Dáil debates

Thursday, 5 May 2011

4:00 pm

Photo of Sandra McLellanSandra McLellan (Cork East, Sinn Fein)
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Question 13: To ask the Minister for Enterprise; Trade and Innovation the active and practical support he will implement to prevent the redundancy rate of 1,200 people a week; and if he will make a statement on the matter. [10006/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The redundancy payments scheme, which is now operated by the Department of Social Protection, provides statutory redundancy entitlements to those who have lost their jobs. In addition, the Department of Social Protection and FÁS offer supports to redundant workers, including assistance in identifying new employment opportunities as well as retraining and up-skilling to improve their employment prospects.

I am advised that the level of redundancies in the economy in the first quarter of this year fell by 24% compared with the same period in 2010. During the period January to March 2011, 13,404 redundancy claims were received by the State compared with 17,598 claims over the same period in 2010. The Government's objective is that the number of redundancies will continue to decrease by putting in place the right policies to support job retention and encourage employment growth.

The forthcoming jobs initiative will outline a range of measures which will be taken across all Departments, including my own, to support job retention and creation by improving the business environment, increasing competitiveness, increasing our exports and restoring confidence in the economy internationally and domestically. The presentation of the jobs initiative will be the first step in the Government's plans to bring about economic recovery. Following the publication of the jobs initiative, I will continue to work with my colleagues in Government to develop medium and longer-term strategies to incentivise job creation further. In addition, my Department's enterprise agencies, Enterprise Ireland, IDA Ireland and the county and city enterprise boards, will continue to work with their clients on an ongoing basis to support job creation and retention.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Obviously the redundancy figures are shocking. Each of these lost jobs costs the State at least €20,000. It is very important that the State stands in solidarity with those individuals under threat and also the businesses which for business reasons feel forced to let those individuals go. These are often very highly skilled individuals with great experience and knowledge who could act as a tremendous resource for new business generation. Would the Minister consider a system whereby these individuals could act as mentors to start-up businesses either in a voluntary capacity or supported in some way through the enterprise development agencies?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Many years of bad policies have led to the scale of these figures, which will not be reversed overnight. We will do our level best to make jobs our priority and reverse those losses.

I am very keen to provide more mentoring support and support generally to management capability in a broader range of companies than now receive support. I would be keen to see ways developed that would result in more business-to-business support in the way the Deputy suggests. That would include people who have experience but have been displaced from companies. In the review I am undertaking, I would be keen to see whether we can do more in that area. Unfortunately, we will be seeking to do more with less. We will be looking to chambers of commerce, Plato groups and so on that have been successful in bringing a mix of talent to bear and helping companies to expand and develop. It will be trying to promote self-help groups rather than the State being involved in funding and selecting. I believe there is scope in this area, as the Deputy rightly says.