Marc MacSharry (Fianna Fail)

I welcome the Minister of State to the House. I am pleased to have an opportunity to make further points and reiterate previous points relating to decentralisation.

I welcome the Flynn report, which gives a clear outline of the properly managed implementation of the decentralisation programme announced last year. It is worth noting that this is phase two of the Fianna Fáil decentralisation programme, or possibly phase three, as the Leader, Senator O'Rourke, pointed out. This began in the 1960s when her late brother, Brian Lenihan, was responsible for the decentralisation of the Department of Education to Athlone. There was a continuation of this in the late 1990s and now we are onto phase three, which will be implemented on a phased basis over the next number of years, as clearly pointed out in the Flynn report. I am absolutely delighted the programme will proceed over the next number of years, which is the fastest possible time in which it can occur.

By way of rebuttal, the Minister for Finance did not refer in his budget speech to a three year deadline. Phil Flynn points out in his report that in the past, when various Governments made commitments or stated aspirations to carry out policies, there were no deadlines or targets attached. Scarcely a job exists nowadays which is not performance-related or subject to performing to targets. While various sensational press reports and newspaper articles stated that the programme would be rolled out in three years, this could not happen. This was not the intention. However, the intention was that it would be well under way but it was important to state a target and seek to perform to that target, otherwise nothing would happen and our party might be criticised. It was a cliché for many years that if anyone drained the Shannon, X party would do so, but of course it was never drained. Thank God, things have moved on substantially since then. Thanks to the Phil Flynn report and the vision of the former Minister, Deputy McCreevy, the Minister of State, Deputy Parlon, and the Government as a whole — following on successive Fianna Fáil and Progressive Democrats Governments and Fianna Fáil Governments — there has been this type of consistency, and I am pleased we are moving forward.

I had not anticipated the kind of crossfire evident here earlier. The entire contribution of Senator John Paul Phelan, for whom I have tremendous respect, was substantially about what people said in this House previously and how they were proved incorrect. Perhaps the biggest irony is that the entire decentralisation programme would be complete today if in 1981 and 1982 the then Minister for Finance, Deputy Bruton, had not cancelled the proposals of a previous Fianna Fáil Administration. In a second cancellation, he proceeded to sell sites which had been secured throughout the country, which was consistent with the policies of that Administration. As Senator Leyden said, they were more concerned about taxing children's shoes so that ladies with small feet would not be able to cash in on the possibility of buying footwear without paying their due taxes. It was hardly surprising, therefore, that the then Minister for Finance, Deputy Bruton, sold the sites. This meant waiting for a considerable period before being able to revert to a decentralisation programme, which was successfully implemented by the 1987-89 Government, and in which the Leader of the House played a very important part.

We are experiencing the benefits of that programme today. There was an allocation of 250 civil servants to the then Department of Social Welfare in County Sligo. It is worth noting that today almost 700 people work in that office. While Sligo is to lose 100 jobs by way of localising the mother and child scheme, I am pleased that under the first and second phases of the decentralisation programme, 100 additional posts will be created. I would like many more jobs, as I am sure every town and cluster of more than three houses would like a Department in their back garden. However, this is neither realistic nor feasible.

A number of Opposition Senators asked about Roscrea, Loughrea and various other towns. This is missing the point. It would be fantastic if the Minister of State were in a position to announce 1,000 jobs for Sligo. However, this is not a parochial matter, it is about the policy of decentralisation and people. People must think regionally. Senator Feighan, for whom I have tremendous respect — unlike Senator Leyden, I will not speculate about his political affiliations before he came to this House — referred to how Boyle, which fought hard and made a site available free of charge, had been overlooked. Sligo County Council, and perhaps most county councils throughout the country, were making available a site free of charge. The Senator will need many more votes than Boyle if he is to transfer from this to the other House. Phase 2 of the plan is not 100 years away. The second Phil Flynn report will be published in March, which will be followed by immediate action by the Minister of State, Deputy Parlon, and his colleagues.

In the region of 300 jobs will be created in Carrick-on-Shannon and approximately 240 in Roscommon town, which is 550 jobs in the constituency. Sligo will also benefit. The 700 staff who work in the Department of Social and Family Affairs commute from Senator Bannon's constituency, Donegal, Roscommon, Cavan and Fermanagh. Of course, it would be great politically to be able to say 1,000 jobs will be created in Sligo, Portlaoise or wherever. However, we must consider the regional aspect of decentralisation in order to achieve the ultimate benefits. The Government must take the lead in tackling regional imbalance and investing in the regions.

The private sector should follow suit and engage in the regions. Irish indigenous industry should decentralise office facilities to other parts of the country and we should stimulate and attract foreign direct investment through the IDA and other agencies. The Flynn report makes the point that the decentralisation of State agencies has not happened before, which is not entirely true. A number of years ago, the IDA decentralised constituent parts of the organisation. For example, part of the international trade service division and the entire engineering division is located in Sligo. When Ireland is being marketed in Dusseldorf, Japan, New York and throughout the world, it is being marketed from Sligo. Over time, it will be possible to bring these agencies to the area. The IDA has already done it. In the 1980s the then leader of Fine Gael, Mr. Alan Dukes, stated it would cost £45 million. It did not cost that. As Senator Mansergh rightly pointed out, decentralisation was a cost-saving measure. Decentralising out of Dublin was cheaper by approximately 50p per square foot, which represented a significant saving.

According to the report of the implementation group headed by Mr. Phil Flynn, over the lifetime of an average mortgage, some 25 years, that is precisely what will happen again. There will be very significant cost savings because, instead of paying exorbitant rents in Dublin, which are climbing and represent dead money, we will have secured state-of-the-art facilities nationwide. The savings in rentals will continue to accrue at that level, and the State will own the buildings, which it does not do in Dublin.

Decentralisation is a tremendously positive step. The issue has been too politicised. Senator Ulick Burke said it was the Minister of State, Deputy Parlon, who politicised it. That is most certainly not the case. It has been politicised since the 1980s by others. It should not be politicised. It is a very positive policy and there is only one party——