Dáil debates

Thursday, 7 June 2012

8:00 pm

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

Question 10: To ask the Minister for Jobs; Enterprise and Innovation his views on the success of the jobs initiative; if it and other measures have had an impact on the number of long term unemployed and the number of youth unemployed; and if he will make a statement on the matter. [27542/12]

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
Link to this: Individually | In context

The Government's jobs initiative of May 2011 was aimed at restoring confidence in the economy, providing opportunities for re-skilling those who had lost jobs and assisting people in getting back to work. Key measures in the jobs initiative included halving the rate of employer's PRSI on earnings up to €356 per week, a reduction in the lower rate of VAT on certain goods and services, targeted capital spending on labour-intensive projects, and the introduction of the national internship scheme, JobBridge. Additional education and training places were also provided for those seeking to upskill.

The impact of these measures is being seen across a range of sectors, but particularly in the tourism and hospitality sectors where the latest quarterly national household survey, published today, shows a year-on-year increase of 8,700 in the numbers employed in the accommodation and food service sectors. Almost 7,500 interns have commenced placements under the JobBridge programme since it was launched last July. Feedback from the Department of Social Protection indicates that 966 of the 2,575 people who have already completed JobBridge have gone directly into employment with the host organisation or elsewhere. More than 3,500 people recently graduated from the first round of Springboard programmes, which were put in place in 2011, and the Minister for Education and Skills, Deputy Ruairí Quinn, recently announced a further roll-out of the Springboard initiative with an additional 6,000 places in 2012.

The Government has built on the jobs initiative this year with its action plan for jobs and the Pathways to Work strategy, adding a significant range of actions to promote employment and assist those seeking work. Pathways to Work places a particular focus on the long-term unemployed, while the new €20 million labour market education and training fund will include specific provision for those under 25 years of age. FÁS has issued a call for expressions of interest from training and education providers in regard to this fund.

In the three years prior to the Government taking office, more than 300,000 jobs were lost. This scale of job loss cannot be reversed overnight, but we are systematically delivering on the commitments we made in the action plan for jobs and Pathways to Work. While employment may fluctuate from quarter to quarter in this transition phase of our economic recovery, the significant job announcements since January - which include BSkyB, Mylan, Apple, Eli Lilly, PayPal and others - point to the return of a level of confidence in the Irish economy that will translate into an increase in the number of people in employment as the jobs come on stream.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
Link to this: Individually | In context

We have had a number of jobs initiatives at this stage. The last budget was referred to as a jobs budget, after which we had the action plan for jobs. In the wake of all of this, however, the quarterly national household survey figures released this morning show that unemployment has crept up to 14.8% and, more significantly, that the number of long-term unemployed - those out of work for more than a year - has increased by 10% in the past 12 months and now constitutes 60% of the total number of unemployed. The data indicate, moreover, that the numbers unemployed for more than two years have also increased and now make up some 40% of the total unemployment figure. Given that more than 200 people per day are leaving the country, it is clear that emigration is the only thing preventing an even higher rate of joblessness.

The Minister of State is correct that the number of people in training schemes has increased. In fact, I understand an additional 12,000 to 14,000 training places have been filled since the start of the year. The corollary of that, however, is that there are up to 14,000 more people without jobs.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
Link to this: Individually | In context

Does the Deputy have a question?

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
Link to this: Individually | In context

In view of these horrendous statistics and given that employment fell by 18,100 in the past year and now stands at its lowest since 2003, does the Minister of State agree the various jobs initiatives have not been a success?

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

Traditional manufacturing is an area in urgent need of assistance, with the increase in VAT in the last budget, in particular, creating immense difficulty for certain enterprises. Yesterday a provisional liquidator was appointed to Flair International in Bailieborough, County Cavan, a company which manufactures quality bath and shower screens. This development endangers the jobs of the 52 people currently employed there, following the unfortunate laying off of 26 workers last January. I appeal to the Minister of State and the Minister, Deputy Bruton, with whom I was in contact previously regarding this company, to ensure that the Department and Enterprise Ireland provide all possible support to it. The employment it provides is of great importance to the town. Enterprise Ireland has, at my request, done some work with the company in the past. Will the Minister of State undertake to ensure that Enterprise Ireland is as proactive as possible, with the support of the Department, in seeking to protect the jobs at this enterprise?

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context

I agree with the Minister of State that it is impossible to reverse the jobs crisis overnight. However, the reality is that some 450 nights have passed since this Government took office. Every time I ask the Minister and his colleagues questions about the action plan for jobs, their answers are phrased largely in the future tense.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
Link to this: Individually | In context

The Deputy must put a question to the Minister of State.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context

We are told that various matters are being reviewed. Is it not the case, including in the matter of procurement, that what is needed, instead of round-table discussions, analyses, meetings and the provision of some training, is action? The Go-2-Tender programme has been in place for some years now, yet we remain seven times out of kilter with the European average on public tendering. Does the Minister of State agree it is past time to take this matter by the horns?

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
Link to this: Individually | In context

On Deputy Brendan Smith's question, the Minister, Deputy Bruton, has informed me there is no difficulty with an engagement between the Department and the company to which the Deputy referred.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

I am particularly concerned that Enterprise Ireland should be involved.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
Link to this: Individually | In context

Yes. A dialogue can be entered into in that respect.

On the question of whether the jobs initiatives introduced by the Government are proving a success, the central point is that this is a ship which will take a long time to turn around. We acknowledge the figures and are bold and honest enough not to bury our heads in the sand in that regard. We are seeking to implement a set of policy prerogatives in the form of labour market activation measures and education-related measures. The latter include JobBridge, Pathways to Work and Springboard, while the former includes the extension of the PRSI incentive scheme in a way that incentivises employers to engage employees and interns. We are also concerned with identifying skills shortages and seeking to address those through the education sphere. All of that will take time.

On the procurement issue, the action plan for jobs includes a range of deliverables for the end of 2012, to which I respectfully ask Deputy Peadar Tóibín to have regard. If he does not accept what I am saying, he should speak with representatives of the State agencies tasked with these actions, who will demonstrate the actions they are undertaking at the behest of the Government. There is a reporting mechanism attached to the deliverables which sees the Cabinet sub-committee on economic recovery and jobs reporting directly to the Taoiseach. It is not at all accurate to say our activities in this regard are based merely on aspiration. With respect to the Deputy, my response pointed to the clear action points we are driving in regard to procurement.