Billy Kelleher (Cork North Central, Fianna Fail)

I welcome the opportunity to speak on this issue. As outlined, it has been raised on a number of occasions, which shows the strong views of Members on all sides of the House on this issue and the level of concern in terms of the challenges we face.

It is appropriate that we take account of the backdrop to our economic position and recognise from the outset that these challenges are faced by virtually every other modern economy in the world today. We have all been affected by the major downturn currently gripping the world's economy. How we respond to this downturn will determine our future and the Government is determined to continue to take the necessary steps to ensure that Ireland will overcome these difficult circumstances.

However, we must acknowledge that, as a small open economy, Ireland is particularly prone to the effects of the economic challenges unfolding across the world's financial markets. The worldwide economic difficulties are producing effects of a range and severity that are unprecedented in modern history. The world financial system is currently experiencing an ongoing period of rapid transformation and the fluctuations taking place are impacting on industry, enterprises and individuals not only in Ireland but throughout the world.

Difficult and decisive action needs to be taken to ensure economic stability in these tumultuous times. The Government recognised this fact and brought forward its budget by six weeks in recognition of the extraordinary circumstances facing us — the challenges we face require an agile response and a willingness to be flexible in the face of ever-shifting circumstances.

The Government has a proven track record and the experience necessary to manage the economy during this challenging period. We have proven ourselves by managing the economy to record levels of growth and expansion during the past decade. We have been at the helm of the economy during a period that witnessed a remarkable leap in living standards for most citizens, which now exceed the EU average at a time when we have record levels of people in employment. The Government has managed the economy in a way that has built on our inherent strengths, namely our highly skilled and flexible workforce, our work ethic and our benign business environment.

We will continue to manage the economy in a manner that ensures we protect and sustain the success and prosperity we have created during the past ten years. The Government has displayed the courage and conviction to make difficult decisions in the interests of the State. We will continue to take decisive action that will safeguard our competitiveness and that are in the interests of citizens. That is why the Government is determined to do all in its power to tackle rising unemployment, which is of great concern. As politicians, we all recognise the impact unemployment can have on an individual, a family and a community. New live register figures will be published tomorrow and they will almost certainly show a further deterioration in numbers in employment.

The unwelcome conditions in the labour market here reflect the current international economic downturn and Ireland's openness to events affecting the global economy. We have been adversely affected by the lack of confidence in the world economy, which is manifested in the dramatic fluctuations in stock markets across the globe and the severe reduction in credit, which is the lifeblood of businesses.

I take the points raised by some Deputies opposite in the context of credit being made available to small businesses. As I said during a debate in the Seanad, there is a new arrangement in place between the Government, the Oireachtas and the people of Ireland in the context of the banks because of the bank guarantee scheme. Banks are strategic in ensuring that credit, primarily short-term credit such as overdraft and current account facilities, is made available to small and medium-sized businesses. It is important that such access to credit is maintained, particularly for the productive areas of the economy. I would be concerned that banks in trying to balance the figures on their balance sheets and ensure they appear correct might target the productive element of the economy, primarily the small and medium-sized businesses. I acknowledge the support from some sides of the House in ensuring the bolstering of our financial credit system to maintain the economy. The other options available would have been catastrophic. We must acknowledge that measure introduced by the Government, with the support of some Opposition Members.

I acknowledge that the number on the live register increased significantly over the summer, with the unemployment rate on this basis reaching 6.3% in September. This represents an increase of almost 50% in a 12-month period. However, it should be noted that the live register is not designed to measure the rate of unemployment because it includes part-time, seasonal and casual workers who are entitled to unemployment benefit.

Employment and unemployment figures are best measured by the Quarterly National Household Survey, the QNHS, published by the Central Statistics Office. In the second quarter of 2008, the most recent quarter for which data are available, the QNHS measured unemployment at 5.2%, which compared favourably with the EU27 average unemployment rate of 6.8%. The employment growth for the year was 0.3% above the EU27 average and we were in line with the EU employment targets set for 2010. However, the Government recognises that the increasing number of people who have been made unemployed represents a major challenge that we must address. Certain sectors of the economy, in particular the construction and manufacturing sectors, have seen a downturn in activity, with consequent increases in unemployment on a significant scale. For the first time in a decade many Irish people are facing a very difficult and uncertain period. The Government has attached the highest priority to assisting these people. We will continue to direct the necessary resources to the employment and training support services, which will provide a helping hand and assist these people in securing other employment as soon as possible.

I realise that rising unemployment levels coupled with the downturn in the economy represent the most demanding challenge which Ireland has faced in almost 20 years. However, the Government has already taken decisive action to respond to the challenges we are now facing. We have shown leadership and sent out a strong message that Ireland is responding to the global economic crisis in a proactive and prudent manner.

We took early action to address the deterioration in economic and fiscal prospects by introducing the budget 2009 budget earlier than anticipated. We have secured substantial savings across virtually all areas of public expenditure and we will continue to seek additional savings were possible. The Government has made many necessary tough decisions in recent weeks in order that Ireland is placed in a position to reap the benefits that will arise once our economic situation and that of the wider world improves.

We should acknowledge that total investment for labour market programmes in my Department's Estimate for 2009 will amount to more than €1billion, or 56% of the total budget. Of this, €1.05 billion will be delivered through FÁS. Within the FÁS budget funding for community employment and job initiative schemes will be increased by 2% to €450 million. This will enable FÁS to continue to support a minimum of 22,500 participants on these programmes next year. Funding for FÁS services to people with disabilities is also being increased by 2%. A total of €77.7 million in 2009 budget for FÁS is ring-fenced for specific employment and training programmes for people with disabilities. The allocation from the national training fund for training the unemployed has been increased by €9.5 million this year to more than €208 million. This allocation will help workers who have recently lost their jobs, including redundant apprentices, through training and re-skilling. While labour market programmes have been refocused to assist the unemployed, funding for upskilling those in employment in 2009 will still amount to €168.5 million and will be delivered primarily by FÁS and Skillnets.

The additional allocation in budget 2009 will enable FÁS to develop new initiatives in addition to the normal delivery of its employment services and training supports to the unemployed. The purpose of these supports is to assist individuals in securing alternative employment either through sourcing possible employment opportunities or by providing them with upskilling opportunities that will increase their potential employability. In addition the Department of Social and Family Affairs and FÁS are working closely together to respond quickly to the rising live register numbers. In particular FÁS's employment services and the local employment services are gearing up to provide increased capacity for an expected increase in referrals from the live register. FÁS is also providing a range of certified and flexible programmes designed to upskill redundant workers so that they can enhance their prospect of securing employment. A number of programmes are already in place and the frequency and range of these will be expanded over the coming months.

I have already mentioned the significant downturn in construction-related activity since the start of this year. The construction sector is undergoing a major structural change at present and as a result there has been a major increase in the numbers of people within the construction sector who have been made redundant. There has also been an increase in the number of apprentices being made redundant. FÁS, in addition to the usual supports it provides to redundant workers, has established a training fund to enable it to provide a timely response to identified training and retraining needs for low-skilled and redundant craft workers from the construction sector. It is intended that this will enable individuals to secure a speedy return to work, or where this cannot be secured to provide relevant upskilling opportunities in order that the jobseekers can secure employment in alternative sectors.

It is also focusing on providing retraining opportunities for redundant construction workers in emerging areas such as the installation of energy efficient and renewable technologies, environmental activity, and compliance and regulatory work as was mentioned by the Deputies opposite. In addition FÁS is assisting individuals in any way it can in securing employment abroad in construction in other EU countries. In that regard FÁS has held job fairs in Dublin and Cork, which brought many employers from other EU member states offering employment in their construction sectors.

My Department and FÁS have been actively examining the issue of redundant apprentices and have put in place a series of actions to facilitate redundant apprentices in completing their studies. These include allowing redundant apprentices to progress to their next off-the-job phase of training without having to do the next on-the-job phase. A register of redundant apprentices has been established in order to identify these people at the earliest possible time and FÁS has prioritised the need to locate an employer to sponsor the completion of the apprentices' off-the-job training. A proportion of the additional €9 million assigned to FÁS to provide supports for people seeking employment has been provided to enable FÁS to develop a specific programme aimed at assisting redundant apprentices. It is intended that this programme will facilitate redundant apprentices in securing the much needed on the job experience they require in order to continue their apprenticeship.

Further help for those who have become distanced from the labour market for some time and who are seeking to re-enter is provided by the community employment scheme. Community employment is an active labour market programme designed to provide eligible long-term unemployed people and other disadvantaged persons with an opportunity to engage in useful work within their communities on a fixed-term basis. The programme helps unemployed people to progress to the open labour market by breaking their experience of unemployment through a return to work routine and assists them in developing both their technical and personal skills. The Government is investing €377 million this year in community employment with a view to maintaining overall numbers on FÁS schemes at 2007 levels. At present more than 22,400 people are employed on community employment schemes nationally. In delivering these places, FÁS operates flexibly in the management of this allocation in order to maximise progression to the labour market while at the same time facilitating the support of community services.

While we must continue to provide the necessary supports and services to the people within our workforce who most require our assistance, we must not forget that the continuing development of Ireland's education and training systems will be pivotal in helping Ireland overcome the challenges we are facing and in sustaining our economic success in the future. We must ensure that our education and training systems continue to harness the collective skills and talents of our workforce. We must ensure that our systems are meeting the changing needs of society from both an economic and social perspective. It is of paramount importance to continue to focus attention on developing the skills of our population, so that the Irish labour force can continually adapt and upgrade its skills to meet emerging opportunities and challenges. The flexibility of our workforce must remain a key strength in these difficult times.

This evening's motion calls for a comprehensive audit of FÁS to ensure that the taxpayer is getting value for money from the agency. There are two points I would like to make in response. A review, funded by my Department, is investigating how to ensure value for money and obtain the maximum benefit from the operation of labour market programmes provided by both FÁS and Skillnets. As well as analysing the FÁS and Skillnets-run labour market programmes, the review will also draw conclusions about the adequacy and balance of resources in the context of current and future labour market policy challenges, including the national skills strategy. The steering group conducting the review is chaired by a senior official from my Department and includes members from the Departments of Finance, Social and Family Affairs, and Education and Science. FÁS and Skillnets are also represented on the group which is supported by Forfás.

Set against what is an undoubtedly tough global economic background, a number of key labour market challenges face the country. The implementation of the national skills strategy, which sets out clear long-term objectives for the lifelong learning of those in employment and for developing Ireland's human capital through upskilling, training and education for the period to 2020, is intrinsically linked to the future economic prosperity of the country. Over the two days of the debate Deputies will refer to other issues mentioned in the motion. I commend the amendment to the House.

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