Written answers

Wednesday, 14 September 2011

Department of Enterprise, Trade and Innovation

Job Creation

9:00 pm

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
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Question 266: To ask the Minister for Jobs, Enterprise and Innovation if he will comment on a financial proposal (details supplied). [22979/11]

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Question 267: To ask the Minister for Jobs, Enterprise and Innovation if he will examine a proposal on job creation (details supplied). [23005/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 266 and 267 together.

I have examined the proposal in question, which envisages the placement of 200,000 unemployed people back in the workforce while retaining their unemployment payments and receiving a fixed salary of €270 per week from their employer.

The question of workers retaining unemployment payments is a matter for the Minister for Social Protection, Ms. Joan Burton, T.D., and her view, on the proposal should be sought. However, I can foresee a number of difficulties with the proposal, including implications for the principles underpinning unemployment payments and difficulties with EU State Aid rules as the measure could be construed as a subsidy to enterprises.

There are already a number of schemes in existence which create very generous incentives for businesses to employ people who are on the Live Register.

For example, Revenue Job Assist allows employers a double wages deduction in their accounts if they employ a person who has been unemployed for 12 months or more. The double wages deduction may last for 3 years and applies to wages paid to a qualifying employee and to Employers' PRSI contributions paid in respect of those wages.

The Department of Social Protection also operates an Employer's PRSI Incentive Scheme. This scheme exempts employers from paying PRSI for 12 months in respect of certain qualifying employees.

The Government also recently launched the National Internship Programme – Job Bridge – which will provide work experience placements of 6 to 9 months for those who have been on the Live Register for at least 3 months. The aim of the National Internship Programme is to assist in breaking the cycle of jobseekers being unable to obtain a position in the absence of experience. The scheme will provide for up to 5,000 work experience placements in the private, public and voluntary sectors.

My Department's website includes information and links to a range of financial and non-financial supports available from Government Departments, Offices and agencies to assist companies to grow, improve competitiveness, create employment and improve productivity. Details are available at: http://www.djei.ie/enterprise/businesssupport.htm.

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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Question 268: To ask the Minister for Jobs, Enterprise and Innovation the steps that are being taken by job creating agencies with regard to providing a viable business in the compound of the former Pretty Polly factory in Killarney, County Kerry; and if he will make a statement on the matter. [23017/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The role of Government is to create the conditions where enterprise, entrepreneurship and innovation can flourish and quality employment opportunities can be grown and maintained. Two Industrial Development agencies under the aegis of my Department, IDA Ireland and Enterprise Ireland, together with the Kerry County Enterprise Board (CEB) support enterprise development in Co. Kerry.

IDA Ireland promotes Co. Kerry for new inward investment across the ICT, International Financial Services and Globally Traded Business sectors. As well as attracting new foreign direct investment, IDA works closely with its existing clients in Kerry to encourage them to expand their operations in the County. IDA continues to market all available land and buildings in the county, including its Business & Technology Park in Killarney. As regards the site in question, I understand that IDA Ireland has requested details of the specification of the building from Killarney Town Council, which owns the building. However, as most potential is in the services sector, whose requirements differ from those of manufacturing, the opportunity to source a prospective FDI tenant for this building may be limited due to its current layout.

Enterprise Ireland's activity as regards job creation is focused on the creation of new jobs through supporting entrepreneurs to set up new high potential start-up companies, and on the retention and creation of jobs in existing companies through the support of company development plans. In Killarney and Co. Kerry as a whole, Enterprise Ireland actively engages with its client companies and has a number of supports and initiatives in place to assist companies. A number of local seminars and workshops on a variety of subjects take place throughout the year.

In addition to its existing supports for Irish companies, Enterprise Ireland has launched a new Jobs Expansion Fund, which can provide grant support up to a maximum of €150,000 towards the recruitment of new employees. In 2011, in addition to its existing offer for innovative high potential start-up businesses, Enterprise Ireland also launched a series of Competitive Start Funds geared towards start-up businesses in target sectors, with the most recent focusing on the lifesciences, cleantech and industrial sectors. These initiatives are expressly directed at business projects which can generate new jobs in the short to medium term.

Kerry County Enterprise Board provides support for micro-enterprise in the start-up and expansion phases, to promote and develop indigenous micro-enterprise potential and to stimulate economic activity and entrepreneurship at local level. The Board has concentrated efforts on the on-going development of the Killarney Technology Innovation Centre (KTI), which has received funding from Enterprise Ireland, in Deerpark close to the Pretty Polly building. In addition, I have been informed that a meeting is expected to take place between the Chief Executive Officer of Kerry County Enterprise Board and representatives of the Killarney Town Council to discuss the Pretty Polly issue further in relation to what advice and/or assistance the Board would be in a position to offer.

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