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Da´Il E´Ireann Vol. 673 Wednesday, No. 3 4 February 2009 DI´OSPO´ IREACHTAI´ PARLAIMINTE PARLIAMENTARY DEBATES DA´ IL E´ IREANN TUAIRISC OIFIGIU´ IL—Neamhcheartaithe (OFFICIAL REPORT—Unrevised) Wednesday, 4 February 2009. Leaders’ Questions ……………………………… 407 Ceisteanna—Questions Taoiseach ………………………………… 414 Death of Member: Expressions of Sympathy ……………………… 428 Requests to move Adjournment of Da´il under Standing Order 32 ……………… 441 Order of Business ……………………………… 441 Stabilisation of Public Finances: Motion ……………………… 450 Ceisteanna—Questions (resumed) Minister for Defence Priority Questions …………………………… 452 Other Questions …………………………… 461 Adjournment Debate Matters …………………………… 471 Stabilisation of the Public Finances: Motion (resumed)………………… 473 Private Members’ Business Energy Prices: Motion (resumed)………………………… 519 Adjournment Debate Community Care ……………………………… 544 Services for People with Disabilities ……………………… 546 Health Services ……………………………… 548 Ferry Services ……………………………… 550 Questions: Written Answers …………………………… 553 DA´ IL E´ IREANN ———— De´ Ce´adaoin, 4 Feabhra 2009. Wednesday, 4 February 2009. ———— Chuaigh an Ceann Comhairle i gceannas ar 10.30 a.m. ———— Paidir. Prayer. ———— Leaders’ Questions. Deputy Enda Kenny: Yesterday, the Taoiseach walked into the Chamber and plundered the public service income position to pay for the wanton waste of Fianna Fa´il’s management of the economy over the past ten years. In my view, it was to a disproportionate and unfair extent. His contribution yesterday said precious little about the situation for persons on the live regis- ter. We will be in the House when the live register figures are published, but, last night, the Minister for Justice, Equality and Law Reform, Deputy Dermot Ahern, who seems to have an agenda of his own which is different from the Taoiseach’s, said the increase in the live register would be 33,000. Deputy Michael Creed: The Taoiseach better watch out. Deputy Billy Kelleher: Fine Gael should not go there. Deputy Enda Kenny: I am not sure if he was referring to January. If that is the case, however, it will be the highest increase on record and an unemployment bloodbath. As the figures will be published this morning while we are in the House, will the Taoiseach inform the Da´il of the January increase in the live register and the total figure as of the end of January? How does he propose to tackle this? The Taoiseach: The figures are being released today. I do not know what the normal protocol is but I have no problem giving them to the House now. The January live register figure will be 36,500 higher than the December 2008 figure. The overall figure will be 327,900 in January. That is an indication of the change that has taken place in recent times. The whole purpose of the discussions with the social partners was to see in what way we can provide more training places for and help to people who lose their jobs. Obviously, the decision on reductions in public expenditure is an important signal, both home and abroad, of our preparedness to manage and stabilise the public finances. In the addendum to the Irish stability programme update submitted to the European Com- mission at the beginning of the year, we took into account this deterioration and estimated, for the purposes of the figures, that approximately 400,000 would be unemployed by the end of the year. 407 Leaders’ 4 February 2009. Questions Deputy Enda Kenny: This is catastrophic. These are the worst unemployment figures ever in the history of the State. That is an increase of over 1,500 jobs lost per working day. The December increase was 17,000 but it doubled in January with 36,500 jobs lost, bringing the total out of work to 327,000. It is a long time since the former Taoiseach, the late Jack Lynch, said if unemployment went over 100,000, the Government should leave office. I do not know if the Taoiseach intends to do that or not. This is a horrendous situation. I am often struck by the shock on the faces of people—— Deputy Sea´n Power: We can see that on Deputy Kenny’s face. Deputy Enda Kenny: ——who become unemployed suddenly with no prospect for the future for themselves or their families. That is the real kernel of the problem. The Taoiseach’s empha- sis and concentration on cuts yesterday did nothing in raising confidence, hope or prospects for people to either retain or obtain jobs. Deputy John Cregan: It is step by step. Deputy Enda Kenny: 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 construc- tion 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 Ta´naiste and Minister for Enterprise, Trade and Employment making patri- otic 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 recapitalis- ation 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. The Taoiseach: 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. Deputy Bernard J. Durkan: It is worse than then. The Taoiseach: 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 408 Leaders’ 4 February 2009. Questions 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-a`-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. Deputy Bernard J. Durkan: It did not help it. Deputy Enda Kenny: It is not just down to depreciation. Deputy Bernard Allen: People are being ripped off by chain stores. The Taoiseach: 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 vulner- able positions lose their jobs. That work is continuing with the social partners. Deputy Enda Kenny: I asked about school buildings. Deputy Pa´draic McCormack: What about schools? Deputy Eamon Gilmore: The Taoiseach has informed the House, in response to Deputy Kenny, that the country now has the highest number of people unemployed ever in our history, with almost 328,000 people unemployed. Last week I asked the Taoiseach what was the cost to the Exchequer of additional people being unemployed, between social welfare payments and lost tax revenues. The Taoiseach sent me a reply, which I received this morning, setting out those costs. He informed me that the 120,000 extra people who lost their job in 2008 brought about a total cost in social welfare terms of \1,386 million for a full year and the cost in terms of lost tax is approximately \960 million. When the figures are worked out, that comes down to every job lost in the Irish economy costing the Exchequer \20,000 per year. The additional 36,500 who lost their jobs in January will cost the Exchequer \730 million in a full year. For the past number of months and yesterday, everybody has been fixated on cutting public expenditure.
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