Pat O'Neill (Fine Gael)

The Minister is very welcome to the House. I am delighted to welcome the Government's jobs initiative. I remind Senator Reilly that we are giving hope through this jobs initiative. It must be remembered that out of the little acorn grows the mighty oak, and this is only the start of getting this country back to work.

Senator Power spoke about rates. During my time on Kilkenny County Council we did a survey on rates. Rates is an issue with small businesses but 80% of businesses in Kilkenny were paying rates of less than €3,000 per year. If that was reduced by even 10% it is only €300 per year.

The biggest charge facing small businesses, and I hope the Minister will examine it, is water in and water out charges. With the rollout of water metering to every house within the next two years we may be able to bring down the price of water because water is a finite resource. It costs money to treat it but if every house is paying, business may be charged less.

This initiative is the central plank of the Government programme and it has delivered on its promise despite the huge challenges and pressures it is facing. I commend the Government, in particular the Minister centrally involved in this important programme.

Leaving aside the excellent content of the jobs initiative, the fact that this Government has hit the ground running and prioritised creating employment opportunities will help to restore confidence. What we were used to in this country prior to the election was a Government looking bewildered as the economy spiralled downwards. What the Taoiseach, Deputy Enda Kenny, and his team of Ministers have delivered since taking office is a competence and sense of purpose that was tellingly lacking in the past.

The jobs initiative is multifaceted. For example, in providing €30 million for school works this summer the Government is not only addressing the need to provide work for those involved in the construction sector and related areas, including traders and suppliers, but also recognising that during the boom the previous Government failed to address the infrastructure and repair of many schools. That is an example of joined-up thinking that was sadly lacking under the previous Fianna Fáil led Administrations.

The Government has estimated that the capital works scheme for schools that is part of this jobs initiative will create approximately 2,400 jobs and 480 indirect jobs. We can all recognise that it is rare for a Government measure to have the capacity to create such a volume of jobs directly, and I very much welcome that measure.

The jobs initiative will provide €60 million for regional roads. Like many of my colleagues here, I spent the weeks before the Seanad election travelling the highways and byways of Ireland. In total I travelled approximately 10,000 kilometres and therefore it is with a degree of knowledge when I say that the Government is being far-sighted in providing an additional €60 million for regional roads. The roads scheme is expected to create 1,000 badly needed jobs which will play a vital role in stemming the tide of emigration as well as helping to restore confidence in communities, thereby kick-starting local economies. That is joined-up thinking in government in choosing those areas to target.

I welcome the decision to reduce the air travel tax to zero. The introduction of the travel tax was short sighted. It did more harm than good and failed to deliver on its intended purpose. Again, in choosing to reduce the travel tax to zero rather than removing it from the Statute Book, the Government is showing a foresight that previous Governments lacked. The Minister, Deputy Noonan, has stated that the reduction of the travel tax to zero is aimed at incentivising airlines to open new routes and boost passenger numbers. If airlines fail to do that, the tax will be reinstated following a review at the end of 2012. The Minister, Deputy Noonan, is showing clearly his expertise and competence in this regard in the way he is choosing to deal with the travel tax.

Similarly, the decision to cut the lower rate of VAT from 13.5% to 9% on a range of tourism related goods and services until the end of 2013 is a clearly thought out and targeted measure. This VAT cut will apply to restaurants, catering services, hotel and holiday accommodation and various entertainment services such as admission to cinemas, theatres, museums, fairgrounds, amusement parks and the use of sporting facilities. In addition, hairdressing and printed matter such as brochures, maps, programmes and newspapers will apply at this new rate.

We are all familiar with the plight of restaurants and hotels in particular which are struggling to cope with the changed economic environment. This new VAT measure will not only entice foreign tourists into the country but also encourage Irish people to make the best of the many fine hotels this country can offer. Encouraging people to holiday at home is important in the context of keeping money in the country and the VAT reduction will contribute towards those efforts. I am aware that the Minister for Transport, Tourism and Sport has been vocal in pointing out the advantages for Irish people of holidaying in Ireland. It is a pity the Government cannot control the weather.

Coming from Kilkenny I am aware that a reduction in the travel tax will benefit my native county which, although it is popular with tourists, still does not receive the recognition it deserves. County Kilkenny has many important historical monuments and buildings, particularly from the Norman period. Our most recent discovery of a hidden gem is the fact that Barack Obama's uncle five times removed is buried in St. Canice's Cathedral. John Kearney is a former Bishop of Ossory, and I am hopeful that the President's recent visit may entice American tourists to Kilkenny.

It is not just the Americans who may be interested in tracing President Obama's roots. It is hoped that a new short-term visa waiver programme will encourage tourists who may not have traditionally visited Ireland to come here. The visa waiver programme applies to 14 nationalities who ordinarily require a visa to enter the State.

Coming from a small village in County Kilkenny I have been struck by the plight of young people, many of whom cannot find work and believe they have no option but to emigrate. Accordingly, I am very pleased to welcome the 20,900 places the Government is making available for training, education and upskilling under a range of schemes. There will be a national internship, with 5,000 places, which will create work placement for a six to nine months period and provide €50 per week in addition to social welfare entitlement. Significantly, this scheme will operate in private, public and voluntary sectors. Almost 6,000 places are to be created at level 6 of the national framework for qualifications. This measure will target sectors with significant unemployment and will begin this autumn. It is clear that much thought has gone into all these measures. The back to education initiative mentioned by the Leader will be extended to provide 3,000 places targeted at adults who did not have a second level education.

Credit facilities were mentioned. One of the industries helping this country to fight back is agriculture, and we must make sure that the credit facilities are passed on to the agricultural sector as well.