Written answers

Tuesday, 2 February 2010

Department of Enterprise, Trade and Employment

Unemployment Levels

12:00 pm

Photo of P J SheehanP J Sheehan (Cork South West, Fine Gael)
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Question 118: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the measures she is taking to address the unemployment crisis in the mid-west region where unemployment is running at 13.8% which is 1% above the national rate; and if she will make a statement on the matter. [4930/10]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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Last February I established the Mid West Region Task Force, to consider and make recommendations concerning the implications the economic downturn was having on the region. The rising unemployment rate in the region is one of the key issues the Task Force is examining. I have received the Task Force's Interim Report and last week I made a detailed Statement to the House on how the Government was responding to the Task Force's recommendations.

The key measure enacted is that a multi-agency response to the Dell-related job losses has been taking place at two levels. The first level focuses on providing information and support services to individuals facing unemployment. The second level includes the delivery of specific initiatives to indigenous sub-supply companies in the Mid-West to explore alternative markets, products and business opportunities.

These measures will now be continued and expanded up to September 2011 under a successful application, which I made last June under the EU's European Globalisation Adjustment Fund. This application has been approved at EU level and is already being put into effect. Under this application the EU will co-fund the delivery of a personalised package of occupational guidance, training, employment, entrepreneurship and educational measures for 2,400 redundant workers.

At a national level the Government has enacted several measures and substantially increased the resources to assisting the unemployed. For instance, we have almost doubled the job search support services of FÁS, to an annual referral capacity under the National Employment Action Plan, to 147,000 places. This year my Department will invest €781 million in the provision of training and work experience opportunities for the unemployed. This will deliver approximately 147,000 places, which is significantly higher than the 66,000 delivered in 2008.

To protect vulnerable employment, last year I introduced the Employment Subsidy Scheme. This Scheme provides subsidies to enterprises to retain their employees that may otherwise have been in danger of being made redundant. Between this year and last year, €135 million has been allocated to the Scheme and it is expected that this will either directly or indirectly support approximately 80,000 jobs.

In terms of job creation my Department's development agencies continue to seek to attract and support new projects in the Mid West region. As a result, 1,100 new jobs are now coming on stream in Limerick and Clare in eight projects approved by IDA and Shannon Development in 2008 and 2009. I have also asked the IDA in its new Strategy, to be published later this month, to make a renewed stronger effort in the regions, including the Mid-West.

The Government also announced as part of Budget 2010 a jobs stimulus measure entitled the Employer Jobs PRSI Incentive Scheme. Under this scheme employers who recruit people from the Live Register will receive a PRSI exemption for one year. I expect that this scheme in addition with the other measures I have mentioned will assist in tackling the current unemployment problem in the Mid West region.

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