Feargal Quinn (Independent)

I welcome the Minister of State back to the House. We are seeing a lot of him in recent times. That is good news but, on the other hand, unemployment is not.

I was a member of a partnership group which I had to leave when I was elected to the Seanad. I was concerned by a memory I had of previous times where groups were formed in different parts of the country to solve a problem. I thought it was great that people were getting up and doing something for themselves but when the group got together what was the first thing it did? It decided to send a deputation to Dublin in order that the problem would be solved from there. I am a great believer in the notion of doing it oneself, in self-help and in people being able to organise themselves. I remember going to the first meeting of that partnership in which I was involved. I brought a number of ideas but discovered that nobody else was thinking of doing it themselves. They thought they would get some organisation to do it for them, that they would get in touch with FÁS or some other group, many of them referred to by the Minister of State in his speech.

I said to them that there was a future in the area. We had a supermarket there and we needed somebody who could make jam and somebody who could provide good celery which was hard to get. One person started to grow lettuce. Another set up a car valeting business, another a window washing service. Suddenly we found there were a number of jobs, none of them big jobs, but they were getting people to think correctly. They were thinking of doing it themselves rather than relying on somebody else to do it for them. I have a concern, therefore, that when we set up or use State agencies, we might forget that there is work that requires to be done. There should be a way of doing it.

We must ensure and encourage the continuance of foreign direct investment. I was disappointed in one aspect of the budget. With all the tough decisions and all the bad news, something that created a spark was needed in the Minister of Finance's speech. The importance of foreign direct investment must not be forgotten. I was delighted that the Minister gave a guarantee that the 12.5% corporate tax rate will not change.

A few weeks ago in the first debate between Senators Obama and McCain in the US presidential election, Senator John McCain made an error. He criticised Senator Obama because of the likelihood that he would increase tax, and pointed out that Americans should look to Ireland. He said that when this country reduced tax it took in more money and that its corporate tax was 11%. He meant, of course, 12.5% but perhaps he was giving us a hint. It would have been great if, when the Minister was announcing the tough decisions and the bad news, that he had announced brightly that we were taking Senator McCain's advice and were dropping our corporate tax to 11%. The reason I raise this is that every time taxation rates have been reduced, revenue has increased. As corporation tax was progressively cut from 30% to 12.5%, revenue generated from this source increased significantly. The decision by former Minister for Finance, Mr. Charlie McCreevy, to reduce betting tax from 20% to 10% was greeted with a chorus of criticism. However, the increase in income from this tax was such that the Minister decided one year later to reduce it further to 5%. My intention is not to be glib but to remind others that we must show imagination in addressing unemployment.

While it will not eliminate unemployment, a recent French initiative to tackle the problem has impressed me. Retired engineers, architects and other skilled professionals in the field of construction have established an association which groups from around the country contact when they wish to have buildings of cultural value to their respective area repaired. Members of the association travel to the area in question and provide free advice on how the building can be patched up or repaired. Local firms usually supply the equipment required for the works, while local unemployed people carry out the work. It must be possible to be imaginative in creating work for people who are unemployed. Perhaps people who are unemployed and out of the habit of working could be used to do this type of work at little cost to the State. One expects those who are unemployed to be willing to work if employment can be found for them in their local area. I have thrown this proposal into the melting pot for consideration.

As unemployment rises, it is essential to get people back to work. The Government should do this by providing schemes and training in specific skills. Having rescued the banks, it should make greater efforts to assist those who are in the unfortunate position of having been made redundant.

A new report published on Monday last found that the number of companies collapsing — perhaps that is the wrong word to use — has increased by 90% this year in comparison with last year. I was stunned at the figures in the report. A total of 477 companies collapsed in the first nine months of this year compared to 256 in the same period last year. I accept, however, that an essential part of business is that not all companies will succeed.

The number of people on the live register is increasing at the fastest rate in the history of the State. Certain straightforward initiatives can help to address the unemployment problem. For instance, the Government should reconsider the requirement that people must wait six months before they become eligible to participate in a FÁS course. Many people learn in advance that they will be made redundant. If they were able to join a FÁS scheme on becoming unemployed, there would not be a gap between employment and training.

Other new schemes are worth noting. An additional 700 people are signing on at Kilbarrack social welfare office while a further 1,000 people are signing on in Coolock. In 2006, a jobs club was established by the Northside Partnership with sponsorship from FÁS. This club is a tangible example of an initiative which gets people back to work, providing training programmes to assist participants who are ready for work to develop the skills they possess or teach them new skills. These can then be used to find a job or suitable training course.

The number of employees being laid off in the construction trade, which has featured strongly in this debate, is a major problem. More construction companies have gone out of business this year than in all of 2007. Considering the state of disrepair of many schools — I understand 40,000 children are taught in prefabricated buildings — the Government should consider diverting construction employees to work on public projects such as school building in addition to the road building projects which form part of the national development plan. Many people need building services. Establishing a regulated building service provider to ensure cash payments are regulated and go through the books would provide increased tax revenue. Builders would also arrive for jobs on time, an unlikely scenario during the Celtic tiger era, and many of those losing their jobs in the construction industry would be re-employed.

We also need to press ahead with the roll-out of broadband services. Recently, the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, rejected data indicating that Ireland is at the bottom of the broadband penetration pile. However, the new European performance index contradicts the Minister's statements on broadband as it shows that Ireland is lagging far behind our European competitors. While one could ask where we will get the money to fund the roll-out of broadband, we must show imagination as we endeavour to overcome the challenge of unemployment.

I am pleased the Minister of State is present as I know he will give the issue of unemployment serious attention. From experience, I know he get things done if he gets to grip with an issue. I urge the Government to use imagination in addressing the problem of unemployment and to avoid talking us into a recession, as we have done much too easily.