Vol. 432 No. 6
15 Proinsias De Rossa asked the Minister for Enterprise and Employment if, in regard to the document Employment Through Enterprise published by his Department on 3 May 1993, any time-table has been set for the establishment of the new industrial development agencies; if the legislative timetable recommended by the Moriarty Task Force will be met; if he will give his response to the widespread criticism of the document; and if he will make a statement on the matter.
The publication Employment Through Enterprise sets out clearly what the Government had decided to do on the whole range of Culliton recommendations, i.e. to implement almost every one.
The agenda for change is not an easy one as those who may stand to lose from a proposed change can identify their potential loss better than those who stand to gain can foresee the potential for gain. It is not, therefore, surprising that there should be some criticism of the decisions to act on the agenda for change. That has happened, for example, in respect of the recent rebalancing of telephone charges. It has also occurred in connection with the reform of the agencies, taxation, education and other issues dealt with by the Culliton and Moriarty Groups.
As announced, the Government will implement tax reform to broaden the tax base; to reduce the incidence of tax on the low paid and on those approaching the average industrial wage; to bring about closer co-ordination of the tax and social welfare systems; and to simplify the tax code. That reform will be along the lines recommended. However, it has not been and will not become the practice to state now what Ministers for Finance will do in the next or in subsequent budgets. A great deal of progress has been made already in eliminating tax shelters and reliefs, as recommended by Culliton.
Similarly, the reform of the State industrial development and promotional agencies is being introduced to ensure that the required attention is given to the development needs of indigenous industry. That task is very different from that of attracting foreign investment, as I am sure the Deputy will acknowledge. The present arrangements have not been particularly successful in this area and the need for change was clear to all impartial analysis.
It is for these reasons that the agency structure decided on by Government and for which I am responsible will provide for one agency for promoting inward investment and another for promoting the development of indigenous industry. Local initiative for small business will be further facilitated through the country enterprise board structure.
The implementation of policy and the co-ordination of all agency actions including overseas marketing, will be overseen by a policy advisory board, FORFAS. This is in line with the Culliton recommendation that a forum distinct from the executive agencies should be established, to advise my Department on policy. It will include a number of business people of experience and authority.
A Bill providing for the establishment of a new structure of industrial development agencies is currently before the Oireachtas. It will be in line with the target date set by the Moriarty Task Force for enactment of the legislation by July next. I would hope that both Houses of the Oireachtas will be able to pass all stages so as to meet the target date for enactment recommended by Moriarty.
As the Deputy will gather, I do not accept his reference to widespread criticism. In fact, there was widespread support for the new Government's speedy and comprehensive response to the recommendations of the Industrial Policy Review Group and those of the Moriarty Task Force. In particular, the Irish Business and Employers Confederation and the Irish Congress of Trade Unions were positive in welcoming the Government's decisions.
We have set out a practical and detailed time-table for the implementation of the vast majority of the recommendations made and it will be possible for the Deputy and anyone else to measure progress against the commitments that have been set.
I thank the Minister for his reply. One of his own backbenchers would not have put down such a timely question; I will have to talk to my collegue about how this happened. Is the Minister not searching for a silver lining in this cloud? Was there not widespread criticism right across the spectrum of opinion and did the Minister not have time to pause on the question of whether he should plough ahead with various aspects of what is contained in the document? In relation to the Bill to which he adverted, which will be introduced in the House tomorrow, does he agree that it will lead unnecessarily to the creation of excessive bureaucracy whereby we will have new boards, chief executives, headquarters and offices——
Quangos.
——and not necessarily to the creation of any additional employment?
While I wish to reply to the Deputy's questions I do not wish to anticipate the debate that will take place tomorrow. Let me say succinctly that the thrust of the Culliton report and, subsequently, the Moriarty task force report was that there should be, for the would-be industrialist or a small enterprise wishing to expand, clarity and a lack of confusion as to how they should approach the State for assistance and support, be it in marketing, industrial promotion, product development or research in technology. Having regard to the overall thrust of the recommendations by the Culliton and Moriarty groups and the Programme for Government, I am convinced — this is a considered response; we will have time tomorrow or during the Committee Stage debate on Thursday to elaborate on this matter — the structures in place are the best possible ones for dealing with the problems which confront us at present.
Will the Minister agree that the basic appeal by Culliton was to simplify the system of industrial support? Does he agree that what we have done is replace one ministerial responsibility with two ministerial responsibilities? Instead of having two industrial agencies, as recommended, we will have three agencies doing the work previously carried out by one agency while the other agencies continue to operate.
I do not accept that. The benefit of the Culliton report was particularly acute where the group spoke on matters on which they were very knowledgeable and for which they were renowned both nationally and internationally. In my considered view, the group was less wise and less authorative when it spoke about some of the matters pertaining to Government, particularly the agency structures. So far as the individual industrialist or would-be entrepreneur is concerned, following the restructuring of the agencies, as proposed in the Bill which will be taken tomorrow, there will be a dramatic improvement in clarity from the point of view of service and the delivery of support and assistance to those people than previously. This was the primary thrust of both the Culliton report and that of the Moriarty task force.
Will the Minister agree that the timetable referred to in the question pre-supposed that this House would have adequate time to consider the legislation? Will he further agree that it is a bit much in the dying days of the Dáil session to introduce a Bill of such complexity when the Joint Committee on Employment was, as we were told, set up to consider such matters? The Minister of State, Deputy Brennan, referred earlier to company examinerships. This system, which was introduced as an emergency measure is, even though it was later amended, now showing some defects. Will the Minister agree that such a major Bill, which proposes to put in place the strategy for our employment assistance for the next decade, should be given more than a few hours consideration in this House? It is a disgrace that the timetable is being adhered to by simply wiping out the legislative process itself.
The Deputy is doing himself a disservice and is doing both Houses of the Oireachtas a considerable disservice by suggesting that a Bill of 21 sections and two Schedules is not capable of being debated during the proposed timetable, particularly as the thrust of this Bill has long since been published and there has been a debate on the Culliton report in the other House. As no doubt the Deputy is aware, the Bill will provide a mechanism whereby a very orderly re-arrangement of existing agency structures can be brought into place without disrupting or suspending the delivery of services. Without anticipating the debate, there are very cogent reasons as to why this Bill on agency restructuring should be passed by the House as quickly as possible, particularly, to eliminate uncertainty within the various organisations, including among the personnel, and to clarify the position on how they will function. I would have preferred a longer committee stage debate through the relevant Oireachtas select committee but if this Bill is not enacted fairly quickly then considerable damage will be done to the various agencies in place at present.
Will the Minister agree that the obvious implication of his answer to my last question is that this Bill should have been brought before the House a month ago when there would have been plenty of time to discuss it, instead of forcing through the Committee Stage now?
The Deputy is making a speech, and not asking a supplementary question.
I am asking the Minister if he considers it adequate that the Committee and Report Stage of a Bill which will be the cornerstone of our industrial policy should be taken between 10.30 a.m. and 1.30 p.m. tomorrow?
I can only refer the Deputy to the excellent contribution made by his party colleague, Senator Dardis, in the other House on this matter — that debate had a similarly short timetable where being succinct and to the point is frequently a substitute for long and less than erudite contributions.
As the Minister said, we will have an opportunity tomorrow to consider whether it is wise to replace one agency with three new agencies. Specifically on the dispute between him and the Minister for Tourism and Trade, does the Minister agree that it makes no sense to have broken the focus of the industrial effort whereby An Bord Tráchtála now reports to the Minister for Tourism and Trade rather than to his Department? Does the Minister agree that the time has come for us to require Iveagh House to consider that it is in the latter part of the 20th century, that it is primarily its task abroad, rather than whatever grandiose missions it considers it might have, to take the calls of Ireland's trade to heart, there is no necessity for a Ministry for Trade and the functions ought to be divided between him and the Minister for Foreign Affairs?
I understand and accept much of what the Deputy said but the Department of Foreign Affairs, which carries out a substantially effective role in the area of diplomacy, has agreed, with the consent of the Tánaiste and Minister for Foreign Affairs, to considerably broaden and deepen its commitment to a trade dimension alongside its existing functions which it carries out with such skill. As part of the Employment Through Enterprise report, accepted by Government, the Department of Foreign Affairs has agreed to changes in the promotional structures whereby for the first time since the foundation of the State persons employed in one of the domestic Government Departments can apply for promotion to vacancies which occur at first secretary, assistant principal, principal officer and consular level within the Department of Foreign Affairs. This is due in part to the refocusing of some of the energies of the Department of Foreign Affairs towards the task of trade. I could give additional examples where that refocusing has been considerably encouraged by ambassadors working very closely with the relevant agencies. When the two Ministers of State and I recently visited Ambassador Small in London we saw the best conceivable co-operation between An Bord Tráchtála, the IDA, Bord Fáilte, the commercial attaché and the ambassador. That is an example of the State getting a very effective response, with limited resources, from — I am proud to put this on the record — extremely committed Irish public servants working abroad.
