Paddy Burke (Fine Gael)
Link to this: Individually | In context | Oireachtas source

I welcome the Minister of State, Deputy English.

Trevor Ó Clochartaigh (Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Cuirim fáilte roimh an Aire Stáit. I am raising this matter in light of the recently published and very good report of the Western Development Commission, WDC, on trends in agency-assisted employment in the western region. The employment created by businesses that receive support from one of the main enterprise agencies - which are usually export-oriented in outlook - is termed "agency-assisted employment". The report of the WDC presents data on these businesses in the western region for the period 2004 to 2013 in the interests of providing useful insights regarding enterprise, job creation and regional development policy. The report indicates that in 2013 there were 49,217 permanent, full-time jobs and 7,405 temporary or part-time jobs in agency-assisted companies in the western region, approximately 16% of all such jobs in Ireland. The report also indicates that in 2012 growth in the region was measured at only 0.13%. This compares with a figure of 3.2% in the remainder of the State in the same period. The rate relating to assisted jobs, as a percentage of the region’s total employment, stands at 18.2%, which is below the figure of 19.1% which obtains in the remainder of the State. Of the five sectors of employment, modern manufacturing is the region’s largest, followed by traditional manufacturing, information and communications, and agrifood. Business, financial and other services is the smallest sector. In the western region, 62.1% of permanent assisted jobs are concentrated in the top two sectors, compared with just 49.2% in the remainder of the State. This highlights the reliance on these key sectors and the need for increased diversity in the region’s assisted sector.

Of the seven western counties, Sligo, Leitrim and Clare experienced declines in total assisted employment in 2013 whereas the other four all experienced growth. County Roscommon enjoyed the best level of performance, followed, in descending order, by Mayo, Donegal and Galway. At 38.1%, Donegal has the lowest foreign ownership share in the region. In the national context, western counties tend to have relatively high shares of foreign ownership, which is the legacy of foreign direct investment, FDI, across the region over a period. Agrifood is the second largest sector, accounting for just over a quarter of assisted employment in the large rural counties of Mayo, Donegal and Roscommon. In a national context, however, the sector does not play a particularly big role in western counties as the region's agriculture sector is not as strong as those which obtain in the south west and the south east. Roscommon and Leitrim have not benefited as much from recent jobs growth as other counties. One of the clearest patterns identified in the report is the extent to which assisted employment plays a larger role in cities.

Of the seven western counties, Sligo and Clare incurred greater job losses than gains between 2012 and 2013, leading to a net decline in both in assisted permanent full-time employment.

In Sligo's case, job losses were 162% of job gains in 2013. For total assisted employment, permanent full-time and temporary part-time, the western region experienced a 6% decline between 2004 and 2013. In contrast, the rest of the State had 4% growth in the same period.

Among the western counties, Galway and Mayo were the only counties with higher total assisted employment in 2013 than ten years earlier, Galway growing by 5.3% and Mayo by 1%, Leitrim suffered the largest decline of 43.5% followed by Roscommon, Donegal, Clare and Sligo having similar performances to each other declining by 10%. Overall, the region had 2.8% growth, which is below the 3.9% in the rest of the State. One of the common patterns is a high concentration of employment in the two largest sectors. Modern manufacturing is the largest assisted employment sector in the western region. However, in a national context the agrifood sector does not play a particularly large role in western counties. We also have figures for Galway and other areas. It is quite obvious that any upturn in the economy, apart from Galway city, is not being felt by western and rural regions. What strategy has the Government in place to reverse these trends?

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

I welcome the opportunity to discuss this report and what is being done in the overall area. We must bear in mind that the report covers some of the growth and boom years from 2004 to 2013, thus highlighting many issues in the regions, but it stops short of including this year when we are seeing much growth throughout the country.

Significant progress has been made since 2011 in restructuring and transforming Ireland's economy and in reforming the way we support business and job creation in Ireland. I am pleased to report that this growth in employment is now in evidence across all sectors of the economy and across all regions. It is clear from the data for the past two or three quarters that there is a regional spread. There would have been a concern a year ago or even less that much of the new growth was in Leinster and certainly in Dublin. It is clear from the past two or three quarterly reports that it is now pushing out to all regions and we must ensure we build on that. The analysis by the Western Development Commission on Trends in Agency Assisted Employment in the Western Region for the period 2004 to 2013 highlights some of the progress achieved in this regard across the western region.

I am also pleased to record that the enterprise development agencies, Enterprise Ireland and IDA Ireland, in their end-of-year statements for 2014 have highlighted the continuing trend of growth in employment across all regions. The full results by regions will be published by my Department in the coming weeks and hopefully that will provide us with more data on which we can work. We are working hard to sustain that level of jobs growth and recovery in the coming year, in particular to sustain the growth in modem manufacturing and internationally traded services recorded in the western region in recent years, which as the Senator said is an issue in the western region and we need to build on that.

The Action Plan for Jobs is at the heart of the Government's approach to growing jobs in the economy through creating the best environment for enterprises to start, grow, scale and create employment. The annual action plans are developed on a co-ordinated basis across Government by my Department, and we have established a process of quarterly monitoring and reporting in detail on the implementation of measures in the Action Plan for Jobs to support the transformation of the economy, with a success rate of over 90%.

Now in its fourth year, the Action Plan for Jobs process continues to have an impact. Almost 80,000 have been created in the private sector during the past three action plans for jobs. The next action plan, which is due in the next couple of weeks, will set more targets covering all regions and involve all the agencies. This year's plan comes in the context of improving economic and employment data. The rate of unemployment has declined from a peak of 15.1% at the start of 2012 to 10.6% at the end of 2014. Data for the regions mentioned show that the unemployment rates are coming down but we want to get the rate down much more quickly. We also recognise that it is a work in progress.

One of the factors that has made the Action Plan for Jobs process such a success has been the input, support and partnership with business and others in developing and progressing the plans for all the regions. We have consulted extensively in recent months with all Departments and with other stakeholders and organisations. The next action plan should help the spread of job creation into the regions.

In terms of regional economic development and ensuring every region can fulfil its potential, we will build on the progress made in 2014 in establishing a process to design and implement regional enterprise strategies. These regional enterprise strategies are akin to action plans for jobs for every region. The formulation of regional enterprise strategies will enable us to identify the sustainable competitive strengths of each region, which have also been highlighted in the report, and to better integrate the efforts of the enterprise development agencies and other regional stakeholders in supporting enterprise growth and jobs in areas of potential. We hope to publish these strategies by mid-year.

I believe that for every region to achieve its potential, a partnership approach is essential among all the key stakeholders, public and private. Each of the regional enterprise strategies will set out the investment and job creation targets being set for the enterprise development agencies for the regions for the coming five years. In addition to setting out the regional commitments by the development agencies and the local enterprise offices, we will also seek to encompass the supporting actions of the full range of stakeholders, including local authorities, education and training providers and representative bodies, to the common goal of enterprise, growth and jobs in the regions to get to the target of full employment by 2018.

I think the Action Plan for Jobs concept has worked because it has focused people's minds across all agencies and Departments. If we can mirror that plan at a regional level to bring all the various agencies together, including the chambers of commerce and organisations, to focus their minds with a list of actions, that will benefit each region and will concentrate on the strengths and weaknesses of each region. I am conscious that the regions covered by this report will not necessarily match up with the regions which we are trying to cover as an enterprise. There will be three or four regional strategies. It is important that we try, as locally as possible, to target certain areas. This has worked in certain places, such as in Waterford, and we are building on it. The idea is right and with some luck it should address some of the Senator's concerns and, hopefully, there will be involvement by all stakeholders.

Trevor Ó Clochartaigh (Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Based on what the Minister of State has said, we are going to get an outline of a strategy in the coming months which probably will not see much action before the end of the life of the Government. Would the Minister of State agree that the Government is failing our region given that we have fallen so far behind the other regions, resulting in rural decline and a lower rate of employment than any of the other regions and we far too dependent on foreign direct investment such that the indigenous sector has not seen any growth worth talking about? Therefore, the strategy of the Government has failed the western region in this regard.

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

I would not say the Government has failed. The issue in recent years has been to get jobs into this country and to create new jobs. It is fair to say that much of the original growth and new jobs happened in the east and in some of the larger cities, such as Cork, Galway and Dublin. Our first aim is to try to stabilise that position and to win new jobs and then to try to address the regional imbalance. Many of the regions need extra attention. That is the reason we are responding with specific strategies for each region. The drop in unemployment across the board is about 4%. That is common in the western region. It is coming from a higher base but the percentage drop is the same.

Trevor Ó Clochartaigh (Sinn Fein)
Link to this: Individually | In context | Oireachtas source

It is just emigration.

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

It is not.

Trevor Ó Clochartaigh (Sinn Fein)
Link to this: Individually | In context | Oireachtas source

It does not stand up.

Paddy Burke (Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Minister of State to continue, without interruption.

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

We always say the levels on the unemployment register have dropped due to a combination of reasons, such as people leaving the country, moving around and also taking up a job. It is clear from the number of jobs created in the past three or four years that the number of additional people at work is 80,000. It is not a case that everybody has left. There are new jobs. In the early years the jobs were concentrated in the east and in Dublin city but in the past year, according to a review of the figures from recent months, there has been a push out to the regions. We are going to try to build on that and the only way we can do it is to have a regional strategy. Otherwise it will not happen. The strategy tries to bring together all the local talents to focus our minds. This has worked in other areas and in other regions. If the Senator does not want to be part of it, that is his choice.

Trevor Ó Clochartaigh (Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I want it more quickly.

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

It will not be a case of putting this aside for a couple of years. We had the first regional strategy before Christmas, which covered part of this area. It was quite beneficial and there will be planning for that in a couple of months. We will not make plans and leave them sitting for two years. The Action Plan for Jobs has been an annual plan with a 90% success rate each year. Likewise the regional plans will show annual targets every year. It is not a case of producing a plan that will be allowed sit there for six or seven years. That is not going to happen.

Trevor Ó Clochartaigh (Sinn Fein)
Link to this: Individually | In context | Oireachtas source

It took four years to get it.