Richard Bruton (Dublin North Central, Fine Gael)

As part of the Forfás annual employment survey, the overall cost per job is calculated each year by reference to the cost of jobs created during and sustained to the end of a seven-year period. The accepted accounting measure for the cost per job is cost per job sustained. This is calculated by taking into account all direct agency expenditure on all Enterprise Ireland client companies in a seven year period. Only jobs created during and sustained at the end of each seven year period are represented in the calculations. The cost per job calculation takes the total grants paid to companies to undertake development projects at both start-up and expansion stages and the new jobs that arise from these projects.

Enterprise Ireland's investment policy facilitates a grant and-or equity mix. Equity investments would typically be made in early stage companies where a greater level of risk is posed. Funds realised from the sale or repayment of equity related investments are deducted in the cost per job calculations. Over time this funding policy has been a driver of the declining cost per job sustained up to 2006. This declining figure was primarily due to the impact of large financial support in 2000. Such refunds were largely attributable to the sale of shares in one company that resulted in a refund of over €100 million in 2000 and that formed part of the calculation up to 2006. The financial supports from 2000 are no longer relevant to the calculation for cost per job sustained in the subsequent seven year period.

Since 2006 the cost per job sustained has increased. Other factors resulting in the increases in recent periods include that Enterprise Ireland provided additional supports such as the Enterprise Stabilisation Fund to ensure Irish-owned companies were in a position to withstand the worst recession in decades. The fund which was introduced in 2009 made payments of €79.2 million in the period 2009 and 2010. Also, additional supports relating to dairy, beef and sheep funds were introduced in 2008. These are administered by Enterprise Ireland on behalf of the Department of Agriculture, Fisheries and Food and form part of the calculation. A lower number of jobs was sustained for 2004-10 compared to earlier seven year periods in the context of the severe recession. The jobs sustained figure for the 2010 period was 43,800, while for the earlier period it was 48,029.

Additional information not given on the floor of the House.

Enterprise Ireland is focused on the objective of increasing exports and consequently employment through a range of interventions such as driving sustained research and development and innovative activities through direct supports for in-company research and development and collaboration; international sales, including supports to drive sales and marketing capabilities of companies and the support of 31 overseas offices; building leadership and management capabilities, encompassing Enterprise Ireland's Leadership 4 Growth programme designed and run in conjunction with Stanford University; embedding competitiveness improvements through a tailored programme of lean initiatives; and financial supports which can take the form of grant aid to support business development activities in established companies. In innovative start-ups Enterprise Ireland takes equity positions to support the start-up business plan.

We must champion the cause of companies which can create good jobs in sustainable activities. Enterprise Ireland will play a vital role in contributing to the building of a strong, sustainable and innovative enterprise sector.

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