Written answers

Tuesday, 5 April 2011

Department of Enterprise, Trade and Innovation

Employment Action Plan

3:00 pm

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

Question 173: To ask the Minister for Enterprise, Trade and Innovation his plans to replace or put in place a similar scheme to the employment subsidy scheme temporary that closed in March 2011; and if he will make a statement on the matter. [6496/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

The Employment Subsidy Scheme (Temporary) was introduced to help employees maintain their jobs while at the same time assisting employers to retain their productive capacity. The Scheme was operated as part of an Irish State aid scheme approved under the European Commission's Temporary Framework on State aid, introduced in December 2008. The Framework was brought in on a temporary basis to allow Member States increased flexibility to assist companies in the real economy that were facing difficulties in accessing finance as a result of the economic downturn.

There are no plans to replace the Employment Subsidy Scheme. I should add that the approved Irish State aid scheme under the Temporary Framework expired on 31st December 2010. An amendment to the Temporary Framework by the European Commission in December 2010 means that it would no longer be possible to secure approval for any prolongation of this scheme.

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
Link to this: Individually | In context

Question 174: To ask the Minister for Enterprise, Trade and Innovation the steps he is taking to create employment in County Limerick; and if he will make a statement on the matter. [6565/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Job creation is central to our economic recovery and the Programme for Government has job creation at its core. The role of my Department is to ensure that we have the right policies to support enterprise and innovation so that quality employment opportunities can be grown and maintained. It is only by creating the right environment for businesses to expand that we will see new jobs coming on stream.

Limerick's FDI base is concentrated for the most part in the city environs of the National Technology Park and Raheen. IDA Ireland supports 38 companies in County Limerick that employ almost 6,000 people. IDA's strategy is to re-position the region as a hotspot for knowledge based industry, while focusing on marketing Limerick as a key location for investment, by building on the strengths already evident in the county. To support this strategy, IDA Ireland works closely with educational institutions in the region to develop the skill sets necessary to attract high value-added employment to the county. In March 2010, IDA published its strategy for the forthcoming decade, "Horizon 2020.""Horizon 2020" sets out IDA's targets for the five-year period to 2014. One of these targets is to secure 50% of investments outside Dublin and Cork

The CEO of IDA informed the Oireachtas Joint Committee on Enterprise and Employment last December that IDA expected three project announcements in the Limerick region in the first half of 2011. The first of these companies announced in December 2010 that it was establishing its European sales and marketing headquarters in the National Technology Park; the first employees have now been recruited and the project is up and running. With regard to the other two investments for Limerick, IDA remains confident that both projects will proceed and will be announced in the coming months.

Enterprise Ireland will continue to support job creation through a number of interventions, such as supporting the establishment and growth of high potential start-up companies and supporting companies to target new opportunities in overseas markets.

In 2010, Enterprise Ireland paid €7.3m to client companies in Co. Limerick. At present, there are 264 Enterprise Ireland client companies in Co. Limerick, employing over 6,000 people. The agency has approved funding under the Community Enterprise Centre Scheme for eight community enterprise centres amounting to €2.19m to date.

The priorities for the Enterprise Boards based in Limerick in 2011 are to assist owner/managers in enhancing the survival and sustainability of their businesses in these difficult economic times and to assist people wishing to start their own business including those made redundant. A budget of over €775,000 has been made available to the two Enterprise Boards in Limerick for the provision of supports (financial and non-financial) in 2011. At present, there are over 1,800 people employed in companies supported by the two enterprise boards operating in Limerick City and County. In addition to their core activities both Boards are distributing funding available under the Dell European Globalisation Fund facility to former Dell workers who have set up their own business subsequent to being made redundant.

The Government has committed to the introduction of a Jobs Budget within its first 100 days. This will facilitate the implementation of a number of measures across a range of Government Departments.

As part of my jobs and growth plan I will be promoting in the context of the upcoming Jobs Budget measures such as: · A reduction in PRSI costs for employers · Addressing legal costs for businesses through various initiatives currently in development · A partial loan guarantee scheme to increase the flow of credit to job-creating businesses · An end to upward-only rent reviews

For my own part, I intend to develop initiatives to target particular sectors where there is greatest opportunity to capitalise on the strengths of our enterprise base and our people. I have already started working with the enterprise agencies under my Department's remit to develop a Jobs Programme that will develop the detail of these initiatives. The actions to be taken across Government will stimulate the economy, facilitate enterprise and encourage job creation, including in Co. Limerick.

Comments

No comments

Log in or join to post a public comment.