Marc MacSharry (Fianna Fail)

It is not wrong. A number of Ministers use hybrid Lexus cars. Perhaps we could see improvements with the whole fleet being changed to such cars. It would be a waste of money to change all the cars at once but as they need replacement, there is no question but that more environmentally friendly vehicles should be purchased, and that is happening. One need only look at the ministerial cars to see that. People, including politicians, doctors, etc., should do all they can for the environment. I must improve in that regard because I drive one the gas-guzzling vehicles to which Senator Twomey referred. I will have to take steps to improve my contribution in that regard.

The Bill includes a range of business-friendly measures which will support continued growth and job creation in a climate of economic slowdown and a period of below trend growth, although a period of growth nevertheless. Independent economists, including Ernst & Young, predict growth of 2% to 3% in the year ahead. That would still be the envy of most of our neighbours in the European Union.

The various measures aimed at combating tax avoidance and criminal tax activities are welcome. The Minister went through a number of them and Senator Twomey acknowledged that we will have the opportunity on Committee Stage to go into them in more detail if people so wish.

The Finance Bill has brought forward a package of measures underpinning those in the budget which will allow business to thrive and ensure those who are less well off in our society are properly looked after. In a period of economic slowdown, we should invest, through modest borrowing, in maintaining our capital programme through the national development plan which is key, particularly when we see a fall-off in levels of house building and private sector driven construction. That would serve us well.

I refer to the international environment. Many of the conditions which currently prevail are substantially outside the control of anybody in Ireland. We must be cognisant of that if we are to make a real contribution on this issue. In recent times, the banking system internationally has ceased to operate as before. Banks are not lending to each other at present, other than providing very short-term loans. That is very significant. Recently, the US Federal Reserve loaned $200 billion to ease tight liquidity. In recent weeks, the financial markets have been extremely unstable.

The strength of the euro against the US dollar is not good for the Irish economy. I suggest that the ECB verbally acknowledges that the euro is perhaps overvalued against the dollar. American tourists coming to Ireland are valuable to our economy. This year it will be 10% more expensive for Americans to go to places like the Killarney Park Hotel or other places that depend to a large extent on American tourists. In the past five or six years it has become probably 100% more expensive and this is without taking into account our inflation rates or rising prices. This is a real concern.

The ECB has limited tools available to it but I suggest that at least verbally we could begin to acknowledge that this is the case and Mr. Trichet could do then act. The alternative is given that there has not been any intervention in the foreign exchange markets on this side of the Atlantic for some time, perhaps our purchase of a significant amount of US dollars could be considered in order to weaken the euro and strengthen the dollar.

These are some suggestions. I am sure greater minds than mine could put more meat on that argument but foreign exchange is a real issue. I instance an example closer to home. If someone in Derry is planning a night out in Letterkenny, it will be 10% more expensive to do so. These are facts which are substantially outside our control as our only mechanism is through the Central Bank of Ireland communicating with the ECB. I hope the Government would use any tools open to it to impress this issue upon the Central Bank. I assume it is well aware of these issues but I would like to see a little more action.

The fundamentals of the economy are in very good shape and it is the envy of our partners. We are now in a different environment which will require prudence. I believe we should continue, no matter what, provided we stay below the 3% threshold of borrowing. We should borrow to ensure our capital development programmes continue. This is important for balanced regional development and in the context of maintaining our competitiveness. There is no question but there are many serious challenges. Employment is still high, notwithstanding that we have seen changes in the statistics for January and February. This is understandable given developments in the building and construction sector.

The demographics are still positive. The worker to dependant ratio is still very good and is the envy of Germany, France and Belgium. The maintenance of the national development plan is crucial.

I welcome the Bill. It would be impossible to debate every section. I have outlined the three factors of high employment, the right demographics and maintenance of the national development plan in an environment where our public finances are still reasonably sound. There are challenges ahead but I am confident the Minister for Defence, Deputy O'Dea, his colleague, the Minister for Finance, Deputy Cowen, and the rest of the Government, supported by this House and others, will steward the economy through these difficult years.