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Job Creation

Dáil Éireann Debate, Thursday - 5 June 2014

Thursday, 5 June 2014

Questions (12)

Bernard Durkan

Question:

12. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which jobs continue to be created through foreign direct investment and the indigenous sector having regard to the experience of the past three years to date; if he has in mind any proposals to address any issues arising; the extent to which job creation in the manufacturing and service sectors has kept pace with worldwide trends; if any particular issues have arisen which might require further attention to ensure continuation of economic growth; and if he will make a statement on the matter. [23796/14]

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Written answers

I am glad to say that the numbers employed in companies supported by the enterprise development agencies operating under the aegis of my Department, IDA Ireland and Enterprise Ireland, has steadily increased in the three year period 2011 to 2013 inclusive. Total employment in IDA Ireland companies (including companies that were formerly clients of Shannon Development) has risen from 146,419 at end 2010 to 166,184 at end 2013, while total job numbers in Enterprise Ireland client companies rose from 166,890 at end 2010 to 175,750 at end 2013. This increase of 19,715 and 8,860 respectively is in sharp contrast to the previous three year period from end 2007 to end 2010 when job numbers declined by 41,985 (16,800 in IDA Ireland client companies and 25,185 in Enterprise Ireland client companies).

In relation to employment in the economy as a whole the latest CSO Quarterly National Household Survey showed that the number of people in employment at Q1 2014 stood at 1.903 million, an increase of over 65,000 in the numbers at work in the last two years. This performance in employment growth is better than anywhere in the OECD.

In addition, my Department has reformed the system for delivery of support to micro and small enterprises by creating the Local Enterprise Offices (LEOs) within the Local Authority structure. This reform will help to make the operating environment for businesses more coherent, responsive and conducive to entrepreneurship at local level. All 31 LEOs opened for business on 15th April.

The Action Plan for Jobs 2014 includes a commitment to develop a framework for a Regional Enterprise Strategy to better integrate the efforts of the enterprise development agencies and other regional stakeholders in supporting enterprises. My intention is that the framework will be developed on a pilot basis initially, focusing on the Midlands region, and involving the agencies under the remit of my own Department – Enterprise Ireland, IDA Ireland and the Local Enterprise Offices. The objective is to enhance synergies between the agencies and their client companies and build on the competitive strengths of the region to maximise the potential for job creation. The role which other public bodies in the region can play in working towards this objective will also be examined as the project develops. The aim is that this framework will serve as a model for other regions of the country.

Under the 2014-2020 Regional Aid Guidelines, which will enter into force on 1 July 2014, areas accounting for 51.28% of Ireland’s population will now be eligible for assistance. This represents a substantial increase from the 25% originally proposed by the Commission, and an increase from the 50% under the 2007-2013 Map. Aid intensity rates were also maintained at their current levels.

It is an acknowledged fact that since 2000 there has been a decline in the manufacturing sector in most developed economies including Ireland. The Forfás Strategy on Manufacturing, which I commissioned and which was launched in April 2013, identified that a total of 205,700 people were directly employed in Manufacturing and that a similar number of jobs were indirectly supported. At the end of 2013, Central Statistics Office Data (Quarterly National Household Survey, Q 4 2013) shows that a total of 215,900 were directly employed in the sector, a rise of 10,200 on that earlier figure. When indirect jobs are taken into account, the position is that the Manufacturing sector supports over 430,000 jobs (end 2013). My agencies are now rolling out actions aimed at sustained growth in manufacturing.

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