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Thursday, 10 Oct 2013

Written Answers Nos 33-40

Job Creation Data

Questions (33)

Pearse Doherty

Question:

33. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the number of jobs that were promoted by the Industrial Development Agency that require foreign language skills to a fluent or native speaker level. [42583/13]

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Written answers

The Forfás Annual Employment survey, which reports on job gains and losses in the enterprise development agencies does not track the language skills requirements of employees in individual companies nor their level of fluency in a foreign language.

Research undertaken by the Expert Group on Future Skills has identified foreign language skills as a key skill requirement for enterprise, trade and export performance, which includes the foreign owned multinational sector.

In some cases the requirement is for native language speakers, due to the nature of the job/function. In other cases, employees with high, but non-native, language proficiency are what is needed, particularly where other highly sought after skills are also required, such as engineering, ICT etc.

IDA Ireland client companies primarily use Ireland as a base to service the European and Asian markets. Ireland’s availability of a skilled labour force is one of the primary reasons cited by IDA Ireland client companies for establishing their operations in Ireland.

Job Creation Data

Questions (34)

Pearse Doherty

Question:

34. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the number of jobs that were promoted by the Industrial Development Agency which have been recruited from outside the State. [42582/13]

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Written answers

The Forfás Annual Employment Survey reports on job gains and losses in companies that are supported by the industrial development agencies. The Survey does not track the data sought by the Deputy. However, it should be noted that there is free movement of labour within the European Economic Area (EEA) and persons recruited from outside the EEA must comply with Employment Permit Legislation.

Labour Market Issues

Questions (35)

Sandra McLellan

Question:

35. Deputy Sandra McLellan asked the Minister for Jobs, Enterprise and Innovation the steps he has taken to tackle the increased casualisation of the labour market. [42589/13]

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Written answers

Labour market flexibility needs to be complemented by support to workers enabling them to make smooth transitions between different types of labour market status (e.g. activation measures for the unemployed, training for employment, work experience options, transitions towards self-employment, etc.). The quality of transitions will determine the quality of a worker's career and the smooth functioning of the labour market.

Ireland has a comprehensive body of employment rights legislation which has among its objectives the protection of employees and the quality of transitions between different contractual arrangements. Specific areas covered by employment protection legislation include:

- Protection of part-time work

- Protection of fixed-term work

- Protection of temporary work

- Protection of persons engaged by temporary work agencies.

- Working time;

- Payment of Wages;

- Holidays;

- National Minimum Wage;

- Unfair Dismissal;

- Redundancy Payments;

- Protection of Young Persons;

- Transfer of Undertakings.

In general, Irish legislation mirrors the broader EU social protection framework in this area.

The Central Statistics Office (CSO) Live Register Data indicates that in the year to September 2013 the number of casual and part-time workers decreased by 2,795 (3.28%). There was an estimated 82,985 casual and part-time workers on the Live Register in September 2013. This compares with 85,090 casual and part-time workers on the Live Register one year earlier.

Opportunities for up-skilling and further career development are essential to advance the inclusive growth objective and can provide individuals who are in part-time work with poor career prospects with the necessary means to maintain their employability and make progress in their career options.

Job Creation Targets

Questions (36, 46)

Denis Naughten

Question:

36. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the progress in implementing the Forfás report Making it in Ireland: Manufacturing 2020; the number of objectives to be delivered by quarter 3 of 2013; the progress on delivering on these goals; and if he will make a statement on the matter. [42577/13]

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Michael Colreavy

Question:

46. Deputy Michael Colreavy asked the Minister for Jobs, Enterprise and Innovation the target number of additional jobs to be created in the manufacturing sector over the life time of this Oireachtas; and the number of additional manufacturing jobs created since the Government came to office. [42595/13]

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Written answers

I propose to take Questions Nos. 36 and 46 together.

The Action Plan for Jobs 2012 included a series of actions to address the Manufacturing Sector, in order to exploit the advances in manufacturing technology, and to build and maintain a strong base of manufacturing activity. This developed as a result of the challenges facing the sector and of the imperative of supporting the employment levels in that sector.

These actions derive from the Forfás Strategy for the Manufacturing sector in Ireland, entitled; Making it in Ireland: Manufacturing 2020. While employment levels have fallen, in common with every other industrialised country in Europe, we still have 205,000 directly employed in manufacturing here and, when account is taken of indirect employment, that means about 400,000 depend on manufacturing for a livelihood. This impressive statistic highlighted the need for action. A comprehensive set of actions to develop the sector was therefore set out in this Strategy, with the key items incorporated into the Action Plan for Jobs 2013.

Hence the initiation by me of two research projects - Forfás “Making it happen Manufacturing 2020” and “The Future Skills Needs of the Manufacturing Sector to 2020 ” published by the Expert Group on Future Skills. Both of these reports complement each other and will assist Government in reaching the target of creating an additional 20,000 jobs in manufacturing by 2016.

Forfás produce an Annual Employment Survey which includes yearly figures for jobs created in the manufacturing sector in Agency supported companies. These are not available on a monthly basis. According to the survey, in 2011 there was a total net increase of jobs of 4,439 and in 2012 the increase of new jobs was 2,717.

The number of objectives to be delivered under the Strategy by Quarter 3 of 2013 is 13 in total. There were eight up to Quarter 2 all of which have been implemented. The outcome for Quarter 3 is currently being collated and I am confident that the 5 Manufacturing Actions for this Quarter, some of which are the responsibility of other bodies, will also be on target. Several other Actions which are on-going in nature, and not time bound to a specific quarter, are also very satisfactorily in hand.

My Department continues to be committed to the delivery of all the Manufacturing Actions in this report.

Enterprise Support Services Provision

Questions (37, 42)

Pádraig MacLochlainn

Question:

37. Deputy Pádraig Mac Lochlainn asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on steps taken to enhance the engagement of the local manufacturing sector with island-wide networks. [42584/13]

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Pádraig MacLochlainn

Question:

42. Deputy Pádraig Mac Lochlainn asked the Minister for Jobs, Enterprise and Innovation the steps taken to develop an island-wide employment and growth strategy. [42585/13]

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Written answers

I propose to take Questions Nos. 37 and 42 together.

The key mechanism for the development of cross-border business and enterprise activity is through the operation of InterTradeIreland, the North/South Trade and Business Development Implementation Body, which is co-funded by my Department and D’ETI. InterTradeIreland operates a wide range of innovative programmes designed to develop linkages and cooperation between SMEs in various sectors and to build on relevant strengths to the benefit of both jurisdictions.

InterTradeIreland provides all-island programmes on Technology Transfer, Collaborative Research & Development, All Island Innovation and Equity Finance. It operates Business Networks for the Software and Polymer & Plastics sectors and Business Angel Networks. In addition, ITI hold linkage events, for example last month’s 'Polymer Connections - A Bridging Borders Event' aimed at organisations in the polymer business or those who use polymers in the manufacture of their end-product, with the aim of finding collaborative business or research partners. This particular event also had a particular focus on the development of clusters in the sector.

In this way, I believe that InterTradeIreland, with its all-island trade and business development remit, is well placed to continue to develop networks on the island in key industrial sectors.

The Action Plan for Jobs represents the Government’s response to methodically reconfigure our economy so that long-term sustainable jobs are created and we can move to a new economic model and build a sustainable future.

The Manufacturing Sector is one of the sectors embraced by the Action Plan for Jobs and a series of actions to address Manufacturing in order to build and maintain a strong base of manufacturing activity have been included in the Plan for both 2012 and 2013. This developed as a result of the challenges facing the sector and of the imperative of supporting employment levels.

Following my establishment of the Manufacturing Development Forum in June 2012, the Forum was fully engaged and contributed a range of ideas and suggested priorities to research I commissioned from Forfás. This has resulted in a very comprehensive analysis, with a new Manufacturing Strategy finalised by Forfás and published earlier this year.

The Action Plan for Jobs process has been shared with relevant parties in Northern Ireland. In addition, I am glad to say that there is positive on-going engagement between my Department’s enterprise agencies and their Northern Ireland counterparts. Both sets of agencies are aware of each other’s offerings and they collaborate closely, where appropriate, on schemes and programmes that will result in job creation and growth.

From my own perspective, in relation to North South cooperation, I attend meetings in the Trade and Business development sectoral format of the North South Ministerial Council and, also, 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, and 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 business issues of mutual interest including job creation generally and specifically in manufacturing.

Job Creation

Questions (38)

Andrew Doyle

Question:

38. Deputy Andrew Doyle asked the Minister for Jobs, Enterprise and Innovation his views on whether the programmes and initiatives run by both the Industrial Development Agency and Enterprise Ireland are now overlapping in a significant manner, thus diminishing their capabilities to conduct their work both here and abroad; if discussions have taken place regarding the pooling of resources to enhance job creation here and a potential merger of the two organisations; and if he will make a statement on the matter. [42570/13]

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Written answers

Enterprise Ireland and IDA Ireland are both enterprise development agencies operating under the aegis of my Department. Enterprise Ireland (EI) is the agency responsible for the development and promotion of the Irish business sector and its focus is on the growth of world-class Irish companies to achieve strong positions in global markets. On the other hand, IDA Ireland’s focus is on attracting foreign direct investment that is value added, requires high skill levels and a sophisticated business environment to maximize their business potential.

Job creation and retention is central to all activities undertaken by Enterprise Ireland and IDA Ireland. In this context, of course, it is the case that the agencies share similar objectives in the development of the enterprise base and the business-environment in Ireland. This includes joint work on the growth of new and existing business sectors in Ireland, the support of collaborative R&D among and between Irish-owned companies and multinationals based here, the facilitation of networks and clusters which enhance enterprises’ ability to innovate, partner and source with each other, and a range of other on-going activities.

It is my belief that an increased level of collaboration between the agencies can assist Irish owned business grow, while developing and deepening the impact of foreign direct investment and under the Action Plan for Jobs 2012, I established an Enterprise Ireland/IDA Ireland Senior Management Team, comprising representatives from both organisations, to drive effective collaboration in these areas

Among the key initiatives being jointly undertaken by EI and IDA are:

- Undertaking a Global Sourcing Initiative targeted at maximising the procurement opportunities for Irish business with foreign owned companies based in Ireland. This undertaking involved an in-depth strategic assessment of the opportunities presented by Global Sourcing, and the development of a joint agency strategy to outline the core actions required by Enterprise Ireland and IDA Ireland to advance this agenda. This Strategy has now been agreed and identified opportunities progressed by both agencies.

- Collaborating on the Technology Centres initiative which sees Irish and foreign owned companies work together on agreed research programmes. Developing of a joint-agency sectoral approach for the support of selected growth sectors in Ireland (including the Business Process Outsourcing (BPO) and the MedTech Sectors).

- Driving effective collaboration between respective teams in Enterprise Ireland and IDA Ireland working on the overseas entrepreneurs and emerging businesses agenda.

- In addition, both agencies co-operate in the running of joint Trade and Investment Missions abroad and a majority of Enterprise Ireland’s and IDA Ireland’s overseas offices are co-located.

I am satisfied with the level of co-operation between both agencies and there are no plans to merge the two agencies.

Credit Availability

Questions (39)

Thomas P. Broughan

Question:

39. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the support he is providing to small and medium-sized enterprises to access credit; and if he will recommend new packages of measures to support indigenous enterprises as part of budget 2014. [42574/13]

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Written answers

Access to finance remains a major concern for business and is also a major concern for Government in responding to the needs of business. In this respect, the Government is focused on delivering on a practical programme of actions that can achieve positive improvements in the overall operating environment for SMEs and improving access to credit is of course a priority for the Government.

Last year I introduced two targeted schemes to support an additional flow of credit into the economy, namely the Microenterprise Loan Fund and the Credit Guarantee Scheme to positively impact on job creation, retention and sustainability.

The Microenterprise Loan Fund improves access to credit for microenterprises and facilitates the growth and expansion of viable businesses with less than 10 employees from all industry sectors across the country, which have been refused access to credit from the banks. Support is in the form of loans for up to €25,000, available to start-up, newly established, or growing microenterprises, with viable business propositions, that do not meet the conventional risk criteria applied by banks after one full year in operation.

The SME Credit Guarantee Scheme (CGS) supports SMEs who, because of lack of collateral or because of the sector they operate in, face difficulties in accessing traditional bank credit. Commercially viable, well performing micro, small and medium enterprises that have a solid business plan and a defined market for their products or services, and can demonstrate their ability to repay the loan are the target of this scheme. The CGS is currently being independently reviewed to help improve the Scheme for all businesses. I intend taking appropriate action as a result of the review to ensure use of the Scheme is maximised and a report will be published shortly.

In addition to my Department’s work in this area, my colleague, the Minister for Finance, has set the pillar banks’ lending targets so that they rise incrementally with expected demand, with targets of €4bn in 2013, increased from €3.5bn in 2012. The Department of Finance also continues to conduct bi-annual surveys of SMEs to assess credit demand and loan approval rates.

I will of course, with my Government colleagues, be keeping the requirements of SMEs at the centre of the 2014 Action Plan for Jobs and the 2014 Budget.

Oireachtas Joint Committee Reports

Questions (40)

Martin Ferris

Question:

40. Deputy Martin Ferris asked the Minister for Jobs, Enterprise and Innovation his plans to implement the recommendations of the Joint Committee on Jobs, Enterprise and Innovation report into employment in the south east. [42603/13]

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Written answers

The report of the Oireachtas Joint Committee on Jobs, Enterprise and Innovation on the South East Economic Development Strategy (SEEDS), launched on 16 September, is a helpful contribution to identifying possible interventions to assist the South East region economically.

It represents a comprehensive detailed assessment of a wide range of factors that can contribute to the overall economic development of the South East region. Currently my Department is considering the contents of this report, and assessing the merits and practicality of its recommendations. Some of the suggested actions relate to matters which come within the remit of other Government Departments or bodies and some of the recommendations could have significant financial implications, which would be a challenge in the current financial climate.

This report builds on the comprehensive Forfás South East Action Plan which I commissioned at the time of the Talk Talk closure. Work is on-going on the implementation of those Action Plan recommendations, with agencies and stakeholders working together to maximise benefits for the region. I have also established a South East Forum of the key stakeholders within the region. Hopefully this new report will complement and reinforce the objectives of the current Action Plan.

All the key State players have been actively pursuing initiatives to facilitate development and job creation in the region, and I look forward to continued co-operation and collaboration with real benefits for the South East.

I will be asking the South East Forum to let me have their considered views on the Joint Committee report. I will, in due course, also be happy to discuss its findings with the committee, in the context of our ongoing constructive dialogue.

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