Written answers

Wednesday, 12 October 2011

Department of Enterprise, Trade and Innovation

Job Losses

7:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 83: To ask the Minister for Jobs, Enterprise and Innovation the number of jobs lost and created in each of the past five years to date in 2011; the extent to which particular sectors have been affected, positively or negatively, to a greater or lesser extent; and if he will make a statement on the matter. [29117/11]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 84: To ask the Minister for Jobs, Enterprise and Innovation the extent to which focus is on job creation in the low, medium and upper income areas with particular reference to the need to have a balanced, supportive and self-sufficient economy; and if he will make a statement on the matter. [29118/11]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 85: To ask the Minister for Jobs, Enterprise and Innovation the extent to which he has evaluated the reason or reasons for any job losses over the past five years to date with a view to determination of cause and addressing the issues emerging; and if he will make a statement on the matter. [29119/11]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 89: To ask the Minister for Jobs, Enterprise and Innovation the extent to which jobs in the manufacturing sector or services sector lost over the past five years can be replaced in the future; if the reasons for such losses can be adequately addressed in the future; and if he will make a statement on the matter. [29123/11]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 90: To ask the Minister for Jobs, Enterprise and Innovation the extent to which he expects to encourage job creation in the manufacturing and service sectors over the next five years with particular reference to identifying, in advance, world market needs and providing for such in all sectors in the future; and if he will make a statement on the matter. [29125/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 83 to 85, inclusive, 89 and 90 together.

Figures in respect of the number of jobs created or lost in firms assisted by the industrial development agencies, IDA Ireland, Enterprise Ireland and Shannon Development, are compiled annually in the Forfás Annual Employment Survey. As the information is compiled on an annualised basis, the figures in respect of 2011 will not be available until 2012. Details of the number of jobs created and lost in agency-assisted companies on an annual basis over the last five years are set out in Table A accompanying this reply. Details of jobs created and lost in those companies by sector are set out in Tables B and C.

My Department does not collect or retain information on the number of jobs that have been created or lost in County and City Enterprise Board assisted companies. However, statistical information in relation to details of jobs existing in companies assisted by the County and City Enterprise Boards is collated annually and is set out in Table D in respect of the last five years. Figures in respect of 2011 will be available in the early part of 2012.

In general terms, business decline, resulting in job losses, often arises due to a combination of issues affecting the long-term viability of a company, rather than a singular difficulty. In this context, some of the most commonly stated primary reasons for business decline and consequent job losses include:

· Significant decreases in customer/market demand due to the recession in Ireland and key trading partners

· Financial Difficulties (insolvency, bankruptcy, bad debts, inability to raise finance)

· Increased competition from competitor companies (in some cases exacerbated by volatility in exchanges rates)

· Loss of key customers

· Rationalisation/Consolidation/Restructuring of Group structures involving the closure of a company unit.

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 in place that will support and grow our enterprise base in order to facilitate job creation. The Jobs Initiative announced in May focuses our limited resources on measures that offer the greatest potential for expansion and employment creation in the domestic economy.

The programmes supported by my Department and its agencies will be critical in achieving economic growth through promoting the export potential of enterprise in Ireland and driving our Smart Economy. The allocation of €508m in capital funding for 2011 will ensure the core programmes of the enterprise agencies are sustained and targeted as well as driving investment in research and development. This investment in the Enterprise Development agencies will drive recovery in the economy by facilitating the winning of foreign direct investments, the growth of indigenous exports and the creation of sustainable jobs.

The focus of Enterprise Ireland is aimed at the ultimate objective of increasing exports and consequently, employment in Ireland, and the agency operates a comprehensive range of supports to enable indigenous industry to grow and innovate. Enterprise Ireland has a job creation target of 60,000 under the Government's Strategy for Irish Trade, Tourism and Investment to 2015.

The 35 County and City Enterprise Boards continue to support the development of micro-enterprise through the provision of both direct financial assistance (in the form of capital, feasibility and employment grants) and through indirect or "soft support" assistance such as management development, capability support and the development and delivery of activities to highlight and promote enterprise.

In March 2010, IDA Ireland published 'Horizon 2020', its strategic blueprint for attracting Foreign Direct Investment (FDI) into Ireland in the coming decade. FDI has been, and will continue to be, a key element in the export-led recovery of the economy. Building on existing regional strengths to ensure Ireland's economic development and optimising regional spread of overseas investments is central to IDA's core activities. The agency's targets for the period to 2015 as per the Government's Strategy for Irish Trade, Tourism and Investment include:

· The creation of 75,000 new jobs;

· To secure an additional 780 inward investment projects;

· To deepen the domestic value added of overseas firms in Ireland and to strengthen linkages and collaboration between foreign-owned and indigenous firms.

· 20% of new greenfield investment projects to come from high growth and emerging economies.

I am confident that the combined influence of Ireland's improving competitiveness, our commitment to maintaining 12.5% corporate tax rate, the development of our national infrastructure, the Government's investment in science, technology and innovation, and our strong skills base will continue to attract and increase the level of inward investment to Ireland.

Table A

Year20062007200820092010
Full Time Job Gains in Enterprise Ireland, IDA Ireland and Shannon Development assisted companies34,52028,70823,50814,27217,582
Year20062007200820092010
Full Time Job Losses in Enterprise Ireland, IDA Ireland and Shannon Development assisted companies21,34724,14130,29045,92723,704

Table B - Jobs Created in Agency-assisted Companies by Sector

Sector20062007200820092010
Manufacturing17,87113,08210,3297,0437,408
International Services11,3209,8418,8895,1967,999
Financial Services3,0733,5952,6469981,235
Other2,2562,1901,6441,035940
Total34,52028,70823,50814,27217,582

Table C - Jobs Lost in Agency-assisted Companies by Sector

Sector20062007200820092010
Manufacturing14,69215,40520,38228,84213,614
International Services5,5017,1076,95611,9576,695
Financial Services3005591,1691,9761,600
Other8541,0701,7833,1521,795
Total21,34724,14130,29045,92723,704

Table D

Year20062007200820092010
Jobs existing in CEBsBased on CEB Annual Employment Survey32,27934,545.533,81130,726.532,910

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