Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

First, I must confirm to the Deputy that the lending institutions in Ireland, including those in which the State has a significant shareholding, are independent commercial entities. It is not appropriate for me, as Minister for Finance, to comment on or become involved in the detailed mortgage position of mortgage holders. In regard to the query posed by the Deputy, information is not readily available on the effect on the labour market and on the economy generally of allowing borrowers who are moving house to avail of job opportunities to retain the benefits of a tracker mortgage.

It is important to point out that addressing unemployment remains the main priority of the Government and budget 2013 contained several measures aimed at addressing this issue. In particular, the additional supports introduced for the SME sector are intended to complement the work undertaken by the Department of Jobs, Enterprise and Innovation in respect of the Action Plan for Jobs and to encourage job creation. The recently released Action Plan for Jobs 2013, building on the work of the 2012 plan, contains a number of measures aimed at supporting job creation and tackling the unacceptably high levels of unemployment. The JobsPlus initiative, for example, which targets long-term unemployment, will provide an incentive to businesses to hire those who have been on the live register for 12 months or more by providing a cash flow benefit to businesses based on the duration of unemployment.

As the Deputy may be aware, unemployment, while still at an elevated level, has shown some signs of stabilising in recent months, with the standardised unemployment rate static at 14.1% for the past three months, having fallen from 15% in February 2012. The number of individuals on the live register, seasonally adjusted, has been in decline since June of 2012.

The latest data from the Quarterly National Household Survey showed an annual increase in employment in the fourth quarter, the first such increase since the second quarter of 2008. Employment in the private sector seems to have stabilised, having increased by 0.6% in 2012. A modest increase in employment of 0.2% is forecast for this year, reflecting further employment growth in the exporting sectors, as well as the positive impact of various labour market initiatives. However, the unemployment rate is expected to remain elevated over the medium term, decreasing to 13.1% in 2015 as an increase in labour market supply mitigates the impact of a pick up in employment over the period.

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