Kathryn Reilly (Sinn Fein)

I echo the comments of other speakers. I welcome the Minister and also the establishment of the Ministry for small business. It is crucial. While I welcome the focus on improving job creation and job retention in this State, we cannot allow the illusion to be created that it will solve the unemployment crisis.

The jobs initiative was, in the words of the Taoiseach, Deputy Enda Kenny, a down payment on commitments made in the programme for Government, but it was obvious that the people of this State were short-changed. It is a far cry from the election promises of Fine Gael to create 100,000 jobs in five years, invest €7 billion in water services, infrastructure and energy, and provide 45,000 new employment and training places to target youth unemployment, which is an issue close to my heart. The same is true of the Labour Party proposal for a €500 million jobs fund, a strategic investment bank with €2 billion from the National Pensions Reserve Fund, or the provision of 60,000 training, education and work experience places. They are the promises on which the Government secured its so-called secure and stable mandate. They are the words of the Minister for Finance, Deputy Noonan.

In the programme for Government, those weighty commitments were downgraded to a jobs fund. The proposal has been diluted further and is now a revenue neutral jobs initiative. As other speakers indicated, the spending commitments are gone and the job targets and training places have been slashed. Making our economy more competitive and promoting economic growth will not be achieved by a short-term reduction in costs and wages. It is not a race to the bottom to attract low paid, low skilled and low value jobs. Competitiveness can only be achieved by investment in education, infrastructure, technology and research and development. That means capitalising on indigenous industries. I fully support the investment in the tourism industry but I am disappointed there has not been a similar interest in the agrifood industry given that it is a catalyst for future economic development.

Last week the Taoiseach identified that the greatest resource of our nation was the people. He was correct to say that it will be the people who will rebuild the economy, yet the policies of this Government and the previous Government, which cannot escape blame, are forcing our greatest asset - young people - to emigrate to Australia, America and New Zealand. We need investment proportionate to the scale of the economic crisis we face. Instead of investing in our economy to increase competitiveness, billions are being spent on failed banks and servicing unsustainable debt. The meagre €40 million of additional investment spent on the jobs initiative stands in stark contrast to the €200 million in senior unsecured bonds paid by the State-owned Anglo Irish Bank less than two weeks ago which will see investors who bought the bonds back in December earning 13% on them. So much for Albert Einstein's dictum, "Learn from yesterday, live for today, hope for tomorrow", which is espoused in the programme for Government. The Government is repeating the mistakes of the past and paying for the reckless gambling that went on.