Mary Coughlan (Donegal South West, Fianna Fail)

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"recognising the challenge faced by many individuals and families following the loss of a job or income during this difficult economic period;

acknowledges the strong matrix of State supports the Government has put in place to support job-seekers and families;

endorses the initiatives taken by Government to strengthen national competitiveness and underpin future economic growth;

supports the actions set out in the Government's smart economy framework and its commitment to make Ireland a leading knowledge and innovation economy;

commends the Government for implementing policies which aim to support enterprises, protect jobs and stimulate employment creation, including the:

— ongoing work of Enterprise Ireland and IDA Ireland in attracting foreign direct investment and promoting enterprise development and employment growth in businesses;

— introduction of the enterprise stabilisation fund that will invest €100 million in supporting viable but vulnerable companies in these difficult economic times;

— introduction of the employment subsidy scheme, which will between 2009 and 2010 invest €135 million in either directly or indirectly supporting approximately 80,000 jobs;

— introduction of a PRSI exemption for employers creating new jobs this year;

— maintenance of substantial capital investment programme across Government;

— implementation of key Government programmes such as the €425 million Rural Development Programme 2007-13, creating some 12,000 jobs, and the €1 million invested each week in the home energy savings scheme, providing work for some 3,690 registered contractors; and

— provision of key infrastructure, such as broadband, where the number of subscribers has doubled during the lifetime of this Government, and electricity generation from local renewable sources, where at 15% we have already met our target for 2010;

and commends Government actions in support of activation and training for the unemployed through:

— its €1 billion funding for a range of labour force measures which will assist those who have lost their jobs;

— the prioritisation of four cohorts of the unemployed, including those under 35 years of age, for priority access to the State's support services for the unemployed;

— the doubling of capacity in job search support services for the unemployed;

— the continued increase in the number of training and work experience places for the unemployed, now standing at 147,000 places;

— the introduction of new initiatives such as the work placement programme which includes special provision for graduate places;

— the almost 10,400 training places for the unemployed and those on short-time working that will be provided by Skillnets and FÁS this year;

— special arrangements to assist 4,000 redundant apprentices progress their apprenticeships;

— the provision of opportunities for 166,000 learners, including those with basic skills needs, in further education programmes operated by VECs across the country;

— the 140,000 full-time enrolments in our higher education sector, an increase of 4.5% over the 2008/09 academic year;

— the 1,000 free or highly subsidised part-time places offered to unemployed graduates to pursue postgraduate programmes in higher education institutions last autumn;

— the significant increase in the numbers of back to education allowance recipients to over 18,000;

— the maintenance of service provision for communities and the provision of employment for 2,600 participants under the rural social scheme and 2,700 participants under the community services programme; and

— the introduction of a new €20 million labour market activation fund aimed at supporting innovative proposals that are progression orientated for the unemployed."

Job creation in this country is the issue that tops my and this Government's agenda. It is the driving force behind so much of our work in stabilising our public finances and in getting our banking system working again. It is the reason that, in a time of significant current budget deficit, we are continuing to invest so heavily in our capital programme, in building necessary infrastructure and in enterprise, research and development. The Government is working hard to overcome the challenge of the live register figures. We are conscious that people across the country want to know we are taking the actions necessary to ensure Ireland is well positioned when this period of economic turmoil comes to an end. If we are remiss in anything, it is in terms of getting the message out to the public about what we are doing.

While I will elaborate on a number of these points, I will set out for the record just a portion of the work that I have undertaken as Minister for Enterprise, Trade and Employment over the period to date. The initiatives taken include, among others: introducing the employment subsidy scheme to help retain jobs in our vulnerable exporting companies; introducing the enterprise stabilisation fund to help protect jobs in our exporting companies hit by current difficulties; mandating comprehensive strategy reviews in IDA Ireland, Enterprise Ireland and Shannon Development; putting in place a code of conduct for business lending to SMEs in order that our SMEs know where they stand with regard to the banks; establishing a credit supply clearing group to tackle the credit supply issue, to establish the facts and to take on the spin and the myths; ongoing work on a proposal to Government for the establishment of a targeted loan guarantee scheme; successful introduction of a commitment by the Government to pay its debts to business within 15 rather than 30 days; a revamp of our public procurement policy to ensure greater SME access to public contracts; introduction of two separate Company Law Acts, the first to toughen our company law regime against potential abuse and the second to ensure Ireland is best positioned to maximise the attraction of job creating foreign direct investment; achieving the introduction of new tax changes to support job creation through research and development and the development of intellectual property assets in Ireland; securing the introduction of a PRSI exemption for employers creating new jobs this year; targeting enterprise funding and resources at new areas for job growth, such as the green enterprise sector; despite the financial situation, prioritising and investing significant capital moneys in research and development, science, technology and innovation for future job growth; rolling out a new marketing campaign to encourage investment in Ireland from our FDI target markets; putting in place an unprecedented level of training and activation measures to assist those seeking employment; introducing new and innovative programmes established to keep people in jobs deemed vulnerable and to get graduates work experience; opening training and activation opportunities to private and voluntary sector providers through the €20 million labour market activation fund; new types of FÁS courses to train and re-train people for jobs in new sectors, such as the green economy; increasing the number of places available on community employment schemes; and successful application for European Globalisation Fund funding for former Dell employees, with two other applications in progress at present.

I am confident that I, and the Government, are pursuing the correct policies that will enable this economy once again to return to growth and, more importantly, employment creation. Ireland as a small, open economy, is especially reliant on foreign trade and we are focused on ensuring that we can take advantage of the upturn in international growth and trade. Encouraging and positive trends are now visible. In recent months, international organisations such as the IMF and the OECD have upgraded their economic forecasts. In its most recent update in January, the IMF forecast that global economic growth would expand by 4% in 2010 and in 2011. This represented a substantial upward revision from its previous forecast which was published in October. Established trading partners such as the UK, the euro area and the United States are all expected to experience growth in the medium term, representing renewed opportunities for our exporters. Similarly, Irish exporters are making inroads into less familiar emerging markets whose growth remains buoyant.

In the past 18 months, Irish exports have performed extremely well in comparison with international counterparts. That must be reiterated because it is not getting across as part of what we have achieved. My goal is to maintain and enhance the policy environment that has facilitated this resilient performance and that will drive future export growth. We estimate that every job in Ireland associated with exporting sustains another job in the domestic economy.

International investment will continue to be a key driver of employment, exports and growth. We will continue to market the Ireland brand as a location of choice for new and existing investors. In September, I launched IDA's new innovation-focused overseas market campaign, designed to position Ireland as the pre-eminent location for companies that are seeking to invest in future innovation. It has received great acclaim in many of the serious publications in the United States. During 2009, we won a total of 125 foreign direct investments. Almost 70% of these investments were from existing IDA clients who are making further investments in this country, reinforcing Ireland's reputation as a key strategic global business hub.

In these turbulent economic times it is extremely significant that many of the world's leading companies continue to invest in Ireland in a wide array of activities including high end manufacturing, global services and research, development and innovation, RDI. In absolute numbers, Ireland is moving up the global rankings with regard to employment in research and development, having risen from 19th to 11th position in the latest "Global Location Trends" survey, which is a testament to the SSTI strategy being pursued. During 2010, the IDA will continue its work to capitalise on our quality workforce, our creativity, our international attitude to business, attractive incentives for research and development and our favourable tax climate to attract multinationals to set up a base in Ireland as a launch pad for markets in Europe, Africa and the Middle East. Already in 2010 there have been seven IDA supported announcements in Dublin, Galway and Tullamore and there will be a further significant announcement for the north east this week.

We are also working to develop the opportunities for Ireland to become a key European hub for the international funds industry. In this regard, I look forward to the proposed changes in the Finance Bill to strengthen Ireland's competitive edge. I also tasked the IDA with developing a new strategy for the future direction of foreign direct investment and it will be published shortly. It will include specific initiatives which the IDA will undertake to retain existing, and secure new, foreign direct investment. This strategy will identify the opportunities in foreign direct investment markets, while stressing the importance of restoring our relative international competitiveness so we maximise our potential to attract foreign direct investment. We have a new narrative here, which is our cost competitiveness as well as our reputation as a good place to do business, our talents and skills and our transparent tax regime.

Enterprise Ireland also delivers a wide range of supports to Irish companies, targeted at the specific requirements of clients throughout all regions to ensure that they develop to their full potential in terms of innovation and exports, which in turn stimulates job creation. Enterprise Ireland, in recognising the significant changes in the current economy both in Ireland and globally, has prepared a recovery strategy to identify the actions that will be undertaken to help clients in 2009 and 2010. I refute Deputy Deasy's comments on the work being done by the Department's agencies. They have clearly refocused on sustaining employment and creating new employment in particular sectors where there is huge potential for jobs and growth. Enterprise Ireland has focused its efforts on strengthening and sustaining companies of strategic importance through a range of initiatives focused on the needs of its client base.

With regard to my appointment of the chairmen of Enterprise Ireland and the IDA, nobody in the House could say that Mr. Liam O'Mahony is not a man of tremendous business acumen, strength and focus. That is the reason he was appointed and I thank him for accepting the appointment. He will clearly drive the IDA agenda. Many of the Deputies will have met Mr. Hugh Cooney. I have never met a man as enthusiastic and eager to support enterprise in this country. Mr. Dempsey who was appointed to FÁS - I am sure the Leas-Cheann Comhairle knows him - is a man of great energy and sincerity and will drive the agenda to the best of his ability with the members of the board who are clearly focused on what we can achieve with the strategic supports in place in our enterprise agencies.

The county and city enterprise boards continue to provide support for small businesses in the start-up and expansion phases. Job creation is an inherent consideration in the activities of the boards which will continue to assist micro-enterprises through direct grant aid to businesses and project promoters and the provision of a range of other important business supports such as mentoring, business training and business advice designed to stimulate indigenous enterprise creation and boost employment creation. The Minister of State has been very focused on renewing the focus and role of county enterprise boards which clearly have a local response to local needs and work closely with Leader companies under the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív.

The development of the smart or innovation-based economy is the key challenge facing Ireland as we lay the ground for economic recovery. We are well aware that our enterprise and investment landscape must continually be transformed to be competitive. Today the model for which we strive, as the basis of our economic renewal, is the smart economy, built on the dual strengths of our innovation and entrepreneurship. The Government has made a major commitment, through substantial public investment in the strategy for science, technology and innovation, SSTI, to making such a transition to the smart economy. This whole-of-government strategy focuses on research and the application and commercialisation of the fruits of that research and is spread across six Departments.

In December 2008 the Government reinforced the importance of the investment in the SSTI in the paper, Building Ireland's Smart Economy - A Framework for Sustainable Economic Renewal, which prioritised continued investment in science and engineering infrastructure and research. For us, building a smart economy is about the development and application of human capital, that is, the knowledge, skills and creativity of people, and our ability and effectiveness in translating ideas into valuable processes, products and services. In this context, Science Foundation Ireland is playing a critical role in building our competitive academic research base, while maintaining a strong focus on excellent research. This work has been highly rewarding as today Science Foundation Ireland funded researchers are connected to more than 300 companies in Ireland which support the employment of 56,000 people.

The objective of the research and development programmes administered by the State agencies is to harness the benefits of research collaboration for the benefit of the economy. This entails building a strong cadre of indigenous firms and attracting and further embedding leading multinational companies here. This is the essence of the SSTI which is proving to be the engine of economic growth. At this time of scarce economic resources, the Government has allocated €600 million to SSTI Departments and agencies in 2010 and we are confident that the net gain from such sustained investment will be more and better jobs.

If we examine the progress made in recent years, it is clear investment in the higher education sector is having a significant impact in terms of Ireland's human capital development, feeding through to the attraction of foreign direct investment and commercialisation. For example, last year 49% of the IDA's foreign direct investment wins were research, development and innovation related, valued at €500 million and built upon initial investments made through Science Foundation Ireland and the HEA. We are working to encourage indigenous enterprises to prosper. Evaluations of State support for research and development show that research and development performing companies have higher rates of growth in turnover, exports and employment and much higher productivity and export intensity than lower research and development performing companies.

New high potential start-ups will make a substantial contribution to export and job growth. In 2009 Enterprise Ireland supported 73 such companies across a wide range of knowledge-intensive sectors, including life sciences, biotechnology, medical devices and telecommunications, and a number of specific niche areas such as compliance and risk management. These companies are expected to create significant numbers of new jobs in the next three years, demonstrating that entrepreneurs across the country are capable of creating high value, export-focused businesses which support employment. It is only by implementing these policies and targeting our limited resources that we can can hope to position Ireland as a competitive, innovative location in which to do business, grow business and employment and create prosperity.

Ensuring our enterprises receive the support to assist them through the current difficult period is key to safeguarding employment, which is why I have introduced a broad range of enterprise support measures. Last year the Government introduced a €100 million enterprise stabilisation fund which aims to support viable but vulnerable companies experiencing difficulties because of the current economic climate. Companies receive funding which will go to support a range of activities, including market development, productivity improvements and product development. In 2009 €58 million was spent on 181 projects, supporting 7,500 jobs. The fund continues to be rolled out this year.

I am also very keen to support SMEs and particularly aware that there are difficulties for some businesses in accessing credit. To address this issue, the Minister for Finance announced a new credit review system in budget 2010. The credit review system will examine the credit policies and practices of the banks, in particular those pertaining to SMEs. This new system will inform the Government as to what further action might be necessary to secure the flow of credit to Irish enterprise and, through publication of the analysis from the review process, to help ensure the performance of the banks participating in NAMA is obvious to all.

An additional measure to support enterprises in retaining employees is the employment subsidy scheme which was introduced last year. Between 2009 and this year we are investing €135 million in this scheme, under which enterprises receive a subsidy of up to €9,100 for each subsidised job. There have been two calls under the employment subsidy scheme. The second is being assessed and it is expected that between the two approximately 80,000 jobs will be either directly or indirectly supported. The enterprise stabilisation fund and the employment subsidy scheme reflect the Government's commitment and determination in assisting companies overcome this difficult period. Between the two schemes, we are investing €235 million directly in enterprises and safeguarding thousands of jobs and securing our enterprise capabilities in the process.

The Government is also encouraging employers to create new jobs through reducing the costs associated with employment. Under the employer jobs PRSI incentive scheme, when an employer creates a new job and takes on a person who has been unemployed for six months or more, the employer will be fully exempt from the liability to pay PRSI for the first year of that employment. This will give employers an 8% to 10% saving on employment costs for each new job created. It will actively encourage the creation of new employment now when it is most needed.

The PRSI exemption for employers creating new jobs this year is in addition to the maintenance of the substantial capital investment programme across government. Included in this is the national development programme and the implementation of key Government programmes such as the €425 million rural development programme 2007-13 which is creating some 12,000 jobs and the €1 million invested each week in the home energy savings scheme which provides work for some 3,690 registered contractors. The Government is also investing substantially in the provision of key infrastructure such as broadband, in respect of which the number of subscribers has doubled during the lifetime of the Government, and electricity generation from local renewable sources, in respect of which, at a figure of 15%, we have already met our target for 2010.

As I said, the Government remains fully committed to upskilling the unemployed in order that they will be successful in getting back into employment. My Department and I are proactively leading the Government's response to Ireland's unemployment level and driving implementation of the framework for sustainable economic renewal. The Cabinet sub-committee on economic renewal is also ensuring a co-ordinated approach across Departments in response to the rising numbers of the unemployed. This approach has included a substantial increase in the number of job search, training and work experience places available to unemployed persons. We are focusing our resources on a number of key cohorts of the unemployed which include the lower skilled, the long-term unemployed, those under 35 years of age and those formerly employed in the manufacturing, construction and retail sectors. These cohorts have been prioritised, as they are the most likely to drift into very long-term unemployment. The Government is investing substantial resources in tackling the unemployment problem. For instance, through my own Department, this year we will invest over €1 billion in the provision of a range of labour force measures.

As regards job search supports, in 2009 FÁS employment services, together with the local employment services, doubled their capacity. This means that the annual referral capacity under the national employment action plan rose from 78,000 people in 2008 to 147,000 last year. The additional resources allocated by the Government to tackle the rising unemployment rate have also enabled my Department to significantly expand the number of its activation training and work experience places. This year the total number of training and work experience activation places funded by my Department will be approximately 147,000. This compares to the 66,000 places that were delivered in 2008 and the 130,000 places delivered last year.

The bulk of this additional provision has been due to the increase in training places on short courses for the unemployed. FÁS now provides modular based training so that participants can pick which modules they most require to improve their skills and ultimately increase their employability while maintaining a close link to the labour market. In addition, training courses are being delivered in innovative formats such as on-line, blended learning and night courses. In this way we are providing a range of delivery methods in addition to the traditional classroom approach which enables more people access the services of FÁS.

I take this opportunity to inform the House that, in addition to the places I have just mentioned, this year Skillnets and FÁS will provide almost 10,400 training places for the unemployed or those on short-time working. I listened to a number of the issues which were raised regarding having people in productivity, especially those who are in short-term employment. Due to the economic downturn there are now many individuals who are working for two or three days each week and receiving social welfare payments for the days they are not working. Both Skillnets and FÁS are providing training opportunities for those in this situation. Individuals participating on these programmes can avail of training for the days they are not working while retaining their social welfare entitlements subject to the normal social welfare rules applying. This means that these individuals will now be able to use their reduced working week as an opportunity to upskill themselves thereby improving their employability. A key example was Element Six in Shannon, whereby Shannon Development, working with FÁS, was able to sustain employment and manufacturing in the mid-west. As a consequence of those interventions part-time workers being brought back to full-time work.

The Government is acutely aware of the large numbers of people under 25 who are now unemployed. That is why we have decided this cohort will receive priority access to the State's supports for the unemployed such as the FÁS employment and training services. I have also asked FAS to make significant prioritisation of services for the under 25s a key element in its provision in 2010. An initiative has been put in place also to activate 18 and 19 year olds immediately instead of their waiting the usual three months for this automatic activation. The main specific provision for early school leavers continues to be training at community training centres and vocational education committees under the Youthreach programme. The Government is maintaining the 6,000 places available in this programme at a cost of approximately €110 million.

Another important initiative of particular relevance to this cohort is the work placement programme which has 2,000 places, of which 1,000 are for graduates. Participants on the programme gain work experience for a period of up to nine months and may retain their social welfare entitlements subject to the normal social welfare rules applying. This work experience will significantly improve their chances of securing paid employment in the future.

As regards support for redundant apprentices, the Government has implemented a variety of measures, which will support around 4,000 redundant apprentices to progress their apprenticeships. Examples of the measures introduced include agreeing with ESB networks to take on 400 redundant apprentices at phases 5 and 7, over a period of 18 months; amending the rules for off-the-job training to facilitate redundant apprentices progress their apprenticeship; and introducing the employer based redundant apprentice rotation scheme to facilitate and support employers to provide on-the-job training for redundant apprentices.

For the information of Members, a new scheme for 2010 will be announced very shortly. It arises from the evaluations that have taken place and from the absolute necessity that all these young people complete their education and on-the-job training so that they will have the necessary qualifications when they have finished. That is very much a target of the work to be carried out in FÁS this year. In addition, the institutes of technology are providing a programme for redundant apprentices, which will provide them with a level 5 FETAC award and allows for access and transfer of credits to other post-apprenticeship programmes.

The education sector has also been very proactive in responding to the need for increased offerings for the unemployed. This can be seen clearly in the significant increase in the number of back to education allowance recipients to more than 18,000 people, many of whom are participating in further and higher education programmes. This year in the further education sector an estimated 126,000 learners will benefit from part-time learning opportunities for the low-skilled, the disadvantaged and for those who are unemployed. In addition, 40,000 learners will benefit from full-time further education opportunities under Youthreach, the vocational training opportunity scheme and the post-leaving certificate programmes. These programmes are targeted at the unemployed or are specifically designed to enhance participants' employability.

With regard to the higher education sector there is clear evidence which shows that increasing numbers of people are choosing to pursue third and fourth level education. This is a welcome trend at a time of reduced opportunity for school leavers entering into the labour market. The total number of full-time enrolments in universities and institutes of technology is projected to be over 140,000 for this academic year, an increase of 4.5% on the last academic year. During 2009, a number of new initiatives were taken by the higher education sector to support unemployed people return to education and engage in upskilling. More than 900 unemployed people participated in short courses in the institutes of technology and 160 students undertook accelerated level 6 programmes.

In addition, from September 2009, almost 1,000 free or highly subsidised part-time places were offered to unemployed graduates to pursue postgraduate programmes in higher education institutions. A further 800 places were offered to part-time undergraduate courses. Both the undergraduate and postgraduate courses provided under this initiative were in areas that support the goals of the Government's smart economy framework and meet the future skills needs of the economy. If any Members have the opportunity to meet people on those programmes they will be very complimentary about the work being done and the speed at which new programmes to accelerate and provide convergance and blended learning. These new opportunities have been very beneficial. We should compliment the institutes of technology for the flexibility they showed in providing those courses.

In terms of social inclusion and supporting local employment in our communities the Government remains fully committed. Since the last two budgets I have increased the number of places on community employment by 900. This means that this year there will be almost 23,300 community employment places. I have also announced the creation of a €20 million labour market activation fund. This fund, which is being managed by my Department, will seek to support innovative proposals over and above mainstream provision for the unemployed. I am sure Members will agree that the issue is that many of those who are now unemployed are not necessarily those who found themselves underemployed or unemployed in the early 1980s. We are dealing with a new cohort of people and it is on that basis we shall go to the private sector to discover what new opportunities and innovative measures might be introduced. The fund will be open for the public, private and community and voluntary sectors to submit applications and such expressions of interest will be published in newspapers very soon.

It is expected that this fund will provide at least 3,500 training places. The activation fund will target the low skilled and those formerly employed in declining sectors such as the construction, retail and manufacturing sectors. There will be a particular focus on those aged under 35 and those who are unemployed for one year. Successful proposals will be those which can show they will provide the unemployed with skills that are in demand to enable them secure employment or to progress them on the pathways to employment. A call for proposals is expected to be issued in the very near future.

In the time remaining to me I will address a number of issues that were raised. Other Members of the House may take up others. Bhí mé ag éisteacht le mo chomhghleacaí mar gheall ar an rud a bhí ag dul ar aghaidh thíos i mo cheantar fhéin. B'fhéidir go rinne sé dearmad ar an sár-obair atá déanta ag Údarás na Gaeltachta ar son muintir an cheantair. Cuireadh polasaí úr i bhfeidhm nuair a bhí mé mar Aire Stáit, ag éirí as na himpleachtaí a bhí i mo cheantar fhéin agus, go mórmhór, i gceantar an Teachta MacFhionnlaigh thíos i nGaoth Dobhair. Bhí béim ar an dífhostaíocht i mo cheantar agus i gContae Dhún na nGall go hiomlán. Bhíomar ábalta níos mó postanna a chruthú agus a chaomhnú sna cheantair Gaeltachta. Is breá an rud é go rabhamar ábalta é sin a dhéanamh. Cé go bhfuil deacrachtaí agam agus ag an Aire, an Teachta Ó Cuív, tá obair idir lámha againn ar polasaí úr chun tacaíocht a thabhairt do mhuintir na Gaeltachta. Tá béim á chur ar sin i mo cheantar fhéin. Ag éirí as sin, tá mé dóchasach go mbeidh níos mó postanna le fáil sa Ghaeltacht, go mórmhór in áiteanna iargúlta.

Regarding a number of the issues raised, I very much appreciate that public representatives are under pressure in their localities. Of all the Members in the House, I appreciate that perhaps more than others. That is why the target on regional development, replacement of jobs, driving innovation and creating new opportunities is very much the drive I have. Contrary to opinion, I have plenty of drive and focus in that context.

We will continue to be focused in driving our new responses to the challenges we have at present in this country. I have highlighted a number of the initiatives that will be taken to deal clearly with the needs of the people who have unfortunately found themselves unemployed. I will be very determined in ensuring we will continue to have a country where it is good to do business, where we will have scale and internationalisation and where we will continue to attract foreign direct investment.

See this speech in context