Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 62: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps she has taken to implement the recommendations of the NESF report, Labour Market Issues for Older Workers, published in 2003; and if she will make a statement on the matter. [13869/04]

Frank Fahey (Galway West, Fianna Fail)
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The National Economic and Social Forum report — whose project team included representatives from my Department — examined labour market participation issues for older workers. Changing demographics have resulted in ageing populations in many EU countries and this poses threats for their labour markets. For each pensioner in Europe there are on average 3.5 workers who contribute to the retirement income of that pensioner. By 2020 this ratio is expected to be 2.5:1. In Ireland, the situation is less pressing. Currently the ratio here is five people of working age, 15-64, to every one pensioner aged 65 years and over and this ratio is not expected to reach 3:1 until the year 2025.

As the demographic situation changes over time the position of older workers in the labour market will become increasingly important. It will be essential that we focus on the training and employment needs both of older workers and of the older workers of the future. The NESF report's findings focus on a variety of topics encompassing training, work-life balance, pensions and employer attitudes to older workers. The recommendations are addressed to a number of bodies including the social partners, a number of Departments and their agencies. Those addressed to my Department and agencies will continue to contribute to employment and training policy development.

Many of the recommendations were reflected in FÁS Irish Labour Market Review 2003. They are also addressed in Employment Action Plan 2003, which is Ireland's response to the European employment strategy. This commits Ireland to a policy of active ageing which will be addressed in the medium to long term through changing employers' attitudes, up-skilling and re-skilling the labour force, improving flexible working arrangements and reviewing social security and tax provisions to ensure those who wish to extend their working lives can do so. The NESF report, together with an OECD thematic review of policies to improve the labour market prospects of older workers in Ireland, due to commence this year, will continue to inform policy changes in the future.