will bring Ireland into line with research and development performance in leading countries and enhance the development of a knowledge-based economy. Our development agencies, particularly Enterprise Ireland, are committed to delivering on these objectives. Enterprise Ireland has achieved significant success in reaching and exceeding its own ambitious targets over 2005-07. Growth in global markets through the internationalisation of Irish companies is a core element in our strategy towards sustaining wealth and employment creation in Ireland. This process of transformation will continue to be relentlessly driven. Support for this transformation will continue to involve extensive engagement with the SME sector.

During last night's debate it was stated that the indigenous sector has been neglected. This is quite untrue. It totally misrepresents the policies that have been introduced to reflect the recommendations of the Small Business Forum. It also completely ignores the extensive reorganisation that has taken place in Enterprise Ireland and other agencies to provide more effective programmes and opportunities to the indigenous sector.

Finding new ways to compete, as well as restoring cost competitiveness, presents a major challenge and an opportunity to develop an innovation driven economy and society which maintains competitive advantage and increases productivity. Innovation has no policy borders. We will, therefore, continue to strive for consumer-driven innovative products and services as well as developing new business models, organisational structures and skills for innovation.

The services sector is an emerging area where innovation can be better exploited, for example in the area of environmental goods and services and renewable energy. New thinking on services innovation is required to adapt to new models of economic activity emerging in the globalised marketplace.

As a small open economy Ireland is particularly vulnerable to external factors which weaken its cost base. The solution lies in supporting innovation, improving the productivity of labour through balanced regulation, increasing knowledge and skills and in playing to our strengths by tapping into our innate ability as networkers and for building partnerships. Success does not depend on Government and policy alone. It requires a joint commitment by enterprise, society and Government to promote innovation in every sphere of business and public service.

James Bannon (Longford-Westmeath, Fine Gael)
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We have not got that joined up thinking on the Government side today anyway.

Michael Ahern (Cork East, Fianna Fail)
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We are building a consensus around the creation of a national innovation agenda which combines an awareness of the depth and breadth of innovation activity already taking place and supported by our development agencies, with a determination to stimulate the demand for more innovative products. With that in mind I will shortly be publishing a comprehensive policy statement which will act as a guide to our approach in fostering innovation demand and an innovation culture in the economy and society. In his contribution last night, Deputy Morgan mentioned the all-island aspect of competitiveness. In this policy statement I will take account of innovation policy activity in Northern Ireland where it can contribute and help in the context of our innovation agenda.

International investment decisions to invest here are not merely goodwill gestures. They are made on the basis of hard facts, critical evaluation and the attractiveness of this country as a good place to invest. Ireland continues to attract a high share of global investment products and consistently scores high in comparative surveys and indices of FDI flows. FDI investment in Ireland is five times greater than the OECD average and——

James Bannon (Longford-Westmeath, Fine Gael)
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It is 47th in the world and the roads are in 60th place.

Michael Ahern (Cork East, Fianna Fail)
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——-it is number one in the OECD for greenfield foreign investment sites.

James Bannon (Longford-Westmeath, Fine Gael)
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Irish ports are as low as——

Michael Ahern (Cork East, Fianna Fail)
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The Deputy should not forget that and should not be running down the IDA for the successful work it is doing.

I shall conclude by saying intellectual property, IP, is a valuable asset in its own right and must be protected and managed to enable technology transfer and commercialisation to flourish. A favourable regulatory and taxation regime exists in Ireland for intellectual property, including protection in the services sector and assistance and supports on how to manage IP rights are provided by Enterprise Ireland. I commend the amendment to the House.

Peter Power (Limerick East, Fianna Fail)
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I shall keep my contribution short to allow in other speakers.

I welcome the opportunity to contribute to this debate in the context of the budget and yesterday's announcement from Abbott. There has been very little discussion in this debate of the key tests to measure our competitiveness from a policy perspective. There is a plethora of external indicators and factors that all affect our competitiveness. However, we should be concentrating in this debate on our competitiveness from a policy perspective. How can we influence and change things ourselves? The new chief executive of the IDA, Mr. Barry O'Leary, said recently that over recent months the Irish media had been focusing almost exclusively on job losses. Despite that, he said, we have shown a remarkable ability to replace lost jobs with new and higher value activities. What we need in this country, he added, and it was sadly lacking from the Fine Gael benches, is fresh thinking in this matter.

James Bannon (Longford-Westmeath, Fine Gael)
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The Deputy should read Fintan O'Toole's article in The Irish Times.

Peter Power (Limerick East, Fianna Fail)
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The problem last night was there was no fresh thinking and no new ideas, vision or strategy. Instead, we were treated to a rant of rhetoric and negativity, the like of which I have rarely heard in this House. There was almost blind panic at the Abbott announcement yesterday, ignoring the fact that for every 500 jobs lost 1,800 are created in this country. This is a sign of a party not sufficiently confident to express any positive alternative and not mature enough to embrace the realities of a modern economy.

James Bannon (Longford-Westmeath, Fine Gael)
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Over 2,000 jobs have been lost this month alone.

Peter Power (Limerick East, Fianna Fail)
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In contrast, look at the positive initiatives as regards competitiveness set out by the Government in the recent past. The strategic innovation fund, PRTLI, which has benefited the University of Limerick, Science Foundation Ireland, research clusters, the strategy for technology and science, the innovation voucher initiative, Enterprise Ireland's research and development scheme, and most importantly, the national skills strategy aimed at upskilling the workforce. Where were the matching policies or the alternatives last night? The reality is there were none. We were treated to a tirade of negativity from the Fine Gael Party.

James Bannon (Longford-Westmeath, Fine Gael)
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Where is the infrastructure, the roll-out of broadband, Eircom etc.?

Peter Power (Limerick East, Fianna Fail)
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In the limited time I have I want to make two points. A key test as regards competitiveness has been, and always will be, employment levels. Competitiveness is always directly linked to labour supply and employment levels and almost uniquely in OECD countries, Ireland has maintained historically high levels of labour market participation and extremely low levels of unemployment. I have a final concluding remark. Surprisingly, from the Opposition benches there was no mention last night whatsoever of what is perhaps the most important factor driving competitiveness, in terms of FDI and economic growth in the last few years, namely, our corporate tax regime, which is under direct attack from some elements in Europe. These are determined to undermine that regime and there was no mention of this last night from the Opposition. We need, however, collectively to send a message to the effect that the Government is determined to resist and fight all efforts to undermine our very attractive corporate tax regime.

M J Nolan (Carlow-Kilkenny, Fianna Fail)
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I welcome the opportunity to speak on this motion. It is timely that it should come when we have seen major job losses in Galway. It is important to point out, however, that for the 500 jobs lost there we are creating twice as many. We are creating more than 1,300 jobs net weekly and this cannot be lost on the Members of Fine Gael who have tabled this motion. To succeed we must be competitive and clearly the international commercial fraternity seems to believe Ireland is competitive and a good country in which to set up. While we may be losing some low-skill jobs, which are by their nature mobile — we have seen many of them move to the Far East — they are being replaced by high-quality well-paid jobs. It is affording an opportunity to Irish students and young people in particular to——

James Bannon (Longford-Westmeath, Fine Gael)
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We lost 500 high-quality jobs in Galway yesterday.

M J Nolan (Carlow-Kilkenny, Fianna Fail)
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The Deputy has been going on since I came in here. He is a windbag. Will he stay quiet?

We are a competitive country and will continue as such. Inflation has to be addressed and it will be. In this afternoon's budget I have confidence the Minister for Finance, and indeed the Government, will continue to pursue those policies which have succeeded in making this economy competitive, creating good quality jobs on an ongoing basis.

James Bannon (Longford-Westmeath, Fine Gael)
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High taxes, insurance levies — you name it.

M J Nolan (Carlow-Kilkenny, Fianna Fail)
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We are in the middle of probably the biggest downturn in 20 years and because of the prudent and progressive management of the economy, I have no doubt we shall see that through and come out on the far side, in a year, two years or whenever with enhanced employment. Last year we saw for the first time that more than 2 million individuals were employed. That trend will continue and it affords an opportunity for Irish people to live and work at home. In the short time I have I want to thank the Minister for Enterprise, Trade and Employment for ensuring that a quality employer such as Merck Sharp and Dohme, MSD, has set up in Carlow. We have a 65 acre business park there which it has taken over and we look forward to welcoming MSD and many other foreign companies under the Government's FDI programme. Because of the stewardship of the country and the economy I believe we shall see many more.

Thomas Byrne (Meath East, Fianna Fail)
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Listening to the sneering and slagging from the Opposition, is it any wonder the creators of jobs in this country did not support them in the general election? They have no new ideas or fresh thinking. They have no approach to this issue except sneering and slagging.

My next point on opposing infrastructural projects such as roads may apply more to the Labour Party than to Fine Gael. Moving Drogheda port to Bremore on the border of my constituency will create a large number of jobs in the area. However, the usual voices of opposition are heard. This is not to state that it should not go through a planning process but that when we state we support an infrastructural project, we do everything we can to push it forward.

Damien English (Meath West, Fine Gael)
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This is a bit hypocritical in the current climate.

Charlie O'Connor (Dublin South West, Fianna Fail)
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The speaker, without interruption.

Thomas Byrne (Meath East, Fianna Fail)
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I am a new Deputy and I will take the Acting Chairman's guidance.

I wish to acknowledge the companies in my constituency that provide jobs. By and large they are small and medium enterprises established by local people who took a risk with the support of a competitive environment and a supporting Government. Deputy Nolan mentioned the intervention of the Minister for Enterprise, Trade and Employment, Deputy Martin, in Carlow. He also intervened in the village of Drumconrath in my constituency to ensure jobs were retained. The people of Drumconrath and I are grateful for this.

We must push forward with infrastructural projects such as ports and roads and stop opposing. We must recognise it is not doom and gloom. We are not going down the Swanee. We are fighting forward and perhaps creating more jobs than ever before. We have enormous sympathy for companies such as Abbott and Coca Cola. Coca Cola is not directly located in my constituency but more than half its workforce comes from my constituency. It will close down and that will be a big blow to my constituency.

We and the Opposition must recognise that jobs are created all the time. Deputy Peter Power stated that 1,800 jobs are created for every 500 jobs that are lost. We do not want to lose high quality jobs but all sides must acknowledge that jobs are being created all the time. We seek the big names and high quality jobs but we must keep focusing on local people who are willing to be entrepreneurs and become leaders in their communities by employing people and keeping people in rural communities where enterprises can locate.

I will encourage the Government to do everything it can to encourage small and medium enterprises to establish at appropriate locations in rural areas. I do not intend the countryside to be overrun but people should be encouraged to remain in their areas and develop their communities.

Mary White (Carlow-Kilkenny, Green Party)
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I welcome this opportunity to debate the competitiveness of the Irish economy. There is no more opportune time for the House to debate this issue than as we prepare for the budget this afternoon.

While we must not be complacent about economic competitiveness in a small island country like ours, which has suffered much from poverty and economic hardship in the past, it is important in this debate to take stock of how successful and competitive our economy has been in recent years. Ireland has experienced an economic spring brought about by its business people and entrepreneurs and it remains part of the business civilisation which spans the globe. Despite the downturn in the housing market over the past year, GDP growth in Ireland from June last year to June 2007 was 5.5%, comparing impressively with the 2.5% growth rate in the eurozone and 2.8% in the 27 EU countries.

The Opposition needs a good dose of reality today——

James Bannon (Longford-Westmeath, Fine Gael)
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Deputy White is sitting there wearing the green.

Mary White (Carlow-Kilkenny, Green Party)
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——when it alludes to Irish export rates falling below peer countries. I remind the Opposition that the rate of exports continues to grow. It was 7% for the first half of this year compared with an average of 5.2% between 2000 and 2006. Two weeks ago I noticed one of the Sunday newspapers had two pages in its main section with the banner "Financial Apocalypse". For all the talk of economic decline and Armageddon, we have virtually full employment, lower unemployment than in the US or the OECD average and, to the disappointment of many foreboders in this country, there was a decrease in the seasonally adjusted unemployment rate between the second and third quarters of this year.

James Bannon (Longford-Westmeath, Fine Gael)
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It must have been another Green Party report.

Mary White (Carlow-Kilkenny, Green Party)
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Put that in your pipe and smoke it.

We must not, however, be complacent about our economy's competitiveness. The housing market is slowing down, which is not helped by high interest rates that have to be endured by mortgage holders. The lure of foreign investment is being challenged by cheaper workforces to the east, in Europe and beyond. Now is the time to shift some of the emphasis and be alert to our competitiveness.

Fine Gael, in its motion, calls for Government action on inflation. There is no disputing that inflationary pressures such as rising energy prices are placing strain on the economy. However, Green Party influence in government will ensure a decrease in energy costs. The realisation of climate change and the increasing realisation that peak oil is imminent have brought about the beginning of a change in attitude to energy supply.

Never has there been a greater opportunity for us to become somewhat self-sufficient in energy supply.

Michael Creed (Cork North West, Fine Gael)
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That should drop inflation next year.

Mary White (Carlow-Kilkenny, Green Party)
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The measures being taken by my Green Party colleagues in the Departments of the Environment, Heritage and Local Government, Communications, Energy and Natural Resources and Agriculture, Fisheries and Food are leading to changes in consumer and business behaviour.

The promotion and increased facilitation of renewable energy generation, the total of €149 million for research and development in energy sources in the national development plan and the industries deriving from these points of focus will mean the creation of thousands of jobs and a large reduction in energy costs, which is a key factor in keeping us competitive.

Other ongoing developments add to our successful economy. Ireland is consolidating itself as a knowledge economy. Ireland's strength will not be in steel rolling mills, car plants or ship yards but in the educational ability of our people. A total of €2.8 billion will be invested in science, technology and innovation during the lifetime of the national development plan. Third level expenditure on research and development has been growing at more than 7% since 2004 with Irish Exchequer funding of higher education research and development increasing on average by double digit figures in recent years.

I welcome the spending of more than €200 million in the business and technology park in Carlow by the major company Merck. As Green Party spokesperson on enterprise, trade and employment, I will continue to encourage the Government, a party of which I am proud to be a member, to develop our business sector and support our tourism industry to realise its full potential. The image of Ireland is of a clean, green country, and we must capitalise on our breath-taking landscapes, walking trails, local gourmets, businesses, micro-energy and business promotions, the promotion of organic and non-GM food and our hospitable culture. In this regard, Government support for the tourism and food industries will see increased growth in indigenous industry and less economic reliance on foreign investment.

Competitiveness is being sustained in what is a fundamentally healthy outlook for the Irish economy. This morning, business media proclaimed that for every 500 jobs lost in Ireland we are gaining 1,500. The green energy revolution is upon us and we can capitalise on it. There is 7% investment in renewable energy business at present. We can push this to more than 50% as happened in parts of Germany.

This revolution will have a marked effect on our economy. It will include a new wave of opportunities and employment. Energy supply will be secured. Investment in education will sustain a knowledge economy and Government measures will ensure support for enterprise, small and large businesses, and foreign and indigenous industry.

Charlie O'Connor (Dublin South West, Fianna Fail)
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I call on Deputy English and assure him the Chair will remain consistent in protecting speakers from interruption.

Damien English (Meath West, Fine Gael)
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I have no doubt the Chair will do so and I will try to mention Tallaght in my speech if I can. I wish to share time with Deputies D'Arcy, Flanagan, Ring, Creed, Bannon and Breen.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Is that agreed? Agreed.

Damien English (Meath West, Fine Gael)
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Before I forget, I wish to point out to Deputy Peter Power that corporation tax of 12% was a rainbow Government initiative. We agree with it and believe in it because we started it. We will certainly keep it and will even improve on it. People speaking here often forget reality and I wanted to point that out.

I will not speak about doom and gloom, I will speak about confidence and where we need to go. We will speak about new ideas, but in my speech I wish to focus on what we can fix, and the Government has a direct role in fixing. As a party, we are prepared to work with any Minister or Department on new initiatives and ideas but we also have to face the facts. According to a recent ISME survey, business confidence in Ireland has plummeted to a four year low. Small businesses, particularly in the distribution, retail and construction sectors, are markedly less optimistic about the prospects for the economy than they were one year ago. The slowdown in the housing market and the continuing erosion of competitiveness are feeding the gloomy mood. However, the Government seems to have no effective game plan for tackling the challenges we face other than to mouth the usual platitudes.

The Minister of State's contribution was probably the most honest I heard today. He admitted that mistakes were made. I agree with him that we have had some success but we cannot continue to look backwards instead of developing confidence and competitiveness for the future. We must keep our heads out of the sand. It will not be easy because an effective plan is needed to reduce costs and inflation and to make us more competitive. The single biggest challenge facing small businesses in Ireland is competitiveness. The cost of doing business has increased significantly due to a mixture of high inflation, strong growth in wages, particularly in the public sector, increases in the cost of State services and a greater burden of regulation. It is now 8% more expensive to do business in Ireland than in Britain.

The Government's attempts to address this issue have been driven by public relations rather than policy. Put under pressure by Fine Gael and Eddie Hobbs to deal with inflation, the Government decided in a blaze of publicity to abolish the groceries order. Fine Gael opposed the decision because we did not believe it would impact on prices and feared it would significantly affect small suppliers of the multiples. Abolishing the groceries order had little or no impact on the price of food, although it did lead to a reduction in the price of alcohol, the benefit of which remains to be seen. Thankfully, Government Deputies are to lead a review of the abolition.

As any economist could have pointed out to the Government, food inflation was never the real problem. Between 2000 and 2006, the consumer price index rose by 27.5% but food prices rose by 16.2%, below the overall rate of inflation. Ireland's high rates of inflation and costs of business are driven by charges for water, refuse and miscellaneous services, which have increased by a whopping 239%. The cost of electricity has increased by 52%, motor tax by 27% and rail transport by 32%. In other words, the main price increases have occurred in services provided by the Government or in the utilities it regulates. As far as businesses are concerned, the Dick Turpin of rip-off Ireland is the Government rather than the private sector. This morning, the CEO of the IDA appeared before the Joint Committee on Enterprise, Trade and Employment, where he admitted that the contribution charges imposed by local authorities are having a serious effect on business location decisions.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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They were voted on by some of the Deputy's colleagues.

Michael Creed (Cork North West, Fine Gael)
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They were introduced by the Government.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Both sides should allow Deputy English to speak without interruption.

Damien English (Meath West, Fine Gael)
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If we want facts, I accept ——

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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The truth would be fine.

Damien English (Meath West, Fine Gael)
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The Minister of State should listen to me. In certain counties, councillors from all parties have been forced to vote on charges. They are too high in some counties but fair in others. They were introduced because the money provided to local authorities for infrastructure projects was cut. When I was first involved in local government, the average contribution from a local authority to infrastructure projects was 10% to 15%. The contribution at present is approximately 30%. The CEO of the IDA admitted this morning that the contributions affect business.

Insurance and telephone costs have decreased but these are outside Government control. The increase in Government controlled charges is a major problem which must be addressed. A process of real reform is needed to bring about value-for-money governance. In the past two years, 35% of all new jobs created in Ireland have been in the public service, yet I know of nobody who would say there has been a 35% improvement in its quality. On the contrary, we seem to be going backwards in a number of areas. Controlling the public sector is key to this but, given the pay awards given to the Cabinet, I am not convinced that will happen. The Government needs to instill a belief in service in the public sector. I do not believe, however, that every Minister will provide the leadership required in that regard.

The retail and planning guides are being reviewed in the UK by that country's Competition Commission. I hope the same does not happen here because the retail guidelines work very well and we do not want them changed. If anything, we need to do more to support small businesses in our towns, which might require giving more funding to local authorities to make our towns more accessible for work and shopping. Just because the UK decides to make changes, I hope we do not go down the same road because doing so would seriously affect our competitiveness without reducing inflation.

Michael D'Arcy (Wexford, Fine Gael)
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I speak as a new Deputy as well as a businessman. I was disappointed in the contribution of the Minister of State, Deputy McGuinness, whom I respect. One would think that Fianna Fáil had just entered Government rather than having been there for 18 of the past 20 years. There have been some positive initiatives, such as the success of the economy, but there are also negative factors. The job of Government backbenchers is to slap Ministers on the back and tell them what great fellows they are, but the job of the Opposition is to point out inadequacies and failings so that the Government will address them. I was interested to hear Deputy White's contribution. The only element missing from her conversion to Fianna Fáil was the de Valera style cailín looking out over the half door and having us all speak in Irish.

One of the major negative factors is broadband availability, in which we are lagging significantly. We are told that we are near the European average but we are only marginally ahead of countries such as Bulgaria, Poland, Slovakia and Hungary. These are hardly the examples by which we should style ourselves. It is disturbing how far we lag behind countries such as Japan, with 90 MB, or France, with 44 MB.

I have two companies in County Wexford which have no access to broadband, whether wireless or cable, even though they employ more than 200 people. They find it embarrassing that when they receive telephone calls, they have rush into internet cafés in the town to download broadband data. The Minister of State is, like me, from the south-east region, where three towns with populations approaching 10,000 people, namely Gorey, Enniscorthy and New Ross, have no connection to MANs. That is an absolute disgrace given that towns with populations of fewer than 1,000 are connected to MANs. The Government must take stock of the facts we are setting out.

Deputy English touched on some of the issues in regard to how the Government is influencing inflation. Not alone did the Government change the Planning and Development Act 2000, but it also removed the provision in the legislation for imposing planning and development levies. The Minister of State criticised Fine Gael members for voting in development levies but local authorities were obliged to introduce them. The Government took the Act from the Statute Book and replaced it with a requirement that the local authorities had to impose development levies or lose income.

Foreign direct investment in Turkey for 2004 was €3.5 billion. In 2007, it is expected to be €25 billion. Countries such as Turkey are moving on while Ireland moves backwards.

Lifelong learning has a positive role to play and must be made available at all FETAC levels because it offers people opportunities to advance, irrespective of when they leave education.

Terence Flanagan (Dublin North East, Fine Gael)
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I am pleased to have an opportunity to speak to this timely motion before the House and thank my party's spokesperson on enterprise, trade and employment, Deputy Leo Varadkar, for tabling it. Tackling competitiveness should be an urgent priority in budget 2008. The foremost priority of the Minister for Finance when he makes his Budget Statement this afternoon must be to rebuild competitiveness and boost productivity. The National Competitive Council's annual report, which was published recently, is an indictment of the Government's record in this area. The report sets out the many challenges we face in this area, including the shift of growth from being export and productivity led to domestically driven growth which is dependent on new jobs in construction and public services for increases in GDP.

The unfortunate slowdown in activity in the property market and increasing unemployment mean many challenges lie ahead. Ireland's price and cost environment remains distinctly unfavourable towards firms and households. General cost levels are among the highest in the European Union and the position is worsening, with inflation rates still among the highest in the EU. In response to these developments, labour costs are increasing across a range of sectors at a rate well in excess of the EU average, which increases the threat of a wage-cost spiral.

Physical infrastructure remains poor and despite high levels of investment, Ireland's international rankings in this regard have not significantly improved since 2000. Our transport, energy and ICT infrastructures, upon which so many of our exporting sectors depend, lag behind those of our counterparts in the OECD. The Government must ensure we bring inflation under control. Currently running at 4.8%, it is doing untold damage to business and is affecting our competitiveness. The Government needs to tackle rising business costs by setting an inflation target of 2%, as requested in the motion.

The Government must also take the action needed on regulatory reform, public sector pay and taxation to ensure the inflation target is achieved. We need better value for money regarding our infrastructure projects. We also need to promote the creation of a lifelong learning culture and develop better performing higher level educational institutions.

The loss of 500 jobs yesterday at Abbott Ireland in Galway shows the scale of the economic crisis affecting the economy as another large employer falls foul of international competition.

Michael Ahern (Cork East, Fianna Fail)
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It has nothing to do with the economy.

Michael Creed (Cork North West, Fine Gael)
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Will the Government sort out the problem with Amgen?

Michael Ahern (Cork East, Fianna Fail)
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That has nothing to do with the economy either.

Terence Flanagan (Dublin North East, Fine Gael)
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Abbott Ireland has been a great employer, providing the type of high-end biomedical jobs Ireland is supposed to be attracting but is instead losing as our competitiveness declines. The deficit in broadband services is one of the road blocks to competitiveness. Ireland languishes behind other countries in league tables of broadband penetration. This and the slow speed of broadband services here affects our ability to attract high-tech industries. Recently, the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, diverted €10 million of the funding allocated for broadband investment to the budget for the greener homes scheme. This sends out the wrong signal.

Tackling competitiveness should be an urgent priority in budget 2008. I hope the Minister for Finance heeds the motion.

Michael Ring (Mayo, Fine Gael)
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I congratulate my party's spokesperson on enterprise, trade and employment, Deputy Leo Varadkar, on tabling the motion. It is time the Government started to live in the real world. The serious economic problems being experienced daily were evident yesterday when Abbott Ireland in Galway announced it would close. I knew something was afoot when the Minister for Enterprise, Trade and Employment, Deputy Micheál Martin, visited Castlebar the other day to announce a €70 million package for a company in the town. While the announcement, which will not deliver new jobs, was welcome, I knew bad news was on the way. One must watch out when a Minister visits an area to make an empty announcement. The bad news duly came and further bad news will soon come because Ireland is no longer competitive.

Indirect taxation is creating a major problem. People cannot afford to pay the stealth taxes imposed on them and small businessmen are being crucified by local authorities. They do not get value from the rates and must pay water and refuse charges to cover the cost of increases in the salaries of local authority employees, which should be covered by central Government.

Tesco and Dunnes Stores are destroying small businesses. In England communities are coming together to try to stop multiples from locating in smaller towns because they are destroying businesses and jobs. Deputies say one thing when in opposition but do nothing about it when they cross the floor. That applies to all Governments. It is time we gave small businesses, which provide employment, a chance.

The other day, a businessman in my constituency informed me that the costs of rent and the charges he pays to the local authority for water and rates mean that he will not be in business next year. He has a young family and will have to apply for social welfare payments, which is not good for the country. It is time small businesses were supported. Representatives of local authorities should be told they cannot pass on higher costs through stealth charges.

Is the backbench Government Deputy who I heard giving out about the Opposition listening to people on the ground? The reason we are losing jobs and that investors no longer want to invest here is that the Government has become arrogant, believes it knows everything and will not listen to anybody. Companies, particularly in the manufacturing industry, can invest in Britain and other cheaper parts of Europe. The Government needs to live in the real world.

Michael Creed (Cork North West, Fine Gael)
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One of the great myths successfully perpetuated during the recent election campaign was that Fianna Fáil is competent in economic matters. I look forward to the Minister for Finance, Deputy Cowen, explaining to the House today how, in 12 short months, the surplus of €4 billion he presided over last year has become a €2 billion deficit. This development destroys the myth that he and the Government are competent in economic matters. We hear that the Government will borrow money. While I have no difficulty with borrowing for sound economic projects, I do not trust the Government in this matter because we have seen where Fianna Fáil borrowing led us before.

On a point raised by Deputy English, one of the cornerstones of our economic success in the past 40 years was the introduction of free secondary education by the former Minister for Education, Donogh O'Malley. A further pillar on which our recent economic performance was built was the delivery by the former Taoiseach, Mr. John Bruton, of a corporation tax rate of 12.5%. Now we see Fianna Fáil Ministers sitting around tables in Europe threatening to negotiate changes in the corporate tax rate and thereby undermine one of the foundations of our economic success.

Michael Ahern (Cork East, Fianna Fail)
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That is a typical remark and it is completely untrue.

Michael Creed (Cork North West, Fine Gael)
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It is a fact. Competitive issues impact on our constituencies. On 28 June, I raised under Standing Order 32 the threat to 120 jobs in Molex Ireland in Millstreet, but unfortunately my request to adjourn the Dáil to debate the issue was ruled out of order. Since then, the job losses have been announced and 120 people in this small north Cork town face a new year of uncertainty and unemployment, as do their colleagues in Abbott Ireland in Galway. Molex Ireland is just one example of companies in rural areas relocating to more favourable locations due to competitive and cost issues.

Ireland has lost considerable cost competitiveness in the past five years and is no longer viewed as a prime location in which to do business. Rural areas will continue to suffer most at the hands of a Government which has failed to manage these issues and provide suitable infrastructure in rural areas. Deputies referred to roads and broadband. A report published by Agri Aware this week on the future of the Irish economy, particularly in rural areas, points out that one of the significant characteristics of Irish economic performance in the past couple of decades has been the imbalanced nature of economic activity and development, with the eastern seaboard doing significantly better than most other parts of the country.

To date the national spatial strategy has not succeeded in achieving its objectives of generating more balanced regional development. Rural areas are still not seeing the sort of infrastructural investment necessary to generate economic activity. Rural Ireland is still not a focus of policies aimed at innovation and economic dynamism. Take for example infrastructure as basic as broadband and roads. Many parts of my constituency still await the roll-out of first generation broadband. We have heard the Government speak of third and fourth generation broadband. We certainly feel as if we are on the hind tit in rural Ireland.

Macroom and Charleville, towns in my constituency, desperately need a bypass. The Macroom bypass is not on the Government's inter-urban routes or the Atlantic gateway and we have been told recently by the Minister for Transport, Deputy Dempsey, that we will have to wait at least until 2015 before that is completed.

The nature of EU funding is changing. I notice that the Gaeltacht areas in my constituency will not have a more competitive advantage in terms of relocating industry than any other part of the country. That is a further failure of a Government that has paid lip service to the Irish language.

A small industrialist in my constituency paid more than €300,000 per annum for electricity supply. Last year he negotiated a new supply at significantly less cost for the units of electricity he would consume. However, because of regulator charges, over which the Government has presided he has to pay in addition to the cost of the units, of the order of €60,000 to €70,000 to a regulator, so that his net bill for electricity has increased. That is a damning indictment of a Government that professes to care about economic competitiveness and is evidence in a single case of how the Government has failed.

James Bannon (Longford-Westmeath, Fine Gael)
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Ireland is currently on the high road to nowhere unless investment is urgently put in place to counteract infrastructural deficits, and if our economy is to retain its competitiveness. According to the latest global competitiveness index, compiled by the World Economic Forum, Ireland's infrastructure was ranked poorly at 47th and is the most problematic factor for those wanting to do business in Ireland. The report ranks Irish ports as low as 64th best in the world, roads at 60th and rail infrastructure as low as 55th. Traffic congestion is costing business more than €2.5 billion per year.

Ireland's share of world trade has been declining since 2002 and as a result net exports, that is exports less imports have contributed virtually nothing to national economic growth since 2003. In a huge blow to Irish competitiveness, our inflation rate is growing at a rate of 38% faster than the rest of the Eurozone.

According to the Sunday Independent,"Messrs. Cowen and Ahern are master muddlers". I would be inclined to say "experts at muddying the waters". The Government's election manifesto was based on miscalculated growth targets, but we are told that we should not be afraid as what was promised will be recycled and repackaged for the next two or three years, or hopefully less in the short lifetime of the current Government.

The inescapable fact is that Ireland's competitiveness is foundering on the shaky foundations of our substandard infrastructure. Rural Ireland is suffering continuing job losses as demonstrated by the loss of 500 jobs in Abbott's in Galway and 32 in Longford yesterday. With further manufacturing job losses likely and agriculture also set to be hit, unbalanced regional development policies need to be changed. The Government cannot stand idly by and allow rural Ireland to become more economically depressed.

The past ten years will be regarded as a wasted decade. A debt fuelled property and construction boom has provided unprecedented resources to the Exchequer but they have been largely squandered by the Government and a Minister for Finance with no thirst for reform but a huge appetite for reckless spending.

The Government and Eircom have been jointly responsible for an appalling performance in the delivery of broadband services across the country and particularly in Longford-Westmeath.

Rural Ireland is losing money, time, jobs and investment and cannot afford further Government mishandling of the telecoms sector. The inadequate investment to date in broadband roll-out, rail and road infrastructure and waste disposal, is placing a heavy burden on businesses in the form of higher costs.

I have no doubt that the multitude of taxes and levies imposed by the Government has raised the cost of production and depressed jobs. What is needed is an industrial strategy and that is not evident in current Government policies. This is the general principle that has served this country well since Alan Dukes' Tallaght strategy of lower taxes and higher skills. I have much more to say if time permitted. The Government should be ashamed of itself for the way it has performed during the past 11 years——

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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So should the Deputy because he has given misinformation in this House for the past two nights. He has misquoted statistics. He is a disgrace.

James Bannon (Longford-Westmeath, Fine Gael)
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——and it has let down the Irish electorate which has been shown by the opinion polls over the past three weeks.

Pat Breen (Clare, Fine Gael)
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D-Day has arrived and this afternoon the Minister for Finance, Deputy Cowen, will rise in this Chamber to deliver his Budget Statement. The Minister said during the election campaign, when referring to the economy, "There has been a transformation in Ireland in the last ten years". There has been a transformation all right, the boom has turned to gloom and doom, inflation is rising, tax receipts are plummeting, the construction industry is under pressure, oil prices are at an all time high, the economic outlook is bleak and uncertain. Over the past ten years this Government has presided over Ireland's deteriorating competitiveness.

Job losses have become the norm in my region in recent months, 178 job losses at Tyco Electronics, 30 job losses at John Crane Limited, 80 job losses at Thompson Financial and 51 shed at Aer Lingus. Yesterday we heard more devastating news in the region — the loss of 500 jobs at Abbott Vascular in Galway. Manufacturing jobs are haemorrhaging from our region and the Government has failed to act.

The latest CSO quarterly national household survey confirmed that the mid-west region was the only region failing to show an increase in employment growth with the number of persons in employment falling by 2,700. These figures are consistent with the release of information to me following a parliamentary question that job numbers decreased in the Shannon free zone by 3.8% between 2004 and 2006 with the number of companies operating in the Shannon free zone reducing from 112 to 101.

Companies in the Shannon free zone spend in excess of €610 million on wages and Irish sourced materials and general sales of 3.3 billion with 70% of these sales accounted for by the international services sector. The picture is similar throughout the county of Clare. Permanent job losses have fallen from 2,735 to 2,678 in companies supported by the IDA and Enterprise Ireland throughout County Clare, excluding the Shannon free zone during the same period. Significantly though, there has been no growth in the number of companies in the county which totals 142. The IDA supports nine companies in the county, six of which are located in Ennis. I am very disappointed that we have not seen the development of new companies in other areas of the county, particularly in west Clare where the growth and development of industry is vital in ensuring that the benefits of economic and social progress are distributed throughout rural areas.

In January 2007 responsibility for indigenous industry was transferred from Shannon Development to Enterprise Ireland. In this sector prior to this it was one of the areas showing a growth in job numbers rising to 1,674 in 2006 from 1,621 in 2002. It is important that the growth of indigenous industries is encouraged and that Enterprise Ireland continues to support community enterprise centres. It is currently in discussions with such a group in Kilrush and I hope this project will come to fruition. Kilrush has been transformed in recent years.

There is no doubt the orange light is on in our region but will the Government heed the warning signs? The Government has no joined up thinking when it comes to balanced regional development. Recent months have shown how little our region features on the Government's radar. The failure to safeguard the Heathrow slots in the region is unnerving the already nervous industrial sector. With 70% of sales from the industrial estate to international markets the loss of this connectivity will add unnecessary costs to doing business in our region.

If our region is to continue to be attractive for inward and indigenous investment we must have first-class services. We must have first-class access by air, road and rail and first-class broadband connections throughout the county. It is vital, therefore, that this region is chosen for a pilot programme for the extension of the new generation network and that broadband is fast tracked to rural communities.

Government action is required to stop the slide. Connectivity to Heathrow must be restored. With 40% of US based companies located in the west of Ireland a daily year round US direct service must be maintained. Infrastructural projects promised under Transport 21 must be fast tracked. The Government has failed to announce funding for the $53 million tourism and economic development plan in recent times and I hope funding is provided for this in today's budget.

Charlie O'Connor (Dublin South West, Fianna Fail)
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I call the Minister of State, Deputy Seán Haughey.

Micheál Martin (Cork South Central, Fianna Fail)
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The Minister for lifelong learning.

Seán Haughey (Dublin North Central, Fianna Fail)
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I am learning on my feet.

I am delighted to have the opportunity to address this motion and to do so from a positive perspective. Ireland's competitive performance is, quite frankly, solid. We have many competitive strengths that are often ignored, underplayed or minimised. We have heard many of the negative aspects in this debate yet there is hardly any recognition from the Opposition of how far we have come, let alone of the distinctive competitive capacity we have developed in many areas over the past few years.

For example, I heard comments in the house that our indigenous sector is neglected. This displays an amazing lack of understanding of the wide-ranging restructuring that has taken place within Enterprise Ireland to design new programmes so our important SME sector can adapt, innovate and grow in the context of globalisation.

Almost all of the activities of the Irish economy are ultimately validated by the international marketplace and its impact on jobs, growth and prosperity. Since 1994, our exports have grown at a rate twice that of the European Union and three times that of total world trade. Our export growth is among the highest in the OECD. Seven of the world's top ten ICT companies have a substantial base in Ireland. Thirteen of the top 15 pharmaceutical companies in the world have substantial operations in Ireland. Eight of the top ten software suppliers in the world have operations here. We have created more jobs in the past ten years than in any similar time in our history.

James Bannon (Longford-Westmeath, Fine Gael)
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The Minister of State should take a look at what happened in Abbott Ireland yesterday.

Charlie O'Connor (Dublin South West, Fianna Fail)
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The Minister of State, without interruption.

Seán Haughey (Dublin North Central, Fianna Fail)
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Our economy has been transformed. The change has not been centred just in the foreign direct investment sector, it has spread throughout the economy such that local companies now have the capacity and financial muscle to be foreign investors in their own right. The stock of outward direct investment from Irish firms grew by almost 325% between 2000 and 2005 or from $28 billion to $118 billion. We are deeply interconnected and entangled with the global economy.

These changes are beginning to make a real impact on the nature of economic activity and employment in the economy. As we earn the dividend in terms of growing employment and greater prosperity, throughout the world others now look to Ireland as one of the best examples of sound economic management and creative solutions to the challenges of modernisation. I do not believe there is one Member in this House who has not, while abroad, experienced being congratulated by strangers and acquaintances on our economic success.

James Bannon (Longford-Westmeath, Fine Gael)
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And the roll-out of broadband.

Seán Haughey (Dublin North Central, Fianna Fail)
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Is this tangible evidence of an uncompetitive economy?

There has also been considerable negative comment about infrastructure but these comments completely ignore the fact we are improving and catching up with an unprecedented growth rate. These observations also overlook what has been and will be achieved. In November 2005 the Government launched Transport 21, a €34 billion ten-year capital investment programme to transform transport infrastructure and services. This was in recognition that delivery on this front was absolutely central to our competitiveness and continued long-term and sustainable social and economic prosperity.

There is no doubt the unprecedented level of economic growth in the past decade, particularly since the turn of the century, has put massive pressure on our roads, rail, air and other public transport services. By 2015, however, we will have transformed the national roads network with high standard interurban routes connecting the island's main cities and other key road routes such as the Atlantic road corridor.

James Bannon (Longford-Westmeath, Fine Gael)
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We are still 66th in the world.

Seán Haughey (Dublin North Central, Fianna Fail)
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The range and capacity of bus and rail commuter services will be greatly enhanced by new intercity and commuter rail services, Luas extensions and so on.

Competitiveness in its many facets must be a priority for Government and should be for this House. Instead of adopting the approach of constantly shouting that the sky is falling on our heads, it would be welcome if Fine Gael engaged in a serious debate about concrete action, put aside the spreading of fears and concentrated on constructive proposals from now on.

Dan Neville (Limerick West, Fine Gael)
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I wish to share time with Deputies O'Mahony and Varadkar.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Is that agreed? Agreed.

Dan Neville (Limerick West, Fine Gael)
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I welcome the opportunity to contribute to the debate. I will take up where the Minister of State, Deputy Seán Haughey, left off in regard to the roll-out of infrastructure. One of the key issues affecting our lack of competitiveness is the lack of development of infrastructure, particularly road and rail infrastructure, which I will address with regard to the situation in my constituency.

For many years, bypasses have been sought for three towns in the area, Adare, Newcastle West and Abbeyfeale, but we are no nearer their construction than was the case ten years ago. It is many years since the decision was taken to bypass Adare. A third examination is under way to try to identify the route of the bypass. Is this efficiency? There is serious gridlock, morning and night, in and outside the village, which has created frustration for those commuting to and from Limerick city from the west of the county. Not alone that, serious rat-runs have developed on the byroads around Adare.

Local people are extremely concerned for their safety and that of their children. When drivers leave the main road, they often do not observe the speed limits and driving standards they would if they were commuting on the main road. What is accepted as the most beautiful village in the country is clogged up with articulated trucks and heavy traffic, although 15 years ago it was expected that this traffic would be removed from the area. There are also major traffic hold-ups in Newcastle West and, in particular, Abbeyfeale, so that access to Kerry and other areas is being frustrated.

With regard to rail infrastructure, just three weeks ago the Foynes connection which serviced the town for 150 years was disconnected. The Foynes route was not being used but we were assured it was in a care and maintenance position, with a view to a service being reintroduced if developments relating to marine-type enterprises in Foynes, which we have long promoted, came on stream. That rail connection has now been disconnected.

We hear of intercity connectivity. We need more than just connectivity between the city of Limerick and Dublin and between Dublin and Cork. Areas outside these also deserve an opportunity to develop and deserve the infrastructure that would encourage people to invest in them.

I recently asked when funding would be provided for the Adare bypass but was told it was not a matter for the Minister. However, when I asked the Minister to report on the delivery of vital infrastructure projects, such as key road and rail projects, he had no problem answering. I was given the information and found that Adare was not included.

The Minister could have answered when I first asked the question. This is an indication of how the Government chooses what to answer and what to account for in the House, and this applies to several Ministers, not just the Minister present. If there is negative news, it is not the Government's business but if there is positive news, it is prepared to answer.

Public representatives come under much pressure with regard to the provision of broadband in our areas. While some broadband services have been rolled out by Eircom and other companies, there are large areas where the people are crying out for connectivity to do their business. The Government should make it a priority that a 100% broadband service would be available in every area, particularly rural areas, where people are now prepared to work from home using proper connectivity rather than sit stuck in long lines of cars.

John O'Mahony (Mayo, Fine Gael)
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I am glad to contribute to the Fine Gael motion. It is particularly apt it should be debated at this time, just before the budget, when the Government has another chance to create conditions for Ireland to reverse the trend it has experienced in recent times and help make our country competitive again.

All the facts and figures in this year's report by the National Competitiveness Council confirm in stark terms what we are already seeing on the ground. Our share of exports in world markets has fallen since 2002 and domestic inflation has eroded Irish price and cost competitiveness. In addition, as regards productivity growth, Ireland has lost its place as an international front-runner and now lags behind the OECD average.

The lack of physical infrastructure across a wide area of the economy has been a major source of competitive disadvantage. The inability of our roads, rail, ports and airports to cope with economic and population growth in the 1990s is now coming home to roost.

The Minister of State, Deputy Haughey, said that we are improving and catching up. While the east coast might be improving, that is not the experience in the west. The boom in the construction industry in recent years and the growth in jobs it produced masked the fact that manufacturing and agriculture lost thousands of jobs in the same period. Construction now accounts for one in seven workers, compared to one in 17 in the United States. With the building boom slowing down rapidly, one does not need to be a genius to work out that we have a problem on our hands.

It is accepted that Ireland's international competitiveness has weakened and that problem is multiplied to an even greater degree in the west. Rural areas, including small towns, are struggling to compete nationally, not to mind internationally. If our national infrastructure cannot keep up with demand, what chance has the west coast of doing so? It has been way down the priority list during the boom years when there was a golden opportunity to advance balanced regional development.

The west urgently needs the western rail corridor to help develop the region. Part of the corridor is currently being built from Ennis to Claremorris, but no date has been given for rebuilding the remaining section to Sligo. This section passes by Ireland West Airport Knock, offering an ideal opportunity to develop the region in a structured and linked-up way. Completing the western rail corridor will connect the two gateways of Galway and Sligo, thus revitalising smaller towns along the way. The completion of the western rail corridor from Mayo to Sligo is the true test of the Government's commitment to balanced regional development.

The snail's pace roll-out of broadband in the west is not giving business and industry a chance to complete on an even playing field. I could give countless examples of individuals with small businesses who are unable to operate in numerous parts of Mayo because broadband is not available to them. One such example is in Kiltimagh where people are awaiting the Government's go-ahead to operate MANs. The IRD in the town is frustrated that the connection to the network, which has been there since 2003, has been denied to them despite umpteen requests to the company operating the scheme on the Government's behalf. Kiltimagh is currently promoting the Cairn international trade centre project, which could provide 150 jobs.

The map supplied for Transport 21 opening up the regions tells us everything about the competitiveness problems facing the west. Only one motorway is going into Connacht. Other projects, such as the N26, have been delayed. In addition, the N6, N17, N83, N5 and many others are so far behind that they need to be seriously accelerated if we are going to attain competitiveness.

Ballina and north Mayo's progress is being seriously curtailed by the infrastructural deficit in the region. At the other end of the county, Ballinrobe and Ballyhaunis are in a similar situation. If Ireland is to become competitive, we need a much better and more prudent use of our resources than has happened in the past ten years. I commend the Fine Gael motion to the House.

Leo Varadkar (Dublin West, Fine Gael)
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In tabling this motion, Fine Gael hoped to promote a serious debate on the future prospects of the economy, which depends on competitiveness. Together with my colleagues, I recognised the initial economic success of the Government in its first three years in office. However, we also charted the subsequent change in policy and demonstrated how a series of serious policy mistakes caused Ireland to fall from fifth to 22nd place in the World Economic Forum's competitiveness rankings. In the greater part of my speech, I focused on Fine Gael's proposals to restore competitiveness. I concluded with an optimistic outlook for the economy in the longer term, provided we make the necessary changes in areas such as infrastructure, regulation and public sector reform. One Minister, the Minister of State, Deputy McGuinness, described public sector reform as the elephant in the room, an old order that has to change. After ten years, however, nothing is going to change as long as this Government stays in power.

Despite the comments of the Members opposite, most of my speech dealt with Fine Gael's serious proposals to improve competitiveness, but all of them were ignored by the Ministers involved. Rather than engaging in a serious debate on this issue, all three Ministers delivered snide, negative, mean-spirited and bitter speeches that were unbecoming of Ministers who have been in office for ten years.

Micheál Martin (Cork South Central, Fianna Fail)
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That is not true.

Michael Ahern (Cork East, Fianna Fail)
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The Deputy was totally negative.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Not one proposal came from that side.

Leo Varadkar (Dublin West, Fine Gael)
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In contrast to my speech, which did not mention any other Member of this House bar one, the Minister's speech cast aspersions on me, as well as on Deputies Bruton, Hogan and others.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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The Deputy misquoted statistics.

Leo Varadkar (Dublin West, Fine Gael)
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It is interesting to read the Minister's speech which mentioned the word "competitiveness" 18 times, yet refers to Fine Gael 19 times. In his speech, the Minister of State, Deputy McGuinness, used the words "Fine Gael" six times, twice more than the word "competitiveness". They are more interested in slagging off the Opposition — they are afraid of us for the first time in a long time — than they are in addressing serious issues like competitiveness. They accused Fine Gael of being unwilling to take a policy stance which would upset any substantial interest group. We took a stance on benchmarking and if the Government had had the courage to take such a stand, it would be upsetting a lot less people than it is today.

The Minister said we are unable to adopt a fiscal policy, which is totally untrue. Only last week, Deputy Bruton published a document setting out in detail our fiscal policy and budgetary perspectives. It is there for Ministers to read should they choose to do so. The Minister also argued that we used selective statistics, but he is an expert in doing that himself. For example, he claimed the IMD ranks Ireland second in investment and first in CPT. However, he omitted the fact that the IMD has reduced Ireland's competitiveness ranking from fourth to 13th since he became Minister. On our share of world trade he selected out services. He said our share of services went from 1.87% to 2.54% in 2006. The National Competitiveness Council states clearly that Ireland's share of world trade services, a small but growing component of Irish trade, increased in 2006 after a slight decline in 2005. That is true, but the Minister left out the NCC's statement that:

Ireland's overall loss in world market share is not simply a reflection of the growing role of developing economies in world trade. While China continues to gain market share globally, a range of developed economies also continue grow their international trading sectors, including Germany, Japan and the UK. Ireland's net contribution to world trade has fallen for each of the past four years.

The Minister lectures us about using selective statistics. I will cite another part of the Minister's speech which is factually incorrect. It is appalling for a Minister to get his facts so wrong. He claimed that Ireland had the lowest unemployment rates in the OECD after Denmark and the Netherlands. We checked those figures with the OCED today and using standardised, seasonally-adjusted unemployment rates the following countries, in addition to the Netherlands and Denmark, have low unemployment: Australia at 4.3%, Austria, 4.4%, Japan, 3.8%, Korea, 3.2%, New Zealand, 3.5%, Norway, 2.6%, and Switzerland, 3.6%. Should I continue? It really is extraordinary.

Micheál Martin (Cork South Central, Fianna Fail)
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Is the Deputy saying that we are an unemployment black spot?

Leo Varadkar (Dublin West, Fine Gael)
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Rather than criticising Fine Gael, the Minister should accept that we have a real challenge in competitiveness. He should have laid out clearly the steps he will take to restore competitiveness, instead of behaving like an ostrich burying his head in the sand.

Bernard Durkan (Kildare North, Fine Gael)
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Not a nice sight.

Leo Varadkar (Dublin West, Fine Gael)
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The Minister hopes the problems will just go away, but when Fine Gael returns to power we will not run away from economic challenges. We will welcome them and embrace them.

Micheál Martin (Cork South Central, Fianna Fail)
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Like the groceries order.

Leo Varadkar (Dublin West, Fine Gael)
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I will finish on one point of agreement. In his speech, the Minister said the best benchmark of how a country is doing is to look at its capacity to generate new sustainable jobs. I guarantee that is the benchmark to which we will hold him next year and the year after. Let us see how well he does in terms of job creation in the next two years.