Written Answers Nos. 97-104
97. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his Department continues to attract foreign direct investment resulting in job creation into this jurisdiction; the issues most commonly raised by investors in this regard; and if he will make a statement on the matter. [42939/13]
View answerThe attraction of foreign direct investment (FDI) to Ireland has been, and will continue to be, an integral part of Ireland’s economic success. Foreign owned firms contribute substantially to Ireland’s exports, jobs, expenditure in the Irish economy and to Exchequer funds. FDI plays a key role in stimulating the development of new sectors in Ireland, in enhancing our research, development and innovation performance, in contributing to balanced regional development and in accelerating the achievement of critical mass within sectors.
At the end of 2012, there were 152,785 people employed in over 1,000 IDA Ireland client companies. This, in turn, results 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.
There are a number of factors which are considered by potential investors before deciding to locate here. These include:
- A pro-business and technologically advanced environment;
- An attractive corporate tax rate;
- An educated and talented workforce;
- A blend of appropriate skill sets;
- Access to world class infrastructure - road access to key cities, ports and international airports;
- a range of affordable, state-of-the-art property solutions;
- a track record of success coupled with the right attitude and ambition of its people.
In seeking to win FDI, IDA Ireland constantly promotes the availability of these factors to potential investors. Indeed, Ireland’s performance in attracting FDI has been recognised internationally and these international comparisons are impressive. The 2012 IMD World Competitiveness Yearbook and IBM’s Global Location Trends Report for 2012 have classified some of Ireland’s strengths, with Ireland ranked:
- 1st in the world for availability of skilled labour, flexibility of workforce, investment incentives and attitudes towards globalisation;
- 1st in the world for inward investment by quality and value;
- 1st in Europe for jobs created in Research and Development;
- 1st in Europe for investment in the pharmaceutical sector;
- 2nd in Europe and 4th globally for the number of investment jobs per capita; and
- 4th for corporate tax rates.
Amid significant economic challenges globally and locally, IDA Ireland achieved a strong FDI performance in 2012. There were 145 individual investments, with over 40% from companies coming to Ireland for the first time. 12,722 gross job gains were generated with 6,570 net new jobs gains across a broad range of sectors. Helping FDI clients to transform their operations within Ireland has also led to a significant reduction in employment losses, producing a strong year overall.
Despite this success, Ireland faces a highly competitive landscape, with notable strong competition for FDI arising from the UK, the Netherlands and Switzerland, in particular. Nevertheless, IDA Ireland’s performance in the first 6 months of 2013 has been solid with 70 FDI investments, with potential to create in the region of 7,000 jobs being secured.
98. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he and his Department continue to have dialogue with the educational level sector at second and third level with a view to meeting the educational requirements of the workplace in a more specific fashion in view of the regularly expressed concerns to the need for a more dedicated approach to the market; and if he will make a statement on the matter. [42940/13]
View answerThe input of the educational sector in addressing, in a balanced fashion, the skills needs of enterprise is a keystone in the strategies devised with the input of Forfás and, in particular, of the Expert Group on Future Skills Needs (EGFSN), under the auspices of my Department and those of my colleague, the Minister for Education and Science.
The Expert Group on Future Skills Needs advises Government on future skills requirements and associated labour market issues that impact on enterprise and employment growth. It operates as a significant conduit for discourse between representatives of education, enterprise and policy makers, on behalf of Government. The Group is composed of representatives of business, employees, education, training (FÁS, Skillnets), Government Departments (Department of Jobs, Enterprise and Innovation, Department of Education and Skills and Department of Public Expenditure and Reform) and State agencies (IDA Ireland, Enterprise Ireland).
In addition to the regular meetings of the EGFSN, the group takes part in dialogue with education and training providers on an on-going basis as follows:
- a specific steering group is set up for each report the Group releases, which include representatives from education outside of the EGFSN membership appropriate to the work and wider consultation with relevant stakeholders from education also take place in that context;
- the High Level ICT Skills - Action Plan was developed in conjunction with the Department of Education and Science, the Irish Software Association, Enterprise Ireland, IDA and Forfás following the EGFSN analysis of the recruitment challenges in 2012 with recommendations including measures to double the output of honours level graduates from the third level sector by 2018 and, in conjunction with industry, provide conversion courses (760 places in 2012 and 770 places in 2013) to fast-track into ICT, honours level graduates from other disciplines;
- the EGFSN has written the guidelines that accompany the Springboard call each year in 2011, 2012 and 2013 to ensure that those tendering to provide high level education places for jobseekers are focused on the areas of current and future skills needs as identified by employers in the EGFSN research;
- Guidelines for the Alignment of Further Education Programmes with Skills Needs of Enterprise – Forfás undertook this research with a view to improving how the Further Education sector can better respond to current and future skills needs. Based on the work of the EGFSN, the report identifies the skills requirements of enterprise relevant to the Further Education sector across NFQ levels 1-6. This includes sectoral and occupational skills needs, in addition to generic skills requirements for those sectors/occupations and highlights recommendations (e.g. new/improved programmes; programmes designed directly with enterprises; wider availability of work placements; skills for employability) made to address these gaps.
There was an emphasis on ICT in the EGFSN/Forfás Guidelines for Higher Education Providers on Current and Future Skills Needs of Enterprise for the Springboard 2013 Call. Research work is currently underway by the EGFSN, in consultation with businesses, to quantify the high level ICT skills demand to 2018 and propose recommendations to bridge any identified gaps.
In April this year, I launched, jointly with my colleague the Minister for Education and Science, the Forfás/EGFSN Future Skills Requirements of the Manufacturing Sector to 2020 in parallel with the Government’s Manufacturing Strategy. These studies were in response to the Government’s focus on addressing challenges facing the manufacturing sector in Ireland and targeting specific actions in support of the sector. The EGFSN assessed the skills and competencies needed by the sector in the report. A further expansion of the Springboard initiative this year includes a focus on programmes for jobseekers in skills areas in manufacturing –for example, engineers in validation, polymer, supply chain and automation, and polymer and plastics technicians. FÁS in conjunction with the third level education sector is developing a range of initiatives which are designed to meet the skills identified at pre-craft, craft and technician levels. Currently, these initiatives are focused on the North-West region which contains a strong cluster of precision engineering companies, but the initiative will be extended to other regions as appropriate.
Skillnets have incorporated engineering skills into its new call for Networks and will address the scope and scale of training for the manufacturing sector and more specifically the area of supervisory development needs identified by companies. In addition, the Manufacturing report has been circulated to all VECs and higher education institutions for their response to those recommendations that are focused on amendments to their existing or future provision.
In addition to the work undertaken by the EGFSN, Forfás represents my Department on a number of education and training groups concerned with aligning education with the requirements of the workplace including the Project Maths Implementation Group and the Strategic Review of Further Education and Training of the Unemployed.
99. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the steps being taken to provide employment for the young and long-term unemployed; and if he will make a statement on the matter. [42941/13]
View answer100. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his Department expects to be in a position to create further job opportunities for the young and long-term unemployed over the next two years; and if he will make a statement on the matter. [42944/13]
View answerI propose to take Questions Nos. 99 and 100 together.
The number of unemployed people under 25 years of age fell by 11,200 in the twelve month period to Quarter 2 2013. The unemployment rate for young people fell from 33% to 29.6% over the same period. This downward movement in youth unemployment in Ireland differs from the trend in the EU as a whole, where youth unemployment has continued to rise. However, youth unemployment continues to present a major challenge for Ireland as it does for most other EU Member States.
The latest CSO figures also indicate that the long term unemployment rate is also showing some signs of improvement, having decreased from 9.2% to 8.1% over the year to Q2 2013, a drop of 24,500 people. Long term unemployment now accounts for 58.2% of total unemployment, compared with 61.8% a year ago.
The Government’s primary strategy to tackle unemployment is to create the environment for a strong economic recovery by promoting competitiveness and productivity through the Action Plan for Jobs. In addition, the Government recognises the need for measures to support the unemployed and keep jobseekers close to the labour market. In this context, the major elements of the Government’s response are set out in Pathways to Work, which is aimed at ensuring that as many as possible of the job vacancies that are created as the economy recovers are filled by people from the Live Register - with a particular focus on those who are long-term unemployed or at risk of long-term unemployment.
Pathways to Work has a target of moving 75,000 people into employment by the end of 2015 through programmes such as JobBridge, Springboard, Momentum and the ICT Action Plan, which are delivered by the Departments of Social Protection and Education and Skills. The JobsPlus initiative, which encourages employers to recruit people who have been unemployed for 12 months or more, was also launched on 8th July last.
The Department of Social Protection is also working with relevant Departments, including my own, to produce a concrete plan for implementation of the Youth Guarantee in Ireland, for consideration by the Government before being transmitted to the European Commission by the end of the year.
My Department is also keen to support young entrepreneurs and, in this context, initiatives such as Enterprise Ireland’s Competitive Start Fund and New Frontiers Programme, along with the Microenterprise Loan Fund, will all contribute to supporting young entrepreneurs. The Government will also publish a Policy Statement on Entrepreneurship, including youth entrepreneurship, this year.
The Government’s aim is that, by continuing the process of transforming our economy through the Action Plan for Jobs, we can increase employment opportunities for all those who are seeking work.
104. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation based on the experience over the past two and a half years, the extent to which innovation, technology and financial support from the EU Commission in respect of such has facilitated job creation opportunities in this jurisdiction; and if he will make a statement on the matter. [42948/13]
View answerStatistics 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 – 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.
Ireland’s enterprises must be able to competitively differentiate themselves in global markets so that they can win sales and create sustainable employment. A critical element of the Government’s strategy is to provide supports to help companies to grow global sales and local employment through the most important economic differentiator; innovation. My Department and the State Agencies under its remit are focused on the development and support of internationally trading manufacturing and services firms in Ireland in this regard. The Action Plan for Jobs emphasises the significance of innovation and the use of technology as critical drivers of job creation in Ireland while seeking to maximise their impact in the coming years. Substantial ongoing investment has been made in Ireland’s national innovation ecosystem and in the supports that build the innovative capability in Irish enterprise. In tandem with this approach it is recognised that substantial international expertise and important sources of non-exchequer funding are available via EU research initiatives.
The Seventh EU Framework Programme for Research and Development (FP7), with a budget of €55 billion for the period 2007 to 2013, is the EU’s main instrument for funding research and development in Europe. FP7 offers Ireland's SMEs, multinationals, and research institutions valuable opportunities to participate in high-calibre research collaborations with our European counterparts. Enterprise Ireland is the Irish agency responsible for helping Irish companies and third level researchers to participate in FP7.
The most recent statistics available from the European Commission show that the total amount of funding received from FP7 to date by Irish research organisations and companies is €572 million. We are therefore well on track to achieve the target amount of funding from FP7 of €600 million. This funding has provided a considerable increase in the innovative capability of Irish academics and industry over and above existing exchequer investments in this area.
The innovation, technology and financial support from the European Commission to Irish research organisations, including companies, ultimately results in more sustainable jobs and leads to business expansion and increased job creation over the long term. I am confident that our research organisations and companies have the capability to continue this trend under FP7’s successor EU Research and Innovation programme - Horizon 2020, covering the years 2014 – 2020.
