Finian McGrath
Question:80. Deputy Finian McGrath asked the Minister for Jobs, Enterprise and Innovation to support a matter (details supplied) regarding grants; and if he will make a statement on the matter. [2492/16]
View answerLocal Enterprise Offices
Questions (80)
Written answers
The Local Enterprise Offices (LEOs) are now the ‘first-stop-shop’ State support service for micro and small businesses in each local area. The LEOs provide advice and direction, covering all government supports and requirements, to anyone who wishes to start or expand a business. They can also provide funding for projects that meet certain criteria, in certain circumstances, and other non-financial supports. For example, with regard to the financial supports available, it should be noted that the LEOs generally grant assist enterprises in the manufacturing or internationally traded services sector which over time can develop into strong export entities. However, there are other non-financial supports available, such as mentoring and training, and the LEO staff can advise as to which supports would be most appropriate.
In addition, any business can use the LEOs to access finance from Micro Finance Ireland (MFI), which offers loans of up to €25,000 to start-up, newly established or growing microenterprises (employing less than 10 people) with viable business propositions that do not meet the conventional risk criteria applied by the banks. Applications for the Microfinance Fund should be channelled through the local LEO. Further information is available on the LEO website at www.localenterprise.ie.
Businesses can also access the ‘Supporting SMEs’ online search tool that was launched last year. By answering eight questions, a small business will be able to:
- Find out which of the over 80 Government business supports from 27 different Government Departments, Agencies and Initiatives are available to them;
- obtain information on the range of Government supports for accessing credit;
- identify their nearest Local Enterprise Office where they can discuss the outcomes of the guide further;
- download all these filtered results into a document for their further use.
The ‘Supporting SMEs’ Online Tool is available at: www.actionplanforjobs.ie.
Job Creation Targets
Questions (81)
Bernard Durkan
Question:81. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he expects further job creation in the course of the next five years; and if he will make a statement on the matter. [2518/16]
View answerWritten answers
Earlier this week we launched the fifth Action Plan for Jobs. A key objective of the Action Plan for Jobs process has been to rebuild our economy based on enterprise and entrepreneurship, talent, innovation and exports and provide a solid foundation for future growth. Irish industry has to been to the forefront of the economic recovery, with our enterprises and entrepreneurs innovating, developing and improving their products and services to meet the needs of customers in markets across the globe. The 2016 Plan is the first in a new phase of the Action Plan for Jobs process, after the original target of 100,000 extra jobs by 2016 was achieved last year, 21 months ahead of schedule. Since the first Action Plan for Jobs was launched in Q1 2012, 135,800 more people are at work. The unemployment rate has fallen below nine per cent for the first time since 2008, down from a high of 15.1 per cent in early 2012 to 8.8 per cent in December 2015.
Enterprise 2025 is our 10 year jobs and enterprise strategy, which sets out the roadmap to build a sustainable economy and have 2.18 million people at work by 2020, which means 200,000 net additional jobs by 2020; this would mean more people at work than at any time in the history of the State.
The 2016 Action Plan marks the transition to the implementation of key Government policies that plan for medium term growth. Our target is to support the creation of an additional 50,000 new jobs in 2016, which would bring the number of people at work to over two million by the end of 2016.
The 2016 Action Plan for Jobs outlines 304 actions which will be implemented this year by 16 Departments and over 60 agencies, continuing the cross-Government approach to the top priority area of job creation. As in previous years the Plan contains five Disruptive Reforms-ambitious cross-Government initiatives that will have a significant measurable impact on job-creation:
- Step Up in Enterprise Skills Supply including the roll out of apprenticeships, establishing the Regional Skills Fora and launching the ICT portal;
- Stimulating Regional Growth: This will see the implementation of the Regional Action Plans for Jobs, supported by €530 million in funding;
- All Government transactions with business will be available online by 2017, a move which will affect 370 Government transactions with 185,000 businesses across the country;
- National Clustering Initiative to deliver key enterprise policy goals including driving entrepreneurship, entering new markets, achieving a step change in enterprise productivity, and gaining access to new global supply chains; and
- Driving Intellectual Property in Enterprise - we will double the intellectual property outputs from business.
We will also progress a suite of actions to deliver the skills needs of our growing economy; drive export-led growth; increase innovation; maintain and improve our competitiveness; increase entrepreneurial activity; ensure appropriate access to finance; stimulate the domestic economy; and increase labour market participation.
A strong economy with full employment that supports vibrant public services for our people is within our grasp if we make the right choices. The primary objective of the actions to be delivered in 2016 is to secure the gains already made and deliver on our target to have 200,000 net additional jobs by 2020, but, crucially, sustaining it for a generation.
Foreign Direct Investment
Questions (82, 86)
Bernard Durkan
Question:82. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he monitors the degree to which this country can remain an attractive location for investment in the manufacturing and service sectors; and if he will make a statement on the matter. [2519/16]
View answerBernard Durkan
Question:86. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent of competition for foreign direct investment from other European Union and non-European Union countries; and if he will make a statement on the matter. [2523/16]
View answerWritten answers
I propose to take Questions Nos. 82 and 86 together.
There are many factors that make Ireland competitive and attractive for Foreign Direct Investment and contribute to a decision of a multinational company to locate here. These include the high-quality of education and skills development, our innovation ecosystem, the ease of doing business here and our openness to trade, along with our overall competitiveness in terms of costs and taxation.
All these factors helped IDA Ireland achieve record results in 2015, with its client companies creating 18,983 new jobs across a range of sectors. Every region of Ireland posted net employment gains and 213 new investments in Ireland were made during the course of the year, of which 94 came from new names. Many large multinationals also publicly announced investment plans in Ireland, including Apple, Alexion Pharmaceuticals, Pramerica, Northern Trust, Facebook, Vodafone, SAS, Google, ABEC Inc, and Zalando.
Notwithstanding these record numbers, global competition for FDI - whether from EU or non-EU countries - remains intense. That is why the agency is constantly monitoring competitor locations and the value propositions they offer to potential mobile investment.
More broadly, our work in continuing to attract international investment in Ireland will be guided by both my Department’s Policy Statement on Foreign Direct Investment and IDA Ireland’s own five-year strategy “Winning - Foreign Direct Investment 2015-2019”. The IDA Strategy details both how the Agency will broaden its target sectors further and seek new markets over the next five years. Its ambitious targets include boosting FDI in Ireland by over 40% and creating 80,000 new jobs in the economy. As part of its growth strategy, IDA has also committed to increasing the level of investment into each region of Ireland by between 30% and 40%.
Job Creation Targets
Questions (83)
Bernard Durkan
Question:83. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation his job creation targets over the next five years; and if he will make a statement on the matter. [2520/16]
View answerWritten answers
Enterprise 2025 is our 10 year jobs and enterprise strategy, which sets out the roadmap to build a sustainable economy and have 2.18 million people at work by 2020, which means 200,000 net additional jobs by 2020; this would mean more people at work than at any time in the history of the State. Earlier this week we launched the fifth Action Plan for Jobs. A key objective of the Action Plan for Jobs process has been to rebuild our economy based on enterprise and entrepreneurship, talent, innovation and exports and provide a solid foundation for future growth. Irish industry has to been to the forefront of the economic recovery, with our enterprises and entrepreneurs innovating, developing and improving their products and services to meet the needs of customers in markets across the globe.
The 2016 Plan is the first in a new phase of the Action Plan for Jobs process, after the original target of 100,000 extra jobs by 2016 was achieved last year, 21 months ahead of schedule. Since the first Action Plan for Jobs was launched in Q1 2012, 135,800 more people are at work. The unemployment rate has fallen below nine per cent for the first time since 2008, down from a high of 15.1 per cent in early 2012 to 8.8 per cent in December 2015.
The 2016 Action Plan marks the transition to the implementation of key Government policies that plan for medium term growth. Our target is to support the creation of an additional 50,000 new jobs in 2016, which would bring the number of people at work to over two million by the end of 2016. The 2016 Action Plan for Jobs outlines 304 actions which will be implemented this year by 16 Departments and over 60 agencies, continuing the cross-Government approach to the top priority area of job creation.
As in previous years the Plan contains five Disruptive Reforms – these include making all Government transactions with business available online from next year, doubling the intellectual property outputs from Irish firms and additional measures to support regional growth, supported by €530 million in funding. We will also progress a suite of actions to deliver the skills needs of our growing economy; drive export-led growth; increase innovation; maintain and improve our competitiveness; increase entrepreneurial activity; ensure appropriate access to finance; and stimulate the domestic economy.
The Action Plan for Jobs complements the Government’s Pathways to Work which sets out actions to be taken in support of those that are currently unemployed to help them access the labour market and new job opportunities. Last week, the Tánaiste, and Minister for Social Protection, published the new Pathways to Work Strategy for the period to 2020. Our Departments will continue to build on the progress to date through the Action Plan for Jobs and Pathways to Work to ensure that more employment opportunities are available to those who are seeking work.
A strong economy with full employment that supports vibrant public services for our people is within our grasp if we make the right choices. The primary objective of the actions to be delivered in 2016 is to secure the gains already made and deliver on our target to have 200,000 net additional jobs by 2020, but, crucially, sustaining it for a generation.
Research and Development Supports
Questions (84)
Bernard Durkan
Question:84. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which Irish industry will benefit from innovation and technology supports in the future; and if he will make a statement on the matter. [2521/16]
View answerWritten answers
High-quality, innovative and internationally competitive Irish companies are fundamental to Ireland’s future prosperity. This requires us to have sharp and adaptable businesses in a wide variety of sectors which are in a position to win export sales, thus creating jobs in Ireland. In order to ensure that all sectors of the economy continue to compete effectively in European and global markets, continued supports must be made available to overcome market failures associated with companies undertaking R&D. Enterprise Ireland is committed to improving the innovative capability of Irish industry in order to help companies differentiate themselves in global markets in order to win sales and increase employment in Ireland. Enterprise Ireland will continue to support science, technology and innovation in Irish companies in three main ways: firstly by promoting market-led innovation and R&D in manufacturing and services companies, secondly by supporting effective and flexible collaborations between companies and higher level researchers, and thirdly by capitalising on the research investment made by the HEA and SFI by taking commercially useful technology on to the market. Under each of these pillars Enterprise Ireland operates a suite of flexible supports aimed at helping companies and higher level researchers to work together and to innovate in commercially beneficial ways.
Every year, hundreds of companies benefit from Enterprise Ireland Innovation supports. These range from €5,000 Innovation Vouchers to help small companies source innovative solutions from higher level research groups, to larger Innovation Partnerships, to in-company R&D funding. Enterprise Ireland facilitates many companies to work closely with higher education institutions in order to collaborate on high value R&D projects.
Over 400 companies per annum will engage in multiparty collaborative research initiatives like Technology Centres where groups of companies come together to define a commercially advantageous research agenda which higher education institutions deliver on. Over 350 companies will be supported per annum via specialised incubation facilities on third level campuses.
In addition, over 130 companies a year will receive commercially valuable technologies from higher level research institutions; these deals are in many cases based on Enterprise Ireland commercialisation funding and facilitated by Enterprise Ireland funded Technology Transfer Offices in Universities and Knowledge Transfer Ireland (KTI). On top of these direct supports, Enterprise Ireland clients will continue to benefit from ongoing and consistent technical, commercial and innovation soft support from Enterprise Ireland’s network of Development Advisers and Technologists.
‘Innovation 2020: Excellence Talent Impact’, launched in December 2015, is Ireland’s five-year strategy for research and development, science and technology. The strategy builds on the significant successes delivered by the Government’s science strategy over the past decade, which has seen Ireland dramatically improve its performance globally in this area. Through ‘Innovation 2020’, our vision for Ireland is to become a Global Innovation Leader driving a strong sustainable economy. In it, we set out the roadmap to deliver on this vision, focusing on excellence, talent and impact in innovation and research. Our goals, as articulated in the new strategy, include having an internationally competitive research system which acts as a magnet and catalyst for talent and industry and also having a strong innovative enterprise base, growing employment, sales and exports.
The Action Plan for Jobs 2016 highlights that measures to promote innovation are an important component of Ireland’s research, development and innovation (RDI) systems. Innovation support makes a critical contribution to enterprise policy, and to the goal of developing a competitive national economy, through the stimulus given by innovation to high value economic activities and jobs. By encouraging the development of new economic activities, RDI policy measures strengthen Ireland’s competitive advantage and build potential new areas of economic activity. The impacts of innovation and research include increased competitiveness, maintaining high-value jobs and attracting foreign direct investment, developing our human capital and ensuring a culture of evidence-based policy, processes and practices in the public and private sectors.
Employment in companies supported by Enterprise Ireland increased by a net 10,169 jobs in 2015, with 64% of new jobs created outside of Dublin. This represents a high level of job growth and is a positive indication of a productive indigenous enterprise sector where investment in science, technology and innovation continues to play a key role. Similarly, IDA Ireland saw significant employment growth once again in 2015, with 11,833 net new jobs and the number of investments secured rising to 213 from 197 in 2014.
Industrial Development
Questions (85)
Bernard Durkan
Question:85. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he is satisfied with the competitiveness of the industrial cost base; and if he will make a statement on the matter. [2522/16]
View answerWritten answers
Ireland’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 in which firms can locate and expand their operations. The Government’s Action Plan for Jobs, which is co-ordinated and developed by my Department since 2012, has set out a comprehensive set of measures to improve our competitiveness performance. Substantial progress has been made in terms of improving Ireland's competitiveness in recent years. As a result of our concerted efforts to improve competitiveness, Ireland’s relative international competitiveness as measured by a range of international indices has improved since 2012. Ireland moved from 24th to 16th in the IMD’s World Competitiveness Yearbook, from 29th to 24th in the WEF Global Competitiveness Report and 17th out of 189 countries, up two places on last year as assessed by the World Bank. The Bank’s latest report shows Ireland is now ranked 4th in the euro area in terms of ease of doing business.
Cost competitiveness is an important aspect of Ireland's overall competitiveness and we continue to monitor Ireland's cost competitiveness on a regular basis. 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.
Addressing Ireland’s international cost competitiveness, therefore, remains a key economic priority for Government. We will continue to progress actions that improve Ireland’s competitiveness position, though for example, the Action Plan for Jobs 2016 which contains a range of actions to making it easier for firms to conduct business in Ireland and to reduce costs across a range of business inputs.
The immediate challenge is to sustain the strong recovery underway by remaining competitive. While growth prospects for the Irish economy are strong, we must continue to deliver aggressively the structural reforms required to support competitiveness, productivity and growth. An updated Costs report is currently being compiled by the NCC and will be available for consideration in Q2.