Vol. 682 No. 5
60 Deputy Bernard Allen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has full confidence in her Department to meet the challenges of rising unemployment; if current or former members of the Government have expressed concerns to her over the Government’s employment strategy; and if she will make a statement on the matter. [19881/09]
I have full confidence that the Government and my Department will continue to do everything in their power to meet and respond effectively to the challenge of rising unemployment. As a result of the global economic crisis, rising unemployment is a problem that is affecting all economies but it is a priority issue for both myself and my Department. As such I have already taken considerable measures to respond to this pressing challenge.
This includes doubling the capacity of the job search supports system provided by FÁS employment services and the partnership-based local employment service to 150,000 places per year for referrals under the national employment action plan. In addition, as a result of efficiencies and a redeployment of resources announced in the supplementary budget, my Department is now funding approximately 128,000 activation training and work experience places through FÁS. This is a substantial increase on the 66,000 places which were available at the end of last year. Part of this increase in provision has been achieved as FÁS has re-aligned its focus to provide a more flexible delivery of training interventions for individuals to include on-line, evening and blended learning training options in addition to the more traditional mix of course offerings. The aim of these additional training places is to offer increased flexibility and flexible learning options to enable the unemployed to further develop their skill sets and competencies to secure employment as soon as possible.
Key to these developments has been the co-ordinated and integrated approach to activation between my Department, the Department of Social and Family Affairs and the Department of Education and Science. This has allowed us to produce a range of measures to expand services to the unemployed and to promote a flexible learning environment tailored to the specific needs of the individual. As a result of this joint approach the Government announced in the supplementary budget that €128 million was being redeployed to the activation area, which is resulting in the creation of 23,435 training and education activation places across my Department, the Department of Social and Family Affairs and the Department of Education and Science.
Included in the supplementary budget are specific new innovative measures such as a work experience scheme, which will provide 2,000 six-month places to individuals who are unemployed, and it will include the placement of graduates. A new training programme of 277 places at a cost of €1 million is being introduced for sustaining vulnerable employment. Under this programme 277 workers who are on a three-day week and receiving social welfare payments for the days they are not working will receive two days training a week for a period of a year. We are also introducing a part-time third level scheme whereby 1,500 third level places will be provided to enable persons who are unemployed to pursue third level certificate or degree programmes at levels 6, 7, and 8 on a part-time basis.
Additional information not given on the floor of the House.
The Government has also prioritised investment in the most productive sectors of our economy and has invested in the creation of jobs by cementing the foundations for export led recovery and growth. Through the supplementary budget the Government has made provision for more than €500 million for capital investment in enterprise through various Government initiatives administered by IDA Ireland, Enterprise Ireland, the county and city enterprise boards and Science Foundation Ireland, which is a clear statement of our priorities. The clear message it sends out to the world is that Ireland is open for business, open for investment and open for job creation by both indigenous enterprise and through attracting foreign direct investment.
In a relatively short timescale and in response to the challenge of rising unemployment, my Department has significantly expanded its provision of supports and training places to the unemployed. I am determined that both my Department and I will continue in this regard as we examine new initiatives and new methods to allow us to continue to respond to the needs of the unemployed.
I am glad to see the Minister is accompanied by a colleague. I was beginning to think she was somewhat isolated in the Government.
I am far from isolated in the Government.
That is not what I hear.
Tell me more.
George Lee is taking over from the Deputy.
This question is about the capacity of the Department to deal with the challenges before it, and it is interesting that the official who wrote the reply did not answer that question. This also relates to the comments made by the former Minister of State, Deputy John McGuinness, and the views expressed by other members of Fianna Fáil about the Department. Does the Minister honestly believe the Department has the capacity to understand fully the problems in the real economy and to take the necessary measures to act on them? It does not appear from what has been done to date that the Department or the Minister are able to respond adequately to the crisis confronting us.
I totally refute that comment. There is a fabulous team in the Department made up of myself, the Ministers of State, the Secretary General, assistant secretaries and all who support the Department, including Forfás, Enterprise Ireland, the IDA, county enterprise boards, the training agency, FÁS, and a host of other agencies which provide for the needs of business and those who are unemployed in this country. I firmly believe that, due to our electoral system, each Member of this House is acutely aware of what is happening in the world, regardless of their politics. It is wrong to claim that I and the team that is elected to represent the Department are not aware of the issues and challenges that exist. We have adequate resources although, of course, like any other Department we could spend more.
We have completely refocused the way the programmes are delivered by the Department. The focus is on supporting small and medium-sized enterprises, SMEs. I introduced a stabilisation fund to focus on the stability and sustainability of business and where there are new opportunities in the markets. That is the reason two of my colleagues are abroad on my behalf, one in Bahrain and the other in Russia. They are examining the new opportunities there for our SMEs. We will continue to refocus on and evaluate the needs of the business sector and the unemployed. The target in FÁS is to refocus available resources towards the unemployed.
Everybody is acutely aware of unemployment. However, is it worthwhile for Members on this side of the House to make suggestions? We have been encouraged to make suggestions. They are constructive. There is no gain for us other than to try and get people off the live register. Is consideration being given to a redrawing of the national development plan to prioritise labour intensive projects? For example, €600 million could be front-loaded to the schools building programme, thus providing jobs for many of the workers who have been made redundant in the construction sector.
What is the Department doing to incentivise job creation? My party has suggested a two-year PRSI holiday for employers who recruit persons who have been unemployed for four to six months or more. Every job lost costs the Exchequer €20,000 in terms of welfare benefits and tax forgone, without taking account of the statutory redundancy due to any person who has been in his or her employment for more than two years. It makes good economic sense to front-load the national development plan with labour intensive projects that would provide employment for construction workers, engineers, architects and others who are losing their jobs on a daily basis. This is only one initiative in terms of incentivising job creation. Fine Gael, Sinn Féin and others have also put forward proposals to ensure people are taken off the dole and allowed to make a productive contribution to the economy.
I am pleased to consider proposals from all parties and have already taken on board some of the views expressed in the House in regard to activation measures. We are working on those proposals and we hope they will be successful, particularly in the case of the graduate placement programme. Some initial progress has already been achieved in regard to graduate placement in the public and private sectors. People who lose their jobs want to maintain and enhance their skills. An issue that has been raised repeatedly for many years is the difficulties people may encounter in obtaining employment because they have no experience. We hope these initiatives will afford experience and opportunities to people.
We are also working closely in the area of new technologies. This is parallel to the work being done by the Minister of State, Deputy Haughey, on our skills needs. A new chairman has been appointed to a working group to oversee an analysis of skills needs in various sectors and to evaluate how resources should be targeted. The reality is that we must do more for less and that a targeted response is required. That is what we must strive towards.
When I was Minister for Social and Family Affairs, Deputy Penrose, as his party's spokesman, made the case that persons who are made redundant should be entitled automatically to return to education. That entitlement is now in place, as well as an entitlement to participate in the back to work enterprise allowance scheme. The latest Global Entrepreneurship Monitor, GEM, report indicates that some 2,800 new entrepreneurships are established every month in the State. That is as it should be. It is through small and medium-sized enterprises that we can target export potential. We are spending €500 million this year on enterprise support. However, we must take a categoric decision as to where resources are targeted. The role of education will be vital. We must encourage young people entering first year in secondary schools to take up sciences, mathematics and languages. The jobs of the future will require those skills. We will continue to strive towards that.
61 Deputy Catherine Byrne asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of regulatory impact assessments carried out on new legislation by her since she came to office; her views on whether reform of the regulatory impact assessment process is required; and if she will make a statement on the matter. [19892/09]
Since 2005, all Departments have been required to conduct regulatory impact analyses, RIAs, in respect of all primary legislation, significant secondary legislation, EU directives and significant EU regulations. In addition, policy review groups charged with examining legislative proposals are also required to undertake an RIA. Since May 2008, my Department has carried out four screening RIAs in line with the established guidelines prepared by the Department of the Taoiseach. In addition, my Department is currently conducting several further assessments.
Under the Towards 2016 social partnership agreement, there was a commitment to review the RIA process in 2007. This review was carried out by the Department of the Taoiseach and published in July 2008. Several recommendations were made in regard to the changes required to the RIA process and the implementation of these recommendations is ongoing. They include the need for increased publication of RIAs; an improvement in the quality of some RIAs, with an increased emphasis on the measurement of costs and benefits; and specific guidance on the measurement of potential administrative and compliance costs, especially on business.
Revised RIA guidelines which take account of these and other issues raised in the context of the review are being finalised by the Department of the Taoiseach and will be published shortly. I understand the revised guidelines will advise all Departments to measure administrative burdens as part of their RIAs in future, in order to ensure the RIA process complements the targeted administrative burden reduction programme, dealing with existing legislation, which my Department is leading. This process should ensure the minimum administrative burden is imposed on business by new legislation. In addition, the RIA training course, operated in conjunction with the Civil Service training and development centre, has been revised to take account of the review findings and now contains a specific module on RIA and the so-called business perspective.
Additional information not given on the floor of the House.
Regulatory impact analysis is an important tool which helps to support the development of proportionate, effective and targeted legislation. It is essential that each Department adheres to the requirements of the RIA process and ensures RIAs are published in a timely and accessible fashion. In this regard, my officials will continue to work with the RIA network and the better regulation unit in the Department of the Taoiseach in order to continue to refine the approach we take when developing new legislation. This will ensure that legislative proposals continue to be proportionate, striking the right balance between the often competing rights of workers, consumers and individual enterprises on the one hand and, on the other, freedom for business to take quick decisions to adjust to global market competition.
My concern regarding the regulatory impact assessments that have been done to date is that they tend not to include any figures on savings achieved. One would assume such assessments would include a calculation as to costs rather than the type of box analysis that has taken place. No regulatory impact assessment was undertaken in respect of the Employment Law Compliance Bill 2008. It was screened for it but a decision was made by the Department not to do a full RIA. The idea that legislation such as this would not have a regulatory cost for business is absurd. It provides additional powers to the authorities and creates 23 new offences for employers. How can this not have a regulatory cost for business? I am not convinced the Department is serious about the agenda of regulatory reform.
The Deputy's comments in regard to cost are well timed. It is important to remember that the high level group that was appointed in July 2008 has so far identified €20 million in savings from the conduct of these regulatory impact analyses. That is a significant beginning to the process of evaluating costs. However, I agree with the Deputy that we must put numbers behind the savings. It is not enough to talk entirely about the process of regulatory impact analysis. This group, which is expected to report in the summer, will offer those numbers in its annual report to the Tánaiste on the savings being made through the RIA process.
In addition, we are also rolling out the standard cost model across all Departments. This will allow Opposition Deputies and the public to conduct a proper comparative analysis as to how we are performing in comparison with other European Union countries.
I have called Deputy Penrose.
The European Union has committed to achieving a 25% reduction in the regulatory and administrative burden by 2013. As a member state, the Government is committed to playing its part in achieving this objective. It is important that such comparisons can be made.
I have asked the Minister of State to give way so that other Members can contribute. I do not wish to cut him off, however, I remind those present that there is an allocation of two minutes for the initial reply and one minute for supplementary replies. No reply thus far as been remotely close to the two-minute limit.
We are too exuberant.
I apologise.
I thank the Leas-Cheann Comhairle for his forbearance. We on this side of the House wish to obtain as much information as possible. However, the Chair's interpretation is the correct one.
The Joint Committee on Enterprise, Trade and Employment has completed a study on the situation of small businesses in towns in the Dublin commuter belt. That report, including 12 recommendations, will be submitted to the Tánaiste next week. We hope those recommendations will be implemented. One of the greatest obstacles and sources of frustration for small businesses is the perceived level of regulation and bureaucracy. Many owners told us their businesses were being strangled by it. Is there any way that a single, simple, unified form can be introduced that would facilitate persons in meeting all regulatory requirements, including in regard to tax, submissions to the Chief State Solicitor's office and so on. The latter sends out forms every month that must be filled. Small businesses employing only one or two staff are obliged to employ a bookkeeper for half a day per week to deal with all the regulation requirements. I agree with the Tánaiste that it is small and medium-sized enterprises that will drive a recovery in the economy in the next three to five years. However, such enterprises will not thrive if they are strangled at birth through the imposition of excessive regulation.
In overarching terms, an issue on which the Government is working closely, one which has arisen time and again at Cabinet level and in other discussions, is the possibility of having a unique business indicator or number to enable businesses to transact business with the State as an individual. I hope such a development would assist small businesses.
I concur with Deputy Penrose that red tape is the curse of small business. This issue arose recently at a Competitiveness Council meeting I attended in Prague in place of the Tánaiste. Governments throughout the world are struggling with the question of how to eliminate the red tape and bureaucracy we impose on small to medium-sized enterprises which account for 65% of all businesses in the European Union. This is a unique and distinct problem for the Continent of Europe, including Ireland. The burden of bureaucracy is greater here because our businesses tend to be smaller than elsewhere in Europe. Relatively large companies qualify as small businesses in Europe when considered in the context of the structure and status of Irish businesses.
It is important that regulatory impact analyses are conducted well and published. The Department publishes these analyses on its website and it is open to members of the public to judge the Government on its actions and its decisions not to proceed to legislation. The quantity of legislation we produce in the House must be reduced.
Does that mean the Employment Law Compliance Bill has been dropped?
That is a matter for the Opposition.
The Tánaiste does not appear to be enthusiastic about it.
I am enthusiastic.
62 Deputy Frank Feighan asked the Tánaiste and Minister for Enterprise, Trade and Employment the action she is taking to promote more science and technology interest among students and businesses here in view of the recent cut in budgets for such activities; and if she will make a statement on the matter. [19923/09]
Science, technology and innovation are critical to the future competitiveness of our enterprise sector and Ireland must produce the talented students and graduates to drive a knowledge-based economy. The Government's Strategy for Science, Technology and Innovation, SSTI, 2006-2013, aims to ensure that "Ireland by 2013 will be internationally renowned for the excellence of its research, and will be to the forefront in generating and using new knowledge for economic and social progress, within an innovation driven culture". The Government is committed to making this vision a reality and making Ireland a key location for leading edge research and development, and a location for high quality jobs that are underpinned by knowledge and high skill levels.
The targets within the strategy for science, technology and innovation, which relate to the increased promotion of interest in science and technology among students and businesses, include increased participation in the sciences by young people; a significant increase in the numbers of people with advanced qualifications in science and engineering; and transformational change in the quality and quantity of research undertaken by enterprise both directly and in co-operation with third level institutions.
The first report on the implementation of the strategy for science, technology and innovation was published in December last and is available at www.entemp.ie. The report confirms that substantial progress has been made in achieving these objectives. Both reports provide evidence that the Government’s integrated strategy is working, as seen in the following internationally comparable key indicators. Total research and development spending has almost trebled over ten years and Ireland’s total expenditure on research and development had risen to 1.56% of GNP at the end of 2006. Total research and development spending across all sectors of the economy is expected to climb to €2.6 billion or 1.66% of gross national product in 2008. Business expenditure on research and development, BERD, increased to an estimated €1.68 billion or 1.08% of GNP in 2008. Higher education research and development spending has almost quadrupled in current terms over ten years and is now at the European Union and OECD average levels. This increased investment in the higher education sector is having a significant impact in terms of human capital development, feeding through to attraction of foreign direct investment and commercialisation. The number of research personnel employed in research and development activities across the business sector in Ireland rose to 13,861 in head count terms in 2007.
Early estimates of research and development activity levels point to sharp increases in the number of firms performing significant research and development — expenditure of more than €2 million — with 164 significant research and development performers in 2007 compared to 118 in 2005. There also appears to be evidence of firms which were smaller performers of research and development in 2005 stepping up activity to become larger performers in 2007.
Additional information not given on the floor of the House.
Science Foundation Ireland, SFI, strongly encourages outreach by SFI-funded researchers to advance public understanding of science and engineering through supporting a number of education and outreach activities. These are designed to promote and provide information on the exciting and ground breaking research that Science Foundation Ireland funds. These programmes play an important role in encouraging the next generation of researchers, namely, our young people, to consider a career in science and engineering research. The initiatives supported by Science Foundation Ireland include programmes such as UREKA sites, the SFI-Dell Young Women in Engineering Scholarship and Speakers for Schools.
In addition, as part of their funding, all Science Foundation Ireland centres for science engineering and technology are required to undertake extensive education and outreach programmes. These programmes are aimed at keeping the public aware of exciting new research findings and encouraging young people to study and take up careers in research. The activities include computer games, websites, visitor programmes, videos, teaching packs, as well as public debates and fora.
The discover science and engineering programme aims to raise the general level of awareness of the physical sciences and raise the level of student uptake of the physical sciences at second and third level. The programme is administered by Forfás on behalf of my Department. An evaluation carried out by an international panel of experts in 2008 concluded that the programme represents very good value for money and is playing an important role in encouraging young people to study science and technology and in enhancing general science awareness. The panel outlined a number of recommendations to improve the strength and efficacy of the programme in delivering its objectives. A key finding was that the remit of the programme should continue to focus on the physical sciences and engineering and be extended to comprehend the promotion of maths literacy to encourage the increased take up of higher level maths at second level and to promote career opportunities which require a high level of maths competency.
Since the programme was established, funding has been increased from €1.5 million in 2004 to €2.685 million in 2009. For the remainder of this year, the programme will focus on delivering its key strategic objectives of promoting study in the priority areas of science, engineering and technology. Within resource constraints, the programme team is gearing up to replicate at second level the success it had with programmes such as Discover Primary Science at primary level and is extending its remit to promote maths as a key underpinning discipline.
The Government is committed to investing in Ireland's science base as one of the key cornerstones underpinning future jobs in Ireland and the lynchpin of our transformation to the smart economy. The challenge for the immediate future will be to effectively manage the implementation of the Government's strategy for science, technology and innovation in a much tighter resource environment.
I recently asked the Tánaiste a question about the discover science and engineering programme, for which funding has been halved from €5.25 million in 2008 to €2.68 million this year. In her reply, she recognised that the programme provides very good value for money and plays an important role in encouraging young people to study science and technology. Given its importance for future economic development, why has funding for the programme been cut?
In the past ten years, expenditure on research and development has tripled.
The programme is for second level students as opposed to research and development in third and fourth level.
Please allow the Minister of State to continue without interruption.
No area of public expenditure, least of all science, research and development, has been spared in the current round of cuts. The budget cut in research and development expenditure is in the order of 15%.
That does not square with the Government's ambitions.
More worrying is the 26% cut in the national development plan allocation to science research and development. This is an inevitable part of the adjustment the country, economy and society are making. As the Minister of State with responsibility for science, technology and innovation, I hope we will emerge from our current problems sooner rather than later. However, the expenditure reduction in this area is inevitable given the extent to which public spending must be pared back in the current climate.
Written Answers follow Adjournment Debate.
