Dáil debates

Wednesday, 13 May 2015

10:30 am

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

10. To ask the Minister for Jobs, Enterprise and Innovation his plans to create more manufacturing jobs; and if he will make a statement on the matter. [18349/15]

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

Will the Minister set out the Government's plan to achieve 40,000 new jobs in the manufacturing sector? The sector has been earmarked for 40,000 new jobs over the next five and a half years. Will he give more information on this target and will he comment on the proposed loss of 160 jobs at Cadbury's? These are well-paid jobs and are much needed in the area.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The strategy for the manufacturing sector, which was commissioned and which was published in April 2013, identified that an additional 20,000 jobs could be created in the sector by 2016. A complementary report on the skills needs for the sector, which was commissioned at the same time, identified a series of actions to enhance skills in the sector.

Arising from the manufacturing strategy and the skills report, a range of initiatives are in hand by relevant agencies to achieve the 2016 target, with key actions from both reports having been incorporated into the Action Plans for Jobs for 2013, 2014 and 2015. Developing manufacturing was adopted as a disruptive reform and one of the key actions in it is the delivery of a national step change initiative to strengthen Ireland’s manufacturing base. In addition, a wide range of training and educational initiatives are underway by the relevant providers, such as Skillnets. A new key action which has been included in the 2015 action plan is a project to assess the business case for the possible establishment of an innovative manufacturing facility which would enhance Ireland’s manufacturing capability.

Both IDA Ireland and Enterprise Ireland are working with both existing and prospective new client companies in the manufacturing sector, with consequent job creation and retention. New opportunities are emerging in manufacturing as a consequence of technological change in 3D printing, robotics and additive manufacturing and also in the context of the development of smart products and the Internet of things. These opportunities are being addressed as part of the strategic plans of my agencies, Enterprise Ireland, IDA and Science Foundation Ireland. We were at a launch at the South East Applied Materials, SEAM, technology gateway in Waterford Institute of Technology last Thursday, where there has been an investment of more than €2 million in a metal 3D printer. This will allow for the manufacturing and development of 3D printing. The work and research that is going on is fascinating. Many engineering companies will be able to use this resource and will be able to work with our researchers to develop concepts, jobs and projects for the future. This shows great potential and hope.

The latest employment data for the sector from the CSO’s quarterly national household survey shows that direct employment in the manufacturing sector stood at 218,500 in December 2014. This is an increase of 12,800 from the level at the time the strategy was compiled, which represents a very heartening outcome to date. When account is taken of indirect employment, the sector therefore now supports a total of 437,000 jobs and the trend is quite positive.

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for his response. There is an international drive relating to technology changes which is changing the manufacturing sector globally. We see the effect on Cadbury's as well in what is going on there. Will the Minister of State work closely with the Minister for Jobs, Enterprise and Innovation in relation to Mondelez to see what can be done? I know there are plans to introduce new technologies but what further supports can be given in that particular case to help the workers who face an uncertain future? A national step change in manufacturing initiative was launched in 2014. Will the Minister provide an itemised breakdown of the jobs target in manufacturing for each year between now and the end of 2020? I know that 40,000 jobs are earmarked for the sector.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I wish to clarify that the strategy runs to 2016 and the plan is to create 20,000 jobs in the sector over the term of this Government. We have already achieved more than 13,000 direct jobs in manufacturing. This figure does not account for the associated indirect jobs. The plan is to create the extra 7,000 jobs over the next 12 to 18 months to reach that target. This sector can deliver a lot more. Deputy Flanagan mentioned 2020. There is no doubt about it but part of my work includes working in the research and innovation sector. We are dealing with our research ecosystem. Over the lifetime of this Government, we have the prioritisation agenda with regards to research funding. To be fair this was the case in the couple of previous years with other Governments. The sole development of this research ecosystem is leading to great opportunity in all sectors but especially the manufacturing sector. All the work that is going on in that sector, in particular the innovation end of it, will help with cost competitiveness. We need to ensure that our companies can compete on cost, which will help protect jobs.

With the development of new technologies and ideas, for example, metal 3D printing, there is great scope for creating new jobs and getting ahead of the market in some sectors. We are confident, but it is a question of focusing our agencies, which is what the Action Plan for Jobs will do. The manufacturing strategy tries to bring the agencies together.

10:40 am

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State for his response and look forward to jobs being created in this regard. Quality jobs are required. Will there be further link-ups with universities on emerging technologies in order to improve processes?

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The key is to have that link-up. As a Minister of State for seven or eight months, I have spent a great deal of time working with universities, institutes of technology and other research centres to ensure that there is a link-up. I have a leg in the Departments of Education and Skills and Jobs, Enterprise and Innovation. I am trying to drive that link-up and agenda. That is working, and the focus across Departments will deliver. More than €1 billion is being spent on research. We are trying to get results out of that investment in terms of jobs, but also in terms of solutions for engineering and society.

Later this morning, I will launch the national employer survey, under which we will engage with employers to determine whether we are producing the skills and graduates they need to grow jobs, exports and sales. We are responding across a range of Departments and it is important that we continue this collaboration.

The Deputy mentioned Cadbury. In the previous question, the Minister, Deputy Bruton, discussed that issue in detail. Perhaps the Deputy might read the record. The Minister has put a great deal of effort into arranging for these questions to be taken together.