Seanad debates

Monday, 21 June 2021

Nithe i dtosach suíonna - Commencement Matters

Job Creation

10:30 am

Photo of Paul GavanPaul Gavan (Sinn Fein)
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Earlier this year, a briefing paper was produced on unemployment blackspots in the State. The CSO defined an unemployment blackspot as an electoral division whose labour force exceeded 200 persons and where the unemployment rate exceeded 27%. The results from this paper tell a shocking story of political failure to address issues of social inequality in Limerick going back 20 years. It is the front-page story of the Limerick Leader this morning.

We know that for many years unemployment has been systemic in certain parts of Limerick but this report highlights how the situation has steadily worsened even as the country as a whole enjoyed a return to economic growth. Indeed, if we did not know better, we would think that this research was exclusively on Limerick as opposed to a State-wide report.

In 2002, Limerick city did not appear in the top ten worst unemployment blackspots in the State but by 2006 it accounted for four out of the top ten areas. It worsened to a shocking seven areas out of the top ten by 2011. This latest report shows that Limerick had eight out of the ten areas with the highest unemployment rates in the State in April 2016. Its important to put these areas on the record of the House: unemployment in John's A was 58%; Galvone B, 45%; Ballynanty, 43.6%; Abbey C, 42%; Prospect, 41%; Glentworth, 40%; St. Lawrence, 40%; and Kileely, 39%.

These figures are a damning indictment of the political establishment's disregard for people living on working-class estates in Limerick city. It is especially damning in respect of long-standing public representatives, some of whom are still in office and one of whom was a Minister for Finance. The figures show that Limerick is the most socially divided city in the State. This is their legacy. Successive Governments have known the issues of disadvantage in Limerick but this most recent research highlights that things have been getting worse and not better for whole sections of our community across the north and south side of Limerick city.

It is clear that unemployment blackspots are increasing in the city and have been for 20 years. Something is seriously wrong and this cannot continue. We need new policies in place to ensure intervention by the State to give people the future they and their children deserve in terms of education, job opportunities and careers. We need targeted investment in each of these eight areas to tackle disadvantage and rebuild hope in these communities. We need to roll out new programmes of training, apprenticeships that can lead to real jobs within anchor institutions or those companies providing services to those institutions.

We need to ensure there is balanced regional development in the State. This has not been happening and the regions are declining. Specific to Limerick, we need to introduce IDA Ireland to the north side of Limerick city. IDA Ireland has rightly been lauded for successfully bringing foreign investment to Limerick but it has never brought a project to the north side of the city where many of these areas are located. Community wealth building is a policy that encourages such community development, with a much greater focus on local jobs and services. Sinn Féin is pushing this across the whole of Ireland and it is a model that has proven successful in other countries.

These polices must be put in place to start job growth because Limerick deserves better. Limerick people deserve better. They deserve better job opportunities, to grow communities and to build back better after this pandemic. The report highlights a shocking level of disadvantage and inequality in Limerick city. I look forward to the response of the Minister of State.

Photo of Josepha MadiganJosepha Madigan (Dublin Rathdown, Fine Gael)
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I am pleased to take this matter on behalf of the Minister of State, Deputy Robert Troy. I welcome the recent risk report on unemployment blackspots by the Houses of the Oireachtas Library and Research Service. This excellent research does a great job at highlighting the concentrated nature of employment blackspots. It is particularly worrying, as the Senator said, to note that in 2016, 17 out of a total of 38 electoral districts in the city of Limerick were unemployment blackspots and, moreover, that Limerick city also counted for eight out of the ten electoral districts with the highest unemployment rates in the State.However, it is also worth noting in the report that between April 2017 and February 2021, the live register in Limerick decreased by 3,482 or 32.5%, which was better that the State average decline of 29.1%. Regional enterprise development and sustainable local job creation is a key policy priority of this Government, and I note the Senator mentioned in his remarks that ensuring we have sustainable local job creation is what we must do. To this end, the Department of Enterprise, Trade and Employment is overseeing the development of new regional enterprise plans to 2024, including for the midwest. These are bottom-up plans developed by regional stakeholders including the local authorities, the enterprise agencies, the local enterprise offices, regional skills forums and education and training institutes in each region. The Department's regional enterprise development fund has allocated over €117 million across 79 enterprise-strengthening projects in every region since 2017 and the midwest and Limerick have been very successful in attracting these funds, securing just over €15 million for eight significant enterprise focused projects for the region. These funds are supporting significant collaborative and innovative regional projects that will provide a timely impetus to job creation in the midwest.

The Senator mentioned the IDA and regional development is also at the heart of its new strategy, Driving Recovery and Sustainable Growth, which is under the regions pillar. The IDA will take actions in collaboration with existing clients to drive transformation through innovation and upskilling, to develop clusters and to work with clients and stakeholders to facilitate remote working opportunities. There are 143 IDA client companies in the midwest region, employing approximately 24,169 people. The foreign direct investment performance, FDI, in the region has been consistent over the past five years, with employment among IDA clients increasing by 29%. I am confident implementing these strong actions will continue to drive down unemployment in Limerick. The midwest has a significant ecosystem of well-established companies across technology, life sciences, international financial services, services engineering and industrial technologies and it has also won significant investment in the food and film sub-sectors. We have seen, particularly around Covid, the advantages some regions have had in relation to remote working and this is something that is being looked at as well in Limerick. We have seen it in the west, for example, where IDA Ireland has a client, Shopify, which has since 2015 built a team of over 400 people who work remotely in the west of Ireland, and the company continues to grow there. The IDA will ensure both Irish and FDI firms can benefit from the changed landscape by making Ireland a better place to work remotely and by remaining agile in its approach to companies' changing needs in the particular region of Limerick.

Photo of Paul GavanPaul Gavan (Sinn Fein)
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The Minister of State has rightly mentioned many success stories around Limerick and we must acknowledge that. The IDA has done a good job around much of Limerick but it has not done anything for the north side of the city. It is a glaring failure in an otherwise good record of success across the midwest. The Minister of State mentioned a number of positive initiatives but I must say, with respect, we have heard this stuff before. More of the same policies are not going to change what is wrong in Limerick city, with respect to the chronic unemployment and disadvantage that have become entrenched in many parts of the city. I ask the Minister of State to go back to the Government with a message that policies must change and that specifically, we must embrace community wealth-building as a policy. That is where we align our anchor institutions - in Limerick that would be the University of Limerick, University Hospital Limerick and Limerick City and County Council - and ensure they do business differently to benefit local businesses, to encourage the development of co-operatives and to encourage a living wage through their procurement policies. This is the way to encourage our city for the better; more of the same simply will not work.

Photo of Josepha MadiganJosepha Madigan (Dublin Rathdown, Fine Gael)
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I thank the Senator. I hear what he is saying. I know Limerick well. My grandfather originated from Limerick. It is a fantastic city and a fantastic region.I heard what the Senator said about the north side of Limerick and I will convey that to the Minister of State, Deputy Troy. I was struck by what he said about particular black spots and unemployment in areas ranging from 58% to 39%. Those are quite stark figures and that is something we need to tackle. The Senator acknowledged IDA Ireland does considerable good work in the area and much good work is being done. The targeted investment the Senator referenced must be particularly ramped up for these regions and for the areas within the regions that are suffering more than anything else. Community outreach is integral to that and collaboration from a grassroots level up is needed to motivate people through the adoption of a multipronged approach to get people back into the work environment. We had 15% unemployment across the country during the recession but we managed to bring that down again. That is something we can do again in the Limerick region.