Written answers

Wednesday, 7 February 2018

Department of Jobs, Enterprise and Innovation

Rural Development Policy

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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174. To ask the Minister for Jobs, Enterprise and Innovation the degree to which her Department can encourage investment and job creation throughout rural Ireland; and if she will make a statement on the matter. [6360/18]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Regional Action Plans for Jobs is a central pillar of the Government’s ambition to create an additional 200,000 jobs, of which 135,000 are outside the Dublin region, by 2020. A key objective of each of the plans is to have a further 10 to 15 per cent at work in each region by 2020, with the unemployment rate of each region not more than one percentage point greater than the national average

Data from the CSO (to Q2 2017) shows an increase of 53,500 people in employment across the State since Q2 2016: 84% of this increase is in numbers employed outside Dublin. All regions have seen increases in numbers employed in the year to Q2 2017; all regions also saw a decrease in numbers unemployed.

While overall results are strong, it is clear that not all regions are improving at the same rate, and there is no room for complacency. The unemployment rate in three of the regions (Midlands: 9.3%, Mid West: 8.4% and South East: 8%) is at Q3 2017 at least 1 percentage point above the State average of 6.9%. A continued focus on these regions is required to ensure they are being supported to achieve their economic potential

In December last year I announced an allocation of €30.5 million in funding to support enterprise capability in the regions, with 21 projects from all over the country receiving funding. This Regional Enterprise Development Fund (REDF) totalling €60 million is being rolled out by Enterprise Ireland over the next 4 years to support the development and implementation of collaborative and innovative projects that can sustain and add to employment at a national, regional and county level. The Fund supports the ambition, goals and implementation of the Regional Action Plans for Jobs.

I look forward to supporting more regional initiatives through a second competitive call, which will be launched in March of this year. I also look forward to working closely with the Regional Action Plan Implementation Committees, to continue to build on the excellent work they have carried out to date, with a focus on delivering on the employment targets set out for 2020.

The Enterprise Agencies continue to work to contribute to employment and economic growth throughout all regions. All regions saw increases in IDA employment over 2017, with 52% of new jobs supported by IDA Ireland located outside of Dublin.

In addition, two-thirds (64%) of new Enterprise Ireland jobs created in 2017 were outside of Dublin. The West, Mid-West and North West saw the largest level of increases at 7%.

Enterprise Ireland’s strategy for 2017-2020 aims to create a further 60,000 jobs, while sustaining existing ones, which will make an important contribution to jobs and economic growth across all regions. IDA meanwhile will continue to target a minimum increase in investment of 30% to 40% in each region outside Dublin to 2019. Additional funding of €150m is being made available to the IDA to support its Regional Property Programme and drive job creation in the multi-national sector.

The Local Enterprise Offices operating under the auspices of the Local Authorities and Enterprise Ireland in every county continue to play a vital role in providing advice and guidance, financial assistance and other supports to those wishing to start or grow their own businesses. Results for 2017 are expected to be published shortly. The 2016 Local Enterprise Office (LEO) annual jobs survey results highlighted three consecutive years of local jobs growth in small and micro-businesses throughout the country: in 2016 there was a net increase of 3,679 jobs and total direct employment among LEO client companies stood at 34,634.

I want to also draw your attention to the ongoing implementation of the Government’s Action Plan for Rural Development – ‘Realising our Rural Potential’. Launched in January 2017, the Plan contains over 270 actions to be delivered by a range of Government Departments, State agencies and other bodies to support the economic and social development of rural Ireland.

The Action Plan includes commitments from a number of Departments and State agencies, including the Department of Business, Enterprise and Innovation, Enterprise Ireland and the IDA, which will support employment and improve the quality of life for people living in rural areas. A key component of the Plan is to support the creation of jobs throughout the regions to ensure that people who live in rural areas have increased opportunities for employment locally. The Plan aims to deliver 135,000 extra jobs outside of Dublin by 2020.

The first 6 monthly progress support showed good progress in the implementation of the Action Plan; with delays to only 7 actions. A second 6 monthly progress report for the Action Plan for Rural Development is currently in preparation and will be published in February 2018.

Finally, my Department is also working closely with the Department of Housing, Planning and Local Government in relation to the enterprise development aspect of the National Planning Framework and development of Regional Spatial and Economic Strategies, which will have a strong relevance for the future of rural Ireland.

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