Dáil debates

Thursday, 22 November 2012

Other Questions

Enterprise Support Services

5:20 pm

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Jobs, Enterprise and Innovation his plans to develop Ireland's manufacturing capacity; and if he will make a statement on the matter. [51840/12]

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Jobs, Enterprise and Innovation the way Ireland can expand its manufacturing base; and if he will make a statement on the matter. [51865/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 9 and 15 together.

To some extent, I dealt with a good deal of this answer in the earlier reply where I outlined the establishment of a manufacturing development forum and its ongoing work to produce a strategic plan in the new year. Rather than repeat that, I suppose it is worth saying-----

Photo of Peter MathewsPeter Mathews (Dublin South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Does the Minister want to read it into the record?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I will read-----

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

No, we have it. I am satisfied with that.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I would like to ask a question.

Photo of Peter MathewsPeter Mathews (Dublin South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I apologise for interrupting.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

To amplify that, it is worth saying that both Enterprise Ireland and IDA Ireland continue to develop policy interventions to support the manufacturing sector. As I stated, under the Action Plan for Jobs there are a number of measures to improve productivity, extend innovation, introduce lean systems, enhance management skills, develop collaboration in new technologies and enhance access to finance. For example, the development capital fund is a specific new initiative for access to finance targeted at companies that have a weak balance sheet but have the capacity to grow.

This week, I visited the Irish Centre for Manufacturing Research which is promoting collaboration. It works with a significant number of both SMEs and multinationals. There have been four spin-outs, between that centre and the energy efficiency centre, where they are using the research being done in these centres with manufacturing and other companies to develop applications to achieve better energy efficiency, achieve better use of equipment and introduce more efficient systems.

The lean programme has been successfully rolled out for a number of companies. It has allowed them strip out cost effectively and achieve the competitive edge which has enabled the driving of significant growth in exports from manufacturing companies.

There is much worthwhile work going on through Enterprise Ireland in promoting this sector and supporting its transition.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Minister mentioned another fund, the development capital fund. It brings me back to my previous question to the Minister of State, Deputy Perry, on the knowledge of these schemes. It is an issue that we have spoken a great deal about at the Joint Committee on Jobs, Enterprise and Innovation. There are many schemes and many funds, but there is no one place in which to get all of that information. At the committee, Deputy Lawlor is particularly strong on this. There is a need one place where somebody in any sector can go to find what supports are available, and this is merely another example.

Returning to manufacturing, is the Minister happy that the apprenticeship scheme is fit for purpose to deal with the opportunities there will be in manufacturing over the next number of years?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I agree with Deputy Calleary. One of the results that came out of the national tour we did with the Action Plan for Jobs was that there is insufficient knowledge out there.

On foot of that we have produced a simple and easy-to-use brochure which we have online. We have been promoting it through the Company Registration Office, chambers of commerce and county enterprise boards. We are promoting it everywhere we can and it includes micro-finance and loan guarantees. We will seek to take further initiatives.

As the Minister of State, Deputy Perry said, the one-stop-shop in the local enterprise office is the aim, so that there will be one place to go and access revenue, seed capital or micro-finance. One will be able to use that as a single source of information.

The Deputy is correct in that apprenticeships need to be re-examined. One of the tasks of SOLAS, which has now gone to the Department of Education and Skills, is to look at the weaknesses or strengths and changes that are needed as a result. As part of the manufacturing forum, my own Department is looking specifically at manufacturing skills and the changes required. It is clear that we do not have enough traineeships embedded within the various sectors. We need therefore to build a much closer alliance between training and industry to get an embedded training culture.

5:30 pm

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Last Monday, we took a trip to see approximately 25 businesses in County Donegal to get an understanding of their status. We were at an engineering firm on the Inishowen Peninsula, whose management made the point that the way in which Lean management and Lean manufacturing programmes are delivered through Enterprise Ireland is very awkward for them. They end up not accessing them from Enterprise Ireland but privately. The firm's management also told us that the electricity costs it pays are at a higher unit rate than domestic costs. Perhaps the Minister can look into that issue because the manufacturing firm in question is being charged higher costs than in a private household.

The businesses we spoke to said one key issue that is creating difficulties with regard to employment is that when people take jobs for €14 or €15 per hour they often fall off a welfare benefit cliff. They would therefore lose medical cards and education allowances completely. Consequently it meant that they do not take up those jobs. If such allowances could be maintained for a higher level of income, such people would not find themselves in that position. They would then be able to resume paid employment within the manufacturing industry.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
Link to this: Individually | In context | Oireachtas source

I fully agree with the Minister's point about training and apprenticeship schemes in the manufacturing sector. The success of manufacturing after the Second World War was very much based around major investment in training and apprenticeship schemes. However, the Government should consider imposing measures to compel different sections of industry to improve themselves in this respect. In the construction sector, there has been a huge fall-off in the apprenticeship scheme. It has become a big problem so direct action should be taken. Even though the construction sector may be flat at the moment, it will not stay that way forever. We should therefore be imposing rules and regulations on the construction industry to come up with a framework whereby businesses are compelled to invest in apprenticeships and training.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As regards Deputy Tóibín's point, I will investigate what the problem is with Lean for that company in Inishowen. I am not familiar with a difficulty but if the Deputy provides me with the details I will follow it up. While electricity costs are not a matter for my Department, they obviously depend on the power and continuity required by a customer.

There are problems with benefit withdrawal but most people who have been on the live register for over a certain period - if, for example, they are availing of revenue job assist - will get significant compensation both in the tax code and the ability to retain some of their allowances. Nonetheless, I accept that we need continually to seek to unwind those. I am aware of the impact of rent supplement in that area, although only a small proportion of the live register is affected by that.

Deputy Wallace raised the issue of making training compulsory. At the moment, the Government must be careful about imposing obligations - or what effectively would be levies - on employers at a time when they are struggling, particularly in the construction sector where they have experienced downsizing. We need, however, to create a culture in which industries actively plan the longer term development of skills that are needed in their sector. There are segments within industry that are going through a good growth phase. We should develop better arrangements for them for permanent placements and alliances with institutes of technology or the vocational education committees in order to have a regular flow and work experience. That would be our ambition.

Written Answers follow Adjournment.

The Dáil adjourned at 5.45 p.m. until 2 p.m. on Tuesday, 27 November 2012.