Vol. 394 No. 2
asked the Minister for Labour if, in light of his comments in a recent interview (details supplied) in which he criticised the failure of employers to create jobs, he intends to convey these comments directly to the employer organisations; if it is intended to review Government job creation policies; if it is intended to make any changes to the Programme for National Recovery; and if he will make a statement on the manner.
42.
asked the Minister for Labour if he will make a statement assessing the contribution to job creation by the private sector; whether he is satisfied with such a contribution; the number of new jobs created; the number of jobs lost in the private sector for each recorded period for which figures are available during (a) 1987, (b) 1988 and (c) 1989; the new proposals he has to secure new net job creation in the private sector.
60.
asked the Minister for Labour having regard to the comments made by him in an interview (details supplied) in which he strongly criticised private sector employers for their failure to create additional jobs despite the favourable conditions created for them under the Programme for National Recovery if any changes are planned in the Programme for National Recovery as a result; and if he will make a statement on the matter.
I propose to take Questions Nos. 11, 42 and 60 together.
The Government recognise the contribution made by the private sector to the process of job creation over the past two years. According to the latest labour force survey, total employment in the economy increased by 10,000 between April 1987 and April 1989. When allowance is made for a decline of 20,000 in public sector employment over the same period, continuing job losses in agriculture and a lower intake into FÁS employment schemes, it can be seen that there has actually been a net increase of 35,000 in non-farm private sector employment. This contrasts sharply with the trends of previous years which saw a decline in total employment of 76,000 between 1980 and 1987.
While no comparable figures are available for the number of jobs lost in the private sector between 1987 and 1989, an encouraging indicator of trends in this area is the fact that there has been a 41 per cent reduction in notified redundancies during the first ten months of 1989, compared to the same period in 1988. Up to the end of October 1989, there was a total of 11,546 redundancies notified to my Department. This compares with 23,037 notifications in 1988 and 24,090 in 1987. These figures suggest that the net effect of new jobs created in the economy during 1989 is likely to be significantly stronger than it was in either of the past two years.
The Programme for National Recovery continues until the end of next year. Most wage settlements and the agreements associated with the programme continue well into the following year. The programme represents an agreement and commitment on the part of all the main interests in our society. I believe the programme has provided substantial benefits from the point of view of the parties. It provided stability for the economy in general and for employers in particular. It has at the same time, coupled with tax concessions, protected living standards and provided substantial improvements on the employment front. There is, therefore, in my view, no option but to continue on the same path. It is, however, premature at the present time to speak of further negotiations. What must be done now is to review the present programme and its achievements so that all the parties can objectively see the benefits that have accrued. Work along these lines is under way.
The Government, for their part, are determined to do all they can to help facilitate greater employment growth in the private sector. The major contribution which the Government can make is in maintaining the existing favourable economic climate and the existing range of incentives to employment creation, improved where necessary. The range of incentives has recently been extended. with the introduction of a new PRSI exemption scheme and an increase in the subsidies payable on the FÁS employment incentive scheme for certain categories of unemployed persons. Both these initiatives can, I believe, make a substantial contribution to employment growth in the private sector over the coming year.
Can I take it from the Minister's response that he has changed the strong views he expressed about the failure of the leading companies in the private sector to contribute adequately to job creation? I want to refer the Minister to a reply given by the Taoiseach yesterday when he spoke about the success of inviting in the heads of the semi-State companies. Does the Minister have any plans to invite in representatives of, say, the 50 leading private sector companies which I think in the view of most, if not all, Deputies is completely inadequate? Would the Minister agree that it is likely to be insufficient to merely talk to them and that some measures, like those advocated by the Congress of Trade Unions, such as changes in company law, award those who create jobs in this economy and punish those who export profits, are now overdue?
I have not changed my mind. As the Deputy knows from numerous speeches I have made in the past six months I am covering the overall employment position. I know that small employers, co-operatives and the selfemployed sector are doing their utmost in regard to job creation and I suppose many larger industries are trying to maintain and increase the number of jobs.
With regard to large companies I still strongly hold the view that given the high profits, high growth rate, high exports, the favourable climate and PRSI incentives, such as the employment incentive scheme, they could substantially increase the number of jobs. Anything I have said recently was said in an effort to remind them of the commitment I believe they have under the Programme for National Recovery.
With regard to the second part of the Deputy's question, I recently addressed the FIE conference and I hope in a matter of days to meet the senior people from the employer sector to discuss the employment aspect.
At a time when the financial institutions and the Stock Exchange are awash with money would the Minister consider that perhaps the time has arrived to reconsider the amount of taxpayers' investment which should be allowed to the private sector in the form of tax breaks and various grants and subsidies?
As the Deputy knows this issue is being discussed and was mentioned in the public arena following the meeting between the Government and the Irish Congress of Trade Unions. It was part of the proposal the Congress of Trade Unions put to us. The Government have given an undertaking to look at this area in addition to several other areas and there will be a further meeting in January with the congress. I can say no more until that stage.
Question No. 13, please.
May I ask a final supplementary?
Order, next question please.
May I not ask another supplementary?
Sorry, Deputy Rabbitte, time is almost exhausted in respect of Priority Questions and there are still two remaining questions.
Can I ask a final supplementary to the effect that——
Deputy Rabbitte, be fair.
