Caoimhghín Ó Caoláin
Question:40. Deputy Caoimhghín Ó Caoláin asked the Minister for Jobs, Enterprise and Innovation the work with the relevant Ministers in Northern Ireland to promote economic activity along the border. [3234/13]
View answerEconomic Competitiveness
Questions (40)
Written answers
North South economic co-operation is and will remain a priority of mine and of the Government. To this effect, there is on-going dialogue between relevant Ministers and officials, North and South, to promote economic development, job creation and innovation, in the border region.
From my own perspective, I attend meetings in the Trade and Business development sectoral format of the North South Ministerial Council, which are held twice a year. I also attend two meetings each year of the North South Plenary which are hosted by either the Taoiseach or the First and Deputy First Ministers. At these meetings there is full engagement with Northern Ministers, particularly at the sectoral meetings, where I have direct discussions with my NI counterpart, Ms Arlene Foster MLA, Minister for Enterprise, Trade and Investment, on a wide range of issues of mutual interest.
My officials engage in on-going dialogue with their counterparts in the Northern Ireland Department of Enterprise, Trade and Investment (DETI). A key area of such regular engagement is on the operation of InterTradeIreland , the North/South Trade and Business Development Implementation Body, which is co-funded by my Department and DETI. All matters relating to the management of that body and the planning and oversight of its schemes and programmes, involve close interaction by the officials of both Departments. Another key area of engagement at official level between our Departments is our joint support for enterprise projects under the Interreg initiative, which is co-funded by the EU, by my Department and by either DETI or the Northern Ireland Department of Finance and Personnel. The most recent significant such project involves the establishment of a significant North West Science Park, to be co-located in Derry and Letterkenny, in respect of which both our Departments have agreed financial support. Officials of my Department are also engaging with DETI in relation to work on the EU’s Regional Aid guidelines.
There is a long history of co-operative action between North/South enterprise agencies to achieve mutual benefits. Enterprise Ireland, which stimulates the development of indigenous enterprise, has extensive contact with its Northern counterparts and works with them on a range of programmes to drive job creation in border areas. IDA Ireland collaborates with Invest Northern Ireland, for example, in the Northwest Now initiative. Several of the County Enterprise Boards in the border area are engaged in co-operative economic initiatives with various bodies in Northern Ireland, some funded by the enterprise strand of the Interreg programmes referred to above. My Department, along with our enterprise development agencies, will continue to work diligently with our counterpart Department and relevant Northern Ireland Agencies to increase the economic benefits, especially on job creation, research and innovation, which can accrue from practical co-operation.
Job Protection
Questions (41)
Martin Ferris
Question:41. Deputy Martin Ferris asked the Minister for Jobs, Enterprise and Innovation the effect of the Patent Cliff experienced between September and November 2012 on employment levels in the relevant sectors and the actions to ameliorate the situation; and if he foresees a similar situation developing in the next five years. [3245/13]
View answerWritten answers
In 2012, there was a reduction in employment levels in some pharmaceutical companies in Ireland due to the expiry of patent protections combined with increased competition from overseas sites. IDA has been working for many years to diversify the pharmaceutical base here in Ireland. Patents on several blockbuster drugs expired over the last decade and, notwithstanding these developments, there has been continued growth in the sector.
In growing the pharmaceutical sector, IDA's strategy has been to win leading company investment and to diversify the breadth of operations over multiproduct sites, including associated services and development of new compounds. We have been enormously successful in attracting eight of the top 10 global pharmaceutical companies and the world’s number one biotechnology company to Ireland. In addition, there are a large number of companies outside of the top ten who manufacture and successfully export from Ireland.
The Irish pharmaceutical industry is an enormously important and highly valued sector in Ireland. While the industry has been faced with some difficult years due to patent expiration and competitiveness challenges, the industry is starting to see an increase in R&D productivity with the advent of more targeted biotech therapies and personalised medicines. 2012 saw the highest number of new drugs, 39, approved by the United States Food and Drug Administration in 16 years and the predictions are that the industry has turned a corner. Ireland is in position to be the location of choice for development and manufacture of a number of these next generation drugs and the sector has been performing well in Ireland, with €1.1bn of new investment announced in 2012 from five major IDA client companies, which will result in 1,200 jobs.
While IDA Ireland will continue to enhance Ireland’s offering in the pharmaceutical sector, the Agency has indicated that it will also continue to focus on biopharmaceuticals, which represent the next wave of opportunity in the industry. Indeed, it successfully attracted and developed globally leading programmes from companies such as Allergan, Amgen, Centocor, Eli Lilly, Genzyme, Merck, and Pfizer with the result that Ireland now has a globally leading biopharmaceutical cluster in the next generation of pharmaceutical products.
Whether available as a generic or a brand, global companies strive to ensure that the products they produce are produced to the highest international standards. Ireland retains an exemplary global record in this regard with an excellent regulator in the Irish Medicines Board and with much improved competitiveness through wage reduction and restraint which is helping Ireland to compete with lower cost locations.
Additionally, Government agencies are continuing to invest in research and training to help the academic system support industry. IDA Ireland, through its overseas network, remains committed to maintaining and growing relationships with key decision makers in the pharmaceutical industry and IDA Ireland can offer assistance to companies to support new investment and enhancement of technical capability.
The overall export performance of the sector, therefore, is multifactorial and whilst there are challenges with regard to patent expiration, IDA Ireland has assured me that it will continue to support continuous improvement and transformation in its existing client base while seeking to win new FDI opportunities in the pharmaceutical sector.
Enterprise Support Services Provision
Questions (42, 46)
Derek Keating
Question:42. Deputy Derek Keating asked the Minister for Jobs, Enterprise and Innovation his views on whether a national mentoring strategy has benefits; and if he will make a statement on the matter. [3184/13]
View answerDerek Keating
Question:46. Deputy Derek Keating asked the Minister for Jobs, Enterprise and Innovation his plans to develop a national mentoring strategy; and if he will make a statement on the matter. [3183/13]
View answerWritten answers
I propose to take Questions Nos. 42 and 46 together.
I would like to acknowledge the importance of mentoring as a means of supporting start-up businesses and of sustaining and growing existing businesses. The mentoring programmes operated by the County and City Enterprise Boards (CEBs) and by Enterprise Ireland (EI) are a key element of the supports currently provided by those agencies to their respective client base.
The Deputy will be aware that the current system of supports to micro and small business will be enhanced as part of the Government’s reform of the national micro-enterprise and small business support infrastructure, which will be delivered through Local Enterprise Offices (LEOs) on foot of a comprehensive service level agreement between Enterprise Ireland (EI) and the Local Authorities. Enterprise Ireland will be charged with overseeing the delivery of supports, including mentoring programmes, across the LEO network.
Last November I launched a consultation paper to seek the views of all stakeholders on how the Government’s proposal to reform the national micro and small business support infrastructure can best be implemented. The closing date for receipt of submissions was extended to last Friday, 18th January, because of the level of interest. I received over 80 submissions, including submissions focussed on mentoring, which are now being considered by my Department. The submissions will also be considered in conjunction with Enterprise Ireland and the Implementation Working Group which is overseeing the implementation of the Government’s proposals. The question of a national mentoring programme will be considered in that context.
Local Enterprise Offices Remit
Questions (43, 49)
Seán Crowe
Question:43. Deputy Seán Crowe asked the Minister for Jobs, Enterprise and Innovation the saving envisaged in administration with the establishment of the LEOs; and if this will be directed to support startup business. [3240/13]
View answerSeán Crowe
Question:49. Deputy Seán Crowe asked the Minister for Jobs, Enterprise and Innovation the costs associated with the establishment of the new LEOs; and if this will come from the existing supports for business. [3239/13]
View answerWritten answers
I propose to take Questions Nos. 43 and 49 together.
The micro and small business sector is central to Ireland’s overall economic recovery and future growth. The purpose of restructuring the current model for the delivery of State supports to that sector is to rejuvenate and enhance the national model so as to ensure that the micro and small business sector is properly positioned to be a lead player in relation to job creation and to the economic recovery process.
It is envisaged that some administrative savings will be achieved over time as a result of the restructuring of the CEBs, primarily from reduced rental costs, although these savings will be modest and could take some years to realise due to existing leasing arrangements. In addition, over time there will be some savings from the removal of costs associated with the individual company status of each CEB.
Any overall savings achieved on administrative costs are to the ultimate benefit of the Exchequer. The Capital funding which is made available from the Exchequer to support the micro enterprise sector is ring-fenced for the sole purpose of assisting that sector through direct grant aid and targeted training and development and mentoring. The level of Capital funding secured in 2013 was maintained at previous years levels of €15m and is indicative of the Government’s commitment to the micro and small business sector.
Question No. 44 answered with Question No. 10.
Job Creation Issues
Questions (45)
Bernard Durkan
Question:45. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he and his Department expects to rely on innovation and technology to contribute to job creation and retention now and in the future with particular reference to the need to utilise the entire spectrum of technology and innovation in the challenge of national economic recovery in both the manufacturing and service sectors; if he has identified the extent to which manufacturing remains a key factor in this context in view of the the need for efficiency and competiveness in the ever more challenging marketplace; and if he will make a statement on the matter. [3250/13]
View answerWritten answers
My Department, and the relevant State Agencies under its remit, have a clear focus on the role of innovation as a key driver of business success and growth.Enterprise Ireland, IDA and Science Foundation Ireland, provide a range of innovation and technology development programmes that deliver financial, technical and experiential support. These programmes help companies become more innovative, encourage and support competitiveness They help grow sales and exports which in turn will lead to sustainable employment
The Government is not only maintaining levels of investment ion STI at a very challenging time fiscally, but we are also seeking to maximise the impact from that investment in termsof jobs and growth. At the end of February 2012, the Government agreed to implement the recommendations in the report of the Research Prioritisation Steering Group. The report identifies 14 priority areas which, along with 6 underpinning platform technologies and infrastructure that support the priority areas, will become the focus of the majority share of competitive State funding in research for the next five years. Implementation will see funding aligned with priority areas which encompass, amongst others, the areas of manufacturing and innovation in services and business processes.,
In relation to Manufacturing, this sector remains a key priority of enterprise policy. Forfas data shows that manufacturing employment grew by 1.1% in 2011, an increase of 2,198 jobs. This reverses a trend of four continuous years of job losses. There are currently 197,000 people directly employed in the sector. Employment growth in Irish manufacturing companies has been particularly strong in the Medical Device, Food and ICT sectors.
To address the challenges facing this sector, this Government’s Action Plan for Jobs 2012 included a series of actions for the Manufacturing Sector including . a Manufacturing Development Forum, which is working to develop, along with Forfas, a long-term vision and Strategic Plan for the role of manufacturing in Ireland’s economy aimed at reversing the recent employment trend and enabling a return to growth.
1. In addition, the Expert Group on Future Skills Needs, working alongside Forfás in the development of the Long-term Vision and Strategic Plan, has undertaken an in-depth study on the future skills needs of the manufacturing sector in Ireland, building on previous sub-sectoral work and undertaking new firm-level inquiry.
In relation to Services, this sector account for two thirds of total employment. While the majority of service firms are not supported by the State, significant number are employed in Agency supported firms. The Action Plan for Jobs 2012 outlined a range of sectoral initiatives to facilitate new and established services companies to grow, with particular focus on International Financial Services, Business Process Outsourcing/Shared Services, Education Services, Retail and Wholesale, Tourism, Construction Services and ICT Services.
I am confident that these measures, combined with other Government initiatives, including those to improve Competitiveness generally, will provide strong practical support to these important areas.
Question No. 46 answered with Question No. 42.