Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

Question 29: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if, in view of the further increase in the number of people on the live register, published on 4 March 2009, she will indicate the steps she is taking to stem the number of job losses; if she has plans to provide new training opportunities for those who have lost their jobs and to encourage the creation of new employment opportunities; and if she will make a statement on the matter. [13647/09]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

The total number of people on the live register for March 2009 is 371,300, a monthly increase of 16,863. It should be noted that the live register is not designed to measure unemployment and includes part-time, seasonal and casual workers entitled to unemployment benefit. Based on the live register figures, the CSO estimates the standardised unemployment rate in March to be 10.9%.

The rise in unemployment is particularly unwelcome and is a sign of the difficult times that all economies face. The Government is determined to do all in its power to tackle the issue of the rising number of people who have lost their jobs. My Department, and its agencies are working together to respond quickly and effectively to the rise in unemployment.

In terms of job search supports, FÁS employment services, together with local employment services, have put in place measures designed to provide increased capacity for the rise in referrals from the Department of Social and Family Affairs. The implementation of these measures has increased the monthly capacity of job search services from 6,500 to 12,250 persons per month. In order to assist individuals through the provision of education and training opportunities, I announced 51,000 new training places under the FÁS training initiatives strategy. These places are in addition to the 27,000 previously planned for 2009 under the bridging foundation training, specific skills training and traineeships programmes and are specifically tailored for individuals who wish to add to their existing skills level and improve their prospects of re-entering the labour market.

In response to the significant downturn in construction related activity since the beginning of 2008, FÁS, in addition to the usual supports that it provides to redundant workers, has established a training fund to enable them to provide a timely response to identified training and retraining needs for low-skilled and redundant craft workers from the construction sector. The Government is also determined to assist redundant apprentices complete their apprenticeships. We have initiated several measures, which will see over 2,700 redundant apprentices being able to progress their apprenticeships this year. The measures to assist redundant apprentices include the employer based rotation scheme, which will assist up to 500 individuals, the agreement between ESB networks and FÁS to provide training opportunities for up to 400 redundant electrical apprentices and the interim changes introduced by FÁS to enable 1,200 redundant apprentices progress to their next off-the-job phase without having completed the previous on-the-job phases.

The Government remains intent on achieving greater capacity to meet the ongoing challenges in the labour market. In this context we will continue to bring forward further measures to make training and education services available to a greater number of unemployed persons to ensure timely and comprehensive access to the full range of services provided by FÁS.

Additional information not given on the floor of the House

While activation measures will assist individuals in securing employment and enhancing their skills, the key to addressing our unemployment problem is the creation of more jobs. That is why the Government remains strongly focussed on supporting and promoting enterprise development to create new jobs. In this regard the enterprise development agencies of my Department, including IDA Ireland and Enterprise Ireland, are working to ensure that we continue to grow the economy and jobs even in the current more challenging climate.

Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

I thank the Minister for her reply. Is it not time to start afresh with new thinking? For example, can we not eliminate all the lead-in times for the determination of eligibility for the back to work allowance scheme, the back to work enterprise allowance scheme and the back to education scheme? We should get rid of the lead-in times or reduce them to three months. The Minister heard a man from Dundalk refer on "Primetime" last night to what I have spoken about for the past few months. The lead-in times and such measures should be eliminated. New thinking is required.

SR Technics is seeking €25 million for a management buyout. Nine hundred jobs multiplied by €20,000 per job amounts to €18 million. This does not take into account secondary benefits and the 60% the Department will have to contribute for redundancy payments. If these were taken into account along with the loss of spending power in which the loss of 900 jobs would result, the cost would amount to approximately €40 million. It therefore makes good economic sense to invest €25 million in this necessary industry. We need aviation and aeronautical engineering and technology and the 900 employees have the necessary skills. Why would an island nation do away an industry in which these people are needed? Let us start thinking outside the box. If we invested the €25 million we would have 900 people at work. The Minister should start thinking in this way.

Consider the issue of VAT on insulation materials. Some 40% of our housing stock was built prior to 1963 and virtually none of the houses in this category is insulated. While there is an insulation scheme worth €300 million, it is negligible. Windows and doors need to be included, not just insulation. VAT must be removed from insulation products.

If the Minister got a job tomorrow, she would be involved with the VAT regime as soon as she had a turnover of €37,500. A rate of 21.5% or 13.5% applies if one is supplying services. If one's turnover is over €70,000, the same provisions apply. The threshold of €37,000 should be increased to €60,000 or €70,000 while the €70,000 threshold should be increased to €140,000. Let us be innovative. The Exchequer is losing money at present and the addition of people to the unemployment list is costing the State a huge amount. I would say the Minister of State, Deputy McGuinness, agrees with me. I know he is examining county enterprise boards but he should do so quickly. We heard last night about micro-enterprises and these must be borne in mind. Some 750,000 are employed by 250,000 small and medium enterprises.

The Minister is working with Mr. Barry O'Leary, Mr. Frank Ryan and others, which is great, but she knows the difficulties that exist and that there is a lead-in time of a year and a half or two years. People are now willing to start up enterprises. The Minister, who is a rural person like myself and knows what I am talking about, realises such jobs comprise the structural fabric of rural Ireland. We need them and should start thinking outside the box.

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

On SR Technics, I hope we can get to the question and that I will be able to address the issues raised.

Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

The Minister will not address my question.

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

I hope to address the House on it.

On the insulation scheme, those of us who were local representatives will know there was no grant aid for insulation. This is why it now comprises a specific energy measure and why it is outside the remit of all other schemes.

With regard to the back to work enterprise allowance and the back to education scheme, the late Minister for Social and Family Affairs, Seamus Brennan — God rest him — introduced a change to the back to education scheme whereby those who were made redundant could enter the system automatically. That has been progressive and one will see a considerable number of new entrants to education. The Minister for Social and Family Affairs stated in the Chamber last night that she is evaluating the schemes on the basis referred to by the Deputy, namely, activation measures in respect of which there has been keen interest by people who have been made redundant.

We are in the middle of a budgetary framework and are dealing with our public finances. We must therefore evaluate how we can do this in the best way.

Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

Is there good news for the people to whom I refer?

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

Yes, the Deputy is correct to talk about new, innovative schemes. Within my Department, the Minister of State, Deputy Kelleher, and I have been working very closely to reorientate the emphasis of our investments, particularly within FÁS, from people within work to people who are unemployed. It is a question of ensuring people still have contact with the labour force. It is a question of linking in with the views of the Minister of State, Deputy Haughey, on skills needs and of providing skills for the future as opposed to having them evolve in the normal way. This work is ongoing and progressing quickly.

I appreciate making progress can be frustrating, it is as frustrating for me as everyone else. With regard to county enterprise boards, the Minister of State will be making an announcement in the near future, in his reply to a parliamentary question, on how he believes we can support micro-enterprises. We are acutely aware that these new activation measures will have to encompass the realities that exist. The ratio between the two types of unemployed persons is nearly 50:50. Some 50% are in the highly skilled and motivated category while 50% are in the semi-skilled and low-skilled category. In normal circumstances during my 23 years in this House, we dealt with only one category. It is on this basis that new suites of initiatives are being worked through by all of us in the Departments of Education and Science, Social and Family Affairs and Enterprise, Trade and Employment.