Deirdre Clune (Fine Gael) | Oireachtas source

I welcome the Minister to the House. We have discussed the action plan for jobs on previous occasions. The plan has set targets. Quarterly and six-monthly reports have been issued which have been effective in measuring progress. There has been an emphasis in this House on the need to support small businesses. I welcome the changes such as the establishment of the local enterprise offices. These will include a one-stop shop to provide support for existing and new businesses. The expertise provided by local authorities and Enterprise Ireland will be important supports. Small and medium indigenous enterprises are the backbone of the economy. The action plan for jobs was established against the background of a significant loss of employment over the past years. The unemployment rate is currently 14.8%. The retail sector has suffered because people have less money in their pockets.

I note that the Digital Hub Development Agency focused on the online opportunities for Irish retailers. Consumers spend in the region of ¤4 billion on online purchases but 75% of that money goes out of the country. The retail sector is changing because people's shopping habits have changed. The online marketplace needs to be taken seriously by Irish retailers. The retail sector survives by changing to keep up with changing markets and consumer habits and needs. For example, a traditional shoe shop in Cork closed down because it was not offering the product or type of service that consumers wanted. By contrast, 20 yards down the street, a bright, modern shop is offering that shoes can be sent in the post within a week. Shoes can be ordered online and the shop will deliver them. That is the kind of service which customers expect.

Retail can do better and the online sector can be exploited by Irish businesses. The Digital Hub Development Agency report produced in the summer estimated that Irish people will spend ¤20 billion online each year, and most of that will be on sites outside the country. The message for retailers from that is that if they can develop some sort of Internet presence there is a massive opportunity for them to capitalise on the online shopping trend that will undoubtedly grow.

The gaming sector is another area identified in the action plan and one on which we had a report produced last week on the way it is expanding. There are now 83 companies in the gaming sector in Ireland; there were only 21 in 2009. There has been a surge in the creation of indigenous jobs and the development of new businesses in this area, and it is an industry that is worth approximately ¤2 billion. As the Minister said, it is about changing the emphasis in terms of the type and location of jobs and that is one sector, and the health sector, he mentioned.

As Senator White stated, the job opportunities and skills shortages in the IT area is an issue we have discussed in the enterprise committee of which we are both members. We just had a meeting with the representatives of the Higher Education Authority, the universities and the institutes of technology. We were discussing the ICT action plan and it was encouraging to hear that the conversion programme has expanded. We are in the middle of a course whereby graduates can convert to the ICT area and, based on the success of that programme, an expansion of the courses available was announced last week. We look forward to the results of that programme and all the indications are that those who graduate from that conversion course early next year will find employment. That is a welcome development.

The food and drink sector and the need to focus on the type of skills that are required in that industry have been discussed. A 2009 Forfás report by the expert group on future skills needs identified particular skills shortages and recommended that a joint initiative between the third level sector and industry be established, led by the Department of Agriculture, Food and the Marine. I understand from questions I asked that that has not happened yet but it may be something that will be very useful. The link between the third level sector and the needs of industry arises frequently. They are represented on the expert group on future skills needs but there appears to be a lack of engagement at the coalface.

An issue that arises frequently in our committee is that employers and industry are not getting the skills they need. That is not taking from the fact that education must be broader than pure skills but when we have an unemployment level of 14.8%, skills that are directly required by industry should be developed and would be very welcome.

In terms of the construction sector there are opportunities in the green energy area in refurbishing homes. There are many ageing properties in the country and there is an untapped potential in that respect. The construction sector is probably down at about 5% now when any economy should have a construction sector of the order of 9% to 10% but there is a potential in that area. That raises the old chestnut about refurbishing and insulating old homes and so on but there is great potential in that area and we should continue to focus on it.

The area of languages should be examined. There are job opportunities in that area but we do not have the necessary skills.

I mentioned this morning on radio that the next EU budget will contain a substantial package for the Erasmus programme. We need to leverage that money to ensure our students acquire the necessary skills.

The action plan on jobs was welcome, especially the milestones it contains against which we can measure progress. I look forward to engaging with the Minister next year.