Donie Cassidy (Fianna Fail)

I welcome the Government's initiative in introducing a four year national recovery plan. Those of us who have been in the House a long time remember what happened in the 1980s when the situation was even more difficult. Some 900,000 people were unemployed compared with a figure of more than 1.7 million in employment today. According to the Minister, our exports have grown by 6% this year in what has been one of the most difficult trading years globally. There is, therefore, a considerable number of positives on which we must work.

I compliment and agree with Senator Coghlan who stated we must have a functioning banking system. This poses a difficulty because the public sector accounts for 20% of those in employment; the private sector, including small and medium-sized enterprises, is responsible for 80%. I am anxious to make that point as I would like to see further Government initiatives to promote economic growth and job creation.

I welcome the announcement made by the Minister for Tourism, Culture and Sport, Deputy Hanafin, on the €44 million to be invested in tourism next year. As we all know, more than 300,000 people work in that sector, nearly as many as those who work in the public service. The Minister stated she would work hard to ensure tourists from everywhere would be helped to access visas and so forth. Some of us have had the opportunity to visit China, India, Abu Dhabi, Dubai and so on. They are all places with substantial wealth, large populations and considerable potential to assist our tourism sector.

In recent budgets and the four year plan the removal of tax incentives, particularly for the hotel sector in which I have a vested interest, has proved difficult, given the package the Government offered ten years ago to prompt people to invest in the industry. The Government is now rewriting the rules. It is almost as if it is retrospectively removing the undertakings given at the time. This makes it difficult for employers, investors, innovators and entrepreneurs to further invest in the tourism business. The National Asset Management Agency has mentioned that it will have a large number of hotels on its books because of the factors I have cited. There should be an note of caution in the sector which has considerable potential in terms of job creation and maintenance.

Senator Cannon referred to a television show he watched last night. I could be wrong, but the figures quoted might not be correct. There might have been some double counting. Since a significant element of any package agreed with the IMF and the European Union would be sovereign debt, there has been significant double counting and as such, the figures should be checked. The Minister for Finance has referred to the facility as being firepower for the banks. If the economy becomes buoyant again, some of the money might not need to be drawn down. The figure for the sum needed for recapitalisation of the banks, to raise the capital ratio from 8% to 12%, is speculative. As we know, because of the money invested in the economy, particularly in the retail trade as we near Christmas, short-term loans can often be turned around twice in a single year if the loans are taken out for four-month or six-month periods. There could be double counting in this respect also. A figure of €300 billion has been cited, but I understood the Department's working estimate was approximately €150 billion or €160 billion. While that is a large amount, it is manageable compared with a figure of €300 billion.

I am happy that the 12.5% corporation tax rate has been retained. Thanks to Donogh O'Malley's decision, the education system has helped to transform the country in the past 50 years. Likewise, the corporation tax rate has given our island nation an opportunity. Some 90% of everything manufactured on the island is exported. I congratulate the Government and everyone involved in the negotiating team for retaining the 12.5% rate.

I agree with Senator Butler on the urgent need to develop the energy sector, be it wind power or wave power. We must eliminate the €60 billion paid out over ten years on oil imports. We could become a significant exporter; the excess energy supply generated on the island could be used to create a considerable revenue stream for the Exchequer every year.

I look forward to more debates on the urgent and pressing challenges facing the people and the Government. I support every initiative the Government is trying to take and thank the Opposition for its support in seeking to reduce the debt ratio to 3% of GDP by 2014.