Vol. 438 No. 4
41 Mr. Callely asked the Minister for Enterprise and Employment if he will give details of specific industry and specific job creation targets set by his Department for 1994 and over the next number of years; and if he will make a statement on the matter.
The job creation targets for industry in the period 1994-1999 are set out in the National Development Plan. The plan, which sets out the Government's strategy for the deployment of the Structural Funds, states its central objective as follows: "to ensure the best long term return to the economy by increasing output, economic potential and long term jobs" (p7).
The plan set out the following targets for job creation in industry:
—an average of eleven thousand jobs per annum in indigenous firms, and
—an average of nine thousand jobs per annum in overseas firms (both green field start ups and expansions).
The overall target, therefore, is for the creation of one hundred and twenty thousand jobs in the period 1994-1999.
As the Culliton report on industrial policy made clear, the performance of industry is dependent on a wide range of economic, infrastructural and institutional factors. The National Plan seeks to influence these positively within an Irish context in pursuit of its overall objective. However, as a small open economy, Ireland is also dependent on the broader international environment, and this factor must not be ignored when considering targets such as these.
I would also recall to the House that job creation is only one aspect of industrial policy, albeit a most important one. Industrial policy also seeks to strengthen the competitive advantage of existing Irish firms through reduced costs, improved quality, more rapid product development and a greater level of innovation generally. In some cases the effects of such improvements will be to retain, rather than create jobs. Nevertheless, I am sure that Deputy Callely would agree that the maintenance of existing employment must be accorded a high degree of priority. The broader business focus created through combining the strengths of IDA and Eolas in Forbairt will assist in achieving this aim.
