Dáil debates

Thursday, 13 May 2004

Priority Questions.

Employment Support Services.

3:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 3: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of employment task forces her Department or the agencies responsible to it have been involved in since July 1997; if a cost-benefit evaluation of these task forces has been undertaken by her Department; and the number of jobs created as a result of these task forces in each case compared with the job losses in each case in which a task force was established in response to major company closures or job losses. [13963/04]

Photo of Mary HarneyMary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

Since July 1997, State agencies under the auspices of my Department have been involved in 22 employment task forces. While no cost-benefit evaluation of these task forces has been undertaken the operational experience would strongly suggest that they were effective in providing a co-ordinated response to major company closures.

Large-scale job losses in an area are always a matter of concern given the impact on individual workers and their families as well as on the broader community. Nevertheless, we must set individual employment losses against continued employment expansion in the overall economy. The focus of the agencies is on finding alternative employment for the workers involved. This process has been facilitated by the success of the broader economy with over 270,000 jobs having been created over the past five years and the unemployment rate among the lowest in the European Union and significantly lower than that in France, Germany, Finland or Sweden. This has been helped in no small part by the Government's economic policies and my Department's support for enterprise through its agencies.

Employment growth and contraction are essential elements of the market economy in which Ireland has performed so well over the past decade. Developing a competitive economy, resilient to the toughest competitive pressures, is the optimal approach to sustainable employment growth. The Government is committed to delivering on the competitiveness agenda. For example, it will assess our competitive status every six months to ensure that all appropriate steps are being taken to maintain and improve on our recent achievements. In addition, I expect the enterprise strategy group under the chairmanship of Mr. Eoin O'Driscoll to report shortly on enterprise policy requirements for the decade ahead which will sustain and develop industry and our competitiveness.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

My question had three elements to it. The first related to the number of task forces and the Minister answered that. The second related to cost-benefit analyses, but the Minister did not answer that. The third related to the number of jobs created and that was not answered. In the Minister's reply there was an assertion which was made last year that the task forces were effective in providing a co-ordinated response to major company closures. Is that assertion correct, given that without a cost-benefit analysis we do not know how much each job cost or what was the benefit from them? The Minister also stated that we are trying to develop a competitive economy. How can she say what we are doing is competitive when we have no idea of the costs involved?

We know, for example, that the cost of an IDA Ireland job is in excess of €13,000, the cost of an Enterprise Ireland job is €9,000 and enterprise board jobs cost €4,500. We have no idea how much these task force jobs cost nor how many jobs are created by them. Are any task forces still in operation? Are they answerable to the Department of Enterprise, Trade and Employment or anybody else? For how much longer are they likely to operate?

Photo of Mary HarneyMary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

The Deputy misunderstands what the task forces are supposed to do. They are established following major closures to assist workers, in particular, to access training or find alternative employment. Huge logistical issues arise for workers and their families after a major closure. The view of the trade union movement and all those who have participated is that the task forces have been extraordinarily successful. Many of the forces have had a wider remit to make recommendations. For example, the Donegal task force was asked to suggest what needs to happen to encourage investment in that county. The recommendations related to all aspects of government, such as infrastructure and education, as well as issues relating to my Department.

Some of the task forces are still in place. They were not established as alternative State job creation agencies. Over 400,000 additional people are in work, compared to 1997. Almost 45,000 more people have joined the workforce in the past year. The economy is continuing to generate new, high-quality, alternative jobs. In common with the most successful economies in the world, we go through times when jobs are lost and others are created because some companies cannot survive, restructure or scale back their operations. Task forces have an important role to play in respect of such logistical issues.

We have not done a cost benefit analysis of the task forces. The actual direct cost of the forces was negligible because they are generally composed of individuals who participated on a voluntary basis, staff from enterprise development agencies or representatives of local authority management. None of the individuals were paid for their work on the task forces. The only expenses that were incurred related to consultancy, for example, or the hiring of premises. I can give the Deputy figures about the actual costs. We did not do a cost benefit analysis, which is a different issue.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

I thank the Tánaiste for her offer to submit the relevant figures to me. I would appreciate it if I could see them. Does the Tánaiste intend to establish more task forces? I note that no task forces have been established in recent times. For how long does she envisage that the task forces that are still in operation will continue? Will they continue indefinitely? Are they likely to be wound up?

Photo of Mary HarneyMary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

Task forces are wound down when they have passed their sell-by date and achieved the task that was given to them. I cannot remember when we last established what I would call a task force because we have not had a major closure in recent times.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

We have had a few.

Photo of Mary HarneyMary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

We have to keep an open mind about the most suitable mechanisms to put in place when large numbers of people in a particular area, especially a peripheral location where easily accessible alternative jobs are not available, find themselves out of work. When large numbers of people are made redundant, we usually bring together State agencies such as FÁS to interact with the company and the workers to try to establish alternative employment or training. Such measures have been particularly successful. I have on many occasions met individuals who used to work as operatives on factory floors and were then trained in computer skills. In many instances, they are now working in better jobs and are earning substantially more money. We have had terrific success in obtaining alternative employment for many people.