Written answers

Tuesday, 25 March 2014

Department of Jobs, Enterprise and Innovation

Action Plan for Jobs

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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452. To ask the Minister for Jobs, Enterprise and Innovation the reason the number of high potential and early stage start-ups to be supported by the State, as per Action 12 of the Action Plan for Jobs, has been set at 155; the way this figure was calculated; and if he will make a statement on the matter. [13157/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Action Plan for Jobs gives a clear mandate to Enterprise Ireland to drive entrepreneurship and new business start-ups. In direct response to the demands of entrepreneurs and client companies, Enterprise Ireland has continued to introduce new initiatives to provide the right support at the right time, at all stages along the start-up journey. From initial steps, developing the idea, testing the market, and on to raising HPSU funding, the priority is to support Irish entrepreneurs while they build strong and innovative new export businesses, and create jobs.

The number of High potential and early stage start-ups that are funded is the culmination of a high level of engagement by Enterprise Ireland with entrepreneurs to build their business proposition. The target number of 155 high potential and early stage start-ups in the Action Plan for Jobs 2014 was set in consultation with Enterprise Ireland, is a stretch level of activity and reflects Enterprise Ireland’s own internal targets.

In 2014 Enterprise Ireland through its Competitive Start Fund is targeting three new sources of entrepreneurs:

- Graduates;

- Entrepreneurs focussed on the aviation sector; and

- Entrepreneurs with ideas for new manufacturing technologies.

It is challenging, in advance, to gauge the number of potential applicants in these areas and the number of high potential projects that will emerge as they are new areas of focus for Enterprise Ireland. However, it is hoped that these will be a strong source of new entrepreneurs and additional high potential start-ups.

In addition to this support Enterprise Ireland provides advice to 1,300 early stage entrepreneurs and works intensively with over 350 pre seed start-ups to help them to build an investor ready business plan. While Enterprise Ireland will strive to exceed the target of 155 this specific company support should be looked at in the context of the wider suite of direct and indirect supports provided by Enterprise Ireland for its client base.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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453. To ask the Minister for Jobs, Enterprise and Innovation the reason for the nature of the intended extent of the expansion of the student enterprise awards as per Action 18 of the Action Plan for Jobs; and if he will make a statement on the matter. [13158/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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As part of an ongoing entrepreneurship marketing drive, Enterprise Ireland (EI) offers a €500 cash prize and a representative of Enterprise Ireland to sit on the evaluation panel of internal entrepreneurship competitions within Third Level institutes. This lets Enterprise Ireland gauge the standard of applications that can be brought forward to the national Student Enterprise Awards Programme and it also assists the Agency in promoting the national competition in the Third Level institutions.

The Third Level Student Enterprise Awards Programme is an annual programme run across the island of Ireland jointly by Enterprise Ireland (EI) and Invest NI, utilising private sector sponsorship. The programme is aimed at all Third Level colleges and seeks to encourage entrepreneurship amongst undergraduates. Prizes to the value of €60,000, via a combination of cash and mentoring, are awarded annually. Approximately 400 applications are received each year from individual students and student teams.

This academic year, Enterprise Ireland has increased the emphasis on identifying and nurturing Ireland’s future entrepreneurs in Third Level colleges by presenting directly to students and academics about its national competition, sponsoring the internal competitions in the institutes, having a presence at Enterprise Weeks in the Third Level institutions, engaging with student unions and entrepreneurship societies, surveying previous finalists to see how EI could change the competition in the future to make it stronger, and finally, emphasising to students that starting their own business after graduation is a real career option for them.

The competition is fully built around developing student teams into start-ups, especially with help and consultancy of the sponsors, such as Enterprise Ireland and Invest NI mentoring and funding packages, Cruickshank Intellectual Property Consultants who mentor the student teams around protecting and patenting their ideas, Intel help student teams develop ICT ideas and Grant Thornton help the teams with finance/accounting concerns they may have. A marketing campaign, linked to a dedicated website - () - and new application formats (video and social media), have been introduced for this year’s programme. This is being complemented by on-campus promotion by EI Regional Teams across the country.

The closing date for the submission of business ideas on video was Monday 17 March 2014. The entries received will be shortlisted with 50 entries being invited to submit a business plan. These plans will be assessed and 10 finalists will be selected for final judging and participation in the closing ceremony in the week commencing 9 June 2014.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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454. To ask the Minister for Jobs, Enterprise and Innovation if he will provide a statistical analysis on the expected 10,000 new jobs to be created over five years by the Industrial Development Agency Ireland as per Action 29 of the Action Plan for Jobs; the specific sectors in which these jobs are expected to be created; and if he will make a statement on the matter. [13159/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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One of the three new Disruptive Reforms introduced in the Action Plan for Jobs 2014 is the “Winning Abroad” initiative to be delivered by IDA Ireland. The key objective of the initiative is to deliver an additional 10,000 jobs (6,000 direct and 4,000 indirect) in a five year period, over and above the existing targets in set out in the Action Plan.

Government has provided additional funding to IDA Ireland to enable the Agency to engage additional staff in overseas locations to capitalise on opportunities for Ireland to win additional and new forms of FDI.

The principal objectives of the programme are to:

- Broaden the geographic base from which IDA Ireland currently wins investment including enhanced levels of FDI from growth markets such as the Middle East, Turkey and South Africa;

- Develop and bring to the market a range of value propositions for new forms of FDI in areas such as marine services, oil and gas;

- Focus on more export intensive investments whilst also assisting in areas such as ICT, Life Sciences, Consumer & Financial Services and Clean Tech.

In addition to the 6,000 direct jobs that are expected to be created in FDI companies arising from these actions, IDA Ireland estimates that an additional 4,000 indirect jobs will also be created elsewhere in the economy in supply and service businesses using a conservative multiplier of 0.7 indirect jobs for every direct job created.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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455. To ask the Minister for Jobs, Enterprise and Innovation the reason his Department suggests rolling out Enterprise Ireland's market access grant to 35 companies; the way this figure was arrived at, as per Action 31 of the Action Plan for Jobs; and if he will make a statement on the matter. [13160/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Market Access Grant is an important financial support from Enterprise Ireland to assist companies to build their business in international markets. It is one of a number of supports provided by Enterprise Ireland to support the achievement of international sales. These supports complement Enterprise Ireland’s international office network, which has access to more than 60 countries worldwide, through which Enterprise Ireland can support Irish companies in the market place.

This grant is designed to assist clients to develop viable marketing strategies in target markets. The Market Access Grant supports a client to undertake all the activities from initial market research to developing insights to the relevant market prior to a market launch. The client may receive funding in respect of:

- New staff assigned to the project;

- Staff re-assigned to the project;

- Consultant(s) to undertake the project;

- Marketing costs up to market launch

The grant is available only to companies:

- Entering a new geographic market;

- Entering an existing market with a new product/service

The Market Access Grant was piloted to a small number of companies last year and the agreed target for 2014 stretches that level of activity and reflects Enterprise Ireland’s own internal targets for company capability development and export sales. There is no doubt that Enterprise Ireland will strive to exceed this target however this specific company support should be looked at in the context of the wider suite of direct and indirect supports provided by Enterprise Ireland for its client base.

If Irish owned companies are to continue to achieve an increase in the diversity and quantum of Irish exports I believe that it is very important that companies are supported to undertake informed research to assess the potential of a new product or service in an existing market or an existing product or service in a new geographic market.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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456. To ask the Minister for Jobs, Enterprise and Innovation the number of companies in the manufacturing and services sectors to be supported by the Industrial Development Agency through its client transformation programme has been set at 70 as per Action 48 of the Action Plan for Jobs; and if he will make a statement on the matter. [13161/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Foreign Direct Investment (FDI) has been, and will continue to be, an integral part of Ireland’s economic development strategy. Foreign owned firms have a strong impact on the Irish economy by contributing substantially to Ireland’s exports, jobs, expenditure in the Irish economy and to Exchequer funds. IDA Ireland client companies are responsible for over 161,000 jobs and are a catalyst for an additional 100,000 jobs in the wider economy. For every 10 jobs created in multinational companies approximately 7 jobs are created elsewhere in the economy in supply and service businesses.

In addition to winning new name FDI for Ireland, IDA Ireland recognises the important role of the existing base of foreign owned firms as approximately 70% of FDI investments come from the existing client base. A key aspect of IDA Ireland’s focus is developing and deepening the impact of FDI through the organisation’s Client Transformation Programme. This involves wide-ranging engagement and influencing of senior management of existing FDI facilities in Ireland and with corporate leaders overseas, seeking to widen and deepen the mandate and functions of the Irish-based facilities. To assist companies engage in a transformation programme, IDA Ireland offers a range of supports such as technology uplifts, skills enhancement, energy improvements, productivity uplift and investments in new facilities and equipment. This is a vital activity as positive outcomes further embed existing investors, thus providing long term employment which is often in important regional locations as illustrated by recent transformation investments by Hewlett Packard in Galway and GSK (Stiefel) in Sligo.

As per the Action Plan for Jobs, in 2014 IDA will support 70 companies in manufacturing and services through the above Client Transformation Programme.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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457. To ask the Minister for Jobs, Enterprise and Innovation if he will provide more information on the targeted call for innovation vouchers in the manufacturing sector; and the way this will be implemented as per Action 61 of the Action Plan for Jobs. [13162/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Action Plan for Jobs 2014 contains a number of specific actions that will support the manufacturing sector in Ireland including the introduction of a targeted Call for Innovation Vouchers for the sector.

In order to increase the levels of innovation, competitiveness, and the long term sustainability of the manufacturing sector it is critical that manufacturing firms increase their levels of R&D. Collaboration with higher education institutes represents an important opportunity to leverage the wealth of experience, skills and resources in the higher education system while also being eligible for support under many of Enterprise Ireland’s collaborative research funding instruments.

One such support is the Enterprise Ireland Innovation Voucher Initiative which is designed to drive an on-going innovation cultural shift within small enterprise by promoting and encouraging a transfer of knowledge between Ireland’s public knowledge providers and the small business community and creating greater synergies between the two. Under the initiative, vouchers worth €5,000 are allocated to small businesses in order to work with higher education knowledge providers on specific innovation questions. As part of the Action Plan for Jobs it was decided that this instrument could be used to introduce relevant manufacturing companies to the benefits of collaborative R&D with a higher education research provider.

Enterprise Ireland are currently planning a targeted promotion campaign to highlight the Innovation Voucher programme as vehicle to encourage manufacturing companies, with the aid of higher level research providers, to explore manufacturing related R&D solutions for their businesses. It is expected that this call will be launched in Q4 2014.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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458. To ask the Minister for Jobs, Enterprise and Innovation the nature of the targeted call for innovation vouchers in the area of data analytics; and the way this will be implemented as per Action 67 of the Action Plan for Jobs [13163/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Big Data and Data Analytics represent a huge growth opportunity for Ireland. Building on initiatives and investments made in 2013, the Action Plan for Jobs 2014 contains a number of further actions aimed at helping to give Ireland a leadership position in these areas including a targeted Call for Innovation Vouchers in the area of data analytics.

The Innovation Voucher initiative has proven to be a very useful tool in encouraging companies to embark on initial innovation projects and to collaborate with higher education research groups. The objective of the Enterprise Ireland Innovation Voucher Initiative is to drive an on-going innovation cultural shift within small enterprise by promoting and encouraging a transfer of knowledge between Ireland’s public knowledge providers and the small business community and creating greater synergies between the two. Under the initiative, vouchers worth €5,000 are allocated to small businesses in order to work with higher education knowledge providers on specific innovation questions.

As part of the Action Plan for Jobs 2014 it was decided that this instrument could be used to introduce relevant companies to the opportunities represented by effective use of data analytics. Enterprise Ireland are currently planning a targeted promotion campaign to highlight the Innovation Voucher programme as a vehicle to encourage companies, with the aid of higher level research providers, to explore specific data analytics solutions for their businesses. It is expected that this call will be launched in Q3 2014.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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459. To ask the Minister for Jobs, Enterprise and Innovation the progress being made in identifying policy options to address the competitiveness challenges facing the business sector in Ireland as per Action 92 of the Action Plan for Jobs; and if he will highlight some of these options. [13165/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Ireland’s competitiveness performance has improved in recent years, as reflected in our enhanced position in international competitiveness rankings. For example, Ireland has moved up to 17th place in the IMD’s World Competitiveness Yearbook 2013, having being ranked 24th only two years ago. Ireland is ranked 15th in the World Bank’s Doing Business 2014 Report and was recently named by Forbes magazine as the “Best Country for Business”.

However, we cannot become complacent about our competitive position; many firms are still confronted with high costs which make it difficult for them to grow, create jobs and compete internationally. The 2014 Action Plan for Jobs, which was published at the end of February, places a particular focus on improving competitiveness in all areas of economic activity and contains a range of specific measures aimed at delivering further improvements in our international competitiveness performance. These measures include regular monitoring of the competitiveness agenda by the Cabinet Committee on Economic Recovery and Jobs, which will report to the Government on a quarterly basis on these issues.

The National Competitiveness Council (NCC), which is an independent body, also has a key role to play in monitoring Ireland’s competitiveness and reports to the Government on key competitiveness issues facing Irish enterprises.

Each year, the NCC publishes Ireland's Competitiveness Scorecard, which benchmarks Ireland's competitiveness performance against a number of our key competitor regions. The Council also publishes Ireland's Competitiveness Challenge which focuses on the competitiveness issues of most importance to the enterprise sector. The report also identifies policy recommendations required to address these issues.

Action 92 in the 2014 Action Plan for Jobs refers to the publication of the Competitiveness Challenge. This report is scheduled to be published in the final Quarter of the year. However, the NCC meets regularly throughout the year to consider the competitiveness agenda and develop its reports. It is supported in its work by Forfás.

Other measures in the Action Plan for Jobs include improving our cost competitiveness, supporting competitive regions, aligning skills with enterprise needs and using research and innovation to drive job creation.

The implementation of these actions, combined with the Government’s exit from the Troika programme and its return to international funding markets, will play a key role in improving our competitiveness further and realising our ambition of making Ireland the best small country in which to do business.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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460. To ask the Minister for Jobs, Enterprise and Innovation when the report on restrictions on competition in sheltered areas of the economy might be expected, as has been outlined in Action 93 of the Action Plan for Jobs; and if he will make a statement on the matter. [13166/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Publication of any analysis or study under Action 93 will take place by Q4 of 2015 at the latest. The timelines for this Action, and all other Actions, are set out in the Table of Actions document which accompanies the Action Plan for Jobs 2014 document.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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461. To ask the Minister for Jobs, Enterprise and Innovation if tenants for proposed regionally based manufacturing facilities being built by the Industrial Development Agency in Waterford, Athlone and Letterkenny have been already found as per Action 114 of the Action Plan for Jobs; and if he will make a statement on the matter. [13168/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Under the Industrial Development Acts, the management of IDA Ireland’s property portfolio, including the provision of buildings for client companies, is a day to day operational matter for the Agency and not one in which I have a function.

I am informed by IDA Ireland that the Agency has identified a number of locations where the private sector is unable currently to develop property solutions and in order to boost regional development and win new business, IDA proposes to build advanced manufacturing facilities in Waterford and Athlone and office space in Letterkenny These locations have been chosen on the basis of projected opportunities, which IDA are competing to win for Ireland, thus resulting in appropriate solutions for such opportunities. I understand from IDA Ireland that it will continue to assess the requirements in other regional locations on an ongoing basis.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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462. To ask the Minister for Jobs, Enterprise and Innovation the reason the collaborative research projects between industry and academia has been set at 825 as per action129 of the Action Plan for Jobs; and if he will make a statement on the matter. [13169/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Enterprise Ireland operates a range of supports to help companies engage with third level researchers to undertake collaborative research for the benefit of the company. In this way Irish companies can leverage the wealth of experience, skills and resources in the higher education system in a cost effective and even cost-free way depending on the most appropriate support. Enterprise Ireland’s collaborative supports are scaled and tailored to meet the varying needs of industry and range from small €5,000 Innovation Voucher projects to larger Innovation Partnership projects which can provide support of up to €200,000. Enterprise Ireland also plays a critical role in helping Irish companies and researchers engage in international research under the European Union’s almost €80 billion Horizon 2020 programme.

The 2014 target of 825 supported collaborative research projects between industry and academia was set by Enterprise Ireland based on its experience of working with industry and in supporting collaborative research, and also in cognisance of the expected levels of demand from industry and the capacity of the research system to undertake the number of projects.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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463. To ask the Minister for Jobs, Enterprise and Innovation if he will provide an update and details on the proposed partnership between Science Foundation Ireland and the Department for Employment and Learning Northern Ireland, as per action 142 of the Action Plan for Jobs, and which was due to be undertaken during the first quarter of 2014; and if he will make a statement on the matter. [13170/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Action 142 in the Action Plan for Jobs 2014 calls for the development of strategic partnerships with major stakeholders in Northern Ireland. In terms of delivering this Action, a Quarter 1 2014 timeline was given to Science Foundation Ireland (SFI) to develop a partnership with the Department for Employment and Learning Northern Ireland (DELNI).

This Action has been delivered on time. On 22 January 2014 SFI and DELNI formally signed a Memorandum of Understanding in Armagh. The two organisations have agreed to the implementation of a co-funding partnership as a component of the Science Foundation Ireland Investigators Programme (IvP) call.

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