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Central Statistics Office Report.

Dáil Éireann Debate, Tuesday - 17 May 2005

Tuesday, 17 May 2005

Questions (1, 2, 3)

Pat Rabbitte

Question:

1 Mr. Rabbitte asked the Taoiseach if he will make a statement on the recent Central Statistics Office report, Measuring Ireland’s Progress 2004. [10592/05]

View answer

Trevor Sargent

Question:

2 Mr. Sargent asked the Taoiseach if he will make a statement on the recent Central Statistics Office report, Measuring Ireland’s Progress 2004. [11886/05]

View answer

Joe Higgins

Question:

3 Mr. J. Higgins asked the Taoiseach if he will make a statement on the recent Central Statistics Office report, Measuring Ireland’s Progress 2004. [15207/05]

View answer

Oral answers (33 contributions)

I propose to take Questions Nos. 1 to 3, inclusive, together.

The Central Statistics Office published the report, Measuring Ireland's Progress 2004, on 31 March 2005. The first edition of this report was published in December 2003 in response to a commitment in Sustaining Progress to establish a set of national progress indicators. The feedback to the initial report was very positive and included requests for it to be published annually. The current report is a response to that.

The report contains a total of 108 indicators covering 48 economic, social and environmental themes. The majority of the indicators — 66 — include comparisons between Ireland and the situation in the EU. As far as possible, figures have been supplied for all 25 EU member states as well as Iceland, Norway, Switzerland, Bulgaria and Romania. The remaining 42 indicators contain time series data of national interest focusing on trends in Ireland over time. I welcome the report as a valuable benchmarking of progress in Ireland.

Additional information not given on the floor of the House.

The statistics I will cite relate to the enlarged EU of 25 member states. Ireland's population increased by 12.3% to more than 4 million between 1995 and 2004. Its rate of population increase is the second highest in the EU and significantly higher than the EU average of just 2.2%. Ireland's fertility rate of 1.98, which compares with an EU average of 1.48, was the highest in the EU in 2003. Between 2001 and 2003, life expectancy at birth was 80.3 years for Irish women and 75.1 years for Irish men. Life expectancy for men in Ireland was slightly above the EU average of 74.8 years but that for women was 0.8 years below the corresponding EU average of 81.1 years.

The percentage of Irish people between the ages of 25 and 34 with third level education increased from 27.1% in 1999 to 39.4% in 2004. The corresponding EU rate in 2004 was24.8%. Ireland had the second highest gross domestic product per capita in the EU in 2003. It was almost one third higher than the EU average. Ireland’s gross national income, which adjusts for some globalisation effects, was 11% above the EU average in 2003. Ireland remains one of the most successful EU member states at attracting foreign investment. In 2003, direct inward investment flows represented 17% of GDP, or ten times the corresponding eurozone rate of 1.7% of GDP.

The public balance in Ireland was significantly in surplus during the late 1990s. However, the public balance decreased from a surplus of 4.4% of GDP to a small surplus of 0.1% of GDP between 2000 and 2003. Four eurozone member states exceeded the 3% of GDP deficit limit under the EMU Stability and Growth Pact in 2003. Ireland is significantly behind the EU leaders, Sweden and Finland, in innovation and technology indicators such as investment in research and technology and new patent applications.

The employment rate in Ireland increased from 54% in 1995 to 65.5% in 2004, which was higher than the EU average of 63% in the latter year. Although Ireland's unemployment rate increased from a low point of 3.6% in 2001 to 4.4% in 2004, Ireland had the second lowest unemployment rate in the EU in 2004. The rate was less than half the EU average. The unemployment rate for early school leavers aged between 18 and 24 was 21.8% in 2004, compared with an unemployment rate of 7.9% for all persons aged between 18 and 24.

Ireland's international trade competitiveness has deteriorated since 2000, mainly as a result of higher inflation and an appreciating euro. Cumulative inflation in Ireland between 2000 and 2004 was 16%, compared with an EU average of 9%. The proportion of Irish people at risk of poverty after pensions, in particular, and social transfers was 21% in 2003. That was one of the highest rates in the EU. Ireland's net official development assistance amounted to 0.39% of gross national income in 2003. That was below the UN 2007 target of 0.7% of gross national income and the Government's 2002 interim target of 0.45% of gross national income.

Ireland's greenhouse gas emissions were 131% of 1990 levels in 2001. That was 16% higher than the Kyoto 2008-12 target for Ireland of 113% of 1990 levels. There was an improvement between 2002 and 2003, when emissions decreased to 124.7% of 1990 levels, or 10.4% above the Kyoto target in 2003. The percentage of waste placed in landfills in Ireland decreased from 87% in 2001 to 72% in 2003. Paper and glass were most likely to be recycled, with 39% of paper waste and 42% of glass waste recycled in 2003.

I note that Ireland's homicide rate was consistently low in the years before 2003. I am sure I will receive more information about this matter from the Minister of State, Deputy Kitt, than I will from the Minister for Justice, Equality and Law Reform later this afternoon. There has been an enormous increase in the homicide rate since 2003.

That is not true. It is the exact opposite of the truth.

That is what I expect the Minister to say.

There has been a decrease in the rate in each of the last two years.

The Minister is not answering this question. He will get a chance in a while. The statistics in Measuring Ireland's Progress 2004 make rather bleak reading for anybody who examines the social dividend of Ireland's affluent society and burgeoning economy. While we have a strong economy, we also have a very weak society. This social weakness is evident when one considers the report's finding that one in five people is at risk of poverty. Ireland and Slovakia share the highest rates of poverty in the EU. Our problems in this regard stem from the Government's low rate of expenditure on social protection, education and health. Ireland's rate of expenditure on social protection is the lowest of all the EU member states. This country's record on education is not much better. The average class size in Ireland is one of the highest in the European Union. I do not need to talk about the problems in the health service.

The sad truth that has emerged from the report is that we are not investing adequately in our people, including our children. Can the Minister of State outline how the Government intends to address the dichotomy between the quality of our society and that of our economy? While our economy is performing quite well, our society is quite weak. There are problems in areas other than social inclusion, education and health. Ireland's level of greenhouse emissions has not decreased to anything like the level outlined in the Kyoto Agreement. Ireland's quality of waste disposal is 50% below the EU average. Will the Minister of State justify what this country is doing to assist the world's poor? In 2002, Ireland's target level of overseas development aid was 0.45%, to increase to 0.7% by 2007, but the figure had increased to just 0.39% by 2003. We seem to have gone backwards since then rather than making progress.

Every Government strives to ensure that the country's resources are spread fairly. The Deputy has acknowledged that our economy is successful. That our economic success should lead to an improvement in people's lives is acknowledged in Measuring Ireland's Progress 2004, which is a very valuable report. As it is a statistical report, it highlights the areas in which discrepancies exist and progress needs to be made. The proportion of Irish people in third level education is 39.4% compared with an EU rate of 24.8%. Ireland has the third highest rate in the EU of participation in third level education. We all agree that educational qualifications are central to the acquisition of a decent job. Ireland is the envy of its EU partners because it is the best country in the EU at attracting foreign investment. In 2003, direct inward investment flows represented 17% of this country's GDP, or ten times the corresponding eurozone rate of 1.7%. The report under discussion highlights that Ireland has successfully attracted employment. The public balance is in surplus and the unemployment rate has been reduced.

The Deputy rightly referred to the issue of poverty and deprivation. However, different rates apply and there is continuing argument about the discrepancy between the EU survey on income and living conditions model and Ireland's national model. To take the example of a particular deprivation measure, heating is a key deprivation measure in Ireland but is not necessarily so in a country like Greece. We are beginning to use EU guidelines for such measures but these guidelines will need refining.

I am not in the business of arguing over the detail of percentages. The key point for any Government is to discover the real needs and the Government is determined to do this. I will not rehearse the record of the Government in regard to social welfare payments because Members have already heard it, but the achievements of the Government are substantial.

What about the wasting of public money by the Minister for Justice, Equality and Law Reform?

The statistics show that if social transfers and pensions are not considered, Ireland is doing better than other countries.

While our social protection expenditure as a proportion of gross domestic product was lower than in the EU 15 member states, it is worth noting that it increased from 14.3% in 2000 to 16% in 2002. In addition, Ireland has the second lowest proportion of persons aged 65 and over in the population, which has an effect on social protection expenditure. That Ireland has a young population and does not at present have as many older people as other nations suggests an imbalance in the comparative figures. I make this point as a statistical fact with regard to social deprivation. However, I agree with the Deputy that it is our duty to try to deal with these issues.

The environmental issue of greenhouse gases has been referred to as an area needing improvement. Our greenhouse gas emissions were at 131% of 1990 levels in 2001. This was 16% higher than the Kyoto 2008-12 target for Ireland of 113% of 1990 levels. The situation improved in the period 2002-03 with emissions decreasing to a level of 124.7% of 1990 levels or 10.4% above the Kyoto target in 2003. It is clear that there is a need for improvement in this regard.

The issue of overseas development aid is close to my heart as I was Minister of State with responsibility for this area on two occasions. As the House will appreciate, the allocation for 2005 provided an increase of €70 million in Government spending, bringing total spending to €554 million. In addition, a positive development is that the Government has agreed to provide further increases of €65 million in each of the years 2006 and 2007. These substantial increases mean that over the three years 2005 to 2007, €1.8 billion will be spent by Ireland on development assistance.

Having spent a considerable period of my political life in the Department of Foreign Affairs, I agree with the general consensus in the House that we should strive to get to the 0.7% target as soon as possible. A very good process is being carried out by my successor, the Minister of State at the Department of Foreign Affairs, Deputy Conor Lenihan. He has conducted a consultative process——

The Minister of State talks of consultation. Why does the Government not put up the money? The Minister should stop the codology.

This is important. I would encourage Deputy Jim O'Keeffe, as a former Minister of State, to make a submission to that consultative process.

My submission is that the Government should put up the money that was promised.

I will not get into what other Governments did. However, what was done by other Governments was disgraceful.

I thought the Minister of State was not going to get into that. He was a member of the previous Government.

A sum of €1.8 billion will be spent over the next number of years. Following the consultative process, the key for the Government is to prepare for the UN summit in September and to put in place a new target figure. This will be done when the consultative process is completed.

I thought for a second that Deputy Jim O'Keeffe would cross the floor of the House to tackle Deputy Kitt.

There is a much more innocent explanation.

Will the Government learn any lessons from the CSO report? To whom was the Minister of State, Deputy Kitt, referring when he mentioned positive feedback? Were a number of people charged with responsibility for giving feedback or is he making a more general point?

Is the Government taking any lessons from the CSO figures? I note that Ireland has the second lowest unemployment rate and this is generally a clarion call for the Government in that once the unemployment rate is low everything should be fine. Do the other figures further enlighten the Government regarding the matter? There are different definitions of poverty but let us not argue about them. There is clearly a significant number of so-called working poor. These people may be in employment but they are suffering from poverty. Does the Government have plans to either delve into the detail behind these figures or introduce more accurate measurements of quality of life than unemployment, GDP and GNP figures, which can be misleading in terms of people's day-to-day lives? Has the Government looked further at the various countries which have a far more sophisticated measure of the way in which progress is made?

How will the CSO report impact and be utilised under Sustaining Progress? Will it in any way change the Government's pursuit of a consumption-based model to start measuring quality of life in a way that enables us to deal with people's day-to-day challenges as well as issues such as climate change and energy consumption which will further affect our competitiveness? Will the Government address the issue of international competitiveness, which has been deteriorating since 2000? It has been suggested that this has to do with inflation, but does the Government agree that it equally has to do with our very large dependence on oil and high energy consumption compared to other countries on a per capita basis?

That is a bit of a mouthful. I congratulate the Deputy and his party on their conference. The process of feedback was initiated through Sustaining Progress so the feedback came from social partners and other interested parties. Anybody involved in the social partnership process at Government and public service level, as well as those in business or the trade union movement, would have a huge interest in these facts. Feedback was received together with encouragement for the CSO to continue its work in this area, and I am the Minister responsible in that regard.

Ireland's unemployment rate increased from a low point of 3.6% in 2001 to 4.4% in 2004. However, we still have the second lowest unemployment rate in the European Union and less than half the EU 25 average. The CSO is definitely pursuing other avenues to delve further into these figures. As I said to Deputy Costello, the key is to target resources where they are absolutely required regardless of whether the figure is 21%, according to the EU model on poverty criteria, or less under our own. The broad criteria relate to the elderly, single parents and children. With regard to poverty, we must measure the income of households and how that impacts on children. It is vitally important that the CSO examines all areas with regard to quality of life. We have discussed this issue with CSO personnel and they are looking at time use surveys, that is, what people are doing with their time. They are doing some interesting work, with people spending time with families in the home. Pilot work is going on also in that area, a subject raised in the Dáil in the past, which involves working with the gender equality section of the Department of Justice, Equality and Law Reform. The result of that work is expected this summer.

Good statistical work is being done on people's involvement with sports, a topic that relates to yesterday's debate on obesity, in terms of players, organisers and volunteers. That is important work in determining whether people are actively involved in sport or are organisers or mentors. That statistical work, combined with the capital and current expenditure on sport, will be important in evaluating the current position. All parties in this House are concerned with the need to get the greatest possible participation in recreation and sport.

People often regard the Central Statistics Office as being made up of public servants who are out of touch with the reality of life, but from my involvement with it in this Ministry I have found them to be an enlightened group of people who are examining various new areas and I commend them for doing that. To answer the Deputy's question, much useful, thematic work is coming on-stream with regard to the new areas the CSO is examining.

There is some work to be done on the environmental area, but while there were some negative indicators it is worth noting some of the progress made. One aspect I would mention in particular is that Ireland's energy intensity ratio has improved from 236.4 in 1994 to 151.3 in 2003. The percentage of unpolluted river water in Ireland improved from 67% in the period 1995 to 1997 to 69.8% during 1998-2000.

We are all aware of what happened as a result of the work of the Tánaiste, Deputy Harney, with regard to smoke pollution levels in Dublin. That shows the importance of a major initiative such as the one the Tánaiste pursued. Smoke levels decreased dramatically following the introduction of the legal restrictions on the sale of non-smokeless coal in 1990. Similar improvements occurred when the ban was extended to Cork and Limerick. There are many positive aspects in the report, including the area of landfill in terms of recycling of plastic and paper. Much progress has been made and I am convinced more progress will be made because of the good work taking place with regard to recycling. As far as I am concerned, the CSO people have their finger on the pulse. They are examining new areas and I encourage them to do that.

One of the findings of the Central Statistics Office report, Measuring Ireland's Progress 2004, was that the population has increased to over 4 million, the second highest rate of growth in the European Union. Will the Minister of State agree that after eight years of his Government in power, it is now painfully clear that his preparation for this population increase and its implications has been pathetically inadequate and that the Government is floundering in front of the urgent needs of these new and expanding communities and the community of youth? Will he agree also that the west Dublin area is a good example of what we face, considering that it is the fastest growing area in Europe, yet virtually every week I have to attend meetings of committees in new and expanding communities that have to struggle with the State to get the most basic facilities, such as schools, community facilities and other needs?

Last night I attended a meeting of the parents' association of Castleknock Community College. Will the Minister of State agree that only a few years ago that college was designed on the orders of the Department to cater for 440 students but it now has 1,100 students, making it the second or third largest school in the country, brought about by incremental additions in response to what should have been foreseen, which is a massively expanding community? Will he agree that is pathetic planning by the Government? The college urgently needs a major sports hall but the Government will not set aside the resources for that. Does the Minister of State agree that it highlights the scandal of €60 million of junked electronic voting machines lying in holes around this country when that amount of money could build ten sports halls? His colleague, the Minister for Justice, Equality and Law Reform, spent €30 million on unsuitable land for a prison without proper competitive tendering, an amount that would make even a seasoned land speculator blush so generous was it. As a member of the Committee of Public Accounts I was shocked that the €7 billion set aside for roads jumped to €16 billion within a few years.

In view of this incredible misappropriation and incorrect prioritisation, what urgent action will the Government take to redirect resources to the urgent community needs brought to our attention by the CSO's report? Does the Minister of State agree that if this were done the Minister for Justice, Equality and Law Reform would not need to throw anti-social behaviour orders around like confetti as another pathetic response? If social infrastructure for the youth was put in place in communities many of the problems with which we must now contend would not exist and young people would be diverted away from anti-social behaviour. While I put a number of questions the nub of all of them is the necessary resources now urgently needed in community and social infrastructure.

Deputy Higgins covered a multitude of issues and I will try my best to deal with them.

It was on one point.

Deputy Higgins strayed from the question on statistics as he knows from his involvement in this part of Question Time. I will do my best to deal with his questions.

Deputy Higgins started on the issue of the population and moved on from there. He would agree that it is a fantastic reflection of Ireland's success as an economy that 50,000 Polish people have come here to work. Our responsibility as Europeans is to look after them and provide them with jobs, and that is being done. Deputy Higgins and I will meet them in all sectors of the Irish economy and they are making a positive contribution, as are others all over the world and outside the European Union.

To follow on from that, one tries to provide people with jobs and housing. Deputy Higgins may not like private sector building but there is house building at all levels and every effort is made to deal with the issues of affordable and social housing. If one examines overall housing, one sees the industry has built 70,000 units per annum. I can give many examples to illustrate the broader picture of what is happening in the economy. Deputy Higgins asked about the needs of these people. We must look after them. Those of us who are out and about, meet them and can see that they are successfully integrating into Irish society.

There are pressures on schools and on health care. If we were to analyse it we would see that much of this pressure is due to the fact that we have a rapidly increasing population. The population has increased by 12.3% to 4 million people in the period from 1995 to 2004. It is the second highest rate of increase in the European Union and was significantly higher than the average of the 25 member European Union of just 2.2%.

The Government has not prepared for it.

The fertility rate in Ireland remained the highest of the 25 EU member states in 2003 at a rate of 1.98% compared with the EU average of 1.48%. In many ways Deputy Higgins acknowledges the success of the economy.

What is the Government doing about community infrastructure? That is the point.

I agree with Deputy Joe Higgins in that we should be doing our best to deal with this, but the rate of population increase is extraordinary. The Government cohesively pursues a wide range of policies in this regard, although I have no doubt that the Deputy would fundamentally disagree with some of them. He has indicated such in the House on previous occasions. We are talking about attracting inward investment through having the right mix of taxation policies in an enterprise culture. I would argue about many of the policies to which the Deputy subscribes.

I am asking about social and community infrastructure.

The Deputy has decided to expand the debate and I am touching upon many of the policy issues for which he criticises us. It is his right to do so, but I argue that this good mix of policies has brought about success. That, in turn, has brought additional pressures to bear on all of us, but I guarantee that we are doing our level best.

The Deputy also referred to facilities. The Central Statistics Office is tracking that area, including quality of life, sports and recreational issues. The House has debated social exclusion and, as Government Chief Whip, I strongly encouraged the recent debate on suicide. Such debates reflect the Government's concern about such matters which cannot be ignored. We need to deal strongly with these human social issues as part and parcel of our developing economy. I have wandered somewhat from the original question, a Leas-Cheann Comhairle, as have others.

The Minister of State did not wander.

He wandered lonely.

The Minister of State is back from his wanderings now and I am back also. What is the current level of co-operation between the CSO and the Statistics and Research Agency north of the Border? Is the Minister of State aware that a mistake is continually made between population comparisons of various census results? The census of 1901, an all-Ireland census, showed the population at that time to be 3.2 million. The census in 2002, which referred only to this State, the Twenty-six Counties, recorded a population of 3.9 million. I heard one Minister refer previously to the latter figure as the population of Ireland, but such mistakes are misleading and convey false information.

It is imperative that there is increased co-operation on an all-Ireland basis as regards the real statistical facts. Will the Minister of State outline the current level of co-operation between the statistical bodies North and South, as well as the steps he is taking to enhance such co-operation? Does he agree that this is both desirable and achievable?

The Deputy's question does not relate to this CSO report, but I know there is North-South co-operation on a wide range of issues. On an earlier occasion, I replied to the Deputy about that specific issue when we were discussing tourism. I agree with him that co-ordinated work is required on matters such as tourism, especially given that Tourism Ireland is looking after the whole island. When I followed up the Deputy's earlier queries, it was confirmed to me that there is a considerable amount of co-operation on tourism and trade. As regards the CSO report entitled Measuring Ireland's Progress, we are obviously talking about our own jurisdiction. However, I will be happy to obtain more information for the Deputy in this respect, including further details on specific areas of North-South co-operation.

I agree with the Deputy that the maximum amount of co-operation is needed across the board. I have no doubt that when, hopefully, there is further political progress in the North, with the restoration of the Assembly and North-South bodies, a natural follow-up will include clear co-operation on all fronts. It would be mutually beneficial if that was done.

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