Michael Moynihan (Cork North West, Fianna Fail)

We welcome any initiative to provide much needed employment. However, there are several issues I wish to raise in regard to this Bill. The tourism industry has suffered severe decline in recent years and the last week has brought much needed benefit in terms of the publicity surrounding the visit of Queen Elizabeth and President Obama. We all hope it will encourage more people to travel to Ireland as well as encouraging domestic tourism. It is a labour-intensive industry and any initiative that reduces the cost base is welcome. The provisions in this Bill go some way in that regard. The body of employment law and regulation that has built up over the years must be comprehensively reviewed in order to ensure we have a streamlined tourist industry without excessive red tape and bureaucracy. The industry must be freed up to provide the hospitality for which we enjoy worldwide renown and to provide value to tourists.

The cost base in recent years was high and many people who holidayed in Britain, on the Continent and elsewhere remarked that it was far cheaper to holiday abroad. We have pulled back from that situation somewhat with reduced costs and so on. Spiralling costs in the hospitality sector were an indictment of how our society had developed. We must continue with the initiatives that have been made and press on with marketing efforts. Bord Fáilte and other tourist bodies must continuously work to promote Ireland as a good place to visit with a wealth of diverse locations and a hospitality sector that offers value for money. It is sad to see local pubs having to close because of nonsensical legislation introduced in this House and which I opposed at the time. It is vital to ensure that all these outlets, from the smallest to the largest, are open for business, have a low cost base and can offer visitors to this country an enjoyable holiday experience.

As we try to rebuild our economy following the crash one of the main aspects to consider is support for indigenous industries, the tourist industry being one of the most important as well as agriculture and others. We must ensure that any legislation we introduce supports indigenous business. There has been much discussion in this House in recent days on the fair trade legislation and the protest by farming organisations. The power of the retail multiples to drive down prices for primary producers and the practice of importing food from other countries which could be sourced at home is costing jobs. We have the ideal climate to produce an array of foods. We have a substantial green agricultural industry which must be protected at all costs. The outgoing Government introduced the Food Harvest 2020 initiative and that has been accepted by the new Government. It is important that the ambitious targets contained in that policy are met.

We must ensure the fair trade legislation that is promised is brought forward as a matter of urgency and that there is protection for producers from multiples who are interested only in reducing their bottom line. Some Members observed last night that it is producers who are carrying the cost of two-for-one offers and other incentives in supermarkets. The multiples have always hidden behind data which include their Irish sales figures within broader statistics which give little indication of the actual profits they are making in the State. Deputy Finian McGrath observed that we should not be ashamed to shop locally. We lost that during the Celtic tiger years and we must row back. We must be proud of our own produce which in the last week was showcased the world over. It is an important aspect of the export-led economy that is emerging and which will lead to more jobs in the future.

The multiples have enormous power and have starved primary producers of reasonable payment. They must be tackled. People might say it is a case of the consumer versus the primary producer. However, one need only look to the banking sector to see where we may be headed. When competition was introduced in that sector customers were offered lower rates and mortgage terms of up to 40 years. The view was that the indigenous banks were not keeping pace in this regard and there was subsequently a race to the bottom. We all know the consequences of that. If we do not impose serious safeguards and regulations in respect of the multiples in the legislation which I hope will be before the House soon, perhaps even before the summer, we could end up devastating primary producers.

In today's Irish Independent there is a call to reduce social welfare benefits in order to encourage people into the workforce. Everybody in this House would agree there is a myth, perpetrated for generations, that people on social welfare are creaming it. The reality is that the vast majority of people on welfare, including those who have lost their jobs in recent years following the economic crash, are anxious to return to work as soon as possible. The current welfare rate is barely keeping the wolf from the door for many households. In many cases individuals and families are accumulating substantial debt because they can no longer service the financial commitments they made while in regular employment. It is a nonsensical notion that reducing welfare rates will encourage people into work. The reality is that jobs must be created.

There are certainly anomalies within the social welfare system such as the disincentive to take up low paid work. Various schemes have been developed over the years and there is a need to streamline the entire system. However, there is also a need to be absolutely clear in preventing scapegoating of social welfare recipients. It is not the case that the rates are too high. The reality is that there is not sufficient employment for everyone. The first thing people who are unemployed and whom I meet at my constituency clinics and elsewhere - I am sure other Members have had similar experiences - say to me is that they want to return to gainful employment as soon as is humanly possible. I will take every opportunity to refute the nonsense contained in the OECD report with regard to cutting social welfare payments.

We have developed a good social welfare system and, by and large, catered for the needs of the vulnerable. The position of carers has been improved, as has that of people with disabilities. We must ensure we protect the gains that have been made. There are other ways to raise funds. My party bore the brunt of people's criticism when it came to balancing the books, introducing cutbacks, etc., during the past two and a half years. As a then Government backbencher, I was subjected to flak when various schemes and so forth were either cut or abolished. I accept that there are major political decisions to be taken and that there will be a major outcry about some of these. If, however, we set ourselves a target of looking out for those who are less well off or vulnerable, that will be an important development.

A number of issues have arisen in respect of the pension levy. There are serious concerns in the pensions sector with regard to what is proposed and also in respect of the methodology that has been used. There is a need to provide for clarification on both fronts. It is all very well to use words such as "hypocrisy", etc., but there is no doubt that this is a serious issue. In the past we have tried to encourage people to invest in their future and make provision for their golden years. That was a good decision on our part and it is one which other societies have not taken. It is important to continue to state people must be prudent, careful and make financial provision for their old age. As a society, we must ensure an incentive is always provided and that we remain committed to this matter. People have always saved money outside of their pension funds. For historical reasons, putting funds away for a rainy day has always been an attractive proposition. It is extremely important, therefore, that the State continue to be seen to be encouraging people to save and put money into their pension funds.

The Bill relates to the jobs initiative. We must ensure we engage in diplomatic efforts to keep various people across Europe on-side in this matter. In that context, it is important to develop good relations with various nations. However, the French have been our great allies in agricultural matters almost since we joined the then European Economic Community in 1973. It is vital, therefore, that we maintain our good relationship with the French in that regard, irrespective of whatever other issues may arise between us.

The reduction in PRSI is welcome. In that context, however, employers will always state their greatest difficulty relates to employment legislation and the bureaucracy that has developed in respect of it. I am familiar with the owner of a small restaurant who employs 12 or 13 people and is obliged to comply with a raft of regulations and so on. In addition, the individual in question must also deal with visits from health and safety and other officers. There is a need to streamline the position in this regard. One officer, rather than a plethora, should be responsible for carrying out the various visits to restaurants, etc. The position in the agriculture sector in the context of cross-compliance and other matters is similar. An almost separate industry has developed with regard to the number of checks and cross-checks that occur in compliance with regulations.

The person to whom I refer and other business people are aware of the importance of providing food that is safe. They will not, therefore, do anything to jeopardise their business. However, the notion that they must submit to the agents of Big Brother coming into their premises and checking their compliance with a huge raft of health and safety and other regulations is crazy. Business people want to ensure they are compliant. They know what is required of them under both the regulations and the law. What they do not want is to be bogged down under a pile of bureaucratic red tape. The amount of regulations in place has stifled a great deal of business.

During the lifetime of the previous Dáil the Joint Committee on Economic and Regulatory Affairs considered the amount of regulations in place and invited people from various sectors to come before it to discuss the matter. Some Departments have made a concerted effort to reduce the level of regulation that applies. In the period prior to the recent general election the Department of the Taoiseach launched a campaign to have the level reduced by 20%. Every item of legislation passed by the House from this day forward should be checked in order to estimate the bureaucratic effect it will have on various sectors. While the legislation the House may pass could be important and well intentioned, it may contain certain provisions that will have a serious effect on certain sectors and even stifle economic growth. If such legislation gives rise to the loss of one or two jobs in a particular sector, it will be bad for society as a whole. That must be borne in mind. The position is the same when it comes to agriculture. Some farmers have been beaten into the ground in complying with regulations. We must, therefore, take action in dealing with this matter in a fair and even-handed way.

People who travel to France and other countries on the Continent will state the food markets one sees on the streets are not subject to the same level of regulation as are markets in Ireland. This is despite the fact that the same regulations are meant to apply across the European Union. There is a view that we tend to go overboard when transposing European regulations into Irish law. We must ensure we protect both our people and industry by not introducing too much regulation. We must also ensure any legislation passed by the House will not jeopardise employment.

I welcome the provisions in the Bill relating to the jobs initiative. I also welcome those relating to the tourism industry. We must make a concerted effort to ensure as many people as possible holiday at home this year and that we capitalise on the publicity the country has received in the past two weeks by encouraging more tourists to come here.

As the Food Harvest 2020 report indicates, there is major potential for development in both our agriculture and fishing industries. The Government has given a commitment to meet the targets set out in the report. It is extremely important, therefore, that the promised fair trade legislation be brought before the House prior to the summer recess. The power of the multiples must be curtailed and we must not allow primary producers to be driven into the ground.

The Government and the State have made a huge commitment to the banks. However, the banks continue to stifle the extension of credit to small and medium-sized businesses. They have provided figures which indicate that they are making money available, but that is not the case. Every politician is aware that those involved in the small to medium-sized business sector are being starved of credit and that cheques are being bounced on foot of overdrafts being exceeded by €5 or €10. That is not acceptable. We are all aware of the grief caused to small to medium-sized businesses.

I strongly refute the headlines in today's edition of the Irish Independent to the effect that the rate of jobseeker's benefit should be cut in order to encourage people to return to work. That is not acceptable and pursuing such a policy would not assist us in getting people back into employment. The main aim of the vast majority of those who have been on the live register for one year or so is to return to gainful employment in order that they might reclaim their sense of self-worth and have their dignity restored. Irrespective of the rate of payment that applies, they want to return to employment. We also want to streamline payments such as family income supplement, medical cards and so forth to encourage people back into employment. I am grateful for the opportunity to have spoken on this Bill.

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