I take this opportunity to thank everybody who assisted in the progression of the Bill through the House. It is very important legislation and I am delighted to see it passed by the Dáil. This reforming initiative reflects a commitment in the programme for Government and is a core element of the Action Plan for Jobs. I thank the Ceann Comhairle, the Leas-Cheann Comhairle and all the staff of the House for facilitating the orderly passage of the Bill. I thank my officials for their outstanding work in getting all of the necessary agreements in place. I also thank Members, particularly Deputies Dara Calleary and Peadar Tóibín, for their valuable contributions on each Stage of the debate.
County Enterprise Boards (Dissolution) Bill 2013: Fifth Stage
Question proposed: "That the Bill do now pass."
I join the Minister of State in thanking the staff of the Houses and the Department for their work on this legislation. The county enterprise boards have done very good work since 1993. The notion that the new regime will offer some type of all-singing, all-dancing show serves only to undermine that legacy. In fact, the local enterprise offices will essentially be building on the very good track record the county enterprise boards have left behind.
It is important that we get started without delay. The establishment of the LEOs has been announced more often than I have had hot dinners. We had yet another announcement this morning in the context of the so-called Action Plan for Jobs. It is time now to get things moving. In terms of the service level agreement, I realise that the Minister of State has a major interest in this area. The SLA must have some role in future for elected members if we are to be true to the ethos of putting people first in terms of local government.
I congratulate the Minister of State on his achievement in progressing the Bill. He has put an enormous effort into it. Let us proceed now with rolling out the initiative.
For the past three years, the Government's economic policy has favoured all sectors of job creation other than local indigenous business, even though the latter is the most productive and sustainable sector in the long run. We certainly welcome foreign direct investment, FDI, but an over-reliance on it is dangerous in the longer term.
In its press statement today regarding the Action Plan for Jobs, I noted with an ominous sense of déjà vu that the Government is focusing on jobs in the construction sector. We have called for more investment in housing construction to meet the need that is there. We acknowledge that ensuring adequate supply is very important. However, current Government tax policy is resulting in speculators piling into the housing market in a number of narrow pockets throughout the State, elbowing potential home owners out of their way. This has a second negative impact, other than the implications for potential home owners, in so far as enterprise is essentially competing with property for funds. Indeed, the current capital gains tax regime is in danger of soaking up all available funds to the detriment of local indigenous business. Moreover, the vast majority of FDI is going into Dublin and to a far lesser extent Cork, to the detriment of the rest of the country. This is resulting in a two-tier economy.
Focusing on indigenous business is the way to create a regional balance in the development of enterprise, and the county enterprise board has heretofore been the tool to do that. I take this opportunity to acknowledge the many people who have worked on the boards over the years. They have not always been right in what they have done, but it is also the case that they have not always been provided with the necessary funding to do what they wanted to do. Since 2008 or so, when Batt O'Keeffe was Minister, they have not had any direction. Instead, they have had a sword hanging over the heads. Yet they continued to transfer funds and knowledge to start-up businesses and micro-enterprises at a time when such were badly needed. In some ways, the skills and knowledge residing in the country enterprise boards will be diluted as a consequence of this legislation. My concern is that the culture of the local authority will become the culture of what was formerly the country enterprise board, and not vice versa.
I urge the Government to ensure that the new structures are properly funded and supported into the future. We must create a balance within our enterprise mix which places local manufacturing and internationally tradeable services at the centre of a sustainable growth path.
Question put and agreed to.