Written answers

Wednesday, 5 April 2017

Department of Jobs, Enterprise and Innovation

Job Creation

Photo of Tony McLoughlinTony McLoughlin (Sligo-Leitrim, Fine Gael)
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336. To ask the Minister for Jobs, Enterprise and Innovation the steps she is taking to attract foreign direct investment and indigenous investment to the manufacturing and service sectors here, in view of the triggering of Article 50 (details supplied); and if she will make a statement on the matter. [16910/17]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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At the strategic level, Enterprise 2025 sets out the roadmap for enterprise development, and details the actions required and being taken to support the manufacturing and service sectors.  Our new trade and investment strategy, Ireland Connected, will be backed up by increasing our agency resources both at home and overseas and an intensified programme of trade missions.

Responding to Brexit, which has particular implications for border counties, has also been prioritised in the Action Plan for Jobs 2017 which sets out 20 specific actions aimed at growing and diversifying markets for Irish exports and maximise opportunities in foreign direct investment and research and innovation. 

In addition to protecting the Northern Ireland Peace Process, maintaining the Common Travel Area, and influencing the future of the European Union, we have made it a priority to minimise the impact of Brexit on Ireland's trade and on our economy.  Supporting the development and growth of indigenous companies and maximising Foreign Direct investment are key activities of my Department and Agencies.

Almost 50 additional staff are being deployed by my Agencies to support firms to enter new markets and to attract new investment.

Enterprise Ireland is working with firms to support product and service innovation, the adoption of lean systems, smarter sourcing strategies and, crucially, the identification of new overseas markets. Enterprise Ireland will shortly launch its new Eurozone strategy, with the aim of increasing indigenous exports to the Eurozone by 50% over the period to 2020. In addition, we are engaging with companies to help them adapt to currency fluctuations and to support product and market diversification. The Local Enterprise Offices are working with non-EI client companies providing support and advice services as well as bespoke services to foster new business opportunities in local areas.

IDA continues to identify potential for mobile FDI in key sectors and actively pursue these opportunities including through targeted trade missions and roll-out of advertising campaigns to promote Ireland’s offering.

My Department is currently undertaking research to examine the implications at firm-level for the most exposed enterprise sectors of the UK being outside of the European Single Market and Customs Union. This research will inform an assessment of the way in which Brexit will affect individual sectors of the economy and our targeted response. I am also engaging with stakeholders across the country to assess the implications for different regions and sectors. On 30 January, I hosted a major stakeholder event in  Carrick-on-Shannon to facilitate a dialogue with stakeholders about the impacts, challenges and opportunities arising as a result of the UK decision to leave the EU, across the broad range of policy areas for which the Department is responsible.

Further, my Department is also funding a project through InterTrade Ireland on the North-South trade implications of Brexit. This project will provide an understanding of the impact of different trade and tariff regimes which might be imposed following Brexit.

Photo of Tony McLoughlinTony McLoughlin (Sligo-Leitrim, Fine Gael)
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337. To ask the Minister for Jobs, Enterprise and Innovation the steps she is taking to make contact with prospective investors inside and outside the European Union with a view to ensuring a strong and vibrant economy post-Brexit and the triggering of Article 50 (details supplied); and if she will make a statement on the matter. [16911/17]

Photo of Tony McLoughlinTony McLoughlin (Sligo-Leitrim, Fine Gael)
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338. To ask the Minister for Jobs, Enterprise and Innovation the steps she is taking to continues to encourage and avail of job creation opportunities based on innovation and technology here and especially in regards to counties Sligo and Leitrim; and if she will make a statement on the matter. [16912/17]

Photo of Tony McLoughlinTony McLoughlin (Sligo-Leitrim, Fine Gael)
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339. To ask the Minister for Jobs, Enterprise and Innovation the steps she is taking to continue to compete for foreign direct investment with particular reference to job relocation arising from Brexit and the triggering of Article 50 here and especially in the Border region and counties Sligo and Leitrim; and if she will make a statement on the matter. [16913/17]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I propose to take Questions Nos. 337 to 339, inclusive, together.

Foreign Direct Investment (FDI) remains a key contributor to Ireland’s continuing economic development and growth. The role it plays in sustaining employment here is well-documented, with approximately one out of every five private sector jobs here directly or indirectly resulting from FDI.  Last year saw the highest ever level of employment in IDA Ireland client companies, with 199,877 people now employed in companies supported by the Agency, including 2,703 jobs across 27 IDA Ireland client companies in Sligo and Leitrim. 

IDA markets Sligo and Leitrim as part of the North West region, along with Donegal. The main FDI activity clusters that have been developed in the North West are in the life sciences and engineering sectors. IDA continues to promote the region to prospective investors from both those and other sectors.

The Regional Action Plan for the North East/North West represents the wider strategy for increasing employment in the region.  This plan aims to support the creation of 28,000 new jobs across Donegal, Sligo, Leitrim, Cavan, Monaghan and Louth by 2020. Significant progress has been made to date towards that objective, with 5,600 more people in employment across the region since the start of 2015.

More broadly, the Government is focussed on ensuring that Ireland is best placed to capitalise on whatever foreign direct investment (FDI) opportunities may emerge on account of Brexit. That is why significant additional funding has been provided to IDA Ireland to help the Agency better respond to the challenges and opportunities Brexit may present for each and every county of Ireland. I also regularly engage with the IDA about its Brexit-related requirements and other issues in connection with securing new investment for Ireland.

Photo of Tony McLoughlinTony McLoughlin (Sligo-Leitrim, Fine Gael)
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340. To ask the Minister for Jobs, Enterprise and Innovation the steps she is taking to support the creation of jobs through the indigenous sector both in terms of traditional industry and innovative proposals in counties Sligo and Leitrim; and if she will make a statement on the matter. [16914/17]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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My Department, through Enterprise Ireland (EI) and the Local Enterprise Offices (LEOs) provide a range of supports to help Irish companies start, grow and export.  There are now over 201,000 people employed by EI supported companies across the country. The fact that over 130,000 of those 201,000 jobs are outside of Dublin is significant.  Enterprise Ireland client companies support a total of 1,546 jobs in Sligo and 922 jobs in Leitrim.

The objective of Enterprise Ireland’s new ‘Global Ambition’ Strategy 2017-2020 is to support enterprises across the economy, to grow into strong Irish international companies, developing world-leading products and services and exporting them all around the world.

There is a vast range of programmes and supports offered to companies to drive this strategy. These include management capability, leadership and marketing/sales skills as well as promoting innovation and R&D.  Investment in these areas is becoming more important as the demands of the marketplace evolve and become tougher.

In terms of supporting traditional industry, my view is that manufacturing in Ireland is still, and will always be, an essential part of a well-balanced economy.  Our manufacturers have innovated and moved with the times – and they will continue to do so.  Advances in ICT, new materials, biotechnology, fuels, and nanotechnology offer scope for continuous innovation in manufacturing. Together with the opening up of world markets, these advances offer great opportunities for Irish manufacturers.

Manufacturing today is not just about making things anymore. It’s about finding solutions for a more sophisticated and demanding range of customers. It includes research, design, maintenance, sales and marketing, logistics and distribution too.  The best way to protect and increase manufacturing jobs is to compete with excellent products and services, using high technology, drawing on design, innovation and our strong science base.

We are placing a particular focus on encouraging startups and small businesses to embrace the culture of innovation that now exists and maximise the benefits of technology.

My Department also ensures that companies can access the right type of funding, appropriate to their stage of development. This ranges from microfinance right through to seed and venture capital, development capital and risk-sharing credit guarantees through the banks.

Enterprise Ireland’s activity across all sectors of the economy is supporting a total of 400,000 directly and indirectly supported jobs.

Furthermore, our 8 Regional Action Plans for Jobs are building on the jobs potential of each region. At local level, the LEOs, supported by EI, are supporting indigenous businesses and entrepreneurs in every county.  There has been a number of recent LEO events in Sligo, Leitrim, Donegal and Cavan to highlight the key areas where clients may be exposed and to provide direction in how they might address these.

I am currently finalising plans for a regional initiative of up to €60m to support collaborative approaches to grow and sustain indigenous enterprise and jobs across the regions. This will be administered by Enterprise Ireland.

Photo of Tony McLoughlinTony McLoughlin (Sligo-Leitrim, Fine Gael)
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341. To ask the Minister for Jobs, Enterprise and Innovation the steps she is taking to promote and support job creation through the small business sector with particular reference to the need to ensure the minimisation of practices likely to impede small businesses in counties Sligo and Leitrim; and if she will make a statement on the matter. [16915/17]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The Local Enterprise Offices (LEOs) and Enterprise Ireland (EI) are the main Agencies under the auspices of my Department that offer advice and support to the small business sector.

The LEOs are the ‘first-stop-shop’ State support service for micro and small businesses in each local area. The LEOs provide advice and direction, covering all government supports and requirements, to anyone who wishes to start or expand a business.

The LEOs can also provide funding for projects that meet certain criteria, generally with regard to export potential, and other non-financial supports such as training and mentoring. Businesses should contact their local LEO.

The Sligo and Leitrim LEOs are fully engaged in supporting the micro-enterprise and small business sectors in their areas to create and sustain jobs. In 2016, the number of jobs in micro-enterprises that had been supported by LEO Sligo and LEO Leitrim were 1,095 and 422 respectively.

Contact details and further information on the services available from the LEOs, including soft supports such as training and mentoring, can be accessed atwww.localenterprise.ie.

Enterprise Ireland works in partnership with Irish enterprises to help them start, grow, innovate and win export sales in global markets. They provide funding and supports for companies - from entrepreneurs with business propositions for a high potential start-up through to large companies expanding their activities, improving efficiency and growing international sales. Availability of all EI supports are communicated viawww.enterprise-ireland.comaand also through EI’s Development Advisors, EI Regional Offices and through public calls for applications.

EI companies currently support 1,546 and 922 jobs in Sligo and Leitrim respectively. EI job announcements in 2016 in the North West included LotusWorks (50 jobs in Sligo) and VistaMed (200 jobs in Leitrim).

In the area of access to finance, a range of initiatives has been introduced - from Microfinance Ireland to the Strategic Banking Corporation of Ireland and from the Credit Guarantee Scheme to the Ireland Strategic Investment Fund - and continued investment in seed and venture capital through Enterprise Ireland. These initiatives remain available and accessible to business and continue to provide increased access to credit and finance for Irish enterprise.

Micro and small enterprises can also access information on over 170 different Government supports that are available for Irish based start-ups and small businesses via the Supporting SMEs online tool. The online tool is a cross-governmental initiative to help start-ups and small businesses navigate the range of Government supports available. By answering the eight quick questions in the online tool, micro and small businesses will, in one location, be able to: 

- Find out which of the over 170 Government business supports from 27 different Government Departments, Agencies and Initiatives are available to them; and

- Obtain information on the range of Government supports for accessing credit.

The online tool is an initiative developed under the Action Plan for Jobs and is available at: www.supportingsmes.ie.

Photo of Tony McLoughlinTony McLoughlin (Sligo-Leitrim, Fine Gael)
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342. To ask the Minister for Jobs, Enterprise and Innovation the steps she is taking to compete for job creation opportunities inside and outside the EU for Irish citizens, particularly in anticipation of Brexit and the triggering of Article 50; and if she will make a statement on the matter. [16916/17]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The Government has already taken a number of important initiatives, including in bolstering the capacity of our enterprise agencies to maximise job creation opportunities inside and outside the EU.

The recently published Action Plan for Jobs 2017 builds on this with specific measures to:

- support enterprises, particularly those most dependent on UK markets

- identify and target new markets

- assist Irish businesses expand and scale and

- help position Ireland to benefit from new opportunities that arise.

The Government has just published a new trade and investment strategy which is supported by an extensive programme of ministerial-led trade missions, as part of a major drive towards market diversification.

Enterprise 2025 continues to provide a solid roadmap for longer-term enterprise development with a focus on building the resilience of the enterprise base, export-led growth and job creation. In anticipation of the type of strategic exercise that may be needed to restate or reposition our global offering, I have asked my officials to undertake an urgent review of progress under Enterprise 2025. 

At the Agency level I have directed IDA Ireland to explore the potential for winning more FDI on account of Brexit and the Agency and its staff are already working hard with this goal in mind.

In our efforts to win more FDI, we can continue to rely on the selling points that make investing in Ireland so attractive in the first place including our continued membership of the European Union and Eurozone.

I secured additional funding for IDA in 2017 to strengthen its capacity to communicate Ireland’s unique selling points to the international business audience and to help target key markets to secure investment and jobs.

The potential sources of FDI are likely to come from:

- existing IDA Clients with a presence in Ireland who also have a presence in the UK;

- overseas clients (US, European and Asian) who have a presence in the UK but not in Ireland;

- UK companies operating in the UK who now need certain access to the European Market; and

- International clients without a presence in Europe seeking a European home.

From an indigenous enterprise perspective, Enterprise Ireland’s strategy for the period 2017-2020 focuses on:

- Consolidating and growing exports into the UK market

- Expanding the Irish export global footprint, re-orienting towards N. America, Canada, Asia and the Middle-East

- Expanding the EI Export Platform

I have already announced 39 extra staff for EI's overseas offices and in the Irish based team to support exporting companies in the context of Brexit. Staff will be assigned to:

- Markets that are growing and have scale (including China, India, Latin America, Africa);

- Markets where we are already well established but with potential for further growth (including UK, France, Benelux, Germany, US, the Nordics).

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