Kieran O'Donnell (Fine Gael) | Oireachtas source

I welcome the Minister, Deputy Noonan, who has just stepped out, and the Minister of State, Deputy Eoghan Murphy. The economy has recovered very well over the last number of years. There has been much debate about the CSO figures in the last number of days. The underlying figures we should be looking at are consumer spending, which has gone up by about 5%, and unemployment which is down to 7.8%. Nevertheless, I am a little perplexed as to why the CSO, which is an independent body, would publish such figures. They present an inaccurate reflection of the true position which is a very positive one. It is incumbent upon the CSO to go back and come up with a presentation which sifts out the exceptional factors and gives us a true picture which is probably in the order of between 5% and 6% growth last year.

I find it unusual that back in March, just over three months ago, the CSO projected a 7.8% increase in GDP and a 5.7% increase in GNP for 2015. Suddenly those figures become 26% and 19% three months later. It is an independent body which needs to take its work seriously.

It has been reported in the media that Philip Lane, the Governor of the Central Bank, contacted the CSO about his concerns about the figures. We are in a very strong position. The growth rate is probably 5% or 6% and unemployment is down to 7.8%. Full employment is normally around 6%. In public finances, debt to GDP was 123% not too long ago. It was 93% prior to the publication of these figures by the CSO and the CSO is now saying it is about 72%. Either way it is moving in the right direction.

I take on board the comments made today by the head of the National Treasury Management Agency who said that our national debt is still very high at €200 billion. It is something people must be cautious of. The fundamentals are very sound in terms of growth, consumer spending, employment and unemployment. Nobody likes to see unemployment but it is incumbent upon the CSO as an independent body to come back with a report which takes out the one-off items. The CSO needs to clarify whether that in any way impacted on the figures for Q1 where we see GDP slightly down and GNP up. The devil is in the detail. It is not always reported but it is extremely important.

I will touch on a couple of items from the economic statement. The first one is mortgage arrears. There has been a general reduction, however, there is a hardcore of people, about 30,000, who are in dire financial trouble and are two years or more in arrears. I am led to believe that in terms of the statutory regime, in some cases the appeal mechanism may not be operating to the level of effect we would like. They are a group that need to be looked at.

Infrastructure is vital. I was glad to hear the Sinn Féin leader in the Seanad speak earlier. She spoke in general terms but when it came to the specifics of her area she was very progressive in her outlook on taxes, which I welcome. I will do likewise on my area of Limerick. The Limerick-Cork motorway is a critical item of infrastructure.I have raised the matter with the Minister for Transport, Tourism and Sport, Deputy Shane Ross, and the matter needs to be progressed. It is a very big project but I know that the TII, the inheritors of the NRA, is actively looking at completing the project in stages. As part of the mid-term review, it is extremely important that the project is fast-tracked. It is ridiculous that there are occasions where one can drive from Limerick to Dublin as quickly as from Limerick to Cork and yet the latter is half the distance.

I wish to move on to discussing the risks of, alas, Brexit. Today, sterling has rallied against the euro and that is to our benefit in terms of exports. The improvement was partially due to the Bank of England signalling that it will reduce the interest rates by 0.25% in this coming period.

I will outline the key issues for us. I would like to see the referendum re-run in the UK. It would be the best thing for the UK public and for Europe. However, based on the new UK government, another referendum may not happen but I would still like it to happen. The most important thing for us as an economy is that the UK is a huge trading partner for us, and many Irish people live in the UK.

We must be aware of the following in Brexit discussions. The 12.5% corporation tax rate must be retained and it is sacrosanct as far as I am concerned. We need to ensure that the SME sector, which is the lifeblood of the economy and I came out of that sector, continues to export into the UK. It is also extremely important that we keep a close eye on exchange rates to make sure Irish businesses can maintain their competitiveness. Certainty is also critically important, particularly for parents who have students studying in the UK, for the health system and for the energy system.

Another element of the economic plan is housing. Last night, we debated the slightly unrelated issue of disabilities. The Government, in terms of the housing programme, needs to do two things. First, I understand that local authorities are not required to publish or provide figures to either the Department or the Government on the level of allocations they make in any one year. It should happen because one could benchmark and see the numbers that are allocated.

Second, many of the Part V funds have not been spent. We have to find out the level of Part V funds that councillors retain on their books in terms of it being used in the disabilities area for housing and also in terms of the whole area of housing for its own accord.

I welcome the rainy day fund mentioned in the economic statement. The fund is dear to my heart. Between 2007 and 2008 I raised the matter repeatedly in the Dáil and I am glad that it has now happened. The fund should be put in reserve and be comprised of a huge amount of capital. In terms of how the fund is used, a rainy day fund is necessary to counteract external shocks.

In terms of our discussions on Brexit and economic discussions, it is important that we examine fiscal rules and ensure there is scope for capital spending specifically. I look forward to further debates with the Minister for Finance and his Minister of State, Deputy Eoghan Murphy.