Seanad debates

Wednesday, 26 October 2005

Lisbon National Reform Programme: Statements (Resumed).

 

4:00 pm

Photo of Noel TreacyNoel Treacy (Galway East, Fianna Fail)

I endorse the welcome of the House to the Australian delegation led by Senator Alan Ferguson. In particular, I acknowledge the presence of Senator Ursula Stephens, all the way from Wicklow. It is great to have the delegation present. We had a successful occasion yesterday and it is good to see the delegation members again.

I thank Senators for their contributions to an open, fair, frank and positive debate. There is consensus on the issue of Europe, the Lisbon Agenda and the national reform programme. While we may not see eye to eye on everything, there is broad consensus among us on the overall goals of the Lisbon Agenda and the particular priorities for Ireland. We are at an interesting time on the European journey. On the one hand, the results of the referenda in France and the Netherlands on the European constitution are evidence of the need to make the European Union more meaningful to its citizens — the man and woman on the street. On the other, the member states must work together to address the issue of globalisation. Failure to do so risks holding back or undermining economic and social progress in Europe.

I would like to respond to some of the issues raised by various speakers. Several Senators referred to the level of public debate on the Lisbon Agenda. Part of the reason for the relaunched agenda is that it was seen as too remote from the man or woman on the street. Under the new arrangements, it is for each member state to promote and pursue its own policies aimed at growth and employment and to connect with its citizens. Few people know much about EU policies and the Lisbon Agenda but everyone understands the importance of economic growth and jobs.

Reference was made to the issue of pensions. In recognition of the importance of the issue the national pensions reserve fund was established in 1999 by the current European Commissioner for the Internal Market, then Minister for Finance, Mr. McCreevy. Some 1% of GNP will be allocated to the fund each year until at least 2055. The fund was worth over €13 billion in June and it cannot be drawn from before 2025.

Many speakers referred to the construction sector and I agree with many of the points made. The indications are that housing demand will remain strong for a number of years. In addition, an extensive ten year programme of transport infrastructural investment will be launched shortly. Therefore, while it is right to be aware of the sensitivity of this sector, the indications are that we can manage it positively into the future.

Many speakers referred to broadband. The Government is playing its part by investing heavily in metropolitan area networks, popularly known as MANs, and subsidising community broadband initiatives. Some €165 million is being invested in these programmes by the Government. Industry, in particular the telecommunications sector, needs to play its part by improving availability of broadband for consumers at affordable rates. In fact, this message is being clearly delivered by the Taoiseach at a telecoms conference today.

Reference was made to education and educational disadvantage. Earlier this year the Department of Education and Science launched a five-year action plan to ensure equality of opportunity for all, which has been the hallmark of the education system. A macro decision taken in the 1930s concerned the broad education Act of the time which was followed by the decision in the 1960s under the late Donogh O'Malley to ensure equality of opportunity for all. We are still pushing to improve opportunities at different levels for different segments of the population. Senator Brian Hayes made an important point on opportunities for those in their 20s, 30s or older to be allowed into the system and for incentives to be put in place for lifelong learning. The social partners attached importance to the issue of equality of opportunity for all which is one of the ten special initiatives in Sustaining Progress. Many specific actions and initiatives are being pursued by the Department of Education and Science to tackle the important issues in this regard. The indicators show we are making good progress but we will continue to work for improvements. Historically and by political performance, we all have a strong commitment. It is the will of the nation that Governments and parliamentarians continue to support and invest in education at all levels.

Several speakers referred to innovation, science and technology. A major part of the jigsaw for Ireland concerns increasing overall investment in science and technology, in particular research and development, a point on which many speakers agreed. To be fair, this view is shared by the Government and, for this reason, the national reform programme goes into much detail on the measures now being taken which will be supplemented by further measures under a strategic implementation plan being worked on by the relevant Departments and agencies.

Reference was made to FÁS. Its funding has been targeted away from the unemployed towards training for those in the workforce. As recognised in the European Commission's continuing vocational survey, Irish companies devote considerable resources to employee training compared to many other member states. The report of the enterprise strategy group stressed the importance of further increasing workforce education and skill levels. A substantial increase in funding of some €36 million was provided for FÁS this year for the expansion of training programmes for people in employment, including basic workforce education. A significant part of this funding has been absorbed through existing FÁS measures. In addition, training has been provided through projects, managed by private organisations on a contract basis. This training will cover basic skills provision, occupation-specific upskilling, functional and general management training and entrepreneurial developments.

The World Economic Forum's growth competitiveness index showed Ireland moving from 30th position in 2004 to 26th in 2005. In its 2005 competitiveness report, the forum has developed a new measure of competitiveness across a more complex range of indicators, known as the global competitiveness index. On this index, Ireland is placed 21st overall. The top four in the index are the US, Finland, Denmark and Switzerland. A large factor in the determination of our position on these indices lies with our research and development performance, where it is acknowledged we need to do better. However, much work has been done to address this at many levels. In contrast, Ireland scores highly on the macro-economic indicators and the quality of public institutions.

The Government is committed to taking macro-decisions, as far as is possible, on an all-island basis. Specifically in the case of preparing national reform programmes, the British and Irish Governments agreed to make a common contribution on North-South co-operation. This important development in Annexe III of our programme commits the two Governments to work together to identify areas for co-operation, to develop joint approaches on particular issues, and to learn from their respective experiences. The Government is working closely on both a North-South and East-West basis.

The relaunched Lisbon Agenda strikes a good balance between mapping out the overall goals and, at the same time, letting each member state decide on the policies and measures appropriate for its own particular circumstances. This is welcome, provided that each member state selects and implements policies which foster and underpin economic growth, create more jobs and, ultimately, contribute to a richer quality of life for all citizens of Europe. The emphasis on jobs and growth is not, by any means, to the exclusion of sustainable development or social inclusion. These are two critical elements of overall policy not only at EU level but at national level. While they are specific programmes and fora in their own right, they also form an important backdrop to policy setting for both jobs and growth.

Over the next several years under the new Lisbon Agenda, certain key priorities will be pursued. The Government will continue to manage the public finances prudently and pay close attention to competitiveness generally across our economy. It will strive to provide an environment where enterprise can flourish and consumers are protected, building further on our recent progress in research and development, particularly by adopting and implementing a new strategy to underpin the Government's research and development action plan. We will work hard to support enterprises to become more innovative and knowledge based. A new national development plan will be put in place for the period from 2007 to 2013. Details of a new ten-year plan will be announced for transport which will be implemented and supplement the already excellent work done.

The Government will press ahead with its ambitious but necessary regulatory reform programme. The sustainable use of resources and the strengthening the synergies between environmental protection and growth will be encouraged. A range of measures will be provided to support people seeking to enter the labour market and those already in it who wish to improve their skill levels. This will be achieved while ensuring the labour market policy contributes to making our economy more knowledge based and innovation driven. Work permit arrangements will be codified, protections for migrant workers will be improved and a new green card system to contribute to overall labour supply in Ireland will be introduced. The Government will continue with a programme of specific measures to combat long-term unemployment.

Investment in our education system and the promotion of greater participation at all levels will continue. The Government will implement the national framework for the development of lifelong learning. A national reform programme will be implemented over the next three years to build on our strengths, improve on any remaining shortcomings and keep Ireland at the forefront of building a competitive Europe with strong economic growth and employment.

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