Oireachtas Joint and Select Committees

Wednesday, 20 November 2013

Joint Oireachtas Committee on European Union Affairs

Social Dimension of Economic and Monetary Union: Discussion with European Commission

12:40 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael) | Oireachtas source

I thank Mr. Richelle for attending and giving us the benefit of his time and experience. To what extent has he identified the most commonly recognised factors that create inequality throughout the European Union? To what extent does the Commission recognise these factors? To what extent has there been an indication given of the means by which they can be addressed?

Growth has been mentioned quite a few times. It is inextricably linked with social issues. What is the most prominent emerging feature that the Commission has encouraged in order to allow growth to take place, having regard to the fact that we all must stay within certain expenditure limits at this time?

Mr. Richelle has rightly mentioned solidarity and cohesion on a number of occasions. How do they manifest themselves throughout the member states of the European Union, inside and outside the eurozone? To what degree has the Commission identified areas in which there is not the optimum level of solidarity and cohesion? Have performances of individual member states been rated in terms of how they have addressed unemployment, inequality and economic performance, having regard to past experiences and the causes of our difficulties?

My last point is on the youth guarantee, critics of which will say it is insignificant, but I disagree. It has the potential to make a major impact on the level of youth unemployment across Europe. To what extent does the Commission monitor issues in each member state? I want the delegation to refer in particular to the member states which have, like Ireland, been in a rescue programme. Ireland will be in such a programme for another couple of weeks. I want the delegation to recognise that it has a particularly difficult job to do.

I get irritated, as I am sure the Chairman does, when I hear reference being made on a regular basis to the preferential corporation profits tax regime in this country. In some quarters in the European Union there seems to be a belief Ireland has achieved a particular advantage in a way no other country has done. That is not true. To what extent does the Commission recognise this? It is very important that the Commission and each Commissioner recognise the importance of this matter. Ireland has tried to work its way out of a very difficult situation and the people have made a major contribution to achieving this objective. Across the board taxes have been raised, incomes have been reduced, the public sector has shrank and all this has been done at great cost to ourselves. This, in turn, has created unemployment and a degree of inequality. I would like to think the commentary will recognise this effort at all times. Commentary in one part of the Union is viewed in a different light in another. For example, we do not all have the same access to the facilities and services available at the centre of some organisations. As Ireland is not joined by land, it incurs an extra cost for transport. It shares a language with its nextdoor neighbour, which is helpful, particularly from the point of view of direct foreign investment. This should not be undermined by something that appears to create a level playing field but which instead creates greater inequality.

I wish to make a final observation on creating equality in Ireland, particularly in terms of housing in the region in which I reside. In the east of the country, when a person is unable to obtain a home, he or she will, as a consequence, be unable to find employment without losing benefits. Mr. Richelle has referred to the matter and is right. The Chairman will be glad to know that I will not continue on that matter. However, I look forward to having an opportunity to debate these issues with anybody anywhere and until such time as the European Union and individual member states recognise that these issues will have a major impact on our economic and social performance.

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