Written answers

Tuesday, 22 November 2011

Department of Enterprise, Trade and Innovation

Job Creation

8:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 239: To ask the Minister for Jobs, Enterprise and Innovation the extent to which he is focused on job creation in the manufacturing and service sectors with particular reference to small and medium-sized enterprises and major corporations; and if he will make a statement on the matter. [36336/11]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 241: To ask the Minister for Jobs, Enterprise and Innovation the extent to which he can set precise objectives for job creation in both manufacturing and services over the next five years; if precise targets have been set out and tested for viability; and if he will make a statement on the matter. [36338/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 239 and 241 together.

The manufacturing and internationally-traded services sectors in Ireland have begun to recover in the last two years, based on a relative improvement in Ireland's competitiveness, and their exports have performed strongly. In spite of the weak global economic climate, Ireland has many strengths which gives it a competitive edge and which we can build on to create more jobs. We have established strong clusters in manufacturing and services sectors such as Medical Devices, ICT, Pharmaceuticals and Financial services, which continue to perform well. Ireland is also well placed to exploit opportunities in new sectors such as Cloud Computing and Digital Gaming, Life Sciences and Clean-tech, through the quality and skills of our workforce.

The Government published its Medium Term Framework for Infrastructural and Capital Investment on 10 November, to cover the period 2012 to 2016. The Capital Investment Framework places a focus on economic growth and jobs, as well as addressing social cohesion and environmental sustainability. In total, €2.334 billion is being provided to my Department's Vote from the Capital Investment Framework to support jobs, enterprise and innovation over the period 2012 to 2016. A further €900 million is being invested by my colleagues in programmes related to tourism, agriculture, food and the marine, all of which deliver major economic and jobs benefits.

Capital funding for my Department's enterprise development agencies will be protected or enhanced over the medium-term. A number of new initiatives will also be funded which will support job creation, including a Partial Loan Guarantee Scheme and Innovation Fund Ireland. There will also be an increased focus on accelerating High Potential Start-Up companies. As a consequence, I expect the enterprise development agencies to deliver on their ambitious jobs targets of over 110,000 gross new jobs over the five years of the programme to 2016. This represents an average of 22,000 new jobs per annum. Every new job is estimated to have a multiplier effect, so the overall impact on job creation of these activities is estimated at 220,000 gross new direct and indirect jobs.

The environment for business and jobs growth is, of course, affected by international economic conditions and our own competitiveness. In recognition of this, I am conducting a review of our policies and I plan to publish a Jobs Strategy early in the New Year to ensure that policies are adopted which maximise job opportunities.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 240: To ask the Minister for Jobs, Enterprise and Innovation the extent to which he has had discussion with representatives of small and medium-sized enterprises and major corporations with a view to identifying the most likely job creation opportunities; the extent to which the precise job creation has been determined in the short and medium term; and if he will make a statement on the matter. [36337/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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As Minister for Jobs Enterprise and Innovation, I have had many meetings with business representative organisations, chambers of commerce and individual business leaders from both the SME section and large enterprises. In his role as Minister for Small Business, my colleague, Minister John Perry has also met with a wide range of business people and business representatives to hear at first hand their views and suggestions on what measures could be taken by Government to support business and job creation.

The Small Business Advisory Group was launched in June of this year and is chaired by Minister Perry. The Group includes entrepreneurs and representatives from the main small business representative bodies and membership is focused on business people with direct experience in running a business. The mandate of the Group is to identify what issues need to be addressed as a priority and make recommendations on what measures can be considered to further support small business to sustain and create jobs. The Small Business Advisory Group has recently finalised its report, identifying priority issues to be considered by Government. The output of this group will inform Government actions in relation to helping small businesses create jobs.

The High Level Group on Business Regulation, also chaired by Minister Perry, was set up to provide a fast-track mechanism for business to communicate specific red tape issues to Government and follow through on their implementation. The Group works to identify the administrative burdens placed on businesses, particularly SMEs, arising from regulation and to determine ways to reduce and simplify these or eliminate them where they are unnecessary. The Group has already processed a range of red tape issues and continues to seek practical solutions to further concerns. In addition to this work, the High Level Group was involved in validating the administrative burdens identified with my Department in 2009 and 2010 as part of the target to reduce administrative burdens by 25% by 2012.

As the Deputy is aware, I have begun preparation of a comprehensive Jobs Strategy, at the request of the Taoiseach and Cabinet Committee on Economic Recovery and Jobs, which I hope to publish in the New Year. As part of this process, I have consulted very widely across the public and private sectors and have received several hundred separate recommendations. I am examining proposals together with Government colleagues and officials and they will inform the Jobs Strategy. The strategy will cover both short and medium term actions that will contribute to job creation across the economy over the coming months and years.

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