Dáil debates

Wednesday, 29 February 2012

1:00 pm

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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Question 1: To ask the Minister for Jobs; Enterprise and Innovation with regards to his target to have 100,000 more persons in work in his action plan, the gross number of jobs he intends to create to achieve this target; the projected rate of unemployment he used as the basis of the plan for each year to 2016; and if he will make a statement on the matter. [11689/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The action plan for jobs has set a target of supporting the creation of 100,000 net new jobs over the period 2012 to 2016. Even in good times, businesses close and jobs are lost so, as the Deputy recognises, a significantly larger number of new jobs will clearly need to be generated on a gross basis over the period in question to achieve the target. Such jobs are not created by my Department and its agencies but by successful enterprises.

There is no reliable data published on gross job creation forecasts across the economy. However, we develop targets in respect of client companies of my Department's agencies. Over the period of the action plan for jobs, Enterprise Ireland and IDA Ireland are targeting the support of more than 100,000 gross jobs in client firms. Experience has shown that such job creation is matched by a similar number of approximately 100,000 connected jobs in the economy through the supply chain. Approximately 5,000 full-time jobs and more than 3,500 part-time jobs will be created by the county and city enterprise boards each year. Of course, further jobs will be created by companies which are not supported by the enterprise agencies but data are not collected on this in any systematic way.

The objective of the action plan for jobs is to transform the operating environment for business to make it easier to start up, expand, access finance and to find new markets. The plan is built around four key themes: supporting indigenous businesses; attracting more international start-ups and multinational companies; targeting sectors of potential; and improving competitiveness across the economy.

The action plan does not make projections of the rate of unemployment. It is seeking to influence the direction of growth and to change the trends in respect of enterprise, employment and of unemployment. Clearly, trends in global economics will have an effect on our trade and investment ambitions but we are stepping up the performance of enterprise and employment. It is about grinding out reforms to our policies, structures and systems, one by one, to create the environment where jobs can be created and sustained.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I am sorry. Maybe I was not paying sufficient attention but I did not quite get what the Minister said. How many jobs will be created? Page 7 of the document states that the ambition is to have 100,000 more people in work by 2016. The Minister seemed to recognise in his reply that if we are to have 100,000 more people net at work by 2016, obviously, we will have to create more than 100,000 jobs in between because we will have attrition of various sorts, as he mentioned. What was his gross figure again in order to achieve a target of 100,000 net? Did I understand him to say the gross figure was 200,000?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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As I explained, we have a figure of more than 100,000 gross in respect of the agencies - IDA Ireland and Enterprise Ireland - and there is a figure in respect of county enterprise boards. There is also a figure which has been used as to the multiplier effect of one job - the supply chain impact. We are indicating approximately 250,000 across that set of the economy.

Of course, we are not setting targets explicitly - we do not have that sort of analysis - in respect of businesses which are not agency assisted. Clearly, they create gross jobs which would be over and above this. In terms of the ones within the remit of our Department, those are the figures - more than 100,000 in respect of direct and indirect impact and then topped up to 250,000 in all, taking in the county enterprise board structure.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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The Minister is now telling us to believe that, as a result of this plan, 250,000 jobs gross will be created by 2016. Unfortunately, that is the third figure we have got because I think he said 200,000 previously. More important, a Minister of State in a different Department, Deputy Cannon, said on "Prime Time" recently - I do not have the date but I can get it for the Minister - that it would require the creation of 350,000 jobs gross, so where are we?

I wish to ask the Minister a few specific questions. Approximately how many people does he envisage being on the unemployment register by 2016 when this particular plan comes to an end? What is being presented as different about this plan is the regular policing, the quarterly reports. What sanctions does the Minister have in mind for people who are not performing as expected because we are not only talking about Departments, which must all perform in regard to some subjects, but about organisations such as Enterprise Ireland, Sustainable Energy Authority of Ireland, Forfás, the Department of Tourism, Transport and Sport, the company law review group, Fáilte Ireland, research funders and the prioritisation action group? What possible sanctions can be applied to those people? How could the Minister even imagine that the company law review group or all Departments would be embarrassed if some action that was supposed to be done within a certain period of time was not done?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Deputy has raised a number of points. As I pointed out in my reply - I am sorry but perhaps I glossed over it - there is no reliable data on gross job creation in the economy. The CSO did a once-off study, which is worth looking at, where it estimated that in 2010, gross job creation was approximately 12%. I suppose that would be equivalent to a little over 200,000 jobs in that year. There is much job creation that is not captured by the agency work. No one has accurate projections in that area. What we are working on are the areas of policy which we control and the potential impact. Our ambition is to grow employment - that is central - not only gross, but to see more people net at work.

The Deputy raised issues as to how one introduces sanctions. Performance accountability will be a key feature throughout the public service and it will influence not only individual careers and promotional opportunities, but the allocation of budgets. It is also simply reputation. People in the public service want to be seen to be delivering good quality performance against best practice. The public servants I work with are up for that challenge. This is about setting benchmarks and recognising success when it comes. That is what we are seeking to do.

There is a huge energy across the agencies involved to deliver this and I believe we will deliver it. It is about people's reputation and their commitment to achieve things for the country. That is a big part of this and it is important that, from the Taoiseach down, the delivery is monitored, people are recognised for success and questions are asked about disappointment, and that it has impacts for other things like budgets and performance indicators which are applied to staff and everything else.