Tommy Broughan (Dublin North East, Labour)
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Question 59: To ask the Minister for Social and Family Affairs his response to the recent National Economic and Social Forum report on creating a more inclusive labour market in so far as it relates to areas for which his Department has responsibility; and if he will make a statement on the matter. [10999/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The National Economic and Social Forum, NESF, report covers the full breadth of issues involved in creating a more inclusive labour market. The recommendations underlying the report extend beyond the social welfare system, to include local partnership-based strategies, labour market and social inclusion measures and structures, make-work-pay policies, the national employment services, workplace strategies and progression of low-skilled workers.

The Government noted the contents of the report and agreed that it would be considered by all relevant Departments and agencies. It will also be considered by the senior officials group on social inclusion, chaired by the Department of the Taoiseach, in the context of wider labour market issues and process under way. The specific implications of the report for the Department of Social and Family Affairs will be assessed as part of the process.

The report notes that more than €1 billion of State funding is spent annually on measures aimed at helping people into work and tackling problems associated with labour market vulnerability. This encompasses the work of several Departments, including the Departments of Enterprise, Trade and Employment and Education and Science. To improve ways in which this spending addresses its objective, the report recommends that a national strategic framework should be developed to provide better opportunities for vulnerable people to get into and stay at work. This would ensure coherence and integration in a co-ordinated response to improve access to employment, training and education and to finding better quality jobs on the labour market. A more integrated strategic framework would provide better opportunities for vulnerable people to access and remain in employment and facilitate an increased participation in employment for vulnerable groups.

Such a framework could make a significant contribution toward this end as it would build upon a considerable degree of co-operation and co-ordination between Departments and agencies in the administration of the various programmes. An example of this is the roll-out of the national employment action plan, NEAP, between the Department of Social and Family Affairs and FÁS, in which people on the live register are referred to FÁS and find a progression path such as training, education or employment most suited to their individual circumstances.

There is always room for improvement and scope for increasing the value and coherence of expenditure by improving the policies, institutions and measures in place. Given the rapidly growing demand for labour in our economy, a strong business case exists for an inclusive labour market approach, as this leads to a more productive, higher skilled work force. Through the NEAP and a range of other supports, the Department of Social and Family Affairs has already made considerable progress in this regard.

Additional information not given on the floor of the House.

The report makes several specific recommendations with regard to the future direction and administration of social welfare employment supports and the family income supplement scheme. The Department of Social and Family Affairs is considering these as part of the overall Government response to the report but also bearing in mind the context of expected work in this area by the National Economic and Social Council.

In this context, several issues highlighted in the report are already being addressed, including the removal of disincentives to taking up employment or to participating in training courses and to assisting in the transition from welfare to work. These measures include the introduction of special means disregards and tapered withdrawal of benefits as earnings increase, and the provision of employment support schemes such as the back to work programme.

The specific recommendations in the report and others which come within the responsibility of the Department of Social and Family Affairs will be considered, as agreed by Government, in providing incentives for job seekers and other disadvantaged people to become financially independent.

Willie Penrose (Westmeath, Labour)
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The NESF report demonstrates how unequal society and how fragile the domestic labour market have become. The report was a significant rebuff to how the State spends moneys on welfare services for the long-term unemployed. Government policy continues to facilitate a growing gap between rich and poor. The welfare system does not encourage those out of work for long periods to return to the workforce. Low levels of lifelong learning and the failure to address illiteracy levels means many people, normally available to work, do not receive the training or education to be enabled to do so.

The NESF report identified that society, while wealthier, is more unequal. The richest 20% of the working age population earn 12 times as much as the poorest 20%, the highest level of market income inequality among OECD states. There is less equality of opportunity than in many other European states, despite the large expansion in education and the economy. Some 14% of households in poverty are headed by people with a job, a rise from 7% since 1994. This is a contradiction to the mantra we have all been singing; an indication that employment does not always provide a route out of poverty.

I compliment the Minister on appointing women to State boards; at least he practises what the Government preaches. Ireland is ranked 51 out 56 countries in economic opportunity for women. Ireland has the highest penalties in pay reduction associated with motherhood, with working mothers having lower earnings than women without children. Over 40% of the male working population aged between 15 and 64 are low skilled compared with 20% in Germany. What are we going to do about those factors which indicate that society was never more unequal than it is now and that the labour market was never more fragile? We cannot continue to ignore those sections of society that have not benefited from the prosperity or recent years. The report is a timely reminder of what needs to be done to make Ireland more equal and to ensure that everybody outside the golden circle — not just the select few who bear the insignia of investiture — can play a full part in creating a better society.

Séamus Brennan (Dublin South, Fianna Fail)
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That is a major debate and one that we have already had once or twice.

Willie Penrose (Westmeath, Labour)
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Once or twice, yes.

Séamus Brennan (Dublin South, Fianna Fail)
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We could spend a few hours at it so I will not wander down that road too much apart from saying that the report notes that more than €1 billion of State funding is now being spent annually on measures aimed at helping people to get back to work, as well as tackling problems associated with labour market vulnerability. We have agreed many times that the way out of poverty is through employment. That is the target so we try to help people to obtain more education and training to that end. That is the road to better quality employment. We are investing substantially in that area, which helps greatly.