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Thursday, 16 Oct 2014

Written Answers Nos. 88-96

Job Creation

Questions (88)

Bernard Durkan

Question:

88. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which any appraisal has been done to determine the extent to which infrastructure required in the context of job creation is deficient in various regions throughout the country; if any action plan is in place to address such infrastructural deficiencies thereby facilitating a balanced economic recovery countrywide; and if he will make a statement on the matter. [39638/14]

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Written answers

The availability of competitively priced world class infrastructure (energy, broadband telecoms, transport, waste and water) and related services is critical to support economic growth and job creation. While Ireland has made significant investment in infrastructure in the past, further investment and improvements are required to ensure that our infrastructure can support economic recovery and job creation. Therefore investing in infrastructure to underpin employment growth has been one of the key priorities of the Action Plan for Jobs since its inception in 2012.

In addition, my Department and its agencies are constantly engaged with relevant infrastructure stakeholders on the particular infrastructure needs required to support enterprise development and job creation. However, given the constraints on Government finances, capital investment in the short term must be highly targeted. In June 2014, Forfás made a submission to the Department of Public Expenditure and Reform’s review of capital investment outlining the main capital priorities for the period to 2020 to support enterprise development and job creation.

The Department of Public Expenditure and Reform has completed its review of the public capital programme, in parallel with the comprehensive review of expenditure. The Government's five year investment strategy will be published before the end of the year. It will focus on infrastructural investment consistent with the Government’s economic and social priorities including the investments that would best support economic recovery and social progress.

Successful enterprise development depends on a well-planned spatial environment, which efficiently delivers the appropriate supporting infrastructures to create competitive and attractive locations for foreign and indigenous business investment. Regions that support strong and dynamic enterprises are crucial to Ireland’s return to overall economic growth and another key priority in the Action Plan for Jobs 2014 is the development of regional enterprise strategies. The objective of the regional enterprise strategies is to enhance synergies between the enterprise agencies and their client companies and build on the competitive strengths of the region to maximise the potential for job creation.

Job Creation

Questions (89)

Bernard Durkan

Question:

89. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he expects innovation and technology to feature in job restoration at various economic black spots throughout the country; and if he will make a statement on the matter. [39639/14]

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Written answers

Investment in science, technology and innovation (STI) is an essential component of supporting an innovative and enterprising economy. It assists in creating and maintaining high-value jobs and attracts, develops and nurtures business, scientists and talented people, ensuring Ireland is connected and respected internationally. The importance of STI to Ireland’s on-going and future economic and social development and well-being is well recognised by the Government. Across the EU, Ireland is ranked third in the EU ‘Indicator of Innovation Output’ (September 2013), which measures the extent to which ideas from innovative sectors are able to reach the market, providing better jobs and making Europe more competitive.

IDA Ireland has a key role in seeking to win high-value R&D investments for Ireland, by promoting collaboration between industry, academia, government agencies and regulatory authorities. It also funds in-company R&D. Ireland’s strengthened national research ecosystem has enhanced IDA’s capacity to attract increased levels of high-value R&D projects which qualitatively transform and deepen the roots of key multinationals here. It is worth noting that every 10 jobs created in multinational companies leads to approximately 7 jobs being created elsewhere in the economy in supply and service business. IDA Ireland promotes a focused regional development strategy and under its Horizon 2020 strategy, it has set targets for investment in the regions.

In terms of the STI ecosystem, the Higher Education Institutions (HEIs), our universities and Institutes of Technology, are located throughout the country and provide a focal point for research and innovation activities. Many of these host Science Foundation Ireland Research Centres and/or joint Enterprise Ireland – IDA Ireland Technology Centres, amongst other supporting initiatives such as Enterprise Ireland’s Technology Gateways and Campus Incubation Programme. The HEI’s also host Technology Transfer Offices, linking in to the central Technology Transfer Office, ‘Knowledge Transfer Ireland’, and are placing an emphasis on collaborations with industry partners in areas of strategic importance, both regionally and nationally.

Foreign Direct Investment

Questions (90)

Bernard Durkan

Question:

90. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which this economy continues to be competitive in terms of attraction of new investment and encouraging indigenous investment leading to job creation; and if he will make a statement on the matter. [39642/14]

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Written answers

We are continuing to make progress as a country in improving our international competitiveness, towards the Government’s objective of being the best small country in the world in which to do business. Since 2011, Ireland’s international competitiveness rankings in both the IMD and WEF competitiveness reports has improved – from 24th to 15th in the IMD’s World Competitiveness Yearbook, and from 29th to 25th in the WEF Global Competitiveness Report. In the World Bank’s Doing Business 2014 report, Ireland is ranked 15th out of 189.

According to the WEF, Ireland ranks ahead of other advanced countries in categories such as Institutions (e.g., rule of law, corporate governance, etc.), Labour Market Efficiency, and the Goods Market category (e.g. presence of competition, taxes, etc.). Irish scores are weakest in the 'Macro-Economic Environment' category which is driven by Government debt and borrowing. Market size and access to funding are also somewhat weaker. These weaknesses are being addressed through Government macro-economic policies and the on-going focus on improving the performance of financial institutions.

Ireland’s positive and improving business environment was noted in the European Commission’s Member States’ Competitiveness Report (published 11 September 2014).

In terms of employment creation, according to the CSO, 33,700 jobs were created in the year to Q2 2013 and a further 31,700 were created in the year to Q2 2014.

In relation to the net change in Enterprise Agency-supported employment, total permanent, full-time employment in agency-assisted companies in the industrial and services sectors amounted to 303,155 in 2013, an increase of 8,579 jobs on 2012 employment.

Foreign Direct Investment has been buoyant so far this year, with IDA Ireland securing over 100 investments in the first half of 2014, up from 70 in the same period of 2013, with potential job creation of 8,000. 40% of the investments come from companies investing in Ireland for the first time, as Ireland’s value proposition continues to resonate with new investors. The Government has recently published a Policy Statement on FDI designed to ensure that Ireland’s inward investment offering continues to be attractive and competitive.

On the indigenous side, the National Policy Statement on Entrepreneurship in Ireland has just been published which aims to support the creation of an additional 93,000 jobs from start-up companies in the next five years.

Job Creation

Questions (91)

Bernard Durkan

Question:

91. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he and his Department have identified major fundamental issues affecting investment and job creation which might need prioritisation to facilitate maximum economic benefit; and if he will make a statement on the matter. [39643/14]

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Written answers

My Department reviews and assesses the fundamental issues affecting investment and job creation on an on-going basis and identifies the priority actions needed to address them. Ireland as a small, open economy faces intensified international competition for FDI; our Irish exporting enterprises need to be innovative if they are to be successful in overseas markets; and many of our indigenous enterprises trading on the domestic market now face international competition on their door-step.

During the recessionary period, and in response to the crisis, my Department led the development of the Action Plan for Jobs – an annual process that placed job creation at the centre of Government action – and that prioritised the fundamental issues affecting enterprises and actions needed to address them.

Relative cost competitiveness (as distinct from low cost) continues to be a key factor in investment decision making. According to National Competitiveness Council, Ireland’s cost base has improved across a range of metrics. Nevertheless, we need to remain vigilant, particularly with respect to labour, energy and a range of business and professional service costs. We will continue to focus on ensuring that all viable businesses can access sufficient finance to meet their needs in a way that supports growth and jobs.

We need to continue to deliver the talent and skills that enterprise needs, in terms of having a sustainable supply of world class core competences, and also in terms of the higher order abilities (such as problem-solving, creativity and design thinking) of its workforce and graduate output. My Department will continue to support the excellent, evidence based analysis on sector specific skills needs through the work of the Expert, Group on Future Skills Needs. We will also continue to work with the Department of Social Protection to ensure that the training and development delivered to support those currently out of employment will equip them to take advantage of job opportunities as they arise.

We need also to sustain our investment in R&D. We know that supports provided by the agencies are delivering economic benefit, with more firms are engaging in innovation activity and we need to continue to focus our investments in the areas set out in the Research Prioritisation Exercise.

Finally, we need also to prioritise investments in enhancing Ireland’s city regions and in harnessing the different potential evident across each of our regions. I have asked the enterprise agencies as a matter of priority to set out the enterprise potential for each of the regions, the actions they will take to prioritise regional development within their own strategies and to indicate the barriers that may be inhibiting growth potential. Investment in broadband infrastructures, in advanced property solutions and infrastructures and in providing cost competitive, resilient and competitive sources of energy, is crucial to underpin sustainable, long term economic growth throughout the country.

Skills Development

Questions (92)

Bernard Durkan

Question:

92. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the degree to which he and his Department have monitored the skills requirements in respect of the various jobs created over the past three years, with particular reference to planning for the future and ensuring an adequate skill requirement for the workplace; and if he will make a statement on the matter. [39644/14]

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Written answers

The Irish economy is dependent upon international trade to a greater extent that most other developed countries. Ireland has benefitted much through the opening up of EU and world markets in terms of having access by indigenous firms to bigger export market and also through multi-national firms setting up here to export into them. The Department of Jobs, Enterprise and Innovation together with its enterprise development agencies and bodies such as the Expert Group on Future Skills Needs is engaged in a continuous process of scanning the external environment for changes in technology, business models and enterprise requirements and developing policy responses to ensure Ireland remains at the forefront internationally as a location from which to trade and to invest and grow jobs.

There are several global drivers of change impacting on the international market for goods and services including:

- Globalisation which has led to a growth in global manufacturing value chains sited in different locations world-wide in the pursuit of the most competitive costs.

- Technological advances including advanced materials, nanotechnology, biotechnology, and advanced manufacturing which are giving rise to a wider range of innovative products and processes.

- Shifting demographics which is resulting in a strong demand for health and lifestyle products and services.

- Changing consumer preferences which are raising the complexity of demand for manufactured goods, particularly for electronics, communications and transport.

- Energy and environmental concerns and rising energy prices are resulting in firms striving for greater efficiencies in energy and waste.

The globalised nature of the world economy requires employees to acquire a range of international business and technical skills and an understanding of cultural differences and working practices. The ongoing globalised nature of the world economy means that Ireland has to continually establish its niche as a high performing, productive and innovative country. For Ireland to compete effectively in the global market place, it is important to enhance the skill levels of the working population. World class skills, education and training have been identified in the Expert Group on Future Skills Needs (EGFSN) as a key area where Ireland can continue to develop competitive advantage in building sustainable enterprises.

The standard of living achieved in Ireland can only be maintained and improved upon, through high productivity and innovation which in turn is supported by high levels of education and training attainment. The skills requirements of the economy are not static. This has implications for the skill profile of those at work – with a need for all to upskill.

All occupations are becoming more knowledge-based, requiring an increasing breath of knowledge, rising technical, qualification, regulatory requirements and continual learning. There is an increasing emphasis on generic skills in both new and existing jobs. There are basic skills which everyone will require to access the labour market and increasingly to participate in society. These include literacy, numeracy, and using technology. There is also an increasing emphasis on people related skills such as communication, interpersonal skills, team working and customer service skills, and for conceptual skills such as problem solving planning and organising and learning to learn. The trends show that an Increasing breadth of knowledge will be required. For example software engineers now need more than just programming skills; they also need an understanding of the business domain that their research is intended to target. Food operators are increasingly required to update their skills to meet food safety requirements.

The development of appropriate skills for the workplace has implications for curricula, programme design and teaching methodologies at all levels of the further education and training and third level education system. The programme of reform which is being rolled out across all the education and training system seeks to further improve the quality of the teaching and learning experience for job seekers and students and to ensure the ongoing supply of high quality entrants for the workforce. It also seeks to improve the employability prospects of those unemployed in re-entering the workforce. At the primary education level a key focus of reform is on developing the key skills of literacy and numeracy through the implementation of the National Literacy and Numeracy Strategy and at second level Junior Cycle reform is embedding key skills throughout the curriculum.

Ireland has led the way in developing a National Framework of Qualifications that incorporates vocational and academic qualifications into a single framework. There is a need to ensure that state funded education and training leads to accreditation and qualifications. Qualifications help the labour market communications process. Individuals can communicate to employers the skills that they have. Employers can identify the skills available and do a better job of skills matching.

The Expert Group on Future Skills Needs plays a key role in advising on future enterprise skills needs. The head of the EGFSN secretariat responsible for the groups research, analysis and publications is within the Strategic Policy Division, Department of Jobs, Enterprise and Innovation. Industry representative bodies companies and senior executives from IDA Ireland and Enterprise Ireland along with officials from the Departments of Education and Skills and Jobs Enterprise and Innovation, the HEA and further and higher education and training providers participate in the EGFSN. Specific sectoral studies are advised by a steering group which is comprised of companies from within the sector. The EGFSN research provides a valuable input to education policy and the development of course curricula by individual institutions.

Job Creation

Questions (93)

Bernard Durkan

Question:

93. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which the manufacturing sector continues to create employment; the extent to which efforts continue to be made to ensure the retention of the maximum number of manufacturing jobs throughout the country; and if he will make a statement on the matter. [39657/14]

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Written answers

The Forfás Strategy for the Manufacturing Sector, which I commissioned, and which was published in April 2013, identified that an additional 20,000 jobs can be created in the sector by 2016. A complementary report on the skills needs for the sector, which I had commissioned at the same time, was published by the Expert Group on Future Skills Needs and Forfás, and it identified a series of actions to enhance skills in the sector.

Arising from the Manufacturing Strategy and the Skills Report, there are now a range of initiatives in hand by relevant Agencies to drive the 2016 target, with key actions from both reports having been incorporated into the Action Plans for Jobs for 2013 and 2014. One of the key actions is to deliver a National Step Change initiative to strengthen Ireland’s manufacturing base across all firms engaged in manufacturing i.e. small and medium-sized firms and larger multi-nationals, particularly in higher-value sub sectors such as chemicals, pharmaceuticals, medical devices and food. In addition a wide range of training and educational initiatives are underway by the relevant providers, such as Skillnets.

Both IDA Ireland and Enterprise Ireland are working with both existing and prospective new client companies to promote the sector in Ireland, with consequent job creation and retention, and several recent new job announcements have been in respect of companies engaged in manufacturing, which is very heartening.

In relation to overall employment in the manufacturing sector, the sector supports over 400,000 employees when account is taken of indirect jobs. I am confident that the measures currently underway will help develop and grow the manufacturing sector in Ireland which, in turn, will lead to the creation of sustainable employment.

Disadvantaged Areas Scheme Payments

Questions (94)

Charlie McConalogue

Question:

94. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine when payment under the disadvantaged area aid scheme will issue in respect of a person (details supplied) in County Donegal; and if he will make a statement on the matter. [39516/14]

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Written answers

Processing of the Disadvantaged Areas application of the person named has recently been finalised, with payment due to issue shortly, directly to the nominated bank account of the person named.

Grant Payments

Questions (95)

Michael Moynihan

Question:

95. Deputy Michael Moynihan asked the Minister for Agriculture, Food and the Marine when the single farm payment will issue in respect of a person (details supplied) in County Cork; and if he will make a statement on the matter. [39531/14]

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Written answers

The person named submitted a 2014 Single Farm Payment/Disadvantaged Areas’ scheme application on 14 April 2014. EU Regulations governing the administration of these schemes require that full and comprehensive administrative checks, including in some cases Remote Sensing (i.e. satellite) inspections, be completed before any payments issue.

The application of the person named was selected for a Remote Sensing eligibility inspection. This inspection has been completed. Processing will now be finalised and I expect that payment will issue shortly to the nominated bank account of the person named.

Disadvantaged Areas Scheme Payments

Questions (96)

Patrick O'Donovan

Question:

96. Deputy Patrick O'Donovan asked the Minister for Agriculture, Food and the Marine the reason a disadvantaged area payment in respect of a person (details supplied) has not been paid; when they will receive payment of same; and if he will make a statement on the matter. [39539/14]

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Written answers

Processing of the Disadvantaged Areas application of the person named has recently been finalised, with payment due to issue shortly, directly to the nominated bank account of the person named.

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