Mark Dearey (Green Party)

A job is a very precious thing. It underpins people's lives and provides a bedrock for family stability. It generates a sense of self esteem for the person holding the job and it creates wealth and spending power in the local economy. All of these features are significant pluses in any individual's life. I say as much to underscore my understanding of how important jobs are. Senator Buttimer should note that we care about preserving jobs on this side of the House. It is our first task, followed by creating new jobs and this is where the economy is poised to start to deliver.

I thank Senator Buttimer for his kind comments on my situation and he is correct in this regard. I am a small employer and there is no question but that it has been difficult to hold on to staff with reducing revenues and shorter hours. People have had to go on short time, not full unemployment. If we are to be honest, that distinction must be made. We are not only discussing the employed and unemployed in all cases, varying shades in between arise as well. I do not make little of anyone who is suffering because of short time employment but for some people it is a choice they are pleased to make and take. A combination of work and welfare works for some people. The figures do not tell the whole story. To summarise, these points refer to what jobs really do and to how they have been affected by the recession.

One key impact of a recession is the reduction in the amount of money in the economy, the confidence of people to spend it and, therefore, the number of people needed to provide goods and services in that economy. These are the underlying principles which a recession erodes and they affect job numbers. The corollary is that in recovery confidence begins to return, credit begins to flow and more people are needed to provide the goods and services called for within the economy.

Despite some of the assertions made on the other side of the House to the effect that no attempt is being made to restore jobs in the economy, the underlying assumption behind everything being done is that the grand prize will be job creation. There may be glowing tributes from abroad and statistics which show that from today we are officially out of recession. These are welcome indicators but that is all they amount to. The real satisfaction and joy for any Government will be derived from unemployment numbers coming down rapidly. This will happen eventually if the conditions that allow competitiveness to return to the economy materialise. Figures released recently from the EUROSTAT agency indicate we are not there yet. Ultimately, measures that allow competitiveness to return will pave the way for jobs to be created.

I acknowledge that the Celtic tiger economy was unsustainable, including the 240,000 construction jobs it provided. It was inevitable that when the credit boom went bust, jobs would follow suit. This was neither sustainable nor wise but the job of this Government has been to address that reality and to begin to put right the inherent instability of that economic model. Although it provided good times for a decade or more, it led to an acutely severe bust and recession. We were first into recession and only now are we coming out of it. To say this Government is not focussed on jobs is simply untrue. The ultimate prize will be when our people are employed again and when people return to Ireland, I hope, sooner rather than later.

I refer to the specific measure that employer's PRSI should be waived for every job created in 2010. This applies to an employer which employs someone who has been unemployed for six months or more and it is decidedly welcome. There is almost a philosophical case to put that an employer should not be penalised for taking on someone at the moment. This is the principle which the motion acknowledges. There should be no penalty in this regard. Although PRSI has been a valuable and in some respects a targeted source of income for many years, it has also acted as a disincentive to employers to take on an extra person. A given employer may make do with the staff in place and stretch them further rather than consider taking on an extra individual or individuals to provide the services a company needs.

This measure is to be welcomed. It is estimated that it will save approximately €3,000 for an employer per employee in a year, which is not to be sniffed at. It is remarkably difficult to try to generate €3,000 through increased revenues in the current climate. I welcome the specific measure but it also contains recognition that in the longer term, employment must be encouraged job by job and employer by employer. To some extent, employer PRSI has acted as a barrier to employment and this must be addressed in a long-term way. This approach must be embedded in our employment philosophy. There are other ways in which revenues for social insurance can be generated which would not necessarily act as an impediment and I am keen to see the possibilities explored in more detail in future. I welcome the measure. It holds out long-term prospects.

I refer to the assertion that the Government has finally woken up to the Fine Gael idea on the PRSI proposal. One thing that struck me about the NewERA document was the number of ideas in it which are already being enacted. These do not necessarily relate to job creation but to strategic energy supply, broadband infrastructure and so on. Many of the ideas in the NewERA document are already in action, although perhaps not in the aspirational way in which Fine Gael presents its case. However, I would rather an ounce of reality than an kilo of aspiration. There is too much aspiration in the NewERA document and it is not grounded enough.

The wholesale bank proposed in the document would compete against the Exchequer for funds on international markets and, in all likelihood, would drive up the cost of borrowing to the State. This, in turn, could mean higher taxes and less money for vital public services. The proposed bank would also compete against existing banks and could reduce the availability of credit to small businesses, as opposed to increasing it. That might seem slightly tortuous but we need to consider this potential scenario when we debate a new entrant to the wholesale banking market.