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Dáil Éireann debate -
Wednesday, 29 Mar 1995

Vol. 451 No. 3

Interim Report of Task Force on Long-Term Unemployment: Statements (Resumed).

It is seldom, having read a report, I agree with the sentiments expressed by its authors. People enter politics for various reasons and one of the key reasons I am in politics is to work to achieve a pluralist, fair and honest society in which everybody has equal opportunities. Citizens should be entitled to the opportunity of employment. To be deprived of this opportunity is to condemn the citizen and their family to a life that is unfulfilling. Life on the dole is not what we wish for any of our citizens.

I give full recognition to report No. 4 of the National Economic and Social Forum which was debated before I was re-elected to the Dáil. Much work was put into that report entitled Ending Long-Term Unemployment and the task force was established as a result of that report. I am a member of a Government party and it is important that I, my party and our partners in Government deal with the problem of unemployment in order to bring real meaning to these people's lives and give them their due entitlements. I am delighted to be part of a Government of renewal in whose programme there is a commitment to adopt new approaches to resolve the sad and endemic problem of long term unemployment. I pay tribute to all involved in the preparation of this report.

I represent the constituency of Dublin South Central, which is mainly working class, with huge housing estates in Crumlin, Walkinstown and Drimnagh. The Templeogue district is slightly more affluent, an area in which civil servants and teachers reside. In some areas of the inner city part of the constituency there is 85 to 90 per cent unemployment. From my work as a politician I have great insight into the lives of people and I am not happy with the standard of living of many of my constituents. I hope the Government will work to raise the standard of living of these people.

One may wonder why there is such high unemployment in certain parts of the country and no doubt there are different reasons. It is important to look at some of the communities that have been devastated by unemployment. There is a common thread running through communities that have been devastated by unemployment. In Sheriff Street in the north inner city people experience the difficulties that result from long term unemployment. That problem did not exist in the 1940s, 1950s and 1960s because Sheriff Street is near Dublin Port which was a major employer of labour from the locality. In the south inner city in those days motor cars were assembled in the Brittan Plant on the Grand Canal, Donnelly's factory in Cork Street provided substantial employment and Keeffes, the knackers — which would not be allowed to operate today — produced glue and also gave substantial employment. There was also a very lively and labour intensive rag trade. When one compares what happened to the communities in and around Sheriff Street on the north side and Cork Street on the south side one notes that these communities enjoyed high employment from local indigenous companies but the changes in the methods of production and in transporting goods from one country to another resulted in what we have inherited today, unacceptably large numbers of people without employment.

In some of these areas unemployment is endemic, there are families where the father and mother never worked whose children are experiencing the same difficulty in gaining access to the workforce. The report before us tries to address these problems: it highlights the long term unemployed, the partnership areas, which are the disadvantaged areas and the programme which will be put in place in those areas. We must address ways of creating employment in communities where employment existed in the past. To highlight the evil in the past is to highlight the sad reality of life in these communities.

Drug abuse is rampant in the inner city portion of my constituency of Dublin South Central. I am a politician, not a sociologist, and to be unemployed does not necessarily mean that you will be a robber or a drug addict. However, in communities where there is almost nothing but unemployment the depression, hopelessness, alienation and marginalisation of these communities leads some, sadly, into drug addiction. As a consequence the community becomes more and more a victim of circumstances. As politicians we have no way of going back to the old days, we can only go forward. In parts of my constitutency morale is so low it cannot go any lower and the political task for us in addressing the task force on long term unemployment is to raise communities off their knees and to bring them back into the mainstream. Depressing as the scenario is in parts of my constituency and other areas it is important to point out that there is still a very vibrant and important lifeline for politicians in how we structure our response to this crisis in the communities. Even in communities suffering from crime, vandalism and poverty there are incredible people ready to work with those agencies of the State who will provide a helping hand. We must grasp this nettle to give those communities the support they need to raise themselves above their present level.

Very often I am criticised for being an atheist and someone who has no faith in anything except what tomorrow brings but it is impressive to work alongside the Little Sisters of the Assumption in Cork Street. It is worth recording that those at the coal-face giving hope to people who sometimes feel that there is none are very often nuns, priests and Christian Brothers who have adapted to local conditions and work and live, eat and suffer with people in inner city flat complexes and have nothing in their lives except this burning commitment to their religious vocation to try to raise the quality of life for many of these people who are out of work and whose prospects are dim.

My first political experience of the response to a social crisis was in the South Brown Street family centre, a centre run by nuns. They were ahead of the posse in their thinking and their family centre worked miracles with its clients. I saw the effect of programmes on women from the most disadvantaged areas who would have been intimidated by a politician, who would not have looked a politician in the eye. Self-development courses help women to gain self-confidence. They give people hope for the future. The Mother McAuley Centre in Drimnagh, which is partly funded by CROSSCARE, is doing excellent work. The number of women participating in adult education courses and schemes is admirable. There are voluntary agencies in Bluebell and Rialto which are complemented by the statutory agencies. One body which has led the way in original thinking is the City of Dublin vocational education committee. Pearse College on Clogher Road has done marvellous outreach work in disadvantaged communities. As a result people are better prepared to seek employment.

There is no point in reading the contents of the report on to the record. The Government must bite the bullet and implement the recommendations in the report. EU funding will not last forever. The Minister must look carefully at the monitoring system which will be put in place. While thousands of people were probably gainfully employed in community employment schemes and SES schemes in the past, sadly I witnessed some schemes which did not do anything except waste people's time, effort and energy.

I come from a working class family where unemployment was not a problem. I spent three years in Africa and on my return to Ireland I was unemployed for a short period. During that time, I had the experience of drawing the dole in Werburgh Street Exchange. We all learn from our experiences. My experience hardened, honed and prepared me as a politician and I say to the House that this report must be implemented. We must go forward and break the cycle of poverty which is linked to the long term unemployment crisis which confronts us. We must start tackling the problem in a serious way and help those huge sectors in society who are in a poverty trap due to their inability to obtain employment.

I empathise with Deputy Byrne. A number of years ago we boasted that 6,000 people were employed by Guinness. Another 400 people are to be laid off in the next few months. That is not anyone's fault but is as a result of automation. There were relief schemes in rural areas for many years. Someone invented a JCB and only two people were needed to do work which required ten men previously.

In the Smithfield market and Finglas areas I saw young people with the ability to ride horses bare back. I was fascinated. They had not been given any training but had a natural ability to ride. I spoke to one of the clergymen Deputy Byrne mentioned about trying to get them to work in riding stables. The idea was tried out but unfortunately there was no work ethic in the family concerned. The work commenced at 6 a.m. and lasted until 6 p.m. and they would not stay. We must break the unemployment culture. The Minister is aware that we can do that by educating not just the young but adults.

Many men worked in coal mines in my constituency and would not work at anything else. There is much rural unemployment. I have a sneaking admiration for those who do nixers. A man who did that was helping his family. He could not get full-time employment but he earned a few extra shillings. Perhaps it was his money for a drink, a bet on a horse or a packet of cigarettes and the rest was given to his family. I do not condemn a person for doing that. Unfortunately others do not take that initiative.

Recently a relatively young man in his thirties came to see me. He could not pay his mortgage even though it was at the relatively cheap rate brought in by the great Fianna Fáil Government in 1989. His repayment was £20 per week. If he were renting the house, his rent would have been higher. He asked me where he could get £20 per week out of his unemployment benefit. That frightened me and I suggested he should clean windows. He was a young man who could not find a nixer to enable him pay the mortgage on his house which would be repossessed by the local authority concerned.

In 1937, 2,500 people sat the leaving certificate examination and in 1954, 5,000 people sat it. This year over 96,000 people will sit it. There are fewer educated people unemployed. Education is not the sole answer but it is a major contributing factor towards solving unemployment. A wider range of skills is needed for those who wish to leave school after completing the junior certificate. Last week there was a rush of people in rural areas looking for young people to drive tractors. They could not find people with the ability to drive a tractor. Some young people aged 23 and 24 had not driven a machine in their lives. They did not have the basis skill of driving a dumper on a site. They came from families with a history of unemployment and never had an opportunity to learn any of these skills. We need to look at the vocational education system. Students who obtain top grades in the leaving certificate are well able to look after themselves. The humiliation experienced by many students who cannot keep up with that level causes many of them to drop out of school at an early stage. More practical subjects should be introduced, not only in traditional skills such as carpentry, stonemasonry and others currently being taught in vocational schools, but students should be taught a general skill which would ensure they would be useful and could easily adapt to using various types of machinery and different work, such as mixing cement and other building work, regarded as low skilled. There are great opportunities for people with appropriate skills to gain part-time employment in those areas.

I wish to refer to two disincentives in the system, which apply more particularly to the short term rather than the long term unemployed. A person with a reasonably large family who is not particularly skilled is better off today unemployed than employed earning a weekly income of less than £200. Such people would earn only £10 per week more than the income they would receive if unemployed. That apparent difference of £10 per week would ensure that the employed person would not be entitled to a medical card because it is means-tested on gross earnings, nor would he or she be entitled to a full rent allowance which is also calculated on gross earnings. Such a person would also be liable for water service charges based on gross earnings, irrespective of whether he or she is brought to court for not paying them. The Minister must address this area. Many people want to return to full employment but cannot afford to do so. Even if people had an extra £10 per week and paid additional rent for their houses, if they had three or four children they could not afford not to have a medical card. People on short and long term unemployment appreciate the value of medical cards and should be allowed to retain them until their children are over 18 years of age and past a dependency stage. If the unemployed were guaranteed the use of a medical card on return to work, the majority of them would return to full-time employment at whatever level of pay offered.

Many people on low incomes whose children caught the 'flu earlier this year found it difficult to cope. Many of them were concerned about the expense of calling out their doctors to treat their second or third child with the same illness. They also faced chemists' bills amounting to £40 or £50. That may not appear a large amount compared to figures mentioned in the House, but it is to somebody with only £20 a week to deal with an emergency. That is a major problem which can lead to people not merely being depressed about their circumstances, but encourages them to take a retrograde step of returning to a position where they can enjoy the comfort afforded by a medical card, irrespective of whatever loss of dignity arises from being unemployed. We should adopt a combined approach through education and incentive schemes to protect those who must face the challenge of returning to employment and cope with the uncertainty associated with it, particularly the long term unemployed. We must ensure that those people are protected by our system and afforded every safeguard so that they are encouraged to move forward to full-time employment and lead meaningful and useful lives. I hope the scope of the task force which produced the interim report will be widened and will consider all the matters I raised today.

I welcome the opportunity to contribute to the debate on our major national problem, unemployment. Unfortunately, while we debate many issues in the House we get few opportunities to speak on the issue of most concern to us all, the reality of which we see in our constituencies. During the past number of years while we were aware of the escalation of the problem, rarely has it reached the floor of the House except by way of reference to the monthly unemployment reports. That should not be the case. Irrespective of what procedures exist in the House, we should have scope to debate issues of such national concern as unemployment.

It is appropriate to give public representatives an opportunity to outline the realities of unemployment to Members. Deputies have given examples of people who are unemployed, the difficulties they encounter in seeking employment, the problems experienced by families and the efforts made by local communities. Those issues should be debated on the floor of the House.

Like Deputy Byrne, I found the interim report interesting. It brought home to me two important points. It is sad to read the depressing statistics revealed in the report. However, we did not need a report or a Central Statistics Office to realise this is the case as we are all aware of the problem in our constituencies and localities. This report encountered the same problem as others on unemployment, it could not provide a magic solution. All Governments must face the reality that there is no magic solution to the unemployment problem but it is helpful that the National Economic and Social Forum carried out an in-depth report on the subject. I agree with the decision of the previous Government that a task force should have been set up to examine the recommendations of the report of the National Economic and Social Forum and to examine in depth an important part of the problem, long term unemployment.

The level of unemployment in the European Union is nearly 11 per cent and, sadly, the national level is almost 15 per cent, but in many constituency areas that percentage does not portray the reality. In some areas of my constituency the level of unemployment is over 23 per cent. South Tipperary, like other areas, experienced an industrial downturn and employers who try to increase their workforce face continual obstacles. As Deputy Davern said, the reality is that in many cases it does not pay people to work.

I am glad I represent one of the constituencies which received good news recently with the announcement that an American company is coming to Carrick-on-Suir, an unemployment blackspot. I pay tribute to all who helped to attract that important industry which is attuned to the talents and skills of people in Carrick-on-Suir. It is welcome that it has the potential to provide 150 jobs. I am glad that my colleague, the Minister of State, Deputy Bruton, had the privilege of announcing the establishment of that industry, but that does not take from the credit due to people who, over a period of time, carried out a good deal of groundwork and perhaps entered into delicate negotiations to entice that company to come to Carrick-on-Suir. Such developments may be rare but when they happen we are always very proud. Nonetheless, it has been bad news for many other constituencies where industries with a tradition of employing large numbers of people no longer need such a large workforce because of automation and/or different market demands.

The realisation of all the implications of employment is not brought home unless one visits the unemployed in their homes. There is no dignity in having to remain at home all day. With unemployment comes hopelessness, despair, lack of enthusiam. Unfortunately, it becomes almost a vicious circle. Before being elected to this House I taught in a school where a large percentage of pupils' parents were unemployed and, sadly, I discovered almost a sense of hopelessness, an acceptance on the part of those pupils that they would continue in the same vein as their parents. The sad fact is that unemployment in a home begets further unemployment because of the attendant sense of hopelessness and despair. It is only natural that children will find it difficult to believe they can succeed where their parents have not. The vast majority of parents are placed on a pedestal by their children.

An economic problem very quickly becomes a social one. I am glad that at least we are doing something to tackle it, that it is a priority of this Government and that this report contains some very good recommendations. It is crucial that the report is not ignored and that its recommendations are acted on immediately. We shall never prove whether those recommendations are worthwhile without putting them into effect.

This report deals with the long term unemployed only. It is a startling and depressing reality that 49 per cent of our unemployed have not been employed for two years and it has been proved that anybody unemployed for two years or more has a 74 per cent chance of never being employed again. That 74 per cent figure alone is an example of the damage wreaked through long term unemployment. Unfortunately, anybody can find themselves in that category very suddenly. Two years can pass very quickly when one waits month after month for the announcement of a new scheme, of some company locating locally or of a local employer expanding his business, writing endless letters of application and receiving letters of refusal. Before one knows what has happened, people have drifted into long term unemployment.

I am glad that the recommendations of this report endeavour to tackle this major economic and social problem. I have already referred to the social problems within the home, the sense of hopelessness and despair which percolates beyond the home into the community. With unemployment comes ill health, poverty, crime and violence, all graphic proof of the despair felt by families in this position. It involves not just an economic cost but a social one to local communities and the nation as a whole. It also has a health cost because it is not healthy, mentally or physically, to be out of work, not having the privilege of meeting people in the workplace or the dignity of earning an income for one's family.

Crime and violence also stem from unemployment. Most of us are familiar with the maxim, "the devil makes work for idle hands", which unfortunately has been proved to be true. While we may implement measures to reduce violence and crime generally, the most important objective is to give people work and a decent way of living. Fathers and mothers want the dignity of being able to work for their family.

Following the publication of the report of the National Economic and Social Forum on ending long term unemployment the then Government decided that the report should be studied by a task force with a view to advancing proposals for better targeting and more effective services for the long term unemployed. The nature and causes of long term unemployment were studied in depth in the preparation of this report which makes depressing reading. The first point is that our long term unemployment rate is greater than the unemployment rate in many other OECD member states. The point is made also that the longer a person is unemployed the more difficult it will be for him or her to find employment again.

It is important to investigate the age group affected most by long term unemployment, ranging between 25 and 44 years. These are the most important years in life, when most people marry and rear children. They are the most demanding years financially. For example, whether a couple live in a local authority house or a private dwelling it must be furnished and maintained and facilities provided. In addition, it is the period within which children will be attending school and, irrespective of State support, there is no such thing as absolutely free education. The age group most affected by long term unemployment is also that with the greatest financial demands during children's teenage years, when they should be encouraged into wanting to work, reaping not alone its financial benefits but personal satisfaction.

The report demonstrates the cost of unemployment in ill health, crime, violence and poverty. A Government must take very positive steps to meet the needs of employers and potential employees.

Debate adjourned.
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