Written Answers Nos. 115-127
115. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his Department continues to monitor the cost-base in the manufacturing and services sectors, with particular reference to the need to remain competitive vis-à-vis European and non-European competitors; if particular costs have been identified as being a disincentive in this regard; and if he will make a statement on the matter. [29282/15]
View answerIreland’s competitiveness position must remain a key economic priority for Government and as set out in the Action Plan for Jobs, a range of initiatives are in train across Government Departments to support competitiveness. The National Competitiveness Council and my Department and its agencies are continually engaged with relevant stakeholders on the particular policy needs required to support cost competitiveness. The stakeholders include other Government Departments, regulatory bodies and public and private bodies. We continue to monitor Ireland's cost competitiveness on a regular basis. This is specifically required under the Action Plan for Jobs 2015. Action 247 requires the National Competitiveness Council to “Benchmark key business costs and publish a report highlighting areas where Irish enterprise costs are out of line with key competitors”.
The National Competitiveness Council’s Costs of Doing Business in Ireland 2015 report shows that Ireland’s cost base has improved across a range of metrics over the last five years, and driven by reforms set out in the Action Plan for Jobs, Ireland’s competitiveness position has improved in recent years.
As noted in the Government’s Spring Economic Statement, this improvement in competitiveness has facilitated a reallocation of resources towards the tradeable sectors of the economy. Job creation has been the stand-out impact of this improvement. However, as the Council report makes clear, Ireland remains a high cost location for a range of key business inputs and there is a significant risk that recent competitiveness gains may be eroded.
The Costs of Doing Business in Ireland report published in April 2015 benchmarks key business costs across over 50 indicators and focuses on areas where Irish enterprise costs are out of line with key competitors, and on costs that are largely domestically determined.
The 2015 report concentrates on the costs that are largely domestically determined such as labour, property, energy, water, waste, communications and business services. The report finds that while relative cost competitiveness is improving (i.e. although costs are increasing, they are increasing at a slower rate than in many of our competitors), this improvement is largely being driven by external factors beyond the control of domestic policymakers. In particular, a weak euro exchange rate, low ECB interest rates, and low international fuel prices have all combined to improve Irish cost competitiveness.
The NCC report concludes that Ireland’s industrial cost base has improved but pressure points are emerging in labour, property and business service costs. We must therefore focus intensely on reducing costs that are out of line with those in competitor countries. There is a role for both the public and private sectors alike to proactively manage their cost base and drive efficiency, thus creating a virtuous circle between the costs of living, wage expectations and cost competitiveness.
116. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he continues 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. [29283/15]
View answerSmall and medium enterprises (SMEs) across all sectors of the economy are central to Government’s objective of creating sustainable full employment and to ensuring that all our people have the opportunity to engage in rewarding and well paid employment. The role of SMEs in job creation can hardly be overstated, as we know from research by the Central Bank that two-thirds of new jobs are created by firms in the their first five years. It is in this context that we have placed a key focus on promoting entrepreneurship and scaling of businesses in manufacturing and services sectors at the heart of the Action Plan for Jobs.
This focus on entrepreneurship and SMEs in Action Plan for Jobs is having a positive impact. As of Q1 2015, there were an additional 104,00 at work in the economy since the launch of the first Action Plan for Jobs in 2012, which achieved and exceeded the Government’s target of 100,000 extra at work by 2016. The services sector made the largest contribution to the achievement of the Government’s target of 100,000 more at work. Following a number of years of decline in employment from 2007, the manufacturing sector has also recorded increases in job numbers since 2011.
To achieve our ambition of sustainable full employment, jobs growth in export oriented manufacturing and services SMEs will be essential over the next twelve months and beyond. The 2015 Action Plan for Jobs sets out a comprehensive range of measures to support entrepreneurship, SMEs and the self-employed in the areas of education and research, business environment and supports, innovation and access to finance, networks and mentoring; and, access to markets. Increasing entrepreneurial activity is a Disruptive Reform in the Action Plan for Jobs for 2015. Our key priority is driving implementation of the actions in the National Entrepreneurship Statement, which was published in October last year and to achieve the ambitions targets set out for a 25% increase in the number of start-ups and in the scaling and sustainability of new enterprises.
The launch of the Local Enterprise Offices (LEOs) was a major reform delivered in 2014 and the clients of the LEOs increased employment by 4,012 last year to 31,326 jobs throughout the country. In 2015 the LEOs will have ambitious and robust county strategies and targets for start-ups, enterprise engagements and supports to be effective first-stop-shops for enterprise information and supports and launch an Entrepreneur Partnering Programme.
My Department through its agencies will build on the 2014 success of the awards programmes such as Ireland’s Best Young Entrepreneur with a renewed programme for 2015.
Enterprise Ireland works to increase the number of companies starting-up, succeeding, expanding, exporting and ultimately creating jobs in Ireland. EI’s support system for young companies includes help with business planning, mentoring and development advice, feasibility funding and finance, often in the form of equity investment, as appropriate to the founder’s ambitions and the company’s potential and stage of growth. Enterprise Ireland has set itself an ambitious target of 550 new and early start-ups supported by 2016. Enterprise Ireland also continues to support the development of the Seed and Venture Capital and Business Angel sectors to increase the provision of early stage funding to support entrepreneurs and early stage companies.
The launch of the simplified Startup Refunds for Entrepreneurs Scheme (SURE) in 2015 will provide additional finance for entrepreneurs. In many cases the lack of a first reference sale is a key barrier to accessing funding at an early stage. Early intervention through entrepreneur development programmes such as New Frontiers and others workshops and accelerator programmes helps companies accelerate their business development and to build up the skills and contacts needed to successfully start and grow. EI will support 130 new Entrepreneurs via the New Frontiers programme in 2015.
A range of agricultural related measures are being implemented including steps to maximise available agricultural land with measures to encourage long term leasing. We are also continuing to supporting the tourism sector with retention of 9% VAT rate
117. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he expects European Union assistance by way of innovation and technology to directly benefit the indigenous business sector over the next five years; the likely effect on the economy as a result; and if he will make a statement on the matter. [29284/15]
View answer124. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the degree to which he expects science and technology to play a role in job creation; and if he will make a statement on the matter. [29292/15]
View answer125. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if he is satisfied at the extent to which science and innovation continues to play a part in evolution of our industrial base, in the manufacturing and service sectors; the degree to which these sectors have attracted European Union support, by way of grant-aid, or otherwise; and if he will make a statement on the matter. [29293/15]
View answerI propose to take Questions Nos. 117, 124 and 125 together.
The importance of science, technology and innovation (STI) to Ireland is recognised by the Government as being crucial to growth in our indigenous and FDI sectors and plays a key role in job creation. Investment in 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. Statistics show that RDI performers are gaining an increasing share of sales, export sales and are accounting for increasing shares of employment.
My Department and its agencies are focused on the development and support of internationally trading manufacturing and services firms in Ireland, and have a clear and steady focus on the potential and opportunities that exist and can be created by prioritising innovation and technology as a key driver of success. Enterprise Ireland, IDA Ireland and Science Foundation Ireland provide a spectrum of innovation and science/technology development programmes that deliver financial, technical and experiential support to help companies become more innovative, encourage and support competitiveness, and help them grow their sales and exports in order to create a climate in which sustainable employment will grow and expand.
Evidence, from both the EU and internationally, shows that the Government’s strategy of accelerating the economic and societal return on our STI investment is paying off. Globally, Ireland is ranked:
- 1st in the world for the availability of skilled labour [Source: IMD World Competitiveness Yearbook]
- 11th in the Global Innovation Index 2014 out of 143 countries [Source: Cornell University, INSEAD and WIPO 2014]
- 13th in the world for university-industry collaboration on R&D [Source: Global Competitiveness Report 2013-2014]
- Ireland’s global ranking in terms of citations was 16th in 2014 – up 4 places from 2013 [Essential Science Indicators Thomson Reuters]
In addition, Ireland has improved its position for 2 years in a row in the European Commission Innovation Union Scoreboard according to the 2015 edition. We are now ranked 8th amongst the 28 EU Member States moving from 9th place in 2014 and 10th place in 2013. It is particularly encouraging to see that Ireland is the overall leader in two specific dimensions: Innovators – which measures how innovative firms are; and Economic Effects - which captures economic success stemming from innovation in terms of employment, revenue and exports.
With a budget of just under €80 billion and covering the period 2014 to 2020, Horizon 2020 is the EU’s new programme providing access to European funding to researchers, research organisations and industry to engage in leading edge research, thus facilitating European economic recovery. Horizon 2020 is a core part of Europe 2020, the Innovation Union and the European Research Area and is responding to the economic crisis by investing in future jobs and growth, addressing people’s concerns about their livelihoods, safety and environment and strengthening the EU’s global position in research, innovation and technology.
Ireland performed to a very high standard in the preceding programme, the Seventh Framework Programme for Research, Technological Development and Innovation 2007-2013 (FP7) with almost €600 million in funding to participants in Ireland having been allocated from call results to date, thereby achieving the national target set for Irish participation in this programme. It is important to remember that this funding is provided on a competitive basis, with excellence being the key award criterion.
In December 2013, the Government approved a national strategy for participation in Horizon 2020 together with an ambitious target of €1.25 billion in funding to Ireland over the lifetime of Horizon 2020. The strategy sets out a comprehensive range of actions designed to maximise Ireland’s participation in the programme and achieve the target, involving all of the key Departments, agencies and research performers. A Horizon 2020 High Level Group, under the chairmanship of the Department of Jobs, Enterprise and Innovation, has been established to oversee the implementation of the national strategy. This includes identifying key areas of opportunity where Irish researchers, agencies and companies can maximise their participation in the programme. During the first nine months of Horizon 2020, Ireland has been awarded €97 million – our target for the full year is €100m.
A national support network of National Contact Points coordinated by Enterprise Ireland has been established, comprising knowledgeable and experienced practitioners from relevant Departments and agencies, charged with helping companies and academics access the funding opportunities presented by Horizon 2020.
I am confident that, building on our successful performance in FP7 and supported by our national strategy and a strong national support network, Irish companies and multinational corporations based in Ireland will continue to have excellent support to compete for Horizon 2020 funding.
118. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which the industrial cost-base here compares favourably with other European Union and non-European Union countries; and if he will make a statement on the matter. [29286/15]
View answerIreland’s improving competitiveness performance since 2011 has been central to securing the recovery in economic growth and employment. Improved competitiveness has made Irish firms more cost competitive internationally and made Ireland a more attractive location for firms to base their operations in.
Addressing Ireland’s international competitiveness therefore remains a key economic priority for Government. Since 2012, the Government’s Action Plan for Jobs has set out a comprehensive set of measures to improve our competitiveness performance. The themes in this year’s Plan build on the reforms of previous years in the areas of competitiveness and sets out a range of actions to facilitate improved competitiveness.
We continue to monitor Ireland's cost competitiveness on a regular basis. This is specifically required under the Action Plan for Jobs 2015. Action 247 requires the National Competitiveness Council (NCC) to “Benchmark key business costs and publish a report highlighting areas where Irish enterprise costs are out of line with key competitors”. The NCC’s Costs of Doing Business in Ireland report published in April 2015 benchmarks key business costs across over 50 indicators and focuses on areas where Irish enterprise costs are out of line with key competitors, and on costs that are largely domestically determined.
The 2015 report concentrates on the costs that are largely domestically determined such as labour, property, energy, water, waste, communications and business services. The report finds that while relative cost competitiveness is improving (i.e. although costs are increasing, they are increasing at a slower rate than in many of our competitors), this improvement is largely being driven by external factors beyond the control of domestic policymakers. In particular, a weak euro exchange rate, low ECB interest rates, and low international fuel prices have all combined to improve Irish cost competitiveness.
The NCC report concludes that Ireland’s industrial cost base has improved but pressure points are emerging in labour, property and business service costs. We must therefore focus intensely on reducing costs that are out of line with those in competitor countries. There is a role for both the public and private sectors alike to proactively manage their cost base and drive efficiency, thus creating a virtuous circle between the costs of living, wage expectations and cost competitiveness. Measures that ensure open and competitive markets are essential. Improving productivity performance is also key.
Government will continue to progress actions that improve Ireland’s competitiveness position. The policy implications of the Costs of Doing Business and associated structural reforms required to address Ireland’s cost base, will also be included in the NCC’s annual Competitiveness Challenge report which will be published later this year.
120. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he expects job creation over the next three years to focus on youth unemployment; and if he will make a statement on the matter. [29288/15]
View answerThe aim of the Action Plan for Jobs is to support enterprise growth and job creation for all age cohorts. While we have made great progress in addressing our unemployment and competitiveness challenges and in building a new, sustainable enterprise economy driven by skills, innovation and success in markets, we need to sustain the momentum and stretch ourselves further if we are to achieve sustainable full employment by 2018 and ensure that all parts of our regions benefit from the recovery.
Over 104,000 more people are at work since the launch of the first Action Plan for Jobs in 2012. The CSO data for June 2015 indicate that the number of persons aged under-25 on the Live Register has fallen by 22,300 over the two years since June 2013. This is equivalent to a decrease of 38 per cent over the last two years, which compares favourably with the overall rate of decline in the numbers unemployed on a Live Register basis of 28 per cent over the period. As a result, the proportion of the unemployed that are under-25 years of age has declined from 20.2 per cent in June 2013 to 17.6 per cent of the unemployed in June 2015. The overall rate of unemployment has declined from a peak of 15.1 per cent at the start of 2012 to 9.7 per cent in June 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.
My Department and agencies are working with other Departments and supporting the work of the Expert Group on Future Skills Needs (EGFSN) and the new Apprenticeship Council in advising on future enterprise skills needs and ensuring that education and training provision is providing our young people with the skills required to take up available employment opportunities. In particular we are focusing on the education and training provision in the areas where we see 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.
121. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which the lack of working capital continues to be identified by indigenous small enterprises in the manufacturing and services sectors as an obstacle to expansion, and his plans to address this issue. [29289/15]
View answerGovernment policy since coming to office in 20111 has focused on supporting SMEs in accessing appropriate finance for both working capital and investment. The Action plan for Jobs process has specifically targeted access to finance issues as being central to the welfare of business. Under this process the SME State Bodies Group, chaired by the Department of Finance, was established and works to deliver on this agenda for all SMEs. A number of key policy initiatives have been developed which are contributing to the evolution of a more robust and effective platform for the financing of SMEs. These include:
- The establishment of the Strategic Banking Corporation of Ireland (SBCI) providing up to €800 million of funds;
- The development of an innovative SME State Support On-line tool to provide an individual with a list of the possible government business supports available to their particular business;
- Government agreement to amend the Credit Guarantee Act 2012 and introduce a new more flexible Credit Guarantee Scheme;
- The review of Microfinance Fund Ireland (MFI).
A recent credit demand survey conducted by Red C for the Department of Finance has found that improved trading conditions mean that far fewer companies are seeking credit in order to survive day to day financial pressures. Only just under half (48%) of those SMEs seeking finance between October 2014 and March 2015 did so for working capital needs, compared to 61% in the previous period. Improved turnover and profit have led to SMEs suggesting they fund working capital through internal funding/retained earnings (64%).
This Survey also shows banks are currently more likely to approve funding for working capital (69%) than for growth (61%). Decline rates for growth stand at 18%, with the decline rate for working capital at just 13%. Of course any SME who has been refused bank credit or has issues with the terms and conditions offered can appeal these decisions to the Government’s Credit Review Office.
As the economy moves into a new phase of growth there is an opportunity to further develop a policy agenda that addresses some of the structural constraints in the financing of the SME sector such as the need for improved payment practices in Ireland.
One initiative to improve payment performance in Ireland is the Government requirement that all central Government Departments pay their suppliers within 15 calendar days of receipt of a valid invoice. The recent launch of the Prompt Payment Code (PPC) portal is another important step in addressing the culture of late payments in Ireland. These initiatives, together with the late payment legislation, demonstrate the Government’s continuing drive and commitment to encourage a prompt payment culture in Ireland.
Building on the progress to date and further supporting the financing of growth within the SME sector will require a clear focus on how best to maximise the benefits to SMEs of the evolving financial landscape in Ireland. Our continued focus is on the adoption and delivery of actions that contribute to developing a more diversified and competitive financial system, capable of financing the growth potential of Irish SMEs
As a Government we will continue to maintain our focus on assisting SMEs to establish, scale and export in order to ensure that they continue to drive our economic recovery and create further jobs.
123. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if he expects the recently announced reduction in corporation profits tax in the United Kingdom to impact of foreign direct investment here; and if he will make a statement on the matter. [29291/15]
View answerIreland continues to perform well in the attraction of new investment and particularly so in recent years as FDI inflows to Europe have slowed considerably. Nevertheless, competition for FDI has intensified over recent years and we need to be continuously alert to differentiating Ireland’s offering to attract investment. 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. I recently launched IDA Ireland's new corporate strategy for the years 2015 to 2020 which aims to create 80,000 new jobs in the economy over the next five years.
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.
All FDI is hard won. The range of countries competing for FDI in Europe demonstrates the intensity of the marketplace to secure investments for Ireland. In Ireland's case, it is a range of factors that play a role in influencing location investment decisions. In addition to the strong economic management and certainty on the 12.5% corporate tax rate, these factors include: our relative cost competitiveness; the availability of a dynamic talent pool and our continuing investment in our education and training systems; our focus on building comparative advantage in a range of sectors; and our investments in strengthening our national innovation system.
While no formal assessment has been carried out in relation to the possible impact of a cut in the UK corporation tax rate on Foreign Direct Investment into Ireland, it is well known that Ireland is a supporter of fair tax competition and the OECD has consistently stated that low corporation tax rates combined with a broad base is the best way to encourage economic growth while still maintaining tax revenues.
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 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.
IDA Ireland constantly monitor 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.
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 in relation to our skills and talent base, our productivity levels and our levels of innovation and the excellence of our science and research base.
126. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the number of jobs created in the past four years at manufacturing and service levels; and if he will make a statement on the matter. [29294/15]
View answerThe Action Plan for Jobs is having a positive impact on employment in the economy, since the first Plan was launched in early 2012. As of Q1 2015, there were an additional 104,00 at work in the economy since the launch of the first Action Plan for Jobs, which achieved and exceeded the Government’s target of 100,000 extra at work by 2016. The services sector made the largest contribution to the achievement of the Government’s target of 100,000 more at work. Following a number of years of decline in employment from 2007, I am pleased to report that the manufacturing sector has also recorded increases in job numbers since 2011.
In relation to agency assisted firms, the net increase in full-time employment in manufacturing and services since the launch of the Action Plan for Jobs to 2014 is 25,665, of which there a was a net increase of 8,051 in manufacturing employment and a net increase of 17,614 in internationally traded services employment. This equates to just under one-third, or 31 per cent, of the net increase in full-time employment in agency assisted firms was in manufacturing and two-thirds of the net increase was in internationally traded services enterprises, since the launch of the Action Plan for Jobs.
Arising from the strategy for the manufacturing sector ‘Making it in Ireland: Manufacturing 2020’, prepared by Forfás and the report of the Expert Group on Future Skills Needs Skills Report on the skills needs for the sector, both of which I launched in 2013, there are now a range of initiatives being progressed by my Department and relevant Agencies to drive the Government’s jobs targets.
To achieve our ambition of sustainable full employment, jobs growth in export oriented manufacturing and services businesses will be essential over the coming years. Manufacturing was a Disruptive Reform in the Action Plan for Jobs 2014 and is a key focus in the 2015 Action Plan for Jobs and also in the Action Plans for Jobs-Regional, with a range of measures designed to support industry growth including encouraging entrepreneurship, further improving our skills base, improving access to finance by SMEs and supporting indigenous companies and foreign-owned manufacturing companies to transform their businesses as part of a National Step Change Initiative. The Manufacturing Development Forum is helping to address the key issues arising from the Strategy recommendations. My Department is also preparing a guide for manufacturing firms to state support available. These initiatives are important to growing and sustaining the competitiveness of existing enterprises, to sustaining employment and to attracting new investment.
127. Deputy Jerry Buttimer asked the Minister for Jobs, Enterprise and Innovation the measures his Department has implemented to encourage entrepreneurial activity; the efforts in the past year; and if he will make a statement on the matter. [29304/15]
View answerThe Government’s National Policy Statement on Entrepreneurship in Ireland was launched in October 2014 and sets out the Government’s strategic objectives as a facilitator within the Irish entrepreneurship ecosystem, covering the six key elements that impact on entrepreneurs and startups, and signposts the direction that policy will take in the coming years. This Policy Statement represents the first time a Government has published a comprehensive national plan for entrepreneurship in Ireland. The key target contained in the plan is to double the jobs impact of start-ups in Ireland over the next five years. The National Policy Statement on Entrepreneurship is the Government’s plan to deliver an ambitious but realistic increase in the numbers of start-ups in Ireland over the next five years. The Government has set out a vision for Ireland to be among the most entrepreneurial nations in the world and to be acknowledged as a world-class environment to start and grow a business. By driving implementation of the actions in the new National Entrepreneurship Policy Statement we will double the jobs impact of start-ups in Ireland over the next five years, from 93,000 currently. I have established and chair an Implementation Group to drive delivery, oversee implementation and monitor progress on the 94 actions set out in the Policy Statement. This Group will also support my Department in seeking to identify and consider further initiatives to support the entrepreneurship agenda in Ireland.
Membership of this group is drawn from the enterprise development agencies, key central government stakeholders such as the Department of Education and Skills and the Department of Finance, and most importantly entrepreneurs themselves. The Action Plan for Jobs 2015 details a number of the immediate key actions to support the Government's ambition and confirms the commitment to continue to identify new approaches that will enhance and strengthen Ireland's entrepreneurial ecosystem and ultimately create jobs. Key actions are set out to expand reform measures to boost entrepreneurship across all areas of the economy and society.A number of the key objectives to support entrepreneurship delivered in 2015 include:
- Launch of the Regional Action Plans for Jobs;
- Ireland’s Best Young Entrepreneur 2015 competition launched;
- Launch of the Startup Refunds for Entrepreneurs (SURE) scheme;
- Continue to promote LEOs as one stop shops for small business; and
- Develop an action programme of support for pre-investment HPSUs.
All actions related to entrepreneurship within the Action Plan for Jobs 2015 have been delivered on schedule under the quarter one update. The quarter two update has not been finalised yet, but there are no indications to suggest that any related actions are delayed. Considerable work has been undertaken in recent years to support entrepreneurs and startups and the actions identified in the National Entrepreneurship Policy Statement will strengthen existing supports.
No one policy intervention will generate substantial impact on the entrepreneurship ecosystem, but various actions if taken together will combine to create greater synergies. The overarching National Entrepreneurship Statement serves to co-ordinate all areas of Government policy in the area of entrepreneurship to drive these synergies and will deliver on the targets I referred to above.
