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Dáil Éireann díospóireacht -
Thursday, 23 Jan 2014

Vol. 827 No. 3

Other Questions

Trade Missions

Mick Wallace

Ceist:

6. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation if the perceived benefits of the trade mission to Saudi Arabia are worth the negative consequences of dealing with a regime with such a poor human rights record; and if he will make a statement on the matter. [2958/14]

Saudi Arabia has probably one of the worst human rights records in the world. On the recent trade mission the Taoiseach congratulated Saudi Arabia on its election to the UN Human Rights Council, but did not challenge it on its human rights record. We are not talking about something that happened 30 years ago, but something that is happening today. Is it right to leave all principle outside the door when we participate in a trade mission?

The primary focus of the recent trade mission to the Gulf, as with all trade missions, is to encourage business-to-business links and encourage investment and employment opportunities. I believe that if we want to be effective in addressing human rights issues with countries, we must do it in an appropriate way and at the right opportunity, so that our concerns are taken seriously and acted upon.

Ireland has always been at the forefront internationally in raising human rights issues through bilateral contacts and especially through the European Union and the United Nations. We have never shied away from addressing these issues. We will continue to be a strong advocate for higher global standards that improve human rights, and encourage the highest standards of business conduct and corporate social responsibility.

In recent weeks there have been calls for the Government to raise human rights issues more forcefully on trade and investment missions. This would represent precisely the kind of token gesture that Irish governments have avoided over the years – undermining the missions’ crucial objective of delivering trade and jobs for Ireland, while achieving nothing on human rights. Trade missions are not the place to raise human rights issues effectively.

The trade mission to the Gulf region which the Taoiseach and I led earlier this month, accompanied by 87 Irish companies, is part of a strategy targeting €1 billion in further exports to the region by Irish companies in the medium term. This would represent an increase of €600 million.

The trade mission to the Gulf states including Saudi Arabia saw Irish companies announce the initial outcome of their investment in market development, including the creation of 95 new jobs in Ireland, and new contracts and business developments worth more than €65 million. Further investment, trade and jobs can be expected.

Throughout the trade mission, Irish companies from a wide range of sectors concluded deals, prospected with hundreds of potential buyers, developed relationships with key influencers and networked with local experts and buyers in what was the largest ever Irish trade mission to the Gulf.

The success of our exporters abroad and the support they receive from agencies such as Enterprise Ireland are not traded off against human rights. The Government continues to push for higher standards of human rights around the world. Where these are undermined we seek to have the issues tackled and addressed by the most effective means possible.

Additional information not given on the floor of the House

In this regard, Ireland is an active member of the EU human rights group in Riyadh which co-ordinates EU policy on human rights issues within the kingdom and progresses implementation of the EU’s human rights country strategy for Saudi Arabia.

I believe the cause of human rights can be promoted through trade. Included in EU free-trade agreements, for example, are provisions that promote human rights, labour standards and other issues about which we are rightly concerned. These agreements make provision for committees involving civil society to monitor their operation. This means that our interests in promoting greater opportunities for exporters can work in tandem with promoting higher standards of human and labour rights in the countries with which we trade and invest.

A recent Human Rights Watch report stated:

Saudi Arabia stepped up arrests, trials, and convictions of peaceful dissidents, and forcibly dispersed peaceful demonstrations by citizens in 2013. Authorities continued to violate the rights of 9 million Saudi women and girls and 9 million foreign workers. As in past years, authorities subjected thousands of people to unfair trials and arbitrary detention. In 2013, courts convicted seven human rights defenders and others for peaceful expression or assembly demanding political and human rights reforms.

The Minister says we should use appropriate ways to raise human rights issues and should not make token gestures. However, money talks louder than anything. If we tell these people they should not do certain things but continue to do business with them, do we really think anything will change? Would apartheid have been addressed without the boycott of South Africa? This country supported the war in Afghanistan on the basis that the Taliban was engaged in human rights abuses, despite the fact that the Taliban was supported by the Saudi royal family. Does the Minister believe it is acceptable for us to make our philosophy to suit our financial ambitions?

Earlier in parliamentary session we were talking about the importance of putting resources into emerging markets so that Ireland can be positioned to take advantage of growth opportunities. When we go on trade missions we bring companies that are seeking to create jobs here at home for Irish people. That is a challenge. We have 12.5% unemployment and the growth is shifting to new markets. When we enter free-trade agreements with countries through the EU, each of those agreements seek to have changes in the way they conduct their businesses. There is a long record that shows opening up to business drives changes and that is the approach we take. When we are on a trade mission with representatives of almost 90 companies seeking to do business, it is not appropriate to use that as the occasion to lecture about changes that ought to happen in those countries; that is a time when we are trying to do business. However, there are other fora where we can legitimately put those issues on the agenda, for example through the human rights forum and through the trade negotiations, which is what we do. There is a proven track record that this is the way to achieve change in human rights as well as enhancing integration of peoples and opportunities across the globe.

The Minister says that opening up trade links with these people will change how they do things. How has Saudi Arabia changed how it does things in the past 20 years? As far as I can see nothing is changing. As long as it can do business with everybody it will be under no pressure to change anything. We approved of the EU sanctions on Iran because we wanted to force it to the negotiating table. Why does everybody turn a blind eye to Saudi Arabia? Is it because it has so much money? It would be ridiculous for me to ask if money rules the world - of course it does. There was a time when Ireland would have taken a more ethical stance on such matters. I do not suggest we should not trade with people, but, by God, at least we should not be afraid to raise these issues even if it is on a trade mission. I do not agree with the Minister's argument that we should leave it outside the door when on trade missions, as it would undermine our potential to increase jobs; that is not a good way forward.

We need to consider the experience even in our own country. When we became more open to trade and integration in Europe we dramatically changed human rights in Ireland. The record is there. We saw change come here as a result of much of the integration and trade that occurred between Ireland and the EU. That is the objective. We do not ignore Saudi Arabia, which will be a member of the UN Human Rights Council. In October Ireland made two recommendations during Saudi Arabia's examination under the Council's universal periodic review mechanism. Ireland is not inactive over human rights in countries with which we trade. However, there are two separate tracks and we need to pursue the human rights through the appropriate mechanism. Increasing trade and integration will, over time, drive those changes because if a free-trade agreement is negotiated, as has been done in some Gulf countries, it imposes conditions. That is a sound and tested route to bring change as well as developing mutual opportunity.

Job Creation Data

Jonathan O'Brien

Ceist:

7. Deputy Jonathan O'Brien asked the Minister for Jobs, Enterprise and Innovation the number of jobs created in IDA Ireland-supported enterprises arising from international relocation; and the number of jobs filled by internal transfers within such companies. [2945/14]

How many jobs have been created in IDA Ireland-supported enterprises as a result of international relocation compared with the number of jobs filled by internal transfers within those companies?

The Forfás annual employment survey reports on job gains and losses in companies that are supported by the industrial development agencies. Data are compiled on an annualised basis and aggregated at county level. The information is provided by companies on a confidential basis for statistical purposes only. It is, therefore, not possible to provide the information the Deputy seeks. It should be noted, however, that there is free movement of labour within the EU and persons recruited from outside the EU must comply with employment permit legislation.

Global companies continually examine their markets, supply chains and expansion opportunities, and seek to align them to best advantage. Ireland sometimes loses from such changes such as when companies have excess capacity and sometimes Ireland gains.

Ireland’s availability of skilled labour is one of the primary reasons cited by IDA Ireland’s clients for establishing their operations in this country. Each investment project has a set of unique and specific skills requirements. While some of the skills required will be available from within Ireland, others such as language skills may involve relocation from overseas or a transfer from within existing companies. The ability of Ireland’s skills base to help to support the ongoing evolution of FDI companies in Ireland and allow them to bid for new corporate projects as they arise is critical to maintain and build their long-term employment impact in Ireland. This is true both of the direct jobs created but also indirectly through the downstream jobs impact on Irish sub-suppliers and the economy in general. Through considerable effort by Irish managers and workers, the improved business environment in Ireland and the strong work of IDA Ireland, we are enjoying record growth in foreign direct investment. Our challenge is to ensure we are competitive, particularly in sectors we have targeted with significant growth potential, and work with existing companies to ensure they continually improve their capacity to be leaders in their sectors.

It should be noted that IDA Ireland had a good year last year in bringing jobs to this country, for which it is to be commended. Foreign direct investment is critical to the recovery of the economy. Apple Computers Limited is a significant employer in my constituency. However, what I would like to focus on is not the role and value of IDA Ireland but the companies relocating here. When we hear about companies that are to relocate here, we also hear about the broad number of jobs likely to be created. However, we do not receive any follow up detail of how many of these jobs have been filled by way of internal transfers. We are lacking this information. The Minister mentioned languages as an area in which Ireland does not have the required skills set for some of the companies opting to relocate here. There is a job of work to be done in that regard, particularly by organisations such as Solas. In formulating policy in this area, if we do not have information on the number of jobs filled by way of internal transfer, how are we to grasp the skill sets we need to develop?

We have a good system in place for assessing skills. The high level group on skills forecasting works very closely with Irish and foreign owned companies in identifying skills required. For example, we have, through the Minister for Education and Skills, Deputy Ruairí Quinn, committed to doubling the output of ICT graduates because IT is a key sector.

A US company relocating to Ireland that wishes to bring with it employees from the United States must apply for work permits for them in the normal way, as part of which process it is required to show the posts cannot be filled by people from within the European Union. The work permits process provides us with information on the areas in which there are skills bottlenecks. We have a very good window to where the skills needs are. To be fair, the education system is seeking to respond by way of initiatives such as Springboard and Momentum, as well as the ICT initiative and the apprenticeship review launched earlier this week which provides an opportunity for businesses to identify areas where a new two-year apprenticeship could be developed. We have a good window to the challenges encountered in this area.

We are lacking in information on internal transfers within companies that relocate here. The Minister has said that information is not available, but he has also said US companies relocating to Ireland must apply for work permits for employees they propose to bring with them from the United States. Is it possible to get that information? We know how many jobs are being created, but we do not know how many of them are being filled by way of internal transfers. It is important we have that information. Can work be done with the companies concerned to get that information?

A person who comes to work in Ireland becomes part of a community and pays tax here. We should not pretend that it is unacceptable for a company relocating to Ireland to bring with it employees from its head office as part of that relocation. While such companies may start with a core, they quickly become Irish-led. One of the reasons they come is the talent available here. That is key.

We do have data for work permits. The number of work permits issued has fallen dramatically, from 23,000 at its peak to 3,000 last year. Huge numbers of employees from non-EU countries are not coming here and those who are brought in have particular skill sets. Almost 1,700 of the 3,000 jobs for which work permits were granted last year were in the IT sector. It is possible for us to identify the positions companies are filling by way of internal transfers or recruitment from outside the European Union in order to meet their needs. These are the skills on which we need to focus. Our target is to become more self-reliant in these areas.

Departmental Reports

Dara Calleary

Ceist:

8. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his plans for implementing the recommendations of the Entrepreneurship Forum; and if he will make a statement on the matter. [2963/14]

The report of the Entrepreneurship Forum chaired by Mr. Sean O'Sullivan was leaked to the Irish Independent at the beginning of the year. I presume the Minister will host some type of singing and dancing event to officially launch what has been already leaked. Perhaps the Taoiseach who is on his annual jaunt to Davos will come up with some gem while there. Does the Minister intend to implement the forum's report which contains some interesting and challenging recommendations around the taxation treatment of entrepreneurs, in particular. Has he had an opportunity to consider that matter and engaged with the Minister for Finance, Deputy Michael Noonan, on how tax entrepreneurs are taxed here and how that model could be changed. I accept that it is too soon to be talking about budgets, but does the Minister have a timeline for implementation of the report?

The report will be launched today. It is a good document which contains inputs, ideas and recommendations which will make a valuable contribution to the development of the Government's national entrepreneurship policy statement which the Minister will shortly bring to the Government for consideration and approval. Many of the forum's recommendations fall within the responsibility of the Department of Jobs, Enterprise and Innovation and will be immediately assessed. Some of the 69 recommendations contained in the report are good. Others fall within the remit of other Departments. The Minister is consulting the Ministers concerned.

A feasibility and operational assessment is required to facilitate informed decision-making on the recommendations and their suitability for inclusion in the forthcoming national entrepreneurship policy statement. The Action Plan for Jobs 2013 is about entrepreneurship, in respect of which new local enterprise offices, LEO, are being established. Many of the recommendations, including those on mentoring pools of talent, encouragement of developments in third level colleges and collaboration, are well suited to the roll-out of the local enterprise offices in each county. Many of these recommendations will not impact financially on the State and will be assessed by the Minister.

I thank Mr. Sean O'Sullivan and the forum for their outstanding report. Many of its recommendations which have been arrived at from a thinking outside the box perspective apply across government and will be closely monitored and assessed. Those that can be implemented will be implemented quickly.

I join the Minister of State in thanking Mr. Sean O'Sullivan for his work. Some of the recommendations leaked include that the sharing of maternity leave between partners be allowed, an issue on which Fianna Fáil brought forward a Bill last year which was voted down by the Government; the tightening of rules around banks using personal guarantees in lending, which I am sure everybody would welcome, given what has happened during the past few years; and that Ireland become a European trade hub for China. A number of projects in this regard have been floating around for a number of years. This is the type of agenda that could be driven forward relatively quickly. Relevant to this is whether the Department has the necessary resources in China. Is there a timeline for delivery of the recommendations contained in the report? It would be a shame if the recommendations made by someone with the expertise of Mr. O'Sullivan and his team on mentoring, an issue on which Deputy Áine Collins has done a great deal of work, and the involvement of unemployed persons entrepreneurship were not implemented.

Will there be a timeline for delivery? This time next year will we be able to discuss exactly what has been done?

The Action Plan for Jobs is driven by the Minister, Deputy Bruton, and the Taoiseach, and all of the recommendations are dealt with each year. The new action plan to be announced shortly will incorporate several very effective ideas. As the report of the entrepreneurship forum highlights, the development of entrepreneurs in Ireland is not confined to the State's support system. Many ideas emerge outside of the State's management structures. Everybody has a role to play in nurturing, connecting, inspiring, celebrating and expanding our entrepreneurship policy and in developing solutions to the challenges of creating a truly entrepreneurial Ireland. Collaboration is necessary among all stakeholders in the public sector, industry and representative bodies.

The action plan is driven by the entrepreneurship budget, which the Minister introduced to encourage enterprise. The new revolution in business and the backbone of this economy are small companies. Yesterday I visited the National College of Art and Design, where I met a number of bright young people with great new ideas. They were entrepreneurial in every sense. The real action by this Government is to encourage enterprise. Enterprise Ireland, the local enterprise offices and all the State bodies under the Department of Jobs, Enterprise and Innovation are focused on supporting high potential start-up companies.

I share the Minister of State's objective but the challenge for small Irish companies is funding. The funding for county enterprise boards in 2013 was €18 million, while IDA client companies received €89 million. That €89 million is well spent but the figure will have to be considerably higher if we want to see more companies of the type that the Minister of State encountered yesterday. I followed his Twitter feed as he described several very innovative companies. They will be starved of resources, however. The local enterprise offices are the most anticipated development since I do not know when but, while I know the Minister of State is personally committed to ensuring they will deliver, when we revisit the issue this time next year I hope that some of the recommendations from the entrepreneurship forum that do not require legislative change will have been implemented without delay as a statement of intent on the part of the Government that it is taking the report and, more important, the people who compiled it seriously. It could, for example, accept our proposal on shared paternity leave.

The Minister, Deputy Bruton, is taking on board the forum's key recommendations and he will carefully assess the actions required by his Department before he brings them to the Government advisory group on small business. The new Action Plan for Jobs already incorporates some of these recommendations and we are getting there year by year. I thank Sean O'Sullivan for his work on coming up with good ideas that do not cost large sums of money and attract the involvement of business people. For example, successful business people could mentor those who are starting up companies. By this means people can give something back to the State. I am very impressed by the 69 recommendations in the report. All of them will be assessed and immediate action will be taken in respect of some of them.

Action Plan for Jobs

Colm Keaveney

Ceist:

9. Deputy Colm Keaveney asked the Minister for Jobs, Enterprise and Innovation when the Action Plan for Jobs 2014 will be published; if it will contain measures to help persons with a disability; and if he will make a statement on the matter. [2925/14]

Colm Keaveney

Ceist:

30. Deputy Colm Keaveney asked the Minister for Jobs, Enterprise and Innovation the way his Department's measures were undertaken in the Action Plan for Jobs 2013 to help persons with a disability; and if he will make a statement on the matter. [2926/14]

The Minister will be aware that the 2013 action plan does not contain specific provisions to improve employment opportunities for people with a disability.

I propose to take Questions Nos. 9 and 30 together.

The Action Plan for Jobs is a whole-of-Government programme which includes commitments from all Departments and a significant number of State agencies to take actions to support job creation. The aim of the action plan is to create a supportive operating environment for businesses in order to allow employment to grow across all sectors, and for people of all abilities. The plan is working.

Apart from the measures which are aimed at increasing employment across the economy as a whole, action 240 of the 2013 action plan is specifically aimed at promoting the employability of groups that have experienced labour market disadvantage, including those with disabilities. This action is being progressed by the Equality Authority, which comes under the remit of the Minister for Justice and Equality. An update on this commitment was included in the second progress report on the 2013 action plan, which is available on my Department’s website. A further update will be provided in the fourth progress report, which will be published shortly.

The Department of Social Protection also provides a range of labour market services for people with disabilities, including training and employment programmes. In more general terms, many of the schemes which have been introduced by the Government to help people progress into employment, such as the new JobsPlus scheme and the JobBridge internship programme, are open to people with disabilities.

I am currently finalising the Action Plan for Jobs 2014 for the Government’s approval and I hope it will include new actions to support the employment of people with disabilities. My Department’s officials had a very constructive meeting recently with the National Disability Authority on how actions to support the employment of people with disabilities could be integrated in this year’s plan, based on the authority’s own activities and objectives for 2014. The Action Plan for Jobs 2014 will be published shortly, following approval by the Government.

I am sure the Minister is aware that only 603 young people between the age of 20 and 24 years who have intellectual disabilities are at work. People with disabilities have a right to work and to the dignity that work provides, and their exclusion from employment increases their dependency on the social welfare budget. As the lead Minister for job creation, can he give an assurance that he will include in the 2014 action plan measures to provide greater accessibility and support to people with disabilities to allow them the dignity of being active citizens by participating in employment?

As I indicated earlier, actions were implemented last year and we will take further action this year. Programmes are in place to help people with disabilities take advantage of employment opportunities. Many of these programmes are administered through the Department of Social Protection and, specifically, INTREO. Available supports include the employability service, training programmes and the wage subsidy scheme. We have sought to build on these programmes in the 2013 plan. One area on which we focused was technical support for equality mainstreaming for providers of further education and training and labour market programmes. Funding was approved for six equality mainstreaming projects in June 2013. The flow of work continues and we need to use the action plan for jobs as a whole of Government initiative to build on the progress made thus far.

According to Inclusion Ireland's budget submission, only 21% of adults with disabilities who were capable of work were participating in the economy, compared to 50% of the general population. Given the measures introduced to date under the programme for Government, will the action plan for 2014 be more ambitious in securing opportunities for people with disabilities to participate actively in the economy?

I agree with the Deputy. In no area of our employment strategy are we happy that we have reached our desired destination. It must be acknowledged, however, that enterprise has created more than 58,000 job opportunities over the past 12 months, or 62,000 if one nets out the decline in the public sector. Clearly that changes the environment by creating a better arena in which people with disabilities can succeed. We are certainly not content with our current position in respect of our job targets or integrating people into opportunities, however.

Job Creation

Bernard Durkan

Ceist:

10. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation having regard to the experience to date, the extent to which he expects new, extra job opportunities to emerge in the coming year with particular reference to the ongoing need to maximise the potential in the manufacturing and service sectors through the medium of innovation both in respect of the indigenous and foreign direct investment sectors; the degree to which he expects employment prospects to emerge for both males and females over the next three years with consequent impact on the live register; and if he will make a statement on the matter. [2896/14]

Michael McGrath

Ceist:

11. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation the measures being taken to achieve the target of increasing employment in the manufacturing sector; and if he will make a statement on the matter. [2968/14]

The purpose of this question is to emphasise the need to maximise the job opportunities in both the manufacturing and services sectors for males and females, and for the young, at a competitive time internationally.

I propose to take Questions Nos. 10 and 11 together.

Overall, in 2014, we have set a target for gross job creation across the enterprise agencies of 27,500: 13,000 in IDA Ireland, 12,000 in Enterprise Ireland, and 2,500 for the LEOs. Targets are not set for individual sectors or the gender breakdown of job opportunities. However, I intend placing a particular focus on manufacturing in 2014.

The sector had lost 50,000 jobs in the years up to 2010. It has seen a modest return to growth in employment over the past few years, with an additional 8,000 jobs having been created in the past year alone. There are now 213,600 directly employed in the sector in Ireland and when account is taken of indirect jobs supported, it now supports more than 427,000.

The Forfás strategy for the manufacturing sector, which the Minister, Deputy Richard Bruton, commissioned, identified that an additional 20,000 jobs can be created in the sector by 2016. A complementary report was also published on skills needs by the expert group on future skills needs and Forfás.

Arising from the strategy and the skills report, there are now a range of initiatives in hand by the Department and relevant agencies to drive the 2016 target, with key actions from both reports having been incorporated into the Action Plan for Jobs. The manufacturing development forum is helping to address the key issues arising from the strategy recommendations which include delivering a national step change initiative to strengthen Ireland's manufacturing base across all firms, addressing perceptions of the sector as a career choice and removing barriers to the competitiveness of the sector in Ireland.

As the Deputy will realise, innovation is a key characteristic of growing companies in both the manufacturing and services sectors, but it is not possible to disaggregate the contribution made by innovation towards overall job creation in those sectors. Enterprise Ireland, IDA Ireland and Science Foundation Ireland provide a range of innovation and technology development programmes that deliver financial, technical and experiential support. These programmes help companies become more innovative and encourage and support competitiveness.

Taken together, we are confident that the measures I have outlined above will help grow sales and exports in the manufacturing and services sectors which in turn will lead to sustainable employment and a reduction in the live register.

I thank the Minister of State for the comprehensive reply.

Is cognisance taken of deficiencies in telecommunications in various parts of the country in terms of the ability of the IT sector to meet modern requirements to the fullest possible extent? To what extent does the inclusion of innovation and technologically laden enterprises rely on an adequate, efficient, modern and fast telecommunications system? Have those issues been researched fully and addressed to the extent of satisfying possible investors, whether they be indigenous or overseas?

No doubt cognisance would have to be taken of parts of the country where there are deficiencies. The Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, announced this morning an initiative to address broadband needs. In those parts of the country where, for instance, there is mainly familial-type manufacturing businesses that operate outside of larger conurbations, there are certain deficits but we are confident that those deficits will be addressed in the short term.

Written Answers follow Adjournment.
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