Kathleen Lynch (Cork North Central, Labour)
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The motion being taken in Private Members' time this week is slightly overshadowed, perhaps, by other political events, but is timely, nevertheless, and should be part of an ongoing debate in this country. Sometimes it is easy to forget that the timeframe of Ireland's relative prosperity is very short, indeed. We should never forget what "the good old days" were like and none of us, either in Government or Opposition, wants to return to them. This is most evident when we meet delegations from other countries who wonder how we managed to pull off what has become known internationally as the Celtic tiger. A combination of factors were responsible, not just one. Stability in Government was one and, as such, cannot be dismissed. The rainbow Government made an enormous contribution. I recall the heads of the institutes of technology talking to the then Minister of State, Deputy Rabbitte about the lack of science places. At that stage we were talking about computerisation, programming and the whole information technology sector. They called for specific spaces to be put in place as regards science and recommended how it should be catered for within third level institutions. I realised at the time that as long as we had academics such as the heads of the institutes of technology who knew where the future lay and where the investment should be targeted, we should always be at the cutting edge when it came to employment and creating opportunities for our communities.

I listen week after week in this House to debates on education in particular, as well as debates on disadvantage and justice. I believe they are inextricably linked and one cannot be separated from the others. A party colleague recently said that teachers in primary schools can now distinguish children who will have difficulties in later years as early as first class. This is not a new phenomenon, as the Ceann Comhairle and I know, and it has always been the case. I do not believe the theory, incidentally, that one can tell, at the age of six, whether a child will end up in jail. Not all children who have difficulties or come from disadvantaged backgrounds end up in jail. To suggest otherwise is to take forward planning to unsustainable levels. Nonetheless, it is possible to tell which children will have difficulties because of their circumstances. It is not always true that they will have difficulties because they come from disadvantaged areas, rather it is due to a combination of circumstances. Given that we know this, I am always astonished that we have not yet managed to deal with the problems and resolve the issue. Surely, if the problems can be detected early on, we should be planning a proper targeting of resources to ensure they do not continue.

We will always have children with difficulties due to various causes, if not due to disadvantage. This has a great deal to do with unemployment. I see people who have been working, say, for eight or nine years and have never known unemployment except for short periods. The unemployment they will encounter in the future, in the event, will be entirely different from what was experienced in the 1970s, 1980s and 1950s because the needs of people will have changed. They will have mortgages and cars and children attending third level. I sometimes make the point that the only education that does not have to be paid for is third level. At other levels many people put their children into private primary and secondary schools. This is ridiculous because the primary education system is quite good, in my opinion. However, the type of unemployment they will meet will be entirely different from that encountered in the past. Their needs will have changed and the type of debt ratio they are managing is entirely different.

That is why there should be a permanent committee of the Oireachtas discussing on a continual basis how the economy is going and how people on a lower socio-economic level to bankers and construction bosses will deal with unemployment when it hits them. The children who can be identified at age six as liable to encounter difficulties in the future will be the same people who will find themselves unskilled and unemployed when there is any type of economic downturn, and we should keep a close eye on that. The slump is not inevitable but the changeover is in respect of needs. We should surely be developing initiatives involving the State agencies that upskill and train employees, including FÁS, formerly AnCO. It will be a question of promoting different skills, a different approach to employment, mobility and flexibility. We should consider this as much as we consider those who find themselves unemployed. In this respect, playing games with employment and job announcements is outrageous and disgraceful.

Just before the 2002 general election, my husband was walking through Blackpool, where we live. Where else would he be walking? He was almost knocked down and said it would have been okay because the Taoiseach's car was involved. It was part of a cavalcade on the way to Macroom on "Golden Thursday" to announce 300 additional jobs. The day would have been fairly memorable in itself, therefore, had the near accident not happened. The jobs announced were to be created by Elan in Macroom. The then Minister for Health and Children, Deputy Micheál Martin, was in the car with the Taoiseach. The jobs were never created.

On the same day, the Tánaiste did a midlands tour that included Limerick. A thousand jobs in total were announced but they never materialised.

Peter Power (Limerick East, Fianna Fail)
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They never announced them.

Kathleen Lynch (Cork North Central, Labour)
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They did. I have the information in front of me.

Peter Power (Limerick East, Fianna Fail)
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They delivered them subsequently.

Kathleen Lynch (Cork North Central, Labour)
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No.

Peter Power (Limerick East, Fianna Fail)
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What company?

Kathleen Lynch (Cork North Central, Labour)
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There were three companies.

Jobs are announced years before elections and sometimes they are never created, just like those announced before the election in 2002. Kildare was promised 400 civil servants during that election campaign but never received them.

In the 2007 general election campaign, there was a big announcement that Amgen would create jobs. This was a particularly bad case as the announcement was a form of canvassing. The then Tánaiste, Deputy Harney, said the creation of the jobs was a vote of confidence in the Irish economy but, behind all the rhetoric, she was really saying, "Please vote for me because I am delivering these jobs". The jobs were never created. The head of the corporate sector in the United States was involved in regard to the announcement. Cork County Council spent hundreds of thousands of euro putting in place infrastructure and on site preparation. Will the council be reimbursed? The Government should stop playing ducks and drakes with people's lives. Ultimately, this is the result of making announcements to garner votes. Employment and investment comprise a very serious subject and they determine how people live their lives. We should be discussing them constantly, not just when considering Private Members' motions.

Peter Power (Limerick East, Fianna Fail)
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I wish to share time with Deputies Haughey, Conlon, Collins, Fleming and O'Rourke.

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

Peter Power (Limerick East, Fianna Fail)
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I pay tribute to the Taoiseach on his leadership of my party. He was the seminal politician of his generation and, during his tenure as Taoiseach and party leader, he displayed considerable political and personal skills. He will leave a great and unique legacy in terms of peace, prosperity, partnership and Ireland's standing internationally. For this I compliment him and wish him the very best for the future.

Any debate on the economy must be considered in the context of the deterioration of the economic climate over the past six to nine months. Through intention, design and our own initiatives and strategies, we have transformed our economy from being insular and introverted to being perhaps the most open in the world. We have an open trading island economy. This has had considerable positive consequences but also negative ones. Most economists agree unanimously that our strategy since the late 1950s has resulted in considerable benefits and premiums for the economy. We are the true winners in terms of globalisation. We have made it easy for companies to locate here and do business, and we have made it easy for Irish companies to invest abroad. This has resulted in unprecedented growth in Ireland in recent years.

Ireland is the envy of Europe and the world. Our strategy, however, makes us subject to the vagaries of international economic circumstances. The outlook is such that circumstances will be very difficult. In fairness to the Tánaiste, he identified in the Chamber this morning the international factors that could have adverse effects on our economy. To dress these up as economic mismanagement in Ireland, as the motion seeks to do, is crude and unsophisticated and I do not agree with it.

The international outlook is decidedly unsure. This week, the chairman of the Federal Reserve System, Mr. Ben Bernanke, indicated for the first time that the United States may go into recession. The European Central Bank indicated an interest rate drop is not on the cards for 12 months. There is turbulence in the international financial markets. Oil and commodity prices especially are rising. German growth is projected to decrease to close to 0% this year. All these factors pose serious challenges for our economy, yet this motion seeks, in a crude way, to dress up these challenges as domestic economic mismanagement. The electorate did not buy that during the election campaign last May and will not do so this May or the one thereafter. It is much too sophisticated to do so. The motion is crude and does not deal with the real issues.

Having mentioned the factors that pose challenges, it must be said that the strength and resilience of our economy place us in a good position from which to deal with the international circumstances. Our workforce is much more flexible and skilled than it was ten years ago. We are able to deal in a flexible and managed way with the international conditions that arise. We would not have been able to deal with the current international shocks ten or 20 years ago because of the rigidity of our workforce and economy in that era. The World Bank, in its report last week, regarded Ireland as the eighth best country in which to do business out of 178. The respected publication The Wall Street Journal ranked Ireland's economy third out of 157. This motion would have us believe that Ireland is the worst place in the world in which to do business.

The motion notes that "these jobs have been lost...as a direct result of flawed Government policies, notably the stimulation of a debt-fuelled housing bubble". I disagree with this contention fundamentally because it demonstrates a fundamental misunderstanding of how the economy works. What Fine Gael calls a "debt-fuelled housing bubble" is regarded as providing houses for an expanding economy and population on this side of the House. The motion is misconstrued. It calls on us to invest further in infrastructure and the national development plan but this is exactly what the Tánaiste and Minister for Finance signalled in his contribution this morning.

Seán Haughey (Dublin North Central, Fianna Fail)
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The motion refers to the need to upskill 500,000 people by 2020 and it is that aspect of it that I intend to address in my contribution. I am pleased to have the opportunity to recount progress in recent years on Ireland's human capital development.

The Government has continued the policy of successive Governments since the 1960s in investing heavily in education and training. We have long recognised that the key to prosperity lies in our ability to continually meet changing and challenging global economic circumstances. To effectively compete, our labour market needs the right mix of skills and competencies to rapidly respond to the changing business needs.

Recognising that the issue of the economy's future skills needs will play an increasingly important role in determining future prosperity, the Government established the expert group on future skills needs in 1997. Its purpose is to provide research-based advice on our future skills requirements and to make recommendations as to how these needs can be met effectively. The group reflects the social partnership model, with members from enterprise, academia, Departments, and employer and employee groupings.

The resulting expert group report, entitled Tomorrow's Skills — Towards a National Skills Strategy, was launched last year. This strategy sets out clear long-term objectives for developing our human capital through upskilling, training and education for the period to 2020. Its implementation will be central to ensuring that our education and training systems meet the future demands of industry in the medium to longer term. In short, the national skills strategy will facilitate the development of Ireland's competitive advantage in terms of world-class skills, education and training.

As this motion states, the national skills strategy's principle objective is for Ireland to upskill half a million people by at least one level on the national framework of qualifications over the period to 2020. The strategy also contains several other objectives, which are key to the achievement of this principle objective. These include the need to increase participation rates in upper secondary level education to 90%, and progression rates to third level to 70%. We also need to facilitate the skills needs of the immigrant population and those wishing to re-enter employment.

According to the national skills strategy, as the economy increases its dependence on services and high technology manufacturing, and traditional sectors such as agriculture decline in importance, there will be a corresponding change in the particular skills and balances needed in the economy. The achievement of the targets and the vision contained in the national skills strategy will require an integrated approach, jointly led by the Department of Enterprise, Trade and Employment and the Department of Education and Science. It will also be dependent on successfully involving all of the key agencies in the education and training sectors.

I will personally chair an interdepartmental implementation group. It will comprise senior officials from the Department of Enterprise, Trade and Employment, the Department of Education and Science and the Department of Finance. This group will be responsible for overseeing the implementation of the national skills strategy. It will convene for the first time later this month.

While it is too early to give a precise description of the implementation plan, it will likely examine the existing provision of education and training and determine the key areas and initiatives that will require additional focus in order to achieve the objectives of the national skills strategy. It will also determine the key benchmarks and targets that will be progressively monitored over the 12-year period to 2020.

We are determined to implement this national skills strategy. I am determined that the interdepartmental implementation group will work effectively to realise the objectives of the national skills strategy. Given the positive commitment of all, no doubt measurable progress will continue to be a primary feature of our education and training systems in the years ahead.

Margaret Conlon (Cavan-Monaghan, Fianna Fail)
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I thank the Leas-Cheann Comhairle for the opportunity to comment on the amendment to the motion.

It is important that certain key steps are taken to ensure that Ireland remains a highly competitive economy. At the top of that agenda, there must be no delay in delivering the national development plan. The Government has shown that it fully intends to do this, as evidenced by the Tánaiste and Minister for Finance, Deputy Cowen, in his December 2007 budget where he prioritised the plan. It is necessary for the future development of our country and to meet future challenges.

While the international economy is under pressure, especially with the weak dollar and sterling, Ireland is still performing well and it would be remiss of us to talk down our strengths. Exports in Enterprise Ireland-supported enterprises grew by an annual average of 5.2% between 2000 and 2006, with export growth of 7% for the first half of 2007. In the choppy waters of international trading conditions, exports grew to over €154 billion in 2007 and the Government is committed to meeting the challenges head-on as they steer a steady ship.

A new opportunity for the economy is coming via the strong number of skilled immigrants. We should relax restrictions on immigrants who want to set up a business here in Ireland and contribute to the economy. The Government has identified certain strategic gaps in the economy and it aims to fill these gaps through the effective implementation of new employment permits in the workforce by a new green card scheme. We must keep going forward with such moves. Cross-departmental synergy is required to tackle the problems for immigrants in getting loans, mortgages and credit via the Department of Finance, the Department of Justice, Equality and Law Reform, the Minister of State with responsibility for integration and the Department of Enterprise, Trade and Employment. We must, through the social partnership process, convey to financial institutions the importance of them playing their part in the provision of credit lines to immigrants who wish to set up their own businesses.

Another highlight for the economy and companies has been the highly successful recent trade missions led by the Taoiseach and the Minister for Enterprise, Trade and Employment, Deputy Martin. Indeed, I was proud that Monaghan's Harte Peat was one of the major winners out of the South African trade mission. This company is ambitious in its targets and aims to supply 35% of the mushroom industry in South Africa within the next 18 months. It should be an inspiration to other companies, both in Monaghan and nationally, that the company can carve out such niches, both at home and abroad. It is to be commended for its initiative and entrepreneurial spirit.

It would be remiss of me not to note the recent awful job losses at Grove Turkeys in Monaghan. The loss of this high number of jobs in a rural setting would be the equivalent 1,000 or more job losses in one of our major cities, such is the ripple effect. It is important that these indigenous industries are assisted at every level to meet the many challenges facing them on the international stage.

Furthermore, it is important that the Government continues to work within the EU to ensure that Irish companies are not inadvertently put at risk compared to their European counterparts with the draft EU directive providing for derogations on equal treatment which could lead to different terms for enterprises in Ireland because of our different legal and industrial relations framework.

The Government's commitment to research and development must be recognised. This is one area where funding is targeted at businesses to ensure that they are able to keep product development at the top of their agenda. This year, the Minister announced €500 million in a simplified research and development scheme. Ireland has improved in this regard; we were ranked fifth in the IMD World Competitiveness Yearbook last year.

There are many challenges remaining for the economy. The Government is tackling these issues and the Minister, Deputy Martin's, lead steps are to be welcomed.

Niall Collins (Limerick West, Fianna Fail)
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At the outset, with the Leas-Cheann Comhairle's permission, I wish to concur with the remarks made by Deputy Peter Power about the Taoiseach and to thank the Taoiseach for his enormous contribution to Ireland during his time in that office. I received many messages this morning which I will convey to him.

I am glad of the opportunity to speak in favour of the Government amendment to the motion. The motion states there has been an increase in the live register of 16,300 persons, but it is important to note that the live register is not designed to measure unemployment. It also includes part-time workers, those who work up to three days a week and seasonal and casual workers entitled to job-seekers benefit and allowance. Unemployment is measured effectively by the Quarterly National Household Survey. In that respect, the live register is a crude measure with which to gauge an economy, because it includes people who are working in various forms or who are entitled to benefits for part-time work.

The mid-west region and County Limerick, my area, has suffered some job losses in recent years, but to the credit of the Government and this and previous Ministers we have policies in place which are effective at finding replacement jobs and industries for the region. I note the Fine Gael motion does not mention any particular job losses in the area. It mentions a number of areas around the country, but does not mention any in my constituency or within the mid-west region. There have been job losses within the constituency, but the jobs were replaced.

Recently, the local development agency, Shannon Development Company, in conjunction with the Department of Enterprise, Trade and Employment, announced 250 jobs in Shannon with Zimmer and an additional 75 jobs with a health care company, Vistacon, in Limerick. We also got good news through An Bord Pleanála that the Shannon LNG project has received planning permission at the Shannon Development land bank in Tarbert in north Kerry, which is adjacent to my constituency in Limerick. That development will provide an estimated 650 construction jobs over a four year period and between 50 and 100 permanent jobs when the plant becomes operational.

We must guard against talking our economy down. In the previous severe recession in the UK, many commentators talked down the economy there and created significant hysteria. We must guard against that happening here. We are far from that scenario and the message should not go out from this House that we face that scenario. IBEC is a fair-minded, independent organisation that represents over 7,000 employers and is on the record as stating that the level of investment being made by US companies here is staggering. It stated that corporate America's investment position in Ireland was €52.5 billion in 2006. This is significantly ahead of investment by US companies in China, Russia, India and Brazil, which, combined, stands at €45.6 million.

From this point of view, we should not talk our economy down or send out the wrong message. We must act responsibly. The policies and principles are in place. The Minister for Finance is well placed, through the Finance Acts, to take the hard and capable decisions needed. We took the tough decisions after the general election in 2002 when the economy dipped a bit. We are now in a similar scenario and will take the tough decisions to get the economy right and let it rebound.

Seán Fleming (Laois-Offaly, Fianna Fail)
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I want to put on the record my gratitude to Deputy Bertie Ahern for his excellent work as Taoiseach since I entered Dáil Éireann and as leader of the Fianna Fáil Party. The people were asked to pass judgment on him in three general elections and each time they gave him a positive result. I am sure that when historians come to write the book, they will make an equally positive assessment of his career.

I am happy to support the Government position on this motion. This is a bit of an unreal motion and I understand the Opposition had to scrape the barrel to find some subject to raise. Ten years ago when I first joined the Dáil there were 1 million people in the workforce. Today there are 2.1 million people in it. It has more than doubled in the past ten years. Therefore, the economic perspective of people who put forward a motion such as this suggesting unemployment is a serious issue is very short term, probably about 30 seconds. If they looked at the situation in the normal short, medium or long term, they would realise the motion has no standing.

The Government takes a longer view of these issues and of the economic cycles here, abroad and internationally. The Government is in power because it is in the position to take the necessary major long-term decisions. There will always be ups and downs. That is life. We need a strong infrastructure to cope with the ups and downs and that is why the Government's emphasis on the national development plan is so important. The plan will help not just the construction industry, but also improve our competitiveness. One only has to look at the roads, Dublin to Cork, Dublin to Limerick, Dublin to Waterford, Dublin to Belfast or wherever.

Joe McHugh (Donegal North East, Fine Gael)
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What about Dublin to Donegal, or to the north west?

Seán Fleming (Laois-Offaly, Fianna Fail)
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I will leave the representatives of Donegal to fight for the Donegal area. There are motorways on all these routes or they are under construction and will be open in the near future. People see that.

Joe McHugh (Donegal North East, Fine Gael)
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There is no completed motorway between any two cities.

Seán Fleming (Laois-Offaly, Fianna Fail)
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New hospitals and schools are being built and this will increase employment.

I want to refer now to a significant issue in my constituency. There is no major multinational operation in my county, County Laois. There has been a significant reduction in employment in housing construction and in investment in that area. I believe this creates the ideal opportunity for Ireland and the people to redirect investment put into the housing market over the past five to ten years into new knowledge-based science and technology Irish companies. Ireland has surprised itself in recent times. We talk about the level of foreign direct investment in Ireland. I estimate that from 9% to 10% of our workforce is employed by foreign multinationals, a maximum of 200,000 people. In recent years the economy has been strong, whether as a result of the agri-sector and various other businesses working abroad, and has been a net foreign direct investor in the international community. This is a sign we have matured as an economy. Not only is there sufficient investment available from Irish people for Irish businesses in Ireland, there is also sufficient funding available for investment abroad. There is an opportunity now for a return on this investment.

The fact that housing is now available at a more competitive and realistic price will help people. They will no longer have such large mortgages and it will be easier for them to pay them. This will help with the economic situation. The slowing down in the housing market is an opportunity for the funding that was in that market to be redirected to new companies. In recent years, the property market was the business to be in and people did not look at other good investment and employment opportunities that were available locally. I hope they will look more realistically at these now and thereby provide a better opportunity for local indigenous businesses to grow and prosper.

Mary O'Rourke (Longford-Westmeath, Fianna Fail)
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I am appreciative of being allowed five minutes to speak in this crowded slot. The amendment put down by the Government was well thought through and put together. We have much to appreciate in respect of the Taoiseach. The North and jobs are two main areas on which he will be judged. I am happy to join others in paying tribute to him. I draw attention, in particular, to the programme of investment in the services sector. In the past, people were not inclined to give much credence to the services sector. However, at the beginning of this decade it accounted for 20% of our exports and now it accounts for one third of them. This is a significant improvement and we are well placed to reap the dividends.

The national development plan is another example of progress. When I heard somebody say yesterday that the Taoiseach had no vision, I smiled and thought of all the work he had put in on the national development plan. It is a significant amount of work and its rewards are being reaped around the country. Research and development — the strategy for science, technology and innovation formula — is a significant matter. This fourth level of education, which is involved in research and development, is one in which the Tánaiste and Minister for Finance, Deputy Brian Cowen, is hugely interested and has talked extensively about. I hope that this will continue. The national skills strategy is equally important.

As the Opposition motion mentioned a firm in my own town, I will talk about it. The firm, Nexans Ireland, is referred to last in a list of companies outlined in the motion. I pay tribute to the firm which has been in Athlone for 36 years. It began as Cable & Wireless, became Alcatel and then became Nexans Ireland. It has struggled at certain points in past years although not lately. Staff relationships have been difficult but they have evened themselves out. The new manager, Mr. Donegan, made a great effort. He decreased the loss but at the end of the day, the financial figures were the reality and Nexans Ireland closed with the loss of 96 jobs.

I ask the Minister for Enterprise, Trade and Employment, the Minister of State, Deputy McGuinness, and the Department itself to look at an overall package of new employment opportunities for the former employees of Nexans Ireland. There is no point in waiting until June when everyone will wonder what they are going to do. I would like to see a well thought-out upskilling project put in place because there is a long tradition of manufacturing in Athlone. I am well aware that manufacturing must now reach the higher level if we are to keep our pre-eminence in that regard. I ask for a properly thought out skills and redeployment package within the area. I thank the workers for their work over the years. Thirty-six years is a fair spell of time for a firm to last in a town. Equally, I thank the firm for its commitment to its workers. It has been a very fine industry and I understand very clearly the anguish suffered by those who have lost their jobs.

I am also very glad to see that the Department and Minister are pursuing an equally vigorous campaign for workers' rights. People say that the minimum wage will ruin us all but that is not true. There is no point in having all of the steps in place if workers' rights are not recognised. The trade union movement in Ireland is right to concentrate on that matter. The National Employment Rights Authority is very useful in this regard. One can telephone it with one's number and discover what one's rights are, as well as ascertaining information about various other matters. The exploitation which has been carried out in the past will no longer be entertained. I can only be very glad to note that and to hope that this proactive approach on the double track will continue.

I make a final plea to the Department, the IDA and Enterprise Ireland. I see that key targets are set during 2008 for the pharmaceutical, bio-pharmaceutical and medical technologies areas. We are very well poised and placed and have benefited from innovative developments in those areas. I make a straightforward plea for strong consideration to be given to developments in those three areas.

Deirdre Clune (Cork South Central, Fine Gael)
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I wish to share my time with Deputies McHugh, Pat Breen, Kehoe, Tom Hayes and McGinley.

Mary O'Rourke (Longford-Westmeath, Fianna Fail)
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How long will that section take? I wish to know because I have somewhere to go.

Brendan Howlin (Wexford, Labour)
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Thirty minutes.

Deirdre Clune (Cork South Central, Fine Gael)
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I am speaking in support of the motion moved by Fine Gael. It is a very real motion based on fact and the situation in which this country finds itself in terms of financial deterioration and certainly deterioration in the unemployment figures. There is an unemployment rate of 5.2%, which is the highest it has been in seven years. Those of us who were looking for work in the 1980s would think a rate of 5.2% is a reasonable figure but we are dealing with a situation where the unemployment rate is at its highest growth rate in the past 25 years.

People who lose their jobs are not just statistics. We are citing a considerable amount of statistics here today, myself included. However, we should recognise that they are real people who find themselves without a job and, in many cases, are not sure what the future holds. Perhaps they have a low level of skills or are in an age bracket which the market does not appear to demand.

In many ways, we are victims of our dependence on construction. The cost of manufacturing in this country is very high and many who have gone through our education system have poor skills attainment. We are told that the unemployment rate will increase this year. The ESRI predicted that it will reach 6.2%. The Department of Finance has predicted that in a few months time, the number of people who will be unemployed in this country will be more than 200,000. The jobs that are being lost, which are listed in the motion, are certainly not being replaced to the same extent. I noticed that the Government's amendment mentioned 11 job announcements. This adds up to 1,150 jobs. A total of 1,100 jobs were promised in the Cork region through Amgen. I know it has been mentioned here by Deputy Kathleen Lynch. The jobs in Amgen never arrived. That puts job creation versus job losses into context.

Headlines in yesterday's newspapers showed that redundancies were up by 21% in the first three months of this year. The construction and manufacturing and services sectors have borne the brunt of these losses. A total of 699 jobs in the services sector were lost in March, which brings the number of redundancies in this area up to 2,320. The situation is worse in manufacturing and is similar in construction. Jobs have been lost there, bringing the numbers up to over 2,000 for the first three months of this year.

We also know that the manufacturing sector is continuing to contract. There has been a reduction in orders and an increase in costs. We hear that Ireland is becoming an expensive country in which to operate. These costs can be directly affected by Government action but have not been affected.

I heard the Tánaiste and Minister for Finance speaking on the Order of Business this morning and he mentioned the phrases "deteriorating financial situation globally" and the "high price of oil". He spoke as if the matter is outside his control, he can do nothing about it and outside influences are coming to bear here. That is not true. For the past number of years, we have been over dependent on a construction industry that is now in a downturn. The Government was happy to sit back and let the money roll in from capital gains tax and VAT returns. It was an easy number. All the Government had to do was sit there and preside over it yet we now see the downturn in the construction industry and the direct effect it is having on tax revenues. Yesterday, we saw another poor headline which showed that tax revenues were down €600 million in the three months since the budget. They are down almost €700 million on this time last year due to a drop in capitals gains tax and VAT returns.

I would speak for the next 30 minutes if I could. I am not saying it is all doom and gloom. I just wanted to make the strong point that the country has been mismanaged. We have been over dependent on the construction industry. Transport 21 is behind schedule. We need to invest in infrastructure to ensure that our competitiveness can be regained and that we do not slip further in this area. We also need to encourage and develop competition in our energy sector, an area for which the Government is, again, directly responsible. I could go on and talk about waste, environmental and water charges. I know that these charges are necessary. However, they are not controlled and are an excessive cost on business. I am sure the Minister of State knows that in his capacity. These are factors that could be controlled by the Government but have been neglected. We are now paying the price for that neglect.

Joe McHugh (Donegal North East, Fine Gael)
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I thank Deputy Varadkar for tabling this motion. To contradict Deputy Fleming it is not scraping the bottom of the barrel, but it is very relevant and pertinent motion. From dealings in my constituency I believe it is the most important debate we need to have in this House. While facts and figures might seem like scaremongering to some people, it is the reality with which we are faced. The vacuum that has been created did not happen overnight, or as a result of the events of 11 September 2001 or other global factors. In my county in the north west for many years the textile manufacturing industry was the bread and butter. With the decline in the manufacturing sector in the mid to late 1990s we needed to move on and embrace new areas of employment and initiatives.

In 1999 the then Minister for Enterprise, Trade and Employment, Deputy Harney, launched a task force report as a result of the major job losses in Fruit of the Loom and in the textile manufacturing industry which set out an ambitious target, which was welcome at the time, of trying to create new jobs in new environments. That task force was launched in 1999. It was followed by another task force initiated by the Minister, Deputy Martin. An interdepartmental report was published in 2002 covering problems that were not solved leading to high unemployment levels in County Donegal. The construction industry filled the vacuum in County Donegal after the loss of the textile industry, through not just direct construction jobs but also in ancillary services associated with the construction sector.

I will focus on my constituency because Deputy McGinley will focus on Donegal South-West, which has similar problems. The live register figures in Buncrana in February 2008 show a marked increase over 2007 for the under 25 male category. There was a 50% increase in unemployment between 2007 and 2008 for males under 25 in that area. That is symptomatic of what is happening around the county and the country, and we need to deal with it. It is not just a question of us on this side of the House raising the issue because there is a problem: we also have solutions to these problems. It is important that we address them immediately internally. I was somewhat disappointed by the Tánaiste blaming everything on international issues, including the exchange rate with the US dollar and saying that it was not our problem. It is not just that. Those working in small to medium enterprises and the representative bodies ISME and IBEC keep referring to competitiveness. We are in charge of our own competitiveness regarding ESB costs, telecommunications costs and other costs that we can control internally.

I sat on the National Economic Social Forum and there are solutions within that document. There are barriers to entry. Solutions were proposed for a more inclusive labour market, which need to be implemented. That is something we can look towards. Our peripherality is an issue and with an ever-expanding European Union the centre of Europe is moving further from us. We need solutions in terms of advancing the infrastructure of our ports. For the north west we need to consider the ports at Belfast and Lisahally in County Derry for integrated freight transport.

Deputy Conlon said we should not be scaremongering in this House and sending out negative signals. That is not our job. Our job as Teachtaí Dála is to be messengers for the people. As a messenger of the people, I spoke to a woman this morning whose son was forced to go to London to work. That is the reality and the message we need to bring to the House. It is not just about scaremongering.

Pat Breen (Clare, Fine Gael)
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Last December the Opposition warned the House of the impending economic crisis. At the time the Minister, Deputy Martin, said he believed the economy was continuing to show many signs of strength and that the figures showed employment levels were high and rising. We were accused of being the prophets of doom yet the statistical analysis shows that Ireland's economy is facing its greatest challenge in more than 20 years. The tremor permeating through the world's stock markets, the downturn in the US economy, and the consistent and rapid fuel price increases, all compound to put the Irish economy under pressure.

The latest quarterly economic report from the ESRI warned that economic growth is set to fall dramatically this year from 4.6% last year to 1.6% with no net gain expected in the number of jobs created. During the debate on the Private Members' motion in December I warned of impending job losses in the mid-west region and if the Government ignored them it would be at its peril. In the interim, we have had the welcome news from Shannon Development of the planned creation of 250 skilled jobs with Zimmer Holdings Incorporated setting up a medical devices facility in the Shannon Free Zone. This is the scale of the investment we need in the Shannon Free Zone. However, while we welcome this good news, there have been many job losses in the region in recent years. Another potential blow is on the horizon this week with the news that Unbrako Europe SPS is being taken over by a US company, resulting in fears for the future of the 80 jobs at this facility.

The live register figures provide the statistical proof if any was needed that jobs are haemorrhaging in County Clare. The live register figures in the mid-west region have increased by a staggering 15.3% according to CSO figures at the end of December 2007. This increase in unemployment is hitting homes in many corners of the county. The figure for Ennis, which is becoming a dormitory town because people are travelling from the town to work in Galway, Shannon and Limerick, has increased by 14.56%. In north Clare, in Ennistymon the figure has increased by 15.61% and in Tulla it has increased by 23.21%. In west Clare the figure has increased by 12%. This trend continues in to 2008, with an extra 823 Clare people signing on last month. The Forfás annual employment survey confirms that the mid-west is losing out. The share of agency-supported employment by region shows a reduction of 1.8% in the mid-west region.

If the mid-west region is to continue to be attractive for inward and indigenous investment then urgent action must be taken. How many more warning signs does this Government need? Key to addressing the decline is investing in our infrastructure. Paying lip service to promises of balanced regional development is not good enough in a region that is just not getting the jobs. Last year our region lost the connection to Heathrow, which was a major blow to many of the industrialists in the region. This week the open skies agreement between the EU and US came into force which will provide its own challenges. Instead of delivering on commitments to provide a major marketing fund to cushion the blow of open skies for the region we have a watering down of this commitment. Watering down marketing funding is not acceptable given the weakness of the US dollar.

Large digital black spots remain throughout County Clare and the new network generation has still not been rolled out. During this Government's watch, Ireland's position in the World Economic Forum's global competitiveness list has dropped from fifth to 22nd place.

Former US President, Mr. John F. Kennedy said that "economic policy can result from government inaction as well as governmental action". It is time for the Government to step up to the plate or its legacy will be that Ireland's position in the global economy will continue to decline. I urge the Government to support the Fine Gael motion.

Paul Kehoe (Wexford, Fine Gael)
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I appreciate the opportunity to speak on this very important motion and thank my colleague, Deputy Leo Varadkar, for tabling it. As Deputy McHugh said, it is not up to us to talk down our economy. We should be coming into this House and talking up our economy. Unfortunately, however, the way our economy has gone in the last year or two, we have had no choice but to tell the facts as they are.

I have no doubt that many Deputies on the other side of the House agree with the Fine Gael motion and the sentiments expressed by the Fine Gael speakers regarding the direction our economy has taken. If one examines the construction industry, for example, my county of Wexford has been totally dependent on that industry for the past number of years. A number of factories have closed in County Wexford and have not been replaced, especially in Wexford town and Enniscorthy. These included electronics and manufacturing plants. Hundreds of jobs have been lost. Rosslare Europort is located in County Wexford but it is not being used to its full capacity. I blame the Government, particularly the Ministers for Finance and Enterprise, Trade and Employment, for not utilising County Wexford, and particularly the Rosslare Europort to its full potential.

The Minister of State, Deputy McGuinness, attended a recent launch by Aircon Engineering, at which I was also present and saw at first hand what that company has achieved. It is a committed Irish company which did not receive any help from IDA Ireland, Enterprise Ireland, the Government or any semi-State organisation. The staff worked hard themselves. The company started with approximately 20 employees, has grown over the last ten years and is now employing upwards of 150 people. That company was started by genuine people who have worked hard to get where they are today and who received no hand-outs. At the same time, there are companies coming into the country which receive hand-outs. However, when our competitiveness changes, labour costs rise, energy prices increase or our infrastructure, including broadband, does not develop, they leave. They leave because they are not being genuinely looked after by the Government. While it is wonderful to see foreign direct investment in the country, it is important that foreign companies are looked after.

Deputy Breen spoke about the unemployment figures in County Clare but the figures for County Wexford are far more staggering. In the past 12 months there has been a 23% rise in the numbers on the live register. That is an absolute shame, particularly in the context of the buoyant economy that we have enjoyed for the past number of years. There has been a 25% increase in the live register figures in Enniscorthy. While Enniscorthy is not a major town by any measure, the fact that 25% more people have gone onto the live register there in the last 12 months tells its own story.

County Wexford has been totally reliant on the construction industry over the past number of years. Anyone who visits Wexford will see the vast amount of houses and other buildings that have been developed there. Often when people spoke to me about the construction industry in England and the fact that it declined overnight, I argued that it could not happen here. However, that is exactly what has happened in Ireland and in Wexford in particular.

Last weekend I called on the Government to set up a task force. However, I have spoken to Deputies from various other counties in which task forces are already in place who have told me they have made absolutely no difference. If a task force is to be set up in Wexford, it must have teeth. It must make a difference and be a forum in which people are listened to but unfortunately, this Government has not listened to the people of Wexford for the past number of years. The number of additional people on the live register there tells its own story.

It is sad for me to see people having to draw the dole or the jobseeker's allowance who genuinely want to work. Deputy McHugh made reference to a person who had to go back to England to find work. Are we going back to those old days again, where people had to emigrate to find work? I ask the Government to give serious consideration to what is happening. I urge it not to deny what is occurring.

Tom Hayes (Tipperary South, Fine Gael)
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I am pleased to have an opportunity to say a few words on this very important motion.

Unemployment is at a seven year high, at 5.2%. Transport infrastructure and broadband are at a disastrous state of development. No matter where one goes — any village, in any constituency, right across the country — broadband availability is an issue.

The unemployment figures for four towns in Tipperary are stark. In Cahir, unemployment is up by 14%, in Carrick-on-Suir, by 11.7%, in Cashel, by 18.4% and in Clonmel, by an incredible 31.4% . The motion makes specific reference to the closure of one industry in Clonmel, namely Merriott Radiators, a company that has been in the town for many years.

These figures are incredible but we have heard speaker after speaker defending the actions of the Government. Everyone knows that oil prices can rise and we cannot do very much about that. However, there are areas on which the Government certainly can take action and the provision of broadband is one. We should hang our heads in shame at what is happening with regard to broadband in this country. Local service charges are also increasing every year. Small businesses in this State are finding that local service charges, which are increasing much faster than the rate of inflation, are putting pressure on their operations.

I wish to refer back to Merriott Radiators in Clonmel. That company transferred its operations to Wales. Why did that happen? It is shameful that the company which had a good and committed workforce who gave it more than 30 years of service, would simply leave and go across the water to another State. Surely there is something wrong in a country that allows that to happen and something amiss with a Government that does not stand up, examine itself and examine its policies in the face of such events.

Last week in Clonmel, Marlbrook Hotels, which had huge plans to build a golf course, hotel and housing, has put its plans on ice because of the current economic climate. It is afraid to expand and develop and has put all of its ambitious plans on hold. At the same time, the Government sits and says that everything is fine but it is not living in the real world. I beg the Minister of State, Deputy McGuinness, who knows South Tipperary, to examine what is happening there in the next number of months.

Last week the Minister for Agriculture, Fisheries and Food, Deputy Mary Coughlan, visited Tipperary Co-Op, one of the finest companies in the country. It is a top of the range cheese production facility. It is an excellent facility but where are the producers gone? The farmers who produce the milk are all gone from the land. Five miles down the road from the co-op, Rockwell Agricultural College has closed because there are no young people on the land of Ireland. Tipperary Co-Op is a fabulous facility. We have been told that demand for food is rising and markets for cheese are opening up all the time. People all over the world are anxious to buy Irish food but where are the producers to produce it?

I ask the Government to stop in its tracks, to think carefully, examine what is happening outside Dublin and acknowledge that there is unemployment in the country.

An advance factory opened in Tipperary town but for seven years there has not been one ministerial visit or IDA promotion of that facility. It is disgraceful. The Government should hang its head in shame at what it is doing to Tipperary, the premier county. I urge the Minister of State to come and help us out. He is not living very far away and I know he understands the way we think and the fact that we want to get on and deal with this important issue.

Dinny McGinley (Donegal South West, Fine Gael)
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A discussion on unemployment is appropriate, opportune and timely. I compliment my colleague, Deputy Varadkar, on tabling the motion and on the research he conducted in framing it. Once again, unemployment is escalating and the unemployment rate is currently 5.2%. Former Taoiseach, Jack Lynch, who was a decent man, said any Government that allowed unemployment to exceed 100,000 should not be in office. Perhaps the Minister of State or Deputy Varadkar will not recall that statement but the Leas-Cheann Comhairle will. The Government is trying to defend a scenario where almost 200,000 people are unemployed and I cannot understand how any Government could defend that position.

Many jobs were created over the past ten years and the Government's amendment refers to 500,000 but a balanced geographic spread has not been achieved in job creation. I refer to my constituency and county where over the past ten years 12,000 manufacturing jobs were lost, which must be a record. Deputy McHugh referred to the task force that was established. It undertook to create 1,000 new jobs annually between 1998 and 2007 but only 1,000 manufacturing jobs were created to replace the jobs lost at Fruit of the Loom, which straddled both constituencies in County Donegal, and the 600 jobs lost at Hospira in Donegal town. In my own area of Gweedore in the Gaeltacht, 1,000 industrial jobs were lost. The latest information suggests the unemployment rate is on the increase again in the county, which is much higher than the national average.

A number of weeks ago, the CSO indicated Donegal has the lowest per capita income on a county basis in Ireland and the highest unemployment. We must all realise the strong correlation between unemployment and per capita income. Why should a tax incentive not be extended to industrialists, entrepreneurs and investors to set up in Donegal similar to the incentives offered to set up in the upper Shannon basin, which covers County Leitrim, the only county in the Republic that borders County Donegal, and the mid-Shannon basis in the Tánaiste and Minister for Finance's constituency? Unless something imaginative such as this is done, the problems we have will not be addressed. County Donegal has a workforce, excellent educational facilities and a good infrastructure. We have everything except the will of the Government and the Department to look after the employment needs of many people in the county.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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I join with my Government colleagues who placed on record their appreciation for the Taoiseach's contribution to expanding the economy from 1997 onwards and to peace and prosperity. The foundations were laid during that time for the changing economy and for us looking outward with confidence to build business at home and to attract foreign direct investment. I wish him well in whatever role he takes up in the future. I also thank him for his contribution to Irish politics, on which we will have an opportunity at another stage to deliberate in a more expansive way.

I congratulate Fine Gael on tabling the motion. The party is consistent and its members have their heads stuck even deeper in the sand. The previous occasion we discussed a similar motion tabled by Deputy Varadkar, the same speakers adopted the same negative tone regarding all sectors of business. They have little to offer on developing business policy and they also refused to recognise the enormous contribution being made by the SME sector, with the exception of Deputy Kehoe who referred to Air-Con Group Ltd. in his own constituency. Every Member has made a complaint relating to his or her own constituency but they put forward very few solutions.

Damien English (Meath West, Fine Gael)
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I have in Meath.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Fine Gael Members failed to acknowledge the role of the SME sector and how fast it is expanding. Men and women get up in their thousands every day to make decisions on job creation and investment. Air-Con Group Ltd. is a typical example. In spite of what Fine Gael says, that company's managers would not base their decisions on the party's analysis. Their glass is half full, not half empty, and they decided on the basis of how the Government is developing policies to sustain job creation and investment to invest in their own business. Thousands of similar companies make that choice every day. They are investing to create employment and they take risks we, in this House, do not have to take.

The Government must give consideration to job losses, the issues involved and the new challenges. It is ridiculous for every Opposition Member to say globalisation, energy costs, job movement, offshoring and downsizing are only affecting Ireland. We must create and implement policies to give us the edge in job creation and investment. Fine Gael has forgotten that.

Dinny McGinley (Donegal South West, Fine Gael)
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All the jobs lost in Donegal have been relocated to other parts of the world.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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The policies successive Governments have put in place since 1997 ensured exports increased by 7% or €157 billion last year and our strategy in developing markets in Asia has resulted in a rapid increase in trade to that region of between 30% and 40%. I accompany representatives of Irish companies on trade delegations to those markets and they have consistently punched above their weight. They are doing business in diverse economies such as the United Arab Emirates, Russia, Canada and the US. Irish companies are ranked tenth in job creation in America and the pay off for this investment is jobs that are being sustained domestically. Fine Gael fails to recognise that, which is unfair to those who take these risks.

I refer to Deputy Ring's comments on enterprise boards. He stated everything is done for foreigners who invest in Ireland but refused to acknowledge the fact that 21 businesses received grants amounting to €500,000 in County Mayo in 2007. The same happened in County Kilkenny, while 26 companies received €600,000 in County Kildare. Deputy Varadkar referred to upskilling the workforce. Enterprise boards are making significant investment in sustainable, indigenous jobs in every county and they have on record companies who continually return to them for assistance in education and training for both their employees and managers.

Recently the House debated the world trade talks for two days and no Opposition trade spokesperson made a contribution. That says a great deal about the Opposition's policies and future outlook for this country. It is essential Ireland achieves a good deal in those talks. I am glad a number of Opposition agriculture spokespersons support the Government's approach but Fine Gael Members fail to see the future in the context of those talks. They should be ashamed of themselves for coming into the House week in, week out saying the same thing without acknowledging the positive aspects to the economy.

Joe McHugh (Donegal North East, Fine Gael)
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What about the people with no jobs?

Damien English (Meath West, Fine Gael)
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It is a pity I was not in before the Minister of State because I also wish to speak about small businesses and SMEs. This area should be a major focus of the Government with regard to job creation, particularly over the coming years. I know we have had successes but we have not had enough. I am glad the Minister of State mentioned it because I totally agree with him. This is where we will solve our job problems and create many jobs.

It is true that many opportunities for job creation could and do exist within the SME sector. Unfortunately, several unnecessary barriers to expansion block any such job creation prospects and these need to be tackled. According to a recent ISME survey, business confidence in Ireland has plummeted to a four year low. Yesterday, the Taoiseach spoke about confidence in the country. We have problems and we must recognise them.

Small businesses, particularly in the distribution, retail and construction sectors are markedly less optimistic about the prospects for the economy than they were a year ago. The slowdown in the housing market and construction sector and the continuing erosion of competitiveness are certainly feeding the mood of gloom. We need to restore their confidence with a new strong Government with a new game plan to tackle the challenges and problems with real targets and solutions and not just with fancy PR.

These problems include the cost of doing business, problems with local government, red tape from European and national laws and planning delays on which we had a good discussion previously with the Minister of State. I am glad the Minister of State is willing to discuss this with committees because major problems exist which we need to fix to open up opportunities for small business. Other problems include levies and charges on people, infrastructural problems with roads and bridges, parking problems in towns and the cost of buying a site at which to conduct business. The lack of grants is also a problem for many small businesses. The enterprise boards do great work but only in certain sectors.

Many people with good ideas for job creation do not get the chance to enact them. We need to expand the grants available to them or at least to give them more incentives such as fewer rates, taxes and charges in the first three or four years. The Minister of State is a businessman and he knows the first one or two years in business are extremely difficult, particularly when one begins to pay tax 18 months down the road. This is when cash problems hit. If we are really to help these businesses to create jobs this is where we must do so.

I mentioned high costs are a barrier. The cost of doing business in Ireland has increased significantly due to a mixture of high inflation, strong growth in wages, in particular public sector wages, increases in the cost of State and local council services and a greater burden of regulation. As the cost of doing business rises, the cost of expansion and growth rises. Without expansion and growth we will have no increase in employment levels in Irish SMEs. In fact, unemployment will continue to rise.

What has been driving Ireland's high rate of inflation? The cost of water, refuse and miscellaneous services increased by more than 200%. The cost of electricity rose by more than 50% and motor tax by almost 30%. The list goes on. All of these prices and increases can be fixed by Government because they are related to Government and local government. We must hone in and try to make major changes urgently. To do so will mean tough decisions being taken by Government. I believe people in the Government can do this and our job will be to force them to do so. To continue to put heads in the sands and deny there is a problem is wrong. We need a new and strong plan to fix these problems.

With regard to infrastructure, apart from roads, rail and bridges, broadband is a key area for job creation. It is an area in which the Government has failed. We have not moved as fast as we should have. Ireland's broadband penetration rate is only 17.4% according to the EU's information society and media department. The EU average is 20%. One might suggest that 20% would be good enough and our previous aim was to attain the EU average. This is not good enough when we see other countries such as Denmark which is at 35.6%, Finland at almost 35% and the Netherlands which also has 35% penetration. France is higher again. We are behind in this area and it has serious effects for business, particularly the small business sector, as well as for education.

The roll-out of the metropolitan area networks, MANs, nationwide has been extremely tardy and instead of the Government stepping up its investment in this, it has delayed the roll-out of the second phase until it reviews the first phase. It is always about reviewing, waiting and pilot schemes. We need to move forward.

Today's news is dominated by one story. However, other news stories are in the newspapers today. In today's Irish Independent, John Mulligan rightly points out in his review of Ireland's broadband offerings that the MAN review is due for imminent release. However, the networks essentially replicate existing Eircom infrastructure. Where is the Minister for Communications, Energy and Natural Resources planning to go with this MAN scheme? When it is in place we must ensure local and home-based businesses can tap into it and use it. It has not moved quickly enough and now seems to be only following Eircom. I know in some cases, Eircom has followed the Government with regard to its plans and where to go with broadband but we must tackle this.

It is time to up the game with regard to the penetration, speeds and cost of broadband in Ireland because if this Government does not act, vital opportunities for start-up businesses and job creation will be lost. Many existing companies will not be able to expand without this technology. New job opportunities will be missed. This debate encompasses many other areas. I concur with the Minister of State that we must focus and do all we can to help Ireland's small and medium sized businesses. They are the backbone of society.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I thank the Minister of State for attending today's debate. I welcome his commitment to small industry. If he wishes to discuss negativity, I would like him to read through some of the Dáil debates from 1995 and 1996. I well remember those times when Nora Owen was accused of almost every murder which took place. We have a right in Opposition to raise issues. Deputy McGuinness did so extremely well from his own back bench prior to becoming a Minister of State.

The recent Forfás annual employment survey clearly shows how the Border region, part of which I represent, has lost out from the failure of Government and Government agencies to invest in the region. High end, high paying jobs are in the main concentrated in urban areas such as Dublin and Cork. The constituency of Cavan-Monaghan has been extremely dependent on the furniture and food industries. Furniture has lost out to the Far East and the food industry has been seriously affected by unlabelled imports or products, the quality of which cannot be guaranteed, such as beef from Brazil. Grove Farm in Smithborough is a victim of Government failure with regard to food labelling. I warned the Government and the Taoiseach in this Chamber with regard to this eight years ago.

It is disappointing that the ten years since the Good Friday Agreement have shown a drop from 10.3% of agency supported workers in the Border region in 1998 to 6.4% in 2007. In total, from February 2007 to February 2008, 1,000 extra people have signed on for social welfare in the constituency of Cavan-Monaghan, never mind the large number of those who have lost their jobs since February, such as those in Grove Farm and the building trade. A large number of foreign workers who were paying PRSI and PAYE have gone elsewhere since they lost jobs in the building industry. Large numbers were employed in industries such as timber framed houses and Kingspan related building industries.

In light of the present failures of the Government to utilise the benefits of the peace process, it must reconsider the lack of support for local industry, such as the lack of broadband in rural areas. One company in a village in County Cavan employs 23 people. It needs to do business on-line but broadband is not available and it cannot even get an idea from Eircom as to when it might be possible. Tourism has great potential in the Border region, in areas such as Castleleslie and Glaslough. We have top quality hotels in every town in Cavan and Monaghan. However, it is hardly on the map for tourism as far as Fáilte Ireland is concerned.

A previous speaker mentioned the Minister for Agriculture, Fisheries and Food and a cheese factory in the deep south. One of the biggest disappointments in our area was that every co-op in the northern region from Donegal to the west to Cavan-Monaghan came together to instigate a cheese plant, sought grant aid and were refused. This is an indication of where Government thinking must change. The Government must remain committed to the Border region. I recognise and accept the Taoiseach was committed to the peace process but his Ministers must follow on this.

Leo Varadkar (Dublin West, Fine Gael)
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The Minister's contribution to the debate yesterday was measured in contrast with the contribution made this morning by the Minister of State. Given the week that is in it, I will continue in that tone.

Yesterday, the Minister drew attention to the fact that the number of people in employment has increased from 1 million to 2 million during the past ten years. I acknowledge that achievement. He also stated that while there will always be job losses, the key test is whether the Government can replace lost jobs with new ones. I agree that the role of Government is to create the right environment for employment rather than simply to create jobs.

When I hear Ministers and Deputies opposite speak about all that has been achieved I am concerned that they have become complacent or are in denial. Deputy Fleming said Fine Gael is scraping the bottom of the barrel with this motion and Deputy Collins said we are scaremongering. This is a real issue that cannot be ignored. The standardised unemployment rate has increased from 3.7% to 5.2% and is still rising. This is significant and cannot be denied, ignored or dismissed.

The number of people signing on since the current Government took office has increased by 20,000. One cannot simply dismiss this and deny or pretend a real problem does not exist. There has been much mention of the external challenges facing the economy. I recognise external challenges exist in respect of the falling dollar, rising oil prices and the credit crunch, but what we in this House should be discussing is the internal challenges facing us and why they have not been addressed by the Government, an issue about which Members opposite have had little to say. The Government appears to have no agenda or reforms on the horizon. The more reform needed, the more the Government runs away from it.

The Minister of State said that we had not mentioned small and medium enterprises, which is untrue. Most contributors from this side of the House spoke about small and medium enterprises. The matter is specifically referred to in the motion. He also stated that we are offering only negativity and not solutions. We have put forward many solutions and, perhaps, I can provide some more for the Minister of State. If he is genuinely interested in assisting small and medium sized enterprises he could bring about a renewed focus on regulation and reducing the cost of regulation.

The employment law compliance Bill will shortly come before the House. While I have not yet seen any regulatory impact assessments — I am not sure if they have been done — huge elements of that Bill will increase significantly the regulatory burden on business. The Government has, year on year, increased the amount of red tape in this area and made it more difficult and costly for small businesses to function. While large businesses can afford to employ a person whose job it is to ensure they are compliant with all the legislation, small businesses cannot afford to do so. Often, small businesses are forced to spend hours on end and enormous amounts of money to comply with the body of legislation that exists. This is an area which the Minister of State could address by, say, setting targets for these companies. The Minister promised several times to do this but has not yet done so. He could opt to use the standards cost model used in other countries for the purpose of assessment. The Government cannot run away from this issue.

The issue of inflation was not addressed by Members opposite. The Government has given no commitment to address the issue of local authority charges, the deregulation of waste collection, tolling or to reduce the cost of doing business, which is what is driving the SME sector down and jobs out of the country. Very little was said about upskilling, labour market reforms and infrastructure. For example, why are we not following the model used by Denmark, which has a much higher participation labour force than Ireland? While many Members on this side of the House spoke about broadband, Members on the opposite side had almost nothing to say about it.

The Minister referred yesterday to migration and green cards. The green card system is a start but it is not what we need. We need something much broader and more radical than the green card scheme if we are to attract highly skilled people into our economy. These are the types of solutions we would like to see. The Government cannot simply rest on its laurels and tell everyone how great matters have been for the past ten years because that is not the solution. The economy has changed and factors are different than they were even three or four years ago. What we need from Government is less denial and self-congratulation. It should take its head out of the sand and implement the policies needed to restore confidence to business. If it does that, we will support it.