Dáil debates

Wednesday, 13 October 2010

Priority Questions

Departmental Agencies

1:00 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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Question 71: To ask the Minister for Enterprise; Trade and Innovation if has satisfied himself that the Industrial Development Agency and Enterprise Ireland have sufficient staff and resources to allow them to fully and effectively discharge their functions in view of the current level of unemployment; if approval has now been given for all resources and staffing levels sought by both agencies; and if he will make a statement on the matter. [36634/10]

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The Deputy will be aware that the staffing levels for each Department and its associated offices and agencies are determined by an employment control framework agreed with the Department of Finance in accordance with the Government decision on reductions to be achieved in civil and public service numbers over the period to end 2012. In allocating staff resources under the employment control framework I gave a particular priority to ensuring that Enterprise Ireland and IDA Ireland had the necessary staff numbers to deliver on their crucial role of supporting enterprise and job creation.

In the case of the IDA, I am pleased that the staffing arrangements have been finalised and the agency has confirmed to me that the levels of staff agreed will enable it to achieve the targets set out over the next five years. In the case of Enterprise Ireland, the agency has indicated its overall satisfaction with the numbers allocated to it under the employment control framework. I am pleased to confirm that Enterprise Ireland has received sanction to fill 12 priority posts that have been identified as critical to the efficient delivery of services.

Working with other Departments and agencies, Enterprise Ireland and the IDA aim to increase the number of new, export focused jobs by more than 150,000 with a similar number of indirect jobs also being created, increasing the value of exports by indigenous companies by 33% and securing an additional 780 inward investment projects through IDA Ireland.

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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In the context of 450,000 unemployed people, the important role performed by Enterprise Ireland and the IDA and their job creation capacities, is it not important that both agencies have more than sufficient staff to enable them to meet their job targets? Is it not unseemly and pathetic that Enterprise Ireland and the IDA have been in negotiations with the Minister regarding recruitment since September 2009?

The chairman of the IDA felt compelled to write to the Minister in May 2010 indicating that despite the fanfare surrounding its launch, the Horizon 2020 strategy would fall flat on its face and job replacements would not be delivered to Sligo and Limerick, areas which have recently incurred major job losses with the closure of Dell and other companies. The letter stated that a lack of staff would have an enormous impact on staff in overseas offices as they work to bring investors to Ireland. Is this letter not an indictment of the Minister and his Department and the Department of Finance and its control network? What message does it send out? Surely this is the one area where an exception should be made to the moratorium on recruitment. Every job created by the IDA and Enterprise Ireland saves the Exchequer, which is controlled by the Department of Finance, €20,000 per annum. What better way is there to spend money?

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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In May, when I received the letter in question, I spoke to the chairman of the IDA and indicated that I would give priority to the economic agencies that would deliver jobs. I made him aware that this would take place when we completed the overall employment framework and that is exactly what happened. I called in the chief executives of the IDA and Enterprise Ireland and asked what were their requirements to meet the targets that had been set out. These were new targets because the IDA had previously indicated that it would increase the number of companies it brought to Ireland from 640 to 750. I agreed with both agencies on what were the necessary employment levels and ensured both organisations secured the number of staff they required. As I indicated, Enterprise Ireland is recruiting 12 crucial staff members to help it achieve its targets. Both the IDA and Enterprise Ireland have indicated publicly that they are satisfied that the number of staff allocated to them will allow them to meet the targets they have set.

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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That is well and good. We had great fanfare recently when the Minister and Taoiseach launched a report indicating that 300,000 jobs - 150,000 direct and 150,000 indirect positions - would be created. I understand the BRIC economies - Brazil, Russia, India and China - are expected to play an important role in this regard. I do not know how many staff Enterprise Ireland and the IDA have in the BRIC countries but it is not a large number. I recently had a discussion with a senior industrialist who indicated that relevant Minister should allocate 100 staff to these countries. The individual in question, whom the Minister knows well, does not wave a flag for the Labour Party. In any event, that is the enormity of the challenge facing us because many of the new jobs we seek will have to come from the four BRIC countries. I ask the Minister to prioritise allocations to these countries to reflect the thinking in the recent Government report on job creation.

3:00 pm

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The Government has given a commitment on job creation. I have received a 25% increase in the allocation for the capital programme for the enterprise agencies up to 2016. I know the Deputy does not mean it when he argues we should throw 100 jobs at a particular region. The IDA is targeting high potential growth markets such as China and Brazil. I will visit Brazil and the Middle East on trade missions. The Minister of State, Deputy Kelleher, visited Russia and all the Ministers of State in the Department will take part in trade missions to assist Enterprise Ireland.

Another important advance has been the decision to make our embassies economic entities. This will ensure they become a focal point for all the agencies and individuals working on behalf of Ireland incorporated in the relevant countries. We already have two people in Brazil making sure contacts are made and interacting with Irish people and the embassy. We also have an outstanding system in place in China and we are building our strengths in India and the Middle East. If further resources are needed to increase exports and interaction between Irish companies and firms in the countries in question, they will be provided.