Mary White (Fianna Fail)

I want to discuss four points – the national minimum wage, insolvent companies, rebates paid to employers and severance packages. I know from listening to Senator Ulick Burke on many occasions that he articulates extremely well the trauma faced by people who lose their jobs. I agree with him that it is a traumatic experience. Senator McDowell seems to think there is a conspiracy among companies to go out of business. There is a myth that companies gain something by doing so. However, companies want to continue to trade.

I have experience of business and I have dealt with people who have been unemployed for periods of time. A work ethic is like a gift from God or Allah, depending on one's religion. People want to work to survive and to pay their way in society. We started our business in 1987 when there was 18% unemployment. People came to our company on the East Wall Road who did not have a job. Young people who get a job are transformed after a year or two when they settle down and get some money. They are able to buy nice clothes and to have a decent standard of living. Their self-confidence improves when they take up employment.

Companies do not want to go out of business and they cannot survive without their workers or staff. Employers, management and workers work together to grow a business and to increase profits. If companies do not get sales and cannot make profits, they will not survive and jobs will be lost.

We spoke earlier about Ireland being a small open economy with a population of four million people. We need trade and sales to get employment. We must be able to sell out of Ireland. There are not enough sales in the country to grow business. We must increase trade from outside the country which will enable us to create jobs.

There was an increase of almost 50% in the number of redundancies during 2001 compared to 2000. The Department of Enterprise, Trade and Employment reacted quickly and set up a review group to study the existing redundancy legislation from an administrative, efficiency and customer service point of view. I was impressed when I read in the review group document that the person losing his or her job was seen as a customer rather than a number who must be looked after by the Department. That is part of what Sustaining Progress is about. We must ensure that the public service improves and lives up to the public's expectations. I commend the language used in the review group document. It is critical that we deal quickly and efficiently with people who experience the trauma of losing their jobs.

GDP was 10% in 2000, but it contracted to 6% in 2001. The United States economy and all industry stalled during 2000 and 2001. That was the reason there was a 50% increase in the number of redundancies between 2000 and 2001. Everything stalled because there was a slow down in growth. The average European growth is 1.9%, while our growth is twice that rate. We are still doing well, although we have contracted. If there is a contraction, business will slow down and people will be laid off.