Clare Daly (Dublin North, Socialist Party)
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110. To ask the Minister for Jobs, Enterprise and Innovation his views on whether the moneys spent by Enterprise Ireland and other such agencies justify the level of jobs created. [17471/14]

Richard Bruton (Dublin North Central, Fine Gael)
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I believe the Agencies under the aegis of my Department, Enterprise Ireland (EI), IDA Ireland and the CEB network, are performing very well in a challenging environment. They are driving a vital transition from an economy founded on property to one built on enterprise, exports and innovation. Their impact is measured by the gross job creation in enterprises supported by them, the net job movements across their portfolio as well as numerous agency specific key performance indicators which are regularly published. I am encouraged by the progress across almost all of these indicators at a time of declining staff in these Agencies.

As part of our overall strategy to have 100,000 people at work by 2016, under the 2014 Action Plan for Jobs IDA Ireland, Enterprise Ireland and the new Local Enterprise Offices, which from today will replace the CEB network, have been tasked with supporting a total of 30,500 direct new jobs during 2014. Enterprise Ireland will target the creation of 13,000 new fulltime permanent jobs in 2014. IDA Ireland will also target 13,000 new gross jobs in 2014 and work to win another 155 new FDI investment projects, with 20% of those from growth markets. In addition, a further 10,000 jobs (6,000 direct and 4,000 indirect) will be created over a five-year period through the recruitment of extra staff for IDA overseas.

In the past year, overall employment increased by 3.3% in year to Q4 2013. 2013 was the first year where every region demonstrated employment growth and there has been an increase of more than 1,200 jobs per week in the private sector compared to more than 1,600 per week being lost between 2008 and 2010.

The Forfás Annual Employment Survey 2013 shows employment in Enterprise Development agency-assisted companies at 303,155, an increase of 8,579 jobs in total permanent full-time employment. There was also an increase in part-time employment of 3,827 jobs to 46,167 in the same year. This continues the trend in positive employment growth since 2011.

Enterprise Ireland client companies are key contributors to the Irish economy and in 2012, spent €18.9bn on wages, services and materials sourced in Ireland. The Agency’s clients are vital components of the supply chains of many sectors and provide sub-supply opportunities for local businesses. For example, client companies in the Agri-Food sector process the produce of approximately 140,000 family farms annually. This impacts positively on local business by creating new opportunities for sub-supply, distribution, professional services, local domestic services etc. as part of the multiplier factor.

In 2012, IDA Ireland client companies also had a significant impact on the Irish economy, accounting for: €120.8bn of exports; €2.8bn of corporation tax; €1.3bn expenditure on R&D, and €20.8bn spend in the Irish economy comprising €8bn on payroll, €2.4bn on Irish materials, and €10.4bn on Irish services.

The total value of grants paid by Agencies of my Department in the years 2011-2013 amounted to €641m. This comprises €268m by IDA, €313m by Enterprise Ireland, €42m by the CEBs and €18m by Intertrade Ireland.

The Forfás Annual Business Survey of Economic Impact (ABSEI), which covers the period 2003–2012, shows that client companies of the Enterprise Development agencies reported a rise in sales and exports in 2012. Direct expenditure in the Irish economy in terms of payroll and purchases of Irish materials and services produced in Ireland increased by 3.8% to approximately €40.8bn in 2012. The results of this most recent survey show that the enterprise agency client companies continue to make a significant contribution to the Irish economy. Data for the most recent full year available, 2012, show that it was a successful year overall for enterprise agency client companies with increases in all the main economic indicators. Sales increased by 4.4%, exports by 5.1%, value added by 3.6% and direct expenditure to the economy increased by 3.8%.

These figures demonstrate the significant and positive contribution that both indigenous exporting companies and foreign-owned companies are making to the growth of the Irish economy. Considering that they have been achieved in the teeth of a serious recession, this news is particularly encouraging.