2 Proinsias De Rossa asked the Taoiseach if, he has yet received the report of the Task Force on Services, which he told Dáil Éireann on 15 June 1993, was expected to report by the end of September; if it is intended to publish the report; and if he will make a statement on the matter.
The Task Force on Services commenced work on 10 June of this year. The Task Force decided to consider the services sector at two levels, the total sector and four segments within the sector, namely software, research and development, communications and information services; business and internationally traded services generally; tourism, cultural, educational and medical services; and transport, distribution, construction, retail and personal services, and also non-internationally traded services generally.
The Task Force met on 25 occasions since June at plenary and segment levels. The Task Force has produced a draft of its report to me and intends to finalise this at a meeting on 21 October.
I look forward to receiving the Task Force's recommendations on jobs in services. I propose to put copies of the Task Force's report and recommendations in the Oireachtas Library, when completed, and to make copies of the completed report available to interested parties outside the Oireachtas on request.
When the Taoiseach established this Task Force he indicated that it was the intention to have them examine matters which could be brought forward at an early date and issues which could be addressed in the longer term. Is that the approach that has been adopted by the Task Force? Can he indicate what precise proposals about the creation of jobs are contained in their interim or draft report presented to him.
I understand that the recommendations of the Task Force will cover two broad areas — incentive changes, including taxation, and organisational changes. That is along the lines suggested by Deputy De Rossa.
Would the Taoiseach agree that there is more potential for job creation in the services sector than in any other and that the services sector is currently discriminated against by the State as far as grants and corporation tax are concerned?
Certainly I would accept that there is scope for a large improvement in jobs provided by the services sector. It was against that background I established this Task Force in June last. I am glad to say that they have reported just a week or two behind schedule. I have previously pointed out in the House that employment in manufacturing in many international economies has declined and has been running at approximately 16 per cent over the past 15 years, whereas in Ireland it has been running at approximately 28 per cent. The services sector in the United States represents 77 per cent of the jobs in that economy whereas here it represents 59 per cent. Quite clearly there is scope for improvement. That was the purpose of establishing the Task Force and the purpose of its recommendations will be to endeavour to improve our performance in relation to jobs in the services sector.
Will its report be published?
Yes, I have said already I will make it available to Members of the Oireachtas, have it placed in the Oireachtas Library and give it to those interested in it.
I understand from the Taoiseach's reply that he has already received a draft report from the Task Force. I presume he studied that draft before its final publication. Can he indicate to the House how many jobs the Task Force has identified as being possible to create resulting from the changes they recommend?
We are now having an extension of the question tabled.
I do not propose to go into any detail in relation to the draft report given to me. There will be plenty of time for discussion of it when the final report has been approved by the Task Force. It would be inappropriate of me to do otherwise.
Did the Taoiseach have this report to hand when he drew up the employment targets contained in the National Development Plan or will those targets have to be revised in the light of the information contained in the report?
The Deputy knows well that the National Development Plan was prepared some time ago whereas this report has come to hand very recently. I do not think anybody would object to targets being changed or revised at any time if we can see our way to increasing those job targets upwards.
It is contained in the paper sent to Brussels anyway.
Will the Taoiseach accept that the level of taxation on the services sector is too high given the potential of that sector to generate employment?
That is a matter that will be dealt with in the final report of the Task Force. There will be ample opportunity in the House for discussion on it.
