Written Answers Nos. 136-143
136. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his Department continues to monitor the competitiveness of the manufacturing sector here with particular reference to the need to effectively compete with other economies throughout Europe and globally; and if he will make a statement on the matter. [24772/13]
View answer137. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his Department has identified issues affecting the competitiveness of the manufacturing and service sectors here; the extent to which any imbalances can be addressed by way of utilisation of innovation, science and technology; and if he will make a statement on the matter. [24774/13]
View answer142. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which the manufacturing and service sectors here have managed to access EU grant aid incorporating science and innovation technology; and if he will make a statement on the matter. [24780/13]
View answer143. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he has received communication from the manufacturing and service sectors in regard to renting costs with particular reference to the impact of upward only rent reviews; the extent to which this issue has been identified as a serious impediment to job creation; and if he will make a statement on the matter. [24783/13]
View answerI propose to take Questions Nos. 136, 137, 142 and 143 together.
Following an initiative which I undertook last year, in the context of the Action Plan for Jobs, where I asked Forfás to undertake a detailed strategy for the Manufacturing Strategy in Ireland up to 2020, I was delighted to have had the opportunity last month to launch that finalised strategy, which sets out a range of steps necessary to consolidate and develop that sector.
This report sets out the actions needed to address cost competitiveness and access to finance – building on the steps already taken by this Government to improve our international competitiveness. Key actions are proposed across a range of areas, including; access to new funding, management training and support, costs reduction, technology adoption and the implementation of a National Step Change initiative.
In terms of addressing our Competitiveness issues, Ireland’s cost competitiveness can be improved in two ways: through reductions in costs nationally; and/or at firm level through improvements in productivity. Encouragingly, a key finding in this Strategy has been that productivity in manufacturing has been increasing over recent years – annual average growth rates in per hour labour productivity across manufacturing sectors amounted to 5.6 per cent over the period 2007 to 2010 - enhancing the competitiveness of Ireland’s manufacturing firms on international markets. By implementing these actions and building on progress made to date, I believe that this will lead to a more vibrant sector with enhanced prospects for additional job creation in a wide range of skill levels.
Ireland currently has a very diverse range of manufacturing businesses with many exciting and innovative companies in high-technology and emerging sectors. We are well placed to take advantage of our current position to build on this expertise in both the FDI and indigenous companies. There are very exciting opportunities in sectors such as Food, Pharma/Biopharma, ICT Hardware, Medical Technologies and Engineering. Utilisation of Innovation Science and Technology will be crucial in pursuing competitiveness for the industry.
It is, of course, the case that many of the Competitiveness issues faced by the Manufacturing Sector are similar to those facing businesses generally. In a separate initiative last year, I requested Forfás to undertake research into a number of factors impacting on Ireland’s international competitiveness, to benchmark these factors and to develop proposals to systematically reduce excessive key business costs or delays.
That wider Forfás research indicates that in the period between January 2000 and April 2008, Ireland suffered a 22.5% loss in competitiveness. However, in the period from April 2008 to July 2012, Irish cost competitiveness improved by 19% as measured by the Harmonised Index of Consumer Prices. Prices have now fallen back to levels last seen in 2002. The research benchmarks Ireland’s performance against a number of our key trading partners, as well as the OECD and Euro area averages. Positive trends are emerging in relation to some key cost factors, including Labour costs, where our labour cost competitiveness continues to improve; Construction and new rental costs, which have fallen significantly since the collapse of the property bubble; and the cost of most business services, which have fallen to, or below, 2006 levels.
The provision of adequate and appropriate finance for both the manufacturing and services sectors is crucial, but as you will appreciate, EU grant aid is a less significant factor now than in former years. Obviously all potential sources of grant aid are pursued. In relation to property rental issues for the sector, the Manufacturing Development Forum, who advise me on relevant issues relating to manufacturing, have not highlighted the impact of upward only rent reviews as a serious impediment to their operations.
138. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which the indigenous sector has featured in job creation in each of the past four years to date; the number of jobs created through small and medium enterprises and foreign direct investment respectively; and if he will make a statement on the matter. [24776/13]
View answerThe net number of new jobs created in companies supported by Enterprise Ireland, IDA Ireland and the County and City Enterprise Boards (CEBs) and total employment in their client companies for each year since 2009 is set out in Tables 1 to 3 accompanying this reply.
2012 was a particularly good year for job creation in Agency-supported companies, with IDA client companies creating a total of 5,638 net new full time jobs and a further 932 part time jobs last year. The IDA client base in Ireland now employs 136,505 people on a full time basis, a level last recorded before the global financial crisis began in 2008. Clients of Enterprise Ireland created 3,338 net new full time jobs in 2012. EI companies now employ 145,460 people on a full time basis.
These results show that the Enterprise Development Agencies have been to the fore in delivering on the commitments set out in the Action Plan for Jobs. In the Plan, the Government has set an ambitious target of having 100,000 more people at work by 2016. When we launched the first in a series of annual Action Plans for Jobs in February 2012, I said that the transformation needed for our economy would come through deliberate and determined action across all areas of Government and the private sector. One year into the Action Plan for Jobs process, we can see the evidence that the strategy and architecture are working. There were 270 individual actions committed to last year, to improve the operating environment and supports for job-creating businesses, and remove barriers to employment-creation right across our economy. Over 90% of these actions were completed during 2012. More importantly, there has been a stabilisation in jobs numbers in the last six months and, last year 12,000 jobs were created in the private sector, in particular in export oriented companies. This compares to the 250,000 private sector jobs lost in the three years before this Government took office.
This year’s Action Plan for Jobs 2013 will build on the success of 2012. It includes 333 actions for delivery across all Government Departments and 46 Agencies or Offices. The Plan contains a range of policy actions to assist the development of indigenous enterprise, including small businesses.
As with 2012, employment retention and creation will continue to be our primary objective in 2013. I am confident that we now have a structure in place that can deliver the type of actions needed to continue supporting the transition underway in our economy.
Table 1 showing net new full time jobs created and total full time employment in IDA Ireland Client Companies in each of the years from 2009 to 2012
|
Employment Data |
2009 |
2010 |
2011 |
2012 |
|
Net New Jobs Created |
-12,591 |
-561 |
+4,562 |
+5,638 |
|
Total Employment |
126,866 |
126,305 |
130,867 |
136,505 |
Table 2 showing net new full time jobs created and total full time employment in Enterprise Ireland Client Companies in each of the years from 2008 to 2012
|
Employment Data |
2009 |
2010 |
2011 |
2012 |
|
Net New Jobs Created |
-19,003 |
-4,367 |
+3,570 |
+3,338 |
|
Total Employment |
142,919 |
138,552 |
142,127 |
145,460 |
Table 3 showing net new full time and part time jobs created from 2010 to 2012 and total employment in CEB-supported Companies in each of the years from 2009 to 2012
|
Employment Data |
2009 |
2010 |
2011 |
2012 |
|
Net New Jobs Created |
*N/A |
-118.5 |
-183.5 |
+640.5 |
|
Total Employment |
30,726 |
32,994 |
32,614 |
33,430 |
*It should be noted that prior to 2010, CEBs could only report on the number of jobs existing in CEB-supported companies. In 2010, the CEBs’ data recording system was changed thereby enabling them to produce figures for jobs existing, job gains and job losses for the years from 2010 onwards.
139. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the degree to which he and his Department have identified any major issues of concern to those creating employment indigenously or by way of foreign direct investment; the extent to which it has been found possible to address such issues; and if he will make a statement on the matter. [24777/13]
View answer141. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he and his Department have been in a position to address any concerns expressed by the business sector with particular reference to the retention of existing jobs and the creation of new employment; and if he will make a statement on the matter. [24779/13]
View answerI propose to take Questions Nos. 139 and 141 together.
The development of appropriate policy responses to support the retention of existing jobs and creation of new jobs is dependent on robust analysis and consultation with key stakeholders, including business representative bodies. This is undertaken on an on-going basis by Government, the State Agencies and other independent bodies. In addition to work carried out by my own Department, Forfás provides independent and rigorous research, advice and support in the areas of enterprise and science policy. This work informs my Department and the wider Government in its responses to the needs of the business environment.
During the preparation of the 2013 Action Plan for Jobs, I met with a wide range of business representatives. I also held a series of regional meetings in 2012 to hear the concerns of the enterprise sector. In addition, I also meet regularly with the CEOs of Forfás, IDA Ireland and Enterprise Ireland to keep informed of developments in the enterprise sector.
In the preparation of the Action Plan for Jobs 2013, more than 55 submissions were received, containing over 600 individual proposals for consideration. Some of these are already being addressed through Government actions generally, or through specific actions contained in the Action Plan for Jobs. However, we are also considering what further action we can take in relation to individual actions through the Action Plans for Jobs in 2014-2016, the budgetary process and other mechanisms.
140. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which innovation, science and modern technology have featured in the context of new jobs created in the economy in each of the past three years to date; the extent to which further opportunities exist in this area; and if he will make a statement on the matter. [24778/13]
View answerThe importance of investment in science, technology and innovation to Ireland’s on-going and future economic development has been well recognised by the Government. Innovation is an integral part of the Government’s overall economic policy and a key pillar in our 2013 Action Plan for Jobs is ‘using research and innovation to drive job creation’. Supporting innovation is one of the key areas which I have been working on directly to support job creation by enterprise. The progress being made is demonstrated by the fact that we are climbing back up the international competitiveness tables; our exports are at record high levels, and IDA Ireland and Enterprise Ireland had their best years for jobs growth in 2012 for ten years and five years respectively.
In a modern economy, highly innovative sectors deliver high returns. In Ireland, we have some of the largest and most dynamic medical device and pharmaceutical companies in the world. Nine of the top 10 pharmaceutical companies in the world have a base in Ireland, as do eight of the top 10 medtech companies. The life sciences sector in Ireland accounts for over 50,000 jobs and €50 billion worth of exports. High value added, productive manufacturing is increasingly dynamic, sophisticated and innovative and requires investment in research and development. Statistics show that exports from R&D performing companies have increased from €44bn in 2003 to €111bn in 2011, while for non-R&D performing companies, exports decreased from €48bn to €30bn over the same period. IDA, whose client forms employ some 130,000 people, has transformed its investment profile with RDI projects increasing from €80m in 2004 to €700m in 2011 - representing some 50% of IDA investment wins.
Delivering further job creation opportunities is a key element of the Government’s strategy of accelerating the economic and societal return on our STI investment. Research Prioritisation will see the majority of competitive public research funding aligned with 14 priority areas where we are most likely to get economic returns, particularly in the form of jobs. Other initiatives include expanding the remit of Science Foundation Ireland to cover applied research; a new Intellectual Property Protocol which gives more clarity and certainty around ownership of IP emerging from state funded research; the establishment of a Central Technology Transfer Office to act as a one stop shop providing an effective interface between industry and the research community; and the R&D tax credit scheme which continues to encourage business to invest in research.
The Forfás Annual Employment Survey reports on job gains and losses in companies that are supported by Enterprise Ireland, IDA Ireland and Shannon Development. The survey does not measure jobs created in the categories of innovation and technology but rather in specific sectoral categories. As innovation and technology are aspects of employment across most sectors it is not possible, therefore, to disaggregate the information as sought by the Deputy.
