Alan Shatter
Question:14 Mr. Shatter asked the Minister for Labour the measures he proposes to take to increase employment in 1991 and subsequent years.
Ceisteanna—Questions. Oral Answers. - Job Creation Proposals.
Pat Rabbitte
Question:19 Mr. Rabbitte asked the Minister for Labour if his attention has been drawn to the recent report from the ESRI Unemployment, Poverty and Psychological Distress which showed that unemployed people are five times more likely to suffer high levels of psychological distress than those at work; if he has any plans for new initiatives in the training or employment areas which could help deal with this problem; and if he will make a statement on the matter.
I propose to take Questions Nos. 14 and 19 together.
Job creation is central to the Government's economic and commercial policies. The Programme for National Recovery, in addition to repairing Ireland's damaged economic base, increased the numbers at work by a net 40,000 and demonstrated what can be achieved on a consensus basis.
The key objectives of the Programme for Economic and Social Progress which has been ratified by the employer and worker organisations include a substantial increase in employment and a major assault on long term unemployment.
The programme aims to create 60,000 new jobs over the next three years in manufacturing and international services and a further 15,000 in tourism over the same period. Crucial factors in achieving these targets include improvements in the competitiveness of the workforce; the continuation of wage subsidy schemes, and the maintenance of a good industrial relations climate.
As regards my own area of responsibility, on any one day, there are about 30,000 people participating in FÁS training and employment schemes and a further 3,000 in hotel and catering courses operated by CERT. I would expect, in broad terms, to maintain the present level of activity and expenditure in the medium term. Overall, our level of expenditure on active labour market programmes as a percentage of GNP is the highest in the EC. Recent improvements on the industrial relations front include the establishment of the Labour Relations Commission.
With regard to the long term unemployed the ESRI report shows that employment is a key factor in providing the material and intangible rewards necessary for psychological well being. The report points out that the unemployed are five times more likely to develop symptoms of mental health deterioration than those with jobs. Clearly the answer to this problem lies in the creation of meaningful employment, particularly for the long term unemployed — the category most exposed to the psychological distress caused by prolonged periods of unemployment.
The findings also suggest that those on State-sponsored training and manpower schemes have levels of mental health comparable with those of employees.
It is worth noting that the initiative in relation to long term unemployment ties in with the conclusions of the ESRI report which states that there would appear to be value in encouraging community development responses which recognise the relevance of resources and support issues, and which have the potential to give the unemployed access to categories of experience previously denied to them.
On a point of order, may I make a point?
I would wish to dissuade Members from making a point of order. We are trying to avail of the precious time available for Priority Questions.
I would point out——
It is hardly fair.
——that Question No. 19 is a distinct question and ought not to have been grouped with Question No. 14.
I have no control over that.
Will the Minister agree, taking into account the number on the live register of 241,000 and the number on training courses that the real number of people unemployed currently is 275,000? Will the Minister agree that the unemployment figures as projected at 228,000 in the programme for this year are already out of date and that there is a growing crisis of unemployment? Will he agree that the aspirations contained in the programme even if achieved would leave that problem worse than it is today and that new innovative measures are required, going beyond a small increase in economic growth, to provide real jobs for the many unemployed who require them?
The figures to April showed an increase last year. We will require 4 per cent or 5 per cent growth to achieve 20,000 or 30,000 jobs per year. It is realistic to say that we will get growth rates of 7 per cent or 8 per cent this year although it will be particularly difficult to achieve those rates. I agree that there are 30,000 people on training schemes. We have all learned in recent years that the opportunity for second chance education, training, work experience and apprenticeship skills gives people a better chance to get into the labour market. We will do everything we can to give opportunities to the long term unemployed. A number of local employment initiatives are helping to create jobs but we need high growth rates, a market for our goods and stability to achieve that. We have achieved that in the last few years.
Will the Minister agree that while the programme has resolved the pay issue and provides a number of commitments in relation to social reforming legislation, by and large it has ignored the problems of unemployment and that the detailed innovative policies required to tackle unemployment difficulties are not addressed in it? Will the Minister indicate whether there is any new thinking on the part of the Government that goes beyond the programme to get unemployment figures down during the lifetime of the programme? Will the Minister agree that the safety valve for the programme is predicted on a continued emigration of between 20,000 and 30,000 people annually during the lifetime of the programme?
The programme sets a target of 75,000 jobs. The last programme surpassed its target although that too was criticised in the House. I hope this one will. The Minister for Industry and Commerce, through his various agencies have policies outlined in the programme, and the Department of Labour will continue to retain people and give work experience to them to try to get long term unemployed people back into the workforce.
If Priority Question No. 15 is to be disposed of it must be taken now.