Paddy Burke (Fine Gael)

I welcome the Minister of State, Deputy Billy Kelleher. I thank the Green Party for providing us with the opportunity to say a few words on this topic. Unemployment represents a serious situation for the entire country as we see the number of people affected rising every week, albeit at a lower level now than was the case a number of months ago. It is still of concern to the country as we are heading towards 500,000 people on the unemployment register.

There are a number of areas which we could examine to generate employment. The Government should further examine the tourism and catering industries as significant jobs could be created in these areas. The VAT rate on food is particularly high and should be reduced. The 21.5% VAT rate should also be reduced and this would generate a certain amount of activity in the economy and kick-start it for people to generate jobs. We also have a concern with regard to the 50,000 to 60,000 graduates leaving college now with nowhere to go and no employment. Years ago, there was a safety valve in that they could go to England or the United States. At present, a significant number of students is going to Australia on a backpacker's visa but it seems to be the only safety valve for our people.

Much can be done in the tourism industry in particular. Deep-sea fishing has not been developed in this country. We have a significant number of small ports dotted around our coastline and we could have an industry to create and generate a significant number of jobs.

Quite recently, we saw the hotel industry drop its rates and this is due to pressure from the industry and to a lack of disposable income. We have also seen a reduction in golfing green fees throughout the country. The country could become more competitive but the tourist boards and the Government must get together to package the country as a destination for holidaying, not just for golfing but also for activities such as deep-sea fishing.

Walking represents another possibility. Northern Spain has particular walks where one can get on and off the trail. This could be developed around our coastline whereby one could get on the trail in Mayo, Donegal, Galway, Clare or anywhere on the coast. However, it needs to be pulled together. A former member of Mayo County Council, Paddy McGuinness, had a provision included in the estimates for Mayo County Council to provide funding for a development officer to develop walks in the county and it is working very well. A number of walks have been developed in the county.

Throughout Europe, the walking industry is a big growth area but if anything is being done in this country it is on a very small scale. We could develop that here. We have a great climate for walking as it is not too hot. One may get wet but when walkers are slogging it out the rain does not seem to play a big part for them. Services must be provided along such routes and we do not have them in place. We do not have catering facilities all around the coast and we do not have accommodation in some of the remote areas. The Government, with the tourist boards and local authorities, could develop this and it could be a real growth area. People could come here for golfing, walking and fishing, and a significant number of jobs could be delivered through this.

In the short term, the Government should examine the VAT rate. While the VAT rate on food does not seem very high at 13.5%, it accounts for 13.5% of every euro taken in by the catering industry and it must be considered with the high wages and all the other costs the catering industry has to pay, such as rates, water charges and refuse charges. On another occasion, we discussed the fact that the industry must pay out to 14 different agencies. This amounts to an enormous sum and at the heel of the hunt, it is why we are uncompetitive. We have too many costs. VAT is the direct responsibility of the Government and it could intervene and help promote and generate growth in the economy.