Joe McHugh (Donegal North East, Fine Gael)
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Question 7: To ask the Minister for Enterprise, Trade and Employment the way he will expand the role of FÁS and Enterprise Ireland in the coming years; and if he will make a statement on the matter. [18999/07]

Micheál Martin (Cork South Central, Fianna Fail)
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The role and functions of FÁS are reviewed on an ongoing basis. The current FÁS strategy statement outlines the vision and direction for FÁS for the period 2006 to 2009. The strategy is closely aligned with the policy goals of my Department and was developed in close collaboration with it.

The current FÁS strategy recognises the changes in the labour market, including the relatively low level of unemployment, and places an increased emphasis on the need to upskill those at work. Additional funding has been provided to FÁS to enable it to increase capacity and activity in this area through its One Step Up programme and other initiatives.

In line with the programme for Government, we will work to expand the role of FÁS to increase the employers' commitment to training, particularly in the SME sector. To date, FÁS has funded management development in the SME sector through two projects run by the Small Firms Association and the Irish Small and Medium Enterprises Association at a total cost of €2 million. Last month, the FÁS board approved six projects costing €10 million for the same purpose. I also recently established a management development council for the SME sector to facilitate the provision of appropriate management development training for businesses and to promote its importance.

Enterprise Ireland's current strategic plan, Transforming Irish Industry, for the period 2005 to 2007 will be completed at the end of this year. Consequently, Enterprise Ireland is formulating a new strategic plan for the period 2008 to 2010, which will fully incorporate national policy and the findings of the Enterprise Strategy Group and the Small Business Forum. I will consider Enterprise Ireland's new strategic plan in the autumn, in respect of which we are working.

Enterprise Ireland is an enterprise development agency with a mandate to provide a range of different supports and funding options to manufacturing and internationally trading companies. These supports are provided across the full range of business functions on the basis of demonstrated need and in the context of the potential return that may accrue to the State from those interventions. Enterprise Ireland has a wide remit covering the full gambit of business development needs, ranging through marketing, sales, productivity, research and development, management development etc. These supports are provided where appropriate through Enterprise Ireland's business development model. This is a recognition that State supports in assisting companies should be offered in a holistic manner, maximising their impact where they mutually reinforce one another rather than acting as stand-alone offers.

Enterprise Ireland works in partnership with companies. In the context of a long-term business development plan, it advocates and persuades as to the benefits of activities such as management development and training. Necessary supports are provided if it is in the best interests of the company's growth prospects, if need is demonstrated by the company and if Enterprise Ireland's intervention is justifiable.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I welcome the Minister's statement on Enterprise Ireland and the strategy for the coming three years that is under discussion. In recent months, the Minister launched a document on upskilling the labour force. A significant reorientation of FÁS is needed. Will the Minister introduce measures this year to demonstrate that the objectives laid out in his future skills strategy programme will be implemented and what role will FÁS play therein?

Micheál Martin (Cork South Central, Fianna Fail)
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With the science, technology and innovation strategy, the national skills strategy will be a fundamental pillar of economic policy during the coming years. Both are essential for the country's competitiveness. The national skills strategy does not relate to FÁS alone. Rather, it is concerned with upskilling the workforce. We concentrated on the unemployed in previous decades, as we will continue to do, but the emphasis must move to upskilling those at work and increasing their qualification levels, for which there is a good appetite in the workforce.

FÁS will have a significant role in this regard, as will the institutes of technology, colleges of further education and education providers in general. We want to broaden this aspect. There is no point in reinventing the wheel or creating new programmes when there are existing resources in the education and training fields. Ireland will face a considerable challenge in terms of the upskilling agenda and all of the institutions, including FÁS, have a role to play and should compete to provide for the requirements of the State.

Arthur Morgan (Louth, Sinn Fein)
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Ar dtús baire, comhghairdeas mór duit ar an post nua, a Leas-Cheann Comhairle, agus fosta to all the new Ministers who have been appointed.

Brendan Howlin (Wexford, Labour)
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Go raibh maith agat.

Arthur Morgan (Louth, Sinn Fein)
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Is FÁS examining ways to make a connection between retraining and upskilling and the institutes of technology and, in particular, workers in the construction industry, many of whose jobs would be at significant risk in the event of a relatively minor slow-down in the sector? Does the Minister accept that FÁS was criticised for being slow and old-fashioned when dealing with businesses and enterprise in general and when upskilling workers in that regard?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Arising from the Minister's reply, will he accept that if there is no incentive for employers to carry out a programme of retraining and upskilling in the factory or business, it is unlikely to be successful? What negotiations are under way between employer groups and trade unions to ensure the objectives outlined in the future skills strategy lead to an incentive for employers, which is obvious, and to time being made available in the working day for upskilling programmes on the factory floor?

Micheál Martin (Cork South Central, Fianna Fail)
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Strong linkages are developing between FÁS and the institutes of technology in terms of skills, a good example of which is the LÍONRA initiative in the north west involving institutes from Letterkenny to Sligo and Galway. The idea is that where there can be complementarity, there should be, and where institutes can provide a certain component of training or programmes, they should do so. FÁS can contract out to the institutes to provide specific programmes. They should not compete to get the same business. Rather, we should try to get higher standards and quality of provision.

Regarding the construction industry, we had to increase the apprenticeship provision in this year's Estimate by €17 million because of bottlenecks. The overall amount for apprenticeships this year will be €128 million with approximately 19,600 places in FÁS and the institutes of technology. Despite all the commentary, demand was still present last year and coming into this year. It is worth pointing out.

Arthur Morgan (Louth, Sinn Fein)
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It is turning.

Micheál Martin (Cork South Central, Fianna Fail)
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FÁS is rising to the challenge of upskilling. When the business forum produced its report and identified a deficiency in management capability training in the country and the need to do better in that respect, FÁS stepped up to the mark and worked with the SMEs on training programmes.

On Deputy Hogan's comment, the best model of upskilling in and incentivising businesses I have seen is Skillnets, to which the State makes a substantial contribution while the companies make some contribution. I understand it is on a 50:50 or 60:40 basis, depending on the nature of the schemes. It has been a runaway success and is the type of partnership initiative of which I wish to see more. That is why we expanded significantly the funding for Skillnets in the medium term to 2009.