Dáil Éireann debate -
Tuesday, 7 Apr 1992

Vol. 418 No. 4

Adjournment Debate. - Labour and Energy Matters.

Mr. Deenihan

My information is that FÁS will not take on any apprentices in September unless they are sponsored by the private sector. This will pose major difficulties for many young people who want to become apprenticed. Indeed one of the biggest problems facing thousands of young people is the lack of access to apprenticeship training. In many cases this will be the career they wish to pursue. They encounter several stumbling blocks, the greatest being that they cannot find employers who will sponsor them.

This is ironic in the context of the recommendations of the Culliton report which is crying out for more technical and vocational training. The young people have the educational background, the ability and the aptitude but they simply cannot find a willing employer to sponsor them. The State must step in immediately and provide a full scale apprenticeship system in co-operation with the private sector. This could be linked to existing FÁS centres, regional technical colleges and the secondary sector, which will be facing dwindling numbers and thus have excess capacity in the not too distant future.

Young people and their parents have to trawl employers beseeching them to take on a young person as an apprentice. It is absolutely unfair that young people who have the ability and aptitude are barred from pursuing the trade of their choice when their peers can become apprentices simply because their families know employers who will sponsor them. It is fair to say that it is now easier to get a place in any university faculty or any third level institution than to get an apprenticeship. This is most unfair and must be changed immediately.

Minister for Labour (Mr. Cowen)

I advised the Deputy earlier today when I responded to his question on this matter that in 1993 FÁS will implement the revised apprenticeship system agreed in the context of the Programme for Economic and Social Progress and that the existing arrangements will continue in regard to intake and apprenticeships in 1992. I reminded the Deputy that primary responsibility for the recruitment of apprentices rests with employers but that it had been the practice for FÁS to sponsor a number of apprentices to meet any shortfall due to unexpected increases in demands for skilled personnel from existing or new employers.

FÁS have responsibility for the regulation of apprenticeships under the Industrial Training Act, 1967, in industrial sectors designated by it under the said Act. The 1986 White Paper on Manpower Policy set the objective of developing an apprenticeship system which could be based on standards achieved rather than the time served and which would ensure a satisfactory balance between supply and demand for apprentices and reducing the financial cost to the State while maintaining quality. At the request of the Minister for Labour in May 1988, FÁS established a subcommittee to review apprenticeships with the following terms of reference: first, to review current arrangements governing the apprenticeship system; second, to develop proposals for new arrangements which would make the system more efficient and flexible and which would ensure that the future apprenticeship needs of industry are met.

On receipt of the report of the subcommittee, FÁS published a discussion document at the end of 1989 proposing the introduction of a single-standards-based system leading to craft worker status which would allow for internationally recognised certification based on uniform industry agreed standards. Proposals for a new system were subsequently agreed in the Programme for Economic and Social Progress. The new system visualises a return to the position whereby the young person had to be apprenticed to an employer. This position had been eroded through FÁS tending to sponsor a significant number of apprentices at considerable cost to the State because of the reluctance of employers to take on apprentices. Funding arrangements for the new system have been agreed by the social partners under the auspices of the Central Review Committee and I will be shortly seeking Government approval for the necessary legislative arrangements to give effect to the agreed funding mechanisms.

The board of FÁS have established a national apprenticeship advisory committee to advise the board on the implementation of the new apprenticeship system in accordance with the Programme for Economic and Social Progress. I am satisfied that the new system will ensure that Irish craft workers are on a par with their EC counterparts and that Irish industry generally will be in a better position to meet the challenge of the Single Market.

Mr. Nealon

In the north-west we are planting trees at a very rapid rate, some would say too fast, and that it is too much that the forestry companies are gobbling up the good land along with the marginal. Whatever one thinks of this development, this is what is happening.

One thing is quite certain, we will not get worthwhile employment from growing trees. I can give the example of what is happening in Arigna forest which straddles the Sligo, Leitrim and Roscommon borders. At present there are 15 general workers employed but recently 12 were told there would be no jobs for them in the future. This will mean that just three workers will be employed in a forest of 13,000 acres. I believe that forestry alone will give us a province without people.

We have to look elsewhere for jobs. We could produce substantial employment in a pulpwood industry. We already have plenty of raw material with forest thinnings and residues from the sawmills. We now have two pulpwood-using industries, the board mills in Clonmel and Scarriff. The third outlet is in exports to Finland, France, the UK and other places. Exporting is all right while we establish the supply line for another pulpwood industry but it is time we started putting on the added value in this country thus creating jobs from our own raw materials.

We could establish another board mill or a pulp mill for paper-making. I understand that one or other option would create at least 150 jobs directly and provide 250 or more jobs later. We have sufficient raw material for one of these industries immediately and for two along the line.

I know the Minister has a great personal interest in this development. I believe that logically and logistically he will have to favour the north-west. I hope he will assure the House that progress is being made.

Minister for Energy (Mr. Molloy)

I agree with the Deputy that there is a need for another pulpwood using plant in this country to cater for the supplies of timber becoming available in increasing quantities in the country as a whole and the north-west region in particular.

On 29 January 1992 I indicated in this House that the increasing availability of timber supplies merited the establishment of a new pulpwood-using plant. That remains my view and Government policy remains firmly focused on ensuring that every possible avenue is explored so that export outlets for timber products are developed and in turn maximising added value in the Irish economy.

The Deputy will appreciate that the promotion of such a project is primarily a matter for Coillte, in consultation with the State's industrial development agencies. I know that Coillte and the IDA are continuing to hold discussions with all of the major international companies in the industry.

There has been no slackening of effort in trying to find a suitable international partner to replace the Swedish industrial concern which withdrew from an earlier development project. It is no secret that the timber industry internationally is going through a very deep recession and the House will readily understand that such circumstances are by no means ideal when one is searching for an international partner in this venture.

However, the fundamentals for ultimate success remain strong and I believe that we are well positioned to benefit from any upturn in the international timber industry. In this context, the Deputy will doubtless be interested in noting that in 1991, surplus pulpwood amounted to some 300,000 cubic metres which would be enough to cater for the type of development currently envisaged — this is a major factor in our favour — and that the total average annual pulpwood availability over the period 1992 to 1997 is projected to be 900,000 cubic metres per annum. Some of this surplus is being exported as a short term measure but I would stress my intention to ensure that it is as short term as possible.

All efforts are now being focused on securing the right investment sources with the right levels of expertise but, as I said, the search is not easy in recessionary times. As to the likely location for a new industry, this would be a matter primarily for the major investor involved and would depend on a number of factors, including electricity, adequate water supplies and, of course, great emphasis will be placed on environmental considerations. While it is thus too early for me to indicate to the House the location of such a new industry, I would say, in so far as the north-west region is concerned, that it would represent a prime potential location on the basis of the level of total national pulpwood supply projected from that region.

I want to assure the House of my continued commitment to the development of the timber industry so as to ensure that the real benefit of the State's substantial forestry investment is exploited for the benefit of job and wealth creation here in Ireland. I will continue to assist where appropriate, to ensure success in meeting that objective and I will continue to encourage both Coillte and the IDA in their endeavours.

Mr. Finucane

As I have furnished the name and address of the specific individual I shall refer to him as Mr. X. This specific case refers to an individual in a disadvantaged area who has applied to the Department of Energy for grant assistance for the provision of electricity. It may come as a surprise to some that there are still people in houses who do not have electricity. This is a person who is not in good health. He and his wife are 77 years of age with no family, they live on a small farm of about 52 acres, of which 40 acres is bog, and eke out a subsistence on a small stocking rate. Recently he was fortunate to be included in the disadvantaged areas as a result of which he is now attempting to instal electricity supply and a telephone. When the individual received the application form he was possibly frightened because part of the stipulation relates to having one's tax affairs in order. This person never paid any tax in his life and I doubt very much if he will ever be eligible for tax. Normally I would not raise applications of this nature on the floor of the House because I would expect people to put their tax affairs and the tax numbers in order. I raise it because of the exceptional nature of the request and because the individual and his wife are in a very isolated area, a good distance from the main road and electricity, in the twilight years of their lives, is essential. I wonder whether there can be any deviation from these regulations in the Department?

Minister for Energy (Mr. Molloy)

Under the Department of Finance regulations regarding tax clearance procedures grants for subsidies over £500 can only be paid in cases where the applicant supplies his or her tax number. Where the applicant is not registered for tax purposes he or she is informed that applications will not be considered until a tax number is provided.

My Department wrote to the person concerned advising him of the position and requesting him to supply a tax number. This information has not been provided to date. On receipt of the information the application will be given further consideration.

In view of the age of the person involved I am sure it would be possible for somebody to give assistance because the procedures in relation to obtaining a tax number — even though the person has no tax liability — are not very onerous. I am sure with some assistance, and perhaps the Deputy himself might care to help, or if not I can arrange for somebody to assist these people in this way. It is a requirement that has to be fulfilled. It is an obstacle that can be overcome with a little assistance and I would be very pleased to help in any way I can.

The Dáil adjourned at 11.15 p.m. until 10.30 a.m. on Wednesday, 8 April 1992.