I understand there are copies so they should be circulated shortly.
My colleague, the Minister for Foreign Affairs, who has overall responsibility for emigration matters, will deal with the question of Government measures on behalf of Irish emigrants in the United States and elsewhere. I propose, therefore, to concentrate on the first two items in the motion — those calling for Government action to reduce emigration and to provide realistic funding for emigrant advisory services.
As public representatives all of us must be concerned about a situation where people who are unable to find work here — or if they have jobs but for some other reason, such as personal taxation — feel obliged to seek employment elsewhere. I fully understand and share the genuine concerns of the Members who have already spoken to this motion.
As a member of the Government I can assure them that we are equally concerned about recent trends in emigration. I can also assure them of the Government's determination to come to grips with the situation and of our total commitment to redoubling our efforts directed at stimulating and accelerating the job-creation process so as to reduce the pressures which force people to look for work abroad.
With 22,000 people registered as unemployed and a potential for growth in the labour force of about 25,000 every year this is a formidable task. Even if we had the resources it would be very shortsighted of the Government to indulge in a free-spending spree of relief schemes merely to keep people off the live register. We must also avoid the temptation of treating the symptom instead of the disease simply because we find the cure unpalatable or unpopular.
The hard fact that must be faced is that the one and only effective solution to involuntary emigration is to create the right conditions at home in terms of job opportunities, personal tax levels, career prospects and quality of life which will attract and absorb the annual outflows from the education sector and those on the live register. This is a monumental task and there are no easy options or quick-fix solutions.
Of course, we should not allow ourselves to be overawed or intimidated by such a challenge. Indeed, the Government's record clearly shows that not only are we facing this challenge head-on but that our efforts over the last few years to revitalise the economy and to maximise employment growth and job opportunities are now beginning to bear fruit.
All the economic indicators clearly vindicate the Government's macro-economic strategy, as set out in the Programme for National Recovery. The cornerstone of that strategy is the twin objectives of correcting the imbalances in the public finances and restoring and strengthening the competitiveness of the economy. Only in this way is it possible to lay the foundations for strong, organic and self-sustaining growth in national output and job creation.
Because of the resolute action taken by the Government order has been restored to the public finances. Exchequer borrowing has been brought under effective control and we are on target to reducing it to manageable levels. GNP has been rising rapidly and as a recent EC Commission report now confirms we have one of the fastest growth rates in the Community. Exports are hitting all-time records and independent commentators and experts are forecasting sustained, robust economic growth for the foreseeable future. Inflation and interest rates are well below those of some of our largest trading partners and industry's order books and expectations are continuing at a high level.
In summary, the Government, through careful and courageous policy measures, are succeeding in creating the most favourable climate and conditions to maintain the momentum of economic development and for embarking on the second phase of their overall strategy for accelerating the job creation process.
The creation of new jobs is the primary objective of the Programme for National Recovery. That programme has lowered Exchequer borrowing so that interest rates have been cut; has reduced inflation; brought about moderate pay settlements; improved the competitiveness of the economy generally, which has boosted the value of exports by close to 40 per cent and industrial production by over 25 per cent in the past two years; and has enabled personal tax rates to be reduced. All of these developments have been designed to create the conditions in which new jobs could be created and existing jobs maintained.
The programme, and the resurgence of economic activity with which it has been associated, has brought about a transformation of our employment performance. Whereas between 1980 and 1986 there was a net loss of jobs in the economy of between 70,000 and 80,000, the latest Central Statistics Office estimates show that in the two years to last April, total employment grew by 10,000. These estimates, taking into account variations in numbers on special employment schemes, indicate that, in each of the two most recent 12 month periods for which figures are available, there was a growth in employment of around 5,000. This compares with a projected annual rate of increase in the optimistic scenario presented by the NESC in Strategy for Development, which had the support of all the social partners, of only 3,500. In fact, the number at work in April 1989 was similar to NESC's projection for next year.
The growth in employment over the past two years, moreover, took place against the background of retrenchment in the public sector. Allowing for the necessary reduction in the public sector — a course of action which had wide agreement in this House — the latest Labour Force Survey points to a substantial net increase, of the order of 35,000, in the number of private non-farm jobs in the period since the programme strategy was put in place. This is, by any standards, a remarkable out-turn. It shows, that the policy measures taken, allied with the responsible actions of the parties to the programme, have stimulated job-creation and helped preserve viable jobs. In this regard, the 40 per cent reduction in redundancies in the first three quarters of 1989 is a most encouraging trend. The more recent indicators of employment are uniformly favourable, suggesting further progress on employment since the survey. In the second quarter of this year, the number of manufacturing jobs rose by 1,200 — after allowing for the normal seasonal pick-up — on top of the 6,000 gain in the previous 12 months. Building and construction employment is advancing strongly, as borne out by the 11 per cent increase in the index for September.
The extent of the recovery in autonomous employment over the past few years has been masked by the impact of the measures necessary to restore stable public finances and create an environment for growth, but these difficult decisions are now clearly bearing fruit. As the contraction in the public sector becomes less acute, this dramatic growth in self-sustaining jobs should be increasingly reflected in overall employment performance. Independent assessments bear out the Government's view that, if we stick to the responsible course followed in the past few years and avoid actions which would damage our international competitiveness, we can build substantially on this progress in the period ahead.
Another indication of the improving employment situation is the reduction in the live register of unemployed. That total is now at its lowest level for five years and is now over 32,000 lower than two-and-a-half-years ago. These positive trends demonstrate clearly that the Government policies are working to create more jobs and reduce unemployment. These trends will accelerate and will inevitably reduce the rate of involuntary emigration, particularly when allowance is made for the impact next year of additional resources from the Community's Structural Funds, under the National Development Plan.
Although employment trends and prospects are now the most favourable for decades, there can be no room for complacency and I can assure the House that there is no relaxation of the Government's efforts to expand employment. Towards this end a special Ministerial Committee on Employment was established by the Government earlier this year. The committee comprises the Ministers for Education, Environment, Industry and Commerce and Social Welfare and is chaired by me. Its remit is to consider and bring forward proposals for increasing employment and reducing unemployment.
Deputies will already be aware of the package of employment measures which I announced recently which were based on the committee's recommendations. The committee are actively considering a wide range of possible initiatives with a view to putting further recommendations to the Government.
Despite the most favourable outcome of all these initiatives it is obvious that there will be a sizeable imbalance between labour supply and demand for many years yet. The ESRI, and other agencies, suggest that emigration will continue for the foreseeable future but at a declining rate.
The Government's view is that as long as significant numbers are interested in seeking work abroad they are entitled to receive the best possible information and advice to enable them to make an informed choice and to make a satisfactory and successful transition to the destination of their choice. Indeed, under the EC regulations on free movement of workers we are obliged to provide information and advisory services in line with the Community's policy to promote labour mobility.
I have always held the view that all aspiring emigrants should first be appraised of the employment and training opportunities available to them at home before deciding to emigrate. I believe that FÁS are in the best position, through their national network of offices, to outline the various options open to them. I also believe that the best prospects lie in ensuring that FÁS are equipped to provide a reliable full-time facility with uniform standards of service throughout the country rather than putting resources into voluntary organisations most of whose services are only part-time and the quality of which can vary considerably depending on the level of voluntary effort and the commitment or otherwise of the people involved. My objective is to see that FÁS services to the public are developed to the highest standards, in line with the resources available to them.
In order to remove any doubts about FÁS's role and responsibilities in that respect I issued a set of guidelines to FÁS in June this year setting out clearly their functions and duties in relation to services for persons interested in employment abroad. The guidelines are based on the principles of discouragement of unplanned and unprepared emigration and the need for national policy to be supportive of EC policy to facilitate free movement of workers. Essentially, what is involved is putting in place organised pre-departure advisory services for persons considering job-opportunities in the EC and who are properly prepared for such a move while, at the same time, discouraging those who are ill-prepared, illequipped, immature or who appear to be vulnerable or at risk.
I have instructed FÁS to ensure EC vacancy notices are displayed in FÁS offices and that notices should be displayed advising job-seekers that information supplied under the EC sponsored SEDOC vacancy-exchange system is available on request.
I have also suggested that liaison between FÁS and the employment services in the main destination countries should be developed by means of bilateral contacts and that, in co-operation with other relevant agencies, FÁS should assist Irish nationals abroad wishing to return to work here or to set up business at home. FÁS have recently reviewed their services for intending emigrants and are in the process of developing them further.
It is clear that those for whom emigration poses the greatest danger are the young, unskilled, early school leavers. Here there is a double problem; we must try to dissuade such persons from emigrating and we must try to persuade them to participate in further education and training so as to acquire skills which will enable them to earn a living. For many, their experience of the formal education system has been an unhappy one.
In January last, with my colleague, the Minister for Education, I launched the Youthreach programme. This is an imaginative and major intervention. It provides unqualified early school leavers who fail to find employment with up to two years further education and training. The programmes are innovative and flexible, enabling them to be tailored to suit individual needs. An allowance is paid during the entire period. It is our hope that this action, together with the withdrawal by the British authorities of unemployment assistance from young people, will result in unqualified persons under the age of 18 opting to remain at home instead of risking emigration.
DÍON has been referred to by a number of speakers. A small percentage of Irish people who emigrate do get into difficulties — often, I must say because of lack of proper preparation beforehand. On the advice of DÍON, the British based committee which is chaired by the Labour Attache at the London Embassy and advises me on welfare matters in relation to Irish workers in Britain, I am making available grants totalling £500,000 this year, to non-statutory organisations providing emergency help and advice to Irish people in Britain. This is a 100 per cent increase on the 1988 grant and a 320 per cent on the 1986 figure. The dramatic increase in the DÍON grants has been achieved against the background of a very difficult budgetary situation and represents an earnest of the Government's concern for our less fortunate emigrants. In the near future I hope to be able to announce the final list of grants for this year and to be briefed fully by DÍON on the up-to-date position on the needs of emigrants to Britain and their likely financial needs for 1990.
A number of Deputies asked about continuing to assist DÍON in 1990. Deputies will be aware that the Book of Estimates will be published shortly. I should like to tell them that it is our intention to try to maintain existing services. Members will have met representatives of the DÍON committee on their visits here. They have not yet prepared their programme for 1990 but I discussed this matter with them two weeks ago when I met them in London and toured some of the centres that are in difficulty. They received money from groups here and have considered how they can work with local authorities in various boroughs in London, and elsewhere, to try to raise more money for centres, hostels and so on. Primarily they are anxious that we should fund their full-time social workers, welfare workers and those who are working on the streets in a number of areas in London. We are anxious to continue to work with them.
Through FÁS we have done some physical work on the centres such as that in Camden Town. There are two areas about which we must be careful. In the debate tonight we are dealing with the young Irish people who emigrate but we must also consider the need of older Irish people to use the facilities that the centres have on offer. DÍON, and the Government, are anxious to continue to help those people. We want to revitalise the centres. The vast majority of the £500,000 allocated this year to DÍON will go directly to welfare workers, social workers and those who work on the streets. In their programme for 1990, which I will discuss with them some time in early December, we will attempt to gain for them any assistance they require. Also this year they are involved in a fairly large research project. So many reports are available now that often contradict one another that DÍON are anxious to try to get a definitive programme to see exactly where the problems lie and how best they can match the funds they get themselves, from voluntary subscriptions and from the Irish Government, with money in local authorities.
There are a number of excellent housing projects, some of which Deputy Deenihan mentioned. CARA was one which has been very successful in using some of the money from Irish organisations and matching that to get considerable funds from the local authorities. I think it is true to say DÍON do not want the Irish Government to become involved directly in supplying hostel accommodation, though certainly they want the staff, the welfare workers and so on. I assure Deputies who have raised this in a constructive fashion tonight that we will continue to be as supportive of DÍON as we possibly can.
In conclusion, and in response to the motion before us, I want to say that no Government have achieved so major a transformation of the economy in such a short period of time as this Government and the last Government.