Ivor Callely
Question:12 Mr. Callely asked the Minister for Enterprise and Employment the specific industry and specific job creation targets set by his Department for 1995; and if he will make a statement on the matter. [3323/95]
Written Answers. - Job Creation.
Ivor Callely
Question:35 Mr. Callely asked the Minister for Enterprise and Employment the proposals, if any, he has to create job opportunities for young people and school leavers in 1995; and if he will make a statement on the matter. [3322/95]
I propose to take Questions Nos. 12 and 35 together.
The job creation target for 1995 set by my Department is embodied in the overall target of 20,000 new jobs per annum set out in theOperational Programme for Industry 1994-99 recently published by me. This target was exceeded by the development agencies under my aegis in 1994. I am confident that they will maintain this excellent performance in 1995 and indeed over the remainder of the period.
My Department has not set any specific industry targets for 1995 but is in consultation with the development agencies on an ongoing basis in relation to their objectives and targets for employment creation in specific sectors, which clearly take into account medium-term development plans for these sectors.
In relation to job opportunities for young people and school leavers, I would emphasise that the fundamental objective of the operational programme for industrial development is to maximise the number of self-sustaining job opportunities in manufacturing and international services for the labour force as a whole.
In that regard, I have to point out that job creation in the manufacturing and services sector is clearly facilitated and encouraged by the overall business environment in which projects are operating, which has been the fundamental rationale in the strategy of the recent budget.
The emphasis in this year's budget is on employment and growth. In the budget, the Government introduced measures to address the main constituents of the tax wedge. We have introduced a substantial allowance for employee PRSI and have raised the standard tax band and personal allowance for income tax significantly. As a result of these measures, for a large number of employers, the cost of employing people will fall by three per cent. I would expect that these changes would be of significant benefit to young people and school leavers in opening up new employment opportunities to them.
One very important potential of job opportunities for young people lies in the services sector. Indeed the service sector of the economy has shown strong growth for the past number of years and employment in the sector now stands at 60 per cent of total employment. The Government's commitment to continue to push down the corporation profits tax rate to levels comparable with those of overseas competitors will give a further major boost to job creation in the services sector.
Increasing employment opportunities for school leavers and young people will require an increased focus on training and upskilling generally. I have already indicated to the House that the national Youthstart programme, which covers employment and training opportunities for unqualified school leavers in the 18-21 age group, will be reviewed as part of the work currently under way on the White Paper on Training.