John Paul Phelan (Fine Gael)

This is the first time I have seen the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Billy Kelleher, in this House and I welcome him and congratulate him on his appointment. The Minister of State's presentation was very good and I agree with almost all of it, though there are some areas where change is required and this gives us an opportunity to discuss those issues.

I agree with much of what the Minister of State said, particularly on the subject of globalisation. Many left-wing groups in this country and around the world have problems with globalisation but I feel it has presented more opportunities than problems for Ireland in recent years and that we have largely succeeded in adapting globalisation to suit our requirements. We must ensure we continue to do this in the coming years.

The Minister of State's early remarks focussed on social partnership and I was going to address this matter at the end of my comments but I will instead begin with that subject. There is no doubt that social partnership has served the country well since the late 1980s and has been a major contributing factor to the economic transformation that has taken place here in the past 15 to 20 years. However, I have been in this House for six years and many senators have raised questions regarding the future role of social partnership. There is a real lack of democratic accountability in how the social partnership model that has evolved in this country continues to operate.

Initially social partnership was an arrangement between the social partners and the Government whereby wage moderation was exchanged for a lowering in taxation and this worked well. However, a variety of public policy areas have come into the ambit of social partnership, particularly in the most recent social partnership deal. There has been very little debate in the Houses of the Oireachtas regarding the policy formation that was discussed by the Government and the social partners in the most recent deal. For the sake of democracy there should be a more integral role for the Houses of the Oireachtas in the next round of social partnership. In the lead up to the election Fine Gael's finance spokesperson, Deputy Richard Bruton, proposed that before social partnership talks take place there should be discussion of the matter in both Houses of the Oireachtas. The guidelines for social partnership would thus be laid down by the Houses of the Oireachtas and subsequent to agreement among the partners there would be a debate and vote in the Houses of the Oireachtas.

There is a need for a more hands-on approach from public representatives in this regard and, while social partnership has served us well, it is questionable whether unelected employers and officials of unions have a greater role in the development of public policy than elected Members of both Houses of the Oireachtas, whether in Government or Opposition. This deficit in the current social partnership system must be addressed before we enter the next round of social partnership, which is due to start next year. There has been huge expansion in the areas discussed in social partnership agreements, including energy, telecoms, overseas aid, transport, arts and the environment. Many areas that were not part of the original social partnership discussions of the late 1980s have become part of discussions now and we should have a broader role for the Oireachtas in discussing these issues in the context of social partnership.

It is unfortunate that the Taoiseach and his Ministers are calling for wage restraint at a time when we have seen that they do not practise what they preach. This will lead to difficulties in the social partnership negotiations next year. There have been significant changes in the economy since 2000 but no corresponding changes in the social partnership process. Our competitiveness has deteriorated by more than 30% and our share of world trade has declined by a quarter. Some 30,000 jobs have been lost in manufacturing. The balance of payments, meanwhile, has moved from a position of surplus to a deficit of more than €7 billion. These are significant changes. To compensate, we must radically restructure the way social partnership has operated heretofore.

The Minister of State focussed much of his commentary on the need for upskilling of workers. There is no doubt that this is key to maintaining our competitiveness in a globalised economy. The Minister of State referred to some €7.7 billion of funding under the national development plan, some €2.7 billion of which will be targeted at upskilling those already in the workforce. This funding is inadequate. A recent report indicated that by 2030, the workforce will expand from its current level of 1.4 million to 2.4 million. A significant proportion of those already in the workforce will require upskilling if we are to be confident they will still be in employment in 2030. The investment included in the national development plan is a step in the right direction but must be increased significantly in the years ahead.

There is no doubt that the notion of the job for life to which we have been accustomed no longer exists. There is an essential need to upskill the workforce at every opportunity. The statistics relating to ongoing education and training are startling when compared with those for other EU member states, particularly our nearest neighbour. For example, some 14% of those aged 25 to 34 in this State are in further education or training while the corresponding figure in Britain is 35%. If we are serious about enhancing our competitiveness into the future, we must seek to meet if not exceed that target. There is little evidence, however, of the necessary urgency on the part of the Government to meet that aim.

In 2005, the unemployment rate for those aged 25 to 64 with a third level degree was just 1.8% compared with 7.4% for those whose highest educational attainment was at secondary level. It is clear, therefore, that education is a key element in developing our workforce and economy. It has been shown that one of the main contributory factors to our economic success in the last 20 years is the level of educational attainment of the workforce. We must aim for higher targets in coming years. Significant numbers of people still do not complete second level education, for instance, whereas most of the Scandinavian countries have attained completion rates of almost 100%. Numerous reports indicate that the group most likely to seek further education and training later in their careers comprises those who are well educated before they enter the workforce. We must ensure the maximum numbers complete secondary education and move on to third level before entering the workforce.

In the midst of our economic success in the last 15 years, there has been a pull factor for secondary school students to leave early. The boom in the construction industry, in particular, has meant significant numbers have left school before sitting the leaving certificate and have succeeded in securing employment. Such people have done well in recent years. However, the latest figures indicate a significant downturn in the economy, particularly in the construction sector. We will see more of such statistics in the coming months. Many of those who left education before completing second level or attaining a third level qualification will find themselves in choppy waters as activity in the construction sector declines. The number of house completions has fallen dramatically this year and may fall even further next year. Particular focus must be placed on those employed in this sector in recent years because there will be a significant decrease in employment there.

I agree with the Minister of State's comments on the positive impact of the contribution of foreign workers to the economy. However, many of those who come here from overseas are working in jobs unsuited to their level of educational attainment. People with third level degrees are generally not securing employment in skilled professions where their abilities might be better put to use into the future. The immigration that has taken place in recent years has been hugely positive. However, the Minister of State hit the nail on the head when he said we cannot rest on our laurels in regard to integration and simply hope everything will be rosy.

There must be a change of attitude in the education system. The policy heretofore of training people for employment must be adapted to one of training people in employment. There must be another transformation akin to those that took place with the introduction of free secondary education in the 1960s and free third level education in the 1990s. What is required is a rejuvenation of the education system to adapt to the immediate challenge that lies ahead.

During the recent general election campaign, after issues relating to health, education and the other perennial concerns, I found that the issue constituents raised most frequently was the availability of broadband. I am sure the experience of the Minister of State and other Senators was the same. If we are serious about upskilling the workforce and improving Ireland's competitiveness, we must ensure sufficient technological resources are available throughout the State. Most urban centres have access to high-speed broadband connections but the same is not true in many rural areas. If the Government is to tackle the challenges posed by an increasingly globalised economy, there must be significant investment, whether under the auspices of the national development plan, through the Department of Communications, Energy and Natural Resources or otherwise, in the roll-out of broadband infrastructure.