Terence Flanagan (Dublin North East, Independent) | Oireachtas source

Like other Deputies, I welcome the opportunity to contribute briefly to the debate on this important Bill. I thank the Minister of State, Deputy Sherlock, for being present for these proceedings.

Since 1994, Forfás has been the Government's policy advisory board dealing with areas such as enterprise, science, technology and trade. The organisation has played an important role in directing Government policy regarding the economy. It has examined opportunities and ways for various sectors of this country's economy to grow. It has provided policy advice on the best way forward for the Irish economy and for Irish business. The work of Forfás is critical for the country. It has been particularly important during this country's economic downturn of recent years. It has identified opportunities in the whole area of manufacturing, which we moved away from when this country was not as cost-competitive as it had been previously. We know from a recent report that there is an opportunity for up to 10,000 jobs to be created within that industry, which is very encouraging.

As a country, we need the ideal conditions to attract overseas investment and to encourage home-grown enterprise and business. As part of the integration of Forfás into the Department of Jobs, Enterprise and Innovation, a new division of the Department - the strategic policy division - will be created under this Bill, which I welcome. Will the staff of the new division be dominated by Forfás staff? What percentage of Department staff will be employed in the new division? Has the Minister of State identified how many staff will be needed in total? What costs have been involved in getting us to where we are now? Have consultants been employed to come up with this proposal? If so, what has been the cost of that? Could the Minister of State provide more detail in that regard? Obviously, there is general concern about the employment of consultants at present.

I have concerns regarding the 2012 Forfás report which indicated that a substantial percentage - 78% - of its costs went on making payments towards the pensions of Forfás, Enterprise Ireland, IDA Ireland and Science Foundation Ireland. Just 22% of the funding that was received in 2012 was used to meet current policy and research needs. I ask the Minister of State to comment on that. Perhaps I have picked that up wrong. I do not know. It is certainly concerning if such significant pension payments and liabilities are accumulating in this organisation after just 19 years in operation. What was the situation in 2013? How many people are currently receiving pensions in the various agencies? What is the cost of these pensions? Are plans being made to cover these costs in the future?

It is obvious that the Minister of State's mandate involves jobs, jobs and more jobs. I know he is doing everything in his power to try to get the economy moving and to get young people, in particular, back into employment. I suggest the Government is placing too much emphasis or focus on multinational industry to the detriment of small enterprise. We know that just 10% of all people employed in Ireland are employed by foreign or multinational investors. Over 60% of our workforce is employed by small businesses or enterprises.

There is a concern that the Government is not doing enough to cut out red tape and reduce the risks that have to be taken by people who are setting up as sole traders or in partnerships. I am thinking particularly of the manner in which such people have to put their assets and savings at risk, for example, by putting their family homes into small businesses to try to ensure they grow. Credit is not as readily available as it once was because the pendulum has swung. We used to have too much credit, but now there is a lack of credit for small enterprise. The need for personal guarantees is causing incredible difficulties for risk-takers who put their savings into enterprises. Obviously, they have to pay large upfront costs when setting up their businesses and also have to pay rent and rates. I understand that a significant emphasis was placed on this area in the Action Plan for Jobs. There is always room for improvement.

I know that the Taoiseach's aspiration and goal is to ensure Ireland becomes the best small country in the world for people to grow old and do business in. We must continue to focus on ensuring small businesses are able to grow and employ people over time. I would like to make a few suggestions in that context. We should reduce PRSI for employers. We should ensure that an element of social welfare is available to those involved in enterprise. Those who have paid taxes should get something back from the system. We are familiar with the current position, whereby people whose businesses fail receive no help or support from the State. That is very wrong.

The integration of Forfás into the Department of Jobs, Enterprise and Innovation will enable the Department to take a more hands-on approach to job creation policy. This will serve to shorten the length of time that it takes to draft policy and for policy to come into effect. I am happy that the Minister, Deputy Bruton, has provided an assurance that the new unit will remain independent. Obviously, that is a crucial element of this plan. Forfás has been highly acclaimed for many years. Its reports have been welcomed because of its independence.

Obviously there is a genuine concern that it would be taken over by the Department and lose its edge and an element of independence. I ask the Minister of State to comment on that. I know the Government is always interested in making savings, which is why this is happening. What savings does the Government expect to make as a consequence of these changes?

Unemployment is one of the issues of greatest concern to the country. We all welcome the recent reduction in the numbers on the live register. I know emigration is one of the issues that has helped bring that about, but there is a consistent element of jobs being created here. If we could encourage every small business to take on at least one new person, it would make a great difference. While I know that has been proposed previously by Government, we have to work to make it become a reality.

Too many people are emigrating and valuable skills and talent are being lost to the country. Obviously the key priority must be to create new jobs to get Ireland back on track. The Department's new strategic policy division will be focused on that and will work to ensure that growth takes place.

The issue of quangos is one that resonates with the public - not that Forfás was ever a quango as such. It is the lack of accountability that really annoys the public. This move is positive in bringing Forfás into the Department. No doubt it will continue with its independence and continue to do what it does well in the future.

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