Written answers

Thursday, 16 July 2015

Department of Jobs, Enterprise and Innovation

Job Creation

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party)
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299. To ask the Minister for Jobs, Enterprise and Innovation the way his Department has attempted to increase job creation through the Action Plan for Jobs; the number of jobs expected to be created in 2015; and if he will make a statement on the matter. [30305/15]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The goal of this Government has been to replace all of the jobs lost during the economic crisis and deliver sustainable full employment by the end of 2018. This whole of Government effort has been integrated into the Action Plan for Jobs process which aims to strengthen the enterprise base, support entrepreneurship and start-ups, regain Ireland’s lost competitiveness and ensure the potential of the regions for development and job creation through Action Plan for Jobs – Regional is fully realised, supported by competitive regional funds.

The Action Plan for Jobs complements the Government’s Pathways to Work which set outs actions to be taken in support of those that are currently unemployed in order to help them access the labour market and new job opportunities.

Action Plan for Jobs 2015, the fourth such Plan, was launched in January 2015 and as well as building on reforms in previous years introduces new areas of focus such as: the National Talent Drive which aims to improve the employability of all and ensure that work always pays; and new sources of employment growth such as Energy Innovation, Intellectual Property and Design.

The Action Plan for Jobs process is working. Over 104,000 more people are at work since the first plan was launched at the start of 2012 and unemployment has fallen to 9.7% in June 2015. Action Plan for Jobs 2015 commits to 40,000 additional jobs this year. IDA and Enterprise Ireland have specific targets for 27,000 new jobs in 2015.

To achieve our ambition of sustainable full employment, the 2015 Action Plan for Jobs sets out a comprehensive range of measures to support entrepreneurship, SMEs and the self-employed in the areas of education and research, business environment and supports, innovation and access to finance, networks and mentoring, and access to markets. Our key priority is driving implementation of the actions in the National Entrepreneurship Statement, which was published in October last year and to achieve the ambitions targets set out for a 25 per cent increase in the number of start-ups and in the scaling and sustainability of new enterprises.

The launch of the Local Enterprise Offices (LEOs) was a major reform delivered in 2014 and in 2015 the LEOs will have ambitious and robust county strategies and targets for start-ups, enterprise engagements and supports to be effective first-stop-shops for enterprise information. Enterprise Ireland’s support system for young companies includes help with business planning, mentoring and development advice, feasibility funding and finance, often in the form of equity investment, as appropriate to the founder’s ambitions and the company’s potential and stage of growth. My Department through its agencies will build on the 2014 success of the awards programmes such as Ireland’s Best Young Entrepreneur with a renewed programme for 2015.

The launch of the simplified Startup Refunds for Entrepreneurs Scheme (SURE) in 2015 will provide additional finance for entrepreneurs. In many cases the lack of a first reference sale is a key barrier to accessing funding at an early stage. Early intervention through entrepreneur development programmes such as New Frontiers and other programmes help companies accelerate their business development. EI will support 130 new Entrepreneurs via the New Frontiers programme in 2015.

Improving our competitiveness remains a key focus of my Department and Government. The National Competitiveness Council’s Costs of Doing Business in Ireland 2015 report shows that Ireland’s cost base has improved across a range of metrics over the last five years, and driven by reforms set out in the Action Plan for Jobs, Ireland’s competitiveness position has improved in recent years. As noted in the Government’s Spring Economic Statement, this improvement in competitiveness has facilitated a reallocation of resources towards the tradeable sectors of the economy. To sustain employment growth, there is a role for both the public and private sectors alike to proactively manage their cost base and drive efficiency, thus creating a virtuous circle between the costs of living, wage expectations and cost competitiveness.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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300. To ask the Minister for Jobs, Enterprise and Innovation if he is aware of the need to provide much needed additional job opportunities throughout County Monaghan; the proposals his Department and the State's industrial promotion agencies have to assist in job creation, and in the maintenance of existing employment; and if he will make a statement on the matter. [30334/15]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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301. To ask the Minister for Jobs, Enterprise and Innovation if he is aware of the need to provide much needed additional job opportunities throughout County Cavan; the proposals his Department and the State's industrial promotion agencies have to assist in job creation, and in the maintenance of existing employment; and if he will make a statement on the matter. [30335/15]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 300 and 301 together.

In general, the Government’s approach to supporting job creation at regional level is through the new Action Plan for Jobs: Regional initiative. Since the start of the national Action Plan for Jobs process in 2012, employment across the economy as a whole has increased, and has exceeded the Government’s initial target of having 100,000 people at work by 2016.

However, we are conscious that not all regions are yet fully experiencing the benefits of the recovery. To accelerate progress on the jobs agenda in the regions, last February, the Government announced details of the Action Plan for Jobs: Regional initiative which seeks to build on the existing strengths and assets of each region to maximise enterprise growth and job creation. This initiative will see Action Plans drawn up for eight regions. Cavan and Monaghan are included in the Border Region.

The first two regional Action Plans for Jobs, covering the Midlands and the South West regions, were published in the last number of weeks. My Department is continuing to work on the finalisation of a number of further regional Action Plans which will be launched shortly, including the Plan for the Border region. The Plan will focus on building the enterprise base across the region as a whole and there will be an emphasis on collaboration across counties to maximise the potential of the region.

In terms of direct job creation by my Department’s agencies, Enterprise Ireland activity is focused on working with established companies in its portfolio and supporting entrepreneurs in manufacturing and internationally traded services companies who are setting up high potential start-up companies. In 2014 Enterprise Ireland client companies created 394 full-time jobs in County Cavan and 382 full-time jobs in County Monaghan. To date in 2015, Enterprise Ireland has assisted two major investments, in 2015, Lakeland Dairies’ expansion of milk powder processing operations at Bailieboro and Combilift’s investment programme and new jobs in Monaghan.

Regional development is a major component of IDA Ireland’s new corporate strategy entitled “Winning: Foreign Direct Investment 2015-2019”. For the first time ambitious investment targets have been set for each region, with a strong focus on securing an increased share of investments. IDA client companies in the Border region now employ 9,734 people and include leading companies in the Engineering, Life Sciences, Financial and Services sector. IDA secured 47 projects for the Border Region over the past 5 years (2010-2014). A 30% to 40% uplift in projects would result in 61 to 66 projects for the region for the coming five years.

Counties Cavan and Monaghan are marketed by IDA as part of the North East Region and in 2014 there were 36 IDA clients in the Region. IDA Ireland continues to engage with all existing companies in its portfolio to influence, drive and support transformation initiatives designed to ensure longevity of investments and ongoing growth and job creation within the client base. IDA will consider all opportunities to leverage its property portfolio in smaller population centres like Cavan and Monaghan in order to facilitate investment and job creation.

The Local Enterprise Offices (LEOs) are the “First-Stop-Shop”service assisting in delivering start-ups and growth in the micro-enterprise sector in every County. The Cavan and Monaghan LEOs offer a range of supports and advice to anyone interested in starting or expanding a business. Further information can be found on the LEO website at .

At the end of 2014 there were 1,049 jobs in LEO client companies in Cavan with jobs growth of 108 in 2014, and there were 904 jobs in LEO client companies in Monaghan with jobs growth of 61 in 2014.

Each LEO can, subject to criteria, offer financial support to manufacturing and internationally traded services, as well as a suite of other supports to start-up and existing business including training, mentoring, access to loans by Micro Finance Ireland and trading on-line vouchers.

In addition to the normal suite of financial supports, the LEOs in every county are running Ireland’s Best Young Entrepreneur 2015, with an investment fund of up to €50,000 available to three category winners i.e. Best Business Idea, Best Start-Up Business and Best Established Business.

I am confident that the policies pursued by the State agencies and the Local Enterprise Offices will continue to support enterprise development and lead to an increase both in job creation and in entrepreneurial activity across Cavan and Monaghan throughout 2015 and beyond.

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