Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Tuesday, 7 Feb 1984

Vol. 347 No. 9

Private Members' Business. - Employment Creation: Motion.

I move:

That Dáil Éireann deplores the failure of this Government to produce any policies to create new employment opportunities particularly for young people.

This Government stand condemned for their total failure and neglect in the area of employment and job creation. They have not taken any positive steps to improve the appalling situation that exists with regard to job creation and the deterioration that has occurred is alarming. In their 14 months in office the Government have not applied themselves seriously to treating the greatest cancer in our society, that of unemployment and especially youth unemployment.

We should start with the programme drawn up by both parties in Government in the halcyon, euphoric days when the Labour Party and Fine Gael were busy hammering together a programme they hoped would enable them to grasp the reins of power. I will quote two paragraphs from that programme. The first paragraph, which was the introduction, was as follows:

The unemployment situation with 170,000 unemployed, 50,000 of them under 25 years of age, and the state of the public finances facing a new Government taking office at the end of 1982 are alarming. Both require firm and decisive action by such a Government. The dual task of halting and reversing the growth of unemployment, while phasing out the current budget deficit, poses a greater challenge than any Irish Government has faced domestically since the early years of the State.

My colleague, Deputy Power, has dealt with the U-turn with regard to the budget deficit and I do not intend to dwell further on that. However, I wish to draw the attention of the House to the decisive and firm action that was going to be taken by this great new Government in those euphoric days to tackle the unemployment problem. Let me refer the House to the unemployment figures issued yesterday. The 170,000 referred to in the joint programme has become 215,552, an increase of 45,000. Unemployment among the under 25-year olds was 50,000 but now it has become 67,633. Let me quote the second paragraph from the joint programme under the heading "Planning for Economic Recovery":

Permanent structures will be established by the Government to ensure effective economic and social planning.

1. The new Government will set up an employment task force of three economic Ministers led by the Taoiseach and the Tánaiste through which the two parties in Government will share responsibility for initiating the immediate employment generating process.

What progress has that much-lauded and often mentioned task force achieved? I want to know from the Minister of State in the House how many times that group of Ministers met with the task force and how many jobs they have created.

I referred to the growth in the unemployment figures as announced yesterday. Before going further I want to draw the attention of the House to the wordy amendment submitted in the name of the Minister for Labour. The amendment states:

To delete all words after "Dáil Éireann" and substitute:

", while greatly concerned at the continuing high level of unemployment and in particular its impact on young people, notes that the rate of growth of unemployment has been halved since the election of the Government in December, 1982 and approves the actions and plans of the Government which, in conjunction with an adequate response from every section of the Community, will provide the necessary framework to combat unemployment successfully".

Will the House be told what are the actions and the plans of the Government? Has ever a more negative amendment to a motion been put before this House? What an achievement to halve the rate of growth of unemployment. This is said after a month in which we had the highest growth in unemployment. Shame on the Minister of State in the House, shame on the Government and shame on an unimaginative Minister who could not find a better formula of words to amend our motion. It proves their lack of interest in solving what I stated was the greatest cancer in our society.

We are talking of 215,000 people unemployed but that does not include many of the closures that have been announced and that have taken place in the past week or so. It does not include the young people who will come on the employment market in a few months, probably somewhere in the region of 19,000 to 20,000. When we consider those people we are talking about 250,000 and when we realise that fewer than 196,000 are employed in manufacturing industry we must become very alarmed at the figures. Despite all this, the Government are proud they have halved the rate of growth of unemployment. In their 14 months in office there has been an increase of 45,000 in the unemployed, including 7,500 for the month of January which was the highest total ever recorded for January.

The second budget introduced by this Government gave little or no hope to the unemployed or to those whose jobs are in jeopardy. Neither did it give any encouragement to employers to increase their number of workers. If we realise that each additional 1,000 persons on the dole queues costs us in the region of £2,500,000, that gives us some indication of the inadequacy of the budget with regard to lack of planning. This budget had one objective, namely, to keep the Labour Party and Fine Gael in Government for a little while longer. The budget did not have any plan or programme to try to arrest the enormous growth in our unemployment figures. The Government are leading the country on a dangerous downward trend. Confidence and optimism have been shattered and it is becoming increasingly apparent that the budget was aimed to devise ways and means to keep these two parties in office.

Let me recollect some of the comments of these parties in those days of October and November 1982. Fine Gael said they would halt and reverse the trend of unemployment. Would those people who like to talk about U-turns compare the comments of those days with this evening's amendment? Labour said they were going to have a voice in Government that would be heard. In fact, they went much further. They said:

The Labour Party offers such a radical programme in this election. We represent ordinary working people,——

They do not represent very many working people today ——

——not big business, large farmers, or land speculators. Our policies are different.

Labour does not accept the prospect of continuing mass unemployment. But young people must have the legitimate hope of worthwhile work.

Labour stands for planned economic development and for a jobs programme led by the public sector.

In their comments on the economy and jobs they said:

LABOUR'S POLICY IS:

1. active public sector involvement in job creation in industry with rigorous projects appraisal to ensure lasting productive jobs;

What has become of that public sector job creation programme? What has become of that rigorous project appraisal? In the second paragraph they said:

2. a strong, effective and independent National Development Corporation, with powers to invest up to £500 million in equity capital in industry and with borrowing powers of £1,000 million.

The National Development Corporation we have heard about for so long has obviously been put to bed or laid to rest, but no longer forms a plank in a Government who do not have any commitment to job creation or to rescuing the legitimate hopes of young people to whom Labour promised so much. The figure 50,000 people has become 67,000, with a further 20,000 school-leavers to come on the market within the next few months.

I will now discuss the task force. First, a Government are elected to govern, not to blame task forces, having appointed them, not to set up review bodies, and not to set up committees to examine what are really Government problems and decisions. With this Government we have had jobs created, but they were jobs for the ardent party faithful by way of advisers, committees, review bodies, task forces and State board appointments. They are the only jobs we have seen emanating from this inefficient Government.

This Taoiseach, with the help of highly paid handlers, has been avoiding the main problems and has placed a heavy reliance on public relations as a substitute for Government. These handlers, highly paid and well provided for, are the people who decide what the media, the press and the public are to be told about certain proposed and hoped for Government actions. This situation has become so ludicrous that I will quote from one of the papers prepared by these handlers — the New Democrat, a Fine Gael Party paper. On the front page there are a number of engagements and I congratulate the lucky persons involved but there the joy ends. On the front page there is a heading “Take off: Up, and Away, say Economists”, “By a Special Correspondent”. Even a Fine Gael member was ashamed to put his name to this production. He did not have the audacity to put his name to the dishonest rubbish written in this paper. He said:

One year after taking office the Government has turned around the economy and positioned it to achieve real growth for the first time in the '80s.

Now the Budget of Finance Minister, Alan Dukes, will consolidate the economic gains of the past 12 months and fuel recovery in 1984 and beyond.

Is this what the 250,000 people who are unemployed want to read? How far can Fine Gael go with this dishonest rubbish? There must be some limit. This argument goes on to say that national pride has been restored. What do they mean by that, particularly when there are 67,000 young people under 25 years unemployed — 14 months ago that figure was 40,000. This special correspondent is obviously one of these very eminent and highly paid handlers whom this Government believe are the top priority and whose greatest concern is to provide stories for the general public. As Deputy Power said very effectively, the general public are not easily taken in by stories of this nature and the only luck this country ever had is that it never had successive Coalition Governments. Would it not be dreadful if such a prospect faced the people?

Let us compare this with the criticism at the time of the motion of no confidence at the end of 1982? We had succeeded in producing a plan, The Way Forward. At that time the challenge facing us was the same as it is today — how to provide employment for our young people and still make growth and investment while working within the financial constraints imposed by a severe and unexpectedly prolonged recession. This is the challenge from which this Government are retreating, hiding behind the National Planning Board or the task force, whichever one likes to call it. How many meetings have this committee had with the Minister or the sub-committee of Ministers over the last 14 months? I call for immediate Government leadership and direction to bring together all the State agencies with a view to giving top priority to job creation. This is urgent.

If this motion succeeds in doing nothing else but getting some action from this Government who have been sitting on this very important issue, it will have served its purpose. We must convince the people behind the Minister that this type of approach is not good enough. This Government have set a record because the unemployment figures for January have been the highest since we began keeping records.

There are a few suggested ways and they are among the many possibilities; one could go on and on. There must be some imaginative people in that Government. Yet why was the chance lost? At present we have a building and construction industry on its knees to an extent not experienced even in the fifties. Unemployment in that industry at national level is in the region of 50 per cent and, in my region, has gone even higher. Surely a further investment of, say, between £100 million and £200 million in public capital projects would have more than paid for itself because of the immediate impact that industry can have on job creation and its resultant activity; one could say almost self-financing. It has been agreed that probably it is the fastest industry to provide jobs and a great one to stimulate activity in the economy generally.

What about the Fianna Fáil agricultural plan?

The land tax plan, is it that policy about which the Deputy is speaking?

No. I would advise the Minister of State not to be flippant because I am talking about a very serious matter. I shall come to some of his areas of activity in a moment. Mind you, I resent officials in the House sniggering when I speak. I have been in this House a long time — I have not yet experienced that, madam Chairman, and I protest, please, that if officials are allowed sit in the House they do observe a neutral stance while in the House. At least as long as I have been here that has been my experience and I hope it will continue. There is also the danger that the "jobs for the boys" syndrome in this Government may well be inclined to change that neutral stance and that would not help our democratic process.

Also we could be selective in our tax cuts particularly in regard to the liquor industry. Here I speak for a city and region extremely hard hit by unemployment at present where the only traditional industry with which we are left is the liquor industry. They are very big employers. Of course in this city also there is the old traditional brewery, an exceptionally big employer. There are many smaller breweries in some of the other towns in the provinces. That industry of itself can generate jobs. As the House is aware, there is the problem of cross-Border smuggling. I believe such tax cuts would help prevent that also. We are all aware that such smuggling practices have reached serious proportions for the liquor industry. Of course it would have an impact also on the tourist industry in need of stimulation and which can also provide jobs quickly through the stimulation of such activity.

There are other areas in which this Government appear to have either not the will or perhaps have a traditional hesitancy — I am not quite sure but for one reason or the other — one such being the area of "buy Irish". In our time we had established in two Government Departments special sub-committees to find ways and means of examining first of all, what was being purchased by State bodies that could be purchased at home, and what was perhaps being encouraged from abroad where import substitution could play a major role. We took this matter very seriously and made a lot of progress but a lot remained to be done. Somehow or other of late one hears very little of "buy Irish" or of import substitution. In this whole area we as a small nation can benefit a lot. I admire the IDA for what they have done. They have served us well although it is in recent times only they have acceded to the requests of many politicians to go more for the smaller industry than they had been inclined to do in the past. I am glad of this development and I encourage them in this respect. With regard to my own hard-hit area and the Cork region generally a more flexible approach was needed by the IDA, at times involving greater risk-taking than has been the case to date. I said as a Minister, and say again now in Opposition, that the other agencies are also in need of some loosening up. Here I refer particularly to the Industrial Credit Company and, at times to An Fóir Teoranta, at a time when unemployment is high and it is difficult to attract new industry. At times like these there must be greater risks taken by those bodies in the interests of creating employment.

My colleague will expand on the subject of food imports, he having greater knowledge in that area. But they have reached alarming proportions. I think I am right in saying they are now second in the league of imports. As a nation surely we should be in a position to produce so much of our food at home. There was a question asked today of the Minister for Foreign Affairs regarding some meat consignments being held in France. Very little progress appeared to have been made. I understood they would be released this evening anyway but at 3.30 or 4 o'clock this afternoon the Minister for Foreign Affairs had no information that they had been released.

I did say I would revert to the area of responsibility of the Minister of State in the House and pose some questions to him. If there has been a scheme introduced by somebody else which I believe to be a good one I will not always be critical, I will support it too, as I have always done. In this respect I believe that the enterprise allowance scheme was quite a helpful one. I cannot understand, however, why in the budget no additional money was provided for that scheme. Rather we were treated to a lot of platitudes. If the Minister of State tells me that he has got money I shall be delighted. But a lot of platitudes were advanced by the Minister for Finance in the House about this great scheme, maintaining that on further examination, he would ascertain whether money could or would be made available for it. I believe this to be a good scheme. As Deputy Power said a few moments ago there is the galaxy of geniuses. I accept also that the entire galaxy of geniuses or ideas does not lie on these benches here; there are some across the floor.

I am at a loss to understand why the Minister or his Minister of State was not in a position to say: look, we want more money for this scheme. As the Minister of State well knows, there are people in my constituency seeking aid under that scheme who as, of now, do not qualify. I hope the Minister will have good news for me in this respect. I see him fumbling through his papers and, if he has such good news, I shall be delighted. But I was disappointed that the Minister for Finance in the House on budget day did not give money to that scheme. It is pathetic if that is an indication of the commitment of the Minister for Finance to a scheme I believe to be a helpful one, one I believe can be of some assistance in a very difficult unemployment scene, when every viable or worthwhile scheme must be examined and supported. Unless it receives such support and the essential finance then it cannot be the success one would like.

I want to know somewhat more about this famous Youth Employment Agency. When it was established I supported it because I believed that any steps taken would be useful in the interests of youth employment. I supported it when I went back as Minister in March 1982 although other Ministers in my shoes might have been tempted, because of the obvious politicking that was going on in the days and hours before the take-over of that Government in March 1982, to say: "This is too much of a political body now being set up." I accepted all that I was handed — an agency whose board were fighting because of the circumstances of the appointment of their chief executive. Probably there was a vested interest there also in the light of subsequent development. I stood by that decision of my predecessor, in the interests of young people. What have that agency done in a positive way since then? I respect the chief executive who is hard working, sincere and committed, but from the very beginning the problem with this agency was that it was the birth child of a hastily prepared Labour Party document for the 1981 general election. It was conceived in haste for that manifesto and delivered at the Gaiety Theatre conference which followed. It was a premature birth, as was obvious when one got to the nitty gritty details of the agency.

The agency have to date, acquired fine offices and have built up a reasonable staff level. They have helped in a number of areas but I believe that this smacks again of appointing an additional agency to do something which could have been done by one or other of the existing agencies, or perhaps a combination of some of them. The agency were given a co-ordinating role and obviously, because of well known internal Cabinet strain and open conflict between the Coalition Minister for Education and Minister for Labour, it was decided one heady day last summer to appoint consultants. That was announced publicly — I read of it in the press — but that decision was reversed, I understand. The Minister shakes his head but I read it in the press. Subsequently this appointment was withdrawn, or not confirmed. The intended purpose, according to the report, was that the consultants examine the YEA with a view to deciding their co-ordinating role specifically. Perhaps those who were handling this decision went prematurely to the press and should not have done so so soon.

The ordinary working people are paying a 1 per cent levy. Nobody will complain if that is genuinely going towards the employment of youth, but we must remember adult employment also. There is a very strong need at present to examine both areas of employment and a moral responsibility. We all have in our constituencies, in addition to the sons and daughters who are unemployed, the mature person who has lost his or her job in the late forties or in the fifties who will have extreme difficulty in getting further employment. If the 1 per cent levy were being used to that end, that would be good, but it is not. This levy was introduced in the 1983 budget by the present Minister for Finance and was retained by him in the recent budget. Here we have the Youth Employment Agency established for political reasons, to which I gave my blessing and support in the interests of young people. The Minister of State must know that it has not made the progress or had the impact expected of it. There are tensions in many of the areas in which it works. One must ask is this idea of other agencies, task forces and committees the answer to the nation's problems? I suggest that it is not.

I want from the Minister a commitment to the enterprise allowance scheme and to its extension impressing on the Minister for Finance why it must be extended. The Minister was very critical a little over a year ago of the manner in which the agency money was allocated, but I want him to outline how much of that 1 per cent levy of this year was allocated directly to the use of the Youth Employment Agency and in what areas of expenditure.

The Deputy has five minutes.

Can somebody spell out to me what are the steps, action and plans of this Government in the area which is most important to all of us? There are 215,000 idle, certainly on the way towards a quarter of a million people; in manufacturing industry the number of unemployed is 196,000 people — every thousand extra on social welfare costing in the region of £2½ million. These are the stark realities. What answers are being provided at present? I suggest none. I referred earlier to the joint policy for Government and the famous comments in the Labour Party document and in the Fine Gael document. I have been reluctant to refer to my own area, which particularly during the present time is going through a very traumatic period, especially for the young, and where there is a growing need for Government action and response. How do the Government respond? With another task force, although it will be welcome if it produces results. We have so many agencies, task forces and committees that soon we shall not see beyond them to where the real problem lies.

The Minister of State must be aware that the real problem lies in those who are unemployed at present, adult or young. They deserve better from this Government who have a responsibility to face the task handed over to them and assumed by them 14 months ago. To date, they have handled it badly. No amount of public relations and no expenditure on handlers by way of direct payment, expenses, or anything else will compensate for what is expected of the Government — the provision of jobs.

How many jobs have been created by the Youth Employment Agency? How many applications have there been under the enterprise allowance scheme? How many have been accepted and how many are outstanding? What other plans have the Government as a matter of urgency, because this surely is an emergency? The Government must stop waffling, claiming credit for halving the growth of something which would be already miles too high even if it were reduced to one-tenth. The growth in the month of February of 7,500 is the highest growth rate for that month since records began. That is the stark reality. I ask the Minister and the Labour Party to withdraw the amendment which is before them and to accept our motion:

That Dáil Éireann deplores the failure of this Government to produce any policies to create new employment opportunities particularly for young people.

The Deputy has one minute to conclude.

Halving a rate of growth is not progress. We want to know what the Government intend doing to fulfil the promises made so glibly 14 months ago. If the Labour Party or the Fine Gael Party have nothing better to offer to our unemployed, adult and youth, let them step aside and let those who have a greater care and concern for the ordinary people take over the reins of Government.

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute:

", while greatly concerned at the continuing high level of unemployment and in particular its impact on young people, notes that the rate of growth of unemployment has been halved since the election of the Government in December, 1982 and approves the actions and plans of the Government which, in conjunction with an adequate response from every section of the Community, will provide the necessary framework to combat unemployment successfully."

Not the least interesting aspect of this motion is its timing. Last Wednesday, The Irish Times published an opinion poll showing the Opposition languishing in some difficulties. Last Friday, the Opposition spokesman on Labour tabled this motion. Perhaps that is a coincidence and perhaps not. One could speculate as to the origin of this motion. One can see it now. The centurions of the legion of the rearguard assemble on the fifth floor, and in struts the boss to review the progress on the opinion poll. “We are in trouble on the opinion poll. What are we going to do?” The collective wisdom of the centurions is “Unemployment. They must be vulnerable on unemployment. Unemployment is still going up”. “Put in a motion on unemployment,” suggests the boss. One can even speculate how Deputy Gene Fitzgerald might have responded to such a suggestion. “A master stroke, boss, it is only yourself could have thought of it”. That would be the suggestion from the centurions of the rearguard.

The tone and attitude taken by Deputy Fitzgerald in this debate are strikingly different from the attitude taken by his party colleagues in the Seanad who debated similar motions. In the Seanad there was some attempt to grapple with the problem and to offer hope to young people who look to this House for leadership. On this occasion there has been nothing but platitudes and clichés. The speech we have heard from the Opposition benches, had it been delivered by a young county councillor hoping for a chance of the third place on the ticket, might have earned marks for effort. Made as it was by the Opposition front bench spokesman and former Minister for Labour, it deserves marks for audacity. Does Deputy Fitzgerald expect the House to forget that it is not so long since he occupied an office on the fourth floor in Mespil Road, that he did so between March and December 1982, that he took office when unemployment stood at 148,004 and left office when unemployment stood at 179,867, an increase during the seven-month period of 31,863 or 21.5 per cent? I do not think anyone will be fooled. People expect of us a little better than that. They expect us to approach this problem in a serious and rational way and together to offer some hope and some indication of where lies our way out of this morass.

It would be helpful to begin by attempting to identify the sources of our present problem. Basically these sources are four in number. We have an international recession and we have an increase in the labour force. There has been a decrease in competitiveness through the increase in labour costs. Constraints have been placed on us by the state of public finances, constraints on our capacity to finance job creation measures on the scale we would wish.

Let us look briefly at each of those four factors. The impact of the international recession can be seen by the fact that unemployment in the EEC has risen in virtually unbroken sequence since 1972. The growth in the labour force is capable of being measured very accurately because those who will be entering the labour market between now and the end of the century are already born. The best estimate we have is that during this period there will be an increase in the range of 18,000 to 20,000 a year. Our ability to maintain people in jobs or to create fresh jobs is directly related to our ability to sell Irish goods in the supermarkets of Croydon or Finchley or the supermarkets of Donaghmeade or Cornelscourt. In the twenty-third round it is true that most of the settlements were responsible and took account of the capacity of the companies involved to pay and of our capacity as a society to bear the cost. There were some examples of very unfortunate capitulation, some from those who in the past had been amongst those most assertive in a position or moral superiority. Regarding public finances, the resources are not available to us to expand the economy or finance the kind of job creation measures we would wish.

Everybody in this House must accept that our ability to reverse the trend in unemployment depends upon a sustained growth rate. The Government's economic strategy has as its central objective the creation of conditions in which employment will be available to our people and the weaker sections of the community will be protected. It has become fashionable from the benches opposite to dismiss us as being concerned with book-keeping or whatever. Our entire economic strategy is designed to achieve that central objective — the creation of employment.

This debate takes place at a time when the economy is delicately balanced. The severe measures of last year's budget have begun to produce buds. Our industrial exports grew by about 14 per cent in volume in 1983. Agricultural exports were up 3 per cent and manufacturing output expanded by about 6 per cent. Our inflation rate, which had been out of control, has been curbed.

What is the expected figure?

On the public finances front, borrowing, particularly foreign borrowing, has been reduced.

(Interruptions.)

The growth in public expenditure which has been at the core of our fiscal problem has been checked. It is not without interest that it is Deputy Reynolds who intervenes at this stage. I can well imagine how Deputy Fitzgerald would be reluctant to engage in any examination of the state of the public finances, give his own rather inglorious contribution to our present condition.

(Interruptions.)

Now more than ever it is absolutely essential that the search for self-sustaining employment is undertaken against a backdrop of appropriate economic planning and that is central to Government policy. The Government respond in the short term, the medium term and the long term. In the short term the National Planning Board has been established, comprised of a small number of experts of the highest possible national repute. As the Taoiseach today asserted in the House, the alleviation of unemployment is one of the main objectives of their report, now in course of preparation, which will be before us by early March or early April.

Deputy Fitzgerald has referred to the activities of the task force of key economic Ministers and dismissed them. He then spent a substantial portion of his time congratulating them on their wisdom in producing the enterprise allowance scheme. I will not satisfy Deputy Fitzgerald by telling him what the Government intend in that regard. I suggest that he could do worse than read the budget speech of the Minister for Labour, Deputy Quinn, if he wants some indication. In any event, the Minister will be intervening later in the debate.

He does not have money to allocate.

The IDA continue to be in the forefront of our job creation strategy. Reference was made to a change of emphasis. With regard to overseas industries, the IDA have been properly concentrating on the attraction to Ireland of high technology, electronics, the health care area, chemicals, but at the same time they are actively pursuing a policy for the development of our existing domestic industrial base and a major part of that effort is directed towards the development of small native industries.

The Government — they have done this in common with all our partners in the OECD — have taken a number of selective measures in the manpower area, particularly in the area of training, work experience and temporary employment schemes. In that context I was interested to hear Deputy Fitzgerald refer to The Way Forward because I understood that document had more or less been publicly burned at this stage. I was glad to hear that it has not been because The Way Forward suggested targets in a number of areas, some of which have now been forgotten. One of the areas it addressed itself to was the participation rate that was expected in the various temporary employment and training schemes. It asserted with some confidence at page 107 that in 1983 30,250 young people would participate in one or other of those schemes. The House will be interested to know that that figure of 30,250 was bettered and that in fact 34,633 young people participated. Let it be said that is on the basis of comparing an actual achievement as distinct from a projected target.

It goes to show that our planning was so good.

In 1984 what progress did they propose to make? They were going to increase their participation rate from 30,250 to 32,400. This year we will achieve a participation rate of 41,300, a 27 per cent increase on the targets set, never mind achieved by the party opposite. We have not been satisfied simply to increase the participation rate because that is not an answer in itself. We have been determined to improve the quality of the experience available to the young people participating in those programmes and to ensure that those programmes are targeted at those most in need, those who can be objectively determined as being the most disadvantaged. That has been done with the assistance of the Youth Employment Agency.

I want to turn my attention to the area of entrepreneurial development. It is recognised that in Ireland young people find special difficulties in establishing their own business. For example, they are said to have a lack of experience, a lack of a proven track record and, therefore, they have difficulty in getting access to State or private funds. They also have insufficient personal finance to put into a business. At the same time, with high levels of youth unemployment prevailing and access to traditional salaried employment more restricted, more and more young people in Ireland are considering, and are being invited to consider, self-employment as a career option. It was graciously acknowledged by Deputy Fitzgerald that the recently introduced enterprise allowance scheme had a very large response and provides the basis for many unemployed people, including young unemployed people, to find productive self-employment, something that would otherwise be denied to them. I have already indicated that that is an area which I expect the Minister for Labour will be developing at greater length tomorrow.

Where is he tonight?

Representing the country at a conference on employment and job creation. In addition to the published range of supports and incentives available from the IDA, other State organisations and private finance agencies, there are a number of measures and incentives particularly designed to help young people. There is, first of all, the innovatory job creation projects. A number of pilot schemes are supported by the Youth Employment Agency including schemes in Cork, at Carrigtwohill, in Dublin at Glasnevin and in the mid-west.

How many jobs did the Minister say?

The Carrigtwohill and Glasnevin schemes, the youth enterprise nursery scheme and the mid-west scheme and the youth enterprise Shannon scheme are supported by the European Social Fund. The latter is a specific ESF pilot project. Through those job creation projects young people are given intensive assistance in areas such as business and skilled training, project evaluation and guidance, administrative, technical and financial support. These schemes are in progress at present.

How many jobs did the Minister say?

It is very curious how Deputy Fitzgerald never finds it possible to use Question Time but he is always eager to avail of any other time that is available in the House. These schemes are in progress at present and will be evaluated once completed with a view to determining their wider application. There is also the community and youth enterprise programme aimed at directly involving community, voluntary and youth organisations in creating economically sustainable employment for young people and raising the general level of enterprise and self-help among young people. The approach of the programme is essentially to help communities to help themselves and to do that by providing, first of all, advice to groups who want to take a community enterprise initiative. There are planning grants for groups wishing to identify and investigate goods and services which might be provided locally. There are enterprise workers recruited by local community groups to be funded by the Youth Employment Agency for up to 12 months. The enterprise workers must be under 25 years of age and must have been unemployed prior to being recruited. There are linkages into that programme and grant aid schemes and other State and commercial activities, direct financial aid for groups at the point of starting, specifically to contribute towards capital and revenue requirements and project management costs for up to 12 months. The agency have already provided funding for the employment of enterprise workers.

How many jobs?

A number have already been recruited and after being recruited go on to complete a nine-week training course in the National Institute for Higher Education in Dublin. In a number of other cases planning grants have been approved already. The youth self-employment programme is designed to assist unemployed young people who want to set up a business by enabling them to get a bank loan without security or without being able to establish a track record.

The Youth Employment Agency guarantee 60 per cent of outstanding capital payments on individual loans offered under that programme. The loans are being provided by the Bank of Ireland up to a maximum of £3,000 per person repayable over three years at the normal bank lending rate and subject to normal repayment conditions. A condition of the loan is that recipients cease to draw unemployment benefit or assistance and that they register for VAT and pay-related social insurance.

On the broader issues of long-term risk capital I want to draw the House's attention to the comments of the Minister for Finance in his budget speech. It is believed that specific tax encouragements are desirable. Investment is urgently needed, particularly to support an expansion of activity in small manufacturing industry which has proved to be a valuable source of employment. It is proposed to allow income tax relief up to a specific ceiling each year for individuals who provide long-term risk capital for new manufacturing enterprises.

There are, in addition, job creation programmes which are funded, though not operated, by the Youth Employment Agency. The first of those is the young scientist and technologist employment scheme. This is designed to promote the employment of young people with science and engineering qualifications and to assist firms to increase their technological capabilities. The scheme is run by the Institute for Industrial Research and Standards and the National Board for Science and Technology. In 1983, the first year of the scheme, 80 engineering graduates and diploma holders participated. The second scheme I want to refer to is called Marketplace and is operated by the Irish Goods Council. It was launched in the latter half of 1983. It is a job creation programme for young marketing graduates with the objective of encouraging companies to employ marketing graduates by providing them with grants of up to 60 per cent of the salary in the first year. The only condition for interested companies is that they give an assurance of their intention to retain the executives at the end of the one-year period. Already a number of young people have found employment under that scheme. All of those opportunities for young people complement the extensive help being provided through vocational training and employment schemes as well as the wider range of activities of the Youth Employment Agency to which my colleague, the Minister for Labour, will address himself tomorrow.

Clearly relevant here is the whole area of our entitlement to participation in the Social Fund. On the question of the European Social Fund, following its recent review it was agreed that at least 75 per cent of the total credits available would be allocated to operations for young people under 25 years of age. The guidelines for the management of the fund are laid down by the Commission and are reviewed annually. The draft guidelines, however, provide, firstly for the operations immediately after the end of full-time compulsory education to further the employment of young people under 25, consisting of basic vocational training including work experience leading to a real prospect of stable employment in a framework of a programme lasting a total of at least six months; secondly, operations to further the employment of young people under 25 whose qualifications have, through experience, proved inadequate or inappropriate, consisting of full-time or part-time vocational training aimed at equipping them with higher skills and qualifications adapted to labour market developments, facilitating the introduction of new technology in particular and leading to real prospects of stable employment; thirdly operations concerning recruitment to additional and permanent jobs or concerning employment in projects for the creation of additional jobs which will fill a public need. The programmes for young people under 25 at present being carried out with fund assistance in Ireland will continue to benefit under the rules of the new fund.

Ireland has maintained its position as one of the six super-priority regions within the Community. Those are the regions to which 40 per cent of the fund is to be devoted and the regions which qualify for aid at the rate of 55 per cent.

It is appropriate before concluding that I should refer to the whole question of co-ordination in the area of Manpower training and education services. This area has received considerable attention in the past year. Some people have argued that, due to the rapid expansion of youth programmes and other job creation measures, the area of responsibility within the education world and the world of training has become somewhat blurred. There has been a degree of uncertainty about the role of the Departments of Education and Labour and the Manpower authorities vis-à-vis the overall context of youth education and training. Following the Government's concern over the perceived duplication and overlap in those areas, it was decided in December of last year to appoint me to be Minister of State at the Department of Education and at the Department of Labour with additional responsibility — more specifically responsibility for co-ordination of education and training. Since then the Government have considered the matter further and it was decided that I should, in conjunction with the Ministers for Education and Labour, prepare a number of agreed recommendations as soon as possible. The areas to be covered would include the various Manpower authorities, for example, the NMS, AnCO, YEA, CERT and other agencies as well as certain sections of the Department of Education. Already I have been in contact with a large number of relevant organisations requesting their views and comments on this whole question of co-ordination. My examination——

How many jobs?

——which I hope to complete within three months will also take into account the NESC consultancy report on Manpower policy which is currently under way and which will provide me with additional insight. I expect and hope at the end of this exercise, having had the assistance of all the bodies and agencies concerned, that it will be possible to provide the State with a more efficient and cost-effective delivery of services and programmes in the area of education, training and manpower.

One area that has not been touched on in this debate but which is of some relevance is the whole area of State support for the voluntary youth sector. When we took office, it will be recalled, the Estimates of expenditure had been published by the outgoing administration. Those Estimates showed the scant regard in which the voluntary youth sector was held by that Government. They provided for an increase of 1 per cent in State support to that area. We entered Government with a commitment to regard that area as a priority and we delivered on that. Last year——

How many jobs?

——it was possible to increase the Estimate originally provided for by the outgoing administration by £550,000 at a time when the people most immediately interested in the National Youth Council had been seeking an increase of only £500,000. This year it has been possible to increase that purse further and the Estimates published provide for a 13 per cent increase in the grant-in-aid subhead. In addition to that it was possible to provide a further £100,000 in the budget aimed at those dealing with disadvantaged young people, specifically disadvantaged young people in major urban areas. This is directly relevant to what we are talking about. Deputy Fitzgerald has been mumbling on a few occasions about how many jobs.

I have not been mumbling. I asked a question.

Perhaps I can end my speech by telling Deputy Fitzgerald and the House a story of a visit that I made quite soon after my appointment. It was to the Limerick Youth Service which is under the charge and control of Sister Joan, a nun who, personally and almost single-handedly, directs and takes responsibility for their activities. She saw a serious problem of youth unemployment in Limerick and she was dealing with those worst affected and hardest hit. Many of them came from broken homes and all of them came from areas with unemployment rates above the national average and, indeed, above the city average. Some of them had been in trouble with the law. She determined for herself to do something about it. She identified the fact that her youth premises was in an area of office buildings and she decided to employ two or three young people making sandwiches for workers in those offices and so found work for two or three young people. Taking it a step further, she opened a canteen providing lunches for those office workers, and that was work for three or four more. She did not leave it at that. She thought of the many other voluntary organisations and community groups in Limerick all of whom must require to have printing done, so she got herself a printing press and two or three people are employed in that. The net effect of that one nun's determination and commitment is that 80 young people have now found employment in Limerick, not all of it of a permanent nature it is true, under her auspices. That kind of drive, selflessness and commitment is what this country needs and we must all address ourselves to sparking that if we are to make real progress in eliminating this scourge.

Well done Sister Joan. What about the Minister of State?

This House would be better served if we all addressed ourselves to the question of how we can spark that kind of initiative rather than engaging in destructive self-recrimination.

I listened attentively for about 29 of the 30 minutes of the contribution of the Minister of State to hear if he had any new plans, programmes or strategy to combat this social cancer that is afflicting the country. He tried to give us a lecture and his presence fairly represents the type of commitment the Government have to tackle unemployment in general and youth unemployment in particular. The Minister concluded his contribution by telling a story about Sister Joan in Limerick but I can tell many stories in a similar vein about a sister, who shall remain nameless, in the town of Granard who has done equally as good. However, the 69,000 young people want to know a little more from the Government. In an effort to find out what the Government intend doing about unemployment we tabled a motion drawing attention to the lack of commitment and concern by the Government in the area of youth unemployment contrary to what they misled the people to believe in the last two general elections.

In our constructive role as an Opposition we tabled this motion but the first response from the Government by the Minister of State did not leave me any wiser than I was before he commenced. Indeed, the young people who were anxious to get an answer or a direction from the Government will be amazed also. It strikes me that the Government do not know where they are going. There is an old saying that if one does not know where one is going any road will get one there and that is in line with Government thinking. The Minister told us tonight that the unemployed can have a little bit of this and a little bit of that, a bit of this scheme and a bit of that one, but he was not able to project the impact the schemes he mentioned would have on the unemployment problem. When the Minister calls on the House to give a commitment the first thing the people outside are entitled to ask for are the facts, not fairy tales. The Minister should deal in the truth of those facts and he should not try to continue to mislead the public as to what they are about and what the Government think they are doing. We are aware that the Government have at their disposal one of the best propaganda machines going, but all the propaganda in the world will not hide the reality that there are at least 69,000 young people who do not know where they are going. The Government, if they continue to misrepresent the facts and mislead the young people, are only fooling themselves at the end of the day.

The Minister of State told the House that foreign borrowing had reduced. I wonder why he is trying to convince anybody about that when we are all aware that foreign borrowing for 1983 increased by £100 million. That information came from the Department of Finance, and I wonder why the Minister has tried to mislead the country on those figures. The Minister's contribution was nothing more than "more of the same". The Government since they took office have sacrificed our young people and the unemployed on the altar of political expediency. They have refused to take the decisions they know are necessary in our economy. They have preached financial rectitude but practised the opposite. They tried to convince the people that they have not borrowed any money abroad and spoke about financial constraints, but I should like to know if they can tell our young people why the national debt increased to £2,900 million in 1983 without anything to show for it. Such serious questions are being asked by the unemployed because they cannot see any results. The Government should not try to con them into believing that they are not borrowing money. They should tell the truth, that they refused to take the decisions in the day to day running of the country but reduced capital spending because it is the soft option. The Government refused to take the hard decisions that are necessary and that is our real problem. When the Government decided to exempt the public service from cuts in spending they commenced their journey on the road to nowhere and will sink the economy further into the depths of disaster.

We now have 750,000 taxpayers and the balance of our population are totally dependent on them. The Government told us of giving relief in the area of taxation and they con the people into believing that they have got such relief, but when they get their pay packets next April they will know that those earning between £6,000 and £12,000 will receive in the region of 86p per week. If that amounts to relief the Government can have it. The Government have failed to show any direction in the budget. Since they took office they have failed to take any hard decisions. The greatest indictment of the Government is that when the screws came on in Barrettstown last July the Government took the soft option and put back into the Exchequer £11½ million voted for youth employment. The Government told us then that they did not know what to do with that money. I put it to the Minister of State that the YEA have lost their way. The are bankrupt in their approach to the problems they were established to solve. The Government are bereft of any idea as to where they should go. If they think that by trotting out more of the same tonight to our young people they will accept it, they are wrong. Our young people know they are being conned and the sooner the Government realise that the better. The Government should get down to reality and tell the facts. They should then get down to the job they were elected to do. If they do not want to do that job or feel that because of the compromise situation in Government between the two parties they cannot do it, they should step aside and let the people decide once again who they want to run the country.

The first approach to any problem is to analyse the depth of it and quantify it. I do not believe that the true figure of young people unemployed is 69,000. I do not think anybody else believed it. The official figures state that 69,000 young people are unemployed but I reckon that approximately 11,500 young people who are living at home with their parents do not qualify to be on that list because of the regulations. That depresses the real figure. How many thousand young people are engaged in temporary employment, whether it is youth employment, employment incentive schemes, environmental works or training? How many of them will get real jobs when they finish? In addition to the 80,000 young people I reckon are unemployed I can add at least 20,000 young people who will be unemployed when they have finished the various training courses.

How many young people have decided to stay an extra year at school because they do not see any hope of getting a job? Many thousand young people who pursued night courses cannot get jobs and are following full-time day courses in an effort to equip themselves for a job in the future. Have we any statistics to tell us the true figure? Are those unemployed categorised into different areas? If we get those statistics we will be able to quantify the problem and prepare a plan to tackle it but those statistics do not exist. From a bureaucratic and Government point of view it is useful not to produce them. It is nicer to cloak everything in a "mumble jumble" of figures so that nobody can grasp what the real position is. There is no point in trying to con young people or their parents who have been left without hope for the future. Parents do not even know which way to direct their young people.

The Minister of State would have us believe that the Government are worried about young people. What did they do? First of all, the Minister for Education did away with career guidance in schools with fewer than 500 pupils. If ever schools needed career guidance it is those with fewer than 500 pupils. For this, she will save the princely sum of £440,000. Another Department handed back £11½ million to the Exchequer from the employment levy. Could they not have told the Minister for Education: "Here is £440,000 and keep the career guidance courses in schools"? These courses are needed now more than ever because of the scarcity of jobs and the different components in employment these days. We all know that the £11½ million was handed back to the Exchequer so that the Government would not have to take hard decisions in Barrettstown in July when they met there and when they should have been taking the decisions to make some impact on current Government expenditure.

They have tried time and again to get the public, and anyone here foolish enough to believe them, to think that they are reducing current expenditure when in fact it went up by something like 14 per cent last year. The budget has put it up 10½ per cent this year. They speak of the expenditure deficit reduction as a percentage of GNP. We all know that GNP cannot be compiled this year: it will be the end of 1985 before some of it can be compiled, and before the job is completed it will be towards the end of 1985 or into 1986. Yet the Minister for Finance and the Taoiseach would like us to believe that they will reduce the current budget deficit by a percentage of GNP. If they give us facts they might get some response from ordinary people.

The Government need a response, but until they can manage proper leadership and motivation they will not tell the people the truth. People should not be misled with propaganda, but if the Government told the truth they might get the people to go along with them.

I listened carefully to the four headings the Minister of State emphasised when talking about constraints on the Government in regard to solutions for our problems. I said at the beginning that we need to analyse the problems, to categorise the different sectors of the community and then to set about solutions. I will deal with that later. At the moment I will deal with the four constraints the Minister spoke about. First, he spoke about recession. When will we hear the end of the recession as a cause of our problems? Deputy Gene Fitzgerald referred to The Democrat and its assertion that the recession is over — it was up, up, up and away with the economy. Yet the Minister of State comes in here to tell us that the recession is the major problem. The recession will always be the major problem here until we elect a Government who know the way out of recession and who are prepared to put us on the right road out of recession.

Last week I heard the Taoiseach and the Minister for Finance saying there is light in the tunnel. I asked them last week if they were sure the light is not of another train coming from the opposite direction. The Democrat, their paper, tells us it is up, up and away with the economy. The Minister tells us our primary problem is the recession and that we can do nothing about it. I will tell him later how he can do something about it.

His second complaint was about the growth in the labour force. Nobody can deny that there is a very big growth in the labour force, between 19,000 and 20,000. Then we come to the great long-playing record of the Government since they came to power, that is competitiveness. I am sick and tired of this being trotted out from over there. I am sure the Taoiseach and the Minister for Finance and the Minister of State read the OECD reports. A recent report spells out clearly and unequivocally what the position is, and they indict the Government completely for our lack of competitiveness. The Government have been talking about a drop in earnings. During the past ten years we have had a real drop in earnings for the workers. The drop has been 4 per cent or 5 per cent in real earnings. The real reason, as spelled out by the OECD, for our lack of competitiveness is Government taxation, direct and indirect. Do not try to con people into believing that it is the workers who have created the problem of uncompetitiveness. They have not. It is Government taxation, direct and indirect, that has caused our lack of competitiveness.

Anybody who denies that is only codding himself.

The Minister of State spoke about the increase in exports. Did he ask himself where this has come from? It comes from three areas, agriculture, pharmaceuticals and computer electronics. Are we to have a major surge forward in agricultural exports this year? We do not know, and we will not know it until the Minister for Agriculture finishes in Brussels, but from the way he has begun and the way he is going now I am not so sure how he will finish up — well, I hope.

Of all the sectors in industry, we come back to pharmaceuticals and electronics as the two areas that have helped our exports because they represent factories coming on stream. The were established by the IDA in the last couple of years. Now we must ask, how many were established in 1983? I have not heard any magical announcements from Deputy Bruton in the last 12 months. He admitted to me in the House the other day that the financial pipeline to the IDA is dry because international investment is not there.

Therefore, the Government should not rely on the huge lift in exports this year or last year from the two areas I have mentioned. Future supplements to those will not be there. The Government have told us investment is not there. The target of the IDA is 1,000 manufacturing jobs per year: only 1,000, with the labour force increasing by 19,000 to 20,000, with job losses the whole time. That is the target, yet the Government speak of the IDA as making a major contribution.

The IDA have spent a lot of money, and did a good job for the country in the last 10 years, but any Government who would accept from them a target of 1,000 jobs a year at a time when 215,000 people are known to be unemployed, will have to look elsewhere. We must look elsewhere, because the IDA cannot do the impossible. We must look at our own resources, and here I will come to the Minister's fourth point, labour costs. In Ireland labour costs vis-à-vis those of the EEC, including social contributions, etc., are 40 per cent less. It is not labour costs that are our worry but productivity as a return for what workers are being paid. The Government, instead of complaining about labour costs, should be matching productivity with the money being paid out.

We welcomed foreign industry in the past as we would in the future as a contributor to the solution of our unemployment problems, but in the end our problems can be solved only by ourselves from now on. We may get contributions from outside but we must start to plan our own salvation. But the Government have not got a job creation strategy.

Debate adjourned.
Barr
Roinn