Question No. 1 is in the name of Deputy Calleary and the Deputy has a few seconds to present his question if he wishes to do so.
Priority Questions
Sick Pay Scheme Reform
Dara Calleary
Question:1. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his views on whether budget changes to illness benefit will increase the burden on business, cost jobs and is contrary to the spirit of the Action Plan on Jobs; and if he will make a statement on the matter. [50552/13]
As the Deputy is aware, responsibility for the illness benefit scheme rests with the Minister for Social Protection. The benefit is paid to employees who are unable to work due to illness and who meet certain qualifying conditions.
Changes to the illness benefit scheme announced in budget 2014 mean that the number of days that a person must wait before receiving illness benefit from the Department of Social Protection is being increased from three days to six days. This change will come into effect from 6 January 2014. There will be no reduction in the basic rate of illness benefit.
It is of course open to business to offer sick pay cover which exceeds that provided by the Department of Social Protection, and some employers do. It is a matter for employers and workers in these companies as to how they will alter cover in their schemes in response to this change.
Social Protection expenditure remains the largest single area of public spending, accounting for almost 40% of gross current expenditure. As the Minister for Public Expenditure and Reform pointed out in his budget speech, this area of expenditure cannot be excluded from savings in the context of the need to balance public expenditure.
The change being introduced to the illness benefit scheme represents a small adjustment that was considered appropriate to contribute to the social welfare savings that have to be found in 2014. The change must also be seen in the context of a reforming budget that included a €500 million stimulus package to support enterprise growth and job creation. This package includes a capital stimulus plan, the retention of the 9% VAT rate for the hospitality sector, the introduction of a home renovations tax incentive, a new start your own business scheme for the unemployed, and an increase in the cash receipts threshold for VAT which will improve cashflow for businesses.
The pro-jobs measures in budget 2014 will allow us to continue to deliver the Action Plan for Jobs process. From my own Department’s perspective, Enterprise Ireland and IDA Ireland are targeting the creation of a total of 24,000 gross new jobs during 2014.
I thank the Minister for his reply. I am well aware that this scheme is the responsibility of Minister, Deputy Burton, as are small businesses throughout the country because this is the third budget in a row in which she has specifically gone after small businesses. We have had redundancy rebate changes, the change to the sick pay scheme and the increase in employer's PRSI with the so-called jobs budget rate increasing from 4.5% to 8.5%. Collectively, they have been a huge hit on small businesses. We had very successful Central Statistics Office figures published yesterday, which I acknowledged at a committee last night, but they are coming from small businesses that are creating the jobs on the ground. They are using the chances that have been given to them. The Minister, Deputy Burton, in particular, seems determined to be some sort of Dick Turpin-type character in that she keeps coming at them and imposing more charges on them. This is an additional cost to an employer. If an employee who earns €300 a week is off sick for a week, this measure alone will impose an extra €94 on the employer, without touching the employer's PRSI, which will impose a huge burden on employers, and meanwhile the Minister continues to let her do that. We need the Minister to stand up to the Minister, Deputy Burton, in the interests of small business and tell her to get her charities elsewhere.
I acknowledge the appointment of the Minister of State with responsibility for small business and all the work that has been done, but there is no sense in having a dog that does not bark. The Minister knew that the employers' PRSI rate was going to change and yet this change to sick pay was brought in. The fact that the Minister knew that rate was going to change was another excuse to postpone the change to the sick pack scheme or to find the money from somewhere else because it is a double whammy for small businesses who are still in a very fragile position and do not have the money. There needs to be a whole of Government approach. There will be two major increases on 6 January for small businesses. They are in a very fragile position but nobody seems to be alert to it within government. The Minister needs to be able to stand up to the Minister, Deputy Burton, in particular, and in cases such as this one to defend small businesses against such charges and against her using them to pay for her budget.
The Deputy is wrong about this. The increase from three to six days in this measure is an increase that affects the worker who has to wait six days before he or she can assess social protection benefit. The vast majority of small businesses do not have sick pay schemes of the sort that some larger employers provide.
The cost will fall back on them.
Therefore, they will not be affected at all by this scheme, and that should be pointed out. This is not a measure directed in any way at small businesses. It is unfortunate that we have had to reduce sick cover for workers in the way that it has occurred but, against a background of a very difficult economic situation and a need to balance to balance our public books, this is a measure that was the least bad of a range of measures.
We will move on to Question No. 2 in the name of Deputy O'Brien.
Youth Unemployment Measures
Jonathan O'Brien
Question:2. Deputy Jonathan O'Brien asked the Minister for Jobs, Enterprise and Innovation if he will detail the increase in youth employment since the Government came into power; and the impact of the Action Plan for Jobs 2013 in getting young persons into employment [50615/13]
As the Minister is aware, youth unemployment is an issue that is not unique to this State but is one that is plaguing the whole of Europe. What impact had the Action Plan on Jobs last year on addressing youth employment and what proposals are there in the action plan on jobs for next year?
Young people have been the group most seriously affected by the collapse of employment following Ireland’s economic crash. However, youth employment has stabilised in the past year and appears set to start growing as the economic recovery continues. Recent labour market figures published by the CSO indicate that the number of young people under 25 years of age in employment increased by 3,200 in the year to quarter three 2013. The number of young people who are unemployed fell by 13,600 in the past 12 months.
The Government is working to tackle the issue of youth opportunities in the labour market through the combined efforts of the Action Plan for Jobs and Pathways to Work strategies. The Action Plan for Jobs has sought to bring about a transition in the jobs and enterprise sectors to develop new job opportunities in sustainable sectors and to create 100,000 jobs by 2016. This work will continue vigorously in the coming years. However, it is encouraging to see record growth of jobs in our exporting sectors and signs of progress across a range of sectors. It will be vital to sustain this growth in employment in order to deliver job opportunities to young entrants.
Through Pathways to Work, the Government has brought in a range of new initiatives to support young people looking for employment such as JobsPlus, JobBridge, Springboard, Momentum, and the ICT action plan, which are delivered by the Department of Social Protection and the Department of Education and Skills. The Government is taking steps to increase the numbers of places and make other enhancements to those schemes where possible. For example, JobBridge has increased from 5,000 places initially to 8,500 places being currently available. The JobsPlus initiative, which is currently available to those who are unemployed for 12 months or more, is being extended from 1 January next to those under the age of 26 who have been unemployed for six months or more.
My Department, together with Enterprise Ireland, is also examining options for CEB-led initiatives aimed at promoting youth entrepreneurship, including a mix of financial supports for business start-ups, feasibility studies and mentoring. It is also working with the Department of Social Protection and the Department of Education and Skills to develop the Youth Guarantee, in line with the agreement reached under the Irish Presidency earlier this year.
I note yesterday's CSO figures, which are encouraging and welcome, but the reality remains that since the Government took up office, 50,000 fewer people are in employment. In the 24 to 35 year old bracket, approximately 19,000 fewer are in employment, although many of them have emigrated. Last year's Action Plan for Jobs contained 333 recommendations but only five related to youth unemployment. Next year's action plan has seven themes, none of which targets youth unemployment. How big a part will the youth guarantee play in next year's action plan? I acknowledge the plan has not been ironed out and the details have not been published, but a significant pot of money is available from Europe to help our young people back into employment.
The youth guarantee was negotiated under the Irish Presidency. A sum of €3 billion will be provided by the European Social Fund and a new budget line of €3 billion will also be provided. We will submit our plan to the EU by the end of 2013. An interdepartmental group has been set up in this regard comprising the Departments of Social Protection, Education and Skills, Public Expenditure and Reform, Children and Youth Affairs, Foreign Affairs and Trade, the Taoiseach and our Department, and they are all working on the plan.
It is important, though, to acknowledge 1,600 jobs a week were being lost in the three years before we took office but now the economy is creating 1,200 jobs per week. Those jobs are being taken up by young people as well. There has been a positive change in employment over the past 12 months.
The Minister for Social and Protection and the Taoiseach were in Paris recently to discuss the youth guarantee scheme. The Government has mentioned the provision of approximately €200 million for the scheme, but the National Youth Council of Ireland and the International Labour Organization reckon the State needs to invest between €400 million and €435 million to adequately tackle youth unemployment. Approximately €14 million has been set aside next year to target job creation for young people. I do not know what the plan will be because it has not been worked out yet, but there has to be a change in policy when it comes to youth unemployment. The Minister of State mentioned JobBridge. The Minister for Social Protection often refers to a 60% progression rate from the scheme into employment but the progression rate for young teachers is less than 30%. It may be working in some areas but JobBridge and other schemes are not resulting in full-time employment for young people in other areas.
A total of 19,500 young people have left the live register to take up work in the past 12 months. We have had four consecutive quarters of job creation.
That is to be welcomed.
JobBridge is not the panacea for the teaching profession, but the evidence is that we are creating more teaching jobs through the Department of Education and Skills by virtue of demographic changes with an increase in the birth rate, and the Deputy will acknowledge that many projects are under way to reflect that in our own county of Cork. JobBridge is a labour activation measure, which is having a positive effect on getting people into work. Approximately 500 job matches have been taken up as a result of the JobsPlus scheme. MOMENTUM comprises a €20 million package offering 6,500 training places through 36 education providers in 87 locations. We are conducting a review of apprenticeships because if one looks at where jobs were lost, young people were last in, first out. We need to examine, in particular, how we can upskill those who lost jobs in the construction industry, and that is why have introduced Springboard, the start your own business initiative, and the home renovation scheme, which will have a positive knock-on effect in getting young people back into the workplace. There is a vigorous and robust response to this issue, but I take the Deputy's point about the youth guarantee. The plan is being formulated and we can discuss that when it comes to fruition.
Departmental Agencies
Shane Ross
Question:3. Deputy Shane Ross asked the Minister for Jobs, Enterprise and Innovation the total sum of the grants given by quangos in his Department for job creation purposes since he came into office; the number of jobs that have been totally or partially created by these grant giving quangos; the cost per job across all those agencies; his estimate of the value of the quangos individually in his Department; if he has changed his mind on the need to replace the boards of all the quangos he inherited; his views on whether the directors of those bodies are worth their fees from the State; and if he will make a statement on the matter. [50614/13]
The total value of grants paid by agencies of my Department in the years 2011 to 2013 is €641 million. This comprises €268 million by IDA Ireland, €313 million by Enterprise Ireland, €42 million by the county enterprise boards, and €18 million by InterTradeIreland.
The total gross number of jobs created in those years assisted by IDA Ireland and EI comes to an estimated 90,000 jobs between 2011 and to date in 2013. The cost per job for IDA Ireland and EI is based on the cost per job sustained over a seven year period. They currently stand at €13,475 for IDA Ireland and €12,597 for EI. The cost per job for the CEBs in 2012 was €6,181, while the cost per job for InterTradeIreland in 2012 was €12,251, although in the latter two cases the calculation is on a different basis.
The agencies in my Department are performing very well in a challenging environment. They are driving a vital transition from an economy founded on property to one built on enterprise, exports and innovation. Their impact is measured by the gross job creation in enterprises supported by them, the net job movements across their portfolio as well as numerous agency-specific key performance indicators which are regularly published. I am encouraged by the progress across almost all of these indicators at a time of declining staff in these agencies.
These agencies are an integral part of the development and delivery of Action Plan for Jobs. They are driving an export-led recovery through work in the marketplace and an increased number of trade and investment missions. The boards of the agencies have put in significant effort in steering these agencies through this transition. They bring insights from relevant backgrounds and, in replacing members, I seek people who will supplement the capacity of the respective agency.
I thank the Minister for his reply. I would like to say "Well done" on yesterday's CSO figures. While they are a photograph of a point in time, they are an improvement and that should be acknowledged.
The reason I asked for these data is I am doubtful about the role played by these State agencies and it is difficult to say whether the assistance they give creates jobs. We know they exist and the jobs are created, but the cause and effect are difficult to prove and the cost per job is still high.
I accept the figures the Minister has given and I am grateful for them. Some years ago when the Minister was in opposition he made a most perceptive speech at the MacGill summer school saying that when Fine Gael came to power it would get rid of the boards of all the quangos. I do not make a political point; it is more of a political plea. It was a very good idea. I no longer expect, in the light of what has happened and following statements made by Ministers, any Minister to keep a promise but I would like to know if the Minister still holds that view. He said that significant insights have been made on the performance of the semi-State bodies of which he is in charge.
I thank Deputy Ross for acknowledging the progress made on the employment front. It is always difficult to discern cause and effect but there is no doubt that IDA Ireland, for example, is deemed internationally to be one of the most effective agencies at delivering employment opportunities in a very competitive environment for foreign direct investment. Equally, following the collapse the challenge for Enterprise Ireland was significant in terms of picking up small Irish-owned businesses and bringing them into export markets. Against that background, at a cost per job of €13,000, we know that each year a person is taken off the live register the Exchequer gets €20,000. If those jobs are sustained there is a clear benefit.
The paper to which the Deputy referred was one in which I spoke about virtually all of government and how public service reform could be introduced. I suggested that over time new governments should consider replacing boards after a period had elapsed. I did not in any way indicate a promise on behalf of Fine Gael. If the Deputy reads the speech he will see there are many other suggestions about how we could improve. As Deputy Ross is aware, statutes set out the way in which boards are replaced, which is typically two per year, and that is the basis on which I work.
I do not accept the Minister’s interpretation of his paper but I will look it up again when I have time.
It was a pre-election statement.
Deputy Ross is revising it.
I can understand why he has interpreted it in that way at this stage of his career. The Minister inherited quangos with State-appointed boards and directors from the previous Government. To be charitable, the Minister promised a great deal of reform of the boards. That has not happened. The boards are large. The average number of directors on the boards of which the Minister is in charge is more than ten by my latest count, nearly all of whom are paid. There are some extraordinary anomalies. Why in the name of God does the board of the Irish Auditing and Accounting Supervisory Authority, IAASA, for instance, have 15 people when the board of IDA Ireland, for which the Minister has so much praise has, perhaps rightly, only 11?
The size of the boards are set out in statute. One would have to go back to read the wisdom of the Oireachtas originally.
The Minister makes the law and he promised reform.
I did not promise to change the statutes and to introduce 12 new Bills to try to change boards without any analysis of the merit of such a case. The Deputy is putting forward the case that we should reduce the size of the boards but he has not offered any coherent argument.
I have not had time but I will.
I am willing to listen to argument. Let us take the case of the IDA board. It includes such people as Lionel Alexander of Hewlett-Packard (Manufacturing) Limited, Liam O’Mahony of CRH plc., Paul Duffy of Pfizer and so on. Many of them have waived their fees for participation on the board. They are people of considerable quality in sectors we need to bring to bear in the work of IDA Ireland. The boards are quality boards delivering a quality service. One could equally say that of various other boards. By and large board members are there for the right reasons. Perhaps that is not the case all the time but we are very careful. We advertise board vacancies and try to get the best talent available.
Development Capital Scheme
Dara Calleary
Question:4. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the way he will ensure the recently launched development capital scheme does not encounter a similarly disappointing level of take-up as the microenterprise loan fund and the seed and venture capital scheme; and if he will make a statement on the matter. [50617/13]
The establishment of the development capital scheme is an innovative initiative under the Action Plan for Jobs and has the objective of increasing the availability of risk capital and closing the ‘equity gap’ experienced by SMEs seeking risk capital in the region of €2 million to €12 million. That has been identified by Enterprise Ireland as an obstacle to Irish companies growing to scale, which is a central aim of enterprise policy.
A total of €75 million in funding has been made available through my Department for the development capital scheme with the aim of leveraging a minimum total of €150 million in additional funding from the private sector. Enterprise Ireland has arranged competitive calls for partners in three separate funds. The funding partners are selected based on sectoral expertise, track record and supporting networks which they bring to the funds. Under the scheme, commitments were made to the three funds that will provide equity, quasi equity or debt of between €2 million and €12 million to established investee companies. On 4 November 2013 I announced the establishment of the first of those funds of €125 million which will be managed by MML Growth Capital Partners Ireland. The leverage of private sector moneys at €100 million is very encouraging. A further two funds will be announced in the near term.
Each of the funds established under the development capital scheme is aimed at providing funding for the mid-sized, mostly export-oriented businesses with clear growth and development prospects. The MML fund is a general fund which has no particular sectoral focus. It will target investment opportunities in a wide variety of growth-orientated sectors including manufacturing, technology, engineering, food, life sciences, services and electronics. Enterprise Ireland invests in these funds on the same terms as the private sector. The investment managers are responsible for making investment decisions within a clearly defined investment strategy over the lifetime of the fund.
I look forward to seeing investment in Irish companies in the near term. I am confident the State’s investment in the development capital scheme will be fully utilised, given Enterprise Ireland’s engagement with the seed and venture capital sector which goes back almost two decades and has been very successful in assisting the growth of high potential start-ups, HPSUs, attracting leveraged funds, bringing top level managers to Ireland and attracting interesting first-time international money to the Irish SME market.
The difficulty I have with the scheme is that the rationale and rhetoric sounds great but when will it hit the street? When will companies that need the finance get it from the development capital scheme? All of the initiatives the Minister has taken are announced in a blaze of glory but the practicalities on the street are minimal. In the first year of its existence the microenterprise loan fund has lent just €1.62 million. The target the Minister has set is that it will create 7,500 jobs by 2022. We have just dealt with the seed and venture capital fund. The credit guarantee scheme is way under target, as is the SME credit fund. ISME’s survey indicated that up to the end of September 57% of respondents had been turned down. We will later discuss source funding as a potential alternative option. There is still huge difficulty for SMEs to get money to ride the wave of growth that exists. If the Minister wants to continue with the figures we saw yesterday this has to be his No. 1 priority in terms of resolving the issue.
To reassure the Deputy, the MML fund is fully subscribed. The fund has a total of €125 million. Two managers have been appointed in this country who are now in a position to enter into agreements with companies who have ambitious growth plans. The need for such investment has been identified by Enterprise Ireland. Companies that are not in the gazelle league favoured by venture capitalists, that are solid companies with growth markets, have found it difficult to get funding. The fund will fulfil the need they have. The fund has hit the street and is available to be drawn down. These are the very sectors in which we are seeing significant performance. The food sector is doing exceptionally well. Technology is doing very well. Life sciences are doing well. This is a good opportunity as the fund has real management expertise as well as money. That is the benefit of the fund.
To outline Enterprise Ireland’s track record, last year the seed and venture capital scheme funded 140 new companies at a cost of €80 million. There is a track record of the funds delivering for companies.
I do not doubt Enterprise Ireland’s track record. It is superb. Microfinance Ireland, MFI, attended the Joint Committee on Jobs, Enterprise and Innovation a few weeks ago. Every Member should look at the presentation it gave and the information it has for companies. It has a difficulty in terms of getting its message out. I suggested to the Minister previously that it would use the Revenue database as it has the best database for business in the country for whatever reason. The database must be used to get information. What happens in the case of companies that are not in one of the growth areas?
That is the difficulty. There are many solid companies trading in the domestic market that do not fit into the areas for which the measures are being announced and they cannot get finance. They are the respondents to the ISME survey who still, in September 2013, five years into the crisis, cannot get credit for viable businesses. As well as focusing on the sexy, gazelle type companies, we need to focus our efforts on the day to day companies that employ people and keep their local economies going. They need help too.
Enterprise Ireland has a mandate that is focused on export oriented companies. The skill we bring in for these companies, for example, is in people who have the capacity to enter new markets. The scheme is aimed predominantly at export oriented companies. We have large numbers of companies with great growth capacity and these are well spread throughout the regions, in the areas of food, engineering, manufacturing and so on. These are the backbone of our industrial base and this is a gap that needs to be filled. I believe the view of manufacturing, which has been dismissive in recent years, has been misplaced. There are opportunities now as Ireland is more competitive. This is a fund that will help bridge a gap which has been well identified by research. I am optimistic this scheme will hit its target and we will closely monitor it. I accept the points made and there will be initiatives to improve information flow. I have met with both the banks and there will be a communications initiative around the various financial options for SMEs.
Action Plan for Jobs
Tom Fleming
Question:5. Deputy Tom Fleming asked the Minister for Jobs, Enterprise and Innovation the number and location of industrial units and warehouses that are vacant in County Kerry that are the responsibility of Industrial Development Agency, Ireland, Enterprise Ireland and local authorities (details supplied); the progress that is being made in attracting investment to these plants; if he will provide an update on the national jobs action plan relevant to County Kerry; and if he will make a statement on the matter. [50842/13]
I am informed by IDA Ireland that the agency does not have any units or warehouses, which are vacant in County Kerry. Enterprise Ireland does not have a property portfolio as IDA Ireland provides property solutions to Enterprise Ireland clients when required. The responsibility for local authority properties lies with my colleague, the Minister for the Environment, Community and Local Government.
The property to which the Deputy refers is not in the ownership of IDA Ireland. I understand from IDA Ireland that the premises itself was formerly a manufacturing facility and the options for the building in its current format are limited. I am informed that Killarney Town Council is assessing what options may be available for the building, including converting it into an enterprise centre. Both IDA Ireland and Enterprise Ireland have assured me that they are available to provide any assistance that may be required.
IDA Ireland owns approximately ten acres of land at the IDA business and technology park, Killarney, which is available for marketing to both overseas and indigenous industry. In addition, the agency has approximately two acres of land at the IDA estate in Killorglin and 1.41 acres in Annascaul, which is also available for marketing.
Enterprise Ireland, IDA Ireland and client companies employ in excess of 4,900 people across County Kerry, while Kerry county enterprise board has processed 37 projects during 2013 which have the capacity to generate 116 full-time and 53 part-time jobs by 2015. Enterprise Ireland activity in Kerry is focused on the creation of new jobs through supporting entrepreneurs to set up new high potential start-up companies. There are 132 Enterprise Ireland client companies in the county, employing 3,318 people.
Additional information not given on the floor of the House
There are 12 IDA Ireland supported companies in Kerry with total employment of approximately 1,600 people. IDA Ireland engages with these companies on an ongoing basis and the key areas of focus are to encourage operational sustainability, job retention and, in certain cases, expansion. IDA Ireland also endorses and supports the initiatives driven under the Succeed in Ireland agenda which also engages key stakeholders in the regions regarding opportunities for investment. Additionally, the existing base of overseas companies located in Kerry brings spin off benefits right across the south-west region through direct and indirect employment, for example, indigenous suppliers, logistics, security, catering companies, etc. The Action Plan for Jobs can benefit enterprises in Kerry. For example, the county would particularly benefit from initiatives that have been targeted at supporting the tourism and agrifood sectors.
Many of the initiatives in the Action Plan for Jobs will also be very relevant to enterprise in Kerry. These include the introduction of new financing models for SMEs, such as the microfinance fund for start-ups and the temporary partial credit guarantee scheme; the development of an integrated first stop shop for small enterprises through local enterprise offices; new schemes to help small businesses recruit via JobBridge, Springboard and MOMENTUM and the introduction of the JobsPlus scheme that provides an employment subsidy of over €70 per week to employers who recruit a person who has been unemployed for 12 months; the appointment of business development managers to 37 community enterprise centres across the country as part of a €2 million programme aimed at protecting and growing businesses in the community; and expanded support from Enterprise Ireland for start-ups, first time exporters and the establishment of a first time exporters division.
I thank the Minister of State for his response. However, the statistics demonstrate that Kerry is the poor relation in the south-west region in regard to job creation by both Enterprise Ireland and IDA Ireland in particular. IDA Ireland created almost 4,000 jobs in Cork in 2011 and 2012. In those two years, IDA Ireland created just 163 jobs in County Kerry in 2011 and 74 jobs in 2012, a total of 237 jobs. In those two years, Enterprise Ireland created almost 2,000 jobs in Cork in 2011 and 1,700 jobs in 2012. In comparison, it created 232 jobs in County Kerry in 2011 and 194 jobs in 2012. This is a ludicrous position for a peripheral county in comparison to the neighbouring counties in the region. How does the Minister of State intend to address this.
The Deputy mentioned County Cork. From the intercounty perspective, there are strong pharmaceutical and ICT sectors in Cork. The Deputy said IDA Ireland had created 163 jobs in 2011 in Kerry. However, it is not IDA Ireland but the companies that come in and conduct site visits which make the final decision as to where they will locate their business. Perhaps we could explore further the dynamic that exists in regard to the number of prospective companies or creators of employment, the number of site visits that take place and the analysis of the visits in terms of the decisions they make as to where to locate their business.
Over the past two years in particular we could count on one hand the number of IDA Ireland-led investment visits to County Kerry. Such visitors to the county are almost as scarce as the corncrake, which is almost extinct. This is a ridiculous record. IDA Ireland has utterly failed County Kerry. I believe it is time for the Government to step in. We are basically on a par with the south east, where there is a jobs plan in place to deal with the crisis situation there. We have an unemployment rate of almost 20% in County Kerry and but for the tourism industry, much of which involves part-time jobs, it would be higher. I compliment all of those involved in the retention of the VAT rate for that sector. We need sustainable jobs and I call on the Minister and Minister of State to promote some activity to help the county.
The Deputy mentioned the tourism sector and there has been significant investment by State agencies, such as Fáilte Ireland, to ensure the tourism package in County Kerry is maintained. This supports and creates jobs. The recent decision by the Government to retain the VAT rate for the sector has had a significant impact in terms of job creation and the maintenance of the sector in the Kerry region.
The story is not all bleak in County Kerry. The IT in Tralee has a major competence centre and there has been serious investment in companies like Dairymaster, which is seen as an exemplar for the agrifood and business sector. Also, through the centre for intelligent mechatronics and sensors at the Institute of Technology Tralee, ITT, and through the Kerry technology park, there is a strong emphasis and mood towards supporting high potential start-ups and towards ensuring we can concentrate on areas where Kerry has strong sectoral comparative advantages, particularly in the dairy or machinery sector. We will continue those investments. Enterprise Ireland, through the Department, is investing in the competence centre in ITT and that will create jobs in the long term.