Dáil debates

Tuesday, 25 November 2014

3:15 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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104. To ask the Minister for Jobs, Enterprise and Innovation the extent to which job creation targets continue to be met throughout the services sector, indigenously and through foreign direct investment; the degree to which innovation has played a part in such job creation; if EU assistance has been available to individual firms; his expectations in this regard for the future; and if he will make a statement on the matter. [44354/14]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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105. To ask the Minister for Jobs, Enterprise and Innovation the extent to which job creation targets continue to be met throughout the manufacturing sector, indigenously and through foreign direct investment; the degree to which innovation has played a part in such job creation; if EU assistance has been available to individual firms; his expectations in this regard for the future; and if he will make a statement on the matter. [44353/14]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Both questions relate to the extent to which job creation targets are being achieved, through foreign direct investment and indigenously, in the manufacturing and service sectors.

3:25 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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The Deputy is very obliging to put the two questions together. I will try to merge my two answers.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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I always want to be helpful.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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As the Deputy knows, the target set out in the Action Plan for Jobs is to create 100,000 extra jobs by 2016. No individual targets are set, but I think the services sector would already employ about 76% of the total employment in the country. Naturally, therefore, that is a major area we will be operating in. In the manufacturing sector, there are key areas set out under food, biopharmaceuticals and medical devices where we are really trying to drive that agenda. There is a manufacturing initiative and forum as well to try to have a step-change there so we are focusing on them.

In the services sector, the potential would be in tourism, software services, business services and retail. These have been identified and we put structures in place to try to assist in their development as well. It is clear that extra jobs in some of these areas both in manufacturing and in services have made a major contribution to the overall increase of 68,700 extra people at work since the Action Plan for Jobs was launched.

It is about trying to direct the supports to the key areas. As I said earlier, the Action Plan for Jobs is trying to bring in every Department. The Departments of Agriculture, Food and the Marine, Health, and Education and Skills all have their roles because we have to get back to creating long-term sustainable enterprise-driven jobs in services, manufacturing and medical devices. I was at a presentation on the pharmaceutical area this morning. There are key areas involved here.

The other part of the Deputy's question related to how the innovation agenda forms part of that. I would very clearly say, having spent the past three or four months in this job as Minister of State with responsibility for innovation, skills and research, that the innovation agenda is probably driving about two thirds of the jobs growth. In many of the companies I visit I can see that the money they are investing in research, development and innovation is leading on to job creation. That has a major role to play. In the past two or three years the Government has targeted and prioritised funding on certain areas of the research and development agenda, trying to align taxpayers' money with industry in areas where Ireland can compete, excel and be a world leader. That is paying off and is leading on to jobs.

Deputy Coppinger wants the Government to create all the jobs. We do not believe the role of the Government is to create all the jobs. However, we should create the environment in which jobs can be created. That involves using taxpayers' money to provide supports for all sides of the business in all sectors. Two weeks ago at a science debate I listened to Deputy Coppinger's colleague saying that we should supply all the money for research and development. I have asked the same question of her colleague, Deputy Paul Murphy, and I ask it of her. They do not want us to collect any money in any form of taxes or water charges and yet they want the Government to spend money in every area and be the only people spending money. We believe that to drive the economy we need to work with industry and the Action Plan for Jobs is about providing State supports and working together, with industry to target money in key areas which will lead on to job creation.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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I thank the Minister of State for his comprehensive reply. How does the Minister of State respond to the claim from some quarters that the 76,000 jobs already created are not real jobs at all - that they are only part-time jobs and low-paid jobs? To what extent are the manufacturing or service sectors more appropriate to attract innovation-backed funding from the European institutions?

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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A key there is the Horizon 2020 agenda. The current research framework in Europe has a budget of €80 billion which we can draw down and target. The research community, the ecosystem, in Ireland has developed considerably in recent years and we are in a position to target about €1.25 billion of that. Quite a lot of that money will be targeted through the services industry but also through the manufacturing sector. The best way we can win that money is through collaboration with our higher education institutes along with industry, coming together through research centres and through SFI to drive that agenda, putting teams of people together to make proposals that will win in Europe.

In the first year of Horizon 2020 we have been very successful. Ireland is leading the way and we are punching above our weight when it comes to winning funding from that budget and I think we will do well in that regard. However, the Deputy is right. The services sector is key for employment. For example, among Irish-owned enterprises, employment in services increased by 5,188 between over the past three years. In IDA Ireland enterprises, employment in services increased by 9,730.

The Deputy asked about whether they were part-time or full-time jobs. They are full-time jobs; they are real jobs. One can look at the tax coming in from those jobs so they are not pretend jobs, part-time jobs or intern jobs. The majority are actually full-time new jobs. When we say 70,000, that figure is above the net losses as well. It is a great improvement.

3 o’clock

They are not the figures though.

3:35 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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In regard to criticism to the effect that indigenous industry receives no support and all the support goes towards the multinational corporations, will the Minister of State clarify the position?

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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No. The mix-up here - it was mentioned earlier - is that key is that much of the funding delivered through our State agencies must be for export-led products. We are not in a position to grant aid companies to compete with each other on the high streets of the domestic market. The emphasis is to target money, and especially financial supports, through Enterprise Ireland, the IDA and so on at companies that export. There is access to training, advice, business courses for all other businesses as well but the majority of grant aid would be for companies that export, and rightly so. We will only improve the financial position of the country if we export and that is what we are trying to do. An export agenda is driving that goal and we will continue to fund that as well. I think the Deputy would agree with me on that.

I was heckled by the Deputy opposite who said the jobs are not there but the figures are. If she looks at the CSO figures of jobs created, she will get information on what jobs are full-time and part-time. All the information she would want is there.

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party)
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Give us the figures now.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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If the Deputy took the time to look at them she would see that information. That office is independent of Government and the figures are there, having been analysed independently. There is job creation. The Deputy might not like it but it is happening.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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Thank you, Minister of State. I must move on to the next question.