Written answers

Tuesday, 9 March 2010

Department of Enterprise, Trade and Employment

Unemployment Levels

8:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 103: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps she will take to combat the downturn in the economy with particular reference to the need for an accelerated programme of job retention, job creation, incentivisation and employment schemes in an effort to provide short to medium term relief from unemployment; the manner in which she proposes to utilise the various appropriate groups, bodies or agencies directly or indirectly under the control of her Department with this objective in mind; if it is intended to introduce any reliefs for small to medium sized employers specifically to improve the competitiveness in the manufacturing and service areas; if she has identified particular issues with the objective of improving the economic situation; the benefits of any such measures in the past two years to date in 2010; the way this has been reflected in the overall employment situation; and if she will make a statement on the matter. [11407/10]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The Government acknowledges that Ireland's economy is facing many difficulties none more pressing than our high levels of unemployment. In the last two years in response to rising unemployment levels the Government has introduced a wide range of measures to combat unemployment. In the past year, to prevent unemployment I introduced the €100 million Enterprise Stabilisation Fund and the €135 million Employment Subsidy Scheme. As a result of the Employment Subsidy Scheme approximately 80,000 jobs will either directly or indirectly be supported.

Since the end of 2008 FÁS employment services together with the Local Employment Services have taken measures to double their capacity to cater for the rise in referrals from the Department of Social and Family Affairs. This means that the annual referral capacity under the National Employment Action Plan rose from 78,000 persons in 2008 to a planned capacity of 154,000 persons this year. This year the total number of training and work experience activation places for the unemployed funded by my Department will be approximately 147,000. This compares to the 66,000 places that were delivered in 2008.

Included in this increased provision I have introduced new initiatives aimed at supporting the unemployed. These include the Work Placement Programme, which aims to provide the unemployed including graduates with a work placement up to nine months in length and there are currently 2,000 places available on the programme. The Short Time Training programme that is providing training to those individuals who are now working reduced hours. Skillnets will now be providing training to approximately 10,000 unemployed or people on reduced working weeks. I also have responsibility for the Labour Market Activation Fund of €20 million. This fund will enable innovative proposals aimed at upskilling the unemployed to be supported. It is envisaged that the Fund will provide at least 3,500 training places.

In terms of employment creation opportunities in Budget 2010 the Government announced the introduction of the Employer Jobs (PRSI) Incentive Scheme. Under this scheme, where an employer creates a new job and takes on a person who has been unemployed for 6 months or more, the employer will be fully exempted from the liability to pay PRSI for the first year of that employment. In addition Ireland's development agencies, Enterprise Ireland, IDA Ireland and Shannon Development have undertaken comprehensive strategy reviews to ensure that they are in a position to continue to create and support employment throughout the country. As result these Agencies have re-prioritised resources towards those sectors in greatest need and those where future opportunities lie.

Enterprise Ireland has a focus on the construction sector, which has included a series of seminars on exporting services in this sector. I recently launched 'Horizon 2020', IDA Ireland's strategic blueprint for attracting Foreign Direct Investment (FDI) into Ireland in the coming decade. This strategy aims to attract 105,000 new jobs between now and 2015. The Government, through the Cabinet Committee on Economic Renewal will continue to review the measures available to combat unemployment.

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