Marc MacSharry (Fianna Fail)

ICTU issued a statement to the effect that it considers the adoption of its proposals of 2005 to be the ultimate form of flattery. Perhaps Fine Gael will raise that issue with ICTU.

Fianna Fáil acknowledges the substantial investment in electricity infrastructure made by the Government in recent years, including in renewable energies. No Administration in the history of the State has invested more than this one. In addition, a very substantial investment in infrastructure was made by the Government in upgrading water distribution, treatment works and networks. We express concern that the proposed investment under the Fine Gael plan will not necessarily yield a commercial return and would result in a potential depletion of the National Pensions Reserve Fund. This is a risk.

My party believes these proposals would result in the establishment of an additional six State companies. I take the point that some exist already but the document mentions a holding company as well as some existing and some new companies. I worry about that. I will not use words such as "quango" but we should look for consolidation and the bringing together of people, as do some of Fine Gael's other proposals in respect of Oireachtas reform. That area needs to be refined further.

As our amendment states, our position is to ask Government, having due regard to the economic and budgetary challenges facing Ireland, to continue to invest in those infrastructural priorities that will assist economic recovery, especially those that will contribute most to our competitiveness. Concerning human infrastructure I would like to see us increase investment in certain aspects of education as envisaged by the smart economy. Investment in entrepreneurship should be our approach to the entire educational system, from primary school to fourth-level education and industry.

I would also like to see further investment, for example, in Science Foundation Ireland, from which body, at a cost of approximately €180 million per year, we see a very substantial return. We might not read so much about this in the media but I was greatly encouraged at a recent briefing that some of the world's biggest companies, such as Glaxo Smith Kline, engage through Science Foundation Ireland.

Deputy Cannon mentioned renewable energy. In his constituency, IBM is heavily engaged with the Marine Research Institute off the coast of Galway with sensors in place that feed into IBM's technology. It is also trying to develop photonics as a method of communication for future telecoms. These enterprises all came about from awards made under the auspices of Science Foundation Ireland. I would like some of our investment budget to increase funding to such concerns. I do not know if this is possible but it is certainly the kind of investment we should prioritise, given the limited resources it is clear we will have. I would like us to focus on investing to the greatest extent possible in the aspects of our physical infrastructure that will contribute most to our competitiveness. I will say a little more about green energy presently. This would also encourage the National Pensions Reserve Fund which continues to manage its assets with a view to making the maximum contribution to the cost of future pension liabilities in a manner that will maintain the country's commitment to long-term fiscal stability.

Many of the proposals in the Fine Gael document replicate the Government's document on the smart economy, published in December, particularly with regard to investment in energy efficiency and new technology. We broadly welcome the publication of this proposal and of further proposals from Fine Gael or from other parties concerning ways in which we might tackle the biggest crisis faced by the world economy, including ours. The Government welcomes this document as an acknowledgement of its positive initiatives in these areas and looks forward to the publication of similar proposals by other Opposition parties. The Fianna Fáil position is that the Fine Gael proposal is not fully thought out in respect of large-scale borrowing.

An article in The Sunday Business Post claimed it was a good idea to have agencies separated from Government whose expenses, in that way, avoid appearing on the balance sheet. I am not an accountancy wizard but it seems to me that such is the approach that got the world into its current mess. The article claimed that no borrowing is made because it does not appear on the balance sheet but of course borrowing is taking place. That is a personal view.

The Government has invested significantly in infrastructural improvements in the area of green energy, as my colleague, Senator Terry Leyden, suggested today. Last week the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, announced that €50 million would be provided for the home energy savings scheme. The response has been phenomenal, with 94,000 calls to Sustainable Energy Ireland, which is very welcome. There is a call for even further contractors to register with Sustainable Energy Ireland and give, as the Minister said, a boost to their businesses. This is a very positive move which shows that green innovations in the smart economy are beginning to work.

EirGrid is proceeding on target with the east-west interconnector due for completion by 2012. ESB's strategic framework to 2020 will see a total capital investment of €22 billion by the company with 50% of the overall investment package geared towards investments in renewable energy. I refer to the issue of water which is contained in the Fine Gael proposals. Since 2000 a total of approximately €4.8 billion has been allocated to the provision of infrastructure, delivery of water and waste water services throughout every constituency and every corner of Ireland. The programme for Government includes a commitment to continue to invest in water infrastructure to ensure public water supplies comply with drinking water services and to ensure waste water discharges meet the highest international standards.

Subject to the fiscal and budgetary position, the Government remains committed to further infrastructural investment which would add to the productivity and capacity, support and maintain employment, increase competitiveness and contribute to our Kyoto commitments and President Obama's proposed follow-on from Kyoto.

I welcome the fact that positive proposals are coming and we must all redouble our efforts to come up with the most innovative and productive proposals to meet the great challenges facing us.