Dáil Éireann Debate, Wednesday - 10 July 2013
5. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the impact departmental policies are having on encouraging enterprises and creating employment in the current recession. [33597/13]
Amharc ar fhreagraThe policies being pursued by the Department are having a positive impact in supporting enterprises and job creation. Despite international and domestic difficulties, there was an annual increase in employment of 20,500 people, net of public sector reductions, in the first quarter of 2013. The unemployment rate decreased from 15% in the first quarter of 2012 to 13.7% in the first quarter of this year, the first time it has fallen below 14% for some years.
In 2012 Enterprise Ireland and IDA Ireland companies had their best performance in many years, with the agencies' clients creating nearly 10,000 additional jobs between them last year. This reflects the major effort that has gone into key programmes operated by them. These include competitive start funds for specific groups of very early stage entrepreneurs and high potential start-ups; a pilot initiative which will focus on enabling companies to research, evaluate and plan market entry strategies in new geographical markets; LEAN initiatives on enhancing productivity; and the introduction of a development capital fund scheme.
In regard to foreign direct investment, IDA Ireland has partnered with companies across five key areas to transform their businesses by way of training support, technology uplift, research and development, and product improvement. In addition, the Succeed in Ireland scheme was launched and there has been a greater focus on new and emerging companies and sectors.
The Action Plan for Jobs is a key vehicle for implementing specific and practical measures to support the enterprise sector. A number of substantial actions have been delivered through this process by my Department to enhance the business environment. These include the introduction of measures to improve access to finance for businesses such as the micro-enterprise loan fund, the temporary credit guarantee scheme, the development capital scheme and the seed and venture capital scheme. New structures have been put in place in Enterprise Ireland to assist companies seeking to grow their exports. Meanwhile, the first of the new local enterprise offices was launched in May, heralding the start of a radical reform of the system of supports for micro and small enterprises. There has been a stronger focusing of our research investment through the work of the research prioritisation group. In addition, we have been looking at sectors such as manufacturing, construction, retail and the green economy, among others, to see how best they can be developed.
Progress reports on the delivery of the full range of measures under the Action Plan for Jobs are published on my Department's website on a quarterly basis.
I meet skilled and experienced people on a daily basis who, through no fault of their own, find themselves unemployed. In many cases, their self-worth has been crushed. I meet families who are struggling in extremely difficult situations, trying to pay the electricity and heating bills and keep the roof over their heads. I meet people who tell me, through their tears, about the children and grandchildren they have lost to Australia, Canada and elsewhere. It is certainly not my intention to talk down the economy, but the people in question must be represented in this Chamber.
We must face reality. In the two and a half years since the Government came to power 167,000 people have emigrated and 10,700 full-time jobs have been lost. The 3,800 new jobs created correlate exactly with the number of part-time posts. Unemployment has stabilised, but that process had already begun before the Government came to power. Some 30,000 workers have been under-employed during its tenure. At the same time, the results for the past two quarters show we are back in recession. The point I am trying to make is that despite the hollow ecosystem of initiatives and jobs, there is no focus on the real economy which is not growing. A myriad of businesses are hamstrung by an inability to access credit and paralysed by the lack of demand and low expectations in the economy. The issues over which the Minister has some control such as the availability of credit, utility costs and rental costs are not being properly addressed. There has been no effort whatsoever to stimulate the economy sufficiently to create jobs. We need a growth level of 2% for jobs to be created, but there is no growth.
The objective of the Government is very clear in the actions of the Minister and his team, which have been very effective. For the first time since 2008, 20,500 jobs have been created in a single quarter, net of public sector reductions. Some 1.8 million people are at work. Exports from companies supported by Enterprise Ireland are worth €16 billion. This is worth €30 billion to the economy, €14 billion to the domestic economy and €19 billion in GDP. Jobs are being created every day, but many of them require specialised skills. This week I met representatives of a company which has been forced to recruit people from other jurisdictions because of the lack of a skills base here among domestic workers. People from eastern Europe are being recruited to do a specific job, for which particular qualifications or experience are required. One only has to look at the job vacancies in newspapers to see that a major upskilling effort is required, a task which is being met by the third level colleges. We are focusing on this through collaboration with the universities and the institutes of technology.
Is the Minister of State advising the 400,000 people on the live register to buy the newspaper?
That is not what I am saying. I am pointing to the opportunities available within the economy.
We have introduced a range of initiatives to assist business, including the micro-finance fund, the loan guarantee scheme and the credit guarantee scheme. A sum of €4 billion has been targeted for bank lending. We are constantly meeting the financial institutions to discuss how people can be facilitated to access finance. We are engaged in an uphill recovery programme and it is a very difficult job. There is no doubt, however, that progress is being made. This week I met several business people in Limerick who are confident the situation is stabilising. Notwithstanding the challenges that remain, jobs are being created in the economy.
The Government can choose to focus on a month here or there or some other time span to bolster its argument that change is happening and that we have turned the corner. In reality, however, when one looks at the two and a half year period in which the Government has been in office, the trend is clear. The figures are also clear when one examines initiatives such as the credit guarantee scheme. The Minister of State knows they have not been a success.
The Government has set itself a target of creating 100,000 net new jobs, but it has achieved only 3,800 to date. If it is to reach that threshold of 100,000, it will have to create 32,000 net new jobs every year until the end of its term. What are the plans it intends to put in place to achieve job creation levels of 32,000 per year for the next three years?
The Government has a very clear plan, which is more than can be said for the Deputy's party. We are not cherry-picking figures but simply stating the facts. Some 20,500 jobs were created in one quarter, net of public sector reductions. The opportunities are available, despite the difficulties facing the economy. We have a clear plan of action. The Action Plan for Jobs is in place and we have reduced red tape for businesses.
The Minister of State is being very selective in what he chooses to highlight.
Deputy Tóibín can be very selective too in what he picks on. Deputy Tóibín should get his facts clear. Some 20,500 net jobs have been created in the private sector, net of public sector jobs.
What timescale is the Government working to?
Enterprise Ireland, with €16 billion, is at the highest ever and its turnover in Ireland is €30 billion.
Some 3,000 jobs have been created in two years.
An initiative announced by the Taoiseach and the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, of giving €10,000 in respect of long-term unemployed people-----
There are some 2,000 places.
That is under review.
The Minister of State is over time.
The size of the problem far exceeds the efforts of the Government.
We look at the glass being half-full, while Deputy Tóibín is very selective in what he picks on. We look at the reality and we talk to business people.
It is only lately the Government started looking at it that way.
We meet business people on the ground and we are not being selective like Deputy Tóibín.
