Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 271: To ask the Minister for Enterprise, Trade and Employment the net new jobs position produced by both the Industrial Development Authority and Enterprise Ireland in the first quarter of 2008; and the expected impact of the severe credit, construction and energy downturn on these organisations' performance projections for 2008. [16213/08]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Ireland has experienced a prolonged period of exuberant economic growth. However, we now face a more challenging and uncertain environment. Forfás and the National Competitiveness Council believe that this is not a time for pessimism about the outlook for the Irish economy. We have significant capacity — a skilled workforce, a strong enterprise base and a healthy fiscal position. These are supported by a range of important policy strategies in areas such as education, research and innovation and infrastructural investment. The NCC believe that if we behave sensibly and pursue the necessary policies with determination we can come through the current international economic difficulties in good shape and lay the foundations for future economic growth.

The NCC believes that the following are three priority areas for attention in order to overcome the challenges that our economy currently faces:

Restoring cost competitiveness: Ireland is a high cost location and costs continue to increase. The NCC believes that Ireland needs to develop a national programme for cost competitiveness.

Stimulating vigorous productivity growth: Productivity growth rates have weakened in recent years. Re-invigorating productivity growth requires a number of actions including adopting policies that enhance competition and reduce barriers to market entry.

Necessary strategies for encouraging the growth of innovative businesses include equipping people with the skills through life long learning and developing high performing higher level educational institutions. Transformational changes are needed in many businesses to enhance their ability to innovate and to translate knowledge and ideas into marketable goods and services.

Such transformational changes are being stimulated by Enterprise Ireland in their client companies and are embedded in the EI strategy for 2008-2010. EI offers a wide range of services to client companies and ensures that suitable supports are available across those areas critical to business functions to enable companies adapt and grow dynamically. Enterprise Ireland (EI) gathers data on an annual basis on new jobs created by client companies but not on a monthly or quarterly basis. Total employment in EI supported companies was 153,670 in 2007. Client companies created 14,615 new jobs. Overall this resulted in a net increase in employment amongst EI client companies of 1,321 in 2007.

Since the beginning of 2008 there have been 5 announcements relating to new multinational, greenfield start-ups with a potential to create 595 new jobs with IDA support, while in the same period, 9 companies have announced expansions with a potential to create an additional 1,016 jobs. It should be noted, however, that jobs announced may take three to five years to come on stream.