Brian Lenihan Jnr (Dublin West, Fianna Fail)

The Taoiseach's statement regarding prospects for the live register and for living standards are consistent with the projections contained in the addendum to the stability programme update, published in early January.

In this document, projections for the public finances, and in particular for public expenditure, are based on the assumption that the numbers on the live register reach 400,000 by the end of this year. The January figures, which have become available since the addendum was published, show a seasonally-adjusted 326,000 persons on the live register. This figure points to a considerable worsening of labour market conditions and is of concern and my Department is monitoring the position closely.

In terms of the potential decline in economic activity, the addendum forecast that GNP would decline by a cumulative 8.5% over the period from 2008 to 2010. Taking into account likely population developments over this period, living standards — as measured by GNP per capita — could decline by between 10% and 12%. Ireland is clearly in a very difficult economic environment, but so is virtually every other country in the developed world. This is a global recession the like of which has not been seen for a very long time.

The Deputy will appreciate that the potential for substantial new fiscal incentives is severely limited by current budgetary circumstances and by the pressures on our existing delivery systems due to the surge in unemployment numbers. Notwithstanding these constraints, a range of measures have been taken to help the unemployed back to work. This is done through the expansion and re-orientation of training, education and employment programmes and by ensuring that the greatest possible number of the unemployed are facilitated and incentivised to engage in these programmes within existing resource constraints.

I understand that FÁS and the Department of Social and Family Affairs are working together so they can respond quickly to the rising live register numbers. In this context, I understand the following initiatives are being driven by FÁS: the establishment of a training fund to enable a speedy response to identified re-training needs for low skilled and redundant craft workers; gearing up its employment services further to provide increased capacity for expected increased referrals from the live register; providing a range of certified, short, flexible, modular programmes designed to upskill redundant workers so they can enhance their prospects of securing employment. A number of programmes are already in place and the frequency and range of these will be expanded in the coming months.

Additional information not given on the floor of the House.

Also, in response to the construction slowdown, I am informed that FÁS is focusing on providing retraining opportunities for redundant construction workers in emerging areas within the construction sector and that these include retraining in the following areas: the installation of sustainable technologies, environmental activity and compliance and regulatory work. I understand that FÁS will also assist individuals in seeking employment abroad in construction in other EU countries and that FÁS has held European construction jobs fairs for employers from other EU countries.

In addition, the Government is maintaining capital investment at very high levels, which in itself is a short-term stimulus to the economy and to employment. This investment will also help raise the future productive capacity of the economy. More generally, the priority being given by this Government to stabilising and bringing sustainability to the public finances is an essential part of its strategy to provide the basis for long-term investment and job creation in this country. The framework for sustainable economic renewal, which was published in December, also provides a context and strategy within which employment can be sustained in the medium term.

In light of what I have outlined, it is clear that despite severely constrained resources, the Government is giving the highest priority to ensuring that those losing their jobs are best placed to secure future employment as soon as possible, while supporting those in employment to the maximum extent possible.

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