Micheál Martin (Cork South Central, Fianna Fail)
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Question 165: To ask the Minister for Finance his views on whether the job stimulus initiatives already undertaken will be sufficient to ease the unemployment figures if growth rates remain between 1.6 and 1.8%; and if he will make a statement on the matter. [38472/11]

Michael Noonan (Limerick City, Fine Gael)
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As set out in Budget 2012, my Department expects the unemployment rate to gradually decline as the economy recovers. At present, the labour market is still in a weak state, as confirmed by the latest CSO Quarterly National Household Survey data. The unemployment rate is unacceptably high and people are still losing jobs. At the same time, some jobs are being created. Figures from the Department of Social Protection, show that 144,000 left the live register to take up employment last year.

I am confident that the measures introduced by the Government in May 2011, such as reducing the rate of VAT in the high value added tourism sector, have played a role in this respect. This view is shared by my colleague, the Minister for Enterprise, Jobs and Innovation, who only last week informed the House that a significant number of jobs were created in the tourism sector on foot of measures set out in the Jobs Initiative.

The Government recognises that improving labour market conditions represents its biggest challenge, and, accordingly, is giving top priority to job protection, job creation and supporting the unemployed. In this regard, the Minister for Enterprise, Jobs and Innovation will soon publish an Action Plan on Jobs.