Michael Mullins (Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy Simon Harris, and very much welcome the opportunity to discuss the spring statement. As Senator Sean D. Barrett said, there has been a very positive reaction to it from very eminent commentators. I regard the document as a revised and updated roadmap to guide the country safely along the bumpy road to economic recovery in a way that will enhance the lives of all citizens. We all know where we came from and how we got to our current stage of progress. In 2011 the Government was given a mandate by the people to repair the economy and the public finances, to create jobs and give some hope and confidence to the people. The country was in freefall; our sovereignty was compromised and our international reputation was in tatters. Difficult and painful decisions were taken and huge sacrifices made by the people to get the public finances under control. The Government worked hard to repair our reputation abroad and gradually confidence grew in our ability to manage our own affairs. This led many significant international companies to decide to invest here, resulting in the creation of many badly needed jobs.

Government policies in the past four years have worked well and the economic recovery is taking a firm hold. Some 95,000 jobs have been created since 2012 and there has been a reduction in the number unemployed for nine successive quarters since 2012. The economy is growing at the fastest rate in Europe, with a growth rate of 4% projected in 2015, having reached 4.8% in 2014. All jobs lost during the recession will be replaced by 2018. By 2020, 200,000 jobs will have been added to the 2015 figure. Fewer people are emigrating and some people are beginning to return as circumstances improve. We need them back. We are beginning to develop skills shortages, particularly in the trades. I hope there will be a significant increase in the construction sector. We will need some tradespersons to return to the country and we are beginning to see this happen.

The public finances are under control, with the deficit falling below 3% this year. Our debt levels will reflect European levels in the next few years, as the Minister of State said. We must ensure the mistakes of the past will never be repeated. It is the responsibility of the Government to build on the recovery in a prudent, focused manner. Economic recovery provides the platform on which increased job creation, increased economic growth, better services and living conditions can be delivered. Additional resources that become available must be targeted at those who suffered most during the downturn.

It is welcome that the projected €1.5 billion in leverage that the Minister for Finance will have in the next budget will be split 50:50. Some 50% will be used to deliver tax and universal social charge, USC, reductions for low and middle income earners, while the remainder will be targeted at the reversal of cuts to public services. Some 330,000 people have been taken out of the USC category by the Government since it took office. It is envisaged that 90,000 more will be taken out of this category in the next budget. The USC rate will be cut to 7% for those earning less than €70,000. This will be the next step towards the eventual dismantlement of the hated charge which was an emergency measure introduced by the previous Government. It was critical at the time, but we all aspire to having it dismantled in as short a time as possible.

It is critical that we ensure it pays to work. Employment is the surest way of lifting families and individuals out of poverty. Not alone does it take individuals and families out of poverty; it also improves their self-esteem and physical and mental health.

When the Government is reversing cuts to public services, I want to see children and adults with disabilities at the top of the priority list. It is shameful that the most vulnerable must fight for recognition and resources. Although there are many good causes, the disabled, including children, must be targeted for special consideration as resources become available. Special attention must also be paid to respite care services.

The Minister for Finance, Deputy Michael Noonan; the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, and the other members of the Government have done an amazing job in stabilising the public finances and getting the ship of State back on an even keel. However, there is still much to be done. Job creation is to remain at top of the agenda. The recovery is slowly moving to the regions. I certainly hope the regional strategy being developed by IDA Ireland and Enterprise Ireland will have a huge impact. However, small businesses are struggling and we need to support them as resources become available. The provision of high speed broadband in rural areas is a key concern.

Rates which have been referred to by previous speakers must be addressed, with business costs, bank charges and the availability of finance.These are issues that impact on every small business. I note the issue of the self-employed. We saw many of these people who took a risk during the boom time, including small developers, builders and subcontractors. Later, when they found themselves out of work, their employees could receive benefits from the State but those who had provided the jobs could not. The issue of PRSI for the self-employed must be addressed as a matter of urgency and the self-employed brought onto a par with employees. Previous speakers have spoken of the need for further investment in education to reflect increasing numbers, but an effort must also be made to reduce the pupil-teacher ratio in some of our schools. Health needs further investment. No doubt, that will happen as resources become available.

I hope the spring statement is updated and refined regularly. We need more openness and debate on budgetary matters. The people are entitled to know regularly how the Government is progressing and its plans and priorities. As public representatives, Deputies and Senators must have an opportunity to influence how the people's money is spent. That is critical. Our future will be secured by prudent management, greater efficiency in our public services and shrewd capital infrastructural investment. To date, the Government has made much progress. Within a year, the people will have an opportunity to adjudicate on how well it has done. I have little doubt that the result will be positive and the Government will be given a further opportunity to build on the progress that has been made and to ensure we have full employment by 2018.