Bernard Durkan (Kildare North, Fine Gael)
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Question 91: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the extent she directly or in conjunction with other Departments proposes to put in place a job creation plan with particular reference to creating the proper climate for employers to increase their workforce, boost investor confidence and enhance the competitiveness of the manufacturing and service sectors; and if she will make a statement on the matter. [41079/09]

Richard Bruton (Dublin North Central, Fine Gael)
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Question 100: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on the introduction of a jobs creation and protection plan; and if she will make a statement on the matter. [28108/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 113: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her future job creation proposals; and if she will make a statement on the matter. [41256/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 91, 100 and 113 together.

The Industrial Development agencies, IDA Ireland and Enterprise Ireland as well as the City and County Enterprise Boards are extremely active in the drive towards job creation and job protection.

IDA Ireland is working to keep its client companies operating in Ireland, to maximise employment and minimise job losses in those companies. There is a constant need for foreign direct investment companies to transform their Irish operations into higher value activities and increase their strategic importance within their parent company. The Agency continues to encourage and assist its client companies to move up the value chain in terms of carrying out higher skilled operations and expanding their presence in Ireland. The aim is to retain existing clients and improve the quality of employment opportunities.

Ireland continues to be an attractive location for foreign direct investment. The Agency has already had a significant number of new investment projects approved and announced in 2009. To date, there have been 44 announcements with a combined investment of €622.5m and the potential to create 2,560 jobs.

Enterprise Ireland delivers a wide range of supports to Irish companies, targeted at the specific requirements of clients throughout all regions to ensure that they develop to their full potential in terms of innovation and exports and ultimately in additional jobs in Ireland.

The Agency has prepared a new recovery strategy to identify the actions that are required to help clients in the present difficult economic environment. Enterprise Ireland has refocused its efforts on strengthening and sustaining companies of strategic importance through a range of initiatives focused on the needs of their client base.

I launched the Enterprise Stabilisation Fund earlier this year. The Fund, administered by Enterprise Ireland, provides support to viable but vulnerable exporting companies who are experiencing difficulties because of the current economic climate. The objective is to assist these companies to invest in cost reduction and other measures. Approval has been given for 126 projects in respect of which €38m has been paid to successful applicants to date.

This week, I announced that 7,478 jobs are to receive direct support under the first round of the Employment Subsidy Scheme (ESS). A total of 453 companies engaged in manufacturing and/or internationally traded services are being informed of their successful applications. The Scheme provides a subsidy of €9,100 over 15 months per qualifying employee in vulnerable but viable firms. Due to a lower than anticipated take-up, I will be announcing details of a second, broader call for ESS applications with extended eligibility criteria open to both exporting and non-exporting firms next week.

I have decided to have a second call for applications with extended eligibility criteria open to both exporting and non-exporting firms. The second call will be open to many companies that were not eligible to apply for the first call. Enterprise Ireland, who will manage the scheme, will shortly advertise details of the second call.

The role of the County and City Enterprise Boards (CEBs) is to provide support for small businesses with up to 10 employees in the start-up and expansion phase, to promote and develop indigenous micro-enterprise potential and to stimulate economic activity and entrepreneurship at local level. Business growth and job creation are inherent considerations in the activities of the Boards. The Boards deliver a series of programmes to underpin this role and provide assistance through financial and non-financial means. The CEBs provide business advice to project promoters and a wide range of programmes covering Business Management, Mentoring, E-commerce, Enterprise Education and Women in Business networks.

It is particularly important to reduce business costs at this time when all sources of efficiency are in focus and when jobs are at stake in all sectors of the economy. In October, research undertaken by the Irish Management Institute highlighted the major cost concerns of multinationals in Ireland. Energy and labour costs were to the forefront of these concerns. This is also the message that we are getting from the SME sector, along with the separate issue of credit availability. This Government has focussed on the actual priorities of businesses, such as energy and labour costs, and we are addressing these concerns. Where Government charges are an issue, we have maintained downward pressure.

Restoring cost competitiveness in Ireland is made more difficult by the current weaknesses in the dollar and sterling — the currencies of two of our more important trading partners. However, in spite of these difficulties, we have made good progress in controlling costs and we are restoring competitiveness. Following significant energy price reductions in May 2009, there has been a significant reduction in gas prices since October and a modest reduction in electricity prices for medium business customers. Overall, all categories of businesses, including SMEs have benefited from significant energy price decreases this year.

With regard to labour costs, it is the view of this Government that controlling pay costs, both in the public and private sector, is a key element in restoring competitiveness. Both the NCB Manufacturing and Services Purchasing Managers' Indices have shown a sustained and deep period of declining input costs for businesses in Ireland, driven, in part, by lower wage costs. This is matched by a decline in Irish inflation that reached minus 6.5% in the year to September 2009 — the sharpest fall in Ireland since the 1920s.

We are committed to maintaining low business taxes and a favourable regulatory environment, and will ensure that our policies keep pace with the way business is changing. The ESRI recently predicted that, with our current control of costs, productivity should grow by over 3% in 2010. Combined with projected wage decreases of 2.5%, this should entail a significant improvement in the competitiveness of the Irish economy.