Remarks by Tánaiste Mary Harney at the “Employment in the New Millennium” Conference on Wednesday 3rd November 1999 in the Burlington Hotel

I am delighted to open the “Employment in the New Millennium” conference.

The Spring 1999 Quarterly Survey confirms the very positive developments in our labour market. We have a further 97,000 extra people at work; an increase of 67,000 in the labour force; a further reduction of 30,000 in the numbers of persons unemployed and unemployment is down to 5.7%.

The substantial recent decline in unemployment points to a further significant tightening of our labour market. We must continue to ensure that we mobilise our full labour force potential to meet future demand. The challenge is clear.

Employment is forecast to increase by 356,000 in the ten years to 2009 mainly in high-skilled sectors of the economy whereas the ESRI are forecasting a decline in the growth rate of labour force.

Enhancing the skills and capacities of those at work is critical. Effective in-company training can raise productivity levels in individual enterprises. The Government has placed increasing emphasis in this area. The Skillnets initiative focuses on providing an employer-led approach to training and seeks to encourage groups of companies to develop strategies to address common training needs.

Responses aimed at tackling general labour shortages can take a number of forms. For example, the preventive strategy contained in the Employment Action Plan is proving successful for young persons under 25. The most recent results indicate that over three-quarters of the young unemployed who were referred to FAS in the first twelve month period of operation of the support process, had left the live Register by end September 1999. The majority of these had left for positive reasons, to a job, or an employability support programme - FAS training or returned to education. I am committed, in the Employment Action Plan, to the full roll-out of this support regime for adult unemployed by the middle of next year.

Taxation policy also represents a key element in the achievement of labour market goals. The move towards a tax credit system represents a fundamental change in personal taxation. By restructuring the system on these lines, the benefits of large tax relief packages have been concentrated on the lower income groups which should improve the incentive to take up work.

Remuneration is not the only factor to be considered when trying to attract and retain workers. The availability of childcare supports is vitally important in attracting and retaining women in employment. The Government will be taking steps to provide a necessary framework in this area in order to facilitate increased female participation in the labour force.

Following recent decisions by the government, those asylum seekers who had been in the country for more than twelve months and were still awaiting a decision on their refugee application may now seek employment.

While public policy can influence the labour market environment, the development of human resources will continue to be the responsibility of enterprises themselves. Increased attention to recruitment and in-work training will pay rich dividends, particularly in attracting and retaining qualified staff.

Tackling unemployment will remain a fundamental policy concern. We must now address the challenges of up-skilling and improving the adaptability of the workforce.

I would urge that company management fully appreciate the value of training, of developing a culture of life-long learning for both the firm and their employees, and of the promotion of family-friendly working policies, particularly if firms are to survive in an increasingly competitive market place. Ireland has a framework in the form of the Employment Action Plan to address our mutual concerns. I have outlined some of the key directions and recent initiatives the Government have taken or are about to pursue. Fundamentally, our approach is to create the environment in which business can do business.

I want to end by wishing you a successful and stimulating conference.