Rónán Mullen (Independent)

Cuirim fáilte roimh an Aire Stáit. I welcome the introduction of the PRSI incentive scheme that exempts employers from their liability to pay their share of PRSI for certain employees for 12 months. It is open to employers who create new and additional jobs in 2010. Frankly, this is a no-brainer and my only criticism of the scheme, to echo Senator Burke's remarks, is that I cannot understand the reason the scheme was not announced two years ago when the economic crisis first hit.

I agree with those commentators who believe we have turned or are in the process of turning the economic corner. However, I must disagree fundamentally with anyone who might suggest there will be a rapid return to growth. It may be the case that there will be as many as 70,000 additional job losses this year. It has been reported today that 5,800 people have been added to the live register in June. The seasonally adjusted figure now stands at 452,882, a shocking figure, while the unemployment rate now stands at 13.4%. While hearing such depressing news, it is worth noting that the rate of increase in unemployment, that is, the level of increase, is lower than last year. However, the overall figure is still moving in the wrong direction. Moreover, various indicators show that although economic output is higher, this also must be put in context and one must be highly cautious

This year we have seen 652 firms go to the wall, of which 194 were construction firms, 83 were in the hospitality sector and 78 in the retail sector. Unfortunately, the only real growth industry is the insolvency industry. In this context, I urge Members to examine Insolvencyjournal.ie because it is both a source of useful statistics and a horrifying account of the broken dreams of far too many Irish entrepreneurs who have been annihilated in the economic downturn. Moreover, we are far from being out of this trend because international experience demonstrates that insolvencies and the associated job losses tend to take place at the end of a recession, rather than at the beginning.

As for the threat to jobs, there is massive overcapacity in a number of key industries. Hotels have been mentioned. There are simply too many hotels and golf courses for the size of the country. Even if everyone was to go on a permanent holiday, I greatly doubt whether we could fill all the hotel beds now available. Every developer thought it necessary to build a hotel solely for tax purposes and it now appears as though NAMA will be the biggest hotel owner in the country. This has massive employment implications. In addition, banks are not lending. Even if one has a business which is a going concern, banks are not lending but are hoarding cash to rebuild their balance sheets. Cash flow is the lifeblood of business, but credit is not flowing and Irish businesses are struggling as a result. If the Government is serious about getting people back to work, it must address this issue as a matter of urgency.

All Members should be wary of excessive enthusiasm in the cutting of Exchequer spending. Tough decisions are not always the best ones. Cutting Exchequer expenditure entails taking even more cash out of the economy and may not be the best course of action. Members will recall that it was Churchill who stated it was not the end, not even the beginning of the end but the end of the beginning. For the foreseeable future the Government has nothing to offer the people but blood, toil, tears and sweat, as we struggle to pay Anglo Irish Bank's enormous debts and balance the budget.

I ask Members to urge the Government to do something to ameliorate the plight of the self-employed who have lost their businesses and livelihoods. In the good times their taxes paid for our services and their energy created employment. Consequently, we should not abandon them now. Mar achoimre beag ar an méid atá ráite agam, is léir go bhfuil dúshlán romhainn. Níl deireadh na troda in ndán dúinn. Chun an fhírinne a rá, nílimid ach ag deireadh tús na troda. Ba chóir dúinn díriú isteach go háirithe orthu siúd a bhí féinfhostaithe, ach a bhfuil teipthe anois ar a gcuid gnóthaí agus atá ag fulaingt dá bharr. Nuair a bhí rudaí ag dul ar aghaidh go maith, d'íoc cáin na ndaoine féinfhostaithe as na seirbhísí a bhí á sholáthar againn. Leis an fuinnimh a bhí acu, chruthaigh said postanna nua. Agus muid in am an ghátar, ní chóir dúinn iad a fhágáil ar lár, nó dearmad a dhéanamh orthu.