Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Question 59: To ask the Minister for Finance if he will review the job stimulus measures adopted in other countries; and if he has identified initiatives which could be successful here. [19127/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The first fundamental way to protect and expand Irish jobs is to get our competitiveness right and to put the public finances on a sound footing. This we are doing. The second key strategy is to invest in the smart economy, maintain high levels of capital spending and direct that into labour intensive areas. This we are also doing. For example, I announced the establishment of a stabilisation fund of €100 million over two years, to support vulnerable but viable enterprises and a research and development target of 2.5% of GNP by 2013.

In addition to that, I announced in the recent supplementary budget a further range of activation initiatives which will msupport individual enterprise through enhanced access to the back to work enterprise allowance scheme; facilitate some 1,400 additional claims; encourage further education through earlier eligibility for the back to education allowance; facilitate work experience through a new scheme, to include placement of graduates, which will cater for 2,000 people; expand activation opportunities for over 14,000 people; support redundant apprentices to receive additional training in the education sector – for up to 700 people; enable participation in further and higher education for over 6,000 people; and initiate pilot training schemes for workers on a three day week.

Each country must pursue its own jobs strategies in line with the resources it has available and the particular features of its economy. There is no "one policy fits all" approach.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

I am disappointed with the vary narrow agenda the Minister is pursuing. The ESRI has told us we face 300,000 extra people out of work. Unemployment is growing at twice the rate of any other country in Europe or any of our competitor countries. The Minister's strategy is simply to pursue the economy down. His tax increases offer no hope, vision or chance for people to see something worthwhile for their effort.

The number of initiatives in other countries is startling. There are initiatives on tax deferral, carrying back losses, accelerated depreciation for certain key investments, deferrals of due date, prompt payments from the State, reduction of compliance costs for small businesses and cutting VAT for small business to generate activity. Other governments, which are facing much less stress in their labour markets than we, are developing such initiatives.

Why will the Minister not look at the job protection agenda allowing small businesses the scope to retain employees? Instead, they are having to tell workers who have served them well for many years that the doors are closing and they are being let go.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I examined Fine Gael's proposals in this regard. I provided access to my Department before the budget and I am glad Deputy Bruton used that facility. Many of the Fine Gael proposals replicate the Government document, Building Ireland's Smart Economy, which was published last December. Almost none of the programmes proposed by Deputy Bruton in his party's document is new.

However, I welcome the fact that Fine Gael acknowledges and supports the Government's positive initiatives in that area, such as smart metering in every home by 2013, electrical vehicles, the national grid as a smart grid, microgeneration, renewable energy and the extension of broadband. A number of initiatives being taken by the Government are very much in line with what Fine Gael is proposing. I welcome the fact that these were in that party's document.

There are serious questions about the sustainability of some of the investment Fine Gael proposes, including the use of the bulk of the national pension reserve and increasing borrowing significantly, whether on or off balance sheet, at a time when the State already has a substantial borrowing requirement. I question the wisdom of setting up four new commercial State bodies when the Government is intent on rationalising State agencies. I am also concerned that some of the proposals are to be funded by selling off public assets when their prices are so depressed. That said, I acknowledge that many of the ideas Deputy Bruton is putting forward are part of mainstream Government policy.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

It is enough to make a cat laugh to hear the Minister question the wisdom of putting equity from the pension reserve fund into creating an energy infrastructure and a telecommunications infrastructure for the future while he is putting that money into buying toxic loans which will be a burden on taxpayers forever and a day.

Where are his initiatives on VAT for labour intensive sectors, on PRSI concessions for people expanding their workforces or on changes to the social welfare rules to allow employees to cut back to 80% working but remain in employment? These are all prevented by rules which the Minister continues to endorse in the budget.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

We will not have an economy without a viable banking sector. The steps the Government is taking on banking, whether through recapitalisation or rescue measures, are not discretionary.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Having a decent electricity network is not discretionary.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

If we decide to let the banking system fail the economy will see-----

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

He talks about competitiveness but does nothing to deal with it.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

-----a reduction three or four times that already envisaged for this year. I appeal to Opposition parties to stop making politics out of banking. There is no advantage to our economy in that. We must have viable banks.

Kieran O'Donnell (Limerick East, Fine Gael)
Link to this: Individually | In context

What about taxpayers' money?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Yes, we will have to take the bad loans off the banks.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

What about an evaluation, a proper debate and proper documentation so we can assess the Minister's half baked ideas?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

We have had debate after debate since last September about banking.

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

We have?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I am interested in decisions which will repair the banks' balance sheets and ensure they are restored as the viable motor of the economy.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

No one believes his measures will repair the balance sheets.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Throughout the world, we have seen a dramatic lack of confidence and collapse in the financial system. If we repair that motor we will repair our economy. The idea that we can ignore this and engage in endless theoretical debate mixed with low political abuse as a form of addressing our banking problems is wrong.