Oireachtas Joint and Select Committees

Tuesday, 19 June 2018

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Statement of Strategy 2018-2021: Engagement with the Department of Business, Enterprise and Innovation

4:00 pm

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail) | Oireachtas source

I thank the Secretary General for her presentation and wish her well with implementing the new strategy. The Department is new to me, in terms of my role as spokesperson for my party. I will start by making a few observations.

This country is now in a different economic cycle than heretofore and so too is the Department in terms of how it looks at the horizon and beyond. Various Departments oversee competitiveness and the key ingredients of skillsets, training and innovation. Their job is to ensure that we remain competitive and observe all of these disparate policies. That is my observation and is not meant as a criticism. Let us bear in mind that we all get up in the morning with a desire to do our best but sometimes Departments can become siloed. That can happen within a Department and between Departments. For that reason, I instance the skills, the skillsets and skill shortages that are very evident across the economy, primarily in trades, crafts and the wet trades in the construction sector. Work permits have been allocated in recent times for the agricultural sector and the transport sector faces a potential crisis. I do not use the words "crisis" and "shortages" lightly. Problems in the construction and transport sectors will quickly lead to very serious competitive problems.

The Secretary General has said that foreign direct investment falls within the remit of her Department. Amazon has announced that 1,000 additional jobs will be created over the next two years, and mostly in Dublin. These people will have to live somewhere. If we are serious about accepting that we are part of a globalised economy, and our competitors are from within the European Union and, possibly, from 29 March of next year, a third country located quite near to us will draw from the same labour pool. In other words, people from the European Union who work in the UK may no longer be able to work in the UK and we also have a common travel area. Therefore, Ireland could easily be seen as a place to find skillsets. Our labour market could compete with the UK labour market in the areas of construction, agriculture and in all areas of the economy, including health and education. Have we considered the matter in the context of Brexit?

I presume that the Department is Brexit proofing like every other Department. I view a competitive labour market as a key area. I realise that I have asked the Secretary General to analyse the potential impact of the unknown. I assume that various strategies have been or are being put in place, depending on the outcome of Brexit. One thing is for sure is that if we have a harsh Brexit on 29 March 2019 we will be on a cliff edge. I mean a lot of European people will no longer be able to work in the UK and we have a common travel area. Where will all of that leave our labour market? The UK will have to resort to using our labour thus increasing wage costs. Some people will benefit but such a situation may have a negative impact on the broader economy, particularly in terms of our competitiveness. Such a situation will make us less attractive to foreign direct investors and, therefore, less able to sustain our economy.

People talk about a competitive economy and all that is required in a complex economy. Our economy is very complex due to being so open and global due to its interdependence. Skills and skillsets are part of the Department of Education and Skills yet, primarily, the impact of the failure or success by that Department is directly and more immediately seen in other areas like the construction sector and in the broader economy. The strategy statement is a very bold document and we are good at writing documents in this country. However, most of the details on how to implement the strategy fall outside the remit of the Department of Business, Enterprise and Innovation, in terms of the strategy's success or failure. I ask the Secretary General to outline how she will ensure that the various Departments act in a cohesive fashion when it comes to implementing the strategy.

I wish to make a final comment about consumer affairs. I sometimes wonder whether we, as a country, are proactive enough or whether we depend too much on the European Union to nudge us when it comes to the protection of consumer affairs. Can we be more proactive as people, as a Government and as a State, in terms of advancing consumer protection rights and entitlements? Let us consider airlines and shipping companies. In terms of the latter, recently as many as 19,000 families were badly discommoded. Irish Ferries may not be directly at fault but it took the bookings and gave a guarantee to people that they could sail on certain dates. I have been left to ponder the following matters. Do we sometimes betray our own citizens by not having robust protection for consumers? More often than not, we seem to depend on the European Union to encourage us to protect our own citizens when it comes to consumer rights.

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