Skip to main content
Normal View

Job Losses

Dáil Éireann Debate, Thursday - 19 May 2022

Thursday, 19 May 2022

Questions (36)

Louise O'Reilly

Question:

36. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps his Department is taking to minimise redundancies resulting from the pandemic, war in the Ukraine and spiralling inflation; and if he will make a statement on the matter. [25348/22]

View answer

Written answers

I am acutely aware of the employment challenges arising from the Pandemic, war in Ukraine and global inflation as identified by the Deputy.

The Government’s Economic Recovery Plan (ERP), published on 1 June 2021, set out renewed supports, investments and policies to underpin Pandemic economic recovery and transition, to support the full resumption of economic activity, and get people back to work as quickly as possible. While the ERP was developed in the context of a post-Pandemic Recovery, its actions are directly relevant to our response to the employment threats that may arise from the War in Ukraine and global inflation.

The ERP outlined supports to help businesses deal with the direct impacts of the COVID-19 pandemic, as well as setting out the Government’s medium-term approach to creating the right environment for a jobs-led recovery and, crucially, to ensure that these jobs are more productive, innovative, resilient and in new areas of opportunity.

Since the beginning of the pandemic, Government has invested heavily to help the sectors and workers most impacted by the pandemic and to stabilise the labour market. Schemes such as the Employee Wage Subsidy Scheme (EWSS), the Covid Restrictions Support Scheme (CRSS) and the Pandemic Unemployment Payment (PUP) were introduced to support the changing needs of industry through the various stages of the public health crisis, as well as to support industry through the transition back to the full reopening of the economy. Since its introduction, the EWSS, an economy-wide support for enterprise, has made €6.7billion in payments to support over 50,000 employers and nearly three quarters of a million employees. Under the CRSS €727million was paid to 25,700 businesses impacted by COVID-19 restrictions. As of the beginning of February 2022, over €9.1billion had been paid out through the PUP.

Moreover, "Pillar 3" of the ERP outlines how the Government intends to rebuild sustainable enterprises as the economy recovers. The Plan adopts a two-pronged recovery approach to rebuilding sustainable enterprises - supporting the domestic SME sector, which is critical to broad-based jobs-led economic growth, whilst leveraging the enormous strength of the Foreign Direct Investment (FDI) sector. It aims to create an environment for a jobs-led recovery through a focus on expanding sectors and by helping business become more resilient and agile.

Projects funded under the National Recovery and Resilience Plan (NRRP) are integrated into the Economic Recovery Plan, and reinforce the Government’s approach, which is focused on supporting recovery and job creation, advancing the green transition, and accelerating and expanding digital reforms and transformation.

Progress on the wide range of deliverables and workstreams across the four pillars of the Economic Recovery Plan is being overseen by the Cabinet Committee on Economic Recovery and Investment with a high-level progress report due to be published in early June. This Report will enable Government assess what further actions may be required and I will also remain engaged with the Enterprise community in that regard.

The latest iteration of the national employment strategy – Pathways to Work 2021-2025 – will help unemployed people get back into employment through intense activation, upskilling and reskilling opportunities, and engaging with employers. It will have an overall target of over 100,000 additional caseloads per year, by expanding the caseload capacity of the Public Employment Service, reducing the risk of labour market scarring and long-term unemployment. There will be a particular focus on youth unemployment and working intensively with young people at greater risk of long-term unemployment, in recognition of the disproportionate effect of the pandemic on young people.

In addition to the work already underway, the Government is looking to prepare for the economy of the future. On 1 March 2022, Government agreed to the development of a White Paper on Enterprise Policy in 2022, led by my Department. The White Paper will set out set out an ambitious medium- to long-term direction for enterprise policy in response to challenges, opportunities and new drivers of growth catalysed by the Covid-19 pandemic, new economic and geopolitical realities, including the War in Ukraine and global inflation, and an increased urgency to accelerate the decarbonisation of industry.

In so doing, the White Paper will articulate what needs to be done differently to realise this vision and to set out clearly the risks to be faced and the policy choices and trade-offs that will arise in order to maintain high-quality jobs, to protect the elements which make Ireland’s economy globally attractive for investment and to ensure a competitive Irish economy into the future.

The invasion of Ukraine has exacerbated the inflationary pressures that Ireland and other economies were already experiencing in the wake of the supply chain disruptions brought by the pandemic. The war, and the necessary introduction of sanctions against Russia, is also disrupting supply chains and leading to large rises in international prices for energy, food and other commodities. The Government recognises the additional challenge these rising prices are bringing for households and businesses, as many are still trying to recover from the effects of COVID-19.

For example, the Government has already implemented several measures to help ease the impact on enterprises and households of energy price increases in the areas of temporary reductions in excise duties on petrol and diesel, particular supports for hauliers and supports for the agricultural sector.

I convened a meeting of my Department's Enterprise Forum earlier this year to hear first-hand how the war in Ukraine is affecting businesses in Ireland. The three main issues raised at that meeting were difficulties in supply chains in Europe and around the world, recent increases in the cost of raw materials and foodstuffs, and energy security and prices. Of course, all of these impacts could have employment implications and we remain engaged with the Enterprise community in that regard.

The European Commission launched a Temporary State Aid Crisis Framework for businesses affected by the Russian invasion of Ukraine. This opens the way for Member States to consider if specific instruments might be needed in the near term, in order to help vulnerable but viable businesses to overcome the acute impacts of the current crisis. As part of the Framework, access to low-cost loans and grants may be made available in order to meet liquidity needs and facilitate necessary investment. This should also assist in mitigating the risks to jobs arising from the war in Ukraine.

As I informed the House previously, there are already effective support schemes in place in response to Brexit and Covid-19. The Government will consider whether, and to what degree, such schemes might be pivoted to firms impacted by the Ukraine crisis in particular.

Question No. 37 answered with Question No. 6.
Top
Share