asked the Minister for Labour (a) the total number of firms that have closed since June 1977; (b) the number on short-time at present; (c) the number of people who have lost their jobs due to closures since 1977; (d) the number it is anticipated will become unemployed due to closures in 1981 and (e) the steps being taken to stop the slide into recession.
Written Answers. - Firm Closures.
301.
(a) and (c): Based on information available to the Industrial Development Authority and the Department of Industry, Commerce and Tourism, the best estimate for the number of firms engaged in manufacturing industries which closed since the beginning of 1977 to the end of November 1980 is 175 and the approximate number of jobs lost because of these closures is 11,255. Reliable data is not available on the service sector.
(b) The number of persons on systematic short-time working registered at local employment offices at the end of November 1980 was 8,229.
(d) The estimate for job losses in manufacturing for the period from end 1980 to end 1981 is 16,000, a figure which covers job losses arising from closures and for other reasons. From past experience, the major element will be temporary reductions in employment in firms experiencing short term difficulties.
(e) I do not accept the inference in the last part of the Deputy's question. While the general world economic recession and its domestic repercussions are offsetting the number of new jobs created by exceptional high job losses, firm Government action is being taken. For example, measures to assist firms to maintain their employment levels have been strengthened and are being co-ordinated by a group comprising representatives of the Departments of Industry, Commerce and Tourism, Labour and Agriculture, the IDA, Fóir Teoranta, the Industrial Credit Company and CTT. In addition, extra finance is being made available to Fóir Teoranta for this purpose.
I am glad to say that there are a number of welcome developments indicating that the worst of the recession is over. For example, the increase in the numbers unemployed between the end of October and end November was much lower than in previous months when seasonal factors are taken into account. Again, new jobs created and job approvals are at a much higher level than in the period immediately following the first oil price shock in 1974.
Existing Government investment and economic promotion policies, and their results, are directed towards the achievement of high levels of job creation. The Government intend to publish shortly an Investment Plan for 1981.
In the meantime, the Government has devised new measures, involving additional expenditure of £97 million this year, which should develop our future employment creation capacity. A major element consists of additions to the provisions for infrastructure in the public capital programme. Aside from the immediate contribution to employment, the strenghthening of the country's productive and infrastructural base should add significantly to our employment-creation capacity in future years.
Additional measures to attract new industry here will include the purchase of sites and vacant factories, the construction of advance factories and intensified promotional activity by the IDA, SFADCo and Údarás na Gaeltachta.
I would again repeat the importance of buying Irish. In this connection, a working party, which has been set up under the Chairmanship of Deputy Dennis Gallagher, Minister of State at the Department of Industry, Commerce and Tourism, has drawn up an action programme and already initiated measures to intensify the use of domestic products and services. New measures to promote export have also been drawn up by CTT.