Tom Fleming (Kerry South, Independent) | Oireachtas source

The economic challenges confronting Ireland in restoring economic stability and returning to a sustainable path of economic growth are the most daunting we have faced for a generation. More than ever, enhancing our competitiveness is vital, even more so in the face of international economic uncertainty and given the possible risk of a downturn in some of our main markets. Improving export performance has been our only source of economic growth and will remain essential to achieving the recovery needed to work our way out of our economic and social difficulties.

There is evidence that competitiveness is helped by improved costs, productivity, education services, investment in infrastructure and research and development. However, these improvements are not happening quickly enough to help the prospects of thousands who need jobs. Decisive and calculated actions are required to create an environment in which business can flourish, job creation can become a reality and exports can continue to grow. Small firms are central to the plan for national recovery. It is essential that the necessary supports be provided to ensure the viability of almost 200,000 of these firms which provide employment for up to 500,000 people. One must also take into account another 100,000 who are proprietors and family members directly engaged in businesses, although they may not draw a fixed wage or salary.

These figures combined mean approximately 600,000 people are involved in the small and medium business sector.

Market demand is fundamental to the success of small and medium businesses and the vitality of the domestic market is critical. Recent evidence on consumer spending suggests many people are being forced to save owing to personal debt, while those who have disposable income are not spending in these times of economic uncertainty. Retail sales continue to fall and consumer sentiment continues its downward trend. People are worried about their employment prospects, the impact of the next budget, mortgage interest rates and so forth. A lack of credit, high energy costs, rates and general overheads are compounding the difficulties facing small and medium businesses. Government intervention to address the obstacles they face is required urgently. It is imperative that immediate action is taken on all these issues.

Ireland's development model in the 1970s, 1980s and 1990s was driven by foreign direct investment. This form of industrial and economic development worked well and delivered high quality employment and significant export growth. Future reliance on the foreign direct investment model of development is becoming more uncertain owing to global factors such as the massive investment by the United States in Asia and the relocation of many viable companies from Ireland to low wage countries. We will have to refocus on indigenous sectors that demonstrate global potential, agrifood being the most obvious. Ireland is also strong in the area of the arts and cultural tourism. The general tourism product is not being capitalised on and its potential remains substantially underdeveloped.

We must focus on research and development in areas such as food, health, education and energy. Ireland is well placed to take advantage of the potential to generate renewable energy and we have begun to take advantage of conditions along the Atlantic coast to generate wind power. Last year, Ireland set a new wind energy record when 1,284 MW of wind generated electricity was exported to the national transmission system. While still in its infancy as an industry, we have all seen studies showing the potential that Atlantic wave energy could deliver. Ireland is well on its way to meeting its new renewable targets through its wind power initiatives, but greater rewards could be gained from such developments. For example, the export market offers significant potential, including a project being developed by EirGrid to export excess renewable energy to the United Kingdom through the Irish Sea interconnector. The UK uses more than ten times as much electricity as Ireland and has also set renewable targets. Clearly, therefore, a project to export renewable energy from Ireland to Britain would be mutually beneficial.

The Government must review the education system, with a view to catering for increased demand for people with information technology skills and IT jobs in general. Approximately 1,000 workers were recruited from abroad last year to fill information technology jobs, some of which pay salaries of up to €70,000 per annum. This means more than one quarter of new IT jobs are being filled by people recruited outside the country. An analysis of figures from the Department of Jobs, Enterprise and Innovation shows the number of new employment permits issued to staff to work in the information technology industry soared to 932 last year compared to only 551 in 2010. These figures do not take account of staff hired in the European Economic Area, which includes the European Union and countries such as Iceland, Liechtenstein and Norway, whose citizens are entitled to move freely and do not require employment permits.

The Government and its agencies should vigorously pursue initiatives to attract and upskill workers to enter technology careers. Current programmes such as the Springboard ICT scheme are not being fully utilised. The one year, full-time higher diploma conversion programme run by the Higher Education Authority and the graduate skills conversion programme, which is focused on non-ICT candidates, should also be developed. Companies have available to them a State supported programme, the ICT Ireland Skillnet training network, which assists in providing training for employees. We must redouble our efforts to ensure the skills required for the jobs market are available. It is also important to cater to the needs of many innovative employers.

I referred to agrifood. The recent announcement by the Kerry Group of a major investment in a new plant in County Kildare demonstrates the potential of our agrifood and dairy sectors. The investment will create 1,000 new jobs in addition to 400 jobs during the construction stage. I am sure a number of other progressive indigenous companies will make similar contributions to the recovery of the economy. It is unfortunate, however, that the Kerry Group, which was nurtured from its infancy in County Kerry with the support of Kerry people, has not located many jobs or made many investments in County Kerry for some years. I am aware its plant in Listowel is doing well and it also has an administration office in Tralee and several supply outlets located around the country. I ask the Minister of State, Deputy White, to convey to the Minister and the Minister of State at the Department of Jobs, Enterprise and Innovation, Deputies Richard Bruton and John Perry, that County Kerry is a major jobs blackspot and the problem needs to be addressed.

The aquaculture aside of the food sector shows great potential. I recently tabled a priority question to the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney, on this issue. The Minister has a major vision for the food industry along the coastline. Many of the applications for aquaculture licences in bays and harbours remain to be processed, however, and commercial producers must also complete the licensing system. The current process must be expedited. If each of the 600 applications for licences by commercial producers were to produce 20 jobs, some 12,000 jobs could be created. When one adds to this figure the many other jobs that could be created in the other sectors to which I have referred, it becomes clear that we can move forward positively.

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