Robert Troy
Ceist:24 Deputy Robert Troy asked the Minister for Jobs, Enterprise and Innovation his plans to develop the digital gaming sector to increase the employment it is already providing to the Irish economy. [21076/11]
Other Questions
Job Creation
Digital gaming is one of a number of key sectors which I see as offering strong potential for growth and increased employment in Ireland. The global video games market was valued at $55.5 billion in 2010 and is expected to grow to $82.5 billion by 2015, making it the fastest growing segment of the wider entertainment and media sector. It is eclipsing music and box office figures at this stage. The increasing popularity of social gaming and online play has changed the shape of the industry. This has opened up not just a global market for developers, but also opportunities for the industry to find new locations offering local talent and favourable tax regimes. It is a rapidly moving marketplace and one where Ireland could become a significant player.
The programme for Government includes a commitment to support the digital games industry and promote Ireland as a digital gaming hub. The sector directly employed 1,500 people in Ireland in 2010 in core games companies, representing a four-fold increase since 2004, with a further 1,000 employed in online gambling. There is considerable potential for jobs growth in the core video game sector, with a number of announcements by IDA and Enterprise Ireland-supported companies already in 2011. There is potential to increase employment in the sector to 4,500 by 2015, and for growth across related sectors or activities, such as eLearning and animation. Potential growth opportunities for Ireland lie in the areas of advanced game servicing, games development, games publishing and enabling technologies.
I recently met representatives from the digital gaming industry to discuss how we could work with them to further develop the sector. At present, Forfás is preparing a report for me on the potential of the sector. The report will identify key actions that need to be taken to optimise its development. IDA Ireland, Enterprise Ireland and representatives of the digital gaming sector have provided input to this process.
While focused on the electronic games industry, the Forfás study will contribute to a better understanding of the needs of the wider digital economy in Ireland and the policy framework and actions required to facilitate its growth. I expect to receive the report before the end of this month. I will give it early consideration and seek the support of my Government colleagues to take appropriate actions required to develop the sector further.
As the Minister rightly says, Ireland has been very successful in this area and there is great potential in it. Does the Minister agree that the development of this important sector is hampered somewhat by the fact that there are different Government agencies and Departments dealing with different segments of the market? Does he also agree that what is key to growing the sector is a highly skilled, specialised workforce? Has the Government any plans to ensure we have that workforce to attract the opportunities that undoubtedly exist?
I do not really accept what the Deputy is saying. Like any business, it depends on a number of elements of government to make it right. In my discussions with representatives of the sector, it was made clear that they want to see the skills flow. The interpretation of research and development tax credits is obviously important for them as well, which is also a revenue function. Support from Enterprise Ireland and IDA Ireland for clustering and so on is also important. Like any other business, they depend on a range of factors for their success. I believe there is a determination to develop opportunities like this. When I have the report at the end of the month, we will look at issues such as skills deficits and will be working with the Minister for Education and Skills. The programmes he has been developing are aimed at converting people with other skills. That offers opportunities in this sector. This does not need a super agency for the gaming sector. We do not need an agency for every sector.
I am not suggesting for a moment that we create another agency. We want to see fewer agencies and not more of them. Is the Minister aware of the recommendations for the sector in the Forfás report about making it happen? I refer specifically to the proposal that the Government should facilitate networking and collaboration across sub-sectors of the creative industries, such as digital media and design, and particularly in MNCs, SMEs, sole traders and academia. Another proposal is to develop and promote education and training initiatives to increase capacity and skills in the area of design and innovation. Will the Government accept those proposals and act on them?
I had a joint meeting with the Minister for Education and Skills only recently to discuss specifically education and training skills gaps. He is bringing forward proposals to increase the graduate intake into areas with skills gaps, while under the Springboard initiative he wants to switch people with different skills into these areas.
We are very conscious of the opportunity for networking in areas like digital media and where there is a convergence of technologies. Many of the research and development initiatives that have been developed by the Minister of State, Deputy Sherlock, build on the fact that we have collaboration between multinationals, SMEs and the academic community. Many of these digital gaming companies have been spun out from research activities in the higher education institutes, funded by Science Foundation Ireland, SFI. There is very fruitful investment in this area, with good spin-offs.
Alternative Energy Projects
Sandra McLellan
Ceist:25 Deputy Sandra McLellan asked the Minister for Jobs, Enterprise and Innovation the steps he has taken to develop the green economy. [21162/11]
The "green economy" is a term used to categorise a range of economic activities which contribute to lower greenhouse gas emissions, better resource usage, and respect for the environment. It covers a range of activities from carbon trading to energy efficient and environmentally friendly products, renewable energies and eco-tourism.
The programme for Government makes commitments to supporting the sector, including through increasing support for energy efficiency and renewable energy programmes, establishing Ireland as a renewable manufacturing hub to attract international and domestic investment, and expanding renewable energy generation to achieve our renewable energy targets. Clearly, implementation of this agenda spans several Departments and State agencies.
As part of the jobs initiative, the Minister for Finance announced that an additional €30 million would be invested in the national retrofit home energy efficiency and renewable energy programmes this year. The Minister for Communications, Energy and Natural Resources has indicated that this initiative will support an additional 2,000 jobs in 2011. Other measures announced in the jobs initiative help to promote jobs in green tourism, such as halving the lower rate of employer's PRSI until the end of 2013 on jobs that pay up to €356 per week, removing the travel tax and cutting the lower rate of VAT.
The green economy is an area which could become strategically important for Ireland at a global level. We have a number of particular strengths which can realise jobs and growth opportunities and contribute to export-led growth. The sector already employs 18,775 people and the value of the Irish market in these sub-sectors was estimated at €3 billion in 2010. However, the value of the sector globally is set to increase rapidly, driven by a range of factors, including EU directives and regulations, rising energy costs, increased investment in environmental services and infrastructure, consumer preferences, and climate change and international agreements.
Additional information not given on the floor of the House.
The Department's agencies, namely, Enterprise Ireland and IDA Ireland, have established units dedicated to working with both indigenous and multinational companies in the so-called cleantech sector. A practical example of the success of Enterprise Ireland's supports for the sector was seen in last week's announcement of the creation of 145 jobs in County Galway in the manufacturing of wind turbines. Another notable development is that green financial services are part of the new strategy for the IFSC which was launched by the Taoiseach last week.
A number of policy issues need to be addressed to realise the potential of the sector. Some relate to planning and licensing. Others relate to the capacity of the electricity grid and the price for delivery of renewable energy. I will work with other colleagues to develop this policy framework.
The green energy sector has lost a little bit of focus owing to the current major economic turmoil around the world, and possibly due to the demise of the Green Party in this House as well. It remains an untapped resource in Ireland. There were discussions in Britain about whether that country would look to Ireland to provide some of its energy from natural resources in future. Global energy security and global climate change remain a major issue.
I missed part of the Minister of State's answer. I think he mentioned the number of jobs that were created. Could he repeat that? How many jobs does the Government seek to create over the next five years? What level of investment does it plan to make in that time?
Concerns were expressed that some organisations, due to the reduction in their industries, have been able to enjoy benefits worth about €700 million from those carbon credits. That comes from the taxpayers' pockets, so the Minister of State might comment on that as well.
I agree with the Deputy on the change of emphasis over recent years, but I disagree with him on the Green Party's agenda. All parties in the House have been engaged with the agenda for a long time. An additional 2,000 jobs were created in 2011. A Cabinet sub-committee is dealing directly with this area and it gives Government impetus to it.
There is a challenge for Ireland in the next phase of commitments which we have to meet on carbon reduction. That should give rise to new opportunities in this field. It is not possible to quantify how many jobs will be created. No one can do that and it would be unrealistic to do so. However, I agree with the Deputy in another respect. A SWOT analysis was carried out and it showed that there was a lack of coherence in overall policy due to a large number of State and local agencies being involved, and there was some fragmentation of the research base. That is now being firmly taken in hand.
I understand the difficulties in putting a figure on the number of jobs to be created in any area. However, none of the parties had any problems in doing that before the election. They were very confident in telling us how many jobs would be created in each sector over the next while. While we cannot be confident about the number of jobs to be created, it is important for organisations to set objectives and targets and then work towards those.
We are out of time, but I will allow a very brief question from Deputy Boyd Barrett.
I would like the Minister of State to consider a fiscally neutral proposal put to me by someone from Bettystown in County Meath, and it relates to the retrofit scheme. The proposal is that we introduce a loan scheme to cover the cost of insulating people's houses.
If we were to do this and the repayments on the loan scheme were to correspond roughly to the monthly savings achieved as a result of houses being insulated, that would make the scheme attractive and there could be a massive take-up by people to insulate their homes. It would result perhaps in up to a 50% reduction in their energy costs, as Deputy Wallace said, not to mention the potential to create work for thousands of people in home insulation works which would substantially reduce carbon emissions and energy imports. Such a scheme would not involve a great cost.
The Deputy will be aware that the Taoiseach launched the strategy for the international financial services industry 2011-16. One of the initiatives is the creation of the Green IFSC whereby we pin down areas in which there are new opportunities ranging from carbon management, IP commercialisation, private equity investment to green tech fund management. The Government is engaging in this space. It is impossible, realistically, to set a finite target for job creation. The main point is that we are setting down the policy framework by which we can drive these agendas and ensure strong political co-ordination and coherence.
On Deputy Boyd Barrett's proposal, I respectfully ask him to make contact with the Minister, Deputy Rabbitte, and that he seek to meet him to ask him to consider it.
Job Creation
Bernard J. Durkan
Ceist:26 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he has had discussions with the EU Commission with particular reference to availing of every possible opportunity for job creation through the medium of innovation and research thus leading to economic recovery; the extent to which he has had discussions with the relevant EU Commissioner to this end; if specific targets have been identified or set over the next five years; and if he will make a statement on the matter. [21099/11]
The Minister, Deputy Bruton, and I have had separate meetings recently with the European Commissioner for Research, Innovation and Science, Maire Geoghegan-Quinn, with a view to building strong relationships to ensure Ireland maximises the benefits of our position in the European Union in terms of jobs and opportunities to further develop the economy. Most recently, the Minister met the Commissioner on 24 June when they held an event in Dublin to highlight opportunities for Irish researchers, businesses and educational institutions under the European Union's Seventh Framework Programme for Research and Technological Development, FP7. The Commissioner highlighted the fact that upcoming calls for proposals under FP7 in July 2011 and July 2012 would be worth approximately €18 billion.
With a budget of over €50 billion in the period 2007 to 2013, FP7 is the European Union's main instrument for funding research and development in Europe. In order to extract the maximum benefit from the opportunities available within FP7, a national support network has been put in place, headed by the national director for FP7 based in Enterprise Ireland who leads a team of national contact points for various elements of the programme. This support structure ensures a co-ordinated and coherent approach is adopted towards FP7 across all the Departments, agencies and other organisations involved. Through this support structure, a mix of guidance, advice and financial assistance is available to encourage researchers and companies, large and small, to avail of the opportunities within the programme. The range of financial supports available includes travel support which assists researchers to meet potential partners and proposal preparation support for academic co-ordinators and companies, covering all costs included with the submission of FP7 applications. Ireland's target for the drawdown of funds from FP7 in the lifetime of the programme is €600 million. Achievement of this target is well on track, with some €300 million already awarded to date. I am determined that we will achieve the target set.
Additional information not given on the floor of the House.
The next European Framework Programme for Research and Innovation, to be called Horizon 2020, will operate from 2014 to 2020, for which the European Commission has proposed a budget of €80 billion in its recently published multi-annual financial framework for the period. While no target has been set for the next framework programme which has yet to be proposed by the Commission and agreed by the Council, I am determined to ensure ambitious Government policies are in place in order that we can continue to improve our performance.
Will the Minister of State elaborate on the degree to which specific targets have been agreed, whereby industry and academia here could capitalise on the funding available? To what extent have the various agencies engaged with each other independently of the Minister and his Department in the meantime?
There is a multi-layered approach in this respect. There is clear recognition of a strong policy started by successive Governments which forms the foundation for ensuring the maximisation of the potential for the drawdown of funds. We are already involved in a research prioritisation exercise that will seek to concentrate on specific themes of research and, ultimately, commercialise that research. However, it is important to have regard to the educational aspects of basic research and the commercialisation agenda. The prioritisation exercise which involves all of the State agencies interacting with each other and the Department is about ensuring we maximise the potential to meet our targets. In regard to Horizon 2020, the process seeks to ensure we will be more ambitious and that Ireland will become an agenda setter for the programme.
I thank the Minister of State for his comprehensive reply. Will he indicate if any deficiencies or weaknesses have been identified, which, when and if addressed, will result in a maximisation of the economic benefit for the country in terms of job creation?
If I was to proffer a personal opinion, I would contend we could be doing more on the commercialisation agenda. If we were spinning out more companies, for instance, from the higher education institutes, that would ultimately lead to further job creation. It must be remembered also that our investment in research, or research, development and innovation, through the collaborative approach with all of the foreign direct investment companies housed here, ensures their continuation in the country. It also ensures greater innovation in these companies. It is a two-prong approach. It is about trying to achieve more in the commercialisation space through the creation of more companies and also about ensuring the existing foreign direct investment, FDI, infrastructure is not compromised in any way. It is also about ensuring the research component is maintained.
Bernard J. Durkan
Ceist:27 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he has studied initiatives likely to create jobs leading to import substitution with particular reference to the need to combat the outward flow of jobs and investment to low wage or more competitive economies; the degree to which consideration has been given to the reasons for such relocations in either the manufacturing or service areas; in the context of the global economy the opportunities in technology and innovation that can positively be explored to give this economy a competitive edge; and if he will make a statement on the matter. [21100/11]
Bernard J. Durkan
Ceist:239 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the steps he has taken or intends to take to address job losses in various locations throughout the country with particular reference to those areas that have experienced relocation of investment to more competitive economies; and if he will make a statement on the matter. [21382/11]
I propose to take Questions Nos. 27 and 239 together.
With which question is Question No. 27 being taken?
Question No. 239, another question tabled by Deputy Durkan.
(Interruptions).
Deputy Durkan cannot have three of them.
In 2009 there were major reductions in industrial jobs around the world — the number of new industrial jobs was low — and Ireland was not immune from these developments. The main cause of the job losses which occurred was excess capacity in the international recession and arose from a restructuring process which went on in industry in Ireland and around the world. Overall job numbers in individual companies have been reduced at their plants around the world. Some losses due to relocation at the lower end of the value added scale have been phased out as these activities became uncompetitive in particular locations. However, the manufacturing and internationally-traded services sectors in Ireland have begun to recover in the last two years and exports have performed strongly. They have been less affected by Ireland's difficulties in banking and the public finances than other sectors. They have been in a position to avail of improvements in competitiveness such as reductions in Irish pay costs, energy costs and rental costs.
There are many opportunities in technology and innovation which are giving Ireland a competitive edge. We have established strong clusters in innovative sectors such as medical devices, ICT and the pharmaceutical and financial sectors which continue to perform well. Ireland is well placed to exploit opportunities in new sectors such as cloud computing and digital gaming, life sciences and clean-tech industries. We are building on investments made in the research and development capability of our higher education institutes working collaboratively with industry.
Import substitution in the area of public procurement offers opportunities for some enterprises. However, to build scale most successful companies must also must develop an export market and Enterprise Ireland focuses on moving companies into a position to penetrate overseas markets.
In view of the fact that quite a number of high-tech jobs were lost in the ten years prior to the downturn in the economy here and worldwide, has there been a specific identification of the issues which are causing some companies to relocate to other jurisdictions and have the findings been studied with a view to putting in place the necessary measures to encourage the retention of the maximum number of such jobs in this jurisdiction, while at the same time ensuring competitiveness is achieved to ensure a long-lasting impact?
While no specific study is being carried out at present, the turnover in companies is a feature of technology moving on. The pharmaceutical sector began by processing bulk chemicals and it gradually became more sophisticated. Ireland had the knack to continually move up the value chain. The problem that continues to arise is that the more routine elements of each sector become commodities that are no longer competitive to produce in Ireland. We are successfully moving up the value chain. Last year, half of all IDA investments included an element of research and development. The trick for Ireland is to ensure we are at the forefront of developing new products and technologies in order that we can move to higher value sectors as natural losses occur in other areas.
I ask the Minister whether specific attention has been given to areas which have caused or are likely to cause companies to relocate. For example, how many companies in the insurance industry or high technology pharmaceuticals and electronics sectors have relocated on the basis of their inability to compete?
My Department and its agencies maintain an early warning monitor on issues that adversely affect sectors of the economy. Through the agencies, we ensure we are positioned to meet the rising tides either through research and development investment or by anticipating change. Ireland's offering, which used to be plentiful cheap labour and tax incentives, has become more sophisticated. We have developed clusters of skills around innovation and research and development but our challenge is to improve continually in basic areas like cost competitiveness and utilities.
Has the Minister or his Department considered the development of a wood for energy industry that could offset the importation of almost €2 billion worth of home heating oil?
Deputy Durkan raised a relevant question. The specific issue raised in Question No. 27 and the debate about the relocation of 130 Vodafone jobs to Egypt is important because the local economy is losing €2 million. I ask the Minister to be more proactive in defending this type of job.
It has been reported that the Government's €20 million jobs initiative has only created eight internships despite advertising hundreds of positions. Can the Minister clarify the matter further?
I understand there are approximately 1,200 placements on the internships scheme. Perhaps they have not yet been tied down and completed but the programme has been very successful and the Minister for Social Protection is pleased with the progress made thus far. It is one of our success stories. It started on 1 July and even though we are not yet three weeks into the month, there is already a significant take-up on the scheme.
The issue of wood for energy would be more appropriately addressed by the Minister for Communications, Energy and Natural Resources. Enterprise Ireland would, of course, support any initiative, however, and if the Deputy has in mind a particular company or project, I would be happy to make arrangements to discuss it with the agency. The broader policy is the responsibility of the Minister, Deputy Rabbitte.
Deputy Finian McGrath raised the issue of outsourcing. It is disappointing that any company would outsource jobs, as happened in Vodafone, but it is a large company and we need to develop opportunities in other parts of its operations. While it is always regrettable to see jobs being lost, we must work with the company to develop new areas. I met the unions recently and they expressed their concerns. I am determined to meet Vodafone to see how we can develop opportunities with this major international company, just as we have successfully done with others. The Government is not in a position to prevent companies from making commercial decisions of that nature.
Written Answers follow Adjournment Debate.