Vol. 398 No. 6
24 Mr. Rabbitte asked the Minister for Finance the specific steps which are planned to meet the commitment contained in the Programme for Government to increase job creation to at least 35,000 per year; and if he will make a statement on the matter.
There are several aspects to the Government's strategy to accelerate job creation and increase employment. Responsible macroeconomic management has been, and remains, a central element of that strategy. It is being complemented by continuing structural reforms and a comprehensive set of sectoral development plans. The programmes being implemented with the support of the European Community's Structural Funds will also contribute to that objective.
The Government's macroeconomic policies are designed to secure sustainable economic growth, which is the key to faster job-creation. Exchequer borrowing has been kept well within the targets established in the Programme for National Recovery and the 1990 budget emphasises the Government's commitment to adhere to responsible fiscal policies over the medium-term. In parallel, we are seeking to improve the competitiveness of the economy and to promote the expansion of its productive capacity. The income tax and VAT changes announced in the 1990 budget will reduce costs and inflation, further strengthen our competitiveness and help to underpin the pay moderation which is of such vital importance for job creation and the avoidance of job losses. The Public Capital Programme for 1990 is up by 20 per cent, which will help reinforce the strong recovery in private investment already under way, and contribute to a more efficient and competitive economy over the years ahead.
The success of the Government's economic strategy can be seen in the strong growth in output, in exports and in investment. These, in turn, have underpinned a recovery in domestic demand which also contributed to the improved employment trend. The substantial increase in the number of self-sustaining jobs is clear evidence that the Government's policies are working.
The progress report by the Central Review Committee on the Programme for National Recovery, published last February, shows that, to date, job-creation targets have been met. Over 60,000 jobs were created in the two years 1988 and 1989 and, as the report also indicates, the pace of job creation accelerated in 1989.
The Government, nevertheless, are ready to initiate additional measures, as appropriate, to complement their macroeconomic and sectoral policies, provided that they are within the framework of the present strategy. In 1989 and in this year's budget, a series of special measures was introduced, aimed in particular at stimulating recruitment and enhancing the employment prospects of the long-term unemployed.
I am satisfied that we have, in the Programme for Government, an economic strategy which is consistent with the objective of accelerating job creation and securing increased employment on a sustainable basis in the medium term.
The Minister did not state anything specific in his reply except that the Public Capital Programme had been increased. Will he comment on the fact that 60,000 jobs were created in the two years, 1988 and 1989, and that 60,000 people emigrated in those two years whereas the unemployment figure fell by only 6,000 to 8,000? Where have all the unknown people come from to fill the 60,000 jobs?
Can the Minister state how many of the 35,000 jobs promised for this year will be incorporated in training schemes and how many will be part-time jobs?
The latter part of the Deputy's question is a separate one and I would not have the information available to me. In response to the first part of the Deputy's question, I refer him to the 20 per cent increase in the Public Capital Programme this year and to the new PRSI exemption scheme where employers will not be charged any PRSI if they take on extra employees. This has already yielded 1,000 jobs but the target is 5,000 jobs. There has been an expansion in the number of CERT places and we have set a target of 350 jobs. We have improved allowances under the enterprise scheme and expanded the social employment scheme. We have set a target of 1,000 jobs in the disadvantaged areas and we expect to meet the target of 5,000 jobs in 1990 in the country as a whole. We have introduced the payment of a £10 child dependant allowance under the scheme and we hope this will attract persons with families. We have set a target of 200 for the vocational training opportunities scheme and we have a new pilot job training scheme, under which we hope to meet the target of 1,000 jobs.
The creation of 60,000 jobs for the two years was a gross target. The creation of 35,000 jobs this year is the gross target but nevertheless it does not take into account increases in service jobs in the private sector. These gross job figures have been produced in conjunction with the Central Review Committee of the Programme for National Recovery.
