Vol. 476 No. 1
32 Kathleen Lynch asked the Minister for Enterprise and Employment the number of jobs created in the indigenous software industry in each of the years from 1991 to 1996; the projected job creation figures for 1997; the proposals, if any, he has to further encourage the development of the indigenous software industry; and if he will make a statement on the matter. [6280/97]
The Irish software industry survey is only conducted every second year. Its results for 1995 indicate that employment in the indigenous software sector was 3,801 in 1991, rising to 4,495 in 1993, an average annual increase of 9 per cent per annum, and increasing to 5,773 in 1995, an average annual increase over the period 1993-5 of approximately 15 per cent. Indications for 1996 are that this trend has been maintained and is likely to continue. There are approximately 400 indigenous software companies are Ireland. The survey findings indicate that 80 per cent of all indigenous software companies are now involved in exporting to some extent.
The Government recognises software as a strategic sector for Ireland and as a measure of that recognition, Ireland is unique in Europe as the only country with a Government backed national software directorate with specific responsibility for the development and growth of the sector. The national software directorate within Forbairt was established to develop measures in co-operation with the software industry which will stimulate growth and fully exploit the industry's potential. It is a unique office within Forbairt and recognises the very significant opportunity that this high growth industry represents for the Irish economy as a whole.
In April 1996 I launched the software venture capital fund. This is a specialist fund focused on investing in Irish software related companies. The fund is managed by the ICC and it is intended to invest £10 million over a five year period.
Earlier this week I announced, along with my colleague, Deputy Bhreathnach, Minister for Education, an action plans on skills, which includes measures to provide additional skilled personnel to assist the development of the software sector.
Forbairt has targeted international services, including software, as a key sector of Irish owned industry with the potential for significant future growth in employment creation and development of export earnings. Forbairt's international services programme provides advice and consultancy support on service business development and a package of incentives and support facilities for Irish companies involved in a range of internationally-traded-services, including software. The programme is designed to capitalise on the global growth of services and to build on Ireland's established record as a base for providing services on an international scale. This is achieved by promoting and assisting new indigenous company start-ups and the expansion of existing Irish firms through Forbairt's regional offices around the country.
Financial assistance in the form of equity investment and grants, allied to advice, consultancy and expertise is helping Irish companies to become established and grow by strengthening their business development capability, competitiveness and profitability.
