I am pleased to have the opportunity to contribute to this debate on the Forfás document Shaping our Future: A Strategy for Enterprise in Ireland in the 21st Century. The cost of this document which extends to 302 pages is a cause of regret. We have been supplied with a summary. I welcome much of the report and the strategies the Minister has outlined.
It is a source of concern and deep dismay that we are debating this report on a day when the unemployment figure on the live register stands at 8,000 higher than at the end of May of the same year, an increase of 3,800. We are debating this report on an appropriate day when, sadly, the unemployment figures show a huge increase. With the exception of the Minister, Deputy Ned O'Keeffe and the official from the Department of Enterprise and Employment we are in an empty House debating the position of the long-term unemployed whose lives have been blighted. This unacceptable number of long-term unemployed is the highest in Europe and remains unaccceptable for a country that holds the Presidency.
The Minister's strategy papers about which he has spoken were rubbished by media commentators — a little unfairly I would have thought. The strategy papers being planned for the services sector, for training, human resources, management etc. and the paper, already published, which deals with long-term unemployment are acceptable as forward strategy. For five years in the Department of Education when I started the debate on the Green Paper I maintained a hands-on day-to-day commitment to solving the difficulties, problems and challenges which beset the education sector at that time. Any Minister worth his or her salt has a strategy. Without a vision for the Department one is leading, one may as well not be in the business. Clearly there is a need for a vision and that it be translated into strategy papers, documents, initiatives and so on. I agree with all that because one has to leave a legacy to future Ministers. I left the legacy of the Green Paper to the subsequent Ministers, Deputies Noel Davern, Séamus Brennan and the current Minister, Deputy Bhreathnach. The White Paper bears many of the marks of the initial writing in 1990-91. That is proper. It provides the continuum and leads to sustained political leadership and development. That does not take from the fact that the Minister should give sustained attention to the daily challenges and difficulties which beset his Department. That is where the Minister and his two colleagues in the Department fall down because there is no political leadership on the issue of unemployment. There is a complete reliance on telling us we are the envy of Europe and the world does not know how we are doing it, that we have sustained high growth etc., all of the clichés that are meaningless to the huge number of people who are unemployed as evidenced by today's live register. It is a social disgrace.
As politicians we cannot say we are serving our citizens if we cannot put our hearts and our minds to settling and defining the unemployment problem. We must realise that the live register refers to a huge number of real people. The Minister may rubbish the live register if he wishes but the Government of which I was a member conducted our business having regard to the live register. We were content to do so and to realise that those who signed on were real people. It is easy for us standing here in Dáil Éireann. We should know from our daily dealings with constituents that there are untold tales of misery in real Ireland as distinct from the Ireland of "spiralling growth rates", the pretend Ireland where we are the envy of Europe.
The Minister commenced by referring to employment and unemployment. In June 1995 there were 276,000 people unemployed. I recall a debate at that time on the Estimates when the Minister and Minister of State, Deputy Rabbitte asked for another year to make progress. In June 1996 the number of people unemployed increased to 283,000. during the Minister's year of stewardship at the Department of Enterprise and Employment the number of unemployed persons, as evidenced by the live register has jumped 7,000. It is nonsense to talk about us being the envy of Europe. We are not the envy of Europe, we are the shame of Europe as evidenced by the numbers unemployed here.
I agree we need long-term strategies. The Minister has done well in plotting the long-term strategy but he must do much more and must have a hands-on sustained commitment dealing with the day to day difficulties and challenges of his Department, the chief one being the unacceptably high level of unemployment. The Minister is only scratching at the surface. Any Minister who would say we have done remarkably well when unemployment levels have increased from 276,000 to 283,000 could only be living in wonderland.
My request for this debate was granted, even though the Taoiseach said in a derisory manner that it was a matter for the Whips. That was when he thought he was riding high. In the past debates on such reports often did not take place for months or even years after their publication, but on this occasion it is taking place at least relatively close to the report's publication. It is unfortunate that we are dealing with it on the last day of the term, but I am pleased to know it will be taken again.
The report proposes the establishment of more bodies and councils. It proposes the establishment of a council on competitiveness. While competitiveness is extremely important, it does not require another body to deal with it. The report does not dwell on the barriers to enterprise posed by the proliferation of agencies. I have frequently advocated a reduction in the number of such agencies. I agree that in our time in Government the then Minister for Enterprise and Employment, Deputy Séamus Brennan, and I were party to a decision which led to a proliferation of agencies, but when we get back into Government my main task will be to abolish many of them.
Now that Forfás has completed this major piece of work, it should cease to be a separate agency and become integrated with the Department of Enterprise and Employment. Its mission is complete. The Department could then establish two policy divisions, one to deal with large businesses and another to deal with small or medium sized ones. The panoply of agencies is causing confusion and chaos and has resulted in the development of an internal market and competition between the agencies. In many cases it has resulted in the waste of vast amounts of business people's time.
Agencies offering to support businesses include Forfás, Forbairt, IDA Ireland, the Trade Board, An Bord Bia, FÁS, and so on. There are 35 county enterprise boards, 35 area partnership boards and 36 Leader groups. There are 150 State agencies dealing with enterprise matters and employing vast numbers of people. The area development board structure employs in the region of 400 staff. The county enterprise boards employ 140. Forfás employs 120, Forbairt employs 813, IDA Ireland employs 275, SFADCo employs 194 and FAS employs 2,042, but they are nearly all chiefs, with very few indians. There are 50 different EU and domestic sources of funding, eight Ministers and Ministers of State with responsibility for enterprise under various guises. Allied to this we have the Minister for Education's nonsensical decision to set up ten regional boards of education. These will prove to be a paradise for procrastination and bunkers of bureaucracy, with the inevitable duplication, confusion and chaos for consumers and claimants.
I support devolution but we live on a small island with a small population. We do not need an endless number of bodies catering for different areas of business. What happened to Government by Ministers and officials? What happened to getting to grips with the job? There are more quangos and more people and bureaucracy in the area of enterprise, but less service to the people. People with business ideas submit applications to all these agencies for fear they might lose out on some form of funding. The manner in which enterprise is dealt with is farcical. If it were not so serious it would be comical. In a regional office of IDA-Forbairt there is rivalry about who should deal with clients who telephone the office who merely want to know if their initiatives are worth while and if they would get funding for them. I know the Minister partly agrees with me in this regard. The decision to set up ten new regional boards of education will not improve the curricula or provide better access to education of disadvantaged pupils.
I have argued for the streamlining of agencies and the establishment of a "one door to enterprise" concept in each county, but the Minister's response is to commission further studies and reports. He is in the grip of consultants. I accept that if he is to fulfil his remit as a Minister a certain amount of strategy work must involve devising strategic policies, but that should not happen at the expense of dealing with daily challenges. He should not close his ears to the cries for help from the large number of unemployed people.
The Minister has commissioned 35 studies from consultants at a cost of £1.4 million and many more are pending, with the cost increasing each time. Dozens of studies and reports are ongoing in the Department. The only decisions being taken by the Minister are those to commission further studies. A total of £21 million has been allocated in the Book of Estimates for consultants throughout all Government Departments, an increase of 20 per cent on 1995. That is only the tip of the iceberg and does not take account of the amount spent by agencies such as Forfás, Forbairt and IDA Ireland, which between them spend approximately £2 million annually on consultants' reports. That is nonsensical. Forfás commissioned 19 background studies for the report before us. I am concerned that this document will lead to another raft of studies. I agree with the Minister's proposal to carry out a study on the services sector, in which he has had a keen interest since his time in Opposition.
What has happened to decision-making? Why do Ministers not go into their offices each day, make a number of decisions and carry through on them? Although I had a teaching background, I was at sea for some months when I was first appointed Minister. I experienced trouble at first although I pulled myself out of it. I never forgot that I was in charge and that it was up to me to take decisions on a daily basis. What happened to decision-making? Has it disappeared with the consensus of the three parties in Government? Politically, that is clearly leading to a stultification of decision making. No one can take a decision because it might hurt the feelings, ethos or ideology of somebody in one of the other Government parties. The justice area is a clear example of that. I have frequently said that the instincts of the Minister for Justice are right yet they cannot be implemented because neither the Minister for Social Welfare nor the Tánaiste must be upset. For that reason, the Taoiseach refused to talk about bail and would not let the matter raise its ugly head.
When the Castlerea Prison issue arose I remember the Taoiseach and the Minister for Finance, Deputy Quinn, saying on television there are other ways of dealing with crime. There are, but they involve much social work and rehabilitation which must go in tandem with penal servitude: you cannot have one without the other. The Castlerea Prison project was cut because at the time it suited the Government to get a ready amount of money.
Yesterday, the Minister for Finance plaintively asked what the remedies were for more State spending. I advocate dropping the ten proposed regional education boards. They will be paradises of procrastination amounting to a huge bureaucratic colossus requiring several million pounds, yet no one will gain more access to education because of them. That is my party's suggestion for the Government if it wants to find extra funding but that Minister and his party had to be kept tranquil at all costs, otherwise they might kick up and we must not rock the boat.
Politically, it is always put to us that the former Taoiseach, Deputy Reynolds, experienced difficulties. It may well be there were but at least we did things. With this Government it seems that passivity, engendered by the wish not to rock the boat, is leading to inaction and we have seen the results all around us. We have seen chaos in the Department of Justice and in the unemployment figures. We have also seen chaos caused by the Minister for Transport, Energy and Communications, Deputy Lowry. If I were Deputy Lowry I would never get out of bed because the minute he wakes up in the morning and puts his foot on the ground he is a walking disaster as regards every area under his aegis. It is no wonder he gave the Luas Bill to the Minister of State, Deputy Doyle. At least she brought some sense to it. The central targets of this report are clear. They relate to the creation of 364,000 net new jobs in manufacturing — primarily in services, and I recognise the Minister's commitment to the services industry — leading to an unemployment rate of 6 per cent by the year 2010. It is an ambitious target and I do not quarrel with it. The Minister said earlier that he did not agree with targets, yet President Santer had laid out a clear target for Europe during his Presidency of the European Commission of halving European unemployment by the year 2000.
For over a year I have called for targets to reduce long-term unemployment and to that I add the need to set such targets for the unemployed generally. Rather than having what is regarded throughout the country as a platitudinous debate on the economy, we should set a specific target for reducing unemployment in the next six months. If the Minister does not reach the target I will not criticise him if he has made some effort to reach it. We have to do that, otherwise nothing will happen.
It is right to place emphasis on the services sector where the potential is huge but the discrimination that has operated against it is also huge and those blockages need to be removed. It is also good that the equation constructed puts such a strong emphasis on reducing unemployment, particularly long-term unemployed. The report should have put this issue to the fore. It is the biggest problem, with crime representing a vast waste of human resources and a loss of economic opportunity.
The full implementation of the local employment service in its 14 areas is a key to tackling the problem of long-term unemployment. In any civilised society the best measure must be its ability to encourage enterprise so that employment is created for its citizens. That will be the test for us over the coming 15 years. Half the unemployment rate is long-term and unless we take radical action that group will always be enormous. We must take the steps now.
Challenges are also posed in this document for business and trade unions. Business is expected to spend 3 per cent of payroll costs on continuous retraining as well as investing in research, development and technology. Training will have to be in the ownership of the employers much more than it is now.
The document pinpoints the weakness of indigenous industry and sets challenges for that sector as well as for the Government. It has also emphasised the necessity for competitiveness of utilities such as Telecom Éireann. However, the deal which was masterminded by that arch-strategist, Deputy Lowry, would not make one confident that the strategy will have anything to do with what will eventually emerge. Trade unions are expected to look at the longer term and have a view of the employment objectives of this plan.
What concerns me most about the report is that an exclusion factor is in operation. Those in steering groups are very much the insiders. The outsiders remain outside peeping in an odd time when the curtain is drawn back, but mostly it is drawn. I am worried that this report reflects just one prescriptive dimension.
We have to raise our sights to the future, looking at new markets and building links with South East Asia. We have been divorced from that region as we are the only European country without a direct air link to it. Luxembourg has extensive cargo links there and last month a direct air link opened between Lisbon and Asia.
We are at a turning point in a new Europe. Economic and monetary union is on a fast track and change is happening apace. This document is important for that reason. It is challenging, interesting and comprehensive but it must not be left to gather dust on a shelf. It should not just become the basis for one thousand other reports. Action must flow from the document.
I am glad this debate has taken place because in the past such debates were delayed for months, if not years. One argument I have about this report concerns the proliferation of agencies, the procrastination and the endless delays.
I question the veracity of the growth rates which are trumpeted by the Government and which have also been trumpeted by previous Governments. Much of that growth is coming about through transfer pricing arrangements. Somebody should look at how these growth rates are measured and what they really mean. If we have growth rates of 7 to 10 per cent we should have had a consequent drop in unemployment, yet we have not. In many respects those growth rates are an illusion. We are living in a time when growth is mainly dependent upon transfer pricing arrangements and that was the case for previous Governments also. Multinational transfer pricing arrangements allow the type of growth figures that feature daily and weekly in ERSI and other reports, but many of them are not for real. We heard today that unemployment has increased by almost 8,000 — in June 1995 the figure was 276,000 and two years later it is 283,000.