Ivor Callely (Fianna Fail)

This would be of benefit to both the Civil Service and its customers as the Departments could draw from a pool of labour responding to need. It also should have a positive financial benefit for the Department in respect of overtime, travel costs, etc. and the customer or client should be dealt with more speedily. Consequently, benefit would accrue to both the service provider and its customer.

We need to keep Ireland working and must ensure there is a positive environment for business to establish, grow and expand in national and, more importantly, international markets. I welcome the retention of the corporation tax rate of 12.5% which sends a strong signal to international investors that Ireland is and will continue to be an attractive investment location. The retention of this rate tells international investors that Ireland is an ideal location to grow or develop a business. We must now capitalise on this by sending this message all over the world. I wish to put forward a specific proposal on this point. I propose that we identify the target countries we wish to attract, set targets we want to achieve and pull together a sales and marketing team comprising the best sales and marketing gurus, together with the IDA, Enterprise Ireland and the relevant ambassador, which would report directly to the Tánaiste and Minister for Enterprise, Trade and Employment on progress and success.

The announcement by the Minister that there will be a scheme of tax relief for the acquisition of intangible assets, including intellectual property, is most welcome as a means of supporting the smart economy. We have an opportunity to use tax policy as an important lever to acquire intellectual property and subsequently benefit from the income arising from such. Current reliefs for investment in intangible assets have been criticised as being somewhat unco-ordinated. We now have an opportunity to bring together all such reliefs into a comprehensive package. This initiative also must be accelerated in order that Ireland can develop as a knowledge-based and wealth-driven economy.

I seek a major co-ordinated effort from all our development agencies to sell the message that Ireland is the place to locate or develop highly skilled jobs. This applies equally to inward investment opportunities and to our home-grown firms. Under present circumstances, specific initiatives should be brought forward by the IDA and Enterprise Ireland together with the county enterprise boards. For example, local management in foreign-owned enterprises must be given every support in their efforts to attract and win further investment from their parent company in competition with, in many cases, their sister companies.

I believe there is a need to be more supportive of businesses in the manufacturing and internationally traded services sector. While supports are in place at present, we must provide additional funds and accelerate existing programmes. Funds to be provided should be focused on job creation as well as job retention within the conditions of the EU. The loss of jobs in SR Technics in north Dublin is a tragedy. The Minister yesterday said that each 1,000 jobs lost broadly costs €21 million or €21,000 per person. Therefore, does it not make sound economic sense to spend money on saving jobs?

The enterprise stabilisation fund to be administered by Enterprise Ireland will have a total budget of €100 million over two years, with €50 million being provided in 2009 and a further €50 million to follow in 2010. Approval will be based on business plans submitted to the agency by applicant companies and particular attention will be paid to small and medium-sized enterprises engaged in exporting. I understand that assistance will be available to companies that were not in difficulty on 1 July 2008 but which now may be facing difficulties as a result of the global and financial economic crisis. They must be judged by Enterprise Ireland to have sound, robust and sustainable business models and plans that are financially viable in the medium term and capable of significant growth in a global upturn. In the context of the unemployment level, €50 million in 2009 seems inadequate and I hope the Minister has room to increase this, if necessary. The process also must be carried out on an accelerated basis and I hope that efforts to save the jobs in SR Technics would be able to draw on this fund.

As for what else must to be done, the supplementary budget must do more to provide an incentive to businesses to take on employees. I believe there is a strong and compelling need for a fiscal incentive to employers in manufacturing and international services to increase their employment levels over a target level of, for instance, 1 January 2009. Given that so many are unemployed, I suggest a tax allowance for home improvements to principal private residences should be considered. This would provide an incentive for home owners to invest in their properties using tax registered tradesmen.

I also believe it is time to reconsider the minimum wage legislation and to consider specifically whether it is leading to a grey employment market and whether it acts as a disincentive to employment.