Written Answers Nos. 16-22
16. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation his proposals to strengthen industrial output in the wake of its recent decline; and if he will make a statement on the matter. [3334/13]
Amharc ar fhreagra37. Deputy Martin Ferris asked the Minister for Jobs, Enterprise and Innovation the way he accounts for the fall in manufacturing in the third quarter last year in areas outside of the pharmaceutical sector; its impact on employment and the plans he has to reverse this situation. [3246/13]
Amharc ar fhreagraI propose to take Questions Nos. 16 and 37 together.
Many indicators are used to measure industrial output and the performance of the manufacturing sector generally. For a rounded view, it is necessary to look beyond a single set of statistics; rather one should seek an assessment of all relevant indicators for that sector, in particular, output, purchases, exports and employment.
In relation to Output, both industry production and turnover (sales) are relevant. The recent Central Statistics Office data on these two activities up to November 2012 are disappointing but there are some sectors which show encouraging trends. The most recent data for the last quarter has shown declines in both production and turnover overall. However, the rate of decline in turnover has been substantially less than the rate of decline in production in recent quarters. This may indicate that the decline in sales is easing and offers hope for a return to growth in sales. During the last quarter, increases were recorded in both the production and sales of some key commodities such as meat and dairy products, computers and electrical equipment.
A key measure of industrial performance is, of course, comparative Export data for manufactured goods. The latest CSO data shows that manufacturing exports for the period January-November 2012 are almost €80 billion, which is higher than exports in the same period in 2011. Considering the depressed economic status of many of our key markets globally, this is a significant achievement.
In relation to Purchases, the reputable NCB Purchasing Managers Index is a composite indicator designed to provide an overall view of activity in the manufacturing sector of the Irish Economy and acts as a leading indicator for the whole Economy. After a long period of contraction (some of it very severe) for most of the period 2008 – 2010 and also part of 2011 and early 2012, this Index has recorded 10 straight months of consecutive growth, up to and including last month.
Approximately 50,000 jobs were lost in manufacturing in the worst years of the current recession due to a variety of factors particularly the impacts of the global financial crisis and the decline in demand for Irish manufactured goods, partly linked to the decline in the construction sector. However I am pleased to report that since then Ireland has regained some competitiveness with decreases in relative prices and that overall employment in manufacturing has been largely stable over the last 2 years at around 190,000 to 200,000, with a roughly similar number of indirect jobs supported in this sector.
Industrial production is crucial to economic well-being and, using the expertise of the Manufacturing Development Forum and the development of a new Strategy for Manufacturing, we can build a sound future for Manufacturing and Industrial Production in Ireland.
17. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the major areas of consideration raised by multi-national corporations when considering investing in the State. [3225/13]
Amharc ar fhreagraIDA Ireland’s primary responsibility is to attract foreign direct investment (FDI) to Ireland and to grow and expand existing FDI companies in Ireland in the face of strong international competition.
As Ireland is no longer a low cost labour location, IDA Ireland is now targeting companies involved in more knowledge based activities that are driven by technology and innovation, with an emphasis on higher skill requirements and R&D. Ireland has built strong networks in key sectors such as ICT, Pharmaceuticals, Medical Devices and Financial Services. IDA has informed me that the key requirements of potential investors in determining where they will visit and, consequently, where they will potentially locate tend to centre on the following:
- Access to a pool of suitably qualified employees;
- The availability of world-class access infrastructure in terms of road access to key cities and ports and international airports;
- The availability of telecommunications infrastructure with multiple carriers and competitive pricing with business support services;
- Third level educational infrastructure including universities and technical colleges that are located on, or are close to, business and technology parks;
- A range of affordable, state-of-the-art property solutions; and,
- The attitude of the local community to potential investors.
The Agency has also stressed that the combined influence of Ireland’s increased competitiveness in business costs, the Government’s commitment to maintain our 12.5% corporate tax rate, national infrastructure development and the Government’s continued investment in Science, Technology and Innovation have resulted in Ireland continuing to attract and increase the level of FDI in Ireland.
Finally, Ireland’s performance in attracting FDI has been recognised internationally and these international comparisons are impressive. The IMD World Competitiveness Yearbook for 2012, which publishes internationally respected rankings, classified some of Ireland’s strengths as follows: -
- we are 1st for investment incentives;
- 1st for flexibility and adaptability;
- 4th for real corporate taxes;
- 2nd for lack of protectionism; and,
- 4th for corporate tax rate on profit.
IBM’s Global Location Trends Report of 2012 places Ireland:
- 1st in the world for inward investment by quality and value;
- 1st in Europe for jobs created in Research and Development;
- 1st in Europe for investment in the pharmaceutical sector; and,
- 2nd in Europe and 4th globally for the number of investment jobs per capita.
18. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation the uptake to date of the microfinance scheme; and if he will make a statement on the matter. [3331/13]
Amharc ar fhreagra29. Deputy Willie O'Dea asked the Minister for Jobs, Enterprise and Innovation the number of businesses that have availed of the microenterprise loan fund; and if he will make a statement on the matter. [3340/13]
Amharc ar fhreagraI propose to take Questions Nos. 18 and 29 together.
Microfinance Ireland (MFI) opened for business on Monday 1st October 2012. At this stage, the number of applications received as of Monday 21st January is 70, and a further 51 are in the pipeline with those applicants receiving assistance from the County Enterprise Boards.
Loans of up to €25,000 are available to microenterprises with viable business plans and repayment capacity, that have been refused access to credit from the banks. MFI is actively promoting the availability of its loan fund, for microenterprises with less than 10 staff, and are focusing in January and February on a media campaign to raise awareness of the Scheme across the country. My officials will be meeting MFI to discuss the publication of regular formal reporting shortly. It is envisaged that these reports will be available on the MFI website www.microfinanceireland.ie.
19. Deputy Michael Moynihan asked the Minister for Jobs, Enterprise and Innovation the consultation he has had with the Department of Finance on foot of the assessment of the Credit Review Office; the actions he is taking in response to same; and if he will make a statement on the matter. [3337/13]
Amharc ar fhreagraThe Credit Review Office (CRO) was established in March 2010 by the then Minister for Finance. The Credit Review Office mandate is to ensure that viable SMEs have access to credit from the pillar banks, by reviewing banks’ decisions to refuse or reduce credit facilities. In that context, the outcomes of the appeals that the CRO undertake are collated into a regular report for the Minister for Finance to inform the Government how the credit system is operating in the participating banks.
I also meet with the Head of the CRO, Mr John Trethowan, on a regular basis to discuss the ongoing work of his Office.
In October 2012, the Department of Finance undertook a review of the CRO in line with a commitment in the Action Plan for Jobs 2012. As part of the consultation process, officials of my Department and, separately, I as Minister, engaged with the consultants. The Review was published in November last and a wider public consultation ensued.
A high-level SME State Bodies Group, chaired by the Department of Finance meets on a regular basis to co-ordinate policy formulation and implementation across relevant Government Departments and Agencies focused on SME access to finance. Officials from my Department participate on this Committee, and the recommendations arising from the review of the Credit Review Office are now being reviewed and progressed by that forum. As a first step, the Department of Finance has sanctioned an increase in the numbers of reviewers on the credit review panel, in order to facilitate faster processing of decisions, which was a recommendation in the CRO assessment report. Officials are currently looking at how to implement further appropriate changes to the CRO regime, in line with the recommendations of the report.
20. Deputy Alan Farrell asked the Minister for Jobs, Enterprise and Innovation his plans for an action plan for jobs in 2013; when this is due to be published; the number of submissions received; and if he will make a statement on the matter. [3181/13]
Amharc ar fhreagraThe Action Plan for Jobs is a multi-annual process which has the objective of supporting the creation of 100,000 new jobs in the economy by 2016 and making Ireland the best small country in which to do business. The 2012 Action Plan represented the start of the process and I am currently finalising the 2013 Action Plan for Jobs on behalf of the Government.
The 2013 Action Plan will once again include a range of actions to be delivered across Government that will improve the operating environment for business, improve Ireland’s competitiveness and support job creation.
I am also working with my colleagues in Government to include, in this year’s Action Plan, a number of landmark projects which will have the potential to make a significant difference to the business environment and to capitalise on Ireland’s strengths in areas such as ICT and innovation.
As part of the process of developing the 2013 Action Plan for Jobs, I received substantial input from my Government colleagues. I also consulted with a number of other key stakeholders and made a public consultation forum available on my Department’s website for the input of ideas. Arising from this process, more than 55 submissions were received, containing over 600 individual proposals for consideration. These submissions have been analysed by Forfás and by my Department and, where appropriate, ideas that were considered to be feasible for implementation this year have been taken on board in formulating the Action Plan.
The 2013 Action Plan for Jobs will be published in the coming weeks, following its approval by Government.
21. Deputy Michael Colreavy asked the Minister for Jobs, Enterprise and Innovation in view of the regional differentials in the labour market, if he will now develop a regional approach to job creation and the allocation of support based on need. [3238/13]
Amharc ar fhreagra39. Deputy Michael Colreavy asked the Minister for Jobs, Enterprise and Innovation the work of Government agencies to redress regional differential in employment; and his assessment of this work. [3237/13]
Amharc ar fhreagraI propose to take Questions Nos. 21 and 39 together.
Supporting new and existing indigenous and foreign-owned businesses, across all regions, is central to our plans for recovery, growth and jobs.
The Government is addressing job creation and retention through the twin strategies of the Action Plan for Jobs and Pathways to Work. The aim of the Action Plan for Jobs is to support the creation of 100,000 net new jobs by 2016, while the objective of Pathways to Work is to ensure that as many of those jobs as possible go to those who are currently unemployed. The Plan is a whole of Government plan with a national focus across all regions.
While job creation is this Government’s top priority and tackling unemployment is our greatest challenge, the most recent Quarterly National Household Survey showed that unemployment decreased by 3,600 (-1.1%) in the year to Quarter 3 2012, the first year on year decrease in unemployment in recent years. It is acknowledged that there are regional variances in the labour market, however, overall the unemployment statistics show signs of stabilization and some slight downward adjustment.
The Enterprise Development agencies are at the forefront of implementing the Action Plan for Jobs across all regions and continue to ensure that enterprises can maximise their contribution to economic recovery and jobs growth. Despite a very difficult domestic and external economic environment, we are beginning to see the positive impact of the Government’s policies. 2012 saw significant net job creation by EI and IDA-supported companies, building on the positive results of 2011 and following successive years of significant net job losses. My Department has successfully delivered on national actions, such as the establishment of the Microfinance Loan Fund and the Credit Guarantee Scheme, both of which will increase access to finance for enterprises and entrepreneurs throughout the country.
Ensuring that more micro and small businesses can start up, expand and export is a key pillar of the Government’s plans for jobs and growth. In November 2012, I announced that primary legislation will be drafted to dissolve the existing County and City Enterprise Boards and create an enhanced national micro-enterprise support model, delivered through Local Enterprise Offices to be established in each Local Authority area. Pending the introduction of these arrangements, County and City Enterprise Boards (CEBs) will continue to ensure that available funds are targeted to maximise entrepreneurial development and engage and work with micro-enterprises employing less than 10 persons, on an on-going basis, with strong referral to sister agencies to progress the needs of the businesses in their respective areas.
I am currently preparing the 2013 Action Plan for Jobs on behalf of the Government, and in that context, am exploring further measures which can be taken to transform our economy and support job creation across all regions of the country.
22. Deputy John Deasy asked the Minister for Jobs, Enterprise and Innovation the input that members of Dáil Éireann and Seanad Éireann will have in the process of formulating the post 2013 regional aid investment guidelines. [3194/13]
Amharc ar fhreagra48. Deputy John Deasy asked the Minister for Jobs, Enterprise and Innovation if he will outline the discussions and submissions he is having with the EU Commission regarding the regional aid guidelines post 2013. [3193/13]
Amharc ar fhreagraI propose to take Questions Nos. 22 and 48 together.
The process of Member States agreeing the 2014-2021 Regional Aid Guidelines is underway and initial multilateral discussions between Member States and the Commission, which has responsibility for the Regional Aid Guidelines, have taken place.
The initiative is Commission led, and my Department is actively engaged in this process and has consulted relevant stakeholders including various Government Departments, the industrial development agencies, Údarás na Gaeltachta, Forfás, the Central Statistics Office, the Border Midland and Western Regional Assembly, the Southern and Eastern Regional Assembly, and the eight Regional Authorities.
The Commission issued a non paper of its initial orientations in December 2011, which was followed by a multilateral meeting in March 2012. The Commission subsequently forwarded further proposals to Member States on 14 January 2013, documenting the structure and provisions that will form the basis of the revised Guidelines. The next multilateral meeting is scheduled to take place on 11 and 12 of February.
I met with Commissioner Almunia to discuss the issue of State Aids on the margins of the Competitiveness Council (Industry) on Monday 10 December 2012 and Minister Sherlock also raised this issue with Commissioner Geoghegan-Quinn at the Competitiveness Council (Research) on Tuesday 11 December 2012. Concerns relating to the range of coverage and support for large investment projects were raised at these meetings as being items of major concern to Ireland.
In addition, my Department's officials have discussed these issues with Commission officials across a range of dossiers to ensure that Irish concerns are well known within the Commission. My officials have also met with a number of Member States (France, Germany, Austria, United Kingdom and Portugal) on these matters on the margins of the Competitiveness Council and bilaterally. Demarches are also being considered to like-minded Member States and the proposals will be discussed again at the multilateral meeting on Regional Aid scheduled to take place in Brussels on 11 and 12 February.
My Department, in conjunction with the enterprise agencies, is currently preparing a detailed submission to the Commission on the current Regional Aid proposals.
All relevant Government Departments have been briefed on this issue through the State Aid Interdepartmental Committee and briefs have issued to the relevant Minsters. All Irish MEPs and the Irish representatives on the Council of the Regions have also been briefed on this issue.
In addition to the wide consultation of stakeholders detailed above, I welcome any input from members of Dáil Éireann and Seanad Éireann into this important process.
