Written answers

Wednesday, 13 October 2010

Department of Enterprise, Trade and Innovation

Job Creation

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 81: To ask the Minister for Enterprise, Trade and Innovation the extent to which he has examined the various sectors within the portfolio of his Department with a view to identifying at least ten key objectives to assist in a programme for economic recovery; the response expected from each sector; if specific objectives have been or will be set; the degree to which the manufacturing sector is likely to be involved with particular reference to job creation; the extent to which innovation is likely to be utilised with optimum benefits; the extent to which trade is likely to function in a competitive environment; the precise number of jobs likely to be created over a specific period against the backdrop of the national debt; and if he will make a statement on the matter. [36403/10]

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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Specific objectives for growth are set out in the Government's five year integrated Trade, Tourism and Investment plan which is designed to increase the value of indigenous exports by 33%; to diversify the destination of indigenous exports; to increase overseas visitors to 8 million; to secure an additional 780 inward investment projects through IDA Ireland and create up to 300,000 sustainable jobs across the economy. The Government recognises that a diverse range of enterprises will support both direct and indirect employment requiring a broad range of skills across all sectors of the economy, both internationally and locally traded.

Presently, manufacturing firms' total direct spend in the Irish economy exceeds €26 billion and contributed 25% (or €40bn approx.) to Irish GDP in 2009. Over 180,000 people are employed in manufacturing and in addition to these it is estimated that there are an additional 74 jobs in related services for every 100 directly employed in manufacturing. Not only does manufacturing contribute directly to employment, economic output and exports but it is also a key driver of innovation and technological advance. It increases opportunities for attracting and embedding research and development activities, collaboration with the higher education sector and stimulating networks.

In order to sustain and grow employment in manufacturing, Irish based enterprises will have to continue the progression to high value added sectors and activities, and continue to increase productivity through investments in human capital, technology and innovation.

Our aim is that by 2020, Ireland will have a significant number of large, world-leading, innovation-intensive companies. These companies will provide high quality employment and generate exports and tax receipts. They will vary in scale, type of activity and pattern of company ownership. What will be distinctive about these companies is that they will be ambitious, export focused and, above all, innovative. Manufacturing will have a central role to play in the realisation of this vision.

Many companies in Ireland have built world-class high value-added manufacturing and services capabilities, particularly in food, information and communications technology, software development for manufacturing technology, pharmaceuticals and medical technologies. We envisage that Ireland's manufacturing base will continue to move up the value chain. Programmes such as SFI's Centres for Science Engineering and Technology and Strategic Research Clusters programmes, along with the EI/IDA Competence Centre programme all have the same objective which is to harness the benefits of research collaboration for the benefit of the Irish economy.

We have seen in this recession, that the companies that have invested in R&D and ensured their products or services have a competitive edge, are the same companies that have held or grown market share, held or grown employment. This has reinforced our belief that our R&D Strategy is the right one. Keeping the manufacturing sector strong is based on keeping ahead of the competition through market-focused research and development. Enterprise Ireland and IDA are working closely with companies to strengthen the research and technological base of the enterprise sector in order to drive productivity, competitiveness, exports and jobs.

IDA Ireland offers information, advice and ongoing support to companies setting up or expanding High Value Manufacturing Operations in Ireland. Support is available to companies making the required changes to be at the leading edge in terms of production processes, global business models and organisational structures. In 2009, almost €29 million was approved to industry for 100 manufacturing industry R&D projects under Enterprise Ireland's R&D supports. Further, significant support was made available by IDA to the companies they assist.

The model of manufacturing in developed countries is changing and Irish-based enterprises are adapting to those changes and engaging in higher value added activities in order to compete in the global marketplace. Science Foundation Ireland is playing a critical role in building our human capital - the knowledge, skills and creativity of people - and our ability and effectiveness in translating ideas into valuable processes, products and services.

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