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Dáil Éireann debate -
Thursday, 6 Nov 1997

Vol. 482 No. 5

Other Questions. - EU Employment Summit.

Róisín Shortall

Question:

7 Ms Shortall asked the Tánaiste and Minister for Enterprise, Trade and Employment the consideration, if any, she has given to the new EU strategy aimed at almost halving unemployment over the next five years; the implications, if any, of this employment policy for Ireland; and if she will make a statement on the matter. [18347/97]

Emmet Stagg

Question:

57 Mr. Stagg asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will be attending the EU employment summit in Luxembourg on 20 and 21 November 1997; if she will give details of the nature of the submission on behalf of Ireland to the common guidelines on employment under the Amsterdam Treaty which will be concluded at the employment summit; and if she will make a statement on the matter. [18352/97]

Proinsias De Rossa

Question:

67 Proinsias De Rossa asked the Tánaiste and Minister for Enterprise, Trade and Employment the position the Government will adopt at the special EU employment summit on 20 and 21 November 1997; if she will give details of the membership of the Irish delegation; and if she will make a statement on the matter. [18244/97]

I propose to take Questions Nos. 7, 57 and 67 together.

The employment summit in Luxembourg later this month reflects the ongoing concern in the European Union at the prevailing level of unemployment affecting 18 million people. One of the major objectives of the summit is to move beyond the general recommendations agreed at recent European Councils and adopt a strategy based on concrete actions and targets to which the member states will commit.

The European Commission's proposed employment guidelines are based on a four pillar framework that seeks to promote entrepreneurship, employability, adaptability and equal opportunities. We are positively disposed towards this framework and the general direction of the policy prescriptions proposed. They are very much in line with the policies being pursued by the Government.

The recent labour force survey findings point to the strong growth in job creation in the economy with 41,000 additional people at work in the last year. This is having a positive impact on unemployment with the Irish unemployment rate less than the European average for the first time in many years. The Irish unemployment rate is still exceptionally high. The Government is determined to make further substantial inroads into the number of people unemployed. The proposals before the employment summit will assist us in this regard. The progress being made here in increasing employment and reducing unemployment is the envy of some of our European neighbours.

With regard to the delegation to the summit, this is a matter for the Presidency which I understand has indicated that it should comprise the Taoiseach accompanied by the Minister for Foreign Affairs as specified in Article D of the Treaty of the European Union.

Despite the heart-warming figures he quoted, does the Minister accept that unemployment continues to be an outrageous reality for many thousands of families? Does he accept that many regions, particularly the north-west in Donegal and Sligo, in addition to the Dublin area, still experience very significant unemployment, including huge pockets of anything between 30 and 60 per cent concentrated in some constituencies? No doubt he will be aware of the totally unacceptable level of 60 to 70 per cent in several parishes in the constituency of the

Tánaiste, yet after four months in office this Government has not come up with a single proposal to rectify that overall position.

Given that the long-term unemployed, comprise many individuals who left the education system early and perhaps became involved in vandalism and drugs-related crimes, in addition to those aged 30-plus who did not finish second level or vocational education, what proposals has the Minister to compensate those in greatest need of training?

While I have reservations about the euro road on which we have embarked — it appears that this House has locked us into that commitment which is to be announced next spring and about which no doubt the Minister for Finance will have some comments to make — what proposals has the Minister for the 70 per cent of indigenous industry dependent on exporting to the United Kingdom? I am thinking of companies like those in my constituency, such as Cadburys and many others, particularly those engaged in the food industry. What proposals has the Minister to protect such companies over the next four or five years if, as some people fear, the road to the single currency proves to be an extremely rocky, treacherous one?

Deputy Broughan covered a vast area in his questions.

The Government believes that our unemployment levels are exceptionally high and I fully concur with what he said about various pockets of the country, of this city and of my own constituency where this problem manifests itself. Through the policies adopted to date and initiatives taken in Government which are currently being renewed, along with future proposals, we shall address the position. There is no question of these levels being allowed to continue. We are in constant change because of changes taking place within society generally consequent on technological advances and so on. The Government has many ideas and is prepared to take decisions and make the capital available to put in place structures and provide opportunities to facilitate young people coming into the jobs marketplace. Our proposals will take account of retraining for those already in the marketplace and those who have not yet had an opportunity.

To claim that the Government has not taken any action or initiative would appear to suggest that Deputy Broughan has not been observing them or listening to the positive announcements made which I have no doubt will prove to be of enormous benefit generally over the next five years.

Of course there will be enormous changes on the introduction of the euro. Some contend it will be a rocky road and others claim it may not be that rocky. It is eminently desirable that we should be part of an international currency consensus to ensure we can compete without any latent impediments in getting our products to the marketplace, thereby ensuring jobs are created.

We face major challenges in addressing our high rate of unemployment but we are on the right road. The commitment of the Government and State agencies, current economic growth and the expected commitment from the European Union summit in the spring will permit us to achieve what we desire, namely, employment for as many people as possible on this island.

Is the Minister of State honestly asking us to accept his bona fides about halving unemployment during the next five years, despite the Minister's assertion that by 1999 we will not be able to provide the same type of grants the IDA has been giving to manufacturing industries and internationally traded financial services? The most significant increase in employment has occurred in these areas and it will slow down in the future because IDA grants cannot be given. Will the Minister of State explain how he can state that the Government will give capital grants to create further jobs if we are to be bound by the European Commission to desist from providing such grants? How can he square that circle? He is contradicting the Minister.

Deputy Owen is misinterpreting our comments. There is no contradiction on this side of the House and we are as one in our efforts to achieve the goals we set ourselves. There is a commitment throughout the EU to try to reduce the exceedingly high rate of unemployment in member states. The Government admits that, on a pro rata basis, the rate in Ireland is exceptionally high. Our comments cannot be interpreted as meaning that the future will be drastic.

We are public representatives and, regardless of the level at which we serve, from the time we first speak in that role our utterances may prove advantageous or disadvantageous to the country. Proposals exist which, if accepted, may curtail the amount of grants that may be given. They will be resisted because Ireland has special problems. We will fight to ensure that we obtain the best possible advantages in respect of investment opportunities and grant facilities so that we continue to attract high tech and mobile industries and create further employment.

The Minister stated that the level of those grants would be reduced.

Deputy Owen stated earlier that grants might be terminated. However, the Minister stated that we may not be able to give the same level of grants. We will work to achieve a facility which is in the best interests of our country and its economic growth and financial stability. In addition, we will ensure that we continue to create employment. As an island nation, Ireland has specific problems which the European Union must address. There is no danger that drastic measures will take effect before the year 2000. If possible, we will continue to resist and obtain a derogation for Ireland. We will work in a positive and responsible manner because there is no point in informing the European Union or the international community that we accept this situation as a fait accompli. We will not accept it as such until we have negotiated to the maximum capacity of our abilities to discharge our obligation on behalf of the people.

With regard to duty free, everyone will admit that the Taoiseach, while serving as Minister for Finance in 1992, sold us out in Brussels. He effectively destroyed my constituency, Dublin Airport, Shannon Airport, Cork Airport, Ryanair and Aer Lingus. He may have been inexperienced but he displayed woeful incompetence. Why should we have confidence in the Minister of State's assertion that the Government will protect our interests in respect of grants? What will be the estimated cost of the advent of the euro to domestic industry in terms of exports lost?

That is a big question and I am not able to provide an answer to it.

Is the answer contained in the Minister of State's brief?

Does a civil servant have the answer?

No, but I will follow up on the Deputy's question and communicate with him later. Deputy Broughan made a cheap political shot in respect of duty free.

What I stated is a matter of historical record.

The Deputy should carry out research into the parliamentary debates of this House and reflect on the fact, in Government, my party created the current economic climate in Ireland which has become the envy of the world. At that time the Deputy's party and other parties in this House had a negative attitude which said it could not work.

The Minister of State sold us out.

We saved the day on many occasions.

The Minister of State sold the country down the drain.

The Minister of State sold us out on the duty free issue.

We have negotiated derogations and postponements. We are pragmatists and we accept reality. It is not over yet and Deputies can be sure that as long as we are in Government we will get the best possible deal for workers and the nation as a whole.

The Minister of State had his chance.

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