John Carty (Fianna Fail)

I welcome the Minister of State. I know he will make some interesting figures available to Senators when he makes his contribution. I thank the Labour Party for tabling this timely motion on unemployment among young people. I will not rehearse the unemployment figures among young people.

The construction industry is on its uppers and I do not expect much to happen in the next three to four years. I hope I am wrong but we have built everything we want other than, perhaps, new roads and other infrastructure. Investments in that sector would help to create employment. There is still plenty of such work to be done in this country.

Apprenticeships are very important. I note that the Government has introduced a range of measures that will enable 4,000 redundant apprentices to progress their apprenticeships. I welcome the introduction of an employer-based rotation scheme at a cost of €4 million. I read in the past week that there will be a shortage of plumbers, electricians and other tradesmen. I hope apprentices who have been made redundant are encouraged to take part in the scheme.

I said previously in the House that I do not believe we should tamper with the minimum wage. I suggested to the Minister at the time that an apprentice rate could be introduced which would allow them to start off earning perhaps €5 per hour and after three years they could be brought up to the minimum wage or higher. They would then have completed their training and gained experience. One of the greatest difficulties for young people is that they do not have any experience when they apply for jobs. It is difficult for one to get experience without getting into a company. The Government will have to examine this area and provide encouragement to companies to take on young people so they can gain experience. One way to do that could be to offer a lower rate than the minimum wage until sufficient experience was gained. As it is, we are not getting anywhere in that jobs are advertised but young people cannot get them because they do not have the necessary experience.

The importance of education was alluded to by Senator Ross. Free education was introduced in the 1960s by the late Donogh O'Malley but we really began to reap the benefits of it in the 1980s. At that time we were seen as an upwardly mobile country of young people with good education standards who were able to adapt to the multinational companies coming in to set up high-tech industries. Boston Scientific proposed to lay off 175 people in Galway this week. We should bear in mind that more than 3,000 people are still employed by that company. The education system should be poised to take advantage of the turnaround when it comes. Multinationals are not leaving the country but it is vital that young people are prepared to take on those high-tech jobs. I am sure more jobs will come our way because of our tax incentives and our location on the periphery of Europe. It is important we are prepared to take advantage of the situation.

Community employment, CE, schemes have given a lease of life to people, especially in rural areas. I welcome the fact that Ministers have changed the requirements in terms of age to allow people to continue in such employment. I am delighted that 22,780 CE places are in the system. That was increased by a further 500 places in the 2010 budget, bringing the total to 23,300. We should welcome that. Those jobs are vital, especially in rural areas. Entire areas have been regenerated as a result of the schemes. Senator Prendergast referred to the successful renovation of old buildings and such work in towns and rural areas under the auspices of the CE schemes. It is evident that people involved in CE schemes have skills in stonework, for example, that have been tapped into. They do an exceptionally good job.

Many useful measures were introduced in the budget. A total of €90 million was provided for additional FÁS training schemes. The labour market activation fund will provide 3,500 places. A total of €14 million has been provided through the European globalisation adjustment fund. That is to be welcomed. It is not fair to say the Government is doing nothing and has done nothing. It is tackling the situation.

I compliment the Minister of State, Deputy Calleary. Prior to his getting elected to the Dáil he had vast experience through his work with Chambers Ireland of creating employment. I accept that might have been in the good times. He has brought that experience with him. I have no doubt he will continue with it. I appeal to the Minister of State to impress on the Government that the banks will have to make funding available to small businesses. They are the backbone of the country and they should be helped in every way possible.