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

To ask the Minister for Jobs, Enterprise and Innovation in view of the fact that jobs are the number one priority for the Government, if he will identify the target for job creation for this year; and the target unemployment rate and the additional resources committed to promote and retain jobs. [3566/13]

Seán Sherlock (Cork East, Labour)
Link to this: Individually | In context | Oireachtas source

Job creation is a key priority for the Government. Action Plan for Jobs has set the objective of supporting the creation of 100,000 jobs by 2016 and making Ireland the best small country in which to do business. The 2013 action plan for jobs will set out detailed targets for important measures of economic transition and for the delivery of policy actions to support employment, enterprise, innovation and exports. It will include indicators such as job creation in agency supported enterprises, the number of high potential start-ups to be supported in 2013, the target for new foreign direct investment projects and the number of significant investments by Enterprise Ireland-assisted firms in a range of areas, which are critical to company growth and job creation.

Considerable resources are being committed to the task. Our Department's Exchequer capital allocation for 2013, including carryover of unspent moneys from 2012, amounts to €483 million gross. At a time of severe restraint in capital resources, this demonstrates the Government's commitment to enterprise development and jobs.

We have also developed innovative instruments to leverage up the impact of this capital expenditure to support job creation through our Department and its agencies. These include the provision of €175 million in Exchequer funding through the seed and venture capital scheme. This funding has a target to leverage €525 million in line with past experience. An additional Exchequer allocation of €25 million is being provided under the development capital scheme in 2013, targeted at mid-sized indigenous firms. The Government committed €50 million to the scheme in 2012 and this funding will leverage up to €225 million. The Department will also continue to roll out and monitor the €90 million microfinance fund and the €450 million credit guarantee scheme, which again leverage smaller Exchequer outlays.

Additional information not given on the floor of the House

In a similar vein, the National Pensions Reserve Fund, NPRF has developed a range of support funds for the SME sector to provide equity, credit and recovery investment. The NPRF will invest between €350 million and €500 million with a view to creating a total funding pool of at least €850 million for investment in SMEs. In addition, a new package of tax measures to support SMEs was outlined by the Minister for Finance in budget 2013. It is important, however, to recognise that the economic transition is not solely about the volume of Exchequer resources aimed at the enterprise sector. Equally important in the 2013 action plan for jobs will be the reforms which we are continuing to implement on an ongoing basis to enhance our competitiveness, improve the environment for business, support enterprises, and progress sectoral strategies. The 2013 plan will be published in the coming weeks, following approval by Government.

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

I asked what were the Minister's targets for job creation and the unemployment rate this year.

Despite the wonderful amount of information the Minister of State gave the House, neither of those two questions were addressed.

The Government objective was not to create 100,000 jobs by 2016. It was to create 100,000 additional jobs by 2016. At present, 335,000 people are unemployed, of whom 60% have been unemployed for 12 months or more. Since the Government came to power there have been 20,000 net job losses. The Government already faces an uphill battle if it is to create 120,000 jobs by 2016.

The IDA and Enterprise Ireland did good work last year. Sinn Féin welcomes every single job created by a Government initiative. Let us look, however, at the size of the problem. One job was created for every 34 people unemployed. The Government has solved 3% of the unemployment situation in the last year. According to the Nevin Institute, to achieve net job increases the economy must grow by 2% or more. I see no forecast of a 2% increase in growth.

Every business in the State operates its business by identifying targets for growth, turnover and profit. Why will the Government not do the same?

Seán Sherlock (Cork East, Labour)
Link to this: Individually | In context | Oireachtas source

As the Minister has said, the Government must create a set of conditions that facilitate growth in employment rates. I am not aware of any Government having set an employment rate target. I am not aware of a precedent for that.

The Deputy referred to the National Pensions Reserve Fund, NPRF. It will be used to support the SME sector and provide equity, credit and recovery investment. The NPRF will provide up to €850 million on a commercial basis with a view to leveraging private sector funding into the Irish investment market. The Government is creating conditions such as a 25% increase in the threshold for VAT cash receipts basis accounting to improve cash flow for SMEs. It is doubling the amount of expenditure that qualifies for the research and development tax credit for SMEs so that we can support more innovation by businesses. That will have a positive impact on foreign direct investment. It is extending the foreign earnings deduction scheme to support exporting companies to develop a presence in new key markets.

The economic transition is not solely about the volume of Exchequer resources aimed at the enterprise sector. We must give equal importance to the reforms that will result from instigating a range of measures to enhance our competitiveness, improve the environment for business and create the jobs that are so necessary.

There are IDA and Enterprise Ireland targets. Because of the constraints of time here in the House I would be happy to talk to the Deputy about those targets. He is welcome to come to the Department for a briefing any time.

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

I do not say there have not been positive actions by the Government, but they are not proportionate to the size of the problem. The Government has created one job for every 34 people unemployed.

The Minister of State speaks about competitiveness. There are major infrastructural gaps that necessitate investment. Such investment plans would increase the growth rate above 2% and would create the necessary proportionate level of growth to decrease unemployment significantly.

On 29 September 2011, a new strategic investment fund was announced with some fanfare. The legislation to establish that fund will not be published this term and the heads of the Bill have not been agreed. Given the immediate importance of the problem, is this not a shocking length of time to wait for legislation to create an average initiative such as this?

Seán Sherlock (Cork East, Labour)
Link to this: Individually | In context | Oireachtas source

Deputy Tóibín says we are not allocating sufficient resources. The seed and venture capital scheme has €175 million of Exchequer funding. The NPRF will spend approximately €850 million, which will be available for investment in the Irish SME sector. The IDA has an allocation of €86 million for 2013. Its targets are set out in its Horizon 2020 programme. We have allocated €120 million to Enterprise Ireland. It has clear targets to support high potential start-ups. There are innovation programmes, new technology centres and spending on technology transfer within our universities. There is €69.5 million for enterprise supports. There are Graduates for International Growth, additional Lean programmes and engagement with 300 first time exporting companies. Local enterprise offices have been established at local level.

If Deputy Tóibín wishes to critique the Government's allocation of resources on each of those specific processes I would like to give more time to hammer it out with him and see where Sinn Féin thinks we should allocate more resources and taxpayers' money in creating jobs.