Dáil Éireann Debate, Thursday - 24 January 2013
14. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the steps taken to prevent job losses such as those lost with the closure of a hotel (details supplied) in County Meath; and his plans to target job creation to areas that are experiencing ongoing job losses. [3221/13]
View answerAs Minister for Jobs, Enterprise and Innovation, I regret any job losses. It is an unfortunate reality that businesses can find themselves in difficulty for a wide range of reasons. If my Department becomes aware of a potential company closure in advance, or if the business at risk is a client of one of my Department’s agencies, the Department or agency will do everything within their power to assist that business. However, it is not always possible to prevent closures or job losses.
A number of new measures of particular assistance to businesses under pressure have been introduced recently, including the introduction of the Micro Finance Loan Fund and the Credit Guarantee Scheme, reform of wage setting mechanisms, allowing easier access to examinership, reducing employers PRSI and the introduction of a reduction in the VAT rate from 13.5% to 9% from 1st July 2011 on a range of labour-intensive services, with a particular focus on the hospitality sector. In addition, my Department is working closely with the Department of Finance and the Credit Review Office to evaluate evidence on credit availability and to ensure that the amount of credit flowing to the SME sector is maximised to facilitate sustainable job creation and retention.
The tourism sector is a particular focus of the Action Plan for Jobs reflecting the Government’s commitment to develop the sector by, for example, targeting capital investment in public tourism product and infrastructure, and using the Tourism Marketing Fund to support international marketing and advertising programmes. Also, “The Gathering”, which takes place this year, will be Ireland’s biggest ever tourism initiative.
The enterprise support agencies of the Department, Enterprise Ireland, IDA and the County Enterprise Boards are all alert to the need for business to anticipate difficulties and have developed various Programmes for process improvement, innovation, mentoring and skill development to assist companies in making necessary transformations.
Despite a very difficult domestic and external economic environment, we are beginning to see the positive impact of the Government’s policies. 2012 saw significant net job creation by EI and IDA-supported companies, building on the positive results of 2011 and following successive years of significant net job losses.
I am currently preparing the 2013 Action Plan for Jobs on behalf of the Government, and in that context, am exploring further measures which can be taken to transform our economy and support job creation and retention across all regions of the country.
