Dáil debates

Wednesday, 13 May 2015

Ceisteanna - Questions - Priority Questions

Action Plan for Jobs

9:50 am

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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4. To ask the Minister for Jobs, Enterprise and Innovation his views on the disparity in job creation in spreading a balanced recovery to all regions, considering the Western Development Commission’s latest findings, that between 2012 and 2014, job numbers declined in 7 of the 14 sectors in the Western Region, and the Western Region performed worse than the rest of the State in all sectors; and if he will make a statement on the matter. [18468/15]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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The recent Western Development Commission report points out what we all know, that there is no sense of any kind of balanced recovery happening in the economy. Between 2012 and 2014, a period the Minister likes to quote as being a growth-powered time in the economy, employment declined in seven of the 14 sectors in the western region. Across a range of headings, the western region is way behind any kind of regional recovery. The Minister mentioned the Action Plan for Jobs: Regional initiative, APJ Regional, earlier, which sounds like a new airline or something like that. He might update us on where APJ Regional is and whether it is going to take off or crash land.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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The aim of the Action Plan for Jobs is to help enterprises to create employment in all regions of the country. Employment has increased nationally by almost 90,000 since the start of the action plan process in 2012. All regions have experienced job growth, but some regions have seen less than others. That is why the Government is placing an increased emphasis on supporting jobs growth in the regions.

It is clear that all regions have shown growth, in contrast to what Deputy Calleary has tried to say in his opening comments. In February, the Government announced details of the Action Plan for Jobs: Regional Initiative. It might sound like an airline but I can tell the Deputy that it will deliver on the ground, which is more important. It seeks to build on the existing strengths and assets of each region to maximise enterprise growth and job creation. This initiative will see action plans drawn up for eight regions at NUTS III level, supported by a package of up to €250 million in funding over the next five years.

The Western Development Commission’s report on the western region’s labour market will provide a valuable input into this work. Using data up to the first quarter of 2014, it showed growth in employment in the seven counties covered since the start of 2012 with a significant drop in unemployment. In particular it showed growth in employment in agriculture, professional, retail, hospitality, industry, construction and private services, but a decline in employment in public service, financial, ICT and transport. While overall jobs growth in these counties was lower than in the rest of the country, they had a stronger jobs experience in five sectors. The relative strength of these counties in manufacturing and weakness in ICT was observed. This is valuable input into the work of identifying areas of opportunity for these counties, which can be developed in the regional action plans for jobs.

As I have said, through the regional action plans for jobs we want to build on strengths and opportunities in the different regions, whether in existing or emerging sectors such as the creative industries or renewable energy, which are of particular interest to the western region. The Western Development Commission report points to the need for a more diversified spread of employment across sectors and that is what we are trying to achieve. Our objective is that six action plans including those for the Border, west and mid-west regions, which cover all the counties within the remit of the Western Development Commission, will be launched by the end of July.

During March and April, our Department and its agencies conducted a series of stakeholder engagements in the Border, west, and mid-west regions, which resulted in almost 700 suggestions for job creation being offered by participants. The Western Development Commission was involved in the stakeholder events. My Department is currently working through these suggestions and will soon be consulting further with stakeholders. It is quite important that 700----

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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We will come back to the Minister of State. Deputy Calleary has a supplementary question.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I did acknowledge that there was jobs growth between 2012 and 2014 in the western region. Jobs growth was 1.4% compared to national growth of 3.9%. The figures show that outward migration is still the main influence on declining unemployment. We are still being plagued with emigration. Total unemployment in the region declined by 28.4% although it is still over 40,000. However, this was mostly caused by a fall in the labour force. We have a higher share of self employment without paid employees, which accounts for 16.3% of jobs in the region and 11.4% in the rest of the State. We have a higher youth employment rate and lower labour force participation, again backing up the whole emigration side of things.

The Minister of State says that APJ Regional will be launched by the end of July. Will each plan have a budget or will each plan have to go through a tendering process for the overall pot? That delay the impact of the delivery of the plan even further.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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It is a competitive fund. What we are trying to do is work with all the agencies including the various Government agencies, chambers of commerce and other groups like the Western Development Commission. The most competitive plans with the best chance for success would show a good regional balance and co-operation. There is quite a high fund here - €250 million over five years is a reasonable amount of money to target into regional areas. While the regions can also qualify for other funds in other Departments, this fund is specifically intended to push jobs growth out into the regions. That will be achieved and the quality of the suggestions that are coming through is key. We are very impressed with what is coming through and all the forums have been quite successful.

To correct some of the Deputy's figures, since the start of the Action Plan for Jobs process, employment has increased by 8,900 in the midlands region, while the unemployment rate has fallen from 18.7% to 13.1%. Although the Deputy is right to say that some of this will be emigration, the key figure is that employment has increased by 8,900. In the western region, the number of jobs has increased by 4,000 people in employment and unemployment has fallen from 16.2% to 10.2%. There is some steady progress there although we will agree that a lot of work remains to be done.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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That progress has to be viewed in the context of Central Statistics Office projections that show that by 2031, which is not that long away, the population of the greater Dublin area will account for 65% of the total population of the State. This is why the regional action plans for jobs are so important and they have to be real. The allocation of a potential €7 million a year per plan over five years needs to try to resist this pressure and increase in costs that will develop in the greater Dublin area. We would abandon employment and the economy in much of the rest of the economy if we continued to pursue this path.

The urgency of APJ Regional, as it is going to be christened, is absolutely vital. I suspect the use of a tendering process means that there will be no money flowing into any of these job plans until 2016. That is very timely for Fine Gael and the other Government party. It is my feeling that this is only an election ploy designed to try to protect Government backbenchers ahead of the general election. Can the Minister of State give me an assurance that this is not the case?

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I am glad I can assure the Deputy that there will be money spent this year. We recognise the need for this. The Government has proved that the Action Plan for Jobs process has worked very successfully and has delivered nationally. That is acknowledged across the board. It brings all Departments and agencies together to focus on key areas of job creation. The regional version will try to copy that and make sure it works on the ground locally just as well.

It is a five year strategy and the money will be spent each year. The key is to get the applications in, which is happening. The meetings have worked on the ground. I do not know if the Deputy was at any of them but he certainly welcome to go to them, as is everyone. There are great initiatives and I am very impressed by some of the applications coming through. The idea is to get regions to concentrate on where they can best achieve excellence and create jobs. The figures show that there has been a reasonable spread of jobs over the last year or two through Enterprise Ireland and IDA outside of Dublin and the main cities. We are seeking to build on that through a focus on local initiatives.