Paddy Burke (Fine Gael)
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I welcome Ms Emer Costello, MEP. Unlike some of her colleagues in the European Parliament, this is her first time in the Chamber. I wish her well in her role.

Ms Emer Costello, MEP:

I thank Members of Seanad Éireann for the invitation to address them. I am delighted to have an opportunity to outline the nature of my work and discuss European issues of national importance with the Seanad. As Senators are aware, I have been a Member of the European Parliament since February 2012 when Proinsias De Rossa retired. Since entering the Parliament, I have become a member of the Committee on Employment and Social Affairs, chairperson of the delegation to the Palestinian Legislative Council and substitute member of the crime and money laundering and development committees. While my focus will be on my work on the Employment and Social Affairs Committee, I would be pleased to speak about aspects of my other roles, particularly as the chairperson of the delegation to Palestine. For this reason, if Senators have questions on these matters, I will be glad to answer them either today or on another visit to the Seanad or committee of the House.

The founding values of the European Union are still very much in evidence in the current treaties. Article 2 of the Treaty on European Union emphasises respect for human dignity and solidarity as core values of the Union. Article 3 states: "The Union's aim is to promote peace, its values and the well-being of its people." Article 3 commits the Union to work for social progress, fight for social justice and protect the rights of the child. Article 9 of the much maligned Lisbon treaty sets out one of the most important elements of the European treaties, the social clause, which requires the European Union to take the promotion of high levels of employment, adequate social protection and the fight against social exclusion into account in all of its policies.

The founding principles and values of the European Community are also enunciated in the Europe 2020 strategy agreed in June 2010. Under this strategy, member state Governments agreed five headline targets for 2020. They include achieving a 75% employment rate, reducing the school drop-out rate to below 10% and reducing the number of people at risk of poverty by at least 20 million.

As Senators are aware, the economic crisis is clearly affecting Europe's ability to achieve these targets and exacerbating poverty and social exclusion. At the start of the crisis, unemployment rose and the number of jobless households increased. At the same time, the risk of poverty and material deprivation began to rise, reversing the previous trend towards a reduction in the number of people at risk of poverty and social exclusion. By 2011, almost one quarter of the total population of the European Union or 120 million people, including 25 million children, were at risk, an increase of 6 million in two years. More than 40 million people in the European Union suffer from what is known as severe material deprivation. This is the inability to pay housing or utility bills or keep one's home warm. Further, one in ten of those aged under 60 years lives in a household with low work intensity.

What all of these statistics indicate is that all member states are essentially grappling with the same problems. However, some member states are doing better than others, as noted by Commission President, Mr. José Manuel Barroso, in the European Parliament last September when he stated: "It is precisely those European countries with the most effective social protection systems and with the most developed social partnerships that are among the most successful and competitive economies in the world." If this is the case, as I believe it is, there is a correlation between well-designed social expenditure and economic competitiveness. For this reason, Europe must take into account longer-term challenges such as demographic change and view sound social spending not as compensation but as a positive investment in the future, one which will create prosperity and is on a par with education, training, accident prevention and health promotion.

This is the core idea behind the social investment package launched by Commissioner László Andor last week. The package, which I hope will spark a major debate about the future direction of Europe, emphasises the importance of pursuing a social investment approach. The Commission, like the Labour Party's political group in the European Parliament, the Socialists and Democrats, believes Europe needs to shift its focus towards investing in people. This belief is the reason I very much support the current proposal that 25% of Cohesion Funds in the Multi-annual Financial Framework 2014 to 2020 would be allocated to the European Social Fund, ESF, and that 20% of member states' ESF spending would be focused on social inclusion and combating poverty.

In practical terms, social investment means focusing on policies that help prepare people for life's challenges, rather than waiting to repair the consequences of failing to meet these challenges. Social investment is essential as it helps to prevent much higher bills having to be paid in future. I propose to concentrate on two current European social investment priorities that I am pursuing in the European Parliament. The first is the implementation of a youth guarantee to help address youth unemployment. I hope to hear good news on this priority this morning from EPSCO, the Employment, Social Policy, Health and Consumer Affairs Council. The second is the fund for European aid for the most deprived which will replace the current European food aid programme and reaches out to those on the margins of society.

I will first address the issue of youth unemployment. One of the key social investment approaches I have been advocating since taking my seat in the European Parliament is the concept of a European youth guarantee. This is the issue I have raised most often in the Parliament since becoming an MEP. Yesterday, the Central Statistics Office published figures which indicate that Ireland is, at last, beginning to turn the tide on unemployment. The figures appear to bear out the European Commission's recent economic forecasts which estimated that after five years of a collapsing labour force, total employment in Ireland will grow this year, albeit by only 0.9%, following last year's growth of only 0.1%. I hope this is an indication that the tide is turning. While it is good news, much more needs to be done.

Europe is in the midst of an unemployment crisis. The most recent EUROSTAT figures record EU unemployment at the unprecedented high of 11.7% or 26 million people. Europe's youth unemployment rate in December 2012 was 23.4% or 5.7 million people, an increase of more than 50% since 2008. Ireland's youth unemployment rate is 27.7%, which is a three-fold increase since 2008 when it was 9%. We know that these figures are tempered by the approximately 3,000 young people who leave our shores each month.

Youth unemployment risks a scarring of a generation of young people. Research indicates that periods spent unemployed at the commencement of one's working life can have negative affects later in life in terms of career prospects, salaries, pensions and health. Youth unemployment limits the lives of young people. It prevents them from making their contribution to society and leads to disengagement, alienation and, often, crime. No society can be vibrant and competitive if almost 30% of its young workforce is unemployed.

Youth unemployment also costs in financial terms. The Commission estimates the annual cost of young people not being in employment, education or training is 1.2% of GDP or ¤150 billion. The best way to ensure young people find work is to get the economy growing again. For this reason the ¤120 billion Compact for Growth and Jobs agreed last June by the European Council must be implemented in full. The January decision of the European Investment Bank governing board to increase the bank's capital by ¤10 billion must be translated into a concrete pan-European investment programme in infrastructure and people. Last week, I raised at European Parliament the need to ensure much of this funding is made available to SMEs. The increase in funding for the EIB would result in an additional ¤60 billion being available for lending and could leverage an additional ¤180 billion for investment projects between 2013 and 2015. We need to be able to draw on that. We need also to ensure that multi-annual financial framework, MFF, currently being debated in the European Parliament and negotiated with the European Council provides the resources and flexibility necessary to achieve EU aims, particularly those set down in the Europe 2020 strategy, and is focused on growth-enhancing future priorities rather than the past.

There is no doubt that a youth guarantee is one of thebest ways to help tackle the scourge of youth unemployment. The youth guarantee approach involves public authorities, employment services and relevant stakeholders, working together to ensure that every unemployed young person receives a quality job offer, apprenticeship or traineeship within four months of becoming unemployed or leaving formal education. Its core principle is to identify and address the needs of each young person rather than simply slot them into existing service provision. The focus is very much on the client's needs rather than what the service-provider does. The youth guarantee approach has been tried and tested. It is working in Austria, which has a youth unemployment rate of 8.5%, and in Denmark, Sweden, Germany and Finland. It is a policy initiative for which the Labour Party and its sister parties across Europe have been campaigning for some time.

On 5 December, the Commission presented a proposal for a recommendation to the Council for a youth guarantee. The main aims of this proposal are to mobilise member states to reduce youth unemployment; suggest a model to follow when setting up youth guarantee projects and establish peer review schemes to assess the effectiveness of adopted projects. I welcome that adoption of this proposal is one of the main priorities of Ireland's EU Presidency and that this will be adopted at today's Employment, Social Policy, Health and Consumer Affairs Council, EPSCO, meeting which is being chaired by Minister for Social Protection, Deputy Joan Burton. We await what we hope will be good news from the EPSCO on that matter.

We must now ensure that the youth guarantee approach is supported with European resources. The ¤6 billion allocated to youth employment in the EU budget on 8 February is a start and a step in the right direction. However, further intervention will be required to ensure the issue is tackled. The European Parliament will monitor developments in this regard. I welcome that the Government has applied for EU funding to support youth guarantee pilot projects in Ireland. It is hoped some of these will take effect prior to the youth guarantee coming into force. I believe the youth guarantee can play a role in reducing Ireland's youth unemployment rates and can assist us in achieving the EU 2020 target of an employment rate of 75%, which target is worth striving for.

I would now like to address the proposed replacement for the existing EU Food Aid Programme, namely, the Fund for European Aid for the Most Deprive, FEAD, in respect of which I am honoured to have been appointed EU rapporteur. Some Members may be familiar with the MDP, most deprived person's, programme which provides food for those living on the margins and in need. We have all seen the recent reports on child poverty and poverty and the alarming statistics in that regard. One of the main features of material deprivation is an inability to access appropriate quantities of food. Earlier, I mentioned the statistics in relation to poverty. There are 43 million people across Europe who are living in poverty. This means they are unable to afford a meal with meat, chicken or fish, or vegetarian equivalent, at least once every two days.

Under the Most Deprived Persons programme member states have since 1987 been able to release intervention stocks and surplus food for distribution as food aid. Some 20 member states currently participate in the MDP, with approximately 19 million people benefiting annually. This is the only European programme that directly reaches out to people living on the margins of society. The MDP has become an important support for NGOs and charities working with people who are homeless and suffering severe material deprivation, including Crosscare and Brother Kevin Crowley and Ms Theresa Dolan of the Capuchin Day Centre to whom I gave an award when Lord Mayor. While the MDP has never sought to resolve food poverty in member states, organisations participating in the programme have emphasised that the predictability of this European support is crucial to their operations. The programme is funded from the budget of the Common Agricultural Policy, CAP. However, with the running down of intervention stocks the MDP became less sustainable and lost its core rationale. Some member states believed it also breached market rules. As such, it was agreed the MDP should be phased out. The European Parliament and many of the NGOs believed it was an important programme and it could not be terminated without first putting in place a replacement. They believed not doing so would send out a negative message, particularly at a time when there is a huge increase in the levels of poverty, as evidenced by the number of people availing of the services provided by Brother Kevin Crowley through the Capuchin Day Centre, Crosscare and so on.

Last October, the Commission responded to these calls by proposing a new fund entitled the Fund for European Aid for the Most Deprived, which is commonly referred to as the FEAD fund. This fund of ¤2.5 billion will enable EU member states, working in conjunction with NGOs and partner organisations, to provide food and other aids. It is estimated that there are 4 million homeless people across Europe. While we are aware that children are particularly at risk of poverty, young adults and people with a migrant background are increasingly featuring among the homeless. The purpose of the FEAD programme is to support schemes that address food deprivation and to, for the first time, support provision of every day items which homeless people and materially deprive children cannot access.

Crucially, from a social investment perspective, it would also support accompanying measures that aim to better engage with people suffering from food poverty, such as the homeless and materially deprived children, by enabling them to reintegrate into society. The fund would also support a European platform to enable member states and participating partner organisations to learn from each other and exchange practices.

The Commission's proposal to establish the fund is just that, a proposal, and must be scrutinised and amended by the European Parliament and by the Council of Ministers before it comes in effect. My role as rapporteur is to steer the proposal through the European Parliament. I have produced a report and set out 63 amendments to the Commission's proposal and presented the proposal to the European Parliament. Many of the issues in the amendments to the Commission's proposal cover a range of issues including emphasising the partnership principle, clarifying definitions such as accompanying measures, seeking to protect the dignity of final beneficiaries and strengthening the links between the fund and other European actions such as in the field of public health and eliminating food waste. MEPs now have the chance to table amendments before a complex negotiation process with MEPs and the Council.

The fund is important and some ¤2.5 billion has been set aside for it. I welcome the fact that the efforts of the Cypriot Presidency to reduce the fund were not agreed by the Council. I welcome the fact the fund has survived the first phase of the multi-annual financial framework because some discussions suggested some countries were not in favour of the fund. It is important that it survived the multi-annual negotiations on 8 February. We must acknowledge that ¤2.5 billion is a contribution and we must be vigilant that it remains intact as the fund makes its way through the Council and the European Parliament.

I met the EU Committee of the Regions during the week and we discussed the fund. The new fund should not be seen as a substitute for the comprehensive policies needed to reduce and eventually eliminate poverty. This is the major challenge for us. I provided the House with figures on the levels of poverty and deprivation in the EU. We need to address that but the new fund reaches out to people at the margins and tries to bring them in.

It is important we send a strong signal and keep the fund. It should be a practical expression of the EU core values and principles and a tangible recognition that the Union is willing to play its part in confronting the challenges of poverty and social exclusion. The proposed FEAD programme and the youth guarantee approach are two practical expressions of the social investment approach being taken up at European level. I very much welcome and support this approach. We need a debate about social Europe and to embed this approach more securely in the EU's decision-making structures. Member states have rightly agreed new rules for the monitoring and co-ordination of economic and fiscal policies. We know fiscal consolidation, on its own, is not sufficient. Sustainable growth and jobs will only be achieved where there is an emphasis on growth, investment packages and investment policies.

Having addressed fiscal consolidation and tried to get our economy on track, the other part of the equation is to do the same for our social and employment policies. We must place the same emphasis on investing in people and education as we do on stabilising our public finances. In short, Europe needs a social pact, a so-called fourth pillar. If we have economic, monetary and political union, we need social union and we need it to be underpinned by an agreement and a social pact.

The Seanad may be interested in taking up the idea of a social pact for Europe, which I believe in quite passionately. Such a pact should set out a list of specific measures in the form of social investments to be taken up by member states, with the support of EU funding, particularly the European Social Fund, over a given timeframe in order to meet the employment, anti-poverty and education targets of the Europe 2020 strategy. This should be subject to a monitoring framework of common social indicators in the same way economic indicators are monitored. There is a window of opportunity to agree such a social pact. In December, the European summit finally recognised the importance of strengthening the social dimension of a genuine economic and monetary union. This aspect will be discussed again in the June negotiations on the future of EMU at the June Council. The June summit should aim to make concrete progress towards a binding social pact for the EU to ensure our budgetary objectives are reconciled with our social and employment objectives. Europe can achieve the Europe 2020 strategy only if we now put in place the measures but it is in all our interests to work towards it.

There are many other areas to my work and I have taken up a huge number of issues. As chair of the delegation to the Palestinian Legislative Council, important work is going on and if Members would like to discuss that with me now I would be happy to discuss the issues.

I feel honoured to be in this august Chamber. Not having been a Member of either of the Houses of the Oireachtas, it is a daunting experience to come here but I am delighted to have the opportunity to discuss issues and ideas and I look forward to the feedback of Members.

Terry Leyden (Fianna Fail)
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I extend a very warm welcome to Emer Costello, MEP, on her first visit to the House. She comes with tremendous experience as an MEP for the past 18 months or more and as a very effective Lord Mayor of Dublin, where she carried out a very important role. It is a great learning experience for anyone to serve in that very important position and she certainly acquitted herself extremely well. I attended events she hosted when she was Lord Mayor. She was also a member of the Council of the Regions, which provides her with European knowledge.

I am delighted she is chairman of the delegation to the Palestinian Legislative Council. It is a very important role. As convener of the Friends of Palestine in the Oireachtas, which is an active group, the role of Ms Costello is welcome. I hope she has an opportunity to attend a Friends of Palestine in the Oireachtas meeting at a time convenient to her because it would be good for her to brief us on the present position in Gaza and in the West Bank. She can also brief us on Hamas and Fatah, talks between the organisations and the future elections in that region. It is a very sensitive area and hits the headlines regularly and dies for a while before another crisis erupts. It is in constant crisis.

I hope the new Israeli Government will be more responsive to the peace process than the previous one. The building of settlements in the West Bank is more than provocative. Northern Ireland and the Republic of Ireland provide an example. How would we envisage the building of further settlements in the South when we were in negotiations? It is unacceptable. People must go there to see it. Has Ms Costello been to the Gaza Strip and can she give an account of it?

I am particularly delighted that Ms Costello is involved in youth unemployment and trying to do something positive. I put this point to the Minister of State, Deputy Creighton, on Tuesday.

I have been highlighting the issue for some time and I hope that Ms Costello will take a personal interest in it. The EU used to run a pilot project on a type of peace corps. Ireland could do likewise. Many skilled people are available to work abroad in an organised fashion. For example, the Niall Mellon Trust operates in South Africa and has done great work in building houses in settlement areas. I have visited the shanty towns in Nairobi. People were living in unbelievable conditions. Ireland has architects, engineers, plasterers, builders, electricians and plumbers. We have every skill possible. Instead of going to questionable governments that have abused our funding, why can some of the money from the Third World fund not be used during this crisis to form a European brigade to build quality houses in Third World countries?

From an economic point of view, we could build ready-made structures in Ireland and export them for erection in shanty towns. Entire areas could be developed into a new Ireland of quality buildings. I would like this work to be done under the leadership of the Army's corps of engineers. It has considerable ability. There would be risks involved from a security point of view, but missions would last for six months. I hope that Ms Costello keeps this idea in mind. My contacts in the EU have told me about work being done on this subject in the Union.

I thank Ms Costello for the hospitality she extended to the delegations from the European affairs and finance committees of the Oireachtas. She was a wonderful and courteous hostess. The Seanad is extending to her the same courtesy. I wish her well.

I regret that Ireland will lose a seat, dropping to 11. This is a serious situation. Does Ms Costello know what effect the reduction will have? When we voted to allow Croatia to join, I was not voting for Ireland to lose an MEP. If Turkey accedes, how many MEPs will we have? The minimum for any country is six, but we cannot afford to lose any more. Ms Costello works for Ireland, not any political party, when she is in Europe.

Deirdre Clune (Fine Gael)
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I welcome Ms Costello. We have learned the correct title is "Deputy". I thank her for her contribution. It is useful when information is delivered in an oral fashion. The employment and social inclusion committee, of which Ms Costello is a member, is well named and constructed, particularly in light of the difficulties being faced across Europe. Ireland is focused on the issue of unemployment and its effect on people across the board. We are doing much in this regard. I welcome the fact that we can key in and have Europe's support in the form of, for example, information on different methods to help the unemployed to find some type of work.

Ms Costello cited a target of 75% employment by 2020. It must be achievable, given the fact that Ireland's unemployment rate was 5% just a number of years ago. We all know the reasons for this and I will not rehearse them.

I support the youth guarantee fund that Ms Costello mentioned and I hope that we will hear good news on the subject today. That Ireland's youth unemployment rate is 27% is a difficult situation. As Ms Costello knows, the Government announced the Action Plan for Jobs 2013 last week. A key element will be to provide an incentive for employers to hire the long-term unemployed. The State will pay ¤1 for every ¤4 that taking on new staff costs an employer. The plan contains a number of other measures.

I am a member of the Oireachtas committee on jobs, which produced a report in the past two weeks on the question of unemployment with particular regard to youth unemployment. The report made a number of recommendations, one of which related to the youth guarantee. We are re-organising training programmes and establishing SOLAS and new further education training boards.

The issue of apprenticeships arises time and again. We have probably gone too far in one direction, losing an important element as we did. The system needs to be adapted. Many people have attended the committee's meetings to explain that we have lost our emphasis on manufacturing. That sector presents a significant opportunity for youth employment. We also recommended the use of a social clause in all contracts issued by the State.

The private sector is doing much, but could do more. The food and grocery sector is supporting young people by providing work. Part-time work is better than no work. The jobs intern programme has been beneficial for young people. It met with some criticism at the beginning, but the results have shown that young people are actively engaging with it and welcome the opportunity. It provides them with essential skills that they would not otherwise have. More than 50% of them are staying in employment in the businesses in which they interned or elsewhere.

We can undertake many initiatives with the support of our European partners. The successful community employment, CE, scheme was expanded in the last budget. It is important, in that it gives people a sense of empowerment and valuable experience. In return, the community benefits.

My time is short. The final part of Ms Costello's contribution was interesting. She discussed how the deprivation fund was utilised. I was unaware of it. I support her comments on the social pact. Ireland has done well and advanced a great deal in Europe, but having targets helps, as does having someone to create initiatives. If we sign up to a pact, nine times out of ten we respond. I would be interested in Ms Costello's further comments on the matter. I look forward to the situation as it develops. I thank Ms Costello for her contribution.

Feargal Quinn (Independent)
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I call Senator Moran, who has five minutes.

Mary Moran (Labour)
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The Acting Chairman caught me unawares. I welcome Ms Costello, or Deputy, as she has told me.

Michael Mullins (Fine Gael)
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Senator Moran has never met her before.

Mary Moran (Labour)
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Never. I welcome her to the House and congratulate her on her appointment last year as a Member of the European Parliament, MEP. I know her long and distinguished career prior to that appointment. For 20 plus years, she was a Dublin city councillor who campaigned long and hard for the rights of the people of Dublin. She was probably one of the city's most effective lord mayors. I am delighted to hear today that she has recently been appointed rapporteur to the European Parliament on the draft EU regulation proposed by the European Commission to establish the ¤2.5 billion fund for European aid for the most deprived, or the feed fund as she called it. The fund will provide food and essential goods to deprived people, the homeless and children between 2014 and 2020. She stated that it would take over from the food distribution programme, but I would appreciate it if she would elaborate on the progress of this important initiative to date and on when we can expect its definitive adoption by the EU. I believe that it will come into effect in 2014.

That will be a full 12 months so could we be provided with more specific details on when exactly it is expected to be implemented?

We know the purpose of the European Union is to promote peace, its values and the well-being of the people. In agreeing the EU 2020 strategy in 2010, EU member state governments specifically set the task of reducing the numbers in poverty or at risk of poverty by at least 20 million by 2020, as has been mentioned. The fund is very welcome as it will replace the current food distribution programme, and I welcome views on how the fund will continue the task of reducing poverty and its effectiveness in doing so.

What will be the immediate tasks as rapporteur over the coming months and how important will be engagement with non-governmental organisations, NGOs, and specifically those which work with and on behalf of people living in poverty, the homeless and children? What important role will be played by the Minister for Social Protection, Deputy Burton, as the incoming chair of the social affairs council?

I read recently that Ms Costello held a public information seminar in Dublin recently for the Irish NGOs interested in the new fund, which is very good. We must get to the heart of people who will be involved, as that is essential for any initiative to be successful. There must be communication. How effective was the seminar? In Ireland, over 300,000 people were suffering from severe material deprivation in 2010, which is a hard statistic. Ms Costello mentioned that this is a European fund but how can Ireland expect to gain from the fund? How difficult will it be to meet imposed deadlines?

The witness referred to the opposition seen in some countries. I agree that measures like this fund are needed more than ever as more people slip into the poverty trap because of the current economic crisis. I agree with Commissioner Andor's recent words in indicating that the fund is an expression of Europe's solidarity with its most vulnerable citizens and will provide them with relief and hope for a better future. I wish Ms Costello continued success in working with all sides to ensure the success of these ambitious new EU initiative. I may be slightly biased but I have no doubt that she is the right woman for the job.

I will briefly mention the proposed youth guarantee, and I appreciate how hard Ms Costello has worked on it. As she indicated, it is a topic on which she has spoken most since her appointment to the European Parliament. There were worrying figures reported yesterday of 27.7% of people under 25 being unemployed, and Ms Costello has referred to how youth unemployment can affect the young, both in terms of getting employment after being unemployed for a long period, and also from a health perspective. I particularly worry about the mental health issues with being unemployed for a long time. I am a mother of three children in third level education and welcome the youth guarantee, which will facilitate some form of apprenticeship, further education or a job offer within four months. That is vital and a youth guarantee is the best way to tackle employment. I also like the way the process will be person-centred rather than just offering a random course.

Katherine Zappone (Independent)
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I welcome Ms Costello. Although I do not have the filial bias of Senator Moran, Senator van Turnhout and I agree that she has certainly hit the ground running. Senator van Turnhout apologises but as she has indicated, she had to return to her committee, although she will be in touch if she is unable to return to raise her own question. I am most impressed with the way Ms Costello, has already outlined the work she has taken on in such a strategic and comprehensive fashion.

I am delighted and thrilled to hear about her commitment to and vision for what is called "a binding social pact", as she noted in her conclusion. There was also mention of the importance of identifying the objectives of a regulatory and monitoring framework in that regard, which is absolutely crucial. I have been trying to identify the importance of this at an Irish level because of the all-consuming focus on the economy, which is necessary to certain degree. I know Senator van Turnhout and perhaps others in my group would be very keen to know a little more about the subject and are committed to working on it at a European level.

Senator Moran and others welcomed the appointment of Ms Costello as rapporteur for the draft EU regulation to establish an EU fund for European aid to the most deprived. She noted the importance of the fund being implemented through dialogue or shared management with NGOs and public bodies as partner organisations. Many of us were present when former US Secretary of State, Hillary Clinton, gave a public address in DCU a number of months ago on the frontiers of human rights. One of the key conclusions of the speech suggested that a human rights approach must initiate a strategic dialogue with civil society in the context of developing countries. It may be interesting to consider the idea.

I welcome the remarks of Ms Costello and the commitment of the Minister for Social Protection, Deputy Burton, with regard to the social investment package being developed in the European context. With regard to what is currently ongoing, that social investment largely means social protection, which is good. Recently, the Seanad had a third public consultation planning for social change and innovation. There were a number of groups before it, including Change Nation, Ashoka and Social Entrepreneurs Ireland, representing their views. In that context, I understand there has been some lobbying and encouragement for the development of a social innovation fund within the European budget. Has there been any movement in that regard?

The European Union has recognised the significance of the social innovation sector with entrepreneurship, which has been identified by the Commission as one of the 12 levers to boost growth, strength and confidence, revitalising the Single Market. We can conclude, as a Seanad having listened to the evidence of those incredible organisations operating in Ireland and throughout Europe, that if there is investment in social innovation, it would help stem the tide of poverty and create employment for our youth. Is there a possibility that the social innovation funding will come about?

Sean Barrett (Independent)
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I welcome Deputy Costello. The first person speaking in this series, Mr. Gay Mitchell, MEP, indicated that this process is probably the closest form to European-style interaction, and it can be contrasted to the adversarial system in the Dáil. I hope Ms Costello feels at home, as people are discussing ideas here rather than calling for resignations. I will certainly not be doing that.

The numbers provided were graphic, indicating 23.4% unemployment among young people in Europe. The rate is above 50% in Spain and Greece. That is the first issue to be considered. A fixed exchange rate with Germany will cause massive youth unemployment in Spain, Greece, Portugal and Italy.

I realise that to look at the presence of those countries in the euro would involve loss of face for bankers, the bureaucrats and so on but I much prefer that to loss of jobs, particularly by young people. That policy may have to be reassessed. It is difficult to see what can happen to Greece with a fixed exchange rate with Germany with 50% of young people bearing that burden.

In assessing the budget, the Common Agricultural Policy, CAP, must also be questioned. Ms Costello mentioned the food needs of people. One of the purposes of the CAP is to maintain food prices and I derive no satisfaction from UK studies that found that large landowners and aristocrats are the major beneficiaries of the policy because they own more land than others. In pursuing goals, significant Structural Funds and some European Investment Bank money was spent but even with the grant included, it adds more to the debt than to output in the state. A stricter assessment of what some of these proposals accomplish is needed, given the dire situation that all member states are in, and Ireland more spectacularly. Such pump priming projects work better when a state's debt to GDP ratio is 20% or 25%, not when it is approaching 100% as it is in most member states.

The youth guarantee schemes are most interesting because the burden has been imposed so heavily on young people. Ms Costello mentioned the 27.7% youth unemployment rate in Ireland. The onus must be put on employers to create more internships and to bring young people in from the margins to experience work. Senator Quinn referred in his book to a man who began a career operating the trolleys in supermarkets. A job leads to another job whereas unrequited or one-way social welfare payments do not lead to anything and build up dependency. We do nobody a favour by giving him or her a payment on condition that he or she does not do anything else and can go to play pool or something else. We must have something better to offer as a reciprocal benefit to the recipient while retaining the cash payment because they have to live as well.

The Minister for Social Protection has drawn our attention to a particular problem. A habit developed during the boom era of putting people on disability and invalidity payments as a consequence of which Ireland has more households with nobody in employment than anywhere else despite spending more on child benefit. Reforms that will improve the lot of our youth by helping them to live in a house where there is at least one worker would be immensely valuable to us. Internships lead to something and the dead end of welfare payments, including those for illness and invalidity, must be addressed.

Is there a way to tackle the language problem in the Union? Ireland suffers from being unilingual and that has been exacerbated recently. Economically, we are in the EU but, linguistically, we have never joined. Should schemes of assistance from Germany and France include French and German people travelling to Irish schools to help improve the employability and the workability in the market? Ms Costello's contribution has been stimulating and I wish her every good fortune. We need to turn Europe around. She pointed out the targets but since the onset of the banking crisis, we have been going in the wrong direction. Sometimes I do not hear enough radicalism from Europe, though I do not refer to her in this regard.

Kathryn Reilly (Sinn Fein)
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I join my colleagues in welcoming Ms Costello to the House. It is apt that we are discussing employment and social inclusion this week following the agreement that has been reached on the youth guarantee at today's EPSCO meeting. EUROSTAT released interesting statistics earlier this week relating to social inclusion. The economic crisis, which has stripped away many social welfare rights, is contributing to a widening poverty gap between member States, the European Commission has said, and the worst affected are young people, unemployed women and single mothers in member states predominantly located in the east and south of the Union. The European Commissioner with responsibility for employment, László Andor, said in Brussels on 8 January: "Most welfare systems have lost their ability to protect household incomes against the effects of the crisis."

Indeed, Irish children and working age adults are more at risk of poverty or social exclusion than children elsewhere in western Europe, according to EUROSTAT data released earlier this week. These figures show Irish children are more likely to face social exclusion and financial poverty than their counterparts in 22 of the other 26 member states. A total of 38% of Irish under 18s are most at risk of one of three forms of poverty or social exclusion by living in households with incomes below 60% of the national median or households where people are unable to pay bills on time or households where adults have paid work for less than 20% of their available time. When people among all age groups are taken into account, 29.9% are at risk of poverty, which is well above the EU average of 24.2%. These are damning statistics. How, while holding the Presidency, do we move towards social inclusion in Europe when there is such rampant social exclusion in our State? How can we move towards leading by example and reducing poverty levels? I acknowledge we are in a bailout programme and all Departments are subject to cutbacks but given how important social inclusion is and that we are holding the Presidency, how can we bridge the gap?

The EPSCO meeting earlier agreed the youth guarantee package and the timing is perfect, given the alarming unemployment figures throughout the EU. The headline figure of 11.7% is bad enough but it is important that we highlight the sharp increase in long-term joblessness, which is more concerning. We need to address it as a matter of urgency when one considers that 45% of the Union's unemployed have been out of work for more than a year and, in eight countries, that percentage increases to more than 50%. In the foreword to its winter forecast, Marco Buti, head of the Commission's economic directorate, acknowledged the grave social consequences resulting from the unemployment crisis. The Commission paper conceded that long-term unemployment is associated with lower employability of jobseekers and lower sensitivity of the labour market to economic upturn. Where do we go from here in funding the youth guarantee and so on? How do we make sure the guarantee is properly resourced? Will we have to match funding? How do we make sure that is done? The guarantee provides for training and further education places and internships but how do we guarantee integration into the labour force? We do not want cheap labour when the recession is over. We need sustainable jobs for young people, which are socially and legally guaranteed, as well as the minimum wage and education and training.

Caít Keane (Fine Gael)
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That concludes the opening contributions and, therefore, we will proceed with questions.

Michael Mullins (Fine Gael)
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I join others in welcoming Ms Costello. Her political experience and achievements go before her and they are well known among everybody involved in politics here over the past number of years. She was successful as Lord Mayor of Dublin and she was responsible for many achievements. She referred a number of times to the ¤2.5 billion in Union aid for the most deprived and she is rapporteur to the relevant committee.

Part of that fund is to address homelessness. In most of our major towns and cities there are issues of homelessness. Does Ms Costello see any opportunity for local authorities to access some of that funding to address the issue? It is depressing and distressing when walking the streets of the capital city any morning to see the number of people who are sleeping in doorways. That happens also in Galway city.

My second question relates to the European youth guarantee which will provide jobs or further education and training or apprenticeships. Ms Costello, MEP, is probably aware that the Health Service Executive and the Department of Health had a scheme that would have provided employment opportunities to 1,000 nurses, yet the unions encouraged those young people not to take up those positions because they considered the starting salaries were not of a sufficiently high level. Could the European youth guarantee scheme, and what we are hoping to do, run into difficulties if we do not get buy-in from the various unions? I would like to hear her opinion of the advice given which I think was misguided as we all have to lower expectations. The chance to get one's foot onto the employment ladder was a missed opportunity for some. They got bad advice.

Ivana Bacik (Independent)
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I warmly welcome Ms Costello to the House. We have soldiered together on many campaigns in parts of Dublin, most recently in Sandymount on the European treaty referendum where we did a very good canvass. I pay a personal tribute to her dedication, hard work, commitment to political change, commitment to the Labour Party and her work to represent the people of Dublin at European Union level. She has done tremendous work. I am particularly pleased that she should come before the House on the day the European youth guarantee agreement has been made. We have all just heard the good news on that issue. It is wonderful news that at last there will be a commitment at European Union level specifically to tackle the devastating figures on youth unemployment, about which Ms Costello has spoken so eloquently. I have one question. From my reading of the European youth guarantee I note the impressive figures on how it works in Finland, where it has been well established. How does it work in practice and what are the practical changes for young people on the dole and who see no prospect of employment and who are considering emigration? How will it work in practice to impact on those young people?

Feargal Quinn (Independent)
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I welcome Ms Costello to the House. I thank her for saying those nice words about the House. We hope we are here next year and the following year to honour those. I have a couple of questions, one of which relates to safe food in Europe. Is there a danger, particularly after what has happened with the discovery in Ireland of the horsemeat scandal, that the image the European Union has of creating safe food has been damaged and that we are lagging behind other parts of the world? May I tag on to that the possibility of a free trade agreement with the United States because of the very large subsidies that farmers in the European Union get from CAP? Given the ban in the European Union on major American imports coming into Ireland, how can we manage to ensure there will be a free trade agreement? Is that likely to happen? The ban on beef and certain chicken products coming into the European Union makes it very difficult because we have been protecting ourselves on that basis.

My other question is on SMEs and the late payment directive from the European Union. The SMEs believe that the late payment directive will damage the Irish position. We have the latest payments in the European Union given that it takes 66 days to get paid. The new directive requires that payment be made within 30 days but not later than 60; that actually means 60 days. Anybody who is paying will say they are okay for 60 days. Does Ms Costello, MEP, believe EU legislation, such as this, adds to the cost of operating businesses in the European Union?

Aideen Hayden (Labour)
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I welcome Ms Costello to the House. We are living in very different times. I can remember a time when people used to speak about going over to Europe. Here we have a member of the European Parliament appearing before the Seanad. I hope the other House will take a leaf out of our book. It is good to see that greater engagement with the European Parliament. My question is somewhat philosophical. I agree that we need to move more rapidly towards a social Europe. That is important for a number of reasons, not least in terms of the overall competitiveness of the European Union. There are a number of welfare models within the European Union. There is the social democratic model in northern Europe, the residual model in Ireland and the UK, the southern European model in southern European countries and there is an even more different model of social welfare and overall welfare provision in the eastern European countries. If we move towards a more cohesive social Europe, will the European Union work towards a baseline of social supports along the lines of the front end engineering design, FEED, project in which Ms Costello is engaged, which is very much about support for the most needy in society, or is there scope in the context of environmental policy to move towards more consistency of supports between European nations? That is important in the context of overall competitiveness because, like environmental policy, if one country offers only minimal supports and others offer more gilt-edged supports it does have an impact on the type of economy that emerges on the other side.

Colm Burke (Fine Gael)
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I wish to touch on a different matter, the Palestinian issue. I understand Ms Costello has an involvement in that issue in the European Parliament. As one who has visited Gaza, I have raised the issue on a number of occasions. At what stage is the European Union in its efforts to find a solution to the problem between Israel and the Palestinian community? I am particularly concerned about the sale of arms and equipment by EU states to Israel. I am sure that is happening to other countries who may be indirectly involved in the conflict there. What progress has been made in dealing with that issue? While there is a continual supply of arms and equipment we will not make any progress in bringing about a solution. Some 1.5 million people are locked into a small section of land where no progress has been made for the past 15 to 20 years.

Susan O'Keeffe (Labour)
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I welcome Ms Costello to the House. Many Members, particularly Senator Colm Burke, and to lesser extent myself, have been calling for a closer alignment with the activities of the European Parliament. We have not succeeded with the legislative side but certainly having Ms Costello and her fellow MEPs appear before the Seanad is welcome because it means we are trying to reach out and bring the affairs of the European Parliament closer to home. Her speech about the social investment pact was most welcome. Is it impossible to imbed it, as she described it, just from a European Union level? How does one reach out and get support from national governments as it will never come from a European Parliament standpoint, important though that is? In regard to the European youth guarantee she mentioned the potential for pilot projects quite soon. Does she have her eye on certain projects or has she certain projects that she believes would work to prove that the guarantee is real and not just a banner for politicians to fly to say: "Look at what we have done, is not that great"? or "Look, there is the European youth guarantee and it actually does something".

I feel sure that given her passion for the issue that there are probably projects that she has earmarked or consider would be a good model to prove its potential impact.

Caít Keane (Fine Gael)
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I thank all Senators who have asked questions. I ask Ms Costello to respond. She has a wide portfolio. It is even wider than her own brief. One has to be an expert on everything when one comes to the Seanad. I thank her. We appreciate what she is doing.

Ms Emer Costello, MEP:

I thank Senators for their comments and questions. I found the debate stimulating and interesting. It reflected on various aspects of my work. I will go through the questions and answer what I can. If I cannot answer I will revert to the Senator who asked the question with additional information. I will answer questions in the order in which they were asked but there may be cross-over on some issues raised.

Senator Leyden and Senator Colm Burke raised the issue of Palestine. I am aware of the Seanad?s strong tradition in monitoring what is happening in the Middle East. When I was in the West Bank recently a number of people from Fatah inquired about former Senator, Mick Lanigan. They remembered him fondly. That was a good experience. I would welcome the opportunity to meet with the Friends of Palestine and to update it on events.

The situation in Palestine is serious. I am fully supportive of a two-state solution whereby Israel should be allowed to live freely and securely within its borders, but equally that the Palestinian state has the right to self-determination and that Palestinians have the right to statehood. That was endorsed recently by the important vote at the UN where it was accorded non-member observer state status. Only one European country opposed the decision, namely, the Czech Republic. It is interesting that Europe facilitated the decision. It is the start of the recognition of Palestinian statehood. A huge body of work remains to be done in that regard. The window of opportunity for the two-state solution is narrowing all the time. As we are aware, the Israelis have retaliated with the idea of expanding the settlements in the E1 area just outside Jerusalem. I have been there and I have seen the settlements. I have been to Ma?aleh Adumim. The expansion of the settlement in the E1 area will effectively divide the West Bank in half and it will mean that a contiguous Palestinian state will not be possible. We must monitor the situation. I have been briefing the Tánaiste on the issue.

We still have to see how the new Israeli Government will evolve. It has not been fully formed yet. It is evident from the election results that Israelis voted on many different issues, including social issues. Not all Israelis are preoccupied with the Palestinian conflict. It is important that we appreciate that fact. I was in Israel in October when I met with many civil society organisations and we discussed issues other than the Palestinian conflict. We could spend a long time on the issue. As other speakers have said, the EU must not just be a payer. We are the largest single donor to the Middle East and to Palestine. If we are going to be a payer we must also be a player. I do not believe we are achieving our true potential. I have raised the issue with Baroness Cathy Ashton, the High Representative, in the European Parliament on numerous occasions. I would be happy to send Members the speeches I have made and what I have said to Baroness Ashton in that regard. The EU could play a strong role.

I understand a new initiative is under way. Baroness Ashton is committed on the issue. We must accept that Europe is in a difficult position, as is Baroness Ashton, because while there is talk of Europe speaking with one voice we are 27, soon to be 28, member states and we do not speak with a unified voice on the Middle East. That is a cause of concern. Sometimes when she is criticised it is because she cannot articulate a view in the absence of a unified approach from member state governments. We must take that on board in terms of the EU response to the issue. There are complexities involved. I would welcome the opportunity to discuss the matter with some of the committees.

A number of questions were asked about the EU 2020 strategy and the youth guarantee. The youth guarantee is not a cure-all. It will not end youth unemployment. We are not pretending it will. We are saying there is a crisis of youth unemployment in Europe where the average level is approximately 24% but some countries have 50% to 60% youth unemployment. It is crucial that we deal with the issue. We have seen the experience in countries that implement a youth guarantee in that there are low levels of youth unemployment. There is an opportunity at European level to introduce a project that would take that on board. A total of ¤6 billion has been set aside for youth opportunities and youth employment initiatives in the MFF. In the Parliament we believe that it should be more. The sum of ¤3 billion is coming from the social fund and an additional ¤3 billion will be provided.

A few Members referred to the JobBridge scheme and the positive experience with it. I accept there is concern about internship programmes. On the one hand we have the youth guarantee and on the other we should have a quality framework for internships and traineeships. That would ensure the trainees and interns would not be subject to abuse and that proper monitoring would be put in place. JobBridge is a good model that perhaps other countries could follow. Significantly, we have seen that 60% of participants in the scheme move on to employment. However, we need a quality framework. I recently attended a conference in the European Parliament on youth unemployment. The room was full with 400 young people in attendance. The moderator asked how many young people had done one internship. A total of 99% of those present put up their hand. When asked how many had done two, the result was 95%. More than half of those present indicated they had done up to five internships. It is not acceptable that we have that level of internships. Sometimes my own institution, the European Parliament, makes great use of interns, who are often unpaid. That is not acceptable. In the European Parliament we must ensure that we have guidelines and a code of practice on internships. The youth guarantee is one piece of the jigsaw and I very much welcome it. It is fortuitous to be present in the Seanad on the day the youth guarantee is announced and is coming to fruition. I agree with Senator Reilly that we need to have jobs for young people and that we must train them and upskill them. However, one must also ask where they will go when they finish their apprenticeships and training. We must also be able to move young people from training and internships into jobs.

We must achieve sustainable growth in the European economy. That is why I believe the European budget should not be seen as a measure of expenditure and that countries fight each other and say they will not put money into the European budget. They should see that contributing to the European budget is an investment in growth not an expenditure item. We must hammer home that message. That is why the European Parliament is concerned about the budget before us. We accept there were a lot of negotiations and that what was agreed on 8 February was the best deal that could be achieved but we in the European Parliament have major reservations both about the amount in the MFF and also some of the content and how the MFF is to be structured and delivered in the next seven years.

We have given our group leader, Johannes Swoboda, a mandate to negotiate on our behalf. Senator Clune mentioned the Oireachtas committee on jobs. The European Parliament Committee on Employment and Social Affairs met in Dublin in early February. To answer a question asked by Senator Bacik and others, we discussed the youth guarantee and how and where it could be implemented. The committee met representatives from Ballymun jobs centre. The work being done in Ballymun is hugely impressive with regard to regeneration and involving people from the community at all levels of life. A life-cycle approach is taken in Ballymun. From the time a woman announces she is pregnant, she is taken on board by the various services. It is an integrated approach so that when a baby is born, the mother has the supports. As the child progresses through child care, preschool and school, an integrated approach is taken, including looking after after-school care and health care. As the young person develops and evolves, youth activities are also integrated in the approach of youngballymun. I was hugely impressed with the programme. Ballymun jobs centre ties into it, which provides support to those seeking work. The committee was hugely impressed with what it saw.

We also visited the Digital Skills Academy and saw the types of activities it does. Many future jobs can be created in new media and intranet technology. I will host a conference and exhibition in the European Parliament next Tuesday, which will be opened by Máire Geoghegan-Quinn, the Commissioner for Research, Innovation and Science. It will showcase Dublin as a smart, innovative, creative and connected city. Dublin City Council will be there as will Intel, the DCU Ryan Academy, TCD and IBM Smarter Cities. Some Senators referred to the fact that when I was Lord Mayor, one of the areas I prioritised was Dublin as a creative, innovative, outward and forward-looking city.

I made a submission to the joint committee on jobs and we examined the youth guarantee. I very much welcome the work of the committee and the support we have received from its members. Deputy John Lyons has been very active on the issue.

Senator Quinn mentioned safe food and asked whether we have been tarnished. The European Parliament looked awry at the situation unfolding in Europe. I understand that two years ago, the European Parliament came up with proposals on food labelling and dealing with the origin of goods, particularly mixed goods, but the Council did not agree with them. The European Parliament is not taking any pleasure in what is happening, but it did indicate it could be an issue.

Senator Moran asked a number of difficult questions, as is her wont. With regard to the food programme we are engaging very much with non-governmental organisations. I held a European Parliament seminar here on 8 February with approximately 100 attendees, many of which represented non-governmental organisations. I engaged widely with NGOs at European and national level. I also met German, French and Belgian NGOs. Many of the amendments I submitted took on board the issues they had brought to my attention.

For the report to progress through the European Parliament I will examine the amendments to try to see whether we can table compromise amendments and bring them to committee. Amendments will be considered in March. We will also examine compromise amendments then and see how we can work with our shadows in the other groups. The European Parliament is a wonderful place because it is not adversarial. It is a bit like the Seanad.

Caít Keane (Fine Gael)
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Not all of the time.

Ms Emer Costello, MEP:

We work in committee and with each other. Ms Marian Harkin, MEP is my shadow on the food report. We work in co-operation and table amendments, after which a proposal is taken to Council.

An issue I raised in my report was the requirement of co-funding for food whereby 85% is financed with co-funding of 15%. My report proposes withdrawing this requirement on the basis that the charities involved in the programme leverage so much additional funding themselves from the work they do. They are able to target various areas. I visited Crosscare and saw its food bank. I met Healthy Food for All. Duncan Stewart did an "Eco Eye" programme on food waste. The programme in which we are involved will tie in with many policies on food waste. A huge amount can be achieved.

We are not out of the woods because there is a blocking minority with regard to the programme. This goes back to the idea of the social pact and how it works, which relates to the questions asked by Senators Zappone and Hayden. The Europe I believe in is one which is socially cohesive. The Single Market is not an end in itself; it is there to serve the people of the European Union. We cannot have a truly proper Single Market unless we have social cohesion. I have been debating this in the European Parliament with members from other member states who do not believe it is the business of the European Union to give food aid to European citizens. I do not believe this. We must reach out to those on the margins.

It is not just a question of giving out charity and this is the problem we had with regard to most deprived persons when only intervention stocks were used. I know people who were grossly insulted to receive cheese stamped as being donated from the European Union. I met organisations who asked how they can give such food parcels to people because their children would open the fridge and see they have intervention cheese. It is terrible. We want the programme to follow a socially inclusive model whereby we do not just give food aid but use it as a way to bring people in and ensure social inclusion measures are taken so people are able to climb to the next rung on the ladder by being able to participate in European Social Fund, ESF, job incentive programmes. The ESF will not look after people at that stage. The food programme is fundamental to what the European Union is about and social cohesion.

Senator Barrett asked whether a common currency is possible and sustainable and whether Greece should be at the same level as Germany. I do not agree with his premise and I do not believe if Greece is cut free from the euro it will somehow save Greece from any more problems than are being experienced at present. The best thing we can do is show solidarity with Greece.

As we have done to date, we must pull out all of the stops to ensure that it stays within the eurozone and support it from within the EU. We must not cast it out or other countries that experience difficulties will go out of the Union. That is not what European solidarity is about.

The Senator's position is advocated by my European Parliament colleague, Mr. Nigel Farage, MEP, with whose remarks on this matter I take major issue. The Senator is not starting at the right place. Greece is facing serious problems. Indeed, its youth unemployment rate is almost 60%. We are also facing serious economic issues, but the stories from Greece are heart-breaking when my colleagues and I discuss it alongside the Spanish and Portuguese situations.

One of my Portuguese colleagues told me of a recent opinion poll. Let us remember that Portugal is a new and emerging democracy, one that has come out of dictatorship within living memory. In the opinion poll, people claimed that they were not disillusioned with politics, their politicians or their Parliament, even though they were. What they were most disillusioned with was democracy. The army stated that it did not overthrow the generals for this situation. That democracy is being undermined is serious.

For this reason, Europe must be seen as part of the solution. The EU can only do so by showing solidarity and promoting social cohesion through the development of the types of idea about which I have spoken today. We have various programmes, for example, the Structural Fund, the Cohesion Fund, the European Social Fund, ESF, and the aid for the most deprived, but we also need a social agenda. The EU is correct in that we need financial rules and we must work within a stable economic framework, but we must also work towards social cohesion and solidarity. We cannot advance the Single Market unless we have a level playing field for all. Ireland has benefited considerably from many of the programmes in question. We can continue to play a role in them.

Senator Reilly asked how Ireland could hold itself up as an example of good practice and hold the Presidency, given its figures. Senator Leyden will bear out my next point. We had an interesting interparliamentary discussion on the European semester two or three weeks ago at which there was a good interaction between national parliaments and the European Parliament regarding the future of Europe. This is how it should be.

There are high expectations of the Irish Presidency. So far, it has gained a reputation for being efficient and business-like and for getting the job done. It is expected that we will be able to deliver on a number of the dossiers currently on the table. When we reach June 2013, a period of electioneering will begin, as the next European elections will be held in June 2014. There will also be a new European Commission. It is important that the Irish Presidency gets the job done before the last year begins. As parliamentarians, Senators understand how the process works. Our Presidency is working towards this aim. The Irish Presidency is taking a leading role.

Senator Quinn asked about trade with the US. When I met the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, he explained that the free trade agreement with the US was one of his key priorities for the period. Much needs to be negotiated. The European Parliament will play a strong role in the oversight of a free trade agreement with any country.

A number of other issues were raised. A question was asked on whether we could establish a humanitarian aid corps to work in the developing world. A few weeks ago, the Committee on Employment and Social Affairs delivered an opinion on such a proposal for the Union. I will send the Senator the report.

Senator Quinn asked whether I believed that the late payments directive would impact negatively on Irish businesses. My experience is that Irish small and medium-sized enterprises, SMEs, are seeking the application of the late payments directive. It will apply a penalty or interest to companies that do not pay on time. In these straitened times, it is important that struggling SMEs receive their money. Many of the representations that I have received have been for the directive's implementation. I will investigate into whether other issues obtain.

Last week, the European Parliament discussed SMEs and the extra ¤10 billion from the European Investment Bank, EIB. The bank should make money available to SMEs and will do so under a programme from 2014.

The language barrier is an issue that is close to my heart. I worked for ten years in Léargas, which manages many of the EU-funded educational programmes in Ireland. I was responsible for developing language projects with schools, sending language assistants abroad and bringing language assistants to Ireland. It was a rewarding programme. Many of the schools and teachers involved found it useful.

Surprisingly, there are many linguists in Ireland. The problem is that, in many ways, English is the lingua franca. Often, people must speak English at meetings even where no translation is available. I speak French, which is an advantage, but holding a conversation in French can be difficult because people prefer to speak English. One must work with that preference. My French was useful in my negotiations with many of the French NGOs that I visited, for example, Restos de Coeur, which I visited in Strasbourg. I was able to speak to many people because I had the language. Languages are important. For this reason, I will support the new Erasmus for All programme or whatever it is called. I am not dying about the name. Its budget needs to be fit for purpose. I would hate this year's experience to be repeated, as we ran out of money for national agencies and students before we resolved the situation. I am glad that the European Parliament played a strong role in that resolution.

I have covered most of the issues raised by Senators. I went around the House thematically. Senator Zappone asked whether we could ensure the social pact would be socially binding. We must put the same rules in place for social legislation that we do for economic legislation. I welcome the fact that the social investment pact launched by Commissioner Andor last week is the start of that process. I hope that the Council can develop the process by June.

The final question was on a matter dear to my heart, namely, the reduction in the number of seats. The proposal on the table is that Ireland would lose one seat at the next European elections. Although the proposed reduction is a result of Croatia joining the EU, it is also a result of the Treaty of Lisbon, under which there can only be 751 seats in the European Parliament. Croatia will have 12 seats when it joins in June, but it will automatically lose one as well.

In my view, Croatia and Ireland are not being treated fairly under this proposal. The principle of "digressive proportionality" is to ensure that smaller states retain a larger number of seats in order that they can actively participate. In future, Ireland will have 11 seats, which equates to one MEP per 417,000 people while Finland and Slovakia will have 13 MEPs, which equates, respectively, to one MEP per 413,000 and 415,000 people. There is very little difference between Finland and Slovakia. I believe the number of seats allocated to Ireland is disproportionate. There will be 751 MEPs in the European Parliament. The report commissioned states that Germany should lose three seats, because up to now it has been overly represented, and that no other country should lose more than one, with which I agree. In my view, Ireland should not lose a seat. Ireland and Croatia both have a population of 4.5 million people. Despite massive emigration, Ireland has one of the fastest growing populations. As such, it should retain all its seats. I proposed that Italy and Austria should lose seats. While Austria will lose one seat, Sweden rather than Ireland will benefit.

The matter will go before the European Parliament in March and will be voted on there. As the report was voted on at the Constitutional Affairs Committee, it is unlikely that decision will be overturned. I believe it is not in Ireland's interests to have fewer MEPs. Irish MEPs serve on a large number of committees. Even with 12 MEPs and the best will in the world every committee is not attended by an Irish MEP. I have given the Seanad a snapshot of my work on the Employment and Social Affairs Committee. This level of work is duplicated by the 30 plus other committees. We have only 12 MEPs to cover all committees. To be at the heart of Europe requires us to be at the heart of decision-making. We should be involved in committees and making the decisions. As I said, the matter will soon go before the European Parliament. As a Council member, Ireland, like all other Council members, will have a veto on it. I understand that the Council proposes to accept the Parliament's recommendation. We will probably be left with 11 seats, following which there will be a rush to do a constituency revision. It is unlikely there will be any two-seat constituencies. I envisage we will be reduced to three-seat constituencies, which is unfortunate. While I will continue to oppose this, once the deal is done we will have to move on.

It is important to say also that quantity is not always enough. We must have quality MEPs.

Mary Moran (Labour)
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Well said.

Ms Emer Costello, MEP:

We must have strong representation in Europe. I hope Members will agree, based on what I have told them today, that I am trying to provide effective and strong representation for Ireland in Europe.

Paddy Burke (Fine Gael)
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I thank Ms Costello, MEP, for her fine contribution and responses to Members' questions. When is it proposed to sit again?

Maurice Cummins (Fine Gael)
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At 2.30 p.m. on Tuesday, 5 March 2013.