Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I am happy to have this opportunity to inform the House of the Government's priorities for the year ahead. This comes on the same day as the Government has published its third annual report, After the Bailout, which catalogues the substantial progress it has made since 2011. When this Government of Fine Gael and the Labour Party entered office, we faced the toxic legacy of years of economic mismanagement. Ireland faced an enormous economic, financial and social crisis. Unemployment was reaching record highs; the public finances were out of control and our international reputation was in tatters. The nation had to endure the ignominy of a bailout from the European Union and the IMF to keep the economy and the country afloat.

The first task facing the Government was to restore financial stability and return the economy to growth in order for Ireland to successfully exit the EU-IMF bailout. Thanks to the hard work and sacrifice of the people, that central national objective has been achieved. On 15 December 2013 Ireland left the bailout programme.

Last year saw the Government achieve several key objectives that helped us to this point. The past year has been a good year for jobs, with 61,000 new jobs created, more than 1,000 a week, representing the fastest employment growth rate in Europe. The live register has dropped for 20 months in a row while the unemployment rate has dropped from a high of 15.1% to the current 12%. Our Pathways to Work strategy has helped 27,000 long-term unemployed people move back into work. While we have the country moving in the right direction, far too many people are still unemployed or are forced to work abroad, however.

Underpinning recent progress has been our continued responsible management of the public finances throughout 2013, which has seen our deficit continue to fall. The Haddington Road agreement was a key success in this regard and, once again, we sound our appreciation to all public servants for their contribution to Ireland's recovery. Last year also saw Anglo Irish Bank and Irish Nationwide formally closed and the successful replacement of the onerous annual promissory note payment, which has reduced the burden on the taxpayer further.

However, exiting the bailout was not an end in itself. Too many people do not feel any improvement in their daily lives. We must use this opportunity to create more jobs and a strong economic recovery. Looking ahead, in the same manner that we had a plan to exit the bailout, we also have a plan to grow the economy and get Ireland working. It has two top targets. First, we aim to create more jobs. We plan to reduce unemployment to below the eurozone average this year and below 10% by 2016, and to return to full employment by 2020. Second, we aim to expand the economy to support new jobs. We are targeting growth of at least 2% in 2014, 2.5% next year and 3% in 2016.

There are three pillars with which we are focusing on these targets in the year ahead. The first pillar is helping the domestic economy. Rapid job growth on the scale needed to return Ireland to full employment will mean a more intensive focus on the domestic economy. Our new Action Plan for Jobs for 2014, co-ordinated by the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, and published last week, creates that focus. Since we began this process in 2012 we have implemented more than 1,100 job-supporting measures. This represents an implementation rate of 95% and the brick-by-brick rebuilding of a competitive, successful and sustainable economy to replace the ruins we inherited three years ago. This is the first action plan since we exited the bailout, and it contains 385 actions involving the entire public service. The 2014 action plan has a strong focus on the domestic economy and on improving competitiveness as well as supporting our entrepreneurs and smaller firms. By focusing on the domestic economy, we must ensure that job creation reaches every part of the country.

The agrifood sector is one area where we can create 25,000 extra new jobs in the next seven years with the proper supports. This year we are working towards gaining access to the US, Canadian and Chinese markets for our beef. Changes in EU policy will see the abolition of milk quotas next year, which will also present new opportunities for Irish businesses to significantly increase output. We have already seen new investment decisions in the run-up to 2015. To help improve agrifood exports, several major agrifood trade and investment missions are in preparation for China, Africa and the United States. This year the Minister for Agriculture, Food and the Marine, Deputy Coveney, will also target new rural jobs through further development of the aquaculture sector. In January, the Government welcomed the agreement of a new draft rural development programme for Ireland as a part of the wider Common Agricultural Policy, CAP. It is a €12.5 billion injection into the agriculture sector, including nearly €4 billion for the rural development programme in the years to 2020, which will be important to the Leader programme and to many communities. At a time of scarce resources, this represents the Government's strong commitment to job creation and investment in our rural communities.

The construction sector is another part of the domestic economy that has a key role to play in our recovery and in creating new jobs. This sector is too small for the needs of a growing economy. This year will see many individual initiatives helping the sector. The Minister for Education and Skills, Deputy Quinn, is progressing 70 major school projects in 2014. The Minister for the Environment, Community and Local Government, Deputy Hogan, and the Minister of State at the Department for the Environment, Community and Local Government, Deputy Jan O'Sullivan, are expanding the energy efficiency retrofit programme for social housing to 12,500 homes, involving around 1,000 construction jobs. Part of this is also the responsibility of the Minister for Communications, Energy and Natural Resources, Deputy Rabbitte. The Minister for the Environment, Community and Local Government will also be publishing the maritime and foreshore Bill this year, which will help develop our maritime resources. There is more we plan to do in 2014: the Government is finalising a new strategy for the construction sector, which will be published shortly.

One sector that has shown encouraging signs of growth since the Government introduced new measures within 100 days of entering office has been tourism. The measures we have taken, such as cutting the VAT rate on tourism services, have already helped to create more than 22,000 new jobs.

Last year, The Gathering was a huge success. The Minister for Transport, Tourism and Sport will publish a new tourism strategy shortly, which will build on this over the next decade.

This year will also see a shake up in how government, especially local government, will support local businesses. Under our plan, local authorities have a critical role to play in supporting job creation at local level, particularly in areas such as the retail sector where commercial rates can be a huge burden. In May, the people will elect new members to the local government system. Whoever the people elect to local councils will have new and real power to determine local charges. They will deal with property taxes, commercial rates and parking charges. Over the coming months, the Ministers for the Environment, Community and Local Government and Jobs, Enterprise and Innovation will oversee 31 new local enterprise office, LEOs, with 170 dedicated staff for the purposes of giving advice and information to new and existing small businesses. They will be established throughout the country to provide that advice and support at local level. The LEO roll-out will result in additional funding of €3.5 million provided in 2014, including a new entrepreneurship fund, which is aimed at business start-ups by people aged under 25.

In combining expertise in local government and enterprise support, from waste management and rates to training and business planning, the LEOs will enable an integrated approach to the delivery of services for small and new companies. In addition to providing supports and information directly, the LEOs will also work with Enterprise Ireland and other State organisations to ensure the right supports are available to each company. In a new departure for local government, each LEO will also develop a plan to boost local enterprise and job creation. In short, each LEO will be the local hub for enterprise support, delivering a comprehensive "first-stop-shop" service to local entrepreneurs and businesses.

To further help Irish retailers win new business in the 21st century, the Minister for Communications, Energy and Natural Resources will deliver a new trading online voucher scheme to more than 1,000 businesses this year. By helping small business trade online, we expect 3,200 new jobs to be created in this area over the next two years. It is interesting that of the €4 billion traded online, approximately three quarters of that comes into the country. There is enormous potential for people to be more ambitious in what they do.

In supporting the domestic economy in 2014 we must also maintain and improve on our recent competitiveness gains. We must be careful about doing anything that would add to the cost of employing people and make it more difficult to create the jobs that are so badly needed. Creating a competitive business environment that supports an increase in exports is essential in ensuring Ireland achieves growth and, crucially, gets more people back to work.

The second pillar is the public finances and the need to continue to manage our public spending prudently. The effort of all Ministers, especially by the Ministers for Finance and Public Expenditure and Reform, to tackle the huge gap between government spend and income has been crucial in exiting the bailout. It is essential for continued investment. We will complete this job by cutting the budget deficit to 3% by 2015 and eliminating it entirely by 2018. We recognise high taxes on jobs and employment dampen job creation. That is why we will continue to deliver on our promise not to increase income tax and, when the public finances allow, introduce

new measures to encourage more job creation.

The third part of the Government's plan for jobs and growth is the need for new credit and the development of a sustainable banking sector. Irish banks have been stabilised but, clearly, much more needs to be done. The Minister for Finance will continue to repair and restore trust in the banking system, which is vital to ensuring businesses are confident to seek out credit to fund expansion opportunities. This means banks provide credit at competitive interest rates and is being achieved through the Government's ongoing SME credit policy. We are also making new sources of funding available to support the creation of jobs. In the coming weeks, legislation will be published to establish NewERA and the €6 billion strategic investment fund. We are also concluding an agreement with Germany to secure significant new funding for Irish businesses from the German state bank, KfW. The Department of Finance is also focused on the partnership we have with the Silicon Valley Bank and the Chinese Investment Corporation, which came here last year.

The banks must also do more to help people who are in mortgage arrears. That is why we will require them to make sustainable offers to every family in mortgage distress by the end of this year. Engagement between consumers and lenders has led to more than 51,000 permanent mortgage restructures, an increase of in excess of 6,000 accounts in the last quarter of 2013. The number of mortgage accounts in arrears of greater than 90 days has started to fall.

This year, 2014, will also see important progress on a number of other fronts crucial for the development of the country. The Government will continue to prioritise its welfare reform and work activation agenda. As new jobs are created in the economy we have to ensure that those who lost their jobs and suffered most are not left behind in the recovery. That is why our Pathways to Work strategy, led by the Minister for Social Protection, Deputy Burton, aims to move 75,000 long-term unemployed people into employment by the end of 2015. With 22,500 long-term unemployed already moved back into work we will update the strategy by mid-year and put a stronger emphasis on removing the disincentives to returning to work facing some long-term job seekers.

By replacing rent supplement with a new housing assistance payment that will continue to be available to unemployed people returning to work, we will ensure an additional 34,000 families are better off in work than not. We will also complete the first phase of welfare and work activation reforms with the roll-out of all Intreo offices nationwide. To increase the number of case workers available to those on the live register the Government will be contracting in additional capacity from the private and voluntary sector in 2014. To help rebuild trust and confidence in the State's employment services with businesses, the Minister for Social Protection, Deputy Burton will be producing a new employer engagement strategy. It will represent a new beginning for Intreo services and local employers that will ultimately help jobseekers.

In addition, the Minister for Education and Skills, Deputy Quinn will publish the first ever five-year strategy for the further education and training system which will prioritise re-training the unemployed to take up the opportunities arising in the economic recovery. This matter will be aided by the Minister of State, Deputy Cannon. The Minister for the Environment, Community and Local Government, Deputy Hogan and the Minister for Social Protection, Deputy Burton will also roll out the gateway work activation scheme during 2014 that will see 3,000 long-term jobseekers working in local authorities on local projects.

As Ireland is a small, open economy, the Government will continue to positively and proactively engage with the EU and its member states to enhance the Single Market, reduce administrative burdens on business and facilitate new trade, including through EU external trade agreements. Progressing the EU-US trade agreement, started under the successful Irish EU Presidency, will open up new opportunities for Irish business and jobs. An estimated 2 million jobs can be created from a European perspective on conclusion of this agreement. The Government will continue to open doors for Irish entrepreneurs and businesses. The Tánaiste and his embassy network will be supporting 18 ministerial trade missions this year in close co-operation with Enterprise Ireland. The Government is focusing on new opportunities in the United States, China, India, Australia, Indonesia, Turkey and West Africa to name a few. Preparations are also under way for the first ever State visit to Britain this year following on from the visit of Queen Elizabeth to the Republic of Ireland in 2011.

Finally, we will continue the political and public service reforms needed to ensure that the recovery is fair, inclusive and sustainable, and in doing so to continue to rebuild trust in our institutions. We will expand the powers of the Ombudsman to enhance scrutiny of public services. The Minister for Justice, Equality and Defence, Deputy Shatter will take action to ensure the Garda Ombudsman Commission will have the right structures to provide effective and independent oversight. We are legislating to increase the scope and reach of freedom of information, to afford protections and clarity to whistleblowers and to consolidate the ethics Acts following the publication of the Mahon and Moriarty tribunals.

We have established Irish Water as a means of financing and providing for investment in clean, safe water. To end the current inefficient two-tier health system the Minister for Health, Deputy Reilly and the Minister of State at the Department of Health, Deputy White will take further steps towards the introduction of universal health insurance. We will prioritise the full establishment of hospital groups funded on a "money follows the patient" basis, the roll-out of free GP care to all children aged under six in the first half of this year and the publication of a White Paper on universal health insurance.

The Minister for Arts, Heritage and Gaeltacht Affairs, Deputy Deenihan, following on from his successful agreement with Bank of Ireland to turn part of the former Irish Houses of Parliament on College Green into a cultural space, will lead on the commemorations programme. This includes major works on the General Post Office, GPO, so that an interpretative centre can be in place for 2016. It also means improvements to Cathal Brugha Barracks and the Kilmainham Courthouse.

The continued improvement of our education system is key to our long-term prosperity. The Minister for Education and Skills, Deputy Quinn will publish by June of this year, for the information of parents, a summary of the performance of all schools. We will pass legislation to reform school admissions to make them fairer, more transparent and more inclusive. We will continue to roll out the area-based programme to tackle the root causes of child poverty and exclusion. The Minister for Communications, Energy and Natural Resource, Deputy Rabbitte will also complete the roll-out of next-generation broadband to all secondary schools in the State by the end of the year. An education system built on excellence is essential for the future of our children. To further their interests the Minister for Children and Youth Affairs, Deputy Fitzgerald will shortly launch the national children and young peoples' policy framework which will set out the key Government commitments to promote better outcomes for children and young people over the next seven years.

The Government has an ambitious plan of action for Ireland. Exiting the bailout was only the first step in Ireland's recovery. There is no complacency in Government about the scale of the challenges we must rise to meet. There is still an unacceptable number of people unemployed. There are still far too many working families struggling to make ends meet. We are moving in the right direction, and we have a distance to go, but at least we have a clear plan on how to get there and that plan is working. We exited the bailout, jobs are being created and the public finances are under control. Working with the Tánaiste and the Labour Party we are wholly united in the crucial task of getting our country working again. There will be no let up in our efforts until we return the country to full employment and everyone has the opportunity to achieve their full potential for themselves and their families at home in Ireland.

See this speech in context