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Dáil Éireann debate -
Tuesday, 4 Mar 1997

Vol. 475 No. 7

Adjournment Debate. - Cork Unemployment.

My party and I welcome and support the recently announced policy drive aimed at attracting industrial investment into provincial towns. The principle of targeting areas of special needs is a good one which I hope will be vigorously implemented. However, my concern is that Cork city will yet again be passed over in this new drive. That is why I have sought to raise this matter on the Adjournment to urge the Minister for Enterprise and Employment and the Government to put in place a parallel package of incentives for urban unemployment blackspots, specifically in Cork city.

Unemployment is at crisis point. There are now almost 18,000 people registered as unemployed in Cork city. The number out of work has risen since the rainbow coalition assumed office in 1994. Of those registered as unemployed, some 5,000 are under the age of 25. There is a clear transfer from school to the dole and it is alarming how quickly short-term unemployment can become long-term.

Last year, 71 per cent of all new jobs announced by the IDA went to the greater Dublin area. Only 7 per cent went to Cork. Since Digital closed in 1993, more than 3,500 new jobs have been announced for Galway. The Plassey technological park in Limerick is doing extremely well and Cork is losing out all the time. There is a clear need for a major Government initiative to attract jobs to Cork city, specifically disadvantaged areas such as the northside of the city. This cannot be emphasised enough.

A study carried out last year demonstrated that, in certain communities in the city, unemployment is as high as 54 per cent and there are housing estates in my constituency where unemployment is as high as 80 per cent. This is a crisis. If this current trend is allowed to continue for another five years and unless there is direct intervention now, people with jobs will be in the minority in large tracts of the northside of Cork city. The quality of life in those areas is deteriorating rapidly despite the best efforts of local communities. Long-term unemployment is a recipe for social disaster. It brings in its wake crime, drugs and a breakdown of family life. At a time of great prosperity for the fortunate few, to all intents and purposes many of my constituents have been cruelly cut off from the normal workings of the market economy. We have created a strange society in modern Ireland. On the one hand we have an economic boom and on the other we have mass unemployment. We have labour shortages, yet we continue to impose penal tax rates on anyone who is willing to take up or create a job. The tax problem must be tackled, but that alone will not rectify the position I described.

The Government must upgrade the infrastructure in Cork-North Central. To date the Government has failed to honour its commitment to expedite the much needed by-pass at Blackpool. Cork continues to suffer the economic consequences of the failure to provide a modern infrastructure. We must also direct resources into education and training. It is regrettable that we spend in excess of £300 million annually on FÁS training schemes and we now have a skills shortage. That area must be addressed. Will the Minister direct the IDA to put in place a package that will effectively tackle the unemployment crisis in Cork city? Natural justice demands no less.

I can assure the Deputy that the Government attaches a high degree of importance to achieving a balanced regional spread for inward investment projects and I have taken a keen interest in this issue throughout my period in office. I have visited many urban and regional centres to satisfy myself at first hand as to the opportunities and the difficulties that exist relating to industrial development and employment creation possibilities. I am also satisfied that all the agencies for which I have responsibility are conscious of the importance of that goal and are implementing programmes informed by the importance the Government attaches to its achievement. As I announced yesterday, the IDA will be pressing ahead with its new regional policy which will involve financial incentives now biased in favour of smaller regional locations, with higher grant levels as appropriate to each individual case; the involvement of private sector investors stimulating and supporting a major programme of modern advance factory construction at key locations; and working in partnership with local authorities to have available quality serviced sites at priority locations for new industrial investment.

In terms of jobs, there has been quite a positive spread in 1996 into all the larger population centres. Cork benefited particularly. In 1996 the IDA alone announced nine new investment projects providing an estimated new jobs total of 1,455. Already in 1997 four major projects were announced involving an estimated 840 new jobs — Kodak with an estimated 360 jobs, Moog Ltd. creating an estimated 80 jobs, Dovatron Ireland with 100 new jobs and Motorola with 300 jobs. Forbairt companies are also performing strongly, ahead of the national trend. Overall, the net gain in employment for IDA and Forbairt companies in 1995 and 1996 was 995 and 1,401, respectively. That compares with only 139 in 1994. Effectively there has been a tenfold increase in the net employment performance in Cork in the past two years.

However, I am equally conscious that Cork still continues to experience high unemployment. It is essential we continue to focus on developing indigenous enterprise and strengthening the foreign-owned base. The Government also intends pursuing macro-economic and fiscal policies to improve the overall competitive environment. Tackling unemployment effectively is more than just a matter of creating additional jobs. Potential employees need to be equipped with the skills to match the jobs being created. To ensure that those who are long-term unemployed can garner their share of new jobs the kind of sustained one-to-one counselling and training now being provided through the Cork Local Employment Service is also a vital component of a comprehensive response to the problem.

Deputy Quill raised many issues including tax policy and the Blackpool by-pass to which I do not propose to respond. However, I can assure her it is the Government's determination to introduce innovative approaches to tackle long-term unemployment. Many of the initiatives we set up last year are building effectively and I am pleased with the improved progress. The type of approach enshrined in the Cork Local Employment Service is the way to respond to this form of crisis. There must be a close one-to-one working with people who are long-term unemployed. Tackling the problem is not only a matter of job creation, which is second to none in Cork. I am very pleased with the progress in job creation there, but that is not our sole response. We must consider other approaches to tackle long-term unemployment and that is one of the priorities I continue to address in the Department.

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