Dáil debates

Tuesday, 19 July 2011

10:00 pm

Photo of Eoghan MurphyEoghan Murphy (Dublin South East, Fine Gael)

I had hoped to address this issue with the Minister for Jobs, Enterprise and Innovation, but I appreciate the attendance of the Minister for Education and Skills as this matter is relevant to his Department and he is fully aware of the importance of the high-tech sector to the economy. Considering the attention the Government has given to the sector, be it in terms of gaming, research and development, digital design or cloud computing, it is clear that the Government understands its importance and is fully committed to it. From speaking to people in the industry, they are happy about this as it is a new approach.

I attended the Dublin web summit in June, at which a speaker addressed approximately 1,000 people working in the sector who were there to network, hear new ideas and get investments. The organisers had invited successful entrepreneurs from abroad to speak and pass on some of their knowledge. At a questions and answers session, someone asked how an entrepreneur decided where to set up and what his first consideration was. His answer was that he went where the developers and talent were. A friend of mine who works in the area looked over his shoulder and gave me a knowing look.

I have discussed in the House the need to incentivise foreign entrepreneurs to set up companies in Ireland, especially in the high-tech sector, as part of the three pillar approach. We could cut all the red tape we desire, but entrepreneurs and foreign companies will not come to Ireland if they cannot get the staff. In July, a significant international player and large employer in Ireland briefed the Cabinet on its concern that the Irish system was not producing enough high-end, high-skilled graduates. This is a worrying development. The secondary effect is that, when this player can find the relevant employees, it hoovers them all up and smaller and start-up companies cannot get the staff because they cannot afford to hire any from abroad. Those companies end up relocating abroad, which means we lose them, the staff and the revenue.

I do not want to overstate the case, but it is important that we address it. The previous Government never did when it had the chance and knew it needed to. To our cost, that Government did not engage in future proofing, but we must consider what is necessary now and in future. Last week, the Irish Internet Association, IIA, told us that there were 2,500 unfilled jobs in the high-tech sector. If the Government continues focusing on this sector, trying to create jobs and trying to position Ireland as a digital or Internet capital for Europe, it will create further jobs. This is a good measure and we do not want to turn a positive into a negative.

We must examine the education system and get more children studying mathematics and science at a high level all the way through school, into relevant university courses and on into the industry. That is a longer-term solution, but we must act now. The battle to establish ourselves as European leaders in cloud computing, gaming, research and development and so on will take place in the next three to five years. That is when we will win or lose. For this reason, it is imperative that we examine immediate solutions.

The Minister will be interested in a number of near-term proposals, given his architectural background. For example, unemployed architecture and engineering graduates could be retrained as web developers. This idea has a great deal of potential and should be discussed by the House at another time. I wish to address a more immediate-term initiative proposed by the IIA in the context of the Government's wider jobs initiative. Under the latter, taxation measures will be used to increase employment levels in sectors where there is a need. The Minister has been briefed on the association's initiative, as I sent his Department the details. It is proposing a programme to identify the critical skills required, the areas of greatest skills shortage and the number of people available in the marketplace and to use this information to target and fill gaps by rewarding people financially, whether in terms of tax credits, PRSI initiatives or repatriation grants for those who are abroad. It is about providing financial incentives to those with the relevant skills who want to stay in or return home to Ireland to do so. It is an encouraging proposal.

The jobs initiative is not the solution, but it is a first step in underlining our commitment to making the sector a cornerstone of our future economy and a first step in rebuilding our international reputation for producing high-end graduates. It is about getting more of them, attracting them back from abroad and getting them working in our economy. It is also another crucial step in returning people to work.

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