Dáil Éireann debate -
Tuesday, 16 Feb 1999

Vol. 500 No. 4

Written Answers. - Skills Shortages.

Ivor Callely

Question:

116 Mr. Callely asked the Tánaiste and Minister for Enterprise, Trade and Employment the sectors experiencing difficulties in recruiting staff; the measures, if any, being considered to respond to employer difficulties; and if she will make a statement on the matter. [4251/99]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

In November 1997, the Government established an Expert Group on Future Skills Needs. The group was established as part of the business, education and training partnership to develop national strategies to tackle the issues of skills needs, manpower forecasting and education and training, for business.

The first report of the group examined key technological skills in the software and electronics sectors. As part of the response to the recommendations of the group, FÁS has received an additional £3.2 million in its 1999 allocation to train up to 800 people in these sectors. Enterprise Ireland has established a programme aimed at Irish people working abroad, to attract graduates back to work in Ireland. The national skills awareness campaign, run by Forfás, is currently updating its main brochure which will be distributed to all second level schools. As part of this campaign, an information web site is also being launched by Forfás. My Department and FÁS will continue to monitor the situation and remain in active consultation with other Departments on implementation of the recommendations of the first report of the expert group.

The expert group has also recognised that issues of skills and labour availability are also a matter for many occupations which do not require third level qualifications. It is now considering this broader area and reviewing sectors across a broad range of the economy, including construction, catering, office cleaning and clothing. I will await the outcome of its report with keen interest.

The issue of potential labour shortages in a growing economy is a complex matter which demands a multi-faceted approach. For my part, I will continue with the thrust of current Government policy aimed at creating, a business environment that is conducive to the supply of adequately skilled persons to meet the demands of the economy. On a macro level, I will continue to promote appropriate fiscal and structural policies aimed at facilitating and encouraging a return to work and improving the reward from work. The significant tax reform announced in the last budget which will see the introduction of a tax credits system represents a mojor step in this direction. This radical approach combined with tax changes, in particular those focused on the lower paid, represents a key element of a stragegy to improve the incentive to work. In the context of our current dynamic labour market we are refocusing the range and quality of active labour market programmes to match these to demand issues. The Estimates and budget of 1999 saw a significant re-orientation towards shorter, more focused programmes with a more direct labour market linkage. The employment action plan with its systematic focus on education and training for persons who are not job ready is also an important element in the strategy of matching labour supply and demand. Tackling outstanding unemployment and poverty traps also represents a further element of policy as part of an overarching strategy to ensure that we overcome potential labour supply bottlenecks.