Bernard Allen (Cork North Central, Fine Gael)
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Question 60: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she has full confidence in her Department to meet the challenges of rising unemployment; if current or former members of the Government have expressed concerns to her over the Government's employment strategy; and if she will make a statement on the matter. [19881/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I have full confidence that the Government and my Department will continue to do everything in their power to meet and respond effectively to the challenge of rising unemployment. As a result of the global economic crisis, rising unemployment is a problem that is affecting all economies but it is a priority issue for both myself and my Department. As such I have already taken considerable measures to respond to this pressing challenge.

This includes doubling the capacity of the job search supports system provided by FÁS employment services and the partnership-based local employment service to 150,000 places per year for referrals under the national employment action plan. In addition, as a result of efficiencies and a redeployment of resources announced in the supplementary budget, my Department is now funding approximately 128,000 activation training and work experience places through FÁS. This is a substantial increase on the 66,000 places which were available at the end of last year. Part of this increase in provision has been achieved as FÁS has re-aligned its focus to provide a more flexible delivery of training interventions for individuals to include on-line, evening and blended learning training options in addition to the more traditional mix of course offerings. The aim of these additional training places is to offer increased flexibility and flexible learning options to enable the unemployed to further develop their skill sets and competencies to secure employment as soon as possible.

Key to these developments has been the co-ordinated and integrated approach to activation between my Department, the Department of Social and Family Affairs and the Department of Education and Science. This has allowed us to produce a range of measures to expand services to the unemployed and to promote a flexible learning environment tailored to the specific needs of the individual. As a result of this joint approach the Government announced in the supplementary budget that €128 million was being redeployed to the activation area, which is resulting in the creation of 23,435 training and education activation places across my Department, the Department of Social and Family Affairs and the Department of Education and Science.

Included in the supplementary budget are specific new innovative measures such as a work experience scheme, which will provide 2,000 six-month places to individuals who are unemployed, and it will include the placement of graduates. A new training programme of 277 places at a cost of €1 million is being introduced for sustaining vulnerable employment. Under this programme 277 workers who are on a three-day week and receiving social welfare payments for the days they are not working will receive two days training a week for a period of a year. We are also introducing a part-time third level scheme whereby 1,500 third level places will be provided to enable persons who are unemployed to pursue third level certificate or degree programmes at levels 6, 7, and 8 on a part-time basis.

Leo Varadkar (Dublin West, Fine Gael)
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I am glad to see the Minister is accompanied by a colleague. I was beginning to think she was somewhat isolated in the Government.

Mary Coughlan (Donegal South West, Fianna Fail)
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I am far from isolated in the Government.

Leo Varadkar (Dublin West, Fine Gael)
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That is not what I hear.

Mary Coughlan (Donegal South West, Fianna Fail)
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Tell me more.

Conor Lenihan (Dublin South West, Fianna Fail)
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George Lee is taking over from the Deputy.

Leo Varadkar (Dublin West, Fine Gael)
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This question is about the capacity of the Department to deal with the challenges before it, and it is interesting that the official who wrote the reply did not answer that question. This also relates to the comments made by the former Minister of State, Deputy John McGuinness, and the views expressed by other members of Fianna Fáil about the Department. Does the Minister honestly believe the Department has the capacity to understand fully the problems in the real economy and to take the necessary measures to act on them? It does not appear from what has been done to date that the Department or the Minister are able to respond adequately to the crisis confronting us.

Mary Coughlan (Donegal South West, Fianna Fail)
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I totally refute that comment. There is a fabulous team in the Department made up of myself, the Ministers of State, the Secretary General, assistant secretaries and all who support the Department, including Forfás, Enterprise Ireland, the IDA, county enterprise boards, the training agency, FÁS, and a host of other agencies which provide for the needs of business and those who are unemployed in this country. I firmly believe that, due to our electoral system, each Member of this House is acutely aware of what is happening in the world, regardless of their politics. It is wrong to claim that I and the team that is elected to represent the Department are not aware of the issues and challenges that exist. We have adequate resources although, of course, like any other Department we could spend more.

We have completely refocused the way the programmes are delivered by the Department. The focus is on supporting small and medium sized enterprises, SMEs. I introduced a stabilisation fund to focus on the stability and sustainability of business and where there are new opportunities in the markets. That is the reason two of my colleagues are abroad on my behalf, one in Bahrain and the other in Russia. They are examining the new opportunities there for our SMEs. We will continue to refocus on and evaluate the needs of the business sector and the unemployed. The target in FÁS is to refocus available resources towards the unemployed.

Willie Penrose (Longford-Westmeath, Labour)
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Everybody is acutely aware of unemployment. However, is it worthwhile for Members on this side of the House to make suggestions? We have been encouraged to make suggestions. They are constructive. There is no gain for us other than to try and get people off the live register. Is consideration being given to a redrawing of the national development plan to prioritise labour intensive projects? For example, €600 million could be front-loaded to the schools building programme, thus providing jobs for many of the workers who have been made redundant in the construction sector.

What is the Department doing to incentivise job creation? My party has suggested a two-year PRSI holiday for employers who recruit persons who have been unemployed for four to six months or more. Every job lost costs the Exchequer €20,000 in terms of welfare benefits and tax forgone, without taking account of the statutory redundancy due to any person who has been in his or her employment for more than two years. It makes good economic sense to front-load the national development plan with labour intensive projects that would provide employment for construction workers, engineers, architects and others who are losing their jobs on a daily basis. This is only one initiative in terms of incentivising job creation. Fine Gael, Sinn Féin and others have also put forward proposals to ensure people are taken off the dole and allowed to make a productive contribution to the economy.

Mary Coughlan (Donegal South West, Fianna Fail)
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I am pleased to consider proposals from all parties and have already taken on board some of the views expressed in the House in regard to activation measures. We are working on those proposals and we hope they will be successful, particularly in the case of the graduate placement programme. Some initial progress has already been achieved in regard to graduate placement in the public and private sectors. People who lose their jobs want to maintain and enhance their skills. An issue that has been raised repeatedly for many years is the difficulties people may encounter in obtaining employment because they have no experience. We hope these initiatives will afford experience and opportunities to people.

We are also working closely in the area of new technologies. This is parallel to the work being done by the Minister of State, Deputy Haughey, on our skills needs. A new chairman has been appointed to a working group to oversee an analysis of skills needs in various sectors and to evaluate how resources should be targeted. The reality is that we must do more for less and that a targeted response is required. That is what we must strive towards.

When I was Minister for Social and Family Affairs, Deputy Penrose, as his party's spokesman, made the case that persons who are made redundant should be entitled automatically to return to education. That entitlement is now in place, as well as an entitlement to participate in the back to work enterprise allowance scheme. The latest Global Entrepreneurship Monitor, GEM, report indicates that some 2,800 new entrepreneurships are established every month in the State. That is as it should be. It is through small and medium-sized enterprises that we can target export potential. We are spending €500 million this year on enterprise support. However, we must take a categoric decision as to where resources are targeted. The role of education will be vital. We must encourage young people entering first year in secondary schools to take up sciences, mathematics and languages. The jobs of the future will require those skills. We will continue to strive towards that.