Pearse Doherty (Sinn Fein)

The slowdown of the economy is no surprise. It has not been helped by our dependence on the US economy which has been on a downward slide since the sub-prime crisis broke. Neither has it been helped by the failure of the Government to intervene as the competitiveness of the Irish economy has been eroded. Our ranking in terms of global competitiveness has fallen since 2000. There are numerous reasons for this, including increases in consumption and investment rather than strong export growth; the slowdown in Irish productivity growth, particularly in the high-tech sector; the contribution of net exports to economic growth being small or negative in recent years; and the high reliance on the construction sector for employment.

Since 2000, 65% of jobs have been created in public services or the construction industry. In the same period, the agriculture and manufacturing sectors have lost jobs. It is crucial the Government acts to improve competitiveness. How successful it will be in doing this depends on key decisions in areas such as regulation, finance, social capital and physical and knowledge infrastructure. Ireland's physical infrastructure, North and South, remains a source of acute competitive disadvantage. During the boom years successive Governments failed to introduce the infrastructure needed to attract foreign direct investment and enhance domestic business and ordinary people's lives.

Our cities are congested and public transport infrastructure is inadequate. We pay the highest rates for broadband which is the slowest in Europe. House prices have pushed workers further into the commuter belts around the major cities, adding to personal debt and traffic congestion problems. In transport, energy and information and communications technology, Ireland's infrastructure lags well behind that of comparable countries in the OECD.

Furthermore, there is still a knowledge deficit, particularly with regard to pre-primary education where Ireland is well below the European average. A number of years ago Sinn Féin proposed the introduction of free preschooling as a means of solving the child care crisis and beginning the process of lifelong learning from an early age. We must deal also with the fact that many children do not complete secondary school. In addition, illiteracy levels are outrageously high for a first world country. At third and fourth level, we must examine why none of Ireland's institutions is ranked among the best in the world. To enter the ranks at number 250 is not good enough. I agree with Senator Quinn that we must do better. The use of ICT in Irish education remains poor. The statistics on the number of computers in classrooms that do not work are proof of that.

Our approach to research and development is a concern. While belated strides have been made in this regard, current employment in and expenditure on research and development in higher education and enterprise remain well below leading comparable countries. Sinn Féin seeks an all-Ireland research and development strategy co-ordinated through the enterprise development agencies, central and local government, business, trade unions and educational institutions, including a programme of assistance to small and medium enterprises and new businesses to develop new research and development business plans.

The rising cost base is undeniable. However, several contributing factors can be remedied by appropriate, progressive Government intervention. The three largest sources of spending in Ireland are housing, child care and health. The need for wage increases in such conditions is genuine but the Government through its policies can reduce the cost burden of housing, health care and child care on ordinary workers. That would have a positive impact on wage inflation. For the reasons I have outlined, I support the motion.