Update: Fundamental Issues Affecting Investment – Jobs, Enterprise and Innovation 16th October, 2014

To ask the Minister for Jobs, Enterprise and Innovation the extent to which he and his Department have identified major fundamental issues affecting investment and job creation which might need prioritisation to facilitate maximum economic benefit; and if he will make a statement on the matter.

*    For WRITTEN answer on Thursday, 16th October, 2014.
 

Ref No:   39643/14

My Department reviews and assesses the fundamental issues affecting investment and job creation on an on-going basis and identifies the priority actions needed to address them. Ireland as a small, open economy faces intensified international competition for FDI; our Irish exporting enterprises need to be innovative if they are to be successful in overseas markets; and many of our indigenous enterprises trading on the domestic market now face international competition on their door-step.

During the recessionary period, and in response to the crisis, my Department led the development of the Action Plan for Jobs €“ an annual process that placed job creation at the centre of Government action €“ and that prioritised the fundamental issues affecting enterprises and actions needed to address them.  

Relative cost competitiveness (as distinct from low cost) continues to be a key factor in investment decision making. According to National Competitiveness Council, Ireland’s cost base has improved across a range of metrics.  Nevertheless, we need to remain vigilant, particularly with respect to labour, energy and a range of business and professional service costs.  We will continue to focus on ensuring that all viable businesses can access sufficient finance to meet their needs in a way that supports growth and jobs.  

We need to continue to deliver the talent and skills that enterprise needs, in terms of having a sustainable supply of world class core competences, and also in terms of the higher order abilities (such as problem-solving, creativity and design thinking) of its workforce and graduate output. My Department will continue to support the excellent, evidence based analysis on sector specific skills needs through the work of the Expert, Group on Future Skills Needs. We will also continue to work with the Department of Social Protection to ensure that the training and development delivered to support those currently out of employment will equip them to take advantage of job opportunities as they arise.

We need also to sustain our investment in R&D. We know that supports provided by the agencies are delivering economic benefit, with more firms are engaging in innovation activity and we need to continue to focus our investments in the areas set out in the Research Prioritisation Exercise.

Finally, we need also to prioritise investments in enhancing Ireland’s city regions and in harnessing the different potential evident across each of our regions. I have asked the enterprise agencies as a matter of priority to set out the enterprise potential for each of the regions, the actions they will take to prioritise regional development within their own strategies and to indicate the barriers that may be inhibiting growth potential.  Investment in broadband infrastructures, in advanced property solutions and infrastructures and in providing cost competitive, resilient and competitive sources of energy, is crucial to underpin sustainable, long term economic growth throughout the country.