Shane Ross (Independent)

I have supported the Government's economic policy in almost every debate for some years. Not only have I spoken in favour of its policy, I have voted with the Government in this House, although I acknowledge that this is not of great significance. After a long period of support for what has happened under various Ministers for Finance I am now beginning to change my mind. Much of what Senator MacSharry said was true. This has been a difficult time for Fine Gael and the Labour Party to be in Opposition on an issue such as the economy because it has been an unprecedented success and criticising its management is politically foolish, although they indulged in this from time to time with no profit.

I think this motion is timely because while the Government side of the House is correct that the management of the economy has been strong, deft and beneficial to the country, what was said today was smug and very aspirational. An extraordinary complacency has sunk into the body politic, those running the economy, the Department of Finance and others. They feel that somehow, because we were successful when times were good, our economic success will extend for another five or ten years. I do not feel this is the case. I think we are running into trouble and are refusing to recognise this.

The indications are that those who judge us with the kind of clinical independence we ought to respect are casting a negative verdict on us. Senator MacSharry rightly referred to the European Commission in this regard, and the International Monetary Fund, IMF, cast a similar verdict, as did European analysts.

The Irish stock market was one of the worst performing stock markets in the world last year and, while this might not be accurate as a final judgment of the Irish economy, it indicates a change of opinion about it. The Irish stock market is down about 40% from its highest point and, while this does not necessarily indicate that those selling Irish stocks are right, although there are many of them, it is foreigners who are selling these stocks. Foreigners take an objective view of the economy and they do not like what they see here anymore. They believe the game is up and the good times are over and, to some extent, this is a verdict on the Irish Government's economic policy. This may not be altogether accurate because the world is going through economic problems, as Senator MacSharry pointed out, but foreign investors are indicating that things here have worsened and the economy has become vulnerable. They do not feel the Government is on top of what is going on.

I am concerned by what the international community has seen happen to the property market, one of the pillars of the economy, which has more or less collapsed, despite the anaesthetic words of spin doctors and soothsayers. I am also concerned about multinational companies in Ireland and Senator Donohoe will be familiar with this topic.

There was a debate in this House recently on broadband and the Broadband Infrastructure Bill went on the Order Paper today, but the Government's complacency on the issue says it all. Ministers have said we should not worry about broadband because multinationals are still coming to Ireland but this merely means they have not quite rumbled us yet. We are sitting on our laurels and are happy with what has happened in the past 15 years. We are not keeping up with what is happening to this generation. If we do not realise we are falling behind with regard to broadband and other areas, and the Fine Gael motion mentioned infrastructure, the economy has serious problems.

The Government is depending greatly on social partnership and we must be careful of this. It tells us not to worry in the hope that talks on the issue go well, but social partnership does not matter much anymore. It is a nice charade that involves the trade unions and employers. Once an agreement is reached we are told the economy is fine because a pay agreement has been reached. This is a cosmetic exercise that does not represent the truth as only employees who are members of trade unions and employers who are members of the Irish Business and Employers Confederation, IBEC, are bound by it. Some of the most important and vibrant parts of this economy are members of neither and will have no truck with social partnership. Ryanair, the most successful company of its generation in the Irish economy, refuses to join IBEC and believes social partnership to be nonsense. I recently asked the head of a multinational what would happen if trade unions started recruiting in his company and he said it would leave Ireland overnight to return to America.

It is convenient to place great credence in social partnership because, without doubt, a deal will be done — a deal is always done — because it suits all those involved to create a charade that the economy is healthy. This will not matter much because it is not the real economy anymore. Those who depend on social partnership — conservatives and people with vested interests — are talking about the old economy. IBEC and the Irish Congress of Trade Unions, ICTU, share the same interests. They each want to pose as counsellors for the economy when the economy exists elsewhere.

I warn against the sort of complacency the Government has shown today. I point out to the Government that multinationals are probably the most important prop to the economy and no major multinational has located here in the past year. Can the Minister of State address this? Strong and worrying signals are coming from the multinational sector but they can be addressed if we create the necessary infrastructure and do not fudge the issue.