Economic competitiveness and jobs crisis
Enda Kenny highlighted Ireland’s poor competitiveness, rising unemployment and the need for constructive action. The Taoiseach said the Government would consider Fine Gael’s proposals and pursue sustainable public-finance policies.
I will read a short quotation which states:
Competitiveness is not a vague concept. It is critical for the creation and retention of jobs . . . [Today] we are 15th out of 16 countries on prices and wages; 15th out of 16 on infrastructure; 11th out of 16 on IT; 15th out of 16 on transport; and 12th out of 16 on research . . . . Ireland is the joint most expensive country in the eurozone for consumer goods.
That quotation comes from a contribution I made in response to the budget in 2003. The legacy of this sort of mismanagement is not new, it has drifted on for a number of years now. The signs have been there but precious little has been done. Just last week, as the Taoiseach is aware, the IMF stated in its report that Ireland is the most expensive country in the eurozone.
In February the Tánaiste asked the Competition Authority to produce a report in respect of the retail-related import and distribution sector. That report was published this morning and it stated that the problem of higher costs and competitiveness is a long-term issue that needs to be addressed. It is stated in the report that this problem is within our control — that is the only phrase underlined in the entire report. It goes on to point out that tackling factors that raise the cost of doing business is the best way of ensuring that Irish retail and production sectors are capable of competing with their counterparts in Britain and beyond. That is the reality. When will we get to grips with this? It has been going on since before 2003.
In respect of the constructive suggestions made by Fine Gael, and now with the Competition Authority pointing out that the solution to this problem is within our own grasp, will the Taoiseach give me three tangible actions the Government now intends taking to restore competitiveness to what it was in the mid-1990s, when Ireland was nimble, flexible and in front? We know what the problem is and we were told today by the Competition Authority that the answer is within our grasp. I ask the Taoiseach to respond in terms of tangible and positive action the Government intends to take.
Comment on this
Obviously the Competition Authority report will be considered by the Cabinet when the Tánaiste presents it in due course, probably next week or the week after. The important point on competitiveness in the economy is the need to continue with the direction of policy that has been validated by people outside and domestically in terms of the need to bring order to the public finances, to look to further means by which we can control spending and to find a viable and sustainable way forward through that path primarily.
If it is the Deputy's intention to support such measures, I look forward to the support of any part of the House, because it is important that this be proceeded with in a way that enhances competitiveness. As part of that we looked at public sector pay and pensions as an important component of total and overall current expenditure and we introduced in February a pensions levy that did not win the support of anyone else in the House although it improves our position.
It is also a question of making sure we can find a way those in permanent and pensionable jobs can assist those whose jobs are at risk or who have no pensions. Finding a progressive and fair way forward is always a matter of political judgment and can be always open to criticism. Ultimately, however, there is no painless panacea.
Comment on this
We are now in a national crisis. Tomorrow the live register figures are expected to show an increase of between 10,000 and 15,000. I do not want to be back here every month looking at spiralling live register figures that represent men and women being made redundant at a time when employment is so critical for us.
In the cut and thrust of debate in the House things that are said can be dismissed for no good reason. Let us consider this national crisis in a positive and constructive fashion, putting our minds together. We have said on numerous occasions that in the short term the Government should reduce the two VAT rates from 21.5% to 21% and from 13% to 10%. We have put forward propositions to slash red tape — a cause of serious concern to small businesses throughout the country — by 25%. We also put forward views on how to reform the regulatory authority to put the consumer, rather than business, first, and suggested that rates be frozen to give businesses a chance to breathe.
The CSO will publish the figures for the live register tomorrow and they may show an increase of between 10,000 and 15,000. I point out constructively that the Fine Gael Party — specifically, Deputies Coveney, Varadkar and Bruton — has produced a serious document on the basis of which we believe 100,000 jobs could be created over four or five years in the areas of clean water, energy, broadband and so on. This would of itself improve the attractiveness of this country as a location for industry while at the same time providing jobs for men and women all over Ireland. In a spirit of dealing with the national jobs crisis, I ask the Taoiseach to arrange for his Ministers to meet with the three senior spokespersons from the Fine Gael Party and officials from the Departments involved to investigate these proposals and their costings in a spirit of constructiveness and decide whether the Government considers there is merit and capacity for job creation in this document.
We can stand up here every week and talk about various proposals from an Opposition party, but this is a serious one. It is about young men and women finding jobs which will of themselves create an attraction for further investment in the country. Rather than the usual promise to examine the issue, I ask the Taoiseach to arrange for the three Ministers involved to meet a formal delegation from the Fine Gael Party, together with the officials, to discuss the merits of our proposals to create 100,000 jobs. That is what the people on the street want. They want to have hope, confidence and a belief that somebody here can point a way towards job creation. We have a serious proposition and I ask the Taoiseach to treat it in a constructive and serious fashion.
Comment on this
As I said, Ministers are considering the implementation of policies that have been referred to in Fine Gael's documents in a range of areas. I will not make any adverse remark about the putting forward of proposals by Fine Gael and I do not believe in engaging in petty partisan politics in any aspect of this. The best thing for me to do is to give my considered response on behalf of the Government to the document — considering various issues, as we must — and I will do so in good faith——
Comment on this
——on the basis that Fine Gael's proposal is a serious attempt to show people that every effort will be made by the House to address the issues before us in as constructive a way as possible. Now that the elections are over, the next three years may provide us with that opportunity.
Comment on this
Deputy Sheahan should take it easy.