The Minister, Deputy Mary Mitchell O'Connor, has been patiently waiting outside with her staff for some time. That is another reason we should try to be a little more strict in the time allocated for the Order of Business. I will achieve this in due course. I formally welcome the Minister and wish her every success in her new portfolio.
Delivering Sustainable Full Employment: Statements
I thank the Chathaoirleach for his good wishes.
I welcome the opportunity to address the Seanad on the important issue of getting people back to work. I look forward to working with the House. I respect the way in which it does its business. The Government's goal is to achieve sustainable full employment. We want all people to have the opportunity to enjoy rewarding work. We want to ensure all people can participate and contribute to their full potential to the economy and society.
A Programme for a Partnership Government sets out our ambition to help to create 200,000 additional jobs by 2020, of which a total of 135,000 are to be created outside Dublin. We also want to reduce the unemployment rate to 6%. Our target this year is to add 50,000 new jobs and we have made a good start in that more than 15,000 new jobs were created in the first three months of the year. In early 2012 the first Action Plan for Jobs was launched. At the time the unemployment rate was above 15.1%. In May this year it fell to 7.8%. A total of 155,000 more people are in employment today than in 2012. It surpasses the original target to have an extra 100,000 people at work by the end of 2016. The Government is committed to sustaining the rate of job creation and delivering full employment by 2020.
The enterprise agencies of my Department have been pivotal in addressing the jobs challenge in recent years. Employment in Enterprise Ireland and IDA Ireland-supported companies increased by 22,000 in 2015. The local enterprise offices supported the creation of more than 3,500 new jobs. I wish to give the message loud and clear that the unemployment rate has declined in all regions since 2012. A total of 20,000 jobs were created in the past year alone outside Dublin.
Almost two thirds of the new jobs created by Enterprise Ireland clients and over half of the jobs created in IDA Ireland companies in 2015 were outside Dublin. However, we cannot be complacent. It is my job to ensure jobs will be created in regional areas. In 2015 we developed eight regional action plans for jobs to ensure the recovery would be felt in every region. The overall target is to grow employment in each region by 10% to 15% by 2020 and we have set up a regional implementation committee to oversee and drive each plan. The programme for Government also commits to reducing each county's unemployment rate to within 1% of the State average.
The first progress reports on the implementation of the regional action plans for jobs will be published in the second half of this year. As I mentioned, the number of people out of work has declined considerably since its peak in 2012. However, unemployment remains too high. The Government is placing particular priority on youth unemployed and the long-term unemployed. In May this year the youth unemployment rate was 15%, down from 20.8% in 2015. However, we cannot be complacent about youth unemployment and must ensure that group is targeted. The number of long-term unemployed declined by 27,000 in the past year which, of course, is welcome. However, I am conscious of the fact that we must continue to reduce this number further.
As unemployment continues to fall, it is timely to focus on the quality of employment provided. Quality of employment is a key determinant of the well-being of individuals and households. The number of part-time workers increased by 3.7% in the year to the end of March 2016. Women are more likely to work part-time than men. Two thirds of part-time workers are women. In some cases working part-time is by choice. It is positive that we have such flexible opportunities. There are also people working part-time who would work additional hours if they were available. The number of underemployed part-time workers declined by almost 14% in the past year. The level of underemployment among women fell by 15.1%. We need to ensure this trend will continue.
Ireland has a comprehensive suite of employment rights legislation. We strongly protect those who work on a part-time or temporary basis. On the matter of zero and low-hour contracts, the Government is preparing an appropriate policy response to the University of Limerick study. It was essential that stakeholders be given an opportunity to consider and respond to the study and the large number of submissions received require careful consideration by my Department. The submissions will inform the policy response to be considered by the Government.
In July the Low Pay Commission will make its next recommendations on the national minimum wage for 2017 and its recommendations must be evidence-based. We want to have a minimum wage that is both fair and sustainable. We want to assist as many low-paid workers as is reasonably practicable without creating significant adverse consequences for employment or competitiveness. I look forward to receiving the report and taking it forward.
Innovation is at the heart of Government policy on enterprise and creating high quality jobs. Leadership in science, research and innovation play a crucial role in attracting, developing and nurturing business. They are also essential ingredients in creating and maintaining employment. Research and development active firms also do better in job creation and exports. The Innovation 2020 strategy sets out the vision for Ireland to become a global innovation leader. Innovation 2020 is focused on delivering a strong sustainable economy and a better society. We want to see greater numbers of enterprises engaging in research and development. We need more enterprises progressing to a point where innovation is embedded as a key part of their business model. We have a target to increase the spend on research and development to 2.5% of GNP by 2020. That is a key priority for my Department.
I am acutely aware that the rising economic tide may not yet have reached every business. Through the Action Plan for Jobs, we have made significant progress since 2012 to make it easier for SMEs to do business in Ireland. This strong focus on SME competitiveness and growth will continue.
Creating a fertile environment for entrepreneurship and start-ups is one of my top priorities. This includes targeted actions by Enterprise Ireland and the LEOs to promote female entrepreneurship. The level of participation by female entrepreneurs in Enterprise Ireland's high potential start-up programme increased to 20% in 2015. The target was 18%.
The Action Plan for Jobs is working. However, we cannot be complacent as we remain vulnerable to external shocks, key among which are Brexit, increases in oil prices and exchange rate movements.
We must protect the gains in competitiveness achieved in the past few years. Ireland has moved to seventh place in the IMD global competitiveness rankings, but more remains to be done. I will be working with the National Competitiveness Council and my ministerial colleagues to ensure we will see progress on the key competitiveness issues. We need to address the issue of costs for business. We also need to prioritise action to remove infrastructure bottlenecks. We need to ensure we have sufficient skills and talent supply.
I have asked my Department to initiate the process to develop the 2017 Action Plan for Jobs, which is under way. We will be consulting widely with external stakeholders in the coming months. As I said, we want to gather the best ideas for sustainable job creation. My priority is to deliver a business environment that will be among the most competitive internationally. I want to use our collective resources across government to support enterprise and sustainable employment growth in all regions. Through collective action, I am convinced we can achieve sustainable full employment by 2020.
I am delighted to be here and look forward to hearing Senators' ideas. I want them to know that the door is open in the Department and that if we can help, we are available to do so. Enterprise Ireland, IDA Ireland and the LEOs are all available. I ask all Senators to familiarise themselves with the plan for their region which is available on the web. As I said, if we can help, we will be delighted to do so.
I, too, congratulate the Minister on her appointment to the Government.
Ba mhaith liom comhghairdeas a dhéanamh leis an Aire on her new appointment. No doubt she will bring great enthusiasm to her new post.
I listened intently to the Minister's forecasts. Some 200,000 jobs are to be created by 2020, of which 135,000 will be created outside Dublin.
This is starting to sound like a sketch from Alice in Wonderland. The new quote of 200,000 jobs to be created is welcome and we would be delighted to see them being created. One would have to agree that the Mad Hatter came up with the figure of 68% or 135,000 jobs being created outside Dublin, given that the current figure is 50%. I cannot see how the figures add up. However, I wish the Minister well. As she said, there has been a great improvement in recent years.
The document goes on to deal with the issue of IDA Ireland site visits. It is easy to see that jobs follow site visits. Some 50% of all site visits were in Dublin where 48% of IDA Ireland supported jobs were created. It is no coincidence that the unemployment black spots of the north east, north west and midlands receive an average of 2.5% each of site visits. IDA Ireland is doing a great job, but there will have to be a focus outside the M50. The local IDA Ireland park in Mullingar contains one business which was relocated from elsewhere in Mullingar after lengthy negotiations undertaken by my fellow Oireachtas Member, Deputy Robert Troy. The estate is a place about which IDA Ireland forgot and it is only 45 minutes from the M50 and waiting for use.
Rural Ireland has been strangled to death following the closure of Garda stations, Army barracks, schools and the abolition of town councils, which were all Government-led. Services fled - banks, post offices, shops and retail centres. We need to lead from the front and give country communities hope.
Skilled manufacturers and tradespeople need support with the apprenticeship model. It is unfair that they have to suffer the loss of trainees while at college and also expect them to contribute €16,000 over four years to fund the programme. That is the reason the number of apprenticeships is at an all time low of 8,000, down from a peak of 30,000. This is an issue on which the Minister could focus.
Another subject which was glossed over by the Minister was wage discrimination. When we come into and leave this world, we are in the hands of nurses. Teachers are the people who model us, encourage us and introduce us to the world of learning during our formative years. Members of the Garda and the Defence Forces protect us and put their lives on the line every day in order that we can have a normal functioning society. The wage discrimination the Government forced on gardaí, nurses, teachers and soldiers who start on a gross salary of €22,000 to €25,000 is degrading. If the Taoiseach wants to keep the recovery going, he should start with those on whom we are so dependent. None of these starter public servants is on a living wage, which has become a divisive issue in their workplaces. When formulating her document, I ask the Minister to look at these areas and if there is anything I can assist her with, I will be happy to oblige. I appreciate her coming to the Chamber and offering an open ear.
On the Order of Business there was a discussion about the arts. I neglected to point out that we had somebody on the Fine Gael side of the House who had been proficient in the arts for more than four decades, Senator Joe O'Reilly. We look forward to his performance.
I thank the Acting Chairman for the introduction. I could return some of the compliments and enlarge on them. Be that as it may, I appreciate his kind remarks and wish him well. I know that he will chair the session with great skill.
I congratulate my great personal friend, the Minister, Deputy Mary Mitchell O'Connor, on her appointment. I am delighted for her and think she will bring to her office tremendous energy and natural leadership skills. I wish her well. I am confident that she will get results.
By way of background to this debate, there is nothing that gives people more dignity than a job. It is crucial to their family and friends and their self-worth. It is important to keep that perspective in mind. The dignity given by work is so important and it is sadly absent from those who do not have it. It is well established that the way to remove people from the poverty trap is to get them employment. The intergenerational effect of getting them back to work is enormous. About three generations will be affected by somebody leaving unemployment. The great success of our times and the recent past has been reducing unemployment. No other achievement is greater and we should revel in it and be proud of it. Since 2012, 155,000 more people are at work. We are about to break the 2 million number of people in employment. In May the unemployment level was 7.8%. Of course, we are not happy with that level, but it represents a huge change from a rate of 15.1%. The youth unemployment rate has fallen by 5% in the past year from 15%. All of these achievements are enormous. As a people and a nation, we can be proud of them because every individual in the country contributed to this outcome. In that context, I congratulate the Minister for Education and Skills, Deputy Richard Bruton, previously the Minister for Jobs, Enterprise and Innovation, and his Minister of State, Deputy Damien English, on their achievements in that sphere. What has been achieved to date should give us confidence that we can finish the job and get much more done. The big challenge is to bring back our emigrants. We have an enormous pool of talent among them and need to get them back. With their new experiences, the great education with which they left and their natural flair, they will come back and create jobs. It will, therefore, have a domino or multiplier effect.
There are some things that are not glamorous but which need to be said in this debate. We need to keep the public finances under control as we have to remain competitive. If we keep the public finances under control, borrowing for the provision of infrastructure will be cheaper and money will be available to us. Inward investment will be attracted. In addition to keeping the public finances under control, we need to maintain the correct tax environment. Also - this is not a very popular concept - we need to maintain wage control. The greatest act of patriotism and selflessness in which workers and their organised bodies can make is to engage while achieving realistic and well justified pay increases as the economy improves and show the level of restraint that will allow for further job creation. What is now called for is a new patriotism. It is the new Christianity in action, the new meitheal or the new commitment to the common good. With that in mind, we need to see everything in terms of job creation and need to be restrained in our wage demands. If there is industrial unrest, it will adversely affect inward investment and create difficulties.
One good aspect of job creation to date is the cross-sector increase in the jobs created.
Some 9,500 new jobs were created in the construction sector in the first quarter of 2016. That is important. There is great potential to increase the number of jobs in the sector as the housing crisis is tackled. There is a need for major emphasis on apprenticeship training, upskilling workers and creating the skills required among displaced former construction workers in order that they can re-embrace the sector.
An interesting point-----
The Senator has half a minute remaining.
There are so many points I would like to make. I have not yet got used to the time constrictions in the Seanad.
Give us the abridged version.
The issue of full-time carers is interesting. If it was to be upgraded and given more status, jobs could be created.
I am well aware of the achievements in spreading jobs regionally, but I am anxious that far more IDA Ireland itineraries include visits to rural areas. Will the Minister look at the shortage of visits in IDA Ireland itineraries to areas like my constituency of Cavan-Monaghan to see if the number can be increased in the coming years? I am convinced that if we get IDA Ireland officials in, with potential employers, they will stay and jobs will be created.
Since the Leas-Chathaoirleach is in the Chair and despite the fact that he is cutting me off, I take the opportunity to congratulate him and wish him well.
I thank the Minister for coming before us and congratulate her on her appointment to her new job. It is lovely to see a woman here as a Minister. She is the first woman Minister to appear before us.
Any debate on sustainable jobs must include a discussion of what constitutes a sustainable labour market. We know that the labour market is crucial in creating sustainable jobs in communities and in terms of the economic, social and cultural well-being of society. According to data taken from the most recent quarterly national household survey, the level of employment has increased by 2.4% in the year to the end of the first quarter of 2016. This represents an increase in total employment of almost 47,000 jobs, of which 31,000 were full-time and 16,300 part-time. This represents an increase of 2.1% in the level of full-time employment and almost 4% in part-time employment. While I welcome the increase in the number of people at work, I do so cautiously on the back of the recent CSO figures that provide us with evidence that there has been zero growth in the west. This does not come as a surprise to those of us living in the west, as for every new job created, there are job losses every day. We only have to look at the loss of over 200 jobs last week in Sligo, with the closure of the family-owned McCormack Garages. I extend the solidarity of this House to all of those affected by these job losses and their families.
I cannot mention job creation in the west and rural Ireland without begging the Minister to speak to her ministerial colleagues about the need to fast-track broadband provision. We need to have the Minister for Communications, Energy and Natural Resources in the House to discuss how we can fast-track its provision. It is not good enough to cite 2022 as a date for its provision. I can see the problem. I cannot communicate with the Houses of the Oireachtas because I do not have a proper broadband service where I live. The Minister does not need me to tell her that without an adequate broadband and telecommunications service, the Government’s jobs plan is not worth the paper on which it is written.
We need to talk about emigration and its impact in terms of the reduction in the number of people unemployed. Emigrants are employed in other countries.
Alongside the lack of employment opportunities, we must examine the fact that the labour market is characterised by major problems with low pay, the increase in the level of precarious work and increasing industrial unrest, as outlined. This promotes inequality and jeopardises economic growth. Ireland now has the dubious distinction of having the second highest number of low-paid workers in the OECD. Contrary to the Government’s spin on the figures quoted, I find the high rate of increase in the number of part-time jobs extremely worrying. I say this because all of the research shows that part-time workers make up a high percentage of those who are concentrated in low-paid employment sectors. They are the ones who are most vulnerable to exploitation, being on low pay, in precarious work and on if-and-when contracts. They also tend to receive less training to assist their development, which is worrying in terms of how they progress. Low pay and weak workers’ rights architecture are bad for workers, the economy, communities and society.
By continuing along the track of non-standard work, we are creating a new community that I call the working poor. They are the ones who have to pay for everything and do not have adequate income to do so. They are the ones who struggle to get to the end of the week or the month, worrying whether they will have enough to pay their ever-increasing bills. That is why we see such outrage at the increase in bin charges in terms of what the extra cost may mean for people. We are talking about mothers – it is mostly women – who are looking at their sick children and wondering if they can get through the night without having to bring them to the GP because they cannot afford the €40, €50 or €60 fee they will have to pay. They are trying to balance taking their child to the GP and doing the shopping at the weekend. That is the reality. They are the people I see every day. We must remember that these families are not just working in the private sector; there are also low-paid workers in the public sector, including teachers, gardaí and clerical staff in local authorities, who are barely able to survive on the wages they are receiving.
Low pay exerts significant pressure on the State in terms of social transfers, with the result that it ends up supplementing the pay of vulnerable workers. In 2015 alone, it spent a record €350 million in subsidising the incomes of thousands of families in low-paid work. There has been a rapid rise of about 60% in recent years in the number of workers in receipt of family income supplement and other social transfers. Essentially, employers’ profit margins are being topped up. This highlights the extent to which workers and their families are at risk of poverty. The transfer of wealth from the State is, in essence, reproducing, year in, year out, huge profits for large companies that see nothing wrong with bullying and exploiting their workforce.
The Senator has half a minute left.
That was really quick.
I will cite as examples Dunnes Stores, Tesco and other companies like them. Dunnes Stores has the highest number of workers receiving family income supplement. That is not right and the issue needs to be tackled.
I will leave out the rest of my speech out of respect for everybody else because my time is up, but I ask the Minister to put legislation in place to regulate zero-hour contracts and to examine thoroughly the many issues that go to make up a sustainable working market. I welcome what she said about her office and Department being open. I look forward to working with her for the west, rural Ireland and County Mayo to get the jobs we desperately need to stop emigration and to bring life back into communities.
I wish the Leas-Chathaoirleach well. He will perform his role with great aplomb. I also congratulate the Minister, Deputy Mary Mitchell O'Connor, on her appointment.
In the brief time available I want to speak about the constituency I represent, Limerick, and the theme of sustaining full employment. Many jobs have been created in the past three to five years, which is to be welcomed. However, I want to look at the issue of sustaining full employment in an Irish context, with Limerick, both urban and rural, being regarded as a microcosm.
Competitiveness is the key to employment creation.
A couple of things would bring competitiveness. On employment costs, it is important that the marginal rate be brought below 50% for staff take-home pay. It is welcome that the JobBridge programme is to be discontinued. It served its purpose for a period, but it was open to abuse, although not by everyone. Now we are considering the provision of sustainable jobs. We have to get a handle on insurance costs, which is a huge factor. The low cost of energy is external to us, as is the rate of exchange for exports. The Brexit debate may have an impact, but that is something we cannot control. I hope the Taoiseach’s intervention will encourage people in the United Kingdom to vote to stay in the European Union.
I want to see balanced regional development in Limerick, with the 2030 plan progressed, in order that we will have the infrastructure required, particularly buildings in the city centre that IDA Ireland and Enterprise Ireland could showcase. I would also like the Hanging Gardens and the projects on the Cleeve's and opera centre sites to be expedited. That is extremely important. IDA Ireland has committed to bringing 66 projects to the region by 2019. We will hold it to that commitment. The development of the knowledge box is critical.
There are several villages in rural east Limerick, including Cappamore, Murroe, Caherconlish, Castleconnell and Ballyneety. Many people have emigrated from rural villages, as well as cities. The real challenge in terms of sustainable employment is to get emigrants back and people to set up businesses in their communities. It is not always about foreign direct investment; we need to create an environment for the person from the area who wants to set up a business. There are weaknesses, including the speed of, and access to, broadband. Pressure has to be kept on the national broadband plan, particularly in rural areas such as east Limerick. I find that mobile phone coverage in many areas has got worse rather than better. Something needs to be done about the matter. This is extremely important in attracting people into rural areas. Access by road is not as big a factor as the other two in the Internet age. What incentives can be used to encourage people to set up in a rural village? We need to put thought into this. They may be tax or grant incentives, or access to services, but a rural area needs to compete on an even keel with an urban setting when people are deciding where to set up a business. In villages businesses have been sustained against all the odds, but they need people to come to provide extra employment in order that they can survive and prosper. They offer benefits in terms of the numbers of pupils in schools and existing businesses. I look forward to welcoming the Minister to Limerick and showing her what it has to offer and what she can bring to promote it.
On a national level, we must have a proper review of skill shortages, not just at third level education but also in the case of apprenticeships. Germany has a model under which when young people leave school they can move into apprenticeships. I look forward to the Minister’s comments.
I congratulate the Leas-Chathaoirleach on his appointment yesterday. As the lone male member of the Civil Engagement group, I join Senator Rose Conway-Walsh in welcoming a female Minister to the House. In her opening words she spoke about "getting people back to work" and my jaw dropped. However, the paragraph picked up at the end when she said "all people can participate ... to their full potential." The programme for Government refers to the goal “to deliver sustainable full employment” in order that all people will have the opportunity to enjoy rewarding work and participate and contribute to their full potential in the economy and to society.
It is extremely important for us to recall that the coin has two sides, but I sounnd a word of caution: because it is written does not mean that it will happen. There can be a slip between cup and lip. There was huge impetus to get people back to work. We remember Dell, Waterford Crystal and others in the first few months. We all have micro-memories of job losses among people close to us, of small local enterprises that went to the wall overnight and never made the news, but it is very important to keep that in mind that they were all real people.
When things go wrong in the economy, people on the margins - those with disabilities or mental health problems, those who carry the burden of addiction and various issues and the long-term unemployed - are affected. Before coming here I used to drive through Ballybough in Dublin’s north inner city. In the great days before the collapse the queues of people collecting their unemployment benefit extended out onto the street. There is a hard core of unemployed persons and although the figure has come down, 6% is still high. They are to be found in Dublin and the rest of the country. The people with the problems I mention are to be found in every community. That has to be at the core of our considerations.
In the 1980s there were fewer than 1 million in the workforce. We are now edging up towards 2 million and still have a bit of work to do. When we talk about the diaspora, the parents and families of people with disabilities do not go to Dublin Airport to meet young people. People with disabilities cannot be part of the diaspora. Up to ten years ago we sucked people from all over the world into the labour force, but we did not take people with disabilities. There were almost 100,000 long-term unemployed persons in the country.
In the early days of the last decade manufacturing industry went down the tubes. We did not notice it because there was another crane on the skyline. Young lads ran from the agriculture sector onto diggers, dumpers and trucks because that was where the big money was. We degraded manufacturing and agriculture, which are not the exciting sectors for the workforce. However, we were very proud of the agriculture sector in the dark days when both it and the agrifood sector kept the flag flying for us internationally. There are parts of the economy that are not connected with research and development and the high-flying new technologies but which are important and provide real jobs for people across the country.
I challenge anyone in this Chamber or elsewhere to give me examples of when he or she heard about disabled people losing their jobs when the bust came. They did not, as one cannot lose what one does not have. I do not state this in a recriminatory sense but simply to observe that we missed out when we were top dog and there was full employment. We had money to burn, but we still could not do it for people who badly needed to be in the workplace.
The Senator has one minute left.
I am being asked to come to a-----
No, the Senator is not. I am simply giving him a gentle reminder that he has one minute remaining.
I am being asked to round it up in that sense. I thank the Leas-Chathaoirleach.
A robust model of sustainable employment needs a few things. Ireland has a worldwide reputation and relationships, which is a soft but valuable asset. The ambition must be providing employment for all. Dependable and comprehensive public services are also needed. I refer to the economic, social and that old-fashioned term, the social wage. While there will be upward wage pressure, we can dampen expectations if we have dependable social and public services. As for people with disabilities and others, issues such as education, training, social protection, mobility and transport must be considered. Members must look outside the core areas they normally consider and pull them together.
I congratulated the Leas-Chathaoirleach this morning when he was not in the Chair and now that he is installed, I do so again. I wish him well. I also welcome the Minister, Deputy Mary Mitchell O'Connor, and congratulate her on her elevation to her ministry. She has good west of Ireland roots and the issue of spreading jobs to the regions is top of her agenda, which is welcome.
One thing the previous Government got right was job creation. As the Minister stated, what we must do now is spread jobs. Senator Rose Conway-Walsh mentioned that, effectively, the reduction in unemployment was due to the fact that everyone had emigrated. However, it is a fact that there are an extra 155,000 people working. As many of them would have been obliged to emigrate had the jobs not been created, I greatly welcome their creation, as well as the statistics for the reduction in the level of long-term and youth unemployment, which is also a priority.
Another issue that has arisen recently concerns the JobBridge programme. We are in a different place than in 2011, at which time the JobBridge programme served its purpose. Many people secured full-time employment as a result of being part of it, but we are now in a different space. It is welcome that the programme is to be phased out because it is no longer needed as much as it was then.
The key issue the Minister addressed in the context of regional growth and the spread of jobs to the regions is absolutely crucial. It can be done in a number of ways. As the Minister mentioned, IDA Ireland, Enterprise Ireland and the local employment offices, LEOs, are in place. I wish to be constructive, but people, businesses and potential employers are falling through the cracks because the LEOs operate mostly in the areas of mentoring and providing many services in a one-stop shop, which is an excellent idea. I have been involved with a number of small businesses that had the potential to employ more than ten people. However, as they were not exporting, Enterprise Ireland was not applicable to them. Similarly, foreign direct investment was not involved. The key for small businesses and the self-employed is to somehow put in place structures to support the five, ten or 15 jobs in indigenous Irish companies. The incentives are not in place for them and one is accused that if the jobs were created by companies coming in from abroad, there would be bells and whistles. I ask the Minister to give consideration to this issue.
Some agencies have been set up. In this context, I will mention the Western Development Commission in the case of the west and the north west. Its remit covers the five Connacht counties of Mayo, Galway, Leitrim, Roscommon and Sligo, as well as counties Donegal and Clare. It has done excellent work in providing jobs and through the Look West campaigns because there are many advantages to be gained in relocating to the west that are not available in urban areas. However, its budget is very small. In a possible model for the rest of rural Ireland, the commission could provide the incentives for the sector to which I refer that has been left out at. I urge the Minister to consider this issue.
The broadband issue was mentioned earlier. The findings of a survey were issued this morning. They suggested 20% of small businesses were not operating online. In many cases I imagine this is not by choice; it is simply that they do not have broadband. While 2022 has been mentioned, that is the date by which every house and business in the country will be connected. A great deal of work is under way in the roll-out of broadband. It is important that this process be speeded up. I am aware that the Minister's colleague, the Minister for Communications, Energy and Natural Resources, is anxious to do this. However, when people hear the date 2022, they ask whether no one will have broadband in rural areas before then, whereas many will have it.
Competitiveness is another issue the Minister addressed. Another success of the previous Government in the past five years was in the tourism and hospitality sectors with the 9% VAT rate, but we are in danger of losing that edge of competitiveness again due to increasing costs. This issue must be monitored, but there are huge opportunities. I welcome the Minister's enthusiasm because while I am aware of other issues and services that must be upgraded, as well as restoration and so on, one must not lose sight of the objective of full employment. It is achievable and I wish the Minister well in that task. I look forward to working with her.
I congratulate the Leas-Chathaoirleach on his elevation to his new role and congratulate the Minister on her appointment. As anybody who has run a primary school will find running a Department to be very easy, I wish the Minister the best of luck.
Comments have been made in the Chamber on how, statistically, we have done much better in recent years in bringing down the unemployment rate, which obviously is to be welcomed. In that time the previous Government also managed to provide many protections for workers' rights. It not merely increased the national minimum wage twice, but I also refer to the reintroduction of the joint labour committee, JLC, system, the employment regulation orders, EROs, and collective bargaining legislation. Consequently, a threshold of decency was provided for in the economy. However, I remind the Minister of the Private Members' motion that was passed by Dáil Éireann only two weeks ago. It was in the name of the Labour Party and written by Senator Gerald Nash who did a huge amount of work in the Minister's Department in the previous Government. The motion reads:
That Dáil Éireann:
affirms that, as economic conditions continue to improve, it will stand up for working people and ensure that employees secure a fair share of growing national prosperity;
accordingly calls for a programme of incremental increases to the national minimum wage until it is pegged at 60% of median earnings, and for a living wage of €11.50 per hour to be adopted throughout the public sector;
believes that, alongside tackling low pay, we must address the root causes of insecurity at work, commit to further protections for vulnerable workers in precarious employment and bring an end to exploitative employment contracts that foster increased casualisation of workers;
calls therefore on the Government to prepare and introduce a legislative package that will protect and enhance workers’ rights by:
- ending the abuse of "if and when" contracts;
- combating bogus self-employment;
- ensuring freelance workers have the right to collectively bargain;
- extending the transfer of undertakings regulations, TUPE, to workers in services such as catering and security;
- protecting workers in "informal" insolvencies and collective redundancies;
- providing statutory redress for the victims of workplace bullying;
- promoting employment standards and the living wage in public procurement; and
- preventing unilateral reductions in pay;
notes in particular the University of Limerick report to the Government, Study on the Prevalence of Zero Hour Contracts among Irish Employers and their Impact on Employees, and, commissioned following the outrageous treatment of Clerys workers in June 2015, the Cahill-Duffy Expert Examination and Review of Laws on the Protection of Employee Interests When Assets are Separated from the Operating Entity; and
commends the recommendations set out in both reports and calls on the Government as an urgent priority to prepare legislation for their implementation.
As the Minister is aware, the motion was passed by the Dáil, the main House of the Oireachtas. I would like to hear her comments on it because I may have misheard, but I have been led to believe she is not minded to accept the report from the University of Limerick. If that were the case, it would fly in the face of the expressed will of Dáil Éireann and what is right and just, particularly given that the Clerys workers are this week marking the first anniversary of their disgraceful treatment.
I will touch on the issue of dignity of work and how work is so important for those in the vulnerable sectors of society, which is often forgotten about in the economic debate. During the turbulent time when unemployment levels crept up it was often said unemployment cost the Exchequer €27,000 for every person unemployed, including the loss of VAT receipts and welfare payments, but this completely misses the point. It is the loss of dignity and self-worth that is the major deficit caused by unemployment. There are sections of society that are not necessarily benefiting from the Action Plan for Jobs. During the Celtic tiger period more than 100,000 people were in consistent unemployment. Whatever action plan the Government comes up with and whatever efforts are made to reduce unemployment, they do not seem to permeate into every sector of society. The comprehensive employment strategy for people with disabilities should have been part of the Action Plan for Jobs, but during the tenure of the last Government the Department did not really want to know about the strategy which effectively was run as an equality measure within the Department of Justice and Equality. That is disappointing because if one looks at certain sectors of society such as those living in disadvantaged areas, members of the Traveller community, people with disabilities and migrants, one can see that there are particular barriers and issues that they face in gaining employment, being protected in work and ensuring their employment rights are enhanced. In the context of that comprehensive employment strategy, perhaps the Department might again look at how it can engage with and drive it and be more positive about it because when I was involved in putting it together, I felt the engagement of the Department was less than positive.
I wish the Minister well in what she is trying to do. The threshold of decency is everything. Having statistics that we can roll out and being able to say unemployment has come down are laudable and all very well, but dignity in work and the threshold of decency in the economy are everything. Workers' rights and the sense of dignity a worker has every morning in getting up and going to work are what keeps society together. I reiterate my request to the Minister that she deal in a positive manner with the Labour Party motion that was passed in the Dáil with the support of other parties two weeks ago.
I wish Senator Paul Coghlan all the best in his new position as Leas-Chathaoirleach. I also congratulate the Minister on her elevation to her new post. She has always been a great people person and is the right person for the job.
Rebuilding the economy to support job creation, leading to the delivery of sustainable full employment, has been a key objective of this and the previous Government which I had the pleasure of serving under. In 2011 Ireland's employment rate was below the EU average, while its unemployment rate was the fifth highest. The Action Plan for Jobs was introduced in early 2012 when the unemployment rate was 15.1%. Today, it has fallen to 7.3%, with 155,000 more people employed by the end of the first quarter of 2016, bringing the total number of employed to just under 2 million to date. Stimulating growth in all regions has been a priority to ensure all areas achieve their economic potential, allowing communities to benefit locally.
We continue to make great strides with incentives such as the Wild Atlantic Way and the recently launched Ireland's Ancient East which includes my local area of Trim, south Meath and Meath west. We have seen the recent opening of hotels and businesses along the west coast, increasing employment locally and substantially building the tourism industry. Another incentive was the filming of certain scenes from the hugely popular "Star Wars: The Force Awakens" on the magnificent site of Skellig Michael in County Kerry. These scenes have placed Ireland's rare beauty centre stage all over the world and can only have a positive effect on tourist figures for this year and many more years to come. In 2015 the tourism industry reached a record number of visitors, beating the previous record set in 2007. We are working towards creating an additional 50,000 jobs in the industry by 2025. To date, the lower VAT rate of 9% for the hospitality sector, together with the removal of the travel tax, has been successful in boosting tourism levels and moving forward is now imperative. It is vital to maintain value for money for visitors to ensure continued growth in the industry.
We have been successful in attracting major multinationals to the country with our highly educated and motivated workforce. Another reason is the 12.5% corporation tax rate which has been controversial with some US politicians, some EU member states and certain members of the Opposition who seem to oppose everything. It is important that we maintain this rate of corporation tax to attract support and increase job creation. However, we must not become complacent either. It is SMEs that employ most of the workforce. Together with our up and coming entrepreneurs, these companies need to be encouraged and given support to start up and continue to grow.
It is imperative that certain areas be addressed to facilitate and encourage further growth among SMEs and thus enhance employment for others locally. The issues I have pencilled in are bank loans and the Irish Credit Bureau. During the height of the recession I said the bureau was not fit for purpose. It was all right before the crash, but when the crash happened, many businesses fixed their bank loans. Because of this, despite the fact that they are repaying them, they have defaulted in the eyes of the Irish Credit Bureau and will not obtain loans for the next five years. It is an issue at which we must look. The businesses concerned are paying their way, but they face difficulties when they look for more credit facilities to move forward and employ new people. I recently visited a furniture factory in Navan. The owner had renegotiated his loans, wanted to move on and could have employed ten people straightaway, but he could not do so because he could not get the money. It is a significant issue. We must examine the Irish Credit Bureau.
Another issue that I raised this morning and on which I will soon table a motion relates to social protection for the self-employed. The motion will call for implementation of the Mangan report.
Another issue concerns commercial rates, in respect of which there are huge levels of debt.
I am speaking to the owners of businesses that are in debt to the tune of €40,000 to €70,000 in commercial rates. A sum of €10,000 or €15,000 in commercial rates on 1 January 2016 might not be a whole lot, but if it is not paid by 31 December, it will be adding up and a mountain heading into next year. We have to look at commercial rates which should be charged based on a profit system instead of square footage.
The other huge issue which many Members have raised today is broadband provision in rural areas. There was a report this morning that 20% of rural businesses did not have broadband. In certain areas I imagine some of them do not even have mobile phone reception. To kick the can down the road to 2020 is to kick it too far. We should be implementing this measure in the next three to four years.
I am delighted to welcome the Minister. I was also delighted to meet her in Carlow last Friday. It is great to see a female Minister. I am thrilled and wish her well. It is great for women because I always think we have to fight for everything.
I want to talk about the south east which, as the Minister knows, continues to have the highest unemployment rate. There is an action plan for jobs, but I was disappointed recently, when researching this issue, to discover that IDA Ireland had visited Dublin more than 100 times last year, while there were two visits to Carlow. Will the Minister look after rural Ireland which is so important? Towns like Carlow, Bagenalstown, Hacketstown and Tullow also need employment. We need IDA Ireland to visit us more often. Will the Minister address the issue and revert to me on it?
As the Minister knows, in the past week there has been major coverage in all of the newspapers of the issue of a university for the south east. It is massive for Carlow because Carlow Institute of Technology is one of the biggest employers in the county, employing more than 700 people. Furthermore, it is crucial to have university status in the south east, especially in Carlow and Waterford. Figures show that 7,260 people are missing out on higher education places because of it. It is crucial for students and parents who want to give their children an education that can open many a door. Will the Minister commit on this issue which is crucial for the south east?
I know that the issue of apprenticeships has been addressed. Apprenticeships are vital in building a skilled workforce and that aspect is missing. We need as many jobs as possible, but we also need to ensure there are apprenticeships for those who want to become electricians, builders and plumbers. We have to ensure they are catered for also. This is something the Minister will address and it needs to be addressed. Not to be repetitive, but between 2011 and 2015, 338,000 people emigrated owing to the lack of jobs. SMEs provide great jobs and employment, but they are not getting credit from banks. Credit availability is a massive issue and these enterprises are not getting the support they need. Will the Minister ensure SMEs are looked after and get the credit they need from banks?
Another matter that is dear to my heart because I have been dealing with cases in the local authority is local development contributions. I know of a case in which during the boom a building was bought but which is now owned by the banks. There are people who are interested in buying it. They will create jobs, but for them to buy the building they are being asked to make a €70,000 development contribution to the local authority. Will the Minister please do something about development contributions? They need to be taken away. That is what is stopping small SMEs from setting up new businesses. Will the Minister address the issue?
We have spoken about rates. We also have what is called the global re-evaluation of rates and businesses. It is a newly introduced system. There is an awful fear because small businesses are being reassessed and for many rates are being increased. Will the Minister examine this global re-evaluation to ensure rates will not go up? I can tell her that I know of three or four people whose businesses are being assessed and for whom rates are being increased. This will result in the loss of jobs. Evaluations are great and all, but at the end of the day it must be ensured the rates paid by businesses will not be increased.
I was a little surprised that the issue of online shopping was not addressed. Online shopping is absolutely huge, in particular among younger people who are inclined to spend all the time. What can be done? As the Minister knows, in towns such as Carlow, Bagenalstown and Hacketstown efforts are being made to try to rejuvenate the town centres. This issue needs to be addressed. We need to ensure new shops will open and that footfall will increase in town centres which are affected by online shopping. I do not wish to be repetitive, but the absence of broadband is definitely affecting businesses, as is the lack of mobile phone coverage.
All I can tell the Minister is that we have what I believe are called the working poor. They can only afford to have one parent go out to work because they cannot afford to meet the cost of child care. Will the Minister, please, look after the working person, the person who is most affected? Will she ensure the south east will have fair representation by IDA Ireland in the locating of businesses and will she ensure university status will be achieved for Carlow and the south east?
I wish the Leas-Chathaoirleach well in his new position. I also congratulate the Minister, Deputy Mary Mitchell O'Connor, on her appointment and wish her every success in her new role.
This is my first contribution in the Seanad and it is appropriate that I do so on the important issue of delivering sustainable full employment. As a young Senator from Roscommon, I believe the single biggest issue facing the west is the need to create greater job opportunities. North Roscommon is one region in the west which in recent years has suffered hugely from the lack of employment opportunities and outward migration, with many of our young people working in more urban centres.
As Senator John O'Mahony pointed out, in its good work in conducting research the Western Development Commission found that between 2012 and 2015 the total number of people at work in the west had grown by almost 3%, whereas the number at work in the rest of the country had grown by 6% or double the amount. The said report also emphasised the real challenges we faced in rural areas. Towns such as Ballaghaderreen, Boyle, Castlerea, Strokestown and Carrick-on-Shannon have great communities. We have huge potential, but we need support and help to breathe life back into towns to make them attractive again for young people to return to work and set up business.
As stated by the Minister, A Programme for a Partnership Government has set ambitious targets. It is important that we set ambitious targets. The last Government made huge progress in ensuring the unemployment fell. It is now under 8%. The new commitment is to ensure we will have an extra 200,000 people back at work by 2020, of whom 135,000 will be working outside Dublin. It is absolutely critical that we deliver on this target.
Last Monday was a really good day in Ballinasloe, with the creation of 100 new jobs in a medical devices company, with an investment of almost €10 million in research and development. I thank the Minister for attending. The employment of 100 additional people in Ballinasloe will have a hugely positive impact on the town and surrounding areas. It will create an environment in which highly skilled individuals will be attracted back to the region to live, work and raise their families. The Government must continue to create an environment in which we will see more action like this. Many rural areas offer excellent educational, sports and community facilities, as well as a great quality of life.
Recently, Roscommon County Council introduced a rates incentive scheme for new businesses opening in derelict or vacant premises, which is progressive. However, it needs to be more ambitious in the short term for it to be successful. We cannot do this alone and central government across relevant Departments must take a more active role in assisting with funding of important initiatives such as this. Broadband provision which has been mentioned several times in the context of this debate is the single most important priority in infrastructure provision on which we must deliver. There should be urgent action on broadband delivery in rural areas as we are at a competitive disadvantage. Action must be taken because matters are not moving quickly enough.
I ask that every effort be made to assist those areas in the greatest need. It is absolutely critical that every employment agency invest its energy and prioritise support and funding for areas in dire need in order to attract people back to them. From actively seeking the generation of ideas to assistance with funding applications and their being approved to allow for the creation of sustainable jobs, the employment agencies must act.
The good work of the Western Development Commission has been mentioned and it has the potential to be expanded. Enterprise Ireland, local enterprise offices and others must be proactive in assisting the process. The regional action plans for jobs seek in some way to achieve this, but we need to have more localised targets, even down to specific towns, in order to ensure progress is measured and delivered. The report of the Commission for the Economic Development of Rural Areas, CEDRA, emphasised the need for the development of rural economic development, RED, zones in towns and their hinterlands.
I very much welcome the Minister's focus on the need to place greater emphasis on supporting rural areas and tackling youth and long-term unemployment. Real action is needed, however, if young people are to return to the west where there is much potential for many individuals to enjoy a great place in which to live, work and raise a family.
This is my first time to speak before the Leas-Chathaoirleach and I am delighted to welcome him to his new position. I am also delighted to see the Minister and her being appointed to her portfolio. I would love to have seen her appointed to the education portfolio where her expertise could really be used. On considering the matter, however, I know that she will bring a new perspective to the issue of job creation because of her educational background merging with a desire to drive issues forward. I have known her for many years as a very hard-working politician and I am sure she will put a lot of effort into the role she has been given. I again congratulate her.
I stated yesterday that I did not want the Seanad to be laboured with statements during the current session. With respect to colleagues, we are reiterating what members of the public hear every day of the week from the political class. It would be more useful to sit down to consider three or four initiatives that might lead to job creation rather than making rand statements on broadband, roads and various other matters. We should be trying to single out a couple of issues to assist the Minister in driving matters forward.
With all due respect to my colleague from the south east, the establishment of 16 university campuses would do nothing for job creation. The likes of Massachusetts Institute of Technology, MIT, one of the most renowned academic institutions in the world, do not need the tag "university" to make them relevant. I was in Carlow recently to attend the military graduation and can state it is the finest third level establishment with the most forward-thinking people with whom one could ever ask to work. It does not need the tag "university" to make it relevant. Carlow Institute of Technology is delivering educational programmes for Aer Lingus in Dublin and the military.
Why is the Senator so worried about Carlow Institute of Technology?
We must adjourn the debate as per the order of the House.
The Seanad adjourned at 2.15 p.m. until 2.30 p.m. on Tuesday, 21 June 2016.