Dáil debates

Thursday, 13 March 2014

10:30 am

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael)
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9. To ask the Minister for Jobs, Enterprise and Innovation the steps that have been taken to ensure the numerous positive measures from the 2012 and 2013 action plans for jobs, many of which have proven their effectiveness with the recent positive employment figures, are continuing to be implemented; the evaluation process which monitors the progress of the action plans; and if he will make a statement on the matter. [12114/14]

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael)
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I wish to ask the Minister what steps have been taken to ensure that as many positive measures from the 2012 and 2013 action plans for jobs continue to be implemented. In addition, what steps are being taken to monitor the actions listed?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Since Action Plan for Jobs was introduced in 2012, the Government has implemented over 500 actions to support job creation across all Government Departments and a significant number of State agencies. The aim of the action plan is to create a supportive operating environment for businesses in order to allow employment to grow across all sectors.

The 2012 action plan contained 270 actions and 92% of these were delivered by the end of that year. The 2013 plan contained 333 actions and had a 90% implementation rate. Those commitments which were not implemented on schedule in 2012 and 2013 were carried forward to the subsequent year’s action plan or replaced with more targeted measures.

A key strength of the action plan process is its cumulative impact. Each year’s plan builds on measures which have been initiated in the previous year. The 2014 plan was launched on 27 February and continues to build on many of the actions contained in the 2012 and 2013 plans. Successful initiatives are mainstreamed or extended where their performance is positive. It contains 385 actions for delivery across all Departments and 46 agencies, including measures to continue developing six of the disruptive reforms and many of the sectoral initiatives launched in 2012 and 2013.

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael)
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Go raibh maith agat, a Aire. I acknowledge the success of the action plan, whose format is an innovative inter-departmental and inter-agency initiative. This novel approach is working despite some detractors. Some 270 actions were initiated in 2012 and it is important for the Department to continuously monitor them to ensure they are followed through to the fullest extent. It is important to move away from the culture of the past, although we must acknowledge that this new approach can take time to be implemented and become fully embedded. The Department should continue to monitor the performance of the action plans. Is the Minister planning to review the 2012 action plan to ensure that all those actions are still being implemented to the fullest extent?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I fully agree with the Deputy that monitoring is vital, although it is not done by my Department but by a monitoring committee, including the Taoiseach and the Tánaiste. It is a whole-of-Government approach to monitoring. As they say in the United States, biting with the president's teeth is very important in delivering performance across all the silos.

This year we have had discussions with the OECD to see how we can better develop this process and ensure that not only are we delivering it, but are also getting good outcomes. As we discussed at the Committee on Jobs, Enterprise and Innovation, we will be examining a wider range of outcome indicators as well as the headlines one of jobs and rankings in terms of a good place to do business. We are seeking to develop that so that across the sub-sectors and various elements of the plan we are seen to be making progress. That becomes a feedback loop to inform better decisions.

If anything was missed in 2012 because we could not achieve it, we sought to discover why. We thus changed the target. Not everything achieves all that is hoped for. If it did we would be living in a strange world. We therefore modify targets based on experience, but we always seek to stretch the targets.

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael)
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It is important to acknowledge the fact that the OECD has cited the jobs action plan as a positive model for other countries.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I apologise for interrupting the Fine Gael Parliamentary Party meeting here, but one of the commitments in the jobs action plan was about small and medium enterprise finance. We have had this discussion already. Last year, the pillar banks, AIB and Bank of Ireland, were supposed to loan €2 billion each to SMEs - that is, a total of €4 billion. Yet the Central Bank report, which has been published since the Committee on Jobs, Enterprise and Innovation last met, shows that only €1.9 billion of new lending was done by all banks to the SME sector. In addition, the ISME survey showed that 50% of companies have been turned down for loans.

In the context of monitoring the jobs action plan, has the Minister made any inquiries as to the difference between the €4 billion of new lending that was supposed to go into SMEs and the €1.9 billion of new lending noted by the Central Bank? We continue to have a major problem concerning finance for SMEs.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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This continues to be a central concern for me, as it does also for the Deputy. I monitor the new lending figures by sector as well as the refusal rates which thankfully have shown some signs of improvement. I also monitor the decisions of the Companies Registration Office and the picture remains one whereby the banks have not properly adjusted to their role in supporting SMEs. They still have a long way to go in this area. We continue to press them and I meet with them regularly. We seek to drive up the use of alternative funding mechanisms, as well as seeing them build up sectoral expertise so they can have a genuine relationship with management sectors in a growth phase. I agree with the Deputy that we need to do better in this area and we will continue to press for that.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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Question No. 10 is in the name of Deputy Derek Nolan but he is not present in the Chamber, so we will go on to Question No. 12.

Question No. 10 replied to with Written Answers.

Question No. 11 answered with Question No. 8.