Feargal Quinn (Independent) | Oireachtas source

I welcome the Minister of State and, in general, the speech is welcome as well because it contained positive news. It is fair to say that some developments have been very worthwhile. I disagree entirely with Senator Michael D'Arcy, who said that people need certainty while indicating that we should play with corporation tax. If we are to give investors certainty, we must make it very clear that the 12.5% corporation tax rate will stay and that we will not fiddle with it.

IBEC's new report indicates that 2012 will likely be the last year of falling employment because cuts to the public sector numbers are receding and the rate of decline in the domestic economy is slowing. However, since 2010, budgetary measures have added ¤660 million per annum to the labour costs of Irish employers, and we must consider reducing those costs. In the World Bank's ranking of ease of doing business, which was published recently, Ireland fell from 10th to 15th; Singapore remains in first place, as it takes just three days and three procedures to start a business there. New Zealand is approximately our size and it is even better in some areas, as it takes just one day and one procedure to start a new business. Why should we not aim to cut red tape, as it still takes ten days and four procedures to start a business in Ireland? We should make it even easier to attract investment and do business in the country as it would be some help to the economy. There are steps we can take in that direction.

We still have closed minds in many areas that could grow the economy. Why are we not debating the possibility of extracting shale gas through fracking, for example? I know there are some who are afraid to touch the subject but it would be worthwhile. By approximately 2020, the United States is projected to become the world's largest global oil producer, overtaking Saudi Arabia. The result will be a continued fall in US oil imports, currently at 20% of its needs, to the extent that North America will become a net exporter of oil. It is worthwhile considering the matter.

IBEC has indicated there is still a skills gap in Ireland and we can do much in that area. The financial services and ICT sectors need many extra skills, for example. Some estimates have more than 2,500 urgent vacancies and approximately 5,000 current job vacancies across the entire web and Internet sector in Ireland. Some of the key areas of shortage include web and mobile developers and designers, as well as project managers for application development. The Minister for Education and Skills should consider teaching web coding to schoolchildren. That may seem excessive when we have difficulty teaching them French, German or some other language but there are vacancies that can be filled if we only teach the required skills.

The Government is examining pensions and the last time I spoke about releasing a portion of the pensions to stimulate the economy, the Minister for Public Expenditure and Reform, Deputy Howlin, said he understood the case made and "thought would have to be given to whether such an exercise would result in the diminution of people's capacity to pay their own way and not be a burden on the State". I would like to open the debate. People in great need due to mortgage or credit card debt could get some money now to help them survive. People need cashflow now and we can go a long way working on that. South Africa offers access to pension savings, and research by a consultancy, Alexander Forbes International, indicated that 70% of members there take their benefits in cash before retirement. It is also believed that allowing people early access to a portion of their pension offers encouragement to sign up to a pension scheme.

Australia's pension scheme requires compulsory enrolment but members are allowed to take all the benefit as a lump sum at 55. A similar measure would help many people who may be three months in arrears on a mortgage or have ¤1,000 in credit card debt. Any remaining money would go back into the economy. There is an estimated ¤100 billion in Irish savings in pension funds, 90% of which are outside the country. Money would flow back here if the Government allowed my proposal.

Senator Barrett will speak later and he recently mentioned how Denmark issues mortgages. That country is also progressive in its treatment of pensions, having introduced a pension release initiative in 2009, with higher than anticipated take-up because householders opted to dip into pension savings in order to offset the worst effects of the economic crisis. I hope the Senator touches on the issue, which was regarded as an effective response to very difficult economic circumstances. When this was carried out in Denmark, 94% of the people with such funds chose to access them, resulting in a stimulus of 1.4% of GDP and an Exchequer windfall of something like ¤2 billion.

There is much we can do. The six minute speaking time limit may be forcing us to squeeze in some of the thoughts reaching uppermost in our minds.