Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Question 241: To ask the Minister for Jobs, Enterprise and Innovation the steps he has taken to encourage small businesses to take on new employees; and if he will make a statement on the matter. [14259/12]

Richard Bruton (Dublin North Central, Fine Gael)
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As I have pointed out on many occasions, the Government does not create jobs – entrepreneurs and successful businesses do. However, the Government has a key role to play in providing the environment whereby businesses can start-up, expand and create jobs.

There are two major elements to the Government's response to supporting business and unemployment – the Action Plan for Jobs and "Pathways to Work".

The Action Plan includes a total of 270 specific measures to be delivered across the whole of Government. "Pathways to Work" will be delivered by the Departments of Social Protection and Education and Skills, and the relevant bodies under their aegis.

The goal of the Action Plan for Jobs is to support the creation of 100,000 net new jobs in the economy over the period 2012 to 2016, while the aim of "Pathways to Work" is to help to ensure that as many of those jobs as possible are filled by people from the Live Register. Both documents are fundamentally linked and recognise the need to reform our policies and our structures to secure long-term and lasting results for our enterprise base and for job-seekers.

The Action Plan for Jobs aims to transform the operating environment for business in order to support enterprise growth and job creation. The Government will achieve this objective by systematically removing obstacles to competitiveness, putting downward pressure on business costs, promoting innovation and trade, supporting new and existing businesses to develop and expand, and by deepening the impact of foreign direct investment in Ireland. The Government has also identified in the Action Plan a number of key sectors where Ireland can gain competitive advantage in global markets.

Access to Finance is critically important for SMEs seeking to retain existing, or recruit new, employees. Commitments in the Action Plan for Jobs include a Partial Credit Guarantee Scheme, a new Microfinance Fund and a new Development Capital Scheme will all help small and medium sized enterprises to retain and create jobs.

Other important initiatives taken by this Government since coming to office, such as the introduction of a 9% VAT rate last July on a range of services, including hotels and restaurants, and the halving of employer's PRSI for those on modest wages have all been focused on helping SMEs to retain and create jobs.