Written Answers Nos. 100-109
100. Deputy Colm Keaveney asked the Minister for Jobs, Enterprise and Innovation if he will consider flying the Amber Flag from his Department buildings on a chosen day to raise awareness of the Amber Flag programme, which works to raise awareness of mental health issues within second-level schools, sports clubs and youth organisations; and if he will make a statement on the matter. [6433/15]
View answerMy Department and I support the work of groups like Suicide Aware and their programme initiatives such as the Amber Flag Programme. I acknowledge the tireless work to raise both the awareness and the profile of mental health issues in general and in particular, among our student and youth population. As the Deputy may be aware, decisions regarding the raising and lowering of the national flag on Departmental Buildings are taken by the Protocol and General Division of the Department of the Taoiseach and not directly by my Department. Consistent with this protocol, my Department would follow decisions taken centrally from time-to-time on the question of flying any other flag.
101. Deputy Maureen O'Sullivan asked the Minister for Jobs, Enterprise and Innovation to set out his views on whether the use of zero-hour contracts is causing great uncertainty and a lack of stability for many workers; his further views on whether this growing trend should not be encouraged and that the current rate of 25% of compensation for weekly staff not required to work while on zero-hour contracts should be increased to a higher investment to stop companies investing with the aim of taking advantage of workers by utilising the zero-hour contract facility; and if he will make a statement on the matter. [6449/15]
View answerIn accordance with the Statement of Government priorities, Minister Nash has commissioned a study into the prevalence of zero hour and low hour contracts and the impact of such contracts on employees. Earlier this week, I announced the appointment of the University of Limerick (UL) to carry out the study. The appointment of UL follows a competitive tendering process. The key objectives of the study are:
- To fill the gap that currently exists in terms of the hard data and information that is available concerning the prevalence of zero hour and low hour contracts in the Irish economy and the manner of their use.
- To assess the impact of zero hour and low hour contracts on employees.
- To enable the Minister to make any evidence-based policy recommendations to Government considered necessary on foot of the study.
All sectors of the economy, both public and private, will come within the scope of the study, including the retail, hospitality, education and health sectors in particular. The study will examine how zero and low hour contracts operate in practice and how they impact on employees. It will assess the advantages and disadvantages from the perspective of employer and employee and assess the current employment rights legislation as it applies to employees on such contracts. The study will also consider recent developments in other jurisdictions, including the UK in particular.
Unlike the position in the UK, Section 18 of the Organisation of Working Time Act 1997 provides that where employees on zero hour contracts suffer a loss by not being given the hours they were requested to work or be available for work, they can be compensated for 25% of the time or 15 hours, whichever is less. There is no equivalent provision in the UK, where employees on zero hours contracts are only paid for time spent working and if they are not given any hours by their employer they receive no compensation.
It is expected that a wide range of stakeholders will be canvassed to contribute to the study, including employers, trade unions, relevant Government Departments and relevant state bodies. I expect the study to be completed within six months of commencement.
102. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation to outline the extent to which he expects to be in a position to encourage and facilitate job creation through the aegis of small and medium-sized enterprises in the manufacturing and services sectors in the next 12 months; the degree to which current indicators remain positive in this regard; and if he will make a statement on the matter. [6548/15]
View answer108. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation to outline the total number of jobs he expects to be created in the services and manufacturing sectors over the next three years on an annual basis; and if he will make a statement on the matter. [6555/15]
View answer111. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation to set out the degree to which he expects job creation in the manufacturing and the services sectors to grow in County Kildare over the next four years; and if he will make a statement on the matter. [6558/15]
View answerI propose to take Questions Nos. 102, 108 and 111 together.
The 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. Developing manufacturing was adopted as a Disruptive Reform in the 2014 Plan. One of the key actions there is the delivery of 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 multinationals, 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.
A suite of measures designed to support industry growth across a span of sectors, including both Manufacturing and Services, are set out in the new Action Plan for Jobs 2015 which I launched recently, and include encouraging entrepreneurship and supporting start-up activity, further improving our skills base, assisting our businesses to grow, improved access to finance by SMEs and developing and deepening opportunities from global investment.
As a small open economy, Ireland is impacted by global economic cycles and shifts in competitiveness worldwide. In the case of manufacturing, lower labour costs in Asia have, for many years had a significant impact on the production of lower value goods with high labour element, but Government policy has pursued the development of higher value areas. Since the advent of the recession, Ireland’s competitiveness has improved, as shown by our rise in International rankings, as various costs have been reduced. Overall trends are very positive. The Annual Employment Survey shows a rise in employment in Agency supported manufacturing companies of over 3,300 between 2011 and end 2013, (2014 sectoral data is not yet available). The latest data for Agency –supported Internationally Trading Services companies show a rise of over 14,000 in the same period. Other Services sectors in the domestic economy, which are outside the remit of the Development Agencies, have also shown significant growth in employment in recent years.
It would not be appropriate to set individual targets on a county basis, so specific data for Kildare, as requested by the Deputy is not available. However, right across the country, both IDA Ireland and Enterprise Ireland are working with both existing and prospective new client companies especially with manufacturing and services companies, with consequent job creation and retention.
2014 was a very productive year for expansion in both Foreign and Indigenous Agency-supported companies, with IDA having created a net increase of 7,131 jobs and Enterprise Ireland having created a net increase of 8,476 jobs in their client companies. In relation to developing the SME sector, in addition to the work of Enterprise Ireland, the new Local Enterprise Offices ( LEOs) are working to develop the smaller businesses and helping them to grow and prosper.
To ensure a better spread of industrial development in the regions, I have initiated the development of new Regional Strategies, to be rolled out this year and I am hopeful that this new approach will help to reinvigorate the industrial base of areas which are away from the main urban centres. The Government are therefore committed to strong job creation in all regions of the country. This policy is already working – for example the Mid-East region, which includes Country Kildare, has seen its unemployment rate reduced from 13.8% to 10.7% in the last 2 years alone. The overall National Unemployment rate continues to fall and now stands at 10.5%, a dramatic improvement on the position which pertained just a few years ago, after this Government took office.
103. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation to outline the extent to which he expects to be in a position to offer assistance and incentives to the indigenous business sector in the course of the next 12 months with a view to increased employment; and if he will make a statement on the matter. [6549/15]
View answer105. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation whether he is satisfied that all means of assistance available to the indigenous business sector here are readily available and accessible; and if he will make a statement on the matter. [6551/15]
View answerI propose to take Questions Nos. 103 and 105 together.
Since 2012, the Action Plan for Jobs has set a comprehensive set of measures agreed by Government to promote jobs opportunities and employment growth in all parts of the country. The 2015 Action Plan, which I recently launched, contains a suite of 380 actions to ensure we deliver not just the promised 100,000 additional jobs by 2016, but an additional 40,000 jobs this year alone. Specifically, in 2015, Enterprise Ireland will target the creation of 13,000 gross new full-time jobs in indigenous firms. It is estimated that every direct job created in agency assisted firms indirectly supports another job in the wider economy thereby making a strong contribution to the overall target of getting to full employment in 2018.
Enterprise Ireland uses a developmental approach across all aspects of clients’ needs, including business development, sales and marketing capabilities, innovation and R&D activity, technology development, continuous competitiveness and lean improvements, leadership and management development, and access to finance. EI supports are tailored to reflect companies’ stage of development. This ensures that all of its clients, from Entrepreneurs and Start-Ups, to exporting SMEs and scaling companies, can access the appropriate supports to help them to create and sustain jobs.
In January, Enterprise Ireland reported that its client companies created 19,705 new jobs in 2014. These companies continue to see year-on-year jobs growth in 2014 and they created 8,476 net new jobs - the highest net gain in the history of the agency. This employment growth demonstrates the direct impact that increasing exports has on jobs in Ireland. Enterprise Ireland supported companies now directly provide employment for 180,072 people, comprising 156,202 full-time and 23,870 part-time workers.
The outlook for new job creation in 2015 is positive and Enterprise Ireland’s focus will remain on ensuring that its clients have access to all of the necessary supports required to build on this momentum. This focus, coupled with EI’s priority to support entrepreneurship across the regions, and develop strong, export focused, ambitious Irish companies that can win new business, will mean more jobs for Ireland over the next 12 months. Details on EI’s offering to business are available at www.enterprise-ireland.com.
At a micro level, each of the 31 Local Enterprise Offices (LEOs), established last year, is preparing a Local Enterprise Development Plan for 2015 which will set out strategic objectives around which they will deliver their range of supports, advice and information to the small and micro business community. The Plans include targets for the key metrics of business start-ups, business expansions and jobs created / sustained, as well as initiatives to drive entrepreneurship and greater levels of economic activity. Details on the LEOs and their offering to business are available at www.localenterprise.ie.
In terms of access to finance for SMEs, my Department introduced two credit schemes, the SME Credit Guarantee Scheme (CGS) and the Microenterprise Loan Fund Scheme, both of which have been in operation since October 2012. Both Schemes are novel in an Irish context and are continuing to develop a position in the Irish financial arena. Both represent a significant change in our enterprise supports, which primarily have been focused on the exporting sectors, since these supports are also available to the locally traded sectors, in view of their crucial role in job creation. Businesses can access details of these and other SME support schemes at www.localenterprise.ie/smeonlinetool/businessdetails.aspx.
My Department is actively reviewing and improving both Schemes and will take the necessary legislative steps to deliver changes to both Schemes, including a new CGS to allow for re-financing, a Credit Guarantee (Amendment) Bill and a revised Microenterprise Loan Fund Scheme.
104. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation to outline the extent to which he expects European Union assistance by way of innovation and technology to directly benefit the indigenous business sector in this country over the next five years; and the likely effect on the economy here as a result. [6550/15]
View answerIreland’s Partnership Agreement with the European Commission sets out the agreed framework for the use of European Structural and Investment (ESI) funds in Ireland. The Partnership Agreement was adopted in November 2014. Specifically, in the context of support for innovation and technology, the following has been agreed between the European Commission and the Irish Government:
- €320 million for the Border, Midlands and West (BMW) Regional Operational Programme 2014-2020, with €160 million coming from the European Regional Development Fund (ERDF). The Programme will be managed by the Northern and Western Regional Assembly.
- €498 million for the Southern and Eastern (S&E) Regional Operational Programme 2014-2020, with some €249 million coming from the European Regional Development Fund (ERDF). The Programme will be managed by the Southern Assembly.
Accordingly, the total programme expenditure for the two ERDF Programmes, including EU and matching funding, amounts to just over €800 million.
The investments will benefit small and medium-sized enterprises (SMEs) in particular, spearheading entrepreneurship initiatives to boost the growth potential and competitiveness of Ireland's small business. The Programmes are expected to support more than 60,000 SMEs across the country with direct financial assistance or other support measures such as mentoring, management training and advisory services, creating over 9,000 jobs in directly-supported enterprises. A further 340 high-growth companies will benefit directly from R&D and Innovation supports.
The Programmes also aim to complement wider investment programmes in targeted high-growth and innovative sectors to support the creation of new quality jobs and boost innovation, as well as helping to grow the local economies, in these regions.
In addition to grant assistance available to Ireland under the above Programmes, Irish researchers and businesses can also compete for funding under the EU Framework Programme for research and innovation. The current EU Framework Programme for research and innovation, which is part of the drive to create new growth and jobs in Europe, is Horizon 2020. The Programme has a budget of close to €80bn. and runs over the period 2014-2020. Irish companies who compete successfully for funding from this large research funding resource will boost their innovative capability and competitiveness which in turn will deliver strong national economic impacts.
There are three main pillars in Horizon 2020 – Excellent Science, Industrial Leadership and Societal Challenges. There are specific opportunities for SMEs across the Horizon 2020 Programme, including an SME Instrument which can provide support for consortia of highly innovative smaller companies collaborating on projects.
The H2020 national support system is based in Enterprise Ireland consisting of a national office and a network of national contact points in the relevant programme areas. Information and support is available to enterprise and researchers to facilitate their engagement with the opportunities available under Horizon 2020.
106. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation to outline the extent to which he expects foreign direct investment to play a part in job creation over the next five years; and if he will make a statement on the matter. [6552/15]
View answer113. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation to outline the extent to which he expects Irish brand, image, culture and heritage to continue to be beneficial in attracting more industry here as well as a means of creating a good international image for the future; and if he will make a statement on the matter. [6561/15]
View answerI propose to take Questions Nos. 106 and 113 together.
My Department’s Policy Statement on Foreign Direct Investment, which was published at the end of July 2014, sets out the strategic direction for FDI to 2020 and the key actions needed to enhance Ireland’s attractiveness and business environment in the context of intensified international competition for investment and talent. As the Deputy is aware Ireland continues to perform well in the attraction of new investment and particularly so in recent years as FDI inflows to Europe have slowed considerably.
Total employment at IDA client companies now stands at 174,488 people, the highest level in the history of IDA Ireland. The job performance took place against a particularly challenging European economic environment and changing corporate taxation landscape. There were 197 investments in 2014, equating to a 20% increase on 2013. There was a notable rise in new-name investment, with 88 new name investors in 2014.
This highlights both the draw of large wealthy markets for FDI, particularly when the focus activities are sales and marketing, but also investor options across Central & Eastern Europe and Western Europe for manufacturing, R&D and business support services. The range of countries competing for FDI in Europe demonstrates the intensity of the marketplace to secure investments for Ireland. In Ireland’s case, cost competitiveness, the availability of a dynamic talent pool and targeted sectoral focus, was underpinned by the strong economic management and certainty on the 12.5% corporate tax rate.
The US continues to be the largest single investor in Europe accounting for about 25% of all inward investment projects and job creation. While Ireland is a very significant recipient of US FDI for contestable investments, competition with the UK, Germany and France, the major overall beneficiaries of US investment into Europe, is intense. The proposed TTIP currently under negotiation could be transformational in this area. There are potentially many benefits for Ireland from a successful deal but we must also be aware that such trade deals can impact FDI flows.
IDA Ireland constantly monitors competitor locations and the value propositions they offer potential mobile investment. Competitor locations differ depending on the sector of the mobile investment. In this respect, IDA Ireland is continuously working to ensure that Ireland is the most competitive, innovative and relevant to the investment being targeted.
Multinational companies account for almost 10% of the Irish workforce and are of crucial strategic importance for the economy due to the quality of the jobs involved, their export focus and the massive knock-on impact they have on the wider economy.
Ireland’s relative cost competitiveness, corporate tax regime and available direct firm level financial supports remain critically important - but in reality they are no longer aspects that will substantially differentiate Ireland’s offering for FDI over the longer term. So in addition to maintaining a competitive offering in these areas we must at the same time redouble efforts to develop and reinforce the aspects that truly differentiate Ireland’s offering in a context of intensified global competition for mobile investment. With this objective in view, IDA Ireland is in the process of preparing a new corporate strategy for the years 2015 to 2020, which is currently being finalised and will be launched in the coming weeks.
We are determined to ensure that every region will benefit from the recovery. Yesterday, along with the Taoiseach and the Tánaiste, I announced the details of a comprehensive new strategy to support enterprise growth and job creation at regional level. The Regional Action Plan for Jobs initiative seeks to build on the success of the annual Action Plan for Jobs process by developing locally driven plans that can build on the strengths and opportunities identified in each region.
The strategy will provide up to €250 million over five years in additional funding to support regional enterprise development. This includes the roll out of a five year, €150 million property investment programme by the IDA to attract foreign direct investment into the regions. This programme will build on the recent investment by the IDA in a number of advance manufacturing facilities in regional locations. A further sum of up to €100 million will be available to Enterprise Ireland to support enterprises in the regions to start-up, grow and export, thereby creating more jobs in regional locations.
107. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation to set out the extent to which it is expected that the skills available, through those on the live register, will be matched to the skill requirements of the workplace, in respect of the indigenous and foreign direct investment sectors, over the course of the next three years; and if he will make a statement on the matter. [6553/15]
View answerAs part of the implementation of the Government’s Action Plan for Jobs and Pathways to Work, there is a continuing focus on matching the skills of those on the Live Register with the current and future skills demands of both indigenous and foreign owned businesses. As well as those recruited directly into such vacancies, there is a clear focus on improvements in education and training through the provision of programmes for a diverse range of unemployed people. These include those provided by the Education and Training Boards in the implementation of the Further Education Strategy 2014-2018, the Momentum programmes, the Higher Education authority’s Springboard programmes which offer short higher education courses for jobseekers with previous work experience, employment incentive schemes such as JobsPlus and the doubling of places on high-level ICT third level courses as part of the second ICT Skills Action Plan. The 16th January call for employers and education providers to collaborate in developing a range of new apprenticeships should provide further opportunities for those on the live register seeking to develop careers across a broader range of apprenticeships across the manufacturing and services sectors. The Action Plan for Jobs since 2012 has set a comprehensive set of measures agreed by Government to promote job opportunities and employment growth in all parts of the country. The 2015 Action Plan for Jobs was launched on January 29th. It commits to implementing the 70 actions in Pathways to Work 2015. These include beginning the new account management approach to employers, roll-out JobPath, continuing to roll-out the Youth Guarantee initiatives, and introduce a Back to Work Family Dividend. Almost 80,000 more people are at work since the launch of the first Action Plan for Jobs in 2012.
Indigenous exports and foreign direct investment are at all-time record levels. Our competitiveness ranking internationally has climbed to 15th. The rate of unemployment has declined from a peak of 15.1 per cent at the start of 2012 to below 10.6 per cent at end 2014. In 2014, client companies of Enterprise Ireland and IDA Ireland created 8,476 and 7,131 net new jobs respectively; this represents the highest levels of net new job creation by agency client companies in over a decade and most of this employment growth was in full-time employment.
The 2015 Action Plan contains a suite of 380 actions to deliver an additional 40,000 jobs this year. Specifically, in 2015, Enterprise Ireland will target the creation of 13,000 gross new full-time jobs in indigenous firms. IDA Ireland will target the creation of 14,000 gross new jobs in multinationals. It is estimated that every direct job created in agency assisted firms indirectly supports another job in the wider economy thereby making a strong contribution to the overall target of getting to full employment in 2018.
The Expert Group on Future Skills Needs (EGFSN) plays a key role in advising on the current and future skills required by employer and that education and training provision reflects these needs, through for example providing the guidelines on skills needs for the annual Springboard courses for jobseekers. Officials from the Department of Education and Skills and my Department, the HEA and further and higher education and training providers participate in the EGFSN along with industry representatives and IDA Ireland and Enterprise Ireland. Recent EGFSN reports have anticipated future job opportunities arising from both expansion and replacement demand for a range of occupational roles including in ICT, data analytics, manufacturing, medical devices, pharmaceuticals, food and beverages, international sales and marketing, project management, freight transport, distribution and logistics – including warehousing and growth in the hospitality sector.
109. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation to set out the extent to which he expects job creation over the next three years to focus on the job requirements of youth unemployment; and if he will make a statement on the matter. [6556/15]
View answerThe Government’s Action Plan for Jobs, which is co-ordinated and developed by the Department of Jobs, Enterprise and Innovation since 2012, has set out a comprehensive set of measures to address the unemployment challenge for all age cohorts. The 2015 Action Plan for Jobs was launched on January 29th. Almost 80,000 more people are at work since the launch of the first Action Plan for Jobs in 2012. The CSO data for January 2015 indicates that the number of persons aged 25 on the Live Register and under has fallen to 13.7% from 15.1% in January 2014, a reduction of 11,248 over the year. The rate of unemployment has declined from a peak of 15.1 per cent at the start of 2012 to below 10.5 per cent in January 2015.
The Government’s primary strategy to tackle youth unemployment is to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth and the availability of productive employment for young people.
The Expert Group on Future Skills Needs (EGFSN) plays a key role in advising on future enterprise skills needs and that education and training provision is providing our young people with the skills required to take up available employment opportunities. Officials from the Department of Education and Skills and my Department, the HEA and further and higher education and training providers participate in the EGFSN along with industry representatives and the enterprise development agencies. Recent EGFSN reports have anticipated future job opportunities arising from both expansion and replacement demand for a range of occupational roles including in ICT, data analytics, manufacturing, medical devices, pharmaceuticals, food and beverages, international sales and marketing, project management, freight transport, distribution and logistics – including warehousing and growth in the hospitality sector.
While it is the Pathways to Work strategy that focuses on specific measures to improve employment opportunities for young persons, the steps taken to date under previous Action Plans, and those set out for this year, complement that work and directly assist young job seekers. The Action Plan for Jobs commits to implementing the 70 actions in Pathways to Work 2015. These include beginning the new account management approach to employers, roll-out JobPath, continuing to roll-out the Youth Guarantee initiatives, and introduce a Back to Work Family Dividend. In addition, as part of Pathways to Work, a new JobsPlus strand for young people will be available in 2015 under the Youth Guarantee.
The Youth Guarantee Implementation Plan was published in January 2014. The Youth Developmental Internship, First Steps, is an additional measure to provide youth with valuable work. This will offer young jobseekers aged between 18 and 25 the opportunity to gain valuable work experience and training with the help of dedicated assistance from department of Social Protection case officers. The target is to provide up to 1,500 work experience placements of six to nine months duration for young job seekers during 2015. Earlier and more intensive engagement by INTREO with the young unemployed will also be introduced. Models for the engagement of young people through Intreo have been agreed and will form the basis of the national roll-out of the Youth Guarantee in 2015.
There will be a continuing focus on improvement in skills provision through the provision of programmes for a diverse range of individuals including young unemployed people through the Education and Training Boards in the implementation of the Further Education Strategy 2014-2018, the Momentum programmes, the recent launch of the fifth iteration of Springboard, offering short higher education courses for jobseekers with previous work experience, employment incentive schemes such as JobsPlus and doubling of high-end skills as part of the second ICT Skills Action Plan. The launch of the call for new apprenticeships should provide further opportunities for young people to find rewarding careers for the future.
In the areas of entrepreneurship, the launch of the Local Enterprise Offices provides a first-stop-shop for young entrepreneurs with an idea or interested in starting a business and we will build on the success of “Ireland’s Best Young Entrepreneur” competition which was launched in 2014.
