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

It is consistent. It refers to the timing of achieving this objective as recommended by the Commission. We will achieve it but we believe it will take a different length of time from that in the CSR.

The third CSRs is focused on further strengthening of our active labour market policies. This means building a bridge to the workplace for the unemployed. It also means being responsive to an accelerated pace of change by supporting continuous upgrading of skills and capabilities. Lead responsibility is with the Ministers for Social Protection and Education and Skills. The Intreo one-stop shops will be fully rolled out by the end of 2014. We have produced a new five year further education and training strategy following the establishment of SOLAS in October last. We continue to support a significant expansion in training and work placement, including through rolling out the first phase of the youth guarantee. While we face a significant challenge in expanding service provision within current resource constraints, the further development of our active labour market policies remains unambiguously at the very top of our agenda. The next phase of this work will be reflected in the forthcoming Pathways to Work 2014.

The fourth CSR focuses on a set of policy challenges in the area of social inclusion. These are jobless homes, child poverty and child care services. Lead responsibility is primarily with the Ministers for Social Protection and Children and Youth Affairs. Low work intensity is the official EU indicator for households with little or no paid employment. It is clear that the share of the Irish population in such households, at almost one in four, is significantly above the EU average. Key policy responses include Intreo, reform of lone parent supports and development of the housing assistance payment. The advisory group on tax and social welfare is due to report shortly on structuring a smoother transition from welfare to work. Further research is under way through the National Economic and Social Council to support clearer identification of key problems and solutions. There is, however, little doubt that increased labour market participation remains the best route out of poverty, and that affordable child care will continue to play an important role in this context.

The fifth CSR is focused on policy supports for SMEs, with a particular emphasis on access to finance. These are issues on which the Ministers for Finance and Jobs, Enterprise and Innovation lead. The Minister for Jobs, Enterprise and Innovation, Deputy Bruton, is finalising proposals to improve the operation of the credit guarantee scheme. A review of the microfinance scheme will commence shortly. The Minister for Finance, Deputy Noonan, recently launched the SME online tool that will help Irish start-ups and small businesses navigate the range of supports for which they may be eligible. The establishment of the strategic banking corporation of Ireland was announced on 22 May. This envisages a mix of funding from the German bank KfW, the European Investment Bank and the National Pensions Reserve Fund. The first phase is expected to make available €500 million, with work continuing to expand its scope and size. We will ensure strong political momentum behind these initiatives to support SME finance through ongoing development and implementation of work under the Action Plan for Jobs.

The sixth CSR is focused on non-performing loans in the banking sector. It addresses a very difficult set of issues arising from the complete collapse of our banking system. There is, therefore, a strong continuity with a challenging agenda already advanced up to December last. An integrated mortgage arrears strategy is now firmly in place. It includes personal insolvency, the mortgage advisory service and the mortgage to rent scheme. The most recent mortgage arrears resolution targets were produced by the Central Bank on 4 June, setting out expectations to the end of 2014 of sustainable solutions for 85% of customers more than 90 days in arrears and concluded solutions to reach 45%. For SMEs, the Central Bank has been setting quarterly institution-specific targets since June 2013.

This means moving distressed borrowers to longer term forbearance solutions. Progress by Irish banks in restructuring their small to medium-sized enterprise, SME, loan books are well advanced. In terms of distressed commercial real estate exposures, this is an ongoing process through the work of NAMA, including last year's wind-up of IBRC. Work on establishing a central credit register is being taken forward by the Central Bank.

The last recommendation focuses on legal services reform. This issue has been repeatedly highlighted by our National Competitiveness Council, NCC, for many years. Under the Action Plan for Jobs, we are committed to enacting the Legal Services Regulation Bill 2011 by the end of this year so that we might strike a better balance between the interests of consumers and legal professionals. The work on this is being led by the Minister for Justice and Equality.

We agree that we must improve data collection in respect of the efficiency of court caseload disposal, but this is another area in which we expect to secure agreement on a more suitable wording, including by removing the reference to the quality of judicial proceedings. Work in this regard is being taken forward by the Courts Service, with a particular focus on the upgrading of ICT systems.

The recommendations touch on a wide range of issues relevant to the preparation for the October budget and, more generally, ongoing public policy development. This point is worth emphasising. In my discussions with this and other committees on how we engage with the EU's processes, much of our debate has related to debt or deficit levels. As members can see from the overview I have supplied, there is a broader engagement on many aspects of Irish governance that subsequently impacts issues such as debt, growth and jobs. The breadth of this process is something that I have always emphasised when appearing before this committee to discuss the semester and it cuts across the responsibilities of a number of Ministers and Departments. The detailed timing and relative prioritisation of individual policy measures will remain firmly a matter for determination by their respective Ministers and the Government.

This meeting forms part of an important process of developing a more visible role for the Oireachtas in the European semester process. It builds from our previous meeting in April on finalising our national reform plans for submission to the European Commission later that month. I understand that the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, held a useful discussion with the jobs committee on Tuesday in advance of his Council meeting, which will settle the country-specific recommendations, CSRs, on employment and social policies. The Minister for Finance, Deputy Noonan, is due to have his pre-ECOFIN meeting with the finance committee on 18 June, where I expect the agenda will touch on the recommendations for budgetary and economic policy. There will be statements in the Dáil on 25 June in advance of the European Council. While my presentation has focused on the process and overall nature of the recommendations, there has been and will be an opportunity to touch on the CSR relevant to each committee. Endorsement of the final package by the June European Council will, in turn, provide and line up plenty of opportunities for further engagement on all policy areas across the relevant committees during the months beyond.

I thank the Chairman for the opportunity to make this presentation. I look forward to members' questions and comments.