Dáil Éireann Debate, Thursday - 2 December 2010
1 Deputy Richard Bruton asked the Minister for Enterprise, Trade and Innovation the planned net effect on employment of the Government’s four year national recovery plan; and if he will make a statement on the matter. [45798/10]
View answerThe national recovery plan published last week presents a detailed strategy for further economic recovery which will restore stability to the public finances, improve our international cost competitiveness and provide the necessary support to our enterprises. A range of actions are set out in the plan aimed at further improving our cost competitiveness and removing barriers to job creation. These actions are aimed at improving the overall business environment so that all firms can maintain and create jobs. There are also actions aimed at supporting labour intensive sectors of the economy including agrifood, retail and tourism.
The Government has prioritised capital investment for the enterprise agencies with an allocation of €2.2 billion over the next four years. This will enable the agencies to support Irish businesses, win new foreign direct investment and support research, development and innovation. The economic analysis summarised in the plan projects a cumulative increase of about 90,000 jobs over 2012 to 2014. It is expected that unemployment will consequently fall to below 10% by 2014.
Is the Minister aware that over the past four years employment created by the State enterprise agencies has fallen by 45,000 jobs? While they may have created just over 150,000 jobs, they have lost 200,000 jobs in that time. The agencies have found employment for 272,000 people. The Minister expects them to double this with 300,000 extra jobs, 150,000 direct and 150,000 knock-on jobs. Is this a credible figure? What allowances have been made for job losses in the next four years?
What specific policy changes does the Minister believe will bring these changes about? Has his prediction for 90,000 new jobs, which includes 20,000 jobs over the next two years, been changed by the EU's downgrading of the Government's growth forecast? Has it forced the Minister to rethink his employment strategy? Has he specific initiatives in areas such as credit for business for example, as they seem to be absent from the plan?
For the first time ever, we have put together an integrated plan. All Departments and agencies have been brought together and challenged to come up with realistic and deliverable plans. I have indicated to IDA Ireland and Enterprise Ireland that the Government is prepared to put the necessary funding in place that would allow them to achieve the targets they have set.
These targets are challenging but the agencies are convinced that with the pipeline available to them, they can attain those targets. The great advantage of foreign direct investment and the indigenous sector is that for each job created, another spin-off job will also be created.
The Government is happy with the predictions for economic growth. I accept there are divergences between the various ones. The ESRI, for example, will forecast a higher growth rate than the Department of Finance. If one takes the individual entities contained in the recovery plan, it is reckoned, for example, the tourism sector will bring 80,000 jobs. IDA Ireland and Enterprise Ireland are determined they will create 150,000 jobs and are satisfied they will achieve this.
Does Deputy Bruton take issue with the projections of the IDA and Enterprise Ireland? Does he believe, even with their resilience, that they cannot match the figures they have stated? Is he aware of the outstanding response IDA Ireland is receiving abroad, particularly in the United States?
The Minister is treating me as the Minister by posing questions. Hopefully, it is a sign of things to come.
Deputy Bruton might give us some answers for a change.
Does Deputy Bruton believe the IDA and Enterprise Ireland have set themselves realistic targets? Is he questioning their ability, integrity and professionalism, all of which have served us so well since they were founded, to deliver what they predicted?
I will have to take extra time to answer the Minister's questions.
That is the danger on Priority Questions.
I am afraid you will have to indulge me a little bit, a Cheann Comhairle.
We were told the plans for the smart economy and the innovation taskforce, for example, were integrated plans. Everything that comes out of the mouths of Ministers is about integration and yet nothing changes.
What level of job losses does the Minister predict in the enterprise sector? Last year, while he presided, there were over 40,000 jobs lost from the enterprise agencies. Now, miraculously, the Minister informs us there will be no more jobs lost and every new job will have a knock-on one. The record stands that for the 150,000 jobs created by the IDA, it has lost even more. The Minister did not refer to this when he launched the national recovery plan. He is trying to pull the wool over people's eyes when the stakes are far too serious for this country.
I believe the IDA and other agencies can achieve high goals if the proper policy instruments are used and the Minister responsible does not stick his head in the sand when it comes admitting jobs were also lost. Can the Minister indicate one planned initiative that will support enterprise? Will we have, for example, the promised credit guarantee scheme? He was the first Minister to admit that the banks were not lending, but now he seems to be signing up to documents that say the problem is cured. Perhaps he has become part of the system and will not listen to ordinary people in business.
I have been around a long time and have spent 20 years listening to what people have to say. I hope that I am well grounded and have a logical, commonsense approach. I need no lectures on not listening to people. When I hear Deputy Bruton talking about jobs and not reaching targets, I think of Fine Gael's NewEra policy, which made fun of creating jobs.
On a point of order, either Question Time is about Ministers accounting for their stewardship or it is not. I asked specific questions but I have not even received an answer to the first one.
I do not have responsibility for the answers that are given.
I know that, a Cheann Comhairle, but you do have a responsibility for the management of time and ensuring that people are not allowed to indulge in some things.
That is what I was endeavouring to do.
The Minister does not want to be accountable to the House.
I am sorry the Deputy is so sensitive.
I am not sensitive at all. This is about holding the Minister to account, not holding me to account.
I wanted to quote back the Deputy's own words to him, as he knows so much about job creation. In that policy document, he said, "The essence of the New Era was not about creating jobs". He was preceded by Deputy Michael Noonan who claimed that the jobs target in the NewEra programme was a public relations add-on. Deputy Bruton now tries to lecture me on what is an outstanding record in job creation. My Ministers of State and I have an outstanding record in involving ourselves with the IDA and Enterprise Ireland——
Since the Minister will not answer the questions, I will lay his record of job creation on the clár so that people can examine it.
We must move on to Question No. 2.
——in terms of trade fairs and initiatives that will bring about the jobs that have been announced by us. We have a commitment and determination to work with those agencies to ensure that the job predictions we have outlined will in fact be delivered.
It is waffle.
Is that the Minister's answer?
