Committee Reports > List of Committees > Joint > 1992 > Committee on Employment > Report No. 01 - Employment

JOINT COMMITTEE ON EMPLOYMENT

FIRST REPORT

PREFACE

1.The Joint Committee on Employment was established by orders of Dáil Éireann and Seanad Éireann of 9 and 14 April 1992 respectively and under its terms of reference is enjoined:-

a)to examine and make recommendations on all aspects of economic and social policy which have a bearing on employment creation and which can contribute to alleviating unemployment and

b)to consider and make recommendations on any other issues or subjects which the Joint Committee considers relevant to its task

and report thereon to both Houses of the Oireachtas at least three times a year. (See Appendix 1)

2.Committee membership includes representatives from Fianna Fáil, Progressive Democrats, Labour and Democratic Left and one independent Senator. The sub-Committee structure includes nominees from the ICTU, the employer and farming organisations and from other relevant bodies. The main opposition party, Fine Gael, has declined to participate in the proceedings.

3.The establishment and work of the Joint Committee is without precedent. It is the first instance in the history of the State that representatives from outside organisations were invited to nominate representatives to assist an Oireachtas Committee and serve on its sub-Committee structure. In addition, no other forum comprising elected representatives of both Houses of the Oireachtas and the social partners has ever been established to consider in detail the issue of employment at national level.

4.The first meeting was held on 12 May 1992 and Dr Brian Hillery, TD was unanimously elected Chairman. Representation on the sub-Committee structure was agreed on 27 May (see appendix 2 for details).

5.It is a measure of the commitment of the participants that in the ten weeks since its inception, the Joint Committee and its sub-Committees have met on 18 occasions for over 31 hours in total and heard presentations from a variety of Government Departments and other agencies (see Appendix 3).

6.Submissions

The Joint Committee wishes to acknowledge and thank all those who have made oral and written submissions to date.

1.Improve co-ordination of job-creation, training and employment schemes.

2.Supports broad thrust of Culliton recommendations.

3.Establish an “Equity For Jobs” Fund.

4.Develop linkages further.

5.Develop job-creation potential of the semi-State sector.

6.Planned expansion of Social Employment Scheme.

7.Increase participation in Vocational Training Opportunities Scheme.

8.Develop proposals using existing resources to provide employment for the long-term unemployed.

9.Maximise the commitment of Structural Funds to Ireland post 1993.

10.Extend and improve support services for those considering migration.

11.Develop measures to encourage and support the return of well-qualified migrants.

12.Establish a more coherent internationally recognised system of certification for Irish vocational qualifications.

INTRODUCTION

7.At the end of last month, some 280,000 people were unemployed, as measured by the numbers on the Live Register. The seasonally adjusted unemployment rate stood at some 17 per cent of the labour force, compared to an average EC rate of 9.2 per cent. Unemployment has risen sharply - by some 60,000 - over the last two years. The unemployment rate in Ireland has consistently been higher than both the EC and OECD average.

8.The present situation with regard to unemployment is socially unacceptable and economically wasteful. The Committee accepts that the overwhelming majority of unemployed people want to find work but are deprived of the possibility of paid employment as there are not sufficient jobs available in Ireland. The experience of long-term unemployment, in particular, is typified by feelings of social exclusion, marginalisation and discouragement and is associated with problems of income inadequacy.

Why is Unemployment So High in Ireland?

9.The reasons for high unemployment are complex and inter-related but the Committee feels that some of the main factors are readily identifiable. These include:-

-a much faster rate of potential labour force growth over the rest of the decade in Ireland compared to that expected in other countries because of high birth rates in the past and increasing participation of women in the labour force; this means that we will have to create more jobs here than in other countries simply to prevent unemployment from rising

-total employment growth has been disappointing; labour shedding in our relatively large agricultural sector and industrial restructuring since EC membership including the weaker performance of the indigenous sector are part of the explanation but the link between aggregate economic growth and total employment in Ireland is weaker than in other countries

-more generally, trends in labour market conditions in other countries, particularly in the UK, have always had a key influence on the unemployment level in Ireland through migration flows.

Policy Background and Constraints

10.In the Committee’s view, unemployment in Ireland is a long-term structural problem which requires a long-term, integrated economic and social strategy to deal with it. An important element underpinning any such strategy is to focus economic policy on the achievement of high rates of economic growth. However, the link between employment and economic growth is not as strong here as in other countries. The Committee awaits with interest the cross-country comparative analysis work which NESC is doing to explore the reasons for the apparent disappointing employment return from economic growth.

11.In Ireland’s case, the only realistic route to faster economic growth is through increased market share for Irish-produced goods and services. This requires ongoing efforts to anticipate and meet new demand, to be innovative in product design, to pursue successful marketing strategies and above all to maintain and enhance competitiveness. All costs, including labour costs, which impinge on the output of the traded sector of the economy must evolve at rates in line with or below those of our competitors.

12.The Committee, in the course of its work, has been conscious of the budgetary pressures which are faced by Government given the high debt/GNP ratio and the need to bring this more into line with that in other countries. The requirements of Economic and Monetary Union reinforce the need for budgetary discipline. Aside from these constraints, the Committee is of the view that maintaining a low level of borrowing, consistent with a reduction in the national debt/GNP ratio, is an important element in establishing a macroeconomic environment conducive to economic growth and employment expansion.

13.Aside from appropriate macroeconomic policies, there is also a need to ensure that sectoral and other policies pursued by Government are consistent with the need to maximise employment. A range of policies impinge directly or otherwise on the labour market. While the Committee has not yet examined these areas in any detail, it re-iterates that it is vital that taxation and other policies are consistent with the need to secure the fastest possible expansion in sustainable employment. There is a need to continuously assess the employment impact of these policies.

Co-ordination of Measures

14.The Committee has been particularly struck by the proliferation of measures and funds from domestic and EC sources now being applied in Ireland to industrial and rural development, infrastructural improvements, education, training and employment schemes.

15.Both providers and the intended beneficiaries of all measures applied at present, in particular those which contribute to the creation of jobs and the alleviation of unemployment, would benefit from much greater simplicity, consistency, coherence and co-ordination in the planning and delivery of these measures. The Committee does not consider that a reduction in the number of measures per se should be the primary objective. What it does recommend is that, (1) all measures respond to clear overall complementary national objectives, (2) there is no duplication of funding on offer or services provided, and (3) the maximum employment return is achieved from the resources invested.

16.In the following chapters, the Committee will outline its work to date and recommendations under four headings:- the role of the EC, job creation strategies, strategies for the unemployed and employment mobility.

ROLE OF EC

17.In relation to the EC dimension of its work, the Committee has interpreted its role as having two related elements:- the elaboration of an Irish position on employment policy at EC level and the consideration of issues affecting employment at national and local level, which are influenced in a particular way by developments at EC level. Unemployment is undoubtedly a major problem at EC level with 12,833,000 people unemployed in the twelve member states or more than 9% of the EC labour force. In contrast to this the unemployment rate in the US is under 7%. About half of the unemployed have been unemployed for a year or more (long-term unemployed). Political concern at EC level is evidenced by a number of comprehensive resolutions by the Council of Ministers on long-term unemployment in particular.

Four Factors

18.There are four major factors emanating from membership of the EC which must be considered in formulating any policy to combat unemployment either at national or EC level:- the completion of the Internal Market, Economic and Social Cohesion, the Structural Funds and Economic and Monetary Union (EMU).

Internal Market/Economic and Social Cohesion

19.The considerable rationalisation of Irish industry in the last decade should see Ireland well placed to maximise the benefits of the internal market. An ESRI projection suggests that completion of the internal market could lead to around 36,000 additional jobs by the year 2,000. While the ESRI projection is for a positive net employment effect, it is likely that gains and losses will be unevenly spread across sectors. Completion of the internal market cannot, in itself, be expected to narrow the income disparities between regions in the EC, let alone bring about convergence. In recognition of this, the Single European Act and the Maastricht Treaty both contain provisions aimed at reducing the economic and social disparities between regions. The weakest economies need assistance and investment to improve their competitiveness and help them move towards more modern and efficient structures, rather than ongoing passive transfers.

Structural Funds

20.The Structural Funds are one of the most important interventions to increase cohesion. Tentative projections by the ESRI suggest that, if the present level of structural funding under the Community Support Framework (CSF) continues unchanged to the year 2000, the level of GNP may be 2.7% higher than without such funding, and around 30,000 additional jobs could be created. Taking account of anticipated labour force growth, the reduction in unemployment may be only in the region of 12,000 or so, or just under 1% of the labour force. The CSF funding alone will not compensate for the strong centripetal forces of an internal market, nor lead to a reduction in the gap in relative economic prosperity between Ireland and wealthier EC Member States. However, it is clear that without the current level of funding the situation would be worse. Therefore, the Committee firmly underlines the importance of maximising the commitment of Structural Funds to Ireland post-1993, including the commitment of funds under the new Cohesion Fund, in terms both of the absolute amount of aid and of EC contribution rates.

Economic and Monetary Union

21.The current EC budget accounts for only 1.2% of Community GDP and the Structural Funds for 0.3 per cent of GDP. In contrast to this, central government expenditure broadly similar to that in the EC budget in five mature federations ranges from 4.6 per cent to 9.4 per cent of national GDP.¹ The Committee notes, however, that in the medium to long-term, EMU provides the possibility of significantly increased cohesion-type transfers from the EC to Ireland through the budgetary system of an enlarged Community budget. However, the budgetary constraints arising from EMU which affect Ireland, also constrain other member states and have implications for any EC employment policy.

22.As the largest single international trading bloc, the EC has power to place employment on the agenda at a number of international fora. It should begin this process by promoting an integrated industrial policy within the Community in pursuit of the Maastricht Treaty objectives of balanced and sustainable economic and social progress, including a high level of employment.

JOB CREATION STRATEGIES

23.In “Strategy for the Nineties”, the NESC have pointed out that assuming zero migration and no further job losses in the economy, employment growth in excess of 20,000 per annum would represent a minimum requirement if unemployment is not to increase. In the past, Governments have sought to achieve employment growth largely through an industrial policy based on attracting multinational investment. However, this strategy has not resulted in a significant increase in industrial employment.

24.Of particular concern is the fact that, to date, policies and programmes to create employment have not given rise to net employment growth in indigenous industry; instead there has been a decline. This has happened because indigenous firms have been unable to increase sales to the extent needed even to maintain their employment. While the widespread introduction of new technology helped to ensure the continuing viability of many Irish firms, it was also a contributory factor in job losses. Policies and programmes have been based primarily on providing finance for investment projects. Out of a total expenditure of £1.6 bn in State spending, some £670 million in grants alone was incurred in the period from 1981 to 1990 with the objective of increasing the numbers employed in indigenous firms. This does not include expenditure of many hundreds of millions more of public funds, in the form of EC aids, of tax expenditures and of the administrative and other costs of State bodies. But the number employed by all Irish-owned firms actually fell by 28,000. While employment in foreign enterprises, which were in receipt of grants, rose by 9,000 between 1980 and 1990, employment in those Irish-owned firms to which the grants were paid declined by 2,000 jobs.

Industrial Development Strategy

25.In the time available to it, the Committee has concentrated on industrial development and its potential for job creation. It will also be examining the internationally traded services sector and tourism in its future work and the vital role of research and development in wealth and job creation.

It is clear from the above that policies for industrial development must change to assist indigenous firms to build their capacities to compete and to sell at home and abroad. To maintain competitive advantage in international markets there will be a continuing need for product upgrading and innovation by Irish firms. The main concentration of State support should therefore be in assisting existing Irish firms, including small firms, to improve their capability in areas such as marketing and design, technology, management skills and in supporting the establishment and development of new Irish firms. This is the only realistic way of ensuring the long-term success of the industrial sector in generating wealth and employment. Unless Irish firms can retain a competitive edge, not alone will they be unable to create new jobs, but existing jobs will be lost through closures.

26.The role of the multinationals in creating jobs in Ireland is substantial and will continue to play a significant role in the future. Given the high level of profit repatriation by these companies - estimated at £2.5 bn in 1990 - the creation of an economic environment to encourage foreign enterprises to retain and utilise a greater proportion of their profits in the Irish economy, especially on job creation, is essential. Existing links between multinational enterprises and indigenous firms should be maintained and developed and new linkages established.

Implementation of Culliton Report

27.It is equally important however that the broad range of factors (taxation, infrastructure, education and training) identified among the 60 recommendations in the Culliton Report as having a direct bearing on industrial development are reflected in a coordinated policy framework and programme. The Committee would, therefore, support the broad thrust of these recommendations. The Committee will return to this in the Autumn to establish progress made in this area.

Current Employment Initiatives

28.The Committee surveyed other relevant initiatives in the course of its work. These are outlined below.

a)Implementation of Recommendations of the Task Force on Employment

The Committee concentrated on those recommendations it considered had the most direct job creation implications although it recognises the need also for the more indirect contribution of the other Task Force recommendations to employment. It welcomes the positive action already taken on some recommendations - in particular, (i) the production by Irish companies of products and components for multinational companies, with the objective of increasing this business to £600 million a year within the next five years leading to a possible 3,000 new jobs and, (ii) the expansion of the European Orientation Programme, which is making a further 200 places available with Irish manufacturing firms or international services over the next two years. Of the other recommendations, the Committee urges early action in particular on the Special Trading Houses Scheme and on the development of employment in direct marketing, which has potential to create 2,000 jobs over three years.

b)Private Sector Initiatives

The Committee notes with interest recent initiatives by the private sector to contribute directly to the creation of employment for the long-term unemployed by financial and other means such as the establishment of the Enterprise Trust. This aims to raise £6m over three years from Irish business to support job creation through the area-based companies set up under the Programme for Economic and Social Progress.

Job Creation Recommendations

29.In the shorter-term, the Committee believes that steps can be taken to improve the prospects for job creation which are consistent with the long-term strategic approach referred to earlier. Some of these are outlined below. The Committee will be examining them in greater detail over the coming months, with a view to developing further recommendations.

Access to Finance

30.A recurring theme identified as an obstacle to greater success in Irish business, and particularly among smaller firms, is the near impossibility in obtaining seed and venture capital. It is clear that urgent action is needed to improve this situation, particularly for women entrepeneurs.

31.The Committee is strongly of the view that an “Equity for Jobs” Fund of £10m should be set up as a matter of priority, with a particular emphasis on the venture and development capital needs of indigenous industry. It will be essential that the provisions of the Fund are attractive to individual as well as institutional investors. The Committee believes therefore that the State should ensure that the rate of return from the Fund should be in line with returns from alternative investment possibilities and calls on the Minister for Finance to bring in appropriate financial incentives to this end, in the next Finance Bill.

32.The Committee recommends that immediate discussion between the relevant Government Departments, State Agencies and the financial institutions should take place to work out the modalities for establishment of the Fund. In view of the urgency of the matter, it recommends that the Fund should be put in place before the end of the year.

33.The Committee also recommends that the Business Innovation Fund, which makes seed capital available to small emerging companies, should be doubled from its current level of £1m. by the end of the year and increased further to £5m as soon as is practicable.

Linkages

34.The Committee welcomes the recent additional efforts to improve linkages between Irish suppliers and both multinationals and commercial State Companies. The development of linkages offers significant potential for an increase in employment and the Committee recommends that the scope for linkages in a further category, viz between indigenous firms should now also be explored.

Commercial State Companies

35.The Committee believes that there is considerable potential for job creation by the commercial State Companies and local authorities through imaginative use of available resources and expertise. This has been impeded by a lack of equity capital. As part of its Autumn work programme, the Committee intends to establish what further possibilities exist in this area.

36.The performance of some commercial State Companies in recent years has been impressive by any standards and gives a clear and encouraging indication of the potential here. For example, TEAM Aer Lingus employs in excess of 2,000 people in aircraft maintenance. Airmotive - an Aer Lingus subsidiary - has grown since 1980 to its current employment level of 600 people in aircraft engine maintenance. A joint venture between Aer Lingus and the ESB - Toptech - established in 1989 to substitute imports of plastic components for the computer industry now employs 100 people itself and has facilitated employment expansion in other companies in the plastic moulding business.

STRATEGIES FOR THE UNEMPLOYED

37.It is clear to the Committee from the evidence presented to it to date that, even on the most optimistic of scenarios, unemployment is likely to remain high for the foreseeable future. In such circumstances, it is essential to develop strategies for dealing with unemployment and for combating the negative economic and personal effects of long-term unemployment. In the short-term, there is a need to consider the types of measures that can be pursued or intensified to alleviate unemployment, to ensure that unemployed persons are in a position to take advantage of improvements in the labour market and to identify and remove barriers preventing the long-term unemployed from doing so.

Profiling the Unemployed

38.In developing strategies for dealing with unemployment, attention must be focussed on the characteristics of unemployed persons. The unemployed are not a homogeneous group. Among the factors which need to be considered are the skill and educational levels of unemployed persons, their occupational history and the duration of unemployment. A range of policy responses are required to deal with different categories of unemployed people.

Severity of Long-term Unemployment

39.A particular feature of the existing unemployment profile which attracted the attention of the Committee was the extent of long-term unemployment. The Committee notes that as of October, 1991 (latest information available) some 108,000 had been continuously on the Live Register for a year or more. Even more disturbing is the fact that over 50,000 had been continuously unemployed for three years or more. Long-term unemployment is now clearly a very serious problem in this country. It is also a problem at wider EC level. Persons in long-term unemployment are unlikely to gain much from any expansion in employment resulting from an improvement in general economic conditions.

40.The Committee believes, therefore, that co-ordinated strategies need to be developed at both national and EC level to tackle long-term unemployment. The Committee accepts that long-term unemployed people have difficulties to contend with, such as lack of relevant training, when competing in the jobs market. The attitude of some employers towards the long-term unemployed can also constitute a barrier to getting employment. The Committee will be seeking to establish possible remedies, such as improved communications, for encouraging more positive mutual understanding between potential employers and long-term unemployed people.

Employment Schemes

41.There are two main lines of approach here, direct employment-type schemes and the employment subsidy approach. Direct employment-type schemes offer paid work to unemployed people while subsidy measures are also operated to encourage employers to employ persons on the Live Register. The main direct employment scheme is the Social Employment Scheme (SES) which offers paid work to participants on a part-time basis for a twelve month period. The Committee is of the view that there are severe problems with the operation of the scheme, which it intends to pursue with the Department of Labour, FÁS and the social partners in the autumn. Nevertheless, in general terms, it is a useful scheme which can assist the long-term unemployed. In this context, the Committee awaits with interest the review and development of the SES being undertaken in the context of the PESP Area-Based Response to long-term unemployment and also intends to pursue this further in its Autumn work programme.

42.The Committee notes that in recent years the numbers on the scheme have remained more or less static at a time of increasing unemployment. The Committee recommends a steady expansion of the numbers on the scheme in the context of a multi-annual planning approach. This would serve to facilitate a more planned approach by FAS and individual project sponsors and to provide a greater degree of certainty for scheme participants. The Committee also recommends that measures be taken to facilitate private sector financial sponsorship and support through the provision of expertise or materials for non-profit SES schemes of social value.

43.As regards the employment subsidy approach, the Committee envisages a limited role for measures of this kind. The ability of this type of intervention to increase employment is limited although targeted measures have a role in directing employment opportunities towards certain disadvantaged groups among the unemployed (e.g the long-term unemployed). Based on the experience to date, problems of displacement or substitution of existing employment, together with the danger of high deadweight costs (i.e. paying for recruitment which would have occurred in the absence of the subsidy) are likely to appear. The Committee will analyse the reasons for this in its future work programme.

Work for the Unemployed

44.The Committee feels that a new approach is required in this area. It intends to propose a programme in the Autumn with the objective of using existing resources to provide jobs for the long-term unemployed. The general intention is that appropriate organisations would be encouraged to offer employment to persons on the Live Register. This would replace the existing system whereby those in unemployment are paid assistance on the basis of proof that no work will be done and that the applicant is in search of non-existent jobs. This voluntary scheme would be operated with a minimum of cost and bureaucracy and with an input from all relevant state and voluntary agencies and the social partners at local level.

Training

45.The Committee recognises the importance of a skilled labour force to increase productivity and competitiveness and the need to equip unemployed people to take advantage of new employment opportunities. The Committee notes the inadequacy of incompany training in this country and urges employers to invest substantially in training as an essential ingredient in creating and sustaining jobs. The Committee notes the introduction of the Job Training Scheme and regrets the poor uptake to date. Efforts should continue to increase the uptake on this scheme. As regards training for the unemployed, the Committee is of the view that all vocational training activity should be properly targeted with independent approval and certification and that the training effort should be co-ordinated with the activities of the industrial development agencies. The Committee will be looking at the training area in greater detail in the Autumn.

Education

46.The clear link between level of educational attainment and employment prospects has been widely documented. The Committee notes results from the Labour Force Survey which show that almost 45 per cent of unemployed persons have completed only primary school education. The Committee is also aware of the danger that many jobs in a highly competitive labour market are held by those who are over-qualified, blocking those with poorer educational attainment. Therefore, from an equity perspective, the Committee is of the view that measures need to be taken which would facilitate the acquisition of appropriate qualifications and vocational training by unemployed people. The Committee held discussions with relevant Government Departments on the Vocational Training Opportunities Scheme which is designed to increase the chances of long-term unemployed persons becoming employed through the provision of education-based training and personal development opportunities. While the scheme is still at a relatively early stage, the Committee is of the view that it represents a most worthwhile measure. It notes the intention to expand the scheme gradually but considers that there is scope for an acceleration of these plans in the short-term, consistent with the maintenance of high standards and the development of worthwhile programmes. The Committee suggests that the numbers on the scheme be increased to 2,000 by the end of the year. Over a number of years, the aim should be to build up to a total of 10,000 on the scheme, consistent with resource availability, facilities and the degree of success in achieving participation targets.

EMPLOYMENT MOBILITY

47.On Irish accession to the EEC in 1973 freedom of movement of workers was already provided for in the Treaty of Rome and in comprehensive Council Regulations. At present an improved EC-wide job placement system is commencing operation in Member States. This could facilitate workers wishing to exercise their existing rights to freedom of movement. Within the EC, migrants enjoy levels of legal protection which illegal emigrants to North America, for example, do not. Every effort must continue to be made to increase employment in Ireland and to assist the long-term unemployed to access the labour market here. However, the Committee is of the view that in the medium term with an economic recovery in other Member States, and bearing in mind our demographic profile and job creation record to date, migration will be a realistic and pragmatic option for the younger qualified or skilled members of the labour force in particular.

48.The Committee endorses current efforts to discourage the ill-equipped from migrating. It also endorses the information and assistance given to those who have decided to migrate. It calls on FÁS, the Départment of Labour and other State and voluntary agencies concerned to continue to develop and extend the quality of their services in this regard.

49.While migration is an option for Irish workers, the Committee is concerned that employment mobility towards the wealthier centre of the EC could result in the loss of large numbers of qualified and skilled people for an extended period of their working lives. This process represents a cost to the country of origin and a windfall gain for the country of destination. It could also hinder Ireland in pursuing its own economic development. The Committee believes that active measures need to be taken so that damaging skill shortages do not emerge in Ireland. Indigenous employers with high skill vacancies in particular could improve recruitment procedures, career development and training. This would improve the quality of those recruited and increase chances of retaining them.

50.FÁS also has a role in pre-departure advice to inform would-be migrants, especially those with relevant skills and qualifications, of other options available at home. Full information on job vacancies in Ireland would enable this process to have maximum impact. Finally, the Committee urges the taking of positive measures to support and encourage migrants to return to set up business in Ireland, and to take up employment here, in the medium-term. Amongst the resources which might be used in a co-ordinated way in this endeavour are EURES (the new European Employment Service which exchanges job vacancies and provides information on living and working conditions), placement officers abroad, manpower forecasting facilities, business start-up support services and existing networks of migrants.

Recognition of Qualifications

51.The Committee is aware of the importance of recognition of Irish educational and vocational qualifications by foreign employers if Irish migrants are to secure employment commensurate with their qualifications. The Committee, therefore, endorses the work of the Irish authorities in this field and supports the separate bilateral arrangements entered into and being discussed by FÁS. The Committee underlines the importance of certification of vocational training courses in Ireland. In addition, the certifying bodies in Ireland should co-ordinate their activities. It is the view of the Committee that a more coherent certification system at home could improve the transparency and marketability of Irish qualifications abroad.

FUTURE WORK

52.The Committee intends in its future work programme to:-

-consider how a general EC employment policy can be developed in the context of economic and social cohesion and the industry policy provisions of the Maastricht Treaty

-explore the potential for a co-ordinated economic growth strategy to increase wealth and employment in the EC

-consider the development of EC-wide programmes to tackle long-term unemployment, bearing in mind the social dimension of EC policy

-examine the experience of structural fund expenditure in the current round of funding with a view to establishing how these funds and the Structural Funds post-1993 can have maximum impact and flexibility in supporting job creation and tackling unemployment and, in particular, long-term unemployment in Ireland

-develop new proposals designed to channel existing resources into the provision of employment opportunities for unemployed persons

-look at the social welfare system and how it impacts on employment and on the unemployed and at issues related to the integration of the tax and social welfare systems

-continue its work in the area of training, employment and education measures for the unemployed, focusing on issues such as allowances for persons on training and employment schemes, and the further development/rationalisation of programmes

-look at the development of the Area-Based Response to Long-term Unemployment

-examine the potential of work-sharing

-make further recommendations on financing for industry

-establish whether further employment creation initiatives can be identified for the commercial State Company and local authority sectors, including joint venture possibilities with the private sector.

¹. The five mature federations are the USA, Canada, Australia, Switzerland and Germany. The cen ¹tral government expenditure being considered excludes defence, social security, national debt servicing and general purpose transfers.