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

Even in those areas one is seeing pay increases. There is a mixture of low and high pay, but that is as one would expect. It is well beside the point to pretend that this is in somehow an increase in low-paid employment. Much of it is in very highly paid professional services, such as ICT. Much of the growth areas are in strong sectors with a good, firm, solid base. It is worth taking a look at some of the recent announcements. Since the turn of the year we have had such announcements in Fermoy and Dundalk, as well as Combilift in Monaghan, Lakelands in Cavan, Apple in Athenry, Airbnb in Dublin and Northern Trust in Limerick. These are all in high-paying, good, solid sectors offering long-term prospects. It is particularly good to see the strength of companies like Combilift, which are combining with other companies to make a pitch to the new apprenticeship scheme. We will see such companies using the education and training boards to fuel the next phase of growth. That is what we need to see and it is something that we are encouraging very much.

I hope something was not lost in translation but I think Deputy Tóibín was concerned about the prospects of people aged under 35. There is no doubt that emigration has hit that age group most strongly but unemployment levels are falling in those age groups and we are seeing growth there. There is now solid demand for employment in a lot of new sectors. We are seeing recovery right across areas, including construction, that were traditionally driving emigration. It will take time to get emigration down but it has dropped by 30% in the last 12 months. The data show that and it is a significant and healthy step.

In a small open economy one needs to examine the net emigration figure. People are leaving and coming, which is a feature of the Irish environment. We want to ensure that on balance there are more people coming than leaving. That is the target we are trying to achieve. Our ambition for full employment is the only credible approach. The sort of policies that will make that a reality include a focus on enterprise, competitiveness and innovation, particularly in these Irish-based companies. These are still the drivers we will need to ensure growth and, indeed, tax policy is consistent with that.

The IDA has set targets for a 30% to 40% increase in the number of projects in each region. The IDA admits it did not hit the target on the last occasion but as we have discussed in this committee on a number of occasions it is steadily growing that. Back in 2011, it was just 23%, while last year it was up to 37%. There is traction, therefore, and that continues to be the case, as can be seen from some of the announcements since the turn of the year, particularly the one in Fermoy. Anyone who has visited Fermoy will know what a great boon that was, as is the Athenry decision. There is a proven track record given that the IDA is putting nine advance facilities into each of the regions. It is a proven model whereby the IDA can win projects and it will also enhance its ability to deliver this target.

The employment base in the LEOs is a combination both of the existing county enterprise boards, as they were, and the new local authorities.

We are continuing to work with each of them to ensure there is a proper complement of staff. We also have sanction for some recruitment within the LEO network where we will be filling posts and we will have a graduate programme under which we will supplement the LEOs with graduate placement.

The Deputy raised the issue of clusters. That is a challenge that is part of the regional strategy. The IDA will be seeking to build off the base of the institutes of education and the existing base of companies. Clearly it will work with the pharma industry, not only in the south but in the south east where there are strong medical devices and ICT in the west in several regions. As food is increasingly seen as a very strong cluster in certain regions it must be developed and we are seeing engineering particularly connected to agriculture which is a really strong cluster. The way to build those is by having the apprenticeship schemes and research and to develop support and clustering of those companies. One of the things we would hope to see emerge from the regional call is that there are serious clusters forming within regions around which a network can be built. While Enterprise Ireland and the IDA can, to a degree, from their own knowledge of their base identify the clusters, much of this is about getting people to come forward with their own commitments, to work together and to draw down funds on the basis of the quality of proposals that are put together. This is a way of developing new clusters or new networks or maybe just start up hubs or accelerators.

There are many things we could see emerge in our regions that would strengthen their capacity. It may be food hubs or design hubs. There are different ways in which we could play off the strengths of any one of those regions and their base of companies and their education base. Waterford Institute of Technology is outstanding. As it is located in the south east I know it better but there are some very strong technologies there from which one could see a greater regional impact emerge.

The Deputy raised the issue of online trading. This is a huge change that is occurring and it is impacting on the high street. We are putting in place online vouchers. The former county enterprise boards and now the local enterprise offices are encouraging more people to go online. The online route is a very successful strategy for many rural based businesses and is doing very well. I could show members dozens of companies which have transformed their performance and their prospects through very good online trading models.

I do not deny that we continue to have a problem in rural high streets. I am aware from people I meet that there is a change in the way people consume literature, music and even boutiques are changing. There is a huge change and it is posing serious challenges to some of our traditional high street activities. We have to innovate, there is no way of going back. One cannot tell consumers to change back to the way they were, we have to offer ways to adapt. Online trading and the smarter retail compliance portal which we are developing are ways of helping the retail sector to get through this difficult period. In time, consumer demand recovery will be a big part of this and we are gradually beginning to see that recovery spread. It is making an impact. It can be seen in certain areas of retail but, unfortunately, not on all parts at this stage.