Arthur Morgan (Louth, Sinn Fein)

We must act to address the unacceptable flow of young people into long-term unemployment. The Government does not seem to appreciate not merely the economic but also the social consequences of a situation where 20% of under 25s are unemployed. If this economic downturn persists and there are no jobs for those people for the next two, three or four years, they will fall into the rut of long-term unemployment. Many of these young people are highly educated, competent and able. All they need is an opportunity to prove their capabilities. The negligence the Government has shown in dealing with them is utterly unacceptable.

There is no sign of a Government policy to stem the flow of youth unemployment. The only solution offered to date has been to reduce welfare payments to young people. I oppose that policy steadfastly because nobody should be punished for what is not his or her fault. The budget in April last year reduced the jobseeker's allowance for under 20s to €100 per week, while the December budget extended reductions to those under 25. The overwhelming majority of these young people would be happy to work if any were available. To punish them in this manner is grossly unacceptable. All young people in receipt of a welfare payment would have been subjected to a means test, and their approval for payments indicates that they have no or inadequate income to sustain their needs. This is proof positive that these young people do not have the means to survive in any meaningful way. The treatment they have met with from the Government is degrading. The majority want to contribute to society both economically and socially but they are not being given the opportunity to do so. Moreover, their lack of employment is inhibiting their future development.

The Minister of State must have some understanding of how frustrating it is to feel completely isolated and out of work for long periods with no prospect of a change in circumstances. That lack of prospects is a reality for many and there is little Government action in that regard. If young people had the opportunity to secure work placements, for example, they could undoubtedly bring a substantial amount of innovation and creativity to the table. The reduction in welfare rates will not create jobs. I agree entirely with Deputy Penrose that this is the missing element. I apologise that I missed the other contributions but I was taking part in the debate on the Finance Bill in committee. I would have preferred to be here because this is the cutting edge of the debate. We must all knock our heads together to ensure jobs and opportunities are available for young people.

In regard to education and training, it is important that whatever schemes the Government eventually proposes are meaningful and appropriate. Much of the activity in FÁS is significantly obsolete and irrelevant to the modern world, particularly as we move towards the knowledge economy. That is not to knock everything FÁS is doing. It is important in light of the poor reputation of some of the senior management that we do not tarnish the entire organisation. It is important to recognise that there are many solid and sound workers within the organisation. However, we must go beyond FÁS training. In France and Belgium, for instance, any person who is unemployed for more than three months is given a job placement. A significant majority of youngsters in this State would relish the opportunity to partake in the enterprise culture and learn about business. Such a scheme would afford them an outlet for their innovation and creativity. However, the Government is doing nothing like that. The only support available of this type is for those who have done extremely well in education, which is far too limited in scope.

There is poor training provision across the board, and not just for people who are unemployed. I spoke yesterday to a young man who is in the middle of an apprenticeship and is looking for his third assessment. He is 159th on the list. He was due to be placed in April but I am told there is not the remotest chance of that. He will be lucky to be assessed in September. What hope has this young man of developing his skills to the maximum of his potential when that is the level of provision being offered by the State? It is entirely unacceptable.

I disagree with the substantial traits of Fine Gael policy in this area. The withholding of welfare payments in certain circumstances amounts to holding young people to ransom. This is not a black and white issue. We must recognise the need to offer training that is modern and appropriate to the ambitions of young people. To come at it in a punitive way is not the right approach. As I said, there are shortcomings in FÁS but Fine Gael policy in that area is quite harsh. The Government should conduct a skills audit of young people who are unemployed. There is no one size fits all solution given their various abilities and ambitions. For example, their business skills, research and innovation capabilities must be examined and allowed to develop. There are 434,700 good reasons that we should look after these youngsters.

In regard to job creation, I tabled a parliamentary question today inquiring about the jobs created and lost in IDA-supported companies in Cork, Dublin and Limerick, respectively. I am informed that 1,082 jobs were created and 2,422 lost in Cork; 1,786 created and 6,805 lost in Dublin; and 169 created and 2,519 lost in Limerick. These numbers refer only to IDA-supported enterprises. Those are scary figures. We need Government action, we need innovation and creativity and we need to think outside the box. As Deputy Penrose said, we need to consider the example of what is happening in other countries and how they are dealing with this crisis.

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