Written Answers Nos 1-34
11. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation the allocation of the €250 million fund for regional job creation, including the programmes and schemes that the fund is supporting; and if he will make a statement on the matter. [37989/15]
Amharc ar fhreagraThe aim of the Action Plan for Jobs is to help enterprises to create employment in all regions of the country. The latest Quarterly National Household Survey figures from the CSO show that employment has increased nationally by over 133,000 since the start of the Action Plan for Jobs process in 2012. However, not all regions are yet fully experiencing the benefits of economic recovery. Earlier this year, the Government announced details of the Action Plan for Jobs: Regional initiative which will seek to maximise the strengths and assets of each region to support enterprise growth and job creation.
In launching the Regional initiative, I also announced that funding of up to €250m will be made available over the next five years to support job creation through enterprise growth in the regions. It is the intention that IDA Ireland will deliver a Regional Property Programme of €150m and a further sum of up to €100 million will be made available through Enterprise Ireland over the next five years to support innovative and collaborative approaches to support job creation across the regions.
The Enterprise Ireland funds will be distributed through three new competitive calls.
- A €5m Community Enterprise Initiative, to stimulate and support enterprise and job creation throughout the country at local, community and regional level. This competitive call has closed and applications are currently being assessed.
- A €5m fund open to groups of Local Enterprise Offices who come together to bid for funding for projects to support job-creation initiatives in their areas. This competitive call has closed and applications are currently being assessed.
- A third, broader, competitive regional call, to be launched later this year, will support significant projects or initiatives to improve or leverage identified enterprise capability in the regions. An expressions of interest phase for this call has just concluded and is informing the development of the competitive call to be launched later this year. There has been significant level of interest from across all regions in this expressions of interest phase.
As part of its new five year strategy, IDA has committed to increasing the level of investment into each region of Ireland by between 30% and 40%. In support of this goal, I DA is investing in a €150m Regional Property Programme over the five year period to ensure that there is sufficient availability of utility intensive Strategic Sites, quality Business Parks and Advance Building Solutions to attract investment to the Regions.
So far this year, Advance Technology Buildings have been completed in both Waterford and Athlone and the construction of buildings in Sligo, Castlebar and Tralee is at an advanced stage of procurement. Next year, IDA Ireland will continue this programme of advance builds with projects in Galway, Dundalk and Limerick. Investment in IDA Ireland’s portfolio of Business and Technology Parks around the country is also underway.
12. Deputy Thomas Pringle asked the Minister for Jobs, Enterprise and Innovation the number of start-up companies that have been supported by Enterprise Ireland in County Donegal over the past three years; and if he will make a statement on the matter. [37944/15]
Amharc ar fhreagraEnterprise Ireland has supported 101 start-up entrepreneurs in Donegal in the past three years through its various programmes, and in addition the Donegal Local Enterprise Office had supported 196 start-up entrepreneurs through its programmes. As the Deputy knows, the local enterprise office now has a service level agreement with Enterprise Ireland which allows start-ups progress to EI programmes. This indicates a healthy start-up environment in Donegal. However, I have the ambition to build on this and I am looking to the Regional Action Plan for Jobs to support a 25% increase in entrepreneurship over a five year period. Some of the details of the programmes in Donegal are as follows:
- Enterprise Ireland has supported 92 entrepreneurs on New Frontiers delivered in association with Sligo and Letterkenny IT
- EI has supported four companies on Competitive Start and five High Potential Start Ups
- Donegal LEO has supported 83 companies with capital grants, 113 applicants to Ireland's Best Young Entrepreneur and 235 doing start your own business courses, while ten start-ups in Donegal have availed of Microfinance.
13. Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation if he has expressed any concerns to the Department of Social Protection or the Department of Public Expenditure and Reform, in so far as it relates to labour and employment policy under his remit, regarding the use of compromise agreements at State agencies for staff who wish to avail of voluntary redundancy; if he is aware that the content of these compromise agreements can often contain terms not usually contained in a typical voluntary redundancy arrangement; if he has sought information regarding the extent and nature of such agreements across the public service; if so, if he will share this information; and if he will make a statement on the matter. [37946/15]
Amharc ar fhreagraThe Deputy is asking about the terms of voluntary redundancy agreements in State Agencies. At the outset, I would point out that it is up to an individual, following consideration of the terms on which voluntary redundancy is being offered, to decide whether or not to avail of voluntary redundancy. I understand from my colleague with responsibility for terms and conditions in the public sector, the Minister for Public Expenditure and Reform, that the terms that should apply in the case of redundancy of public servants are set out in the Collective Agreement: Redundancy Payments to Public Servants which was agreed between the Department of Public Expenditure and Reform and ICTU in June 2012.
Responsibility for deciding whether to offer a voluntary redundancy scheme in a particular agency rests, in the first instance, with the agency itself and its parent Department. In the event that those bodies consider it appropriate to offer voluntary redundancy, sanction for the scheme has to be sought from the Department of Public Expenditure and Reform.
My Department has no role regarding the terms and conditions of voluntary redundancy schemes which are negotiated between employers, employees and their representative bodies. However, my Department is responsible for ensuring that Ireland’s robust suite of employment rights legislation is respected, and that individuals can vindicate their rights.
In particular, I would draw the Deputy’s attention to Section 13 of the Unfair Dismissals Acts 1977 to 2007 which renders void a provision in any agreement which purports to exclude or limit the application of any provision of that Act. The caselaw provides that Section 13 does not preclude employers and employees from compromising a claim under the Acts provided that the employee has given “full and informed consent”. The Labour Court has held that in order for a settlement or compromise agreement to be upheld, the terms of any waiver must be construed strictly against the party from whom it emanated, any agreement to waive statutory rights must be supported by adequate consideration and the waiver should arise from an agreement reached after meaningful negotiations and after professional advice has been sought and given.
Ireland’s comprehensive suite of employment law is underpinned by the workplace relations bodies which, since the 1st of October, have been merged into the new Workplace Relations Commission and a re-constituted Labour Court. An individual who considers that their employment rights have been infringed can make a complaint, under the relevant piece of legislation, to the Director General of the WRC, in the first instance and, on appeal, to the Labour Court. These are quasi-judicial bodies which are independent in the exercise of their functions.
14. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation his assessment of foreign direct investment in the Dublin area in the past year; and if he will make a statement on the matter. [37940/15]
Amharc ar fhreagraUnder our Action Plan for Jobs we have targeted the winning of new Foreign Direct Investment and have taken measures to ensure that such companies have access to the talent they need, the supports for innovation and a good business environment. This strategy has been successful for the country. Dublin as our capital city and home to many ambitious and creative enterprises and a deep pool of talent. It has been particularly successful in winning FDI. In the past four years, over 17,000 extra people are at work in IDA companies in Dublin. This is in contrast to a loss of 4,000 jobs in the previous three years.
Dublin is recognised as one of Europe’s leading business locations and is now an internationally renowned cluster for technology and financial services companies. The city has been a spectacular success in terms of Foreign Direct Investment as it hosts many of the world’s leading companies such as Google, Facebook, Oracle and Pfizer, All of these multinationals leverage the abundance of infrastructure and utilities available in the capital to run their operations.
Dublin has a unique value proposition based on its critical mass, skills offering, infrastructure and track record in winning valuable investment commitments over the years and is well placed to win further investment in the future.
However I am not complacent about this performance and will be aiming to strengthen its competitive position in the context of the Dublin Regional Action Plan for Jobs.
15. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the number of jobs that have been created in the Dublin Bay North constituency since 2011; if there are any proposals to develop jobs in this constituency in the near future; and if he will make a statement on the matter. [37155/15]
Amharc ar fhreagraA key objective of the Action Plan for Jobs process, which this Government commenced in 2012, was to rebuild our economy based on enterprise and entrepreneurship, talent, innovation and exports and provide a solid foundation for future growth. The goal of this Government has been to replace all of the jobs lost during the economic crisis and deliver sustainable full employment by the end of 2018. This whole of Government effort has been integrated into the Action Plan for Jobs process which aims to strengthen the enterprise base, support entrepreneurship, improve competitiveness and support job creation in Dublin and in every region. Significant progress has been made in Dublin. Since the Action Plan for Jobs was launched 50,000 additional people are back at work in Dublin. This compares with job losses of 90,000 in the period 2008 – 2011.
The trend in employment in enterprises supported by IDA and EI have been similar. Such enterprises created a net 20,000 jobs in 2011 – 2014 compared to 10,000 job losses in the earlier period.
In the past year, net employment growth in Dublin was 15,400. There was expansion in all categories of enterprise supported by my Department:
- 3,700 in IDA supported enterprises
- 2,350 in EI supported enterprises and
- 793 in LEO supported enterprises
While good progress is being made, this Government is not complacent about the challenge of achieving sustainable full employment over the medium term, in all regions including Dublin. As part of the 2015 Action Plan for Jobs we launched the process for developing Action Plans for every region. The work on the preparation of the Dublin Action Plan for Jobs is currently underway and will set ambitious targets for the region over the coming years to realise the potential of sustainable full employment and improved standards of living for the people of Dublin.
Data is not collected by the CSO for difference areas or constituencies within Dublin. However the Live Register shows significant reductions in unemployment in Dublin as a whole and in the local labour exchanges on the Northside, with Coolock down 23%, Kilbarrack down 17% and King’s Inn Street down 28%.
16. Deputy Helen McEntee asked the Minister for Jobs, Enterprise and Innovation his Department's efforts in respect of a proposal by a company (details supplied); if he will update Dáil Éireann on the overarching strategy for Ireland in respect of such enterprise; and if he will make a statement on the matter. [37151/15]
Amharc ar fhreagraThe investment in this particular case will involve an expenditure of about €200m on a Data Centre. I myself met the company earlier this year to discuss the proposal and I arranged that IDA Ireland was closely engaged with them during the development of the initiative.
The provision of major Data Centres is a significant feature of our wider work to develop the Digital Economy in Ireland and to broaden the footprint of the ICT sector here. What has become known as ‘Big Data’ is a growth area and one with significant potential to create highly skilled jobs here. The construction of Data Centres generates a significant number of construction jobs and expenditure on goods and services and, after completion, while the number of ongoing permanent jobs is usually modest, such Centres have a significant life span.
My Department and its Agencies therefore actively pursue the development of these Centres in Ireland and we have been very successful in doing so. Major world players such as Google, Microsoft, Digital Reality, Amazon, IBM, EMC and ADOBE have made significant investments over recent years. While most such Centres are located in or close to Dublin, a very welcome announcement earlier this year was the decision of Apple to locate in County Galway and the Centre the Deputy refers to in her question will be located in County Meath.
In order that we have the right conditions in place to improve our attractiveness, we have addressed a range of issues. These include ensuring that a top-class telecoms infrastructure is in place, that appropriate electricity supplies are to hand, that suitably skilled staff are available, that we have strong Data Protection legislation and that Research Capabilities in related key technologies are in place, including the funding of Research and Technology Centres.
17. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if he has examined the effect on employment creation of the adjustment to the minimum wage in 2016, and the measures introduced in budget 2016 with regard to employer's pay related social insurance; and if he will make a statement on the matter. [37993/15]
Amharc ar fhreagraAt all times the Governments policy choices are considered in the context of the impact on jobs. This is at the heart of the Action Plan for Jobs process and has been a central feature of successive Budgets and The Pathways to Work programme. This level of policy focus has helped create an environment where 126,000 extra people are at work, all regions are increasing employment and our economy is the fastest growing in the EU. In the context of the above enterprise and jobs performance it should be noted that one of the first decisions this Government made was to reverse the €1 cut in the national minimum wage implemented by the previous Government. In respect of the minimum wage, the report from the Low Pay Commission which supported the Commission’s recommendations regarding the appropriate rate for the National Minimum Wage (NMW) stated that research indicates that moderate increases in the NMW are unlikely to have a significantly adverse effect on employment.
The Commission recommended that anomalies in relation to PRSI which could adversely affect employer costs should be addressed, and I believe that the adjustments to PRSI which have been provided for by my colleague, Minister Noonan, in the recent Budget, will assist employers in reducing costs, thus ensuring a continuing positive climate for job creation.
PRSI changes (New PRSI relief of €12 per week for employees and increase in employer threshold)
Application where someone earns the new NMW of €9.15 per hour (39 hour week = €18,556 per annum)
The maximum PRSI relief is €12 a week, applied on wages of €352 a week. So instead of paying €14.08 a week PRSI the person will pay €2.08 a week.
The PRSI relief is gradually reduced as wages rise to €424 a week - for every €12 rise in weekly wage the relief is reduced by €2.
|
Weekly wage |
Hourly rate |
Old PRSI |
Relief |
New PRSI |
Old Annual PRSI |
New Annual PRSI |
|
|
352.00 |
9.03 |
14.08 |
12.00 |
2.08 |
732.16 |
108.16 |
|
|
356.85 |
9.15 |
14.27 |
11.19 |
3.08 |
742.04 |
160.16 |
NMW |
|
364.00 |
9.33 |
14.56 |
10.00 |
4.56 |
757.12 |
237.12 |
|
|
376.00 |
9.64 |
15.04 |
8.00 |
7.04 |
782.08 |
366.08 |
|
|
388.00 |
9.95 |
15.52 |
6.00 |
9.52 |
807.04 |
495.04 |
|
|
400.00 |
10.26 |
16.00 |
4.00 |
12.00 |
832.00 |
624.00 |
|
|
412.00 |
10.56 |
16.48 |
2.00 |
14.48 |
856.96 |
752.96 |
|
|
424.00 |
10.87 |
16.96 |
- |
16.96 |
881.92 |
881.92 |
Annual PRSI Cost to Employee on new NMW (working 39 hours p.w.) without the proposed change would be €742.04 (€18,556 * 4%), giving a saving of €581.88 even with the new payment of €160.
Employer impact - increase in threshold for change of rate from 8.5% to 10.75% from €356.01 to €376.01
|
Weekly NMW |
PRSI rate |
Weekly cost |
No of weeks |
Annual Cost |
|
|
356.85 |
8.50% |
Increase of rate to €376 before 10.75% applies |
30.33 |
52 |
1,577.28 |
|
356.85 |
10.75% |
Cost to employer prior to Budget change |
38.36 |
52 |
1,994.79 |
|
Difference |
8.03 |
52 |
417.51 |
Annual PRSI Cost to Employer without the proposed change would be €1,994.79, giving a saving of €417.51. (There is an additional saving to Employer also for employees earning up to €9.64 per hour/€376 p.w., who previously would have invoked the 10.75% rate - annual saving to the employer of €439.92 for an employee earning €376 per week).
18. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation the number of Industrial Development Agency sponsored visits by potential investors to County Donegal in 2015 and in 2014; and if he will make a statement on the matter. [37942/15]
Amharc ar fhreagraThere were 6 IDA Ireland-sponsored site visits to Donegal in 2014. In 2015, up to the end of September, there were 3 site visits to the county. The number of jobs in IDA Ireland client companies in Donegal, according to the 2014 Annual Employment Survey, rose from 1,854 in 2010 to 2,612 in 2014. I enclose the breakdown in the attached tabular statement. The figures for this year will not be available until the 2015 Annual Employment Survey is published early next year. It is important to note that data on site visits is not a true measure of the level of FDI activity in a region or county. Approximately 70% of all FDI investment won by IDA Ireland comes from its existing client base. Working with stakeholders is exceptionally important in positioning any regional location to attract FDI and IDA Ireland continues to do so in addition to working with existing clients in all regional locations to generate additional jobs.
IDA Ireland markets Donegal as part of its North West Region, which also comprises Leitrim and Sligo. There are 41 multinational companies based in the North West, employing 5,294 across the Region (Annual Employment Survey 2014). The main FDI activity clusters that have emerged in the North West are in the life sciences and engineering sectors, particularly in the manufacture of medical devices and automotive components. There are also a small number of large employers in the financial services sector, particularly in Letterkenny, and a growing pharma sector in Sligo.
Ireland actively promotes the gateway locations of Letterkenny and Sligo to FDI clients. The choice of location is driven by the client’s requirements and the suitability of the locations within the region. The final decision on where to locate an investment ultimately rests with the client company.
IDA Ireland Client Company Jobs in Donegal 2010-2014
|
County |
2010 |
2011 |
2012 |
2013 |
2014 |
|
|
Donegal |
No of Companies |
13 |
13 |
14 |
14 |
14 |
|
Donegal |
Total Jobs |
1,854 |
2,106 |
2,228 |
2,387 |
2,612 |
19. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation if he will report on all meetings with trade unions and other stakeholders in relation to establishing a living wage; and if he will make a statement on the matter. [38006/15]
Amharc ar fhreagraThe Living Wage concept is grounded in the idea that a person’s wage should be sufficient to maintain a safe, decent standard of living. Of course, it is not isolated from a State’s taxation and social support systems.
So, at an individual level the resources required to achieve a minimum essential standard of living is very dependent on family circumstances and thus the interaction of individual earnings with household income and State-provided supports such as Child Benefit, Family Income Supplement as well as those available in relation to housing, education and health.
In the UK, it is a voluntary code with which some employers, who already pay in excess of the UK national minimum wage, have become associated. The Living Wage concept there draws its strength from the fact that it is a grassroots civil society campaign. At present, around 1,500 separate employers across the country have endorsed the approach. In the UK the Living Wage Foundation has calculated the 2015 UK Living Wage as £7.85 and £9.15 for London.
While I am on record as endorsing the concept of a Living Wage I would differentiate between the application of a mandatory National Minimum Wage and a societal movement that would see employers volunteer to pay what might be considered to be a Living Wage.
The Low Pay Commission, which was established on a statutory basis in July this year, will on an annual basis examine and make recommendations on the national minimum wage, with a view to securing that the national minimum wage, where adjusted, is adjusted incrementally over time having had regard to changes in earnings, productivity, overall competitiveness and the likely impact any adjustment will have on employment and unemployment levels. The Commission presented its first report to me on July 17th in which it recommended an increase of 50 cent per hour to the minimum hourly rate bringing it to €9.15. That increase will come into effect on 1st January next.
I hosted a Living Wage forum in Dublin Castle on 30th September last which was attended by civil society organisations, trade unions and employers where discussion took place on the whole concept of a Living Wage in Ireland and whether and how it might be applied here. The Forum marked an important milestone in the national discourse on the living wage and I was very encouraged that so many employers have approached me in connection with supporting and developing the concept, and that significant employers have committed to pay the living wage. Further work is required on substance and detail about, for example, the proposed methodology behind the calculation of each year's living wage, about the impact on sub-contracting, outsourcing and the supply chain, about the cost of compliance in a business where affordability is a pressing concern and where adoption of the living wage would be a real and substantial commitment. The Tánaiste announced at the Forum that her Department would make €40,000 available to fund the next phase of work on the Living Wage Campaign.
20. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation the number of licence refusals to exporters producing parts for military goods abroad from 2011 to date; and if he will make a statement on the matter. [37152/15]
Amharc ar fhreagraMy Department is responsible for controls on the export of military items from Ireland. Under Irish law, military export licences must be sought in respect of the goods and technology, and any components thereof, listed in the Annex to the Control of Exports (Goods and Technology) Order, SI.216 of 2012 which reflects the EU Common Military List. The EU Common Military List includes military goods and technology, and components for such items that should be licenced for export from the Union. Items which are classified as “military goods” from an export control perspective and which are exported from Ireland involve components rather than military equipment, along with sports firearms and mining equipment.
My Department is also responsible for licensing those dual-use items controlled pursuant to Council Regulation (EC) No. 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items. While the term “dual-use” refers to those items that are normally used for civilian or commercial purposes but may also have a military application, the vast majority of dual-use licences issued by my Department are for commercial purposes.
All applications for export licenses are rigorously assessed having regard to the end-use and the end-user and against well-established criteria. The export licensing process centres on ensuring, as far as possible, that the item to be exported will be used by the stated end-user for the stated end-use, and will not be used for an illicit purpose, e.g. for use in connection with WMD. The safeguards built into the licensing system facilitate robust checks and cross checks in this regard.
The Department may refuse an export licence, following consultation with the Department of Foreign Affairs and Trade and other EU and international export licensing authorities as appropriate.
Export Licence Applications Denied
|
Year |
Number of Export Licence Applications Denied |
|
2011 |
4 |
|
2012 |
1 |
|
2013 |
4 |
|
2014 |
8 |
|
2015 to date |
5 |
Two of these refusals, one made in 2011 and one made in 2104, were made in respect of export licence applications for military list items. The remainder were made in respect of proposed exports of dual-use items.
21. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation his plans to introduce legislation to prevent tactical insolvencies such as the Clerys debacle. [37212/15]
Amharc ar fhreagraLimited liability of companies, through its 150 year history in Irish law, has always been a concession to enterprise – a means of incentivising and encouraging entrepreneurs to overcome aversion to risk and to make investments in business ventures that might be beneficial to the economy at large. This concession can be open to abuse and companies can use the corporate form to evade debts that they are perfectly able to pay, for example, through tactical insolvency of subsidiaries within otherwise solvent corporate groups. As a result, the legislature has developed a number of safeguards that are aimed at reducing the opportunities for abuse. The most important of these safeguards is the common law doctrine of piercing the corporate veil. This occurs where the veil of incorporation is used fraudulently to shield the owners of a company from liability, and where the subsidiary company is merely a “sham façade” of its parent company. In such circumstances, the owners of the company can be made liable by the courts for money owed by the company to its creditors, including employees. The courts are rightly hesitant to apply this doctrine liberally: much of the beneficial effect of the concession of limited liability would be compromised if veil-piercing occurred on a regular basis. However, it does give creditors recourse where they have been genuinely defrauded.
The Deputy will be aware that the High Court was informed at the hearing on 6 July 2015 that the liquidators appointed to wind up Clerys have identified a number of matters which they intend to investigate as part of the liquidation process. It is only when all the facts and events leading up to the winding up of a company are known – and any potential legal challenges raised – that an informed decision about amendments to existing law should be made. However in general the operation of the Companies Act 2014 is under continuous review, particularly through the work of the Company Law Review Group (CLRG). The current work programme of the CLRG specifically includes receivership, examinership and winding up.
22. Deputy Colm Keaveney asked the Minister for Jobs, Enterprise and Innovation when the 2016 Action Plan for Jobs will be published; if it will contain measures to help persons with a disability; and if he will make a statement on the matter. [37945/15]
Amharc ar fhreagraA key objective of the Action Plan for Jobs process, which this Government commenced in 2012, was to rebuild our economy based on enterprise and entrepreneurship, talent, innovation and exports and provide a solid foundation for future growth. Irish industry has to been to the forefront of the economic recovery, with our enterprises and entrepreneurs innovating, developing and improving their products and services to meet the needs of customers in markets across the globe.
The goal of this Government has been to replace all of the jobs lost during the economic crisis and deliver sustainable full employment by the end of 2018. This whole of Government effort has been integrated into the Action Plan for Jobs process which aims to strengthen the enterprise base, support entrepreneurship, improve competitiveness and support regional development. Since the launch of the first plan in Q1 2012, 126,000 more people are at work - exceeding the original target of an additional 100,000 jobs by 2016.
My intention is to publish the 2016 Action Plan in mid-January 2016. My Department is currently developing the 2016 Plan and is engaging bilaterally with Government Departments to identify actions to ensure that the 2016 Plan is as ambitious and impactful as possible and keeps us on track to achieve our goal to have 2.1 million people in employment by 2018.
The Action Plan for Jobs complements the Government’s Pathways to Work which sets out actions to be taken in support of those that are currently unemployed, in order to help them access the labour market and new job opportunities. The Tánaiste, and Minister for Social Protection, is developing a new Pathways to Work Strategy for the period 2016 to 2020.
Our Departments will continue to build on the progress to date through the Action Plan for Jobs and Pathways to Work to ensure that more employment opportunities are available to those who are seeking work, including persons with a disability.
23. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the reductions in investment in InterTradeIreland over the past five years. [37215/15]
Amharc ar fhreagraInterTrade Ireland is one of the six North/South Implementation Bodies established under the ‘Good Friday Agreement of 1998. The body operates from a single base in Newry, Co. Down and is jointly funded in a 2:1 ratio by my Department and the Department of Enterprise, Trade and Investment in Northern Ireland, respectively.
Intertrade Ireland operates an innovative range of schemes and programmes for SMEs on both sides of the Border to help companies develop their capacity. Over the years since its establishment, it has achieved significant positive results especially in terms of jobs impact and the development of first time exporters and first time innovators. Its services are significantly oversubscribed and many applicant companies have been unable to participate in specific programmes, due to resource constraints.
However these figures need to be qualified by the fact that InterTrade Ireland’s operating currency is the Pound Sterling and the fluctuating exchange rate and other related factors has necessitated some complex adjustments which are reflected in that data.
The position is that InterTrade Ireland’s effective underlying delivery budget has been subject to efficiency savings imposed by the Department of Public Expenditure and Reform and its counterpart Finance Department in Northern Ireland. For the years 2014, 2015 and 2016 cumulative savings of 4% annually have been set and these followed savings of 3% for the three years prior to that (2011-2013). Also, the Northern Ireland Department of Enterprise, Trade and Investment imposed a unilateral cut to the budget of InterTrade Ireland for 2015 of an additional 11%. In respect of this year we have temporarily resolved the issue by using InterTrade Ireland’s reserves, to make up the shortfall. Since 2012 my Department has contributed between €7m and €8m annually to Intertrade Ireland. The position for 2016 is uncertain but given the expressed views of the Northern Ireland authorities recently, the outlook for maintaining the body’s activities at current levels seems challenging.
My Department is committed to providing every assistance to support the work which InterTrade Ireland is doing. Their programmes in support of SMEs and the development of Cross Border Business has brought strong results over recent years and has assisted in retaining and also creating jobs in both jurisdictions, in addition to building on the Peace Process.
24. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if he is aware of the impact that the winding down of construction on the Corrib gas field is having on employment in County Mayo; if he or his Department has had any engagement with the agencies in the area regarding a transition plan; and if he will make a statement on the matter. [37995/15]
Amharc ar fhreagraThe Corrib Gas Field is part of the Erris Peninsula – a Gaeltacht area – and falls within the remit of Údarás na Gaeltachta. A memorandum of understanding (MOU) exists since 2009 between Enterprise Ireland and Údarás na Gaeltachta in relation to areas of cooperation and coordination between the two agencies. As part of this MOU I understand that:
- Údarás has held meetings with Shell (Erris Development Fund) where upskilling/retraining programmes were discussed. A training programme for 24 welding apprentices is currently being finalised.
- Údarás has provided administration space for Shell in Belmullet over a number of years where approximately fifty staff are employed. It is expected that this figure will grow or at least remain constant into the future.
- The Corrib Gas Field refinery will employ 175 full-time equivalents when fully operational.
- Údarás, in conjunction primarily with SEAI (Sustainable Energy Authority of Ireland) and other partners, have been seeking employment opportunities in the renewable energy sphere. Small projects are now beginning to materialise and provide cost saving benefits for the community and provide local jobs.
In relation to my Department’s enterprise development agencies, there are 18 IDA Ireland supported companies in Co. Mayo employing 3,932 people in total. IDA is currently undertaking a property investment programme, amounting to €150m over five years, in support of further job creation in regional locations. The agency has obtained planning permission to construct a facility in Castlebar. A process of procurement is underway and it is anticipated that the contractors will be on site by year-end. This is a positive development for attracting Foreign Direct Investment (FDI) into the regions, including Mayo, allowing such locations to compete with locations internationally.
The Action Plan for Jobs West Region, covering counties Galway, Mayo and Roscommon, is currently being finalised. The plan is aimed at delivering a 10-15% increase in employment in each region over the coming years. The Action Plan will identify specific measures that can be taken to help the region to realise its economic potential by building on its existing strengths and assets.
Through the Action Plan for Jobs process, progress is now starting to be felt in all regions, including the West and Co. Mayo. The following are some highlights:
- 5,000 additional people are at work in the West in the past 12 months;
- 3,000 fewer people on the Live Register in Mayo today compared with 4 years ago. In the past two years the numbers are down by 2,000;
- Employment in Mayo is up by 834 (12%) in companies supported by my Department (through IDA and Enterprise Ireland) over the past three years. In 2008-2010 employment in these companies fell by 400. A recent example is the 40 jobs announced in a €10m investment in a start-up distillery - the Connacht Whiskey Distillery - part funded by EI, in Ballina, North Mayo.
- Since the Government was elected, €3.3m in grants has been awarded to exporting companies in Mayo supported by Enterprise Ireland.
- The number of people employed by companies supported by the Mayo Local Enterprise Office increased by 53 in 2014 (a 5% increase); the Mayo LEO approved grants totalling over €450,000 to small and micro companies based in Mayo - to help them grow local jobs.
I am confident that by taking a whole of Government regional approach we can build on the significant progress already made and deliver the increased job-creation that is needed for Co. Mayo and the Western region generally.
25. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation the consideration he has given to the impact on neutrality of the almost 800 licences granted to exporters producing components for military goods in 2014; if his Department has discussed this matter with the Department of Foreign Affairs and Trade; and if he will make a statement on the matter. [37153/15]
Amharc ar fhreagra793 export licences were issued by my Department for the export of dual-use and military items during 2014.
95 of these were issued for the export of military items. My Department is responsible for controls on the export of these military items from Ireland. Under Irish law, military export licences must be sought in respect of the goods and technology, and any components thereof, listed in the Annex to the Control of Exports (Goods and Technology) Order, SI.216 of 2012 which reflects the EU Common Military List.
The EU Common Military List includes military goods and technology, and components for such items that should be licenced for export. Items which are classified as “military goods” from an export control perspective and which are exported from Ireland involve components rather than finished military equipment. A significant number of the 95 military licences issued during 2014 were issued to individuals holding sports firearms and to companies engaged in mining activity.
My Department issued 680 Individual Dual-Use licences during 2014, with 18 Global Dual-Use licences in use by exporters during that period. While the term “dual-use” refers to those items that are normally used for civilian or commercial purposes but may also have a military application, the vast majority of dual-use licences issued by my Department are for commercial purposes. Dual-use items are controlled pursuant to Council Regulation (EC) No. 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items.
My officials are in daily contact with the Department of Foreign Affairs and Trade on export control and export licensing issues. The Department of Foreign Affairs and Trade is consulted on all military licence applications and the vast majority of dual-use licence applications.
In addition to the day-to-day contacts necessitated by consultation with the Disarmament and Non- Proliferation Section of the Department of Foreign Affairs and Trade in relation to individual export licence applications, more formal liaison meetings take place on a regular basis to share information and to review strategic issues affecting export control.
Ireland is a member of several bodies which work to ensure the non-proliferation of goods and technologies which could contribute to the development of weapons of mass destruction, including nuclear weapons. These non-proliferation groups include the Wassenaar Arrangement, the Nuclear Suppliers Group and the Missile Technology Control Group.
26. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the level of local sourcing by multinationals in this State in percentage terms and in real terms, for each of the past four years. [37214/15]
Amharc ar fhreagraPurchases by multinational companies in Ireland of materials and services are an important source of opportunity for indigenous companies in terms of sales thereby creating additional economic activity and jobs in the economy.
My Department produces the Annual Business Survey of Economic Impact (ABSEI), which measures the economic impact of the client companies of Enterprise Ireland, IDA Ireland and Údarás na Gaeltachta, that employ ten or more employees in Ireland. It is important to note that the survey does not include multinationals operating in Ireland that are outside the scope of the agencies above. The level of local sourcing by agency supported multinationals in Ireland for the years 2010 to 2013 is contained in the attached tabular statement. This is the most up to date published data and data for 2014 will be available in the New Year together with any revisions to previous years data.
Since 2013, the Action Plan for Jobs, sets out under Global Sourcing Initiative, the road map to maximise the opportunity for greater sourcing of materials and services by IDA Ireland client companies from indigenous companies supported by Enterprise Ireland. Both agencies work together to expand the knowledge of Enterprise Ireland companies on global supply chain patterns and the requirement of multinationals, to raise the profile of Enterprise Ireland client companies among the multinationals based here in Ireland and to complete sourcing partnerships between such companies. As part of this Initiative, Enterprise Ireland companies are included on IDA Ireland itineraries to introduce them to overseas investors at an early stage.
As part of the Global Sourcing Initiative, last month I took part in a two day trade and investment mission in Ireland organised by EI and IDA Ireland. Over the course of two days more than 370 one-to-one meetings took place between 126 indigenous Irish companies and 69 multinational companies. Each location of the mission facilitated networking events to give Irish owned businesses the opportunity to engage directly with procurement teams from multinationals and discuss how their product or services could add value to an IDA client company in Ireland.
Annual Business Survey of Economic Impact 2013
|
Results for all Foreign-owned clients of the Enterprise Development Agencies (IDA Ireland, Enterprise Ireland, Udaras na Gaeltachta) |
2010 |
2011 |
2012 |
2013 |
|
Total Materials - Cost of materials and components used directly in the production of goods and services [exclude goods purchased for re-distribution only or any capital expenditure]. |
20,772 |
22,802 |
24,050 |
25,048 |
|
Materials sourced in Ireland - Estimated proportion of materials and components produced in Republic of Ireland |
2,518 |
2,862 |
3,289 |
3,634 |
|
Materials sourced in Ireland as a percentage of Total Materials purchased |
12% |
13% |
14% |
15% |
|
Total Services (inc. Royalties) Cost of all bought-in services, e.g. royalties, agency fees, advertising, transport, fuel, power, repairs, telephone, postage, stationery, computing services, professional fees etc. |
47,475 |
51,239 |
54,934 |
60,088 |
|
Services sourced in Ireland - Estimated proportion of services sourced in Republic of Ireland. |
9,418 |
10,763 |
11,072 |
12,028 |
|
Services sourced in Ireland as a percentage of Total Services purchased |
20% |
21% |
20% |
20% |
(All monetary figures in €000,000’s)
Source: ABSEI-2013, DJEI, January 2015
Data correct at time of publication. https://www.djei.ie/en/Publications/Annual-Business-Survey-of-Economic-Impact-2013.html
27. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the staffing and financial resource levels provided for local enterprise offices in 2015 in comparison with county enterprise boards in 2013. [37213/15]
Amharc ar fhreagraAs part of the Government Decision taken in 2012 to restructure State supports for the micro and small business sector the Government agreed to set up Local Enterprise Offices (LEOs) in each Local Authority area, with a staffing complement to come from both City and County Enterprise Boards (CEBs) and Local Authorities, and to be physically located in Local Authority offices. Upon dissolution of the CEBs in April 2014, all 122 existing CEB staff transferred into their respective LEO. Enterprise Ireland conducted a limited survey of LEOs in March 2015 to establish staffing numbers. The Survey showed that the total number of staff working directly in the 31 LEOs was over 180 (full time and part time) which included Local Authority staff as well as former CEB staff. In addition a LEO Graduate Employment Programme has been rolled-out under which 26 graduates have been assigned to the LEOs.
I have since asked Enterprise Ireland to work with the Local Authorities in evaluating LEO performance, scale of ambition, available resources, etc., in the context of delivering on the expanded remit of the LEOs with particular reference to their 2016 Local Enterprise Development Plans, Action Plan for Jobs commitments etc., the identification of best practice and utilisation of available resources. This will include a performance capability study of an initial group of LEOs to determine the level of expertise and experience currently available to those LEOs.
In accordance with the SLA between Enterprise Ireland and the Local Authorities, the Local Authorities, through the LEOs, deliver supports to the micro and small business sector at local level. In this regard, under Section 159 of the Local Government Act, 2001, each Chief Executive of a Local Authority is responsible for the staffing and organisational arrangements necessary for carrying out the functions of his/her Local Authority including the LEO function.
Where a Local Authority Chief Executive identifies a need for additional staffing in order to ensure continued delivery of key services it is open to him/her to pursue sanction for same with the Department of Environment, Community and Local Government.
In terms of funding, the LEO allocation in 2015 is €29. 454m while €25.935m was allocated to the CEBs in 2013. The main increase of €3.5m is in the Capital allocation (from €15m to €18.5m) to provide for increased support and investment in the micro and small business sector.
28. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation for an update on new investment, research and development expenditure, and new jobs by the IDA related to County Donegal in 2015; how this compares to 2014; and if he will make a statement on the matter. [37941/15]
Amharc ar fhreagraIDA Ireland markets Donegal as part of its North West Region, which also comprises Leitrim and Sligo. The main FDI activity clusters that have emerged in the North West are in the life sciences and engineering sectors, particularly in the manufacture of medical devices and automotive components. There are also a small number of large employers in the financial services sector, particularly in Letterkenny and a growing pharma sector in Sligo.
The number of jobs in IDA Ireland client companies in county Donegal, as per the 2014 Annual Employment Survey, rose from 1,854 in 2010 to 2,612 in 2014. I enclose the breakdown in the attached tabular statement. The figures for this year will not be available until the 2015 Annual Employment Survey is published early next year.
There are 41 multinational companies based in the North West, employing 5,294 across the Region (Annual Employment Survey 2014). Approximately 70% of all FDI investment won by IDA Ireland comes from its existing client base. Given the global economic operating environment in recent years, the existing client base has performed well in not only retaining their presence in Donegal, but expanding the number of employees. The most recent example of this was the announcement in July of this year by Pramerica of the expansion of its facility in Donegal by 330 jobs.
During 2014, grant payments totalling €1,800,000 were made in respect of employment grants to an IDA Ireland client company located in Co. Donegal. There were no Research Development and Innovation grant payments in 2014.
The choice of location is driven by the client’s requirements and the suitability of the locations within the region. The final decision on where to locate an investment ultimately rests with the client company
IDA Ireland Client Company Jobs in Donegal 2010-2014
|
County |
2010 |
2011 |
2012 |
2013 |
2014 |
|
|
Donegal |
No of Companies |
13 |
13 |
14 |
14 |
14 |
|
Donegal |
Total Jobs |
1,854 |
2,106 |
2,228 |
2,387 |
2,612 |
29. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation if he is satisfied that the oversight measures of his Department for controls on the export of military and dual use items from Ireland are adequate to ensure that such items are only used in accordance with international human rights law, in particular in regions experiencing conflict; if he will provide details of any discussions he has had with the Department of Foreign Affairs and Trade in this regard; and if he will make a statement on the matter. [37209/15]
Amharc ar fhreagraMy Department is responsible for controls on the export of military items from Ireland. Under Irish law, military export licences must be sought in respect of the export from Ireland of military goods and technology, and any components thereof, listed in the EU Common Military List.
Items which are classified as “military goods” from an export control perspective and which are exported from Ireland involve components rather than finished military equipment. Military licences issued by my Department include licences issued to individuals holding sports firearms and to companies engaged in mining activity.
My Department is also responsible for licensing the export of dual-use items outside the EU pursuant to Council Regulation (EC) No. 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items. While the term “dual-use” refers to those items that are normally used for civilian or commercial purposes but may also have a military application, the vast majority of dual-use licences issued by my Department are for commercial purposes.
The export licensing process centres on ensuring, as far as possible, that the item to be exported will be used by the stated end-user for the stated end-use, and will not be used for an illicit purpose. The safeguards built into the licensing system facilitate robust checks and cross checks in this regard.
All licence applications are subject to rigorous scrutiny, and are considered in the light of the spirit and objectives of the 2008 EU Common Position on Arms Exports. This position, the text of which is provided below, seeks to safeguard, among other concerns, regional stability and human rights.
The linkage between export control and international political, disarmament, human rights and security concerns, requires ongoing contacts, both formal and informal, with the Department of Foreign Affairs and Trade.
My officials are therefore in regular contact with the Department of Foreign Affairs and Trade on export licensing issues. They consult with that Department in respect of all military export licence applications and the majority of dual-use export licence applications.
All licence applications are examined on a case-by-case basis by officials of the Department of Foreign Affairs and Trade in the light of foreign policy concerns that may arise; such factors are subject to review in the light of developments in a given region. Any observations which may arise from this examination are considered in the final assessment of any licence application.
In addition to these day-to-day contacts with the Disarmament and Non- Proliferation Section of the Department of Foreign Affairs and Trade, more formal liaison meetings take place on a regular basis to share information and to review strategic issues affecting export control.
2008 EU Common Position on Arms Exports
The Code of Conduct on Arms Exports was adopted in 1998. The Code specified common criteria against which applications for exports of military goods should be assessed and was subsequently adopted as a Common Position Council in December 2008 (Common Position 2008/944/CFSP of 8 December 2008). My Department also assesses dual-use licence applications against these criteria. The criteria are as follows:
Criterion One: Respect for the international obligations and commitments of Member States, in particular the sanctions adopted by the UN Security Council or the European Union, agreements on non-proliferation and other subjects, as well as other international obligations.
Criterion Two: Respect for human rights in the country of final destination as well as respect by that country of international humanitarian law.
Criterion Three: Internal situation in the country of final destination, as a function of the existence of tensions or armed conflicts.
Criterion Four: Preservation of regional peace, security and stability.
Criterion Five: National security of the Member States and of territories whose external relations are the responsibility of a Member State, as well as that of friendly and allied countries.
Criterion Six: Behaviour of the buyer country with regard to the international community, as regards in particular its attitude to terrorism, the nature of its alliances and respect for international law.
Criterion Seven: Existence of a risk that the military technology or equipment will be diverted within the buyer country or re-exported under undesirable conditions.
Criterion Eight: Compatibility of the exports of the military technology or equipment with the technical and economic capacity of the recipient country, taking into account the desirability that states should meet their legitimate security and defence needs with the least diversion of human and economic resources for armaments.
30. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation if he will provide details of the co-operation between his Department, its agencies and Údarás na Gaeltachta. [37991/15]
Amharc ar fhreagraA Memorandum of Understanding exists since 2009 between Enterprise Ireland and Údarás na Gaeltachta in relation to areas of cooperation and coordination between the two Agencies. This was updated in 2013 to enable Údarás na Gaeltachta to optimise the resources available to its client companies through supports and programmes administered by Enterprise Ireland, with very specific criteria. A designated Manager in both Enterprise Ireland and Údarás operate as a single point of contact and this liaison arrangement drives the cooperation and coordination on operational and policy matters. Enterprise Ireland continues to support Údarás and cooperate on a number of policy areas including State Aid. Enterprise Ireland is currently developing a protocol with Údarás on behalf of the Local Enterprise Offices (LEOs). The aim of this protocol is to ensure that no entrepreneur or existing business is discriminated against in relation to Government supports. Údarás and the LEOs have a good working relationship at local level and this protocol will build on that relationship and ensure that Údarás clients have access to the extensive expertise of the LEOs through their training and mentoring programmes.
IDA Ireland has regular interaction with Údarás na Gaeltachta on relevant multinational client engagement and the marketing of the Údarás property portfolio.
In addition, Enterprise Ireland, the LEOs, IDA Ireland and Údarás na Gaeltachta have been working together (and will continue to work together) on the West Regional Action Plan for Jobs which is currently being finalised.
31. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he has sought the input of the indigenous SME sector with regards the development of the knowledge development box. [37211/15]
Amharc ar fhreagraA key objective of the Action Plan for Jobs process, which this Government commenced in 2012, was to rebuild our economy based on enterprise and entrepreneurship, talent, innovation and exports and provide a solid foundation for future growth. The recovery in jobs and exports to date is in large part due to the considerable improvements in the business environment for enterprise that have taken place in recent years. The measures announced by the Minister for Finance in Budget 2016 last month have further strengthened the attractiveness of Ireland as a place for entrepreneurship, innovation and investment. The specific focus on entrepreneurship and the range of measures to support small and medium sized enterprises in Budget 2016, including the Knowledge Development Box, are particularly welcome.
I am very conscious of the need to ensure the indigenous Small and Medium Sized Enterprises (SME) sector is in a position to avail of the benefits arising from the Government’s decision to introduce the Knowledge Development Box. Indeed, following the announcement of the Knowledge Development Box in principle in the 2015 Budget, my officials have had ongoing engagement with SMEs, including through the mechanism of the Advisory Group on Small Business, the Entrepreneurship Forum and with Enterprise Ireland and the Local Enterprise Offices (LEOs). Through all these mechanisms I have sought to ensure that the potential and flair of our SMEs can be harnessed and the Knowledge Box initiative is another valuable tool to achieve this goal.
My Department has worked closely with the Department of Finance, including through the public consultation process, to develop the detail of the initiative and to design-in the specific requirements of SMEs. At the outset, based on discussions with my Department a question specifically addressing SMEs was included in the public consultation process - “are there any provisions that should be included in the regime to specifically encourage small indigenous enterprises?” I was very keen to ensure that the Knowledge Development Box would specifically encourage small indigenous enterprises to get involved in research and development and to avail of the incentives being devised.
I am very satisfied that the final shape of the Knowledge Box, as announced in the 2016 Budget speech, will support and encourage SMEs to undertake research and development and protect the intellectual property that arises and benefits from the measure. The Finance Bill allows for the introduction of a provision pertaining to ‘companies with income arising from intellectual property of less than €7,500,000’ which will be introduced during 2016 when the necessary legislation to give it effect is enacted [Section 30, 769R] and will be particularly relevant for SMEs.
This initiative is a key fit with my long-standing commitment to, and ambition for, Irish SMEs, as key drivers of job creation and, increasingly, innovative development, which will help drive our economy forward.
32. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation the progress in dealing with the widespread problem of low pay and zero-hour contracts; the specific measures he is proposing to deal with this phenomenon; and if he will make a statement on the matter. [37998/15]
Amharc ar fhreagraI am pleased to inform the Deputy that, yesterday afternoon, following a decision by Government, I published the study by the University of Limerick (UL) on the prevalence of zero hour contracts and low hour contracts in the Irish economy. I also launched a public consultation process to give all interested parties an opportunity to consider and respond to the conclusions being drawn in the report and the recommendations being made by UL.
The University of conducted stakeholder interviews with 30 bodies as part of the study, including 13 employer/business organisations, 8 trade unions, 4 NGOs and 5 Government Departments/agencies.
It is important to point out that this is an independent study and the conclusions being drawn and the recommendations being made in the study are those of the University of Limerick. Therefore, it is essential that the various stakeholders who contributed to the study and indeed other interested parties who may not have had an opportunity to engage with the University of Limerick are given an opportunity to consider and respond to the findings and recommendations in the UL report. This will allow me to be more fully informed before formulating my own views on the policy recommendations that I should bring to Government arising from the study.
I would urge all interested parties to consider carefully the findings and recommendations of this study and would welcome submissions in response to the study.
33. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if he will outline the discussions he or his Department have had with suppliers or service contractors to his Department or to agencies of his Department to ensure that employees of such suppliers and contractors are paid the living wage; and if he will make a statement on the matter. [37996/15]
Amharc ar fhreagraThe introduction of the Living Wage Campaign is a voluntary initiative which I am championing. Over 120 employers, trade union representatives and civil society organisations gathered at Dublin Castle on 30 September to discuss the issues involved with both myself and the Tánaiste and Minister for Social Protection, Joan Burton T.D. participating.
The Living Wage Campaign has been designed as a voluntary initiative, centred on the social, business and economic case and is not one based on legislation. It is different to the National Minimum Wage which is a statutory pay floor.
As the economy recovers, it is an opportune time to review issues around wage levels, employment opportunities and competitiveness. In this context, I have brought together a significant number of individuals and organisations to discuss how best to progress the issue of a Living Wage on a voluntary basis. This is very much in keeping with my agenda that work should always pay.
Currently, my Department’s suppliers and service contractors are required to confirm that they have taken account of their statutory and legal obligations relating to the employment protection and working conditions of their employees in the provision of goods and services sought for my Department through the eTenders website.
34. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he expects Irish industry to continue to remain competitive on European and world markets, with particular reference to the use of innovation and technology as a means of maximising opportunities; and if he will make a statement on the matter. [37938/15]
Amharc ar fhreagraA key objective of the Action Plan for Jobs process, which this Government commenced in 2012, was to rebuild our economy based on enterprise and entrepreneurship, talent, innovation and exports and provide a solid foundation for future growth. Irish industry has been to the forefront of the economic recovery, with our enterprises and entrepreneurs innovating, developing and improving their products and services to meet the needs of customers in markets across the globe. I have witnessed this hard work and success first-hand, having led 29 overseas trade and investment missions since my appointment as Minister for Jobs, Enterprise and Innovation. Enterprise Ireland client exports reached a new record in 2014 of €18.6 billion, an increase of 22% over the last three years, with an additional 16,420 directly employed in EI firms over the period. I am confident that we have the potential to sustain this rate of progress over the coming years. The recovery in jobs and exports to date is in large part due to the considerable improvements in the business environment for enterprise, and in particular in the reforms we have undertaken in how we provide support to Irish enterprise and how we embed a culture of innovation and technological leadership in our enterprise base.
My Department will support over 60,000 gross new jobs next year. Enterprise Ireland will continue to target significant results in 2016, building on the impressive job creation and export achievement of its clients in 2015, by aiming to support over 13,000 new jobs and increase client exports to some €22bn in line with the Enterprise Ireland Strategy 2014-2016. The target for the LEOs is to support the creation of over 4,000 additional jobs in 2016.
Enterprise Ireland’s capital allocation will enable it to continue to support the development of the innovation and technological capacity of Irish industry. EI will provide management development programmes targeting the participation of over 1,000 individuals. EI will also support 100 Innovative High Potential Start-Up Companies in 2016 across a range of sectors including life sciences, ICT and food and continue the development of technology transfer in Ireland with a view to the creation of around 30 new spinout companies and delivering over 120 new pieces of commercially relevant technology for industry. EI will also issue six Competitive Start Fund calls with a target of financially supporting 85 innovative entrepreneurs across a number of sectors and will fund over 100 in-company R&D projects for client companies that are valued in excess €100,000. EI will work to support companies and academics to win over €150 million in research funding from the EU’s Horizon 2020 programme. More generally, EI will support almost 500 Innovation Vouchers enabling small businesses purchase innovation expertise from a third level institute and will further support the 13 existing Technology Centres, which are research centres of scale that deliver research solutions for sectors of companies.
Similarly, SFI will continue to fund the 12 SFI Research Centres, which represent an investment of €355m from the government and €190m from 200+ industry partners, both MNCs and SMEs. In 2016, SFI will support up to 10 new Spokes awards, 8 new Strategic partnerships and 50 Industry Fellowships. These programmes engage industry in collaborative research projects and leverage industry funding, both cash and in-kind.
While progress has been made, this Government is not complacent about the challenge of building the innovation performance of Irish industry base. As part of the 2015 Action Plan for Jobs we commenced the process of developing a new Strategy for Science Technology and Innovation which I will be bringing to Government over the coming weeks with stretch targets for the next five years.
