Gerry Adams
Question:1Deputy Gerry Adams asked the Taoiseach the recent contacts he has had with the social partners. [1912/12]
Ceisteanna - Questions (Resumed)
Social Partnership
Gerry Adams
Question:2Deputy Gerry Adams asked the Taoiseach if he has had any recent contact with the social partners. [1930/12]
Gerry Adams
Question:3Deputy Gerry Adams asked the Taoiseach if he will provide an update on his process of social dialogue. [1932/12]
Joe Higgins
Question:4Deputy Joe Higgins asked the Taoiseach the discussions he has had with the social partners since the beginning of the year. [3678/12]
I propose to take Questions Nos. 1 to 4, inclusive, together.
As I stated in previous replies, most recently in November 2011, my Government very much values dialogue with key representatives of civil society. The Government recognises the contribution that social dialogue can make to maximising common understanding across all sectors of society as we respond to the many challenges facing the country.
In October, the Tánaiste and I stated our intention to meet with lead organisations over the following weeks and months. In this regard the Tánaiste and I met with ICTU on 2 November last, with the IFA on 14 November and with IBEC on 24 November. Separately, I addressed the ICMSA annual general meeting on 19 November and I addressed the IFA annual general meeting on Wednesday, 18 January.
The meetings in November were an opportunity to discuss broad economic issues and the challenges facing our country. The Tánaiste and I highlighted our support for ongoing bilateral engagement with relevant Ministers on issues of mutual concern, as well as the value of the National Economic and Social Council as a forum for engagement with Government on economic, social and environmental issues. The council is chaired by the Secretary General of my Department and has met five times since September last. The Tánaiste and I plan to attend a plenary session of the council each year.
The Government's approach to social dialogue does not amount to a return to rigid social partnership structures of the past but rather involves a more flexible, adaptable approach which can support change. My intention is that senior Ministers, including the Tánaiste and I, will continue to meet with social partner organisations on a periodic basis to discuss matters of mutual concern.
I am a bit reluctant to ask the Taoiseach hard questions given his inability to answer even the most simple ones but-----
The Deputy might get a straight answer.
In terms of his engagement with the social partners, has the Taoiseach discussed any steps to avoid the recent events involving workers, such as those in Vita Cortex, La Senza and Lagan Brick, where they have had to go to extraordinary lengths to vindicate their rights and entitlements? At stroke of pen, 250 workers in Diageo in Dundalk and Kilkenny were told they were out of work. Unfortunately, that announcement came when the Minister for Jobs, Enterprise and Innovation was in Guinness with the Diageo management.
The occupation of Vita Cortex continues and it is in its seventh week despite the collapse of talks, which was no fault of the workers. Clearly, the owner of that company has a responsibility to pay the workers what they are owed. Has there been any feedback from the Labour Relations Commission and from the Minister for Jobs, Enterprise and Innovation on this issue? What will the Government do to ensure these workers' rights are protected? Will it introduce legislation to ensure no employer can in future treat workers in this disrespectful and exploitative fashion?
Some 32 Vita Cortex workers have been involved in a sit-in in Cork since 16 December which arose from a dispute with their employer over redundancy payments, as Deputy Adams pointed out. The workers seek severance payments of 2.9 weeks pay per year of service, inclusive of statutory redundancy, in line with previous redundancy deals in that company.
In the interest of achieving a resolution to the dispute, which is obviously of concern to everybody, the Minister, Deputy Bruton, urged both parties to avail of the industrial relations mechanisms available in this State as soon as possible with a view to the possibility of bringing a conclusion to it. Officials from the Minister's Department were in contact with the workers' union representatives in an attempt to clarify the issues involved and to make them aware that the industrial relations mechanism of the State was available to them so that they might be assisted to resolve that dispute.
As Deputy Adams is aware, the Labour Relations Commission invited both parties to meet in Cork on Tuesday, 17 January to clarify the facts of the situation and, against that background, to explore with both parties the potential to move it forward. The meeting adjourned and reconvened on Friday, 20 January. Those talks adjourned on 20 January and there was no plan to reconvene. According to the Labour Relations Commission, it was unable to find a basis for agreement between the two parties involved. The Labour Relations Commission has confirmed that it will maintain contact with both parties and that if an opportunity should arise for it to be of any further assistance in this serious matter and in moving the situation forward, it will be prepared to get involved again.
The absence of an agreement on the payment of extra statutory severance payments for the workers is without prejudice to the arrangements being made by the Department of Social Protection to process the applications made for payment of statutory redundancies to the workers concerned. I can inform Deputy Adams and the House that I understand the Vita Cortex workers submitted 34 applications online on 22 December 2011. Hard copies and associated correspondence and papers were received on 4 January of this year.
Statutory straightforward redundancy claims submitted since October 2011 have generally been processed for payment within six to eight weeks. This can vary considerably depending on the complexity of the claims but on the basis of the current processing times, I would expect that the Vita Cortex claims will be processed by 6 February.
The position is that the Labour Relations Commission has made it clear to both sides that if it can be of any further assistance in resolving this dispute, it is there to assist if it can.
I thank the Taoiseach for that information. My questions were around trying to ensure these events do not become common place and what he has done in regard to the social partners or to bring in legislation. Diageo, which is a hugely profitable company, makes billions in profits and sells Harp and Guinness globally as Irish brands, closes a brewery in Dundalk with the stroke of a pen. Some workers had given 25 years to 30 years of service. It is not fair. As I said earlier, the Minister for Jobs, Enterprise and Innovation was actually in the Guinness headquarters at St. James's Gate when this announcement was made and there was not a bleat from the Government about it. Some 250 workers, their families and all the small business which thrive in the local economy will be robbed of that income.
To go back to my initial question, workers must be treated respectfully and not in an exploitative way. Has the Government discussed this with the social partners? Will it bring in legislation if there is a need to do so to ensure no employer can treat workers like this?
As I said, I intend to continue to meet the social partners as appropriate and I made that clear to them. Together with the Tánaiste, I hope to have full twice yearly meetings with them. Clearly, the Minister for Jobs, Enterprise and Innovation is concerned about these matters. I repeat that the well proven mechanisms of the State are available where unfortunately disputes arise, as they do on a pretty regular basis.
I do not intend to have a return to the kind of formal process that applied before but I have encouraged every Minister to engage bilaterally with the parties which might be relevant to their responsibilities. The question of legislation beyond where we are does not arise at this time.
The machinery has been tried and tested over many years and I would hope that, in the case of Vita Cortex and any other dispute, that process would be used and tested in order to see if a resolution can be brought about to what are sensitive and serious disputes affecting people and their families.
The Taoiseach does not seem to realise that what he calls the well proven mechanisms of the State are utterly ineffective in protecting workers' rights with regard to some of these - what I was going to call - rogue employers. However, the La Senza lingerie chain was part of a huge multinational corporation that owns Weetabix, which is an internationally known brand. The Taoiseach says these protections are there, but how can it happen in this State that as workers go home on a Monday night, having left their shops, a few of them get telephone calls from KPMG, acting on the instructions of Lion Capital or La Senza, to tell them not to come in in the morning because their jobs were finished? Does the Taoiseach realise that those workers are left hanging on for the State to pay their entitlements with regard to redundancies for 12 or 18 months by this massive multinational? It has overall responsibility but it has created a spurious distinction between companies using legalisms so it can walk away. It is incredible that this can happen in this day and age.
The situation is similar for the Vita Cortex workers where the State mechanisms have let workers down. The Government says it is concerned about the rights of these workers, so what initiative will it take regarding Vita Cortex and La Senza for an immediate redress of their situation?
I am well aware of the nature of disputes and how sensitive and serious they can become. Far from using the cliché of "well tried mechanisms", the Labour Relations Commission has been an outstanding success over the years. On occasion, it has spent many hours of intensive discussion trying to sort out disputes between employees and employers. A better way has not been found - except probably in some dictatorships, which we are not - to resolve disputes. I feel strongly that in regard to the particular dispute mentioned by Deputy Adams and others, a resolution has to be found. The way forward is to explore all the possibilities that exist under the Labour Relations Commission, which is the official machinery of the State. The officials of the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, are available at any time to assist in that overall work. I would like to see a resolution to these disputes, but the best process is to get involved with the Labour Relations Commission, which has a proven record of bringing parties together where sensitive disputes like this have occurred. While talks were suspended in the Vita Cortex case, I hope they can be resumed and a way forward found. At the end of the day, a resolution for that dispute has to be found in any event.
I tabled a question on the social dialogue over the Croke Park agreement, which for some reason was transferred to the Minister with responsibility for the public sector, such is the restrictive nature of trying to get questions answered by the Taoiseach during Taoiseach's questions. Would the Taoiseach agree it is arguable that if we had a more proactive social dialogue and social framework, the issues around Vita Cortex, Lagan Brick and other companies could have been dealt with much earlier? The Labour Relations Commission came too late to the Vita Cortex dispute. Ministers were standing back from it up to Christmas. We ended up ringing Ministers about it on 23 December. In addition, the matter was raised in the Dáil on a number of occasions prior to the Christmas recess, but no formal intervention came before January. If a more proactive social dialogue was going on, a framework would exist to deal with these issues much earlier. Closer linkages are required between employers, trade unions and State agencies in this regard. It would also allow for more inter-ministerial dialogue. Three Ministers are involved with different dimensions: Finance, Social Protection, and Jobs, Enterprise and Innovation. The resolution of this dispute could involve all three, as well as the owner who has the fundamental obligation and responsibility.
I hear what the Taoiseach is saying about not wanting to go back, but there is an argument for a more proactive social dialogue. The Agency Workers Bill was poorly worked out because of the absence of a proactive social dialogue between the partners. We did not get the optimal outcome on that prior to Christmas as regards jobs in the economy. It has passed most people by in terms of awareness and profile, but it could have implications for jobs if there was a more proactive engagement.
It has been widely reported that the Taoiseach's backbenchers have been beating down his door about the Croke Park agreement, and that they and some Ministers have been talking tough about tearing up that agreement. Is the Taoiseach holding any such discussions with backbenchers or are these stories just part of some misleading spin being placed in the media? I would like the Taoiseach to confirm the Government's position on the Croke Park agreement because many Deputies in his own party and some in the Labour Party have questioned it; they have suggested that it be torn up. I would argue that we do need a more proactive social dialogue framework to deal with many such issues that are arising.
The Deputy has raised an important point about contact between the social partners and the Government. While I said that I have no intention of returning to the formal process that existed before, in the meetings we have had with the social partners we have made it perfectly clear that the line is always open, either on an individual ministerial basis or directly to the Government. I have made it clear to the social partners, as has the Tánaiste, that if there is an issue that needs immediate attention or requires the availability of the Government, that line is open. While I, as head of Government, and the Tánaiste meet with the social partners in formal session twice a year, each individual Minister and member of the Government is available to the social partnership. That is why in this case, the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, outlined what the process was for dealing with this particular dispute in Cork, which has now dragged on for some time. He appointed his own departmental officials to discuss with the workers' union representatives the clarification of a number of issues there. Following that, the Labour Relations Commission invited both parties to a meeting on 17 January, which resumed on 20 January and was then suspended. I would hope that this process can be resumed because this dispute needs to be sorted out. The people concerned need to have it resolved.
Last week, the Minister for Public Expenditure and Reform set out for the House the position concerning the Croke Park agreement. Deputy Martin is aware that a review of the agreement is pending in March this year. We have already made a number of claims in regard to Croke Park being implemented in full. We need this because it is an important element of the relations that exist between the public sector and the Government. It is also an element that is clearly referred to in the memorandum of understanding with the troika. All the issues in respect of the Croke Park agreement are due for review at the end of spring.
In the second week of January, I was called by a La Senza worker and asked to come out to the occupation they had just begun because their jobs had been terminated and their wages had not been paid. Yesterday, I received another telephone call from a La Senza worker who said their promised wages from KPMG had still not been paid. In addition, they will be subject to emergency tax because KPMG has messed up their tax credit entitlements, which means they will not get much of their money for a considerable time. They have also had massive delays in accessing the social welfare system because they did not get their P45 forms until yesterday morning, after two weeks of haranguing KPMG on that issue. Since June, the Jane Norman workers have been without a month's wages due to them when the company went into administration. Jane Norman is now trading in this country with a new workforce that is paid less and on lower conditions. The Connolly shoe workers in Dún Laoghaire have been on strike for over a year after their employment was terminated. Despite several Labour Court rulings in their favour, the employer has not yet paid the moneys owed. These issues raise the question of what this Government will do to stop rogue employers treating workers like this. It needs legislative action so that employers cannot do this to workers. I ask the Taoiseach to intervene on the specifics of the cases I mentioned and to bring forward legislation to protect workers. If we can do it to protect bankers, can we do it to protect workers?
Deputy Boyd Barrett has raised three cases, the workers being subject to emergency tax because KPMG did not send out wages, the Jane Norman workers who have not been paid, and the workers in the shoe shop who have not been paid. I do not have all the details of these cases. Workers have rights and it is important that these rights are exercised and fulfilled in accordance with the law. Where a dispute arises, there must be a dispute mechanism to clarify the issues and get on with the resolution of the dispute. I do not have the detail of the reasons why KPMG has not been able to pay wages and whether the Revenue Commissioners said the workers will be subject to emergency tax because they have not received their wages in time. In respect of Jane Norman and the Connolly shoe workers, if Deputy Boyd Barrett forwards the details of the cases, I will be able to offer some assistance in having the matter resolved. There may be other elements to these disputes of which I am not aware.
Following my colleague's question, immediately after Questions to the Taoiseach, the Taoiseach should get one of his senior officials to telephone KPMG and ask the company to send the wages immediately. The workers are in very difficult economic circumstances. This is money that they are owed. There is cynicism in working them overtime during sales and then walking away without notice. I will telephone KPMG, along with Deputy Richard Boyd Barrett, and I ask the Taoiseach's office to telephone KPMG. I will forward the name of the relevant official in KPMG to the Taoiseach's office so that he can be told the money should be out within days. Is that not simple justice? Should the State not stand behind workers who are victimised in this disgusting fashion by companies behaving in this manner?
Workers are entitled to receive their legitimate wages and if Deputies Higgins and Boyd Barrett give me the details of these cases after the Order of Business, I will be happy to contact the firm involved. People expect to have their wages paid and I do not have the detail of what is blocking this.
Cabinet Sub-Committees
Micheál Martin
Question:5Deputy Micheál Martin asked the Taoiseach the number of times the Cabinet sub Committee on Economic Recovery and Jobs has met [1937/12]
Joe Higgins
Question:6Deputy Joe Higgins asked the Taoiseach the number of times the Cabinet Sub Committee on Economic Recovery and Jobs has met. [3679/12]
Gerry Adams
Question:7Deputy Gerry Adams asked the Taoiseach the number of meetings of the Cabinet Sub Committee on Economic Recovery and Jobs he has attended. [3681/12]
Micheál Martin
Question:8Deputy Micheál Martin asked the Taoiseach the number of times the Cabinet Committee on Economic Infrastructure has met since it was set up; [5152/12]
I propose to take Questions Nos. 5 to 8, inclusive, together. The Cabinet sub-committee on economic recovery and jobs has met five times since it was established. The most recent meeting was on 19 January 2012. I chaired all these meetings except one, on 21 July, which I could not attend due to a special European Council meeting in Brussels.
The Cabinet sub-committee on economic infrastructure has met five times, the last being on 10 November 2011. No date has been set for the next meeting.
My questions concern the sub-committee on economic recovery and jobs and the number of times it has met, and the Cabinet sub-committee on economic infrastructure. One of the Government's defining characteristics is its capacity to make claims that fly in the face of reality. The Government praised the budget for being fair and protecting front-line services whereas we know it did the opposite, as it was unfair and hit front-line services dramatically, as we know from tonight's Private Members' business motion concerning small rural schools.
The same point is applicable to the jobs agenda. Last year, we had the downgraded jobs initiative, which cost jobs, undermined private pensions and took money from pensioners. Where will the much-heralded growth in jobs come from? Can the Taoiseach tell us if the Cabinet sub-committee on economic recovery and jobs will oversee the new jobs strategy, which the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, has been briefing the media about? Is there a concrete time limit on its work?
I will ask a separate question on economic infrastructure, referring to Question No. 8, after the Taoiseach's response to this question on the Cabinet sub-committee economic recovery. The Taoiseach has grouped all the questions together.
This morning, 800 jobs were announced in Dublin. A fortnight ago, there was an investment of €350 million by a multinational in the pharmaceutical sector. The Minister for Jobs, Enterprise and Innovation will bring proposals for a jobs action plan to Government within the next two weeks. The Minister for Social Protection will bring in a range of measures to ensure we have a real focus on opportunities for people on the live register to make their contribution, which they want to do, in schemes that provide part-time work, hopefully leading to full-time work, or opportunities to retrain and upskill. The central focus of Government must be on job creation and job initiatives. I do not share the view of Deputy Martin about the VAT reduction in the hospitality sector or the PRSI reduction for lower paid workers. Growth in tourism was 7% last year and, given that we have most of the infrastructure in place, one of the flagship projects for this country for the years ahead is to get people to come here and to give them a quality experience at competitive prices.
The announcements by, and focus of, the Government will be the creation of jobs. The budgetary announcements this year led to credit facilities being made available to those who market goods abroad for sale from Ireland to the BRIC countries. There were tax concessions in respect of research and development for SMEs. The budget included mortgage interest relief for those who purchase houses in 2012 and there is a 10% cushion if they make the purchase in 2012 and prices fall further. No capital gains will apply to commercial property if purchased in 2012 and held for seven years. These are a direct impetus to the market, which will hopefully have a response in stimulating the construction sector from a very low base. That sector is critical in the growth of any economy. Within the next two weeks, the Minister for Jobs, Enterprise and Innovation will bring his plan for jobs to Government and, in parallel, the Minister for Social Protection will bring forward her proposals.
The pipeline of investment in the country is quite strong. I have met a number of chief executives in the recent past who are considering investment in Ireland. I cannot say what their decision will be but international confidence in Ireland has risen greatly. It is a statement of confidence that people are making announcements of the significance of today's announcement of 800 jobs. This happens at a time when people seem to think we in this country wallow in troughs of depression and despair. We have difficulties and challenges but the ship is pointed in the right direction and our plan is to fulfil the programme for Government and create a situation where jobs can be created at home and where our young people do not have to leave.
The Taoiseach should not forget it is he and his colleagues in government who had the language of despair not so long ago and used terms like "banjaxed" and so on which were inaccurate-----
We had a plan.
-----and wrong for the country. He paid tribute to the foreign direct investment jobs that have been announced. They do not happen overnight. The industrial strategy of the past number of years and of the previous Government has borne fruit and has been solid in terms of its focus on research and development, corporation tax, the lowering of inward investment and so forth. The pipeline is strong because of a number of fundamental things that have been put in place over the years, in terms of foreign investment and the innovative creative side in the domestic economy which we have to pursue.
The sub-committee has met five times. I asked a simple question, namely whether the sub-committee is in charge of overseeing the new overall Government jobs strategy.
Which one?
The sub-committee on economic recovery and jobs.
Yes.
Is it in charge of the overall strategy? I got a wandering reply which stated various Ministers are doing different things. Is the sub-committee overseeing the jobs strategy that the Minister, Deputy Bruton, has been briefing people about? The fact it has only met five times in 12 months does not inspire confidence about the most fundamental issue facing the country, namely jobs. That probably speaks volumes about the lack of a coherent response to date on the jobs question.
In regard to the question on infrastructure, the review on capital expenditure from the Minister, Deputy Howlin, last December praised the infrastructural investment of the last decade and said infrastructure is core to the Government's plan. He was generous enough to pay tribute to the work that was undertaken during the last decade. Can the Taoiseach tell us if the terms of reference of the sub-committee include reviewing the level of capital spending? Will it be able to review new figures which show that the budget reduced capital spending at the lowest level in Europe?
We discussed the economic management council, which I chair. In respect of the sub-committee on economic recovery and jobs, nine different sectors are involved and working groups have been involved at an intensive level for the past number of months. That will be reflected in the programme which the Minister will bring before Government in the next two weeks.
The Cabinet sub-committee is the oversight group which will ensure value for money is achieved in respect of what is being spent. I understand and share the Deputy's view that decisions on multinational investment here do not take place overnight. I have been the first to recognise the value of the intercity routes we have and how they have transformed travel within the country, as well as the possibilities for transport and commerce as a consequence. We have a great deal more to do.
The Government's €17 billion capital programme for the duration of this plan sets out what we hope to achieve in terms of infrastructure and also looks at the possibilities that exist beyond the plan for further investment from other sources and infrastructural projects in Ireland. We could all line out opportunities for investment which would create jobs and have an impact on commerce and economic development.
It is not a question of the sub-committee having to meet every month. The fact it meets and assigns work to different sectors and sectoral groups will culminate in the proposal and programme being brought forward by the Minister, Deputy Bruton, in the next two weeks. It will take into account the schemes and opportunities to get effective results from the spend of taxpayers' money. We would like to think that the focus of Government on jobs and job creation will bring tangible benefits to people all over the country as a consequence. No more than having investment in the multinational pipeline, that does not happen overnight.
Several thousand people are now involved in JobBridge, which mostly involve the private sector, and Tuas schemes. I find the results coming from employers are very strong and positive. A great number of qualified young people are being offered permanent jobs or intend to start their own businesses as a consequence of their experience. It is not a case of having the end result now, rather it is a case of serious thought about serious proposals to bring about serious results that will benefit everybody.
There is a calculated propaganda campaign here and in Europe to talk up prospects, and say that the worst is over, things have changed and we are now at the beginning of significant growth. Does the Taoiseach not agree it is all propaganda? The reality of the hard cold figures tell a different story. It is no coincidence that the EU summit discussed job creation; it wants to sell an austerity treaty so it dresses it up-----
Would you rather-----
I would prefer if it created a few.
-----pretending it has a great initiative.
What new ideas, proposals and funding, if any, will the Taoiseach be bringing news of to the economic recovery and jobs sub-committee after his attendance at the summit? He mentioned job creation, small enterprise support etc., were important items on the agenda. What is the outcome? What are the targets? Does the State have specific targets with regard to job creation?
We hope every one of the 800 workers employed over the next two years in a new enterprise will have solid, well-paid jobs with decent conditions. We have to remember that TalkTalk, which walked not long ago, got rid of 575 workers. As I said, every job is valuable. The problem with capital intensive multinational investment directed towards exports is that it yields very few jobs. Does the Taoiseach not see a contradiction in regard to the domestic economy, which is the critical area where jobs will be created and saved? There is a fundamental contradiction between the Taoiseach talking up jobs here and the fact that 0.5% growth has been predicted for next year. Can the Taoiseach tell us what prospects came from the EU summit?
I would have thought that rather than Deputy Higgins wallowing in the rut of despair he seems to live in he would contact the list of young unemployed people in his constituency, ask them whether they are aware that this morning 800 jobs were announced in Dublin with immediate recruitment and if they have any of the qualifications required he would like to accommodate them in making an application to interview.
That is not appropriate.
Maybe the Deputy should also speak to those involved in the hospitality and tourism sector in his constituency and make them aware of the reduction in PRSI for lower paid workers and VAT which has had an impact on the strength of local economies. He should at least talk some reality about where opportunities actually lie.
As I said, over 4,000 people have now taken up the opportunity of training and internship schemes to assist jobseekers to get them on the path towards the opportunity of a permanent job, which would be in their interests.
The labour activation fund, which will be introduced shortly by the Minister for Social Protection, Deputy Burton, will focus on those who have been on the live register for 12 months or more. The Government will legislate for partial loan credit guarantees in respect of companies - small and medium-sized enterprises - that are not in a position to draw money from financial institutions. Between 1,500 and 2,000 companies, at least, will be able to avail of the scheme this year.
The Minister of State at the Department of Jobs, Enterprise and Innovation, Deputy Perry, is dealing with the micro-finance agency along with the Minister, Deputy Bruton, in respect of smaller operators that might be employing two, five or seven people commercially on the basis of the first-step principle. We must, however, look beyond focusing on trying to resurrect our economy with very small schemes. We must consider the future, the shape of which is changing before our eyes. I refer to cloud computing, digital gaming, financial services and the agri-food industry.
If when travelling to his native county Deputy Higgins stops anywhere on the way to talk to the young farmers and producers, he will note that the agri-food sector has exported produce this year worth over €9 billion. In fairness to the previous Government, its food harvest programme is a fine document, and it is being followed intensely. We hope the export figure of the agri-food sector will reach over €12 billion in the coming years. It is on these areas that we must focus because this is where the future lies.
Despite the normal litany of despair, the fact that exports increased by 4% in the first ten months of 2011 speaks for itself. There has been a monthly increase of 16% in the trade surplus and a return to growth in 2011 for the first time since 2007. There are signs that inspire confidence. They are not the be-all and end-all but we are heading in the right action.
With regard to the Government focusing on job creation and job creation schemes, I agree with the Deputy that a job can transform a life. Young working people I meet appreciate having a job and feel challenged by the contribution they can make.
I regret more cannot be done in the short term but the priorities of the Government will be job creation, incentivising job creation and activation measures for those on the live register to get them off the conveyor belt and into work where they will want to make a contribution. I hope we can give them the opportunity to have careers in which they will feel fulfilled and that they can play their part as good citizens.
In the Deputy's constituency, far from telling people the world is going to end, one could tell them that, just over the hill, there is a new opportunity, but that to get there we must all work very hard, including the Deputy.
I welcome the Taoiseach's willingness to intervene with KPMG. I may return to him regarding Diageo workers. The company is a thriving multinational company that is to lay off up to 250 workers. The wealth of their talent and skill in the brewery in Dundalk is being lost.
Has the job stimulus package been discussed by the Cabinet sub-committee on economic recovery and jobs? It is the only way we will get people out of this crisis. Almost half a million people are on the dole. I believe we have the highest rate of youth unemployment.
We do not.
We have the second highest rate of youth unemployment.
It is unacceptably high.
We are doing great.
It is not that I do not know.
Our youth unemployment figure has been reduced because so many young people are in far-off places such as Australia and elsewhere. There is a big job to be done.
When members of the Opposition, particularly members of Sinn Féin, bring these facts to the Taoiseach's attention, it is not that they despair. We are not from that camp, we have great faith in the Irish people, although not in the Government. We have great faith in the genius, intelligence, will, ability and incorruptibility of the people.
That is why they elected us.
They elected the Deputy's party on a mandate that it tore up.
They are intelligent people.
What proposals are there for a job stimulus package? Without one, we will not find our way out of this mess. I cannot get away from the fact that the Taoiseach signed up last night to making cuts or tax increases amounting to another €6 billion, yet there is not one red cent for jobs. Tá Sinn Féin an-soiléir faoi seo. Táimid i bhfábhar infheistiú agus stimulus postanna i réimsí éagsúla le tamall fada. Cén plean atá ag an Rialtas anois? Dúirt an Taoiseach bomaite ó shin go raibh plean aige. B'fhéidir go raibh sé ag smaoineamh ar an five-point plan. It was not a cunning plan but one to become Taoiseach. It was not a plan to bring the state to where it needs to be. Do we have a plan and is it being discussed by the Cabinet sub-committee on economic recovery and jobs?
The answer is "Yes". Deputy Adams left out two important words in the litany of characteristics he mentioned: "creativity" and "imagination". These are inherent to Irish success. In this regard, I refer to cloud computing, data content storage, digital gaming and the agri-food sector.
I am sure that the Deputy is well aware of the extent of innovation and research in his constituency. He will be aware that young Irish engineers and entrepreneurs are in a position to, and do, lead the world in the number of cases. The response of the Government will be to open doors where it can.
The Minister of State, Deputy Perry, has responsibility for small businesses, releasing the blockage in the system, removing the red tape and ensuring the creation of an environment in which jobs can be created by business and in which private enterprise can flourish. Small impacts are very important because economies are built with small businesses. Over 90% of the businesses in the European Union are small businesses. As I said to Deputy Martin, there are 23 million small and medium-sized enterprises throughout the Union and 23 million unemployed. If, in theory, one could equate one with the other, one would wipe out the unemployment problem. Just as the bigger firms from abroad that invest here have grown enormously in financial importance, small businesses and micro-businesses in any locality are critical to the economic lifeblood. We need a combination of business types. Small businesses must be able to produce for local needs, small and medium-sized enterprises must be able to service the needs of big plants from a specialist perspective and Irish businesses must be able to export abroad and continue to avail of the potential in the Single Market.
If somebody in County Louth wishes to patent a product that is the result of research and innovation, he faces a blockage in that it costs approximately €32,000 to have it recognised throughout Europe. The Single Market, to which we signed up, should mean recognition in Ireland should apply across the Union. The kinds of costs incurred in the Union are not incurred in respect of patent innovations in the United States and other places. We want to have everybody at a point where he or she can set up a business within three days for a very nominal amount. I want to see the recommendations of the reports by the Minister of State, Deputy Perry, and the Minister, Deputy Bruton, put into effect in every constituency such that businesses can take off and begin to create jobs. That is the focus of our attention.
At the same time, one needs to keep in perspective what will occur in the future, be it associated with robotics, genetics, the Internet, nanotechnology or nanomedicine. We must focus on these important trends because the world is changing before our very eyes and the young people about whom we all speak need to be given platforms from which they can lead the country when their time comes. That means we have to run our public finances properly to provide opportunities for businesses to commence and be creative so they can have that opportunity to do their business in the times ahead. There is a whole spectrum in which we are interested, and that applies in every corner of the land. For example, the connectivity which Deputy Martin is aware is coming across the Atlantic would, from a digital perspective, literally light up Ireland's capacity to potentially become a global leader for data content storage and for cloud computing, which is one of the big waves where jobs will be created in the next decade. It is in there we need to be.
Is not all the talk of jobs coming out of the sub-committee or the EU Summit yesterday a bit preposterous when at the same time the key element of policy is to continue suffocating the economy with the debt of zombie banks and imposing crippling austerity? Is it not a little bit like saying we have a magical formula to cure a sick man while we are holding a pillow over his face and draining him of his blood? Is this not the reality of all the talk about jobs, namely, that it directly conflicts with the main thrust of policy coming from the EU authorities, which is being implemented by the Government? It simply cannot create jobs, at least at a faster rate than it is losing them, if it is imposing austerity and all the funds that should go into investment are going into zombie banks.
I was in Berlin on Thursday with the finance committee of the German Bundestag. I asked them this question: how do they seriously propose to deal with the collapse of investment in Europe, given the austerity? They said the main point was to increase competitiveness so we would get investment from China and India. If that is the strategy, we are really banjaxed because, of course, the problem is there can be no serious investment, and there is very little investment coming from China and India, because they can see that the European economy is contracting under the weight of the austerity. Although this is precisely the market that would buoy up possible investment, it is contracting.
This is even the case with the German economy, which is the other piece of news people need to know. The German economy itself is contracting and has no money. The only reason we are even debating with the Germans about borrowing and bonds is that they can borrow money cheaper, but they do not actually have any money. Their economy is contracting too, just like our economy and the whole European economy, because it is being suffocated by the banking debt burden and by austerity.
I will tell the Deputy one thing. I am thrilled he actually made his way to Berlin to speak to the Bundestag committee.
The Taoiseach should have gone himself rather than waffling on at Davos.
I did not see the airwaves light up with the report that Germany was terrified by the visit of Deputy Boyd Barrett and that-----
They certainly were not terrified by the Taoiseach's attack on the Irish people.
-----they had relented and lain down in front of the juggernaut of B-B from Dún Laoghaire to wipe out Ireland's debt. We live in the world of reality and it is a fraud on the Irish people to pretend we did not inherit a situation which requires serious analysis. That is why, within the process in which we operate, the troika, the IMF, the European Commission and the European Central Bank themselves said they will now produce a paper on opportunities for Ireland given the very onerous, unique burden our citizens have to face because of the extent of moneys borrowed for recapitalisation of the banks before the facilities of the EFSF and ESM came into being.
Deputy Boyd Barrett probably did not use the opportunity to say to the German Bundestag committee that his wages are paid by them as well. I certainly did not hear Reuters, Bloomberg or anybody else say that, because of the intervention and articulation of Deputy Boyd Barrett, Germany relented and that Ireland's debt could be wiped out in the morning.
It is about what they told me. Perhaps the Taoiseach should listen to them.
We do not deal in fantasy politics; we deal in reality. The Deputy, like his colleague beside him, should be talking to young people in Dún Laoghaire. Is he aware that this morning 800 jobs were announced for Dublin?
That is good news.
Perhaps some young qualified people from that constituency might be chosen to give of their expertise and not listen to the litany of despair that I listen to from the Deputy and his colleague every single day.
At least we are not blaming the Irish people.
I will get Deputy Eoghan Murphy to tell Deputy Boyd Barrett about the jobs.
As a supplementary to the questions I tabled on these important Cabinet sub-committees, first, I want to acknowledge the Taoiseach's acknowledgement of the role of the last Government in terms of Food Harvest 2020 and creating a blueprint which has had the buy-in of all the stakeholders concerned with the development of the agriculture and food industry, which is an important platform for the growth of that sector and the creation of jobs. I also welcome the Taoiseach's acknowledgement of industrial strategy over recent years, which has essentially been about building up jobs based on making our own goods and services, and selling them abroad to create wealth. That is important and has been acknowledged, and I wish to acknowledge the acknowledgement.
The key point is that the domestic economy is flat. I put it to the Taoiseach that for the committee to meet only five times reflects a lack of urgency about the jobs issue generally within the system. To take the Government's capital programme, the problem with the budget and the Government's approach is that it has been watching the votes too much and everything has been electorally proofed to too great an extent.
The Deputy should ask Bertie Ahern about it.
Soft options have been sought. The capital programme became a soft target for cuts over and above what had originally been factored in.
This is unbelievable.
Was the Deputy not in Government?
The degree to which the Government cut the capital programme this year over and above what had been factored in has led to the loss of 8,000 jobs in the domestic economy which could have been protected this year if not for that excessive cut in the capital programme.
The jobs initiative was more electoral manipulation - it was an election gimmick. The problem was it was not a gimmick for the pensioners out there who have had their pensions raided. For what? It was for nothing in terms of job creation because very little of that money was spent on job creation in the past 12 months, and we have those figures from the Minister for Finance. There has been too much on the optics-----
What about the Drumcondra optics?
-----too much on the presentation, too much on the spin and less on the reality and a concrete set of achievements around actual job creation. That is my greatest criticism. The labour activation measures outlined by the Taoiseach were all in train, as we know, including Tús, which was a creation of Deputy Eamon Ó Cuív and former Deputy Mary Coughlan. The point is that we need more.
The last Government had consultants spending a fortune.
Order, please.
We need far greater energy from Government agencies and Departments in regard to young people.
You had consultants-----
Order, please. I call Deputy Adams.
Will Deputies stop the silly, childish heckling? This is a serious issue about jobs in Ireland and across Europe.
Thank you, Deputy.
It has been acknowledged today by the European Commission.
The Deputy should take responsibility. There are 400,000 on the dole.
I am not saying anybody here has all the answers but we need a bit of urgency, sincerity and commitment. For what it is worth, the system to date is not energised enough in terms of youth unemployment. Much more can be done. To have a committee on jobs and economic recovery meet just five times in 12 months reflects that inertia and that lack of urgency and attention this issue demands from the system and from Government and its agencies. That is the point I am making.
I put down the question to try to establish the type of work the Cabinet sub-committee is doing in terms of its remit of economic recovery and jobs. I cannot come away from the fact the Taoiseach plans to cut €8.6 billion from the economy in the next three years to meet the troika deficit target, plans to pay bad banks €3.1 billion on 31 March and yesterday agreed to a target that will mean a further €6 billion in cuts and taxes. This is the problem that has to be grappled with. Unless the Government can put money into job stimulus and unless this committee is dealing with that issue, there is a problem. The Taoiseach said in response to my earlier question that it is dealing with that issue, so I look forward to seeing its detailed proposals.
My question is simply to re-put the question I asked earlier. If the 250 Diageo workers are not getting their proper terms and conditions, will the Taoiseach intervene with the management to ensure they get them? I refer to the people who were paid off in Kilkenny and Dundalk after a lifetime of service to what, I reiterate, is a thriving and profitable industry that sells itself globally as Brand Ireland, being Harp and Guinness. Will the Taoiseach intervene?
I reiterate, the opportunity is always there for social partners to make contact directly with individual Ministers even though we are not returning to the former process. No more than with Vita Cortex, if there is an issue with any other company, not only is the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, interested in the resolution of all such disputes but he makes his departmental officials available to trade union workers' representatives in order to clarify any issues that might be involved. The Labour Relations Commission is the vehicle by which both parties can be brought together to bring about a resolution to these problems.
In order that the Deputy will clearly understand it, I reiterate that what was agreed in Brussels yesterday does not impact in any way upon the fact that this country is in a programme to the end of 2013. The decision yesterday reiterates the political guarantee that a country in a programme will continue to be funded beyond that programme if so required, provided it measures up to the conditions it must meet. In Ireland's case those conditions are challenging. One of the problems we face is that we are required to pay €3 billion per year over the next ten years for the Anglo Irish Bank promissory notes-----
You are not required to do this, Taoiseach, you decided to.
For that reason, in the intensive discussions it has had with the Minister for Public Expenditure and Reform, Deputy Howlin, and the Minister for Finance, Deputy Noonan, the troika stated it would produce a technical paper on this issue which is of such importance to the deficit and to our capacity to repay our debts. I look forward with great interest to that paper being produced because the potential benefit is significant. However, it would require the support of the 27 member states.
I reverse the Deputy's argument and that of Deputy Martin by stating that the spend in the next number of years is €17 billion in a capital programme which includes 40 new schools, 180 serious refurbishments and a creative way, as outlined by the Minister for Public Expenditure and Reform, to deal through the national lottery with the National Children's Hospital which will be of such importance over the coming 50 years. It also deals with the European Investment Bank provisions for major infrastructure, in particular the roads programme, including Newlands Cross and the N11. The Deputy can take it the Government is seriously interested, having discussed with the social partners the possibility of pension funds and other investment opportunities being brought in from outside the programme for Government in respect of-----
Hear, hear. Progress.
-----having works that would have an impact on jobs and job creation.
I point out to Deputy Martin that I do not wish to get involved in the process. The Cabinet sub-committee oversees this and allocates work to the different sectors which report back to the Cabinet. It is not by the number of meetings one can judge the value of this but by the work that is produced, where value for money and real effect can be had for the taxpayers' money.
We could have decided at the Cabinet sub-committee on infrastructure to look at some major projects, for example, metro north and a number of others that have been put into suspension. One could spend hundreds of millions of euro in planning and consultancies without creating any jobs on the ground.
What about devolved school grants? Are they being shelved?
The decision was that we should move to projects that are ready to go-----
That is being looked at.
Looked at? We had the budget.
-----where jobs can be created and some element of the capital infrastructure in terms of the construction industry can be employed for useful gain, where people can see real benefit. That is where the focus is.
We would like to think that by the end of the first year all these problems could be sorted out but that is not possible. The focus is very clear in this regard. The movement is in the right direction and as it begins to pick up and focus on stimulating the indigenous economy one hopes we can bring about a lifting of confidence, a spend in people' resources and more jobs being created therefrom, bringing about a greater confidence among our people. That is where my focus and that of the Government lies. Written answers follow the Adjournment.