Martin Mansergh (Fianna Fail)

I welcome the Minister of State at the Department of Finance, Deputy Parlon, and his officials, one of whom is a former colleague of mine.

The report of the Economic and Social Research Institute is of considerable value. I am an admirer of the institute which provides independent analysis from which we can learn whether we agree with every recommendation it makes. Even if we do not agree with its recommendations, the ESRI stimulates debate and asks questions which is a good thing. Obviously, the Government will make decisions as in some, though not all respects, it has more information at its disposal.

The tone of the report is positive overall. It is clear that substantial public investment has taken place and will continue to be made at unprecedented levels. The report makes the point that public investment not only makes a short-term contribution to sustaining activity in the context of an international downturn, it also has a long-term input into competitiveness. According to a phrase used in the report, public investment is a stepping stone to realising our full potential. Undoubtedly, this is one of the keys to handling our deterioration in competitiveness. The ESRI argues that the macro-economic returns from the national development plan are higher than anticipated with 7% added to GNP from 2000 to 2002 and a 3% long-term contribution to growth.

While I would be the last to dispute that we could do better in certain respects, there is no basis for agreeing with the Fine Gael spokesman, Senator Higgins, that this report is a serious or damning indictment of the Government. That is a gross exaggeration of the measured and constructive critique in the report. Senator Higgins spoke about the importance of the EU to the west at the time we joined. When Padraig Flynn was a Minister and, subsequently, a Commissioner he did his bit for the west as did Senator O'Rourke when she was a Minister.

Senator Quinn mentioned the national competitiveness report which we should note and consider seriously. However, it must be remembered that it puts countries like Germany, which has three times our rate of unemployment, ahead of us. We must look at these things in perspective. We have a much better employment rate and financial situation than Germany. With all due respect, the national competitiveness report represents a businessman's perspective. While that is important as businessmen are the people who make investments, we should not adopt a completely trusting attitude to the report. I do not wish to accuse Senator Quinn of being naive. It is a useful measure like an opinion poll. The report has certain value but that value is not unlimited.