Proinsias De Rossa
Ceist:12 Proinsias De Rossa asked the Minister for Industry and Commerce if he will outline the anticipated level of job creation during 1992, and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Job Creation.
Jim Higgins
Ceist:71 Mr. J. Higgins asked the Minister for Industry and Commerce the number of people employed in (a) the manufacturing industries and (b) the service sector in each of the years between 1987 and 1991, and if he will make a statement on the matter.
I propose to take Questions Nos. 12 and 71 together.
Under the Programme for Economic and Social Progress, the target is to create 20,000 gross jobs each year of the programme in manufacturing and international services. It was pointed out in the programme that the achievement of this target would require continuing stability in the economic environment and cost competitiveness throughout the industrial and services sectors, a positive external environment for our exports and a co-operative response from firms, employees and the various State agencies involved in supporting developments.
The Irish economy has come through a difficult period over the past 12 months. The external environment continued to be hostile mainly due to the recessions in the UK, the US and elsewhere. In spite of these difficulties real output growth of about 2 per cent was achieved in 1991, over twice the OECD average. Our strong export performance, which at £15 billion represents an increase in value of 5 per cent over 1990, demonstrates the continuing competitiveness of Irish industry which has managed to increase its market share despite the difficult trading conditions. In the face of the demanding economic environment, the target in the Programme for Economic and Social Progress of 20,000 jobs each year in manufacturing and international services was substantially met in 1991 with the creation of over 18,500 jobs. I expect that job creation in 1992 will continue towards the ultimate target of 60,000 gross jobs over the period of the Programme for Economic and Social Progress.
While it has, of course, a very important role to play in employment and wealth creation, it must be remembered that the manufacturing sector represents less than one-fifth of total employment. It is also very important to understand how the Irish manufacturing sector is performing compared to our EC partners. Recent OECD data clearly shows that the manufacturing sector in Ireland is performing substantially stronger than many other European economies when it comes to employment. Manufacturing employment declined by only 2.2 per cent in Ireland between 1970 and 1990 compared with much greater declines in Germany, 15.2 per cent, the UK, 38.2 per cent, Denmark, 17.4 per cent; France, 16.9 per cent and Italy, 11.3 per cent. The contribution which the manufacturing sector is making by maintaining employment at a time of international recession testifies to the competitiveness of the Irish industrial base.
In so far as our overall employment figures are concerned, there have been strong gains in non-agricultural employment, especially in services employment, since 1987. This was a notable achievement for Ireland. In previous international recessions, job shedding was a significant problem here. The more competitive edge of recent years has enabled us to hold steady this time.
However, we cannot be content with our record as regards increasing the numbers at work, not only to meet the demands of new entrants to the work-force each year, but to make serious inroads into the live register now standing at 276,000, and in particular the needs of the long term unemployed. It was because of my concerns with the effectiveness of industrial and job creation policy that I set up, last June, the Industrial Policy Review Group, whose report has met with strong endorsement on all sides in this House and outside. The group's report addressed a wide range of deep-seated obstacles to growth in our economy and underlines the need for change, not only in our industrial support systems, but also in our job training, education, transport and other fields. We have already set up a task force to get speedy action on the wide range of recommendations coming from the review group.
In response to Deputy Higgin's question, I am circulating a table containing details of the numbers employed in manufacturing and services between 1987 and 1991, the source of which is the Central Statistics Office, 1991 Labour Force Preliminary Estimates.
Mid-April, 1986-1991.
|
At work |
Thousands |
|||||
|
1986 |
1987 |
1988 |
1989 |
1990 |
1991 |
|
|
Manufacturing |
211 |
208 |
209 |
215 |
223 |
220 |
|
Service |
606 |
616 |
626 |
621 |
639 |
648 |
I wish to say that the time for dealing with questions is clearly exhausted and supplementary questions will have to be very brief.
While it may be true that manufacturing accounts for one-fifth of total employment, I am sure the Minister agrees that it has been the significant area of growth, having regard to the decline in agriculture and the arresting of progress in the area of services. Having regard to the fact that we are planning for 20,000 gross new jobs in the face of anticipated redundancies and 25,000 young people coming onto the labour market, we are rapidly heading for a figure of 300,000 people unemployed. Will the Minister comment on the fact that the Programme for Economic and Social Progress was already agreed before we knew the Culliton recommendations? Will implementation of any or some of the Culliton recommendations make any improvement in that 20,000 gross target? May I ask the Minister if he remembers the comment by his mentor, a former Taoiseach, that any Taoiseach and Government should resign if the unemployment figure went over 100,000?
Now that the unemployment level is heading for 300,000 would the Minister consider——
The Chair did ask for brevity.
Now that the level is heading for 300,000——
The Deputy has said that.
——would the Minister consider that the time might be coming when he will have to consider resigning?
He will have to resign at least once.
He will have to resign three times.
The Deputy is not correct in saying that the job creation target is 20,000 under the Programme for Economic and Social Progress as if that was an overall figure. Of course, that is not the case. That only relates to manufacturing and international services. It does not relate to services generally which, of course, is very much larger than manufacturing and where in recent years there has been a substantial growth in the number of jobs in existence. I agree with the Deputy that whereas manufacturing represents only 20 per cent of employment it is by far the most important sector of all employment here for the simple reason that there is a major spin-off from manufacturing which, in turn, creates other jobs which one does not get in other types of activity.
For that reason manufacturing, and its encouragement, must always be at the centre of the Government's efforts in this regard. I have no doubt that the implementation over the next year or two of the broad thrust of the Culliton recommendations will contribute to a further increase in employment. I do not think we will see the benefit of them for at least two years but I am satisfied that if we were not to implement the Culliton recommendations there would be a regression in this regard.