Róisín Shortall (Dublin North West, Labour)
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I move:

That Dáil Éireann:

notes with alarm:

the catastrophic increase in unemployment levels that have seen 200,000 people added to the live register since the general election in May 2007, and the acknowledgement by the Taoiseach that the numbers are likely to exceed 450,000 this year;

that the cost to the Exchequer of these additional numbers has been €4 billion in terms of extra social welfare payments and income tax foregone, before the cost of secondary benefits or the loss of spending power are factored in;

the devastation being caused to individual families, local communities and the potential social damage of the return of mass unemployment; and

the failure of the Minister for Social and Family Affairs to ensure that facilities are in place to cope with the huge additional numbers who have now to sign-on and claim the benefits to which they are entitled with dignity;

deplores the failure of the Government to treat the unemployment situation with the seriousness it deserves and the lack of action to create new jobs and protect existing employment; and

calls on the Government to produce a national jobs plan designed, in particular, to stem current job losses and to provide educational and retraining opportunities for those who have lost their jobs, which should include:

an earn and learn scheme which would allow people to combine short time working with education or training;

a reduction in the lead-in time for eligibility for the Back to Work Enterprise Allowance and the Back to Education Allowance;

an improvement in access to Community Employment and Jobs Initiative Schemes;

measures to ensure that every school leaver who finishes school next summer has the option of work experience, training or further education;

the provision of better opportunities for career breaks and flexible work options, underpinned by legislation;

a substantial programme of investment in skills, further education and retraining, including a greater role for the Institutes of Technology in this area and an increase in the number of places available under the Vocational Training Opportunities Scheme (currently capped at 5,000) and the use of vacant places in universities and colleges;

the lifting of the "cap" on the enrolments to courses in colleges of further education; and

the provision of adequate facilities at social welfare and community welfare offices and the proper scheduling of appointments so that people are treated with dignity and that the practice of having to queue outdoors for long periods is ended.

With the permission of the House, I would like to share time with Deputies Penrose, Costello and Morgan.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Is that agreed? Agreed.

Róisín Shortall (Dublin North West, Labour)
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Last October, the Labour Party tabled a Private Members' motion calling for action on tackling the jobs crisis. Back then the problem was obvious. We had an extra 100,000 people on the dole in the previous 12 months. The solution was obvious. We needed an urgent response from the Government, such as a jobs plan, a training plan, an income plan, and a completely new approach to the needs of the unemployed. The truth is we did not get any plan.

The budget, the smart economy document, social partnership talks, the Fianna Fáil Ard-Fheis and the Green Party national conference have all come and gone and still there is no announcement of a jobs plan. The October budget focussed on cutting back supports for the unemployed rather than reinforcing them. The draft framework for a pact for stabilisation, social solidarity and economic renewal, stated, "We will convene a jobs and skills summit in March 2009 to devise innovative approaches to the maintenance of employment, the creation of new employment and early and active engagement with those losing their jobs." Where is that? It has not happened. Crazy as it is, it is still the policy of the Government that one must be long-term unemployed before one is eligible for key supports. How can a welfare system that promotes dependency ever hope to succeed?

In the meantime, the dole queues have grown longer. A total of 44 social welfare offices have recorded a doubling of their live register number in the past 12 months. The numbers signing on at a dozen welfare offices have trebled since the last general election. The processing times for jobseeker claims have also grown longer. The average wait per social welfare office for jobseeker's allowance claims is now six weeks, while 17 social welfare offices have a waiting time of two months or longer. The waiting times for self-employed people are particularly long.

Pressure of numbers has led to the awful sight of long queues of newly unemployed people stretching down the main streets of our towns in the cold and rain. There are very practical steps that could be taken on this specific issue. One step is to schedule appointments so that queuing time is minimised. Another is to have sufficient indoor waiting accommodation either in the social welfare office itself or closeby. People are entitled to be treated with dignity by the State. Another practical step is to provide better supports and to insist on better returns from the social welfare branch offices. At branch offices, which are run on a contract basis by private individuals, the local branch manager determines staffing levels. Therefore, while there have been some extra personnel processing claims in local offices, it is not clear how many, if any, extra staff have been employed by branch managers.

In 2008, branch managers were allocated €9 million between them to deal with claims on behalf of the Department and we are entitled to ask where is that money going when the processing times are so dreadful. Of the 17 social welfare offices that have processing times of more than two months, 15 of these are branch offices. Either the Minister is not supporting branch offices enough, or the branch managers are not employing enough staff. There has to be a serious question mark over whether this system is working and whether there is sufficient flexibility at times of high demand. Wherever the fault lies, it is the responsibility of the Minister to ensure every jobseeker can expect to have his or her claim dealt with speedily at his or her local office, no matter who is running it.

This motion is about urging the Government to get up off its backside and confront this problem. There are several areas where urgent action is needed. For a start, it is time to reform the back-to-work supports, such as the back to education allowance and the back-to-work enterprise allowance. These supports were established to tackle long-term unemployment, which consists of people who have been out of work for a year or more. In the case of the back to education allowance, the usual waiting period for an applicant applying for a third level course is one year, although it can be even longer depending on when a course begins. For the back-to-work enterprise allowance, the usual waiting period is two years. These rules need to be changed. The welfare system should be about preventing long-term unemployment rather than promoting it. It should be possible for those who have been made unemployed to avail of these schemes within three or four months of losing their jobs.

People who have received statutory redundancy are already permitted to avail of these schemes immediately. Therefore, the principle is already accepted. However, we know that many people do not receive statutory redundancy in this day and age. What is the argument for precluding those people from access to these allowances? The enterprise allowance would be revenue neutral if the business lasted five years and would pay itself back sooner than that, if the business resulted in the recruitment of additional staff.

Last year, the Labour Party brought forward its idea of an earn-and-learn scheme. The idea is that where a person is on a short-term working contract, he or she would be enabled to take up a training or education place for the days in which he or she was not employed. Job retention schemes along similar lines are operating successfully in the Netherlands, and we could adopt those as a model.

In addition, it can be difficult for people who want to keep occupied while unemployed to conform to the current eligibility rules for jobseeker's benefit. One employer contacted me last week to complain that a former employee, a jobseeker who he let go because of falling revenue, contacted him asking if he could work for free for two hours, three days a week. He was still available for other work and actively seeking it. He just did not want to be idle. When they inquired with the local social welfare office about this, they were laughed at. Obviously, we could not have a scenario in which a job was being replaced, but at the same time, our welfare system should place a value on people keeping occupied while they are looking for work. Very soon we could have 400,000 people doing nothing, because that is what the current rules require them to do.

The suggestion that appeared in yesterday's Irish Independent to recruit teacher apprentices is worth considering for unemployed graduates. Graduates gain work experience in their own field and are paid €20,000, which is the cost of each job that is lost to the economy. It is an idea that could work across all sections of the Government and with all professions. For example, it could be applied to accountants taken on by the Revenue Commissioners, architects and planners in local authorities, occupational therapists and other therapists in day centres and many grades in the health services.

Another pro-jobs initiative would promote the use of career breaks and flexible working arrangements. Not since 1980 have we had such a surge in births. There have been 72,300 births in the 12 months to last April, while 165,000 have joined the dole queues in the past year. That presents a scenario in which many people do not have enough work, while many others have too much. Career breaks are rarely offered to employees outside the public service. A scheme should be introduced that provides incentives to employers to offer career breaks or flexible working arrangements, while providing employees with a legal entitlement to their jobs back and security on other issues when that leave ends. For example, employees do not qualify for social insurance credits if they take career breaks, and that could be tackled. In recent months some employers have chosen this option, most notably the Irish Examiner.

The choice to take time out, that many young parents and other carers would like to make, is not an option for many and has little legal protection for those who have that choice. Promoting and delivering on such a scheme would make more room in the workforce, reduce unemployment and provide flexibility to families and carers when they need it.

The Government should also reform community employment. There is a great opportunity to match several sets of needs by expanding the number of community employment places. One in three of those on the live register is a former construction worker or from that general sector. Within that cohort, there are several thousand workers who are over 50 years of age and have general trade and handyman skills. There is a significant demand among this group to find fulfilling employment in the social economy sector. At the same time, there is no State scheme of assistance for senior citizens who cannot manage minor repair jobs to their homes. Not everyone can rely on family members. Very often these jobs are funded by a community welfare officer and the additional cost to the State of expanding community employment is not substantial.

The needs of early school leavers must also be addressed. In particular, we should not allow the situation where the first act of a school leaver is to sign on the dole. There should be an entitlement for every school leaver to a place in employment or training. Financial support should be contingent on meaningful participation in such courses.

As part of any such measure, the Government must lift the cap on post leaving certificate courses using a portion of the funds set aside for the 51,000 training places for newly unemployed people. At present there is a total cap of 30,000 on post leaving certificate course numbers. The City of Dublin Vocational Education Committee stated that there is a significant demand for places with 3,000 students enrolled over and above the numbers of places for which there is funding. The cost of providing extra places is marginal as most of the infrastructure and services already exist. Similarly, the cap of 5,000 on the vocational training opportunities scheme should be lifted.

There are many other areas that deserve Government attention. The national development plan must be dissected again, audited for the number of jobs it can create, and re-prioritised on that basis. The Government should ensure that local employment services are extended throughout the country as I still hear of people turned away for financial assistance on the basis of their address. Every unemployed person should also be guaranteed access to the services of a career coach with appropriate human resource training. The Government must also review the criteria it uses to judge projects it funds through public procurement procedures. We must give the greatest weighting possible to recruiting unemployed people and local labour. Finally, start-up grants for new business are not sufficiently geared towards modern businesses and should be reformed accordingly.

The point of the motion is that there is more to Government than simply balancing the books. The Government has been obsessed with balancing the books in recent months and has completely neglected the jobs crisis affecting tens of thousands of citizens. The 200,000 people that have joined the live register since the last general election are stuck in a system that was designed for a different era and it is time to change that system.

If the Government is serious about taking up ideas from the Opposition and dealing with our problems in a non-partisan way, it will listen tonight. It is not possible to solve the budgetary crisis without solving the jobs crisis. The Government should give us a national plan now and let us get on with getting people back to work.

Willie Penrose (Longford-Westmeath, Labour)
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The current unemployment crisis is the worst in the history of the State and there is no prospect that the haemorrhage of jobs will stop in the near future, unless the Government gets its act together. It must do so now in an unequivocal fashion. We need innovative ideas and new initiatives. The old solutions are packaged in a way which will not suffice in the current economic climate.

Some commentators have suggested that the current crisis is not as bad as that with which we had to cope in the 1980s. However, that is incorrect, because in the 1980s there was a halt to the modest economic growth of the 1970s and most people had not experienced prosperity. It was also possible for the unemployed to emigrate, and many of our families did so, as the UK and the USA were growing rapidly. I remember it was said at the time that there was not room enough for everyone to live on this small island. However, we may soon find out that we can all live on this island if unemployment continues to rise and the unemployed see no prospect of finding work at home or abroad.

In its current state of panic, the Government is trying to blame the global recession for all our problems. However, most people understand that the policies pursued by Fianna Fáil-led Governments in the past decade have left us ill prepared for the current crisis. I do not wish to bore the House with economic theory, but every first year student of economics learns that in managing the economy, Government policy should be counter-cyclical. This means in a boom period the Government dampens the boom by controlling spending and, if necessary, increases taxation to pay for essential services. Since the days of the former Minister for Finance, Mr. Charlie McCreevy, the policy of "If I have it, I spend it" resulted in the Government fuelling the boom and now that it is over, the cupboard is almost bare and the few bones in it must be used to prop up the banks which were responsible for criminally irresponsible lending that has contributed such a great deal to the current crisis. At a time when banks should be lending to support existing and new businesses, they are unwilling to do so, because they are hoarding capital in order to deal with the crisis caused by irresponsible lending.

Let us consider the situation of the Small Firms Association. Many of its members have had various experiences dealing with the banks and many are now on the brink of failure because of the lack of credit, which is the lifeblood of business. Small and medium sized enterprises are the engine room of the economy. Credit is not being made available to these firms. Worse still, some of the banks are refusing to pass on the reductions in interest rates. We now have the worst of all options. Overdrafts are being reviewed very critically and some are, perhaps, subject to reductions. It is difficult for new loan facilities to be approved which would pump in money and get new ideas off the ground.

The question small businesses are putting to me and my colleagues is: Whither the benefits of the €7 billion recapitalisation plan? Who is benefiting from it? It is not filtering down to the small businesses which are crucial to the economic well-being of the country and to many places especially throughout rural Ireland. The three, four and five jobs that such firms provide are of paramount importance to ensuring the sustainability and viability of a great many families in the country. Entrepreneurs with innovative ideas do not get a chance to launch their ideas. Deputy Shortall is correct to say we must change the ideas. Let us consider start-up grants and cut out the nonsense. Some of the grant schemes are as old as Methusela and have not been amended to reflect the new challenging economic environment in which we find ourselves. They were fine when the boom was under way and when everything was floating but they are no good now. We must change the situation in order that the small businesses which create five or six jobs mean something. Whether it is the manufacturing, technology, science, food or retail sectors, such businesses are soundly based. Many are family owned and operated. They will fight to the very end to survive. No red carpets are rolled out for such people. Such businesses started from nothing and very often their success was the result of hard work generated by husbands and wives or partners. We must help such people, because these are the people who will get us out of this recession. They will save this country.

Given the crisis in the public finances we cannot engage in the stimulation measures that other small, open economies could use to help weather the current crisis. The measures to be introduced in the mini-budget may worsen unemployment by reducing disposable income and the demand for labour. We must contrast this with the UK and Northern Ireland where the Government is in a position to reduce taxes and stimulate the economy. We are all aware of the substantial rise in cross-Border shopping which is causing a further loss to tax revenue and jobs here. I am aware that the Government must give priority to the fiscal crisis. However, it seems that apart from warning of the increase in unemployment there is no strategy to deal with it. Hundreds of jobs are being lost every week in the construction industry. However, the school building programme for which money is already allocated is incredibly slow and some 45,000 pupils languish in prefabs. It takes the Department of Education and Science years to approve a new school, never mind build it. This is the problem.

We have proposed several ideas. It is a significant and traumatic experience for anyone to be told his or her services are no longer required, in other words, that one is being made redundant. Behind all the statistics, especially the 353,000 unemployed, there are human beings, their families and dependants. Losing one's job is most sickening. I recall when my father became unemployed in the 1960s. We were young children, aged between 12 and 14 years at the time and we had some understanding of the situation. However, the younger ones did not realise. It is an awful trauma to be visited on anyone. Jobs are disappearing at the rate of greater than 1,000 per week. At present, 353,000 people find themselves standing in dole queues, queueing up in inclement weather outside doles office which cannot accommodate them. Some 200,000 people have lost jobs since the last general election representing a cost of €4 billion. The Government is seeking €4.5 billion. We have the statistics. Some 200,000 people cost the State €4 billion, which is a very significant sum of money in terms of social welfare benefits and income tax foregone. That calculation is made without consideration of the cost of secondary benefits and the loss of spending power in the economy. The loss of spending power is being experienced in every retail outlet and is forcing many small, family run businesses to shed employment. As many as 250,000 such businesses provide up to 750,000 jobs. We must help this sector.

The Labour Party has made a number of proposals. As noted in the 2007 Forfás report, Towards Developing an Entrepreneurship Policy for Ireland, there is a major problem in the area of entrepreneurship policy. While I cannot deny that the Government is investing in programmes which aim to develop and encourage small businesses and entrepreneurship, too many agencies, bodies and Departments are involved in this area. The Department of Enterprise, Trade and Employment supports entrepreneurs and start-up businesses through a range of bodies, including city and county enterprise boards. The Department of Education and Science is responsible for the delivery of entrepreneurship education and training in the education system. The Department of Community, Rural and Gaeltacht Affairs is responsible for Udarás na Gaeltachta, the Leader programme and area partnerships. The Department of Arts, Sport and Tourism is responsible, through Fáilte Ireland, for the development of tourism enterprises. The Department of Justice, Equality and Law Reform is responsible for regulating residence and work visas for third country citizens and issuing business permissions to such individuals. The Department of Finance is responsible for overseeing the fiscal incentives for enterprise establishment and equity investment such as the seed capital and business expansion schemes.

Let us get our act together. Ireland lacks an explicit and articulated entrepreneurship policy directed at ministerial level. All the responsibilities I have cited should come within the remit of the Minister. One Department must run the show and perform all the activities currently carried out by a variety of Departments. There is no overarching forum and policy is all over the shop. One should not have to run from Billy to Jack, Joan or Mary to secure information. Policy and initiatives must be driven in a coherent manner, as recommended in the Forfás report in 2007. Nothing has been delivered in the meantime.

A number of Departments are responsible for delivering various initiatives which impact on entrepreneurs and the environment in which they operate. The policy is fragmented across Departments and agencies and should be pulled together. We must meet the challenge in these difficult times. My proposal is not an airy-fairy suggestion but a positive proposal.

I have further proposals. The Minister should remove the eligibility conditions attached to the back-to-education and back-to-work allowances and the vocational training opportunities scheme. Education is the way forward. We need to get people into the institutes of technology, as has been proposed in the case of apprentices in SR Technics. The theory element of the apprenticeship should be brought forward and the apprentices allowed to attend the institutes of technology for nine months, by which time we will, I hope, have turned the corner and work will be available in the aviation sector. Deputies Broughan, Costello and others from the northside of Dublin have articulated this argument very well. Let us give these young people an opportunity to complete their apprenticeship. We need aeronautics technicians and engineers. We might as well pay the €300,000 it would cost to allow them to transfer to the Dublin Institute of Technology which is ready and willing to facilitate them. I know the Minister is on top of this issue.

On social welfare payments, why not allow employers to top the unemployment benefit or jobseeker's allowance of individuals to bring their income above the minimum wage? Such persons could then be engaged in meaningful activities. Let us be innovative and flexible in the new circumstances we face.

It is not possible to supply a service for less than €37,500, which is the threshold at which companies must pay VAT. The figure must be increased to €60,000 or €65,000, while the VAT threshold for those supplying goods should be increased from €70,000 to €120,000. The Government will strangle companies with regulation. The complexities of VAT would require a small company to employ a bookkeeper for half a day each week, costing another €80. I know from personal experience that the steps I advocate will work.

The Minister should also expand community employment and job initiative schemes. The role of the county enterprise boards, which are involved in job creation measures affecting fewer than ten people, an area not covered by Enterprise Ireland and IDA Ireland, should also be expanded. A wider range of start-up grants is also required and greater discretion should be allowed in this area which is excessively restrictive and governed by too many eligibility criteria. These grants must be changed to reflect the current circumstances.

We spend too much time examining issues when we must translate ideas into action. It is often argued that the Labour Party does not have ideas. We have many positive ideas and are making them now. Let us act on them to get people back to work.

Joe Costello (Dublin Central, Labour)
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I thank Deputies Shortall and Penrose for tabling the motion. They have articulated a number of ideas which would allow the Minister for Enterprise, Trade and Employment to address the current crisis. I hope she has been listening to their contributions.

The unemployment figure increased from 327,000 in January to 350,000 at the end of last month. It has increased by 200,000 in two years and the rate of increase is accelerating. The average increase in unemployment of 12,000 per month has almost doubled in the past two months and unemployment will almost certainly reach 450,000 by the end of the year, the figure cited by the Taoiseach.

We would not be going down the road of introducing a mini-budget next month to plug a hole of €4 billion in the Exchequer figures if the number of unemployed had not increased so substantially. The cost of 200,000 unemployed people in tax foregone, social welfare payments and secondary benefits roughly equates to the €4 billion being sought in the forthcoming budget. Clearly, therefore, job creation, retention and support are key in the economy and it is in these areas that the hole must be plugged and initiatives taken.

As Deputy Shortall noted, the Government does not have a coherent national jobs plan. This is outrageous given how long the crisis has lasted. The priority must be to prevent job losses. I will not repeat the many suggestions made in this regard, except to add one proposal, namely, the need to adopt "flexicurity", a new concept which forms a major part of the European Union's Lisbon strategy. Flexicurity is a flexible approach to work practices, which includes options that are family friendly while also providing security. The European Union provides supports for such initiatives.

The initiative I propose to emphasise most also emanates from the European Union. This is the need to ensure cashflow for small and medium enterprises. As the Tánaiste will be aware, at their summit in October 2008, EU Heads of State and Government put together a €30 billion fund which member states could access to inject funds into small and medium enterprises. As far as we can gather, however, the Irish financial institutions have not called down one cent of this fund. Six months after the event, we are informed they will establish structures for this purpose. Why are we starving these enterprises of cashflow, which is, as Deputy Penrose noted, the lifeblood of employment? Without cashflow, how will companies continue to function?

We have guaranteed the banks and invested large sums in recapitalisation but are unable to put a penny into cashflow. Perhaps the recently nationalised Anglo Irish Bank could be used as a vehicle for calling down this money and injecting it in the economy where it is much needed by small and medium enterprises. Something must be done in this regard. Given that money is available, the Minister must grab it and use it to try to ensure jobs are not lost.

A survey of all businesses, large and small, should be carried out and the State should have a database to enable intervention to take place where and when it is needed to prevent companies such as SR Technics and Waterford Crystal from going to the wall, leaving the State to carry the can. Given that many other companies are threatened, it is important to have information well in advance. We need to know what supports such companies need and what intervention mechanisms are necessary to try to keep them going in this time of crisis.

I am aware my time is running out. I heard on the radio today that the National College of Ireland is providing 300 places for the unemployed. I do not think many people in this House know that the NCI's capacity is capped at 8,500. The Government will not allow it to accept more students and it recruits largely from the local area. This would be ideal. Deputy Penrose mentioned DIT, whose colleges and faculties are out there waiting to be used if the Minister wishes to use them.

Jervis Street training centre, which is in my constituency, along with the centre in D'Olier Street, provides 30% of all employment services in this country, yet the Minister is closing down the Jervis Street centre. There will be no new training services because of a row with the landlord. The landlord has made an offer to the Department with very good terms, but it is not prepared to accept it. Why can the Minister not work on this and make sure there are adequate employment and training services?

Arthur Morgan (Louth, Sinn Fein)
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I thank the Labour Party for sharing time with me. I and my party support this motion in the name of Deputy Róisín Shortall. The news last week that more than 350,000 people are now unemployed, and the prospect of up to 600,000 people on the dole by the end of the year, is simply frightening. We are looking at an economic catastrophe and if the Government does not change its direction and focus on job creation, future generations of Irish workers, and indeed the Irish people, will pay a terrible price.

The announcement of closures from Dell in Limerick to SR Technics in Dublin is like a horror story. Every day more and more workers are being told they will no longer have a job. Behind all these figures lie real human stories. Thousands of families are coping with unemployment, which is very demoralising, leaves them in difficult financial circumstances and causes much strain on family relations. As our mortgages and rents are among the highest in Europe, families in Ireland are paying a far more terrible price than any of our European neighbours.

The Government built its reputation on job creation. Despite the clear problems in our services, Ministers from the Cabinet said that, if nothing else, the Government had created jobs. They patted themselves on the back. However, we have now seen that our economic policy of short-term jobs for short-term gain is a complete failure. Real job creation can only be achieved when it is based on sustainable policies. The Government did not listen to us when we warned that our economy was disproportionately reliant on the property market. It is now obvious to everyone — economists, trade unionists and employers — that the Government is incapable of learning from its mistakes.

The most disappointing aspect of the Government's performance over the past six months is that it seems to be behind the curve on almost everything. It is almost as if the recession was something that came out of the blue — something unexpected, like a car crash. However, when we look at the figures it is obvious that the writing was on the wall since December 2007. In our pre-budget submission in September or October of 2006, we pointed out that there was a massive bubble in the property market and in consumption. However, from the end of 2007 onwards there was a sharp increase in unemployment. The figures went up and up, while job creation fizzled out. This was something that was clear for all to see, yet the Government made no contingency plans to deal with it. Instead of planning for the economic crisis, the Government acted as though we were entering a new era of prosperity. Our former Taoiseach spent his last month of office going from one wine reception to another, patting himself on the back and telling everyone what a great contribution he had made to the economy, while our current Taoiseach paraded around County Offaly on the top of a bus. While the Government was engaged in typical Fianna Fáil triumphalism, the economy began to fall off a cliff, and it has not stopped falling since.

During the summer months and towards Christmas 2008, those bearing the brunt of our economic downturn were labourers and tradespeople in the construction industry, workers in manufacturing, architects and estate agents. However, this tsunami of unemployment has now spread to those in other professions, including solicitors, accountants and bank employees. The director general of the Law Society said recently that hundreds of solicitors were out of work, while major accountancy firms such as KPMG have announced 10% reductions in staff.

Despite the Government's claims that the global downturn is responsible for the problems in our economy — although I accept this is a major factor — the fact is that it promoted a complete over-reliance on the property market while effectively ignoring other critical sectors such as manufacturing and SMEs. This has led to the mass unemployment that has caused suffering to thousands of families. Many of these job losses are unquestionably linked to the collapse of the property market. Solicitors' firms became reliant on conveyancing, while our banking institutions engaged in more and more reckless lending to fuel property speculation. This came about because of Government policy, which sought to make property speculation and development the foundation of our economic policies.

These professionals and tradespeople who are now unemployed will not find any work in their areas of expertise. The Government must make a choice; either it will provide — very rapidly — other areas in which these people can use their skills, or it will force them to emigrate, leading to a brain drain which will perpetuate our economic woes. For those who have been let go but still have their qualifications, the situation is bad, but for those who were made redundant in the middle of their training it is far worse. In response to a parliamentary question I submitted to the Minister recently, I was told that 3,078 apprentices were made redundant in 2008. Already in 2009, hundreds more apprentices have been let go, which will probably shortly include the 60 apprentices at SR Technics. The number of solicitor apprentices and trainee accountants has massively increased. FÁS has not been equipped to handle the volumes of apprentices who need to complete their training or be directed into further training. If we do not invest properly in retraining these young people, they will be left in a very vulnerable position.

There is an overall lack of focus on the needs of young people. More than 14,500 young people have been on the dole for more than six months. Despite the Government mantra of encouraging retraining, this is simply not happening, and there is insufficient investment in getting our younger people back to work. One way in which the needs of younger people can be addressed is by lifting the cap on enrolments in third level courses, as called for in this motion.

Due to the Government's inaction, our social welfare offices are being overrun by construction workers, retail sector workers, professionals and young apprentices. The Government has not equipped them properly to deal with this wave of unemployment and by the admission of the Minister for Social and Family Affairs, the waiting time for processing applications for social welfare benefits has increased massively. In welfare offices in Maynooth and Bandon it is taking ten and 13 weeks, respectively, to process allowance claims. The Department of Social and Family Affairs has accepted that the additional staff taken on to deal with the upsurge in claims have no proper training. If there is no training it is difficult to see how we can bring down waiting times.

It is questionable whether enough human resources are being put in place. Perhaps if members of the Government released some of the 90 civil servants doing their constituency work for them——

Mary Coughlan (Donegal South West, Fianna Fail)
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Really?

Arthur Morgan (Louth, Sinn Fein)
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——we would not have this major problem dealing with our welfare claims. It is unacceptable for the Minister, Deputy O'Dea, and others to have six civil servants doing their constituency work. The Minister, Deputy O'Dea, also has two full-time drivers. Using civil servants on varying pay scales to carry out Ministers' constituency work is, in effect, a raiding of the public purse by Fianna Fáil, the Green Party and the Minister, Deputy Harney, in an effort to enhance their chances of re-election. Nobody would object to any Minister having a single civil servant to do his or her work, but I do not think they are worth six each. That is going beyond the norm. The five additional civil servants are the equivalent of five nurses, midwives or gardaí, or any of the other front line public servants that are urgently needed. I enthusiastically support the Labour Party motion.

Mary Coughlan (Donegal South West, Fianna Fail)
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I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"—recognises:

the increase in the number of people signing on the live register and the need for jobseekers payments to be processed as speedily as possible;

the fiscal challenge that this poses to the Exchequer; and

the difficulties that the current economic situation poses for the unemployed and their families;

commends the Government for:

the range of process improvement initiatives that have been introduced to facilitate speedier claim processing of jobseekers payments;

putting in place the necessary resources to ensure that claims for jobseekers payments are processed quickly;

the resources provided for the Back to Education Allowance and the Back to Work Enterprise Allowance under the NDP;

its commitment to ensuring that those who claim a jobseekers payment are treated in a dignified manner; and

the measures it is putting in place to ensure that those who become unemployed are given effective employment services and training supports to assist their return to employment including:

the increase in jobsearch services capacity from 6,500 per month to at least 12,250 per month;

the launch of 51,000 new training places under the FÁS Training Initiatives Strategy which brings to 78,000 the total short training course places under the Bridging Foundation Training, Specific Skills Training and Traineeship Programmes;

the establishment of a training fund to provide a timely response to identified training and retraining needs for low skilled and redundant craft workers from the construction sector;

the development of retraining opportunities for redundant construction workers in emerging areas such as the installation of energy efficient and renewable technologies, environmental activity, and compliance and regulatory work;

the development of a series of actions to facilitate over 2,200 redundant apprentices completing their studies; and

the substantial support given to community employment schemes, which give people employment experience to assist their return to the open labour market;

the work it is involved in with the social partners to encourage flexible working arrangements;

the increased investment in higher education to €2,000 million in 2008, an increase of 135% since 1997, and which is supporting participation by over 170,000 learners;

the introduction of the multi-annual Strategic Innovation Fund (SIF) for higher education which has been a major catalyst in introducing more flexible and innovative approaches to the delivery of programmes responsive to the needs of industry and to an increasingly diverse group of learners;

the establishment of a new legislative framework for the Institute of Technology sector which is facilitating new approaches to upskilling or reskilling those who may either be a long time out of the formal education system, or who do not have qualifications in areas where job opportunities may develop;

the increased investment in further education to €414 million in 2008, an increase of over 400% since 1997;

the access to learning opportunities in further education provided to some 145,000 learners in 2008, an increase of 95,000 over 1997;

the introduction of the Back to Education Initiative which, with its emphasis on part-time provision, enables learners to combine a return to education and training with family, work and other responsibilities; and

supporting the ongoing efforts of the Industrial Development Agencies and the City and County Enterprise Boards both in promoting new investment and job creation and in sustaining the maximum number of jobs in their existing clients during these difficult times."

I wish to share my time with the Minister for Social and Family Affairs, Deputy Hanafin.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Is that agreed? Agreed.

Mary Coughlan (Donegal South West, Fianna Fail)
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There is no doubting the seriousness of the current economic environment. Regrettably, significant unemployment is again an issue at the top of our national agenda. The numbers on the live register represent the human reality of these difficult economic times. Families who never contemplated having to base their weekly budgets around jobseekers' benefits and other social supports are now having to do so. It is a dramatic change for these families, and indeed for our wider expectations as a people, in a short period of time. It is a challenge this Government is working hard to overcome and we are conscious that people across the country want to know that we are taking the action necessary to ensure Ireland is best positioned when this period of economic turmoil comes to an end. I assure them that we are taking such action and that my priority as Tánaiste and Minister for Enterprise, Trade and Employment is simply jobs, jobs, jobs. My objectives are protecting those jobs currently in our economy, creating and attracting new jobs, putting in place a clear vision of where the jobs of the future are to come from and equipping people with the skills necessary for those jobs.

The current global economic storm has been exacerbated by credit constraints and prolonged by a decline in consumer and investor confidence. The Government is responding to these issues in a context of worsening public finances. The decline of confidence and credit has very significantly reduced property and construction activity. As a result, the jobs and incomes to individuals and the State associated with that activity have diminished. The downturn is now impacting on all sectors of the wider economy and presenting us with difficult decisions and consequences. It is unlikely that we will see a return to growth in the short term. This makes the series of measures we have introduced to increase training places, enhance job search services and speed up jobseeker payments all the more important. I will speak about each of these measures presently but it is important that the Opposition and everyone else is crystal clear as to the challenging environment in which all of this is being done.

Short-term action will help those losing their jobs but we must also stabilise the public finances. We must meet our commitment to a 9.5% GDP deficit limit. This will ensure the stabilisation and sustainability of the public finances, which is an essential prerequisite for economic renewal. We must protect our international reputation for borrowing and attracting foreign direct investment while continuing to support those hurt by the downturn and investing in the research, training and infrastructure that will drive economic and employment growth as Ireland recovers. The supplementary budget which we will present to this House in April will address these issues.

To respond to the present economic situation and in particular the increasing numbers of people on the live register, I am working closely with my colleagues, the Minister for Education and Science, Deputy Batt O'Keeffe, and the Minister for Social and Family Affairs, Deputy Hanafin, to ensure that appropriate responses are developed and put in place to meet the upskilling needs of those who are losing their jobs or facing uncertain employment prospects. In particular, we are identifying opportunities for increased collaboration between FÁS, the institutes of technology and the VECs with a view to ensuring that we secure the optimal return from the expenditure of scarce resources.

While my colleague, the Minister for Social and Family Affairs, will outline some of the measures she is taking to deal with the increasing numbers of unemployed, I wish to speak about the measures I am taking in my own Department to support those who find themselves without work. We are responding to the rising live register numbers through a variety of measures. FÁS's employment services, together with local employment services, have been working to provide greater job search assistance to the increasing numbers of unemployed. The implementation of these measures will nearly double the monthly capacity of job search services from 6,500 to 12,250 persons per month.

Furthermore, FÁS and the Department of Social and Family Affairs are currently operating a pilot initiative in two locations, Letterkenny and Clondalkin.

Róisín Shortall (Dublin North West, Labour)
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It is time to go beyond pilot projects.

Mary Coughlan (Donegal South West, Fianna Fail)
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This initiative involves the immediate referral of clients aged 18 and 19 to FÁS employment services. The pilot is due to conclude in late April after which its effectiveness will be reviewed. Deputy Shortall has raised this matter. Having met with the participants, I consider it a very worthwhile initiative.

In a difficult employment climate such as that which we are currently facing the importance of training and education to maximising reskilling and upskilling opportunities is vital for the entire workforce. The impact of such training opportunities on those who are out of work and seeking to rejoin the labour market cannot be overstated. The training and education programmes funded by the Government through my Department and the Department of Education and Science are designed to increase the skills and competencies of participants and thereby increase their employability and hopefully enable them to secure alternative employment at the earliest opportunity. In addition to the economic benefits associated with participating in upskilling and reskilling programmes, they provide a valuable social service by ensuring that individuals remain active and continue to learn so as to be ready to take up employment when job growth returns. In light of the obvious importance of training, I have already announced that an additional 51,000 training places are to be delivered by FÁS this year. These places are specifically tailored for individuals who are recently unemployed and who wish to add to their existing skills in order to improve their prospects of securing employment.

This new initiative enhances FÁS's existing portfolio of traditional course offerings and will be delivered through three core training initiatives, namely, ten-week courses, night courses, and on-line courses. The night courses offer a flexible alternative to those whose circumstances may not allow them to attend during the day and the on-line courses provide a good option for those who need a fast and flexible intervention and who prefer a self-directed e-learning and blended learning environment. My announcement last month means that FÁS is providing a total of 78,000 training places under this initiative. This is almost a three fold increase in the provision of these types of training places. It is an important development in terms of responding to the number of people now on the live register. However, the Government is fully aware this is only one measure. We are continuing to actively explore other initiatives to further increase the number of training and education places available to people seeking employment.

FÁS and other State agencies have formed an early response team to deal with significant redundancies. The nature of the response is to conduct interviews on a voluntary basis with those who wish to explore employment and retraining options. Such interviews would normally be conducted on site with the co-operation of the employer and would take place in advance of any planned lay-offs. Training interventions and other supports would then be provided as required. FÁS services in this area include one-to-one occupational guidance and priority access to appropriate vocational training; job club referral options; individual assessment and guidance; group and individual training options; upskilling for specific targeted alternative employment; in-house dedicated employment services facilities; and organisation of jobs fairs in conjunction with other employers and agencies in the area.

Particular support is also being provided to redundant construction workers. Since the beginning of last year we have witnessed a dramatic reduction in construction related activity. This has resulted in a significant fall in the numbers employed in the sector since 2007. The Government is committed to providing assistance to these individuals to increase their skill levels and in some cases develop new skill sets which can take advantage of the opportunities in new emerging growth areas within the construction sector. These include the installation of energy efficient and renewable technologies and compliance and regulatory work. Since November 2008, FÁS training centres have provided training to approximately 880 trainees in these emerging areas.

In addition to the usual supports that it provides to redundant workers, FÁS has established a training fund to provide a timely response to identified training needs for low skilled and redundant craft workers from the construction sector. The agency is also assisting Irish construction workers who wish to continue working in the industry to obtain employment abroad in other EU member states. Discussions are ongoing with agencies in Canada and Australia to support the recruitment of crafts persons from Ireland. In the delivery of these services, FÁS liaises with the other relevant agencies including Enterprise Ireland, IDA Ireland, the city and county enterprise boards and the Department of Social and Family Affairs.

The significant reduction in the number of people employed in the construction sector has led to a rising number of apprentices being made redundant. The Government is determined to provide support and assistance to these individuals so they are given every opportunity to complete their apprenticeships. To date a number of innovative measures have been initiated to assist them, including allowing redundant apprentices to progress to their next off-the-job phase of training without completing the relevant on-the-job phase. It is expected during 2009 that in excess of 1,200 redundant apprentices will receive off-the-job training. At present, 539 redundant apprentices are attending an off-the-job phase. The employer based redundant apprentice rotation scheme aims to provide redundant apprentices with the on-the-job experience they require to complete their apprenticeships. This scheme will provide assistance for up to 500 redundant apprentices.

ESB Networks has agreed a programme with FÁS to provide 400 redundant electrical apprentices with on the job training opportunities at phases 5 and 7 over an 18 month period. Léargas has provided part funding under the EU's Leonardo da Vinci programme to support the placement of 26 redundant apprentices with overseas employers to complete their phase 7 on the job training, and FÁS has submitted a further proposal to Léargas for up to 60 additional redundant apprentices to complete their on the job training in Finland and Germany. As a result of these measures, almost 2,200 apprentices who have been made redundant should be able to progress their apprenticeships. The Department will, of course, continue to consider further initiatives to assist redundant apprentices in completing their apprenticeships.

The Government is also committed to assisting the most vulnerable in our society, including those who for various reasons have over time become distanced from the labour market and are seeking to re-enter it. The community employment scheme is an active labour market programme which is currently helping 22,469 long-term unemployed people to re-enter the active workforce by breaking their experience of unemployment through a normal work routine. The programme assists them to enhance and develop both their technical and personal skills which can be then used in the workplace. The programme is sponsored by groups wishing to benefit the local community, voluntary organisations and public bodies involved in not-for-profit activities.

FÁS continues to develop the content of the CE programme. The new approach involves the introduction of an individual learner planning process which focuses on meeting the learning needs of participants. The individual learner plan provides for the planning, organising and recording of the work experience, training and development that each participant receives while working on CE.

Job initiative is a programme that provides full-time employment for 1,431 people who are 35 years of age or over who have been unemployed for five years or more and in receipt of social welfare payments over that period. The main purpose of the programme is to assist long-term unemployed people to prepare for work opportunities. The programme achieves this by providing participants with work experience, training and development opportunities. The programme is sponsored by groups wishing to benefit the local community, namely voluntary organisations, public bodies and those involved in not-for-profit activities.

This Government will continue to support the positive role of FÁS employment schemes in meeting the needs of long-term unemployed persons while at the same time providing essential services to communities. I am keeping the operation of the schemes under constant review in the context of the current difficult unemployment situation.

This Government has always believed in the benefits of investing significantly in our education system. We increased investment in higher education to €2,000 million in 2008, an increase of 135% since 1997 that supports participation by more than 170,000 learners. We have also increased our investment in the further education sector to €414 million last year, an increase of more than 400% since 1997. As a result of this Government's substantial investment, 145,000 learners had access to learning opportunities last year, an increase of 95,000 over the equivalent 1997 figures.

A key priority for the education system is to continue to respond to the needs of learners and of course the wider needs of society and the economy. Since 1997, we have introduced a variety of measures across all sectors of the education sector to increase the learning opportunities and enhance the access all individuals have to education in Ireland.

In the further education sector, we introduced the back to education initiative, which provides flexible part-time options across further education and is aimed at adults with less than upper second level education, including unemployed adults. It aims to give adults who wish to return to education an opportunity to combine their return to learning with family, work and other responsibilities. To facilitate access and participation, programmes are offered on a part-time basis or at weekends. Under this initiative any adult with less than an upper second level education is entitled to free tuition. This year 9,000 individuals will benefit from participating in this initiative.

Róisín Shortall (Dublin North West, Labour)
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Only 5,000 participated.

Mary Coughlan (Donegal South West, Fianna Fail)
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In addition, the vocational training opportunities scheme is a second chance education initiative designed specifically for the unemployed. Unemployed persons who are at least 21 years of age and in receipt of specified social welfare payments for at least six months are eligible to participate. It aims to give participants' education and training opportunities, which will develop and prepare them to go into paid employment or on to further education opportunities leading to paid employment.

As a result of the downturn in the economy, it is anticipated that the intake to higher education institutions will be much higher in 2009 as other options for school leavers diminish. As jobs continue to be lost across the economy, it is critical that the capacity of the higher education sector to provide for fundamental upskilling of the workforce is enhanced and developed. There is no cap on places in higher education generally and this is in line with the Government's policy objectives of increasing participation in higher education from both a social policy and economic development perspective.

The institutes of technology are taking steps to utilise all available capacity to provide upskilling for those who have become unemployed or are facing uncertain employment prospects, including the provision of preparatory courses for those who may be a long time out of the formal education system. Colleges will expand provision from September 2009 in course areas where employment opportunities are likely to develop and will provide enhanced opportunities for progression to other higher education programmes.

The introduction of the multi-annual strategic innovation fund for higher education has been a major catalyst in introducing more flexible and innovative approaches to the delivery of programmes responsive to the needs of industry and to an increasingly diverse group of learners. Under the fund, the institutes are also examining the scope for more flexible delivery of provision, including the possibility of alternate start dates and accelerated programmes in order to utilise capacity that may develop due to attrition.

Despite the current global turbulence, the Government remains determined to further develop the country's economy and create the right conditions for fostering growth in the business sector. In recent years, economic growth in Ireland has been driven by domestic demand and not by international competitiveness. As domestic demand has weakened we must look to exports for a sustained economic recovery. Indigenous exporters are and will continue to be critical in the achievement of future economic stability and job maintenance and growth in the Irish market.

Our principal focus, therefore, is on supporting the growth of a cohort of Irish companies with the ambition, leadership and innovation necessary to achieve global scale. To support industry and the economy as a whole, a targeted focus must be placed on sustaining and creating exports. In directing this focus, the development agency, Enterprise Ireland, has a dedicated task force which is actively working to respond to the changed economic environment. This will ensure the supports offered to companies are the most relevant and effective in addressing the current realities facing businesses across the manufacturing and internationally traded sectors throughout Ireland. It is critical that we continue to invest in the companies upon which our economic recovery depends.

To that end, I have already put in place an enterprise stabilisation fund, which was announced by the Taoiseach just over a week ago, to allow meaningful additional assistance to be provided to basically sound internationally traded companies that would otherwise struggle to survive the global downturn. The fund will operate in conjunction with the banks and will supply direct financial support to eligible internationally trading enterprises which are undertaking development expenditure to reduce costs and gain sales in recession hit overseas markets. The fund will complement the banks' commitment to SMEs under the recapitalisation scheme and should facilitate much of the restructuring that is needed for viable companies selling on the home market.

County enterprise boards also have an excellent track record, working with local entrepreneurs to give focus and to develop sustainable, growth-orientated local enterprises which can deliver high quality job creation without displacement or dead weight. They provide valuable assistance and I am confident they will continue to be to the fore in developing and supporting our economy through these challenging times.

While assisting Irish companies to expand their international footing and their domestic performances, we also attract new investment to these shores through the Industrial Development Agency. We have attracted many of the leading companies, mainly in information communications technology, life sciences and globally traded business and financial services. It is because of our targeted approach, our flexibility, our human capital and our support within the taxation system that we heard the announcement today of 500 jobs in Leixlip, with an opportunity to increase that by a further 500.

Good ideas have been put forward by Members of the Opposition and, with the scarce resources available, we are examining how to keep people in employment. We are looking at ways to support employers to keep those who may lose their jobs at work two or three days a week. The Minister for Social and Family Affairs, the Minister for Education and Science and I are looking at targeted and focused ways to be innovative. I have taken on board the discussions that took place on the European model, which has something similar to support people in employment. At the Competitiveness Council last week, I raised with Commissioner Verheugen the absolute necessity to set aside some of our EU legislative frameworks in order to be more flexible and innovative in supporting people in employment, as well as creating new opportunities for them.

I have taken into account the Deputies's contributions. All new initiatives and ideas are certainly worth examining.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Tá áthas orm an deis seo a ghlacadh chun labhairt ar an ábhar seo.

I appreciate the fact that the Labour Party has tabled this motion recognising the difficulties people are experiencing. This time last year none of us would have imagined the current scale of unemployment, nor the terrible atrocities that have happened in Northern Ireland. It has happened so quickly that the whole environment has changed for our country. I wish to assure the House, however, that we fully appreciate the difficulties for people who are losing their jobs. People who have worked all their lives never anticipated that they would ever have to sign on. That in itself is a stress for them before they ever get to a social welfare office. Naturally, we are trying to ensure not only that the right financial supports are available, but also that people can get them as quickly as possible.

Due to the numbers signing on we have had to ensure that our staff are working to full capacity. I have to say that they certainly are working extremely hard to deal with the increased number of claims, and productivity increased by 74% between the last quarter of 2007 and the final quarter of 2008. The numbers on the live register are undoubtedly very stark. There would of course be others who have been making claims also. When one sees an increase of 165,000 — a rise of 87% — between February 2008 and last month it puts particular pressure on those affected as well as on their families. In addition, the increased numbers put pressure on staff in social welfare offices and the difficulties of the financial situation generally have placed pressure on the Exchequer.

Social welfare staff have made their best efforts to try to meet all those needs. Some 246 additional staff have been allocated since last May to help minimise delays in claim processing. They are not extra staff coming into the public service, but come from other Departments. Some 190 of them have been allocated to local social welfare offices around the country. However, many local offices have reached, or are close to reaching, capacity in terms of the number of staff that can be accommodated. While the Office of Public Works has been tasked with finding new accommodation for local offices in some areas, we are also setting up a number of central decision units around the country to ease the burden on those offices that are under pressure. Four such units are being set up initially — with ten staff each — while it is expected that more will be established in the coming months. These are just processing the applications and making decisions, so they will release the burden from some local offices back into these central units.

Róisín Shortall (Dublin North West, Labour)
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What about the branch offices?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Some 16 social welfare inspectors are also being assigned to various locations throughout the country to undertake means testing and other work associated with processing claims for the jobseeker's allowance. This is important at the initial stage of making claims — particularly the jobseeker's allowance where means testing is done as quickly as possible — but also as a control measure to combat fraud. Those inspectors are urgently needed, given the current numbers.

We recognise that providing additional staff is only one element in dealing with the increased volume of claims and therefore a number of measures have been taken, to date, to improve claim processing procedures. These include the introduction of a streamlined process for people who had a claim in the previous two years; the testing of an improved procedure for claimants moving from jobseeker's benefit to jobseeker's allowance, which we plan to extend to all offices later this month; on-line availability of application forms for the jobseeker schemes; and the use of an appointment system for taking claims in some offices which we intend to roll out to other areas over the coming months.

By introducing these initiatives, I am trying to ensure that the process is as easy as it possibly can be. I know that processing times in some areas are still too long but we are taking the necessary steps to reduce them. While every effort is made to ensure that applications are processed as quickly as possible, Deputies will be aware that anyone who is under financial pressure while awaiting a decision on a claim for a jobseeker's payment can apply for supplementary welfare allowance, which is also subject to a means test and other qualifying conditions.

Apart from providing income supports, the Department of Social and Family Affairs also has an important role to play in helping people back to work. The Tánaiste has outlined some of the measures that are being taken in this regard. My Department works closely with FÁS in providing opportunities for people on social welfare to access the range of training and employment services offered by that organisation.

The national employment action plan is the main welfare to work measure. Under this plan, all persons between the ages of 18 and 65 years who are approaching three months on the live register are identified by the Department of Social and Family Affairs and referred to FÁS for interview with a view to assisting them to enter or re-enter the labour market. This process is a key element in addressing the progression needs of those on the live register. It provides a stimulus to job search and affords an opportunity to explore, under professional guidance, the full range of employment and training services offered by FÁS. Based on the latest information available, a total of 60,260 people were referred to FÁS in the period January to December 2008. Of these, more than 33,900 had left the live register by the end of January 2009.

In addition to the services offered by FÁS, the number of facilitators in the Department of Social and Family Affairs has also been increased from 40 to 60, while a further ten are due to be appointed. Facilitators work closely at local level with those on the live register to determine their needs and arrange appropriate training and developmental programmes for them.

A key aspect of the enhanced facilitation service is co-operation between the Department and other agencies, such as FÁS, the VECs and the HSE. The vision is of a single, transparent system with a primary focus on the customer and a route map starting at the first point of engagement with the Department. The facilitator programme is designed as a targeted approach, involving active case management and the development of an individualised progression plan.

A number of specific initiatives have been developed with a focus on young people who are signing on the live register. In summer 2008, the Department conducted a targeted programme to encourage young people between 18 and 25 years of age who were signing on the live register for more than six months, to gain additional skills and qualifications under the back-to-education scheme. Facilitators arranged meetings with clients under the age of 25 years in an attempt to raise awareness of the education opportunities and supports available, and to encourage them to take up courses in the autumn that would be appropriate to their needs.

A further initiative being developed at present involves the immediate referral of 18 and 19 year olds who sign on the live register to FÁS to undertake specific targeted short courses, rather than awarding welfare payments. This is currently being tested in two locations. I am anxious to ensure that initiative is spread throughout the rest of the country as well.

In addition to the general activation programmes, the Department of Social and Family Affairs also has two key schemes aimed at long-term unemployed persons: the back-to-education allowance and the back-to-work allowance. The back-to-education allowance is designed to encourage people on certain social welfare payments to improve their skills and qualifications and, consequently, their prospects of returning to the active work force. It enables qualified people who have been getting a social welfare payment to continue to receive a payment while pursuing an approved full-time education course.

In general, to qualify for participation an applicant must be at least 21 years of age and must also have been in receipt of a social welfare payment immediately prior to commencing an approved course of study for at least six months for a second-level course and 12 months for a third-level course. The 12-month requirement is reduced to nine months for people participating in the national employment action plan. People who are awarded statutory redundancy may access the scheme immediately, provided their entitlement to a relevant social welfare payment is established prior to commencing an approved course of study.

The objective in setting up the scheme was to help unemployed social welfare recipients, by way of education and training, to improve their prospects of acquiring sustainable employment. A waiting period is considered essential to confer entitlement to income support for an indefinite period and is considered necessary in the context of targeting scarce resources at those who need it most. I am currently examining this particular scheme to see if it is targeting such people. I am also anxious to ensure that people who plan to go to college anyway should not try to organise their affairs to qualify under this scheme. It should be noted that the number of participants increased by 46%, between January 2008 and January 2009, to more than 11,500 people. Expenditure this year will be €88 million, but I will continue to keep it under review.

The back-to-work scheme was introduced to assist long-term unemployed people, lone parents and sickness-related welfare recipients to return to active employment. There are two strands to the scheme: the back-to-work allowance for persons who take up employment; and the back-to-work enterprise allowance for those who become self-employed. There has not been a great take-up of the back-to-work allowance because we have not had that number of people unemployed for such a long time. There is scope under the back-to-work enterprise allowance to facilitate more people, to which I am open. I heard Deputy Shortall's views on this and I look forward to hearing others'. There are 17,613 on the two strands and the amount of moneys allocated this year is €80 million. We are determined not only to ensure financial support is available, but also to help them improve their future job prospects through education and training.

As the Tánaiste and Minister for Enterprise, Trade and Employment said, the Cabinet's economic sub-committee is working closely with the Departments of Social and Family Affairs, Education and Science and Enterprise, Trade and Employment on this. We recognise the severe difficulties faced by people. The pace of change has caused problems in social welfare offices but I know the staff are doing the best they can to facilitate people.

Leo Varadkar (Dublin West, Fine Gael)
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I wish to share time with Deputies Clune, McHugh, Enright and English.

John Cregan (Limerick West, Fianna Fail)
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Is that agreed? Agreed.

Leo Varadkar (Dublin West, Fine Gael)
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I welcome this motion and commend Deputies Shortall and Penrose for putting it before the House.

I do not need to advise the House of the extent of the unemployment catastrophe facing us. This month, the standardised unemployment rate is 10.4%. Even though there is an international financial crisis, unemployment in Ireland is the fourth highest in the EU. Few countries outside the EU have such high unemployment levels. Ireland has gone from a country of low unemployment to one of high unemployment. Despite other countries facing recession, not one has leapt from the bottom of the unemployment league table to near the top. Ireland is ahead of France, Germany, Italy and numerous countries we would have perceived to have failed economic policies and systems.

It will certainly get much worse with up to half a million people out of work by Christmas. I fear there may be many more next year. When we arrive at that stage, it will not be possible for the Government to finance itself, pay the social welfare bill or public service salaries, leaving us in a position the State has not faced since the late 1920s or early 1930s.

The Government will bring forward a mini-budget, or potentially a maxi one, in the next several months which will mainly focus on cuts in spending and increases in taxation. Both measures are necessary. It is important tax increases come with the broadening of the tax base and do not fall for the easy options of higher income tax and more taxes on business. There needs to be more to the Government's policy than just a catalogue of spending cuts and tax increases. What we need, and what has been missing, is an economic plan to support business and sustain jobs.

Some of the proposals put forward in the Labour Party's motion are good in that regard. I agree with the proposal for an earn-and-learn scheme for those on three-day weeks participating in training on the other days and the increase in community employment places. While evidence shows the latter is not particularly useful in getting people back into employment, it does perform an important social role. At a time of rising unemployment, and the potential return to long-term unemployment, it is important to get people back into an occupation in some way.

The proposals for career breaks and sabbaticals in the public service would be useful not just in creating jobs, but achieving the cost savings Ministers are seeking. There might be many public servants, particularly those approaching retirement, prepared to go part-time or take a career break and they should be facilitated to do so.

The Government's approach to training has been disappointing. While 51,000 additional FÁS training places have been created, they are not for real. They involve one-week and two-week courses with a few night courses and mainly on-line ones. A whole new approach to training is required. The €1 billion FÁS budget should be liberated into a system of individual training accounts or vouchers that would allow people to chose the training they want. That will be particularly relevant to the new middle-class unemployed, those with degrees and professions, for whom there is no real training option with FÁS. If they were given €4,000 they could attend an institute of technology or university to study for a Master's degree or get the training they want. The Teachers Union of Ireland recently put forward a good document, which I endorse, on how much of FÁS's budget could be directed towards vocational education committees and institutes of technology.

There is also a case for having a public works scheme for those who have lost their jobs in the construction industry. Moneys from the national development plan could be used to create public works schemes for housing and schools, particularly in disadvantaged areas, involving unemployed construction workers and apprentices. This would be done much cheaper than at the market rate. Obviously, however, it would have to be done on a limited scale as it could distort the market.

The national development plan needs to be refocused towards smaller labour intensive projects, such as small roads, schools and primary care centre schemes, coming in under €20 million in costs. The funding cannot be directed at large projects which will go to large companies from other countries. We all understand the capital budget will be cut in the forthcoming budget but there are other ways. Moneys from the National Pensions Reserve Fund could be invested on a commercial basis in, say, a toll road scheme from which it would receive its return. People may hate to pay tolls but if they knew they were going into their pension fund they might feel a bit better.

I am becoming very concerned at the number of people under 25 years on the dole. In the Dublin West constituency, it stands at 2,000 when it was almost nil two years ago. Many of these people are falling into long-term unemployment. For this age group, there should be a flexicurity system whereby they are required to participate in training or employment to receive their benefits. We cannot allow a situation whereby those who went into the construction industry at 19 years of age and earned €80,000 a year are writing themselves off, claiming there is no job that can even deliver half that wage for them.

Business needs to be supported, measures for which have been missing from the Government's plans to date. Energy prices are too high. While I accept they have been reduced recently by 10%, there is no reason that Ireland's energy prices should still be higher than the European average. The energy regulatory regime in place needs to be gotten rid of and energy prices reduced to the European average in two years with a detailed schedule on how this will be achieved. If the ESB were to go bankrupt as a result, so what? Energy prices need to come down and the ESB needs to cut its costs if needs be.

We need to use the opportunity of this recession to develop a new system of local authority funding and remove rates from businesses. We must stop expecting businesses to carry the entire costs of local government. Certainty is needed with the minimum wage. I suggest it is frozen for two years so that employers and employees have certainty about costs and incomes. The existing joint labour committee rules, employment regulation orders and registered employment agreements need to be reviewed, as well as the national pay agreement which has gone out the window anyway.

The reduction of red tape is also important. Inserting clauses in leasing contracts which do not allow rents to be reviewed downwards must be made illegal as the practice hits businesses badly. There must be a proper public procurement system that gives small and medium-sized enterprises an opportunity to win government contracts which they are currently finding difficult. The work permit system needs to be reviewed as to whether they should be given for certain jobs when there are people in the country who can take them up. Employers' PRSI contributions must be suspended for those companies taking on new employees.

I understand an announcement is imminent that Skillnets will be cut back by a further 25% this year. That is a big mistake. Skillnets provides training through 100 different companies across the country, doing a good job with enterprise-focused and led high-quality training. There are no empires in operation within Skillnets. It is not like FÁS; it works very well. It is a mistake to reduce the Skillnets budget from €26 million to €21 million — a decrease of 25%.

There is no real evidence of the Government's willingness to reduce the budget of FÁS, which spends €140 million on administration and corporate affairs and a further €140 million on services to business. The latter is, in the main, handed over to the social partners for them to spend as they please. The Government should be bringing about its cuts in respect of these budget lines within FÁS and not in respect of CE schemes, apprenticeships or Skillnets. As already stated, Skillnets works very well and, if anything, its budget should be increased and it should be asked to assume responsibility for training some of those who are newly unemployed.

I welcome the motion. The situation we face is serious but not hopeless. The Government's policies, as outlined in the amendment, are hugely disappointing. For the Government, it is a question of managing rather than reducing dole queues. We want to reduce those queues and an economic plan — as opposed to a mere fiscal plan — will be required in that regard in order to support business and get people back to work.

Deirdre Clune (Cork South Central, Fine Gael)
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I commend the Labour Party on tabling the motion, which contains several interesting and innovative proposals for the support of those who find themselves in the awful situation of being unemployed. Many of the proposals to which I refer focus on retraining, upskilling and allowing people to avail of the opportunity of moving into different types of employment.

Emphasis should also be placed on protecting existing jobs. We are in a recession and we should consider the path we wish to take in the future. We must lay the foundations now in order that we might attract investment and develop new opportunities when we begin to emerge from this difficult period.

I agree with the proposal regarding the need to refocus the national development plan, particularly in the context of placing an emphasis on labour-intensive projects and activities that will keep small, local economies in existence. Earlier this evening I attended a briefing provided by the Construction Industry Federation at which representatives outlined the dire nature of the situation faced by those within that industry. In any downturn, the construction industry is always the first to suffer and provides the initial indication that things are about to take a nose-dive. When matters improve, however, this industry is also the first to benefit.

Everyone is aware that the level of unemployment among those in the construction sector is high. However, there are ways of dealing with this. For example, why is it not possible to accelerate the school building programme, which would give rise to labour-intensive activity, and create employment locally? Planning applications could be fast-tracked and standardised designs could be adopted in order to get things moving. In the long term, accelerating the programme would be cheaper than having people claiming jobseeker's benefit or allowance. In addition, the construction of community health centres could be carried out on a PPP basis and this would also contribute to local economies.

The position with regard to the VAT rate should be examined. The high level of VAT is giving rise to difficulties in areas situated adjacent to the Border. Retailers and traders in these areas are feeling the effects of the VAT differential.

There are many, including Members, representatives of the construction industry and others, who state that small businesses cannot obtain funding. For the want of a small amount of money which the banks could provide, these businesses are making people redundant or going to the wall. The banks have been provided with a great deal of support by taxpayers and they should, in turn, facilitate small businesses that provide employment. What is happening at present does not make sense. This is a matter on which the Government should focus.

I am sure the House will, at a later date, have an opportunity to discuss the report published yesterday by the National Competitiveness Council on education. Investment in education has always been the cornerstone of our economy. However, the report to which I refer indicates that there has been a serious deterioration in the number of students taking science and technology subjects, engineering and computing. The HEA has indicated that the numbers relating to mathematics, science and computing dropped by 13% last year. This will prove to be a serious disadvantage for Ireland. We must consider putting in place a strategy in respect of the provision of information and communications technology in schools, we must examine why there is such a disincentive for students with regard to taking up mathematics and we must ensure that students are attracted to disciplines relating to mathematics, science, engineering and technology. As the Government outlined in Building Ireland's Smart Economy, the future of this country lies in promoting development in the areas to which I refer. If we do not have suitably educated and trained personnel available and if we do not address the skills shortage that exists, we will be at a disadvantage.

This motion relates to an extremely important matter. I am sure it will continue to dominate discussions in this House for the foreseeable future.

Joe McHugh (Donegal North East, Fine Gael)
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I commend the Labour Party on tabling the motion. As a Deputy who represents a Border constituency, I am aware that many businesses in the region are experiencing severe economic difficulties, particularly in the context of the recent increase in VAT. In light of the possible increases in excise duties on petrol and diesel, it appears that, for many people, the more things change the more they stay the same. Business people in Border counties are of the view that they are suffering as a result of their geographical position. This matter must be taken into consideration in the forthcoming budget.

As the Minister for Social and Family Affairs, who is present, is aware, there is a need to deal with the psychological stress and fatigue caused by the recession. The psychological effects of the recession are having a massive and traumatic impact on families whose children are attending secondary school or college. These psychological effects are also impacting on people's health and are giving rise to an increase in crime.

An interdepartmental report in respect of the north west was launched by the then Minister, Deputy Martin, a number of years ago. This report contains a number of good suggestions and the Tánaiste and Minister for Enterprise and Employment should examine it. What is required is a synergy aimed at facilitating incisive educational courses for those to whom Deputy Varadkar referred, namely, those who are under 25 years of age, who possess university degrees and who want to avail of retraining opportunities. We must consider the proposals in the report to which I refer in respect of entrepreneurship, resilience in personal development, innovation and creativity and capability training.

At present, departmental service providers are working in isolation. The HSE, FÁS, the VECs and various education providers offer great education delivery and other programmes. However, we lack the fusion required to create the type of synergy to which I refer and to encourage participation on the part of the private sector. In my constituency, Marine Harvest, which is a local indigenous company operating in the area of aquaculture, possesses the type of resilience, experience and expertise into which we are not tapping. This company is willing to expand its operations. The people who train and work with the company are not being retained in Ireland. Instead, they export their skills to countries such as Chile. Opportunities exist in the north west and there is a coastal community there in which people are pursuing their right to work, be it in the fishing industry or elsewhere, in order to put food on their tables. We live on an island that has massive potential which is not being harnessed. Ordinary men and women are seeking delivery in terms of breaking down bureaucracy and getting rid of red tape. They have ideas for marine coastal development through marine tourism, marine alternative indigenous industry and aquaculture. We can create jobs along the coast. For every job at sea we can create seven jobs down the line. Allow us, for starters, to create ten jobs at sea and we will deliver 70 jobs for the Government. The Government is looking for ideas from this side of the House. If it creates ten jobs at sea, we will deliver 70 more. I leave the Minister with that suggestion.