Seanad debates

Thursday, 18 October 2007

Economic Competitiveness: Statements.

 

12:00 pm

Photo of Paschal DonohoePaschal Donohoe (Fine Gael)

Of course. They examined the decision to make second level education free and to focus on the quality of education. They are learning from this and we must react. This will not be for the sake of those working in Ireland at present but for the students who frequently fill the Visitors Gallery. We must ensure that opportunities will be available to them in the future in the same way as I benefitted from decisions taken many years ago by Members of Fine Gael and other political parties. The importance of this is acute. The most successful part of our economic growth from the mid-90s to the early part of this century was export led, and concerned driving our international competitiveness and wage moderation. The nature of our economic success has changed dramatically and has changed from export led to construction dependent. It is also dependent on the degree to which our public sector has increased employment and the number of services generated. These factors will change in the coming years, perhaps dramatically.

I wish to focus on elements the Minister of State did not cover in his speech. These will be of major importance. I make these points as someone who worked in the international and multinational environment. They should register more heavily in political debate than is the case at present. The matter of service delivery was brought home to me dramatically yesterday afternoon. Working in a multinational company in Ireland, if one wishes to arrange broadband, a phone line, house insurance, or ask a question on employee or employer tax, the number of telephone calls and the amount of effort it takes to get those basics in place for one's employees is phenomenal.

This debate has touched on broadband availability. The effort it takes to get a telephone line installed in an office is gigantic. It takes the time of senior and middle management in any enterprise at the expense of creating profit and looking after their employees. This must be tackled. Yesterday, I had a query about my health insurance and rang my health insurance provider in the States. Within half an hour it gave me all the details I needed. Seeking the same information from a local health insurance provider would take months. Issues such as this fundamentally impact on the willingness of companies to remain in Ireland.

The Minister's statement did not contain the weight that should be given to the issue of corporation tax. Ireland has benefitted from an attractive rate of corporation tax. Parties on this side of the House played a role in securing this and the party on the other side has done a great job in ensuring it continues. The tax rate, however, will come under pressure. Ireland needs to fight its corner with the same degree of tenacity we have exhibited in EU agriculture and fisheries matters. If we do not secure an attractive tax rate, it will have a phenomenal impact on our ability to hold on to the businesses we have.

There is a need to examine these issues on an all-Ireland basis. I recently became aware of a major infrastructural project having to secure planning permission on one side of the Border. On the other side of the Border, another enterprise examining the same project was having to do exactly the same. Projects of this type must be co-ordinated and harmonised. We have been able to exploit our competitive asset on the global stage. If done on an all-Ireland basis, it will up our game.

Much is made of the third and fourth level sector in education. However, not every school leaver will be able to work in the life sciences sector or the high-tech, high-skilled end of multinational investment. It is of the utmost importance to future economic competitiveness that the basic issue of adult literacy is sorted out. Too many young children leave primary schools not able to read and write to a high degree.

The main nature of employment in the State and our reliance on one type of multinational investment will change in the coming years. The flak for that will have to be taken by domestic employment, whether it is service-based or local manufacturing. Sorting out issues of adult literacy and how best equipped school leavers are for the future will be very important.

I have worked in the multinational sector. What is an academic debate for many is important to me and others. It is important that our views are represented in the Oireachtas. The Minister of State acknowledges these issues. I have seen people lose their jobs in this sector. It is a searing experience, as searing as I having to leave the country when I could not get a job. We all need to come together on the tough issues. I hope this debate is the sign of a new Oireachtas approach to the matter.

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