Bernard Durkan (Kildare North, Fine Gael)
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Question 92: To ask the Minister for Enterprise, Trade and Innovation the innovative steps he has taken to date to facilitate economic recovery; and if he will make a statement on the matter. [24797/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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Since the onset of the global downturn, Agencies and groups associated with my Department, including Forfás, EI, IDA and the National Competitiveness Council, have examined the underlying factors affecting Ireland's competitive position and our ability to grow indigenous enterprise, as well as continue to attract mobile international investment, with a view to returning to economic growth. Specific actions to both protect jobs and create opportunities for employment in the future are set out in reports such as "Jobs and Growth 2010", the report of the High Level Action Group on Green Enterprise and the Innovation Taskforce.

Supporting jobs and promoting economic growth involve direct and indirect measures. My Department and the enterprise development agencies have a role to play in both, by directly supporting business and by ensuring that the policies pursued across Government are consistent and support our overall national objectives of promoting employment and strengthening the smart economy.

Our enterprise support policies have consistently evolved to meet the needs of both foreign direct investment (FDI) and growth–orientated indigenous firms. The enterprise agencies have a range of new schemes which have been designed in response to the economic downturn.

Enterprise Ireland launched its "Job Expansion Scheme" earlier this year. This is designed to assist Enterprise Ireland client companies achieve increased employment through increased sales and international trade, through a competitive fund. Enterprise Ireland is also providing supports to 3 programmes in a "LEAN" Initiative, which is focused on helping companies improve their processes and overall competitiveness to ensure they can compete in the global market. Enterprise Ireland is targeting the creation of 40,000 new jobs over the period 2010-2014 and through the multiplier effect this is expected to lead to an additional 28,000 jobs elsewhere in the economy.

The 35 City and County Enterprise Boards are the principal deliverers of State support to the micro-enterprise sector and, in particular, they have deepened their role in promoting a culture of entrepreneurship in their locality. I am examining the CEB network and will bring proposals to Government in the coming weeks on the best structure to support micro-enterprise.

The recently launched IDA strategy entitled "Horizon 2020" presents a view for the next decade, outlines the opportunities for Foreign Direct Investment (FDI), and sets the goals to capitalise on these opportunities. In addition to setting challenging job targets of 62,000 new jobs to be created in the medium term (2010 to 2014), which will generate an additional 43,000 jobs elsewhere in the economy, IDA aims to support this strategy by focusing on the Transformation Agenda with its client companies to allow them become leaner, more flexible and innovative; by targeting investments in new forms of FDI - partnership opportunities from the BRIC countries (Brazil, Russia, India and China); and by targeting growth prospects in nanotechnology, biotech, alternative energy and nanotechnology to name a few.

The Taoiseach has asked me to chair the High Level Implementation Committee to oversee implementation of the Report of the Innovation Task Force. This Report contained many new ideas, as well as calling for a reinforcement and better alignment of existing efforts and programmes.

I chaired the first meeting of the Implementation Committee on 1 June, where we identified the issues where we can move immediately to implementation; the need, in the first instance, to constitute and deploy expert working groups as specified by the Task Force; and the requirement for close engagement with agencies and other Government Departments to progress implementation. The Committee will meet on three more occasions in 2010; in late July, October and December.

Following this first meeting, an Intellectual Property Implementation Group, was appointed and charged with developing and realizing the intellectual property related (IP) recommendations of the Innovation Taskforce Report and of a detailed IP review conducted by Forfás for my Department. The development of an IP Strategy will help Ireland maximise the return on public investment and support the commercialisation of Irish research and development.

Since my appointment as the Minister for Enterprise, Trade and Innovation, I have met with a range of stakeholder groups, including individual companies and business people both in Ireland and abroad. In my discussions, I have underlined that my priority is to facilitate economic recovery through ensuring that the business environment is supportive of Irish enterprise, both manufacturing and services, in order to grow exports and to continue to encourage high value foreign investment. Most commentators, including the Central Bank and Economic Social and Research Institute, now forecast positive growth in the second half of this year.

Bernard Durkan (Kildare North, Fine Gael)
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Question 93: To ask the Minister for Enterprise, Trade and Innovation the degree to which he has identified the most commonly recognised factors currently affecting the competitiveness of the economy; the degree to which he proposes to put in place the necessary corrective measures; and if he will make a statement on the matter. [24798/10]

Bernard Durkan (Kildare North, Fine Gael)
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Question 94: To ask the Minister for Enterprise, Trade and Innovation his plans to bring job creation costs in this economy into line with competing jurisdictions; and if he will make a statement on the matter. [24799/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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I propose to take Questions Nos. 93 and 94 together.

The National Competitiveness Council's report, "Benchmarking Ireland's Performance", provides a comprehensive assessment of Ireland's competitiveness on an annual basis.

Our competitiveness is derived from a complex set of factors, not all of which are within our control. The factors with the greatest influence on our competitiveness are costs, productivity and exchange rates with our trade and investment partners, and the overall business environment. The business environment covers areas such as regulation, infrastructure and the availability of necessary business services.

Since January 2008, Ireland has regained competitiveness as domestic inflation remains below that of our main trading partners and the euro weakened. We are seeing lower business costs, which is easing pressures on the business sector. Wage costs, asset prices and energy prices are all on a downward trend. Annual inflation fell by 2.5% in the twelve months to April, in contrast to the rest of the euro area where it rose by 1.5%. The Irish consumer price level relative to its trading partners is now back to levels last seen in 2000/2001.

The price of services to business fell by 5.7% in Q3 2009 compared to Q3 2008, with the largest price reductions in architecture, engineering & technical testing (-9.8%), and computer programming & consultancy (-8.5%). The European Commission forecast that our Unit Labour Costs will fall by 9.4% over the 2009 to 2011 period, against a projected increase of 3.5% for the Eurozone. This equates to a positive swing of 13% in Ireland's favour over the three year period to 2011.

The Government introduced an extensive package of measures to contain energy costs last summer – and this is reflected in a much improved position relative to competitors. Data released in May shows that electricity and gas prices fell for all types of energy consumers in the second half of 2009, and have moved closer to the EU average for most business users.

Competitiveness also includes boosting the total productive capacity of the economy. We are doing this, for example, through targeting R&D and Innovation to drive productivity and ensure that we have the skills and technologies available in Ireland that will give us a competitive advantage. The entire Irish economy must be a smart economy, that is to say, a high-productivity and technologically advanced economy if we are to compete with the rest of the world. The Taoiseach appointed me to Chair the group tasked with implementation of the recommendations of the Innovation task force and this met for the first time earlier this month.

We are focused on opportunities for growth in a number of key sectors. For example, the Green Enterprise report estimated that 80,000 new jobs could be created in the coming years and there are other opportunities for growth in high-end manufacturing and services. Since my appointment as the Minister for Enterprise, Trade and Innovation, I have met with a range of stakeholder groups, including individual companies and business people both in Ireland and abroad. In my discussions, I have underlined that my priority is to ensure that the business environment is supportive of Irish enterprise, both manufacturing and services, to grow exports and to continue to encourage high value foreign investment.