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Dáil Éireann díospóireacht -
Tuesday, 5 Nov 2002

Vol. 556 No. 3

Written Answers. - Job Creation.

Bernard J. Durkan

Ceist:

84 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the total number of job losses in the economy in the past 12 months; the number of new jobs created; her proposals to enhance the prospects of further job creating investment; and if she will make a statement on the matter. [20384/02]

A total of 25,048 proposed redundancies were notified to my Department under the Redundancy Acts, 1967 to 1991, during the 12 months between 1 October 2001 and 30 September 2002. The information requested by the Deputy in relation to job creation this year is not yet available. This year's Forfás annual employment survey, which will be carried out in November, will give details of jobs created and lost in companies assisted by IDA Ireland, Enterprise Ireland, Shannon Development and county enterprise boards between 1 November 2001 and 31 October 2002. The 2001 survey showed that total permanent full-time employment in companies under the remit of the industrial development agencies, Enterprise Ireland, IDA Ireland, Shannon Development and Údarás na Gaeltachta, amounted to 315,500 in 2001, a decline of 3,500 in comparison with the 2000 figure. While 30,000 jobs were created in 2001, these gains were offset by job losses of 33,500 during the same period.

Just over 50% of jobs approved between 1992 and 2001 came from clients already located in Ireland, with the rest resulting from greenfield projects. Despite the downturn in 2001, the period as a whole showed a rise of almost 44% in the number of foreign direct investment companies operating in Ireland and an increase of over 75% in permanent employment. The level of foreign direct investment in Ireland, relative to the size of the economy, is one of the highest in the world. The IDA will focus on increasing the contribution of investment from existing clients in the future. The prime requirements for foreign direct investment are that it is high-value added, requiring high skill levels; that it is, as far as possible, innovation rather than production orientated; and that it links to an increasingly sophisticated business environment. This new investment will be sourced by a combination of developing existing clients and seeking new emerging investors in existing or new activities and sectors.
Enterprise Ireland anticipates that increases in employment in the indigenous sector in 2002 will be weaker than 2001 and expects that job losses will be higher as companies continue to downsize. The agency will focus on maximising the number of sustainable job gains for 2002 through the creation of new jobs by entrepreneurs setting up new high-potential start-up companies; the retention and creation of new jobs in existing companies; enhancing the innovation capability of Ireland at a national and regional level through support of research in companies and third level institutions; and supporting the capability and competitiveness building of companies. In the micro-enterprise sector, the 35 county and city enterprise boards will continue to provide dispersed economic development throughout the country, developing indigenous enterprise potential, stimulating economic activity at local level and promoting micro-enterprises. The boards provide a single point of contact at local level and complement the activities of the other industrial development agencies. They support individuals, firms and community groups, provided that the projects have the capacity to achieve commercial viability.
While any deterioration in job creation levels is disappointing, I believe that the fundamentals of our economy remain strong. I am confident that, given the commitment of the industrial development agencies, we can withstand the present downturn and remain an attractive location for both foreign direct investment and indigenous firms.
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