Phil Prendergast (Labour)

I thank Senator Hannigan for sharing time with me and welcome the Minister of State. I wish to add to Senator Hannigan's comments on the position in his own area of County Meath by outlining the situation as it affects the people of south Tipperary, in particular Carrick-on-Suir and Tipperary town.

Since the bubble hit the fan after the collapse of Lehman Brothers in September 2008, the Government has been consumed by the white heat of activity focused on bailing out the bankers and the builders who contributed greatly to the meltdown. However, it seems to have been too busy dreaming up a scheme that will lead to the taxpayer stumping up more than €13 billion to buy the banks to implement measures aimed at saving the real economy. When the Labour Party first proposed nationalising the banks, they could have been bought for around €3 billion but now we are on course to nationalisation by stealth at a cost of up to five times the original price. One can imagine what could have been achieved if some of the €10 billion the Government is overpaying for the banks was spent on training and job creation measures. This money could have had a massive impact not only on our competitiveness but also on the lives of the people. It would have gone a long way towards addressing the problems of leaking water pipes, an inadequate electricity grid and broadband network and shabby public buildings and schools, as well as constructing community facilities such as youth cafés, centres for the elderly and homes for the homeless. Much of it would have gone into the pockets of the largest cohort of unemployed, namely, construction workers.

The male unemployment rate is around 40% among 15 to 19 year olds and 30% among 20 to 24 year olds. Many are construction workers who could be earning money, supporting the economy and building a better and more competitive Ireland but, as studies consistently show, there is instead a real danger that some of these young men will turn to crime. Even further social damage will be caused and financial cost incurred by the Government's decision to draw the wagons around the golden circle. If the Government could go into overdrive in tackling the fiscal crisis, why was there not a parallel effort made to tackle the jobs crisis? We have seen an bord snip nua and the Commission on Taxation but where is the equivalent to tackle the jobs crisis?

Since the start of the crisis, the Labour Party has been consistent in pointing to the need for a blend of policies if we are to achieve recovery. Central to these policies are ways to get people off the dole and keep them in employment and education. We were not alone when we said this and we are not alone now. Unlike the Government, we can honestly claim support for our policies. Since the turn of the year, US President, Barack Obama, and Nobel prize winning economists, Paul Krugman and Joe Stiglitz, have expressed the belief that jobs and investment are the key to recovery. However, the Government believes jobs can be created with virtually no investment.

My colleague, Deputy Seán Sherlock, and I have raised the example of the FÁS work placement scheme on previous occasions. This is a six month work experience scheme for 2,000 unemployed people. Participants must be unemployed for six months or more and, although they can retain their welfare entitlements, they receive no other remuneration. The Minister of State at the Department of Enterprise, Trade and Employment with responsibility for labour affairs, Deputy Billy Kelleher, described the scheme as an innovative approach to providing support and training for job seekers. It is worth examining what is on offer in order to determine how much support the scheme, in fact, offers. Among the placements recently advertised on the FÁS website was one in a hospital in Tallaght which offered a position as a medical typist. The skills required included experience as a medical typist. A café in County Westmeath advertised a position in which the successful applicant would learn how to make and serve lattés and cappuccinos, while a shop in Cavan kindly offered experience in stacking and cleaning shelves. I wonder who benefits at the County Meath firm which seeks a sewing machinist with previous experience in clothes manufacturing or the pre-school in north Dublin which is seeking someone with pre-school teaching qualifications? What about the County Louth facility which wants a caretaker who must take on key holding and security duties, as well as take charge of the disposal of internal and external waste and maintenance of toilets?

The Government's recovery plan comprises bank bailouts and bog bailouts. This is a valuable programme in principle but it is being used as a free labour scheme. In practice, it is another FÁS farce. Rather than reduce unemployment, it could actually increase it where cynical employers seek to pocket the wages they should be paying by hiring somebody for free. There is every likelihood that people who are casually employed will actually lose their jobs to those participating in the work placement scheme. Of course, there is little incentive to take up these positions because they offer little or no useful experience, even though they cost the worker money in terms of getting to work and other arrangements for household duties and child care. However, someone who refuses an offer of a place on the scheme will be liable to a cut in his or her jobseeker's payment under the terms of the Social Welfare Act 2009. This flawed scheme is a microcosm of the Government's approach to job creation. It is a no-cost programme which suffers from a lack of planning, monitoring and common sense. In short, when it comes to jobs, the Government does not appear to be interested.