Enda Kenny
Ceist:1 Deputy Enda Kenny asked the Taoiseach the membership of the cabinet committee on economic renewal; the number of meetings held to date in 2010; the date of the next scheduled meeting. [27646/10]
Ceisteanna — Questions (Resumed)
Cabinet Committee on Economic Renewal
Enda Kenny
Ceist:2 Deputy Enda Kenny asked the Taoiseach when the Cabinet committee on economic renewal will next meet; the number of meetings of the team planned for the remainder of 2010. [30229/10]
Enda Kenny
Ceist:3 Deputy Enda Kenny asked the Taoiseach when the Cabinet committee on climate change will next meet. [30256/10]
Eamon Gilmore
Ceist:4 Deputy Eamon Gilmore asked the Taoiseach the number of meetings of the Cabinet committee on economic renewal held to date in 2010 and when the next meeting is due. [32301/10]
Eamon Gilmore
Ceist:5 Deputy Eamon Gilmore asked the Taoiseach the Cabinet sub-committees in which he or his Department participates [32305/10]
Eamon Gilmore
Ceist:6 Deputy Eamon Gilmore asked the Taoiseach when the Cabinet committee on climate change last met; when the next meeting is due. [32306/10]
Caoimhghín Ó Caoláin
Ceist:7 Deputy Caoimhghín Ó Caoláin asked the Taoiseach the Cabinet committees which have met since 8 July 2010. [32333/10]
Caoimhghín Ó Caoláin
Ceist:8 Deputy Caoimhghín Ó Caoláin asked the Taoiseach the Cabinet committees on which he serves and their membership. [32334/10]
Caoimhghín Ó Caoláin
Ceist:9 Deputy Caoimhghín Ó Caoláin asked the Taoiseach if he will report on his meeting with the heads of 11 State economic development, training and education agencies on 22 September 2010; if he will state the purpose and outcome of the meeting; and if he will make a statement on the matter. [33366/10]
I propose to take Questions Nos. 1 to 9, inclusive, together.
Cabinet committees exist to facilitate the development and co-ordination of public policy in areas where the objectives require the contribution of a variety of Departments and agencies. Their work is ancillary to the work of the Government as a collective authority and meetings are held as necessary. The Government committee on economic renewal was established in September 2008. The committee was reconstituted earlier this year to incorporate the Cabinet committee on science, technology and innovation and was renamed the Cabinet committee on economic renewal and jobs. Membership of the committee, which I chair, includes the Minister for Finance, the Minister for Enterprise, Trade and Innovation and the Minister for Communications, Energy and Natural Resources. Other Ministers attend where required by the agenda.
The Cabinet committee on economic renewal and Jobs has met 18 times to date, four of which took place this year, and is due to meet again on 13 October. With other members of the committee, I also met with the heads of State agencies on 22 September to review their plans to support job creation and help the unemployed. The meeting was briefed on latest progress by each of the agencies and it was agreed that the Cabinet committee would get quarterly progress reports on delivery of our jobs strategy across all sectors.
We also identified a number of priority issues and initiatives which will be taken forward by Ministers and the Cabinet committee over the coming weeks. My colleagues in Government and I will continue to work closely with heads of all of the State development and training agencies to monitor progress in their work, support them in their crucial work and to ensure that there is the sharpest possible focus on job creation across all parts of Government.
I also chair the Cabinet committees on european affairs; social inclusion, children and integration; health; Irish and the gaeltacht; climate change and energy security; and transforming public services. The Cabinet committee on climate change and Energy security last met on 9 October 2009. The next meeting of that committee is scheduled for 6 October 2010.
I am circulating in the Official Report, for the information of the Deputies, a list of Cabinet committees and their membership.
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Cabinet Committee |
Membership |
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European Affairs |
Taoiseach (Chair) |
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Minister for Enterprise, Trade & Innovation |
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Minister for Finance |
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Minister for Health & Children |
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Minister for Foreign Affairs |
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Minister for the Environment, Heritage & Local Government |
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Minister for Communications, Energy & Natural Resources |
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Minister for Agriculture, Fisheries & Food |
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Minister for Justice & Law Reform |
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Minister for Transport |
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Minister of State for European Affairs |
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Attorney General |
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Climate Change and Energy Security |
Taoiseach (Chair) |
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Tánaiste and Minister for Education & Skills |
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Minister for Finance |
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Minister for the Environment Heritage & Local Government |
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Minister for Communications, Energy & Natural Resources |
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Minister for Agriculture, Fisheries & Food |
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Minister for Foreign Affairs |
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Minister for Health & Children |
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Minister for Transport |
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Minister for Enterprise, Trade & Innovation |
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Minister of State for Science, Technology, Innovation & Natural Resources |
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Minister of State for Horticulture, Sustainable Travel & Planning & Heritage |
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Attorney General |
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Social Inclusion, Children and |
Taoiseach (Chair) |
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Integration |
Tánaiste & Minister for Education & Skills |
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Minister for Finance |
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Minister for the Environment, Heritage & Local Government |
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Minister for Health & Children |
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Minister for Justice & Law Reform |
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Minister for Social Protection |
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Minister for Community, Equality & Gaeltacht Affairs |
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Minister for Enterprise, Trade & Innovation |
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Minister for Children & Youth Affairs |
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Minister of State for Housing & Local Services |
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Minister of State for Disability Issues & Mental Health |
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Minister of State for Public Service Transformation & Labour Affairs |
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Minister of State for Older People & Health Promotion |
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Minister of State for Equality and Human Rights, & Integration |
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Health |
Taoiseach (Chair) |
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Minister for Health & Children |
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Minister for Finance |
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Minister for Children & Youth Affairs |
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Irish and the Gaeltacht |
Taoiseach (Chair) |
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Tánaiste & Minister for Education & Skills |
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Minister for Enterprise, Trade & Innovation |
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Minister for Finance Minister for Transport |
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Minister for Community, Equality & Gaeltacht Affairs |
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Minister for Social Protection |
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Minister for the Environment, Heritage & Local Government |
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Minister for Foreign Affairs |
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Minister for Communications, Energy & Natural Resources |
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Chief Whip |
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Aspects of International Human |
Minister for Finance (Chair) |
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Rights |
Minister for Foreign Affairs |
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Minister for Justice & Law Reform |
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Minister for Transport |
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Minister for the Environment, Heritage & Local Government |
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Minister for Communications, Energy & Natural Resources |
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Attorney General |
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Economic Renewal and Jobs |
Taoiseach (Chair) |
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Minister for Finance |
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Minister for Enterprise, Trade & Innovation |
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Minister for Communications, Energy & Natural Resources |
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Transforming Public Services |
Taoiseach |
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Tánaiste & Minister for Education & Skills |
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Minister for Finance |
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Minister for Health & Children |
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Minister for the Environment, Heritage & Local Government |
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Minister for Justice & Law Reform |
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Minister of State for Public Service Transformation & Labour Affairs |
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Strategic Directions for Local |
Minister for the Environment, Heritage & Local Government (Chair) |
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Government |
Minister for Transport |
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Minister for Social Protection |
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Minister for Communications, Energy & Natural Resources |
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Minister for Finance |
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Minister for Enterprise, Trade & Innovation |
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Minister for Community, Equality & Gaeltacht Affairs |
I thank the Taoiseach for that response. The motion in Fine Gael's name to be taken this evening under Private Members' business deals with the issue of jobs and job creation, which is critical to the economic renewal everybody wants to see happen. The Taoiseach announced yesterday a plan to create 300,000 jobs over the next number of years. I ask that we have the opportunity to have a real discussion about this important document in the House next week or whenever, but soon, and set aside perhaps three hours to allow Members give their views on the various sectors referred to in that document. The fact of the matter is that much of it is double counting. In the past ten years, companies supported by enterprise agencies did create 300,000 new jobs and they were all welcome. However, it is also a fact that 350,000 new jobs were lost. While every new job brings a spin-off——
The Deputy must come to a question.
——it is difficult to quantify. These are matters that are important and should be discussed here. Will the Taoiseach instruct his Whip to provide an opportunity for a proper discussion in the House on the document he launched yesterday?
The Forfás report published last week indicated clearly that if jobs are to be created and we are to have economic renewal, we need new investment in key economic areas such as broadband, water and electricity. The point was also made that tackling the cost of services provided or regulated by the Government needs to be faced with courage and decisiveness, telecommunications and waste need to be dealt with and, critically, credit needs to flow to business. Yesterday, I spoke to somebody who lost a job in one of nine shops that closed. Wholesalers cannot collect money from retailers because retailers cannot collect money from those who buy. Was the economic renewal committee given targets to aspire to with regard to seeing jobs created by the agencies? Is it overseeing and driving economic renewal and the implementation of policy that co-ordinates Government job creation targets in broadband and in the smart economy document produced by the innovation task force?
With regard to the trade, investment and tourism strategy drawn up by the relevant stakeholders concerned and the agencies who support them, it is a matter for the Whips to decide when they want to discuss the report. It can be done at any time that is suitable. What we are trying to explain is that there are areas of growth potential in the economy and there has been an increase in exports this year over last year. Enterprise Ireland claims that this year, the companies it sponsors have regained 70% of the orders they lost last year and it expects them to make up the remainder next year. Export performance has been remarkably resilient given the size of the difficulty in which the companies have had to operate.
With regard to the overall economic policy being pursued by the Government, the question of the smart economy is about high productivity in all parts of the economy; it is not, as it is sometimes misrepresented, simply about white coats, PhDs and science labs. It is about innovating throughout the economy so Irish industry and the Irish service industry can be competitive and can operate in export markets in addition to serving the domestic market.
It is important to point out that one cannot decouple the question of economic recovery and job creation from the questions of putting the public finances in order, increasing confidence and ensuring we deal with having a restructured banking system. Much as Deputies want to contend during Leaders' Questions that it is possible to have a banking system without providing the supports necessary to maintain it, the fact of the matter is that we would have a very serious situation and a constant decline in Irish economic fortunes were those decisions not taken. There has been objective support of my opinion rather than of the assertions made by my opponents.
The answer to the Deputy's question is that the Cabinet, which meets weekly, deals with economic matters on an ongoing basis. Ministers are obliged, wherever their responsibilities require it, to implement those aspects of policy that have been outlined based on the resources that are available and the priorities now being set. The revised capital programme is another example of bringing forward a revised programme based on the economic and financial realities with which we have to contend at present.
I do not know whether the Taoiseach's briefing document has the answer to this question. In April, the Department of the Taoiseach stated that progress is already under way in a number of Departments in prioritising the implementation of task force recommendations which can be progressed in the short term. Does the Taoiseach have any information from that section of his Department to indicate what short-term projects have been progressed in the past six months arising from that comment made by the Department?
With regard to the innovation task force and the fund being set up, expressions of interest have been sought and advertised in international financial newspapers and people from abroad are in Ireland this week with regard to this matter. That has been very much welcomed. We also increased the level of research and development that will be available and that is set out in the revised capital programme. We have also ensured that, starting this year, there will be double points for mathematics, which is another key recommendation.
During the week, I spoke to people from Enterprise Ireland and the IDA who indicated that up to half of the recommendations are being implemented even as we speak. It is a very important part of the work they are doing to provide more supports for Irish industry, to make it as competitive as possible and to ensure that innovation is at the centre of what they do. This year, the 1,000th innovation voucher was issued to an Irish company; that is to say more than 1,000 companies use that scheme, which is a means of providing grant aid for the introduction of innovative practices into operations. More than 300 research-led expert teams in the research and development area operate in Irish universities and institutes of technology on such matters. There is a large range of ongoing activity in the area of improving Irish industry and making it more competitive in the innovation area.
Having neglected the jobs issue since even before the start of the recession, I was interested to see that during the month, two and half years into his term of office, the Taoiseach met the heads of the State agencies responsible for job creation. In a matter of weeks, and just in time for the start of the Dáil session, a jobs document was launched. I desperately want to believe that 300,000 jobs will be created over the next five years, and I desperately want to see that jobs document and launch being different from all of the other launches we had in the past on innovation, the smart economy and all of the other fine documents that emerged from Government which were then ignored as the publicity surrounding them began to dry up.
Will the Taoiseach accept that if jobs are to be created in a serious way, he will have to adopt the type of proposals advanced by the Labour Party? He rightly stated that the issue of creating jobs and economic recovery is bound up with the other two pillars of our economic problems, namely, the banking crisis and the public finances. Therefore, will he accept the proposal being made by the Labour Party since the very beginning of the year for the establishment of a strategic investment bank, which would provide the type of credit to small and medium-sized businesses to generate jobs and ensure that finance is available for the type of infrastructure projects that might get people back to work in the short term?
Is the Taoiseach prepared to take up the type of proposals that the Labour Party put forward in the area of tourism; the type of proposals advanced by Deputy Sherlock on the food industry; the proposals published by Deputy McManus on alternative energies; and the type of proposals advanced by Deputy Quinn on labour market interventions and the interface between getting people back to work, up-skilling and using the education and training system to ensure that people have new opportunities available to them and use the period of time when they are out of work to up-skill? It is one matter to publish a document and to give the impression that 300,000 jobs will be created. It is quite another matter to adopt the policies.
Can we have a question?
I am asking the Taoiseach about the 300,000 jobs, that we heard about this week and that we all want to believe will be created. Unfortunately, there are not many who believe it will happen. That is the difficulty. It will not happen unless there are active policies used to pursue it and I am suggesting to the Taoiseach that he might take up the proposals that the Labour Party has advanced in this area.
The Government has always been in the business of creating jobs. Even at a time when we have had net unemployment, unfortunately, we saw in the two main sectors of the economy which are labour intensive there have been casualties but also jobs created. These sectors are the construction related sector, where we have seen the loss of 150,000, and the retail sector, which is also labour intensive. This has arisen because of the depletion in domestic consumption relative to the amount of consumption and demand that was being generated in better times. As Deputy Gilmore will be aware, this is not a static figure. Thankfully, 60% of those who, unfortunately, go on the unemployment register find employment within four to six months. Of course, the problem is ensuring we help the increasing number of persons who are more than 12 months out of work and we have done that by doubling the number of training and education places.
The elements of the jobs policy which have been consistent from the Government, even during difficult times, have been to drive exports and inward investment. Even if one looks at 2009, which was a difficult year in that there was a contraction of 9% in the Irish economy, the IDA successfully obtained 125 projects for the country. Some 70% of those projects were from companies which were already located in Ireland, which, I would suggest, was a strong vote of confidence by those companies in their experience here, both in terms of the quality of the people who are available and the means by which those companies have been able to flourish in Ireland because of the business-friendly environment we have been trying to create here over many years.
Increasing competitiveness and productivity has been another function. We have seen improvement in competitiveness. That has been referred to in economic studies that have been done since then. Another has been helping the unemployed through activation measures, employment schemes, training and upskilling. I could go through a range of them.
As Deputy Gilmore will be aware, there has been a major capital investment programme. That is supporting approximately 30,000 jobs per year. So far this year the IDA has secured 75 investments. Enterprise Ireland is supporting approximately 75 high-performance start-up companies in addition to what it is doing in terms of management support and enterprise support, and what we have done on the employment subsidy scheme in helping over 1,700 companies with maintaining approximately 104,000 jobs which were in viable but vulnerable businesses during that difficult downturn. That scheme would be claimed by many to have been a good initiative by Government in the context of the challenges that those companies were facing. Given how difficult it is to recreate jobs once they are lost, maintaining those people in employment and keeping those jobs going in those companies was a significant contribution last year by Government to maintaining employment. Similarly, there is the Enterprise Stabilisation Fund, from which almost 220 companies have benefited. I do not accept that the Government has been either indifferent or non-proactive on all it can do in these matters against a difficult background.
Taking one of the points Deputy Gilmore makes, I have seen the strategic investment bank proposal. I understand the proposal is to take €2 billion from the National Pensions Reserve Fund. It is not clear where the supplementary private capital comes from for that. Does it come from the capital base of our existing banking system? To what extent would that deplete our own system? It has not been made clear.
Deputy Gilmore often makes reference to 54 policy documents or initiatives that have been mentioned by the Labour Party under his leadership. I am not sure any of them have been costed.
All of them, accurately.
I had a list of many of them. I take it that they are various points of view that have been put forward, but the point I want to make to the Deputy relates to the targets that are set out. These are targets that are not mentioned specifically in the report that was launched yesterday. "Making it Happen" is a report from the IDA, which set out its view of what it can deliver for the country between now and 2020. The IDA has been indicating that even last year, for example, Ireland got more foreign direct investment to its shores than Britain did, and Britain is 20 times our size. There has been a successful diversification of the Irish economic base during the good times which has stood us in good stead.
While there has been a debacle in the domestic retail banking sector it is interesting to note that in the International Financial Services Centre area employment has been maintained in the main and continues to grow in certain sectors. The figures mentioned in this documentation refer back to the State agencies' policy positions. The 780 inward investments that the IDA expects in the coming five years are based on its own projections, experience and pipeline proposals and is predicated on growth in the world economy which has returned this year and is expected to continue.
When I hear the Leader of the Opposition stating that the spirit of the nation is broken, there is no future, there is no hope and it is time to close the door, if that is the sort of leadership that people want provided, maybe they should listen to Deputy Kenny or Deputy Gilmore.
Time for the Taoiseach to close the door.
What I want to do is set out the realistic opportunities for Ireland in the future. There are growth prospects. There are ways in which we can increase our level of exports. We had the food harvest report, which is also a stakeholder-driven report, where people in the industry came together and put forward their ideas for improving the prospects——
In later times, the Taoiseach recognised it.
——for an industry that employs 150,000.
In later times.
What I am simply trying to do, perhaps, is rebalance the debate somewhat where there is an exaggerated portrayal. As difficult as matters are, and they are difficult and must be confronted——
I realise that.
——and we must get on with the business of dealing with these issues. It does not help the spirit of the country to suggest that there is no way forward because there is a way forward.
There is a way. It is not the Taoiseach's way.
We should be prepared to have an intelligent debate on those issues.
(Interruptions).
Where is the Government's credit insurance scheme for business?
I have been raising the issue of employment and the loss of jobs since long before the collapse of Lehman Brothers and long before the banking crisis and the official start of the recession in this country. The reality is that since Deputy Cowen became Taoiseach the country has lost on average 320 jobs a day. This is the 16th month that the live register figures are over 400,000. One in every three on the live register is out of work for over a year.
There is an urgency about getting people back to work and it is very much about how one does it. The Labour Party has suggested that one of the ways of doing that is by establishing a strategic investment bank. If the Taoiseach had read the document — clearly, he has not — he would have seen that the proposal was to take €2 billion from the National Pensions Reserve Fund to use to leverage another €20 billion to ensure that credit is made available to small and medium sized business because, as the Taoiseach well knows, it is not happening from the mainstream banks despite their protestations. It would also make money available for the financing of the capital programme. We know there is a problem with the financing of the capital programme because of the restrictions on the public finances. We know that the PPP model is not now operating and we must look at different ways of ensuring that there is finance available to advance the capital programme which would get people back to work, for example, in construction.
The Taoiseach correctly stated that construction is one of the areas where there has been a significant drop in the numbers of people in employment. People can be got back to work in construction through the public programmes to build the schools and hospitals that need to be built. They can also be got back to work in the retrofitting and renewal of buildings, and in the area of energy conservation. However, it needs some means of being financed and this was one point on which the Labour Party argued for it.
As for the retail area, which the Taoiseach rightly identified as having experienced a significant fall in employment, Deputy Ciarán Lynch made a proposal in this House on behalf of the Labour Party in which he stated that one problem identified by the retail sector was that retailers were unable to revise downwards the rents into which they were locked when times were good. I refer to those who went into some of the new glossy shopping centres and who, before being let units in such locations, had their arms twisted to accept extortionately high rates of rent and who now cannot review them downwards. Deputy Ciarán Lynch put forward a set of proposals in this House that would have allowed for the downward revision of rents in these different times but the Government voted them down. Moreover, the Minister gave a convoluted answer involving the Attorney General, legal reasons and so on. These are practical proposals.
Deputy, may we have a question please?
I am putting it to the Taoiseach again because this is about practical proposals to get people back to work. One problem has been that the Government, which should have been on top of the unemployment problem at a much earlier stage, is now coming to it late in the day. I found it astonishing that the Taoiseach only met the heads of the agencies a couple of weeks ago.
Deputy, we are on Question Time, not Second Stage. Please.
Did the Taoiseach not convene such a meeting with all the agencies much earlier in his reign? Why was it only two years or more into the recession that the Government finally produced a document on job creation?
That is nonsense. As the Deputy is aware, I have been meeting the heads of the State agencies in this capacity in an ongoing basis in many different ways.
They are the crowd to which the Taoiseach referred when he stated "Get all those ... in here".
First, I refer to the question of producing a document. The document was prepared by the people in the industries who are charged with their promotion long before it was decided when the Dáil would return. It was approved and launched by the Government, as it is quite right and proper that people should know about it. They were not going to hear about this sort of opportunity from the Opposition. Second, on the question of a strategic bank, the Deputy has not told me how he proposes to collateralise the €20 billion. From where will he get the €20 billion?
The Taoiseach should read the document.
I have read that document. From where will the Deputy get it?
It is in the document.
It is not. Does he propose to take it from the deposits of existing Irish banks, thereby necessitating their recapitalisation to a greater extent? Does the Deputy want to work this out? He also made reference to the National Pensions Reserve Fund. However, that is a commercial fund and such money can only be taken on a commercial basis and, consequently, if one does so to set up such a bank, one must ensure there is a return on it.
Yes, it should be put into something like this rather than being put down the drain after Anglo Irish Bank.
The Deputy then spoke about using the fund for a slew of capital projects.
Allow the Taoiseach to respond without interruption, please.
We are already spending €5.5 billion on capital projects this year.
No, the Government is not.
It is and by the end of this year——
No, it is not. It has been earmarked——
Allow me to bring the Deputy up to date.
Deputy Gilmore, please.
By the end of this year, another €850 million in contracts will have been signed. These matters——
Such contracts will have been signed. While they will be on the books, the money is not being spent.
It is being spent. There always are timing issues in respect of contracts. As the Deputy is aware, additional contracts are being signed by the NRA and others either now, last week or certainly in the coming week. I have spoken to its chairman recently about it. A range of capital projects is ongoing.
A total of €1.5 billion has been allocated to the roads programme.
I am responding to the Deputy——
One speaker at a time, please.
——because he has suggested there is no interest in job creation. One cannot decouple job creation or economic recovery from getting the public finances into order. While everyone agrees with this point in principle, as one goes about doing it everyone disagrees with every cut and comes into the Chamber to make a representation as to why it should not take place. The point is that we are spending €50 for every €30 we take in, which is not sustainable. If we want to create jobs and have a competitive economy, one must deal with this issue. One cannot walk away from this issue and the point I made earlier was that the deficit there is €18.5 billion. As for the previous discussion on the banking situation, which is also serious, if €30 billion is what ultimately is to be paid, that would mean a payment of €1.5 billion.
The Government stated that we would not lose anything.
No, I am trying to get people to see——
Two years ago, the Taoiseach stated it would cost nothing.
I am trying to get people to see what is the situation.
We see it.
In respect of the guarantee that the Labour Party opposed——
Yes, and we were dead right.
It opposed it today. The Deputy should not be trying to suggest, as he is, that it was the scope of the guarantee the Labour Party was against, even though none of the subordinated debt was called upon and much of it, incidentally, was discounted during the time it was in play anyway. However, Deputy Gilmore is now trying to be Mr. Responsible. He is playing the old populist game again by stating that he is against the guarantee because he is against the banks. This is the line he is playing and he is winning out there with it. He is winning because what he is trying to do is to tell people that they can have an economy but should not have a banking system. I am afraid it does not work that way. Nevertheless, the Deputy will get plenty of kudos from so doing because that is the way he has been carrying on. He is playing the old game and hoping to get a few votes out of it.
Is this from Fianna Fáil?
Deputy Gilmore should respond briefly as we have spent an inordinate amount of time on this group of questions.
I do not understand the Taoiseach. I try to be constructive and offer suggestions. He launched this document yesterday that refers to 300,000 jobs. It would be great were that to happen and the Labour Party certainly will support whatever must be done to make it happen. However, the measures that are required to make it happen are not there. It is cruel to tell people who are out of work and who are worried about the future that 300,000 jobs will be created. They do not believe it and I do not believe anyone in this room believes it, other perhaps than the public relations people who have been spinning it.
They do not believe it either.
We need practical measures to get people back to work. I have been suggesting such practical measures to the Taoiseach. The Labour Party makes proposals in the House, some of which I have identified. It puts them on the Dáil agenda and the Government votes them down. I put them forward and try to argue them with the Taoiseach. I suggest them and advance them to him——
The Deputy should conclude with a question, please.
——but all the Taoiseach does is to engage in a bit of Opposition kicking.
No, I do not.
Instead, why does he not engage constructively with the Opposition parties about what is required to get people back to work? It is the single biggest thing that must be done in Ireland. While I note the Taoiseach's points about the public finances, the banking system and so on and accept they are the other two legs of it, we cannot get economic recovery unless we get people back to work. The Government will not solve the problem in the public finances unless it gets people back to work——
Will Deputy Gilmore co-operate with a question?
——because of the cost of unemployment to the public purse.
The problem I have with Deputy Gilmore is that he questions the bona fides of this Government at all times. He suggests that it brought forward——
I questioned the Government's record.
No, he did not. He stated that we brought forward a glossy strategy and that while he hoped it was there, he did not know what was its basis. It is based on the policies of the IDA and Enterprise Ireland. Consequently, if he wishes to question the ability of Frank Ryan and Barry O'Leary to deliver, he should say so openly because that is the basis on which those figures are geared and have been brought forward.
Come on.
The Taoiseach should stop hiding behind public servants.
As for the other point, my point about the guarantee is that Deputy Gilmore proposes setting up a new bank but is not prepared to back a guarantee that keeps deposits in our existing banks and keeps a funding mechanism for the banks we have. Instead he wants to start another bank. Where is the consistency in his approach?
What about Fine Gael's proposal for a wholesale bank?
He wishes to play it both ways all the time.
I did not say that.
The bottom line is that the entire purpose of the State guarantee that Members will discuss and hopefully will approve this evening is on the recommendation of the Governor of the Central Bank.
The Taoiseach is very sure of himself.
However, according to Deputy Gilmore, he is wrong and Deputy Gilmore is right. The Labour Party is right and he is wrong.
Banks are not lending.
Moreover, in respect of setting up a new bank, Deputy Gilmore suggests taking €2 billion from the pension reserve fund and leveraging €20 billion from somewhere, wherever it would come from. Obviously, it would be coming from the funding base of the two existing banks. This evening, Members will attempt to make sure that we have a banking system that I acknowledge requires improvement and restructuring and that must get more credit out to business. However, if we are to recapitalise our banks, one should not talk out of both sides of one's mouth.
It is unfortunate that Question No. 9 was grouped with the other eight questions. It had nothing to do with Cabinet committees, was a specific stand-alone question and could have been taken accordingly. That said, the Taoiseach should provide Members with a couple of examples of practical measures that were identified and agreed in the course of his meeting with senior representatives of the 11 agencies on September 22 last that would contribute towards both the protection of existing jobs and the creation of new jobs in this economy. I will give two examples. Was consideration given to the restoration in full or the acceleration of a schools building programme that would allow for the provision of much-needed infrastructure and the creation of employment in construction? Was consideration given to an adjustment in local authority and public sector contracts in construction service procurement that would allow for a more level playing field for smaller businesses and businesses generally?
Let us consider breaking down tenders into smaller parcels. This is normal procedure across the majority of EU member states, yet it seems to be frowned upon by the Irish Government and its Departments and agencies, with the result, for instance, that all the leaving and junior certificate examination papers for this year were printed in Britain.
Hear, hear.
Let us have a little common sense. There are practical steps that can be taken. It is not in contravention of EU diktat to break down tenders into smaller parcels. It happens in almost all other member states. Why we cannot act imaginatively, ensure that work is created in Ireland, allow for the sustaining of existing employment and help in the creation of new jobs is simply beyond my understanding. The Taoiseach has come very late to this.
Has the Deputy a question?
Bearing in mind that the meeting was just a week ago today, will the Taoiseach give us but two examples of practical measures, from what I am sure must have been a long agreed list, that will now be taken that resulted from the engagement with the 11 agencies and which we would be most happy to welcome if the Taoiseach is to stand over his proposals on job creation? Will he stand over them? Will he get behind the proposals and plans announced over the past 24 hours and ensure the resources essential to bring them to fruition will be provided? If the Taoiseach would answer both those questions, I would be thankful.
Any meetings I had were to talk about what is being done and consider whether the agencies have other ideas that we could modify and bring forward. Those ideas are being considered at present. It is often forgotten that FÁS is also an employment service organisation. Some 62,000 people will be taking up employment as a result of jobs advertised through that agency alone, quite apart from other employment agencies. The number of people coming in and out of the workforce is not a static figure. People are moving in and out of it all the time. That is not often appreciated in terms of how the labour market works or what job opportunities arise. It is often overlooked.
I listened to what the State agencies had to say on how we might improve, where possible, existing policies and how we might better support businesses, including small and medium-sized businesses. One of the tasks we must also complete is improving credit access because it is fundamental. Many of the arguments we are having on banking here overlook the fact that unless we have a functioning banking system, we cannot have a functioning business sector. We cannot maintain, create and grow jobs without the certainty and predictability of access to funding. That is why we must make certain decisions and put the line under certain issues. Unless we do so, we will continue to be handicapped by people not being able to gain access to the funds they need. I am thankful, however, that Bank of Ireland and other banks are in a position to get funds from international markets and do the business of banking, which is about providing money to those who have viable projects, businesses and operations and to ordinary consumers who require banking services just to conduct their daily lives. We must take cognisance of this.
With regard to the specific meetings that were held, there were talks with FÁS on what schemes could be improved. There were talks with Enterprise Ireland on what further assistance we can give. It is important to note the green enterprise action plan. All such issues were mentioned. Some 5,000 people are employed in energy-efficiency retrofitting. These initiatives are being taken on. We have seen what has been done in respect of tax exemptions for those who set up their own business and PRSI exemptions for employers who take on more employees. We are doing all these things. Ultimately, however, while they are helpful for thousands of people, the fundamental question of how we keep 1.8 million people at work and get more enterprises to provide more permanent and gainful employment is one of ensuring we have a competitive economy, driving our exports, cutting our costs and getting our public finances back into order. Unless and until we do that, we will not be looking at the core of the issue, namely, making sure that we support enterprise at a difficult time for it but also get our public finances back into order.
There are many so-called economic commentators who support the Taoiseach's particular approach. One of the flaws in their respective presentations time and again is the view that a stimulus package must wait until after the deficit is addressed by 2014. All these points must be addressed together. We must address the deficit, not by the means that the Taoiseach has promoted over three successive budgets. There are alternatives and we ask the Taoiseach to consider them. We have submitted them, argued in their favour and put forward cogent reasons they would work better, but the Taoiseach does not give them any consideration.
The jobs measures announced by the Taoiseach yesterday are high on targets, which is welcome, but low on substance in terms of how they will be realised. I ask the Taoiseach to put the meat to the bones and outline in this House exactly what practical steps he proposes to take. He has given us nothing in regard to his response vis-à-vis the meeting last week with the 11 agencies. Once again, it is all broad-brushstroke stuff. There is no detail on practical steps that can be taken. I ask the Taoiseach again to consider the arguments being presented by Opposition voices who are putting forward real and sound proposals that will sustain existing employment and create new employment, and which the Government now has an opportunity to influence. Will the Taoiseach assure the House that he will consider some of the simple, practical propositions that we have put forward, only two of which I mentioned? We put forward a document containing 80 prior to last year’s budget.
As I said to Deputy Ó Caoláin, the issue is that there are a number of practical steps being taken in a range of areas to assist businesses and assist in the creation of jobs, quite apart from the macro-economic imperative of getting our public finances in order. There are significant funds available. With regard to developing the tourism product, the allocations have been trebled. Over €130 million was allocated to support viable but vulnerable industries. Over €130 million was allocated for the retrofitting scheme. Some 60,000 homes have been retrofitted under the scheme during 2010. That is not an insignificant amount of work when one considers that, in a normal construction era, 30,000 to 40,000 units per annum would be regarded as the normal demand. This would be the case in more normal times, such as those before what happened in the noughties, that is, between 2000 and 2010. There is now a surfeit of housing capacity.
Many people formerly in the construction sector are now registered under the energy efficiency schemes. One sees many of them going about their business in vans all over the country. People are getting work under the schemes and more can be done in this area. I have been asking what we can do to assist the construction sector bearing in mind that there is a surfeit of homes. The energy efficiency area is an obvious area and the allocation for this area is not insignificant. The money allocated is money that would never have been allocated, even during better times.
There is a range of actions. The Deputy asked about the stimulus package. The stimulus package provided in other European economies had an impact amounting to approximately 2%. We are providing, through our capital investment programme, a stimulus of between 4% and 5%, all of which is borrowed money. However, we are providing it because we want to invest for the future. We are investing in our infrastructure, not only our physical infrastructure but also our health and education infrastructures, in an unprecedented way. This has been the case even in the past three years, despite the economic difficulties. There is a need and demand for this. The investment in third and fourth level education has been hugely significant, including in Science Foundation Ireland. In the arts, I recently attended the opening of the centre for performing arts at the University of Limerick, a magnificent new addition to the college's infrastructure. I congratulate Micheál Ó Súilleabháin and the others involved in that initiative. Across the board an effort is being made whereby public investment is seeking not to replace but to make up in some respects for the loss of private sector investment in some of those areas which were labour intensive. We are doing that and the evidence is there to be seen. In terms of the multi-annual investment programmes, there is talk of how sceptical people are in regard to jobs targets, even though previous jobs targets were met. In regard to the national motorway system, for example, I recall there were many who doubted very much that it would happen. In fairness to the NRA, it built up the capacity and expertise and delivered on time and within budget and, in many cases, before time and within budget.
There are things that are being successfully achieved. Yes, there are challenges we must face up to. Yes, there are more initiatives we must look to in terms of work placement, helping graduates who are unemployed and so on. We will work on these issues. It cannot be said that the Government is not proactive in this area. We are being proactive in every way we possibly can. However, at the end of the day, we have to continue with the overall macro-economic policy which has stabilised the economy this year and stabilised unemployment to a greater extent.
Come on.
(Interruptions).
Let me explain. The unemployment figure is down 25,000 on last month, much of it due to the take-up of back to education and other allowances.
The figure always decreases in September.
I know it does. However, even the seasonally adjusted figure shows a decrease. Deputy Gilmore did not ask about the figure this month even though he asked about it every other month. That is probably an omission on his part, he may ask about it tomorrow.
Will the Taoiseach be here tomorrow?
I will be here for Deputy Gilmore any day. The point is that it must be recognised that everything we can possibly do in this area we are doing and will do. We will listen to constructive proposals, but they must be within the budgetary realities we are all operating under.