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Dáil Éireann debate -
Thursday, 1 Jun 1978

Vol. 307 No. 3

Vote 42: Labour (Resumed) .

Debate resumed on the following motion:
That a sum not exceeding £27,355,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1978, for the salaries and expenses of the Office of the Minister for Labour, including certain services administered by that Office, and for payment of certain grants-in-aid.
—(Minister for Labour.)

: In the short few minutes available to me last Thursday I did thank those who had contributed to the debate. I will obviously not be able to cover in my reply many of the points made but I assure the Deputies that all the points raised will be duly considered by me.

Much play was made by some speakers about the employment and job creation programmes of the Government. I want to say very emphatically that the result of the job creation programme undertaken by the Government is spectacular. Our proposals were twofold. There was the direct employment creation in the public sector and the budget and tax measures designed to stimulate employment in the private sector, with the private sector, I am glad to say, meeting the demands of the Government to expand employment and make jobs available. The latest CII-ESRI economic trends indicate an increase in every aspect of economic activity covered by their survey—production, home sales, exports and, of course, employment.

It is impossible at times to understand the Opposition's attitude to the progress made by the Government on the employment front. Confidence has returned with Fianna Fáil. And who would be surprised when you consider the latest reduction in the live register, almost 10,000 since January last, a reduction from around 113,000 to just over 104,000 on 19 May? The latest live register figures available are for the week ending 19 May. On that date there was a total of 104,267 on the live register or 7,772 less than on the corresponding date in 1977. During the past seven weeks there have been significant weekly decreases, with an average weekly decrease of approximately 950. During the same period in 1977 the average weekly decrease was less than 500. On that basis it is reasonable to assume that between now and the end of September the number on the live register will fall by at least the same number as it did in the corresponding period in 1977, a figure of approximately 7,200. This would indicate a live register figure significantly below 100,000 during the next few months. At that stage unemployment will have fallen below 100,000 for the first time since January 1975. The most dramatic feature has been the consistent increase in the year to year reduction since last summer. At the beginning of July 1977 the reduction in the live register was less than 1,000. Now it has grown to almost 8,000.

The monthly index of employees in the building and construction industry in the private sector, which covers firms with more than five persons engaged, has shown to date an upward trend during 1978. The latest index for March, far from the usual seasonal peak, shows an increase of over 4 per cent on the July 1977 figure which would, of course, be the month very near, if not into, the period of the seasonal peak.

It should also be noted that confidence in the economy is widespread at the present time, a confidence of which all Deputies, particularly Deputies on this side of the House are aware, and that confidence is amply illustrated in the inquiries from people interested in starting their own businesses or developing existing businesses. There has been a decidedly upward trend in that respect in recent months. This is mainly a result of a return of confidence. Any of the institutions of the State concerned will bear out my words. The financial institutions are having the same experience regarding inquiries being made.

Under the system of collective responsibility which has always been a feature of Fianna Fáil in Government, the main target, the prime commitment, is the creation of jobs and the reductions of the unemployment figures. I referred to the CII-ESRI survey which shows the production increase is holding at about 11 per cent. There is no reason to revise the figure of an increase in employment of 10,000 in the manufacturing sector given after the February survey.

As Deputies are aware, it is expected that the Green Paper will be issued in the near future and additional new measures to improve the employment position will be included therein. During the debate the employment incentive scheme was referred to at length by some Deputies and referred to by quite a number of Deputies. In typical Opposition style they tried to create divisions between Ministers and tried to put words in some Ministers' mouths, or inferences which were never intended. This scheme has been successful to a large extent.

: Is the Minister talking about the Coalition scheme? Would the Minister be gracious for once?

: We would get on much better if Deputy Mitchell did not interrupt.

: I was referring to the employment incentive scheme. I am glad Deputy Mitchell interrupted me because I will now proceed to give Deputy Mitchell some eye-opening figures. A scheme was introduced in 1977 and, as Opposition spokesman at that time, in the interests of employment creation, I asked to have it extended to include the real areas where jobs could be created especially for our young people. I will now give Deputy Mitchell some figures.

The scheme was initiated on 28 February 1977 and from then until July, 17 employers availed of it in respect of 48 employees, and the payment made was £14,500. In 1978 there was a return of confidence. The climate then was different from the climate when the Coalition Government were gradually crashing on the rocks. Whereas in 1977 the number of employees was 48, in an approximately similar period, from 1 January to 19 May 1978, the number was 3,080. Instead of 17 employers, we had 548 availing of the scheme and instead of a payment of £14,500 we had a payment of £1,134,000. It is no harm to put that on the record. The total payment for nine months in 1977 was £800,000.

My colleague made certain references to this scheme. Despite the progress made I am disappointed, too, at the number of employers who availed of it. In addition to the manufacturing industry and the agricultural industry, it now applies to the hotel and catering industry, the service industries and the building sector. I want to appeal to other employers, in the interests of creating jobs and giving young people job opportunities, to avail of the scheme to a greater extent. I am hoping at the Council of Ministers meeting in June—not least because of pressure from us in recent times—there will be serious discussions at last on the provision of employment aids under the social fund scheme.

I heard a lot of unwarranted criticism of the Employment Action Team during the course of this debate. These are a group of dedicated people, all busy in their various fields, giving up their time voluntarily to participate in the national effort at job creation. This is the first time trade union representatives, employer representatives, youth organisations, local authorities, the Government and others have sat down together to help in the task of providing jobs for Irish people.

They met the target set by me with great speed, that is, to propose to the Government areas where 5,000 jobs could be provided for young people in line with our election manifesto. Within two months of that team being established, they had identified areas with a potential for more than 4,900 jobs. At present they are studying a further five proposals which I hope to have soon. This team have done an excellent job. They have given freely of their time. They have worked hard. It is not becoming for Opposition Deputies to level criticisms at such a hard-working group working in a very difficult area.

The Government took office with a commitment to tackle unemployment which the Coalition had ignored. They refused to face it and eventually they were run out of office as a result, with the same disgrace as their inter-party predecessors. I have been so impressed with the dedication and co-operation of the organisations represented on the Employment Action Team, and the individuals concerned, that I am confident there is a need for a permanent advisory body on youth employment. I am examining the team in that context.

In my introductory speech I referred to the proposals for the implementation of the work experience programme at present being worked out by the National Manpower Service in consultation with appropriate agencies. I wish to place on record that the new subhead in the Estimate may have to cover certain types of expenditure in connection with the programme other than the allowances to the young persons participating in the programme. The final details have not yet been agreed, but the subhead makes provision for the full financial requirements envisaged. While details of the programme are being finalised at present, as I said in my opening speech, it is proposed to have a number of pilot schemes in operation by July. Arrangements are expected to be completed in time to enable 3,000 places to be provided in the programme by the end of this year.

At present work experience is very valuable for young people seeking employment. Every Deputy will be aware of the difficulties facing young people who have not had work experience when they face an interview. The benefits of work experience will then be seen. Training and skills, as they have been provided, have proved how much easier it is to place people with a certain amount of experience and training than it is to place those who have come green from schools and have no such training or experience.

This scheme should play a valuable part and the Employment Action Team deserve our thanks for having introduced it as it is in line with some of the schemes already introduced in other European countries and is operating with reasonable success.

In line with the Employment Action Team and with regard to Deputy Mitchell's remarks on the survey in Ballyfermot, employment on this scheme was never presented as other than short term. The survey has of course a two-fold purpose. In addition to the importance of this type of employment, short term though it may be, in giving valuable and very worth-while work experience to participants, it also has the purpose of gathering information on labour availability which would otherwise be unattainable. Furthermore, it will not only give short term employment and experience to the young people referred to; it will also indicate whether similar surveys in other areas can fill important gaps in our information.

Deputy J. Ryan and other Deputies referred to the necessity for an overall manpower policy. For that proper type of manpower policy information of the type gathered by this survey is invaluable. The National Manpower Service was referred to, and one of my first moves as Minister was to increase the strength of the National Manpower Service. Some speakers here referred to the necessity for extra staff personnel. They were right. I often said when in Opposition that at a time of high unemployment it was necessary that the manpower service should be at reasonable strength to cope with what is for them an extremely difficult task. As a result of interviews carried out I am happy to say that 30 people are being recruited who will increase substantially the strength of the National Manpower Service. I have a high regard for the standard of the people involved in the National Manpower Service. I have visited many of their offices throughout the country and I was amazed to hear that I was the first Minister to visit their office at O'Connell Bridge House.

A self-service innovation was introduced on an experimental basis in the Dublin office of the National Manpower Service last week. The self service consists of displaying information on vacancies in such a manner that they may be studied by job seekers and these job seekers make their own choice and are then put in touch with the employer concerned. This service commenced on 22 May and during the first week about 1,000 people examined the list of vacancies on display. This was encouraging for the National Manpower people and for those who innovated this system. The number of people who were sent for interview as a result of it was 237 in the first week. It is known that 51 placements in jobs have been made so far and a large number of employers have failed to convey their decision to the National Manpower Service. The activities of the past week in this regard exceeded all expectations. Already the facilities provided there have been found to require expansion, and arrangements are being made urgently to have additional staff, equipment and funds made available to cope with the demands. The main purpose of this self-service is to speed up the filling of vacancies and to reduce the cost of doing so. We are continuing of course to do this with our normal placement and interview facilities, including advice and guidance for people who fail to find vacancies to suit them on this manpower list.

Many references were made to industrial relations during the course of this debate. Deputy Kerrigan referred to the importance of the personnel function and Deputy O'Brien mentioned the role of the personnel officer. The personnel function has now assumed too much importance to be regarded in a negative light. Recently, at the annual conference of the Institute of Personnel Management, I pointed out that personnel managers must, among other things, have the trust and confidence of those with whom they have to work at both management and shop floor level. The means are available to those who wish to foster good industrial relations. All that is required is the will. I repeat what I have often said: that in our most successful industries, where the vast majority of Irish workers and most Irish industry move along happily every day without any difficulties, you will find that emphasis and importance has been placed on the personnel function.

Deputy Ahern mentioned the rights commissioner service. This was set up in 1970 as a result of the 1969 Act. It is a voluntary service and at present seems to be acceptable in that voluntary form. The Commission of Industrial Relations had their first meeting on Tuesday of this week. They no doubt, in line with their examination of the Labour Court and its functions, will obviously be looking at areas which include the operation of the rights commissioners. I am hoping to have an interim report on the Labour Court which will cover all the ancillaries concerned.

A number of Deputies mentioned lightning and unofficial strikes. This is a major area of concern because of the extreme difficulty caused for the fellow-workers of the strikers and also perhaps for industry and for the community. The trade union movement need the support of their members. Official and agreed procedures should be used to the full in times of dispute. Unofficial action by one person or by a group of individuals can be detrimental to all the institutions concerned—to industry, to the country and to the trade union whose members take this action. The number of man-days lost through official strikes is a substantial percentage of the total number of man-days lost. The number of unofficial strikes is substantially greater than the number of official strikes.

Deputy Kerrigan referred to the grant to the Irish Congress of Trade Unions. This grant was about £29,850 immediately prior to the Department of Labour taking responsibility for it in 1973-74, but it has been increasing since then and this year it is £193,000. I am aware of the excellent work the ICTU are doing through their educational and advisory services for the trade union movement and I am endeavouring to ensure that the basis of the grant is the most advantageous that can be obtained, having due regard to the availability of funds from the Exchequer.

The Labour Court was referred to by some Deputies, as was the role of the Minister for Labour in this context. The Minister has functions in relation to industrial relations, manpower policy, industrial training, worker protection, conditions of employment, the occupation, safety and health welfare of workers and the creation of employment opportunities. In so far as industrial relations are concerned the Minister for Labour can only encourage a more positive approach. He cannot insist on both sides of industry living in perpetual harmony. However, although neither I nor any other Minister can compel them to come together and settle their dispute if they are not so inclined, it is the job of the Minister, in consultation with employer and trade union interests, to try to bring about a climate which will not be conducive to strife. The Industrial Relations Commission I referred to are a positive contribution in this area. They are representative of the practitioners on both sides, people with very valuable and very valued experience, in addition to a number of independent persons with expertise in that field. That commission can make a worth-while contribution to the future of our industrial relations.

The question of apprentices and their release for educational purposes was referred to also, and some Deputies referred to problems in this regard and to the need for better liaison between AnCO and the education authorities. Apprentices attending AnCO training centres are given instruction in the manual, diagnostic and planning skills that are necessary and are given also by AnCO instructors essential craft knowledge. The apprentices are released to the vocational schools and to the regional technical colleges where they are taught the additional theoretical knowledge that is required in such subjects as technical drawing, mathematics, craft calculations and general education. When AnCO published their plans for the new apprenticeship system in 1976, following extensive consultations with the Department of Education, it was envisaged that release for the education input to apprenticeship would be on the basis of at least one day per week or the equivalent for the academic year in the first three years of apprenticeship. That is the basis on which AnCO have operated since September 1976. Following some controversy recently about arrangements for the release of AnCO first-year apprentices into the education system, the matter is now being reviewed in discussions which are in progress between officials of my Department, the Department of Education and AnCO with a view to overcoming the problems that have arisen. Certain proposals have emerged from these discussions and these are now being considered by AnCO and by the Department of Education. Proposals for a more formal liaison mechanism between AnCO and educational interests at both national and local level are being examined also in the course of the discussions and I am confident that satisfactory arrangements can be worked out.

Some Deputies referred to a scarcity of skills, particularly in the building industry. From my constituency experience I am aware that this situation is creating difficulties in some areas. There is a substantial increase in the training of apprentices and in the retraining carried out by AnCO during the current year. There was criticism of AnCO from some Deputies with regard to one industry but I wish to repeat that the primary responsibility for training rests with the industry concerned. AnCO have contributed to an immense development in training, to updating skills and they will continue to do so on an expanding scale. The provision of the finance as shown in the Estimate is an indication of the Government's further commitment to the Industrial Training Authority which was established in 1967 by the man who is now our President.

There was reference, too, to emigration. Deputy Mitchell referred in a loose type of manner to this question and he quoted from a publication in this regard. I should like to put on the record the situation regarding emigration. In order to belie those who tried to imply otherwise, Fianna Fáil brought emigration to an end in 1971. In the few years up to 1976 there was net immigration but the Coalition reversed that situation. In the period March 1976 to February 1977 the recorded figure for emigration was 6,700, the first record of emigration from 1971. It has been Fianna Fáil policy always that nobody should have to emigrate because of economic necessity and the policy of this Government will be to provide work for anybody who wishes to work here. This will be our continued commitment.

: Has the Minister got the figures for this year?

: They are not available yet.

: They are about three times last year's figure.

: The National Manpower Service was referred to also, and there are a few further points I should like to make in that regard. Deputy Fergus O'Brien referred to the system in other countries where, he suggested, there is greater liaison between national manpower services and employment exchanges. The Deputy can rest assured that a similar system operates here regarding those people who refuse jobs from the National Manpower Service. I take the Deputy's point, especially as there is criticism from time to time regarding people who refuse to take employment. Anyone who comes to the notice of the National Manpower Service for offences of this kind is notified immediately to the Department of Social Welfare.

A number of Deputies spoke about the career leaflets of the National Manpower Service. Generally, these references were made in a very laudatory manner, but someone asked about what appeared to be the small amount of money provided for this service. Deputies should understand that the provision in the Department's Estimate does not cover the printing, which is borne by the Stationery Office. In other words, there is available money other than that shown in the Estimate for the purpose of the production of career leaflets. The printing is covered by the Stationery Office.

While all the leaflets have been produced for the major careers, I will be continuing to contemplate the up-dating of leaflets so that we may fill any gap that exists in the existing series in the area of new careers and so on. I assure the House that this much-praised service will be considered and developed further during my term of office. As I said in my opening comments, extra assistance by way of visual aids has been provided since I assumed office.

Deputy Ryan referred to manpower information and to the OECD Report on Manpower Policy in Ireland. I accept the necessity for a coherent manpower policy in achieving our economic objectives and the need for adequate labour market information as a basis for implementing this policy. The recent White Paper on national development indicated the Government's concern to develop the separate elements in a comprehensive manpower policy.

As I said in the Estimate speech, I propose to set up and chair a manpower consultative committee at an early date. The Deputy said that our present manpower information sources and data are seriously inadequate. I would draw his attention to the recently introduced labour force surveys which are carried out every two years, to the school leavers' surveys which have been carried out annually by my Department since 1974 and to the labour availability survey now in progress in Ballyfermot, which, hopefully, will be extended to other areas as a result of experience there. All these projects provide valuable data on labour availability and the labour market in general. I accept that more information and research are required. This is a question I am looking at and it might be considered by the manpower consultative committee at an early date.

Deputy Ryan referred to the need for further initiatives in the field of worker participation. In addition to implementing the Worker Participation Act I also intend to consider the possibility of publishing a discussion paper setting out the general position of worker participation. The document I have in mind will attempt to set the framework whereby an informed public debate on this issue could be conducted. In addition to providing background information, it would hopefully help to focus debate on the key issues as well as outlining alternative approaches and possibly policy options. It should also afford our social partners an opportunity to give their considered views and opinions.

Another Deputy raised the question of the employment of Irish nationals on offshore work. The House will be glad to learn that the National Manpower Service are deeply involved in the provision of workers for offshore work, primarily to enable Irish nationals to be employed to the greatest possible extent. The NMS have set up a register of people available for such work and they keep in regular contact with the offshore operators to use Irish workers to the greatest extent practicable. We will continue to follow up this issue. The safety, health and welfare of workers was also referred to. I do not want to go into that in detail this evening. We have passed the Second Stage of a Bill which will fill a big gap in our legislation. I also referred in my opening speech to my intentions in that respect and what I want to see done in the field of safety. We have a creditable record but we must always strive for further improvements and even better performance in the future.

The equality agency was referred to. Some Deputy referred in a derogatory way to the inadequacy of the money provided. I want to put it on the record that the Employment Equality Agency—an agency I supported completely when I was Opposition spokesman for our party—was set up urgently in the period between 18 June and 5 July last year. The significance of that period will strike all intelligent Members. That agency was set up, but no staff or money were provided—that was left for the new Minister. I wanted to put that on record to let it be known to the House that my party's commitment in that respect has been complete and that our record has been good.

Vote put and agreed to.
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