The primary objective of this party since our return to Government has been to provide new productive jobs for our young workforce. We have steadily moved towards this objective in the last three budgets. We have followed an economic strategy designed to control inflation — in a world of high inflation — and to keep the economy in a healthy state, especially in the midst of the present world economic recession.
This budget follows the same pattern as others. It is also designed to bring order and balance to our public spending. We have moved to divert a major share of the available national income to the more productive sectors of our economy and to provide the infrastructure for our continued industrial expansion, roads, telephones and other services which are the life blood of industrial development.
Fianna Fáil policy has always been to create favourable conditions for the development of our industries, which were victimised during the Coalition years of the mid-seventies. When we returned to power our industrial sector was in the doldrums. We have restored confidence to industry and, with their endeavour, together we will come out of this present recession better placed to take advantage of the coming upturn in the world markets. This budget, because it is fair, strikes the right note for the great effort we expect and need from the community to enable us to succeed.
This party when in Government have always provided for the less well off in our community. They have always been a special priority with Fianna Fáil. This year is no exception, for even when public money is scarce they must be helped to cope with the increasing difficulties of day to day living. We have provided an extra £111 million to improve the rates of social welfare payments. All round increases of 25 per cent in long term and 20 per cent in short term benefits are a major improvement, and may I add, more than was given by the Coalition Government in their total four-and-a-half years in office.
For example, the basic old age contributory pension has increased from £14.60 in 1977 to £30.65 this year, unemployment benefit from £13 in 1977 to £24.55 this year, in each case approximately a 50 per cent increase. These show the commitment of this Government to our dependants and this budget has increased their real spending power. We will, as in the past, continue to give priority to these people.
One aspect of the budget I am particularly pleased about is the increase in benefits to the disabled, with a raise in tax allowances, the removal of VAT from medical aids and substantial improvement in the various allowances for them. These improvements are a help for the disabled to cope with the problems of everyday living not faced by the rest of us.
One aspect of the problems facing the disabled is the finding of suitable employment and indeed the theme of the International Year of Disabled Persons is "Full Participation and Equality". My Department are making a very significant contribution in the fields of employment and training. I have responsibility for the implementation of the Government decision that a 3 per cent quota of disabled persons should be employed in the public sector. We have already arranged for recruitment to the civil service to be opened up to disabled persons and special arrangements made to facilitate their appointment. I am satisfied that these arrangements will lead to a significant number of disabled persons being offered employment in the civil service this year. My department are also in regular contact with local authorities, health boards and State bodies to assist and advise them on how best they can implement the Government decision and proceed as quickly as possible towards the 3 per cent quota.
AnCO involvement in the training of disabled persons for open employment is increasing significantly. They are providing training for open employment, for those suitable, on an integrated basis with able-bodied. They trained 473 disabled persons during 1980 and hope to double that figure for 1981. AnCO are also proposing to provide training opportunities for the disabled by increasing use of the external training facilities at their disposal.
On the wider issue of employment, the co-ordination and supervision of manpower policy is an important aspect of my responsibilities and the Manpower Consultative Committee were set up to advise on the role of manpower policy in economic and social developments. In the past year the committee have looked at the important areas of attitudes to work in industry, youth employment, shortages of skilled manpower and work-sharing as a method of increasing employment.
Their report on the question of youth employment, including its conclusions and recommendations, was published recently. They considered young people should not be regarded as a separate element of the labour market and the provision of special schemes such as those introduced in the current recession should not indicate a separation of youth employment from the general labour market.
I am concerned, however, to protect our young people from the worst effects of the recession. They are a particularly vulnerable sector of our workforce. The consequences of high levels of youth unemployment, both in terms of demoralising effects on the individual starting out on a career and the implications for society in general of a large group of disillusioned young people, must not be forgotten.
The report came to certain conclusions. Among them are that insufficient information has been made available to young people on where the best job opportunities are and the occupations needed by industry. The results of work in this area such as the identification of skill shortages and occupational supply and demand forecasts should be published in a form that would be accessible to young people. Another recommendation suggests that young people who remain unemployed for, say, 12 months after leaving school should be regarded as a priority case for placement on an AnCO training course, work experience or special youth employment schemes if they had not previously participated in these programmes. I am examining these and the committee's other recommendations.
The Manpower Consultative Committee assessed the extent of shortages of highly qualified skilled and semi-skilled labour and have got the commitment of various organisations so that we can tackle the problem. A further recruitment campaign was undertaken in the UK last autumn and a register of applicants will be distributed to employers notifying shortages within a few weeks. At the request of the MCC education authorities expanded existing courses and developed new courses to increase output in the short supply occupations between 1980-1983. As a result the intake into graduate engineering courses increased by approximately one-third between 1979 and 1980. Employers are being encouraged to take on more fitter and toolmaker apprentices than their immediate needs. All these measures should go a long way towards removing the shortage of highly qualified and skilled manpower which was becoming a major constraint in industrial expansion.
The Manpower Consultative Committee are now looking at the question of attitudes to industrial employment in Ireland, with the aim of informing young people of career prospects in industry and eliminating, with the assistance of industry itself, any bias which may exist. The committee have already made a number of recommendations.
Another significant development recently is that three regional manpower committees were established on a pilot basis and three more will be set up shortly. The task of the regional committees is to advise on the implementation of labour market policy in their specific region. I see this as a move towards a more co-ordinated approach to manpower problems at a local level.
We are anxious to stem the number of job losses and to give more help to firms in difficulties. The National Manpower Service is operating an early warning system on job losses and firms with problems. Information on these firms received from the National Manpower placement staff and through the Redundancy and Protection of Employment Acts is forwarded to the Department of Industry, Commerce and Tourism for possible appropriate rescue action by the IDA or Fóir Teo.
In order to assist them to maintain their employment levels, an inter-agency group has been set up, comprising representatives of the Department of Industry, Commerce and Tourism, Labour and Agriculture, The IDA., Fóir Teoranta, the Industrial Credit Company and CTT. Measures to assist firms where redundancies or closures are threatened are being co-ordinated by this group.
One does not have to look further for evidence of the success of the Government's job creation programme in the past few years than the estimates of the numbers employed in the various sectors of the economy in 1980 and revised estimates for the years 1975, 1977 and 1979 published recently by the Central Statistics Office. These estimates show that the total employment increased by almost 100,000 between 1975 and 1980. Nonagricultural employment increased by 23,000 per annum on average in the same period. The total labour force is shown to have increased by 96,000 or 8.4 per cent between 1975 and 1980, an average yearly increase of 19,000.
The IDA achieved record numbers of job approvals in the past three years — over 35,000 last year, 34,500 in 1979 and 30,200 in 1978. Many of these jobs will be coming on stream this year or in subsequent years. In all, as a result of IDA projects already approved, it is expected that 15,000 — 16,000 new manufacturing jobs will be provided this year. The IDA have also set themselves the target of achieving 30,000 job approvals this year. In addition, the Shannon Free Airport Development Company expect to provide 1,500 new jobs this year and approve projects with an employment potential of 3,000.
In the second National Understanding for Economic and Social Development the Government affirm their commitment to the earliest possible achievement of full employment. While the job creation results of existing Government investment and economic promotion policies are compatible with the early achievement of full employment, the domestic repercussions of the general world economic recession are currently off-setting these gains by causing exceptionally high job losses. I believe that the slowing of the unemployment rate in the past few months is an indication that the Government's commitments under the understanding are taking affect.
The Government Investment Plan for 1981 provides for a total investment in 1981 of over £1,700 million and will result in higher direct employment of about 10,000 mostly in building and contruction, with the inevitable spin-off employment in Irish firms supplying materials and services. It is a blueprint for the foundations on which we will continue to expand our industrial sector.
The effect of the recession is also evident in the number of vacancies notified to the National Manpower service last year. During 1980, a total of 41,652 vacancies were notified, a drop of 8,792 or 17 per cent on the number notified in 1979. However, a slightly higher proportion of vacancies was filled. Vacancies filled as a proportion of notifications, were 66 per cent for last year compared with 61 per cent for 1979.
It is essential for our economy that our industrial training be geared to the needs of the labour market so as to ensure a well-trained labour force and to avoid as far as possible any bottlenecks in either supply or demand. This calls for frequent reviews of the training provided and I am satisfied that the training agencies under the aegis of my Department — AnCO and CERT — are very conscious of this and keep their programmes under constant review.
The 1981 non-capital Exchequer grant to AnCO is fixed at £21 million. This represents an increase of 20 per cent over last year's allocation. When the grant from the European Social Fund is added to this, it means that AnCO will have about £7 million more at their disposal than for the 1980 programme. This increase will enable AnCO to increase by almost 10 per cent the numbers receiving training in 1981 over the 15,700 trained in 1980. AnCO will also concentrate more on high skilled training, so that the potential of Irish manpower can be used to the full in the new and developing field of high technology employments.
During the 1974 to 1977 period we had the disastrous situation of the intake of apprentices being cut back resulting in a severe shortage when the economy regained its bouyancy on our return to power. I am encouraged that this shortsighted action is not being repeated. Industry is now very aware of the need for training and how the future development of its individual firms depends on continuing to train its potential workforce.
The stock of apprentices reached 21,500 at the end of December 1980. This was an all-time high and AnCO are determined that every effort will be made to increase the intake of first year apprentices during 1981. The additional funds being provided this year will enable AnCO to continue providing special arrangements for apprentices who may find their apprenticeship temporarily disrupted by the economic situation due to closure or lay-offs.
This year's Exchequer capital grant to AnCO amounts to £9.5 million, that is, an increase of almost 50 per cent on last year's figure. This substantial increase will allow AnCO to proceed with their plans to build new training centres. The building of new centres will be started at Loughlinstown and Baldoyle during 1981 and new training centres at Cork and Finglas in Dublin and substantial extensions to existing centres at Tralee and Ballyfermot in Dublin will be completed in 1981. By the end of this year there will be almost 900 more training places compared with 1980. In addition to the employment which AnCO's capital development programme will generate in the services and construction industries, the additional training places provided will allow for greater annual trainee throughput. The selection of new training centre locations is heavily influenced by the identified needs for vocational training facilities, the employment outlets, both existing and planned, and the skilled needs of local industry.
The Community Youth Training Programme continued to be a success with over 2,000 young people benefiting. In all, 118 projects were completed making a lasting contribution to local communities and their environments.
Another improvement was in the number of women seeking training. Last year, 30 per cent of all AnCO trainees were women and 10 per cent of these completed courses in traditionally male skill areas. Forty-four per cent of those trainees on our management training programme are also women.
As Deputies are aware, CERT caters for the education, recruitment and training for the hotel, catering and tourism industry. The 1981 Exchequer grant to CERT amounts to £935,000, which is an increase of £105,000 over the 1980 allocation. When the ESF grant is added, it will mean that CERT has over £200,000 more at their disposal than they had in 1980.
CERT hope to train 5,000 persons during 1981 and, going on past performance, the vast majority of these will find worth while and satisfying employment on completion of their training. CERT will also continue to provide industry-based training to ensure that the industry provides an efficient, friendly and value-for-money service for the public, including the visitor from abroad.
An important aspect of the work of my Department relates to the drafting of new labour legislation and the improvement of existing legislation.
An area of considerable importance is the field of safety in industry. I feel a major contribution will be made to the improvement of safety standards in industry by the phasing into operation of the Safety in Industry Act, 1980. The Act updates the Factories Act, 1955, improving safety standards in general, that is, noise levels, training, protection of eyes, fire drill, machinery protection. Most sections will be brought into operation on 1 March 1981. The cornerstone of the Act is the establishment of safety committees under Part III, which will operate from 1 April 1981, ensuring the establishment of safety committees before the end of the year. In addition, Part III puts an onus on employers to set down in writing the arrangements which they have made in their premises to ensure the safety of their workers. I am arranging for a publicity campaign to bring the provisions of the Act to the attention of employers and workers and I would like to take this opportunity to ask both sides of industry to ensure that its operation is effective.
As Deputies will be aware, the search for oil is continuing off our coasts. Hydrocarbon exploration is becoming a permanent feature off our shores. Drilling for oil is a hazardous occupation and at present is not covered by legislation. To fill this gap a Bill has been drafted in respect of safety on offshore installations and it is my intention to introduce the Bill in the Dáil in the near future.
Another area which I feel needs to be updated is statutory limits on hours of work, which were set in the thirties and are now completely out of date given existing conditions in Irish industry. Discussions have been held with the Irish Congress of Trade Unions and the employer organisations with a view to amending the relevant legislation. It is my intention to introduce a Bill during the current Dáil session and I hope we can agree on an early enactment. The legislation will also limit overtime working. Studies have revealed that a reduction in overtime could result in increased employment. I am hoping that, with the co-operation of employers and workers, the legislation will result in the creation of additional jobs.
A further piece of protective legislation which I am preparing relates specifically to young persons. This legislation will amend the Protection of Young Persons (Employment) Act, 1977, to fulfil an undertaking given by my predecessor in the Dáil last July when an order to extend section 4(3) for a further year was debated.
With increased industrialisation, the range of dangerous substances being used in this country is increasing. The Dangerous Substances Act is a particularly wide-ranging Act, which provides for the protection not only of workers but of the public and property from the hazards of dangerous substances. Regulations under the Act control the handling, conveyance and storage of petroleum, and last September, regulations were made to control the conveyance of 25 other substances which are most commonly transported in this country. I intend to have this list extended, and a further set of regulations is currently being drafted to control the loading, unloading and storage of these substances.
Apart from the major legislative progress that has taken place during the past few years in relation to occupational safety and health, and which is still continuing, I believe that the establishment last year of a commission of enquiry on safety, health and welfare at work is one of the most important developments in this area since the Department was set up.
Deputies will recall that my predecessor announced his intentions in this respect during the debates on the then Safety in Industry Bill. The commission will examine both the statutory and voluntary arrangements for safeguarding the safety and health of people at work as well as the question of safeguards for the public from hazards, other than general environmental pollution, arising out of work activities and the transport of dangerous substances. Their investigations will extend to all areas of work, including those that do not at present come within the ambit of my Department's responsibility.
The commission have been requested to report back with their findings and recommendations by the end of 1982. I am confident that the commission's recommendations will help to outline the ways in which the well-being of our work-force, and ultimately that of the community as a whole, can best be protected in the decades to come.
It is also my intention to amend the Night Work (Bakeries) Act to allow the licensing of night-baking. As Deputies may be aware, employment in the bakery industry is being threatened, one of the main factors being that the bakeries are unable to operate efficiently as they cannot bake at night. One bakery was due to close down on 31 December last with a loss of almost 200 jobs. That closure was averted following discussions with the management and a guarantee that the legislation would be amended urgently. The Labour Court also recommended that the legislation be changed to allow baking at night, where employers and workers agree.
It is therefore my intention to put before the House shortly a Bill to amend the 1936 Night Work (Bakeries) Act to allow the licensing of baking at night. Licences will only be issued following consultations with representatives of employers and employees. It is my hope that the passing of this legislation will help to stabilise employment in the industry.
The Employment Equality section of my Department is responsible for administration of the equal pay and equal opportunity in employment legislation.
This legislation establishes the legal right of women to equal pay with men for like work, and for equal treatment with men in entry to employment, training, promotion and all conditions of employment.
All prohibitions on women at work, such as the prohibitions on women working in industrial work at night, are being looked at to see if the concern which originally inspired them still applies today. If it is necessary to protect women in special cases as, for example, from working in lead processing during pregnancy, such protection will remain, but if any such protection does not appear necessary and results in discrimination in employment, we will give consideration to removing it from the Statute Book.
The Employment Equality Agency set up under the equal opportunity in employment legislation of 1977 has the task of publicising the legislation and overseeing progress. They have monitored the cases being heard by the equality officers and the Labour Court and they encourage individuals to avail of the redress procedures set up under the Acts.
The agency keep a watchful eye on discriminatory advertisements and on any signs of discriminatory practices in employment. If they suspect a pattern of discrimination, they are empowered to hold formal investigations and to issue non-discriminatory notices.
The question of the extent to which career choices for women are affected by subject choices in schools seems basic to the question of removal of discrimination against women. The Employment Equality Agency, assisted by the Departments of Education and Labour and the EEC, have commissioned the Economic and Social Research Institute to carry out a research project on the subject. The project is well advanced. A sum of £172,000 has been made available in the 1981 budget for the Employment Equality Agency.
In the area of women's affairs, the Department give a grant to the Council for the Status of Women which is the umbrella group for more than 30 women's organisations. The council are consulted about any Government initiatives of special relevance to women.
Suitable premises have been secured by the council in Merrion Square with Government assistance. A sum of £30,000 has been made available in the 1981 budget for the Council for the Status of Women to help them to continue to promote the role of women in our society.
The Government have been conscious of the fact that schemes for paid maternity leave exist only in the public service and in some large firms. To remedy this situation and as a further measure to help to improve the position of women in our society, a statutory scheme of paid maternity leave for women in employment has been prepared which will operate from April 1981. I am glad to say that the relevant Bill is almost finalised and I expect to present it to the Dáil within the next week. This legislation will make it easier for women to continue to work after child birth should they so wish and therefore to enable them to compete on equal terms with men. In too many cases even now, women are in danger of losing their jobs when they take time off to have a baby. This is a situation which could not be allowed to continue.
As part of their industrial relations policy and to promote a more positive and co-operative industrial relations climate, the Government are encouraging the development and promotion of various forms of worker participation.
In January of this year I authorised the completion of the final stage in the implementation of the Worker Participation (State Enterprises) Act, 1977. The objective of this scheme is to facilitate greater employee involvement in a number of State companies by providing a legal framework whereby employee representatives may be elected as members of State boards. To date, elections have been concluded in six State companies and employees have been appointed to their boards. Plans have been made for the holding of an election in Aer Lingus, the last of the seven State companies covered by the Act.
The experience in these State bodies has been instructive; the appointment of worker directors has served as a catalyst to the development of new participative machinery at below-board level and has prompted new management and union approaches to the sharing of information. It is my hope that this favourable experience will ensure the adoption of appropriate initiatives based on the same commitment to structure and process on the part of both sides of industry generally. I am engaged in preparing amending legislation to extend the scope of the Worker Participation Act, in accordance with the Governments' commitment in the national understanding, providing for employee participation at board level in additional State bodies.
Forms of worker participation at below-board level are being encouraged by the Government through the work of the Irish Productivity Centre, a State-subsidised agency which operates under the joint control of the social partners. The centre offers a range of consultancy and advisory services to industry, including assistance with new forms of consultation, industrial relations and worker participation practices and mechanisms, A growing number of Irish firms are now availing themselves of this facility to review information sharing, methods of work organisation and increase the level and degree of employee involvement in decision making.
Deputies will be aware of the discussion paper "Worker Participation" which was published by my predecessor in March last year. The publication of this document has afforded both sides of industry the opportunity to put forward their considered views and opinions on the range of issues involved. I have been impressed by the response and have requested an evaluation of the range of submissions received to date. I should add that the scope for initiatives in participation at different levels of the enterprise will be the subject of further study by a representative committee which I propose to establish. This body I hope will review progress, highlight exemplary practice and direct our attention to the realistic options for our industrial relations system. The combined effect of these initiatives should make a significant and positive contribution to reducing the source of industrial strife and, in this way, to fostering a greater sense of cooperating and collaboration between both sides of industry.
Last year was a relatively good year for industrial relations. The number of days lost through industrial disputes showed a considerable drop over 1979 — a total of 404,000 as against 1,427,000. In fact the 1980 figure represents the best performance in terms of days lost since 1975. There are, however, serious deficiencies in our industrial relations system, in particular the incidence of unofficial strikes and inter-union disputes which are a threat to the peaceful resolution of legitimate conflicts of interest.
We must not be complacent, nor rest on our oars, now that we see an improvement in our industrial relations performance. We should strive to ensure that the improvement is not short-lived and that our commitment to a fair day's work for a fair day's pay is not lessened. There should be enough means at the disposal of unions and management to discuss and resolve grievances before they are allowed to fester. On the management side, that means first and foremost accessibility. It also requires a consistent personnel policy which has been determined and agreed upon by all those in management. I would not advocate a dictatorship of the personnel function, but I would urge all line managers to remember that a good working atmosphere means greater efficiency. In turn, a high rate of output can provide greater security and possibly financial benefits for the work force.
Where there is a serious grievance which is not capable of being solved by the employer and union concerned, the resources of the State dispute-settling machinery, paid for by the taxpayer, are available as a means of reaching compromise. The Labour Court has been expanded with the addition of a fourth division, and its operation has been made more efficient with the purchase of advanced technology word-processing equipment. All of this means that the waiting period between referring a dispute for investigation and the issue of a recommendation on it has been steadily reduced.
Turning to the question of unofficial strikes, the Government are clearly concerned about the situation, where a person or group of individuals acting quite without authority or support from their trade union and engaging in unofficial picketing enjoy precisely the same legal protections as those who mount a picket with a full mandate from their trade union. Deputies will be aware that consultations are currently going on with employer and trade union interests with a view to reaching consensus on a number of outline proposals for the reform of trade union law which I have suggested to them. When these consultations are concluded, I intend to put specific proposals to the Government for a decision on their implementation. Legislation on its own cannot, however, eliminate our industrial relations problems overnight. The primary responsibility for the resolution of disputes rests with employers and workers. The most the law can do is to even any imbalance which may exist in the legal protection afforded to either social partner, and it would be wrong to suggest that our problems can be solved with a stroke of a pen, or the bringing into effect of a particular piece of law.
I should also like to mention a subject which will have a vital influence on our industrial relations system in the longer term, and that is trade union education and training. I am well aware of the important contribution which an informed and highly trained trade unionist can make to rational negotiations. As an indication of the Government's commitment to trade union education, I have authorised the payment of £450,000 to the Irish Congress of Trade Unions towards the cost of their education, training and advisory services during 1981. This sum represents an increase of 50 per cent over last year's figure, and nearly 120 per cent over the 1979 amount. I am sure the House will agree that this is a generous increase and one that will bear fruit in the years to come in the form of a more articulate, responsible and efficient trade union movement.
This budget is for the people; we have set a clear course for the future. We are making significant steps towards equity and justice in our society. I believe we are heading into calmer times, but we must take advantage of the opportunities offered us. Together we must as a society improve our attitude to the work ethic by reducing absenteeism, improving our industrial relations, by giving more personal commitment to doing our jobs well and being less rigid in the face of technical change.