The Minister for Finance, Michael Noonan today (27nd February 2014) welcomed the publication of the 2014 Action Plan for Jobs (APJ). Getting people back to work is the Government’s number one priority and we are making progress in this regard with an increase of 61,000 jobs in 2013.
The Government knows further work is required to reach our objective of full employment and the Medium Term Economic Strategy 2014-2020 is the overall strategy to achieve this objective by 2020. The Action Plan for Jobs 2014 is a key part of this strategy.
Welcoming the publication of the Action Plan for Jobs 2014, Minister Noonan stated:
“The Medium Term Economic Strategy 2014-2020 targets full employment by 2020 and the Action Plan for Jobs 2014 is a key part of this strategy. While significant progress has been made in recent months in exiting the programme and making a full return to the markets; getting people back to work is the number one priority.”
Speaking on measures in the APJ 2014 relating to Access to Finance for Micro, Small and Medium Enterprises
“In the Medium Term Economic Strategy 2014-2020 we outlined our ambition of developing a more diversified, competitive and responsive financial infrastructure that can finance SME growth. As we move into a new phase of economic recovery it is essential that SME’s can access reasonably priced credit to grow and create jobs. In line with the MTES, the APJ 2014 contains an integrated set of actions designed to improve access to finance for micro, small and medium enterprises in Ireland.”
As committed to in Chapter 4 “Supporting Employment & Living Standards” of the Medium Term Economic Strategy 2014-2020, the Action Plan for Jobs 2014 sets out a range of measures to boost key sectors of the Irish Economy. The actions are designed to support new and existing companies to grow, to identify new markets and to create jobs.
“By taking the economy sector by sector and introducing targeted measures we are making progress and jobs are being created. The APJ 2014 builds out the sector specific measures identified in the MTES to support traditionally strong sectors, to capture sectors with emerging opportunities and to support businesses operating in the domestic economy”
Finally, the APJ 2014 places a strong emphasis on Entrepreneurship and there are a number of key actions the Department will be undertaking in 2014 to foster entrepreneurship. The Minister concluded:
“SME’s are the backbone of the Irish economy with over 180,000 companies employing half the workforce. Two thirds of all new jobs are created by start-up companies and we must support and encourage Entrepreneurs to start their own business in Ireland. This is a key part of the MTES and the APJ sets out a range of actions to deliver on this objective in 2014.”
Department of Finance Action Points
Entrepreneurship
Action 2 Review and consider further amendments to the Start Your Own Business (SYOB) initiative during 2014.
Action 3 Review and consider further amendments to the Employment Investment Incentive (EII) during 2014.
Action 4 Review and consider further amendments to the Seed Capital Scheme (SCS) during 2014.
Action 28 Ensure delivery of the PPP Infrastructure Stimulus Package
Competitiveness
Action 103 Critically analyse the Foreign Earnings Deduction (FED) with a view to adapting it if necessary to encourage SMEs to expand into new foreign markets.
Action 104 Establish the ISIF and NewERA on a statutory basis
Access to Finance for Micro, Small and Medium Enterprises
Action 205 Detailed data from the pillar banks will be collated and examined, on a monthly basis, ensuring a more informed understanding of the SME bank lending environment, with a particular focus on new lending.
Action 206 Survey the demand for SME credit.
Action 207 Expand the activities and reach of the Credit Review Office in supporting SMEs to access finance, including an enhanced role in supporting the delivery of state sponsored schemes.
Action 208 Enhance the take-up and impact of the Credit Guarantee Scheme on foot of the 2013 review of the Scheme by implementing the appropriate recommendations.
Action 209 Improve the take-up and impact of the Microenterprise Loan Fund through closer engagement with the SME lending banks and business representatives and implementing appropriate recommendations from the review of the scheme.
Action 210 Enterprise Ireland will issue a consultation exercise to inform the sectoral and development stage focus of future calls for expressions of interest under the Seed and Venture Capital Scheme 2013-2018.
Action 211 Monitor and review the progress of the NPRF SME Funds in providing finance to SMEs. Furthermore in the context of the ISIF’s investment strategy additional commercial opportunities within the SME sector will continue to be developed as appropriate.
Action 212 Work with KfW and the German Ministry of Finance to develop an initiative that will improve funding mechanisms for SMEs.
Action 213 Increase our engagement with the EIB and EIF in developing and implementing mechanisms designed to maximise the provision of financing to SMEs.
Action 214 Develop an initiative that will provide a suite of working capital products for exporters.
Action 215 Continue to engage at EU level to ensure that the European Long Term Investment Funds are designed in law so that they can have the greatest potential benefit in terms of channelling productive investment to Irish enterprises.
Action 216 Implement the Government’s strategy for the EU’s Horizon 2020 programme in a manner that maximises the potential of the Access to Risk Finance element of this EU Programme, as a vehicle for providing finance to SMEs
Action 217 Develop proposals to support the development of alternatives to bank financing within Ireland.
Action 218 Explore the feasibility of developing a framework for a private placement market for Ireland.
Action 219 Work with the Irish Stock Exchange to establish a retail mini bonds market for Ireland.
Action 220 Advance solutions to improve cash-flow to SMEs, using appropriate supply-chain finance initiatives.
Action 221 Implement the Communications Strategy developed by the SME State Bodies Group.
Action 222 Develop a financial capability programme for micro and small businesses through the LEOs network.
Action 223 Deliver the Building Financial Capability in SMEs programme by Skillnets and undertake an evaluation of this initiative.
Action 224 Oversee a focused research programme on SME access to finance issues that will inform the on-going deliberations and policy actions of the Group during 2014.
Developing and Deepening the Impact of Foreign Direct Investment
Action 258 Undertake a critical analysis of the Special Assignee Relief Programme in 2014 with a view to adapting it if necessary.
Sectoral Opportunities
Action 288 Undertake an independent cost benefit analysis in the area of Agri‐Taxation with a view to ensuring maximum benefit to the sector and to the wider economy and bringing forward recommendations for Budget 2015.
Action 313 Develop metrics with banking and other interested funding providers to ensure the availability of sufficient finance to support a sustainable construction sector.
Action 316 Work with mortgage providers to ensure a sustainable approach to mortgage provision including more transparency and information for applicants through the mortgage approval process.
Action 329 Publicise the Home Renovation Incentive (HRI) Scheme, to assist with encouraging take up of the scheme, providing stimulus for the construction sector.
Action 330 Submit an application seeking EU State Aid approval for the Living City Initiative for residential properties constructed prior to 1915 in Ireland’s six cities namely Limerick, Waterford, Cork, Galway, Kilkenny and Dublin, to facilitate a Commencement Order being made by the end of the year.
Action 335 As announced in Budget 2014, continue the 9% VAT rate on tourism related services and goods to support the tourism sector.
Action 344 Increase the annual cash receipts basis threshold for payment of VAT by businesses from €1.25 million to €2 million. This will assist retail suppliers in the areas of cash flow and reduced administration.
Action 349 Extend the ‘Living Cities’ initiative to Cork, Galway, Kilkenny and Dublin to assist the regeneration of retail and commercial districts. Retailers will be entitled to relief on certain works undertaken to upgrade or refit their shops over a period of seven years at a rate of 15% for the first 6 years and 10% for the final year. The scheme will also attract more families to live in previously run‐down areas which will in turn provide benefits to local traders. This Initiative is subject to EU State Aid approval and a commencement order.
Action 370 Examine Ireland’s current approach to the branding, marketing and communications of its International Financial Services proposition, make proposals for change as appropriate and develop a suitable implementation strategy.
Action 371 Assess opportunities for Ireland as an international hub for
global insurance operations, including those opportunities arising from the Solvency II Directive.
Action 372 Assess Technology and Innovation opportunities in the sector including skills availability and educational requirements.
Action 373 Assess the opportunities for Ireland as a global hub for Compliance and Risk Management.
Action 374 Undertake a benchmarking exercise on the legislative and regulatory environment in Ireland.
Action 375 Connect international financial services companies with the expanding network of industry relevant technology and research centres e.g. Governance, Risk and Compliance (GRC), INSIGHT and CeADAR in data & analytics, IC4 in cloud computing and FMC2 in financial mathematics.
Action 376 Refine and execute a promotion and marketing plan for Ireland’s international financial services offering in emerging markets.
Action 377 Introduce Irish Collective Asset-management Vehicle (iCAV) legislation.
Action 378 Investigate ways to further develop the Real Estate Investment Trust (REIT) model as appropriate.