Written Answers Nos. 23-43
23. Deputy Maurice Quinlivan asked the Tánaiste and Minister for Business, Enterprise and Innovation the way in which the new Strategic Communications Unit will be used by the Office of the Tánaiste or her Department; and if staff from the Office of the Tánaiste or her Department will be moved to it. [43037/17]
View answerCommunications is an essential part of effectiveness of any modern organisation. That is particularly true of Government Departments and public service bodies in all countries, given the impact of their activities on the lives of their citizens.
Communication to the public is an essential service: people should know what their government is doing on their behalf, and why. That is why communications should be treated as a strategic, whole-of-government activity which should be conducted with the same level of professionalism as any other core service, such as human resource management or financial management.
As you will be aware, the Cabinet recently agreed that a new Strategic Communications Unit is to be established in the Department of the Taoiseach. Based on international best practice, and with the citizen at the centre of its work, the focus of this Unit will be to simplify Government communications and to increase efficiencies across the public sector when dealing with the Irish public.
The Unit aims to help achieve that in three ways: by streamlining communications for citizens; by developing and delivering major cross-Government communication campaigns; and improving communications capacity across Government.
As these work streams have a whole-of-government approach, the strategic communications unit will be consulting, and working closely, with all Departments, including my Department of Business Enterprise and Innovation, in the delivery of these aims.
The unit is currently staffed by serving public and civil servants, who have either been assigned on secondment or have been reallocated to the unit from within the Department of the Taoiseach and a State Agency.
It is likely that further vacancies will be filled through advertisement for staff on secondment from within the Public Service, as appropriate.
24. Deputy Éamon Ó Cuív asked the Tánaiste and Minister for Business, Enterprise and Innovation the policies she has to ensure that employment is increased outside the five main urban centres; and if she will make a statement on the matter. [42760/17]
View answerThe Regional Action Plan for Jobs initiative is one of the Department’s key policy responses to supporting job creation in all areas of the country, and is crucial to the Government in meeting the ambition to create an additional 200,000 jobs – 135,000 of which are outside Dublin – by 2020.
The Regional Action Plans do not distinguish between urban and rural areas – their focus is on specific initiatives that will support each region to achieve economic growth based on its particular strengths and areas of opportunity.
Each plan is driven by a committee of regional stakeholders from both the public and private sectors. Progress reports published to date reflect the good work made to date in the implementation of all 8 Action Plans, while the most recent figures from the CSO show that 80% of all jobs created in the past year were outside Dublin.
The enterprise agencies are making a significant contribution to employment in the regions - 61% of new jobs by Enterprise Ireland firms in 2016 were outside Dublin while 52% of new jobs by IDA firms in 2016 were outside Dublin.
Enterprise Ireland’s strategy for 2017-2020 aims to create a further 60,000 jobs, while sustaining existing ones, which will make an important contribution to jobs and economic growth across all regions of Ireland; IDA will continue to target a minimum increase in investment of 30% to 40% in each region outside Dublin to 2019.
To further support enterprise development across all regions, competitive funding of up to €60m is being rolled out by Enterprise Ireland over the next 4 years under the Regional Enterprise Development Fund to support the development and implementation of collaborative and innovative projects that can sustain and add to employment at a national, regional and county level.
IDA Ireland is also investing up to €150 million over five years in property solutions designed to allow it to create opportunities to win additional projects for all regions. This includes the construction of nine new advance facilities around the country.
Micro-enterprises and small businesses are crucial to sustaining rural economies: and the Local Enterprise Offices are playing their role in developing these businesses in every county through a suite of grants and non-financial supports.
These actions will be complemented by initiatives undertaken by my colleagues in other Departments, such as the Action Plan for Rural Development, which contains specific objectives and actions around developing rural employment opportunities, such as the Town and Village Renewal Scheme, the EU LEADER Programme, and National Rural Development Schemes.
27. Deputy Jan O'Sullivan asked the Tánaiste and Minister for Business, Enterprise and Innovation the preparation State agencies under her Department's remit have made to assist businesses and enterprises to prepare for Brexit; her plans to offer specific supports for those most affected; and if she will make a statement on the matter. [43038/17]
View answerI am very aware of the challenges faced by companies in the wake of the Brexit vote and my Department and Agencies continue to monitor and assess carefully the various Brexit-related issues that may impact on business in Ireland. Our focus remains on taking steps to mitigate the potentially adverse consequences Brexit may have for our economy whilst also ensuring that Ireland is well-placed to capitalise on the opportunities that might emerge.
Since the Brexit vote outcome, my Department has had extensive engagement with business to understand what they need to help them adapt to the challenges posed by Brexit, and to provide support for diversification, development and innovation. Informed by this engagement my Department has been working with the Department of Finance, Enterprise Ireland (EI), Strategic Banking Corporation of Ireland (SBCI) and Department of Agriculture to develop potential supports to respond to the needs of businesses impacted by Brexit.
In Tuesday’s Budget, a new Brexit Loan Scheme was announced which will provide affordable working capital financing to Irish businesses that are either currently impacted by Brexit, or will be in the future. The new Scheme will be delivered by the SBCI through commercial lenders to get much needed working capital into Irish businesses.
The new Brexit Loan Scheme aims to make up to €300 million available SMEs and Small Mid-Caps. The scheme will be open both to State Agency clients and those businesses that do not have any relationship with State Agencies. My Department is also exploring the development of a longer-term Business Development Loan Scheme which would assist firms in long term investing for a post-Brexit environment.
EI’s current “#Prepare for Brexit” campaign includes a Brexit Scorecard available to all companies to self-assess their preparedness for Brexit across all aspects of their business and which generates a report suggesting appropriate responses. They are running a series of Brexit roadshow events featuring expert speakers throughout the country to promote the Brexit Scorecard and encourage companies to prepare for Brexit. A €5,000 ‘BePrepared’ grant is also available to clients to prepare a Brexit action plan.
The Local Enterprise Offices (LEOs) are providing Brexit specific information sessions for both core and non-core clients in all counties, an online Brexit SME Scorecard that LEO clients can complete to self-assess their readiness for Brexit, and a Lean4Micro programme, which was designed to encourage clients to adopt Lean business principles in their organisation to increase performance and competitiveness, particularly in relation to being Brexit-ready. In addition, the LEOs are now offering a new funding programme to assist micro-enterprises affected by Brexit by helping clients find new markets and exports.
InterTrade Ireland (ITI), given its experience in promoting and strengthening North-South trade, is especially well positioned to assist businesses in Ireland address the particular commercial challenges that Brexit may present for cross-border commerce. That is why the Government provided €250,000 in additional funding to ITI this year to allow it to undertake a range of initiatives aimed at better preparing Irish SMEs for the UK's withdrawal from the European Union. This included the introduction of a Brexit readiness voucher scheme, strengthening the body's capacity to deliver expert advice and a series of events focused on building awareness amongst SMEs of Brexit-related challenges. The extra financial resources provided brought my Department's total funding of ITI to €7.9 million in 2017.
IDA Ireland, like the other enterprise agencies, has a clear Brexit Plan, and includes one-to-one investor engagements, public relations/media campaign and an international marketing campaign. The Agency has established a Brexit Committee to oversee its response to the opportunities and challenges arising from Brexit. The IDA is working hard to convert the interest shown to date by potential investors into investments on the ground here in Ireland. IDA Ireland is constantly engaged with clients across its entire regional portfolio and Brexit has become a significant feature of IDA Ireland’s strategy spanning all of it its activities, including operations activities, overseas, finance, planning marketing and promotion departments.
28. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the position regarding regional IDA site visits and vacant properties; and if she will make a statement on the matter. [43167/17]
View answerThe IDA remains committed to increasing foreign direct investment (FDI) in every region of Ireland by 30% to 40% by the end of the Agency's current strategy in 2019. I am heartened that the Agency's mid-year results for 2017 show that 54% of all job approvals so far this year are for investments located outside of Dublin. This is up from 37% at the same time last year. Progress is therefore being made in our collective efforts to help regional Ireland benefit further from FDI.
IDA Ireland continues to highlight the benefits of expanding or locating in the regions to its client base and it makes every effort to ensure that FDI is spread as widely as possible across the country. It is important to remember, however, that the final decision as to where to invest always rests with the company concerned. It is also the case that site visit activity does not necessarily reflect investment potential, as at least 70% of all new FDI comes from existing IDA Ireland client companies.
Site visits nevertheless represent an important tool through which investors can be encouraged to invest in regional areas and the IDA always does its utmost to ensure that investors consider all potential locations. Determining which particular sites may be attractive to a client depends very much on the particular requirements of the firm concerned. Factors that are habitually important to overseas investors include the suitability of local infrastructure, the proximity of transport hubs and the availability of skilled talent. Multinational companies frequently seek as well to base themselves as close as possible to businesses operating in the same industry.
In relation to IDA Ireland's vacant buildings, there are 17 IDA-owned buildings currently available. In addition, the Agency leases units from private investors, of which 24 are currently available.
The availability of such an adequate supply of marketable serviced land, together with office and industrial/technology buildings, in advance of demand is a key element in IDA Ireland’s ability to compete for mobile FDI. The availability of property solutions eliminates the lead times normally associated with acquiring property, enables clients to plan their property needs with a greater degree of certainty and allows for the commencement of projects at an earlier date by diminishing much of the difficulties associated with land acquisition, planning and construction. It is therefore an important means by which the IDA can encourage and attract new investors to the country, especially to regional Ireland.
The IDA's regional property programme is another important mechanism that supports investment outside of our main urban areas. It helps to ensure property solutions are in place for overseas companies considering investing or expanding, thereby encouraging FDI in regional Ireland. A number of buildings have already been constructed through the programme and 2018 will see the completion of further facilities in Galway, Athlone, Dundalk and Limerick. Design of similar facilities in Wateford and Carlow will also be progressed next year with a view to their completion in 2019.
29. Deputy Robert Troy asked the Tánaiste and Minister for Business, Enterprise and Innovation the efforts being pursued to promote the IDA business park in Mullingar. [42957/17]
View answerThe property in question is a 22.5 hectare IDA Ireland business and technology park located in Marlinstown, Co Westmeath. The park is fully zoned and serviced and is currently home to one IDA client company, an engineering and industrial firm which employs approximately 40 people at the site.
IDA Ireland continues to market the park to potential investors through its network of overseas offices. The park has also been brought to the attention of companies already located in Ireland who may be considering expanding further here. The Agency remains focused on finding further investors for the facility.
More broadly, the IDA markets Mullingar as part of the Midlands Region, which includes three other counties: Longford, Laois and Offaly. There are 30 multinational companies based in the region, employing 4,280 across all four counties. The Agency is determined to increase those numbers and it has appointed a dedicated Regional Manager to the region to further aid its efforts to grow investment in the wider area.
County Westmeath has a strong base of foreign direct investment (FDI) with 13 companies employing 2,571 people there. Three of these companies are based in Mullingar and between them employ 150 people. The IDA actively engages with this existing client base to support them in growing their business and to encourage efforts to expand their current footprint. The company currently located in the Marlinstown Business Park, for example, previously announced a 30 person expansion at the opening of its new manufacturing facility in 2015.
The IDA is also investing directly in property solutions for FDI in the Midlands and has received planning permission for one office building in Athlone, which should be ready for occupation in 2018. This is in addition to an advanced technology building which is now occupied by Aerie Pharmaceuticals.
In addition, the Agency has undertaken a number of general initiatives in the Midlands region to encourage investment. This has included introducing indigenous companies to multinational firms so that Irish businesses are best placed to win new contracts and thereby ensure their long-term sustainability. The Agency has also launched a digital marketing campaign to market the Midlands Region for potential investors and this is used overseas by IDA executives to showcase particular locations. The Agency also has regular engagement with the Chief Executives of the relevant Local Authorities to ensure that a mutually supportive approach is taken to win new investment and jobs.
30. Deputy Mattie McGrath asked the Tánaiste and Minister for Business, Enterprise and Innovation the position regarding the decision end the contract of a company (details supplied); and if she will make a statement on the matter. [42756/17]
View answerThe Succeed-in-Ireland initiative was operated by Connect Ireland on the basis of a contract with IDA Ireland that was originally agreed in March 2012. That original contract was due to expire on 26 March 2016. In advance of that date, however, Connect Ireland and the IDA jointly agreed to extend the term for a maximum period of one year.
The purpose of that one-year extension was very clear: to facilitate both parties in effecting an orderly wind down of the original agreement. That contract could not have been continued any further as the maximum number of extensions had already been granted and any further extension would have constituted a breach of public procurement law.
The Board of IDA Ireland subsequently considered the future of the initiative at a meeting in November 2016. It decided that the Agency would not re-tender for its continuation. A definitive decision was not taken, however, on the ultimate future of the Succeed-in-Ireland programme.
As was announced previously, my Department will be commissioning an independent review of the initiative. That review, which will be carried out after details of the initiative’s full and final costs are available, will equip us with a thorough understanding of the programme’s results and its contribution to employment generation in the State. We will then be in a position to make a determination on its long-term future.
Earlier this year, my Department launched a public consultation calling for observations on the draft terms of reference for that review. I am pleased that the consultation process elicited a large number of submissions (17) and that responses were received from a range of stakeholders, including public representatives and the general public.
I believe it is clearly in the interests of good governance that the review be undertaken before a decision is reached on the ultimate future of the programme. We need to fully understand how the initiative has functioned, its strong and weak points, and how we could potentially improve it for the future. This is in the interests of the taxpayer, of the State and ultimately of the programme itself.
I want to make absolutely clear that no decision has been taken with regard to the ultimate future of the Succeed-in-Ireland initiative and that the initiative is not necessarily ending. As I have already stated, a decision on its future will await the outcome of the comprehensive review. However, the review cannot proceed until the full and final costs of the programme are clear, which will necessitate the resolution of the dispute between Connect Ireland and IDA Ireland.
31. Deputy Niamh Smyth asked the Tánaiste and Minister for Business, Enterprise and Innovation her plans to protect SMEs along the Border region that are most exposed to the impact of Brexit. [42754/17]
View answer35. Deputy Niamh Smyth asked the Tánaiste and Minister for Business, Enterprise and Innovation her views on the effects that Brexit will have on SMEs along the Border region; and if plans have been made to protect them. [42753/17]
View answerI propose to take Questions Nos. 31 and 35 together.
I am very conscious of the challenges as a result of Brexit faced by SMEs operating in close proximity to the border, many of which trade freely on both sides.
My Department has been working with the Department of Finance, Enterprise Ireland (EI), Strategic Banking Corporation of Ireland (SBCI) and the Department of Agriculture and others to develop potential supports to respond to the needs of businesses impacted by Brexit.
In Tuesday’s Budget, a new Brexit Loan Scheme was announced which will provide affordable working capital financing to Irish businesses that are either currently impacted by Brexit, or will be in the future. The Scheme will be delivered by the SBCI through commercial lenders to get much needed working capital into Irish businesses. The Scheme aims to make up to €300 million available to SMEs and Small Mid Caps Funds.
My Department’s enterprise development agencies all have clear Brexit plans in place. EI is running a series of Brexit roadshow events featuring expert speakers throughout the country – including border counties - to promote the Brexit Scorecard and encourage companies to prepare for Brexit. EI’s current “#Prepare for Brexit” campaign includes a Brexit Scorecard available to all companies to self-assess their preparedness for Brexit across all aspects of their business and which generates a report suggesting appropriate responses. A €5,000 ‘BePrepared’ grant is also available to clients to prepare a Brexit action plan.
The Local Enterprise Offices (LEOs) are providing Brexit specific information sessions for both core and non-core clients in all counties, an online Brexit SME Scorecard that LEO clients can complete to self-assess their readiness for Brexit, and a Lean4Micro programme, which was designed to encourage clients to adopt Lean business principles in their organisation to increase performance and competitiveness, particularly in relation to being Brexit-ready. In addition, the LEOs are now offering a new funding programme to assist micro-enterprises affected by Brexit by helping clients find new markets and exports.
InterTrade Ireland (ITI), given its experience in promoting and strengthening North-South trade, is especially well positioned to assist businesses in Ireland address the particular commercial challenges that Brexit may present for cross-border commerce. That is why the Government provided €250,000 in additional funding to ITI this year to allow it to undertake a range of initiatives aimed at better preparing Irish SMEs for the UK's withdrawal from the European Union. This included the introduction of a Brexit readiness voucher scheme, strengthening the body's capacity to deliver expert advice and a series of events focused on building awareness amongst SMEs of Brexit-related challenges. The extra financial resources provided brought my Department's total funding of ITI to €7.9 million in 2017.
From a regional perspective, the Regional Action Plan for the North East/North West Region aims to support the creation of 28,000 jobs across Donegal, Sligo, Leitrim, Cavan, Monaghan, and Louth by 2020 and to reduce the unemployment rate to within 1 percentage point of the State average.
The North East/North West Action Plan for Jobs is the key policy response for supporting employment growth in the Border region, with public and private stakeholders actively engaged in delivering a range of innovative and practical actions set out in the Plan. Sectors targeted as part of the plan include traditionally strong sectors for the region like agri-food, manufacturing/engineering and tourism.
There has been a substantial improvement in the North East / North West region since the commencement of the National Action Plan for Jobs in 2012, with an additional 22,200 in employment in Q2 2017 compared to Q1 2012. There are now 6,000 more people in work in the region since the launch of the Regional Action Plan initiative in Q1 2015.
Moreover, the unemployment rate in the Border region has fallen from 10.2% in Q1 2015 to 6.6% in Q2 of this year, which is within the target of one percentage point of the State average.
These latest figures are be welcomed and demonstrate that, while there are still challenges to surmount in bringing them down further, the overall trend for the Border region is one of steady improvement.
External shocks, such as Brexit, may impact on regional job delivery in the future, however the Plans are flexible and dynamic and can be adapted to address Brexit challenges and opportunities arising within the regions.
The implications of the Brexit vote and the challenges and opportunities that the decision poses for all Irish Regions, including the Border region, continue to be considered by all Regional Action Plan for Jobs Implementation Committee.
32. Deputy Clare Daly asked the Tánaiste and Minister for Business, Enterprise and Innovation if her Department's efforts to attract foreign direct investment are being considered in terms of wider capacity and policy to provide infrastructure and housing for employees of companies that may chose to relocate to here. [43132/17]
View answerThe sustainability of our national infrastructure and housing in the context of our approach to attracting inward investment is being considered as part of the ongoing work to develop the new National Planning Framework. My Department is engaging in detail with the Department of Housing, Planning and Local Government on these issues as part of that process.
Companies that seek to invest in Ireland do so for many reasons, including our talented workforce and our track record as a jurisdiction that both supports and fosters enterprise. Our infrastructure - including our transport network and supply of offices and housing - has also been important in helping to attract investment here. That is another reason why the Government is committed to improving our national infrastructure and particularly the supply of quality and affordable housing across the country.
33. Deputy Mick Wallace asked the Tánaiste and Minister for Business, Enterprise and Innovation the measures she is taking to address the low job quality in new employment growth in County Wexford; and if she will make a statement on the matter. [43169/17]
View answerDelivering sustainable employment and higher standards of living for all is the core objective of enterprise policy as set out by my Department in Enterprise 2025.
The enterprise agencies IDA Ireland and Enterprise Ireland, together with the Local Enterprise Offices are focused on the creation of quality employment, taking into account the multidimensional aspects that define quality: ensuring opportunities for advancement that includes workplace learning and development; ensuring that people are educated and trained to meet the needs of industry; recognising the opportunities presented by entrepreneurship as an alternative career path.
IDA positions the South East in the market place as an investment location with a strong ecosystem of both indigenous and multinational companies operating across a diverse range of sectors, including clusters in the Life Sciences and Financial Services/Business Services sectors, and strong FDI Engineering manufacturing businesses.
Wexford is home to 17 existing IDA Ireland clients who between them employ almost 2,630 people in a range of manufacturing and service operations. Since end 2014, IDA-supported companies have seen a net increase of 127 jobs in Wexford.
IDA is targeting a minimum increase in investment of 30 to 40 percent in the South East region over the period of its strategy to 2019. Additional funding of €150m is also being made available to the IDA to support its Regional Property Programme and drive job creation in the multi-national sector.
Enterprise Ireland companies currently support 20,450 jobs in the South East region, 4,816 of which are based in Wexford. This is an increase of 2,140 since end-2014 for the region, and an increase of 332 for Wexford.
Wexford LEO has supported gross job gains in 2016 of 197 in its client companies. Total employment among LEO Wexford clients was 1,192 at the end of last year.
Key to delivering on the vision set out in Enterprise 2025 is that we optimize the job creation potential of our regions, building on distinctive strengths and assets, and that is the aim of the Regional Action Plans for Jobs launched by my Department in 2015.
These Regional Plans are crucial to meeting the Government’s ambition to create an additional 200,000 jobs, of which 135,000 are outside the Dublin region by 2020.
What the regional action plans can do is get things working from the bottom up, in partnership with the enterprise sector and other regional actors, building and reinforcing local strengths.
The South East Action Plan for Jobs aims to increase employment in the region by 10-15% over the period to 2020, resulting in delivery of 25,000 jobs.
In addition to the FDI investment target increase of 30-40 percent, the South East Plan aims to achieve a 25 percent increase in the number of start-ups in the region, improve the scaling performance of companies by 25 percent and improve the 5 year survival rate of companies by 25 percent.
The Local Authorities, enterprise agencies, and other key public and private sector stakeholders in the region have been strongly involved in, and are key drivers of, the South East Action Plan.
As a result of a focused collaborative approach and a range of reforms, there has been a substantial improvement in the South East region since the commencement of the National Action Plan for Jobs in 2012, with an additional 33,600 in employment in Q2 2017 compared to Q1 2012.
There are now 13,000 more people in work in the region since the launch of the Regional Action Plan initiative in Q1 2015.
The sectors which showed the highest employment growth since 2015 were Construction, Professional, scientific and technical activities and the Hospitality sector.
In addition, the unemployment rate in the South East region has fallen from 12.8% in Q1 2015 to 8.1% in Q2 of this year.
However, there is still work to be done: the unemployment rate in the South East is still over 1 percentage point higher than the (Q2 2017) national average of 6.4%.
To complement the Regional Action Plan for Jobs process, Enterprise Ireland, with the support of my Department, in May, launched a Regional Enterprise Development Fund of up to €60 million to grow and sustain jobs across the regions over a four year period. The Fund aims to support significant regional initiatives, to build on sectoral strengths and to improve enterprise capability. An announcement of successful projects under the first call should take place by year end.
34. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the steps she is taking to reverse the continual fall in Irish business competitiveness levels and making Ireland an attractive location for businesses to locate particularly Ireland's competitiveness standing with the UK; and if she will make a statement on the matter. [43168/17]
View answerCompetitiveness is integral to exports, jobs growth and as a means of achieving sustainable improvements in living standards. Improving competitiveness performance is a core focus of the work of my Department and wider Government policy and is particularly vital in light of the challenges posed by Brexit.
The 2017/2018 Global Competitiveness Report published by the World Economic Forum in September shows Ireland’s ranking has fallen by 1 place this year. Ireland is the 8th most competitive economy in the euro area and the 11th most competitive economy in the EU28. Despite the fall in ranking, it is encouraging that the overall trajectory of Ireland’s competitiveness performance and scores in indices such as the WEF’s in recent years is positive. The World Bank’s Ease of Doing Business report currently ranks Ireland 18th out of 190 economies. The Institute for Management Development measure of competitiveness ranks Ireland 6th most competitive out of 63 countries. Both the nominal and real Harmonised Competitiveness Indicators are at relatively low levels by historic standards and recent data points to continued HCI competitiveness in Ireland. Most importantly, our improved competitiveness is reflected in strong employment growth across sectors and regions. The strong performance of clients supported by the enterprise agencies in winning exports, market share and job creation in the face of intense global competition is to be commended and reflects the competitiveness of the environment in which to do business in Ireland.
Irelands’ performance in international rankings is a reminder of the intense global competition we face for exports and inward investment. Global uncertainty and Brexit in particular, has underlined the importance of building competitive advantage and generating an uplift in enterprise export competitiveness to secure sustainable jobs and growth. My objective is to ensure the economy is resilient at sectoral and firm level to deal with imminent competitiveness challenges and to build further on the progress we have made.
Building the foundations of future growth means we must further enhance the competitiveness of our business environment. We must continue to invest in infrastructure, innovation and talent and continue to harness the benefits from trade and the Single Market. As Minister for Business, Enterprise and Innovation, I will ensure our policies enhance national competitiveness and create the best possible environment for enterprise and that innovation and investment across all regions are prioritised and implemented. Ensuring enterprise stays at the forefront of innovative activity is vital to deepening the resilience of our enterprise base and necessary for success in global markets, which for a small open economy like Ireland, is necessary for creating sustainable growth.
36. Deputy Robert Troy asked the Tánaiste and Minister for Business, Enterprise and Innovation when the Action Plan for Jobs 2018 will be published; and if all submissions to this plan will be taken into consideration. [42956/17]
View answerThe Programme for a Partnership Government commits to maintaining the OECD endorsed Action Plan for Jobs process; that Government will on an annual basis consult with all relevant stakeholders to draft a Plan that contains the best ideas for job creation and retention within available resources.
The Action Plan for Jobs is one of the Government’s key instruments to support job creation. The Action Plan for Jobs process is working. Since the first Plan was launched in early 2012, there are over 225,000 more people at work bringing total employment in the State to almost 2,063,000 by end of Quarter 2, 2017, with more than three out of every four new jobs created outside of Dublin.
While unemployment has fallen significantly and employment continues to grow strongly, this Government’s goal is to have an additional 200,000 people at work by 2020, including 135,000 jobs outside of Dublin.
In July 2017 my Department commenced the whole of government process to develop the Action Plan for Jobs 2018.
To date, I have met with a wide range of representative organisations and businesses. In addition, the Department has invited submissions for ideas and actions that could be included in the 2018 Action Plan to support its 2020 goals and contribute to creating the right environment for continued job growth and retention right across the country. While it is important that the Department’s day-to-day activities to support job creation should continue to be delivered, proposals for the 2018 Plan will focus on new and more strategic actions that will have a significant impact on sustainable job creation.
Building a strong economy and enterprise sector that can deliver sustainable full employment is significantly more challenging in light of increasing international uncertainty, particularly in the global trading and investment environment. As set out in the Government’s Summer Economic Statement we, now more than ever, need to build economic resilience, so as to strengthen our ability to absorb, adjust and respond to severe shocks.
We must intensify our efforts to enhance and improve competitiveness and focus on structural reforms which improve productivity across the economy, including increasing efficiencies, and reducing unnecessary administrative burdens. We must continue to develop, nurture and attract world class talent and drive investment in innovation to sustain a competitive advantage, particularly in strategically important areas.
A sustained cross-Government focus is necessary to secure the gains already made and to deliver sustainable economic and employment growth across the country.
My Department is particularly interested in actions that support the following themes:
- Maintaining and enhancing resilience, productivity and competitiveness;
- Supporting and fostering enterprise via actions including the following:
- Growing Irish companies and enhancing their agility and resilience to the changing external environment for trading;
- Driving entrepreneurship and start-up companies;
- Developing and deepening the impact of foreign direct investment and ensuring it continues to be spread throughout regional Ireland;
- Accelerating regional development and growth;
- Delivering the skills for maintaining a talented and dynamic workforce;
- Promoting innovation that delivers success in international markets;
- Supporting the growth of the Digital Economy, building on existing initiatives such as Industry 4.0 and Digital Skills;
- Addressing new labour market challenges, such as expanding labour market participation across all sections of society;
- Ensuring access to competitive finance; and
- Identifying a small number of big ideas and reforms that could make meaningful impacts on the business environment.
The 2018 Action Plan for Jobs will be published by February 2018. Submissions from all stakeholders will be considered for inclusion.
I will be working with Ministerial colleagues to ensure that the 2018 Plan is ambitious and impactful and keeps us on track to deliver on our 2020 targets.
37. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Business, Enterprise and Innovation the position regarding CETA; the position regarding TTIP; and if she will make a statement on the matter. [42768/17]
View answerThe EU–Canada Comprehensive and Economic Trade Agreement (CETA) entered into force provisionally from the 21st September 2017. This means that Irish companies may now take advantage of the provisions of CETA including the elimination of tariffs on almost all key exports, access to the Canadian procurement market, the easing of regulatory barriers and more transparent rules for market access. In that regard, CETA covers virtually every aspect of economic activity and will provide new market opportunities in many sectors for Irish firms. The Agreement will save on duty costs since 98% of all tariffs were eliminated on entry into force.
Irish firms will also benefit from the recognition of product standards and certification, thus saving on ‘double testing’ on both sides of the Atlantic. Cost savings may be made as a result of customs and trade facilitation provisions, which are aimed at reducing processing times at the border and making movement of goods cheaper, faster, more predictable and efficient. Irish companies will also be able to bid for Canadian public contracts at the federal and sub-federal level, as limitations to these end under CETA.
In services and investment CETA is the most far reaching agreement the EU has ever concluded. Almost half of the benefits anticipated from CETA are expected in the services sector. CETA makes it easier for EU individuals and companies to provide services to Canadian customers and vice versa. It covers services such as legal services, accountancy, transport and telecoms.
The benefits and opportunities to business in the Agreement will be especially valuable for SMEs, given that trade barriers tend to disproportionately burden smaller firms, which have fewer resources to overcome them than larger firms.
It is important to note, however, that the provisions relating to investment protection are excluded from "provisional" application. Member States will not be bound by these provisions until they are ratified by all Member States in accordance with their national procedures. In this regard, I have no immediate plans to ratify the Agreement given the Opinion of the Court of Justice of the European Union in the EU-Singapore case and the recent request by Belgium for an opinion from that Court on the compatibility of the Investment Court System with the European Treaties.
In the context of CETA having provisional application, it is important to note that Ireland already has a strong trading relationship with Canada which means many companies will already have trading relationships on which to build, or sister companies who already have key market intelligence on which to develop further trade opportunities. This is reflected in the €3.2 billion worth of annual trade between both countries. The value of Irish exports to Canada is worth €2.4 billion whilst the value of Irish imports from Canada is worth €780 million.
Regarding the EU-US Transatlantic Trade and Investment Partnership Agreement (TTIP), negotiations are on hold in light of current US trade policy developments.
38. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which she and her Department continue to promote Ireland as an attractive location for foreign direct investment with particular reference to the ability to compete effectively with all other countries in the EU and outside; the locations the greatest competition is likely to come from; if particular advantages and disadvantages have been identified from an Irish perspective; and if she will make a statement on the matter. [43137/17]
View answerCompetition for foreign direct investment (FDI) remains intense. Ireland nevertheless attracts global FDI that helps to fuel employment creation and economic growth across the country. Multinational companies continue to invest and re-invest here with leading global firms from many sectors - including life sciences, ICT, engineering and digital media - all based in Ireland. The contribution that these investments make to our wider economy remains highly significant.
Ireland has many strengths when it comes to attracting FDI. This includes, for example, our international competiveness ranking, where we are rated as the 6th most competitive country by the Institute for Management Development (IMD). Ireland also scores very highly in terms of key criteria for FDI including investment incentives, labour productivity and the adaptability and retention of talent. As recognised by the IMD, many of Ireland’s traditional assets including our education system, highly skilled workforce and pro-enterprise business environment add to our competitive advantage and are extremely attractive to inward investors.
While the Government is proud of the country's proven track record in attracting and sustaining FDI, we are very much aware that continued success cannot be taken for granted. That is why we are continually examining how we can improve on factors that are crucial to fostering further investment here, including our cost base, infrastructure, the availability of talent and our legal and regulatory environment.
Ireland continues to compete with many different jurisdictions - both in the EU and further afield - for FDI. We remain confident, however, that Ireland's strengths make us attractive to overseas companies. Our continued membership of the European Union and Eurozone have become particularly important in this context recently.
More generally, the State has a long track record of winning overseas investment for the Irish people. Over that period, the world economy has changed shape many times, yet Ireland has remained an attractive destination for FDI. Our capacity to continue winning such new investment, despite geopolitical changes and intense competition, will be aided by the underlying strengths of our FDI offering. As the global investment climate continues to evolve, we will adapt accordingly – as we have done in the past – and make sure that Ireland continues to secure new FDI projects and the jobs that go with them.
39. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the policy measures in the action plan for jobs to bring down the levels of underemployment. [43166/17]
View answerThe Action Plan for Jobs is the Government’s key instruments to support job creation. The Action Plan for Jobs is working. 225,000 extra people are at work today than in 2012 when the first Plan was launched. 18,000 new jobs were created in the first six months of 2017.
While the Action Plan is a whole of Government approach to support job creation, I am responsible for developing the 2018 Plan. My priority is to deliver on this Government’s goal to help create 200,000 additional jobs by 2020, including 135,000 jobs outside Dublin.
Underemployment is generally defined as individuals who are currently in part-time employment but with a desire and availability to work more hours.
The Central Statistics Office (CSO) measures part-time employment and underemployment. In its most recent data release as part of the Q2 2017 Quarterly National Household Survey (QNHS) the statistics indicate that part-time working is declining and that the majority of part-time workers are doing so by choice:
- Part-time employment has declined by 6.4% while the number working full-time has increased by 5.0% over the year to Q2 2017 (seasonally adjusted);
- Almost four out of every five part-time workers are working part-time by choice (in Q2 2016, the number was three out of four).
The Action Plan for Jobs (APJ) 2017 included a chapter on ‘Addressing New Labour Market Challenges’, which specified a number of specific actions that have helped contribute towards the reductions in underemployment experienced over the past year and will continue to tackle underemployment issues. These include
- Implementation by the Pathways to Work 2016-2020 programme by the Department of Employment Affairs and Social Protection.
- Introduction of the new Single Affordable Childcare Scheme by the Department of Children & Youth Affairs.
- My own Department is leading the roll out of training under the Women Returning to the Workforce Initiative, targeting women who are currently detached from the labour market and who are interested in entering/re-entering employment.
My Department is currently in the process of developing the new Action Plan for Jobs 2018 in consultation with a broad range of stakeholders internally and externally. Actions that continue to address underemployment, and indeed labour market participation and activation challenges in general, will be sure to feature prominently in this new Plan that will be published in January 2018.
40. Deputy Maurice Quinlivan asked the Tánaiste and Minister for Business, Enterprise and Innovation the way in which the previously announced plan to double Irish representation abroad will impact agencies under her remit, namely Enterprise Ireland and the IDA; the number of extra staff envisaged; and when this plan will be available. [43036/17]
View answerGiven my Department's responsibility for growing and internationalising business, we will actively contribute to developing a plan to deliver on our ambition to double our global footprint.
IDA Ireland and Enterprise Ireland already have significant presence in overseas markets which has delivered results over many years. Both are keen to deepen and strengthen that presence to maximise opportunities for Irish business by:
Increasing the number of Irish companies that export, increasing the number of markets served by Irish exports and increasing the value of total exports. A feature of the challenge of Brexit is that we must further diversify our exports so as to reduce our dependence on the UK market; and
Increasing foreign direct investment from both mature markets, which are already a valuable source of FDI, and diversification into new markets, for example into those markets that would traditionally turn to the UK as the location of choice from which to service the EU market.
We should also acknowledge that expansion of the Agency Overseas Office Networks will also require investment in the Agencies at home for the following: To build the pipeline of companies capable of exporting to these markets in the case of EI; and service FDI client visits to Ireland, win investments and ensure job retention, in the case of IDA.
The rewards for the hard work of our agencies at home and abroad are great. In January 2017, Enterprise Ireland published its strategy for the period 2017-2020. The strategy was developed in the context of Brexit and focuses on supporting clients to both Build Scale and Expand Reach. The strategy sets ambitious targets out to 2020 including:
- Sustain and grow jobs in Enterprise Ireland client companies by 60,000 over a four year period bringing the total employment to 220,000;
- Grow exports by €5 billion to €26 billion;
- 50% growth in exports outside the UK;
- Increasing the annual total spend in the Irish economy by Enterprise Ireland clients to €27bn;
- Create 80,000 new jobs (an increase of 29% on the 2010 to 2014 target);
- Win 900 investments (an increase of over 40% over the 2010 to 2014 target);
- IDA has committed itself to increase the level of investments in each region by between 30% and 40% during the lifetime of the strategy;
- Cumulative spend of €3bn in R&D investments;
- Total of 209,000 to be employed directly in overseas companies by 2019;
- Portfolio of overseas companies 1,350 (up 13% from current base of 1,195);
- Target an increase of 20% in Irish Economy expenditure by overseas companies from €22.4bn in 2013 to €26.8bn by 2019; - €150m property investment programme spread over the 5 year period to attract FDI into the Regions; and
- A 50% increase in direct annual R&D spend by Enterprise Ireland clients to €1.275bn.
IDA Ireland has also undertaken an ambitious strategy. Their strategy, Winning: Foreign Direct Investment 2015-2019, includes the following targets:
Our national trade strategy, Ireland Connected, sets out a strong and effective strategy for communication and co-ordination of Irish resources overseas – it is essential that to ensure delivery in all our markets that Departments and Agencies have clearly defined and complementary roles, relationships and milestones to ensure maximum success.
Therefore, we need a fully coordinated approach across Government Departments and Agencies to develop and implement the plan to deliver this. The agencies and my Department are members of the Global Footprint 2025 Steering Group which is Chaired by An Taoiseach’s office. The goal of the Global Footprint Initiative is to double Ireland’s global footprint by 2025. This expansion will help drive efforts to diversify and increase trade, including in the wake of Brexit. The project will require an ambitious whole-of-Government approach, engaging actors across the system, to develop a comprehensive plan. To that end the Taoiseach has written to the Ministers asking them to develop a clear plan for doubling our presence overseas by 2025.
41. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which innovation and technology continues to play a prominent role in job creation in all regions throughout the country in respect of new locations and existing enterprises; if particular advantages or disadvantages have been identified in this regard; and if she will make a statement on the matter. [43138/17]
View answerMy Department recognises the key role that innovation has played in Ireland’s economic recovery to date. It contributes significantly to job creation, exports and investment and the competitiveness of the indigenous enterprise base. Innovation also contributes to embedding the foreign direct investment base in Ireland.
Enterprise Ireland, an agency of my Department, supports companies in regional and rural areas to start, innovate and remain competitive in international markets, now and into the future. The 5,000 manufacturing and internationally traded services companies that Enterprise Ireland works with are a critical source of existing employment and job creation in every county in Ireland.
In 2016, companies supported by Enterprise Ireland employed 201,108 people (173,868 FTE and 27,240 Other).
Within this, 19,244 new jobs were created resulting in a net gain of 9,117 jobs:
65 % of client employment is outside of Dublin;
42.2 % of client employment is outside the five counties which are home to the five urban centres (Dublin, Limerick, Galway, Waterford and Cork); and
36 % of the net new jobs created in 2016 by Enterprise Ireland supported clients were outside of the five counties which are home to the five urban centres.
From interactions with clients, Enterprise Ireland is seeing companies that are born in rural locations, creating jobs in rural areas and innovating in rural areas to provide globally competitive products for international markets.
Innovation is key in ensuring our firms are competitive in international markets and is vital for companies to meet the challenges posed by Brexit. Enterprise Ireland's role in Ireland’s research and innovation landscape is focused on empowering Irish companies, irrespective of location throughout the country, to create high-value, innovative and differentiated products for international markets, leading to revenue and jobs growth in Ireland. Enterprise Ireland has a range of offers focusing on supporting businesses of all sizes to develop and build their innovative capability and to incentivise increased investment in innovation. These offers are available to companies throughout the country.
In January 2017, Enterprise Ireland published its strategy for the period 2017-2020 ‘Building Scale, Expanding Reach’. The strategy was developed in the context of Brexit and focuses on supporting clients to both build their scale and expand their reach. Despite economic and market uncertainties, Enterprise Ireland’s strategic aims, working with clients are to:
Assist clients to create 60,000 new jobs by 2020 and to sustain the existing record level of jobs;
Grow annual exports by €5bn to €26bn per annum;
Increase the level of spend in the Irish economy by €4bn to €27bn per annum by 2020; and
Ambition: Inspiring more companies to have global ambition.
The distribution of higher education institutions throughout the country provides companies with access to knowledge providers irrespective of location. At these locations, companies can access knowledge, skills and the physical infrastructure required to drive innovation.
To build innovation capacity at these locations, Enterprise Ireland has:
- Funded the established of campus incubators in every Higher Education Institution in partnership with the European Union under the Regional Innovation Strategies Measures. This programme seeks to:
(1) foster entrepreneurship and campus company activity;
(2) help realise the commercial potential of Ireland's research community; and
(3) support balanced regional development.
- Built a network of 15 Gateways at Institutes of Technology to give companies access to innovation expertise required to find solutions to business challenges;
- Funded Technology Centres as part of a joint initiative with IDA Ireland. Technology Centres are collaborative entities, established and led by industry, which undertake R&D of strategic interest to its member companies, in partnership with a Higher Education Institution; and
- Provided financial supports, such as Innovation Vouchers and Innovation Partnerships, to client companies throughout Ireland.
Location is not a factor in decisions made by Enterprise Ireland in regard to R&D support. Enterprise Ireland will continue to work with client companies to drive innovation as means to increasing employment across the country.
My Department has developed its Innovation 2020 strategy for Research and Development, Science and Technology and its Enterprise 2025 policy side by side. A critical objective for my Department is delivering on the actions and commitments set out in Innovation 2020. It is clear that a strong interdependence exists between science, technology and innovation policy and enterprise policy.
The National Support System for Horizon 2020, the EU Framework Programme for research and innovation, is coordinated by Enterprise Ireland. It has a budget of almost €75 billion and runs over the period 2014-2020. Horizon 2020 includes a programme tailored specifically to the needs of SMEs, namely the SME Instrument, which has €3 billion in funding available over the period 2014-2020. The SME Instrument helps high-potential SMEs to develop ground-breaking innovative ideas for products, services or processes that are ready to face global market competition.
Companies in Ireland (both foreign-owned and Irish-owned) that compete successfully for funding from Horizon 2020 will boost their innovative capability and competitiveness which in turn will deliver strong national economic impacts, including job creation.
42. Deputy Jan O'Sullivan asked the Tánaiste and Minister for Business, Enterprise and Innovation if her attention has been drawn to predictions that Ireland may have to recruit workers from abroad on a larger scale to fill vacancies in businesses; if she has engaged with Ministers and Departments to ensure that education, training and in-work upskilling are provided for those who remain unemployed or underemployed in order that persons who can benefit from the improving economy are not left behind; and if she will make a statement on the matter. [43032/17]
View answerAs Minister for Business, Enterprise and Innovation I recognise that investing in education, training and upskilling is vital for a strong workforce and to ensure a stable and healthy economy. This Government has shown its commitment to this through the Action Plan for Jobs 2017 which recognises the need for upskilling and reskilling jobseekers and the importance of providing training for the long term unemployed. As the economy approaches full employment it is likely that labour and skills shortages will become more common. The Government is working hard to address such shortages.
As part of the Action Plan for Jobs, the Government has continually implemented actions to improve and expand Springboard. Over €113 million has been allocated to Springboard+ from the National Training Fund. This funding has provided for over 30,000 free part-time and full-time higher education places. Springboard courses are delivered in public and private education institutions across the country, in a broad variety of sectors including ICT, construction and international financial services. As of July 2016, 80 per cent of those who participated on a Springboard+ course since 2011 are no longer on the Live Register.
My Department engages with other Departments in relation to education, training and upskilling through the Expert Group on Future Skills Needs (EGFSN). The EGFSN advises the Irish Government on current and future skills needs on the economy and on other labour market issues that impact on Ireland’s enterprise and employment growth. The EGFSN carries out research, analysis and horizon scanning in relation to emerging skills requirements at thematic and sectoral levels. The SOLAS Skills and Labour Market Research Unit provides the Group with data, analysis and research and manages the National Skills Database. My Department, in conjunction with SOLAS, provides the EGFSN with research and secretariat support.
Over the years the EGFSN has produced reports with key recommendations including the upskilling and training of the current labour market in order to fill skills gaps and work with stakeholders to ensure implementation of these actions. An example of this is the recent ‘Future Skills Needs in the Biopharma Industry in Ireland’ report called for vacancies to be filled by a combination of graduate intake, upskilling of those seeking employment and the continuous professional development of those working in the sector. The report also recommended both maximising available Jobseekers programmes to consolidate supply of skills and for a new biopharma apprenticeship and career traineeship to be developed.
The Biopharma report is not unique in this regard. EGFSN reports regularly recommend the implementation of training and upskilling.
Another example of this is the EGFSN’s upcoming work report on Skills for the Digital Economy which will emphasise the importance of the constant reskilling and upskilling of the workforce in creating a resilient economy. The report will focus on how different roles and different sectors will be impacted by digitalisation and will develop a synopsis of approaches to upskilling the existing workforce. This report will add to the body of work completed by the EGFSN since its inception in relation to filling skills gaps using our current labour market.
43. Deputy Catherine Connolly asked the Tánaiste and Minister for Business, Enterprise and Innovation the number and location of IDA sites in Galway city and county that are not in use; the length of time they have not been in use; the amount they were purchased for and when; if the empty sites have been used since their purchase; and if she will make a statement on the matter. [43030/17]
View answerThe availability of an adequate supply of marketable land, office and industrial or technology buildings in advance of demand is a key element in IDA Ireland’s ability to compete for mobile foreign direct investment.
The availability of property solutions eliminates the lead times normally associated with acquiring property, enables clients to plan their property needs with a greater degree of certainty and allows for the commencement of projects at an earlier date. It also reduces many of the difficulties associated with land acquisition, planning and construction and helps to encourage investors to locate in regional areas.
The table below outlines the location of IDA Ireland sites in Galway city and County that are currently available. As a number of the sites in question form part of larger business parks, information relating to the length of time the sites have been available along with details on the date and price of purchase are not readily accessible for all the sites listed. This information will take some time to collate but can be provided at a later date to the Deputy, if needed.
|
Property Name |
Property Town |
Property County |
Property Type |
Net Marketable Hectares |
|
Oranmore Science & Tech Park |
Galway City |
County Galway |
Strategic Site |
26.78 |
|
Dangan B&T Park |
Galway City |
County Galway |
Industrial Estate |
0.45 |
|
Parkmore B&T Park (W&E) |
Galway City |
County Galway |
Business Park |
28.02 |
|
Athenry |
Athenry |
County Galway |
Strategic Site |
92.4351 |
|
Ballinasloe B&T Park |
Ballinasloe |
County Galway |
Business Park |
9.697 |
|
Tuam Science & Technology Park |
Tuam |
County Galway |
Business Park |
10.1269 |
|
Tuam Business Park |
Tuam |
County Galway |
Industrial Estate |
2.25 |
|
Ballygar Site |
Ballygar |
County Galway |
Industrial Estate |
3.4398 |
|
Mountbellew Business Park |
Mountbellew/Ballygar |
County Galway |
Industrial Estate |
0.1979 |
|
Glenamaddy Business Park |
Glenamaddy |
County Galway |
Industrial Estate |
0.9105 |
|
Gort Business Park |
Gort |
County Galway |
Industrial Estate |
1.1217 |
|
Roundstone |
Roundstone |
County Galway |
Industrial Estate |
1.42 |
