Dáil debates

Wednesday, 13 October 2010

Priority Questions

Departmental Strategy Statements

1:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 68: To ask the Minister for Enterprise; Trade and Innovation if he is satisfied with the effectiveness of the strategy pursued by his Department; and if he will make a statement on the matter. [36682/10]

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The strategy pursued by my Department is an integral part of the whole-of-government framework for economic recovery and growth adopted in 2008.

We are focused on employment creation through support for Irish firms, large and small, and winning foreign direct investment to sustain and expand job opportunities and boost our economic output, and they are achieving results. Last month's official figures show strong growth in exports by Irish companies in the first eight months of this year. Exports were up 8% between June and July and our trade surplus is up 29% to €4 billion.

So far this year Enterprise Ireland, EI, with funding from my Department, has delivered 32 overseas events including trade missions to Russia, Australia and the United States. Some 645 companies participated and significant business has been won. EI brought 395 international buyers into Ireland to meet client companies and write new business. Sixty-three international public procurement contracts for client companies have been won. EI believes that over 70% of exports lost in 2009 will be recovered in 2010.

So far this year, 44 new high potential start ups, 24 of which are outside Dublin, have been approved funding and there is a strong pipeline to the end of the year. IDA Ireland has secured 75 investments to date in 2010, which have the potential to create 6,000 jobs. These investments include the world's leading companies such as Stream, IBM and Google in Dublin, and United Healthcare, Lilly and Electronic Arts. The majority of these companies are already in the process of recruiting staff.

Building on these achievements, the new integrated trade, tourism and investment strategy is global in scope and covers both existing and new high growth potential markets. It sets out ambitious targets to be achieved by 2015, that is, to create 300,000 new jobs in manufacturing, tourism and traded services, of which 150,000 will be direct new jobs and another 150,000 will be generated through spin-off benefit. The strategy presents a suite of actions for building on existing strengths and driving trade relations in existing as well as new and emerging economies.

My Department is pursuing a number of other objectives in support of the achievement of the 300,000 jobs target, including a continued commitment to investing in research, development and innovation, reducing administrative burdens on business, driving the response to the innovation task force and addressing issues of competitiveness.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I thank the Minister for his reply, which, incidentally, talked all about the future and did not address the success of his Department.

My difficulty with the Department is that it and the Minister make commitments and then simply ignore them. The Department's strategy statement stated that it would deliver 62 targets in 2009 and it only delivered on 24, including the ones on which it was off target. The Department was off target on export sales by 48%, growth companies by 20% and the rights commissioner hearings by 50%. The PRSI scheme is now 90% off target.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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A question, please.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Why is the Department consistently failing to deliver the targets it sets for itself?

I want to ask the Minister, Deputy Batt O'Keeffe, specifically about his target of taking €500 million off compliance costs for business. We are half way through that programme and the Department has delivered 4%; it is 96% off target.

The Minister has failed to deal with the National Competitiveness Council's request for a process for delivering on competitiveness. He has failed to deliver on his own commitment that he would review the Competition Authority's recommendations and have a process for implementing them. When will the Minister deliver commitments that he and his Department make?

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The bureaucracy issue is the subject of a later question. I will deal with it in more detail at that point, if that is okay with Deputy Bruton, or I can deal with it now if that is his wish.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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It is my wish that the Minister deal with the question before him.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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I am sorry.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I thank the Minister.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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In terms of what Deputy Bruton stated about the targets that we set ourselves, since I came into this Department at the end of March we have set various strategies in place. We have strategies for jobs, trade and innovation in terms of implementing the task force recommendations. As I see it, we are meeting all of those targets.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Pull the other one. That is completely nonsense.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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On top of all of that, we are putting in place implementation policies to drive the projects that we have in place and to ensure that the commitments will be met. I am chairing the implementation group on innovation and the Minister of State, Deputy Kelleher, is chairing the trade council. Both of us are determined to ensure that the targets we have set ourselves would be reviewed on an ongoing basis and that we will achieve them.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Minister is 50% off on the Department's export sales target for last year. He is 50% off on the Department's employment target for last year. He is off on the Department's trade performance target for last year, its business costs and its commitment on competitiveness. He is off on every one of them, and then he expects us to believe him when he states he will create 300,000 jobs, boost exports and do the divil knows what. What about the Minister's record and that of his Department? He is not delivering on anything to which he commits and we cannot believe that he will suddenly transform himself unless he addresses these failings and honestly answers to the Parliament as to why he has not delivered on them.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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I will take two issues with Deputy Bruton. We have met our commitment under the Asia strategy. I note that Deputy Bruton took the 2009 figure but forgot to mention that Enterprise Ireland has indicated that this year it will get back 70% of the exports lost. I note that he forgot to mention that there was an 8% increase in services exports up to the third quarter.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I am asking the Minister about his Department's performance last year, which he reported to the Oireachtas, and he is not willing to answer for his failures.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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I did not interrupt Deputy Bruton. When we are having a discussion I would like us to allow each other to make our point,-----

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Not if the Minister ignores the question.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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-----and Deputy Bruton can interrupt.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Deputy Bruton, you wanted the Minister to answer the question.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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Of course Deputy Bruton forgot to mention that there was a 3% increase in other exports. He forgot to mention that there was a €4 billion increase in the balance of trade, which is 29% up on last year. He forgot to mention-----

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Leas-Cheann Comhairle will note that the Minister does not answer any of the questions that are his responsibility, about which the question was addressed.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I have no responsibility for that.