Written Answers Nos. 31-38
31. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation the number of the distinct actions contained in the Action Plan for Jobs 2012 that have been delivered to date; and if he will make a statement on the matter. [3306/13]
View answerThe Action Plan for Jobs contained over 270 individual actions to be delivered in 2012, spanning all Government Departments and 36 State Agencies. The 270 actions are broken down further into approximately 480 Quarterly milestones or “measures” which are reported on at the end of each Quarter. These Quarterly Progress Reports are published on my Department’s website, www.enterprise.gov.ie.
The most recent Progress Report published covered the Third Quarter of 2012. It indicated that 218 (96%) of the 227 quarterly milestones to be achieved in the first three Quarters of 2012 had been delivered, with nine actions oustanding.
The Progress Report for the fourth Quarter of 2012 is due to be published shortly. I anticipate that it will show a continued high success rate in delivering the quarterly milestones and will confirm that over 90% of the 270 actions under the Action Plan were implemented in full last year.
The process of robustly and rigorously monitoring the implementation of the Action Plan for Jobs is a unique feature of the Government’s approach to the process of supporting job creation. It has ensured that all Ministers have remained focused on putting jobs at the heart of the Government’s agenda. This process will continue in 2013 in relation to the 2013 Action Plan for Jobs which will be published in the coming weeks.
Any actions which were not delivered from the 2012 Action Plan for Jobs will, where appropriate, be progressed in 2013 or replaced with alternative actions.
32. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation his views on the major competitive advantage that the State has in attracting foreign direct investment. [3226/13]
View answerAttracting Foreign Direct Investment (FDI) to Ireland has been one of the key pillars of Ireland’s industrial policy over the last 40 years. Ireland’s competitive advantage in this regard has been gained by the pursuit and implementation of a range of inter linked measures which include:
- The creation of the European Single Market which ensures that foreign owned companies based in Ireland have direct access to an ever increasing European market;
- Ireland’s position as the only English speaking member of the eurozone and as a country whose commitment to membership of the European Union is very strong;
- The securing of EU support for substantial investment in Ireland’s infrastructure;
- Significant investment in education by Government to create a pool of highly skilled young people;
- Increased investment by both the public and private sectors to transform Ireland into a knowledge economy;
- The Government’s stated objective to maintain our 12.5% corporate tax rate;
- Our increased competitiveness in business costs;
- The ongoing positive experiences of foreign owned companies which quickly became reference sellers; and,
- The responsiveness, agility and flexibility of Irish managers and workers.
At the end of 2012 there were over 152,000 people employed in 1,033 IDA Ireland supported companies. The challenge for IDA Ireland is to sustain, embed and grow this investment. However, as Ireland is no longer a low cost labour location, it will be necessary for IDA Ireland to continue to maximize Ireland’s competitive advantage as it targets potential investors. In this regard, IDA Ireland is targeting companies involved in more knowledge based activities that are driven by technology and innovation, with an emphasis on higher skill requirements and R&D. Drawing upon its experience, IDA Ireland is aware that the key requirements of potential investors, in determining where they will visit, and consequently, where they will potentially locate, tend to centre on the following:
- Access to a pool of suitably qualified employees;
- The availability of world-class access infrastructure in terms of road access to key cities and ports and international airports;
- The availability of telecommunications infrastructure with multiple carriers and competitive pricing with business support services;
- Third level educational infrastructure including universities and technical colleges that are located on, or are close to, business and technology parks;
- A range of affordable, state-of-the-art property solutions; and,
- The attitude of the local community to potential investors.
IDA Ireland has indicated that it will continue to exploit Ireland’s competitive advantages as it seeks to meet these requirements with a view to creating 62,000 jobs over the period 2010 to 2014 in accordance with its Horizon 2020 Strategy.
33. Deputy Pádraig Mac Lochlainn asked the Minister for Jobs, Enterprise and Innovation the steps taken by him to ensure that locally owned operated business can compete with large multinational chains. [3228/13]
View answerMy Department works across Government to ensure that we create the right business environment for all enterprises to trade and create jobs. In general, the business operating environment in Ireland is the same for indigenous enterprises as it is for multinationals.
Through the Action Plan for Jobs 2012, we are focusing on policies that will support start-ups and help indigenous businesses to grow and compete, not just in the domestic market, but in global markets. These policies are about driving down the cost of doing business, ensuring the right skills are available and helping businesses to access the finance that is most appropriate to their needs, be it micro-finance, venture capital or development capital.
Multinationals are also an important part of Ireland’s base. Apart from the jobs they create and the innovation they bring to the enterprise ecosystem, they are a significant purchaser of goods and services from indigenous enterprises. Indeed, one of the selling points used to attract Multinationals here is the quality, responsiveness and innovation of indigenous Irish enterprises, as pivotal suppliers of goods and services into the multinationals.
Ireland has some of the most innovative enterprises in the world today, with cutting-edge, well-priced goods and services, competing successfully with other companies across the globe. We have particular strengths in sectors such as software; medical technologies and food. However, due to the small size of the domestic market, Irish companies need to export if they are to achieve scale.
A key part of the Government’s plan for jobs and growth is ensuring that we derive more benefit as an economy, from the world-leading multinational companies that have located operations in Ireland. These companies currently source approximately €80 billion in goods and services globally, of which over €11billion currently comes from Irish businesses. The Government is targeting the global supply chain of multinational companies in an effort to help Irish companies win new business, grow exports and ultimately create new jobs. As I recently highlighted, a 5% increase in global sourcing by multinationals from Irish companies would lead to annual benefits of over €500million for Irish companies.
In this regard, a new joint Enterprise Ireland/IDA Senior Management team has been established under the Action Plan for Jobs 2012, to drive this initiative. IDA Ireland has confirmed that its focus is on ensuring that each engagement with a client company, whether existing or new, includes, where appropriate, a discussion on the opportunity and potential for global sourcing from supplier companies based in Ireland.
The 65 companies selected for the first phase of the initiative account for €20bn in sales/exports and employ 27,000 people. They have a total material spend in 2012 of €5.25bn, of which €0.5bn (9.5%) is currently sourced in Ireland. The value of their total services spend is €6.2bn with €0.63bn (10%) currently sourced in Ireland.
There is a need in the Irish economy for both well performing indigenous companies and multinationals. Each brings a unique contribution to economic growth, and both indigenous and foreign-owned companies provide valuable jobs, whether they are trading on the domestic market or exporting into global markets.
34. Deputy Brian Stanley asked the Minister for Jobs, Enterprise and Innovation the number of Irish companies in receipt of exporting supports, both soft and financial. [3244/13]
View answerThe development agencies are unable to directly support exports under EU State Aid rules.
Enterprise Ireland works with approximately 3,000 clients providing both soft and financial support to assist in enhancing their capability and employment potential. Enterprise Ireland clients have Development Advisors who work with them to identify what supports are most appropriate to assist their individual business strategies. In addition, Enterprise Ireland works with companies looking to export for the first time through its Potential Export Division. In 2012 EI worked with 520 such companies.
Furthermore, in 2012 in direct response to the demands of entrepreneurs and client companies, a number of new initiatives were introduced, including;
- Competitive Start Funds (CSF) for specific groups of very early stage entrepreneurs (investing €50k per start-up) – more than 150 High Potential Start-Ups (HPSUs) and CSF start-ups supported in 2012;
- Working closely with Department of Foreign Affairs and Trade, EI initiated engagement with 118 members of the Global Irish Networks in relation to developing an International Mentor Programme. In addition, 16 Ministerial Trade Missions focused on sectors and High Growth economies, the largest of which was to China led by the Taoiseach in March;
- Working closely with the Department of Education and Skills on an ‘Education in Ireland’ Strategy to attract 3rd and 4th level overseas students to Irish Higher Education Institutes; and
- Record numbers of applications from female entrepreneurs for Feasibility and Start-Up funds.
These new supports were in addition to Enterprise Ireland’s continuing financial supports for client companies including Job Expansion packages, significant R&D projects, Lean Funding, Innovation Partnership Programmes, Innovation Vouchers, indirect support through Seed and Venture Capital Funds and Business Angel Networks.
These financial supports are complimented by other supports including Overseas Offices support, short and long-term Management Development Programmes and the Enterprise Ireland mentor network, which provides training and mentoring to a further cohort of companies.
The newly established Micro Finance Fund Ireland and the Credit Loan Guarantee Scheme also make available further supports to a wider cohort of Irish companies.
The County and City Enterprise Boards (CEBs) work with approximately 10,000 clients in the indigenous micro-enterprise sector i.e. businesses which employ 10 or less workers. The CEBs provide a range of financial and soft supports to businesses in start-up and expansion phases. Some of these businesses would be exporting while others would have the potential to export.
35. Deputy Micheál Martin asked the Minister for Jobs, Enterprise and Innovation the work that has been done by the Manufacturing Development Forum; if he has examined their proposals; and if he will make a statement on the matter. [3327/13]
View answerThe Action Plan for Jobs 2012 included a series of actions to address the Manufacturing Sector, in order to exploit the advances in manufacturing technology, and to build and maintain a strong base of manufacturing activity. This developed as a result of the challenges facing the sector and of the imperative of supporting the employment levels in that sector.
A key proposal in the Action Plan for Jobs was that a Manufacturing Development Forum be established to assist the Government in identifying the needs of manufacturing enterprises and to progress a transformation agenda. I therefore established such a Forum in June last and it comprises key industry representatives and officials from relevant Agencies. I asked the Forum to consider the biggest impediments to job creation in manufacturing in Ireland and the immediate areas of opportunities for job creation in the sector.
The Forum has fully engaged with Forfas on a new Manufacturing Strategy and it has contributed a range of ideas and suggested priorities to that work. In addition, the Forum members participated in a range of workshops to identify solutions for the key challenges facing the sector. I greatly appreciate the input of the Forum members which has fed into a very comprehensive analysis by Forfas of the sector and its needs.
It is envisaged that the Forum will continue as a consultative body, which will provide the Department with valuable insights on policy issues impacting on that sector. This will be especially useful when the Forfas report, currently being finalised, is being implemented.
36. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation his plans to bring foreign direct investment to County Kerry; and if he will make a statement on the matter. [3179/13]
View answerI am informed by IDA Ireland that, having regard to its statutory responsibility for attracting Foreign Direct Investment (FDI) to Ireland, it will continue to promote Kerry as part of its marketing efforts, in response to specific client queries and also on an opportunistic basis.
At the end of 2012 there were 12 IDA Ireland supported companies in Kerry with total employment of circa 1,600 people. In accordance with its Horizon 2020 Strategy, IDA Ireland continues to engage with these client companies in order to transform the existing FDI base with a view to developing, retaining and growing employment opportunities. This is given particular emphasis in respect of client companies in Kerry, who are located outside of IDA Ireland’s main Gateway locations.
The provision of flexible and cost effective property and infrastructure solutions is a key aspect in developing regional value propositions and in attracting FDI. In this regard IDA Ireland will continue to market all available land and buildings in County Kerry and work with local authorities and property developers to deliver appropriate solutions in response to potential investors’ needs.
IDA Ireland has indicated that, in seeking to win FDI, the concept of scale is crucial. Leading global corporations require a significant population pool, access to qualified talent, world standard physical and digital infrastructure coupled with the availability of a range of professional and business support services. Ireland has only one such Metro Region, the Greater Dublin area, so, in order to achieve balanced regional economic development, the Agency prioritises the marketing of its Gateway locations within each Region e.g. the Gateways in the Mid-West and South West Regions which include Limerick and Cork as the locations of critical mass. However, the Agency also highlights the opportunities provided by other locations such as the linked hubs in County Kerry of Killarney and Tralee on an opportunistic basis, which are within commuting distances of the Gateways.
With continuing enhancement and improvements in physical and digital infrastructure, an FDI project secured for one Gateway can have a positive impact on other Gateways and their surrounding areas. The recent Northern Trust announcement in Limerick, which will create 400 jobs, is a case in point as this announcement will have a positive economic impact, directly and indirectly, on County Kerry.
IDA Ireland has also explained that, typically, a potential investor is shown three or four locations within a Gateway Region that can meet its requirements. In selecting such locations, IDA Ireland endeavours to include locations which have been affected by closures/job losses. However, whilst IDA Ireland seeks to influence the selection of a location, the final decision on where to locate is taken in all cases by the client company based on its business requirements.
38. Deputy Patrick Nulty asked the Minister for Jobs, Enterprise and Innovation if he was lobbied by the Industrial Development Agency and or any multinational corporations regarding Budget 2013; and if he will make a statement on the matter. [56530/12]
View answerThe Enterprise Development Agencies, i.e. the IDA, Enterprise Ireland, Forfás and Science Foundation Ireland, made a joint Pre-Budget 2013 Submission to my Department.
Many IDA client companies are members of representative organisations. These representative organisations make an annual Pre-Budget Submission to the Minister for Finance on behalf of their members, examples would include IBEC and the American Chamber of Commerce.
My responsibilities include working closely with industry sectors to attract, retain and develop Foreign Direct Investment on an on-going basis. As part of discharging my role as Minister, I can confirm that I regularly meet with representatives of both multinationals and indigenous companies on an ongoing basis including in the period leading up to the Budget in December.
