Written answers

Thursday, 12 February 2015

Department of Jobs, Enterprise and Innovation

Job Creation Targets

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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102. To ask the Minister for Jobs, Enterprise and Innovation to outline the extent to which he expects to be in a position to encourage and facilitate job creation through the aegis of small and medium-sized enterprises in the manufacturing and services sectors in the next 12 months; the degree to which current indicators remain positive in this regard; and if he will make a statement on the matter. [6548/15]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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108. To ask the Minister for Jobs, Enterprise and Innovation to outline the total number of jobs he expects to be created in the services and manufacturing sectors over the next three years on an annual basis; and if he will make a statement on the matter. [6555/15]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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111. To ask the Minister for Jobs, Enterprise and Innovation to set out the degree to which he expects job creation in the manufacturing and the services sectors to grow in County Kildare over the next four years; and if he will make a statement on the matter. [6558/15]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 102, 108 and 111 together.

The Strategy for the Manufacturing Sector, which I commissioned, and which was published in April 2013, identified that an additional 20,000 jobs can be created in the sector by 2016. A complementary report on the skills needs for the sector, which I had commissioned at the same time, was published by the Expert Group on Future Skills Needs and Forfás, and it identified a series of actions to enhance skills in the sector.

Arising from the Manufacturing Strategy and the Skills Report, there are now a range of initiatives in hand by relevant Agencies to drive the 2016 target, with key actions from both reports having been incorporated into the Action Plans for Jobs for 2013 and 2014. Developing manufacturing was adopted as a Disruptive Reform in the 2014 Plan. One of the key actions there is the delivery of a National Step Change initiative to strengthen Ireland’s manufacturing base across all firms engaged in manufacturing i.e. small and medium-sized firms and larger multinationals, particularly in higher-value sub sectors such as chemicals, pharmaceuticals, medical devices and food. In addition a wide range of training and educational initiatives are underway by the relevant providers, such as Skillnets.

A suite of measures designed to support industry growth across a span of sectors, including both Manufacturing and Services, are set out in the new Action Plan for Jobs 2015 which I launched recently, and include encouraging entrepreneurship and supporting start-up activity, further improving our skills base, assisting our businesses to grow, improved access to finance by SMEs and developing and deepening opportunities from global investment.

As a small open economy, Ireland is impacted by global economic cycles and shifts in competitiveness worldwide. In the case of manufacturing, lower labour costs in Asia have, for many years had a significant impact on the production of lower value goods with high labour element, but Government policy has pursued the development of higher value areas. Since the advent of the recession, Ireland’s competitiveness has improved, as shown by our rise in International rankings, as various costs have been reduced. Overall trends are very positive. The Annual Employment Survey shows a rise in employment in Agency supported manufacturing companies of over 3,300 between 2011 and end 2013, (2014 sectoral data is not yet available). The latest data for Agency –supported Internationally Trading Services companies show a rise of over 14,000 in the same period. Other Services sectors in the domestic economy, which are outside the remit of the Development Agencies, have also shown significant growth in employment in recent years.

It would not be appropriate to set individual targets on a county basis, so specific data for Kildare, as requested by the Deputy is not available. However, right across the country, both IDA Ireland and Enterprise Ireland are working with both existing and prospective new client companies especially with manufacturing and services companies, with consequent job creation and retention.

2014 was a very productive year for expansion in both Foreign and Indigenous Agency-supported companies, with IDA having created a net increase of 7,131 jobs and Enterprise Ireland having created a net increase of 8,476 jobs in their client companies. In relation to developing the SME sector, in addition to the work of Enterprise Ireland, the new Local Enterprise Offices ( LEOs) are working to develop the smaller businesses and helping them to grow and prosper.

To ensure a better spread of industrial development in the regions, I have initiated the development of new Regional Strategies, to be rolled out this year and I am hopeful that this new approach will help to reinvigorate the industrial base of areas which are away from the main urban centres. The Government are therefore committed to strong job creation in all regions of the country. This policy is already working – for example the Mid-East region, which includes Country Kildare, has seen its unemployment rate reduced from 13.8% to 10.7% in the last 2 years alone. The overall National Unemployment rate continues to fall and now stands at 10.5%, a dramatic improvement on the position which pertained just a few years ago, after this Government took office.

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