Vol. 454 No. 5
7 Mr. Callely asked the Minister for Enterprise and Employment the measures, if any, the Government will introduce over the next two years to address the unemployment problem in the country; and if he will make a statement on the matter. [10210/95]
The broad thrust of current policies is succeeding in increasing employment and reducing unemployment. I expect a further significant rise in employment in 1995 following on from employment growth of 2.6 per cent in 1994. The Central Bank forecasts that non-agricultural employment could grow by 37,000 persons in the period to April 1995. Unemployment continues to fall. Measured unemployment is edging downward. While not as quickly as we would all wish, the trend is still going in the right direction. The number of persons on the live register declined by some 11,200 in the first five months of this year.
Government policy on employment has many facets. As a first step it is clearly necessary to maintain appropriate macroeconomic policies which encourage sustainable economic and employment growth. Business confidence and investment depends on a positive macroeconomic framework and this Government is strongly committed to maintaining and building such a framework. The recent measures announced by the Minister for Finance are clear testament to this commitment.
It is also essential that we promote measures which help ensure that the fruits of economic growth manifest themselves in increased jobs. The Government in its recent budget introduced a number of measures designed to lower the cost associated with job creation. Among the measures introduced were: the annual income threshold below which the lower rate of employer's PRSI of 9 per cent applies has been increased from £9,000 to £12,000; the employers' PRSI exemption scheme is being extended to include all first time workers under the age of 23 who meet the conditions; the standard rate of corporation tax has been reduced from 40 per cent to 38 per cent and we plan to push it down further in line with European norms, as resources allow. These budget measures, now in force following the adoption of the Finance Act, 1995, should result in increased employment by lowering the costs of employing people as well as improving the profitability of Irish businesses.
With the right economic conditions in place the goal of my Department and the development agencies is to help firms to increase their competitiveness, thus create and maintain jobs. I refer the Deputy to my detailed reply to Deputy Bertie Ahern on 15 March 1995 in this House on the measures being taken by the development agencies designed to attract foreign industry and to increase the employment potential of indigenous firms. The Operational Programme for Industry 1994-99 which I launched earlier this year sets clear targets for jobs and sales.
While these measures will create additional jobs, I am conscious of the need to ensure that all members of our society, especially the young and unemployed, have access to these new opportunities.
I am committed to pursuing a range of active labour market measures to improve access to jobs which include the provision of work and the development of job-related skills.
Community employment is a measure of particular relevance to tackling long term unemployment. This programme will provide an average of 40,000 opportunities throughout 1995, which represents a significant increase over the average participation level of 30,960 in 1994. The achievement of this higher level of participation was approved by Government last month and is a testament to our commitment in this area.
Training, involving an upgrading of skills, is also a further important measure in improving employment opportunities. This year training is being provided by FÁS for 16,000 persons. In addition to maintaining and increasing the momentum of existing policies which, as I outlined, are working well, work on the development of new initiatives is also in progress.
A new unit has been established in my Department to oversee the putting in place of the local employment service as recommended by the Task Force on Long-Term Unemployment. As I indicated, the new service will be established initially in the 12 partnership areas. Management committees have been established and implementation plans are being developed by the committees. The new unit will also come forward with policy proposals for initiatives to reduce the number of long term unemployed and to better co-ordinate the delivery of State services to the unemployed.
My Department is also working on a comprehensive White Paper on Human Resource Development and Training. This will address important policy issues such as the skills gap, in-company training and ensuring maximum value from the training budget. As part of the preparation of the White Paper, extensive consultations with the social partners and other interested parties are taking place and these are at an advanced stage. The White Paper will be published as soon as possible.
It is clear that it will require a strong and sustained national effort to remedy the unemployment problem. No single solution can solve such a complex and multifaceted problem. I am committed to reviewing our policies in this area in the light of changing trends, opportunities and threats to ensure that the solutions we pursue remain the best strategy for the future.
I thank the Minister for his reply. I preface my remarks by saying that my question was much broader, but parts of it were disallowed. Like the Minister, I have a particular interest in the northside of Dublin. Given that Dublin is an unemployment blackspot, will the Minister indicate what measures will be introduced to address its problem? This morning Members will have heard my party Leader, Deputy Ahern, talk about the merger of the ICC, the ACC and the alliance with the TSB and we hear of job losses. When we hear of the package for Aer Lingus we hear of job losses, and the same applies to the package for TEAM Aer Lingus.
I dissuade the Deputy from making a speech. Let us proceed by way of supplementary question.
Every issue to which the Government refers involves a penalty clause in terms of job losses. Will the Minister indicate the measures he proposes to introduce to address unemployment in Dublin and to reduce the number of unemployed, particularly in the northside of the city? He referred to community employment and we are all aware of the curtailment in that area. He referred to small firms——
Let us not raise a series of questions, arguments or statements. What the Deputy said is adequate.
I will reply to the questions in the order they were asked. I reject the Deputy's suggestion that the Government's record regarding community employment is anything but of the highest quality. As the Deputy should be aware, the Fianna Fáil caretaker Government provided Estimates which would have resulted in a decrease to 26,000 in the community employment figures by the end of the year.
That is a lie.
On two occasions the Government made funding available to deal with this issue by introducing an extra £23 million in the budget and subsequently introducing an additional £10 million.
The Government clearly recognises the unemployment blackspots many, but not all, of which are in Dublin. The local employment service to which I referred is being established in the partnership areas. They will include much of the Deputy's constituency in the northside and other areas in which there are unemployment blackspots, particularly Tallaght, Finglas and Ballymun, areas with an established unemployment problem which that service has been extended to cover. I reject the Deputy's suggestion of a penalty clause in respect of employment in this Government. If the Deputy checks the notified redundancy figures, it is clear that since the Government took office there has been a considerable drop in the number of redundancies. Employment is increasing and the challenge is to find measures to ensure that those who are unemployed, not only new entrants to the labour force, gain access to it.
Am I incorrect in saying that the proposals regarding the ICC, the ACC and the TSB; Aer Lingus and TEAM Aer Lingus involve job losses? I would like a simple yes or no to that question.
The simple answer is no. Those are not proposals for job losses. If the Deputy assessed the issue of the ACC and the ICC.——
There will be a reduction in the number employed.
The reason issues have arisen regarding the future of the ACC and the ICC is that there is wide recognition that small individual banks solely reliant on their present sources of capital will not grow and prosper. It is necessary to address these issues and to ensure those enterprises thrive in future.
There will be a reduction in the numbers employed.
Deputy Callely, please restrain yourself.
May I ask a simple straightforward question?
The Deputy asked certain questions, he should listen to the Minister's reply, otherwise we will make no progress.
It is not an exaggeration to say that the Minister's reply was a model of gobbledegook. I thought he would put his slant on answers and give straightforward replies, but he has fallen swiftly and comfortably into the trap of relying on the answer produced for him. Does he accept that we have the worst unemployment record of all OECD countries? Does he understand that in his and other constituencies the Department of Enterprise and Employment and the title of the Minister for Enterprise and Employment no longer holds any coinage or respect because the number of long term unemployed as a percentage of the total number unemployed has increased during the past six months and he has done nothing constructive about it?
I reject the Deputy's assertion. The reality is that there is employment creation in the economy. As the Central Bank indicated, it expects——
It has revised its figures.
That is correct. It has revised its figures.
Downwards.
If the Deputy read the Central Bank report she would realise it believes there will be a reduction in community employment which led it to revise its figures downwards, but the Government dealt with the issue by reversing the threatened reduction in community employment. It has long been advocated that we need a better designed local employment service attuned to the needs of the long term unemployed.
We may get it by the year 2000.
We are putting that in place. The plans are expected from various groups during this month. It has been clearly recognised that part of the problems leading to unemployment are a skills gap.
Where is the White Paper?
We must address that as a strategic issue. As I indicated, consultations on a White Paper, which the previous Government did not produce during its period in Government despite numerous promises, are at an advanced stage. I remember the former Minister Cowen promising to introduce a White Paper long before the Deputy arrived in the Department.
On a point of order, it was I who put it into our programme for Government which the Minister subsequently implemented, and he is well aware of that.
That is not a point of order.
Deputy O'Rourke conveniently forgets that her colleague, Deputy Cowen, as Minister for Labour, promised to introduce a White Paper, but did not do so. The Minister of State dusted down that proposal and relaunched it last autumn.
Deputy Cowen's White Paper related to manpower policy.
I call Deputy Ellis.
The Minister has set up another committee and consultative group, but nothing is happening.
Has the Minister of State, Deputy Rabbitte, agreed to a third banking force?
He merely tells Richard what to say.
Interruptions from either side of the House are not helpful, let us hear Deputy Ellis.
What is the Minister's opinion on creating further jobs in view of the action of his fellow Minister in the past week in objecting to the creation of jobs in County Leitrim by lodging an appeal to An Bord Pleanála? Was the Minister informed before the appeal was lodged?
This deals with a specific area.
I am confident this issue will be dealt with properly and that both the employment and environment needs of the area will be dealt with coherently.
Is the Minister withdrawing his objection today?
Was the Minister informed by his colleague before the appeal was lodged?
That is a separate question.
I made that observation before the Minister answered the question.
Obviously he was not.
In questioning the Minister earlier I referred to a number of Government proposals, namely, those relating to the ICC, the ACC, the TSB, Aer Lingus and Telecom Éireann.
They are not Government proposals.
Will the Minister give a straightforward answer to a simple question? Will Government policies and proposals in respect of those companies mean a reduction in the number employed in each company? Will he give a yes or no answer?
The Deputy is well aware that some of the companies to which he referred have indicated that adjusting to a competitive environment and adopting strategies that will enable their companies to survive in the long term requires rationalisation.
Therefore, the Minister is talking about Government policies which involve job losses.
If the Deputy believes the Government should maintain levels of employment in companies that must face international competition, he is being seriously misled.
I am not saying that.
Government decisions have yet to be made in the case of the ICC, the ACC and the TSB. The Government's priority is to ensure that not only is employment preserved to the maximum extent possible in those companies, but that there is vibrant competition in the banking industry.
In view of the recent decision of the Minister for Arts, Culture and the Gaeltacht to frustrate the efforts of the IDA, how does the Minister propose restoring confidence in the IDA to create jobs abroad? Is he aware that competing industrial development authorities in Scotland, Northern Ireland and elsewhere will exploit this matter to the maximum following international media coverage of a Government failing to agree at the Cabinet table and a Minister objecting to a project that had been approved by the Industrial Development Authority? It is a matter of grave concern that a Government, on the one hand, is trying to create jobs and, on the other, trying to frustrate them, particularly with our high level of unemployment.
The IDA continues to maintain the highest confidence internationally. It is regarded as one of the best agencies in the world dealing with industrial development.
We are not questioning the ability of the IDA, there is a lack of coherence in the Government.
If the Deputy consults foreign enterprises setting up here, they will confirm that position for him.
This is the first time a Government has interfered in job creation.
While I recognise the Minister's attempts to create employment, is it his intention to amend the prospectus sent to people intending to invest here indicating that, while he as Minister for Enterprise and Employment has set down rules and regulations and we operate stringent planning laws, he cannot account for the actions of other Ministers.
Investors are well aware of our planning regulations and the basis on which projects are supported. I am confident that investors who establish here wish to comply with our environmental standards which, the Deputy knows as chairman of the Joint Committee on Sustainable Development, are important in preserving a balance between the requirements of the planning authorities and industry.
The Minister is not answering my question.
Our policy has always been to maintain that balance and that is why An Bord Pleanála is an independent authority.
Does the Minister realise that another Minister may hold a different view?
I propose to take Questions Nos. 8, 14 and 59 together.
That is peculiar.
Deputy Callely had a good innings prior to the arrival of the present incumbent of the Chair.
It was my question and I asked one or two supplementaries only. I am pleased to contribute to the debate, unlike Deputy Rabbitte who is sitting with a smile on his face having given a 2.5 per cent increase to social welfare recipients. He is sitting there with his arms folded, all he needs is a rattle.
