Catherine Murphy (Kildare North, Independent)
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Question 58: To ask the Minister for Jobs; Enterprise and Innovation if, in view of the numbers of unemployed remaining consistently over 440,000, achieving full employment is the aim of his Department in the liftetime of this Government; if so, the job creation schemes he proposes to help achieve this; the figures he can provide in terms of projected jobs to be created as as result of these schemes; and if he will make a statement on the matter. [36672/11]

Richard Bruton (Dublin North Central, Fine Gael)
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Job creation is at the top of the Government's agenda. Since we came into office, we have been working hard to create the improved economic conditions which will support the maintenance of existing jobs and the creation of new ones. Our objective is to put the country back on the road to economic recovery and full employment. However, we are also realistic about the scale of the task that lies ahead. The number of people on the live register is the legacy of failed policies and a measure of the challenge that faces us.

Creating a robust economy, capable of capturing new opportunities and sustaining jobs, requires a medium to long-term vision. I have said many times before that Governments do not create jobs, entrepreneurs do. It is true that with major capital investment Government can stimulate economic activity and create jobs in the design and construction phase of individual projects. Sustainable employment growth, however, requires a dependable, indigenous engine for growth and jobs. That can only be built on a foundation of competitive costs, a supportive environment for business, opening up new export markets and embracing innovation.

In the recent capital budget, an allocation of €2.3 billion is being provided to my Department's Vote between 2012 and 2016. This means that funding for my Department's enterprise development agencies will be protected or enhanced over the medium term. A number of new initiatives will also be funded, including a partial loan guarantee scheme and Innovation Fund Ireland. As a consequence, I expect the enterprise development agencies to deliver on their ambitious jobs targets of more than 110,000 gross new jobs over the five years of the programme to 2016. This represents an average of 22,000 new jobs per annum. Every new job is estimated to have a multiplier effect, so the overall impact on job creation of these activities is estimated at 220,000 gross new direct and indirect jobs. However, the Government has ambitions to go beyond these targets.

In this context, I am currently preparing a jobs strategy for the Government which will set out a series of clear, actionable measures to support the creation and retention of jobs. The strategy will focus on a number of areas.

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These areas include: improving competitiveness and intensifying competition in sheltered sectors; assisting indigenous business to grow; supporting indigenous start-ups; attracting inward entrepreneurial start ups; developing and deepening the impact of foreign direct investment; exploiting opportunities in new and emerging sectors; and supporting employment initiatives within the community.

The actions contained in this jobs strategy will assist all enterprises across all sectors to protect and create jobs. We will be taking a "whole of Government" approach to making this happen. Some of the actions in the jobs strategy will be delivered in the short term and will have an immediate impact, while others will be delivered over a longer timeframe. The objective is to publish the strategy early in the new year.

Catherine Murphy (Kildare North, Independent)
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We all agree that job creation is the most important objective because it is clear that if one gets people back to work, they are paying taxes and not receiving social welfare and it has a dynamic that goes beyond the good of the individual who is at work. Will the approach be targeted at certain sectors? Earlier this year, the Government announced that it would boost tourism by cutting the lower rate of VAT, which would create a stimulus to jobs in that area. Now, we hear there is to be an increase in the upper rate of VAT. Will that not be a counter-balance?

The Government's capital budget has been reduced. We expected shovel-ready projects but some of these have been scaled back significantly. Will that impact on the 110,000 jobs the Government had targeted?

There appears to be greater intervention at the level of multinational companies and foreign direct investment. Enterprise Ireland and the county enterprise boards seem to be slow to change. We have been waiting for some initiatives in the county enterprise board sector. The last time I asked a question about these initiatives I was told they were due to be announced. Unless we get those things right I cannot see how those sectors will be resourced to create jobs. Reform in those sectors seems to be taking a little longer than I anticipated. If jobs are the centre-piece of Government policy should that reform not be to the forefront and should we not have seen something sooner?

Richard Bruton (Dublin North Central, Fine Gael)
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Deputy Murphy asked several questions. Yes, there are targets. The figures I quoted of 22,000 jobs per annum and 110,000 jobs by 2016 are targets set by IDA and Enterprise Ireland and those targets have sectoral elements within them. I can provide those figures to the Deputy. The Deputy is right to say there have been reduced capital allocations. However, the enterprise area has been protected from such reductions and these targets are robust. We have provided money to underpin them and even to provide for some more initiatives aimed at small businesses, such as the partial loan guarantee, the micro-finance initiative and others.

There is not an undue emphasis on IDA versus indigenous companies. Looking to the long term, we clearly need to have more growth from the indigenous side. At present, it is about 12,000 jobs from the IDA and 10,000 from indigenous exporters. We need to see the indigenous element of that grow stronger. Many of the measures I will develop in the jobs strategy will be aimed at getting more people, whether Irish or overseas people, to start businesses. For example, I recently announced a €10 million fund to encourage foreign people to start businesses in Ireland, which is a real area of opportunity.

Catherine Murphy (Kildare North, Independent)
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Is full employment a stated aim of the Government? I know that is a tall order, but I would rather shoot for the stars and narrowly fail than not aspire to full employment. That is my prime question. Can the Minister answer it?

Richard Bruton (Dublin North Central, Fine Gael)
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I said plainly in my reply to Deputy Murphy's question that the Government's objective is to put the country back on the road to economic recovery and full employment. I recognise that this ambition will not be realised in the short term, but I agree with the Deputy that we need to set ourselves ambitious targets. We should aim to get back to having 2 million people at work and being in the top five in terms of competitiveness. The Taoiseach has said, repeatedly, that we should be the best small country in which to do business by 2016.

We need ambitious targets that drive policy development. I hope the jobs strategy will have such ambitious targets and will sustain momentum over a long period of years. We will not simply produce a document and forget about it.