Written Answers Nos. 437-452
437. Deputy Niamh Smyth asked the Minister for Jobs, Enterprise and Innovation if there is grant aid available for a person starting up an engineering business; if not, the other funding avenues available; and if she will make a statement on the matter. [23133/16]
View answerThe Local Enterprise Offices and Enterprise Ireland are the main Agencies within my Department that offer advice and support to indigenous companies.
The Local Enterprise Offices (LEOs) are the ‘first-stop-shop’ State support service for micro and small businesses in each local area. The LEOs provide advice and guidance, covering all government supports and requirements, to anyone who wishes to start or expand a business.
The LEOs can also provide funding for projects that meet certain criteria, generally with regard to export potential, and other non-financial supports such as training and mentoring. Businesses should contact their local LEO by telephone or by email – contact details for all LEOs are available at: www.localenterprise.ie.
A new online tool which sets out the variety of supports available to all enterprises across all sectors is embedded or linked to over 30 Government websites including my Department’s website and the websites of the Local Enterprise Offices and Enterprise Ireland.
Enterprise Ireland (EI) works in partnership with Irish enterprises to help them start, grow, innovate and win export sales in global markets. They provide funding and supports for companies- from entrepreneurs with business propositions for a high potential start-up through to large companies expanding their activities, improving efficiency and growing international sales. Availability of all EI supports are communicated via www.enterprise-ireland.com/en/ and also through EI’s Development Advisors, EI Regional Offices and through public calls for applications.
In the area of access to finance, a range of initiatives has been introduced - from Microfinance Ireland to the Strategic Banking Corporation of Ireland, and from the Credit Guarantee Scheme to the Ireland Strategic Investment Fund, as well as continued investment in seed and venture capital through Enterprise Ireland. These initiatives remain available and accessible to business and continue to provide increased access to credit and finance for Irish enterprise.
In September 2015 a new guide was launched setting out the range of State supports available for the manufacturing sector. As part of the Government’s plans to support employment growth in the manufacturing sector, a key step is to ensure that businesses in the sector become more aware of the Government supports that are available to support them in their expansion. This new brochure which is available on my Department’s website brings together all these services in a single publication to assist the sector to tap into these supports and clarify the details of what is available from the various Government Organisations and Agencies. Details are at:
https://www.djei.ie/en/News-And-Events/Department-News/2015/September/14092015.html
438. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the Government's position on the provisional application of the European Union-Canada Comprehensive Economic and Trade Agreement, CETA; her views on whether the investor state dispute settlement mechanism of CETA is compatible with European Union law; and if she will make a statement on the matter. [23255/16]
View answer439. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the key implications for Dáil Éireann from the European Union-Canada Comprehensive Economic and Trade Agreement; the way the trade agreement can be implemented when it clearly contradicts European Union law as imposed by the Maastricht, Nice and Lisbon treaties; and if she will make a statement on the matter. [23256/16]
View answerI propose to take Questions Nos. 438 and 439 together.
The EU-Canada Comprehensive Economic Trade Agreement (CETA) is a new generation agreement that will remove over 99% of tariffs between the EU and Canada and will create sizeable new market access opportunities in services and investment. It will end limitations in access to public contracts, open-up services market, and offer predictable conditions for investors.
The agreement covers virtually every aspect of economic activity, and it is extremely important for Ireland. It offers significant opportunities for growth in trade with Canada. The agreement opens up public procurement markets in the Canadian provinces giving Irish firms increased access to Canadian public sector purchasing. Ireland also gains unlimited tariff free access for most of our important food exports. Irish firms will also benefit from the recognition of product standards. In addition, Ireland successfully campaigned for a low beef import quota from Canada to the EU thereby safeguarding our important EU market in this area.
At the EU Council of Trade Ministers on 13 May 2016, the Council had an exchange of views on CETA and the process towards signature and provisional application of the agreement. The European Commission and Member States highlighted the high quality of the agreement reached with Canada and expressed the desire to work towards signature of the agreement at the October EU-Canada Summit. At the meeting, I made Ireland’s approach clear, that based on our assessment of its provisions, we viewed CETA as a mixed Agreement, in terms of EU and Member State competency.
The Commission published its proposals for signature, conclusion and provisional application of the agreement on 5 July 2016. The Commission has now decided to submit CETA to the Council for decision as a mixed agreement.
It will be a matter for the Council and the European Parliament to decide on the signature and provisional application of CETA. Following a decision by the Council with the consent of the Parliament, it will be possible to provisionally apply CETA. Its full entering into force will be subject to the conclusion by the EU, through a Council decision with the consent of the Parliament, and by all Member States through the relevant national ratification procedures. This means that the Oireachtas will be part of the final decision to ratify the agreement.
The provisional application of Free Trade Agreements is standard practice. What is at issue is what should be within scope in such application. We’ve argued that only those areas directly within exclusive Commission competence should be covered by provisional application. The Commission has already accepted that the CETA is a mixed agreement.
The provisions of the CETA on investment dispute resolution relate solely to the CETA as a multinational trade agreement. International trade agreements are not part of domestic law. This is why separate adjudication arrangements are required in the event of disputes under the agreement.
The issue of mixity and the extent of EU competence in a Free Trade Agreement is before the European Court of Justice. I understand that a decision is expected in 2017.
440. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if she is satisfied that all means of assistance available to the indigenous business sector here are readily available and accessible; and if she will make a statement on the matter. [23078/16]
View answerThe Local Enterprise Offices and Enterprise Ireland are the main Agencies within my Department that offer advice and support to indigenous companies.
The Local Enterprise Offices (LEOs) are 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. This information is easily accessed through the ‘Supporting SMEs’ online search tool at: www.actionplanforjobs.ie.
The LEOs can also provide funding for projects that meet certain criteria, generally with regard to export potential, and other non-financial supports such as training and mentoring. Businesses should contact their local LEO by telephone or by email – contact details for all LEOs are available at: www.localenterprise.ie
A new online tool which sets out the variety of supports available to all enterprises across all sectors is embedded or linked to over 30 Government websites including my Department’s website and the websites of the Local Enterprise Offices and Enterprise Ireland.
Enterprise Ireland (EI) works in partnership with Irish enterprises to help them start, grow, innovate and win export sales in global markets. They provide funding and supports for companies - from entrepreneurs with business propositions for a high potential start-up through to large companies expanding their activities, improving efficiency and growing international sales. Availability of all EI supports are communicated via www.enterprise-ireland.com/en/ and also through EI’s Development Advisors, EI Regional Offices and through public calls for applications.
In September 2015 a new guide was launched setting out the range of State supports available for the manufacturing sector. As part of the Government’s plans to support employment growth in the manufacturing sector, a key step is to ensure that businesses in the sector become more aware of the Government supports that are available to support them in their expansion. This new brochure which is available on my Department’s website brings together all these services in a single publication to assist the sector to tap into these supports and clarify the details of what is available from the various Government Organisations and Agencies. Details are at: https://www.djei.ie/en/News-And-Events/Department-News/2015/September/14092015.html
In the area of access to finance, a range of initiatives has been introduced - from Microfinance Ireland to the Strategic Banking Corporation of Ireland, and from the Credit Guarantee Scheme to the Ireland Strategic Investment Fund - and continued investment in seed and venture capital through Enterprise Ireland. These initiatives remain available and accessible to business and continue to provide increased access to credit and finance for Irish enterprise.
441. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which she expects foreign direct investment to play a part in job creation over the next five years; and if she will make a statement on the matter. [23079/16]
View answer458. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the major considerations of foreign companies contemplating investment here; if skills, services such as IT, road or rail transport or other considerations are paramount; and if she will make a statement on the matter. [23288/16]
View answerI propose to take Questions Nos. 441 and 458 together.
Foreign Direct Investment (FDI) continues to be a key contributor to Ireland’s economic development and growth. One-in-five private sector jobs in the economy result from IDA Ireland-supported FDI, both directly and indirectly, and represent a vital economic contribution by the multinational sector. 2015 saw the highest level of employment in the Agency’s history, with 187,056 people employed in IDA Ireland client companies.
Our efforts to continue 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 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.
When considering investing in Ireland FDI companies consider a range of factors, including: regions of scale with appropriate urban centres, supply of skilled people, international connectivity, energy infrastructure, telecommunications, R&D capabilities, sub-supplier and services infrastructure.
Ireland has many factors that make it an attractive location for FDI including a stable macroeconomic environment, pro-enterprise policies, high-quality education and skills development, a proven track record and a competitive and transparent corporate tax regime.
Property availability is of particular importance when a FDI company is considering locating in a regional area. In this regard, in February 2015 the Government unveiled a five-year strategy that included the delivery of a €150 million IDA Ireland property investment programme to attract foreign direct investment into different parts of Ireland. The programme will ensure the ready availability of an adequate supply of marketable serviced land, office and industrial/manufacturing buildings in advance of demand by both existing and potential client companies.
As Minister for Jobs, Enterprise and Innovation, I, along with IDA Ireland and other governmental and regional stakeholders continue to work to ensure that we create the right environment for investors to enhance our reputation as an excellent location for overseas talent to work and live.
442. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which it is expected that the skills available through those on the live register can be matched to the skill requirements of the workplace in respect of both the indigenous and the foreign direct investment sectors over the course of the next three years; and if she will make a statement on the matter. [23080/16]
View answerMy Department works closely with the indigenous and overseas enterprises, development agencies, the Department of Social Protection and the Department of Education and Skills on monitoring skills availability and skill needs and ensuring that those on the live register are best placed to take up job opportunities as the economy recovers. We are working closely to achieve an unemployment rate to 6% by 2020 as set in the Programme for a Partnership Government, sustaining the progress in reducing the unemployment rate from 15.1% in 2012 to 7.8% in June of this year.
Under Pathways to Work 2013, a Protocol on cooperation between the Department of Social Protection, the Department of Jobs, Enterprise and Innovation and the enterprise agencies was agreed. The aim of the Protocol is to maximise the recruitment of suitably skilled personnel from the Live Register by the enterprise agencies client companies.
The parties to the Protocol are my own Department, the Department of Social Protection, IDA Ireland, Enterprise Ireland, the Local Enterprise Offices (formerly County Enterprise Boards) and Údarás na Gaeltachta.
The Protocol has been maintained under both the new Pathways to Work 2016-2020 strategy and the Action Plan for Jobs strategy 2016. The Protocol is in place to ensure that there are good working arrangements at local level to share information, cooperate on awareness and promotion activities, match enterprise needs for existing and new projects, engage on conversion and training needs and ensure companies can avail of Intreo placement services.
The practical outcomes of the Protocol are primarily at local level - closer working relationships, exchange of key information on jobs opportunities, attending each other’s events, sharing promotional literature, etc. are now commonplace. On 17 May last, some 160 representatives of the Protocol groups attended a Dublin Castle event to share best practices, network and discuss the impact of new strategies such as the Regional Action Plan for Jobs and the Regional Skills Fora.
In addition, the Expert Group on Future Skills Needs (EGFSN) reports to me and to the Minister for Education and Skills and provides information on employment trends, job opportunities and demand for skills. It produces an annual “National Skills Bulletin” and “Vacancy Overview” reports. It also provides information on the supply of skills from the Irish education system through the “Monitoring Ireland’s Skills Supply” publication. The EGFSN publishes reports on specific sectoral, or cross-sectoral skills needs. In addition, it produces “Regional Labour Markets Bulletins”.
Recent EGFSN reports have anticipated future job opportunities arising from both expansion and replacement demand for a range of occupational roles. These include ICT, data analytics, manufacturing, medical devices, pharmaceuticals, food and beverages. Further opportunities are also anticipated in international sales and marketing, project management, freight transport, distribution and logistics, and in the hospitality sector.
Co-operation between employers and the education and training system is crucial in developing effective responses to skills needs. This co-operation is being strengthened through the new Regional Skills Fora to connect employers, enterprise development agencies and education and training providers.
443. Deputy Catherine Connolly asked the Minister for Jobs, Enterprise and Innovation the articles of the EU treaties the Commission is relying on when asking member states to sign a letter of intent prior to the qualified majority vote in relation to the provisional application of the comprehensive economic and trade agreement; if such a letter of intent has been signed and or if it is her intention to sign such a letter; in the event that such a letter of intent is signed, the legal recourse member states have to have it withdrawn; and if she will make a statement on the matter. [23115/16]
View answerI am not aware of a letter of intent with respect to the provisional application of the Comprehensive Economic Trade Agreement. The question of signing such a letter does not therefore arise.
444. Deputy Catherine Connolly asked the Minister for Jobs, Enterprise and Innovation the measures she has put in place to deliver 135,000 jobs outside of Dublin as per the programme for Government; and if she will make a statement on the matter. [23116/16]
View answerA Programme for a Partnership Government sets a target of creating an additional 200,000 jobs by 2020, of which 135,000 jobs are to be created outside Dublin.
Since 2012, the unemployment rate reduced from 15.1% to 7.8% in May this year. We have 155,000 extra people at work since 2012 and employment is growing in every region. With 45,000 jobs created last year, this leaves 200,000 to be achieved by end 2020, as per the Programme for Government.
My focus is on ensuring we support new job creation in every region. The Regional Action Plans for Jobs are the mechanisms for delivery. Their objective is to increase employment by 10% to 15% in each region, resulting in the generation of a total of 246,000 jobs by 2020, even higher than the Programme for Government target. This goal is underpinned by key targets for each of the regions, including increasing the number of entrepreneurs/start-ups in each region by minimum 25%, improving the survival rate and scaling performance of companies; increasing FDI investment into each region by 30% to 40%; and increasing the flow of critical skills to the Region’s enterprises.
Achieving these ambitious targets at regional level requires a renewed focus on building on regional strengths and areas of competitive advantage to develop the environment for business to start, grow and succeed and to attract inward investment.
All 8 Plans have been published and implementation is underway. Each Plan is overseen by a Regional Implementation Committee, with members drawn from the private and public sector. We are working closely with county councils to encourage them to play a significant role in implementing the Plans. Twice yearly updates will be published for each plan. The first Progress Reports will be published in Q3 2016.
The enterprise agencies are delivering on their elements of the action plans to stimulate employment growth in every region. Net jobs created through IDA companies amounted to 11,833 in 2015, with 53% of new IDA jobs located outside Dublin. Of the 21,118 new jobs created by Enterprise Ireland client companies, almost two thirds of these (64%) were created outside Dublin.
My Department is also providing funding of up to €250 million to support the Regional Action Plan process, to be provided over the next five years to Enterprise Ireland and IDA. This comprises a €150m Regional Property Programme delivered by IDA and up to €100 million available through three Enterprise Ireland competitive calls. These competitive calls are being targeted at innovative and collaborative approaches to support jobs creation across the regions. In June this year, I announced an initial allocation of €5 million in competitive funding for 48 local and regional initiatives under two competitive regional funding calls administered by Enterprise Ireland; the LEO Competitive Fund and the Community Enterprise Initiative. Further competitive regional funding calls will be rolled out on a phased basis.
445. Deputy Catherine Connolly asked the Minister for Jobs, Enterprise and Innovation the initiatives in place to assist women in the workforce given that more than 70% of those on minimum wage here are women; and if she will make a statement on the matter. [23117/16]
View answerWomen’s participation in the labour force has been on a long-term upward trend in Ireland. For example, the participation rate for women in the prime working-age group – aged 25-54 – rose from 67% in 2003 to 73% in 2015.
The upward trend was halted for a period by the sharp recession Ireland experienced between 2008 and 2012, but has resumed in years 2012-2015.
Ireland has also successfully secured ESF funding support for a programme, entitled "Gender Equality: Women Returning to the Workforce and Women's Entrepreneurship". The objective of the measure is to offer women the opportunity to acquire a range of skills through training which will enable them to return to the labour market or to support their entrepreneurial capabilities - which in turn will support job creation.
The government expects women’s participation to go on rising, and converging towards the EU average.
Addressing the under representation of female-led businesses that start a business and achieve considerable scale, requires a tailored, focused approach in terms of support, personal development and networking opportunities. Enterprise Ireland Female Entrepreneurship Unit was established to support ambitious women grow scalable businesses and to address the key challenges impacting on the growth of female led business opportunities. The strategy focuses on a number of initiatives which include:
Enterprise Ireland co-funding a number of key specific tailored development programmes to support ambitious women optimise their business success. These include:
- Going for Growth
- NDRC Female Founders
- DCU Ryan Academy
- CIT Rubicon Cork
- Sponsorship of women in business awards to identify and promote role models:
- Business Networking for Women Across Ireland
- Image Business Award
The signing into law of an Employment Regulation Order (ERO) for the Contract Cleaning Sector which covers about 30,000 workers, the majority of whom are women, provided for a new single wage rate of €9.75 per hour from October 1, 2015. This was €1.15 per hour higher than the national minimum wage at that time. Since January 1st last, when the national minimum wage increased to €9.15 per hour, the minimum rate applicable to workers in the Contract Cleaning Sector is still 60 cents higher.
As the Deputy is aware, the Low Pay Commission presented its first report in July 2015 in which it recommended an increase of 50 cents per hour to the minimum hourly rate bringing it to €9.15. That increase came into effect on 1st January last. The Commission presented its second report before the statutory deadline of 19th July 2016, which, in line with the practice established last year, was presented to Cabinet yesterday and published immediately thereafter. The recommendation that the minimum hourly rate for an experienced adult worker be increased by 10 cents to €9.25 will be considered by Government in the context of Budget 2017.
Given the preponderance of women on the national minimum wage and in order to obtain a better understanding of the composition and profile of this group and the underlying causality, the Commission has been asked to examine this issue and report its views as to the underlying reasons for this position and make any recommendations it considers appropriate. The Commission is due to report on this by end of October this year.
There is also a range of employment rights and equality legislation that greatly assist women in the workforce and ensure they are protected and treated equally whether they are full-time, part-time or temporary employees.
446. Deputy Catherine Connolly asked the Minister for Jobs, Enterprise and Innovation if the European Commission is acting ultra vires having delivered on 6 July 2016 a proposal to the Council of Ministers to provisionally apply the entirety of the comprehensive economic and trade agreement. [23118/16]
View answerThe basis for the proposal of the European Commission published on 6 July with regard to the Comprehensive Economic Trade Agreement is a matter for the institution concerned.
447. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the measures she and her Department are taking to address the possible impacts of the United Kingdom Brexit vote on levels of employment and the protection of jobs here; and if she will make a statement on the matter. [23119/16]
View answerGovernment has a clear plan in place to respond to the referendum outcome and has a Contingency Framework which maps the key issues that will be most important to Ireland in the coming weeks, months and years, including the future changing trading relationship between the UK and Ireland, and the protection of jobs here, both of which are of course interlinked. A summary of the key actions that will be taken to address the contingencies arising from the UK’s decision has been published.
As outlined previously, my own Department has been, and will continue to be, fully engaged in the risk analysis and contingency planning work that is being undertaken at cross-Government level, led by the Department of the Taoiseach.
Since the announcement of the UK referendum result on 24 June, as part of my contingency plans, I have established a Coordination Group within my Department consisting of relevant enterprise, single market, and trade officials, together with the Chief Executive Officers of IDA and Enterprise Ireland, to oversee the management of our immediate response, including the messaging to businesses both at home and overseas. I chair this Group, and I will continue to do so as part of my Department’s ongoing response as developments unfold at EU level and bilaterally with the UK.
Also on that day, I met with representative business organisations, including IBEC, ISME, the SFA, and the Irish Exporters Association, to provide an update on immediate responses to reassure business in the aftermath of the result.
Since then, I have had meetings with a range of other representative organisations, including American Chamber of Commerce Ireland (AmCham), Dublin Chamber of Commerce, and the Irish Farmers Association.
I have also written to my newly-appointed counterparts in the new UK Government – Liam Fox, the Secretary of State for International Trade, and Greg Clark, the Secretary of State for Business, Energy and Industrial Strategy – to confirm my intention to work together with them as the upcoming negotiations develop, and to request an early opportunity to discuss our priorities.
In addition, the enterprise agencies under my remit will continue to deliver on their commitment to supporting business and jobs in this period of heightened uncertainty.
In this regard, on the day after the referendum result, the CEO of IDA Ireland, wrote to the 1,200 Foreign Direct Investment companies who have operations in this country. That contact was designed to reassure those companies regarding Ireland’s ongoing commitment to the EU and on our commitment to FDI. He reassured those companies that the IDA will work with them to help sustain their existing business in Ireland and to grow additional business opportunities here.
Engagements by the IDA both with their existing client companies and with new prospective investors, on issues arising as a result of the UK Referendum will, of course, continue on an ongoing basis. Ireland’s commitment to our membership of the European Union, which provides for full access to that market for businesses located in this country, and our specific advantages for inward investment, will be highlighted by my Department and by the IDA at every opportunity.
Earlier this month, Enterprise Ireland reported that its client companies saw an increase of 10% in exports in 2015 amounting to an all-time high of €20.6bn. The export figure is now almost double what it was 10 years ago (€10.73bn in 2005).
As regards the UK vote to leave the European Union, and the importance of the UK market, EI client exports to the UK increased by 12% last year to reach €7.5bn. Significantly however, in the context of Brexit, UK exports, as a share of total exports, have reduced from 45% to 37% over the period 2005 to 2015 as EI clients have diversified their export base. High Growth Markets (e.g. China, Brazil, etc.) have continued to increase in importance over the past 10 years and now account for 12% of total exports compared to 7% in 2005.
Despite the continued diversification of the Enterprise Ireland client export base, the UK’s vote to leave the EU will present significant new challenges for Irish companies exporting to the UK. In response, Enterprise Ireland has begun its plans to support clients exporting to the UK, including:
1. Information and Guidance:
Enterprise Ireland will run an information campaign including: practical guides, online information and webinars, an updated UK market access guide and regional seminars in Ireland and the UK. Further details are available at www.enterprise-ireland.com/brexit.
2. UK Market Support:
Enterprise Ireland's UK team will support clients to identify key business opportunities in the short and medium terms. They will also provide advice and support on responding to the implications of Brexit such as improving competitiveness and reducing supply chain costs.
3. Competitiveness and Market Development Supports:
Enterprise Ireland will intensify its work with clients, to improve their competitiveness in the market, through its management capability and development programmes.
4. Market Diversification Support:
Enterprise Ireland will intensify its strategy of supporting clients to diversify into new markets. As part of this strategy, Enterprise Ireland will intensify its International Trade & Investment events schedule for the rest of 2016 to include trade missions and events to Northern Europe, USA, China, India and other high growth markets.
5. International Sector Clustering Strategy:
Enterprise Ireland will expand its focus on promoting Irish sectoral cluster capabilities in key sectors to international buyers in growth markets including Northern Europe, USA and Asia Pacific.
Regarding specific North South Enterprise development issues, my Department co-funds InterTradeIreland the Cross Border body which operates a range of programmes to develop businesses on a cross border basis. The cross-border market on the island is a particularly important for small firms with nearly two thirds of NI small firm exports going South and one sixth of Ireland’s small firm exports going North.
Already the Body has published a factsheet for companies providing helpful information on this issue. In the short term InterTradeIreland is planning to make information available to SMEs on any changes that could affect cross-border trade. It will also keep abreast of business needs and challenges through its Business Monitor survey process so that it is in a position to respond quickly to business concerns.
Ireland will be working closely with the UK and other EU member States to ensure that any potential disruption to trade and investment is minimised.
We will continue to support the EU in creating open markets and will endeavour to ensure that our interests are to the fore in future negotiations with the UK. We will also continue to make the most effective use of the framework of bilateral trade agreements and multi-sectoral trade agreements that the EU already has in place under the World Trade Organisation, and to support the opening of new markets through the EU.
448. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which her Department has identified the most important issues affecting job retention based on the performance over the past eight years; and if she will make a statement on the matter. [23277/16]
View answerWe have made substantial progress on growing and retaining employment. Since the Action Plan for Jobs process was first introduced in 2012, the unemployment rate has reduced from 15.1% to 7.8% in June 2016, with 155,000 extra at work. The Programme for a Partnership Government places the retention and growth of employment at the centre of our economic strategy. It sets out a target to create an additional 200,000 jobs over the period 2016 to 2020, with 135,000 jobs to be created outside Dublin. Ireland’s return to economic growth has demonstrated our ability, through concerted efforts across Government, to focus actions on those areas that help to retain and create jobs in all parts of the country. The Programme commits to sustaining the cross government focus on addressing the challenges set out in Enterprise 2025 strategy, the Government’s long-term enterprise policy.
Enterprise 2025 sets the objective of delivering growth over the next decade that is sustainable, led by strong export performance, builds on our sectoral strengths, and that is underpinned by innovation, productivity, cost effectiveness and competitiveness. We aim to build resilience into our economy so that we do not suffer again as we have done in the past number of years. Enterprise 2025 is a strategy that aims to build an economy that will not just achieve full employment but will sustain it in the long term.
Enterprise 2025 is a whole of enterprise strategy, aimed at delivering opportunities across all regions and across all sectors, including both manufacturing and services activities. Through a partnership approach with enterprise, representative bodies, the enterprise development agencies, Local Enterprise Offices and others, delivering a step change in enterprise performance and resilience will see a significant increase in Irish owned companies of scale, contributing to Ireland’s reputation for innovation in international markets. We are targeting a doubling of Irish owned companies with sales in excess of €100 million.
It is also about establishing a vibrant and stimulating ecosystem for entrepreneurship, in particular female entrepreneurship, to deliver an increase in the number of start-ups by 25 percent per annum – start-ups that have better survival rates. We also need to ensure that individual enterprises, and the economy more generally, gain from impactful inter-firm relationships throughout the country, through stimulating the establishment of clusters of scale and international visibility in areas of strength. Ireland is, and will continue to be, the best place to succeed in business, delivering sustainable employment and higher standards of living for all.
449. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which the cost base in Irish industry remains in line with that in other adjoining and European jurisdictions; and if she will make a statement on the matter. [23278/16]
View answerIreland’s improving cost competiveness performance has been central to securing the recovery in economic growth and employment. The improved competitiveness of Ireland’s exporting sector has been one of Ireland’s greatest strengths in recent years and has been key to economic growth and job creation. Improved cost competitiveness has made Irish firms more competitive internationally and made Ireland a more attractive location in which firms can locate and expand their operations.
As a result of our concerted efforts to improve national competitiveness, Ireland’s relative international competitiveness as measured by a range of international indices has improved since 2012. Ireland moved from 16th to 7th 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 National Competitiveness Council’s Costs of Doing Business in Ireland report published in April 2016 benchmarks key business costs and focuses on areas where Irish enterprise costs are out of line with key competitors, and on costs that are largely domestically determined.
The report points out that recent external factors have been in our favour in terms of cost competitiveness such as a weak euro, historically low interest rates, low oil prices and positive global growth. However, as we know these are factors which are beyond our control and can change quickly and the recent UK Referendum result on leaving the UK increases the uncertainty in the external environment. The report concludes that Ireland’s industrial cost base remains competitive 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.
I share the Council’s view that high costs have the potential to undermine recent economic progress and it remains our goal to continue to develop a competitive and productive economy. The immediate challenge is to sustain the strong recovery underway by remaining competitive. Therefore a general policy of vigilance and a willingness to take action on costs is essential. To protect the gains achieved to date, to further embed and sustain employment growth, and to ultimately spread the benefits of economic growth to all, we must continue to enhance all aspects of our competitiveness, including costs.
Addressing Ireland’s international cost competitiveness remains a key economic priority for Government. While growth prospects for the Irish economy are strong, we must continue to deliver aggressively the structural reforms required to support cost competitiveness, productivity and growth. We will continue to progress actions that improve Ireland’s cost competitiveness position, by implementing Action Plan for Jobs 2016 and in the development of the Action Plan for Jobs 2017.
450. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which consideration remains to be given to supporting regional developments in a way likely to spread economic growth throughout the regions thereby preventing imbalances; and if she will make a statement on the matter. [23279/16]
View answerThe Government Plan is to create 200,000 jobs by 2020, including 135,000 jobs outside Dublin - my focus is to ensure that every region in the country is supported in achieving its economic potential and maximising opportunities for job creation.
The Regional Action Plans for Jobs are playing a significant role in the delivery of regional enterprise and employment growth, by driving collaboration between key stakeholders and working in partnership with the enterprise sector to build on local strengths and deliver new ideas. Their objective is to increase employment by 10% to 15% in each region, and to ensure their unemployment rate is within one per cent of the State average. This goal is underpinned by key targets for all regions, including increasing the number of entrepreneurs/start-ups in each region by minimum 25%, improving the survival rate and scaling performance of companies; increasing FDI investment into each region by 30% to 40%; and increasing the flow of critical skills to each region’s enterprises.
Delivering balanced growth also requires a renewed focus on building regional strengths and areas of competitive advantage to develop the environment for business to start, grow and succeed and to attract inward investment.
Since 2015, IDA Ireland has been working towards the targets set out in its strategy, “Winning: Foreign Direct Investment 2015-2019”. Under this strategy, ambitious investment targets have been set on a regional basis for the first time. IDA Ireland aims to increase overall investment by 30% to 40% in each region. In 2016, Enterprise Ireland is targeting its clients to deliver 12,000 new jobs, €22bn in exports (from 18.6bn in 2014) and €2.4bn in new exports. EI’s new Strategy 2017-2020 will be finalised in 2016 and will contain ambitious new targets for supporting start-ups, exports and jobs across all regions. Each Local Enterprise Office has a Local Enterprise Development Plan (LEDP), setting out clearly what the LEO intends to deliver over the following 12 months. The Plans identify and prioritise the key enterprise sectors and entrepreneurial capacity challenges that need to be targeted in each LEO’s functional area.
The enterprise agencies are also delivering on their elements of the Regional Action Plans to stimulate employment growth across the country; Enterprise Ireland and IDA jobs figures for 2015 show that all regions have experienced agency-related jobs growth. Net jobs created through IDA companies amounted to 11,833 in 2015, with 53% of new IDA jobs located outside Dublin. Of the 21,118 new jobs created by EI client companies, almost two thirds of these (64%) were created outside Dublin. The LEOs delivered over 3,500 net new jobs across all regions in 2015.
My Department is also providing funding of up to €250 million to support all Regional Action Plans, to be provided over the next five years to Enterprise Ireland and IDA. This comprises a €150m Regional Property Programme delivered by IDA and up to €100 million available through three Enterprise Ireland competitive calls. These competitive calls are open to all regions, and are targeted at innovative and collaborative approaches to supporting local job creation. In June this year, I announced an initial allocation of €5 million in competitive funding for 48 local and regional initiatives across the country under two competitive regional funding calls administered by Enterprise Ireland; the LEO Competitive Fund and the Community Enterprise Initiative. Further competitive regional funding calls will be rolled out on a phased basis.
451. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which she continues to monitor the performance of smaller, indigenous companies here in comparison with similar enterprises throughout Europe with a view to ensuring that companies in this jurisdiction are well placed in the context of international competition; and if she will make a statement on the matter. [23280/16]
View answerOngoing monitoring of the performance of Irish companies and the range of enterprise supports available to them vis-à-vis their competition locally, regionally and internationally, is an ongoing element of the work of my Department, Enterprise Ireland and the Local Enterprise Offices with a view to ensuring that companies in Ireland have a complete suite of supports available to them to enable them to compete in difficult global markets. Across policy areas including funding for growth, management development, innovation and internationalisation my officials and their agency colleagues are constantly benchmarking what is happening in other jurisdictions.
The Action Plan for Jobs 2016 contains 304 individual actions which will impact on the performance of Irish firms and my Department and its Agencies will continue to monitor developments to ensure that Irish firms remain competitive in the future.
Growing the capability of Irish enterprise to compete in world markets is a specific priority of the 2016 Action Plan for Jobs. Through a range of actions, the target is the creation of over 13,000 new full-time permanent jobs and to support clients to achieve €22 billion in exports in 2016. These include:
- ensuring viable SMEs can access appropriate finance;
- supporting companies through “Lean” (efficiency) programmes;
- increasing the supply of skills to support company growth;
- enhancing management development;
- creating clusters of companies and other bodies to share knowledge and enhance efficiencies;
- leveraging the links between Irish-owned and foreign-owned enterprises in Ireland;
- supporting Irish companies seeking to participate in public procurement;
- supporting trade;
- reducing the cost of doing business.
Looking to the longer term, the ambitions targeted in Enterprise 2025 address important factors impacting on the performance of Irish companies including access to finance and competitiveness and reports on these are provided by Government on a quarterly basis.
452. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which foreign direct investment and indigenous investment has contributed to job creation in County Kildare over the past four years to date in 2016; and if she will make a statement on the matter. [23281/16]
View answerKildare is home to 22 multinational companies employing a total of 10,313 people, with significant businesses such as Intel, Hewlett Packard and Procter & Gamble established in the county. The broader Mid-East region, of which Kildare forms part, has seen unemployment fall from 12.7% in early 2012 to 5.9% at the end of quarter one in 2016. This reflects the region’s strong economic performance since 2012. The indigenous sector in Kildare has also performed well over recent years. There were 8,308 people employed in Enterprise Ireland client companies in 2015, up from 5,906 in 2011.
Enterprise Ireland has a range of support measures available to businesses to help them compete in international markets including capability in sales and marketing, R&D, operations and production, HR and organisational strategy, finance and investment, business strategy and start-up investment. To date in 2016, Enterprise Ireland made payments of €3,742,435 to its client companies in Co. Kildare. In 2015 payments of €2,061,377 were made to companies in the County. This was primarily to support new business employment, R&D, capital investment and staff training.
