Joe O'Reilly (Cavan-Monaghan, Fine Gael) | Oireachtas source

Every aspect of the economic strategy of this Government during the past two years has been predicated on the ambition to put our people back to work. That is the end objective of every action. However, before that could be achieved and before the private sector could begin to create jobs certain transformations had to be realised at a macro level. It was necessary for the Government to get the public finances in order. That process is well in play and we are on target. It was necessary to tackle the promissory note question which had the potential to cripple totally and stagnate the economy in the coming years. That has been dealt with. It was necessary to re-establish our international reputation by the foregoing two actions and more generally to ensure inward investment to the country. That has been done. It was necessary to deal with the interest rate question and the cost of borrowing and that has been achieved.

The proof that these background things are working is the fact that during the past year some 12,500 new jobs have been created by the private sector. It is a small number but it is a real start and an indication that the macroeconomic policies are working and that they are beginning to be translated into real-life situations. That is real progress.

I wish to focus on some of the particular responses to unemployment that have begun and which will be crucial in the coming years. The youth guarantee scheme sponsored by this Government and agreed at European level has remarkable potential. I wish the Minister for Social Protection, Deputy Joan Burton, and the rest of the Cabinet well in its implementation in this country. A €6 billion fund has been created at European level. This represents a real stimulus and I hope we will achieve matching funding here. Tragically, there is 30% unemployment among young people in the 18 to 25 age bracket. The scheme means that any young person who is unemployed for four months will be guaranteed a job or training course. All empirical evidence suggests that young people who are unemployed for a long period are likely to remain in that predicament into adult life and beyond. Early intervention is critical to deal with the unemployment question.

Another remarkably important issue for this country is the need to develop an information and communications technology strategy and that is already in play. The Joint Committee on Jobs, Enterprise and Innovation discovered that there are 4,500 information and communications technology jobs available in the country, while in Germany there are 400,000. A strategy has been put in place. A total of 900 places were created last year and 760 new places will be created in 2013 for information and communications technology honours degree courses. That is an important strategy.

The tourism initiative involving a 9% VAT rate has worked and, as Deputy Mulherin noted earlier, the potential for Irish tourism is considerable and not yet properly tapped.

The credit guarantee and microfinance schemes are important in this regard.  The IDA will have to regionalise its inward investment efforts to the greatest extent possible.  Investors are free to go where they want but inland areas do not have the same pull for job creation.  Investments tend to go to the big population centres on the east coast.  I appeal to the Government to be proactive in that regard.  I would also like to see a variety of initiatives being taken at departmental level in the energy area.

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