Dáil Éireann Debate, Wednesday - 23 May 2012
87 Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the various factors likely to affect growth in this economy have been identified and isolated with a view to specific or particular action likely to result in job creation; and if he will make a statement on the matter. [25940/12]
Amharc ar fhreagraLast year, the economy expanded by 0.7 per cent, the first year of growth since 2007. However, in order to make inroads into the unacceptably high level of unemployment, the growth rate will have to pick-up. This will require further improvements in competitiveness. In addition, sustainable public finances are a prerequisite for economic growth and we must therefore correct our excessive deficit by 2015. Finally, we need to be sure that we have a banking system which is capable of supporting the economy. These are the broad areas being addressed by Government and progress is being made. For instance, I think it's fair to say that there are tentative signs of an improvement in labour market conditions. The latest data show that employment increased by 0.6 per cent (the equivalent of 10,000 jobs) in the final quarter of last year, the first increase in four years, and I am encouraged by this. In addition, there has been a modest fall in the Live Register in the opening months of this year.
I am confident that the measures introduced by this Government, such as reducing the rate of VAT in the high value added tourism sector, are playing an important role in both creating and sustaining employment.
Finally, I want to reiterate that addressing the difficulties in the labour market remains the Governments biggest challenge and, accordingly, the Government is giving its highest priority to job protection and job creation.
