Leo Varadkar (Dublin West, Fine Gael)
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Question 33: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of jobs she predicts will be lost in 2010 and a breakdown by sector; and if she will make a statement on the matter. [44911/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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The current global economic crisis is adversely impacting on the unemployment levels across almost all advanced economies. According to the OECD, since December 2007 there has been an increase in unemployment of 16 million people, bringing the present OECD total to almost 46 million people unemployed.

It is expected there will be further increases in unemployment in the OECD in 2010, as employment growth tends to lag behind economic activity. It is, therefore, not expected that significant employment growth will occur next year in Ireland. The Department of Finance pre-budget outlook forecasts the unemployment rate in 2010 to average about 13.75%.

However, despite these projections it is worth noting that considerable churn is still evident in the Irish labour market. Over the past 12 months, more than 150,500 people have left the live register to take up employment. The Department of Finance projections for next year do not include a sectoral breakdown of employment.

The Government is taking specific measures to ensure job retention and job creation are maximised. Enterprise Ireland has prepared a new recovery strategy to assist its clients. This strategy refocuses Enterprise Ireland's efforts in strengthening and sustaining companies of strategic importance through a range of initiatives focused on the needs of their client base.

The enterprise stabilisation fund was launched earlier this year. It supplies direct financial support to internationally trading enterprises that are investing in cost reduction or other measures to gain sales in overseas markets. Client companies of Enterprise Ireland, IDA Ireland, Údarás na Gaeltachta and Shannon Development across all sectors in manufacturing and internationally traded services are eligible to apply. Enterprise Ireland has approved approximately €56 million of which €50 million will be paid out this year. To date, 140 companies have been approved to date to receive funding.

The employment subsidy scheme has been introduced to support the maintenance of vulnerable jobs and prevent people from being made redundant in the challenging national and global economic environment. The first call of the scheme will provide subsidies directly for 7,773 jobs. In addition, firms have committed to retain a further 36,260 jobs. This means a total of just over 44,000 jobs will be retained as a result of the first call of the scheme, at a cost of €70 million over 2009 and 2010.

I have decided to have a second broader call for applications with extended eligibility criteria open to both exporting and non-exporting firms. It will be open to many companies not eligible to apply for the first and will have a budget of €65 million.

As part of a sustained, co-ordinated and integrated approach to job search, training, education and work placement supports, I have doubled the provision of training and work experience places managed by FÁS to more than 130,000. The referral capacity of FÁS employment services from the Department of Social and Family Affairs has been increased to 147,000 persons in 2009.

Leo Varadkar (Dublin West, Fine Gael)
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I thank the Tánaiste and Minister for Enterprise, Trade and Employment for her reply. She referred to the OECD unemployment projections and everyone accepts it will increase across the world. What was left out of her reply was the fact that of all the OECD countries, Ireland has the second highest standardised unemployment rate. Only Spain has a higher rate. That is a real change and shows how much worse matters are in Ireland than in other countries.

The Tánaiste and Minister for Enterprise, Trade and Employment projected the standardised unemployment rate will reach 13.75% next year. What will this mean in raw numbers? How many additional net persons will be on the register?

Does she believe the scale of her response is adequate? I accept there is a stabilisation fund with €50 million and the temporary employment subsidy with €20 million and another €30 million to come and more schemes. However, the Government was able to find €7 billion to overpay the banks. Could the Government find at least €1 billion to support employment?

Will it introduce schemes such as those proposed by Fine Gael like reducing employers' PRSI contributions, maintaining the capital budget to build more schools and invest in infrastructure to create jobs rather than pay people to have longer holidays? Will it create internships for graduates and short-time working like they have in Germany?

Mary Coughlan (Donegal South West, Fianna Fail)
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The projected unemployment figure is based on averages as one cannot say what the definite figure will be. Obviously, we would all like it to be lower than 13.75%. It is important to note that the live register does not exclusively pertain to unemployment claimants as people on part-time assistance and other benefits are also included in it. In this and October's live register, we have seen quite a reduction in the number of people who found themselves unemployed.

There are initiatives with the stabilisation fund and the employment subsidy scheme. We tend to forget there are large investments in the client companies of Enterprise Ireland, IDA Ireland, Údarás na Gaeltachta and Shannon Development. There are also important initiatives in companies developing skills and increases in grants for research and development and the launch of innovation vouchers. I am glad indigenous companies have moved more towards a research and development focus.

There were also 70 high potential start-ups, HPSUs, this year which shows massive investment by Enterprise Ireland in new opportunities. An hour ago, the Government launched its green technology document, based on the work of Joe Harford and the high level action group on the green economy. It is estimated an additional 80,000 jobs can be created in this sector. There is both sustainability and stabilisation of jobs with investment for the future. While we never have enough money, the targets are focussed.

Leo Varadkar (Dublin West, Fine Gael)
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The biggest problem is the scale of the Government's response. I accept some action has been taken but unemployment is the largest problem facing the country. It is the greatest social and economic crisis before it. Unemployment benefit accounts for half the deficit and yet the additional resources the Government has put into tackling it amount to somewhere between €100 million and €150 million. It requires a much greater response.

Will the Tánaiste agree that to bring down unemployment requires the investment of €1 billion, one seventh of what her colleague overpaid the banks? Will she agree with Fine Gael's suggestions to keep capital spending going, cut employers' PRSI, increase community employment schemes and deliver internships for graduates? It is those kinds of measures that will make a difference. The scale of the Tánaiste's response so far, however, has not been adequate. Largely it has been one of corporate welfare rather than supporting the people who really need it.

Mary Coughlan (Donegal South West, Fianna Fail)
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I do not agree because we have done both. Yesterday, changes were made to the job placement programme recently discussed at the Joint Committee on Enterprise, Trade and Employment, which will see more internships and work-experience placements. That was the result of work between me and the Minister for Social and Family Affairs. There has been further largescale investment in training programmes with specific emphasis on getting people back into third level to take up conversion courses. The Government is examining other initiatives that will support people, employment and sustaining people in employment. In the context of spending for next year, we have evaluated the quality assurance of many of our courses and have considered what new interactions may be necessary. The Deputy will appreciate that I cannot pre-empt what the Minister for Finance will say. We are currently assessing specific initiatives, including short term working, some of which are operating on a pilot basis.