Bertie Ahern
Ceist:2 Mr. B. Ahern asked the Taoiseach if he will give details of the work of the Interdepartmental Group on Employment and Unemployment. [2967/96]
Ceisteanna—Questions. Oral Answers. - Interdepartmental Group on Employment and Unemployment.
The Government announced on 26 October 1995 that officials from relevant Departments would prepare for consideration by Government the elements of a strategy to deal with unemployment. Subsequently the group, comprising officials of my Department, the Office of the Tánaiste and the Departments of Finance, Social Welfare, Education and Enterprise and Employment, has met on a number of occasions to develop a co-ordinated approach to policy regarding unemployment.
The group presented two reports to Government. In addition, the group facilitated the development of the package of complementary measures to respond to unemployment which were contained in the Budget Statement.
Tackling unemployment has implications for a range of Departments and programmes. It is essential that co-ordinating mechanisms operate efficiently both centrally and locally to reflect this reality. Primary responsibility rests with each Minister and his or her Department to ensure that all relevant opportunities are pursued to tackle unemployment, especially long-term unemployment. Participation by senior officials in interdepartmental discussions facilitates the development of a shared analysis of the nature of the problems and thus the co-ordination of policy response.
The interdepartmental group will continue in existence and will meet from time to time, as necessary, to facilitate this co-ordination.
Will the Taoiseach explain why the Government has failed the unemployed, bearing in mind that in the 14 months since he became Taoiseach the number of unemployed has increased by more than 6,000?
The Government has not failed the unemployed and, therefore, the Deputy's question does not arise. I remind her that in the past 12 months there has been a net increase of 45,000 in employment.
There has been an increase in unemployment.
Forty-five thousand more people are at work now than when I became Taoiseach.
Unemployment has increased.
That increase in employment in the period since I became Taoiseach is larger than the entire increase in employment that took place between 1960 and 1990.
What about unemployment?
In terms of creating employment, this Government's record is the best ever.
Unemployment has increased.
I think the Taoiseach misunderstood me and I will give him the benefit of the doubt. The question I put to him was why in the 14 months since he became Taoiseach the number of unemployed increased by 6,100 given that he said his Government's major aim would be to reduce unemployment?
From her experience the Deputy, who was a Minister responsible for the area of employment when employment was increasing at a much lower rate than now, will be aware of the reasons it is possible to have substantial increases in employment combined with increases in unemployment.
Substantial rises in unemployment.
A twin track approach to employment.
The Taoiseach will not be a persuader.
Deputies who can restrain themselves sufficiently long to think will reflect that the labour force is increasing at approximately 25,000 a year and during the past year a substantial number of people have returned from abroad because our economy is more buoyant than that in neighbouring countries. Those people are added to the number looking for work. Therefore, it is possible that although we succeeded in increasing employment by 45,000 last year, because of the additional people — returned emigrants and demographic increases given that the birth rate 15 to 20 years ago was higher than the retirement rate now — coming on to the labour market annually, from time to time there will be a combination of a major increase in employment and an increase in unemployment. I believe the Deputy understands that very well. Any attempt by her to make a political point of the type she is making has the side effect of displaying——
Rising unemployment is always a political point.
——a lack of understanding of the demographics of the labour market. I would be very surprised if this is the case, given that the Deputy laboured for so long in the Department primarily responsible for this area of work.
Will the Taoiseach recommend that his brother, the Minister for Enterprise and Employment, whose Department is represented on this committee, ask the Minister for Finance to consider making a contribution to lowering unemployment by taking less than 57p in the pound from single workers earning well below the average industrial wage?
That is an extension of the subject matter of this question.
This is an interdepartmental committee.
It does not look at taxes.
It is ridiculous that the Taoiseach should castigate me for raising the issue of unemployment when the question is couched in that context.
The Deputy is very sensitive.
We do not hear from the Deputy very often except by way of a guffaw.
We did not hear too much from Deputy O'Rourke and she has every chance to speak.
We are having another "Questions and Answers" performance.
It is a disgrace that under the Taoiseach's tutelage or stewardship of the Cabinet unemployment has risen by 6,100. He can dodge, weave, duck and dive, but that is the increase in the number on the live register. I know he will continue to trot out all sorts of other statistics. I am concerned about one matter on which I asked a question but did not receive an answer.
The Taoiseach said the Government created 45,000 jobs.
Forty-five thousand jobs were created last year.
And five were created in the Department of Social Welfare.
Will the Taoiseach indicate why the Minister for Finance in the Budget Statement projected that only 31,000 jobs would be created in 1996? Can he explain the slow down in the rate of job creation? Is he also aware of the findings of the labour force survey which indicate 412,000 jobs net will have to be created between now and the year 2,000 to reduce unemployment by 2,000. Will the Taoiseach agree they indicate that under the Government's projections the country will be locked permanently into a high rate of unemployment if present policies continue?
Anyone who studied the birth rate and age structure of this country in the mid-1970s would understand that 20 years later we would have a problem in terms of employment. The numbers who reached the ages of entry to the workforce — 18 to 25 — were greater by 25,000 to 30,000 than the number who reached retirement age. That was obvious since 1970 to every Government which read the census. There should not be any surprise in this House that there is an unemployment problem. It is something which was foreseeable for 20 years.
I ask Deputies to reflect on the need for long-term planning in this area. Unfortunately in the late 1970s and early 1980s, when we knew we faced a huge problem and should have set aside money to enable us to create additional jobs, Governments embarked on a borrowing spree which burdened us in dealing with an entirely foreseeable unemployment problem. The demographics were obvious to anybody who could read the census in the 1970s.
The Taoiseach doubled the debt.
As far as that is concerned, I am pleased that in the 12 months since I became Taoiseach we have had the largest recorded increase in employment in one year.
And in unemployment.
The increase this year in employment, on the basis of the projections of the Minister for Finance in addition to the 45,000 increase which occurred last year, will be one of the largest increases in net employment.
What about unemployment?
That shows the Government's policy of maintaining low interest rates——
Did it not suggest that the Taoiseach inherited a strong economy?
——and restraining Government borrowing is contributing effectively to creating employment. It indicates that we are building on work already done.
A final question from Deputy Bertie Ahern. The House will observe that time is running out for dealing with questions to the Taoiseach.
What is the source of the Taoiseach's figure of 45,000 jobs last year?
The Labour Force Survey.
The Labour Force Survey from which he quotes dates from a period up to April 1995 and 75 per cent of the increase occurred in the period when the Taoiseach was not in office.
The increase in employment during that year will prove to be 45,000 jobs.
The Taoiseach was not in office.
During the 12 months I was in office, the number employed increased by a net 45,000.
(Interruptions.)
I am anxious to make progress on other questions.
The Taoiseach stated earlier that the increase occurred in his year in office. He corrected that by saying he was referring to the Labour Force Survey. The Taoiseach and the House would know that the figures he quoted were from the Labour Force Survey which ran from April 1994 to April 1995. I was just giving him an opportunity to say that three-quarters of the increase occurred in a period when he was not in office.
You have already said that, Deputy.
The Taoiseach has not answered.
What I am saying, quite simply, is that the increase in employment during the period in which we have been in office will be an increase of a minimum of 45,000 net. I am quite happy to produce the evidence at the appropriate time to demonstrate that.
The Taoiseach is prepared to use any figures.