Vol. 436 No. 5
11 Miss Quill asked the Minister for Enterprise and Employment his views on the evaluation of the Director of the Central Bank who has stated that 50 per cent of the failure of the Irish economy to translate economic growth into jobs is due to domestic factors; and, if so, the new initiatives, if any, he will be recommending to Government to remove or reduce the obstacles to job creation arising directly out of Government policy.
73 Mr. J. O'Keeffe asked the Minister for Enterprise and Employment the extent to which domestic factors and policies contribute to unemployment; and if he will make a statement on the matter.
I propose to take Questions Nos. 11 and 73 together.
I have noted the views of the Governor of the Central Bank as expressed in an address which the Governor made to the University Philosophical Society at Trinity College Dublin on 18 November 1993. In his address the Governor did say that research recently undertaken by staff of the Central Bank indicated that domestic policy factors account for about one-half of the rise in Irish unemployment. He went on to say that while one cannot accept the results of such studies as scientific fact they do indicate areas for reform and improvement.
I have no difficulty in accepting that domestic policies are the key to how well we tackle the unemployment problem. Clearly, they are not sufficient in themselves as demographic and external factors are equally important in determining levels of unemployment in Ireland. But even if these latter factors become more favourable to employment creation in Ireland we will not achieve a turn-around in dealing with the unemployment problem without appropriate domestic policies.
What does Maurice Doyle say?
Much of the thrust of the Governor's remarks are in accord with current policy, including: the achievement of consensus on the need for wage moderation; ensuring through competition legislation and associated administrative action that open competition prevails across all sectors of the economy and that artificial barriers to entry into business trade or profession are removed; removing administrative barriers to the start-up and development of the small business sector and encouraging greater activity in the services sector.
I agree that there are many factors affecting employment which are within national control. The actions already taken by the Government since it came to office, and the policies it has put in place for the future, indicate clearly the Government's resolve to use all the means at its disposal to make the maximum contribution possible to the creation of employment and the reduction of unemployment.
Earlier this year the Government set out a very comprehensive response to the recommendations of the Culliton report in its publication —"Employment through Enterprise" published on 4 May —— which sets out in some detail the actions being taken by the Government to promote employment creation across a wide range of policy areas. These include many of the areas referred to in the address of the Governor of the Central Bank.
This is disgraceful. We have 15 minutes and 107 questions and the Minister is hogging the entire 15 minutes.
Order please. Please allow the Minister to respond to the questions.
On a point of order, I have been here since 2.30 p.m. and the Opposition persisted in asking a range of supplementary questions. It took one hour to get through eight questions and I had no control over that.
Precious time is being needlessly eroded.
I have always replied to the questions asked and I am prepared to stay until the end of this evening, if necessary, to answer any questions.
We will bring the Minister back next month also.
Order please. The Minister should be allowed proceed.
I had a question on the Order Paper on the last time the Minister answered questions but it was not reached.
The Deputy should speak with his Front Bench about how he should conduct his affairs. In effect the Deputy is wasting his own time.
The Fine Gael Party is filibustering.
The Minister should be allowed to proceed uninterrupted.
I do not know what discretion you have, but I am not averse to allowing injury time, if the Chair wishes.
To continue with my reply, more recently the National Development Plan which sets out a £20 billion investment programme over the years 1994-99, represents a very comprehensive statement of the Government's strategy on job creation and on tackling unemployment through certain measures eligible for co-financing under the Structural Funds of the European Union.
The reality is that this economy overall is in fairly good shape — inflation, economic growth, balance of payments surplus and so on.
The fundamentals are right.
We must maintain that position at all costs so that if the external environment improves we can take maximum advantage of a return to growth especially in terms of employment.
Will the Minister acknowledge that there is no commitment by the Government to indigenous industry in the break up of the IDA? The section of the IDA that was to deal with indigenous industry — Forbairt — is still awaiting the appointment of a chief executive officer, despite the fact that the executive officer of the overseas section of that organisation was appointed months ago. When will the Government appoint a chief executive officer to Forbairt. The delay convinces me, and everybody else, that there is no commitment to indigenous industry by the Government despite the fact that that is a proven key sector in the creation of new jobs.
The Government has tackled something that many Governments, including the Government of which the former Leader of the Deputy's party was a member, that is the division of the IDA into two so that there would be a focus on indigenous industry. Forbairt is up and running and will be legally incorporated on 1 January 1994 ahead of any time table that anybody foresaw when the Dáil debated the issue. In relation to the other matters raised by the Deputy, we have set up county enterprise boards at local level so that people can have access in a way that never previously existed. In the space of ten months we have done things that people have been talking about for ten years.
When will the Government appoint a chief executive officer to Forbairt?
If the Deputy had read the legislation she would realise that that is a matter for the board because we are not into that kind of jobbery.
It is the exception that proves the rule.
