Marc MacSharry (Fianna Fail)

I join others in welcoming the Minister of State. I will be supporting the Government amendment. I wish to use this opportunity to make a few suggestions of my own and to thank the Labour Party for using its Private Members' time to have a discussion on this important issue. I apologise for using a script but I wish to cover some ground and I am conscious I may not have sufficient time to deal with it.

In October 2009, Ireland's unemployment rate was 12.8% with a eurozone average of 9.8% and Ireland's youth unemployment rate for under 25s was at 28%, which is obviously unacceptable. As we contemplate this issue there is no question that the destination for all of us is the same and what divides us, perhaps, are the vehicles or use of the vehicles to get us through the journey.

This rate is one of the highest youth unemployment rates in Europe. One in three men under 25 are now unemployed. Many of these were affected by the downturn in the construction industry. Many people who believed their future was in the construction sector now find they do not have the necessary skills to secure employment. A total of 18,400 Irish nationals emigrated last year, the majority being young people. This does not take into account in terms of net immigration the number of Irish people who returned but nevertheless, an unacceptable number of Irish people emigrated last year, which is more consistent with the trends of the 1980s than recent years. Unemployment harms young people in their psycho-social development. It reduces their opportunities to find a stable place in society and there are connections between unemployment and anti-social behaviour, substance abuse and crime.

In order to battle the jobs crisis, the Government must focus on reskilling these people so they may find a meaningful, fulfilling and self-sustaining role in society. We should not only reskill those who are now unemployed but be cognisant of those who are coming through the education process as they contemplate their futures.

With a number of others, in the last 18 months I was involved in preparing a paper on the country's entrepreneurship education strategy which was discussed in this House. If we are to develop a true entrepreneurial culture that encourages people to view entrepreneurship as a positive career option, we must start with education and young people. Among the recommendations we presented to the Government was the introduction of a field research project as an element of business studies subjects; the use of multiple and emotional intelligence theory as part of social, personal and health education; the launch of a young entrepreneur of the year competition, known as the Lemass award — that part has already happened, which is very encouraging; the establishment of a school awards scheme; and the development of an on-line entrepreneurship education resource for teachers. As we had an opportunity to discuss a variety of other proposals in this area previously, I do not want to dwell further on this aspect of the issue.

There is a growing body of international evidence to demonstrate that students who receive entrepreneurship education as part of their schooling show improved academic performance, school attendance and educational attainment; have increased problem solving and decision making abilities; improved interpersonal relationships, teamwork, money management and public speaking skills; are more likely to find employment; and have enhanced social and psychological development. Students achieve these benefits because the primary goal of entrepreneurship education is not to ensure everybody starts his or her own business but to encourage young people to think positively, look for opportunities, make things happen, have the self-confidence to achieve their goals and use their talents to build a better society, economically and socially. Entrepreneurship education should be an integral part of the country's ambition achieve a smart economy.

Education must remain to the fore in any effort to curb youth unemployment. It should also drive development and growth. Senator Callely has mentioned a wide variety of the schemes that are being undertaken. I suggest more work should be done to ensure it is compulsory to finish second level education. It is unacceptable that 12.3% of Ireland's youth leave school after the junior certificate examination. The Senator mentioned a number of schemes such as the FÁS work placement scheme, the back to work enterprise scheme and the higher education and labour market activation scheme, which the Government should be commended for initiating.

We need to target the internships in which many under the age of 25 years find themselves. Many internships are being offered by firms which cannot afford to pay full-time staff. They offer graduates a chance to learn to work in an environment appropriate to their college qualifications. Subsistence is offered by many firms to cover travel and lunch costs. If a graduate takes up such an offer, however, he or she may lose his or her dole payment. As we know, the under-25 rate has been increased to €150. Internships offer between €50 and €80 a week. Highly qualified graduates with degrees or master's degrees are earning less than they would on the dole. Dole payments should be maintained for those engaged in internships, as they are under the IBEC GradLink programme.

While the initiatives I have mentioned are very welcome, we need to reassess our labour market policy to meet the future needs of the economy. Redirection of labour, reskilling and training in high skill areas will create the basis of the smart economy. The Department of Enterprise, Trade and Employment has responsibility for labour market policy, while the Department of Social and Family Affairs has responsibility for unemployment. Unemployment is seen by the Department of Social and Family Affairs as a welfare problem, rather than a labour market problem. This is an issue.

The division of responsibility for labour market policy between the two Departments has led to a variety of anomalies such as an absence of a focus on low skilled workers; a possible imbalance between the minimum wage and jobseeker's allowance; and co-ordination difficulties, including computer incompatibility between officials with responsibility for the jobseeker's scheme and officials in FÁS. It has been calculated that between 2000 and 2010 jobseeker's pay increased by 106%, with just a 55% increase in the minimum wage. In 2009 a person working 39 hours on the minimum wage would have earned €337.35 per week. If that person is an adult with an adult dependant, he or she is entitled to a dole payment of up to €326.10 in 2010. Even though we have one of the highest minimum wages in the world, a person with an adult dependant receives just 3% more for working a 39-hour week on the minimum wage than he or she would get on the dole. I am not saying we should decrease dole payments, nor am I arguing for an increase in the minimum wage, but we need to focus on this issue. A substantial debate needs to take place.

The labour market policy issues I have highlighted could be addressed by establishing a new Department of Labour. In addition to discharging the labour market responsibilities of the Department of Enterprise, Trade and Employment, the new Department would also take responsibility for the unemployment and jobseeker's schemes from the Department of Social and Family Affairs. The transfer of the planning, research and development unit of FÁS, with its six economists, to the new Department would largely solve this problem without additional costs. A similar step was taken by the Blair Government in the United Kingdom when it established the Department of Work and Pensions which I believe has worked very well. I would like us to move in that direction.

I welcome the proposed establishment of the international content services centre. I also welcome the innovation task force which will examine ways of increasing innovation, accelerate growth through research and development and strive to make Ireland attractive to knowledge-intensive direct investment. As a digital innovation hub, the international content services centre will liaise with IDA Ireland, Enterprise Ireland and other agencies. It has the potential to create thousands of jobs. Digital literacy will play a pivotal role in getting people back to work. Ireland has one of the youngest populations in Europe. We are at an advantage because the level of digital literacy here is high. The youth of Ireland have the most to gain from the digital economy. The Government has taken many initiatives that will lead us on that path. I would like some of the suggestions I have made — provocative as they may be — to be considered by the Minister.

I have worked with the Minister of State, Deputy Calleary, in business and in the chamber of commerce movement for many years. In my eight years as a Member of the Oireachtas no other Minister or Minister of State has been better suited or better equipped to deal with the challenges of today, or has better expertise to do so. I wish him well in his endeavours.