Bernard Durkan (Kildare North, Fine Gael)
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Question 26: To ask the Minister for Jobs; Enterprise and Innovation the extent to which he has had discussions with the EU Commission with particular reference to availing of every possible opportunity for job creation through the medium of innovation and research thus leading to economic recovery; the extent to which he has had discussions with the relevant EU Commissioner to this end; if specific targets have been identified or set over the next five years; and if he will make a statement on the matter. [21099/11]

Seán Sherlock (Cork East, Labour)
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The Minister, Deputy Bruton, and I have had separate meetings recently with the European Commissioner for Research, Innovation and Science, Maire Geoghegan-Quinn, with a view to building strong relationships to ensure Ireland maximises the benefits of our position in the European Union in terms of jobs and opportunities to further develop the economy. Most recently, the Minister met the Commissioner on 24 June when they held an event in Dublin to highlight opportunities for Irish researchers, businesses and educational institutions under the European Union's Seventh Framework Programme for Research and Technological Development, FP7. The Commissioner highlighted the fact that upcoming calls for proposals under FP7 in July 2011 and July 2012 would be worth approximately €18 billion.

With a budget of over €50 billion in the period 2007 to 2013, FP7 is the European Union's main instrument for funding research and development in Europe. In order to extract the maximum benefit from the opportunities available within FP7, a national support network has been put in place, headed by the national director for FP7 based in Enterprise Ireland who leads a team of national contact points for various elements of the programme. This support structure ensures a co-ordinated and coherent approach is adopted towards FP7 across all the Departments, agencies and other organisations involved. Through this support structure, a mix of guidance, advice and financial assistance is available to encourage researchers and companies, large and small, to avail of the opportunities within the programme. The range of financial supports available includes travel support which assists researchers to meet potential partners and proposal preparation support for academic co-ordinators and companies, covering all costs included with the submission of FP7 applications. Ireland's target for the drawdown of funds from FP7 in the lifetime of the programme is €600 million. Achievement of this target is well on track, with some €300 million already awarded to date. I am determined that we will achieve the target set.

Additional information not given on the floor of the House.

The next European Framework Programme for Research and Innovation, to be called Horizon 2020, will operate from 2014 to 2020, for which the European Commission has proposed a budget of €80 billion in its recently published multi-annual financial framework for the period. While no target has been set for the next framework programme which has yet to be proposed by the Commission and agreed by the Council, I am determined to ensure ambitious Government policies are in place in order that we can continue to improve our performance.

Bernard Durkan (Kildare North, Fine Gael)
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Will the Minister of State elaborate on the degree to which specific targets have been agreed, whereby industry and academia here could capitalise on the funding available? To what extent have the various agencies engaged with each other independently of the Minister and his Department in the meantime?

Seán Sherlock (Cork East, Labour)
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There is a multi-layered approach in this respect. There is clear recognition of a strong policy started by successive Governments which forms the foundation for ensuring the maximisation of the potential for the drawdown of funds. We are already involved in a research prioritisation exercise that will seek to concentrate on specific themes of research and, ultimately, commercialise that research. However, it is important to have regard to the educational aspects of basic research and the commercialisation agenda. The prioritisation exercise which involves all of the State agencies interacting with each other and the Department is about ensuring we maximise the potential to meet our targets. In regard to Horizon 2020, the process seeks to ensure we will be more ambitious and that Ireland will become an agenda setter for the programme.

Bernard Durkan (Kildare North, Fine Gael)
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I thank the Minister of State for his comprehensive reply. Will he indicate if any deficiencies or weaknesses have been identified, which, when and if addressed, will result in a maximisation of the economic benefit for the country in terms of job creation?

Seán Sherlock (Cork East, Labour)
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If I was to proffer a personal opinion, I would contend we could be doing more on the commercialisation agenda. If we were spinning out more companies, for instance, from the higher education institutes, that would ultimately lead to further job creation. It must be remembered also that our investment in research, or research, development and innovation, through the collaborative approach with all of the foreign direct investment companies housed here, ensures their continuation in the country. It also ensures greater innovation in these companies. It is a two-prong approach. It is about trying to achieve more in the commercialisation space through the creation of more companies and also about ensuring the existing foreign direct investment, FDI, infrastructure is not compromised in any way. It is also about ensuring the research component is maintained.

Bernard Durkan (Kildare North, Fine Gael)
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Question 27: To ask the Minister for Jobs; Enterprise and Innovation the extent to which he has studied initiatives likely to create jobs leading to import substitution with particular reference to the need to combat the outward flow of jobs and investment to low wage or more competitive economies; the degree to which consideration has been given to the reasons for such relocations in either the manufacturing or service areas; in the context of the global economy the opportunities in technology and innovation that can positively be explored to give this economy a competitive edge; and if he will make a statement on the matter. [21100/11]

Bernard Durkan (Kildare North, Fine Gael)
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Question 239: To ask the Minister for Jobs; Enterprise and Innovation the steps he has taken or intends to take to address job losses in various locations throughout the country with particular reference to those areas that have experienced relocation of investment to more competitive economies; and if he will make a statement on the matter. [21382/11]

Richard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 27 and 239 together.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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With which question is Question No. 27 being taken?

Richard Bruton (Dublin North Central, Fine Gael)
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Question No. 239, another question tabled by Deputy Durkan.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Deputy Durkan cannot have three of them.

Richard Bruton (Dublin North Central, Fine Gael)
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In 2009 there were major reductions in industrial jobs around the world - the number of new industrial jobs was low - and Ireland was not immune from these developments. The main cause of the job losses which occurred was excess capacity in the international recession and arose from a restructuring process which went on in industry in Ireland and around the world. Overall job numbers in individual companies have been reduced at their plants around the world. Some losses due to relocation at the lower end of the value added scale have been phased out as these activities became uncompetitive in particular locations. However, the manufacturing and internationally-traded services sectors in Ireland have begun to recover in the last two years and exports have performed strongly. They have been less affected by Ireland's difficulties in banking and the public finances than other sectors. They have been in a position to avail of improvements in competitiveness such as reductions in Irish pay costs, energy costs and rental costs.

There are many opportunities in technology and innovation which are giving Ireland a competitive edge. We have established strong clusters in innovative sectors such as medical devices, ICT and the pharmaceutical and financial sectors which continue to perform well. Ireland is well placed to exploit opportunities in new sectors such as cloud computing and digital gaming, life sciences and clean-tech industries. We are building on investments made in the research and development capability of our higher education institutes working collaboratively with industry.

Import substitution in the area of public procurement offers opportunities for some enterprises. However, to build scale most successful companies must also must develop an export market and Enterprise Ireland focuses on moving companies into a position to penetrate overseas markets.

Bernard Durkan (Kildare North, Fine Gael)
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In view of the fact that quite a number of high-tech jobs were lost in the ten years prior to the downturn in the economy here and worldwide, has there been a specific identification of the issues which are causing some companies to relocate to other jurisdictions and have the findings been studied with a view to putting in place the necessary measures to encourage the retention of the maximum number of such jobs in this jurisdiction, while at the same time ensuring competitiveness is achieved to ensure a long-lasting impact?

Richard Bruton (Dublin North Central, Fine Gael)
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While no specific study is being carried out at present, the turnover in companies is a feature of technology moving on. The pharmaceutical sector began by processing bulk chemicals and it gradually became more sophisticated. Ireland had the knack to continually move up the value chain. The problem that continues to arise is that the more routine elements of each sector become commodities that are no longer competitive to produce in Ireland. We are successfully moving up the value chain. Last year, half of all IDA investments included an element of research and development. The trick for Ireland is to ensure we are at the forefront of developing new products and technologies in order that we can move to higher value sectors as natural losses occur in other areas.

Bernard Durkan (Kildare North, Fine Gael)
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I ask the Minister whether specific attention has been given to areas which have caused or are likely to cause companies to relocate. For example, how many companies in the insurance industry or high technology pharmaceuticals and electronics sectors have relocated on the basis of their inability to compete?

Richard Bruton (Dublin North Central, Fine Gael)
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My Department and its agencies maintain an early warning monitor on issues that adversely affect sectors of the economy. Through the agencies, we ensure we are positioned to meet the rising tides either through research and development investment or by anticipating change. Ireland's offering, which used to be plentiful cheap labour and tax incentives, has become more sophisticated. We have developed clusters of skills around innovation and research and development but our challenge is to improve continually in basic areas like cost competitiveness and utilities.

Thomas Pringle (Donegal South West, Independent)
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Has the Minister or his Department considered the development of a wood for energy industry that could offset the importation of almost €2 billion worth of home heating oil?

Finian McGrath (Dublin North Central, Independent)
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Deputy Durkan raised a relevant question. The specific issue raised in Question No. 27 and the debate about the relocation of 130 Vodafone jobs to Egypt is important because the local economy is losing €2 million. I ask the Minister to be more proactive in defending this type of job.

Peadar Tóibín (Meath West, Sinn Fein)
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It has been reported that the Government's €20 million jobs initiative has only created eight internships despite advertising hundreds of positions. Can the Minister clarify the matter further?

Richard Bruton (Dublin North Central, Fine Gael)
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I understand there are approximately 1,200 placements on the internships scheme. Perhaps they have not yet been tied down and completed but the programme has been very successful and the Minister for Social Protection is pleased with the progress made thus far. It is one of our success stories. It started on 1 July and even though we are not yet three weeks into the month, there is already a significant take-up on the scheme.

The issue of wood for energy would be more appropriately addressed by the Minister for Communications, Energy and Natural Resources. Enterprise Ireland would, of course, support any initiative, however, and if the Deputy has in mind a particular company or project, I would be happy to make arrangements to discuss it with the agency. The broader policy is the responsibility of the Minister, Deputy Rabbitte.

Deputy Finian McGrath raised the issue of outsourcing. It is disappointing that any company would outsource jobs, as happened in Vodafone, but it is a large company and we need to develop opportunities in other parts of its operations. While it is always regrettable to see jobs being lost, we must work with the company to develop new areas. I met the unions recently and they expressed their concerns. I am determined to meet Vodafone to see how we can develop opportunities with this major international company, just as we have successfully done with others. The Government is not in a position to prevent companies from making commercial decisions of that nature.