Seanad debates

Tuesday, 20 November 2012

Action Plan for Jobs: Statements

 

4:10 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

Perhaps I will just make a few brief opening comments in order that Senators will have more time to offer their own observations.

The first point I wish to make relates to why we brought forward the action plan for jobs. I need not inform Senators that the background to its introduction lay in the sheer economic mayhem that impacted upon employment in recent years. In the space of three years some 16% of jobs in this country were simply wiped out. The tragedy is that the vast majority of these related to young people who are under the age of 30. While we know that we must consolidate the position with regard to the banks and our public finances, the main purpose of the work we are doing is to fix people's lives. In that context, the most important consideration is getting them back to work. It was for this reason that the Taoiseach decided - I am a key player in this regard - to put in place an action plan for jobs which seeks to span the entire Government. In other words, it involves bringing the expertise of all Government Departments to bear on the challenge relating to employment. This is not just an issue for one or two Departments - every Department has an role to play.

The second purpose of the action plan is to bring a sense of implementation and action to the orientation of Government in respect of this matter. Learned reports have been compiled over many years in respect of the need to reform the health service and our system of public administration. However, a large number of such reports are usually left on the shelf. When one reflects on them years after their publication, one can see that very little has been done. The opposite is the position with regard to the action plan, the purpose of which has been to ensure that actions which would make it easier to create employment would be taken within 12 months of publication. That is what has driven our work in this regard. Quarterly targets were set down and had to be met. By and large, this has happened. For example, the completion rate for the first and second quarters was 95%. The rate for the third quarter was somewhat lower. Anything that was missed in the first two quarters, however, has been delivered in the third and fourth quarters.

Setting deadlines is a new concept within the public service. I cannot recall many policy initiatives which imposed deadlines for implementation on the system. The laying down of targets and deadlines has had an impact. In practical terms, we have brought forward things which many people had sought but which had been long delayed. I refer, for example, to the microfinance initiative and the loan guarantee scheme and the establishment of the first-time exporters division. We have, through ConnectIreland, reached out to the diaspora and others who are friends of this country in order to supplement the admirable work done by IDA Ireland. We are beginning to see the impact of this. Our problems have not been solved but last year was the best for international investment in a decade. IDA Ireland delivered its best figures for employment in some time, with a net expansion of almost 6,000 in the number of jobs. The gross figures in this regard were very positive.

Enterprise Ireland saw two years of very strong double-digit export growth, as Irish companies have built on improved competitiveness and won back markets. We are seeing a transformation occurring in the economy. We are seeing the new sectors that will build our long-term economic future emerge. We are seeing a hugely strong performance in export-oriented sectors, not just the ones under my remit but also tourism, to be fair, is doing well, having been very weak. In net terms, in the three years before we were in government those export-oriented sectors lost approximately 70,000 jobs, and they have gained 20,000 jobs in the past 18 months. In terms of those key sectors which are critical to our long-term future, they have turned a dramatic corner. Overall, private sector employment continues to fall but it is pretty much plateauing at this point. The strong growth in the export-oriented sectors is being weighed down by losses in traditional sectors. Construction continues to lose employment, as does retail, although not as rapidly as was the case. Domestic banking continues to go through a difficult correction.

There are grounds for stating that the strategy is working. We have a balance of payments surplus, which means that as a country we are paying down our debt. However, there is a huge distance to go. Most Members who are in business will be aware that fixing the banks is not a question of just recapitalising them. They became re-oriented away from the challenge of a small open economy, businesses and exporting and they got into the business of property and selling on commission. There is a big challenge in re-orienting them away from that world to the new economy we must build. The measures we have introduced will be useful but we need the banks to correct themselves also.

The Credit Review Office is doing great work. I do not know whether Senators are using that office but it is a valuable tool. If they come across people who are having problems with getting loan approval from their bank they should use that office because it has turned over more than 50% of the cases that have been brought to its attention. Currently, up to 60% of the cases that come for adjudication are turned over. Much useful work is done before the cases ever come to adjudication. It is a really useful office that is making an impact. To be fair, it was established by the previous Government. I am not being partisan about the issue.

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