Paddy Burke (Fine Gael) | Oireachtas source

I welcome the Minister. I have no doubt that he could have a very senior financial portfolio in the next couple of weeks and I wish him well in that regard. I congratulate the Minister on the work he has done in recent years.

I wish to discuss a few matters relating to the mid-term review. I welcome the review and I congratulate the Minister on bringing it forward. It is only right and proper that we should have an opportunity to have our say on and an input into it, and that the public should also have its say.

It was interesting to listen to Senator McDowell's comments on public sector pay and the amount of applicants for positions in An Garda Síochána and the Army. They have great confidence in the sector and they would like to work in the public sector. I have great time for public sector officials and it is only right that they should be well looked after. It is also only right that we should have the best and the brightest in our public sector. We have some very bright people in the public sector and, as is the case with industry, why should the sector not have the brightest and the best? The public sector is a huge employer and provides many services to the public, namely, those relating to transport - including, until recently, our national airline - health, policing and the Army. State and semi-State bodies have provided great services to the nation over the past 100 years. We should have the brightest and the best people in the public sector. We should ensure that they are looked after and well paid.

There should be a bonus system in the public sector. This is a matter to which the Minister should give consideration. There are some companies that reward their staff for coming up with new ideas and the public sector should look at that. Why should public sector staff not bring forward ideas that may streamline processes or bring huge savings to both the sector and the State? People who do this and come up with ideas should be rewarded. The Minister should examine this matter.

As the Minister said, we are really only talking about the €2.6 billion that remains to be allocated on the basis of the outcome of the mid-term review. We are looking at housing and infrastructure. On the €2.2 billion for housing, there is no doubt that there is a huge shortage of houses throughout the country. We have not yet considered the cost of building houses and I am of the view that the Government must do so. Builders tell me that they are not building houses because it is costs too much to do so. They cannot get back the money it costs to build houses. Why, therefore, should they build houses only to lose money? In the context of a house that costs between €200,000 and €250,000, the VAT can be anywhere from €30,000 to €40,000. The Government is not getting that money because the houses are not being built. The Government should, particularly in the context of new builds, examine the position regarding VAT. There have been major implications for builders in recent years regarding various regulations - such as those relating to insulation standards, etc. - put in place in respect of the building of houses. Builders tell us that it costs in the region of €178,000 to construct a new house and that is without taking the cost of the site into consideration. This presents a huge conundrum because the vast majority of people have to obtain loans of €200,000 to €250,000 in order to purchase homes. In most cases, it would mean that the two loan applicants would need to be working. We have no choice but to examine the possibility of reducing the costs relating to building new houses. Perhaps the Minister could look at this aspect in the next couple of weeks or months.

I shall now turn to the issue of infrastructure. Senator Gavan referred to the Cork-to-Limerick road and Senator McDowell mentioned the roads from Dublin to the west, Sligo and Letterkenny. I would like to pitch in my tuppence ha'penny worth regarding the N5. At present, a new section of the latter is being planned in respect of the route between Westport and Castlebar. This area was neglected during the boom. All major Irish cities were linked in the boom times. For example, Dublin was linked to Galway, Limerick, Cork and Waterford by means of various motorways. However, the area north of the Dublin-Galway route has been neglected. We talk of regional development and bringing regional balance to the country but the entire area to which I refer has been neglected. I ask the Minister to look at the area in question in the context of extending the motorway from Mullingar to the west, with a network of link roads to Castlebar, Sligo and Letterkenny. Senator McDowell is correct in that we should take a long-term view in respect of this matter and see how it might be possible to achieve what I am suggesting by means of a single motorway as opposed to several motorways.

Today the Taoiseach and Cabinet announced strategic development zone, SDZ, status for Ireland West Airport Knock.I welcome that announcement, which I hope will be backed up with some tax incentives. Knock international airport is one of the drivers of regional development in the west. The special development zone for the area around the airport must be supported through tax incentives or grants to ensure proper regional development takes place. More than 700,000 passengers use the airport each year and flights depart for various parts of the UK daily. It is a driving force in the local economy. Unlike Cork, Limerick, Rosslare and Dublin, County Mayo does not have a port, nor does it have a fast train service and, as previous speakers noted, it does not have a motorway either. I ask the Minister to consider extending tax designation to the SDZ around Knock international airport.