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Thursday, 24 Jan 2013

Written Answers Nos. 47 - 54

Skills Shortages

Ceisteanna (47)

Aengus Ó Snodaigh

Ceist:

47. Deputy Aengus Ó Snodaigh asked the Minister for Jobs, Enterprise and Innovation the impact of continued emigration on the labour market and available skills. [3235/13]

Amharc ar fhreagra

Freagraí scríofa

Net-outward migration flows have contributed to the reduction in the labour force over the course of the recession. Between April 2008 and April 2012 the CSO estimate that there was net-outward migration of 41,000 for the 15+ age group. As of April 2012, net-outward migration for the working age population was 34,000, made up of an outflow of 87,000 and an inflow of 53,000. Not surprisingly, these flows were largely accounted for by the under-35 category (68,000 and 30,000 for emigration and immigration respectively). Net outward migration (emigration less immigration) for Irish nationals in the year to April 2012 was 26,000. There are currently no statistics available on the skills profile of recent Irish emigrants, although anecdotally a large proportion are working in the construction related activities in Australia, Canada, UK, Norway and, more recently, Germany.

The impact of migration on the labour market and available skills depends on a range of factors including, for example, the age at which people migrate, whether they are of working age and their occupational skillset. The Expert Group on Future Skills Needs, which is funded by the Department of Education and Skills, plays a key role in advising on future enterprise skills needs and emerging gaps. The work of the expert group informs the selection of new targeted programmes designed to provide interventions to tackle the skills shortages in particular sectors of the economy, e.g. Springboard, Momentum and the ICT skills conversion initiative, which was introduced as part of the ICT Action Plan. In 2013, there will be continued targeted investment in over 430,000 part-time and full-time places across the further and higher education and training sectors, all of which are open to unemployed people including young people and the long-term unemployed. This investment includes the provision of the Skillnets Training Networks Programme, which is enterprise-led by nature, where the development of training is led by representatives of industry to ensure that training provision meets the identified needs of the network stakeholders and companies.

This Government is setting about transforming the economy, firstly by making fiscal consolidation more job friendly, including through tax changes, asset sales and the creation of a stimulus package. We have introduced the annual Action Plan for Jobs process to support employment creation by the enterprise sector, based on innovation, entrepreneurship and exporting. We have also developed the Pathways to Work initiative to transform our engagement with those who are unemployed, including young unemployed people. 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 provide those who are unemployed with the appropriate training and skills to avail of the job opportunities which will arise as the economy recovers.

Even with continued job losses in more traditional sectors such as Construction, and Financial, Insurance and Administrative activities, we have seen an increase in employment in sectors targeted by the Action Plan for Jobs, for example, Tourism Agri-food, ICT and Digital Gaming. These developments demonstrate the transformation which is taking place in the economy which had become too dependent on the Construction sector and domestic demand to support economic growth. By continuing the process of transforming our economy step by step through the Action Plan for Jobs, we aim to provide opportunities for those who wish to continue to live and work in Ireland.

Question No. 48 answered with Question No. 22.
Question No. 49 answered with Question No. 43.

Economic Competitiveness

Ceisteanna (50)

Caoimhghín Ó Caoláin

Ceist:

50. Deputy Caoimhghín Ó Caoláin asked the Minister for Jobs, Enterprise and Innovation his actions to date to deal with the added costs associated with businesses operating along the border. [3233/13]

Amharc ar fhreagra

Freagraí scríofa

Certain operating costs for business are largely outside the control of Government. For example, fuel and energy prices are primarily driven by external factors such as global fossil fuel prices. In addition, currency exchange rates are important in creating relative price differences that can lead to higher costs for businesses in one jurisdiction compared to the other and this can have a particular impact in border areas.

The Government’s approach has been to identify those areas of policy it can influence to bring about cost reductions or provide supports to business. The Action Plan for Jobs 2012 includes an extensive range of measures across Government which will help to reduce costs and support job creation. These include:

- reforming the statutory wage setting mechanisms;

- reducing the administrative burden on business;

- placing downward pressure on insurance costs through the Legal Services Bill;

- encouraging all professionals to supply quotes in advance to business customers;

- providing supports to businesses to improve their energy and resource efficiency;

- introducing a mechanism to allow small companies to apply to the Circuit Court, rather that the High Court, to have an Examiner appointed;

- encouraging local authorities to exercise restraint in the setting of commercial rates.

Updates on these, and all other commitments in the Action Plan for Jobs, are detailed in the Quarterly Progress Reports on the Plan which are available on my Department’s website, www.enterprise.gov.ie .

The most recent report published by the National Competitiveness Council (NCC), in July of this year - “Ireland's Competitiveness Scorecard” - acknowledged that improvements have taken place in Ireland’s cost competitiveness, particularly in relation to labour costs and property costs. However, the NCC also advised that Ireland must maintain focus and continue to reduce costs to business. I would point out to the Deputy that the Programme for Government includes a commitment to work for greater economic co-operation with Northern Ireland to accelerate the process of recovery and the creation of jobs on the island. In that context, my Department and its agencies are working with their Northern Ireland counterparts on a range of issues as set out in PQ 3234/13.

Industrial Development

Ceisteanna (51)

Thomas P. Broughan

Ceist:

51. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the action he is taking to facilitate the inclusion of more Irish companies in the global supply chains of multinational companies in view of his recent comments that a 5% increase in local spending by multinationals would generate €500 million for the economy here in 2013; and if he will make a statement on the matter. [3177/13]

Amharc ar fhreagra

Freagraí scríofa

In accordance with the commitment given in the 2012 Action Plan for Jobs, IDA Ireland and Enterprise Ireland have established a senior management team to drive effective collaboration on key priorities such as including more Irish companies in the global supply chains of multinational companies. IDA Ireland has confirmed that its focus is on ensuring that each engagement with a client company, whether existing or new, includes, where appropriate, a discussion on the opportunity and potential for global sourcing from supplier companies based in Ireland.

Using data gleaned from an annual survey of the economic impact of companies in Ireland, which is undertaken by IDA and Enterprise Ireland, IDA Ireland, in consultation with Enterprise Ireland has, to date, met with key clients to assess the potential market opportunity and how best it can be targeted and approached. Arising from these discussions, a targeted approach is being piloted, concentrating on 65 companies which have the best potential to identify and secure global sourcing opportunities for sub-suppliers based in Ireland. The 65 companies selected for the first phase account for €20bn in sales/exports and employ 27,000 people. They have a total material spend in 2012 of €5.25bn, of which €0.5bn (9.5%) is currently sourced in Ireland. The value of their total services spend is €6.2bn with €0.63bn (10%) currently sourced in Ireland. I have asked the IDA and ET to give this initiative full support and I will be maintaining contact with them on progress.

Local Enterprise Offices Remit

Ceisteanna (52)

Luke 'Ming' Flanagan

Ceist:

52. Deputy Luke 'Ming' Flanagan asked the Minister for Jobs, Enterprise and Innovation the reason both Galway City Council and Galway County Council have now got local enterprise offices when previously one county enterprise board served both city and county, in view of his policy to maximise value for money by amalgamating the county enterprise boards into the local authorities; and if he will make a statement on the matter. [54019/12]

Amharc ar fhreagra

Freagraí scríofa

An Implementation Working Group (IWG), chaired by my Department and with membership drawn from the key stakeholders involved in the project, is overseeing the establishment of the new national infrastructure that will support micro and small enterprises. Final decisions on the number and exact location of the Local Enterprise Offices (LEOs) have not yet been made. County Managers and CEB Management are currently engaged in discussions at local level to determine the most suitable approach for their local area. They will report back to the Implementation Working Group in this regard.

On 21st November last I launched a consultation paper outlining the key elements of the proposal to reform the national micro and small business support infrastructure and inviting input from all stakeholders on the implementation of this proposal. The closing date for receipt of submissions was extended to last Friday 18th January to facilitate stakeholders wishing to submit their views. I believe it was important to undertake this further consultation on how best to implement the Government’s decision of reform and this will help inform any decisions to be made. The Government Decision is clear on the structure of the new service, however, I wanted the views of the business sector on how reform can be delivered in a manner that best serves the clients of the State’s Micro and Small Business support services. Value for money from this process will be achieved by bringing local enterprise support into an integrated national network that will deliver enterprise policy to the highest standards and offering seamless progression for small business with potential into the Enterprise Ireland portfolio.

Public Sector Staff Data

Ceisteanna (53)

Bernard Durkan

Ceist:

53. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the number of jobs created and or lost in each of the past five years to date in the public sector; and if he will make a statement on the matter. [3249/13]

Amharc ar fhreagra

Freagraí scríofa

Policy responsibility for public sector numbers is a matter for my colleague, the Minister for Public Expenditure and Reform, Mr. Brendan Howlin, T.D. I understand that Minister Howlin’s Department will be in a position to supply the figures the Deputy is seeking. In this context, the Deputy should address his question directly to Minister Howlin.

Question No. 54 answered with Question No. 10.
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