Willie Penrose (Longford-Westmeath, Labour)
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Question 100: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps she is taking to address the problem of youth unemployment in view of the fact that recent Central Statistic Office figures showed more than 84,000 persons under the age of 25 years on the live register; and if she will make a statement on the matter. [5050/10]

Dara Calleary (Mayo, Fianna Fail)
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The statistics for 31 December 2009 show that the numbers signing on the live register stood at 423,600 and that of these, 84,398, or 19.9%, were people under the age of 25.

The Government is committed to tackling unemployment, including youth unemployment. In successive budgets, we have allocated substantial additional resources to provide increased training and education and work experience places for the unemployed. My Department will provide approximately 147,000 training and work experience places this year, primarily through FÁS. This compares to the 66,000 places that were delivered in 2008 and the 130,000 places delivered last year. Around 30,000 trainees, or 36% of those who participated on the FÁS training programmes in 2009 came from the under 25 age group. FÁS training provision for those who are under 25 will remain a priority for 2010.

For early school leavers, the main specific provision continues to be training at community training centres and VECs under the Youthreach programme. There are currently 6,000 places available nationwide under the Youthreach umbrella. The programme is directed at unemployed young early school leavers aged 15 to 20. The programme provides basic skills and work experience, while facilitating early school leavers with opportunities to acquire certification and progress to further training or employment.

Another initiative is the work placement programme, which prepares the unemployed for future job opportunities. This programme is aimed at providing nine-month work experience placements to the unemployed. The programme consists of two streams each consisting of 1,000 places. The first stream is for graduates and the second stream is for all others, with 250 places ring-fenced for those under 35 years of age. The response to this programme has been disappointing, and we have asked FÁS to prioritise its promotion during 2010.

In addition to the range of training and work experience measures, the Government introduced certain initiatives in the recent budget to encourage people under 25 into education or training.

Additional information not provided on the floor of the House. The Government decided that unemployment benefit will be reduced to €100 per week for those aged under 23 and to €150 per week for those 23 and 24 years of age. However, should these individuals participate in full-time education, training and work experience programmes, then they will receive the full normal weekly allowance of €196. Along with this decision, an initiative was put in place to activate immediately 18 to 19 year olds, instead of waiting the usual three months for this automatic activation.

The budget also announced a new labour market activation fund, which will be for innovative proposals over and above mainstream training provision for the unemployed. This activation fund will focus training on the low skilled and those in structural unemployment, including those formerly employed in the construction, retail and manufacturing sectors. Priority will be given to those under 35 years of age and the long-term unemployed. It is expected that the fund will provide at least 3,500 training places this year. A call for proposals will issue shortly, and this is expected to lead to increased education and training provision this year and to assist young people currently unemployed.

Willie Penrose (Longford-Westmeath, Labour)
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It is 30 years since Pope John Paul said in Drogheda, "Young people of Ireland, I love you." I would like to parody that for this Government and say, "Young people of Ireland, we have no interest in you." That is the message going out to young people. No coherent or focused strategy has been put in place to tackle youth unemployment. The only thing the Minister for Finance did in the budget was reduce their social welfare payment. Let us not fool ourselves with answers that are designed to conceal rather than reveal.

Are we going to nurture and encourage those young Celtic cubs, who are educated, innovative and well skilled? They are crucial to recovery, so what are we going to do for them? They feel as if the Government has deserted them as a group. Is the Minister of State satisfied that we will lose a generation of people? Are we happy to go back to losing young, skilled, innovative and motivated people? The budget was a real "downer" to them, because it offered little or no hope.

In a recent study carried out by a youth organisation on young people, 60% of those surveyed indicated that they expected to be unemployed after completing their education. There has been a 150% explosion in youth unemployment in the past two and a half years. It is having a negative impact on young people. Where are we going? What about the work placement programme? There are 1,000 places, with 250 geared for people under 35 years. Does the Minister of State agree this is a pathetic response to a problem that will not go away? It will get more serious unless we tackle this in a coherent way, with a strategy to deal with youth unemployment.

Dara Calleary (Mayo, Fianna Fail)
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A range of other measures, apart from those mentioned by the Deputy, are included in the budget. This includes an activation fund of €20 million targeted at those under 35 years. We will call for proposals from the private sector for this in the coming weeks. This is specifically designed at that particular age group. We are committed to increasing the opportunities available in the work experience programme during 2010 if there is sufficient take-up. I point to the record take-up of third level courses and opportunities. This is not just an Irish problem. It affects the entire EU and was the focus of discussions at the Employment Council in Barcelona last weekend. It will continue to be the focus at EU level during the Spanish Presidency until the end of June.

Willie Penrose (Longford-Westmeath, Labour)
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Are we living in cloud cuckoo land? We are the only economy that has failed to put in place a stimulus package. Some €100 billion has been spent in the United States, with much of it allocated to education and creating employment opportunities for young people. Why do we think we are so special that we do not have to embark on that route? Why do we think we are different? When will we get rid of the barriers in respect of time limits and restrictions for the back to education allowance? This is nonsense. If young people want to get back into education, why not let them do so? How many additional places are there in the vocational training opportunities scheme, VTOS? The Minister of State is sincere and he is here as the mouthpiece of the Government, comprised of 15 Ministers gathered around the Cabinet table. We are fed up with being fobbed off. We need proper, focussed policies. Unless we design a stimulus package, we will come back in 12 months time with the problem accentuated and galloping away. I am extremely worried. Youth unemployment is a timebomb and we should get someone with a unified, co-ordinated strategy for this.

Dara Calleary (Mayo, Fianna Fail)
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The budget includes a €12 billion capital programme this year and €135 million will be spent by this Department in guaranteeing 80,000 jobs. I agree this is a problem and I would be delighted to engage with Deputy Penrose in respect of the specific responses of the Joint Committee on Enterprise, Trade and Employment to this issue.