I move: "That the Bill be now read a Second Time."
We had a very useful and wide ranging discussion on the provision of manpower services during the Second Stage of the National Employment and Training Authority Bill last November. Deputies will recall that there was general support for the basic principles of the Bill. A number of Deputies, including myself, however, expressed concern over the inclusion of CERT.
When I became Minister for Labour in March, one of my priorities was to examine the Bill in the light of the comments made during the Second Stage debate. I also had discussions with the boards and chief executives of the manpower agencies.
Following this examination I have decided, as I announced in my Estimates speech, to omit CERT from the new body. This decision takes account of the Government identification of the tourism sector as an area with great growth potential. It would be unwise at this juncture to change the status of CERT at a time when we are relying on the continued success of their efforts. CERT will, therefore, retain their present status as a limited company accountable to, and reporting to, the Minister for Labour. The omission of CERT is the major change from the 1986 Bill. Parallel with this move I have initiated consultations with a view to securing a substantial increase in the financial contribution of the industry to CERT and I have set a target figure of up to £0.5 million for 1988.
The major provision in the Bill before the House is to establish An Foras Áiseanna Saothair through the amalgamation of AnCO, the National Manpower Service and the Youth Employment Agency. These three bodies have served the country well and have contributed to the expansion of jobs and the reduction of unemployment. In 1987, AnCO will train about 35,000 persons; the National Manpower Service will place 27,750 on employment schemes: and the Youth Employment Agency will assist about 5,000 persons in addition to its research and co-ordinating role. The proposal to merge the bodies is prompted by the need to provide the best service possible for the public and to avoid the confusion and role duplication that has existed in recent years.
The main functions of An Foras are set out in section 4 of the Bill. These are essentially the same as those in the original draft. They include the operation of training, re-training, work experience and similar manpower programmes, the provision of placement and guidance services and support for co-operative and community-based enterprises.
The board of An Foras will consist of 17 members, including the Chairman. In deciding on the composition of the board, the conflicting objectives of having bodies which are active in the labour market represented on it had to be reconciled with effectiveness and efficiency. The achievement of this latter objective has, of necessity, meant a level of representation for many interests below what they would consider desirable. The board of An Foras will be appointed by the Minister for Labour. The board will consist of four representatives nominated by the ICTU; four representatives nominated by employer organisations; one representative of educational interests; one representative of social welfare interests; one representative nominated by youth organisations; two representatives of the employees of An Foras; and one representative from each of the Departments of Finance and Labour. In addition, the Minister will appoint the Chairman and one other representative. I have included a Department of Finance representative in order to better link the operations of An Foras with macroecomomic policy.
The Bill also empowers An Foras to undertake consultancy work overseas on a commercial basis in line with Government policy. This is likely to be an important feature of the new body's activities in the years ahead, by enabling them to take commercial advantage of their considerable experience and technical expertise and to make better use of their resources to increase their income.
Over the past few years AnCO, in particular, have identified commercial possibilities for the export of their training expertise. AnCO's reputation as an effective and professional training organisation has borne fruit in a number of overseas contracts for consultancy work and training. Most recently AnCO were successful in securing a major sub-contract, worth about £4 million, for a £20 million World Bank project to improve the organisation and standards of training in Indonesia. Overseas contracts for training and employment schemes will be handled by a subsidiary company which will be set up under section 4 (6) and 4 (7) of the Bill.
The Bill provides, in section 25, for the abolition of the upper age limit of 25 years in the use of the youth employment levy. Under the Bill the levy can be applied to any group or category, regardless of age, which happens to be particularly hard hit by unemployment. This will give An Foras more scope and flexibility in responding to labour market developments and in catering for the needs of their client population.
Changes in our manpower agencies will not of themselves solve the problems in the manpower area if the Minister and Department of Labour do not take on the enlarged role of formulating, co-ordinating and evaluating policy that was envisaged in the White Paper on Manpower Policy. The NESC Report on Manpower Policy made a valid criticism of Irish legislation governing the activities of State bodies. NESC urged that the legislation is very specific and detailed in relation to financial provisions, but completely ignores the question as to how the Minister or the Department might influence the activities of these bodies in the context of overall policy.
I accept that we have been weak in positioning our manpower services within a broad general economic and social framework. There is a relationship between our training programmes and what is done within the educational system. There is a connection between the payment of unemployment compensation and assistance being given by the National Manpower Service to the unemployed. Training activities make a major contribution to the development of industry. The only logical way to achieve a proper relationship and interface between our manpower services and economic, social and educational services is for the policy function to rest clearly with the Minister.
It is important, however, to strike a proper balance between, on the one hand, exercise of effective policy and financial control by the Minister and, on the other hand, allowing the management of An Foras to get on with the job. The Bill, as originally drafted, contained some provisions which attempted to achieve this objective. Following an examination of the Bill, I have, however, strengthened the powers of the Minister in section 12. The changes which I have made help to clarify and best give effect to the policy role by requiring An Foras to seek the approval of the Minister and the Minister for Finance for their future plans. This still leaves An Foras with a considerable degree of flexibility in conducting their day-to-day operations within the prevailing agreed policy framework. Section 12 provides for this. An Foras will, of course, contribute to policy making by the Minister through the giving of advice based on their knowledge of the labour market and the operation of programmes. Under section 17, the Minister may give a direction to An Foras to carry out, or not carry out, specified activities.
The tasks facing An Foras Áiseanna Saothair are formidable and challenging. We have nearly a quarter of a million unemployed and our labour force is increasing despite migration. One of the features of the steady rise in unemployment has been the growth in the numbers unemployed for more than a year. In the period 1979 to 1986, the proportion of the unemployed accounted for by long-term unemployment increased by 13 percentage points from 32 per cent to 45 per cent. This increase has been concentrated mainly on over 25s and older workers. Older workers in many cases find it difficult to compete for available job vacancies with better educated and more adaptable young people coming into the labour market. Prolonged unemployment and lack of work experience lead to financial hardship, skill obsolescence, demotivation and personal demoralisation.
Assistance for the long term unemployed and the unemployed generally is now being provided in a systematic way under the Jobsearch Programme. The contribution of the manpower agencies to the programme is to interview 150,000 people currently on the live register; provide 40,000 manpower opportunities for them; and provide places for a further 12,000 persons on a four week Jobsearch training course specially devised and operated by AnCO. Generally speaking we are on schedule to meet our targets. The programme could not have got off the ground as quickly as it did but for the whole-hearted commitment and support of the staff in the manpower agencies.
Despite the increase in the numbers attending second and third level education and institutions, the numbers leaving school with little or no educational qualifications have been relatively constant over the past number of years at about 5,000 per annum. There is a need to assist these people through special labour market and educational interventions.
There is also a need to develop our workforce so as to increase the competitiveness which is essential to the future development of the Irish economy. This applies in the case of our managers, our professional and technological staff, first line supervisors and operatives. Our future development depends upon our people producing goods and services which we can sell in the world marketplace. The goods being demanded, the location of production units and the methods of production are changing at a rate that could not be envisaged 15 years ago when we entered the EC.
There is also a need to develop our small businesses and enterprises. The rapid increase in the numbers employed in the US has been attributed in no small way to start-ups in small amd medium sized enterprises. Our initial efforts here through the Enterprise Scheme, Start Your Own Business Course and the Community Enterprise Programme have illustrated the scope that exists for expansion in this country.
Another important function of An Foras will be the provision of pre-departure information and advice to persons contemplating employment abroad. Up to now this function has been the responsibility of the National Manpower Service under their obligations imposed by the EC regulations governing the free movement of workers within the Community. The amalgamation of the three bodies will ensure that persons trying to decide whether to go abroad or remain at home will be fully briefed on all the training and other opportunities available to them here so that they can make an informed choice. If, in the end, they elect to seek employment abroad, An Foras will provide them with the best information and advice at their disposal.
I mention these examples of the work of An Foras to illustrate that there is no shortage of work for the foreseeable future in the manpower area. The work will involve, to a large extent, face to face contacts between the personnel of An Foras and their clients. Technology will help in providing a first class effective service but, in the final analysis, we are talking about a labour intensive service doing valuable work for the community and the economy and offering job satisfaction to their employees.
The area of concentration in the work of An Foras will vary from time to time. For example, an observer looking at the work of AnCO and the National Manpower Service in 1970 could not have foreseen, first, the extent of the training and the employment schemes being mounted by these bodies today, and secondly, the relative shift in emphasis towards employment schemes. Mobility and flexibility will, therefore, be required on the part of the staff of An Foras. The provisions in the Bill dealing with arrangements for the transfer of staff from the three bodies to the new Authority are unchanged from the original National Employment and Training Authority Bill. It is my intention to safeguard the existing conditions of employment of all the people involved.
I realise that any major restructuring of existing manpower agencies in order to provide an integrated service could give rise to some apprehension on the part of staff in the existing bodies as to what the future holds. I am confident, however, that the work to be done will require An Foras to make full use of the staff resources at their disposal. I would see An Foras dealing with any imbalances in staffing as between their different services by deploying staff as required to the areas most in need. Given the magnitude of the tasks in prospect, I would not envisage any large scale dismantling of existing services but would see instead the adaptation of these over time to achieve a more regionally based integrated service. The prospect of continuing support from the European Social Fund should further help to underline the future for the development and maintenance of a wide range of programmes by An Foras, calling on the expertise, experience and adaptability of the staff of the existing services.
When speaking on the Bill last November, I expressed the view that the success of An Foras would depend on how well they catered for the needs of different regions and areas in the country. It is no good organising well at the top if such developments fail to achieve tangible improvements at the point of delivery. The Government stated in their Programme for National Recovery their commitment to the development of the manpower services on a fully regionalised basis. It is my intention that An Foras should move rapidly to the provision of services more effectively at local and regional level. This will also involve the development of closer co-operation with the appropriate education and social welfare systems. A greater degree of devolution of decision making to local level will lead to more flexibility and innovation which can only improve the services to the unemployed, school leavers, the deprived and the unqualified. My policy on the regional and local delivery of services, decision making and co-operation with other relevant bodies will be conveyed to An Foras under the mechanism provided in the Bill.
Finally, I come to the title for the new body. It is clear from what I have said that the new body are an economic development organisation with a major social orientation. It will be operating in a dynamic situation and will need to respond quickly and flexibly. I believe that the title which I have opted for An Foras Áiseanna Saothair, best describes the mission of the new body.
I commend the Bill to the House.
I have tried to save as much time as possible by reading my speech quickly. Earlier on I said I would require half an hour at the end of the debate to reply. It is necessary for me to take that time. I will limit myself to what is absolutely essential.