Lorraine Higgins (Labour)

I welcome the Minister of State, Deputy Perry, to the House. This is my maiden speech and before I make my statement on the jobs initiative may I state how honoured I am to have been selected as one of the Taoiseach's 11 nominees to the 24th Seanad? I am a native of Athenry, County Galway and have lived there all my life. I am delighted to be joined in Seanad Éireann by Senators Rónán Mullen and Michael Mullins. In my work as a barrister I have strived to achieve very high standards and I hope in this House my high standards will be retained and I will work hard on behalf of the people in Galway East and Ireland to give them the dedication they deserve.

I will now speak on the jobs initiative. As we are all aware, Ireland is experiencing a very challenging and turbulent economic time. However, in the programme for Government we have produced a very credible plan to restore the confidence and growth in our economy. Part of this plan is the recently announced jobs initiative and I welcome this development. However, it is but one step in the right direction to address all that has gone wrong in our economy in the past three years. We cannot beat this crisis overnight and the expectation that we will sort out in one fell swoop the unfortunate mess we inherited from the previous Fianna Fáil-led Government is foolhardy to say the least.

This is a sign of our intent in government and a move broadly welcomed throughout the country. In particular, I welcome the reduction of VAT to 9% for all businesses in the tourism industry. This measure will help increase turnover in the sector. This, coupled with the reduction in employer PRSI contributions, which will be available until 1 July 2013, will make it easier for employers in the sector to hire additional staff.

I also welcome the abolition of the travel tax. To have taxed people coming into the country in the first instance was ludicrous. We must recognise specific challenges as an island. Given the demise of our building sector, we are now reliant on tourism and we must facilitate the inward migration of tourists to the country. We need to keep open the businesses dependent on the sector and we need to keep their employees working. Its abolition is a positive move and along with a strategic marketing campaign abroad, it will open up Ireland to all of its core markets.

The only regret I have in this regard is that the initiative focuses solely on the three State airports with no reference whatsoever to Galway Airport, which is essential to my county's connectivity to the world. Galway is a county rich in history, geography, culture, facilities and infrastructure and can meet the needs of the thousands of tourists we are trying to attract. Notwithstanding the recent decision to stop the airport's funding at the end of the year, I want to know whether Galway Airport will be given a share of Tourism Ireland's marketing budget.

It must be recognised that the jobs initiative is just a beginning. More is needed to provide more jobs and maintain those close to the brink. We must look at new ways of financing businesses to assist this process. One in every two companies is in trouble and at risk of not being able to meet its daily financial and trading obligations. We need to address this immediately where businesses cannot acquire funds from their banks, very often experiencing an abrupt reduction of their overdraft facilities.

We also need to address the rates issue. Recently, I met a man in Galway who bought a pub five years ago. He demolished and rebuilt it in the expectation he was adding value to his property. However, his property was rerated and he now pays €15,000 per annum on rates. Next door to this enterprise is a similar business engaged in similar activity. Its owner pays €2,000 per annum in rates. How can we say this is fair? We need to get more equilibrium in the rating system in Ireland. If the rates bill was not hanging over this man's head he might provide an opportunity for people in the community to be employed. One should not underestimate the effect that creating one job can have on a small community.

Owing to the weak economic position in which the country finds itself, we do not have sufficient resources to fund large-scale policy initiatives to generate significant economic activity. Consequently, the jobs initiative will be budget neutral until 2014. What is significant about the measures that have been announced is that they demonstrate that the Government has ambition to move the country forward. They also show the world that we have an objective and, more important, a plan to achieve it. The initiative will help to facilitate the return to work of some of those who are unemployed. It will create confidence among the occupants of households as well as domestic companies and potential investors abroad.