Deirdre Clune (Fine Gael)

I welcome the opportunity to speak on the jobs initiative and I am aware that small business is a subject close to the heart of the Minister of State. The initiative focuses on tangible areas where improvements can be measured, with an emphasis on the tourism sector. I welcome the reductions in VAT and employer's PRSI and the discussion over the reform of JLC and REA structures. The reduced VAT rate will be implemented from 1 July but I ask the Minister of State to be conscious of the need for the services and tourism sectors to pass the reduction on to consumers because there may be a temptation to absorb the savings among the numerous businesses that are experiencing difficulties in terms of their ability to bring in cash.

The value of tourism has been highlighted over the past two weeks. Initiatives such as the one we are currently discussing will facilitate employers in taking on additional employees and protect existing jobs, which is needed if we are to address the current unemployment rate of almost 15%.

I refer to the proposals for the construction sector. For every €1 million spent in this sector, it is estimated that between eight and 12 jobs will be created directly. This year the Government plans to spend €4.6 billion on capital projects. Investment in the retrofit scheme and the roads programme are tangible measures that will create employment. For every individual taken off the live register and placed in employment, the State saves €20,000, which is important, not to mention the social implications for the individual concerned and his or her family. These areas have been targeted in the initiative.

We will have a separate debate on the reform of the JLCs and registered employment agreements. The issue of Sunday pay needs to be addressed. Those who work on Sundays will not be targeted. They will still be protected by the Working Time Act 1997 which provides for premium pay on Sunday or time off in lieu. The national minimum wage has been restored to €8.65 a hour. There has been a great deal of hysteria about the proposed reforms, but they are important because the current terms and conditions are costing jobs in many sectors. Bars, restaurants and hotels are closed on Sundays because it is not viable to operate. I welcome these changes which I am sure we will debate again.

The jobs initiative refers to encouraging entrepreneurs and recognising they have a role to play and can contribute to economic recovery. They had not received the attention they deserved and the Minister for Finance and the Minister of State have stated they will focus on microfinance. SMEs encounter barriers in procurement which the Minister is committed to addressing.

I welcome the initiative and look forward to the implementation of its measures, many of which will be in place from 1 July. A short, sharp and targeted approach will provide the stimulus the economy needs.