Written answers

Wednesday, 22 May 2013

Department of Jobs, Enterprise and Innovation

Job Creation Issues

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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139. To ask the Minister for Jobs, Enterprise and Innovation the degree to which he and his Department have identified any major issues of concern to those creating employment indigenously or by way of foreign direct investment; the extent to which it has been found possible to address such issues; and if he will make a statement on the matter. [24777/13]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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141. To ask the Minister for Jobs, Enterprise and Innovation the extent to which he and his Department have been in a position to address any concerns expressed by the business sector with particular reference to the retention of existing jobs and the creation of new employment; and if he will make a statement on the matter. [24779/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 139 and 141 together.

The development of appropriate policy responses to support the retention of existing jobs and creation of new jobs is dependent on robust analysis and consultation with key stakeholders, including business representative bodies. This is undertaken on an on-going basis by Government, the State Agencies and other independent bodies. In addition to work carried out by my own Department, Forfás provides independent and rigorous research, advice and support in the areas of enterprise and science policy. This work informs my Department and the wider Government in its responses to the needs of the business environment.

During the preparation of the 2013 Action Plan for Jobs, I met with a wide range of business representatives. I also held a series of regional meetings in 2012 to hear the concerns of the enterprise sector. In addition, I also meet regularly with the CEOs of Forfás, IDA Ireland and Enterprise Ireland to keep informed of developments in the enterprise sector.

In the preparation of the Action Plan for Jobs 2013, more than 55 submissions were received, containing over 600 individual proposals for consideration. Some of these are already being addressed through Government actions generally, or through specific actions contained in the Action Plan for Jobs. However, we are also considering what further action we can take in relation to individual actions through the Action Plans for Jobs in 2014-2016, the budgetary process and other mechanisms.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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140. To ask the Minister for Jobs, Enterprise and Innovation the extent to which innovation, science and modern technology have featured in the context of new jobs created in the economy in each of the past three years to date; the extent to which further opportunities exist in this area; and if he will make a statement on the matter. [24778/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The importance of investment in science, technology and innovation to Ireland’s on-going and future economic development has been well recognised by the Government. Innovation is an integral part of the Government’s overall economic policy and a key pillar in our 2013 Action Plan for Jobs is ‘using research and innovation to drive job creation’. Supporting innovation is one of the key areas which I have been working on directly to support job creation by enterprise. The progress being made is demonstrated by the fact that we are climbing back up the international competitiveness tables; our exports are at record high levels, and IDA Ireland and Enterprise Ireland had their best years for jobs growth in 2012 for ten years and five years respectively.

In a modern economy, highly innovative sectors deliver high returns. In Ireland, we have some of the largest and most dynamic medical device and pharmaceutical companies in the world. Nine of the top 10 pharmaceutical companies in the world have a base in Ireland, as do eight of the top 10 medtech companies. The life sciences sector in Ireland accounts for over 50,000 jobs and €50 billion worth of exports. High value added, productive manufacturing is increasingly dynamic, sophisticated and innovative and requires investment in research and development. Statistics show that exports from R&D performing companies have increased from €44bn in 2003 to €111bn in 2011, while for non-R&D performing companies, exports decreased from €48bn to €30bn over the same period. IDA, whose client forms employ some 130,000 people, has transformed its investment profile with RDI projects increasing from €80m in 2004 to €700m in 2011 - representing some 50% of IDA investment wins.

Delivering further job creation opportunities is a key element of the Government’s strategy of accelerating the economic and societal return on our STI investment. Research Prioritisation will see the majority of competitive public research funding aligned with 14 priority areas where we are most likely to get economic returns, particularly in the form of jobs. Other initiatives include expanding the remit of Science Foundation Ireland to cover applied research; a new Intellectual Property Protocol which gives more clarity and certainty around ownership of IP emerging from state funded research; the establishment of a Central Technology Transfer Office to act as a one stop shop providing an effective interface between industry and the research community; and the R&D tax credit scheme which continues to encourage business to invest in research.

The Forfás Annual Employment Survey reports on job gains and losses in companies that are supported by Enterprise Ireland, IDA Ireland and Shannon Development. The survey does not measure jobs created in the categories of innovation and technology but rather in specific sectoral categories. As innovation and technology are aspects of employment across most sectors it is not possible, therefore, to disaggregate the information as sought by the Deputy.

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