John Gerard Hanafin (Fianna Fail)

I welcome the Minister of State, Deputy Billy Kelleher, to the House. There is no doubt that governing is akin to paddling a canoe. If one keeps paddling on either the right or left, one moves in circles, whereas if one paddles on both sides, one moves straight ahead. If the financial crisis of recent weeks has shown us anything, it is that State intervention, when necessary, is beneficial. This principle also applies when dealing with unemployment.

Yesterday, a welcome recognition was given to the benefit of Ireland's low corporation taxation regime in attracting industry. When one speaks of unemployment what one means is the period when one prepares people for employment. The budget featured other innovative, imaginative and progressive measures, including an increase in research and development tax credits and a remission in corporation tax and capital gains tax for new start-ups. At this difficult juncture, positive and immediate steps are being taken to promote employment.

Much has been said about the construction industry. The difficulties we are experiencing were the result of an over-dependence on this sector. However, a similar over-dependence has been evident throughout the world. In addition, the mis-selling of financial instruments has resulted in a serious correction.

Construction, which has benefited the economy, is still important and could expand in future. A number of solid Irish companies, for example, the Grafton Group, McInerney Holdings and Cement Roadstone, have a European and an international dimension. Increased Government expenditure on education and school building projects is another positive step which will improve education facilities and provide employment in the construction industry.

In another positive development, the Government increased mortgage interest relief for first-time buyers. It is important, given that the boom was created by the construction industry, to take positive steps in this area because construction is an important part of the economy which could still expand, especially in terms of exports.

I am conscious that many construction workers enjoy substantial earnings. I am informed, for example, that when asked about wages, a Dublin builder indicated he was paying €2,000 per week for skilled and semi-skilled labour. It is difficult for people to move from such a high level of income to being unemployed. That is a challenge for the Government. It is where community employment, training and education schemes come into focus. Community employment schemes are highly regarded. It is interesting that people who have had highly paid jobs seek to participate in these schemes from which they would get an income that is €38 above what they would receive in unemployment assistance. They seek to participate in them because they know the work involved is worth doing. It is highly visible and of benefit to the community.

I am conscious that it is difficult now for apprentices to get jobs. There is a role for FÁS in this respect. I ask the Minister of State to make it as easy as possible for people to participate in these schemes as soon as possible. Many of the reasons for the delay in allowing people to participate on these schemes relate to possible abuses of them. Perhaps he might reconsider this matter because these schemes are highly valued by people who are skilled and wish to contribute to their community.

It is expected that we will have a higher unemployment level this year, but there are measures that can be taken in that respect. Like any good player of a sport, we should be where the ball is going to be and not where it is at. It is interesting that even during the Great Depression there were areas of growth in the new technologies of electronics and in other areas that we now take for granted, but they were new at that time.

In the area of science, technology and innovation, I commend the Minister on the grants and increase given for that area. It is a recognition that it is a growth area. There are still possibilities for growth areas in the biotechnology sector and in ethical biotechnology in particular, which will have an important role to play in the development of genetic solutions to health and medical problems. There will also be growth in the services sector in the future and we need to prepare for those markets.

It is also possible to prepare in respect of energy efficiency areas. With regard to the construction sector, jobs can be created to ensure that houses are insulated to the highest possible standard. It is a benefit of the boom that we have a high standard of housing stock and a high standard of living.

A further area we should examine in terms of development is what are known as the BRIC countries, those of Brazil, Russia, India and China. These countries are expected to grow at a strong rate for the next ten to 15 years. There will be emerging markets that will present wonderful opportunities. We should focus our attention on expanding our markets in these countries.