asked the Minister for Industry and Commerce the number of new jobs created by the IDA in the years 1983, 1984 and 1985; the annual job targets for each of those years; the policy of the IDA in setting job targets; if the system of forecasting job targets on an annual basis has been abandoned; if so, the reason; if he is satisfied with the performance of the IDA in relation to job creation; and if he will comment on the announcement by the IDA of jobs in clusters throughout the country.
Ceisteanna — Questions. Oral Answers. - IDA Job Creation.
9.
The job creation targets set by the IDA and the number of first-time jobs created by the Authority during the year 1983-85 are as follows:
|
Year |
Target |
First-time jobs created |
|
1983 |
11,000 |
11,014 |
|
1984 |
10,500 |
9,870 |
|
1985 |
10,000 |
11,000 |
The policy of the Authority in setting job target is to determine realistically the contribution which they can make to create and maintain the maximum number of sustainable jobs in manufacturing and international services in accordance with the objectives of the Government's White Paper on Industrial Policy. The IDA have not abandoned their practice of setting annual jobs targets. However, since 1982 the Authority no longer use job approvals as their primary targeting mechanism. Instead, the focus is now on job creation which provides a more immediate indication of employment prospects.
I am satisfied that the IDA are using all the means at their disposal to maximise employment creation and that they are continuously exploring new ideas which may contribute to this objective. The IDA's commitment, coupled with the policies outlined in the Government's White Paper, represent the best means of achieving optimum results in terms of sustained job creation.
It is important that the benefits deriving from the Authority's efforts to promote industrial development should be brought to the attention of the general public. In this connection, the Minister recently announced the IDA's support for 159 small industry projects which are expected to create 958 jobs at various locations throughout the country. It is entirely appropriate that this type of announcement by Ministers or the Authority should be continued.
I am glad to hear that the IDA have not abandoned their job targets. Given the objectives of the Authority to develop jobs in manufacturing industries, is the Minister satisfied that these targets can be reached? Will the Authority be able to make an inroad into the massive job creation required to deal with the huge unemployment numbers at present?
The Industrial Development Authority have a policy for achieving a net growth in manufacturing employment of between 3,000 and 6,000 jobs a year for the period up to 1994. Of course, there are other areas where job creation will occur, in the commercial and the service areas. In the United States it has been shown that the general services industries are vital in the role of job creation.
I am satisfied and confident that the targets laid down by the IDA will be achieved through the implementation of the new policies set out in the White Paper. The general environment for industrial expansion which has already gained ground in the United States and is gaining ground in Europe is also gaining ground here. With the policies of the Government to reduce inflation and with the White Paper on Industrial Policy now being implemented, I am quite confident that the IDA's targets will be reached and that we will see an industrial expansion in the years ahead.
Given low inflation, low interest rates, the fact that the international recession has held off and that there are good prospects in that respect, that the targets after three years are down to 10,000 jobs per annum whereas they were at 18,000 to 20,000 and that there are 240,000 unemployed people, has the Minister any plans to create the massive number of jobs required by means of any other policy? Is he thinking along those lines?
This is an area which is receiving attention in my Department. The IDA have responsibility for manufacturing industries. Other State bodies, such as BIM, CTT and CBF have responsibilities in their areas. I am giving particular attention, as is the Minister, Deputy Noonan, to the other areas, the commercial and service areas, with regard to job creation. We are having this subject examined in my Department. If we feel that an initiative would be of benefit, we shall not hesitate to take it.
My final question is——
A final question, please.
It is a short question. Given that there are 500 people employed by the IDA and that the target is down to 10,000 jobs a year, does the Minister think that the IDA's target is realistic and that it is not falling far short of the number required to make inroads into our high unemployment figure? We would have to get up around the 20,000 job target. In that respect, the policy might need to be looked at.
As I have stated, the IDA objectives on job targets are in relation to the manufacturing industries. In setting down the figure in the White Paper, we were anxious that it would be a realistic one which we would be satisfied could be met. It is quite clearly understood that there is need for further job creation in the other sectors of the economy to which I have already referred. The most effective way in which that could be achieved is by having the environment right for employment. We have taken many measures to ensure that the environment is right for new job creation. For instance, there is the new house improvement grant scheme. That has had a very effective and beneficial result for the construction industry — perhaps 10,000 jobs could be created there. There are schemes under other Departments which will also considerably assist in the employment drive, but the IDA targets refer only to the manufacturing industries.
Lest a false impression be given in connection with the numbers of jobs given in the Minister's reply, would he not agree that in the same period or thereabouts we lost over 34,000 jobs in the manufacturing industries? In the latter part of this answer he referred to political announcements or something of that sort which has prompted me to ask a supplementary question on the 900-odd jobs announced recently by the Minister. Is it not a fact that at least the 958 jobs in the south west had been previously announced? We were told on that same evening that the announcement with regard to the jobs in the Dublin area would be made subsequently. Is it not time that we stopped this multiplication of announcements of the same few jobs?
This is a general question, Deputy.
It is very general and my supplementary question is as general as the original one.
I think that what I have said is factual and correct. I have been careful to define the fact that the IDA are involved in industrial manufacturing job creation. I make no apology for the fact that the Minister announced the IDA proposal for 159 small industry projects throughout the country with the resultant creation of 958 jobs. Of course, we have lost employment in our manufacturing industries in recent years; the same has happened right across Europe. The Deputy may not realise that this country has gone through a very difficult economic climate and we have not yet come out of it. There is a general feeling among independent economists and commentators that there is a turn around in economics and there are certain signs of expansion in the US, European and, indeed, Irish economies. We have a job in Government to ensure that the environment not only in the manufacturing sector but in commerce and the services leads to an increase in employment in those sectors.
Ceist 10.
I have no intention of being argumentative or of contradicting the Minister in this very important area. I am sure he will agree with me that employment-unemployment is the most serious matter facing the country at present.
A question, please.
That is why I am being responsive and restrained. The Minister said we had turned the corner but, is it not a fact that we have turned so many corners by the pronouncements of this Government that one of these days the Minister and the Taoiseach will meet themselves coming back?
I am calling Question No. 10.
I am relying on independent commentators for my comments about the potential of the Irish economy.
Will the Minister please answer Question No. 10?
I do not like these irresponsible statements to go unanswered.
They are responsible.