Vol. 429 No. 6
1 Mr. J. Bruton asked the Taoiseach the outcome of the meeting of the Central Review Committee of 25 March 1993 in respect of employment policy generally, the review of the Programme for Economic and Social Progress, the national development plan, and the county enterprise boards.
2 Mr. J. O'Keeffe asked the Taoiseach whether he intends to meet with the social partners in relation to job creation.
I propose to take Questions Nos. 1 and 2 together.
I can confirm that the agenda for the meeting on 25 March last of the Central Review Committee under the Programme for Economic and Social Progress included the employment creation impact of the budget, a draft progress report on the achievements to date under the Programme for Economic and Social Progress, the area-based strategy county enterprise boards, North/South economic co-operation and the national development plan for EC Structural/Cohesion Funds.
In accordance with established practice, however, it would not be appropriate for me to disclose details of confidential discussions with the social partners except to say that there was a very useful discussion at this meeting on all the issues which I have just listed.
The grave unemployment problem is an ongoing item for review and discussion by the Central Review Committee Deputies can be assured, therefore, that through this mechanism, as well as through other meetings and contracts, the Government and individual Ministers directly concerned are kept fully informed and can be assured that we will continue to give the most careful attention to the views of the social partners in this area.
Finally, I might also mention that a draft progress report on the Programme for Economic and Social Progress is at an advanced stage of preparation by the Central Review Committee and it is expected that the report will be published in the near future.
Will the Taoiseach agree that the present level of unemployment is the biggest collective failure of the Irish political system and that its solution requires collective and courageous sacrifice by all the interests in this House and those represented on the Central Review Committee?
I am well aware of the grave position in regard to unemployment and, as the Deputy knows, there is no simple or immediate solution to it. He can be assured that the Government is taking every possible action open to it to resolve the problem. Deputy Bruton, as well as other Deputies, will appreciate that the Irish economy, being an open one, must export £2 out of every £3 it produces to foreign markets and is naturally affected by the deep recession throughout the world in the past number of years. Thankfully, the British and US economies appear to be coming out of recession. An initiative was taken last week by the 12 member states to give a boost to economic activity and that is the main area in which jobs will be created. All other actions open to the Government are being taken. Interests and mortgage rates have tumbled——
Surely the Government is not taking credit for that?
Why not?
The strength of sterling is accountable for that.
Let us hear the Taoiseach, without interruption, please.
The Taoiseach listened to Deputy Bruton at last.
People inside and outside this House said that we made a wrong decision, that we got our timing and others matters wrong. Yet the countries that devalued early had to devalue more than once and some of them are still in serious trouble while Irish interest rates are at their lowest level for a number of years.
The Taoiseach did what Deputy Bruton told him to do.
The Taoiseach must be suffering from jet lag.
The present level of interest rates and mortgage rates will, inevitably, give a boost to investment and employment. The Finance Bill will be introduced shortly and the Minister for Enterprise and Employment, Deputy Quinn, will make major announcements in the next couple of weeks in relation to the Culliton report.
Will the Taoiseach agree that such recovery is not as a result of Government policies but as a result of the Government abandoning its policies and taking the advice Fine Gael offered which it criticised initially but subsequently took?
Hear, hear.
One has only to look at what happened in other countries which took the decisions Fine Gael advocated to see the problems they now face.
The Taoiseach took our advice.
How much did it cost us?
It is a matter of good Government judgment and good timing to get the position right.
I am aware of the frustration that exists between Deputies Yates and Bruton and others but the position is improving even though they may not like to admit it.
(Limerick East): Does the Taoiseach have a doctorate in economics?
I think it is in revisionism, but he made a good try. On the basis that our record in job creation in recent years has been an absolute disaster, will the Taoiseach consider it worth while, from the point of view of changing our system, to talk to employers and encourage people to become involved in enterprise and job creation and, second, to talk to the trade unions with a view to changing those parts of our system which tend to make it more worth while for people to be on the dole than to take up employment? Will the Taoiseach not agree that those two proposals would have a major impact on the existing anti-enterprise culture?
Many of the blockages in the economy were identified in the Culliton report and, as I stated already, the Minister for Enterprise and Employment will be making proposals to deal with those matters.
Will the Taoiseach agree that in view of the credit he is now claiming for the fall in interest rates he should thank the Bundesbank for their contribution to the timing since the Minister for Finance complained so bitterly about its role in the matter? Second, will he agree in a budgetary context that it is time to use all the windfall gains arising out of the lower interest rates to eliminate the 1 per cent income levy which is destroying jobs——
The Deputy is bringing in new matter; this is a separate question.
As the Ceann Comhairle said, the Deputy raised a separate matter in the second part of his question. With regard to the first part of his question, Irish interest rates are on the way down and the recent drop in interest rates by the Bundesbank is, of course, helpful in continuing that downward trend.
