Mary Coughlan (Donegal South West, Fianna Fail)

There is no doubting the seriousness of the current economic environment. Regrettably, significant unemployment is again an issue at the top of our national agenda. The numbers on the live register represent the human reality of these difficult economic times. Families who never contemplated having to base their weekly budgets around jobseekers' benefits and other social supports are now having to do so. It is a dramatic change for these families, and indeed for our wider expectations as a people, in a short period of time. It is a challenge this Government is working hard to overcome and we are conscious that people across the country want to know that we are taking the action necessary to ensure Ireland is best positioned when this period of economic turmoil comes to an end. I assure them that we are taking such action and that my priority as Tánaiste and Minister for Enterprise, Trade and Employment is simply jobs, jobs, jobs. My objectives are protecting those jobs currently in our economy, creating and attracting new jobs, putting in place a clear vision of where the jobs of the future are to come from and equipping people with the skills necessary for those jobs.

The current global economic storm has been exacerbated by credit constraints and prolonged by a decline in consumer and investor confidence. The Government is responding to these issues in a context of worsening public finances. The decline of confidence and credit has very significantly reduced property and construction activity. As a result, the jobs and incomes to individuals and the State associated with that activity have diminished. The downturn is now impacting on all sectors of the wider economy and presenting us with difficult decisions and consequences. It is unlikely that we will see a return to growth in the short term. This makes the series of measures we have introduced to increase training places, enhance job search services and speed up jobseeker payments all the more important. I will speak about each of these measures presently but it is important that the Opposition and everyone else is crystal clear as to the challenging environment in which all of this is being done.

Short-term action will help those losing their jobs but we must also stabilise the public finances. We must meet our commitment to a 9.5% GDP deficit limit. This will ensure the stabilisation and sustainability of the public finances, which is an essential prerequisite for economic renewal. We must protect our international reputation for borrowing and attracting foreign direct investment while continuing to support those hurt by the downturn and investing in the research, training and infrastructure that will drive economic and employment growth as Ireland recovers. The supplementary budget which we will present to this House in April will address these issues.

To respond to the present economic situation and in particular the increasing numbers of people on the live register, I am working closely with my colleagues, the Minister for Education and Science, Deputy Batt O'Keeffe, and the Minister for Social and Family Affairs, Deputy Hanafin, to ensure that appropriate responses are developed and put in place to meet the upskilling needs of those who are losing their jobs or facing uncertain employment prospects. In particular, we are identifying opportunities for increased collaboration between FÁS, the institutes of technology and the VECs with a view to ensuring that we secure the optimal return from the expenditure of scarce resources.

While my colleague, the Minister for Social and Family Affairs, will outline some of the measures she is taking to deal with the increasing numbers of unemployed, I wish to speak about the measures I am taking in my own Department to support those who find themselves without work. We are responding to the rising live register numbers through a variety of measures. FÁS's employment services, together with local employment services, have been working to provide greater job search assistance to the increasing numbers of unemployed. The implementation of these measures will nearly double the monthly capacity of job search services from 6,500 to 12,250 persons per month.

Furthermore, FÁS and the Department of Social and Family Affairs are currently operating a pilot initiative in two locations, Letterkenny and Clondalkin.

See this speech in context