It is important to recognise the importance of the ICT sector in Ireland. Ireland is a successful major centre for ICT operations with nine of the top ten software companies in the world having substantial operations here. There are approximately 82,300 staff employed in the sector. Over the last year, there has been a 5% employment growth for companies engaged within computer programming, computer facilities management, ICT consultancy and ICT services activities. Employment within computer and electronic equipment manufacturing has also stabilised following an 18% decline over 2006-2009. Finally, the ICT sector accounts for 35% of total annual exports sales. This amounts to €60bn – of which €50bn is ICT software and ICT services and €10bn is ICT electronics, hardware and communications.
We all recognise that ICT, as a sector, will only grow in importance across the world. Ireland is not faced with making a choice between attracting ICT skills from abroad or developing ICT skills through its training and education systems. It can do both. It is certain that the ICT sector provides ample opportunity for Ireland and that there is likely to be excellent opportunities for ICT and other Science related graduates into the future. New ICT inward investments in Ireland are testimony to company confidence in Ireland as a strategic business location for a broad range of international activities. Ireland's inward investment proposition includes an availability of top quality talent and its technology base, as well as 12.5% corporation tax rate, 25% R&D tax credit and EU / Euro membership. The supply of high-level ICT skills is important in terms of meeting current demand and driving future demand, supporting new business growth and inward investment.
An increasing share of employment within the sector is being accounted for by people with high-level ICT skills. However, recruitment challenges have emerged and it is estimated that there are in excess of 1,500 job vacancies in the ICT sector. The Expert Group on Future Skills Needs (EGFSN) in its report “Addressing High–Level ICT Skills Recruitment Needs” (January 2012) has identified immediate skills needs at 8+ years’ experience and that while the recruitment of such experienced ICT professionals is smaller in number, it is linked to the additional hiring of a team of graduate and professional staff.
If the skills supply were available there is the potential for foreign companies to win more mobile investment within their group and for Irish companies to keep more of the work here rather than contract it out to their overseas offices, or outsource to third parties overseas.
Companies have indicated the need to plan five years out for the building up of the high–level ICT skills supply, both in terms of quantity and quality. While increasing the supply of high-level skills from domestic sources is the most sustainable way forward in the long term, in the short term, there continues to be a need to supplement Ireland’s skills stock through employment permits. Skills required in the high-tech sectors are in demand and in short supply globally and so Ireland has to compete with other countries for migrant labour, particularly in respect of high-level skills. One way is to ensure that Ireland’s employment permits system is geared towards attracting such skills.
The Department of Justice and Equality is responsible for the implementation of policy in relation to the admission of non-EEA nationals to the State and their residence in the State. There can be some confusion with regard to the term ‘IT Visa’ as it is suggestive of a visa-based immigration system. However, the employment permit regime provides for a managed system regarding entry to Ireland’s labour market as well as powers for enforcement of employment rights. Deputies will be only too aware that economic migrants are a vulnerable class of people. Any actions affecting inward economic migration should be cognisant of the need to ensure that such migrants are protected and made aware of their employment rights.
The employment permits regime is supporting the enterprise sector and significant levels of applications are successful particularly those based on high skills levels. My Department’s figures indicate:
- A reduction in total applications in line with economic circumstances, but an increase in Green Card applications, in line with a greater emphasis on high value skills;
- An increase in the proportion of applications in respect of ICT job roles with applications in respect of ICT job roles being more successful than the norm. Over 90% of ICT related applications are successful and over 1,200 ICT related applications have been approved so far this year.
Therefore, we should examine how the employment permits regime can be adjusted in order to facilitate attracting highly sought skills. My Department has reviewed its processes with a view to attracting more ICT related applications and is confident that significant improvements can be made shortly which will greatly enhance the employment permits regime to ensure growth is not hampered by skills shortages. Furthermore, the improvements will be of benefit to all companies, ranging from indigenous start-ups to large multinationals, in need of ICT skilled labour. The improvements will result in a more streamlined process and reduced waiting times.
It is also the Government’s ambition that Ireland should take advantage of the opportunities for employment in the ICT sector and that every opportunity is afforded to our graduates and unemployed to prepare them with the skills required to work in that sector. Employment permits are but one way of increasing the level of ICT skills available in the labour market and I am mindful that improvements in the regime must be done in a manner that does not undermine the work of my colleague the Minister for Education and Skills to increase domestic supply through our education system and targeting of the unemployed. In that regard, the Minister has already put in place plans to establish an overarching target of doubling the annual output from honours degree ICT undergraduate programmes to 2,000 graduates by 2018. These plans involve actions to:
- increase the domestic supply of honours degree graduates in the short term through expansion of conversion; and
- boost the longer term supply and quality of graduates from the higher education system.
Finally, work is also proceeding in my Department with regard to the preparation of new employment permits legislation which will provide for more flexibility and targeted instruments in support of the economy’s evolving skills needs. Heads of Bill were approved by Government last April and since then, my Department has been engaged with the Office of the Parliamentary Counsel in order to progress the drafting of the Bill.
