Deirdre Clune (Fine Gael)

I thank the Minister for his brief outline of what he can do because there are 270 elements to the Action Plan for Jobs 2012, which is very welcome. The most important element of the plan is the tracking mechanism for the end of quarter results. We will be able to judge the performance in each quarter and the Minister will report on how the recommendations have been implemented. This is difference, which is very welcome.

I too wish to comment on the credit lines offered by banks to small and medium enterprises. I too read a report of the conference organised by the Central Bank, which was reported in Saturday's newspapers. The Central Bank Governor, Professor Patrick Honohan, had outlined the serious lack of credit for small businesses and said that the lack of bank credit is likely to be a more serious drag on our recovery than it might otherwise be. He also pointed out that it is having an effect on competitiveness and this is borne out by how Irish small and medium sized businesses are competing vis-À-vis their European counterparts.

This issue keeps coming up, it was also included in Mr. John Trethowan's report. The Minister of State at the Department of Jobs, Enterprise and Innovation, Deputy John Perry was in the Seanad recently and he is meeting individuals from the business community around the country to discuss issues with them. The Minister was in Cork last weekend to meet groups from the business community who raised the issue of funding for small and medium enterprises and the way the banks are behaving to businesses that have a long track record and would be viable. I accept that not every business can be viable in these straitened times but some businesses are going to the wall and having to lay off staff because they are not getting even low levels of support from the banks. This remains a critical issue.

The headline figure of 100,000 jobs to be created by the Action Plan for Jobs 2012 is broken down in the report, which outlines where those jobs can be targeted. The Minister mentioned the one-for-one job where each job created by the IDA or Enterprise Ireland leads to the creation of a job in the local economy. We see evidence of that across the country. I see it in my own area when I look at the number of pharmaceutical companies, with eight of the top ten pharmaceutical companies in the world located in and around the Cork area. Pfizer in Ringaskiddy has generated a great amount of employment in the nearby town of Carrigaline. A myriad of supporting services surround that one industry such as crèches, food, clothing and recruitment. One can really see one-for-one job creation reflected in the local community. The recent announcement that PayPal will create jobs in Dundalk has also had a huge impact. Last week, Eli Lilly announced it would create 200 new jobs in Cork, which is a statement of its confidence in the economy and willingness to re-invest to raise its activities to another level. Such confidence is reflected throughout the country.

We do not step back often enough to acknowledge the work of IDA Ireland. Last year, it created more jobs than were lost. Some people may criticise that and say we are at a standstill but that is a noteworthy figure when one considers the economic global climate. Recently, Enterprise Ireland appeared before the Oireachtas Joint Committee on Jobs, Social Protection and Education to outline its work. The jobs plan contains an initiative for IDA Ireland and Enterprise Ireland to work together, particularly focusing on SMEs. They will ensure SMEs can piggy-back on foreign direct investment by providing such services as facilitating and mentoring them when procuring contracts from foreign companies investing here. The synergy between the two bodies is important and I am glad the plan states that we will establish a tangible committee for them to work together.

The proposal to abolish county enterprise boards and develop local enterprise offices, LEOs, in local authorities is a welcome and positive step and one that will benefit local authorities and enterprises. Small businesses will have a "one-stop-shop" to go to for information on regulatory matters. Enterprise Ireland will feed into the LEOs so people can benefit from its expertise. That type of connection was not previously provided by the county enterprise boards and is a welcome move. We are not going to lose expertise; rather, small micro-enterprises will be able tap into Enterprise Ireland and its expertise and extensive knowledge of the sector.

Unfortunately my time is up but perhaps I can return to the subject again during the questions and answer session. I compliment the Minister on the plan and on recognising the contribution that small and medium enterprises make to our communities. If SMEs can be facilitated to create one extra job, we will go a long way to bridging the enormous gap between employment and unemployment. I welcome the initiative.

Regarding research and prioritisation, one hears a lot of criticism about funding for research. People question whether money has been spent wisely and if the taxpayer got value for money. Last week, Jim O'Hara launched the report of the research prioritisation steering group which identified 14 areas for investment. The Government, under the chairmanship of the Minister of State, Deputy Sherlock, will ensure the funding is spent as intended. We now have certainty about the sector because we can see how valuable the 14 areas will be to the local economy. I thank the Acting Chairman for the time granted and look forward to contributing again.