Deirdre Clune (Cork South Central, Fine Gael)
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Question 5: To ask the Minister for Enterprise, Trade and Employment his views on the reported shortage of skills in the financial services sector; if, in view of the recent global downturn, this shortage still pertains; and if he will make a statement on the matter. [16949/08]

Micheál Martin (Cork South Central, Fianna Fail)
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In December, the expert group on future skills needs published its report, Future Skills and Research Needs of the International Financial Services Industry. This report identifies the skills requirements of the international financial services industry in Ireland and sets out a blueprint for the future skills development required to ensure the continued growth and success of that industry.

According to the expert group's report, companies are experiencing shortages or difficulties in sourcing qualified staff, with several skills shortages identified, including shortages of fund accountants, accountancy staff, financial analysts and actuaries. In addition, the report also found that there was a shortage of people with adequate skills in maths, economics, risk management and compliance.

The research underpinning the expert group's report was undertaken before the recent economic downturn, which has affected the global financial services industry. It is too early to assess the impact of the international credit crisis on the demand for financial skills in Ireland. The Government is monitoring the situation on an ongoing basis. As the expert group's report focuses on the long-term development of the international financial services industry in Ireland, it is likely that the skills shortages identified by it are ones that require to be addressed irrespective of the short-term economic outlook. The skills identified are highly specialised and in short supply worldwide. It is a global phenomenon.

Deirdre Clune (Cork South Central, Fine Gael)
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I ask this question in light of the report of the expert group on future skills needs to which the Minister referred and the recent announcement by the Tánaiste and Minister for Finance, Deputy Cowen, in Belfast of what was described as a win-win situation. Recent media reports point to an estimated 8,000 to 9,000 vacancies in the financial services sector. This is alarming. If the international financial services sector in Ireland is to remain vibrant, we cannot afford such a shortage of skilled personnel. That will only contribute to the erosion of our competitiveness and productivity.

The Minister acknowledges that action must be taken to address the skill shortages in this sector. We have spoken before about the skill shortage in the science and technology area. What are the Minister's plans in this area? In both cases, part of the solution lies in encouraging students to take up maths, science and business subjects. The expert group also issued recommendations in regard to the research agenda, encouraging communication between academics and the industry. A similar approach is required in the area of science and technology. We do not have time to delay given the level of shortages.

Micheál Martin (Cork South Central, Fianna Fail)
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The international financial services sector has grown dramatically in this State in the last two decades. For example, banking assets have trebled from €422 billion in 2001 to €1.2 trillion in 2006. The numbers employed in financial occupations had grown to 148,000 in 2006, approximately 22,000 of whom are engaged in international financial services. I meet the representative group for financial services companies, Financial Services Ireland, on an annual or biannual basis. Last week, I accompanied IDA officials to the United States where we met representatives of some of the financial services companies with significant operations here. I also attended a meeting in Milan with representatives of Italian financial services companies operating here.

Skill shortages are a global phenomenon. We are working with several third level institutions on the research side. For example, Enterprise Ireland supported the business information systems programme in University College Cork with a view to developing a financial services centre that would work on particular skill levels for the industry. On a nationwide basis, we are working to develop and enhance capacity in financial services programmes in universities so that we can attract those seeking to obtain advanced qualifications.

We have asked the Higher Education Authority, HEA, and the financial services industry to agree on short-term priorities in regard to skills needs. The HEA has already consulted the universities and institutes of technology to provide them with an opportunity to respond to its report. The HEA and Financial Services Ireland are currently organising a joint seminar designed to respond to the expert group's recommendations on education and training. Once that has been held and agreement reached on the types of course provision required to address the skill shortages, a call for proposals to provide such courses will be issued. The work is in progress, therefore, in terms of identifying what is required and who can best provide it.

Deirdre Clune (Cork South Central, Fine Gael)
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The Minister said he met representatives in Milan and the United States of companies with operations here. Did these representatives draw his attention to particular skill shortages? In regard to the Tánaiste's reference to a win-win situation, does the Minister envisage that the more than 8,000 vacancies in the financial services sector will be transferred to Belfast? Is it the case that the main offices will be based in Dublin and the back offices in Belfast?

Micheál Martin (Cork South Central, Fianna Fail)
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What has occurred in the last three years is a regional development of financial services. Companies whose representatives I have met include State Street in Kilkenny, Citco in Cork and IFS in Drogheda and Naas. There has been a significant churn in financial services in Dublin. The representatives of every company we meet highlight skill shortages. It is a significant problem in the United States, for example.

Our green card system is important in this regard because it provides reassurance to investors that we have the wherewithal to provide personnel with the necessary skills, whether among the indigenous population or among those who obtain a green card. The accession of ten new member states to the EU has created a critical mass to which we can point when seeking investment from abroad. Our partnership with the North can work to the advantage of both jurisdictions. We are anxious to develop the Border areas in Donegal and maximising the mutual strengths in Northern Ireland and here to create a greater volume of economic activity has obvious advantages for both jurisdictions.