John Paul Phelan (Fine Gael)

I have not had an opportunity to speak on any of the financial matters raised in recent weeks. While I might disagree with the Minister politically, I commend him for his performance. He is doing his best in difficult circumstances, for which I thank him on a personal level. I agree with much of what he said about the Bill. He referred to the continued significant investment in road infrastructure. One of the lasting benefits of the years of the Celtic tiger is that we have a national road network which is comparable to that in any other EU member state. I welcome the Minister's commitment to invest further in water services. Water is a costly commodity, yet almost half of the water produced escapes into the ground. That is unsustainable. I also welcome the Minister's acknowledgement of the need to invest heavily in schools building projects. He is correct that better value for money can be achieved, alongside their potential to stimulate employment creation.

I take a different view from the Minister on other issues. He has suggested most economists expect the economy to expand next year. However, a significant number of analysts do not expect such a recovery. The Government's projections are based on a growth figure which a number of respected economists doubt we can achieve. I agree with the Minister, however, that the improvement in our export position has resulted in an unexpected bonus for the Exchequer, but it is inaccurate to imply that most analysts expect the economy to expand next year.

While there are signs labour market conditions are beginning to stabilise, I disagree that the falling unemployment rate is encouraging. In my part of the world the rate is falling because people are leaving Ireland. Looking through my telephone directory, I was shocked to see the number of my friends who had moved to London, Melbourne or Canada to ensure their economic survival. The encouragement which the Minister claims to derive from the slight reduction in unemployment levels is false because we are losing many of our best and brightest. That is the biggest indictment of 13 years of Fianna Fáil-led Governments. We never thought so many would again be forced to emigrate for economic reasons.

I concur with the Minister on the need to maintain capital spending on schools. However, we appear to have missed the OECD report on falling education standards. Whoever is Minister for Education and Skills next year, he or she will face a major task in reversing the rapid decline in standards. Our educated workforce is crucial in getting out of our economic difficulties.

I welcome the Minister's comments on tourism infrastructure. Tourism and agriculture are two sectors in which we do well and investment in them is the key to restoring growth. I was disappointed, however, that the Minister did not completely scrap the travel tax which I accept is now an old chestnut. If the Government had bitten the bullet, it would have been in a stronger position to call on chief executives of the various airlines to meet their commitments. A €3 tax will not bring in substantial revenue, but it is being used as an excuse by certain individuals in attracting tourists.

The Minister's claim that the overall level of capital expenditure is higher than it was in the five-year period to 2009 is an example of how statistics can be used to prove anything. We all know the level of capital expenditure is down, even if it is higher as a proportion of GNP.