Written answers

Tuesday, 9 March 2010

Department of Enterprise, Trade and Employment

Job Creation

8:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 57: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the measures she is taking to assist indigenous enterprises to retain and create employment to compensate for the loss of inward investment in jobs in view of the fact that the National Irish Bank foreign direct intelligence inward investment performance monitor found that job creation by foreign multinationals slipped by 42% in 2009 and that job creation in the Industrial Development Authority supported companies has fallen by 62% since 2005; and if she will make a statement on the matter. [11128/10]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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Job creation is at the top of this Government's agenda and through the agencies under the aegis of my Department, a range of measures have been put in place to assist the indigenous sector both in retaining and creating employment opportunities. In supporting enterprises and safeguarding existing jobs, this Government has introduced a broad range of enterprise support measures. Last year, through the Enterprise Stabilisation Fund, viable but vulnerable companies experiencing difficulties due to the current economic climate, were supported in the areas of market development, productivity improvements and product development. In 2009, €58m was spent on 180 projects, supporting approximately 7,500 jobs. The Fund continues to attract a high volume of applications in 2010.

A further initiative to protect existing jobs, the Employment Subsidy Scheme, was also introduced last year. The Enterprise Stabilisation Fund and the Employment Subsidy Scheme together reflect the Government's commitment to assisting companies overcome this difficult period. Between the two schemes we are investing €235 million directly into enterprises, safeguarding thousands of jobs and securing our enterprise capability in the process. To address the issue of accessing credit for SME's, the Minister for Finance announced a new Credit Review System in his Budget 2010 speech and, under the Employer Jobs (PRSI) Incentive Scheme, an employer who creates a new job and takes on a person who has been unemployed for 6 months or more, will be fully exempted from the liability to pay PRSI for the first year of that employment.

This Government is also maintaining a substantial capital investment programme, including the National Development Programme and the implementation of key Government programmes such as the Rural Development Programme and the Home Energy Savings Scheme, providing work for some 3,690 registered contractors. The Government is also investing substantially in the provision of key infrastructure, such as broadband, where the number of subscribers has doubled during the lifetime of this Government.

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, which in turn, stimulates job creation. Enterprise Ireland has prepared a recovery strategy and has focused its efforts on strengthening and sustaining companies of strategic importance through a range of initiatives. The City and County Enterprise Boards are also playing an important role in supporting existing enterprise and in promoting the creation of new employment.

Notwithstanding reductions in job creations by foreign multinationals in 2009, there is no doubt that International investment will be a key driver of employment, exports and growth and we will continue to market the Ireland brand as a location of choice for the newcomer and for existing investors. Foreign direct investment (FDI) has been, and will continue to be, a catalyst for our national prosperity. Over the years, FDI companies have created large numbers of high-quality jobs, both for the direct employees of the investing companies and in the local enterprise that provides them with goods and services. Ireland continues to attract FDI from many of the world's leading companies and in such turbulent economic times it is significant that many of the world's leading companies continue to invest in Ireland in a wide array of activities including high-end manufacturing, global services and RD&I.

On 2nd March, I launched "Horizon 2020", IDA Ireland's Strategy for the period to 2020. This strategy outlines a number of targets to be achieved in the period 2010 to 2014. One of these is a target of creating 105,000 new jobs by 2014, a figure comprised of 62,000 directly employed in IDA client companies, which would support a further 43,000 jobs in the wider economy. As a developed economy with an excellent track record in FDI, a stable regulatory regime, membership of the EU and the Eurozone, Ireland is well positioned to create substantial additional employment into the future. I am satisfied that all of the agencies of my Department are contributing to the important task of retaining and creating employment in our economy.

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