Seanad debates

Thursday, 16 June 2016

Delivering Sustainable Full Employment: Statements

 

10:30 am

Photo of Kieran O'DonnellKieran O'Donnell (Fine Gael) | Oireachtas source

I wish the Leas-Chathaoirleach well. I expect he will perform his role with great aplomb. I also congratulate the Minister, Deputy Mary Mitchell O'Connor, on her appointment.

In the brief time I have, I want to speak about what I know, which is the constituency I represent, Limerick, and on the theme of sustaining full employment. Many jobs have been created over the past three to five years, and they are to be welcomed. However, I want to look at the issue of sustaining full employment in an Irish context, of which Limerick would be a microcosm, both urban and rural.

Competitiveness is the key to employment.A couple of things would bring competitiveness. In respect of employment costs, it is important that the marginal rate be brought below 50% for staff take-home pay. I welcome the fact that JobBridge is to be discontinued. It served its purpose for a period but it was open to abuse, although not by everyone. Now we are considering sustainable jobs. We have to get a handle on insurance costs, which are a huge factor. The low cost of energy is external to us, as is the rate of exchange for exports, and the Brexit debate may have an impact but we cannot control that. I hope the Taoiseach’s intervention will encourage people in the United Kingdom to vote to stay in the EU.

I want to see balanced regional development in Limerick, with the 2030 plan progressed so that we have the infrastructure required, particularly buildings in the city centre that the IDA and Enterprise Ireland can showcase. I would also like the Hanging Gardens, and the projects for the Cleeve's site and the opera centre site to be expedited. That is extremely important. The IDA has committed to bringing 66 projects to the region by 2019. We will hold it to that. The development of the knowledge box is critical.

There are several villages in rural east Limerick, including Cappamore, Murroe, Caherconlish, Castleconnell and Ballyneety. Many people have emigrated from rural villages as well as cities. The real challenge in terms of sustainable employment is to get emigrants back and get people to set up businesses in their own communities. It is not always about foreign direct investment; we need to create an environment for the person from the area who wants to set up a business. There are weaknesses such as the speed of, and access to, broadband. Pressure has to be kept on the national broadband plan, particularly in rural areas such as east Limerick. I find that mobile phone coverage in many areas has got worse rather than better. Something needs to be done. This is extremely important for attracting people into rural areas. Access by road is not as big a factor as the other two in the Internet age. What incentives can we use to encourage people to set up in a rural village? We need to put thought into this. They may be tax or grant incentives, or access to services, but the rural area needs to compete on an even level with an urban setting when people are deciding where to set up a business. I see in these villages that people have sustained businesses against all the odds, but they need people to come in to provide extra employment so that they can survive and prosper. They offer benefits in terms of the number of pupils in schools and the existing businesses. I look forward to welcoming the Minister to Limerick and showing her what Limerick has to offer and what she can bring to promote it.

On a national level, we must have a proper review of skills shortages, not just with regard to third level education but also apprenticeships. Germany has a model such that when people leave school they can go into apprenticeships. I look forward to the Minister’s comments.

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