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Job Creation

Dáil Éireann Debate, Thursday - 26 March 2015

Thursday, 26 March 2015

Questions (3)

Thomas Pringle

Question:

3. Deputy Thomas Pringle asked the Minister for Jobs, Enterprise and Innovation his response to the Nevin Economic Research Institute's recent report that 94% of the 29,000 new jobs created in 2014 were in the eastern part of the country, while full-time equivalent jobs declined in the Border counties; his plans to counteract the decline of jobs growth in counties such as Donegal before it becomes an established pattern in economic development across the country; and if he will make a statement on the matter. [12187/15]

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Oral answers (13 contributions)

This question arises from the recent report by the Nevin Economic Research Institute on the regional imbalance in job creation, which highlighted, in particular, that more than 90% of new jobs in 2014 were created in the Dublin and mid-east regions. What is the Minister's policy to address that imbalance?

Based on the figures published by the CSO, and given any fair and reasonable review of the data, the Nevin institute’s presentation of regional employment data in its recent spring report was, at best, highly misleading. In the three years since the Action Plan for Jobs was launched every region has experienced job growth. Over that period more than 50% of the 90,000 jobs created were outside Dublin and the mid-east areas. Indeed the fastest rate of job growth in that period has been in the south east and the midlands.

With regard to the Border region, the number of people at work has increased by 14,300. The equivalent figures are 8,000 in the midlands and 22,700 in the south east.

The same is true of the agency assisted enterprises where 51% of gross employment creation during the period 2011-2014 was outside Dublin and the mid-east. Among agency supported companies there were some strong regional performances. Enterprise Ireland, EI, companies grew net employment in the south west by 27% and in the midlands by 16%, while IDA companies grew net employment by 28% in the west and 21% in the Border region.

However, the Government recognises that some regions are growing faster than others. That is why we are putting in place regional action plans for jobs to accelerate employment in every region. The purpose of these plans is to facilitate each region to achieve its economic potential, building on its existing strengths and opportunities.

The regional action plans will be developed through consultation with key stakeholders in each region. A stakeholder forum to help inform actions for inclusion in the action plan for the Border region will take place later today in Sligo. A further stakeholder forum will take place in Carrickmacross on 13 April.

It is my intention to publish six regional action plans for jobs, including one for the Border region, by July, with a further two in development at that stage.

The Minister's officials in response to the Nevin institute report said 70% of net job creation was in the Dublin and mid-east regions. Statistics have been tweaked to make them look good but job creation in these two regions far exceeds every other region. The figure for the Border region is skewed by the fact that County Louth is included in it. The situation is much worse than it appears in counties Donegal, Sligo and Leitrim and this has to be addressed. I await to see whether the Action Plan for Jobs will address this imbalance. It is vitally important for the north west and for the overall development of the country that this be dealt with. The east region cannot continue to sustain the migration rate into it, which is happening because there are no jobs in the rest of the country. The Department accepts that 70% of net job creation was in the Dublin and mid-east regions rather than 90%. The Minister has to address that.

That is not true. The CSO provides the figures. The highest rate of growth in job creation was in the south east at 12.8%. That was followed by the midlands at 8.5%. Dublin was third and the rate was 6.5% in the Border region and so on. Some regions are not growing as fast as we would like and we need to build on that. Growth is occurring across all regions but we have to start with true figures. The figures I quoted related to the number of jobs created by our agencies together. Some areas find it difficult to win IDA employment and one of the actions we are delivering in the regional action plans is investment in advance facilities. For example, we are building in Letterkenny and we are now committing to build in Sligo. We have identified that for some regions additional magnets are needed to draw overseas investment but it is also important to remember that well in excess of 90% of employment is in Irish owned companies. The strong performance in employment growth in many of our counties relates to EI companies. The highest growth rate is in the south west at 27%. There has been a strong performance among Irish owned companies in a number of counties, including Sligo.

We have to have a balance and we have to look at the figures and the opportunities honestly while working together to drive those opportunities.

The Minister is saying his Department was wrong in its response to the Nevin institute report by saying there was a 70% net increase in job creation in the Dublin and mid-east regions. We have three sets of figures for regional job creation.

I can deal with that but we do not have the time.

I will let the Minister back in.

When will we see the true figures and what they truly reflect? The emigration rate is still high in the north west and job creation is not happening. That regional imbalance has to be addressed. Unfortunately, there is nothing in these figures or in what the Minister said that will address that.

If the Deputy chooses to be blind, he can be blind. He knows that IDA employment in his own county has increased by 40% over the past four years.

From a low base.

That is an extraordinary performance by any standard but we want more. We are investing in advance facilities in Letterkenny and Sligo. One can distort statistics, which is the oldest trick in the book.

The Government parties are good at it themselves.

Job creation is growing in some regions and falling in others. The figures I outlined are for a four year period. The Nevin institute chose one year and chose to ignore the fact that growth was falling in some regions. One could have presented the same figures by saying 75% of job growth in 2014 was in the south east, midlands and mid east. That would have given a different picture. We need to look at each region. The growth rate fell in a number of regions last year and that had an impact on the average rate. We have to look at each region and seek to build its strengths. That is what we are doing and I hope the Deputy will be in Sligo later. He can engage and come up with ideas that he believes will drive change in his region. We want to tap into the people who can make things happen in the region and to provide money for which companies can bid to ensure the best ideas come to fruition. That is the best way to drive opportunities. It is not about quibbling about numbers. There is good performance and not so good performance but we need to increase the growth rate in all regions.

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