Billy Kelleher (Cork North Central, Fianna Fail)

It would require significant foreign direct investment to create 7,500 jobs.

The live register figure for February shows there has been a stabilisation of job losses. While it might be said it is at a high figure, we must welcome the fact there has been stabilisation. Last year 26,000 jobs were lost in February and 30,000 in January. Twelve months on, while there has been a major rise in unemployment, seeing the figures stabilise in what traditionally is a very difficult month is welcome. Obviously, this has come very late for the many thousands who have lost their jobs. However, we must get to the bottom of the recession curve before we will be able to see light at the end of the tunnel. All of the international commentators and analysts recognise that we are on the right path, although it is a difficult and painful one for many. Recessions are not easy, particularly for the vulnerable and those in the public sector who have experienced wage reductions. The Government is acutely aware of this point. I suggest to the House that it has been recognised internationally that what the Government is doing, difficult as it is for many, is necessary. It had to take decisions to protect our international financial sovereignty. There is now commentary that that sovereignty is under threat in other countries simply because they did not take the decisions required of them to ensure they would have international credibility. International credibility is of huge significance for Ireland for a number of reasons, including that we are borrowing a lot of money to maintain services, we are trying to attract foreign direct investment and we have a very important financial services centre.

An additional measure to support enterprises in retaining their employees was the employment subsidy scheme which was introduced last year. Between 2009 and this year, we are investing a total of €135 million in the scheme, under which enterprises receive a subsidy of up to €9,100 for each subsidised job retained. There have been two calls under the scheme. Applications in response to the second call are still being assessed but it is expected that, between the two calls, approximately 80,000 jobs will be either directly or indirectly supported.

The enterprise stabilisation fund and the employment subsidy scheme reflect the Government's commitment and determination in assisting companies to come through this difficult period. Between the two schemes, we are investing €235 million directly in enterprises, safeguarding thousands of jobs and securing our enterprise capability in the process.

The Government is also encouraging employers to create new jobs by reducing the costs associated with employment. Under the employer jobs PRSI incentive scheme, where an employer creates a new job and takes on a person who has been unemployed for six months or more, he or she will be fully exempt from the liability to pay PRSI for the first year of that employment. This will give employers an 8% to 10% saving on employment costs for each new job created and actively encourage the creation of new employment when it is most needed.

The PRSI exemption for employers creating new jobs this year is in addition to the maintenance of the substantial capital investment programme across government. This includes the national development programme and implementation of key Government programmes such as the €425 million rural development programme 2007-13, under which some 12,000 jobs will be created, and the €1 million invested each week in the home energy savings scheme, providing work for some 3,690 registered contractors. A grant is available to make homes more energy-efficient. The scheme was also designed to retrain people from the traditional construction areas and move them into the area of home energy installations such as installing boilers, wood-burning stoves and insulation. It provides employment opportunities for many of those in difficulties because of the downturn in the construction sector. The Government is also investing substantially in the provision of key infrastructure such as broadband, in respect of which the number of subscribers has doubled during the lifetime of the Government, and electricity generation from local renewable resources, in respect of which, at 15%, we have already met our target for 2010.

The Government remains fully committed to upskilling the unemployed in order that they will be successful in getting back into employment. The lesson to be learned from the previous recession in the 1980s is that people must be retained as close as possible to the labour market in order that those who fall out of employment into unemployment are at least provided with training programmes in order that they can more easily re-enter the labour market. If people are removed from the labour market, they often lose their confidence, their skills sets may no longer be required and they drift into long-term unemployment. Of all the blights in society, the blight of long-term unemployment is something we cannot allow happen at this time of high unemployment. The Government is hugely conscious of the need to ensure we provide training and upskilling programmes for those who find themselves unemployed.

My colleagues and I are proactively leading the Government's response to Ireland's unemployment level and driving implementation of the framework for sustainable economic renewal. The Cabinet sub-committee on economic renewal is also ensuring a co-ordinated approach across Departments in response to the rising numbers of unemployed. This approach has included a substantial increase in the number of job search, training and work experience places available to unemployed persons. We are also focusing our resources on a number of key cohorts of the unemployed, including the lower skilled, the long-term unemployed, those under 35 years of age and those formerly employed in the manufacturing, construction and retail sectors. These cohorts have been prioritised, as they are most likely to drift into very ong-term unemployment. The Government is investing substantial resources in tackling our unemployment problem. For instance, my Department will invest over €1 billion in the provision of a range of labour force measures this year.

As regards job search supports, in 2009 FÁS employment services, together with the local employment services, doubled their capacity. The annual referral capacity under the national employment action plan rose from 78,000 persons in 2008 to 147,000 last year. The additional resources allocated by the Government to tackling the rising unemployment rate have also enabled my Department to significantly expand its activation training and work experience places. This year the total number of training and work experience activation places funded by my Department will be approximately 147,000. This compares with the 66,000 places delivered in 2008 and the 130,000 places delivered last year. The bulk of this additional provision has been due to the increase in the number of training places on short-term courses for the unemployed.

FÁS now provides modular-based training in order that participants can pick which modules they most require to improve their skills and ultimately increase their employability, while maintaining a close link to the labour market. In addition, training courses are being delivered in innovative formats such as on-line, blended learning and night courses. In this way we are providing for a range of delivery methods, in addition to the traditional classroom approach, which enables more people to access the services of FÁS. In addition to the places I have just mentioned, this year Skillnets and FÁS will be providing almost 10,400 training places for the unemployed or those engaged in short-time working. Owing to the economic downturn, many individuals are working for two or three days each week and receiving social welfare payments for the days they are not working. Both Skillnets and FÁS are providing training opportunities for those who find themselves in this position. Individuals participating in these programmes can avail of training on the days they are not working while retaining their social welfare entitlements, subject to the normal social welfare rules applying. This means that the individuals concerned will now be able to use their reduced working week as an opportunity to upskill themselves, thereby improving their employability.

The Government is acutely aware of the large numbers under 25 years who are unemployed. This is the reason it has decided that this cohort will receive priority access to the State's supports for the unemployed such as the FÁS employment and training services. The Tánaiste has also asked FÁS to make significant prioritisation of services for those under 25 years a key element of its provision in 2010. An initiative has also been put in place to immediately activate 18 and 19 year olds, instead of waiting the usual three months for automatic activation.

The main specific provision for early school-leavers continues to be training at community training centres and vocational education committees under the Youthreach programme. The Government is maintaining the 6,000 places available under this programme at a cost of approximately €110 million. Another important initiative of particular relevance to this group is the work placement programme which offers 2,000 places, of which 1,000 are for graduates. Participants in the programme gain work experience for a period of up to nine months and may retain their social welfare entitlements, subject to the normal social welfare rules applying. This work experience will significantly improve their chances of securing paid employment in the future. The Government has implemented a variety of measures which will support around 4,000 redundant apprentices to progress their apprenticeships.

I thank the House for affording me the opportunity to outline the wide and varied spectrum of measures the Government is taking to cultivate the growth of employment in the economy. I have been present for many debates in this House about unemployment and job creation, the economy and access to credit for small and medium-sized businesses and the broader economy. Public representatives on all sides of the House have firm views on the issue of how the current difficulties are to be tackled. A number of factors must be continually promoted and highlighted. Ireland is not the only country affected by recession. Most of our trading partners are in recession. The United States of America is the largest economy and currently has an unemployment rate of 10%. It is disingenuous, therefore, for some commentators to almost suggest this is the only country finding it difficult to come through the economic crisis and with financial difficulties because of the credit crisis, with rising unemployment. Many countries in the eurozone are also finding this a very challenging time. I agree there are inherent difficulties in the economy which exacerbate the problems——