Dáil Éireann Debate, Tuesday - 8 April 2014
170. Deputy Bernard J. Durkan asked the Minister for Finance the most successful initiatives taken by Government in the past three years to regenerate growth and job creation; and if he will make a statement on the matter. [16804/14]
View answerThe Government places a high priority on job creation and the recent labour market figures are very positive in this regard. Employment growth of 2.4% in 2013 marked an end to five consecutive years of employment declines. Employment levels have now returned to those last seen in Q4 2010.
These positive trends demonstrate the effectiveness of recent labour market initiatives taken by the Government. The 2012 Action Plan for Jobs initiated over 270 measures to promote job creation across all sectors of the Irish economy. Initiatives included launching a new development capital scheme aimed at addressing a funding gap for mid-sized, high-growth indigenous companies; extending the corporation tax exemption for start-up companies; and the creation of a micro finance fund and a targeted temporary partial credit guarantee for SMEs.
The 2013 Action Plan for Jobs built on the success of these measures by initiating a range of new reforms such as the creation of a single licensing application for the retail sector in order to reduce the compliance burden of the industry; increasing computing programme places, reskilling workshops and conversion courses; investing heavily in new research facilities for big data; introducing an online trading voucher to the value of €2,500 to help get more SMEs trading online; and the introduction of the JobsPlus incentive scheme to encourage businesses to recruit the long-term unemployed.
Budget 2013 introduced the Ten-Point Tax Reform Plan to support SMEs to improve cash flow, access to funding and to lower costs and administrative burdens facing SMEs. Provision of NPRF-backed equity investment, credit provision and restructuring/recovery investment funds for SMEs also contributed to boosting employment in the sector. Most recently, in Budget 2014, a €500 million pro-jobs package was introduced, with targeted measures for the different sectors of the economy. Under the 2011 Jobs initiative the VAT rate was reduced for the hospitality sector, and the Government continued this measure in Budget 2014. The Home Renovation Incentive was introduced providing homeowners with tax relief on repair, renovation or improvement work. To support entrepreneurs the Start Your Own Business initiative was introduced which provides an income tax exemption of €40,000 on the profits of a new business started by an unemployed individual. To support the labour-intensive tourism industry, the air travel tax was removed.
Building on the measures introduced in previous Budgets and action plans, the Government's recent Action Plan for Jobs 2014 sets out sectoral priorities and quantifiable actions to support sectors with employment growth potential (Agri-Food, ICT, international financial services), sectors of emerging opportunity (Green economy, creative industries, aviation and health care services) and mature sectors (tourism, retail, construction).
The job creation measures initiated by this Government over the last three years have helped promote the recent employment recovery and - along with new reform initiatives - will help ensure the Government's medium-term goal of ensuring a return to full employment.
