Written Answers. - Job Creation.
Theresa Ahearn
Ceist:
50
Mrs. T. Ahearn
asked the
Minister for Labour,
if he intends to take steps to create a more enticing environment for employers to create additional jobs; if he will remove the disincentives, if any, to job creation and carry out a review of the Government's job creation policies; and if he will make a statement on the matter.
The Deputy will be aware that it has been the policy of successive Governments, including the present Administration, to create an economic environment which facilities and encourages investment as a means of stimulating viable employment.
The present Government's overall strategy for achieving the twin objectives of greater economic growth and expansion of employment, as endorsed by the social partners, is set out in theProgramme for Economic and Social Progress under the title “Strategy for the Nineties”.
As the programme points out, responsibility for creating a favourable environment for generating jobs rests with several Ministers and development agencies.
I should point out that, over the past five years, the Government have been very successful in transforming the economy. Unfortunately, employment growth has not matched economic development. We also had to contend with an increase of 25,000 in the labour force annually, as well as an influx of returning emigrants.
Over the years, my Department have initiated a whole range of programmes and incentives, administered by FÁS and CERT, to encourage employers to take on workers. The Deputy will be aware that I recently launched two new FÁSsponsored programmes aimed at assisting an additional 25,000 unemployed persons to find employment or job training.
The Deputy will also be aware of the improvements that have taken place in industrial relations.
Irish labour law is in many respects less demanding than the equivalent legislation in many of our competitor countries. Indeed it is a fact that many of the countries with the most demanding labour law regimes have the highest levels of employment. Therefore it is not axiomatic that labour law provisions inhibit job creation.
As regards the worker protection legislation administered by my Department, I am of the view that this has no significant adverse impact on job creation. Indeed it can be argued that this legislation, which provides basic protection to workers and clear avenues of appeal in cases of dispute, has been a significant factor in the greatly improved industrial relations climate in this country. The existence of this legislation removes much of the justification for recourse to industrial action in situations involving breaches of individual worker's rights.
The view that labour legislation is not a major inhibitor of job creation was supported by the results of a study conducted by the ESRI at the request of the Department of Labour in 1986. The study examined the possible disincentive effects of employment protection legislation and found that factors other than labour legislation, are the major influences on employers' decisions concerning recruitment. Indeed, just over 15 per cent of employers mentioned labour legislation as a main factor in their decision not to recruit.
There is a commitment in theProgramme for Economic and Social Progress to review a number of areas of labour legislation during the life of the programme. In my view any significant amendments in labour law should only be carried out with full consultation with the social partners. I will pursue this course with any initiatives which I may take in this area.
The Deputy will also be aware that the Taoiseach has already intimated to the House that he intends to bring forward shortly further proposals on the Government's approach to job creation.
