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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Unemployment Problem.

1978 unemployment reduction target

Summary

Horgan challenged the Government’s commitment to reduce unemployment by 20,000, arguing it implied a 20,000 fall in the live register. O’Donoghue distinguished people out of work from live-register figures, rejected a precise one-to-one relationship, and said employment growth might reduce the register by only 10,000–12,000.

asked the Minister for Economic Planning and Development the plans he has for reducing unemployment in 1978.

Comment on this
Martin O'Donoghue Professor O'Donoghue Fianna Fáil

The pre-election manifesto aimed at a reduction of 20,000 in the numbers out of work in 1978. The strategy and conditions for achieving the targets for 1978 and for subsequent years are set out in the recent White Paper on National Development 1977-1980.

The manifesto proposed immediate action to provide 20,000 new jobs by a special programme of spending in key areas. The measures taken to date resulted in the creation of 5,180 jobs by the end of 1977. The programme of action which the Tánaiste and Minister for Finance announced in the recent budget, will ensure that the total number of jobs created by direct Government action will amount to nearly 23,000, well in excess of the 20,000 promised in the manifesto.

In addition to the results of the Government's special employment programme, a significant increase in employment should result from the acceleration of growth in the economy as a whole. The actual pace of this employment growth in the private sector will of course be influenced by many factors. In addition to the beneficial impact of the Government's own actions, an easing of inflation, supported by moderation in pay settlements would help to accelerate this employment growth.

Comment on this

Would the Minister not agree that the commitment in the manifesto is not to 20,000 new jobs but to a reduction in unemployment of 20,000?

Comment on this
Martin O'Donoghue Professor O'Donoghue Fianna Fáil

I agree.

Comment on this

Would the Minister tell us in the light of that what figure he would consider appropriate for the live register at the end of this year without ambiguity and without cooking the books if the manifesto target is to be fulfilled?

Comment on this
Martin O'Donoghue Professor O'Donoghue Fianna Fáil

I am not cooking the books. The first sentence of my reply said:

The pre-election manifesto aimed at a reduction of 20,000 in the numbers out of work in 1978.

That is the statement we made before the election; it is repeated in the White Paper and I am repeating it today. Let us be clear on that. The Deputy's second question asked for a forecast of the numbers that might be on the live register. When? At what date?

Comment on this

On 1 January next.

Comment on this
Martin O'Donoghue Professor O'Donoghue Fianna Fáil

If the Deputy tables the question I shall have a careful reply to it prepared. As the White Paper spells out and as I have said on numerous occasions outside the House as well as inside it, there is a whole series of factors which influence the numbers on the live register.

Comment on this
Jim Mitchell Mr. Mitchell Fine Gael

Including the Government.

Comment on this
Martin O'Donoghue Professor O'Donoghue Fianna Fáil

Including Government policy—I shall deal with that if I may. I gather that one of the few possible points of agreement between the Opposition and ourselves is that reductions in the numbers on the live register are unlikely to occur on a 1:1 basis with increases in the numbers at work. A crude rule-of-thumb calculation might be to say that reduction in the numbers on the live register is of the order of 5-6 for every increase of ten in the numbers at work. So, if we are talking about an increase of 20,000 at work there could be a reduction of the order of 10,000 to 12,000 in the numbers on the live register. Coming now to the influence of Government policy, as the House knows we are committed as one of our steps towards ending discrimination in the treatment of women. We are committed to expanding the availability of unemployment assistance to single women this autumn. Among other consequences that will have the effect of increasing the numbers on the live register. Is that to be taken then as implying in some sense a failure to reach our target in jobs? Hence, I said that if the Deputy was specifically interested in that question, he should table a question and I shall have it answered.

Comment on this

Would the Minister not agree that the plain reading of the manifesto by the electorate implies a reduction of 20,000 in the live register at the end of the year and would he state——

Comment on this
Martin O'Donoghue Professor O'Donoghue Fianna Fáil

No. That is the Deputy's interpretation. We were very careful to say an increase in employment, a reduction in the numbers out of work. A reduction in the numbers out of work means what it says. There is no reference to live register or statistical calculations. Of course it must be a fact that if one more person is at work there is one fewer out of work and all the attempts of the Opposition to confuse this, to drag in irrelevant statistical calculations——

Comment on this
Martin O'Donoghue Professor O'Donoghue Fianna Fáil

We are talking about facts; let us stick to to them.

Comment on this

That is not true; that is rubbish.

Comment on this
Martin O'Donoghue Professor O'Donoghue Fianna Fáil

Publish your own rubbish.

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

Deputies will address the Chair.

Comment on this

What about those who go direct from school to work?

Comment on this
Martin O'Donoghue Professor O'Donoghue Fianna Fáil

It is still true.

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

Questions should be directed through the Chair.

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

Deputy Bruton must restrain himself. Deputy Kelly, for the last supplementary question.

Comment on this
Jim Mitchell Mr. Mitchell Fine Gael

Will you allow me to ask a supplementary question?

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

I do not think I will.

Comment on this