Dara Calleary (Mayo, Fianna Fail)

Gabhaim buíochas le Páirtí an Lucht Oibre as ucht an rún seo a ardú. I am not particularly interested in the mechanics of amendments and counter amendments. I agree we have a problem and I am interested in addressing it. There have been some good ideas and suggestions which I will deal with. The aim of the amendment was not, as Senator Hannigan said, to clap ourselves on the back but to point out that there were initiatives under way and that we were implementing policies in this regard.

The stabilisation fund represents an investment of €100 million this year and will support more than 148 companies. Senator John Paul Phelan referred to the temporary employee subsidy scheme, in which we are investing €135 million. We are happy that we will be able to sustain the figure of 80,000 jobs supported under the scheme. There were 2,700 applications for the second call under the scheme and up to €9,100 will be awarded for each subsidised job some time in March. I will happy to come back to the House and discuss the impact of the scheme around that time.

The Finance Bill which is on Second Stage in the other House and which will be taken in the Seanad imminently contains details of the employer job (PRSI) incentive scheme. Senator McCarthy referred to the need for such a scheme. The scheme provides that when an employer creates a new job and takes on somebody who has been unemployed for six months or more, that employer will be fully exempt from PRSI liability for the first year of that employment, which will provide a 8% to 10% saving on employment costs for each new job created.

Our enterprise agencies, together with the local enterprise boards, are involved in specific initiatives in their regions. Enterprise Ireland has prepared a recovery strategy to identify the actions that will be undertaken to help clients in 2010 and refocused its efforts on strengthening and sustaining companies of strategic importance through a wide range of initiatives, all of which will sustain and create jobs.

A review of a new strategy for the future direction of foreign direct investment, developed by the IDA under the instructions of the Minister, will be published shortly. The strategy will identify new opportunities in foreign direct investment markets which are, as Senator Ross said, the foundation of the economy and which we should encourage and foster. This will restore our international competitiveness. Last year was a challenging one in terms of inward investment; however, the IDA still won 125 investments. Already in 2010 there have been several announcements of decisions by companies to create at least 280 jobs in Dublin, Galway and Tullamore. As I said, the local enterprise boards are working on initiatives in their areas.

The new director general of FÁS is in place and the new board has been appointed since I was last in the House. A new chairman has taken office and the board met for the first time yesterday. This morning I met the new chairman — Mr. Michael Dempsey, a man with considerable experience in the corporate world and change management — and I am confident he will bring that experience to managing the board and his work with the director general in refocusing FÁS and addressing the issues referred to by Senators. It is important to remember that we will invest €1 billion this year in a range of labour force measures. We have already spoken extensively in the House about the specific programmes undertaken by FÁS and the doubling of capacity. Yes, there is a need, as Senator Boyle and others have said, to match that capacity and match the new training courses to the new jobs. I will happily discuss with Senators how we can change the first interaction with job seekers when they are first referred to the employment services.

The issue of community employment was raised. An extra 500 places on community employment schemes were provided for in this year's budget and they will be allocated accordingly. I support the community employment scheme, under which, as Senators said, much good work is done. However, it would probably be worthwhile having a debate — perhaps not in the Seanad but at committee level — about the actual impact of community employment schemes on the labour market. Are we training people for the labour market or providing a social economy service? A debate on this aspect of the community employment scheme is necessary.

Much work is under way under the Youthreach programme, with €110 million invested and 6,000 places. The Youthreach programme is directed at unemployed young early school leavers aged 15 to 20 years and provides them with basic skills and work experience. It facilitates them with opportunities to progress to further training or employment and continues to be a key element of our labour market activation provisions for young people. I engaged with some of my local Youthreach programmes before Christmas and found them to be excellent. We will invest further resources in this area next year.

In the region of 30,000 trainees or 36% of those who participated in FÁS training programmes in 2009 were from the under 25 year age group. I have asked FÁS to continue giving priority to this age cohort in 2010 and beyond.

Since there has been much discussion about the work placement programme, I will refer to several matters raised. Senators Bacik and McCarthy stated they had a number of ideas in this regard and I look forward to them sharing them with me. Senator Callely referred to the need for such a scheme. One is in place, but Senator Prendergast raised the concern that it was being used to displace those currently in employment. With FÁS, we invest considerable time locally in ensuring the places available under the scheme do not displace those of existing employees. This is an important aspect of every work placement programme. A number of Senators referred to the need for communities to be involved in FÁS work and for people to be available to do community work. I would recommend any community organisation to use the work placement scheme to register with FÁS in order to provide people with work experience.

Senator Carty referred to the matter of apprentices, a particular challenge which I will spend much time tackling this year. Apprentices are affected more than most, with many being made redundant, having partially completed their apprenticeships or having only been taught the basics. The majority of apprentices are under 25 years. Given the nature of the apprenticeship system where being employed is a key requirement, the Government has initiated several measures that will enable 4,000 redundant apprentices to progress in their apprenticeships. We have agreed with ESB Networks that it will take on 400 redundant apprentices at phases 5 and 7 over a period of 18 months. We have amended the rules for off-the-job training to facilitate redundant apprentices to progress in their apprenticeships. We have also introduced the employer-based redundant apprentice rotation scheme to facilitate and support employers in providing on-the-job training for redundant apprentices. I am open to ideas where apprenticeships are concerned. As Senator Carty stated, there will come a time when we will need every apprentice. I am anxious that they complete their apprenticeships and that we keep them in the country.

This weekend we will give preliminary notice of our intention to advertise for proposals under the labour market activation fund which will involve a sum of €20 million in 2010. The fund which is being managed by my Department will seek to support innovative proposals over and above current provisions for the unemployed. We expect that this year the fund will support 3,500 training places. It specifically targets the low-skilled, those aged under 35 years and those formerly employed in the construction, retail and manufacturing sectors. Many Senators have referred to this cohort as potentially being the lost generation unless we intervene. I look forward to proposals being made under the fund. If it is successful, I will campaign to have it expanded next year.

The measures are not limited to training and work experience. There has been much discussion about education. There were people in the Visitors Gallery interested in the matter of mature students. The number of back to education allowance recipients has increased to 18,000. In the further education sector this year an estimated 125,000 learners will benefit from part-time learning opportunities, in addition to the 40,000 learners who will benefit from full-time further education opportunities under the vocational training opportunity scheme, VTOS, in PLC courses and the Youthreach programme. There is clear evidence of increasing numbers participating in the higher education sector, as there is in other economies.

During 2009 more than 900 unemployed young people participated in short courses in institutes of technology, while 160 students undertook accelerated level 6 programmes. In 2009, 1,800 unemployed people were supported to embark on part-time undergraduate and postgraduate courses in areas that support work on the smart economy.

Many Senators made points about the banks. Let us be clear that our intervention was to ensure a viable, functioning banking system which forms the basis of any economy. Working this out does not require a rocket scientist. We must see this intervention through to ensure the banks will lend to small businesses again. I reiterate the call made by many Senators and earlier this week by the Governor of the Central Bank on the banks to lend to viable small businesses to give them a chance to create employment.

I appreciate the large number of ideas expressed by Senators. It is regrettable that Senator O'Doherty felt the need to launch his by-election campaign with a personalised attack on the Tánaiste who is leading many of the initiatives under discussion. If the Senator is half the representative during his time in this or the Lower House that she has been to the people of County Donegal, he will do a good job, but I am sure we will have more of the same in the coming months.

I thank the House for this discussion. I want to engage at committee level — I see Senator Ryan present — on this issue. Youth unemployment gives me great cause for concern and I will invest much time and effort this year in dealing with it. I am open to considering new ideas and suggestions in so far as that is possible.