Written Answers Nos. 87-94
87. Deputy Bernard J. Durkan asked the Minister for Finance the most successful initiatives taken by Government in the past two and a half years to regenerate growth and job creation; and if he will make a statement on the matter. [41766/13]
View answerThe Government has put a priority on getting people back to work and the recent labour market figures are very positive in this regard. The Quarterly National Household Survey results for the second quarter of this year showed the strongest job creation since 2008. Encouragingly this growth consisted of both full and part-time employment and was broad based across the different sectors of the economy. In addition, the standardised unemployment rate reduced further in September, to 13.3 per cent, which is the lowest level since March 2010, but still unacceptably high. We must now continue to build on the progress made over the past year as there is clearly still lots to do. I would not like to single out any one particular job creation initiative introduced by the Government over the past two and a half years, as I feel all the various initiatives have worked in unison to bring about the labour market improvement.
For instance, the Action Plan for Jobs 2013 builds on the success of the Action Plan for Jobs 2012, by focusing on creating an environment conducive to job creation. It hopes to achieve this by:
- Building Competitive Advantage;
- Assisting Indigenous Business to Grow;
- Driving Entrepreneurship and Start-Up Companies;
- Supporting Employment at Community and Local Level;
- Developing and Deepening the Impact of FDI; and
- Sectoral Opportunities.
In addition to the Action Plan for Jobs, Pathways to Work 2013, published in July, is a 50-point action plan that focuses on labour market activation and builds on the success of Pathways to work 2012. This plan focuses on:
- More regular and ongoing engagement with the unemployed;
- Greater targeting of activation places and opportunities;
- Incentivising both the take-up of opportunities and employers to provide more jobs for people who are unemployed; and
- Reforming institutions to deliver better services to the unemployed.
In addition to these economy-wide initiatives, the Government has also introduced sector specific initiatives aimed at job creation, for example in the tourism and hospitality sector. The Gathering Ireland 2013, along with the Jobs Initiative of reduced VAT for the tourism and hospitality sectors, aims at “jump-starting” the tourism sector, which is employment rich and has knock-on effects for the wider economy. Recent figures show that visitor numbers from North America, Great Britain and mainland Europe are all growing, as trips to Ireland from January to August this year increased by 6.5 per cent compared to the same period last year. Employment in accommodation and food services activities is up 8 per cent on the year to the second quarter of 2013. So all of the initiatives are having a positive effect. The task now is to build on this momentum.
90. Deputy Bernard J. Durkan asked the Minister for Finance the extent by which the economic fundamentals and prospects have altered year on year over each of the past five years to date; and if he will make a statement on the matter. [41769/13]
View answerThe improvements in economic conditions in Ireland over the past five years have been considerable and, although we still have some way to go, the achievements to date should not be forgotten. Having contracted for three successive years from 2008 to 2010, the economy recorded a second successive year of growth in 2012. This recovery has been driven by strong export growth over the period, reflecting, in part, the considerable competitiveness gains achieved in the last number of years. Inflation in Ireland has been below or on par with that of the euro area average for every month since March 2008 and the latest Commission estimates suggests a 22 per cent improvement in unit labour cost relative to the euro area average between 2008 and 2014.
I am however cognisant of the fact that it is improvements in the domestic economy that are of greatest concern for the Irish public. Domestic activity contracted sharply following the bursting of the property bubble, with domestic demand decreasing significantly between 2008 and 2012. This has had severe ramifications for the labour market with the unemployment rate increasing by around 10 percentage points over this period.
However recent indications have been that domestic demand is stabilising and is moving on to a modest recovery path. Personal consumption was up by 0.7 per cent in the second quarter and strong retail sales in the third quarter, along with improving consumer sentiment, bode well for the second half of the year. We have also seen a return to growth in ‘core’ (excluding planes) investment, with both construction and machinery and equipment growing in the quarter. Perhaps most pertinently, employment has now increased in each of the last four quarters, with employment up 1.8 per cent in the second quarter, representing an additional 33,800 jobs over the year. In line with this, the standardised unemployment rate stood at 13.3 per cent in September, having fallen from a peak of 15.1 per cent early last year. While I would again stress that more must be done to tackle the still high level of unemployment, it is clear that we are now moving in the right direction.
