Last month's unemployment figures on the live register were 354,000, which was up 26,000 on the previous month and 165,000 on the previous year. The Minister for Social and Family Affairs last night indicated that the figure for this month, due to be published in half an hour and now available to the Government, would show a further increase. What are the figures for the live register for the end of last month?

They are to come out this morning. The live register to the end of March was 371,300, which represents an increase of 16,863 on last month. The standardised unemployment rate for March is expected to be 10.9%. The rate has continued to rise strongly but it has shown some signs of abating. A fall is, however, unlikely in coming months and seasonal factors mainly associated with holidays in the educational sector will further disimprove the position in June.

If I have the figures correct, the rise to over 371,000 represents a massive increase of more than 16,000. It is appalling that this number of educated, healthy and fit people are expected to walk around with nothing to do. We have been in this House month after month and have heard from the Government benches the necessity for solidarity, constructive proposals and the backing of the country and its people. In fairness, Fine Gael has consistently produced a range of such proposals, and I would like to put two to the Taoiseach again today.

Given the scale of unemployment, the shock caused to people and the loss of dignity and social structure, Fine Gael last week published a detailed document presenting the opportunity to create 100,000 jobs through an economic recovery authority. It would be financed by the National Pensions Reserve Fund, an economic recovery bond and private equity and the document set out a holding company with six commercially driven State companies reporting to the Department of the Taoiseach. It would afford the opportunity to create 100,000 jobs around the country dealing with broadband, renewables, biomass, smart grids, telecommunications and so on. These are real opportunities and not fantasy.

Hear, hear.

We made this suggestion in the House already and Deputy Coveney produced a detailed document thereon. In the spirit of what Ministers have been saying about the need to support the country, will the Taoiseach consider this real proposition to give people hope, confidence and a sense of realism? There is the potential for 100,000 jobs in the Fine Gael plan.

In the context of preparation for a budget next Tuesday, will the Taoiseach give this serious consideration and provide an opportunity to have it debated in the House? The Minister of State at the Department of the Taoiseach, Deputy Pat Carey, broadly welcomed it and the Taoiseach yesterday stated he would not pour cold water on it. There is an opportunity for discussion about real jobs for men and women, farmers, chemists, scientists, engineers or whatever.

Hear, hear.

My second suggestion is in respect of this appalling increase in unemployment figures on the live register. I will not pull any punches. Most, although not all, of our domestic mess is the result of incompetence in the Government. I suggest that the Government deal now with a reduction in the lower end of VAT from 13.5% to 10%, as this directly affects the tourism, hospitality, construction and infrastructure industries, where jobs can be protected and created. It would offer some opportunity to people who are strangled by red tape and bureaucratic difficulties and where business is going down the tubes before our eyes.

The Taoiseach as Head of Government has the opportunity to do something about this. I make these two suggestions in the spirit of a constructive proposal. I know a VAT reduction from 13.5% to 10% would require, in part, approval from Europe. This party's connections in Europe are much stronger than those of Fianna Fáil and I am prepared to go out there at my own expense along with the Taoiseach to seek support from the European leaders for whatever approval is necessary.

Hear, hear.

Hear, hear.

This is an emergency.

The Deputy might need to bring his name tag with him.

It is the same voices the whole time.

Nobody in Europe will deny the Government emergency approval for a VAT reduction like this because we have a decision to make later in the year about completing the architecture for a new Europe of 500 million people.

The Deputy should get his own party in order first.

I will accompany the Taoiseach in order to assist him and co-operate with him in the country's interests.

Deputy Johnny Brady is going to have to take it easy over there on the Government side.

My proposals are in line with what the Government has been saying and I ask the Taoiseach to take them on board in that spirit.

Deputy Breen wiped Deputy Dooley's eye for him last week.

As stated on previous occasions, it is not for me to become involved in a contretemps with the Leader of the Opposition regarding any policy documents he may put forward. When they have been properly examined and assessed, such documents should be debated in the House. There are aspects of the Deputy’s proposals about which we have serious concerns.

I am sure that would be the case.

I would prefer if such matters were dealt with as part of a formal debate. I look forward to the opportunity to debate these proposals in detail. The introduction of the budget next week will allow people to provide their initial views on the Deputy's proposals. I do not wish to seem churlish or to give the impression that I am not prepared to consider everything. However, we would be obliged to discuss and examine in greater detail the question of establishing a holding company to bring all semi-State bodies under the control of one entity——

It would be under the control of the Department of the Taoiseach.

——the implications of so doing and the extent to which such a development would contribute to competition and innovation. I do not wish to say any more than that. Deputy Kenny has put forward a policy document and we can debate it when the opportunity arises.

In the context of rising unemployment and during a period in which the economy is contracting to a considerable degree, we are cognisant of the fact that people's very real concerns lie behind the statistics. Some 224,000 are in receipt of payments in respect of being unemployed for a full week and over 50,000 are receiving payments in respect of being unemployed for part of the week. In the context of the budget, we will do all in our power to reallocate existing resources into areas where activation, reskilling and other opportunities can be created in order to assist people who were unfortunate enough to lose their jobs in recent months.

I cannot discuss taxation at this particular juncture. The Minister for Finance will outline his position in that regard in full on Tuesday next. The major problem with the Government finances in recent months relates to the fall-off in tax revenues. We must seek to replace those revenues. A structural deficit has emerged because, as a result of the change in activity in the economy, the tax revenues that have been lost are not likely to be replaced from the same sources of income from which they were originally collected. That deficit could be of the order of 8% or €16 billion. There will be a need to examine tax expenditures and consider other means of raising taxes. We will also be obliged to cut expenditure programmes that are no longer regarded as necessary or to redesign them in light of the new circumstances in which we find ourselves. The challenge the Government faces not only in the context of next week's supplementary budget, but also in the coming years, is to redesign the tax base and the systems relating thereto in order to ensure that they will be sustainable. The gap that has emerged cannot be bridged by relying on the sources of income on which we relied in the past. That is what we mean when we refer to closing the structural deficit.

We are in a recession and world trade is down. As a result, there is less demand for our goods and services abroad. However, that demand will return as growth returns. That is the distinction we are seeking to make in trying to analyse what happened and communicating to the public the nature of the problem and the changes that must be made in the context of putting in place a new taxation system. Some of those changes will relate to increased income tax, while others will come about in due course on foot of a broadening of the tax base. There is a fine judgment to be made with regard to Deputy's proposal in respect of reducing VAT or other taxes. As already stated, I do not wish to pre-empt what the Minister for Finance may wish to say in respect of these matters on Tuesday next. However, I hope I have provided some indication of the Government's thinking.