Update: Job Creation through Foreign Direct Investment – Jobs, Enterprise and Innovation 16th October, 2014

To ask the Minister for Jobs, Enterprise and Innovation the extent to which job creation through foreign direct investment and/or indigenous sources are in line with or ahead of projections in each of the past three and a half years to date; if he expects to continue to meet the ambitious targets required in this regard to further facilitate economic recovery; and if he will make a statement on the matter.

For ORAL answer on Thursday, 16th October, 2014.
 

Ref No:   39068/14

Minister for Jobs, Enterprise and Innovation (Mr Bruton)

Since it was introduced in 2012, the Action Plan for Jobs has put job creation at the centre of policy formulation for all Government Departments and has changed the way Government operates.  The Action Plan covers all areas of the domestic economy and not just the areas which fall within the remit of the enterprise development agencies under the aegis of my Department ie IDA Ireland, Enterprise Ireland and the Local Enterprise Offices.  

Labour market data for the Quarter 2 2014 indicates that there are now 1.9016million people at work, compared to 1.847 million at the start of the Action Plan process.  Employment increased in 10 of the 14 economic sectors, including Agriculture, Tourism, Professional and Scientific activities which are all areas of focus for the Action Plan for Jobs.  As measured by the QNHS, unemployment fell by 46,200 in Quarter 2 2014 and the Unemployment Rate decreased to 11.8% – down from 15.1% in Quarter 1 2012, while Youth Unemployment rate (for 15-24 year olds) decreased from 29.6% to 26.9% over the year to Q2.2014.

With specific reference to the agencies which operate under the aegis of my Department, IDA Ireland’s primary responsibility is to attract foreign direct investment (FDI) into Ireland and, Enterprise Ireland supports indigenous industry and export growth. In addition, the LEO’s, which were launched earlier this year, act as a first stop shop for advice, guidance and support to people seeking to launch their own business.

In the three year period 2011 to 2013, Enterprise Ireland client companies created a total of 34,393 jobs against a target of 29,300, while IDA client companies created a total of 39,157 new jobs against a target of 35,300.  While job creation figures for 2014 will not be known until year end, indications are that both agencies will surpass the targets for 2014.

Furthermore, tax changes announced in Tuesday’s Budget for example the introduction of a knowledge development box and changes to the R&D tax credit as well as improved measures to attract key senior executives will make major improvements to our ability to attract FDI to this country.  These measures, together with the increased capital spending allocation to my Department for 2015, will enable us to continue to build on the strong job creation performance since this Government came to office.