Maria Byrne (Fine Gael) | Oireachtas source

I welcome my good friend and colleague the Minister of State, Deputy Breen, and congratulate him on his portfolio. I wish him the very best of success for the future.

Full employment is the goal that the country must aspire to. Full employment can be defined as a situation in which all those willing and able to work are in employment. In 2006, at the height of the Celtic tiger, Ireland had full employment, with the unemployment rate standing at just 4.3%, according to CSO figures. However, at the same time, the construction industry - to which I know Senator Mulherin has already referred - accounted for approximately 20% of GDP, along with being a significant source of employment. We are now aware that the construction industry in Ireland was overextended. Following the economic crisis of 2008-2009 and the sharp rise in unemployment, particularly amongst construction workers, we know that this level of unemployment was unsustainable. Yes, progress has been made, but the May 2016 figure of 169,700 is far too high. Overall competitiveness must be maintained in the global economy if we are to avoid the mistakes of the past.

Within the overall statistics are a number of problems which, I am glad to say, the Government's Action Plan for Jobs has recognised and prioritised, backed by the OECD. It plans to create 200,000 jobs by 2020. This will reduce the overall unemployment rate to 6%. The proposal to create 135,000 of these jobs outside Dublin is of paramount importance if the regions are to develop and prosper. Also, the encouragement of 70,000 of our diaspora to return home is to be commended. Male unemployment, especially amongst the over 50s, is a serious problem. As a result of the recession, a large number of people who had worked for many years found themselves without a job and with limited prospects of finding another. They want to work and we must invest in skills and training required to encourage them to come back into the workforce.

High rates of taxation have a detrimental effect on job creation. The success of the Irish economy and the large-scale expansion of employment in the 1990s were due to a reorientation of government policy that lowered general taxation in order to promote jobs and investment. I welcome the commitment in the programme for a partnership Government to a continued reduction in the USC in consultation with the Oireachtas. Reducing excessive tax rates for middle earners is important in order to promote full and sustainable employment. As of May 2016, the unemployment rate for males aged 20 to 74 stood at 9.2% and it was 6.2% for women. I am also concerned about the high level of youth unemployment rate of 15% in May 2016, which continues to be above the national average. The aim must be to create an environment where worthwhile employment is available to the many young people leaving the education system. Otherwise the very considerable investment in their education will either benefit another country or languish and dwindle away as the unemployed can so easily become unemployable. It is incumbent on the Government and the relevant Government Departments to put considerable resources into tackling the scourge that is youth unemployment. This also applies to the long-term unemployed, which is a European-wide problem. It leads to social exclusion and the creation of poverty traps. In the words of Professor Hugh Frazer from Maynooth University, "It adds up to an erosion of human and social capital over time." The creation of jobs throughout all regions is vital in addressing this problem, as well as tackling the pockets which exist in many urban areas. I look forward to the day when all our citizens who wish to remain at home will be able to find well-paid, sustainable employment and many who have been forced to emigrate can return and bring with them valuable experience and skills they have acquired. I know that the Minister of State is totally committed to tackling and solving this major problem area which has caused so much suffering and hardship.