Willie O'Dea (Limerick City, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Jobs, Enterprise and Innovation the measures he has taken or proposes to take in the wake of the Forfás report on the construction industry; and if he will make a statement on the matter. [9100/13]

Seán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Jobs, Enterprise and Innovation the action he is taking to protect the future of the Irish construction sector on foot of the strategy submitted to him by Forfás; and if he will make a statement on the matter. [9084/13]

John Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 7 and 20 together.

In response to the requirement set out in Action Plan for Jobs 2012, Forfás prepared a draft strategy for the construction sector to 2015 following consultations with industry and other key stakeholders. The draft strategy sets out actions aimed at placing the sector on a sustainable footing for future growth.

The issues facing the sector are broad ranging and cross several Departments and their agencies, including the Department of the Environment, Community and Local Government in respect of housing policy, planning and development issues and building regulations; the Departments of Finance and Public Expenditure and Reform and other relevant Departments in terms of the Government’s public capital programme; the Department of Communications, Energy and Natural Resources in respect of energy efficiency issues; and the Departments of Education and Skills and Social Protection in terms of training and education, skills development, retraining issues and employment support services. With regard to my own Department, a key focus for Enterprise Ireland, EI, is the internationalisation of construction services, and EI continues to work intensively with the sector in this regard.

Historically, the construction sector has been a significant contributor to the Irish economy and it remains important, albeit on a more sustainable scale. As we all know, the sector grew to unsustainable levels on the back of a property bubble, resulting in very significant job losses when the market turned and the recession took full hold. A key concern across Government is the scale of those job losses and the need to rebuild the sector along an innovative and sustainable growth path for the future, thereby contributing to the economic and social development of the country.

The report on construction was approved by the Forfás board last week and has just been presented to the Department. It identifies key areas for potential initiatives such as improving actions in the domestic market, driving further internationalisation, embedding competitiveness and innovation in the sector and ensuring the sector is skilled to deliver in emerging areas of opportunity. These recommendations will now be considered by the Department and in due course by Government. The report incorporates 30 actions.

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

Who will be in charge of delivering on those 30 actions? Will it be the Department alone or will it be the usual troika of the Departments of Jobs, Enterprise and Innovation, Education and Skills and Social Protection? How will we measure those actions?

We all know the decline that has taken place in the sector. The Minister for Social Protection has confirmed to me in reply to a parliamentary question that one in four of those on the live register - 109,000 people - formerly worked in construction. Of those, 53,000 had previously worked in a trade, so they had some element of skill. It might be a skill that needs to be updated for use in a new industry so we should focus on them. Plant and machinery operatives made up 10,000 of that number, with 1,500 working as architects, town planners or surveyors. These are high level qualifications and with some creativity they could be used in other sectors of the economy. Construction has fallen to an enormous extent, although there has been some job growth in the sector in the first months of this year, but these are still skilled people. There will be an upturn and there is no sense in our arriving back in the situation we had in the last upturn, where because of skills shortages, labour costs went through the roof.

How many of the 30 actions address re-skilling and updating skills and how many address growth in employment? Will the 30 actions serve to address the background of the cuts in the capital budget that directly impact on the sector?

John Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

There is a dedicated unit in Enterprise Ireland, the potential exporter division, that has responsibility for responding to the development or needs of companies promoting the export agenda and proactively promoting a range of services.

The survey acknowledges the sector has made a rapid and dramatic transition from unsustainable boom to bust and it is currently operating at a sub-optimal level. The sector employs 101,000 people directly, which is 5.5% of local employment, with an output of 6.4% of GNP. At the peak of the bubble in 2006, over 200,000 were employed in the sector, accounting for 12% of the workforce. There is a big difference between developers and construction companies. We are fortunate that we have some fine construction companies and while Britain continues to be key export market for construction sector clients, Enterprise Ireland is focusing on a number of key areas, target markets and regions for further growth.

Finally, the 30 actions will go to Government and no doubt a number of Departments will be involved in their delivery. Enterprise Ireland is doing a great job with the construction companies building all over the world and employing Irish people. This sector went through meltdown but it still accounts for 6% of GNP and we want to get it back on its feet. Currently, it employs 101,000.

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

Is there a timeframe for the publication of the action plan? Will the Minister of State give a commitment that he or another Minister or Minister of State will be accountable for the delivery of those plans.? There is no sense in dividing them across three Departments, because they will not be delivered; they will fall between the cracks.

This brings me back to a common theme of mine. The enterprise agenda is so dependent on skills that we need far greater integration between Departments. Can we have a commitment that someone will be responsible for the delivery of the 30 actions? The export side of the economy is strong and we support investment in it but the domestic economy also needs attention. There are some construction companies that will never leave their own county, never mind go abroad. They also deserve attention.

John Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

There might not have been any joined up thinking in the last Government but there is in this Government when it comes to job creation. The Taoiseach is driving the action plan for jobs. This report will not sit on a shelf; it will be driven forward.

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

By whom?

John Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

By the Government. This is an all-inclusive Government that will deliver on jobs, as we have already discussed today. I have no doubt the action plan will provide evidence of integrated, joined up thinking. Delivering on the 30 recommendations will be discussed in the Dáil and it will be clear that the Government is acting to offer every support to a critical sector of the economy. I am confident the success of Enterprise Ireland with those successful construction companies, not with the developers who brought the country to its knees, will continue. Those companies are doing a great job outside Ireland, building in every region of the world. Those are the companies we want to attract back into the country to grow employment.