Dáil Éireann Debate, Tuesday - 27 February 2024
8. Deputy Richard Bruton asked the Minister for Further and Higher Education, Research, Innovation and Science if he plans to develop Skillnet Ireland in its capacity to accelerate adaptation to the challenges of sustainability and digital transformation of business models. [9082/24]
Amharc ar fhreagraI am asking this question on behalf of Deputy Bruton. Will the Minister outline the extent to which he plans to develop Skillnet Ireland in its capacity to accelerate adaptation to the challenges of sustainability and the digital transformation of business models?
As both Deputies Durkan and Bruton will be aware, the digital transition fund, administered by Enterprise Ireland on behalf of the Department of Enterprise, Trade and Employment, aims to increase the digitisation of all businesses in respect of products, processes, supply chains and business models. It seeks to help companies at all stages of their digital journey, from simply going online, in the first instance, to using digital technologies to develop new markets and business models.
In recent months, my Department has supported the roll-out of the Department of enterprise's digital portal to support the transition fund, in addition to the €1 million I was pleased to announce in budget 2024 to bolster Skillnet Ireland's capacity to support industry digitisation. For the first time ever, we are going to launch an SME incentivisation scheme, with €1 million to help small businesses begin to upskill and reskill in the areas of digital transition and climate transition. The pilot will aim to boost participation in lifelong learning in the small and medium enterprise sector and is anticipated to be up and running later this year.
Skillnet Ireland's already-extensive work in this space is impressive and I thank the agency for it. It is working to address the twin challenges of our time, namely, the green and digital transitions. In total, more than 19,200 workers benefited from sustainability in digital transformation upskilling programmes in 2022. The agency has a series of targeted initiatives, including the climate ready academy, the innovation exchange and its industry- and region-specific business networks, each with its own objectives. Through its national schemes and dedicated digital focus networks, Skillnet Ireland is also supporting our national digital strategy by delivering increased upskilling and talent development initiatives needed to accelerate high-level digital skills in new and emerging technologies and to help achieve the EU target of 90% of our small and medium enterprises having basic digital intensity by 2030. My Department will continue to work closely with Skillnet Ireland this year to further strengthen its already-significant contribution in these areas.
I thank the Minister. To what extent has he been in a position to identify weaknesses within the system and specific areas where business and enterprise might be under pressure to meet the challenges of the future?
Does the Minister believe sufficient resources are available to those businesses and to Skillnet Ireland to meet those challenges?
The Deputy has asked an excellent follow-up question. On resources, we are increasing the budget of Skillnet Ireland, which is an incredible agency, massively. The budget of this organisation in 2017 was €18.2 million. In 2024 the budget is core funding of €41.4 million plus a further €10 million. We have gone from €18.2 million to €51.498 million between 2017 and 2024. Year on year we have been investing more in Skillnet to help it meet the training, upskilling and reskilling needs of business.
The honest answer is that there are two areas of challenge. The first is that SMEs need to be supported with the costs of accessing training. SMEs that do not have a HR department or an education department still need to be able to find a way to help their workers to upskill and reskill. That is so important and it is what makes the SME incentivisation scheme so important, providing financial assistance to small and medium businesses, for the first time, to meet their upskilling and reskilling needs. The second area is life-long learning and making sure education is provided in an accessible way so the person in work can access upskilling while holding down a job.
I thank the Minister for his comprehensive reply. What advice would he give to industry and businesses of all sizes in the face of the challenges that lie ahead, given the supports that are available through Skillnet?
I am very reluctant to give advice to business owners because I know how hard they work at the coalface. They have to make wage bills every week and month but I want businesses across the country to know that there is a suite of supports available and in place for them to help them, their business and their individual employees to upskill and reskill. We now have micro-qualifications available at Irish universities and through further education and training. There are many ways that people in work can access education including part-time and online. Additional supports will be in place from September to provide for the fees for part-time learners if their household income is below €56,000. We intend to do more, including looking at how we can put the National Training Fund, into which employers pay, to work to bolster the skills infrastructure in this country.
