John Bruton
Ceist:1 Mr. J. Bruton asked the Taoiseach if he will outline the Government's objectives for the December Summit of EC Leaders.
Ceisteanna — Questions. Oral Answers. - Government's Objectives for EC Summit.
Ireland's number one EC priority at present is to see measures put in place to boost economic growth and employment.
Ireland has forwarded to the Commission its contribution in regard to the White Paper on Growth, Competitiveness and Employment which the Commission is to submit to the December European Council. I understand that Ireland's contribution was in fact laid before both Houses of the Oireachtas yesterday. Key points in the Irish contribution are:
(a) the basis for sustainable economic growth across the Community is co-ordinated Member State macroeconomic policies;
(b) the Community should aim at recapturing over time a European competitive edge and
(c) tax systems in the Community should become more job-oriented.
These points reflect our key priority of increasing growth and employment.
I am sure that the European Community will be delighted to get this advice from the Taoiseach, but would he not consider that he might be better to address the fact that the policies of his Government do not meet the criteria he is advising European Governments to adopt? Would the Taoiseach not agree that, for example, we have the tax system that is most anti-pathetic to jobs, that we have the poorest record in Europe in turning economic growth into jobs and that since the National Plan — for which we received large sums of EC money — was adopted, 98,000 people have emigrated and 63,000 have joined the dole queue? Because Irish policies are deficient the expenditure of that money has not resulted in an increase in employment.
The Deputy should be well aware that in recent times we have managed to stabilise the unemployment problem and that our quarterly figures issued in the past few days show quite clearly that we are managing our economy better than any other European State. The Deputy is surely not unaware that there has been a deep world recession and that many of the factors which he attributes to increasing unemployment arose from that situation. Of course, the Deputy tends to ignore the reality that we have the fastest growing population in Europe. Despite the problems we are out-performing Europe. It is not a question of the Irish Government advising the Community as to what should be done.
At the Copenhagen Summit we were all asked to submit a paper on what we believed needed to be done in European terms. The Deputy will be the first to agree that Europe is not performing well, that it is on a low growth-rate path, that it needs to get its act together and that the single biggest priority is unemployment which should be addressed in a co-ordinated way. During the past nine months I have been striving to get the unemployment problem onto the top of the agenda. It is now in that position and will be there at the EC December Summit.
Might I try to persuade the Taoiseach that the unemployment problem is not an accident or an act of God, but that the tax system presided over by him as Minister for Finance and now as Taoiseach and which costs an employer £3.33 to pay £1 to an employee in take home pay, discourages, first, employers from creating jobs and, second, people currently on welfare from taking jobs. Until the tax system is changed there is no point in the Government offering advice to people in Europe whose tax policies are not as anti-jobs as ours are.
The Deputy will be aware also that I was the first Minister in 20 years to attack the taxation problem.
The 1 per cent levy.
We took steps in the right direction.
The amnesty?
The Deputy got it wrong twice. We will not accept any suggestions from him unless he tells us from where the money will come. It would be a little help.
(Interruptions.)
Let us hear the Taoiseach without interruption, please?
We have always recognised that there must be improvements at the lower end and while considerable improvement has been made more is required. All those issues will be the subject of discussions on a possible future Programme for Economic and Social Progress between the social partners and the Government. I would remind the Deputy also that our investment programme from now until the end of 1999 will be published next Monday. This programme deals with a £20 million investment in the economy and clearly has jobs as its priority. In all its policies and strategies the Government has given full priority to jobs.
A large number of questions have been tabled to the Taoiseach today and I am anxious to dispose of as many as possible. I am now proceeding to Question No. 2.
Since apparently we will not have another chance to ask the Taoiseach about this issue, can he say whether he intends to make any reference to his concerns, if he has any, about the GATT agreement in his preparation for the December Summit?
That is a very specific and major issue worthy of a separate question.
I would like to know——
I am calling Question No. 2.
Does the Taoiseach plan to raise this matter in preparation for the December Summit? If he fails to do so he will not have an opportunity to undo the damage——
Deputy Dukes, I have called Question No. 2. I must ask you to desist.
——done by Mr. Ray McSharry, himself and the Tánaiste——
Deputy Dukes may not ignore the Chair.
——and we will be left on the high tail of Europe without any comeback whatsoever.
On a point of order——
The Deputy should not erode the precious time available.
The Taoiseach is eroding our farming community.
It is important to get off on the right foot in this new session.
Yes, indeed. I have said that the question raised by Deputy Dukes is a very specific and major one worthy of a separate question.
On a point of order, this question is about the objectives for the Summit. Clearly, if the world trade problem is not sorted out by then it will have to be discussed at the Summit. Surely Deputy Dukes should not be prevented from asking if this is a Government priority.
I explained to the House my reasoning in the matter; it is logical and understandable. Question No. 2, please.
They are trying to run away from it; they have sold us out completely.
As the Deputy is aware, another summit will be held between now and December.