Vol. 511 No. 6
42 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment the proposals, if any, she has to tackle the skills shortages in view of the fact that a recent study has estimated that Ireland will need an additional 160,000 skilled workers over the next ten years; and if she will elaborate on the statement made in the past week regarding a quota system. [25082/99]
The national development plan is predicated on a continuation of strong labour force growth, albeit at a slower rate than in recent years. An annual average increase of about 2 per cent is forecast, which corresponds to an increase of about 250,000 in the labour force over the period of the plan. This is based on estimates of the natural increase in the labour force, augmented by higher labour force participation by women and the continuation of net immigration. These forecasts represent a reasonable assessment of likely future labour market developments.
Employment in the period ahead is expected to grow at an annual average rate of at least 2 per cent. Undoubtedly, with unemployment at record low levels and projected at this historically low level into the future, the labour market will remain very tight. The Government is pursuing a wide range of policies to ensure that the economy remains competitive and continues to grow in a sustainable and low inflationary way. In recent replies to the House, I described the broad range of initiatives taken to enhance labour supply and the skills of the current workforce. These include fiscal initiatives such as the introduction of tax credits and the removal of persons earning up to £100 from the tax net. Programmes aimed at systematically engaging with the unemployed and supporting them into employment are particularly significant in that regard. The response to skills bottlenecks is being pursued through the implementation of the recommendations proposed by the expert group.
Facilitating women's participation in the labour market will further enhance our labour supply. As I indicated, we need to ensure that women who have been out of the labour force have a significant incentive to return to work and to do more to ensure that child care provision does not act as a constraint. The forthcoming budget will include significant initiatives in this area.
Immigration has been and will remain an important source of skills required to meet the needs of our growing economy. Irish people returning home and EEA nationals who do not require work permits constitute the bulk of our immigrants. This flow can be supplemented by an orderly intake of non-EEA nationals under a work visa regime which matches the intake of the identified skill needs of the economy. It is proposed to establish an inter-departmental group to consider such a scheme and following consultation with the social partners to report to Government by the end of February.
On 4 November the Tánaiste and Minister for Enterprise, Trade and Employment informed me that only 15 work permits had been issued to asylum seekers who were told they could seek work. Has she carried out an audit of the skills base among the 2,000 asylum seekers given that workers are needed in every sector? Has she carried out an audit to fill some of the skills gaps which exist? If not, why has that not been done?
My next query will give us an idea of the number of work permits which have been issued since 4 November and I hope it is much more than 15. Will the Tánaiste and Minister for Enterprise, Trade and Employment clarify what the spokesperson from her Department meant when he said that a new system of visas for workers would be introduced by early spring? Will the Minister indicate how that can happen given that all she said earlier was that an interdepartmental committee would be established? Does she envisage that by the new year each embassy will be told there is a quota regarding the number of people who can come to Ireland without a job offer but with particular skills? How does she envisage the system working?
Perhaps I could deal with the Deputy's question about asylum seekers when I reply to Deputy Rabbitte's question which relates to that area.
The skills issue arises in my question.
New systems are in place and FÁS has been asked to intervene regarding the people who qualify for work with a view to assessing skills and helping eligible asylum seekers to access job opportunities.
Regarding the new immigration policy, there are enormous shortages in certain areas of the labour market which cannot be met from our own resources or by people coming to live in Ireland. An unprecedented number of work permits is being granted and the regime for the granting of such permits has been considerably liberalised. However, there is a need to do more. I am working with the Minister for Justice, Equality and Law Reform on a new immigration policy for the Government which will effectively grant work visas to citizens living abroad to allow them to come to Ireland and access job opportunities.
The reason it will take time to decide precisely how this will be done is that there is a need to assess and identify the relevant skills areas. There is also a need to talk to the social partners and I am not in favour of a country quota system. I do not want us to create a brain drain in developing countries. We need to tie the new work visas to particular skills and have an open policy with regard to countries. However, I am anxious to ensure that Central and Eastern European countries and some developing countries in addition to places further afield qualify under the immigration policy.
Together with the Minister for Justice, Equality and Law Reform, I intend to put a working group in place. We have done a considerable amount of work on this matter since the summer when the decision on asylum seekers, which is a temporary arrangement, was made. There is a need to involve the social partners in relation to areas in which permits might be granted.
Is the Minister confirming that the article on 4 November is incorrect? In that article, a spokesperson for the Minister said it was hoped that the new system would be in place by early spring and that the Minister intended to establish a quota of 5,000. Is the article wrong? Is it the case that the system will not be in place by March?
An annual number will be allocated but it will not be on a country quota basis. The intention is to have it in place early next year.
The Taoiseach said the legislation will not be ready until the middle of next year.
