: Is mian liom labhairt san díospóireacht seo ar cháinaisnéis na bliana 1983 agus ba mhaith liom a rá ar an gcéad dul síos gurb é mo thuairim go bhfuil tábhacht eile ag baint leis an cháinaisnéis seo. Tá súil agam go n-éireoidh leis an strategy atá leagtha amach ag an Aire Airgeadais agus go mbainfidh sé amach na haidhmeanna atá leagtha amach go sóiléir in a óraid cúpla seachtain ó shin. Níl aon amhras, mar a dúirt mé, ach go bhfuil tábhacht eile ag baint leis an cháinaisnéis seo. Braitheann staid na tíre sa todhchaí, staid na fostaíochta agus forbairt eacnamaíochta ar na torthaí a bheidh le feiceáil de bharr na cáinaisnéise seo.
Ní cuimhin liom aon cháinaisnéis i rith na fiche bliana atá thart atá níos tábhachtaí don tír seo agus do mhuintir na hÉireann ná an cháinaisnéis seo. Mar a dúirt an tAire agus é á tabhairt isteach cúpla seachtain ó shin, tá deacrachtaí móra an domhain ag brú isteach orainn sa tír bheag seo. Tá deacrachtaí uafásacha, deacrachtaí a bhaineann le cúrsaí eacnamaíochta, cúrsaí sóisialacha, agus go háirithe tá an dí-fhostaíocht ag méadú go h-uafásach in aghaidh an lae. Tá beagnach 200,000 daoine dí-fhostaithe sa tír seo — 14 faoin gcéad, an céatadán is airde sa Chomhphobal.
Is í an phríomh-aidhm atá ag an gcáinfhaisnéis seo ná cúrsaí airgeadais a chur i gceart arís, agus chomh maith leis sin an strategy bunúsach ná cúrsaí eacnamaíochta a chur chun cinn arís ionas go mbeidh forbairt na tíre ar siúl i slí go mbeidh níos mó fostaíochta á cur ar fáil agus go háirthe go gcuirfear stop le méadú líon na ndaoine atá dí-fhostaithe faoi láthair.
I believe the results of this budget and of its financial and economic strategy will determine the welfare of this small nation and our people for many years to come. We are at a critical time in the history of this country. We are faced with appalling, frightening and unprecendented problems — economic, social and financial. We have the frightening spectre of daily mounting unemployment, of factory closures, and of a balance of payments situation which is getting out of hand. Every penny accruing from the PAYE sector is going to service our foreign debt.
There is little or no opportunity here for the many thousands of young people leaving our educational institutions. We have the youngest population in western Europe but because of better educational opportunities over the last two decades we have young people with training skills, expertise and know-how which their counterparts of previous generations did not have.
Much has been said about this being a harsh budget which has hit certain sectors of the community very severely. This budget is the price the people have to pay for the appalling mismanagement, squandermania and lack of enterprise and initiative displayed by those in Government since 1977. The period between 1977 and 1982, by any independent analysis or assessment, will be rated the most disastrous in our history. We had massive foreign borrowing, doubling and trebling each year and at the same time we had nothing to show for this money. Borrowing by an individual, a company or a Government is justified if the money is invested and put to productive use. This massive borrowing since 1977 has left this country in a dire mess.
The Minister for Finance and the Government when formulating this budget gave effect to the truth we spelled out to the electorate last November. The people knew the country was in a dire financial mess and that some semblance of order had to be restored to the national finances. We spelled out clearly and unequivocally that unpopular measures would have to be taken and that a harsh budget would have to be introduced. We said there was no soft option, no magic formula to solve our economic and social problems overnight.
We have a courageous and determined Government who are not afraid to take unpopular measures and who are committed to cleaning up the mess that they inherited from the previous Administration. This Government have inherited a situation of a magnitude and a gravity that no Government in the history of the State has had to face and the budget is the price that the people must pay for the con job perpetrated on them by Fianna Fáil in their election manifesto of 1977. At that time Fianna Fáil tried to give the impression that everything would be free, but we know now only too well how high is the price of the promises made then. Because of that recklessness on the part of Fianna Fáil this country was plunged into massive borrowing for which the taxpayers are now suffering.
This has been a harsh budget right across the board, but the people appreciate the reasons for it. They realise that belts must be tightened if we are to see any light at the end of this very dark tunnel. General reaction to the budget can be summarised by what was said to me a couple of weeks ago by a constituent. This man has four teenage children and he told me that he does not mind a certain amount of belt tightening and of having to pay more tax if it means a future for his children in their own country.
While it is fundamentally necessary to restore some semblance of order to our chaotic financial position, the Government must bear in mind that a budget must have twin objectives. Apart from the question of financial strategy, a budget is the major instrument of a Government's economic strategy. In analysing this budget we must consider it against the background of the mess the Government inherited and then in terms of the economic and social problems facing us. I am satisfied that the basic fiscal management policies as outlined in the budget are correct. One hears many arguments about the various measures that have been taken. It can be said that there are certain areas in which the impact may be too severe, but overall I am satisfied that the Government have started on the right road especially in relation to straightening out our financial situation.
There is much concern that the Government may have concentrated too much on purely a book-balancing exercise. We must remember that to place too much emphasis on accountancy procedures may be to create further unemployment and economic depression. This is the criticism that has been levelled against this budget by many commentators. However, I am satisfied that in formulating the budget the Government had in mind to a great extent the whole employment situation. They realise that the introduction of the necessary national financial discipline will make possible a new dynamic economic recovery which will enable us to have a sound employment-creation strategy. It is very important, not only for the youth of our country but for our whole economic survival, that the galloping rate of unemployment be halted. Our efforts in this direction are affected by factors outside our control — for instance, the world economic recession and the various increases in energy costs. Our farmers, manufacturers and exporters have had to contend with these very difficult circumstances but this major problem of unemployment must be the concern, not only of every Deputy here but of every individual in the country.
From discussions I have had with a wide section of people, people of different political persuasions and so on, I realise how frightened people are because of the unemployment situation. In the past many of our young people left school on the completion of first-level education but we now have coming on to the labour market people who are well educated and in many instances highly skilled but for whom there are no job opportunities. I have noticed a frightening change in the situation in the past decade. In normal circumstances the education, the skills and the expertise that is coming on-stream would be of the utmost value to the development of our country but there are not the opportunities in present circumstances for the utilisation of this knowledge and of these skills.
We must tackle this problem. It is the most vital problem facing us today. Most other countries, too, have unemployment problems. The European Parliament has discussed the situation but very little progress has been made in formulating new policies and strategies. It had been suggested that short-term measures might be adopted to help resolve the problem. At a time of recession there is a great temptation for any Government to concentrate on the short-term in seeking a solution to unemployment. Many suggestions have been put forward to deal with this matter including the introduction of a shorter working week, controls on overtime, early retirement and job-sharing. The introduction of any of those measures will have an impact on employment creation in the short-term.
We must spell out clearly that material living standards and employment prospects depend entirely on the quantity and value of the goods we export or sell on the home market. We must develop our economy and produce the goods which will obtain for us the wealth necessary to create employment. That is our real formula for development. There is no shortcut solution to our unemployment problem. We must carefully assess our resources and their potential, particularly our land, fisheries and tourism. Another short-term solution has been propounded by a colleague of mine, Deputy Kelly, and I regret that I must differ from him in public. Deputy Kelly suggested that emigration might be the answer to our unemployment problem. Emigration has been our greatest scourge prior to and since the foundation of the State. It was easy for people to emigrate to the United States and the UK before because there was no language barrier and jobs were available. For that reason successive Governments did not have to tackle the problem of creating full employment for a growing population. The so-called safety valve of emigration was the easy way out. Although we are in difficult recessionary times it is unrealistic and strategically wrong to suggest that the only future for our young people is the emigrant ship. I reject that. I have fought all my life to prevent emigration and I will continue to do so.
While short-term measures such as job-sharing and a shorter working week may prove helpful, we should plan for the elimination of the problem in the long-term. I accept that some successful experiments were carried out in Aer Rianta in job-sharing and staggered working hours, but we must plan for the future. I hope that the strategy behind the budget is to create new thinking to pave the way for a new national economic development programme and a job creation programme.
I regret to say that the State agencies which in the past made a notable contribution to job creation — I am thinking of the IDA and the Shannon Free Airport Development Company — are not succeeding in their strategy to attract foreign industrialists. The real problem we face in relation to job creation is that the flow of foreign industrial investment has slowed to a trickle. The countries from which those industrialists came, such as the US, West Germany and Holland, are all experiencing economic difficulties. Those countries have to deal with unemployment, redundancies and massive upheavals in traditional industries such as steel and textiles. In the immediate future we cannot look forward to a resumption of a flow of new industries from those countries.
We also have the appalling problem for an agricultural country that our indigenous industries, particularly our food processing industry, which have existed for more than 100 years are folding up. In my constituency we have lost Ranks flour mills and the Erin Foods subsidiary company, Matterson's, is facing closure. Golden Vale Engineering, a company catering for the finest agricultural region in Europe, the Golden Vale, is also in difficulty and 157 jobs were lost there ten days ago. Fastnet Foods in west Cork has gone and the Erin Foods subsidiary in Midleton and the sugar factory in Tuam are in difficulty.
The latest information I have from a reliable source is that there are 300 factories in trouble at present, only marginally surviving. In 1980 a total of 89 factories closed and that figure rose to 94 in 1981. I understand that the figure for 1982 will be between 90 and 100. Where do we go from here? There has been a slow-down in the amount of foreign investment and the IDA are facing enormous competition in their efforts to attract foreign industrialists from the UK, European countries and Third World countries. What are the prospects? How will the budget help to deal with the problem? Will it save the remaining indigenous food processing industries? When the history of the State is written one thing that will be highlighted will be that as a country with the finest agricultural land in Western Europe and blessed with climatic conditions conducive to agricultural production we have permitted our food processing industry to fail. We are importing food products to the tune of £800 million per annum and I understand that we even import such ordinary vegetables as carrots and peas to the tune of £40 million. I have been informed that potatoes produced in Norway are being sold here. We must face those blunt and harsh facts. Since I was elected to this House I have referred to those problems in the course of each budget debate. Our greatest failure is that we have not realised the potential of our greatest resource, our land. The proof of that is that in the Shannon Industrial Estate, of which I am very proud and where many thousands of my constituents earn their living, there is not an industry processing the produce of the rich hinterland.
We must tackle the unemployment problem. During the past 20 years we concentrated on encouraging foreign investment and the IDA did a great job. When I was appointed Minister for the Gaeltacht in 1973 I was told it was impossible to bring industry to the Aran Islands, Connemara, west Mayo or Donegal because nothing was conducive to the development of industry there. However, when we examined the problem we realised the huge resources of the sea coast. We discovered that fish was not being canned anywhere and that all canned fish was imported. Some enterprising people in Burtonport had the idea of establishing a cannery there in 1975. I was responsible for sanctioning the investment for almost £0.75 million of State funds in that enterprise and it has been enormously successful. It resulted in import substitution, of which we now hear so much, and also generated new exports.
This country is cursed with theorists and we find many economists putting forward ideas and engaging in academic discussions on radio and television. Most of them never created a single job and would not know how to do so. We must examine the areas of potential. We must develop a dynamic national policy for agriculture which could create 100,000 new jobs over the next five years in both food processing and agriculture. We must ensure the maximum added value before our products are exported.
The failure to develop our fishing industry is the greatest national scandal since we got our freedom in this part of Ireland. The fishing industry is producing only a fraction of 1 per cent of its potential. One sees in continental ports truck loads of finished products with the maximum added value being taken to markets in Paris and other large centres.
Our tourist industry also has great potential but we need a completely new policy. The amount of money expended annually by Irish tourists going abroad is now equivalent to earnings from tourists coming here. The question of cost competitiveness is crucial.
We need a dynamic new policy to encourage the development of indigenous industry, with agriculture offering the greatest number of possibilities. We have enormous resources in agriculture, as well as great expertise and first-class advisory service. We have farmers who will respond if given the opportunity of working in the framework of a long-term development policy. Unfortunately, when they responded in the past there was usually some change in policy. We must now restore the confidence of farmers.
We should make the maximum investment in research and development of food technology. There are many internationally recognised scientists in our food technology sector. We must also utilise the potential of the co-operative movement which has been so successful in the dairy sector. I see no hope of generating the necessary degree of new employment except through the development of our resources. Our cost competitiveness has been eroded to a frightening degree. This is shown very clearly in the most recent OECD and EEC publications, as well as documents produced by the NBST and the CII.
There is scope for the expansion of exports. It has become fashionable to say that because of the international recession the possibility of generating exports is very limited. I reject that. In 1982 Ireland's share of foreign trade was 0.492 per cent of world trade. To increase that by a fraction of a percentage point would make an enormous difference and it should not be beyond the bounds of possibility.
I am very concerned with the effects on the hotel and tourist industry of the increase in VAT. Some way will have to be found to ensure that the tourist industry is enabled to ride out present difficulties.
As well as cost competitiveness, which is related to unit costs and wage costs, there is scope for improvement in the design, packaging and marketing of products. There is also scope for the development of identifiably Irish products which will be associated with this country in the same way as watchmaking is associated with Switzerland. There is need for brand image development particularly in the food processing area.
There must be much closer contact between our academic institutions, particularly our third level institutions, universities and colleges of technology. There must be much closer inter-relationship between scientists, technologists, engineers, pharmacists and so forth in those universities and manufacturing industry and with research and development. It is worth recalling that very often when some person invents something new he is laughed at. I recall Professor Timoney, who came to me in 1974 and said he had designed a new armoured carrier, was laughed at. However, he decided to locate a factory in the Meath Gaeltacht and he was assisted. I understand this has been a highly successful industry and some of those vehicles have been exported to European countries. There is need for research and development and the encouragement of entrepreneurship. In the National Institute for Higher Education there is a great example of what can be done by a much better inter-relationship between the academic institutions, the practical manufacturing, research and development. The close relationship between the National Institute for Higher Education at Limerick and the Shannon Free Airport Development Company has led to the creation of a considerable number of small industries in that region. Because of the availability of the faculties and the expertise of the NIHE, particularly in the field of electronics, the mid-west region has been able to attract major international firms to locate there.
All the resources available to us must be directed towards tackling the enormous problem of unemployment and job creation. This must be the basic objective of national policy. We must face up to the challenge of creating employment for the youngest labour force and the youngest population in western Europe. Let us not talk about the safety valves, the soft options and other things like that. We must tackle this problem. If the resources and the expertise of the IDA, the Shannon Development Company, the Agricultural Institute, ACOT and the universities can be channelled into a coherent development policy directed to agriculture, food processing, fishery development, fish processing with the ultimate aim of having the maximum value put to the basic raw materials in the country, we can develop exports.
There is enormous goodwill for this country, particularly in Europe. That is the one thing all my colleagues, irrespective of party, have found. There is potential for penetrating the markets particularly for good quality food products, fish products, and there is enormous potential for developing tourism in Europe. I believe Europe offers the best possibility for tourist development. I believe the Telesis Report, an examination and analysis of the Industrial Development Authority, clearly highlighted the areas I have been referring to, such as food processing, agriculture and fishing. There is need for a reorientation of the whole economic strategy into those areas to develop our natural resources. I am convinced the IDA can do it.
If we continue with the present strategy I believe we will not have any results. I hope the financial strategy which has formed the basis of the budget will succeed in laying the foundation for a new radical, enlightened, innovative and enterprising national economic development policy directed to the real resources of the country where the potential for job creation is greatest. If the budget can achieve the twin objectives of securing financial rectitude and job creation it will have succeeded. The acid test of success or failure of any budget is its success or failure in generating new economic activity and job creation.