Maurice Cummins (Fine Gael)

Senator MacSharry referred at the end of his speech to being positive but earlier he mentioned entering a great depression. In the Great Depression in the United States, 25% of people were unemployed. Is he suggesting that this is what the people of Ireland can expect from this Government's policies? It does not give much hope to people.

I commend the motion so ably proposed and seconded by my colleagues, Senators Phelan and Donohoe. It concerns a subject that many people will face and are already facing, namely unemployment. It is a dreadful indictment of this Government that, in just 18 months, it has managed to double the level of unemployment and double our national debt. This is the legacy of the Government, which lacks leadership, courage and the necessary vision to guide the ship of state out of the stormy waters in which it finds itself. Without the leadership of a good captain and first mate the ship of state is rudderless and at risk of foundering on the rocks.

The lack of confidence in the Government's stewardship is adding to the already chronic unemployment rate. It seems to have no plan, no course to chart to give hope to employers, small businesses and workers. My colleagues have outlined several measures that could help address the problems we have. These include exempting employers from paying PRSI on any additional staff they take on in 2009; overhauling FÁS to provide better quality and quantity of training and expanding the business-led Skillnets programme; reducing the regulatory burden on small and medium-sized enterprises by introducing a standards cost model approach to regulation and reforming the regulatory impact assessment model to genuinely assess the impact of new legislation on business; to extend and reform the back to education allowance; to restore our national competitiveness by freezing increases in utility costs and Government charges; using the downturn in the construction industry as an opportunity to invest in our national infrastructure; developing next generation broadband access for business and educational facilities; and reversing the increases in VAT.

Another area that must be addressed is enterprise boards. A number of items are inhibiting enterprise boards in assisting the start-up of micro-enterprises and those who have lost or will lose their jobs due to the current economic downturn. The County and City Enterprise Boards network submitted a financial instruments report to the Tánaiste in December. It outlined changes in the financial instruments that will make enterprise boards much more relevant to micro-businesses, bearing in mind that the current instruments were devised in 1993. The report also highlights the necessity of offering soft loans to small businesses starved of cash owing to the recession and current bank loan policies.

Since 2000 the enterprise boards may only grant aid manufacturing, internationally traded services and those with the potential to become internationally-traded services. This was apt for the buoyant economy we had at that time but the current economic climate has totally changed, with many people being made redundant. For those interested in setting up a small business who do not comply with these criteria, the enterprise boards are unable to offer grant aid to get jobs started. The policy does not make sense. A jobseeker will be paid approximately €10,500 per annum compared with a maximum employment grant of €7,500.

This must be changed and it will involve no extra cost to the Exchequer. The enterprise boards need to be given the flexibility to respond to local situations. They are comprised of a wide spectrum of locals who are committed and have their fingers on the pulse of what is needed locally. As a former member of the Waterford City Enterprise Board, I can testify to the significant contribution enterprise boards have made to local developments. I appeal to the Minister of State to ask the Tánaiste to act urgently on the report submitted by the County and City Enterprise Boards network. Failure to act will prevent people from gaining employment or creating employment when it is so badly needed.

It is unbelievable that the Government has set out no strategy to deal with the massive increase in joblessness. The news since the turn of the year continues to be bleak, with more than 750 job losses announced this week by Ulster Bank. In the constituency in which I live, 35 job losses were announced by Glanbia.

Fine Gael proposed waiving PRSI payments in 2009 for companies taking on new employees. I referred to the tax breaks proposed for research and development and training. Competition and competitiveness are the keys to creating employment. Our proposals go some way and show a marked contrast to the lack of vision of the Government. As mentioned by Senator John Paul Phelan, it is sad to see so many young educated people being forced to emigrate. We are returning to the bad old days when we exporting our young people. Many villages have seen them emigrating to find employment. It is a damning indictment of the Government that after 18 months in office it has seen a doubling of unemployment and the national debt. What a legacy.