I will make three suggestions to the Taoiseach that he might consider. Primary and secondary schools building projects must be put on the critical infrastructure list. These are critical buildings to which there will be no planning objections. A generic design can be used and they can be rushed through the planning process. With €8.1 billion in the capital programme and 20% savings in prices from construction firms, a schools building programme would allow for the employment of substantial numbers of tradesmen, craftsmen and construction workers. Will he take that constructive suggestion, if I may use a pun, to heart?

Is it the Taoiseach's philosophy that by increasing the VAT rate, the Government's take from it will increase? There has been a haemorrhage of both jobs and money north of the Border, despite the Tánaiste and Minister for Enterprise, Trade and Employment making patriotic gestures. When the capital gains tax rate was cut some years ago, the tax take increased substantially. Will the Taoiseach consider reversing the VAT increase introduced in the budget in light of the fact that it is not bringing in extra tax and haemorrhaging jobs and money north of the Border?

With this catastrophic increase of 36,500 on the live register in January, the Government will have to pay more in benefits. Will the Taoiseach consider an exemption in PRSI contributions for employers who take on new employees in 2009? Will he consider tax exemptions for firms involved in research and development for new products which have the potential to create new jobs? Will the Taoiseach consider some sort of loan to small businesses as part of a recapitalisation programme, which is beginning to work successfully for small businesses in Britain?

I make these suggestions in a non-contentious way on the basis of providing confidence and hope in job creation measures, which are so important in the context of this morning's announcement of 327,900 people on the live register, with an increase of 36,500 in January. That is unprecedented and there will be horrific social consequences for those tragically caught in this bind.

Any increase in unemployment must be dealt with to the best extent possible. To compare this with earlier times and the comment regarding 100,000 people out of work is to make comparisons with a totally different country.

It is worse than then.

The last time this figure was exceeded we were talking about 15% or 16% unemployment. The current figure represents approximately 9.1% or 9.2% unemployment. I make that point while in no way diminishing the position. There are far more people at work now, and having seen figures recently, there are still approximately 1.88 million people working. It is important to make that point.

There was a question on VAT rates. The sterling differentiation is the problem in that matter; that is, the valuation of sterling vis-à-vis the euro is the issue. More than half the products referred to by the Deputy do not attract VAT at all. If the contention is that the 0.5% increase in VAT has caused the problem, it is not the correct analysis of the position.

It did not help it.

It is not just down to depreciation.

People are being ripped off by chain stores.

With regard to the other fiscal measures referred to by the Deputy we must work within the budgetary parameters set out for ourselves and we will work, both internally in Government and with social partners, to see what way we can help those people who lose their job in training, upskilling or reskilling. We will also look to other measures to see what way we can identify those jobs which are at risk and see what way we can try to maintain people in employment by bringing forward interventionist measures before people in vulnerable positions lose their jobs. That work is continuing with the social partners.

I asked about school buildings.

What about schools?