Oireachtas Joint and Select Committees

Tuesday, 26 February 2013

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Action Plan for Jobs 2012 and 2013: Discussion with Minister for Jobs, Enterprise and Innovation

3:25 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

Deputy Lawlor referred primarily to legislative matters, specifically the workplace relations Bill, legislation to merge the Competition Authority with the National Consumer Agency, and the Legal Services Regulation Bill. He also noted the failure to reach the IDA's regional target for the establishment of new companies. In securing 13 new start-ups, we fell a little short of the 15 fresh starts we had hoped to achieve but that was still a substantial improvement on the previous position. All the targets have been designed to stretch us. We have identified the tendency of legislative ambitions to run ahead of the capacity of the system to deliver. This has been the case with the majority of the targets that were missed.

Deputy Lawlor also asked whether it would be better to have 100 small energy efficiency start-up projects rather than 20 flagship projects. There are different components to our plans in this area. The Sustainable Energy Authority of Ireland will focus on smaller types of project, the pay-as-one-saves scheme will be aimed at domestic households and the exemplar projects are in the public and commercial sectors. A fund is being established with some State money and matching money from the private sector. This model of joint funding will be used to finance energy saving companies which will secure a return on their investment from the savings generated from an upfront investment in energy saving works. If this approach is effective, it will create a recycling pool of money, as it were, that can generate more activity. The savings made will fund further activity.

Mathematics has been targeted as the most significant element of the curriculum from the perspective of the information and communications technology, ICT, sector. For this reason, the plan targets an increase in the uptake of mathematics to 30% by 2020. That science is not targeted does not denigrate the subject. Figures from college courses indicate that high placement rates are not so much in science but in engineering and mathematics, both of which are in strong demand. There is a correct emphasis on trying to build these skills in basic higher level mathematics.

Procurement is addressed in section 8.3 of the action plan, which deals with maximising procurement. The objective is to try to deepen the innovative procurement we started last year by getting more people involved in it and to police the reduction of barriers for small and medium-sized companies. Deputy Lawlor is correct that there is a move towards more centralised purchasing. However, efforts are also being made to ensure obstacles are not placed in the path of such companies. One problem that has frequently cropped up is where an unrealistically high threshold is set in the contract for insurance or previous business. We are trying to weed out such unnecessary requirements and the National Procurement Service is committed to opening up opportunities for small and medium-sized companies. While there will be an emphasis on consolidating purchases to secure best value, efforts will also be made to enable smaller companies to apply for contracts through the use of smaller bundles and collaborative tendering in which groups come together to make bids. Both Enterprise Ireland and InterTradeIreland have good programmes in place for supporting companies which are trying to get into the area of procurement.

Last year, we made use of the competitive start fund and chapter 10 sets out a number of initiatives in this area. We did not establish a dedicated fund with a new administration for female entrepreneurs but used an existing scheme administered by Enterprise Ireland. The system was in place and we created a dedicated competition for women. This type of approach has worked well and could be used for youth entrepreneurs. This would mean using an existing instrument and holding a dedicated competition aimed at a certain segment, rather than establishing a fund similar to the National Youth Council's fund with a separate administrator.

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