Jillian van Turnhout (Independent)
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I understand that, by agreement, Senator Cullinane's matter is to be taken first.

David Cullinane (Sinn Fein)
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I warmly welcome the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, and I thank him for the work he is doing in respect of the south east. He chairs a forum which brings together many of the key stakeholders in the region with a view to creating jobs and promoting economic development. I am aware that there may be a very positive announcement in respect of Waterford tomorrow and I am sure the Minister will be present for that. I take this opportunity to welcome said announcement in advance. Any jobs which can be created in Waterford and the south east are welcome, particularly in light of the very high levels of unemployment which obtain there.

The Minister will be aware that the unemployment crisis in the south east must be managed and addressed. The rate of unemployment across the region is 19.1%, which is 25% above the national average. In Waterford city, the rate of unemployment stands at 25.1%. I am sure the Minister will agree that this is not just unacceptable but that it is dangerous to have a level of unemployment of that magnitude in a city, particularly one which is supposed to be a gateway city and the driver of economic development and activity in the south east.

What is required for the south east is a coherent long-term strategy that will align all of the relevant stakeholders and agencies. The key ingredient in this regard is the establishment of a technological university. I want there to be a university for the south east which contemplates the needs of the region. There is no point in creating a university just for the sake of doing so or in merely changing the name above the door. We need a university which is geared towards enterprise, which contemplates the needs of the region and which is for the people of the region. In the context of research and development, such a university must be capable of taking advantage of the region's key strengths.

Those strengths are health, life sciences and medical devices, financial and internationally traded services, tourism, arts and culture, agribusiness, food production and technology, engineering, telecommunications, software development and digital media, and the biotechnology and green economy sector. A strategy that aligns these sectors of potential growth for the south east is necessary. The crucial ingredient is the enterprise agencies. They must play a leading role. Their policies must be aligned with what the Minister is trying to do for the region.

We must join up national policy with local and regional policy and ensure those with responsibility for delivering economic development, and job creation specifically, deliver for the region in real terms. There may be a positive announcement tomorrow, but that will only be a small start to what is necessary for the region.

The region's educational attainment levels need to improve. This issue does not directly relate to the Minister's portfolio, but it is crucial to job creation. This is particularly the case of the linkages between secondary school and third and fourth levels. It is also a matter of fostering a culture of upskilling and training in businesses. The south east presents the potential for pilot projects in secondary schools, for example, fostering innovation, creativity, thinking outside the box and entrepreneurship. This approach will be key to the region's success. Long-term solutions are as important as short-term ones, but short-term interventions are required, for example, a university, the Rosslare bypass for Wexford, an expansion of Waterford Airport's runway and the use of NAMA assets for town and city centre regeneration projects. A great amount of work needs to be done.

I am seeking an update from the Minister on what progress has been made since he launched his Forfás plan, the initiatives in which he is involved and whether they have made a difference to Waterford and the south east.

Richard Bruton (Dublin North Central, Fine Gael)
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I thank the Senator for raising this matter. He has a keen interest in the south east, particularly Waterford. As he stated, unemployment levels in the region have been high. In the aftermath of the closure of TalkTalk, I conducted an analysis of the region and confirmed the Senator's remarks. It has embedded structural problems. The Celtic tiger, which brought a great deal of multinational investment, did not have the same impact in the south east as it did in other regions. Nor does it have the strong clusters of industry that have been a feature of the hubs of growth in successful sectors.

There will be no big bang solution. A long-term strategy needs to be developed. The action plan I have put in place is focused practically and has brought the key players together, which has been beneficial in itself. They have set out a range of initiatives that various agencies are pursuing and that will serve to improve Waterford's positioning as a region.

Significant progress has been made. The agencies have delivered on their short-term objectives, for example, special enterprise start-up initiatives aimed at getting people with ideas to develop them. Eishtec has been extraordinarily successful and has expanded to 600 employees in the south east. In 2011, it was merely a high potential Enterprise Ireland start-up. Approximately 750 jobs from the Enterprise Ireland portfolio have emerged since the action plan was initiated.

We need a stronger strategy to develop a successful indigenous engine of growth in the south east. I do not disagree that the culture of training within industry and building a stronger educational infrastructure will play a part. Waterford Institute of Technology, WIT, has been remarkably successful. It has incubated some high quality innovation in the telecommunications field and spawned many successful start-ups. Like the Senator, I see regional opportunities in the fields of life sciences, clean tech and food. The agencies are working together to develop these sectors as areas of potential growth.

Tomorrow morning, I will convene a meeting of the south east action plan group to review the progress being made. The IDA has sustained its focus on this area. The number of site visits increased from 16 in 2010 to nearly 50 last year. It is a question of building on the co-operation that exists in the region. We need to build on its many competitive strengths, although some of them need to be developed. I can say with some degree of satisfaction that our focus on the south east is yielding results. It is welcome that the agencies are pursuing their common purpose in a more concerted fashion. This type of collaboration is how successful regional strategies are built. They cannot be top-down, but bottom-up.

While I am hopeful, employment numbers in the south east continue to pose a difficulty. They justify the focus that I assure the Deputy I will maintain in the coming years.

David Cullinane (Sinn Fein)
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There is a clear focus on the region. Much of it comes from within the region or is driven by the Minister's Department. I acknowledge the key role played by the Minister, but there is a sense that the enterprise agencies could do more. For example, the availability of property solutions has been cited as an impediment. If so, we should consider how to develop property solutions across the region.

Today, I received figures to the effect that only one application was made from Waterford to the micro-enterprise fund. The company did not receive anything. The fund of ¤40 million provides start-up capital and supports for the micro-business sector. I cannot understand why only one application was made in Waterford, which has a high level of unemployment. Will the Minister investigate this matter? Are companies not coming forward, are they not being encouraged or, as mentioned at some enterprise boards meetings, are there problems with the scheme, for example, interest rates or bureaucratic difficulties? Whatever the problems may be, we need to flag and fix them. If money has been made available, the Minister will agree that it should be provided to those who need it in order that jobs can be created.

Richard Bruton (Dublin North Central, Fine Gael)
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Property solutions are an issue. The IDA has applied for planning permission to build out the available property options in the region. This forms part of the strategy being pursued.

The Senator also raised the issue of micro-finance. It is a demand-led scheme and depends on people coming forward. We are administering it through the county enterprise boards, CEBs, which are soon to become local enterprise offices, LEOs. They are the first-stop shop. People with ideas can get help from CEBs with their business plans and apply to the micro-finance board for approval. We would be doing no one any favour by supporting plans that are not viable. It is important that a plan be tested before it is presented.

The scheme is in its infancy and we have yet to see the scope of micro-finance.

In other jurisdictions it has not been a significant element of the overall funding environment and I draw the Senator's attention to other initiatives, such as the competitive start fund, a micro-finance fund run by Enterprise Ireland. There are several high-potential start-ups and we are trying to develop a range of processes to meet the different needs of start-up companies. We will review the scheme after it has been in operation for a certain period to see if there are weaknesses either in local promotion or glitches in access. If the Senator hears of a bad experience, he should bring it to my attention, as we are only too pleased to try to improve it as we go along.