I thank the Leader for facilitating this important and innovative debate — it could even be termed a brainstorming session — which will prove useful and productive. The high level of unemployment is the greatest challenge facing the country. The loss of our best and brightest to emigration is impacting on nearly every family, community, club, organisation and business. Our economic recovery is dependent on getting people back to work in order that income tax can be generated to pay for the many services provided by the State, while reducing the dependency on social welfare for the majority of those who want to be gainfully employed.
The fact that we are in the worst global recession since the 1930s makes the creation of employment all the more challenging. We need to think outside the box to consider what opportunities can be exploited to create badly needed employment. It is true the Government does not create jobs, but it can create the environment in which they are created. On taking office the Taoiseach said he wanted to make Ireland the best small country in which to do business. Accordingly, the Government must focus on issues such as further improving our competitiveness, reducing bureaucracy, increasing funding from the banks which particularly affects small businesses, improving infrastructure and education and retaining the 12.5% corporation tax rate, as well as providing incentives for multinationals and indigenous companies to invest in job creation projects.
Even in the midst of the recession, some sectors of the economy are performing well. Last year exports by multinationals, particularly pharmaceutical and health care companies, were up 9%, making it the second highest figure on record. Our trade surplus in 2011 amounted to €4.3 billion, an increase of 16%. Agricultural exports now amount to €9 billion, with food exports up by 14% and dairy products by a whopping 28%. The tourism sector showed significant growth in 2011, with an increase of 7% in visitor numbers. These sectors have the potential to generate further growth and jobs. The fact that eight out of ten of the world's largest medical device and pharmaceutical companies are located in Ireland gives IDA Ireland and Enterprise Ireland a major marketing advantage in their efforts to attract foreign direct investment. Our improving competitiveness will help, but we must ensure we have in place the physical infrastructure and skilled personnel required by these companies if we are to benefit from the global economic upturn that will inevitably come in the next few years.
There is much potential to generate growth and promote job creation in the tourism sector. Ireland has a great tourism product, with the best food and hotels, for example. We will celebrate many historical events in the next five years. This year, the Eucharistic Congress will take place in Ireland and the Olympic Games in London. When tourists visit Ireland, we need to attract them throughout out the country. Travel costs are a major issue we need to address. Heavily discounted rail and bus tickets should be available for tourists on producing their airline or ferry tickets. This initiative needs to be marketed aggressively because, for example, the numbers travelling here to partake in angling activities have decreased significantly in recent years.
The construction sector caused many of our economic problems but it can help the economic recovery. The Government should consider providing a grant or tax relief for a home improvement scheme targeted at older homes to make them more energy efficient, comfortable and adapted to cater for older, less mobile people. Such a scheme would clean up some of the black economy issues because contractors engaged in this work would have to be registered and tax compliant. A significant number of jobs could be created quickly. An incentive to provide for the extension of family homes should be also considered where accommodation is provided for a family member who may be on a council housing list or in receipt of rent allowance. I suggest this because many young people will never have access to the money to finance their own homes. This should be considered for rural Ireland, in particular, where sites are larger.
We need to make it easier for people to switch from social welfare to work even on a temporary basis. Many small employers say they find it difficult to attract people to take up part-time or short-term work because of the loss of benefits they will suffer and the waiting time to reclaim benefits. It should be a simple system where one could go to an employment exchange and indicate that one worked for two days and claim for three days. This would cut out the bureaucracy and make it easy for employers to take people on a short-term basis.
The Government needs to take four actions to aid small businesses, namely, address the lack of credit provided by banks to viable businesses; reduce red tape; link the rates system to turnover or profitability; and give a financial incentive to companies to hire additional employees with a baseline of 31 December 2011. The Government should also examine the service it provides and consider if the private sector could deliver a better and more cost effective service. I suggest this against the backdrop of decreasing numbers in the public service. A good example is a home help service provided for the elderly in my area by Roscommon Home Services. Last year, it added 70 new workers because of the demand for its services.
We need to properly resource county enterprise boards. There are many unemployed people with skills and ideas who could create jobs. They are easy to access, the minimum of red tape would need to be overcome and they have a proven track record. Many successful small businesses were given a start by a county enterprise board and we should have a county by county call for ideas. A job creation supremo or ambassador should be appointed who would report to the Minister to centrally co-ordinate all employment initiatives introduced by Departments, State agencies, businesses, employers, colleges and universities. This person would link employment strategy in the private sector with training and education and the policies of the Government and State agencies. I very much welcome the debate and I hope many good ideas will evolve from it. I look forward to the Minister bringing them forward.