Dáil Éireann debate -
Wednesday, 31 May 2006

Vol. 620 No. 5

Ceisteanna — Questions.

International Trade.

Trevor Sargent

Question:

1 Mr. Sargent asked the Taoiseach the level of imports and exports over the past 12 months for which information is available for all timber, energy and fibre crops, meat, poultry, dairy, mushroom, potato and various vegetable and herb products. [12179/06]

Minister of State at the Department of the Taoiseach (Mr. Kitt)

The information requested by the Deputy, with the exception of energy and fibre crop goods, is presented in table 1. For comparative purposes, information for the years 2001 to 2005, inclusive, is presented in table 2. Table 3 identifies the main constituents of each of the required commodity categories for 2005 with comparative data for 2004.

Table 1 - 2005

	Exports	Imports
	€ (000)	€ (000)
Timber	321,820	739,185
Energy and fibre crops*	n/a	n/a
Meat (incl. poultry)	2,179,967	554,482
Dairy	1,097,648	360,102
Vegetables (incl. mushrooms and potatoes)	162,674	326,425
Herbs and spices	2,076	13,156

*Presently the merchandise trade classification does not separately identify energy and fibre crop goods.

Table 2

	2001	2002	2003	2004	2005
	€(000)	€(000)	€(000)	€(000)	€(000)
Exports
Timber	231,901	272,754	290,855	302,596	321,820
Energy and fibre crops	n/a	n/a	n/a	n/a	n/a
Meat (incl. poultry)	1,594,119	1,744,491	1,857,618	2,054,023	2,179,967
Dairy	1,080,914	952,384	955,633	1,056,426	1,097,648
Vegetables (incl. mushrooms and potatoes)	165,611	164,438	176,291	146,772	162,674
Herbs and spices	1,030	1,857	1,757	1,760	2,076
Imports
Timber	519,875	519,195	594,730	672,446	739,185
Energy and fibre crops	n/a	n/a	n/a	n/a	n/a
Meat (incl. poultry)	391,594	383,673	416,512	481,294	544,482
Dairy	267,924	275,827	333,749	340,130	360,102
Vegetables (incl. mushrooms and potatoes)	294,647	313,827	315,448	306,093	326,425
Herbs and spices	11,314	11,887	12,029	15,262	13,156

Table 3

	2004	2005
Timber	Exports	Imports	Exports	Imports
Commodity type	€(000)	€(000)	€(000)	€(000)
Beech	10	2,029	27	2,612
Oak	547	19,375	330	22,011
Pine	8,555	21,136	9,248	22,601
Spruce	26,935	101,167	20,318	118,541
Tropical	1,706	76,037	2,085	86,302
Wood Products (incl. windows & doors)	17,357	174,856	15,352	195,767
Other Wood	247,486	277,846	274,460	291,351
Total	302,596	672,446	321,820	739,185

	2004	2005
Meat (incl. poultry)	Exports	Imports	Exports	Imports
Commodity type	€(000)	€(000)	€(000)	€(000)
Beef, fresh or chilled	1,015,538	20,461	1,121,140	30,392
Beef, frozen	127,485	26,847	115,711	18,268
Beef, processed	157,711	13,685	143,495	23,390
Lamb, fresh or chilled	170,859	4,640	175,874	5,029
Lamb, frozen	86,095	11,239	103,964	18,640
Lamb, preserved	3,824	988	6,523	950
Pork, fresh or chilled	93,969	79,085	112,037	95,060
Pork, frozen	12,860	3,426	16,871	3,166
Pork, preserved	101,093	73,875	89,203	63,126
Poultry, fresh or chilled	48,321	91,683	58,084	101,810
Poultry, frozen	30,697	55,687	30,798	66,952
Poultry, processed	170,637	61,445	167,375	71,063
Other fresh or chilled meat	921	1,325	701	1,678
Other frozen meat	57	2	0	9
Other preserved meat	33,956	36,906	38,191	44,949
Total	2,054,023	481,294	2,179,967	544,482

	2004	2005
Dairy	Exports	Imports	Exports	Imports
Commodity type	€(000)	€(000)	€(000)	€(000)
Birds eggs	3,633	11,627	4,042	13,214
Butter	361,894	10,145	327,014	10,560
Buttermilk	20,171	1,799	26,604	2,902
Cheese	358,336	97,228	384,768	85,603
Ice-cream	10,804	33,498	11,097	36,921
Milk and cream	225,158	128,869	250,910	145,909
Milk constituents	4,958	782	10,846	197
Whey	54,754	9,310	69,794	13,862
Yoghurt	16,718	46,872	12,573	50,934
Total	1,056,426	340,130	1,097,648	360,102

	2004	2005
Vegetables (incl. mushrooms and potatoes)	Exports	Imports	Exports	Imports
Commodity type	€(000)	€(000)	€(000)	€(000)
Cabbage, cauliflowers, broccoli, etc.	3,335	9,648	5,223	13,515
Carrots, turnips, etc.	400	7,264	686	9,883
Lettuce, chicory, etc.	1,465	9,736	1,443	13,010
Mushrooms	90,853	2,102	111,505	1,912
Other mushrooms, prepared or preserved	7,140	385	30	621
Onions, leaks, etc.	1,190	19,607	4,434	19,680
Other onions, leaks, etc., prepared or preserved	922	2,080	140	1,528
Peas, beans and pulses	360	5,563	577	6,613
Other peas, beans and pulses, prepared or preserved		115		128
Potatoes	4,923	15,507	1,560	15,560
Other potatoes, prepared or preserved	16,171	85,841	17,328	89,807
Tomatoes	1,372	25,737	3,711	32,403
Other tomatoes, prepared or preserved	289	10,328	209	8,368
Other vegetables, fresh, chilled or frozen	1,675	78,853	8,719	75,688
Other vegetables, prepared or preserved	16,677	33,327	7,109	37,709
Total	146,772	306,093	162,674	326,425

	2004	2005
Herbs and Spices	Exports	Imports	Exports	Imports
Commodity type	€(000)	€(000)	€(000)	€(000)
Cardamons		96	4	50
Cinnamon		139		108
Cloves		181		172
Coriander, cumin etc.	7	392	6	452
Curry		731	101	967
Ginger	1	541	—	498
Mace		6		5
Nutmeg		170		122
Pepper	28	3,181	48	2,977
Saffron and Tumeric	56	120	3	126
Thyme and Bay Leaves	1	839	2	968
Vanilla	1	1,794	2	666
Other spices, ground	1,594	5,194	1,828	4,155
Other spices, unground	72	1,878	82	1,890
Total	1,760	15,262	2,076	13,156

Mr. Sargent

Will the Minister of State at least inform me of the way the information is collected? Is he able to say in respect of imported food whether it is apparent from these figures if the food originated in Ireland and was exported and processed in India, for example, before being re-imported? How would such food be categorised in the import and export figures which I have requested? Is it possible to deduce what traceability exists so we can be accurate about those figures?

Mr. Kitt

The data presented here are a combination of custom base, non-EU trade statistics. It estimates from the Interstat survey of Irish traders involved in trade with other EU member states. With regard to food, some of the questions relating to traceability would be more appropriately directed towards the Minister for Agriculture and Food.

Mr. Sargent

I did so. I was directed backhere.

Mr. Kitt

We do not have that detail. We simply have a list of commodity types such as beef — fresh, chilled or frozen — lamb, pork etc. Questions on traceability are more appropriate to the Minister for Agriculture and Food.

Mr. Sargent

I raised the question with the Minister for Agriculture and Food and it was redirected to the Taoiseach. We must get to the bottom of the question. The import and export figures given in the response must be verified as such because food is no longer simply imported or exported. Food is processed along the way and other issues arise with regard to food safety, climate change arising from CO2 emissions and food transport, all of which need to be evaluated. These figures appear to be half-baked because they do not reflect the reality of how food is manufactured, traded and consumed around the world. It is time we differentiated those elements in the figures because, as they stand, they are not detailed enough to give the full picture.

Mr. Kitt

I will be glad to revert to CSO officials to ask them what they can provide in addition to the detailed information they have given. I will be interested to see what further details are available to get to the bottom of the question, as the Deputy has requested.

Wage Levels.

Ruairí Quinn

Question:

2 Mr. Quinn asked the Taoiseach if his attention has been drawn to a report by the Central Statistics Office that reveals that hourly earnings only rose by 2.1% in 2005 while inflation rose by 2.5%, and that relative fall is the first since the days of high unemployment during the 1980s; and if he will make a statement on the matter. [18193/06]

Mr. Kitt

The Central Statistics Office publishes quarterly releases on earnings in the following sectors: industry, distributive trades and business services, the financial sector and the public sector. The latest figures available are for the fourth quarter of 2005. They showed an annual increase of 3.4% in average weekly earnings for all employees in the industrial sector, 5.7% in the distributive trades, 5.6% in the business services sector, 5.1% in the financial sector and 6.2% in the public sector, excluding health. The consumer price index, also published by the CSO, rose by 2.5% in the 12-month period to December 2005.

The earnings figures for the industrial sector also include a breakdown for broad occupational categories. Weekly earnings increased by 3.1% for manual workers and by 3.7% for clerical and managerial workers in industry between the fourth quarters of 2004 and 2005. Further details of hours per week and average hourly earnings are available for manual workers in industry. They show an annual increase of 2.1% in earnings per hour for manual industrial workers and an increase of 1% in their average hours worked per week.

The trends in industrial earnings represent the situation for about one sixth of all employees. The industrial sector accounts for 266,000 employees, out of a total of 1,653,400 employees across all sectors, as measured by the latest quarterly national household survey for quarter four of 2005.

Mr. Quinn

I understand the Minister of State is responsible simply for reporting on the statistics. Within that constraint I invite him to ask the CSO to examine what level of displacement the figures suggest. It appears that average earnings in the low-skilled sector, relative to other sectors, have reduced, which may be evidence of displacement. Anecdotal evidence suggests that Irish people who are currently unemployed are failing to get jobs in the open market because incoming workers from other jurisdictions accept rates of pay below what would previously have been acceptable to Irish workers. I am seeking a statistical reinforcement of that analysis. Can the Minister ask the CSO to prove the figures? Is the minimum wage, for example, without overtime or double time, being offered to workers on a shift pattern of seven days on-five days off, irrespective of whether those days fall on a Sunday or a bank holiday, as happened to a person in my constituency?

Mr. Kitt

That relates to a different area but I will comment on it. Interesting data have been published today in the latest quarterly national household survey on employment. Deputy Quinn raised the issue of manual workers in industry. Over the past five years, up to December 2005, hourly earnings for those workers grew by 32.8% and prices rose in the same period by 17.3%, which paints a different picture from that in the Deputy's question. In the ten years to December 2005 hourly earnings of manual workers in industry grew by 67.5% and prices rose by 35.5%. There is a duty on all of us to ensure the social partnership discussions on the minimum wage focus on the plight of lower paid workers.

This morning I read the most recent quarterly national household survey and Deputy Quinn's question is relevant to what is contained therein. Employment has increased by almost 90,000, of which close to 50,000 are foreign nationals. The news on the growth of the economy and on employment growth are good, with almost 2 million people now in work. I held a brief meeting with CSO officials on the figures this morning and there is strong growth in construction, in wholesale and retail and in the financial and business sectors. The areas where we need to be vigilant about the potential for displacement include food processing, hotels and restaurants. The Government and the social partners will exercise vigilance in these areas but the overall picture painted by the quarterly national household survey is positive, with many new jobs created for Irish people and non-nationals.

Mr. Quinn

I thank the Minister of State for the additional information, which I presume is now available to all Members. Does he not share my concern that if he and I were among the 45,000 Irish workers around the country who have been unemployed for over a year, some under the age of 25, there is something wrong with our economy in the fact that of the 90,000 welcome new jobs, 50,000 go to foreign nationals?

An Ceann Comhairle

As Deputy Quinn rightly pointed out, the Minister of State is responsible simply for the statistics.

Mr. Quinn

The Minister of State responded and the Ceann Comhairle allowed him. I am trying to maintain balance.

An Ceann Comhairle

The Chair must be careful not to allow these questions to be turned into policy questions or we will be here all day.

Mr. Quinn

Within the realm of his responsibility, and given that he quoted the figures in response to my supplementary question, can the Minister of State ask the CSO to examine why there has been an increase in the long-term unemployed, by which I mean those out of work for a year or more, including those under the age of 30, from approximately 43,000 to approximately 45,000 in the past year, against the background of an economic performance for which most countries in the European Union would die? My concern is that Irish people are being left behind.

Mr. Kitt

I thank the Ceann Comhairle for allowing us to explore these issues. According to the data published today the total number in the labour force stands at 2,086,300, which accounts for 62.2% of all persons aged 15 or over. The Deputy's question was about long-term unemployment, which actually decreased by 1,600 to 26,200, the corresponding rate falling from 1.4% to 1.3%. That is an important figure but I agree with the Deputy that the Government and social partners must be very vigilant on the plight of low-paid, manual industrial workers. The Government will maintain its focus in that area.

Mr. Boyle

Do the statistics indicate a casualisation of labour? To what extent does the CSO collect statistics on how casualisation of employment affects women? Are there separate statistics to show whether the gap between the rise in incomes and the rise in inflation in 2005 is more pronounced among women workers? Are specific statistics available on the average number of hours being worked by employees in this category? Anecdotal evidence indicates that a significant and increasing number of people work fewer than 19.5 hours per week, the threshold under which employment is classified as casual. In light of the shift towards a seven day, 24 hour economy, are statistics available on the days on which persons in this category work? Many of those engaged in this type of work are women casually employed in large multiple stores.

In 2005, the Government, through the Central Statistics Office, announced that the number of people in employment had increased by 95,000 over the previous year. Given that the number of taxpayers did not increase by a similar number, does this indicate that a considerable gap exists between the types of jobs being provided and the rates being paid?

Mr. Kitt

The employment heading covers all persons engaged by public bodies, including full-time employees, permanent and temporary, part-time employees and persons on holidays, maternity leave or temporary absence due to illness. The CSO is carrying out a new survey to measure earnings more comprehensively. The information from this survey will be more comprehensive than the statistics available from the current range of surveys and the main results will include trends in employee earnings and employers' labour costs. Information will also be compiled on employment job turnover, job vacancies and the number of employees on the minimum wage. A breakdown of the results by sector and broad occupational group will also be available. The CSO is, therefore, bringing many new statistics into play.

I propose to refer briefly to the new information available on women at work from the quarterly national household survey. The survey indicates that 25,000 additional married women, primarily in the 45 to 54 years age group, are at work. Much of the data and many of the issues raised by Deputy Boyle will be useful for future planning purposes.

Lisbon Agenda.

Phil Hogan

Question:

3 Mr. Hogan asked the Taoiseach the progress to date of Ireland’s implementation of the Lisbon Agenda; and if he will make a statement on the matter. [11345/06]

Pat Rabbitte

Question:

4 Mr. Rabbitte asked the Taoiseach if he will report on the progress to date with regard to the implementation of the Lisbon Agenda here; and if he will make a statement on the matter. [14872/06]

Joe Higgins

Question:

5 Mr. J. Higgins asked the Taoiseach if he will report on the progress to date in implementing the Lisbon Agenda. [16031/06]

Caoimhghín Ó Caoláin

Question:

6 Caoimhghín Ó Caoláin asked the Taoiseach if he will report on the implementation of the Lisbon Agenda; and if he will make a statement on the matter. [16093/06]

Trevor Sargent

Question:

7 Mr. Sargent asked the Taoiseach if he will report on progress in implementing the Lisbon Agenda; and if he will make a statement on the matter. [16194/06]

Phil Hogan

Question:

8 Mr. Hogan asked the Taoiseach the progress made on the implementation of the Lisbon Agenda; and if he will make a statement on the matter. [17870/06]

Minister of State at the Department of the Taoiseach (Mr. Treacy)

I propose to take Questions Nos. 3 to 8, inclusive, together.

The Lisbon Agenda remains of strategic importance to the Irish and European economies and the quality of life of our citizens. The Government is fully committed to the Lisbon Agenda and has been supportive of the process from the outset. Last year, following a mid-term review of the Lisbon Agenda, the European Council decided to focus on the urgent priorities of growth and jobs. Each member state was required to prepare a national reform programme to address an integrated package comprising macroeconomic, microeconomic and employment policies. All member states are working together to address the key challenges, such as the need for greater research and innovation, creating a favourable environment for small business and jobs.

This approach is operating in tandem with a Europe-wide social partnership process, with all the main stakeholders working together to achieve the necessary pace of reform and progress. Member states are conscious of the need to keep an eye on the global picture. The European Union now competes directly with other regions of the world for mobile investment in knowledge and research and the external dimension of competitiveness must acknowledge this reality.

Ireland prepared its national reform programme in autumn 2005. The programme covers a three-year period to 2008 and will be reviewed annually. It recognises that the overall challenge is to sustain and improve Ireland's recent good economic performance. The programme includes a range of measures to ensure sound public finances, enhance our competitiveness and deliver sustainable employment. The various measures are drawn from the existing policy framework, including the programme for Government and the current social partnership agreement, Sustaining Progress. Implementation of Ireland's NRP is under way and the Departments of Finance and Enterprise, Trade and Employment have lead responsibility for the macroeconomic, microeconomic and employment guidelines, respectively.

Our social partnership process is a significant element of our overall strategy to sustain growth and job creation in accordance with the Lisbon Agenda. Negotiations on a new social partnership agreement are under way and any new policy directions or initiatives arising from these negotiations will be incorporated in the national reform programme over the three year timeframe.

Caoimhghín Ó Caoláin

A key element of the Lisbon strategy is the commitment to tackle gender inequality and ensure that a greater number of women are facilitated to take up their place in the workforce. Is the Minister of State aware that there is a pay gap between men and women's earnings across the European Union of 15%, a figure also reflected in the Irish experience? Is he aware that the Taoiseach, in his report on the Lisbon Agenda, stated that the ESRI had been commissioned to do a report on the graduate gender pay gap in Ireland? Will the Minister of State indicate the current status of the report? Has it been completed and presented?

Mr. Treacy

To which report is the Deputy referring?

Caoimhghín Ó Caoláin

In the Taoiseach's report on the Lisbon Agenda he stated that the ESRI had been commissioned to do a report on the graduate gender pay gap in Ireland. If the Minister of State has the information to hand and is in a position to answer my questions, that is well and good, but if not, I ask him to furnish the details subsequently. Has the report been completed and presented, and what are its findings?

The low paid and part-time employment sectors already show a pronounced imbalance between the sexes, with women predominating in both areas. Does the Minister of State agree that increasing the number of women employed in these areas is not an adequate response? Does he accept that the key in many cases is address of the child care issue and that additional measures need to be introduced to improve child care provision? I make no apology for saying that such measures, initially at least, must be biased in favour of families dependent on low incomes. A key needs to be produced that will open the poverty trap which denies women in such circumstances an opportunity to participate in the workforce if that is their choice.

Mr. Treacy

Ireland's priorities regarding the Lisbon Agenda are to maintain a stable macroeconomic environment and sound public finances, enhancing our competitiveness through investment in knowledge and innovation and continuing to deliver more and better jobs, including full employment opportunities for men and women alike.

The Deputy asked a number of questions pertaining to the ESRI report on gender equality. I am not aware that the report has been presented but I will pursue the matter and provide the Deputy with up-to-date information as quickly as possible.

I am pleased with the changes we have made in different sectors of the economy, including in taxation. These have given opportunities to women of all ages to choose whether to enter the workforce, the sector in which they wish to work and whether to take permanent or part-time employment. It is critical for all citizens, including women and specifically highly qualified and skilled mothers in the home who have completed rearing their families, that the new system in place, notably in the area of taxation, allows them to re-enter the workforce and offer the economy the benefit of their experience and skills.

Child care is a key issue in the modern economy. I am somewhat disappointed, however, that every decision to provide generous support for child care in recent budgets has resulted in an immediate increase in the cost of child care. In handling this situation through the creation of facilities across the country to distribute resources, we must be careful to avoid creating an inflationary spiral that would impede people from accessing existing opportunities, including their child care requirements. That balance must be carefully measured. I am pleased that we have been able to deliver child care services in urban and rural areas, which has not been the position in other services. Such services have been of major benefit to young mothers but there is still much more to be done as the economy grows and opportunities arise. Given the requirements of the economy, it is critically important that we continuously address the need to provide adequate child care. In that way, young people can meet their own responsibilities and have the choice to work in mainstream economic activities while being guaranteed a good, efficient, modern, professional and caring child care service. That is very important.

Mr. Stagg

At €800 a month.

Mr. Sargent

As it was not clear from the Minister of State's reply, I would like to know if the Lisbon Agenda has reported any progress on various aspects, including, belatedly, sustainability. Notwithstanding the objectives of competitiveness and improved technology referred to in the Lisbon Agenda, the impact of food transport in terms of climate change rose by 12% from 1992 to 2002. In the overall context, if one was to discuss competitiveness without sustainability we would be heading down a pretty ruinous cul-de-sac. I wonder whether the implementation of sustainability has been measured by the Lisbon Agenda and whether the Minister of State has anything to report on that score.

Mr. Treacy

Ireland welcomes the decision of Ministers to reach political agreement on the draft directive at the Competitiveness Council meeting on Monday, 29 May. The Council will formally adopt its common position at one of its forthcoming meetings and will forward the dossier to the European Parliament for a Second Reading. As regards the questions raised by Deputy Sargent, each member state is expected to submit a progress report by 15 October 2006. The EU Commission has issued guidance on the format of the progress reports and will hold bilateral discussions with officials in each member state over the coming weeks and months.

Overall, it is envisaged that the preparation of the progress report will mirror that of the national reform programme itself with the Department of the Taoiseach leading the co-ordination. The Department of Finance and the Department of Enterprise, Trade and Employment will have primary responsibility for the various policy areas, while other Departments will feed in material as appropriate. Initiatives emerging from current negotiations with the social partners will be reflected in the progress report.

A number of issues referred to by the Deputy were raised in this House earlier this year during the debate on the reform programme and in the Seanad debate also. They were incorporated into our final document which we submitted to Brussels as part of our national reform programme.

The Deputy raised the issue of food transport but I do not have information on it. I will pursue the matter and revert to the Deputy later. The issues raised here will certainly be taken up in the progress report. It will be my responsibility to take into account what the Oireachtas says on such issues, which I will include in the document to be considered for the progress report in October.

Mr. Costello

The Lisbon Agenda is very much a citizens' charter for employment, social cohesion, sustainable development and growth. From that point of view it is at the core of where the European Union is trying to go. Since it has been agreed, however, we have had the rejection of the Nice treaty in this country, and the second vote. In addition, France and the Netherlands have rejected the European Constitution, so there is a strong level of disillusionment concerning how the citizens of Europe are treated. There is a perception that they are not getting a fair deal and that in many cases Europe is somewhat irrelevant in the manner in which it is progressing, and is not responding to bread and butter issues of public concern. We have responded by establishing a national forum on Europe.

An Ceann Comhairle

A question please.

Mr. Costello

We are trying to find out what has gone wrong at the heart of that. How will we get the message out to people that Europe is good for them unless we implement the Lisbon Agenda in a macro sense? When Ireland held the EU Presidency in 2004, we had a review which found that the outcomes of implementing the Lisbon Agenda were disappointing across all 25 EU countries.

It is also disappointing in terms of social cohesion and what Mr. McCreevy was trying to do with his services directive, in addition to low incomes. The review also found that people had to rely on rent subsidies rather than having their own homes, and that there was a 15% gender gap between working men and women. The absolute inadequacy of child care and the lack of a proper energy policy were other elements of the review.

An Ceann Comhairle

A question please.

Mr. Costello

These are the questions concerning the Lisbon Agenda, including social cohesion and sustainable development, which are needed domestically. Where is all this happening? Nothing the Minister of State has said so far shows that there is any priority on the Government's part regarding any of these issues.

Mr. Treacy

Having watched RTE last night, I was pleased with its detailed survey carried out by consultants into the attitudes of changing Ireland over the past 20 years. A strong, conclusive figure in excess of 70% of those polled, said we should be deeply involved in and fully engaged with Europe and all its activities. The results of that survey were positive for the country. More than 80% of those polled were satisfied with Europe's contribution, which is good from a national viewpoint. Obviously, there have been some difficulties on the European scene, including the rejection of the European Constitution by France and the Netherlands. While elements of the European impression on citizens had a contribution to make to those decisions, other domestic issues were concerned also, which the research showed had a serious bearing on the outcome of those constitutional referenda. The fact that 15 EU countries have already sanctioned the European constitution, either by referenda or parliamentary decision, shows that there is a majority in Europe in favour of how we are progressing.

There is no doubt that there are challenges ahead. Ireland's economic success to date, includes the measure of employment and mainstream economic activities here. Foreign direct investment has added to direct jobs through sub-supply sectors that have been able to feed into the situation. These are all benefits stemming from Ireland's membership of the European Union.

Mr. Costello

What about social cohesion?

Mr. Treacy

Social cohesion is very important. The Deputy referred to Commissioner McCreevy, a man of outstanding political and intellectual ability.

Mr. Durkan

Like the Minister of State.

Mr. Treacy

That is for others to say. I could never judge.

Mr. Durkan

We may as well elevate everyone accordingly.

Mr. Treacy

In all fairness to Commissioner McCreevy, he did an outstanding job here, revolutionising the tax regime.

Mr. Costello

Thankfully, he has gone to greater things.

Mr. Treacy

He helped to create a modern economy, but he inherited——

Mr. Durkan

That is why they got rid of him.

Mr. Stagg

Is that why he was sacked?

Mr. Durkan

He walked the plank.

An Ceann Comhairle

The Minister of State without interruption, please.

Mr. Treacy

To be fair to the man, he was asked to make a global contribution to Ireland and Europe at a higher level.

Mr. Durkan

He was asked to take a global walk.

Mr. Stagg

He was sacked by Fianna Fáil.

An Ceann Comhairle

That does not arise from this question.

Mr. Treacy

As is traditional with my party, when one is asked to serve, one does so. That is the spirit with which we are imbued.

Mr. Costello

He did so when he had no choice.

Mr. Stagg

The changes were forced down his throat.

Mr. Durkan

He was not supported from the backbenches.

Mr. Treacy

In all fairness, I must say that Commissioner McCreevy inherited the services directive. He saw the need for changing it and he did so. He called it very quickly. Within three weeks of taking office, he said it would not work. He set about changing it. He brought forward the changes and following the outcome of the European Parliament vote, the European Commission came forward with a revised proposal on the services directive on 4 April last. The proposal was discussed initially at an informal meeting of the Competitiveness Council on 22 April last. It was agreed last Monday and will go before the Council.

At the end of the day, the Lisbon Agenda, Ireland's national economic policies and the Government programme are very much at one with regard to equality of opportunity, greater investment across all sectors, ensuring gender balance and mainstream engagement for all of our people, and ensuring we maintain a competitive economy and control inflation. All of that can sustain existing jobs and create more.

At present 70% of jobs across Europe come from the services sector. It is crucially important that we are aware of this and do not get left behind, and that we maintain our economic operations in a way that will take full account of the opportunities that this presents for us. We have the capacity as a people, the skills, the educational base and the economic and professional track record to be able to take advantage of these professional services and deliver them to Europe and other parts of the world. We must maintain an economy that will allow us to do this.

Mr. Durkan

That was a future leader speaking.

Mr. M. Higgins

There is a crisis in regard to the implementation of the Lisbon Agenda. Does the Minister of State agree that the following is the basis of that crisis? In every country, particularly France and Germany, where it has come to the fore, there is a perception that the Lisbon Agenda — adopted in 2000, at its mid-term point in 2005 and due to be completed in 2010 — was a text carefully balanced between the two concepts of competitiveness and cohesion. There is dissatisfaction in many European countries with regard to the virtual abandonment of the cohesion element.

In the Taoiseach's speech to the Dáil and in the press release from the Department of the Taoiseach on 23 May, the word "competitiveness" occurs several times while the word "cohesion" occurs once. What is the significance of the two elements of cohesion and sustainability? They are regarded in the Taoiseach's text as complementary to the major issue of competitiveness, defined in the revised programme in terms of growth and jobs.

Is the Minister of State aware of the grave disappointment among the citizens of Europe at the abandonment of the cohesion element? Does he agree that in the statements made at the mid-term review and those made as late as last week, not a single coherent figure is given for the attainment of any of the cohesion elements, be it leaving school early, differences in income, differences in regard to the housing market and so forth?

The stress on competitiveness for inter-regional competition in a global economy is an attempt to deliver to the employers' side cheap labour and is at the same time a comprehensive betrayal of practically every element of cohesion aimed at reducing inequality, and also a betrayal of sustainability, which was aimed at ecological and environmental responsibility with regard to growth. In several countries across Europe, the cause of dissatisfaction is the tearing up of the cohesion element in the Lisbon accord. I say this as one who would support the Lisbon accord because of its balanced text.

Mr. Treacy

As always, Deputy Higgins raises a number of interesting issues. Competitiveness and cohesion are linked in that if we do not have one element, we will not have the other. It is critically important that we maintain our competitive edge while being able to have a cohesive operation. The Lisbon Agenda is of critical importance to citizens throughout the European Union. It was reviewed last year and has been successfully relaunched with a focus on growth and jobs.

Mr. M. Higgins

Exactly. There is a neglect of cohesion.

Mr. Treacy

This has resulted in each member state preparing a national reform programme. The Heads of Government are fully committed to delivering over a three-year period on the range of actions set out in the programmes, including competitiveness and cohesion.

The Deputy referred to cheap labour. Nobody in Ireland could suggest that anybody at political level is committed to cheap labour.

Mr. Stagg

We do not believe the Minister of State.

Mr. Treacy

We introduced a minimum wage.

Mr. Stagg

It is a maximum wage for many people.

Mr. Treacy

We have a social partnership agreement. We are in negotiation to ensure there is a balance between the requirements of that which is good for the Government, citizens and nation, the requirements and rights of employees and the responsibilities of employers. We want to find a consensus that mirrors the situation in Europe. Most European countries, including the smaller countries who have joined, want to model Europe and themselves on the success we have achieved through our cohesive polices, taking into account the importance of the social charter, the social capital that is so important for——

Mr. M. Higgins

What of the poverty gap?

Mr. Treacy

That is a relative statement. From my 24 years in public life, I believe there has been a huge elimination of poverty. The number of people in poverty who visit me in my office or in my weekly clinics is much lower now than ever before.

Mr. Hayes

The Minister of State is attracting the well-off now.

Mr. Treacy

When I first came into office, poverty was a serious problem. The two serious issues when I entered politics 24 years ago were young people without hope looking for jobs. We were giving them very low——

Mr. Neville

What about houses?

Mr. Treacy

I am referring to 24 years ago.

Mr. Durkan

They are still looking for houses.

An Ceann Comhairle

That does not arise from the question. The Minister of State, without interruption.

Mr. Treacy

Deputy Neville is as usual throwing in a red herring. There are a few people in his city who have a major responsibility in that field for the whole western area, including for Deputy Michael D. Higgins's area and my area. Deputy Neville might have a word with them to tell them they changed the goalposts and changed the games, and that we would like it to go back to the old game to make sure we get equity in the delivery of the resources allocated to us. That is important and a few well-paid people should have a look at that situation.

Mr. Neville

What is the Minister of State saying about Limerick?

Mr. Treacy

To return to Deputy Higgins's point, it is critically important that we work in a way that takes into account the value, independence, rights and choice of each citizen, that we run a competitive economy and that we take into account not alone the contribution that all citizens can make to developing that economy but also the role they can play in developing social capital. This social capital is traditional to this country, vital to our value system and critical to the economy as an add-on to the delivery of public services by whatever Government is in office. We must mirror that and work to enhance it across the European stage through the Lisbon Agenda to ensure we have a competitive Europe and that we are able to maximise its capacity to grow resources for redistribution across all regions and member states, to take into account the disparities within the regions and provide a greater transfer of resources to bring everybody up to an equal base.

Mr. Durkan

Will the Minister of State offer an opinion as to whether the Lisbon Agenda is travelling in accord with the European project in terms of cohesion and integration? Is the Lisbon Agenda trailing behind or is the European project running ahead? Which is the better of the two? Are they likely to converge or will we have a situation where one runs ahead of the other indefinitely?

Mr. Stagg

The Minister of State seems to be suffering from a delusion that there are universal, high standard child care facilities throughout the State. Is he aware of the normal cost of child care facilities, which runs at €8,500 per year per child?

An Ceann Comhairle

That does not arise from this question on the Lisbon Agenda.

Mr. Stagg

It arises directly from the Minister of State's response and from the Lisbon Agenda, which aims to provide these facilities. Is the Minister of State aware that if a parent on the minimum wage has two children, the cost of child care facilities is equal to the total income of the family? Will the Minister of State tell us where the facilities are located or has he provided——

An Ceann Comhairle

That is a question for the line Minister.

Mr. Stagg

Has he provided child care facilities for people on minimum wage, who cannot afford to pay €8,500 per child?

Mr. Treacy

To respond to Deputy Stagg, I stated that for the first time ever in the delivery of child care services, they were delivered on an equitable basis in urban, rural and provincial Ireland.

Mr. Stagg

The sum of €8,500 is not an equitable basis for those on minimum wage. The Minister of State is misleading the House.

Mr. Treacy

The Deputy did not refer to what I also said. I said that the generosity of Government in successive budgets in delivering to child care has led to inflationary prices in child care services.

Mr. Stagg

It is putting money in the pockets of the speculators who are building these child farms.

Mr. Treacy

I cannot understand that and do not know the reasons for it. Moving on to Deputy Durkan's position, in all fairness we lodged our national reform programme with the European Commission on 28 October 2005. The first year of progress will be reviewed between now and next October which is a short time span. Within the whole European project the Lisbon Agenda is critically important to creating the fiscal, financial and revenue resources necessary for a solid, cohesive Europe where the resources generated can be redistributed and transferred on a equitable basis to the different regions of Europe and the member states who require them, taking into account the different disparities to ensure equity for all and fairness in the system. From a competitor's and a cohesion point of view, the Lisbon Agenda has the economic instruments that will help deliver it into the future.

Mr. Durkan

We should convert that into the European project.