asked the Taoiseach if he is aware that the number of people at work according to the Central Bank Report 1970-71 decreased from 1,071,000 in 1964 to 1,066,000 in 1970; and if he will make a statement on the matter.
6.
Ceisteanna—Questions. Oral Answers. - Employment Statistics.
5.
asked the Taoiseach if he will relate the drop in the total number of people at work of 5,000 from 1964 to 1970 (Central Bank Report 1970-71) to the objectives of increased employment as stated in various White Papers in recent years; and if he will make a statement on the matter.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 5 and 6 together.
The decrease in the number of people at work in the period 1964 to 1970 must be seen in the light of the sectoral employment statistics for that period and of the circumstances which led to a sharp reduction in the numbers at work in the year ended April, 1970.
In the period 1964 to 1970 there was a substantial increase of 58,000 in the numbers at work in the non-agricultural sectors of the economy. This increase was, however, more than offset by a decrease of 63,000 in the numbers at work in the agricultural sector.
In the year ended April, 1970, itself the total numbers at work decreased by 7,000 due mainly to a reduction of 5,000 in employment in construction attributable to the indirect effects of the cement dispute in progress at that time —the balance being attributable to an unexpectedly large fall in the numbers engaged in the agricultural sector and the level of redundancies in the industrial sector.
It has been emphasised before that the pursuit of increased employment is not solely a matter for the Government; its achievement requires an active commitment from the sections of the community involved in its attainment. The Government, for its part, has in fact intensified the measures which it must contribute through public capital expenditure and other related services and expenditures.
It is accepted that industry must be regarded as the main source of new job creation in this country. The Industrial Development Authority have further increased their efforts to assist the expansion and modernisation of native industry and to attract new industry from abroad. In the year ended 30th September, 1971, 69 grant-assisted projects with an employment potential of 5,500 commenced production. At 30th September, 1971, 31 grant-assisted projects, with an employment potential of 6,700, were under construction.
It has been emphasised, however, that the maintenance of a high level of employment in keen competitive conditions is not solely a question of Government measures. The potency of Government action is necessarily affected by the degree of acceptance of an incomes policy consistent with the aim of increased employment.
In the period 1964 to 1970 industrial unit wage costs in this country rose by about 35 per cent—a figure much higher than those registered, for example, in West Germany, France and Italy, some of the countries with which we may soon be forming an enlarged European Economic Community. In such a climate of greater competitiveness and opportunity, any further deterioration in our industrial unit wage costs must damage our ability to increase exports and compete against imports, and consequently must damage our prospects of increasing employment.
The crucial factor in this area will be the future development of incomes, particularly wages and salaries. To avoid the loss of existing jobs and at the same time provide the opportunity for increased employment we must maintain our position in the domestic market and expand exports. This can only be achieved if increases in earnings are consistent with the degree of international competitiveness required. It is here—now that the review of the national wage agreement is approaching—that management and the trade union movement will have an opportunity to show that their concern, with both the expansion of job opportunities and the sectional interests of those in secure employment, is expressed in this external perspective.
Despite what the Taoiseach says and what has been said by many Ministers in the Fianna Fáil Government through the last decade the fact is that there are 5,000 fewer people in employment in Ireland and is the Taoiseach aware that this is a deplorable record for any Government in the sixties? Is he proud to stand over these figures in the coming general election?
By the time the next general election comes I am sure the figures will be much better. I am never proud to stand over declining figures in employment but the fact is that our industrial employment is expanding considerably and at an increasing rate now.
The Taoiseach mentioned redundancy in his reply and I would ask him if at present in the midlands there has been large scale redundancy in such towns as Clara, Tullamore, Birr, Athlone and others? Is the Taoiseach aware of this situation in the midlands and does he propose making the midlands a designated area for the purposes of special grants?
I am aware of the decline in employment in some of the areas referred to by the Deputy. That decline has been contributed to mainly by the cessation of jute operations in Clara and the worldwide reduction in employment in textile manufacturing generally. In some cases where employment has been reduced, steps have already been taken to provide alternative employment. It will be the intention of the Government, in conjunction with the Industrial Development Authority, to provide alternative employment to the fullest extent possible, and to increase employment where that can be done.
I would be obliged if the Taoiseach would tell me whether a Cabinet decision or a ministerial decision is taken in the making of a designated area? The Taoiseach is aware from his reply that there has been wide-scale redundancy throughout the midlands. In view of this, will the Taoiseach consider making part of Laois-Offaly a designated area?
When it comes to designating areas as less developed than others and therefore entitled to a higher range of grants, the Government usually take everything into consideration before a decision is made.