Dáil debates
Wednesday, 2 December 2009
Priority Questions
Job Creation.
Damien English (Meath West, Fine Gael)
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Question 35: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of new jobs she or each agency under her remit have forecast to be created in 2010, 2011 and 2012; and if she will make a statement on the matter. [44912/09]
Billy Kelleher (Cork North Central, Fianna Fail)
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Enterprise Ireland is the lead government agency responsible for the development of indigenous enterprise. The fundamental objective of the current Enterprise Ireland strategy is to drive export growth momentum and internationalisation in what is an increasingly challenging and competitive environment for companies. Enterprise Ireland's strategy, Transforming Irish Industry 2008-2010, identified four key strategic targets for the three year period. In 2008, despite the unprecedented downturn in the global economy, Enterprise Ireland met or exceeded its yearly targets. As stated in Enterprise Ireland's annual report 2008, agency client companies created 10,522 jobs last year.
Given the global economic turmoil, 2009 was a tough year for foreign direct investment, FDI, but IDA Ireland continued to win projects and, to date in 2009, there have been 47 IDA announcements with the potential to create more than 2,500 jobs. The IDA's focus continues to be on transformation, minimising losses as well as creating new jobs. The IDA is working with its existing client base to deepen and further embed their investments in Ireland. The agency has an active programme of engagement with clients to identify and target new investment opportunities from these clients. IDA client companies employ in excess of 136,000 full-time workers at present. The IDA continues to encourage and assist its client companies to move up the value chain in terms of both carrying out higher skilled operations and expanding their presence in Ireland. The aim is to retain existing clients, to improve the quality of employment opportunities in Ireland and to increase the positive economic impact. Ireland is now seen by the global business environment as a prime location for research, development and innovation functions. The IDA has played a key role in establishing this competitive advantage for Ireland and is heavily involved with all stakeholders to capitalise on this aspect.
The role of the county enterprise boards is to support the micro-enterprise sector in the start-up and expansion phases, to develop indigenous micro-enterprise potential and to stimulate entrepreneurship at local level. The overall priority for capital expenditure by the boards is on the development of sustainable growth-orientated micro-enterprises which, over time, can develop into strong export entities. The boards have a successful job creation record to date with the creation of more than 33,000 jobs in CEB assisted businesses throughout the country since the inception of the boards in 1993. In the current economic climate the expectation is that the demand for the services of the boards will increase as a greater number of people look to self-employment as an alternative to unemployment.
Damien English (Meath West, Fine Gael)
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What question was the Minister answering? It was not the question I asked.
Billy Kelleher (Cork North Central, Fianna Fail)
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I answered the question the Deputy asked.
Damien English (Meath West, Fine Gael)
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I asked for the job predictions for the next three years. That is the information I am seeking. I am trying to be helpful and to work on this.
Billy Kelleher (Cork North Central, Fianna Fail)
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None of those agencies prophesises the future.
Damien English (Meath West, Fine Gael)
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That is very strange because they always prophesised the future previously. Enterprise Ireland and the other bodies always gave predictions for job creation in the years ahead.
Mary Coughlan (Donegal South West, Fianna Fail)
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No. The annual report showed the number of jobs created.
Damien English (Meath West, Fine Gael)
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No, Minister. Its representatives used to come to Oireachtas committee meetings and give a rough estimate of the jobs they hoped to create. I hope the Minister is wrong and that they have plans to create jobs in the years ahead. If the Minister of State cannot tell me about them today, perhaps he will undertake to find out what their predictions are for job creation for the next couple of years. When unemployment is at more than 400,000 they surely must have some idea of what jobs they expect to create in the future. That is the least we can seek. If these agencies do not have plans, what plans do the Ministers have? If they do not have plans, I ask them to do me a favour and look at our document, New Era.
Brendan Howlin (Wexford, Labour)
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The Tánaiste should not interrupt.
Damien English (Meath West, Fine Gael)
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Perhaps the Minister of State would comment on it. We believe it is a good document that is well thought out and well costed. It is a good initiative and we believe it will create more than 100,000 jobs over the next four years. In the absence of plans for job creation from these Ministers and their agencies, perhaps they will examine ours. If the Minister thinks it is wrong, she should tell us where and we can change it. However, they should work with us on it. The Minister of State must reply to me with some predictions.
Arthur Morgan (Louth, Sinn Fein)
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Send the Minister of State a copy.
Billy Kelleher (Cork North Central, Fianna Fail)
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I do not know if that document has been widely read but we had a look at it. If there are any good proposals, we will certainly examine them. In the broader context, the IDA does not say how many jobs it will create in a year.
Billy Kelleher (Cork North Central, Fianna Fail)
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No, it does not.
Brendan Howlin (Wexford, Labour)
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Allow the Minister of State to answer the question.
Billy Kelleher (Cork North Central, Fianna Fail)
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The IDA is charged with the function of creating as many jobs as possible. Its purpose is to attract foreign direct investment and to support companies locating in this country. The reverse is the case with Enterprise Ireland, whose purpose and function is to promote and sustain as many jobs as possible, as opposed to having particular targets. Its purpose is to establish companies in Ireland, bring them up the value chain and assist them in accessing markets internationally. The idea that on 1 January of any year they would state they will create a certain number of jobs in that year would not be operational. What we are doing on a continuous basis is supporting employment and the number of jobs that flow from that as a consequence. Take the example of the 47 announcements by the IDA this year and the 10,500 jobs created with the assistance of Enterprise Ireland. At the start of 2008, however, the agencies did not specifically state they would create X number of jobs. That would be a very foolish way to operate.
Damien English (Meath West, Fine Gael)
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I am very nervous for the future given that the Minister of State tells me he has no predictions, aims or targets to create jobs.
Damien English (Meath West, Fine Gael)
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That is what I asked about in the question. With respect, it is true that Enterprise Ireland makes predictions. Its representatives appeared before an Oireachtas committee two years ago and predicted it would create 10,000 jobs. It makes predictions and the Minister should not try to tell me I am wrong about that. It is its job to do that. If the Minister does not have that information today, I ask him for the last time to come back to the House in the next couple of weeks with the predictions so we can work with them. At least we produced a document which we believe can create jobs, although I do not believe the Minister has read it.
Mary Coughlan (Donegal South West, Fianna Fail)
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We did. It is a regurgitation of the last document.
Brendan Howlin (Wexford, Labour)
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Only one member of the Government can respond on each question.
Damien English (Meath West, Fine Gael)
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It is not. It is better than no predictions. Please come back to the House on the next Question Time with some predictions for job creation.
Brendan Howlin (Wexford, Labour)
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The Minister of State can give a brief final reply.
Damien English (Meath West, Fine Gael)
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The country has serious problems, but the Government has no plans or targets. It is a disgrace. I cannot believe it.
Billy Kelleher (Cork North Central, Fianna Fail)
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That document involves the sale of many assets at a depressed time in the market but-----
Damien English (Meath West, Fine Gael)
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It involves creating jobs.
Billy Kelleher (Cork North Central, Fianna Fail)
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-----thankfully, that is a decision the Deputy will not be making.
Conor Lenihan (Dublin South West, Fianna Fail)
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The fire sale of the century.
Damien English (Meath West, Fine Gael)
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It is amazing; there are no targets.
Billy Kelleher (Cork North Central, Fianna Fail)
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This is very important. The smart economy document contains projections for jobs in the forthcoming years.
Damien English (Meath West, Fine Gael)
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What are they? That is what I asked.
Billy Kelleher (Cork North Central, Fianna Fail)
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However, in the case of the agencies about which the Deputy asked-----
Billy Kelleher (Cork North Central, Fianna Fail)
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Yes. The agencies for whom I am replying are Enterprise Ireland, the IDA and the county enterprise boards. They do not get into the issue of specific-----
Damien English (Meath West, Fine Gael)
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They do. They should if they do not.
Mary Coughlan (Donegal South West, Fianna Fail)
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Let him answer the question.
Mary Coughlan (Donegal South West, Fianna Fail)
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He is answering the question.
Damien English (Meath West, Fine Gael)
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He is not answering the question.
Brendan Howlin (Wexford, Labour)
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If the Minister will give way, the Deputy should not shout down the Minister of State. If he does not agree with his answer, that is the Deputy's affair but he should not shout him down in the House.
Damien English (Meath West, Fine Gael)
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He did not give me an answer.
Billy Kelleher (Cork North Central, Fianna Fail)
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I am giving the Deputy the facts.
Damien English (Meath West, Fine Gael)
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He is making a show of the House.
Brendan Howlin (Wexford, Labour)
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If the Deputy would listen, he might hear.
Damien English (Meath West, Fine Gael)
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I have listened very carefully.
Brendan Howlin (Wexford, Labour)
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The Minister of State should conclude.
Billy Kelleher (Cork North Central, Fianna Fail)
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I am trying to be as helpful as possible for the Deputy. If he wishes to go elsewhere for information, that is fine. I have come to the House to give him the information I have and to assist him in any way possible.
Billy Kelleher (Cork North Central, Fianna Fail)
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The remit of the IDA is to attract foreign direct investment to this country. Enterprise Ireland is charged with supporting indigenous industry and exporting. The number of jobs created is in the annual report of Enterprise Ireland, not in projections.
Damien English (Meath West, Fine Gael)
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The Minister of State is not answering the question.
Brendan Howlin (Wexford, Labour)
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The time for this question has expired.