Vol. 417 No. 1
17 Proinsias De Rossa asked the Taoiseach if he will outline the matters discussed with the social partners at his meeting with them on 28 February; whether any new initiatives are now planned to help deal with the unemployment problem; when any such initiatives will be announced; and if he will make a statement on the matter.
On 28 February 1992, accompanied by the Ministers for Industry and Commerce, Finance, Agriculture and Food and Labour, I met the Central Review Committee under the Programme for Economic and Social Progress.
I reaffirmed on behalf of the Government our full commitment to the consensus approach enshrined in the programme and in its predecessor, the Programme for National Recovery. The meeting discussed a number of specific matters including the new employment and job-training schemes, the negotiations on GATT-CAP reform, the area-based response to long term unemployment, tourism development, employment opportunities in the European labour market, the capital acquisitions tax, rural development, planning procedures and the roads construction programme as well as the most appropriate structure with political input to develop new ideas and proposals to deal with employment and unemployment. Copies of the joint statement which issued after the meeting have been placed in the Oireachtas Library.
The committee welcomed the renewed commitment of the Government to the principle of consensus through the Programme for Economic and Social Progress. All of the social partners welcomed, and indicated support for, the concept of some new structure to initiate new ideas and proposals to deal with employment and unemployment. They stressed that the input of the social partners including the unemployed and young people as well as the political input should be assured and that the NESC may have a role to play in that respect.
I informed the House on 6 March that the Government Chief Whip would be putting detailed proposals to the other Whips this week for the creation of an Oireachtas Joint Committee on Employment to identify and recommend proposals and measures to accelerate the creation of employment and alleviate the grave problem of unemployment. The committee will be able, as recommended by the social partners, to have an input from representatives, concerned views, for example, the unemployed, youth and religious bodies and will work with the social partners through the NESC as well as having direct bilateral meetings if desired.
I have separately outlined my views most recently last weekend on key areas I believe now need to be addressed urgently to provide a basis for additional job creation and to provide support for those who unfortunately become unemployed. I had in mind, in particular, the action to implement the recommendations of the Culliton Industrial Review Body, the elimination of disincentives to work in both the tax and social welfare systems, the fostering in a practical and fully inclusive way of a modern enterprise culture, and the giving of new emphasis to the area-based strategy of the Programme for Economic and Social Progress to deal with the long term unemployed.
Will the Taoiseach outline how the proposed Oireachtas Joint Committee on Employment will work? Will he clarify the position of the social partners? I understand they were looking for participation in a forum of this kind rather than the right to make an input. How does he propose that this committee should provide for participation as distinct from input? Given the way in which virtually every committee of this House is under-resourced and under-staffed, does the Taoiseach propose to provide for additional resources so that this committee, in whatever form it is established, will be capable of doing the job effectively, with adequate staff to carry out research and do the job quickly?
I expect this committee to be one of the most important, if not the most important committee of this House. On the question of structures, the Government Chief Whip will be laying out the terms of reference to the other Whips this afternoon. On the question of servicing the committee, I intend that each Department associated directly with job creation and the tackling of unemployment will have an officer servicing the committee. In addition, I see the NESC as the consultancy arm of the committee in reviewing strategies in existing areas and producing new strategies and studies. For instance, the first study I would envisage would be in respect of the mismatch in the Irish economy, the problem that large GNP growth in any particular year does not translate into jobs as we would expect. Many of us thought there would be a better transfer into jobs. There is a mismatch there which does not exist in other economies of the OECD. NESC are the ideal consultancy organisation to do that work. They are representative of all the social partners and I see a major input from NESC.
The committee will have the full responsibility of calling in groups to make an input, either collectively or in a separate bilateral manner. I have indicated that they can call in everybody, religious, the unemployed and any arm of the social partners. There will be full involvement by everybody and the political process will also be involved. One of the strong criticisms in recent years was that the only input by politicians in regard to the largest unsolved problem in the economy was in the political process in this House. They now have the opportunity to make an input in whatever way they wish. Consequently, I expect the committee to function very actively and to be able to take on board all sorts of ideas and initiatives and have them tested by NESC. The Government will proceed with the implementation of the recommendations of the Culliton report through the structure already there. There is a task force on tourism which this committee can call in, as well as other task forces. It is a question of pulling together all the strands, with the political process in control. I hope it will make a very meaningful contribution to employment creation and tackling unemployment.
Will the Taoiseach agree that we have had a surplus of analysis and a deficit of action in this matter and that, therefore, the terms of reference of this forum should be designed to hold the Government to account for action or inaction on the jobs issue rather than to engage in further academic analysis?
I did not expect Deputy Bruton to start politicising a committee like this already. I hope he will change his view as he goes along. There are 93 reports in existence. The only report I have mentioned in relation to this committee refers to an exercise which is well worth doing, that is, finding out why we do not get the jobs when we are producing good growth rates. In 1990 we had a 7.25 per cent growth rate. Ten years ago somebody might have said that if we got an average of 5 per cent growth over four years we would be making a big indent in our unemployment problem. We have had four years with an average growth rate of 5 per cent but we have not got the jobs. An exercise of the kind I have mentioned is worth doing.
A change of Government.
Given the very serious situation facing the unemployed and the Minister for Finance's prediction of 300,000 people unemployed by the year's end, have any practical steps already been put in place arising from the Culliton report that might give some positive hope to people looking for work?
The committee will be able to ask from time to time as to the progress of the Culliton report. As the Deputy will be aware, a task force has been set up under the chairmanship of Patrick Moriarty of the ESB and there is a sub committee of Cabinet Ministers which is chaired by the Taoiseach. We will report to this House, to the social partners and, indeed, to everybody else in relation to the implementation of the report. The Deputy can take it there will be action on the Culliton report. We are fully committed to it and to its implementation. What Deputy Ahern was saying was that there may be no improvement in the world economies in the UK or the US economies, that that is the worst scenario that might arise but that we do not expect such a scenario to arise.
Is that a personal statement?
Can the Taoiseach confirm, given the importance he is attaching to this committee, that, in common with other committees, they will have power to compel the attendance of witnesses and extend privilege to them?
The terms of reference are being discussed with the Whips at the moment.
We must now proceed to deal with questions nominated for priority. A quarter of an hour only is permitted for these questions. Your co-operation is very much required.
