Oireachtas Joint and Select Committees

Wednesday, 8 February 2017

Committee on Budgetary Oversight

Macroeconomic Outlook: IBEC

2:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour) | Oireachtas source

I thank Mr. O'Brien for the overview he provided at the beginning of the session. He referred to the fiscal rules and the fact that Ireland is locked out of them by the way that Mr. Juncker has chosen to put out potential investment packages, which are heavily dependent on large-scale private operators being able to take up those opportunities. Ireland does not have the scale that appears to be required. The Minister for Finance has referred to some changes that may be of benefit but through IBEC's international contacts, how would Mr. O'Brien see us changing the fiscal rules to our advantage? What would he prioritise? Does he have any example of other countries that have been capable of doing that while perhaps also having experienced difficulties during the economic crash?

I find the revised Estimate presented recently for the children's hospital really shocking. As a committee with responsibility for budgetary oversight, we have not yet received any detailed analysis and I do not think anybody has, apart from a reference to construction inflation. I think this is at the heart of some of the difficulties relating to construction in Ireland. I am very scared that we are again on the road down which we went in the 2000s, when the Celtic tiger period was at its height and when construction companies felt they could ask what they liked. As we are hostage to them, there is very little that can be done. We constantly hear stories of overpriced and poorly-built houses and apartments that people mortgage their lives for. These cases emerge regularly. I am concerned that the old practice of having a contract figure but then using the courts on every occasion, or some other form of arbitration, to up the subsequent price is now returning to our construction system. It makes public financing extremely difficult because while there may be sub-contractors possibly sharpening their price offers, they will then to through the back door going to arbitration or the courts for anything and everything. There was a long delay regarding the Dublin Institute of Technology as a result of contract issues. That was a very large contract for a very large company that resulted in a long delay. I am really concerned that the children's hospital will face into the same process. Does Mr. O'Brien have any insight to offer on that matter?

Mr. O'Brien dealt extensively with skills training in his presentation, upgrading for people in the workforce. I say this on the day when we have heard very sad news about Hewlett Packard, with 500 jobs lost. Do the witnesses have a view? Some of those people are very highly trained. I assume they may get other job offers elsewhere but the people in Leixlip are in a deep shock about what has happened.

In Germany and Austria, employers buy into the concept of apprenticeship. What would it take to get similar buy-in from Irish employers to go after apprenticeships for the 30% or 40% of secondary school students who may not initially want to, or be interested in, going to college but who would love an apprenticeship?

Why are there almost no girls taking up apprenticeships? Does IBEC have any proposals on that? Is Mr. O'Brien aware of employers that would be willing to give more women an opportunity? Does he have a view of what role is available or possible for the public service, which is a major employer, to offer work experience and apprenticeship and traineeship-type programmes in conjunction with the various structures we have developed to ensure that as far as possible everybody gets a chance to gain work experience and qualifications? Maybe they can do a traineeship followed by an apprenticeship and, as happens in Germany and Austria, if the person wants to go further academically he or she can do that. Employers are key to this. Does IBEC have any proposals on that?

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