I hope this debate will be about the National Development Plan 1994 to 1999 and not about side issues or the forthcoming budget in January next.
The spending of £20 billion in this small country provides us with a singular opportunity for our economic wellbeing. It is part of the overall Programme for Government to improve our economic wellbeing, tackle the serious unemployment position and, of course, in other ways to improve Irish society. In framing our National Development Plan the Government had three central objectives, which were: to increase and maintain employment; to reduce unemployment and, in particular, long term unemployment, and to eliminate the social exclusion of people and of the areas in which they live, caused by long term unemployment, disadvantage and poverty.
From 1993 to 1999 total EC aid to Ireland will amount to approximately £8 billion. That takes into account Structural Funds and the new Cohesion Fund coming on stream this year. In addition, the Irish public and private sectors will invest £12 billion, bringing the total package to the highest ever in Ireland at over £20 billion.
We must invest these resources wisely in order to achieve not only an impact on growth and jobs during the plan period but also lasting improvements in the economy that will deliver continuing growth and jobs into the next century.
Our aim is to transform this country by the end of the decade. The plan sets out the Government's strategy to achieve the national and European Community objective of greater economic and social cohesion. Our last plan increased our standard of living from 63 per cent to 73 per cent of the EC average although encountering a very severe world recession. This time we aim to close the gap still further.
The basic elements of our strategy are: firstly, investment in the growth potential of the economy in industry, in tourism and services, in agriculture and natural resources; secondly, investment in the country's productive infrastructure to improve the capacity and competitiveness of the economy; thirdly, investment in the development of the skills of our people through education and training in order to increase productivity and growth capacity; and, fourthly, a special increased emphasis on harnessing local community leadership and local initiative. This strategy will be given effect by a wide range of carefully selected development measures. I propose to give an overview of these measures which will be described in greater detail by individual Ministers during the course of this debate.
The main vehicle for direct job creation in the economy will continue to be industrial development. The industry programme therefore is one of the most important and largest programmes put forward in the plan. Total public — that is, national and EC — investment in industrial development will amount to almost £1.4 billion. Private sector investment associated with this public input will bring the total investment in industrial development to over £3.8 billion.
In the industry programme there will be increased emphasis on the development of indigenous industry, with support being directed at encouraging Irish-owned companies to build their competitive capability at firm level and at encouraging the development of capability and expansion of capacity at industry level. There will be special initiatives in key sectors with identified job creation capacity such as wood processing, the film industry, software and electronic services, aerospace and automobile components.
The attraction of inward investment is also essential to job creation. Resources will be devoted to the attraction of new industries in the sectors and market niches where this country has the greatest competitive advantages and also to the further development and expansion of foreign-owned firms already located in Ireland. The benefits of inward investment must be maximised by the development of linkages between Irish-owned and foreign-owned firms.
There will be increased resources for company-led research and development, coupled with support for the development of research and technology services in support of industry by Eolas and the higher education sector. Marketing development measures will support Irish companies in achieving sustainable market share, help to improve the marketing capability of Irish firms and increase the awareness of Irish firms and their products.
The food industry is one of the most important sectors of Irish industry, accounting for some 22 per cent of total exports and about 20 per cent of all manufacturing jobs. Because of its potential to create national wealth and employment, the development of a strong indigenous food industry is a key Government objective. There will be a new special sub-programme for the food industry to deliver an integrated and coherent development package, embracing capital investment, marketing, research and development and human resources measures.
The projections for job creation in the food industry shown in the National Development Plan can take account of the fact that the Irish food industry has already entered a phase of rapid change and development, including a very substantial increase in added-value production. Already we have a food industry of growing efficiency and sophistication; we are not starting from scratch.
Of course, the outcome of the GATT negotiations will be important for food sector exports, particularly in the beef, dairy and pigmeat sectors. As was made clear in the report of the Expert Group on the Food Industry published earlier this year, the outcome of the GATT negotiations will have an influence on export and production targets especially in pigmeat and cheese. Indeed that is one reason the Government is now doing its utmost to ensure that the final outcome of the GATT negotiations does not prevent growth in our food industry. It may well be that some rationalisation will be needed in coming years in some primary processing sectors of the food industry if they are to remain competitive. But I am confident that, with any reasonable GATT outcome, such job losses as may arise from rationalisation can be more than counter-balanced over the period of the National Development Plan — for instance, by growth in prepared consumer products and food ingredients. Those sectors, as well as drinks, in the main would not face the same risks under a GATT settlement as the primary sectors I have mentioned. In fact, if competitively produced, in many cases they could stand to gain from cuts in protection by third priority countries.
Agriculture and the food industry are vital elements not alone in the rural economy but also in the wider economy. Agriculture accounts for about 9 per cent of GDP and 13.3 per cent of employment. However the sector is characterised by persistent problems of a structural nature, such as declining numbers, an ageing population and a substantial number of farmers with low incomes coupled with significant underemployment. It is important that agriculture be integrated into a wide rural development framework and that other rural development measures are undertaken to generate the necessary income and employment levels to enable family farms to survive and to ensure the existence of a vibrant rural community.
Total expenditure, including associated private sector expenditure, in the areas of agriculture, rural development and forestry will be over £1,450 million. When investment in food, which I have already mentioned, and human resources is added, together with expected funding through Community initiatives and Common Agricultural Policy reform accompanying measures, the total package will be in the order of £3 billion, representing a similar percentage to the last National Development Plan.
Key features of this investment include increased investment to help farmers meet new dairy hygiene standards and animal welfare requirements, provide for pollution control and for animal housing and fodder storage facilities; continued support for producer groups with greater attention to the promotion of quality output and improvement of marketing strategies; funding for the Scheme of Installation Aid for young farmers; support for alternative farm enterprises and the development of rural tourism; increased resources for compensatory headage payments, including beef, suckler cow premia, and human resources measures by Teagasc in support of farming, related rural enterprises and rural development.
Taking all these measures together, including higher forestry and agri-environment subsidies, there will be a significant increase in income support for farmers. This is partially reflected in the big increase in farm incomes over the last two years. Despite having growth rates over three times the EC average, Ireland still has the lowest level of forestry in the Community. A planting programme of 30,000 hectares a year to the year 2000 is planned, along with back-up measures in forestry, training, roads and research and development. As I have said, the timber processing sector will be one of the key sectors for development under the industry programme.
The fishing sector has shown growth in recent years but remains underdeveloped. It offers potential for further development as a contributor to economic development in coastal areas and to output and exports nationally. Development measures will include fleet renewal through vessel construction and modernisation, aquaculture development involving both new installations and modernising existing areas, improved fish processing facilities, developments at fishery centres and fishery harbours and a programme of marine research.
The present operational programme for tourism has been very successful in terms of increased foreign tourism revenue and of the jobs that revenue creates. The new programme will build on that success and has the aim of achieving an increase of £1 billion, or 50 per cent in real terms, in foreign tourism revenue by the end of 1999. It will also aim at getting a much wider spread of tourist income throughout the year. Total investment in tourism, between the State, the EC and the private sector, will be over £580 million to 1999.
There will be increased investment in marketing and training, investments in product for specialist tourists such as activity holidays and language learning and a programme of investment to upgrade and improve tourist angling waters and our canals. Ireland will be established in the top league of international conference venues with a major new conference centre planned for Dublin. There will be accelerated investment in arts, culture and heritage projects.
Investment of over £2.6 billion is planned in transport infrastructure. The primary objectives of transport investment in the period will be to improve internal and access transport infrastructure and facilities on an integrated basis, and to improve the reliability of the transport system.
We will continue to invest heavily in improving the national primary and secondary road network concentrating on four key corridors — north-south, southwest, east-west and the western corridor linking Sligo, Galway, Limerick, Waterford and Rosslare. There will also be an increased investment effort in regional and local roads of importance to local economic development. Under this plan there will be an increased role for public transport. There will be a major investment in upgrading of the mainline rail links. The Dublin Transportation Initiative will be substantially advanced, including a light rail system, completion of the Dublin Ring Road, an efficient access route to Dublin port, quality bus corridors, upgrading existing suburban rail services and improved traffic management.
Investment will also take place in the strategic ports of Dublin, Dun Laoghaire, Waterford, Cork, Rosslare and the Shannon estuary and in the State airports at Dublin, Shannon and Cork.
Environmental infrastructure is important from the point of view of both contributing to the development of industry and tourism and protecting and enhancing our quality of life. There will be substantial direct investment of £655 million in environmental services. This will include investment in water and sanitary services, new and improved sewage treatment systems, projects designed to improve the quality of drinking water and the establishment of an adequate and integrated network of waste disposal installations, with appropriate provision for hazardous and non-hazardous waste.
We intend to have a national clean up of litter and waste and a thorough and substantial improvement in our water and sewage treatment systems to preserve a green and healthy environment for our people. Projects will include major coastal sewage treatment schemes in Cork, Dublin, Dundalk, Greystones, Galway, Limerick, Waterford and Westport and major water schemes in Dublin, Limerick and Tuam.
Total expenditure in the energy sector will be over £2.1 billion and policy will focus on tackling the factors which induce uncompetitive energy changes in the economy as well as maximising fuel consumption and energy infrastructure efficiencies. Structural Funds aid will be directed at key strategic projects including a peat-fired generating station, an energy efficiency scheme, pilot projects in the development of cutaway bogs, rural energy networks and the extension of the natural gas supply to the Shannon area.
There will be investment of over £850 million in telecommunications over the period. The objective is to increase the penetration of the system from 70 to 82 telephones per 100 households. The investment proposed will facilitate the completion of digitalisation, the expansion of the fibre optical network, significant improvements in international access and further developments in mobile services.
Investment of £60 million in the postal services will include measures for the extension of the post office computer system in rural areas and the construction of modern mail centres located in the regions.
The Government have included a major health investment project, Tallaght Hospital, in this plan. Work on the construction of the hospital is due to commence next month and will finish within three and a halt years from the end of this year. This new acute general teaching hospital will fill a major gap in the development needs of what is now the third largest urban centre in the State.
The development of our human resources is essential to future growth and employment creation. Almost £3.1 billion is to be invested in human resources over the period of the plan. The main objectives in this area will be to ensure the competitiveness of Irish industry and services through the supply of highly qualified and skilled personnel; to equip enterprise and workers with the skills necessary to cope with occupational, structural and technological change; to improve the attractiveness of Ireland as a location for new enterprise by having a highly educated, skilled, adaptable and versatile workforce; to promote equality in access to jobs and training and to help overcome disadvantage; and to maintain and enhance participation rates in education and training for the disadvantaged.
The National Development Plan places a major emphasis on local development, building on the experience already gained from the Pilot Area Programme in Integrated Rural Development 1988-1990, the current Leader programme, the area-based initiatives under the Programme for Economic and Social Progress, the Third EC Poverty Programme and the EC Global Grant for local development. All indicate that there is considerable potential to be tapped at local level to tackle long term unemployment and to generate local development. Inherent in that programme is the targeting of areas and communities characterised by long term unemployment and social exclusion.
The sum of £1.143 million will be available to the local development programme over the period of the plan. The programme will have four elements: a countrywide local enterprise sub programme to be administered through the county enterprise boards. The boards will provide support for local enterprise initiatives and will fill a gap which has been identified in the current support services for local enterprise initiatives. A sum of £114 million will be available, from the Exchequer alone, for this programme over the period of the plan; an area-based local development programme for areas characterised by a high concentration of long term unemployment, social exclusion and environmental deprivation. This measure extends the pilot initiative of area partnership companies introduced under the Programme for Economic and Social Progress which has yielded significant results in terms of enterprise and employment, community development and improved services for long term unemployed. A sum of £100 million will be available for this programme over the period of the plan; a substantially expanded community employment development programme (CEDP) which will replace the countrywide social employment scheme. The CEDP contains a combination of training inputs and community work on employment specifically targeted in the long term unemployed areas. The total available under this measure is £813 million; an urban renewal programme which will improve the fabric of the local environment with emphasis on architectural conservation and streetscapes. A second part of this sub programme is the completion of a range of cultural facilities in the Temple Bar area of Dublin. The urban renewal programme involves expenditure of £116 million over the period of the plan.
The Government has, as part of a determination to further the local dimension of development, introduced an important new element for this National Development Plan in order that people throughout the country can better understand how the plan will affect their area. Statements of the integrated developments proposed in each sub-region are now being prepared and will be available shortly for that purpose.
In implementing the development measures under the plan we will ensure that there is no direct or indirect discrimination on grounds of gender and will actively promote equal opportunities for both genders.
I am disappointed at the lack of welcome for the plan so far by the Opposition parties. Do they fail to understand the huge difference it will make to their areas? Having failed to find anything to criticise in the plan, the burden of their complaint seems to be that it is not the budget, which deals with areas which were never intended for the plan. This is an investment plan, an investment project, and should be debated on its merits. Let us have the budget debate next January when it is more appropriate.