Brian Ó Domhnaill (Fianna Fail)

Go raibh maith agat. Ba mhaith liom glacadh leis an deis seo fáilte a chur roimh an Aire Stáit, an Teachta Haughey, go dtí an Teach inniu chun an national skills strategy a phlé. I welcome the Minister of State at the Department of Education and Science, Deputy Seán Haughey to the House. I welcome the opportunity to discuss the important issue of the national skills strategy. The Minister of State referred to the national skills strategy in September 2005. The Department of Enterprise, Trade and Employment, under the stewardship of Deputy Micheál Martin, requested the expert group on future skills needs to undertake research to underpin the development of a national skills strategy. This was to include the identification of the skills required for Ireland to develop until 2020 as a competitive, innovation-driven, knowledge-based, participative and inclusive economy. The terms of reference of the study included the identification of skills required for Ireland to make the transition to a competitive innovation-driven, knowledge-based economy by 2020; to provide projections of the skills profile of the labour force necessary to make the transition required to such an economy and to compare that profile to that which current projected output would yield; and to provide training and education objectives where gaps and deficiencies are evident between the desirable situation and the likely supply.

Skills and human capital development have played a significant role in productivity increases, economic growth and improvements in living standards in Ireland. Human capital development will continue to play a key role in economic growth into the future. Therefore sustained and enhanced investment in the educational and training infrastructure is essential to our economic and social development over the medium term.

The national skills strategy report advocates and comprehensively justifies the need for a more highly educated workforce by the year 2020. This will involve both increased participation of young people in second and third level education, as Senator Buttimer mentioned, and the up-skilling of half a million people into the labour force. Accordingly, as the Minister of State mentioned, the Government has made provision for an investment of €7.7 billion in training and skills development under the National Development Plan until 2013. This includes €2.8 billion to improve workplace adaptability. The budget will include providing training for people in employment, upskilling those affected or likely to be affected by industrial restructuring, enhancing the apprenticeship system and providing progression opportunities for school leavers. The Government has significantly increased funding to FÁS and Skillnets in recent years and has provided training opportunities for employed persons. Funding available to FÁS has increased more than fivefold between the years 2004 and 2007 and up to last year totalled €43 million. Funding provided to Skillnets has increased almost threefold to €23 million for the period up to 2007.

The expert group on future skills needs was asked to advise on a number of possible approaches to realising the objectives of the national skills strategy. We all need to be clearly informed by considerations of how best to make both employers and individuals more aware of the benefits of training and how significant resources and facilities can best be provided in an equitable way. The national skills strategy sets out clear, long-term objectives in developing Ireland's human capital through upskilling, training and educational opportunities up to the year 2020 in just 12 years' time. The strategy will be essential in ensuring Ireland's education and training systems are able to meet the future demands of industry in the medium to longer term.

One of the key recommendations of the national skills strategy is the need to raise the educational and skills levels of 500,000 people in employment. The upskilling of 500,000 individuals within the workforce leading to awards on the national framework of qualifications is a significant challenge which will require new and innovative delivery models. It will require convincing both employers and employees of the need and value of upskilling in a knowledge economy. The Government, employers and individuals will have to work together if we are to achieve this objective through significant additional investment in the labour force.

Approximately €7.7 billion will be used in the course of the national development plan to support training and skills development. This is indicative of the importance the Government attaches to having a skilled, productive, flexible and mobile workforce that will support national competitiveness and sustain economic and social prosperity into the future.

In 2006 the Department invested almost €480 million in training programmes operated by FÁS, Skillnets and other organisations to upskill the labour force. Out of this sum, €280 million was allocated to training programmes to prepare people to enter employment. A further €70 million was provided to train those in employment, a significant increase on allocations in recent years. In addition, €130 million, a significant increase on the previous year's provision, was made available to fund apprenticeships and training programmes in 2007.

The Minister of State at the Department of Education and Science, Deputy Seán Haughey, recently announced a new interdepartmental committee with responsibility to implement the national skills strategy. The first meeting of that committee takes place tomorrow and will be chaired by the Minister of State. It brings together all the stakeholders and is critical to the future development of skills. I wish the Minister of State well in his endeavours. The committee brings together for the first time all the key agencies responsible for adult learning and training and enables us to develop an integrated implementation plan for the upskilling of our workforce. This committee will have a strong and hands-on role. The national skills strategy sets an overall objective of upskilling 500,000 people by 2020. This is a significant undertaking and a very challenging task.

The balance of skills demanded for the workforce is changing and we must respond fully to these changes to facilitate the growth of a knowledge economy and ensure Ireland's global competitiveness well into the 21st century.