Shane Ross (Independent)

There is no quick fix to this problem. One of the gloomy results of debates such as this is that people offer peripheral answers to a fundamental problem. Unemployment has spiked at a level that is quite uncontrollable. The Government, like everybody else, has been taken by surprise. The spike in unemployment cannot be solved by a short-term solution. In the 1980s, mentioned by Senator John Paul Phelan, we had an emigration outlet which we do not really have now. Therefore, we need far more imaginative solutions. Senators have been tackling the edges of today's debate by talking about small-term employment schemes. Everybody knows such schemes will not solve the problem — the unemployment of hundreds of thousands — that has suddenly popped up in a tragic way.

It is probably useful to look back at how the last unemployment crisis in the 1980s was resolved. It was not resolved by jobs strategy schemes such as the community employment programmes and other schemes mentioned. It was resolved in a twofold fashion. First, we have to admit that the take-off in the construction industry helped to solve the unemployment problem. We now regret our dependence on it, although if we had depended on it completely, we would be in an even worse employment situation than we are. Second, I do not think people like to admit that the arrival of the multinationals marked a fundamental change in the structure and planning of the economy. It had nothing to do with all these little schemes, FÁS or anything else mentioned. Donagh O'Malley went out on the plinth in 1966 to announce the introduction of free secondary education. It was a wonderful thing to do. It bore fruit in the 1980s and 1990s, when multinationals created whole industries here on foot of the reduction in the corporation tax rate to 12.5%. We should be mindful of this. It may not be very popular to say it, but if those guys go, we will be completely bunched. The twin pillars of the Celtic tiger in terms of employment were the construction industry which is now absolutely flat on its back and the multinationals which are still here — thank God — and providing a huge amount of jobs. Perhaps we should look to that historical event rather than local efforts, not to find a solution because this problem will not be solved overnight, but to devise a means of attacking unemployment in the long term. The possibility of reducing corporation tax further should be examined. The current rate of 12.5% will become uncompetitive if we are not careful. For this reason, we should consider reducing the rate further to create employment and attract more multinationals.

Senator John Paul Phelan raised the issue of FÁS. The tragedy of FÁS is that the high profile discoveries we have made have penetrated the whole organisation. Senator Phelan, like all politicians, prefaced his remarks on FÁS by noting the wonderful work it does. While I accept it does wonderful work in certain areas, there are real problems in the organisation, especially in its expenditure and budget. Many of us who have visited FÁS courses and buildings have noted that there are empty FÁS buildings throughout the country. What the hell is going on? Moreover, courses are being given without subsequent checks or follow-up and in some cases those providing training are not properly qualified to do so. These types of problems have emerged.

FÁS is sloppy and uncontrolled from top to bottom. If the problem extended only to travel, it would be possible to solve it but it extends to the courses the organisation provides. The absence of controls means educational standards are deficient. This is not adequate. The FÁS budget needs to be used properly and the organisation needs to train properly to meet the requirements of particular jobs.

I overlooked to welcome the Minister of State, Deputy Calleary, to the House. Let us put pressure on banks to provide more money to small businesses which are the creators of employment. The banks are not giving out money and do not intend to do so. There is no prospect that they will lend unless the Government, which virtually owns them, insists that they do so. If the Government adopted such an approach, it would create employment at this critical time.