Ivor Callely (Fianna Fail)

I am pleased to contribute to this Private Members' debate. I congratulate Fine Gael on tabling the motion before the House. Aspects of some of Fine Gael's proposals are very worthy. We are all aware that the country is facing huge challenges. We live in uncertain and anxious times. The national debt, which is spiralling out of control, is expected to reach more than €50 billion in 2009. It was €35 billion in 2008, but it is likely to double to over €70 billion next year. At a time when the global economic recession is taking a real grip, this country's economy is contracting. It is a serious situation. There has been a massive increase in unemployment in Ireland, especially as a result of the collapse of the construction industry, which has had serious consequences for associated industries. In other areas of industry, there have been widespread factory closures, job losses, pay cuts and reductions in working hours, so where are we? The economy is contracting, the national debt is growing, employment is declining and the global economic recession is taking a firm hold. Politicians, community leaders and the social partners need to display a unity of purpose during such an unprecedented set of circumstances if we are to defend our economy, stabilise the public finances, protect employment and explore new areas of employment opportunity, especially ones that would have a beneficial impact on the economy.

This country's scope for growth and development was outlined in the Framework for Sustainable Economic Renewal, which was launched by the Taoiseach in December of last year. The document in question, which is known as the "smart economy" document, sets out a number of priorities and actions that the Government will pursue in the short and medium terms. The Minister of State, Deputy Mansergh, has set out a number of additional measures this evening. Under its new leader, Deputy Cowen, the Fianna Fáil Party has a new approach to economic renewal. We are focusing on ensuring that Ireland becomes the world's leading location for the knowledge-based society, innovation and research and development. Fianna Fáil's policy approach involves new thinking, greater creativity, innovation and improved productivity. As a country, Ireland has enjoyed a good run in its short history. While we have had our ups and downs, especially over the past ten or 12 years, it has been up all the way under Fianna Fáil-led administrations.

Ireland has undergone a massive transformation in recent years, from a country with low wages, restricted products and limited markets to a high value, low tax structure with diverse markets and established trade links. Our well educated, entrepreneurial and determined population has an abundance of ability. There is no doubt that the next stage of this country's development will involve an equally big transformation. If we are to meet the challenges that are ahead as successfully as we met the challenges of the past, we will have to come up with new products and services. As I understand it, one of the key features of the smart economy document focuses on the need to develop the innovation and ideas component of the economy. We need to use the knowledge, skills and creativity of our people if we are to effectively translate ideas into valuable processes, products and services.

A great deal has been said this evening about green issues, such as renewable energy. The smart economy plan that was launched by the Taoiseach answers the call for a new green deal to stimulate and benefit the Irish economy. It will help to increase energy efficiency and reduce energy pollution and costs. I do not have time to go through the Fine Gael policy proposals in detail. It indicated cuts in the public sector, reduced earnings for people earning in excess of €100,000, a carbon windfall tax, tax on power companies, switching to generic drugs from branded products, reduced spending on decentralisation, a reduction in CIE's subvention, a reduction in various allocations to various State agencies etc.