Seanad debates

Wednesday, 6 May 2015

Spring Economic Statement: Statements

 

2:30 pm

Photo of Colm BurkeColm Burke (Fine Gael) | Oireachtas source

I welcome the Minister of State who has made a comprehensive statement on this matter. I remind Senator Kathryn Reilly that 20,000 jobs will be lost in Northern Ireland, the equivalent to 60,000 jobs being lost in the Twenty-six Counties, and that it has had poor economic growth rates for several years. This is an issue that should not be ignored.

In 2014 we had a 4.8% economic growth rate. In 2015 it is predicted that the rate will be 4% which will continue into the immediate future. We have 95,000 jobs that were not available in 2012. The level of unemployment has come down from 15% to 10%, with a prediction that it will be down to 9.2% in the not too distant future. Long-term projections indicate that between 2015 and 2020 an extra 200,000 jobs will be created. It is important that we work towards achieving this target. We all have a part to play in this regard.

The Minister of State referred to the changing demographic profile of the country. There are 585,000 people aged over 65 years. Within the next 16 years this figure will rise to 990,000. To support the current level of pension provision, we need 3.5 people working for every person in receipt of a pension. By 2030, if the same ratio were to apply, we would need 2.7 million people working to maintain that level of pension provision, health care and nursing home provision. It is important that we set targets and do everything possible to achieve them in a careful and proper manner.

The number unemployed has been reduced and now stands at 343,561. It is still a high figure and we have much work to do. In the past 12 months the number dropped by over 45,000, but it is not an easy issue to tackle. It is about upskilling people who were employed in jobs that are no longer available. It is important that we play our part in this regard.

I am not at all convinced that we are giving enough support to the self-employed and those small and medium-sized enterprises providing two to 20 jobs. There are many obstacles in their way. At a meeting earlier today an issue highlighted to me concerned the self-employed who did not have a company. Take for example a person in such circumstances who earns €60,000 a year. If he or she buys equipment to make sure he or she can keep up to date with the services he or she provides at a cost of €30,000, he or she can write off this amount in tax over seven years. However, he or she is still taxed as if he or she earns €60,000. That is an unfair system. The nature of some businesses does not allow people to form companies, meaning they have to operate as self-employed persons. We need to take this into account. They have the incentive to invest, as well as the incentive to provide a service. Accordingly, we need to encourage them to provide that service.

I am concerned about the issue of housing, an issue on which the Minister of State will agree. The building of housing is crucial to get more people back into work. The Government has provided much funding for local authorities to provide social housing in the next three years. It is important that clear targets are set as to what has to be done in that three year period. It should not be a case of building 100 houses by the end of the three years. There must be targets to be met in six months, 12 months, 18 months and two years time. For example, I have an issue in Cork, the Cork city north-west regeneration project. Last year the Government allocated €10 million for this programme, but it is my understanding only €4 million was spent. In the past three years only 23 houses have been built under this regeneration programme which was first talked about when I was a member of Cork City Council in 2007. Very little progress has been made since. Clear targets must be set in the spending of such moneys by local authorities. If they do not deliver, we will have to take alternative action to ensure the targets are met. It is grand to allocate moneys for such projects, but in the past we have allowed them to go beyond the set time. Now, more than ever, we need targets in order that we can get more people back to work at a faster pace.

An issue that needs to be examined is the number of people who have moved abroad and what we can do to bring them back. For someone who has come back and is trying to get into the social welfare system while they are trying to find employment, the system can be far too bureaucratic. It can take up to 15 weeks during which time they become discouraged and leave again. I have seen this happen and the issue needs to be examined urgently.We need people with skills, particularly in the building trade, to come back to this country and we need to ensure there are proper support mechanisms for them, their families and their children.

I thank the Minister for his contribution and I thank him and his colleagues for the work that has been done to set the targets to be reached over the next few years.

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