Mary O'Rourke
Question:28 Mrs. O'Rourke asked the Minister for Enterprise and Employment the specific measures, if any, he plans to introduce to convert the high growth rates in the economy into jobs. [14483/95]
Ceisteanna—Questions. Oral Answers. - Job Creation.
It would be incorrect to suggest that Ireland's current performance is weak in this respect. In fact, Ireland is forecast to have, over the period 1994-96, the strongest performance in terms of economic growth and also in respect of employment growth in both the EU and OECD countries.
According to OECD forecasts as of June this year, employment in Ireland will grow by an average of 2.3 per cent over the period 1994-96 while the EU and OECD averages will be less than 0.5 per cent. Economic growth over the same period is forecast at 5.6 per cent in real terms in Ireland, while both the EU and OECD averages will be about 2.8 per cent.
In 1995 and 1996, it is estimated that 70,000 jobs will be created in industry and service sectors in Ireland. In 1995 we are on target for creating over 38,000 jobs in services and industry. This would represent an estimated 5 per cent increase in employment in the industry and market service sectors. The latest ESRI-IBEC monthly industrial surveys show manufacturers are optimistic on the production and employment fronts over the coming months.
No matter how good our record growth is — whether in comparison with other countries or historically — I recognise that this economy must achieve higher employment from our economic growth.
The Government is pursuing policies and initiatives designed to further strengthen and sustain employment in the economy. These are as follows: changes in employers' and employees' PRSI and the corporation tax rate both to improve incentives for taking on workers and to increase the return from working for those on low pay; the industrial adjustment initiative, designed to assist vulnerable sectors of our industry to adapt to new competitive market conditions; the small business initiatives, for example county enterprise boards and the launching of the new 6.5 per cent long term loan service for small and medium size businesses, etc; the strengthening of linkages between indigenous business and the foreign owned sector; establishing a competitive base of companies in key growth sectors such as electronics and internationally traded services; the programmes designed to strengthen the capabilities of indigenous business in key areas — innovation, product design, customer service, etc. The Government will continue to develop policy in all these areas.
Furthermore, I have initiated a review of employment strategy in the Department. One of its major objectives will be to identify measures that can further increase the employment intensity of growth. In addition to those policies which I have outlined above, I expect to bring forward specific measures and proposals as part of this review.
I am aware that we are only a very tasteless hors d'oeuvre before the main course today and nobody in the House or outside it is very interested in Question Time. Having said that, the Minister has a hard neck to give the bureaucratic speak on jobs when I asked what plans, if any, he had to convert what is supposed to be a very high growth rate into jobs — although Deputy Michael McDowell has tabled a question questioning the actual rate of growth — bearing in mind that the Minister of State, Deputy Pat Rabbitte, said on television on Friday that the level of unemployment was not acceptable to him. Neither, I presume, is it acceptable to the Minister or his Minister of State, Deputy Eithne Fitzgerald, the first Labour sighting we have had today. Surely the Minister has answers for me rather than reading out what was prepared by worthy people. What will he do to create more jobs?
Let me refer the Deputy to the question she asked. She did not mention unemployment in her question——
Jobs.
If the Deputy cared to listen to the reply, I indicated that this year it is expected that 38,000 extra jobs will be created in the non-agricultural market sectors.
The Deputy is not accustomed to listening.
There is very significant progress in employment and a very significant increase in the number at work. The problem, and I fully recognise it, is that the transfer of the very good growth in employment into a reduction in the live register is disappointing. Clearly, I am very determined to address that and I am undertaking initiatives. The Government is committed to a new approach in this area. It is significant to note that in recent years there has been continuous growth in unemployment but it has been against a background of difficulty in the jobs market. Now even though we have good employment growth we continue to have a problem on the unemployment front and that is why I believe targeted measures such as the local employment service are required. The Government will be working on the problem over the period. Immediately there will be a review within my own Department and in the run up to the budget measures will be looked at which will address unemployment, which is creating concern. I would be the first to admit that. Had the question asked about unemployment I would have addressed it.
The Minister is quite a disgrace. He knows quite well that I asked for the specific measures to convert the high growth rate in the economy into jobs. The Minister need not try silly gobbledegook on me because there is no way I can accept it. The Minister says he is thinking of a new approach. He has been exactly ten months in office. Is it only now that he is going to address the issues of "employment" and "unemployment"? Is it only now that he is thinking of a new approach, having said last January that employment was his first priority as Minister for Enterprise and Employment? Ten months on the Minister is talking about a new approach. Is he going to fulfil what he said last January or preside over month after month of increasingly depressing statistics, particularly for those who are unemployed?
The Deputy refuses to acknowledge that the question she asked does not address the issue she clearly wants to discuss. It is manifestly true that the economy is providing great employment growth, unprecedented historically — a 38,000 increase in employment in the non-agricultural sector is an extraordinary achievement way ahead of any other country. It is apt to ask why that is not translating into a reduction in the number on the live register. That is an issue about which I am concerned. If that is what the Deputy wishes to discuss, it is a pity she did not raise that question. It is a little bit rich of the Deputy, who presided over a growth of 60,000 on the live register in the past five years, to lecture in the way she is seeking to do. The reality is that this Government has initiated a number of changes to address the needs of the unemployed, particularly the long term unemployed. Among those have been the new initiative in the local employment service. The Government is committed to continuing to offer schemes that will help those who are unemployed transfer into the work-force. It is important in the run up to the budget that we would focus on measures that will help in that task.
What is the target reduction in the numbers unemployed in 1995?