Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

64. To ask the Minister for Enterprise, Trade and Employment the extent to which he continues to encourage investment in jobs in both manufacturing and services throughout the regions, given the necessity to ensure a balanced growth in the jobs sector throughout the country; and if he will make a statement on the matter. [43514/24]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

This question seeks to ascertain and encourage investment in jobs in the services and manufacturing sectors throughout the regions in order to continue to achieve balanced growth throughout the country.

Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy for his question.

Regional development is a key element of the Government's enterprise policy and is a key focus of the work of my Department and our enterprise development agencies. On job creation, the agencies of my Department are deeply committed to fostering investment in jobs across the manufacturing and services sectors throughout the country. This commitment is driven by the necessity to ensure balanced growth in the jobs sector across the entire country. Enterprise Ireland’s 2022-24 strategy, Leading in a Changing World, aims to create 45,000 new jobs over the next three years and increase exports by client companies to €30 billion. This strategy underscores Enterprise Ireland’s commitment to balanced economic growth and job creation across all regions, supporting more than 4,000 Irish companies, which collectively employed 225,495 people in 2023. Notably, 68% of those jobs were created outside Dublin, demonstrating Enterprise Ireland’s focus on regional development.

Enterprise Ireland clients' exports reached a record €34.5 billion in 2023. Technology and services exports were €8.49 billion; industrial and life sciences exports accounted for €10.384 billion, while food and sustainability exports accounted for €15.691 billion. Enterprise Ireland offers a wide range of supports that are designed to enhance competitiveness, innovation and sustainability, thereby driving job creation in the manufacturing and services sectors. Specific supports are available for sectors such as manufacturing and internationally traded services. This includes funding for research and innovation, digital transformation and sustainability initiatives, all of which contribute to job creation and regional economic development.

Regional development is also a priority for IDA Ireland, which is targeting at least half of all investments - that is, 400 of 800 - from 2021 to 2024 at regional locations. IDA Ireland has more than 1,800 client companies within its portfolio, employing 300,583 people as at the end of 2023. Some 163,471 or 54%, of client employment is outside Dublin. The first six months of this year saw IDA Ireland support 131 investments, 74 of which are planned for regional locations. The results of the LEOs survey 2023 were extremely positive, with LEO client companies creating 6,640 new jobs, which represents a tenth consecutive year of jobs growth since the LEOs were established in 2014 and indicates a net job increase in each of the 31 local authority areas.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for his exceptionally comprehensive reply and confirming the Government policy and his continued support for the thrust of what he said.

To what degree is cognisance taken of the threats to jobs in the various regions, including the region in which we stand at the moment? To what degree is his Department cognisant of changes in the marketplace and how they might affect different areas? What action is being taken - I know the Minister is active in this regard - to identify those areas, with a view to replenishing when necessary?

Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I again thank Deputy Durkan for his very important question. He rightly points out that it is important to look at the threats on the horizon. Globalisation is a significant threat to our foreign direct investment. We live in a very fragmented international geopolitical landscape. We can see that there are many trade tensions emanating across the globe. In a European context, we are trying to ensure we do not suffer as a result of those tensions. We have a lot of work to do in that regard in an international context, when our Pillar 1 and Pillar 2 moves start to crystallise. A number of countries, such as the United States, have not moved in that regard. Our skills base is our trump card. From travelling around Ireland I know we have a dynamic workforce. We have the highest number of STEM graduates per capita in the EU. We also have the highest output of ICT graduates in the EU, at 8%. That is a very strong selling point. Companies that are considering coming here will get talent and skills. It is important to support that with tertiary partnerships in the future.

Critically, we must give family businesses and SMEs the tools they need to grow and flourish, because two thirds of all employment in our communities is in SMEs. They drive so much economic activity. It is important for the Department to really go big in supporting them in the days and months ahead.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for his further reply. To what extent does his Department continue to monitor protectionism and the impact it might have on jobs and investment in this country? I refer to protectionism not just throughout Europe but globally. To what extent can the Minister influence Europe towards rediscovery of the principles of Europe, which seem to have become faded in recent times?

Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context | Oireachtas source

That is another exceptionally good question. We had a competitiveness summit a couple of months ago, and one of the key areas we are looking at is the changes in the Single Market and the exemptions that have been provided through the state-aid context. Ireland must be very careful in that regard because we are trying to ensure uniformity in the Single Market in order that it is a level playing field.

We have sectors that are present in Ireland - the Deputy will be aware of them as they are right in the heart of his constituency - that are involved in semiconductor activity. It is going to be very important that we get big support in this regard. There are very significant projects under important project of common European interest, IPCEI, rules in Europe. We are now trying to get a rolling fund together in order that we are able to make applications when calls are made. As a country, we have only once applied under that fund, for a company in Limerick. We know semiconductor activity is very important globally. Europe has about 8% of the market but that will go to 4% very quickly if action is not taken. We must work to ensure the areas we can go big in for this country - semiconductors and renewables - are developed, as they will be critically important and make us a shining light in those regards. They will also give some large energy users certainty in Ireland as well, which will be very important in ensuring competitiveness.

It is important also that there is investment in our grid and in other areas where we have a lot of work to do. We need to take a more formal approach with the National Competitiveness and Productivity Council because it is so important. That is our big challenge in the future. When we look across the 62 or 63 countries that are measured in the competitiveness index, we are No. 4 globally and we are No. 1 in the eurozone, which is very strong, but our infrastructure offering is coming under pressure. We have approximately €160 billion to deploy over next decade. We must be smart about that. We need to get an additional fund for our grid upgrade as well.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Minister.