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Job Creation

Dáil Éireann Debate, Wednesday - 29 February 2012

Wednesday, 29 February 2012

Questions (98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110)

Sean Fleming

Question:

100 Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation the number of Industrial Development Agency-supported jobs in the country at the end of each year since 1985; the total number employed here; the percentage of employment in IDA-supported businesses; and if he will make a statement on the matter. [11806/12]

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Written answers

The total number of IDA supported jobs as at the end of each year in the period 1985 to 2011 is set out in the tabular statement. Statistics in relation to job numbers in the economy as a whole are maintained by the Central Statistics Office.

One of the targets set out in IDA Ireland's Strategy document "Horizon 2020” is the creation of 62,000 direct jobs in 640 investment projects in the period to 2014, which will result in 105,000 new jobs overall in the economy. 2011 saw a strong performance in the level of foreign direct investment (FDI) won by Ireland. IDA client companies created over 13,000 new jobs in 2011, up 20% on the previous year’s level of 10,897, increasing the total number of those employed directly by IDA client companies to almost 146,000.

Even with intense global competition for FDI and the very difficult global economic environment, there are still investment opportunities in global markets. I have every confidence that with the continued support of Government and the Department of Jobs, Enterprise and Innovation IDA will continue to win investment and create jobs in the economy in the months and years ahead.

Table showing the number of jobs in IDA supported companies at the end of each of the years 1985 to 2011

Year

Number of jobs in IDA supported companies

1985

63,360

1986

64,759

1987

64,365

1988

67,654

1989

72,616

1990

76,123

1991

77,788

1992

79,394

1993

81,835

1994

86,202

1995

92,821

1996

100,176

1997

109,875

1998

118,961

1999

128,007

2000

142,608

2001

138,569

2002

134,761

2003

131,469

2004

131,774

2005

134,935

2006

139,268

2007

140,038

2008

139,087

2009

126,415

2010

125,855

2011

130,499

Bernard J. Durkan

Question:

101 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he expects to be in a position to incorporate any of the suggestions received in the context of job creation throughout the country; and if he will make a statement on the matter. [11825/12]

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The recently published Action Plan for Jobs 2012 is the first in a series of annual Action Plans which will be rolled out, with the objective of supporting the creation of 100,000 net new jobs over the period 2012 to 2016, and the longer-term target of having 2 million people at work by 2020. In preparing the 2012 Action Plan for Jobs, I consulted with my Ministerial colleagues and with a wide range of stakeholders from the public, private and community sectors, to obtain their views on actions to support employment creation. I also received the Report of the Advisory Group on Small Business, which contained a number of specific recommendations aimed at supporting the small business sector.

In total, I received over 600 individual ideas for consideration. All of these ideas were examined and considered. Some are being actioned in the short-term and feature in the 2012 Action Plan for Jobs. Other proposals can be delivered in a longer timeframe, or require further consideration. These will be examined over the coming months and may be included in subsequent annual Action Plans.

As part of a campaign to inform the enterprise sector of the measures included in the 2 Action Plan for Jobs, I am undertaking a series of regional consultative meetings around the country. The first of these meetings took place last Monday, 27th February, in Cork and was attended by over 200 employers and business representatives. These regional meetings will help me to identify measures that might be suitable for inclusion in the 2013 Action Plan for Jobs.

Bernard J. Durkan

Question:

102 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the degree to which he and his Department have assessed the potential for job creation throughout the labour force with particular reference to the possible expansion of various enterprises with built-in incentives to take persons off the live register; and if he will make a statement on the matter. [11826/12]

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Bernard J. Durkan

Question:

103 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which small and medium-sized enterprises have been assessed for their potential to absorb persons from the live register with particular reference to the use of possible incentives; and if he will make a statement on the matter. [11827/12]

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Bernard J. Durkan

Question:

106 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which it is possible to incentivise the creation of new jobs in existing enterprises having particular regard to balancing any such costs against the costs of social welfare payments for those currently unemployed and anxious to return to the workforce; and if he will make a statement on the matter. [11830/12]

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I propose to take Questions Nos. 102, 103 and 106 together.

The Action Plan for Jobs, which was published on 13 February, sets out a range of measures which are designed to support new business start-ups, improve enterprise competitiveness and help firms to grow. It aims to support the creation of 100,000 net new jobs by 2016 by systematically removing obstacles to competitiveness, putting downward pressure on business costs, promoting innovation and trade, supporting new and existing businesses to develop and expand, and by deepening the impact of foreign direct investment in Ireland. The Action Plan also includes a number of targeted, sector-specific measures to unlock the full potential of enterprise to create jobs.

Small and medium enterprises will benefit, in particular, from measures such as:

the establishment of a new "one-stop-shop" structure for micro enterprise support;

the roll out of the Microfinance Fund for small new start-ups;

the introduction of a new temporary Partial Credit Guarantee scheme, which will address the problem of access to finance for viable SMEs that do not meet the normal lending criteria of the banks;

the expansion of mentoring schemes, particularly between multinational companies and SMEs; and

measures to improve access to public procurement opportunities for SMEs.

The Action Plan for Jobs is part of a wider, whole of Government response to the jobs crisis, which includes also the recently published plan for labour market activation, Pathways to Work. Both documents are fundamentally linked and recognise the need to reform our policies and our structures to secure long-term and lasting results for our enterprise base and for job-seekers.

The Action Plan for Jobs contains a number of measures to support employers to recruit people from the Live Register when vacancies arise. These include simplification and extension of the Employer Job (PRSI) Incentive Scheme which exempts employers from liability to pay employer's PRSI for certain employees. This scheme will be extended to cover the first 18 months of employment while the eligibility criteria for job seekers will also be amended and improved. The Government will promote the increased take up of this scheme through business and employer representatives. Similarly, the Government will target the increased take-up of Revenue's Job Assist scheme, which provides for a double wages deduction to employers who employ a person who has been unemployed for 12 months or more.

Under Pathways to Work, the public employment services will be reformed through the creation of the new National Employment and Entitlements Service, which will provide better targeted services to both job seekers and employers. The new service will include the provision of recruitment and job-matching services for employers, to facilitate the hiring of workers from the Live Register.

Bernard J. Durkan

Question:

104 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if he will indicate arising from any discussion he has had with employers, the extent to which he is in a position to provide incentives for employers in the services sector to increase their labour force; and if he will make a statement on the matter. [11828/12]

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Bernard J. Durkan

Question:

105 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if he will indicate arising from any discussion he has had with employers, the extent to which he is in a position to provide incentives for employers in the manufacturing sector to increase their labour force; and if he will make a statement on the matter. [11829/12]

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I propose to take Questions Nos. 104 and 105 together.

The role of Government is to create the conditions where enterprise, entrepreneurship and innovation can flourish. It is through the creation of opportunities for growth that employers will be incentivised to increase their labour force and quality employment opportunities will be created. Our objective is to put the country back on the road to economic recovery and full employment. The Action Plan for Jobs, which I launched a fortnight ago, outlines the Government's plan to rebuild the economy and create jobs. The plan will improve access to finance for small businesses, reduce costs and red tape, and improve supports for exports, management and innovation.

Supporting new and existing indigenous businesses to grow and export is central to our plans for recovery, growth and jobs. The Action Plan for Jobs contains a significant number of measures which are aimed specifically at the facilitation and incentivisation of growth among SMEs throughout the country. These are all actions which will ultimately result in the creation of high quality jobs. For example, the introduction of a microfinance fund will provide loans of up to €25,000 to micro-enterprises in the Irish economy and the establishment of a potential exporter Division within Enterprise Ireland will stimulate greater activity within companies across all regions and reorient those demonstrating real growth potential from the domestic to the international market place.

Under the Action Plan for Jobs, the micro-enterprise supports in Ireland will also be reshaped to put in place an improved enterprise support structure for small businesses throughout Ireland. EI will work with the Local Authorities to establish a new network of Local Enterprise Offices (LEOs) in each Local Authority, which will combine the enterprise support service of the previous CEBs and the business support work of the Business Support Units in the Local Authorities.

I am confident that the measures outlined in the "Action Plan for Jobs", together with the other policies and initiatives being pursued will create the necessary conditions for growth, give employers confidence and create the employment opportunities needed across all sectors.

Question No. 106 answered with Question No. 102.

Bernard J. Durkan

Question:

107 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which various costs have emerged as a disincentive to job expansion in existing enterprises in the manufacturing and services sectors; the extent to which he has identified the full extent of job creation opportunities arising therefrom; and if he will make a statement on the matter. [11831/12]

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Bernard J. Durkan

Question:

108 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his office has examined the job creation opportunities in the low, medium and higher income sectors in both manufacturing and services; and if he will make a statement on the matter. [11832/12]

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I propose to take Questions Nos. 107 and 108 together.

Cost competitiveness is one of the key determinants of every firm's success. While we have seen reductions in wage costs and the costs of a range of business inputs, in many cases Irish prices are coming down from a high cost base and the costs of a range of business inputs remain relatively expensive compared to other jurisdictions. In addition, access to finance remains a key issue for many small and medium sized enterprises.

The objective of the Government's Action Plan for Jobs, which was published on 13 February last, is to transform the operating environment for business in order to support enterprise growth and enable job creation. The Government will achieve this objective by systematically removing obstacles to competitiveness, promoting innovation and trade, supporting new and existing businesses to develop and expand, and by deepening the impact of foreign direct investment in Ireland. The Government has also identified a number of key sectors where Ireland can gain competitive advantage in global markets and benefit from employment growth.

The Action Plan includes a number of initiatives to reduce costs on businesses, including the enactment of legislation to reform wage setting mechanisms, measures to assist companies to manage their energy costs, the reduction of charges levied on business where possible, placing downward pressure on the costs of insurance, professional and legal services, and promoting greater competition.

In addition, the Action Plan contains a range of measures to address issues of access to finance such as:

closely monitoring the lending targets set for the pillar banks and ensuring that these targets are met;

helping SMEs to improve the quality of their loan applications;

the introduction of a targeted Partial Credit Guarantee for SMEs; and

the roll-out of the Microfinance Fund for small business start-ups.

One of the main features of the Action Plan is the identification of a range of sectors which are targeted as areas for growth. These include manufacturing and a number of services sub-sectors. The development of these sectors will provide opportunities for people with a range of skills and at different income levels.

Bernard J. Durkan

Question:

109 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the total number of jobs created in the indigenous industries, manufacturing and services over the past twelve months; the extent to which this compares with previous years; and if he will make a statement on the matter. [11833/12]

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The figures in respect of jobs in Enterprise Development agency-supported companies and those supported by the County and City Enterprise Boards (CEBs) are compiled in the Forfás Annual Employment Survey and the CEB Annual Employment Survey respectively. The most up to date of these detail employment figures up until 2010. As the information is compiled on an annualised basis, the figures in respect of 2011 are not yet available.

There were 17,582 full time jobs created in agency-assisted companies in 2010 in the manufacturing and services sectors. The number of full time jobs created in CEB-supported companies for 2010 was 4,433. CEB job figures are not compiled on a sectoral basis.

Bernard J. Durkan

Question:

110 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the total number of jobs created as a result of foreign direct investment over the past 12 months; the extent to which this compares with previous years; and if he will make a statement on the matter. [11834/12]

View answer

The Forfás Annual Employment Survey which reports on job gains and losses in companies that are supported by the Department of Jobs, Enterprise and Innovation's industrial development agencies shows that 13,068 jobs were created in IDA supported companies in 2011, which was an increase of 20% on the previous year's level of 10,897 and well in excess of the figure of 4,615 for 2009. The total number of those employed directly by IDA client companies now stands at almost 146,000.

Despite the current global economic situation and a strong increase in international competition there was an overall increase of 17% in the number of investments from IDA client companies in 2011. There was a record of 148 new investments won during the year across all industry segments and most encouragingly, there was an increase of 30% in the number of companies investing in Ireland for the first time.

The immediate outlook for Ireland's foreign direct investment portfolio is positive with a strong short term pipeline in place, with continued support from the Department of Jobs, Enterprise and Innovation. IDA Ireland has assured me that it is confident of securing further investments particularly in life-sciences which will include a number of capital intensive investments involving significant construction projects. Already since the beginning of the year, announcements have been made in relation to a major site expansion by Allergan with the creation of 200 jobs and Eli Lilly investing €330 million in a brand-new facility at its Kinsale campus in Cork which will create 300 jobs during construction and 200 highly skilled employees when operational.

The pipeline from the ICT, International Financial Services, Digital Media and Business Services sectors is also strong in the short term with announcements by Accenture with the creation of 100 jobs, HP, Galway with the creation and support of 280 jobs and Pay Pal, Dundalk with the creation of 1,000 jobs.

I have every confidence that with continued strong support from Government and the Department of Jobs, Enterprise and Innovation IDA will continue to win investment for this country in the months and years ahead.

Bernard J. Durkan

Question:

111 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the number of high-skilled jobs provided in County Kildare on an annual basis over the past five years; and if he will make a statement on the matter. [11835/12]

View answer

The figures in respect of jobs in Enterprise Development agency-supported companies and those supported by the County and City Enterprise Boards (CEBs) are compiled in the Forfás Annual Employment Survey and the CEB Annual Employment Survey respectively. The most up to date of these detail employment figures up until 2010. As the information is compiled on an annualised basis, the figures in respect of 2011 are not yet available.

The figures in respect of jobs in agency and CEB-supported companies are set out in Tables 1 and 2 accompanying this reply. There are no figures available specific to "high skilled" jobs.

Table 1

Number of persons employed in Agency-assisted companies in Co. Kildare

2007

2008

2009

2010

16,514

15,632

14,064

14,666

Table 2

Number of persons employed in CEB-assisted companies in Co. Kildare

2007

2008

2009

2010

1,004.5

975

897.5

932

Bernard J. Durkan

Question:

112 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the number of jobs directly or indirectly supported or assisted through the Industrial Development Agency or the county enterprise board in both manufacturing and services throughout County Kildare in each of the past five years to date in 2012; and if he will make a statement on the matter. [11836/12]

View answer

Figures showing the number of jobs in County Kildare supported by IDA client companies and by the Kildare County Enterprise Board in the five year period 2007 to 2011 are set out in the attached tabular statement. Figures for 2012 will not be available until the end of the year.

One of the targets set out in IDA Ireland's Strategy document "Horizon 2020” is the creation of 62,000 direct jobs in 640 investment projects in the period to 2014, which will result in 105,000 new jobs overall in the economy, with 50% of investments being located in areas outside of Dublin and Cork. The Strategy also highlights that IDA Ireland will work with existing client companies operating in Ireland to transform the existing foreign direct investment (FDI) base in order to develop, retain and grow employment in these companies.

IDA's strategy for Kildare is to promote the county as part of an integrated East Region with access to a population base of 1.5 million people. The East region has 551 IDA supported companies employing 72,000 people of which almost 10,000 are employed in County Kildare. Kildare has a strong base of manufacturing companies with the majority performing well in a challenging environment e.g. Intel, Wyeth Medica, Braun, Hewlett Packard and Proctor and Gamble. IDA is actively engaged with all its existing client companies in Kildare highlighting the ongoing importance of upskilling and re-skilling and the need to add high value activities in order to ensure their ongoing development and sustainability for the long term. A recent announcement by Hewlett Packard that with IDA support it is proposing to recruit 150 research and development jobs to support global markets across its Irish operations in Kildare and Galway highlights this ongoing engagement and relationship with its existing client companies.

Meanwhile, Kildare County Enterprise Board provides support for micro-enterprises in the start-up and expansion phases, promotes and develops indigenous micro-enterprise potential and stimulates economic activity and entrepreneurship at local level.

In addition IDA is working with others in marketing suitable property solutions in Naas, Athy and Newbridge.

Table showing the number of people employed in IDA supported companies in County Kildare in each of the years 2007 to 2011

2007

2008

2009

2010

2011

11,123

10,610

9,127

9,937

9,958

Table showing the number of people employed in existing CEB supported enterprises in County Kildare in each of the years 2007 to 2011

2007

2008

2009

2010

2011

1,004

975

897

1,081

1,002

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