Written answers

Wednesday, 29 February 2012

Department of Enterprise, Trade and Innovation

Job Creation

9:00 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 24: To ask the Minister for Jobs, Enterprise and Innovation the way he intends to promote clustering of related industries to address regional disparities in job creation. [11322/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Job creation is at the top of the Government's agenda. Since we came into office, we have been working hard to create the improved economic conditions which will support the maintenance of existing jobs and the creation of new ones. Our objective is to put the country back on the road to economic recovery and full employment. The Action Plan for Jobs, which I launched on 13 February, outlines the Government's plan to rebuild the economy and create jobs. The plan will improve access to finance for small businesses, reduce costs and red tape, and improve supports for exports, management and innovation.

One of the recommendations in the Plan is to "support industry-led clustering in key areas of opportunity, based on new models, industry proposals, and newly developed niche market strategies". The responsibility for delivery of this action has been assigned to my Department, the Enterprise Development agencies and relevant industry networks and groups. A number of sectors have potential to progress clustering, particularly in the guise of collaborative industry-led networks which seek to identify mutual objectives which if tackled collaboratively, can have a positive impact on the capability of companies to grow and create employment, wherever they are located.

The Action Plan for Jobs 2012 refers to a number of specific sectors, namely Finance, Telecommunications, e-Learning, Food, Gaming and the Environment. In bringing forward industry-led clustering the Enterprise Development agencies under the auspices of this Department will be working closely with industry and each other. During Quarter 1 2012, an approach and a programme to support industry-led clustering will be developed, taking account of best practice and industry views. It is intended that industry proposals for the establishment of collaborative networks to drive clustering, will be invited during Quarter 2 2012, with an active roll-out of the programme occurring in the latter half of this year. To this end, Enterprise Ireland has recently assigned responsibility for clustering initiatives to a Senior Manager with responsibility to drive the agency's activity in this space.

I am confident that the measures outlined in the Action Plan for Jobs, together with the other policies and initiatives being pursued will create the employment opportunities necessary for national recovery.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Question 25: To ask the Minister for Jobs, Enterprise and Innovation the number of jobs to be created per year to achieve a net increase of 100,000 by 2016 as outlined in the action plan for jobs. [11308/12]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 29: To ask the Minister for Jobs, Enterprise and Innovation the number of jobs to be created in 2012, 2013, 2014, 2015 to create a net increase of 100,000 new jobs by the year 2016. [11310/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 25 and 29 together.

The Action Plan for Jobs has set a target of supporting the creation of 100,000 net new jobs over the period 2012 to 2016. Even in good times, businesses close and jobs are lost, so a significantly larger number of new jobs will need to be generated on a gross basis over the period in question to achieve our target. These jobs will be created by entrepreneurs and successful businesses, aided by Government policies which create the right environment for jobs growth.

There is no reliable data published on gross job creation forecasts across the economy. However, my Department tracks data in respect of its agencies' client companies. Over the period of the Action Plan for Jobs, Enterprise Ireland and IDA Ireland are targeting the support of over 100,000 gross jobs in client firms. Experience has shown that such job creation is matched by a similar number of about 100,000 connected jobs in the economy through the supply chain. Approximately 5,000 full time jobs and over 3,500 part-time jobs will be created by the County and City Enterprise Boards each year, while jobs will also be created by companies who are not supported by the enterprise agencies.

The objective of the Action Plan for Jobs is to transform the operating environment for business to make it easier to start up, expand, access finance and find new markets. An initiative such as the proposed Microfinance Fund could, for example, be a game-changer for jobs in the local economy. The Action Plan for Jobs is seeking to influence the direction of growth and to change the forecasts of unemployment. It is about grinding out reforms to our policies, structures and systems, one by one, to create the environment where jobs can be created and sustained. Clearly, trends in global economics will have an effect on our trade and investment ambitions, but we can, and will, improve the performance of our enterprises by acting on measures that are within our own control.

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