Dáil Éireann Debate, Thursday - 21 February 2013
127. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if he will set out the most commonly quoted obstacles to investment and job creation here; the extent to which reference is made to job losses in each of the past five years to date in order to assess the best methodology to address such issues in the future; and if he will make a statement on the matter. [9447/13]
View answer131. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the most commonly presented reasons for job losses in the economy in the indigenous or foreign investment sectors in each of the past five years to date; the action taken or proposed to address any such issues; and if he will make a statement on the matter. [9451/13]
View answerI propose to take Questions Nos. 127 and 131 together.
Businesses in Ireland and in most Western economies have been operating in a very difficult environment over the last number of years due to the global economic downturn. In general terms, job losses often arise due to a combination of issues affecting the long-term viability of a company, rather than a singular difficulty. However, some of the more commonly stated reasons for business decline and consequent job losses include:
- significant decreases in customer/market demand due to the recession in Ireland and in key trading partners;
- financial difficulties;
- increased costs;
- increased competition from competitor companies;
- loss of key customers; or
- rationalisation/consolidation/restructuring of Group structures involving the closure of a company unit.
Many of these issues would also be likely to have an impact on investment and job creation decisions. Through the Action Plan for Jobs process, the Government is attempting to address those issues that are within its remit to change.
Key areas which I have been working on directly to support job creation by enterprise include improving access to finance for businesses, reforming the statutory wage setting mechanisms, reducing other costs and administrative burdens for enterprise, improving our export performance, and supporting innovation. Details of progress on these measures are available in the Quarterly Progress Reports on the Action Plan for Jobs which are available on my Department’s website, www.enterprise.gov.ie.
In addition, IDA Ireland continues to attract significant levels of investment to Ireland from overseas. In 2012, the agency attracted 145 individual investments, with 66 of those from companies coming to Ireland for the first time. IDA Ireland client companies created a total of 12,722 new jobs in 2012, with net job creation of 6,570, representing the highest level of growth in a decade.
Enterprise Ireland client companies increased their employment by over 3,300 net jobs in 2012. The agency is promoting investment in indigenous firms through the Development Capital Fund, Innovation Fund Ireland and the Seed and Venture Capital scheme.
