Tom Morrissey (Progressive Democrats)

The report ranked Ireland as the most expensive country in the euro zone, on a par with Finland, and significantly more expensive than the next group of euro zone countries.

In the area of taxation policy, the council points to the need to reinforce and sustain the advantages which our taxation system has generated for the economy, growth and employment over the past 15 years. I agree with its principal recommendation that we must keep direct taxes on profits low and lower the taxation of personal income. To do the opposite, as some members of the Opposition suggest, would jeopardise our economic growth and competitiveness. With over €1.5 billion available to finance his budget day measures, the Minister for Finance should allocate the bulk of what is available, after social welfare increases, to increasing tax bands and credits ahead of inflation.

Government investment in infrastructure has increased substantially in recent years. We see that right across the country. The Government's commitment to spend 5% of GNP will further add to our infrastructure. However, the council noted that in respect of infrastructure, Ireland performed poorly in a number of areas. It was 11th out of 12 countries in terms of public infrastructure relative to our GNP and 15th out of 16 countries in terms of the efficiency of distribution infrastructure, encompassing all forms of transport. There are few areas on which I agree with Senator Ryan but I could find common ground with him regarding Ireland's infrastructure. As an island nation we must ensure that our goods and services find destinations on foreign markets at a competitive price. Successive Ministers have worked to attract such markets. Ireland came 14th out of 15 countries in terms of broadband access and was 15th out of 16 countries in terms of the adequacy and efficiency of our energy infrastructure.

The major contribution to our economic success of our past investment in education cannot be overstated. We rank sixth out of 15 countries for the highest proportion of population aged 25 to 34 with at least third level education, but we need to be at the top of this league. The level of investment in pre-primary education is a specific concern.

We have a thriving economy. I am not saying that everything is rosy in the garden for the future. There are areas of concern on which this Government must keep its eye in order to maintain the level of inward investment we have been fortunate enough to win over the years. I look forward to this Government being very proactive in that area. We have seen, for example, in the insurance area where direct action by the Government can help small business and help this country generally by reducing costs and prices. I hope this type of policy will continue.