Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

The OECD published a preliminary review of the action plan for jobs on 22 April this year. The review examines some key elements of the action plan and found that the plan's focus on private sector-led, export-oriented job creation by getting framework conditions right and continually upgrading the business environment is a sound approach, particularly given fiscal and credit constraints. The review endorses the strategy of the action plan in getting the framework conditions right to support enterprise-led, export-oriented job creation. The focus on building and strengthening linkages between domestic SMEs and the FDI sector is also welcomed in the review.

The OECD review recognises that the action plan’s co-ordination mechanism, robust monitoring system and whole-of-government engagement is an important step in addressing the gaps that previously undermined successful policy implementation. However, the review also suggests a number of areas where we can make improvements, including ensuring that high unemployment does not become structural and persistent; stepping up efforts to improve access to finance for SMEs; ensuring that investment in basic research is translated into commercial products and services; and, introducing a performance assessment framework to measure progress towards achieving the action plan’s strategic objectives.

We have already taken on board some of the OECD’s suggestions in 2014 as part of the Action Plan for Jobs and Pathways to Work processes. For example, the Government has increased its focus on activating those most vulnerable to being distanced from the labour market through Pathways to Work and the Youth Guarantee. Further efforts are being made to increase new lending to SMEs, drawing on both bank, and non-bank, sources of funding, while the establishment of Knowledge Transfer Ireland last May will make it easier for companies to leverage the commercial potential of Irish research and innovation.

The development of a performance assessment framework to measure progress on the action plan’s strategic objectives is included in the work programme for the senior officials group on economic recovery and jobs for the second half of 2014.

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