Skip to main content
Normal View

Tuesday, 23 Apr 2013

Written Answers Nos. 314 - 332

Enterprise Ireland Funding

Questions (314)

Pearse Doherty

Question:

314. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation if he will confirm for each of the years 2008, 2009, 2010, 2011 and 2012 the State funding provided to Wicklow Enterprise Park Limited; if he will confirm that it is a term of that company's memorandum and articles of association that directors will not receive any remuneration or other benefit in money or moneys worth from the company; and if that term has been violated in 2012. [18572/13]

View answer

Written answers

I am informed that only one of the State enterprise agencies, under the aegis of my Department, has supported the company. In this regard, I understand from Enterprise Ireland that they made payments to Wicklow Enterprise Park Ltd in 2011 of €110,627 and €25,000 in 2012. The support in 2011 was a Community Enterprise Centre Capital Grant and in 2012 the funding was a Community Enterprise Centre Employment Grant for a Centre Manager. No payments were made in 2008, 2009 and 2010. I am informed by Enterprise Ireland (EI) that it is aware of certain issues in relation to Wicklow Enterprise Park Limited, that EI is conducting a thorough review of its support for this Community Enterprise Centre and that the payment of €25,000 outstanding against a Business Development Manager grant of €50,000 is being withheld pending the outcome of that review.

Retail Sector

Questions (315)

Robert Troy

Question:

315. Deputy Robert Troy asked the Minister for Jobs, Enterprise and Innovation the projected outline for the opening of the Iceland store in County Longford; and if he will discuss the delay directly with the directors of Iceland Ireland and encourage them to maintain their commitment to opening a shop in County Longford. [18672/13]

View answer

Written answers

This matter is a commercial decision for the company in question and it would not be appropriate for me to become involved in the matter.

Jobs Data

Questions (316)

Seán Ó Fearghaíl

Question:

316. Deputy Seán Ó Fearghaíl asked the Minister for Jobs, Enterprise and Innovation if he will provide a breakdown of the level of employment, job losses and job creation in companies supported by the Industrial Development Agency and Enterprise Ireland for each of the past five years on a county-by-county basis; and if he will make a statement on the matter. [18792/13]

View answer

Written answers

The Forfás Annual Employment Survey reports on job gains and losses in companies that are supported by the enterprise development agencies. Details of the level of employment, job losses and the number of new jobs created in IDA and Enterprise Ireland client companies in each year from 2008 to 2012 are set out in the tabular statements.

I am delighted to say that 2012 was a particularly good year for job creation in Agency supported companies, with IDA client companies creating a total of 12,722 gross new full time jobs (6,750 net new jobs). The IDA client base in Ireland now employs 152,785 people, a level last recorded before the global financial crisis began in 2008. Clients of Enterprise Ireland created 12,861 gross new jobs (3,338 net new jobs- the highest net gain for Irish companies since 2006).

Table 1 - Level of employment, job losses and job creation in companies supported by Enterprise Ireland (PFT = Permanent Full Time)

County

Data

2008

2009

2010

2011

2012

Carlow

PFT Jobs

2,423

1,965

1,952

2,106

2,137

PFT Gains

223

40

225

253

152

PFT Losses

306

498

238

99

121

Cavan

PFT Jobs

4,645

3,995

3,925

4,021

4,151

PFT Gains

335

89

196

369

374

PFT Losses

372

739

266

273

244

Clare

PFT Jobs

1,812

1,547

1,618

1,552

1,580

PFT Gains

86

50

202

94

133

PFT Losses

181

315

131

160

105

Cork

PFT Jobs

19,408

17,287

16,411

17,784

18,629

PFT Gains

1,320

1,143

1,160

1,997

1,663

PFT Losses

1,440

3,264

2,036

624

818

Donegal

PFT Jobs

3,342

2,767

2,662

2,784

2,655

PFT Gains

270

164

218

301

180

PFT Losses

463

739

323

179

309

Dublin

PFT Jobs

54,961

50,318

48,859

49,477

50,159

PFT Gains

4,704

3,864

4,535

3,938

4,097

PFT Losses

6,071

8,507

5,994

3,320

3,415

Galway

PFT Jobs

6,107

5,470

5,494

5,901

6,063

PFT Gains

532

386

617

855

572

PFT Losses

818

1,023

593

448

410

Kerry

PFT Jobs

3,415

3,156

3,092

3,230

3,318

PFT Gains

260

172

142

232

194

PFT Losses

381

431

206

94

106

Kildare

PFT Jobs

4,736

4,698

4,450

5,160

5,450

PFT Gains

351

476

295

1,082

534

PFT Losses

683

514

543

372

244

Kilkenny

PFT Jobs

3,722

3,071

2,920

2,869

3,089

PFT Gains

176

74

140

150

320

PFT Losses

386

725

291

201

100

Laois

PFT Jobs

1,390

1,106

1,059

991

929

PFT Gains

93

23

76

158

76

PFT Losses

169

307

123

226

138

Leitrim

PFT Jobs

726

575

537

536

574

PFT Gains

44

11

31

46

54

PFT Losses

85

162

69

47

16

Limerick

PFT Jobs

7,311

6,337

6,113

6,048

6,279

PFT Gains

498

344

418

289

684

PFT Losses

1,075

1,318

642

354

453

Longford

PFT Jobs

1,864

1,693

1,575

1,529

1,557

PFT Gains

141

120

74

86

116

PFT Losses

161

291

192

132

88

Louth

PFT Jobs

5,257

4,523

4,247

4,225

4,328

PFT Gains

472

205

255

389

299

PFT Losses

624

939

531

411

196

Mayo

PFT Jobs

3,297

3,106

2,942

3,127

3,054

PFT Gains

289

203

144

716

197

PFT Losses

432

394

308

531

270

Meath

PFT Jobs

4,740

4,294

4,288

4,450

4,771

PFT Gains

325

350

301

362

615

PFT Losses

592

796

307

200

294

Monaghan

PFT Jobs

4,093

3,236

3,195

3,311

3,463

PFT Gains

341

74

252

391

294

PFT Losses

1,041

931

293

275

142

Offaly

PFT Jobs

3,353

2,749

2,730

2,731

2,699

PFT Gains

689

100

266

173

139

PFT Losses

386

704

285

172

171

Roscommon

PFT Jobs

1,646

1,323

1,191

1,165

1,119

PFT Gains

39

37

46

108

29

PFT Losses

391

360

178

134

75

Sligo

PFT Jobs

1,560

1,271

1,281

1,332

1,508

PFT Gains

87

74

131

140

247

PFT Losses

149

363

121

89

71

Tipperary North Riding

PFT Jobs

2,522

2,166

2,221

2,293

2,162

PFT Gains

91

23

161

127

49

PFT Losses

658

379

106

55

180

Tipperary South Riding

PFT Jobs

3,373

2,837

2,641

2,187

2,151

PFT Gains

321

56

80

123

81

PFT Losses

392

592

276

577

117

Waterford

PFT Jobs

5,093

3,914

3,919

4,217

4,063

PFT Gains

492

317

431

909

692

PFT Losses

902

1,496

426

611

846

Westmeath

PFT Jobs

2,948

2,242

2,151

2,181

2,352

PFT Gains

379

92

154

340

275

PFT Losses

374

798

245

310

104

Wexford

PFT Jobs

4,250

4,010

3,942

3,793

3,881

PFT Gains

368

310

222

191

385

PFT Losses

448

550

290

340

297

Wicklow

PFT Jobs

3,928

3,263

3,137

3,122

3,339

PFT Gains

265

91

215

204

410

PFT Losses

663

756

341

219

193

Table 2 - Level of employment, job losses and job creation in companies supported by IDA Ireland (PFT = Permanent Full Time)

County

Data

2008

2009

2010

2011

2012

Carlow

PFT Jobs

457

431

316

391

506

PFT Gains

74

49

87

75

116

PFT Losses

28

75

202

0

1

Cavan

PFT Jobs

1,071

1,033

1,035

1,016

1,020

PFT Gains

32

18

52

3

43

PFT Losses

26

56

50

22

39

Clare

PFT Jobs

1,180

1,210

1,219

1,213

1,222

PFT Gains

140

123

30

27

37

PFT Losses

16

93

21

33

28

Cork

PFT Jobs

21,293

20,031

20,457

21,547

22,535

PFT Gains

2,116

1,108

1,393

1,990

1,979

PFT Losses

1,489

2,370

967

900

991

Donegal

PFT Jobs

1,663

1,697

1,633

1,882

2,050

PFT Gains

67

63

152

271

186

PFT Losses

48

29

216

22

18

Dublin

PFT Jobs

53,344

48,813

48,545

52,014

55,344

PFT Gains

4,351

2,284

5,037

6,864

6,389

PFT Losses

4,250

6,815

5,305

3,395

3,059

Galway

PFT Jobs

9,803

9,168

9,447

10,325

10,887

PFT Gains

636

442

789

1,047

859

PFT Losses

764

1,077

510

169

297

Kerry

PFT Jobs

1,798

1,407

1,313

1,294

1,360

PFT Gains

86

25

50

163

74

PFT Losses

108

416

144

182

8

Kildare

PFT Jobs

10,610

9,127

9,937

9,828

9,515

PFT Gains

113

30

1,228

398

176

PFT Losses

626

1,513

418

507

489

Kilkenny

PFT Jobs

468

356

371

399

579

PFT Gains

1

0

17

33

180

PFT Losses

9

112

2

5

0

Laois

PFT Jobs

109

115

124

100

79

PFT Gains

0

17

10

3

2

PFT Losses

20

11

1

27

23

Leitrim

PFT Jobs

1,013

988

972

780

629

PFT Gains

35

5

65

7

1

PFT Losses

43

30

81

199

152

Limerick

PFT Jobs

8,624

6,280

5,971

6,072

6,373

PFT Gains

286

172

163

233

400

PFT Losses

694

2,516

472

132

99

Longford

PFT Jobs

847

781

658

608

632

PFT Gains

30

8

4

0

24

PFT Losses

88

74

127

50

0

Louth

PFT Jobs

1,529

1,317

1,024

1,075

1,416

PFT Gains

75

33

43

109

386

PFT Losses

212

245

336

58

45

Mayo

PFT Jobs

3,010

2,948

3,112

3,094

3,162

PFT Gains

132

97

183

69

126

PFT Losses

126

159

19

87

58

Meath

PFT Jobs

1,270

1,116

1,075

1,100

1,065

PFT Gains

132

30

38

53

68

PFT Losses

307

184

79

28

103

Monaghan

PFT Jobs

351

353

367

282

275

PFT Gains

15

19

28

0

3

PFT Losses

14

17

14

85

10

Offaly

PFT Jobs

1,193

1,087

828

772

802

PFT Gains

29

22

25

31

31

PFT Losses

55

128

284

87

1

Roscommon

PFT Jobs

946

855

804

843

896

PFT Gains

41

0

12

51

53

PFT Losses

0

91

63

12

0

Sligo

PFT Jobs

2,273

2,190

1,999

2,041

2,052

PFT Gains

103

54

53

93

149

PFT Losses

64

137

244

51

138

Tipperary North Riding

PFT Jobs

550

362

277

296

290

PFT Gains

13

0

14

22

0

PFT Losses

46

188

99

3

6

Tipperary South Riding

PFT Jobs

3,217

3,376

3,255

3,060

2,915

PFT Gains

262

252

56

84

10

PFT Losses

26

93

177

279

155

Waterford

PFT Jobs

6,079

5,622

5,329

4,637

4,526

PFT Gains

176

112

146

72

75

PFT Losses

483

569

439

764

186

Westmeath

PFT Jobs

2,053

1,804

1,892

2,030

2,252

PFT Gains

134

231

128

194

252

PFT Losses

222

480

40

56

30

Wexford

PFT Jobs

2,147

2,071

2,178

2,182

2,187

PFT Gains

120

14

174

51

111

PFT Losses

73

90

67

47

106

Wicklow

PFT Jobs

2,559

2,328

2,167

1,986

1,936

PFT Gains

53

39

13

66

60

PFT Losses

327

270

174

247

110

Question No. 317 answered with Question No. 136.

Public Sector Staff Remuneration

Questions (318)

Finian McGrath

Question:

318. Deputy Finian McGrath asked the Minister for Jobs, Enterprise and Innovation if he will provide in tabular form the number of civil/public servants under the remit of his Department who earn more than €500,000, between €400,000-€500,00, €300,000 - €250,000, €250,000 - €200,000, €200,000 - €150,000, €150,000 - €100,000, €100,000 - €80,000, €80,000 - €60,000, €60,000 - €40,000 and less than €30,000. [18872/13]

View answer

Written answers

The following table identifies the persons employed in my Department broken down by the salary bands supplied. The numbers include departmental staff in the following Offices of the Department: The Companies Registration Office, The Registry of Friendly Societies, The Office of the Director of Corporate Enforcement, The Labour Court, The Labour Relations Commission, The National Employment Rights Authority, The Employment Appeals Tribunal.

Under €30,000

257

€30-40,000

213

€40-60,000

298

€60-80,000

66

€80-100,000

49

€100-150,000

25

€150-200,000

5

€200-250,000

0

€250-300,000

0

€300-400,000

0

€400-500,000

0

Over €500,000

0

Information regarding the employees of the Agencies whose gross salary is in each of the bands listed above is a day to day matter for the Agencies and I have asked that the relevant information be provided to the Deputy directly.

Work Permit Criteria

Questions (319)

Bernard Durkan

Question:

319. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to the situation affecting a number of holders of work permits who have resided and have been employed here for several years most often in the same employment, but whose work permits were not renewed regularly but were given the impression that their documents were in order and who now find themselves deemed to be ineligible for residency and are deemed to have been illegally in this country; if he will examine such cases as a matter of urgency and make the necessary provisions to ensure that such issues are addressed; and if he will make a statement on the matter. [18995/13]

View answer

Written answers

The employment permits regime is a managed system in that a 3rd country national (i.e. a national who is not a member of the European Economic Area and Switzerland) cannot be employed in the State without an employment permit, nor can an employer employ such a person without an employment permit. An employer who employs a 3rd country national requiring, but without, an employment permit is open to prosecution under the Employment Permits legislation. There is a careful balance to be struck. On the one hand there can be situations where an employee, unwittingly, falls out of the employment permit regime and the question then arises as to whether there should be a channel for them to regularise their position. On the other hand, such a provision should not serve to incentivise employers for not adhering to their legal responsibilities.

I do recognise that occasionally 3rd country nationals, having entered the labour market legally, can find themselves, through no fault of their own, without the necessary permission to remain employed, or, having left the original employment in respect of which an employment permit was granted, are unable to re-enter employment. From time to time the Migrant Rights Centre Ireland brings such cases to the attention of my Department and in such circumstances, I may consider the granting of an employment permit on an exceptional and case by case basis. Applicants must set out in detail their particular circumstances explaining how they arrived at their situation and satisfy me that a refusal to grant an employment permit would cause undue hardship.

Job Creation

Questions (320, 328)

Bernard Durkan

Question:

320. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the level of educational or skills requirements in respect of jobs created over the past three years to date; and if he will make a statement on the matter. [18999/13]

View answer

Bernard Durkan

Question:

328. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the job skills/educational requirement levels most sought after in new jobs created over the past two years, both indigenously and through foreign direct investment; and if he will make a statement on the matter. [19008/13]

View answer

Written answers

I propose to take Questions Nos. 320 and 328 together.

High growth sectors with continued potential to grow in the medium term include Information and Communications Technology (ICT), Health Life Sciences, International Financial Services, Agri-Food and Internationally Traded Services. During 2012 employment increased by 7% within the ICT sector, by 12% within the Agri-Food sector and by 6% in professional, scientific and technical activities. There is strong demand within the ICT sector here due to -

- an expansion of the business operations of companies, inflow of foreign R&D investment and formation of new start-ups;

- potential for foreign companies to win mobile investment from parent companies and the availability of high skilled personnel to enhance their business proposition;

- emerging skills demands around cloud computing, service design, database management, social networks and media, development of e-commerce applications and internet marketing.

The Government has brought education and training to the heart of its Action Plan for Jobs and targets set for initiatives such as Springboard, the ICT Conversion Programme have the ultimate aim of providing Ireland with the highest proportion of ICT graduates as a share of third level graduates by 2018. New Sectors which are small in employment terms but which have experienced additional employment growth include clean/green technologies, creative digital media and content industries, marine and maritime and healthcare (eHealth) services. Traditional Sectors where employment has shown recovery include tourism and hospitality, and also within the sub-sector of the construction industry which has focussed on business opportunities in the design and use of eco-construction products and materials and energy efficiency improvements in housing and buildings.

As regards foreign direct investment, there have been substantial job gains in the high-tech sector within both new arrival foreign investment companies (such as Facebook, LinkedIn and Twitter) as well as from well-established businesses such as Paypall, HP and IBM. Indigenous engineering, software, internationally traded services and medical devices companies have also performed well in export markets. The main skills sets in demand within these sectors are –

- international management skills (e.g. export marketing, international marketing and sales, managing international customers and suppliers, etc.)

- foreign language capabilities and cultural awareness (e.g. mainline European including German, French, Italian and Spanish, as well as – at a relatively lower level - Mandarin Chinese, Japanese, Russian and Arabic)

- international sales skills

- marketing & sales skills

- science & engineering skills (including within the renewable energies sub-sector)

- high-level ICT skills

There are currently 1,848,900 people at work in the economy. As well as additional jobs that have arisen in recent years, it is important to note that there is a level of replacement demand in the workforce as people retire, take up home/caring duties, take up full time education, etc. This creates replacement demand estimated at 44,000 jobs per annum.

Skills demands arise not only from within the additional jobs created but also within existing jobs as, in order to remain competitive, firms need to continually up-skill their workforces. The main drivers of change impacting on the skillset requirements for these jobs include customer demand, new technology developments, product and market specific regulations and directives, and internal organisational change.

My Department continues to work closely with the Department of Education and Skills to ensure our workforce is well aligned with the skills that employers need now and into the future. As a country, we must continue to up-skill, not just for additional jobs but also in terms of existing jobs. This is vital in order to compete internationally as other countries are doing so.

Foreign Direct Investment

Questions (321)

Bernard Durkan

Question:

321. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which foreign direct investment has resulted in job creation in each of the past five years to date; his projections in this regard for the future; and if he will make a statement on the matter. [19001/13]

View answer

Written answers

The Forfás Annual Employment Survey reports on job gains and losses in companies that are supported by the enterprise development agencies. Details of total employment and the number of new jobs created in IDA Ireland client companies in each year from 2008 to 2012 are set out in the tabular statement.

2012 saw a strong performance in the level of foreign direct investment (FDI) won by Ireland with 12,722 new jobs being created in IDA client companies. This also represents a significant achievement in terms of reaching the target of 12,500 new jobs set in the Government’s 2012 Action Plan for Jobs. IDA Ireland has indicated that the gains made spanned a range of sectors, with particularly strong performances from social/digital media, IT, financial services and life sciences.

IDA Ireland’s concentration on attracting employment intensive services to Ireland is leading to the speedy creation of jobs. A significant proportion of investments in 2012 was in the area of services operations, particularly serving the Europe, Middle East and Asia Market. A notable feature of 2012 was the wide range of green field investments coming to Ireland. In total, there were 145 individual investments, of which 66 (over 40%) were from companies coming to Ireland for the first time.

In recent years IDA Ireland has established a presence in high growth markets, such as China and India, and remains committed to the goal of securing 20% of all greenfield investments from high growth markets by 2014. The Agency has also broadened and deepened its portfolio, by including not just large multinational corporations (MNCs) but also working closely with “fast growth” companies, who aspire to be the MNCs of the future. This strategy was successfully implemented in 2012 with a range of fast growing companies announcing that they had decided to invest in Ireland.

While the global outlook for FDI continues to be challenging, IDA has assured me that it will continue to work towards achieving its target of creating a further 12,000 jobs this year as set out in the Action Plan for Jobs 2013.

Table showing Total Employment and New Jobs Created in IDA Ireland

Client Companies from 2008 to 2012

Employment Data

2008

2009

2010

2011

2012

Total Employment

152,514

138,171

139,760

145,878

152,785

New Jobs Created

6,719

3,568

11,224

13.068

12,722

Job Trends

Questions (322)

Bernard Durkan

Question:

322. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent if any to which he has identified positives or negatives affecting job creation or retention based on the experience of the past two years; and if he will make a statement on the matter. [19002/13]

View answer

Written answers

In the three years before this Government took office, 250,000 private sector jobs were lost. It was clear what was needed was to transform our economy from one that became over dependent on property, construction and debt, to one focused on enterprise, innovation and exports. The Action Plan for Jobs is a key instrument in this objective and is designed to deliver measures right across Government to protect existing jobs and support the creation of new ones. A key feature of the Action Plan process is that each of the actions to be delivered is broken down into Quarterly milestones and progress against these targets is rigorously monitored and published on a quarterly basis.

One year into the Action Plan for Jobs process, we can see evidence that the strategy and architecture are working. Over 90% of the 270 individual actions committed to last year were completed on time. They included many important reforms designed to enhance competitiveness, improve access to finance, support enterprise and develop employment in sectors of opportunity for Ireland. In many cases, the full impact of these reforms will take time to materialise. However, some significant objectives have already been realised, including:

- the establishment of a Microfinance Fund for small businesses;

- the introduction of a Partial Credit Guarantee scheme;

- new supports for first time exporters;

- the launch of a new Women-In-Business programme;

- the simplification and extension of the Employer’s PRSI Exemption scheme;

- the launch of a National Broadband Plan;

- the piloting of a Health Innovation Hub; and

- work being undertaken to develop sectors such as Cloud Computing, Digital Games, Manufacturing, the Green Economy and other areas.

More significantly, last year, 12,000 jobs were created in the private sector, particularly in export-oriented sectors that are targeted by the Action Plan for Jobs. Exports from Irish-based companies also reached record levels last year.

The Government will continue to build on this progress in 2013. This year’s Action Plan for Jobs includes 333 actions for delivery across all Government Departments and 46 Agencies or Offices. The Plan also includes seven landmark projects, or Disruptive Reforms, that the Government has identified as having potential to impact significantly on job creation. As a small open economy, we are influenced heavily by developments in international markets. However, the merit of the Action Plan for Jobs is that every year, each Department is required to focus on changes that can be brought about to make a practical contribution to the target of supporting the creation of 100,000 extra jobs in the economy by 2016.

Job Creation Data

Questions (323)

Bernard Durkan

Question:

323. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the number of jobs created in County Kildare indigenously or arising from foreign direct investment in each of the past five years to date; and if he will make a statement on the matter. [19003/13]

View answer

Written answers

The Forfás Annual Employment Survey reports on job gains and losses in companies that are supported by the enterprise development agencies. Details of total employment and the number of new jobs created in IDA Ireland and Enterprise Ireland client companies in Co. Kildare in each year from 2008 to 2012 are set out in the tabular statements.

I am delighted to say that 2012 was a particularly good year for job creation in Agency supported companies, with IDA client companies creating a total of 12,722 gross new full time jobs (6,750 net new jobs). Clients of Enterprise Ireland created 12,861 gross new jobs (3,338 net new jobs- the highest net gain for Irish companies since 2006).

While, globally, the outlook for foreign direct investment (FDI) continues to be challenging, IDA has assured me that it will continue to work towards achieving its target of creating a further 12,000 jobs in 2013 as set out in the Action Plan for Jobs 2013. Similarly, Enterprise Ireland will continue to provide a range of supports to indigenous enterprise and play its part in creating the correct environment in which 100,000 net new jobs will be created by 2016 in accordance with Government’s Action Plan for Jobs.

Table showing Total Employment in IDA and Enterprise Ireland Client Companies in Co. Kildare from 2008 to 2012

County Kildare

2008

2009

2010

2011

2012

Total Employment (IDA)

11,179

9,581

10,672

10,393

10,176

Total Employment (EI)

5,146

5,049

4,996

5,815

6,082

Table showing the number of new jobs created in IDA Ireland and Enterprise Ireland Client Companies in Co. Kildare from 2008 to 2012

County Kildare

2008

2009

2010

2011

2012

New Jobs Created (IDA)

113

30

1,228

398

176

New Jobs Created (EI)

351

476

295

1,082

534

Job Creation

Questions (324)

Bernard Durkan

Question:

324. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which job creation has been assisted by science and or innovation technologies and related funding under this heading from Europe in each of the past two years to date; and if he will make a statement on the matter. [19004/13]

View answer

Written answers

Statistics on the creation of jobs by innovation and technology in the enterprise base are not available separately. Innovation and technology are elements of a series of inputs which are requisite for a job to be sustained in commercial enterprise – i.e. companies need to identify markets to sell their goods and services, they need to have finance in order to invest in capital and human resources, they need to put in place the delivery and production capacity which meets their customers’ needs, and they need to focus on the development of new and improved products, processes and services which can ably compete in international markets.

While some jobs are created in research organisations arising from direct participation in EU Framework Programme projects, the main benefit arising from participation is that it offers valuable opportunities to companies of all sizes based in Ireland to participate in high-quality research collaborations with their European counterparts, with the support of EU funding. Collaborative Research forms the core of the FP7 programme, fostering collaborative research across Europe through transnational consortia of industry and academia.

FP7 participation enables companies to gain benefits such as access to knowledge networks, access to specialist equipment, sharing of costs and risks and, in particular for industry, the possibility of opening up commercial opportunities. The experience and the knowledge gained by Irish companies from transnational collaboration often translates into company expansion, creating new jobs, at a later stage. However, as previously stated, innovation and technology are only some of the elements required for sustainable job creation.

Through Enterprise Ireland’s facilitation and financial support Irish companies and academic researchers secured in the region of €85 million in 2011, and approximately €95 million in 2012. Since FP7 commenced in 2007, Ireland’s researchers, research organisations and companies have been involved in more than 1,500 successful applications obtaining European Commission funding of approximately €485 million. The overall Irish success rate, at 22.7%, is above the European Member State average of 22.1%, and a very positive indication of the prospects for Irish participation over the lifetime of FP7, and is in line with our national targets.

Job Losses

Questions (325)

Bernard Durkan

Question:

325. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he and his Department have addressed the issue of job relocation from this jurisdiction to other European and non-European locations; and if he will make a statement on the matter. [19005/13]

View answer

Written answers

Job losses arise in the internationally trading sector of the economy for a variety of reasons including a deterioration in competitiveness, enhanced competition from sister sites, product and technology life cycles, global location rationalisation as a result of mergers and acquisitions, or, an amalgam of these factors. In the majority of cases involving relocation, IDA Ireland’s experience is that the shift is to lower cost emerging economies, with a smaller number of companies relocating to other developed country locations, largely in Eastern Europe. Some of the job losses are due to cyclical factors, however, and will recover. Consequently, in addition to winning new foreign direct investment (FDI), IDA Ireland’s objective is to retain existing clients, improve the quality of employment opportunities in Ireland and secure greater economic impact from such investments.

I am delighted to say that 2012 was a particularly good year for job creation in Agency supported companies, with IDA client companies creating a total of 12,722 gross new full time jobs (6,750 net new jobs). The IDA client base in Ireland now employs 152,785 people, a level last recorded before the global financial crisis began in 2008. IDA Ireland has indicated that, in 2013, investment in key global markets are slowing down, particularly in Europe. There are, however, opportunities for growth in the IT/technology sector, in specific areas of financial services, in life sciences, and in social/digital media. To date, in 2013, IDA Ireland job announcements include: Vistakon - 300 jobs; Ebay - 450 jobs; Facebook - 150 jobs; Yahoo - 200 jobs; FireEye - 100 jobs; Nypro - 200 jobs.

I am mindful that, in order to ensure that Ireland can continue to attract such projects to Ireland, it will be necessary to undertake an in depth analysis of our FDI strategy with a view to informing the formulation of an appropriate strategy for the period post 2014. This analysis, which will be undertaken later this year, will take account of factors such as key trends emerging in FDI best practice internationally, Ireland’s strengths in attracting FDI, any changes to the EU’s State Aid rules that may be introduced in the near future and our agreed approach to regional development.

Economic Competitiveness

Questions (326, 330)

Bernard Durkan

Question:

326. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which the issue of costs and competitiveness have been addressed in the context of job creation and attracting foreign direct investment; and if he will make a statement on the matter. [19006/13]

View answer

Bernard Durkan

Question:

330. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he is satisfied of the ability of industry here to compete with the competition in domestic and export markets; and if he will make a statement on the matter. [19010/13]

View answer

Written answers

I propose to take Questions Nos. 326 and 330 together.

The recently published Forfás report “Costs of Doing Business in Ireland 2012” indicates that business costs have reduced significantly in recent years with overall price levels in the economy falling back to levels last experienced in 2002. Ireland is already rated highly internationally as one of the best countries in the world in which to do business, and we have built a strong competitive basis on which to go out and compete on global markets. For example, Ireland has moved up to 20th place in the IMD’s World Competitiveness Yearbook 2012 and is also ranked 15th in the World Bank’s Doing Business 2012 Report.

There are a number of key areas where Ireland tops global competitiveness rankings, including:

- business impact of rules on foreign direct investment;

- inflation;

- FDI and technology transfer;

- availability of skilled labour;

- flexibility and adaptability of the labour force; and

- investment incentives.

We are making progress on the jobs front through the Action Plan for Jobs process, which is systematically transforming the operating environment for business, improving our competitiveness and supporting companies increasing employment.

In 2012, Enterprise Ireland and IDA Ireland companies created almost 10,000 net new jobs between them, representing the strongest performance for the IDA in a decade and the best performance in over five years for Enterprise Ireland. There was a good regional spread in these new jobs, including new investments in Letterkenny, Sligo, Westport, Dundalk, Kilkenny, Limerick, Kildare and Wexford. The latest QNHS figures show that overall, employment in the economy increased by 1,200 people year-on-year to the end of 2012. This was the first increase in employment since the second quarter of 2008 and is in stark contrast to a situation where the economy was losing an average of almost 90,000 jobs per year in the period 2008 to 2011. Meanwhile, we are also showing that we can compete on international trade markets, as our total exports in 2012, at over €182 billion, were at their highest level ever.

However, while these improvements are very welcome and indicate that we are moving in the right direction, we must continue to focus on actions to promote further cost reductions across the economy. The Forfás report advises that over half of recent cost competitiveness gains are attributable to favourable exchange rate movements. The report also indicates that upward price pressure is beginning to emerge in some areas, while rigidities continue to persist within the economy.

The 2013 Action Plan for Jobs includes a range of concrete measures to address issues highlighted in the report in relation to labour costs, property costs, business services and broader consumer costs. The implementation of these actions, combined with the Government’s broader agenda to enhance productivity, will play a key role in improving our competitiveness and realising our ambition of making Ireland the best small country in the world to do business.

Foreign Direct Investment

Questions (327)

Bernard Durkan

Question:

327. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the issues most likely affecting the determination of foreign companies in the course of their job-creating investment proposals in this jurisdiction; the degree to which such issues are being addressed; and if he will make a statement on the matter. [19007/13]

View answer

Written answers

Attracting Foreign Direct Investment (FDI) to Ireland has been one of the key pillars of Ireland’s industrial policy over the last 40 years. That policy has proved to be particularly successful as, at the end of 2012, there were 152,785 people employed in over 1,000 IDA client companies which, in turn, result in another 100,000 spin off jobs in the Irish economy. The net effect is that 1 in 7 Jobs in the Irish economy is accounted for by FDI. FDI is a key stimulator and driver of the Irish economy through its contribution to Exchequer finances, exports and research and development.

Interaction with companies who have decided to invest in Ireland continuously highlights that there are many factors which attract such companies to this country. We have stable government, an attractive corporation tax rate, a young educated workforce, a technologically advanced environment and a strong track record in winning FDI. In addition, Ireland is a member of the EU and the Euro zone. Another factor which weighs heavily in our favour is the pro-business environment which permeates our economy.

It is for these reasons that the IMD World Competitiveness Yearbook 2012 ranks Ireland very favourably in a number of key areas of importance for FDI. The survey ranks Ireland:

- First for availability of skilled labour

- First for flexibility and adaptability of workforce

- First for investment incentives

- First for attitudes towards globalisation

- Second for business legislation- openness to foreign investors

- Second for large corporations that are efficient by international standards

- Second for adaptability of companies

- Fourth for Corporate Tax rate on profit and real corporate taxes

I am mindful that, in order to ensure that Ireland can continue to compete globally for FDI projects, it will be necessary to undertake an in depth analysis of our FDI strategy with a view to informing the formulation of an appropriate strategy for the period post 2014. This analysis, which will be undertaken later this year, will take account of factors such as key trends emerging in FDI best practice internationally, Ireland’s strengths in attracting FDI, any changes to the EU’s State Aid rules that may be introduced in the near future and our agreed approach to regional development.

Question No. 328 answered with Question No. 320.

Commercial Rent Reviews

Questions (329)

Bernard Durkan

Question:

329. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which upward only rent reviews continue to remain a reason for closure or job losses in the retail or commercial sectors; and if he will make a statement on the matter. [19009/13]

View answer

Written answers

In the current economic climate, a range of factors are impacting on job losses in the retail and commercial sectors, including, for example, changing patterns of consumer behaviour through on-line trading. I am aware that many retail and commercial companies are concerned about the impact which upward only rent reviews are having on their cost base. When the Government came into office, it gave extensive consideration to abolishing upward-only rent reviews in leases signed before 28 February 2010. The advice received by the Government was that it was not possible to develop a scheme to tackle this issue that would not be vulnerable to a Constitutional challenge or compensation claims from landlords. On the basis of this advice, the Government concluded that it was not feasible to legislate to abolish upward only rent reviews. However, the Government has taken steps to address the issue where possible. In the Action Plan for Jobs 2012, the Government undertook to place downward pressure on commercial rents where the National Asset Management Agency (NAMA) had acquired the loan on the underlying property. I understand that by the end of 2012, NAMA had received 276 eligible applications for rent abatement and had granted 212 applications with an aggregate annual value of €13.5 million. A further 56 applications were under review. Of the 276 eligible applications received, only 8 were refused. In addition, the Property Services (Regulation) Act, 2011, provides for the establishment and maintenance of a Commercial Leases Database by the Property Services Regulatory Authority. The database will enhance transparency in the commercial property market when it becomes operational. Through the Action Plan for Jobs process, the Government is working to ensure that a range of factors which impact on the competitiveness of enterprises across the economy are addressed. The 2013 Action Plan also includes a number of specific projects to support the retail sector, including an initiative to increase the number of businesses trading on-line and an initiative to develop a single business licence application portal for the sector.

The Government has also committed, in the Action Plan for Jobs, to establishing an Interdepartmental Group to undertake a short examination of further possible measures to assist the retail sector, which could, for example, be considered in the context of the Budget or the 2014 Action Plan for Jobs. The Group will comprise key Government Departments and will consult with relevant stakeholders across the retail sector as part of its work. The Group will hold its first meeting in the coming weeks.

Question No. 330 answered with Question No. 326.

Work Permit Application Numbers

Questions (331)

John Deasy

Question:

331. Deputy John Deasy asked the Minister for Jobs, Enterprise and Innovation the number of Green Card applications that have been approved to date under the Special Assignee Relief Programme in each of the categories legislated for, that is jobs with annual remuneration of €60,000 or more, and jobs with annual salaries of €30,000 – €59,999. [19056/13]

View answer

Written answers

The ‘Green Card’ Employment Permit is designed to attract highly skilled people into the labour market with the aim of encouraging them to take up permanent residence in the State. Eligible occupations under this type of permit are deemed to be critically important to growing Ireland’s economy, are highly demanded and highly skilled, and in significant shortage of supply in our labour market.

Occupations such as ICT professionals, professional engineers and technologists are catered for under this type of Employment Permit. Eligible occupations are largely determined in line with the regular analyses of the Expert Group on Future Skills Needs with regard to the labour market’s requirements in respect of strategically important skills. The list of eligible occupations is set out in the Highly Skilled Occupations List available on my Department’s website.

My Department examines a number of criteria when assessing Green Card Employment Permit applications. The full details of what is required are set out on the relevant application form. The status of a prospective employee’s inclusion in the ‘Special Assignee Relief Programme’ is not a factor in assessing applications under the Employment Permits system. Briefly, eligibility for a Green Card Employment Permit is largely determined by the type of occupation, the extent to which the prospective employee concerned possesses the relevant qualifications, skills and experience that are required for the employment and the proposed remuneration level.

Where the annual remuneration of the job ranges between €30,000 - €59,999 (excluding bonuses) then the occupation must be listed in the ‘Highly Skilled Occupations List’. The total number of Green Card Employment Permits issued in 2010 was 532, in 2011 910 and in 2012 1,010.

All occupations, except those listed on the ‘Ineligible Categories of Employment for Employment Permits’ or are considered contrary to the public interest are permissible where the an annual remuneration (excluding bonuses) is over €60,000. The numbers of Green Card Employment Permits issued for those years for positions where the salary was greater than €60,000 were 157 in 2010, 228 in 2011 and 304 in 2012.

National Internship Scheme Placements

Questions (332)

John Deasy

Question:

332. Deputy John Deasy asked the Minister for Jobs, Enterprise and Innovation if the average cost per job created in Enterprise Ireland-supported companies, which increased almost three-fold in the previous decade, has decreased since the JobBridge National Internship Programme commenced in mid-2011. [19057/13]

View answer

Written answers

JobBridge is a National Internship Scheme that provides work experience placements for interns for a 6 or 9 month period. The aim of the National Internship Scheme is to assist in breaking the cycle where jobseekers are unable to get a job without experience, either as new entrants to the labour market after education or training or as unemployed workers wishing to learn new skills. The scheme provides work experience placements in the private, public and voluntary sectors. Interns receive an allowance of €50 per week on top of their existing social welfare entitlement. This is payable for the period of the internship. While the scheme has been availed of by client companies of the enterprise development agencies, it does not directly result in an increase in the employment associated with those companies (i.e. participants are interns receiving social welfare payments, and not full-time employees receiving a salary from the placement).

The Forfás Employment Survey does not capture data in relation to the number of Job Bridge participants in client companies of the development agencies. Table 1 sets out the Enterprise Ireland cost per job over the period 2002-2011. The Cost per Job Sustained measure is calculated by Forfás and takes into account all direct agency expenditure on all client companies in a seven year period. Only jobs created during, and sustained at the end of each seven year period are represented in the calculations. The number of JobBridge participants is not associated with these calculations, and therefore the scheme will not have any direct impact on the cost per job in the development agencies. The 2012 figure will be calculated and reported as part of the Enterprise Ireland Annual Report and Accounts for 2012, due to be published in mid-2013.

Since 2007 the cost per job sustained has increased. The reasons for this are largely threefold:

1. Enterprise Ireland provided additional supports to ensure Irish-owned companies were in a position to withstand the worst recession in decades e.g. the Enterprise Stabilisation Fund.

2. Additional supports relating to Dairy, Beef and Sheep, and Food Competitiveness Funds were administered by EI on behalf of third party agencies and form part of the calculation.

3. A lower number of jobs sustained compared to earlier seven year periods in the context of the severe economic recession and resulting job losses.

Table 1- EI Cost per Job Sustained 2002-2011

Time Period

Cost per Job sustained (2011 prices)

1996-2002

€11,761

1997-2003

€10,342

1998-2004

€8,984

1999-2005

€5,962

2000-2006

€4,385

2001-2007

€6,556

2002-2008

€7,988

2003-2009

€12,124

2004-2010

€12,560

2005-2011

€12,024

Top
Share