Brian Hayes (Fine Gael)

Senator McDowell is more upset about it than I am. The EU Commission and the Council of Europe issue platitudinal statements on issues connected with the Lisbon Agenda but there is no level playing field in respect of the euro. One set of rules applies to small countries such as Ireland, the Netherlands, Belgium and some of the Nordic countries, which adhere strictly to the limitations on public expenditure. Another set of rules applies to France, Germany and Italy, which decide to ignore these limitations year after year. The fact that there is no mechanism to deal with this must be addressed. Perhaps it is not a drawback but we do not need to be lectured about our commitments to staying within the Stability and Growth Pact when others, particularly France and Germany, have shown scant regard for the kind of limitations on expenditure that are regularly brought to our attention.

Reference was made to our economy's over-reliance on the growth in employment in the construction industry in recent years. The notion that this high level of employability in the construction industry can continue is not sustainable. We will not be able to build, on average, 50,000 to 60,000 new houses a year for the next 12 years. We face enormous challenges in terms of creating a much wider and more diverse range of employment options within our economy. We are far too reliant on jobs in the construction industry. A small increase in interest rates would have a devastating effect on house building and the levels of new jobs in the construction industry would also be affected. The Government should realise that we cannot not allow the construction industry to act as the mainstay of new jobs.

Despite the economic success of recent years, we face problems. Senator Ormonde has spoken about the problems facing people who are returning to education. We do not support people who leave school at the age of 18, go into full-time employment and cannot find either the financial incentive or opportunity to return to full or part-time education. The amount of money Ireland plc gives to each person between the ages of 18 and 21 on a full-time educational course is vast. I understand the figure was approximately €45,000 per student per year even before the introduction of free fees, which represents a massive investment. However, there are no opportunities for a person who began working at the age of 18 or 19 and who now wishes to return to formal education at the age of, say, 26. Neither the State nor his or her company will support it. The Government should consider introducing an educational credit. This would involve giving every citizen a certain amount of money to spend on education at some point in their lives. It is more flexible than giving all the opportunity to people in the formal education sector up to the ages of 20 or 21.

We will face an enormous competitive disadvantage over the next three years. The Minister of State is aware that the British Prime Minister and eminent socialist, Tony Blair, has abolished free fees and introduced top-up grants, which will apply throughout the UK and will have an impact next year on Northern Ireland. For the first time in many years, many third level institutions there will have a considerable competitive advantage over our institutions because they will have additional money generated from top-up fees. I understand that this additional money will be used for research, technology and investment that our institutions will not have because the amount of money we spend in terms of investment and research in third level institutions is paltry compared to that in other EU countries. Over the next number of years, colleges in Northern Ireland will be out of the stratosphere with regard to additional funding opportunities brought about by the new system. We need to invest more in our third level sector to ensure the success of the technology and knowledge-based sector. I wish the Minister of State every success with regard to his very simple objectives.