Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Chairman and all members for their contributions today. I will kick off with an overview of the points made to me. If one considers the range of issues that have arisen, which include everything from the post-leaving certificate courses to nuclear energy, with a bit of Bonar Law in the middle, the breadth of those issues is absolutely huge. I do not mean that in a flippant manner; if one considers the material in the draft national reform programme that was placed before the joint committee, the reason such a breadth of questions was raised is the breadth of policy areas that have been included in the aforementioned plan. I make this point to emphasise what an important development this is for Ireland from a governance point of view. This is Ireland's first time participating fully in the semester programme and, although I suspect members already are aware of this point through their work within the Oireachtas and their constituencies, hopefully this will bring home to people the breadth of areas that are involved in trying to get the country back to where everyone desires it to be and the breadth of areas that therefore are involved in the semester process. The manner in which I would position this process for members is by noting that it covers a great number of areas and items of work one would wish to do anyway and which would be of benefit to the country and the people in any event. The semester process ensures that the Government provides the continued focus that is needed here, but it also facilitates other countries in doing the same. One of the bitter lessons learned from the recent crisis is that difficulties and problems in other countries can cause the unravelling of one's own efforts. This is the rationale behind the semester process and amidst all the questions of detail that I will do my best to address in a few minutes, one should not lose sight of this bigger picture and of the reason for this process being in place.

I propose to go through each of the points of detail that have been put to me and will do my best to address each in turn. The Chairman kicked off with two questions, the first of which pertained to the employment targets and benchmarking them towards the full employment objective. The Government's objective is to restore the economy to full employment by 2020. Benchmarks that are laid down within this programme and the targets that are laid down from an employment point of view will be vital prerequisites for the economy getting to that point by 2020. If one considers the figures supplied, for example, the target is to raise the employment rate for women and men between the ages of 20 to 64 to between 69% and 71%. In 2008, I note the equivalent rate was 71%. Consequently, while this is a really demanding objective to reach, the Government believes it will do so. Moreover, as that point is reached, it will ensure that the economy can get to a point at which it can help to deliver the full employment objectives the Government wishes to achieve across that time.

As for the question the Chairman put to me regarding balanced regional development, in a point that also was raised by Deputies O'Reilly and Kyne, as well as Senator Comiskey, the Government is very much aware of the regional dimension in delivering this programme.

We will do our best to take account of the input of the Committee of the Regions. I am aware of the views it has articulated to the committee in response to which I would make three points. The first is that it will very much be the job of the line Minister with responsibility for the sectoral area concerned to ensure the regional objective is delivered. Second - this aspect was raised by Deputy Joe O'Reilly - it will very much be the role of bodies such as Enterprise Ireland and IDA Ireland to ensure a regional dimension in our national objectives. Third, there is an important political dimension to all of this; as clustering in our cities and urban areas continues to accelerate - Deputy Seán Kyne made reference to the fact that 50% of the population would be resident in Leinster in the medium term - we need to examine political configurations and the bodies that will act in a way that is consistent with the overall development of the country. I have recently heard discussion about strengthened regional assemblies and the type of work they could do. That is something we should examine and it is facilitated by the Local Government Reform Act 2014. I am very clear, even though my constituency is an entirely urban one, located in the centre of the capital city, that we cannot deliver on our objectives for everybody in the country unless there is balanced regional development. The roles of Ministers and semi-State bodies in this respect are important, but we must examine how we organise political activity to meet this important objective, a matter about which Deputy Joe O'Reilly also asked me.

The Deputy also raised the issue of apprenticeships in the construction sector which now accounts for the equivalent of 4% to 6% of national output, whereas at the peak of the boom it was equivalent of 20%. Most developed economies of this size would have a construction sector which would account for the equivalent of 10% to 12% of national output. The first thing we can do to address the concerns about apprenticeships identified by the Deputy is develop a reasonable, well regulated and appropriate construction sector for an economy of this size. I take on board the point made by the Deputy. I am aware of cases in my constituency where young men and women cannot fulfil their apprenticeships. What I would like to see happen is local authorities - the gateway programme in this area has been identified by the Minister, Deputy Phil Hogan - continuing to do what they can to allow people to complete their apprenticeship programmes and, as the construction sector recovers, enable them to participate in its development.

The Deputy also mentioned the cost of wind energy. This issue is covered on page 31 of the national reform programme. To date, wind energy production has been the largest driver of growth in the area of renewable energy. The national reform plan contains considerable material detailing how we can seek to develop its contribution further. It recognises that further development is needed if Ireland is to meet its objective of 40% of energy consumption being met from renewable energy sources. It contains some important strategies for how we can achieve this objective.

Regarding nuclear energy, while the semester programme includes many things, it does not include a reference to nuclear power. I will leave that issue to the relevant Minister and Oireachtas committee. There are many other strategies and plans, in respect of which we have the infrastructure in place, that will enable us to deliver on our objectives in meeting the energy targets set.

I agree with Deputy Joe O'Reilly in his point on the preschool year. I am aware of the commitment made by the Government which the Tánaiste and the Minister, Deputy Frances Fitzgerald, announced recently, whereby in a number of areas across the country it is seeking to deepen the current early intervention measure. There is no doubt that the preschool year and even interventions made prior to it can change the life chances of individuals. I have seen this happen and want to see more of it.

On Deputy Michael Colreavy's point on including detailed plans within the national reform programme, the problem is that if we were to include detailed plans within it, we would end up with a programme which would run to thousands of pages. In terms of what it does - I believe this assertion will be borne out if people read through it - it makes reference to detailed plans being in place in different areas. To return to the point on energy, if members look at the work being done on the carbon free roadmap and the reference to plans to improve the energy efficiency of housing stock and public sector buildings, there are many references to detailed plans that are already either in place or to when they will be made available and delivered on by the Government.

On the point made by the Deputy on the dangers of increasing inter-country collaboration, we cannot have our cake and eat it because we have many energy targets and meeting them will require collaboration with other countries. As we collaborate with other countries, we will end up with ways of working to deliver on targets that they need to meet and get from them things that we need. Owing to events that have taken place within Ukraine, my colleagues in other countries are very clear that the game has now changed and that the issues of energy independence and energy security are of inordinate importance. I saw this at the March European Council when a discussion on climate change, emissions and other vital issues that had been planned for a very long time took on a completely different context owing to the events that had taken place, the concerns about energy independence and the need to ensure energy security. That is the context within which we will have to evaluate our plans.

On the point made by the Deputy on the tensions between food production and climate change, if we consider the commitments we have made to ourselves as a country and the global issue of food security, a matter on which Deputy Bernard J. Durkan touched, having regard to the extraordinary statistic that we are the fourth largest exporter of beef in the world - I am surprised we do not hear this mentioned more - we realise we face a challenge that we will need to manage. This is a point the Government has been making forcefully. The Taoiseach has raised the issue at the European Council and I have raised it at the General Affairs Council. I know that the Minister, Deputy Phil Hogan, has also raised it. We have made the point that in terms of how in the context of climate change emissions and costs are calculated, reference needs to be made to the fact that land use is very important. There are consequences attached to land use. We need to have this recognised. I emphasise the determination of the Government to deliver on the objectives set in terms of climate change and our emissions and I am confident we will be able to deliver on them. The plans are in place to do so and further plans will be elaborated on. The legislation the Minister, Deputy Phil Hogan, will be bringing to the relevant committee on climate change and on how we will track our emissions is an indication of our commitment and our confidence that we will deliver in meeting these challenging targets.

I hope I have addressed the issue raised by Deputy Séan Kyne regarding the construction sector. On the single market for energy, I refer to my earlier comments about the importance of energy independence. We will see a renewed focus on the delivery of the infrastructure required to ensure energy security. We need to be mindful of the changing landscape as we make our own policies because it will be a factor when companies, including Irish companies, decide where they should locate their operations.

I completely understand the point Senator Kathryn Reilly made on displacement under the youth guarantee. One can apply the displacement argument to any intervention by the social welfare system in the operation of labour markets, but any intervention in the social welfare system or fiscal policy aimed at increasing employment or dealing with challenges in the labour market will have consequences elsewhere. We need to track these consequences and be aware of them. Even as we become aware of the nature of these displacement effects, I am certain that policies under the heading of the youth guarantee such as JobsPlus will still demonstrate their effectiveness. I am sure the Senator will agree, however, that the potential for displacement in the economy is not a rationale to do nothing.

Senator Michael Comiskey spoke about the targets for the regions and wind energy. He also raised the issue of low wage jobs and the tax challenges in that regard. The Minister for Finance has pointed out that, notwithstanding the huge pressures we continue to face, when times were extraordinarily bad, we still managed to make changes to the tax system to target and incentivise job creation through, for example, changes to VAT rates and taxation of farmland as it moved through families. We need to do the same in respect of the tax challenges that arise from low wage jobs. As members will be aware, many are finding that if they work an additional hour of overtime, they will lose half of what they are paid through income tax and the universal social charge.

I entirely agree with Deputy Eric Byrne and look forward to proving the cynics wrong. I am certain that the Government and the people will demonstrate an ability to govern themselves in a still challenging external environment. The people who were most critical of the troika's presence now appear to bemoan its absence. As a liberal democracy now celebrating the centenary of many of the events that led to its foundation as a state, it is not politically or economically feasible to expect to participate in an external aid programme for one second longer than is necessary. The moment the Government judged it possible to exit the programme, we did so and our objective now is to ensure the economic sovereignty we have regained benefits the people. The Deputy outlined concrete examples of how that needed to be achieved.

In regard to the legal services Bill and the cost of legal services, the national reform programme refers to the establishment of an office of a legal costs adjudicator which will assume the role of the Taxing Master, modernise the way disputed legal costs are adjudicated, issue guidelines and publish determinations. The Deputy also spoke about the costs imposed on families and the economy by unreasonable and unsustainable legal costs.

In regard to the Deputy's comments on the cost of the medical card system and consultants, I am sure he is aware of the information recently released into the public domain which showed the degree to which consultants' wages had been cut in line with wage cuts elsewhere in the public service. That has been put in place, but we must balance it with the fact that we need a large number of consultants and a consultant-led health service to deliver the best health outcomes for the people we represent. The consultants who possess the level of expertise we require will be aware of the rewards and opportunities on offer in other countries. I note, however, that the salaries available to them have changed in line with the sacrifices other members of the public services have made.