Vol. 834 No. 3
1. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the way in which he will address the falling level of employment in the 15 to 34 age bracket shown in the recent quarterly national household survey report; and if he will make a statement on the matter. [12292/14]
Tá a fhios agam gur inniu Lá na Gaeilge agus beimid ag baint úsáide as an nGaeilge agus as an mBéarla. We welcome the improvement in the employment figures, but when one looks at the breakdown and the population figures, there were 13,500 fewer people aged between 15 and 34 employed compared with 12 months previously. The number of 15 to 24 year olds in the workforce fell by 11,900 and there is a further drop of 24,700 in the number of people aged 25 to 34. We raised the issue recently with the Minister in the Joint Committee on Jobs, Enterprise and Innovation. We have a problem in the population cohort I indicated. At the time the Minister attributed it to demographic changes but the reality is that emigration is a key issue and I look forward to discussing his proposals in the area.
I recognise that people in the 15 to 34 age group have been seriously affected by job losses in recent years. The latest quarterly national household survey shows that in spite of the creation of an additional 61,000 jobs in the economy in the year to the end of 2013, employment among 15 to 34 year olds decreased by 13,800 year on year. We clearly have a long way to go but in the past year employment increased by 3.3% and it was the first year where every region demonstrated employment growth. There has been an increase of more than 1,200 jobs per week in the private sector compared with more than 1,600 per week being lost in that earlier period. Clearly, the best way to address the needs of this age group is to continue our efforts to support job creation and help those who are unemployed to get back to work. The Government continues to work on those twin objectives through the combined efforts of Action Plan for Jobs and Pathways to Work.
A number of actions in both strategies are targeted at, or amenable to, younger people. These include the JobBridge programme, the youth guarantee, MOMENTUM and Springboard training courses, and the ICT Action Plan. These initiatives are collectively delivered by the Department of Social Protection and the Department of Education and Skills. The Government is taking steps to increase the number of places and make other enhancements to those schemes for younger people, where possible. For instance, Action Plan for Jobs includes a commitment to ring-fence 2,000 places on the MOMENTUM programme for those under 25 years of age.
For my Department’s part, we are putting a particular focus this year on supporting entrepreneurship and will increase the range of supports available to entrepreneurs, including young entrepreneurs. We know that start-up businesses create two thirds of all new jobs and we need to support people with good ideas who can create those jobs. Action Plan for Jobs 2014 also places a focus on supporting the recovery of the domestic economy in areas such as construction, retail and tourism where there is potential for significant jobs growth as the economy recovers.
Additional information not given on the floor of the House
As a Government, we recognise that too many people, including younger people, have yet to see evidence of economic recovery in their own lives. That is why we have designated 2014 to be the year for jobs. All of the actions we are taking are aimed at supporting people to enter or re-enter employment, and at providing alternatives for those who might be considering emigration.
Employment rose by 3.3% but average weekly earnings are down by 0.6%. The income tax figures for the first two months of the year are flat compared with the same period in 2013. If we have the kind of employment growth the Minister is trumpeting constantly, there should be a similar growth in income tax receipts. This shows the jobs being created are paying less and that is still driving many people out of the country.
Almost half the additional jobs are self-employed. I welcome that people are taking that step but we will not be able to make a call on their long-term sustainability for a number of years in terms of income and job creation potential.
In the past three years 105,000 people left the country. We have a higher rate of emigration in this country than in the EU 15. That seems to be the response to this cohort. We need a specific, targeted initiative involving entrepreneurship but also involving employment creation because not everybody wants to be an entrepreneur. There must be a form of employment creation programme focused on this generation - the golden generation - that will lead the recovery if young people are given the chance to stay.
I do not accept the thesis the Deputy has put forward that people who set up their own businesses are in some way inferior in terms of job creation. We want to encourage entrepreneurship. It is a welcome indication that there is a high level of start-up and people setting up as self employed. High levels of company formation are clearly also evident in the figures.
I fully admit that migration is far too high. The net migration of 35,000 last year is too high. It has been at that level for a number of years. The only sustainable response to migration is employment creation. The Deputy must acknowledge, despite his perusing of income tax figures to try find something negative, the truth that in the private sector we created 66,500 jobs in the past 12 months. That is a really significant achievement by enterprise in Ireland. We need to build on that but we also need to ensure young people get a fair crack of the whip because inevitably the doors were closed to younger people and that is why JobBridge, Jobs Plus and other such schemes are aimed at trying to reskill and get people, in particular in those younger age groups, into opportunities.
I am not making any thesis that anyone who sets up their own business are inferior. What the Minister read into my argument in his response was that half of those jobs he claimed he created were in fact created by people who have the courage and the ability to set up their own company. If one takes those figures out of it, then 33,000 jobs were created. The fact is that the jobs are lower paid and incomes are not rising. We have to offer some sort of alternative. The Minister needs to put a focused strategy in place involving the State agencies and local enterprise offices to give this age cohort the support it needs and the encouragement that there is a future for it on this island.
That is exactly what we are doing. This year we will put a focus on entrepreneurship, particularly youth entrepreneurship. Last year, we focused on women starting up their own businesses and we got a strong response to that. One cannot discount people who set up their own business and pretend these are not jobs. These are people working in the economy, creating wealth and opportunity. They have to be nurtured in the same way as people in paid employment taken on by established enterprises. They are both equally important and we try to develop them together.
It should not be abused by the Minister so as to massage the figures, however.
2. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the level of investment that has been made into small to medium-sized Irish manufacturers and internationally traded firms by his Department for each of the past five years; and the way this compares to the total investment into foreign direct investment in the State over each of the past five years. [12290/14]
The Oireachtas Library Service carried out important research which showed that at the end of the third quarter in 2013, 3% - 60,000 people - of the employment figures were actually on activation schemes. There is not a focus on small and medium-sized enterprises, SMEs, as there should be. Foreign direct investment is still the golden child of the Government while SMEs are left behind.
In the past five years, Enterprise Ireland paid out almost €520 million to its client companies: €134.02 million in 2009; €167.28 million in 2010; €80.21 million in 2011; €69.57 million in 2012 and €68.84 million in 2013. It has also invested €115 million through the seed and venture capital schemes, development capital scheme and the innovation fund Ireland between 2009 and 2013. This breaks down as €16 million in 2009; €16 million in 2010; €20 million in 2011; €30 million in 2012 and €33.5 million in 2013. These funds leverage an additional multiple amount from private sources in Irish enterprises. The county and city enterprise boards paid out €154.8 million in the past five years to small and micro Irish businesses. IDA Ireland paid just over €472 million in grant aid to its client companies: €80.87 million in 2009; €120.44 million in 2010; €96.76 million in 2011 €89.27 million in 2012 and €84.95 million in 2013. Grants figures for the agencies in respect of 2009 and 2010 include payments made under the temporary employment subsidy scheme, as well as significant payment by IDA Ireland towards the National Institute for Bioprocessing Research and Training, NIBRT, project.
In overall terms, the total expenditure supporting Irish-owned business is clearly considerably greater than that spent on foreign-owned companies. Generally, the range of supports available to Irish-owned companies is far wider, spanning start-up, innovation, process improvement, management development, export support graduate placement, etc, many of which are not appropriate to overseas investors. Spending on all companies is subject to state-aid rules and to careful evaluation by the respective agency to ensure value is obtained for taxpayers' investment in jobs, exports and enterprise development.
I am satisfied that moneys invested are spent well and have promoted the recovery in employment in export-oriented sectors with a good balance between Irish and overseas enterprise.
I am afraid there is not a good balance between the investment in indigenous and overseas business. Almost 70% of the people employed in the State are employed by SMEs. Despite this, the major focus of this Government and the previous Government has been on foreign direct investment. I accept this sector is important as it makes up 90% of our exports. However, there is vulnerability inherent in it. By its very nature, foreign direct investment is mobile while indigenous SMEs are not, making the latter more sustainable in the long term. Strategically, logically and even patriotically, this Government needs to do more for SMEs. They have carried out major sacrifices over the past several years. When a foreign direct investment company closes or sheds jobs, it is in the headlines but it is not the same for SMEs. Those which have survived have not been given the necessary supports yet by the Government.
One can see from the figures that overall State agency spending on Irish-owned companies is approximately €770 million versus €470 million for foreign-owned companies. The Government is spending substantially more on indigenous companies. These figures are for my Department and do not take into account State spending on fisheries, etc.
The policy of many Governments over the years has been that grant support is confined to export-oriented companies. We do not provide grant supports to companies trading in the domestic economy. Employment in the two sectors is roughly equal. Despite this, we are clearly spending more on Irish-owned companies, which is how it should be.
I agree with the Deputy that we need to develop a strong indigenous engine of growth. That is why we are looking at new ways in manufacturing and entrepreneurship.
The ratio of State investment into indigenous versus foreign direct investment is not equivalent to the ratio of employment. In the indigenous sector it is far higher than its proportionate level of investment by the Government. The Minister mentioned the efforts the Government makes towards export-oriented companies. However, export performance is still poor among SMEs. Exports from this sector to Germany, the Benelux, Italy and Spain, an area four times the size of Britain, only come to 40% of the total exported to Britain. Outside of the British market, SMEs are still very weak. The non-exporting sector, which accounts for 60% of the aggregate investment in indigenous companies in this State, is not being leveraged to help these businesses. The majority of investment, trade and business among indigenous businesses is nowhere near exports. This is where the Government needs to focus its efforts.
Irish-owned companies are doing very well in export markets. The previous Government set a target to increase Irish-owned exports by 33% by 2015. We actually achieved that last year and we need to build on it. One has to distinguish between the fact that we support with grants through Enterprise Ireland companies which are export-oriented but do not do the same for domestic retail operations for the good reason that they are largely in competition with others. It is not a fair comparison that the Deputy seeks to make. One of the new mandates of the local enterprise offices will be to look at that wider domestic economy, to give non-grant supports like mentoring so as to encourage an enterprise culture. I recognise the Deputy’s point that we need to exploit more the potential of the domestic economy.
3. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation his position on whether an investor-State dispute settlement mechanism should be included in the transatlantic trade and investment partnership currently being negotiated between the EU and the US; and if he will make a statement on the matter. [12330/14]
Most commentators agree the transatlantic trade and investment partnership will see the erosion of social protection, a process that has been in full swing since the advent of neoliberalism in the early 1970s.
It would appear that the interests of private business, the markets and finance are being put before the interests of the people, the environment and our democracy.
To be honest, I do not think fair commentators would conclude that. All member states in the European Union agreed to open negotiations with the US for a trade agreement in the interests of promoting growth and employment in their economies. They also made it very clear that they are determined to maintain their social protection standards, and these are copper-fastened into the mandate that has been issued. The Deputy's question on the Order Paper was slightly different, so perhaps I will give him the answer to that as well.
I am interested.
The EU Council of Ministers gave a mandate to the EU Commission to negotiate the Transatlantic Trade and Investment Partnership. The scope of that mandate is wide ranging and allows the EU Commission to enter into negotiations with the US on many issues, including investor-state dispute settlement mechanisms, which was the subject of the Deputy's written question.
A few weeks ago, the EU Commissioner for trade, Mr. Karel De Gucht, announced his decision to consult the public on the investment provisions of a future Transatlantic Trade and Investment Partnership. I understand that the formal consultation period is expected to be launched this month, will run for three months, and will include draft text on investment protection and investor-state dispute settlement. I am conscious of the issues arising in respect of investor-state dispute settlement. It is clear that member states must retain the right to regulate in key public policy areas, such as public health, environmental and social protection, and this must continue to be the case. I therefore welcome the Commissioner’s decision on public consultation, and I look forward to the outcome of the consultation process, which should inform the EU approach to negotiations with the US in this matter.
Investor protection agreements are important because they help to ensure against unfair and discriminatory treatment faced by our companies abroad. These are principles that underpin the rule of law in the EU and are the benchmarks that we would like to see well established in countries where our companies trade and invest. It is for this reason that bilateral investment protection agreements are very common not only in the EU where over 1,400 such agreements are in place, but also around the world where over 2,800 such agreements are in place among both developed and developing countries alike.
While convinced of their usefulness in an international context, I recognise that as part of the wider public consultation process being undertaken by the Commission, we have to ensure that the right to claim against unfair treatment is demonstrably balanced by procedures that prevent abuse and claims that are frivolous or without merit.
The European Commission's own report argues that the trade deal will entrench European inequality between regions, and has conceded that there are legitimate concerns that those workers who lose their jobs as a result of TTIP will find it difficult to secure other employment. The growth in employment figures provided by the European Commission and by the Government has been shown by numerous scholars to be highly unrealistic.
I would like to read an extract of a letter sent to the British Secretary of State, Vince Cable, a few weeks ago that was signed by trade union leaders and NGOs, highlighting the most destructive aspects of the trade deal:
The proposed investor state dispute settlement would allow corporations additional legal power over government policy... Negotiations on investment rights in public services and procurement would limit a future government’s ability to oversee and regulate vital services like health and education. Harmonisation talks – the very centre of the negotiation – are being used to lower standards on a range of areas from environmental protection to health and safety. This has been pushed by corporate lobbyists.
The issue of whether any trade agreement can have an impact on some regions more than others is undoubtedly true. The reason countries seek to get involved in open trade is that on balance, they make gains. There is a possibility that some regions might be adversely affected. For example, if freer trade is opened up in motor cars and a country has a strong motor car industry, there is the possibility that such an industry will be affected if it has had high protection. Equally, that is balanced by the opportunities opened up for other businesses.
Free trade has winners and losers, but it has always been the reality that free trade opens up more opportunities and enhances wealth and job opportunities over time.
There is little doubt that people are worried about reduction in the Government's say in these matters, if this deal were to go through. I would like to draw the Minister's attention to three points raised by George Monbiot in The Guardian this week, which are things that he would recommend.
First, all negotiating positions, on both sides, would be released to the public as soon as they are tabled. Then, instead of being treated like patronised morons, we could debate these positions and consider their impacts. Secondly, every chapter of the agreement would be subject to a separate vote in the European parliament. At present the parliament will be invited only to adopt or reject the whole package... Thirdly, TTIP would contain a sunset clause. After five years it would be reconsidered. If it has failed to live up to its promise of enhanced economic performance, or if it reduces public safety or public welfare, it could then be scrapped.
What does the Minister think of those three proposals?
To go back to the earlier question on why there is investment protection, the truth is that some countries which enter into trade agreements could introduce discriminatory rules aimed at a particular company because it was a non-national company. In some cases, we have had outright expropriation of companies that invested in a country. The idea of these investment protection treaties is to give some certainty to a company which decides to invest in a particular regime, where perhaps the domestic law is weak or not well enforced. The treaties are absolutely not designed to undermine the capacity of countries to provide public policy protections in different areas, and that is very explicit.
A worry arose after the Australian Government brought in plain packaging for cigarettes. Some tobacco companies have chosen to use some of these agreements as a way of trying to undermine that. Those cases have not yet been heard, and they are choosing to use the WTO and other vehicles of international agreements to try to overturn the Australian Government's decision. However, we have been very clear. We are not going to enter into an investment treaty agreement that could be exposed to that kind of risk, and the EU is taking action to try to improve the way that arbitration works to give better assurance to the public on that front.
What does the Minister think of voting separately on these issue in the European Parliament?
We have to move on.
The Deputy should have put that into the original question and if we had more time, I would have answered that.
I will send the questions to the Minister.
4. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the progress that has been made in implementing the recommendations of the Forfás strategy for the construction sector; and if he will make a statement on the matter. [12293/14]
This year's version of the jobs action plan acknowledges that the construction sector has, by international comparison, overcorrected and is now operating below its long-term sustainable level. What is the Minister's plans for employment creation in this area?
The Forfás report on Ireland’s construction sector was published last July and presents an outlook for the sector to 2015, based on known and anticipated demands. The report includes a number of proposed actions aimed at generating more certainty in the domestic market, removing constraints and obstacles, and ensuring that the sector is equipped and capable of delivering innovative solutions in both domestic and overseas markets. Based on European comparisons and long-term trends for Ireland over the past 30 years, the Forfás report considers that it is plausible that Ireland could sustain a construction sector equivalent to approximately 12% of GNP, compared to 6.4% of GNP in 2013.
The Action Plan for Jobs also includes a suite of measures aimed at ensuring proper planning and sustainable development, supporting the expansion of construction firms into international markets, and strengthening public confidence in the sector. Among the measures that have been implemented are measures in the 2014 budget for home renovations and living cities; implementation of public private partnerships; the roll-out of the stimulus package, for example, the funding of the new children’s hospital; the decision of the IDA to construct buildings in 2014 in Waterford, Athlone and Letterkenny; the continuing work of NAMA to support recovery in the sector; and the active support of Enterprise Ireland for construction sector firms to improve technology and export capability. The Government is also making progress with 70 major school projects in 2014 and expanding the energy efficiency retrofit programme.
The Action Plan for Jobs outlines additional actions for the construction and property sector. In addition, the Government has committed to a new strategy for the construction sector, which will be published shortly. A more detailed set of proposals will be available to the Deputy shortly.
The Action Plan for Jobs 2013 referred a great deal to the construction sector but when we put a question to the Minister at the end of January to ascertain employment creation in that sector in 2013, he was unable to provide a figure because it was not being monitored. Last July the Forfás strategy stated that a consultation and co-ordination group should be established under the auspices of the Department of the Taoiseach but that has yet to be established.
The Minister mentioned the State building programme but the procurement rules which apply to that building programme are putting construction firms out of business. I know it is not the Minister's area but the procurement rules are a serious impediment to job creation and are costing jobs. Yesterday we had the statements on the local authority housing sector on which there has been no progress, even though there is huge opportunity and huge need. There is much rhetoric and spin but a lot of things are happening in spite of the Government's strategy. When will we see focused job creation ensuring that the capital programme of every Department is fully spent and not underspent as was the case last year?
On the employment front, construction during 2013 increased for the first time in six years, although it was a small increase. The last quarter was weak, with the previous one being stronger. Part of that may be attributable to poor weather during that quarter. There seems to be opportunity emerging. The Taoiseach has been central to co-ordinating the new strategy, which will be published. That strategy has been co-ordinated in the Taoiseach's office and will be published within weeks. The Taoiseach has sought a response from all Departments to support opportunities in this sector.
I agree with the Deputy that procurement is an important area but public procurement has been constrained by the financial difficulties the country has faced. Some of the innovative approach has been to try to fund procurement, partly off balance sheet, through the likes of the sale of the lottery franchise to fund the national children's hospital and the use of public private partnerships. Innovative approaches are being developed to fund public projects and we will see more of that in the construction plan.
To pick up on the last point, the procurement difficulties have nothing to do with the financial problems we have. They relate to contracts being awarded. The procurement laws and rules are driving a lot of companies out of business. Many companies, in particular regionally-based companies which have employment potential, are not in a position to bid. I do not know if the Minister has advanced knowledge of the strategy but is there an area about opening up procurement rules to allow smaller companies, which have job creation potential and which employ people in the same way as other companies, to get a share of those contracts? Unless the procurement rules are changed there will be very little employment value in the new contracts coming down the line.
There are a number of things which are already in the Action Plan for Jobs, such as the new director of public procurement reviewing the contract letters issued in terms of public procurement. A fresh look is being taken at whether smaller businesses, SMEs, are getting a fair crack. Equally, the Deputy will see that in the water contract, there was an unbundling of the contract to try to give more contractors an opportunity. Social clauses are being examined to see if there is the possibility to include requirements in respect of recruitment off the live register. A number of areas are trying to open up public procurement to give more opportunities to individuals and to SMEs.
5. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the number of jobs that have been created in each county in the State by IDA Ireland companies that were new to Ireland in 2013. [12291/14]
Delivery of the Government's enterprise policy is seriously uneven, with the development of a very clear two-tier economy. People in the Border area, the midlands and the west are far more likely to be in poverty, to be unemployed and to have someone in their family emigrate. The last census saw a population increase but these areas saw a population decrease. The National Youth Council of Ireland reckoned that 51% of young people between the ages of 18 and 24 would consider emigration but Irish Rural Link said that nine out of ten of the people to whom it spoke were considering emigration.
The question asked does not relate to that specific issue. It asked about the counties to which new first-time investments by IDA Ireland were attracted.
It is all the one. It is Government policy.
New investment in respect of the IDA Ireland probably represents perhaps 0.25% of employment in the whole country, so focusing on a tiny proportion does not address the whole issue of regional development, something to which we can return.
The Forfás annual employment survey reports on the numbers of jobs gained and lost in the enterprise development agencies' client companies. During 2013, there were 13,367 gross new jobs - 7,071 net new jobs - created in IDA Ireland client companies. This is the fourth consecutive year of jobs growth in IDA Ireland client companies.
Details of the number of jobs created in IDA Ireland client companies during 2013 on a county-by-county basis are set out in the tabular statement. Information is aggregated on a county basis but because information is provided by client companies on a confidential basis for statistical purposes only, it is not possible for reasons of client confidentiality to provide a breakdown in respect of individual companies to identify those that were new to Ireland in 2013.
During 2013, Ireland won 164 foreign direct investment projects, 78 of which were companies investing in Ireland for the first time, representing a rise of 18% on the previous year. First time investments were secured from corporations across the portfolio, including from Qualcomm, Airbnb, Tripadvisor, Regeneron, Huawei, FireEye, Grifols, Alexion and Acorn Direct Marketing. There was also a strong presence of emerging fast growth companies in the investment wins in 2013, including Squarespace, 10gen, Culture Translate, AdRoll, Storage Craft, Qualtrics, Zendesk, Quantcast and Etsy.
Additional information not given on the floor of the House
During 2013, of the 78 new name investments won only some of which were announced, by far the greatest number of investments were for Dublin with 55 investments. The spread around the rest of the country was eight for Cork, five for Limerick, two for Waterford and one each for Cavan, Louth, Wexford, Galway, Kerry, Westmeath, Laois and Sligo. The 78 new name investments won by IDA Ireland in 2013 have potential to create approximately 3,500 jobs over a three-year to five-year period. The actual job delivery from these projects will be measured in the Forfás annual employment surveys over that same period.
In order to complement IDA Ireland's efforts to attract more fast-growing emerging companies to Ireland and to focus on generating projects from small and medium sized enterprises, the Government announced the Succeed in Ireland initiative in the 2012 Action Plan for Jobs. Many of the projects delivered so far by the initiative will be located in regional towns which would not ordinarily be considered by large companies of the type usually attracted by IDA Ireland and the same is true of many of the projects currently in the pipeline. To date, 14 projects have been approved under the scheme with the potential to create 341 jobs.
Table showing number of new jobs created in IDA Ireland client companies in 2013.
|
County |
New Jobs Created (Gross Gains 2013 |
|
Carlow |
91 |
|
Cavan |
15 |
|
Clare |
15 |
|
Cork |
2,143 |
|
Donegal |
177 |
|
Dublin |
6,862 |
|
Galway |
1,098 |
|
Kerry |
101 |
|
Kildare |
276 |
|
Kilkenny |
80 |
|
Laois |
0 |
|
Leitrim |
31 |
|
Limerick |
560 |
|
Longford |
25 |
|
Louth |
595 |
|
Mayo |
242 |
|
Meath |
68 |
|
Monaghan |
29 |
|
Offaly |
21 |
|
Roscommon |
28 |
|
Sligo |
184 |
|
Tipperary North |
21 |
|
Tipperary South |
180 |
|
Waterford |
172 |
|
Westmeath |
132 |
|
Wexford |
149 |
|
Wicklow |
72 |
|
Total |
13,367 |
The new way questions are formulated makes it very difficult for a Minister to give an answer and for a Deputy to ask a question. Everybody is rushing to get his or her words out and it is not conducive to proper debate.
The Minister said the question I asked is different from the written one. They are one and the same because, as the Minister said, FDI only produces a small proportion of the actual jobs in society. That is a given and an argument we have been making. New companies make up a smaller proportion. Most of the FDI jobs are come from existing companies which are expanding. If we do not get new companies into certain areas, they will not have the ability to create new jobs in the future.
Some 68 jobs were created in County Meath last year while approximately 550 were created in County Kildare, 240 in County Mayo and 200-odd in County Louth. County Kildare now has ten times the number of IDA Ireland jobs compared to County Meath. There is a yawning gap across the State between certain sections of society in regard to where the jobs are going.
The original objective in the Action Plan for Jobs was that 50% of jobs would be outside Cork and Dublin but we saw how this collapsed to 23% in 2012. Granted there was a small increase last year but this is not-----
Thank you, Deputy. I will come back to you.
If we want to have a debate about regional development, we have to focus on the competitive advantage of a region. Having the debate about how we develop a regional strategy in the way the Deputy seeks to focus, which is on new emerging companies which, as he knows, are predominantly in the digital space, the expectation is that they will get a regional spread and that there will be one in different towns and villages but that is not a realistic expectation. To develop an enterprise strategy for a region, one must look at where the strengths are. One of the reasons we are doing very well regionally this year is that we have developed food, tourism and strong sectors will a traditional connection to regional areas.
The Deputy's question wants to look at the 78 new name companies but, as I indicated, they are predominantly in the very high-tech sector. The spread is 55 in Dublin, eight in Cork, five in Limerick, two in Waterford and one each in Cavan, Louth, Wexford, Galway, Kerry, Westmeath, Laois and Sligo.
These are very welcome additions and we seek to achieve a spread based upon them, but a regional strategy must be built on much more than that and must include developing entrepreneurship within that region in areas where that region can build a long-term sustainable capability. That is the debate on which we need to focus as well as the important strategic nature of foreign direct investment.
I appreciate any jobs that come into the country in these straitened times but a business typically wants a skilled workforce, an infrastructure and an ability to make a profit. In most parts of the country that exists. What we need in the areas that do not have those is Government attention focused on providing those into the future. Government direction is also needed. Up until now certain Governments gave direction to the IDA to provide jobs in certain areas. The Government's Action Plan for Jobs contained a direction for a 50% target for foreign direct investment outside those areas. Has the Minister given up on that? He is saying it is impossible to give direction, that foreign direct investment will go where it will go, but on another level he is saying he is going to give direction. Which is it?
Irish financial services went to locate in the docks area because the Government directed them down there, and the clustering that has happened in the medi-tech sector in the west and in the pharmaceuticals sector in the south took place because those clusters were initiated by Government policy. We need an even distribution of these jobs.
Thank you, Deputy. We must make progress.
The target for foreign direct investment is 50% outside Dublin and Cork. It is not a specific regional target of so much investment here, there and yonder because that is not realistic. It has not been possible to achieve this target but this year we improved on last year so we are heading in the right direction.
Therefore, the Minister agrees with me that there is the ability to provide these targets and such direction.
Regional aid is one of the tools we use to try to achieve a greater spread. We give greater grant support to an overseas investor in certain parts of the country than to those in others, and that has been a conscious policy to try to spread the investment more widely. We also introduced the Connect Ireland initiative, which is an adjunct to the traditional way the IDA does business, and it builds on community connections within regions. We believe that has potential and it is yielding 14 projects with the potential to create-----
That was a private sector initiative. It had nothing to do with the Minister.
Yes, but it is supported by State money. There is State allocation of funds to any successful connector. That is the way it works.
The idea came from a private individual and fair dues to him, but the Minister should not be taking the credit for it.
Deputy Calleary, this is Deputy Tóibín's question.
We are supporting with public money a scheme developed by a private individual and there is nothing wrong with that. I will take ideas from anyone. I will take them from the Deputy.
The Minister takes the credit for everything.
The issue of clusters is very valid. We seek to build clusters around particular sectors, be it in the food sector or in the medical devices sector, and the latter sector is a good example. It is regionally spread. Deputy Naughten will know that because he lives within an area where the medical devices sector is very strong. We seek to build clusters in regions as well.
Thank you, Minister. We must move on to the next question. It is in the name of Deputy Naughten and the same time limits will apply.
