Willie Penrose (Longford-Westmeath, Labour)
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Question 2: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views, in view of the fact that the numbers on the live register have increased by more than 100,000 in a little more than 12 months, on whether Ireland is facing an emergency in terms of job losses; the steps she is taking to stem the number of job losses; if she will provide new training opportunities for persons who have lost their jobs; if she will encourage the creation of new employment opportunities; and if she will make a statement on the matter. [41990/08]

Billy Kelleher (Cork North Central, Fianna Fail)
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The total number of people recorded on the live register for October 2008 is 251,951, showing an increase of about 94,500 in the 12 month period. It should be noted that the live register is not designed to measure unemployment and includes part-time, seasonal and casual workers entitled to unemployment benefit.

Employment and unemployment are measured by the quarterly national household survey and published by the Central Statistics Office. In the second quarter of 2008, the most recent quarter for which data are available, employment increased by 6,900 over 12 months to a current total of 2,108,500. Unemployment increased by 15,200 to 115,500 in the same period. I understand the Central Statistics Office will release quarterly national household survey results for the third quarter tomorrow.

The rise in unemployment, while regrettable, must be viewed in light of unprecedented growth in the economy and employment in recent years. Overall employment growth was driven by significant growth in employment in the construction sector. Such levels of growth could not last indefinitely and the resultant rise in unemployment has been compounded by the international credit crisis in the economy and a general slowdown in employment in all sectors. Ireland is not alone in finding itself in this position, as many countries throughout Europe and around the world are experiencing similar difficulties in their labour markets. For example, it was announced recently that the euro zone has slipped into recession. Moreover, Britain, Japan and the United States are experiencing economic difficulties while China has announced it will pump €500 billion into infrastructural development to stimulate its economy. Clearly, we are not alone in facing grave challenges.

FÁS and the Department of Social and Family Affairs are working together in order that they can respond quickly to the increase in unemployment. For example, as regards employment and job search services, FÁS, with the local employment services provided by area based partnerships, has geared up its employment services further to provide increased capacity for expected increased referrals from the live register and put in place a series of actions to facilitate redundant apprentices in completing their studies.

Additional information not given on the floor of the House.

These include redundant apprentices being allowed to progress to their next off-the-job phase of training without having to do the next on-the-job phase. I have also provided FÁS with €4 million to subsidise the employment of redundant apprentices in 2009. FÁS has specific mechanisms in place to deal with redundancies and-or company closures. It offers a tailored approach as early as possible to the workers affected with a view to assisting them to access alternative employment.

As regards training for those who become unemployed, I have given FÁS an additional €5 million for training the unemployed and the organisation will increase total training places in 2009. It will also provide a range of certified, short, flexible, modular programmes in construction sector activities which are expected to remain buoyant despite the slowdown in construction. It has established a training fund to enable a speedy response to identified retraining needs for low skilled and redundant craft workers and in 2009 it will open evening classes to people who are unemployed without payment of a fee.

As regards promoting enterprise development to create new jobs, the enterprise development agencies of my Department, including IDA Ireland and Enterprise Ireland, are working to ensure we continue to expand the economy and increase jobs, even in the current more challenging environment. The pipeline of new business for which IDA Ireland is competing is as strong as at any time in recent years. To facilitate this process we need to ensure our competitiveness is sustained into the future.

Willie Penrose (Longford-Westmeath, Labour)
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The loss of jobs in the economy exercises every member of the Labour Party, which has prepared a comprehensive document entitled, Labour's New Deal: Key Proposals for Economic Recovery. The proposals constitute a stimulus package to try to reflate the economy and address some of the issues arising, particularly in the employment area, while recognising the deep human and social cost of rising unemployment.

Next year, the number of people out of work is likely to reach 300,000, a figure that has not been reached since the 1980s. Surely this sounds a wake-up call for the Government. One would need to have one's head in the sand not to be aware that the number of redundancies has increased by 50% in the past year, 700 people are losing their jobs every week and 40,000 jobs will be lost in the building sector next year. People are moving to the Middle East and Australia to seek employment. Will we give people the one-way ticket many of my relatives had to take in the 1950s? Will that be the Government's badge of honour?

I am concerned about small and medium size enterprises, about which I have spoken in the Joint Committee on Enterprise, Trade and Employment. This is the area on which we should focus. I am grateful that foreign direct investment will continue and a number of projects are in the pipeline and I acknowledge the hard work being done by Mr. Frank Ryan and his colleagues.

Surely credit is the oxygen of small businesses. Unfortunately, however, the small business sector believes the Government is standing idly by while it is being choked to death.

Charlie O'Connor (Dublin South West, Fianna Fail)
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As the time remaining for the question is limited, I ask the Deputy to put a question to the Minister of State.

Willie Penrose (Longford-Westmeath, Labour)
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I will ask about Tallaght first. Is the Minister of State concerned about the crisis facing many small and medium size enterprises arising from the credit famine, which is contributing significantly to the massive increase in unemployment levels? A large factory shedding 300 jobs will make headlines but I suggest that the hidden cost of a factory closure will be another 300 jobs lost down the line.

Will the Minister of State condemn the refusal of banks to make available the normal credit streams which are the life blood of small companies? Why is the Government not prepared to provide alternative sources of credit? Members of the Government have spent recent months clapping themselves on the back for introducing the Credit Institutions (Financial Support) Bill. Despite the Government stepping in to rescue the banks, chief executives and others continue to pay themselves top dollar. Why has the Government not brought representatives of the banks into the Departments of the Taoiseach and of Finance to tell them their job is to lend money and that, having been helped out by the public, it is their turn to show patriotism and help out small businesses? If we fail to get our act together, these businesses will die on their feet and rural areas will be decimated and left without jobs.

Billy Kelleher (Cork North Central, Fianna Fail)
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The Government is acutely aware of the challenges facing small and medium sized enterprises. The Minister has met representatives of the sector, while the Minister for Finance has held discussions with the banks. However, Deputies had an opportunity to show solidarity with small and medium sized enterprises and the broader economy when legislation came before the House to give comfort to the banking institutions.

Willie Penrose (Longford-Westmeath, Labour)
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The Minister of State should look at what the banks did. They proved the Labour Party right. The Government did not give a penny to small businesses but helped those who were already successful. The Labour Party's approach was to protect the small people.

Billy Kelleher (Cork North Central, Fianna Fail)
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The Labour Party failed to step up to the mark and took a populist approach.

Willie Penrose (Longford-Westmeath, Labour)
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The Labour Party is proud of its actions. The banks did exactly what we said they would do.

Billy Kelleher (Cork North Central, Fianna Fail)
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We now see crocodile tears. The Labour Party had an opportunity to act but sat on its hands.

Willie Penrose (Longford-Westmeath, Labour)
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I will not listen to claptrap from the Minister of State about what my party did.

Billy Kelleher (Cork North Central, Fianna Fail)
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The Labour Party did nothing. It sat on its hands and failed to support the country at a time when it was facing a serious challenge.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Order, please.

Willie Penrose (Longford-Westmeath, Labour)
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We have been proven right. The banks have done nothing for the people. The Government was worried about the land developers and speculators.

Billy Kelleher (Cork North Central, Fianna Fail)
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I have heard that before. The Deputy is being populist.

Willie Penrose (Longford-Westmeath, Labour)
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I am not being populist.

Charlie O'Connor (Dublin South West, Fianna Fail)
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The Deputy has made his point. If he does not allow the Minister of State to conclude, I will reluctantly suspend proceedings.

Billy Kelleher (Cork North Central, Fianna Fail)
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As I pointed out, the Government is acutely aware of the challenges facing small and medium sized enterprises, which are the powerhouse of the economy. Banks must open credit lines to small businesses. Without the support provided by the Government and main Opposition party, we would be in a much more challenging position. The Labour Party did not step up to the mark and took a populist approach.

Willie Penrose (Longford-Westmeath, Labour)
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Unfortunately, we have been proven correct.