Billy Kelleher (Cork North Central, Fianna Fail)

Labour unit costs have declined by 4% here and increased by 3% in the rest of Europe. Ireland is becoming more competitive in the European Union, in particular in the eurozone. Exports held up well in 2009 and the indications are that 2010 will also be positive. While we face major challenges, we must take all the opportunities available to us. Competitiveness is the key to resolving the difficulties we face.

It is vital to highlight the variables around the world which are causing difficulties for Ireland. Senators referred to cross-Border shopping. The increase of 0.5% in the VAT rate last year and excise rates were not the issue. The single most important reason for people travelling to the North to shop is the depreciation of sterling vis-À-vis the euro by 30%.