John Gerard Hanafin (Fianna Fail)

I welcome the Minister of State, Deputy Killeen, to the House. The quarterly national household survey brings more good news. We should never be embarrassed by good news from The Economist, which described Ireland as the best place to live. The quarterly national household survey shows how well the economy is going. It is backed up by the National Competitiveness Council and by further indices outside Ireland.

Such is our remarkable progress, our biggest worry is that some commentators may expect our economy to levitate. We have achieved remarkable rates of economic growth over the last decade and recorded one of the best economic performances in the world. From 1997 to 2004, Irish GDP grew by an average of over 7.5%, compared with an average of just over 2% in the EU 15. The National Competitiveness Council calculates that under the sustainable growth heading, Ireland's living standards as measured by GDP per capita means we come first out of 15 countries while for GNP per capita we are sixth out of 16 economies examined. GNP per capita has almost doubled since 1997 but it is not solely a matter of arcane economic numbers.

Real progress has been achieved in improving living standards and this is reflected in Ireland's strong performance in the UN's Human Development Index, a good indicator of general quality of life. Here we came fifth out of 15 comparable countries. In addition to the decline in unemployment and long-term unemployment, the ESRI has shown that over the period 1994-2001 life chances have improved significantly. This is a trend directly related to declining unemployment and reduced levels of dependence on social welfare in a period of economic boom.

This Government has contributed greatly to economic growth and the benefits that have accrued. More importantly, it has contributed to the quality of life and will continue to do so. I look forward to the next budget and welcome yesterday's transport plan, which sees Ireland into the 21st century. We will have integrated systems, a metro, extra capacity on the Luas and more national roads and rail. This will meet needs in a positive way. The new rail stock is a credit and will be efficiently run. Fianna Fáil has a vision for the economy, the country and the people.

What does an increase of 400,000 in jobs since 1997 signify? It means we have put in place the right enterprise policies to build a strong economy. Through lower taxes, individuals are given more choice over how to spend their incomes. A culture of enterprise has been nurtured where people with new ideas are not stymied at every turn. In a decade, our approach to risk takers has changed and entrepreneurs are no longer left with the option of having to emigrate to innovate. Ireland has been transformed from a country where many young people had to leave to find jobs to one where young people from across the globe are now contributing to our economy.

In an age when we see resentment bubbling against migrant workers, we must ensure people know the value migrant workers bring to this country. We must ensure they are cared for. It is the Government's policy that every worker receives céad míle fáilte.

The Government has implemented broad economic polices that have changed the business environment. This is not just our own analysis. After eight consistent years of managed growth and prosperity the International Monetary Fund is still able to commend what it refers to as Ireland's "continued impressive economic performance, the result of sound economic policies". The employment figures published last month by the CSO tell a story of transformation. The figures from the latest quarterly national household survey are marked proof of the effectiveness of Government policies in the areas of employment and the labour market.

Our recent economic success has been remarkable. The jobless growth of the early 1990s has long since been replaced by consistent employment creation. Employment increased by 93,000 in the 12 months to August 2005, bringing the total at work to 1,929,200. This is the highest annual growth rate in five years and is an increase of 31%, some 461,500, since 1997.

Women have particularly benefited from the very singificant growth in employment during this period. The number of females in the workforce has increased by 39% since 1997 as against the 26% increase in male workers. More needs to be done if we are to continue to attract women into the workforce. The upcoming budget will include child care measures that will play an important role. Yesterday's transport initiative will provide better services and make it easier for people to commute within a reasonable time.

The strong employment growth has been based on a strong and vibrant economy. With favourable economic growth forecast to continue, the indications are that employment growth will be maintained in 2005 and 2006. Employment is forecast to grow by around 2.9% in 2005 and by 2% in 2006.

The biggest threat to our economy in 2006 is that it will overheat. There was a time the Irish Central Bank had control over interest rates but that no longer applies and there are benefits to the euro. We cannot slow down the economy and the Government is aware of the threat of constriction in the market, brought about by too few workers and too many jobs. Unemployment continues at a very low level of 4.2% and is forecast to remain at around that level into next year. Our unemployment rate is currently less than half the EU average of 8.6%, compared with a rate of 10.4% in 1997. The numbers of unemployed have decreased by 50% in this period, from 171,000 to 85,000. Long-term unemployment has dropped from 90,000 to 27,000 — a decrease of almost 70%. It now stands at 1.4% which is about one third of the EU average.

The benefits to the economy outlined in the quarterly national household survey are clear. The Government is proud of its achievement and will continue its good work in that regard.