Oireachtas Joint and Select Committees

Tuesday, 29 September 2015

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Estimates for Public Services 2015: Vote 32 - Department of Jobs, Enterprise and Innovation

1:30 pm

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I thank the Minister, the Minister of State and their teams. I have specific questions on the various programmes that come under programme A.

The Minister referred to the importance of entrepreneurship, which is a sentiment we all support. He also quipped to Deputy Lawlor that a company selling sandwiches to the Kerry Group would not receive any support. An entrepreneur could justifiably have a business selling sandwiches or setting up an operation. Many businesses do not want to export but wish to provide a service and they are frustrated that only limited cash supports are available to them.

On entrepreneurship generally, the National Competitiveness Council has been damning about policies on entrepreneurship. Its competitiveness scorecard notes that "elements of Ireland’s environment for entrepreneurship are relatively poor in an international competitiveness context; in particular, reducing the time and complexity of procedures associated with enterprise start-up". This statement was made by an agency of the Department in reference to one of the Department's key roles. In the context of our earlier discussion on setting goals, what specific goals has the Minister set on the issue of competitiveness?

On subhead A5, which relates to IDA Ireland, will the Minister provide an update on the current position regarding the property roll-out of what used to be known as advance factories? I presume the Department has introduced a fancy new name for these factories. What is the position regarding the expenditure profile in this area? I note the Department's expenditure on capital was 3% ahead of profile at the end of August. Will a Supplementary Estimate be required for capital expenditure that is specifically connected with the roll-out of capital by IDA Ireland?

The Minister provided a series of figures on job announcements. What was the position at the end of August with regard to job losses in IDA Ireland-supported companies? One of my consistent quibbles with the Department is the large amount of spin and dreaming in which it engages regarding jobs figures. The briefing refers to some of the jobs figures announced by various companies. For example, the public relations material provided at the beginning of the year indicated Apple Galway would create 300 new jobs when the correct number was 150. Furthermore, it stated that Lakeland Dairies in Cavan was creating 261 jobs.

The actual number of jobs announced that are funded by the agencies is 81. We welcome job creation but many of these job announcements are short-term construction jobs which are not being created by any of the departmental agencies.

On A8, local enterprise development, perhaps the Minister would give us an overview in terms of where we are at with the local enterprise development offices, LEOs, which are one of the Minister's biggest creations. How are we doing in terms of consistency? One of the Minister's objectives was to ensure consistency of service around the country. How is the relationship with Enterprise Ireland in particular and what, in terms of the service level agreements, is it bringing to the equation? I commend the Minister on the young entrepreneur competition which is beginning to take off and has resulted in some fantastic enterprises. My concern is for the person wishing to start up a business but not wishing to export for whom there is no back-up available even though he or she might be providing an innovative service.

On A12, the temporary loan guarantee scheme, what now is the Minister's timeline in relation to the credit guarantee scheme, particularly in regard to the roll-out of the proposed legislative changes? I acknowledge the significant changes in Microfinance Ireland, which I think also comes in under subhead A12., over the past 12 months. I specifically welcome the change announced in the past few weeks in regard to a bank refusal letter no longer being required. I acknowledge the big changes Michael Johnson has brought to the organisation since coming on board.

On the regional jobs action programmes, perhaps the Minister would update the committee on where we are at in that regard. I know that he has announced the midlands and, I think, south east programmes but what are the launch dates for the remaining programmes? I wish again to emphasise the frustration that is being expressed in relation to regional job programmes. The Minister said there is good regional spread in terms of job announcements. The figures we have up to the end of June would suggest that IDA Ireland site visits continue to be Dublin focused. The labour force in many counties in the BMW region, particularly the west region, is continuing to decline. A generation of people who want to work in the area are being driven away, which is depriving us of people who might actually set up the businesses of which the Minister speaks. Apart from the regional action plans, many of which we have not yet seen, there does not appear to be any kind of push to tackle this issue. Job creation in the city is fine but areas outside the cities also deserve a chance.