Dáil Éireann díospóireacht -
Tuesday, 29 Apr 1975

Vol. 280 No. 4

Private Members' Business. - Unemployment Situation : Motion.

Mr. G. Fitzgerald

I move :

That Dáil Éireann notes with deep concern the figure of 103,407 registered as unemployed on the 11th April, 1975, and calls on the Government to take immediate steps to rectify this unprecedented situation.

The figure mentioned in the motion must be a cause of great concern for all Irish people. Not since the days of the last Coalition have we seen our working people facing the plight where so many of them are unemployed and so many others are fearful lest the dreaded words "redundancy" or "short time employment" face them at a moment's notice. There is a great lack of confidence appearing on the factory floor, in industry and in offices generally. We have the danger of further workers joining the huge queues to the congested labour exchanges throughout the country and we also have problems created for many homes.

It is understandable that every able-bodied man and woman would expect to find employment in his or her country. It is incumbent on the Government to ensure that adequate opportunities are provided for our boys and girls from school days onwards, that they are given the opportunity when they marry and buy their homes of having a decent standard of living for themselves and their families.

The present lack of confidence in the Government is creating serious problems for workers. They find their standard of living is lower than what they have been accustomed to under sound Fianna Fáil Government. It is also creating social problems for the man who is anxious to work but is unable to get it. He would be much happier out at work. At the moment many young men have to spend their days at home because there are no employment opportunities open to them. I am sure all Deputies realise the situation because they will have many people calling for them asking for employment for themselves, their wives, sons and daughters.

I know the other side of the House will say, as was said when Deputy Dowling put down a similar motion some months ago, that we are only creating panic. The facts of the situation are now obvious to everybody. The situation in November was very serious but it is much worse now. The Government appear to have no concern for those people who are out of work. The Government are not giving priority to the plight of the people trying to find employment. Other issues are constantly highlighted. Very red herrings are produced to try to divert the minds of the people away from the basic problem of unemployment, which is a major economic one.

Would the Minister for Labour let us know the positive steps which he and his colleagues intend taking to rectify the unemployment situation and restore the confidence that is slipping so quickly from us? It appears that the Government are standing by waiting for miracles to happen but those things do not happen. This situation will not go away from us. It is not good enough for the Minister to stand up and say that outside problems have led to the unemployment situation. This has been the tune for too long and it cannot continue. We demand action from the Government. The people demand leadership from the Government.

I believe in the best aspects of socialism. I do not believe in it because it follows a particular principle or because it makes good reading in a newspaper or sounds well on television. I believe in the socialism that is best suited to meet the needs of the ordinary Irish people. I believe in equal opportunity for all our people, the right of every boy and girl to have that equal opportunity. Some of them can grasp it better than others. If some of them by their hard work, enterprise and initiative, or possibly luck, make a better success than others do, then they, who in turn can help those who have not done quite so well, deserve to be assisted and encouraged by the State. Instead of the tactics being employed that kill initiative and effort the Government should be telling them that they are providing a social need in the community and providing employment and they want to see that continuing.

The Government policies are harmful. The Minister for Labour, on his now famous television appearance last week, said that the Government would not hesitate. I was in a particular establishment when I heard him making that statement and the comment from a person there was: "What else have the Government been doing since they were elected but hesitating?" They have been most hesitant in relation to employment. It is a crying shame for Labour Party Ministers in the Government to have turned their backs on the working people. I know they have no experience of working with those people because many of them have come through transcontinental universities to this House. Many of them have little knowledge of the problems at factory floor level, the problems in our fields, in our building sites and in industry in general. This is a draw-back when a Government faces a serious situation but it is the test of a Minister and a Government. It is not enough for them to say that the Arabs are to blame or that a problem has arisen because of some other world crisis. They should face up to the situation no matter what it is and say: "This is our responsibility and we will do our best to provide opportunities for our people."

A document produced by Mr. Brendan Walsh of the Economic and Social Research Institute on the structure of unemployment here from 1954 to 1972 is interesting. Mr. Walsh made some interesting points in that document but I wonder what thought was given by the Minister to his comments. It was thought that unemployment was a structural problem but Mr. Walsh explained in great detail why that is no longer true. He has also shown that our unemployment situation is responsive to general economic measures. I do not have to spell out what is meant by that. Unemployment is responsive to general economic measures taken by an Administration capable of taking such measures. Perhaps the problem is that the present Administration have not shown any capability or ability to inject responsive measures into our economy.

Undoubtedly these problems are regional. At present they are occupational but in general they respond to general economic measures. It appears that the Government are relying on the fact that the Fianna Fáil introduced measures of pay-related benefit and redundancy payment are there as a prop or as a shoulder for the people who are unemployed. These measures were never intended as such. They were meant to cushion people in the changing face of industry. They were meant to cushion them over a period but were never meant to be the basis for which 103,000 people would have to depend on for their weekly money.

This is a Government which have come from nowhere, have arrived nowhere and are going nowhere but the country is suffering for that. There is a lack of leadership that is vitally needed. A White Paper was issued on the economy last year but it did not lay down any positive policies on how to tackle unemployment. Why did the Minister for Labour not make his contribution and show the positive ways the unemployment situation can be tackled? A meeting of the national partners took place last November and last weekend the Minister for Finance announced that another meeting of them would take place——

Mr. Wilson

A fleadhcheoil.

Mr. G. Fitzgerald

——on Friday. What has happened since the November meeting? What progress has been made and what hopes can the unemployed people expect from next Friday's meeting? Let us hope for a change to something positive. The Government are without policy and potential. It is a hotch-potch of opposing philosophies that range from the pseudo-socialism of the Minister for Labour, the befuddled liberalism of the Minister for Posts and Telegraphs, the careful nice approach of the Minister for Agriculture and Fisheries to the well-proven conservatism of the Taoiseach. The Taoiseach presides over the efforts of the Government and I suppose tries to reconcile the warring interests. How he held the Government together I am not sure but it appears he is using the old adage : "See all, hear all, do nothing". The Minister for Finance personifies the entire gallery of this group of masquerading administrators. On Friday in Killarney he announced the meeting of the national partners and I hope something comes from it. I would favour this type of meeting if I thought the Government were sincere in their approach to doing something positive for the ailing industries, those unemployed and those fearing the loss of their jobs.

I should like to ask the Minister how effective the Buy Irish Campaign has been. Before it was announced by the Ministers I spoke in this House of the necessity for the campaign but I have not seen it continued as intensively as I would have liked. Why? Is there a lack of sincerity in this effort? Is there a lack of interest by the Ministers? It is depressing and disappointing when one sees in shops the wide range of textile and leather goods from cheap-cost countries on display while our workers join the dole queues.

What happened to the inter-departmental manpower committee promised by the Minister for Labour last November? Has that committee been set up or have any reports been issued? This information should be made available to the House. On November 26th last, the Minister for Labour stated that the information on job creation continues to be hopeful. That was at a time when our unemployed was less than it is now. There are particular areas of concern, for example, the building industry. No section of Irish industry responds so quickly to the employment situation than the building and construction industry if it was properly handled. It is tragic to realise that in February almost 6,000 fewer people were employed in the building industry compared with the same month in 1974, despite the statements of the Minister for Local Government. The unemployed figure last year was 13,861 on 15th February. The figure this year on the same date was 19,702—that in an industry that responds faster than any other to the creation of employment in an area. Worse than that, and I warn the Minister for Labour now, the outlook for that industry in the private housebuilding and heavy construction sectors is not good. Were the Minister for Industry and Commerce here I am sure he would tell me I was preaching gloom and despondency——

Mr. Wilson

He is not here.

Minister for Labour

He is announcing good news to the Irish people.

Mr. G. Fitzgerald

It took him an awful long time to make that announcement. I shall come to that in a moment.

Mr. Wilson

We found the goodies for him anyway.

Mr. O'Brien

That was made last week.

Mr. G. Fitzgerald

Deputy O'Brien will be afforded his opportunity. I want to come now to the clothing and textile industries generally. Last year in this House a number of us put down a motion to the Minister for Industry and Commerce asking him to realise the plight of workers in those industries and to do something about the situation and to use the devices available to him under our Treaty of Accession to the EEC. As a result of our placing that motion before the House, eight months too late, the Minister for Industry and Commerce went to Brussels with the problem. He was sent home and told to put his house in order and if there was a problem to do something about it.

I do not know yet what steps the Minister has taken. Millions of pounds worth of Korean, Taiwan, Hong Kong and Portuguese products still flood the shops and roads of this country while our workers are made redundant. We had an example of it last week in my constituency when there was a receiver appointed over a firm which had been more than 200 years in operation. I refer to Martin Mahoney's of Blarney. It is interesting to note that this year that firm received no part of the Government order following the pattern of former years and that at a time when that ailing industry was known to everybody to be in need of that type of support and injection. That is happening in many other areas throughout the country also. As I said earlier, it is the test of any Government to face up to the situation of the day. Perhaps I might be permitted to return to the situation in Blarney for a moment and to say that on the 26th of November last in this House I appealed, through the Minister for Posts and Telegraphs present at the time, to the Minister for Labour or the Minister for Industry and Commerce to go to Blarney before Christmas to alleviate the situation.

I want to know also from the Minister for Labour how he or the Government propose to use the £8 million granted recently from the social fund of the EEC for job creation. When I say job creation I do not want to be given airy, fairy figures, doubtful, to say the least, that cannot be substantiated or investigated. I want something positive, something onto which our people can latch with hope for their own and their children's futures.

I might refer also to the mismanagement of the regional fund. It could have benefited the west, north west and south west from an industrial point of view had it been used as we believe it should have been. The Minister made reference earlier to the announcement today by the Minister for Industry and Commerce. We welcome that announcement. It is not before its time but there has been the dragging of feet, the promise of that announcement which, in the opinion of many people, has cost this country dearly. It appears to me that any decision now being taken by the Government is too late. It is being taken at a time when there may have been many millions of pounds lost to the economy. Such action could have been taken much earlier when there might have been the usual follow-up developments. Forward planning is very necessary in these types of industries but such planning appears to be still-born with the present Administration. Suppliers are asking daily people who have the expertise and for whom all that is necessary is guidance, information and advise to plan and programme such development. It is tragic the Government are taking so long to lead in this situation. The spin-off from this type of industry, from an employment point of view, is something we would hope would materialise in the very near future but it is incumbent on the Government of the day to take the necessary steps in time. The same applies in the mining area of Navan where approximately 5,000 jobs have been held back, because of delayed tactics.

Mr. Wilson

They are not working yet. One can hear the silence passing through the constituency.

Mr. Dowling

Did the Deputy see the marks of the Mercedes there?

Mr. M. O'Leary

Caterpillar tracks.

Mr. G. Fitzgerald

It is disappointing to note that there are more Mercedes tracks than there are caterpillar tracks in that area—disappointing for the workers who might have expected to obtain employment in that area.

There are a few points I want to make on figures with regard to unemployment. The Minister for Industry and Commerce in this House on 6th November, 1974, col. 1144 of the Official Report, speaking on the employment policy motion in regard to the unemployment figure said:

To inflate it for party political purposes is damaging. One can make comparisons year on year. February is not comparable with September because there are fluctuations through the year.

That is a fair enough point.

Mr. Wilson

And August is a thin month.

Mr. G. Fitzgerald

The Minister said on that occasion that the unemployment figure in February, 1973 was 75,551. For the information of the Minister for Industry and Commerce the figure this year was 103,500, almost 30,000 higher. Yet no sensible moves have been taken by him. I want to go back and say, as did the Minister for Industry and Commerce, one cannot compare April with February or, indeed, with November. One would expect that following the pattern of many years the April unemployment figure would be much lower than any of the other months I have mentioned. Unfortunately, the figure mentioned in the motion was with us on the 11th April and, on the 18th April, almost approaching 1st May, we still have more than 102,500 people unemployed. That is an indictment of the Minister for Labour, the Minister for Industry and Commerce and of their colleagues in government. I ask them, for goodness sake in the name of the people of Ireland to realise that publicity gimmicks, television appearances, bluff and propaganda are no longer of any use. Our people demand action, action which has not been forthcoming.

In the European Community news of April 23, 1975 we are told about the social fund move on unemployment. There it is mentioned that such help is aimed at vulnerable Irish industries such as motor assembly, textiles and building. Of course, moves such as those must be welcomed at any time but why do we have to wait so long? That is what our people are asking. Why did not our Minister for Labour, 14 months ago, when serious problems were first noticed in the textile and leather industry, move then or was he enjoying his promotion to Ministerial office too much to be worried about the needs of the ordinary people he once claimed to represent? The many workers employed in those industries will not forget easily the way they have been let down. The Minister for Industry and Commerce, again in his speech in November last on the unemployment situation, placed great faith in what the Confederation of Irish Industry had to say about the situation at the time. He said it was "hopeful". I wonder what he would call it now?

In an article dated 25th February, 1975, there is a reference to a committee within the Confederation of Irish Industry dealing with policy regarding small firms and the cash crisis and the struggle for survival of such firms is noted. These small firms which comprise companies with less than 100 employees form about 85 per cent of our manufacturing business. They have a serious liquidity problem and there is a danger that there will be more unemployment. Their backs are to the wall but the Government have done nothing positive to help them. On the contrary, the Government have introduced taxation that will be harmful to them. The wealth tax does not concern me personally——

An Ceann Comhairle

It is not in order to debate the wealth tax at this point.

Mr. G. Fitzgerald

Perhaps the Chair would allow me to develop the point. The wealth tax does not concern me personally but I am afraid it will concern workers more seriously than any other taxation imposed by any Government. I am not making a case for wealthy people but a tax based on the assets of a company, irrespective of whether their is profitability within that company, can only have the effect of more unemployment and an even greater lack of confidence. I would ask the Minister to take a long, hard look at the situation. The wealth tax may appease some doctrinaire socialists but I am concerned about the working people and their children and about creating job opportunities for them.

All of us must be concerned about this. Even at this late stage, I would ask the Minister to show he is not being encouraged by the man whom we know is regarded as his godfather, the Minister for Posts and Telegraphs. When the Minister for Posts and Telegraphs asks him to do or say something, he should tell him he has his own problems, that he has responsibility for the unemployed. The Minister should concentrate on the areas that are his concern, on what should be the prior concern of both Government and Opposition, namely the unemployment situation. The Minister should realise the economy can be set on its feet. What we need is confidence in ourselves to improve the livelihoods of the people. This will not be done by introducing ill-advised legislation.

The document issued by the Confederation of Irish Industry has stated our economy will be responsive to an injection of capital for development purposes. We should encourage this, even from other places, if it gives us badly needed employment. The damage caused by the Government will be difficult to undo and future generations will remember some of the names of the people involved and recall what a disaster they were.

Last week the Minister for Finance spoke at the IMA Conference in Killarney. I wonder if there is any significance in the fact that he spoke there. As usual, he was not original. He repeated something similar to what was said by the British Chancellor of the Exchequer a few days earlier. He told the Irish people they were living beyond their means. To whom was he speaking? Surely he was not speaking to the 103,000 unemployed or to the unfortunate farmers who are still struggling? Was he referring to the agricultural labourers, to shop assistants or small shopkeepers? We must be concerned about these people and the Minister for Finance bears a grave responsibility for them. The words used by Deputy Colley, Deputy Haughey and others in the course of two budgets are coming home to roost—unfortunately not on the Government but on the people.

We have an unemployment rate that, on population figures, is twice as high as the British figure. What solution does the debonair Minister for Labour wish to offer? Has he any plans or programmes to meet the situation? He is always promising pie-in-the-sky and telling people to get ready for the upturn in the economy which is just around the corner. I would ask him, which corner and when will we arrive at it?

I do not want Members opposite to tell us we are just being critical. I want to be positive in my criticism. Confidence must be restored in industry and on the factory floor. Our workers are probably the best group of people one could find in any country. They will respond but they must have confidence in the Government and in the ability of their fellow-workers. If that leadership is given it will be a step forward. Even at this late stage the Government should look for positive ways to help, they should inject capital into the economy so that it may grow and expand. They must help the industries that will give the greatest response from the point of view of employment.

The situation is so serious that it must be highlighted in this House. We are not here to scare anybody; we are here to push the Government to do their duty, a duty they have failed to do to date. Even at this stage I would urge them to get the wheels of industry moving, to get the people back in their employment and restore their spirit, to remove some of the social problems they have created. Even if this motion serves no other purpose, it will be of value if it prompts the Government to take the necessary action. I look forward to a positive reply from the Minister, not the usual response we have come to expect across the floor of this House, material that is designed to be circulated through the media and reported on television, gaining undeserved plaudits for the speaker. I am asking for something positive this time for the Irish worker.

Minister for Labour (Mr. M. O'Leary)

It is a pity that in a situation of this kind, facing as we do the effects of an international recession which is felt in most other countries——

Mr. G. Fitzgerald

The same old story.

Mr. M. O'Leary

——an Opposition spokesman cannot understand that this is the nature of the problem. If he did so understand, one could have more time for his observations on the inadequacies of present Government policies. If his case depends on almost denying the nature and the complexity of the problem, it is difficult to see how he can proceed to suggest remedies to meet the situation. I do not think his case would have suffered by admitting the extent of the international recession. He could still legitimately criticise the Government as any Government would be criticised in a home parliament, in the economic situation we currently face. I accept that.

Nobody in our administration in this debate will deny that we face a serious and difficult situation. The Minister for Industry and Commerce, the Minister with the employment-creating agencies under his Department will speak and the Minister for Finance, whose policies and budgets have such an effect on the stimulation of demand in the economy, will speak. Neither of those Ministers will deny that we face a serious situation. They will, of course, have to say, in honesty, as Opposition spokesmen should say, that we and those with whom we trade face the most severe depression that the western world has faced since the second world war and that all our trading partners have been affected by this slow down in world trade.

Various opinions can be put forward as to why this slow down occurred but the increase in commodity prices has probably been the largest single factor. Unemployment has risen in all of the countries in that period and take that barometer of the international economic climate, the United States, we see that the rate there is now more than 8 per cent, which is an increase of almost 100 per cent over the level of 1973. There is no point in pretending that those events have not occurred, that other countries are not adversely affected. We should not pretend that all is within our control in dealing with a situation so serious for all the major economies.

Deputy Fitzgerald mentioned the lack of originality in the speech of the Minister for Finance in Killarney. There is not a great deal of original policy making that one can bring in to meet the situation. The economic situation does not differ greatly from country to country. In all countries we are seeking to stimulate economic demand without affecting too adversely our balance of payments position. In all countries we are seeking to direct investment into areas which need least in terms of imports. What the British Chancellor said last week could apply, perhaps, with equal validity to other economies in Europe but it has the more interest for ourselves when we realise that almost 55 per cent of our exports still go to Britain and whatever happens in the British economy has profound implications for the health of our economy. Despite the fact that we will continue to diversify our export outlets, despite the advantage that our membership of the Community gives us in relieving that situation of over-dependence on the British economy, there is no doubt that a very depressing factor on the performance of our whole economy this year resides in the difficult and intractable nature of the problems faced by the British economy which the Chancellor mentioned.

Unemployment in the UK has now reached nearly one million. One could probably say that the UK have chosen a later period than the US to deal with their problems, that they have at a later date gone into the area of controlling inflation. The US did this last year and are now coming out of depression. The British appear to be a year later in acting. This will have a depressing effect on our export performance in that market. Whatever we do at home, if the demand in the British market is held down by Government action there, obviously since that market absorbs so much of our products it must have a depressing effect on our performance. Germany has reached two million. It would make no sense to suggest that our open economy, an economy far more open to outside influences than any of the stronger economies of Europe would not be affected. Our total international trade is equivalent to 79 per cent of our GNP and it is inevitable that our economic well-being is intimately bound up with the economic well-being of our trading partners. All our recent history suggests that we are not able to separate ourselves from the effects of international recession when it hits abroad.

Mr. G. Fitzgerald

Are we trying?

Mr. M. O'Leary

In previous periods of high unemployment in the world we have not escaped and our unemployment figures have proved this. In addition to this problem of our industry and its exports, in the past year we have witnessed what could be described as almost the collapse of agricultural prices, largely due to the lack of demand in the European market-place though this will now be corrected. Here we must pay a well-earned compliment to the Minister for Agriculture and Fisheries whose work in Europe in this area has earned the thanks of Irish farmers.

Mr. G. Fitzgerald

That shows the Minister's lack of knowledge of that side of things.

Mr. M. O'Leary

It is expected that agricultural incomes will increase by 35 per cent during 1975. This must mean a stimulation in demand in other parts of the economy. Our exports this year are expected to be up by 24 per cent. There is then a very hopeful future even this year for agriculture which is bound to have beneficial repercussions on our home industry in the sense that it will create increased demand for our products.

Mr. Haughey

It will not give much employment though.

Mr. M. O'Leary

No. The Deputy has mentioned a critical point. This year we will see hopefully an improvement in the employment situation. The money put into the building industry by the Minister for Local Government should help in the summer months to effect an improvement in employment there. Looking at the performance of the British economy, I would say we will not see a major improvement in the employment position for some months yet.

Mr. Wilson

Are you heading for the country?

Mr. M. O'Leary

We certainly will see the improvement in agriculture bringing some improvement into home conditions in general.

In this situation it would be easy to say that it is an international disease and that we can do nothing. That is not the Government's response to the situation. There is much disagreement among those who regard themselves as experts in this area but there is general agreement that the conditions of international economic recovery are now in prospect.

Mr. Wilson

Old Moore's Almanac.

Mr. M. O'Leary

It is understood that the American economy is on the way up. The German economy, too, is beginning to improve and that is the general situation around the world at present. The exception is the British economy which remains in a very serious condition and one that has serious implications for us.

There are measures that can be taken and which are being taken by this Government and I assure Deputy Fitzgerald that there is no lack of sincerity on our part. Our actions in this area speak louder than words. In the 1975 estimate, the Government in their efforts to stimulate home demand without affecting adversely our balance of payments situation, allowed for £100 million for house construction. That represented an increase of about 25 per cent on the April-December, 1974, estimate, calculated on an annual basis. I can think of nothing that is more beneficial in terms of providing employment without affecting adversely the balance of payments situation than investment in the housing construction industry. That industry has had that vote of confidence from the Government and will continue to have.

Mr. G. Fitzgerald

Why are the unemployment figures so high?

Mr. M. O'Leary

More than half of the extra amount voted for investment in this area has been allowed for local authority dwellings, the output of which is expected to be in the region of 7,500 in 1975. The capital provision for grants for the erection and reconstruction of houses and for loans from local authorities for house purchase is estimated at £47.5 million. There is an increase also in the capital provision for sanitary and environmental services while the capital provision for education represents a 30 per cent increase on the 1974 estimate, calculated on an annual basis.

There has been a further increase of 20 per cent in capital expenditure under the Agriculture Vote compared with 1974. This money is mainly to encourage investment in land, farm buildings and equipment and for expenditure on arterial drainage and so on. There has been an increase of about 50 per cent in the 1975 estimate provision for industrial capital expenditure compared with 1974 and, again, calculated on an annual basis. The capital expenditure that the Government have made available is incurred in the main by the IDA, SFADCo and Gaeltarra Éireann. We have made provision also for about £28 million in loan finance for industry under the capital headings. These are examples of the total capital programme of £457 million which was allowed in the 1975 budget and represents an increase of nearly 20 per cent in the capital investment area compared with the 1974-1975 estimate of £384 million.

This is how the Government have responded to a situation in which the home market is depressed as a result of conditions abroad where, in the main markets of one's trading partners, one finds depression. Obviously, at home the Government must seek, by their investment capital project, to ensure that during the period of slack, the home economy is kept at work. We have attempted to do this because we cannot escape fully the effects of these events abroad but where there is a cessation of a market outlet for a product it is obvious that no amount of stimulation at home can keep the people working in the industry concerned.

The response of Córas Tráchtála to this problem has been to initiate new export outlets. They have commenced a special action programme to assist exporters experiencing short term difficulties in their main markets. Vigorous marketing drives are under way in 17 countries with a special emphasis on those economies which have the capacity to import Irish goods, notably oil-producing countries, including Nigeria and the Middle East. The initial response is encouraging. The number of different marketing activities in which Córas Tráchtála are engaged is about three times the level of past activities. This is a healthy response to our present situation. We must seek out new markets but we are doing this at a time when other countries in similar situations to ourselves are doing likewise. What we fear most is a reaction in other countries which would come under the heading of import control. Such a situation would be very serious for us and that is why we, in regard to our international obligations of an economic nature, have been at pains to avoid that weapon so far. It is obvious that if our major trading partners adopt such a course, the consequences here would be very serious. If, for example, that course were adopted by our British partners in the EEC, we would have many more close-downs. All of the countries experiencing the results of the present recession have a duty to one another to ensure that import controls are not used against competitors so as to save the home employment situation. Such a common course of action would lead to disaster.

Mr. G. Fitzgerald

Can we do nothing about imports from Korea and Taiwan?

Mr. M. O'Leary

I am sure the Minister for Industry and Commerce, when contributing to this debate, will answer in greater detail the Deputy's charges in that regard but my information is that the action he suggests was not open to us under our Treaty obligation in the Community. In priming the capital programme, ensuring that there is investment where it counts most and ensuring that we do not simply waste the cash available for current purposes we cushion the worst effects for the unemployed. We have done that to ensure there is not undue suffering and we are working with our partners in the Community to ensure the possibility of an early economic revival in Europe. We are using any influence we have to ensure that there is no import control on the part of any of our partners. Such a situation would not help in bringing about the conditions for international recovery.

There will be a meeting shortly at European level between Finance and Employment Ministers when we shall be considering what further steps may be taken to ensure that in the financial policies being followed by the various member countries there is co-ordination to permit of our working together.

Therefore, in a difficult situation, the Government can say that their response has been the correct one. It is a response which does not see any advantage in pretending that there are not difficulties but which emphasises there is an element of international recession in the present situation beyond our control and emphasises also that there are steps which we can take at home, steps that we have been taking. For example, the rate of job creation reported by the IDA is projected at 23,000 this year. That target shows that the employment-creating agencies are at work. Already I have instanced the new export drive of Coras Tráchtála.

Mr. G. Fitzgerald

I hope the targets will be proved realistic.

Mr. M. O'Leary

The IDA are not accustomed to making fantastic predictions that are not attainable. Their record speaks for that.

Mr. G. Fitzgerald

Does the target set not represent a decrease on last year's figure?

Mr. M. O'Leary

This evening there was the announcement by the Minister for Industry and Commerce of our plans for the exploitation of the national resources that are under the seabed. This is a further illustration of the determination of the Government to see this crisis through to new employment expansion. That is our determination.

This Government have no intention of running from these present difficulties. The people would not thank us if we did not do our duty. It is our national duty to work our way out of the present recession with the other member countries of the European Community. We hope very shortly to see a change in the international situation. We will see more jobs being created. There is the IDA projection. There are new markets being sought by CTT. There is the development of our mining industry to which the Minister for Industry and Commerce has given the all clear today. There will be new jobs and new skills coming out of these developments.

With regard to my own responsibility for the training of our manpower, I believe that during this period of slack in our economy we have the time to prepare for the period of upswing. That is what I have been doing in my own area. I have been getting the co-operation of my colleagues in Government in spending more money on training. More money has been spent in that area than ever before. In this period of difficulty more Irish men and women will be trained to new skills than ever before. More money will be spent from the social fund than ever before for the training of Irish men and women.

All of this is designed to ensure that, when the markets recover, here at home we will be ready to take off with that recovery. We should not fall back into an attitude of despair. There is no reason for despair. This is a period of preparation and the Government are engaged in that. We are meeting our major partners next Friday to hear their views on methods of treating our economic sickness. We will listen to them very carefully. Based on those conversations, we will continue our own work on the preparation of a strategy for economic recovery.

The outline I have given shows that the Government's response so far has been positive, concrete and realistic. We have invested in the areas which can give us the opportunity of making a recovery at home. We believe that such a recovery will become more and more evident at the end of this year and the start of next year. That is our approach to the situation before us. We have not heard any case from the Opposition. We are keen to hear what the Opposition's policies are.

There is no substitute for a policy. No rhetorical charges of lack of sincerity, no vulgar abuse, no bringing in of the names of this Minister or that is a substitute for a policy. Maybe during this debate we will hear something about policy from the Opposition. Maybe we will hear an alternative to the things we have been doing. We would like to hear it spelled out and, so far, it has not been spelled out. If the Opposition have an ambition to return some day to these benches, we need to hear that policy spelled out clearly. If there are alternatives to what we have been doing, let us hear them. If there are not, I would suggest that nobody will be convinced by denunciations or charges of lack of sincerity.

Every member of this Government is anxious to ride out these difficulties, and anxious to see our employment situation improving. It will improve with the upswing which must occur in the countries of our trading partners. With the contribution from the European Social Fund, and with the extra money we are giving in our training programme, we will have the largest number of men and women undergoing retraining this year than ever before. Even in our present difficulties some industries are showing signs of recovery. This bodes well for the future. There are very fast-growing sectors even in this period of difficulty in the areas of pharmaceuticals and electronics. Quite recently I opened a seminar on electronics. That is a very fast-growing industry. These are the industries into which we must put massive investment so that, when the markets abroad improve, they will be able to expand at a very rapid pace indeed.

The Deputy wondered whether the Government's policy was consistent with the study he mentioned—the ERSI on employment—which suggested that employment is responsive to demand for the goods we produce. We have been following along the lines of that study. We accept that the demand which is lacking at present is mainly at international level. We accept that until that demand is there once more, people will not be secure in their jobs.

In relation to the Buy Irish campaign the Minister for Industry and Commerce will take part in this debate and answer for the work of this committee. From my discussions with him I would suggest that the committee has worked well. I accept that there is a real difficulty. It was understood during the debate on free trade that the home market could be threatened in conditions of free trade. Nobody could look with satisfaction at the number of products manufactured abroad which are being bought here. However many strictures we may address to the consumer that he should not do so, increasingly he is going for products which he believes are of better design and better value. We are doing everything possible to ensure that our products are improved in design and that they are good value. The Government will do whatever can be done to ensure that the home market is retained for Irish products. We will continue our propaganda campaign to this end. The only safe way of ensuring the retention of the home market is by giving value for money.

Other Ministers will speak in this debate and deal with their responsibilities. I am giving a general description of the Government's response to the situation. It is a serious situation. We do not deny that. We will see it through. The Government have no intention of running from it. I want to make that quite clear and other Ministers will make it clear also. I would prefer to be in Government at a time of difficulty than in a period of ease. When Fianna Fáil were here there were no problems apart from the problems of their own making—political problems connected with Northern Ireland, and difficulties within their own party on their approach to peace or war in this island. The difficulties we face are of an economic nature. We will not shirk our responsibilities. We will not run from the problems facing us. We will see them out. All members of this Cabinet would prefer to be here at this time of difficulty to serve the Irish people. We intend to remain at our posts and ride out the storm. We will bring the country back to full economic recovery and then we will ask the people for the verdict.

Mr. Dowling

I support Deputy Fitzgerald's motion. That was the most pathetic speech from the Minister for Labour I ever heard. He did not give one ray of hope to the Irish people and, in particular, the people who are out of work. I want to read a section of the famous 14-point plan —the section dealing with employment—to remind the Government of the pledge they gave to the people prior to the last general election. They talked about stopping the price rise and said:

The tragic events in the North have clouded the fact that the economy is in serious trouble because of the indecisiveness of a Government distracted by its own internal difficulties. The immediate economic aims of the new Government will be to stabilise prices, halt redundancies, reduce unemployment under a programme of planned economic development. It is essential to control prices if these important economic aims are to be realised. The Government will, therefore, take immediate steps to introduce strict price control. As an earnest of its good faith in regard to the control of prices the Government will remove VAT from foodstuffs.

The Government will regard the control of price inflation as indispensable to the continuance of the National Wage Agreement. The two parties are convinced that voluntary wage agreements reached on a national level are the best basis for economic development, stability and growth in jobs.

It goes on to say:

The two parties recognise that these policy priorities constitute the basis of the legislative programme of the National Coalition Government and that the implementation of these proposals will transform Ireland into a modern progressive society based on social justice.

In the 14-point plan announced prior to the election we had the promises made by the present National Coalition Government, now often referred to as "GOAT" the Government of all talents. I do not like the cumbersome title "National Coalition Government". I prefer the Government of all talents, otherwise abbreviated to "GOAT". In the light of the lack of development over the years and the absence of effort to implement the 14-point plan, it is obvious that the Government just lay down and wished for the best but a wishbone is no substitute for a backbone. One must make a positive approach to problems. No such positive approach has been made. Possibly the Government have a policy for unemployment and for those who are unable to obtain employment and that policy is "Love on the Dole". That would appear to be the only policy they have for the unfortunate people now signing on at the labour exchange.

Is this what is meant by socialism in the seventies? Is this what the Labour Party mean by socialism in the seventies? Is that what they meant in the election campaign—unemployment, rising prices and chaos in family life as a result of the tragedies brought about by unemployment? Or is it the old Fine Gael policy that it is not the duty of the Government to provide work for the people? The Government have made no effort to provide work. The man who said it was not the duty of the Government to provide work for the people was a Minister for Industry and Commerce.

We know now what socialism in the seventies is like. We realise now that the Fine Gael Party have converted the Labour Party into believing it is not the duty or responsibility of the Government to provide employment. The Minister wanted to know what policy the Opposition had to solve this problem. On 26th November, 1974, the Minister for Finance was asked if, in view of the OECD recommendation that Ireland should now have a long range strategy for future development, the Government intend to produce such a programme. In reply he said:

I indicated in my budget statement of 3rd April last that the Government had decided that it would not be possible to publish a meaningful development programme for the years ahead in the light of the unsettled world situation. Developments since then have merely added to the uncertainties surrounding the future economic outlook. The question is, however, under continuing review.

The Government have no long range plan. The Taoiseach on one occasion met the captains of industry and he will meet them again next Friday. A week before he met them he indicated there was no cause whatever for concern. A week later the situation was so bad he had to bring these people together. We are told now they will be coming together again in the near future to seek a solution to this grave problem.

On 26th November, 1974, the Leader of the Opposition queried the Minister for Finance as to the desirability of the Government putting forward certain economic aims and aspirations based on reasonable assumptions. In reply to that, the Minister for Finance said:

A number of countries comparable to ours, including Denmark, decided recently not to publish economic programmes because of the uncertainties that exist. When many of the problems now facing the world become more recognisable as to their ultimate implications, then it would be appropriate to issue a plan.

We know now that the Government have no plan. That is what the man who holds the purse strings stated on 26th November, 1974. Without a plan where do we go? On the 11th of this month we had 103,407 unemployed on the live register; we have 8,131 on short time and approximately 30,000 more unable to obtain employment, people who are not on the live register because they think it would be useless to register, professional people who have lost their employment and other categories of workers. It will be seen from these figures how very serious the situation is, far more serious than what is indicated by the official statistics. In all, we have roughly 133,000 unemployed. This is a very serious situation compared with 12 months ago. It was 12 months ago the Government should have taken steps to prevent the situation we have today arising. The Minister for Labour would be well advised when introducing training programmes to introduce a special training scheme to train some Ministers in the methods of coping with the problems that confront us.

On 19th April last year the number of unemployed was 69,351. The upward spiral has now reached a level hitherto unknown. We now ask the Minister for Labour and the Ministers to come to indicate clearly what positive steps they propose taking? We also ask the Government the questions similar to the one the Minister for Labour put to the Opposition: "What plans and policy have the Government for the future?" If they have no plans or policy and indicate that because of the pressures from outside, the Opposition should produce a plan and a policy and they want to hear that then we will have a rethink about the situation. The Minister has clarified that point. The Government have no policy and no plans for the future.

Reference was made to the IDA, a very reputable group, who have done wonderful work but the Government have a responsibility. We know the real problems which confront the country at the moment. We were told by the Minister tonight that great news was being disclosed to the people by the Minister for Industry and Commerce. We have heard all that before and also the panic announcements. When motions were put down in the past in relation to unemployment, and the position in the various industries such as the clothing and footwear industries we had panic announcements by the various Ministers. The public will no longer accept those announcements and the type of speech so often made by the Minister for Posts and Telegraphs to cloud the situation. His tactics over the past few years are well known to the people and I am sure in the future they will pay no attention to this irresponsible Minister who tends to direct the attention of the House and the public from the real problems facing the nation.

The unemployment situation cannot be attributed to any one problem. We know there is world recession. The Minister for Labour gave us the geography lesson which has so often been given by various Ministers when they are asked to explain their failure to produce a plan for the future that might provide guidelines for industry and give a ray of hope to workers who are now in the ever-increasing dole queues. On 26th November, 1974, reference was made to a number of countries, including Denmark. The European Communities Newsletter of the 23rd April, 1975, says that according to the most recent figures 5,000,000 people are out of work with percentages of unemployment ranging from less than 1 per cent in Luxembourg to 11.8 per cent in Denmark. Ireland was in second place with 8.1 per cent.

It appears from this document that we wish to align ourselves with the most destitute type of thinking in relation to political survival and because Denmark decides she will not publish a policy we should not produce one. The figures given in this document are a clear indication that other member states of the EEC are correcting their economies but we are prepared to wait until Denmark decides that the coast is clear. The Government should endeavour to arrest the downward trend of the present situation. Whatever success other countries may have had with regard to arresting the unemployment situation no effort is being made by this Government to do something about it. We have ever-increasing dole queues. As Deputy Fitzgerald stated we want the Government to put the people back to work.

Apparently the only place overtime work is available at the moment is in the unemployment exchanges. During the recent Galway by-election I spoke outside a labour exchange and I was told the people inside the exchange were working overtime while thousands stood in the dole queue outside. Great shame is attached to the Labour Party for supporting the Government in doing nothing about the unemployment situation. If the Minister for Labour, the Minister for Industry and Commerce and the Minister for Posts and Telegraphs were in Opposition now they would feel that outside problems bear lightly on home affairs but when they are in Government they feel they bear very very heavily on them. We all agree that when outside factors have a bearing on unemployment figures, corrective measures have to be taken both inside and outside the country.

There is a very unpromising outlook for school leavers who in the past had the promise of obtaining employment. What about the thousands of young people about to complete their leaving certificate, who will now have to join the queues at labour exchanges? What will this very vulnerable section of the community think of the Government? A high proportion of them, who have secondary education, do not want to emigrate to menial jobs. We will have large scale social unrest from young people, who have no hope of obtaining employment in the future. The Government made the fundamental mistake of being lulled into the belief that the expanding economy left by Fianna Fáil would continue but they did not realise it was a product of a long period of economic planning. This is where the Government have fallen down. They believed that the wishbone was there and all they had to do was to wish for the best. The long period of economic planning that brought about the expanding economy we left did not continue because the many sections within the Government, Ministers with different outlooks, drifted apart.

Debate adjourned.