Enda Kenny (Mayo, Fine Gael) | Oireachtas source

We have no problem on that.

The question of youth employment was discussed at the meeting with OECD personnel. The details of this have been considered at length by the Minister for Education and Skills and the Minister for Social Protection. The OECD was critical of the Government regarding the lack of action concerning labour activation measures, as they call them. The EU and the IMF criticised us to some extent in this regard also. By and large, however, international organisations have been supportive of the approach taken by the Government to reduce unemployment and boost job creation. We always welcome advice, ideas and recommendations on how we might improve our performance in that context.

The Pathways to Work programme will remain a central feature of the Government's jobs plan in 2014. The OECD's input will have an important role as we refine that and examine it for the future. In late 2013, the OECD was commissioned to provide a commentary on Irish youth employment policies and to advise on the implementation of the EU recommendation about a youth guarantee for employment. That work was completed at the end of 2013 and was a helpful input into drawing up the youth guarantee implementation plan, which was approved by Government and published in January this year.

The OECD also regularly advised on aspects of Irish labour market policy, as was the case in its economic survey of Ireland published last year, and most recently in its review of the action plan for jobs. In that review, the OECD was positive in its assessment of labour market reforms but concluded that more needed to be done. There is nothing new about that. This view is shared by the Government, as evidenced by the additional measures being taken under the Pathways to Work 2013 programme. These include the extension of activation to those who are long-term unemployed and the continuing reallocation of staff to frontline activation work. Some 300 additional case officers were put in place in late 2013. All elements of the Pathways to Work programme will be reviewed and, if necessary, augmented and refined in Pathways to Work 2014 which is due around the middle of the year.

I have dealt before in detail with the question of the effective rate of corporation tax here coming down to 11.9%. The Deputy has estimated evidence to the contrary and we have discussed that before. The ones that really count, however, put Ireland's effective rate at approximately 11.9%, which is very close to 12.5%. It obviously depends on the statistics used. We are a small but important entity in a very big world where different jurisdictions, regimes and tax rates apply. Many companies are involved in multi-country situations, which is why Ireland has been up front in recognising that we need to deal with this in a fair and equitable fashion. That is why we contribute to the 15 sectoral committees the OECD is working on.

I am very happy to defend the Commission investigation into a specific technical issue relating to a specific company. It is fair to say that a great deal of international finance is sloshing around the system, much of which is available for investment. One of the problems about Ireland is that it has never produced the range of projects that would draw sufficient funds for investment in infrastructure. That is why I was glad to see that the Minister for Public Expenditure and Reform and the Minister for Jobs, Enterprise and Innovation were in a position to put together significant packages for investment through stimulus, whether for road developments, bundles of schools or the Grangegorman development in Dublin city centre. These major investment requirements will draw on elements of the finance that is out there.

Our position is that we are continuing to maintain our corporate tax rate and are dealing robustly with the Commission investigation. We will work upfront and comprehensively with the OECD and other countries. At the European Council meeting at which this was agreed last year, there was agreement from everybody, including countries that were silent on the matter in the past, that an international response is needed on the issue of tax regimes in different countries and the different rates that apply.

The projections for Ireland in the coming period are interesting. The unemployment rate is projected to decrease to 11.5% in 2014, 10.5% in 2015, 9.7% in 2016 and 8% by 2018. That is in keeping with the medium-term economic strategy that the Government published when we exited the programme of assistance at the end of last year. Our projections for growth and GDP and GNP are set out in the economic programme up to 2018. The emphasis this year is on construction, services and retail, as well as the efforts now being made by the Government to put together an exciting programme in respect of the construction to deal with housing, social housing and other infrastructures. I hope this will bring about significant job creation for people who are on the unemployment register and were previously involved in various aspects of the construction sector, and for those who come with new skills and new ways of dealing with this. That is all part of the fabric of the Government's work to create more jobs, increase income and continue to grow and strengthen our economy to make it easier for the Minister for Finance to meet the targets we have set ourselves of reducing the deficit to below 3% by 2015 and eliminating it by 2018. I do not accept the assertion of the independent Fiscal Advisory Council that the rate of projection we have is faster than the EU's. We set out our targets in the medium-term economic plan and we expect to be able to adhere to them.

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