asked the Minister for Finance if the Government have any specific proposals to reduce the number of unemployed; and if he will make a statement on the matter.
Ceisteanna—Questions Oral Answers - Unemployment Reduction.
13.
Reduction in the numbers unemployed worldwide will largely depend on international co-ordination of economic and financial policies to ensure that the present world recovery is sustained and accelerated. The Government's economic strategy involves the rigorous persuit of policies to reduce cost pressures and to improve and expand economic capacity in order to benefit in terms of employment from world recovery.
The question did not relate to the level of employment or unemployment worldwide: it related to the level of unemployment here. In this, as in other areas, the Minister is relying on outside circumstances to do for him what we should be doing for ourselves at home. Will the Minister state if the Government have any specific programme to cope with this increasing crisis at home? Have they any plans to ensure that the benovolent influences from outside can be used positively to reduce the growing number of unemployed in our own country?
I spent a few moments, a short while ago, explaining to the Deputy that I am not relying solely on growth outside the economy to bring about growth in the Irish economy during 1984. The first part of his question not only misses the point, but totally misinterprets what I have been saying to him. In fact, it appears, from what Deputy Kennedy has been saying in recent days or weeks, that it is he who seems to believe that we look to external factors for all the growth. He appears to have made some discoveries about the growth of the American economy that will gladden the hearts of many people grappling with problems over there.
As far as action within the economy is concerned, the only lasting way to reduce the numbers of unemployed is to make our economy more cost-competitive in relation to other economies, so that we can export and build on the success which we have achieved during 1983 on the export front and compete more effectively with imports of goods into our economy from elsewhere. That factor within our economy which gives rise to extra cost must be kept under control. That is the strategy and the only strategy, that will effectively bring down the level of our unemployment.
I cannot let it go without noticing that the Minister takes the view that that is the only strategy. That is another hopeless sign to people outside who are waiting for some other signals for investment and growth.
That is nonsense.
If that is the only strategy. In relation to that single strategy, is the Minister not aware that the OECD, the Central Bank and other independent observers have indicated very clearly — in stark terms, one might say — that our competitiveness has not been improved as a consequence of last year's budget strategy, on which the Minister relies so greatly to maintain the level of employment and to reduce unemployment? Nothing that he has done in this budget will change the circumstances in relation to our international competitiveness. How can he, in the light of these objectives. independent reports, claim that the main thrust to increase employment will be the improved competitiveness, vis-à-vis the other trading partners in the OECD area?
I am afraid that the Deputy cannot seem to make up his mind as to whether competitiveness is important or not.
I can, indeed.
He must be misreading the report.
We really cannot have argument during Question Time. That is not what Question Time is about.
I beg the Chair's pardon. The fact is that we secured some improvement in relative competitiveness in 1983 compared with our main trading partners, which improvement came about as a result of a number of factors, including developments in wage costs within the economy. I referred to these again during my Financial Statement.
Surely that cannot be in line with the actual level of inflation here, by comparison with that of the OECD countries in 1983? Clearly, our level of inflation did not fall at the rate at which it did in the OECD countries. That being so, how can the Minister say that we improved our competitiveness vis-à-vis our OECD partners?
Any stranger coming in here would think that we had not interrupted the budget debate and were not having Question Time, that we were carrying on the budget debate all day.
I shall limit myself to remarking that it now seems that Deputy O'Kennedy has not read the full reports. As I said, the relative improvement in the competitiveness of this country last year came about as a result of a number of factors. I was speaking of the normal measure of competitiveness used, which is the development in unit wage costs on a common currency basis.
I have a copy of the report here in front of me, of which the Minister must be aware. It is the Central Bank report and it does not agree with the Minister.
I want to ask the Minister——
A final supplementary.
Would the Minister not agree that on his own admission visions in the budget of finance for increase in unemployment very demonstrates that the Government have no strategy to reduce our unemployment?
The provision that we made in the budget was, as has been explained on a number of occasions, what we believe that we should prudently make in view of the increase of the labour force and other developments. The increase against which we are providing — which we should do in order to ensure that we provide for those who have the misfortune to become unemployed during 1984 — is considerably less than the increase in unemployment which we saw, for example, in 1982.
Could I ask——
Would the Minister please answer Question No. 14? I am sorry, Deputy.
This is the second time that the Chair has stopped me from asking a question.
I am sorry, Deputy Fitzgerald, but you appear to keep quiet until everybody else has exhausted himself and then come in. That just will not work.
This is the second time that I have been prevented from asking a question.
It is his timing.
Deputy Fitzgerald will have a whole question to himself shortly. I shall be generous with him on Supplementaries.
The subject of this question is a wide-ranging one.
You do not have to tell me that.
Put him in with the dog licences.