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Economic Policy

Dáil Éireann Debate, Tuesday - 7 March 2017

Tuesday, 7 March 2017

Questions (1, 2)

Micheál Martin

Question:

1. Deputy Micheál Martin asked the Taoiseach if he will report on the commitment in his Department's strategy statement on engaging with the National Economic and Social Council to developing of economic and social policy. [9998/17]

View answer

Brendan Howlin

Question:

2. Deputy Brendan Howlin asked the Taoiseach the other new engagement structures he envisages working with and their remit and membership, particularly in view of the statement in his Department's recent Strategy Statement 2016-2019 (details supplied). [10031/17]

View answer

Oral answers (5 contributions)

I propose to take Questions Nos. 1 and 2 together.

The role of the National Economic and Social Council, NESC, is to analyse and report to the Taoiseach on strategic issues for Ireland’s economic, social, environmental and sustainable development. The NESC comprises representatives of business and employers’ organisations, the ICTU, agricultural and farming organisations, the community and voluntary sector, the environmental sector, heads of Government Departments and independent experts.

The make-up of the council means that it can bring together different perspectives from civil society together with Government. This helps the NESC to analyse the challenges facing Irish society and to develop a shared understanding among its members of how to tackle these challenges. The council's work in recent years has included reports such as: Ireland’s Rental Sector: Pathways to Secure Occupancy and Affordable Supply; Housing Supply and Land: Driving Public Action for the Common Good; and Sustainable Development in Irish Aquaculture. The NESC secretariat also provides assistance to a number of Departments in the development of policy in specific priority areas.

The NESC secretariat continues its work, including on issues relevant to the programme for Government such as: housing supply, ownership and rental; climate change and social engagement on wind energy; jobless households; social dimensions of the crisis; consumer prices; labour market activation; and funding of higher education.

The Programme for Government sets out an approach to addressing long-term challenges involving the development of a broad-based political and public consensus before a settled action plan can be developed. Items identified in the programme for this type of longer-term planning are housing, broadband, climate change, pensions and long-term funding models in education and health. The NESC, with its track record of engagement and consistent and high-quality work on contentious issues, has an important role to play. The views of other structures must also be taken into account.

The council's term of office has finished and I am making the necessary arrangements to appoint a new council. I expect to make those appointments by the end of this month.

Deputy Howlin asked about other new engagement structures. These include the national economic dialogue, the Labour Employer Economic Forum, which I chaired a meeting of recently, and the Climate Change Advisory Council. The Social Inclusion Forum has been in operation for some time now. The national dialogue on climate action has been launched recently and was confirmed today at Cabinet.

Is fíor a rá le blianta beaga anuas nach bhfuil pleanáil straitéiseach le feiscint maidir le cúrsaí eacnamaíochta na tíre agus cúrsaí na hEorpa, mar shampla. Táim ag lorg páipéir báin anois faoin Eoraip. Cad é an polasaí atá againn maidir le todhchaí an Aontais Eorpaigh? Is tábhachtach an rud é nach bhfuaireamar aon pháipear seachas an ceann a bhaineann le cúrsaí sláinte. Ní raibh an Rialtas in ann é sin a chur i bhfeidhm. Is é sin an ceann a bhaineann le hárachas sa chóras sláinte. Ní raibh mórán ann.

Maidir le todhchaí eacnamaíochta na tíre seo agus na hábhair sóisialta is tábhachtaí atá romhainn, tá easpa anailíse cuimsitheach ann faoi láthair i mo thuairimse. Measaim go gcaithfidh an Taoiseach freagracht a thabhairt do NESC plean cuimsitheach a bhaineann le cúrsaí eacnamaíochta na tíre seo a chur le chéile go meán-téarmach agus go fad-téarmach do thodhchaí na tíre. Bhí páirtnéireacht sósialta ann i roinnt de na blianta sin agus bhí sé an-éifeachtach. Caithfimid é sin a admháil. Is léir anois nach bhfuil aon saghas struchtúir ann chun muintir gnó, na hoibrithe agus an pobal i gcoitinne a thabhairt le chéile. I mo thuairimse, tá sé in am dúinn machnamh a dhéanamh ar an gceist seo, ach laistigh de sin, freagracht a thabhairt do NESC plean cuimsitheach a chur le chéile do thodhchaí eacnamaíochta na tíre seo.

Níl an Teachta mí-cheart sa mhéad a dúirt sé. Dúirt mé go mbeadh comhairle nua curtha i bhfeidhm roimh dheireadh na míosa seo. Is éard atá i gceist ná go mbeidh teagmháil idir an Rialtas agus NESC chun comhairle a thabhairt dó ar an obair gur mhiste leis an Rialtas go ndéanfaidh sé. Chuir NESC tuarascálacha ar fáil faoi chúrsaí tithíochta agus easpa tithíochta, cúrsaí talmhaíochta agus comhairle seasmhach ó thaobh eacnamaíocht uisce nó aquaculture. Tá na tuarascálacha sin curtha ar fáil ag NESC.

Tá cuid den chlár Rialtais oiriúnach do anailís NESC ag éirí as atá ann. Is iad sin cúrsaí tithíochta, cúrsaí leathanbhanda, cúrsaí athrú climate agus cúrsaí pinsin. An aidhm ná go gcuirfidh NESC tuarascálacha ar fáil i leith cén sórt infheistíocht a bheidh ag teastáil agus cé as a thiocfadh sé ó thaobh chúrsaí oideachais de. Tá na príomh-nithe leagtha amach. Nuair a bheidh an comhairle nua curtha ar bun, beidh cead aige an obair ard-chaighdeánach a dhéanann sé a chur os comhair an Rialtais as sin amach.

I have been tabling questions on the National Economic and Social Council, NESC, for some time. I am no wiser about the Taoiseach's exact attitude to the council. Obviously, there was a long hiatus when he did not appoint members to the board. I assumed there would be a replacement of some description or a reconfiguration but the Taoiseach is now advising the House that by the end of this month, we will revert to what I presume is the traditional NESC. The Taoiseach might tell us whether that is the case.

Let me set out why I tabled a question on the new engagement structures. These are set out in the Taoiseach's own Department's strategy statement. Are they once-off engagement structures? I listened to them for the first time as the Taoiseach listed them out. Is any of them a permanent new structure?

It is clear that we now need a new economic focus, not only because of Brexit, which will affect us very significantly, as we all know, but also because of the Trump presidency. The new Administration in the United States is pursuing a trade policy that will directly challenge our long-standing industrial model of foreign direct investment here. The case for a clear platform for economic advice has never been stronger. The Taoiseach talked about housing, aquaculture etc. but there are fundamental issues associated with our economic and industrial model that need to be fundamentally re-examined, almost in a Whitaker-like way. Does the Taoiseach have any ideas about that new, fresh approach?

As Deputy Howlin is aware, the sectors represented are the business and employer interests, ICTU, farming and agriculture interests, the community and voluntary sector and the environmental sector. Each will nominate a minimum of three and a maximum of four to the council. I appoint 20 members specifically on the basis of nominations from organisations or interests set out in the Act. Included are up to six public servants and up to eight independent members. In the previous council, the independent members were mainly from the higher academic sector. Once the composition is decided, the independent appointments outside those set out in legislation will be made in accordance with the guidelines the Minister for Public Expenditure and Reform sets out. Whether one wants to consider a different economic model entirely or look at the challenges that the country faces, things are fragile enough internationally. We are facing elections in the Netherlands and France and later in Germany. There is a possibility of elections in Italy. Clearly the decisions being made by the new Administration in the United States are also having a global impact. For the Oireachtas and all its Members, the question of what the outcome of Brexit will be is a case in point.

When one considers the longer-term analysis the Government is now undertaking by way of public consultation on what we should do for 2020, 2030 and 2040, one must bear in mind that we will have a million extra people, requiring an extra 500,000 houses to be built and the creation of 500,000 extra jobs and infrastructure. We will have to provide these people with transport and a location in which to live. They will require broadband, which is the DNA of regional and rural Ireland. The Deputy, when Minister for Public Expenditure and Reform, grappled with all these questions. The questions cover infrastructure, primary care centres, hospital extensions, schools and road structures. In other words, if we are to make the country attractive for investment and for the location of businesses, for quality of life and for people to be able to live and have careers and opportunities, we will have to make the facilities available anyway, irrespective of what kind of model one chooses. I hope there will be a council up and running by the end of March. Academics or others will be appointed after that. Let them engage with the Government on the spring economic statement and the Government's remit for the preparation of the budgets for 2018 and beyond, and feed into the broader consultation taking place for 2020, 2030 and beyond. I am quite sure the NESC will identify some really important areas in respect of which it will be anxious to make recommendations. We look forward to that in due course.

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