I welcome the Minister for Labour to the House. Senator McKenna has 15 minutes.
European Social Fund: Motion.
I move:
That Seanad Éireann notes the significant contribution being made by the European Social Fund to training and employment in this country; and requests the Minister for Labour to ensure that in the rules to be adopted covering the fund for 1994-1997, the fund will make an even greater contribution to training and employment.
I have great pleasure in seconding your welcome to the Minister for Labour, Deputy Cowen, to the House this evening. This is the first opportunity I have had to formally offer sincere congratulations to him on his magnificent efforts in two important and, possibly in the long term, damaging disputes — the banks dispute and the postal dispute. The way he dealth with those two problems is evidence of his tremendous ability. Although he was only a relatively short time in this portfolio, he had to deal with two major disputes and everyone knows how he acquitted himself and we are delighted to congratulate him on his efforts.
This motion is very appropriate at this time because it deals with all the types of funding we have and, very importantly, the referendum we will have on 18 June. In that regard, the need for highly skilled workforce is essential for Ireland's future economic well being. The effects of the Single European Market on peripheral regions of the Community, such as Ireland, will be particularly significant. In order to counter the handicaps under which Irish industry already operates, such as the small size of our domestic market and our relative geographical remoteness, Irish industry needs to achieve particularly high levels of efficiency. This can only be done by the acquisition and application of a highly skilled and enterprising work force.
The recently published report from the Industrial Policy Review Group drew attention to the need for Irish education and training systems to be more relevant to the manpower needs for industrial enterprise and development. The group concluded that:
The present Irish education and training arrangements need to be more applicable to present economic employment conditions, to the specific manpower needs of industry and to the nation's development needs.
The report recommends that we should look to the training systems in other countries that have proved to be effective in providing a highly skilled and adaptable work force.
The German system, in particular, was held up as a model from which Ireland could learn in order to improve our vocational training system. In this regard I understand that an Irish delegation have just returned from a very successful visit to Germany where they were able to examine the German dual system of vocational training; and FÁS and the Department of Education, the CII and the Irish Congress of Trade Unions were represented on that particular group. Vocational training in Germany is largely the responsibility of industry where the State plays a secondary role. This responsibility has been accepted by German industry for hundreds of years and training is seen as an investment rather than an expense. The German vocational training system for young people is the dual system so called because it involves practical vocational training and provides experience in the workplace, backed up by theoretical training and general education provided in State run vocational schools, which are attended for one to two days each week by the apprentice. Very importantly, attendance is compulsory. Approximately 90 per cent of all 16 year old school leavers participate in the dual system. There are approximately 380 recognised training occupations in the dual system which represent a basis for more than 20,000 specialised occupations.
It is extremely important that we look at that type of system of education development of our education and training schemes for the future. As an adaptation of that system and heading in that direction a number of initiatives have been taking place in this country over the last couple of years. There are a number of projects involving co-operation between Irish education and labour agencies and they featured prominently over the past three years. For example, CERT, the national training agency with responsibility for the tourist industry, together with the City of Dublin Vocational Education Committee, have developed a European tourism programme for VPT working with AFTA, a French vocational training agency. A new module on vocational skills, tourism, language and culture was developed and introduced into existing vocational training programmes for the tourism industry in both countries.
A further example of the co-operative nature of the programme involves FÁS, the training and employment authority, also working with the Dublin vocational education committee on the development of a training module for the trainers of young disadvantaged people in vocational training. FÁS and Limerick University have also co-operated on a local basis on pilot projects involving training of trainers working in community training workshops and Youthreach centres in the mid-west region. I am very much aware, being from the mid-west, of the activity that is taking place there. There are very substantial success rates in that programme. I am pleased to note also that the education and labour bodies have also been able to work together both on a national and international basis with a framework for the PETRO programme. I am confident of further co-operation in the years ahead, which is absolutely essential.
I would also like to pay tribute to the Youth Exchange Bureau for the work they have carried out in the provision of technical assistance for the programme in both Departments since 1988. The Minister is responsible for the European Social Fund and it is an extremely important portfolio. It provides massive financial support for training and employment programmes in this country. In the five year period to the end of 1993 over £1 billion, or almost 40 per cent of all the Structural Fund resources approved for Ireland will have been received from the European Social Fund. When aligned to the matching Exchequer finances £2 billion will be spent on those vocational training and education programmes which are confinanced by the European Community.
The scale of investment in the development of human resources and its contribution to national training and education provision is very apparent in all of the schemes. Equally, the increase in the annual leave of European Social Fund transfers has been dramatic. In 1989, for example, the ESF receipts totalled £139 million and in 1991 £371 million was transferred to Ireland from the European Social Fund. That is a massive improvement in funds by any stretch of the imagination.
ESF support spans a range of economic sectors as well as assisting programmes for the disadvantaged and the disabled. Training provided by FÁS is comprehensively supported together with vocational training programmes in the regional technical colleges, which meet the skill needs of industry and the services sector. Training for the hotel, catering and tourism areas provided by CERT and the third level colleges in the educational sector is largely financed from the Social Fund. Training for farmers, fishermen and foresters is assisted. Training for young people, long term unemployed and the disabled is significantly supported by and fundamentally dependant upon financial resources provided through the European Social Fund.
The Treaty of European Union envisages an even wider scope for the intervention of the Social Fund after 1993. Possibilities for the funding of new areas in the education and health sectors are now under review within the European Commission. Being involved in the educational sector, I am very pleased at the whole development in relation to specific funding for the educational sector and the huge amounts of money that will come on stream specifically related to education and training post-1993. It will be absolutely vital in the whole development for our young people. The scale of financial resources available to the Social Fund primarily to achieve their objectives of economic and social cohesion in the less developed Community regions such as Ireland will be further substantially increased.
To date we have been able to fully draw down on the Community funds provided for training and employment programmes. The outcome is positive, but with the present level of the unemployed it cannot in itself be seen as a barometer of success. In formulating his contribution to the national development plan, which will form the shape and content of the next Community support framework for Ireland, the Minister will no doubt assess the effectiveness of the huge levels of expenditure on training to date which I have outlined. As he is the Minister with responsibility for the European Social Fund, I know he is determined to ensure that the maximum benefit is derived from such expenditure and that the central objective of equipping those trained to skills and competencies to get jobs is realised.
The achievement of that objective may require a better balance in the type of training now being assisted by the Structural Funds, with a greater emphasis on training for those sectors with the greatest potential for growth and the provision of jobs. Its achievement certainly requires a far more positive approach on the part of employers in identifying and providing for their own training needs and in the influence on the content and relevance of vocational training programmes provided by State agencies and the institutions. It is in that regard that it is extremely important that we look very closely at the dual system that operates under the German scheme, where in fact the employers take it for granted that they are the people who will benefit directly from all of these training schemes. Therefore, they have the responsibility to ensure that they take on the burden of training those people and state itself has, as I mentioned already, just a secondary role. It is regarded in Germany as an investment and not as an expense. That is the way it should be. The people who will benefit in the long term from all of these things are the people who should make the biggest contribution to it in the long term.
If the enhancement of the job prospects of trainees dictates that the quality of the training, which is co-financed by the European Social Fund and by the Irish Exchequer is a more fundamental criteria than throughput numbers, then that reality should be recognised and acted upon. We have seen in recent times a far greater emphasis on the quality of training provisions supported by the European Social Fund. While the measurement of the effectiveness of training schemes is a complex issue, in my view the primary focus will be its impact on the unemployment situation. The new Treaty will reinforce those achievements and bring Community action into areas which benefit the individual citizen.
Consumer affairs is a subject for a special chapter; so are education and health, as I have mentioned already. The citizens own rights are recognised in the Treaty. These benefits exist apart from the wider benefits which Economic and Monetary Union and the improvements in the cohesion dimension will bring. Education, health, environment and culture are of vital and immediate significance to the individual citizen. We should bear all of this in mind when we consider our vote on 18 June. It is extremely important.
Non-ratification would sacrifice Ireland's contribution. It would throw away 20 years of effort by successive Irish Governments and the commitment of the Irish people over that period. Without even considering what we would lose by not having access to the benefits of the new Treaty, it is clear that we would put at risk the achievements of the past two decades. On that note, I just want to restate again how important it is that we have a massive "Yes" vote on 18 June. I ask all the people to just sit back, take a look at this in the quite of their homes and ask themselves a simple question: "What alternative do we have in view of the huge benefits that have accrued to us over the past years and that will accrue to us in future years?". If people ask themselves that specific question there is absolutely no alternative but a massive "Yes" vote on 18 June.
I formally second the motion and reserve the right to speak later.
Before Senator Neville speaks, I want to remind the House that the Minister will have 15 minutes, each other Senator will have ten minutes and the proposer will reply at 7.50 p.m.
I would like to welcome the Minister to the House. This is a very important motion and I would like to congratulate Senator McKenna for bringing it forward. I cannot agree fully with the motion:
That Seanad Éireann notes the significant contribution being made by the European Social Fund to training and employment in this country...
There is not a large contribution being made to training and employment in this country by the European Social Fund in comparison to our EC colleagues. I agree, of course, with the section that:
requests the Minister for Labour to ensure that in the rules to be adopted covering the fund for 1994-1997, the fund will make an even greater contribution to training and employment.
The whole area of training and employment and the use of training to create employment has to be looked at again and a total revamp of it undertaken. In comparison to our EC colleagues we have not been successful in obtaining the full advantage from the contribution of the Social Fund to the economy. In fact, Ireland has been very successful in obtaining money from the European Social Fund, and our EC colleagues are often amazed at the numbers we supply as having been trained under the schemes benefiting such funding. But the fact of the matter is that the training on the ground at the end of the day is uncoordinated, lacks direction and does not achieve what is referred to in this motion: "a contribution to employment in this country." The most blatant statistic to confirm this is our unemployment levels. Despite the artificial changes in the calculating system, we are now facing 300,000 unemployed. Even with the great contribution from the Social Fund to create skills, we still have too large and unacceptable unemployment figures. That is the main statistic that evaluates how successful we are in obtaining marketable skills.
With regard to comparison with our European colleagues — and Senator McKenna compared us with Germany — we have a big gap with Europe in skill levels. We have one of the lowest uptakes in training for industrial purposes. We will have to look at the sitution again, because European industry will be more skilled and more competitive. We must increase our skills in industry, but we are failing to do this in comparison to our competitors. We must ensure that we have a high level of skill in industry to match the competition there at the moment and the increased competition we will have from our partners in Europe.
Irish industry is a poor trainer. In fact, the incidence of training in industry is lower in Ireland and the duration of training is half as long as our European competitors. This not only applies for operative level but right up to managerial level. Irish industry is not as active or as committed to systematic training and development of its employees up to managerial level as our European competitors.
I note from the report entitled "Industrial Training in Ireland" by Dr. Frank Roche and Mr. Paul Tansey in connection with the Culliton report that the large companies train more than the small companies, overseas companies are more active in training than native companies and modern companies are more active than traditional companies. Overall, our training duration and courses are just half that of our EC colleagues. Our supply side for training, the number of trainers and training organisations, is excellent in comparison with our EC colleagues. It is the demand that is the problem. It is the lack of commitment from industry that is creating the difficulty despite the contribution coming from the European Social Fund to such training. We have a definite skill gap between our employees in industry and our European partners. That gap must be clearly identified, measured and a training programme to ensure that we are competitive with our European partners must be established.
It is significant that FÁS, who obtain more money than any other organisation from the European Social Fund, spend just one eleventh on training support for people at work to improve their skills. Some 90 per cent of the FÁS budget for training is allocated to unemployed people. Half of this is on training provision directly and the other half to work experience and community-type work, such as social employment schemes and so on. It is significant that half of the FÁS budget for training, some 45 per cent, is directed towards work experience and community-type work programmes.
It is a fact that the level of skills training in these is practically non-existent in most cases. There is no co-ordinated approach to directing the work experience or the training, if present in those courses, to achieving employment afterwards. There is no placement policy for such people. They go on a course for 12 months or whatever and at the end they go back on the unemployed list. The main achievement of such programmes is to reduce the unemployment figures. That has been repeated over and over again but it deserves repetition. Dr. Roche and Mr. Tansey identified and looked at the success of the long term unemployed in obtaining subsequent employment. They said:
There is a near unanimous unwillingness to recruit among the long term unemployed. Given the scale of new entrants to the labour market over the next decade, the strategy of providing industry training to the long term unemployed is questionable on economic grounds.
I am saying is that the second part of Senator McKenna's motion should be clearly looked at with a view to having an overall review and a root and branch approach to the whole area of employment to ensure that we are training people for employment and not just training people or giving them work experience for the sake of doing so.
I am pleased to have the opportunity to address Seanad Éireann on this important motion relating to the European Social Fund. It is opportune to reflect at this time on the real benefits which Community membership has conveyed on this country since our accession in 1973.
Community funds are the materials expression of solidarity with those member states whose economic development compares unfavourably with the more wealthy Community countries. Financial transfers are intended to be used to progressively bridge the gap in economic performance and give expression to the concept of economic and social cohesion. A public realisation and appreciation of their value in assisting a country like ours to put in place a sound basis for economic and social progress is important. It is meaningful to people and reinforces the concept of Community solidarity.
The Maastricht Treaty envisages economic and monetary union by the end of this century. It recognises the difficulties which this fundamental development can give rise to for the poorer member states and proposes enhanced supports to alleviate those difficulties. Accordingly, Structural Funds assistance is an integral part of Community policy and underpins moves towards European Union in the time scale identified at Maastricht.
As Minister for Labour I have responsibility for overall policy in Ireland relating to the European Social Fund. I want to give the House some insight into the contribution which that fund has made and the levels of financial support which it has given us to date. In the ten years from the date of our accession to the European Community in 1973 up to 1983 the total of Social Fund payments which we received amounted to IR£326 million. Last year alone, 1991, payments received from this source amounted to IR£371 million. In other words, a sum greater than that paid in the course of the first decade of our membership of the European Community was received by us in the last calendar year alone from the European Social Fund.
This year over IR£428 million will be spent on co-financed vocational training and employment programmes in this country. This significant level of expenditure is intended to fund the training of more than 175,000 people in the current year. Fifteen different training agencies benefit from EC financial support and provide training schemes to assist in the achievement of national policies for economic development and social cohesion.
This year the Department of Education will get from that £428 million a sum of IR£125 million from the Social Fund; they are the biggest beneficiary from those funds. That money makes a fundamental contribution to providing vocational education in the second level system, to supporting a wide range of courses run in the regional technical colleges and to co-financing vocationally-oriented programmes in our universities. Structural Fund transfers to the education sector fund the payment of maintenance grants to students. At present, there is a review going on in which a response will be available from the Government in due course. It will also contribute to the salary costs of trainers and teachers, finance purchases of teaching materials and the addition, or modernisation, of the stock of buildings and equipment.
The European Union Treaty envisages a more liberal interpretation of the possibilities for EC funding in the education sector. With the high proportion of our young people in education and the commitment of Irish parents to providing the best educational opportunities for their children, this reinforced EC emphasis on supporting the Exchequer contribution to education is clearly welcome in this country. A young country like ours stands to benefit to a proportionately greater extent. While the population of most countries is quickly ageing, by the end of this century we will have 100,000 young people participating in third-level education alone and up to 72 per cent of our total population of working age.
The potential for increased financial assistance to the third level sector of education from the European Social Fund is great. The realisation of our economic potential, the high educational standards which apply and the participation and completion rates in our third level colleges all combine to make a compelling case for the promised liberalisation of funding possibilities from the ESF which the ratification of the European Union Treaty presents for us next Thursday week.
The European Social Fund will assist the activities of FÁS, the National Training and Employment Authority, by allocating IR£103 million to that organisation this year. Those funds are essential towards ensuring that the unemployed, young people, those in employment and those undergoing apprenticeships have access to training and retraining programmes. Those programmes will enhance their employment prospects, their skill levels and their facility to adapt to conditions of increased competitiveness and technological application.
Tourism is another sector which benefits from the European Social Fund. Almost IR£9 million will be provided by the ESF this year for training at all levels particularly within CERT. When matched by the Exchequer contribution over IR£13 million will be spent on training for the tourism industry in 1992. This training is being organised by CERT and by the Department of Education in CERT training centres, in regional technical colleges, at the Cathal Brugha Street College of Catering and at other third level institutions. The EC is co-financing management training, skills training and courses particularly devised to equip persons who have been out of work for long periods to gain an expertise and real hope of access to work in the tourism industry, which has so much potential for growth and the generation of worthwhile employment opportunities.
In addition, the EC Structural Funds are contributing very significantly to the establishment of the new purpose built CERT training centre now nearing completion at Amiens Street in Dublin. The total cost of this project is almost IR£5 million and its completion this summer will allow CERT to more efficiently and effectively train in the order of 10,000 people each year. Over 85 per cent of those trained on these programmes find work on completion of their courses. The continuation of this level of training activity is fundamentally dependent on the continuing financial support of the European Social Fund. The availability, therefore, of 8,500 new jobs in the Irish tourism sector per year answers some of the points which Senator Neville made in relation to the rate of placement and job opportunities available to our trainees. CERT have done a wonderful job in that regard.
The Social Fund also assists training in the primary economic sectors. This year over IR£11 millions will be spent on training provision for farmers, foresters and fishermen. Of that IR£11 million, £7.3 million comes from the Social Fund. The EC is strongly committed to assisting with the development of human resources so that the fishing and forestry industries, which also have such potential, can expand quickly and generate much needed employment opportunities particularly in rural communities. The EC is very much disposed to consider significantly increased financial allocation for these sectors in the course of the next phase from 1994 to 1997. Equally an emphasis of facilitating and encouraging the widest development of rural communities is evident from the vantage point of the EC. Off-farm and alternative economic enterprises will in future years play an increasingly important part in determining the economic well being and living standards of such communities and providing supplementary income for farmers on the land.
The maximisation of the potential for growth and development in these areas is critically dependent on the provision of proper training at all levels — on the availability of highly developed skills, the applications of modern technology, the identification and development of enterprise potential and the existence of trained and competent managerial and supervisory personnel. The Social Fund makes a very significant contribution already to enhancing potential for further development through training. As I have indicated, its disposition is to contribute to an even greater degree to the provision of those training programmes directed towards contributing to economic development objectives in the years ahead.
A cornerstone of the political determination for a more integrated European Community is the need to bring about greater economic and greater social cohesion. From the perspective of the European Social Fund this objective must incorporate continuing support for the disabled and the most socially disadvantaged, a point perhaps missed by Roche and Tansey in their report. Training for these categories does not always respond to considerations which are exclusively informed by the development needs of an economy. The regulations to govern the European Social Fund in the period 1994-97 will have to take account of this fact because it is important that there be clarity on the purposes for which Community financial assistance is provided and realism in determining the outcomes which it can achieve.
In saying this I am fully conscious of the very considerable assistance which has been provided to date from the European Social Fund. Programmes have been funded to assist with the intergration of disadvantaged young people into the labour market, to address the problems of the long term unemployed and to provide training for the significant section of our population who suffer physical or mental handicap. This year alone the European Social Fund is contributing almost IR£73 million to co-finance training programmes for these disadvantaged and disabled sections of our population.
From the end of the last year the European Commission no longer contributes to spending on the social employment scheme. As a consequence, the Exchequer has this year to fully fund the SES at a total cost of almost £73 million. This scheme is exclusively aimed at those long term unemployed people who are over 25 years of age. It allows for part-time employment on improvement schemes which deliver amenity or environmental benefits to local communities throughout the country. Participation on the scheme should assist in the rehabilitation into working life of those who have suffered from long spells of unemployment and improve their chances of getting work. I know that this scheme is generally valued and does confer benefits. I am anxious to have it reinstated for assistance from the Social Fund post-1993 and I will be making a very strong case with that objective in mind. It is clear also that programmes such as the social employment scheme cannot be assessed exclusively by reference to economic criteria. There is a need for a training element in those schemes because that is the essential criteria which ESF funding will be obtained from the European Community. I have been speaking to public authorities, county councils and corporations who have successfully employed many people on that scheme over the past few years. It is important that we get as much funding as possible from that direction otherwise, in a metaphorical sense, we will all land on our backsides.
Accordingly, my concern is to have a clearer view of the economic and social objectives of training and employment programmes to be assisted under the Community Support Framework for Ireland in the years 1994 to 1997.
Apart from ESF funding for conventional training provision, over IR£20 million has been provided under three human resource Community initiatives — Euroform, Now and Horizon. Euroform deals with pilot training initiatives related to technological change and the effect of the completion of the Internal Market. NOW seeks to further promote equal opportunities for women in the field of employment and vocational training. Horizon funds are devoted to initiatives to assist the disabled and the disadvantaged.
Participation in all three programmes is dependent on the establishment of linkages with compatible projects in other Community member states so that knowledge and experiences gained are enhanced and reinforced as a result of this transnational dimension. A novel feature of these three programmes is that for the first time many voluntary and community groups have had access to Social Fund moneys to develop proposals in accord with EC guidelines and, where successful, have received Community funds to carry through the projects which they initiated. In most cases these funds have dramatically improved the potential of these voluntary and community groups to realise their objectives and have had a very positive impact at the local level.
Many now benefiting through involvement in these initiatives have for the first time been directly touched by the reality of the EC and realised the substantial material benefits which it provides. An appreciation of the reality of Europe at the local level is something which we have all been endeavouring to foster for some time. In the area of training and the overall development of human resources the NOW, Euroform and Horizon EC programmes are having a very positive and beneficial impact.
I have tried to give the House some insights to the wide range of training and employment related activities which the European Social Fund is co-financing in Ireland. The level of national training provision is centrally dependent on this support. In the five years 1989-93 the ESF will have contributed well in excess of £1 billion and transferred 65 per cent of the cash applied to fund all our co-financed training, education and employment programmes. In the period from 1994 onwards we can realistically look to even greater financial support and intervention rates of up to 75 per cent to enable us to continue and expand this centrally important task of education and training our people.
As Minister for Labour I will ensure that the training provided supports to the greatest extent possible economic development and the creation of jobs. In recent times the emphasis has rightly been put on the quality of training and the skills differential that exists in many areas, as referred to by Senators McKenna and Neville.
When comparisons are made with levels of skill and expertise which are required and commonplace in the central economies of Europe we recognise that these are improvements which we must make here to ensure that the very high levels of investments which I have outlined yield the maximum benefit. With this in mind I have recently established in my Department an evaluation unit to look in particular at the quality of the full range of co-financed training provision and the extent to which it meets established objectives. This is a central task and one to which I, as Minister for Labour, and the Commission of the European Communities are fully committed. We want the best value for money and we want the best return in job creation and enterprise development terms. On the other hand, as I have stated, I will not allow an excessive preoccupation with economic development to detract from the funding of training programmes for the disabled and the socially disadvantaged sections of our society. While there is a need to clarify and disentangle the objectives of economic and social expenditure, equally the commitment to social cohesion in the Maastricht Treaty in my view requires that we continue to provide for the training needs of those whose potential to contribute to the realisation of national economic objectives is not immediate.
I look forward to negotiating the adaptation of the regulations which now govern the operation of the European Social Fund. These will inform the emphasis of ESF funding post-1993. In this exercise I will have full regard to the needs of all sections of our population.
There is no doubt that proper training and development is fundamental to economic growth and social progress. Where adaptations are necessary to achieve the maximum level of Social Fund support for Ireland, these will be introduced. I am examining the need to expand the apprenticeship system in line with the German dual model, which was referred to by Senator McKenna in proposing this motion to the House, and the need for an employer-led apprenticeship system. We need more funding for employers. We need to change the whole ethos of Irish industry, particularly in the small and medium sized enterprises, so that employers look upon training as an investment rather than as a cost. These are important policy issues which need to be determined immediately, given that I intend to publish a White Paper on manpower policy in the next few weeks which will seek to co-ordinate all these strands.
I thank the Seanad for its interest in the impact which the Social Fund has had on training activity in this country. I appreciate the co-operation and support of the Seanad. It will assist my efforts to increase this level of Community support for the Social Fund in the year ahead.
I welcome the Minister for Labour to the House and thank him for a positive and enlightening speech. I also pay tribute to Senator Neville, who has just left the House, for the positive way in which he responded to this debate. It is regrettable that the benches opposite are empty. Indeed, it would be remiss of me if I let the opportunity pass without asking where are those people who have been most vociferous in seeking a "No" vote in the past few weeks? Senators Ryan and Murphy gave a press conference yesterday urging a "No" vote, but where are they today when we are discussing this most important issue pertaining to Europe, our involvement in Europe and the benefits we will derive from it? One can only assume that they take this for granted. Those campaigning for a "No" vote on 18 June have a penchant for taking an emotive issue and building on it; but when it comes down to the nitty-gritty of informing the people how their children will benefit they are not to be seen or heard. It would be wrong of this House not to say that they are remiss in their duty by not being here to respond to this debate.
This motion is timely having regard to the forthcoming referendum, because it is important to highlights the benefits the Irish community receive from full membership of the European Community. As usual, once you have the bird in the hand you tend to forget about everything else. Parents take for granted that their child is pursuing a certificate course in electronic or mechanical engineering, or is doing a diploma in university or many other diverse courses. They take it for granted that the fees are paid, that they receive a maintenance allowance and that their books are paid for. It is natural not to ask questions in that situation. Forty thousand young students in colleges throughout the country are benefiting from ESF funding. We should stress to these young people that the money is not being supplied by their parents but that it is coming out of Europe. A total of £121 million comes directly from ESF funds to the Department of Education every year. It caters for 20,000 middle level technician trainees and students in regional technical colleges, 10,700 vocational preparation and training courses, 4,000 vocational training opportunities and 4,000 apprentices. That is not to be sniffed at and it is money we would not receive if we were not part of Europe. I would ask those who are promoting a "No" vote on 18 June where they think the money will come from if we desist from participating fully in European Union? They are being foolhardy. They should reconsider their decison and vote "Yes" in the interest of our young people.
The NOW programme seeks to promote equal opportunity for women in vocational training and employment. Many innovative programmes have been developed to facilitate the participation of women in this area. Traditionally, such programmes were not pursued by women and in some cases women were excluded from participating. We now have a integration through the Now programme. Women may participate fully in those programmes and their re-entry to the job market will be enhanced as a result. It is important to highlight this, having regard to the many unfounded and mischievous statements being made about the implications for women in the forthcoming referendum.
The institution of the European Community has always been a positive influence in relation to women obtaining their rights, which had been denied to them in many western cultures in the past. Full participation in Europe will ensure a continuation of this trend, and we must encourage that; but the greatest encouragement must come from the women themselves. They will have an opportunity in the referendum on 18 June to openly and strongly say that they see their participation in Europe as an opportunity of enhancement and of ensuring that they play a meaningful role in our immediate communities, in our country, and, indeed, in Europe.
I would also like to refer to the performance of CERT and the tourist industry in general. In 1987 this Government set up a programme to develop this natural resource and create jobs in the tourism sector. Who would have thought in 1987 that our catering industry today would be held in such high regard throughout the world? Who would have thought that so many companies in the manufacturing sector would be presented with ISO 9000 awards, awards for excellence? Through their training programme in catering and tourism, CERT are demanding quality. Because the level of education and the innovative training that is part and parcel of CERT courses, we are now seeking a quality mark in the catering industry. Not too far down the road, like the manufacturing industry, our hotels, restaurants and those involved in the catering and tourism industry will seek marks of quality. That is what we want to achieve because unless we achieve standards of excellence, we cannot and will not stand apart. The opportunity is there; £51 million was provided in this area from 1990-93; 28,000 jobs were created in the catering industry alone during the period of this programme, not to mention tourist-related areas. From where did this money come? It came from Europe and we will receive further funding there under the Cohesion Fund because our European partners see certain inequalities.
Europe provides us with an opportunity through the ESF, EC funding and the operational programmes to stand alone, to make sure that our people acquire skills and, having acquired them, to apply them in setting up their own businesses in co-operation with CERT, FÁS and under ESF programmes. With those skills and expertise we can create jobs in the indigenous sector. We would be foolhardy, to vote anything but "Yes" in the referendum on 18 June.
I welcome the Minister to the House. He is a young man with many bright ideas and I congratulate him on his appointment as Minister for Labour. His speech this evening has been enlightening and is a reminder of all the schemes funded through the Social Fund. Senator O'Keeffe said it was disappointing to hear people on the other side of the House, who are here morning, noon and night, pontificating about the lack of effort on the part of the Government promoting a "No" vote next Thursday. If these moneys were not coming into the country what state would the country be in today and where would we get the natural resources for training programmes?
I am extremely proud of this scheme and FÁS schemes. When the FÁS schemes were introduced in the seventies I was one of the first people to get a scheme going in the village of Tarbert. Four old folks' homes were built under that scheme, enabling families who had been living in very poor conditions in the countryside to move into the village. Thereafter FÁS schemes continued to expand. Over the past number of years approximately 28 stonemasons — a dying breed — have been trained in my area of Kerry under a FÁS scheme. They are now earning a living and training other young people. People with such skills are badly needed.
The young people being trained under FÁS schemes will be future leaders not alone in Ireland, but also in Europe. I know young people trained by FÁS, who have set up their own businesses in Germany and are now offering employment to other young Irish people. Therefore, it is disappointing that people are campaigning for a "No" vote in the referendum.
I have been involved with CERT over the past number of years, numerous people from my county got high awards through CERT and are now in senior management posts in big hotels all over Europe. The amounts of money paid in the first decade by the European Social Fund and the £428 million that will be spent this year alone to co-finance vocational training and employment programmes, are staggering and it is important that those moneys are spent in the proper way. The German system is held up as a model but I am sure that Irish people going over there will enlighten them as well as acquiring new skills.
There is need for change in the running of FÁS schemes; there is no point training 100 people for jobs in carpentry when only ten jobs are needed. The same applies to blocklayers, mechanics and so on. I see people being trained to acquire skills which will enable them to work in different areas. In Kerry people are being trained to take tourists on nature walks, etc., that is a skill in itself. Tourists come here to see our sloblands and birdlife and Irish people attend nature courses and are being trained to take people on nature trails.
I welcome the Minister to the House. I am delighted with the report he has given us because it copperfastens the reason the people of Ireland should come out — and this is only one angle — next Thursday and give a majority "Yes" vote.
I welcome this debate and I also welcome the Minister for Labour to the House and wish him well in his portfolio. It is healthy politically to see a young man in such a senior position and I compliment him on his actions to date. He has shown a steady hand in situations that he had to deal with up to now and I have no doubt he will make a great impression in that portfolio in the years to come.
Today we are discussing the European Social Fund. It is of vital importance that all aspects of European involvement are discussed because people are homing in on certain aspects of European development. They are homing in on matters that have not happened yet, without reflecting at all on our involvement in Europe over the past 20 years.
It is very important to reflect on and compare the situation when we joined the EC with the present. Some 20 years ago the Irish people took a bold step and decided to join the European Economic Community. They did it on the basis that the Irish people were Europeans long before that. In fact, anybody who has ever travelled to the cities in Europe will find Irish names in the records of the universities, and involved in freedom fights. The Irish have been involved in European affairs and have had glorious achievements in European cities down through the centuries. We are geared to Europe.
Many young Irish academics are proving themselves to be very successful in Europe. The Irish people are regarded extremely highly in Europe. They have proved themselves to be equal, if not better, than their counterparts. Our fine educational system is partly responsible. I believe our educational system is second to none in the European context. The European Social Fund has played its part particularly as far as regional technical colleges are concerned. ESF funding provides opportunities for people to get third level education to national certificate and, in more recent times, to national diploma and degree levels. These opportunities were not readily available prior to that because third level education was available only to those who could afford it or who were grant-aided on the grounds of ability. Through Government lobbying for EC funds that scene changed and young people who had done reasonably well in their leaving certificate got the opportunity to continue to third level education and study for a certificate, diploma and in some cases a degree. This was a major step.
We have to consider whether moneys from the Structural Funds can be used to provide further opportunity in education. I am delighted the Government are emphasising the future development of education which is of vital importance. I hope when final proposals for EC Structural Funds money are agreed we will create further opportunities to educate our young people at all levels. Jobs are important but it is vitally important that people are equipped whether it be by academic or vocational education before they go on to the jobs market. We have been conscious of that.
I am sure Ministers have agonised on this matter at Cabinet down through the years. When the Minister for Finance asked each Department to make cuts I am sure it was with reluctance that education was asked to bear the brunt. In fairness Fianna Fáil Cabinets in particular have shown down through the years two things are important to them, health and education. Health involves the protection of the under-privileged and the poor, and education provides opportunities for our young people in the future. Successive Governments are to be complimented, and in particular this Government are to be complimented, on the way they have set their priorities in favour of the education of our young people.
The European Social Fund plays a major part in a great many other activities whether in the training of the handicapped, the provision of courses to develop our tourism industry or whatever. One way or another the European Social Fund has played a major part in the development of Ireland in recent years and I have no doubt that with the involvement of the present Minister for Labour, a young progressive man, we will see further opportunities in that field. I hope that on 18 June the Irish people will realise their priority is to further enhance the opportunities that are now available to our young Irish people and thus lay down opportunities for future generations.
Why should we, as Irish people, deny opportunities to the future generations of this country? What is being built at present is a peaceful progressive and cooperative Europe. Ireland and the Irish people want to be part of that and by being part of that we are providing for our young people opportunities that would not and could not be provided by a small national standing in its own. European involvement is of vital importance. Irish people think as Europeans and I ask that they vote for European Union on 18 June.
In winding up this debate may I again compliment and congratulate the Minister on his very positive speech this evening. It was enlightening to hear him outlining in detail the enormous contribution the Social Fund makes to all aspects of education and training. I would like to thank the other speakers, Senators Neville, O'Keeffe, Dan Kiely and Finneran.
May I refer in passing to those who were absent. I agree with the views of speakers who said this is one of the most important debates we will have in this Chamber. On other occasions people would be lining up to make a contribution on some petty debate. I am absolutely amazed that when such an important topic is being discussed those people who are vociferous on most occasions were absent from the House. However, that is their loss.
I would accept by and large what Senator Neville said in relation to the application of the Social Fund. By no stretch of the imagination is anyone suggesting that everything is absolutely perfect. Of course, people accept there is room for improvement and as the Minister said in his speech we must make the best use of the funds we get. It is recognised that we must take advantage of what we get. I am a little concerned at what Senator Neville said on unemployment. It is extremely important that the long term unemployed are given the opportunity to acquire new skills because otherwise they would have very little hope of getting employment when the opportunity arose. We have to acknowledge that.
FÁS schemes have been of tremendous advantage throughout the country. Young people have developed particular skills when participating in projects that have taken place in every single community, urban and rural. FÁS schemes have been of enormous benefit to local communities. I am sure everybody in this House is aware that applications come before the county council at every meeting for extra FAS schemes to come on stream. That is proof positive of their success. We have to give credit where credit is due and compliment the Minister and the Department of Labour on the operation of those schemes and the magnificent contribution they have made to life in rural and urban areas. May I just say to Senator Neville that while I respect Dr. Tansey greatly and am aware of his work, he is not always right. From time to time he makes mistakes and what he advocates is not always correct in the final analysis. His theories on how the Department of Labour and so on should operate, cannot be taken as Bible.
The Minister mentioned tourism in his speech and I am delighted at the potential for job creation in the tourism industry. We have not even touched the tip of the iceberg in relation to the opportunities that are there to be exploited in the tourism related industries. I am very pleased at the Minister's statement that £9 million is being provided by the EC for the development of off-farm and alternative enterprises. It is extremely important that opportunities be given to people to develop off-farm or alternatives enterprises in the tourism sector. Moneys from the Social Fund should be drawn down so that people will come up with projects to develop off-farm enterprises to augment their income from farm enterprises. I am delighted at the response to this type of development at present, because people are extremely interested in it and I can see such developments being of major importance in the years to come.
As I mentioned earlier, there is the possibility of extra funding for education. As the Minister said, assistance from the European Social Fund to the Department of Education is in excess of £121 million per annum. By any yardstick that is a very significant contribution. The assistance covers a range of vocational training and educational programmes, from courses for young people who have completed their compulsory schooling to post graduate courses in universities, as well as courses for the long term unemployed and for young people who left school with no qualifications. It is important that we mention the Green Paper on Education at this juncture. I understand there are proposals to develop a two tier second level education system with greater emphasis on vocational education geared towards the needs of industry. Again we come back to this suggestion, and I take Senator Neville's point on the use of moneys from the Social Fund for training and so on. We are at one in suggesting that industry has not played its part in training. That is why I instanced, and the Minister mentioned it as well, the two tier system in Germany, where industry itself takes the major responsibility for training and sees expenditure on training not as an expense but as an investment, and the State plays a secondary role in that area. That is an extremely important point and we must take this on board when spending ESF funds.
May I stress again the importance of funding from Europe? The proposed doubling of the Structural Fund is extremely important. I reiterate the point other speakers have made already; can anybody who looks at the benefits that have accrued to this country, both economic and socially, in the past 20 years since we joined Europe and the future potential benefits to accrue to this country advocate that we vote "No" on 18 June? It is a simple question. I do not know how any right-thinking person could advocate to the general public that they should vote "No". Those engaged in kite-flying, innuendo, and scare-mongering on side issues that have absolutely no bearing on the referendum should consider the damage they would do to this country if they were to be successful.
I thank the Minister for his very positive contribution and all those who contributed to the debate. I ask the House to give unanimous approval to this motion.
Question put and agreed to.
Sitting suspended at 7.20 p.m. and resumed at 8 p.m.
What is the position with regard to Matters of Concern?
An Leas-Chathaoirleach
They will be taken after the Adjournment. When is it proposed to sit again.
It is proposed to sit at 10.30 a.m. tomorrow.