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Government publishes third annual Action Plan for Jobs

2014 plan aims to build on major progress in jobs market over past two

years

Particular focus on entrepreneurship as two thirds of all new jobs created

by start-up businesses

27 February 2014

The Taoiseach, the Tánaiste and the Minister for Jobs, Enterprise and

Innovation today (Thursday) published the Action Plan for Jobs 2014, the

third annual instalment in the Government plan aimed at building a

sustainable growing economy and creating jobs.

The Plan builds on the more than 500 measures already implemented through

Action Plan for Jobs 2012 and 2013, and contains 385 actions to be

implemented by all 16 Government Departments and 46 Agencies. Building on

the 2013 Plan three new Disruptive Reform topics have been targeted in the

areas of Entrepreneurship, Winning Overseas and Manufacturing.

The 2014 Plan aims to build on the significant progress which has occurred

in job-creation since the first Action Plan was launched in February 2012,

with more than 58,000 extra jobs added in the year to September 2013.

According to Live Register figures, the unemployment rate has declined for

19 consecutive months, and has gone from 15.1% in February 2012 to 12.3% in

January 2014.

Measures to be implemented during 2014 include:

1. Entrepreneurship – a county-based public competition to find the best

entrepreneur in Ireland with €2million in funding for awards; an

Entrepreneurial PhD programme to train SFI scientists to launch their own

businesses; 31 new Local Enterprise Offices to drive start-ups across the

country and a review of tax supports for entrepreneurs to see if they can

be improved or simplified

2. FDI – 10,000 additional jobs to be created through recruitment of extra

staff for IDA Ireland overseas, additional jobs over and above existing

strategies to be created in multinational companies in Ireland within 5

years; IDA to focus on new areas of growth including the ‘internet of

things’

3. Manufacturing – as part of a plan to create 40,000 additional

manufacturing jobs by 2020, a programme of new measures to support

productivity improvements and higher levels of R&D in Irish and

multinational manufacturing businesses

4. Agencies – IDA, Enterprise Ireland and the new Local Enterprise Offices

will together support a total of 30,500 direct new jobs during 2014.

Enterprise Ireland clients to target €17.5billion in exports in 2014

5. Competitiveness – Ireland’s competitiveness has improved steadily since

the Action Plan for Jobs process was first launched, going from 24th in the

IMD world competitiveness rankings in 2011 to 20th in 2012 and 17th in 2013

– measures to continue this drive include a new system of quarterly

reporting to the Cabinet Committee on competitiveness issues and action on

areas affecting business; measures on skills including 6000 Momentum

places; reduced costs for businesses through rollout of the reformed

Workplace Relations structures

6. Access to Finance – new non-bank sources of lending to SMEs to add to

the €2billion already available including new working capital products for

exporters and a retail mini bonds market via the Irish Stock Exchange; Dept

of Finance will more closely monitor new bank lending to SMEs on a monthly

basis

7. Regions – Regional Enterprise Strategies, proposals for a successor to

the National Spatial Strategy, an IDA programme of building advance

facilities in specific locations where the private sector is not providing

property solutions

8. Sectors – new supports to deliver continued jobs growth in sectors such

as Agriculture/Food, ICT and Tourism which have been supported in previous

Plans and have shown substantial growth in jobs; new focus on

domestically-traded sectors also including retail and construction

9. Year of Irish Design 2015 – as part of a plan to target 1800 additional

jobs in the design and crafts sector in the medium term, the Government

today announced that it will designate 2015 the Year of Irish Design.

Planning will take place throughout 2014 for a national and international

programme of activities to take place during 2015 in order to encourage

more investment in design and to sustain and grow employment opportunities,

sales and export potential in the design sector

10. Disruptive reforms – a total of 9 Disruptive Reforms (high-impact

measures implemented to ambitious timelines in partnership with industry –

further detail in Notes for Editors), further measures following on from

2013 plan in key areas of ICT skills, Big Data, delivering an integrated

licensing system for retailers and the National Health Innovation Hub

Launching the Plan, the Taoiseach Enda Kenny TD said:

"Creating new jobs is the top priority for Government. We recognise that

too many people around the country still have yet to see evidence of

recovery. This is why the Government has designated 2014 to be the year for

jobs. Exiting the bailout was not an end in itself. We must use this

freedom to create a sustainable economic recovery, to create more jobs and

improve living standards. Just as we had a plan to exit the bail-out, we

now have a clear plan to guide the economy to better times. This is where

the Action Plan for Jobs comes in. The 2014 Action Plan has a strong focus

on the domestic economy, improving competitiveness, and supporting our

entrepreneurs and small businesses. There can be no let up in our efforts

until we are back to full employment."

The Tánaiste Eamonn Gilmore TD said

"When this Government came to office, we were losing 7000 jobs a month –

now we are gaining 5000 per month. We can afford at this stage to be far

more confident about our prospects than at any time since the crisis began.

It is now time to focus on the future, on finishing the job of economic

recovery, of creating jobs, and of building a better post-crisis Ireland.

As part of that, we need to focus on supporting the construction industry

which has gone from being overblown during the boom to being completely

undersized in its wake."

The Minister for Jobs, Enterprise and Innovation, Richard Bruton TD said:

“As we said two years ago when we published the first Action Plan for Jobs,

there is no ‘big bang’ solution to the employment crisis – what we need is

to systematically, brick-by-brick, build a sustainable growing economy

which can create the jobs we need. Over the past two years we have been

grinding out the reforms we need, and have implemented over 500 actions to

improve our competitiveness, support Irish and multinational companies, and

target sectors of potential. And we have seen the results – our

competitiveness rankings are improving, our exports are growing, and we are

now creating jobs faster than any other economy in the EU or the OECD.

“The plan is working. Many people are still not feeling the results, and we

have a long way to go, but we are seeing real progress, and where

previously we were shedding 1600 jobs per week we are now adding 1200 jobs

per week.

“Through Action Plan 2014 we aim to build on this progress. We will focus

on supporting more entrepreneurs and start-up businesses, who create two

thirds of all new jobs. And we will continue to grind out the change we

need to improve our competitiveness and support more exports. In this way I

am confident that we can continue to systematically rebuild a sustainable

growing economy and create the jobs we need”.

ENDS

For further information contact:

Conor Quinn, Press Advisor to Minister Bruton – Ph: 087 3743783.

Press Office, Department of Jobs, Enterprise & Innovation - Ph: 01-6312200;

e-mail: press.office@djei.ie

NOTES FOR EDITORS

Reflecting the focus on entrepreneurship and start-up businesses contained

in the plan, today’s event took place in Wayra Ireland, one of a global

network of startup accelerators, based in O2’s headquarters in Dublin’s

Silicon Dock.

Links to Action Plan for Jobs:

APJ 2014: www.djei.ie/publications/2014APJ.pdf

Table of Actions: www.djei.ie/publications/2014APJ_Table_of_Actions.pdf

Action Plan for Jobs annual process

The Action Plan for Jobs is a whole of Government, multi-annual initiative

which mobilises all Government Departments to work towards the objective of

supporting job creation. The development of the Plan is coordinated by

Forfás on behalf of the Department of Jobs, Enterprise and Innovation, and

is monitored on a quarterly basis to ensure delivery. The process has

delivered and in 2012, 92 per cent of actions were delivered and in 2013 90

per cent were delivered.

In a departure from the 2012 plan, Action Plan for Jobs 2013 contained

seven headline ‘Disruptive Reform’ measures – these are high-impact

measures with highly ambitious deadlines, implemented in partnership with

senior industry partners and selected because of their potential to have a

significant effect on job creation. This year’s plan adds three new

disruptive reforms on entrepreneurship, winning abroad and manufacturing,

and also continues implementation on 6 of the 7 measures from the 2013

plan, to make a total of 9 Disruptive Reforms in the 2014 plan (see below).

More importantly, however, the Action Plan is having an impact on the

ground and recent data on employment is encouraging. There were 1,899,300

people in work in Q3 2013, an increase of 58,000 compared to Q3 2012. The

Quarterly National Household Survey (CSO, 2013) showed that the

seasonally-adjusted unemployment rate fell to 12.8 per cent in Q3 2013 from

a peak of 15.1 per cent in Q1 2012. More recent Live Register trends

suggest the fall has been even greater in the interim. The long-term

unemployment rate decreased from 8.9 per cent to 7.6 per cent over the year

to Q3 2013. In addition to the increase in employment and the decrease in

unemployment, there are other indicators that the Irish economy is emerging

from the deepest economic crisis in our history. Domestic demand in 2013 is

estimated to have grown by 0.4 per cent, the first increase in this

aggregate since the crisis began. Ireland’s competitiveness rankings are

also once again improving – for example, Ireland’s ranking in the IMD’s

World Competitiveness Yearbook has improved from 24th in 2011 to 20th in

2012 and 17th in 2013.

Competitiveness

Ireland can never again become complacent about its competitive position.

If we are to meet the employment targets contained in this Plan, Ireland

must maintain the hard-won ground over the past number of years and pursue

relentlessly policies which will drive competitiveness in all areas of the

economy. Many firms are still confronted by high costs which make it

difficult to compete internationally. Others are dealing with legacy issues

that make accessing funding for investment extremely challenging. Still

others lack the capabilities (e.g. innovative capacity, language and

international sales skills, technical competencies, etc.) to take advantage

of growth opportunities. Creating a competitive business environment which

supports an increase in exports from these firms is essential to ensuring

Ireland achieves sustainable economic growth and high levels of employment

growth.

In 2014, led by the Taoiseach, the Government will focus on competitiveness

in all areas of economic activity. The Government will develop and target

actions specifically at improving our competitiveness rankings. This is

aimed at achieving a top-five international competitiveness ranking, making

Ireland the best small country in which to do business and creating the

jobs we need.

Disruptive Reforms

Disruptive Reforms were introduced in 2013 as new, high impact,

cross-cutting measures with the potential to have a significant impact on

job creation, to support enterprises and/or be areas where Ireland could

profit from a natural advantage or opportunity that presents itself in the

economy. 6 of the 7 Disruptive Reforms introduced in 2013 will be

progressed further in 2014 in order to realise their ambition. The JobsPlus

initiative, launched in 2013, has already been mainstreamed and has proven

to be particularly impactful. Three new Disruptive Reforms will be

introduced in 2014: Entrepreneurship; Winning Abroad; and Manufacturing:

Entrepreneurship

The Government’s ambition is for Ireland to be among the most

entrepreneurial nations in the world and acknowledged as a world-class

environment in which to start and grow a business. With the unemployment

challenge that Ireland is currently facing, growing the number of

entrepreneurs and start-ups is hugely important for Ireland’s economic

development.

In 2014, the Government will:

§ Roll out 31 Local Enterprise Offices, supported by a Centre of

Excellence in Enterprise Ireland, to drive entrepreneurial activity

throughout the country;

§ Make additional funding available to support start-ups and expansions

including a new Youth Entrepreneurship Fund;

§ Review tax based support schemes for entrepreneurs with a view to

providing a simplified offering targeted at increasing

entrepreneurship;

§ Facilitate mentoring, peer learning and knowledge sharing to develop

entrepreneurial capacity;

§ Target actions, including new funds, to inspire and encourage untapped

potential among groups including youth and graduate entrepreneurs,

female entrepreneurs, immigrant entrepreneurs and at regional level;

and

§ Deliver a clear strategy with medium term actions for entrepreneurship

through a National Entrepreneurship Policy Statement.

Winning Abroad

Generating sustainable broad based export-led growth is essential to

rebuilding our economy. As a small open economy growth in overseas markets

is critical and this Disruptive Reform will place a specific emphasis on

growing opportunities in overseas markets, particularly in new and fast

growing markets.

In 2014, the Government will:

§ Target the creation of an additional 10,000 new jobs (6000 direct and

4000 indirect) over 5 years through an investment programme which will

see the provision of additional resources to IDA Ireland to be

deployed overseas including in emerging markets, intensifying FDI

employment growth;

§ Increase support for companies seeking to trade internationally,

through the provision of additional on-the-ground support by

Enterprise Ireland in overseas markets including China, South Korea,

United Arab Emirates and South Africa. This will also include

targeting 650 companies to have significant engagement with the

Enterprise Ireland potential exporters division, working with 55 first

time exporters and providing a range of programmes to exporters in

2014;

§ Develop the capabilities of Irish enterprises to grow exports through

programmes aimed at both existing exporters and potential exporters;

§ Promote Ireland’s image abroad to drive increased trade, tourism and

investment and implement Local Market Plans in priority markets; and

§ Undertake targeted initiatives in sectors including international

education services, engineering services and cultural services and

design.

Manufacturing: National Step Change

Supporting cost competitiveness in the longer term together with improving

living standards for all can be achieved through productivity growth. This

Disruptive Reform in manufacturing will help place Ireland’s manufacturing

sector to the forefront internationally and improve competitiveness,

productivity and innovation.

In 2014, the Government will:

§ Support 130 indigenous companies with an initiative to improve their

productivity as part of the National Step Change for Manufacturing;

§ Deliver a transformation programme across 70 foreign-owned

manufacturing and services companies in Ireland to achieve technology

uplift, skills enhancement, energy improvements and investment in new

facilities and equipment;

§ Support the adoption of LEAN manufacturing and other productivity

enhancing measures across a wide range of enterprises including

relevant micro-enterprises;

§ Ensure that publicly-funded R&D is oriented to the needs of

manufacturing sectors and support increased engagement by

manufacturing enterprises with research centres and technology centres

focused on the needs of manufacturing sectors.

Work will continue on the 6 remaining Disruptive Reforms from 2013 as

follows:

Big Data/Data Analytics

Advancing the agenda to make Ireland a leading country in Europe in Big

Data and data analytics by measures including the launch of an Open Data

initiative and further strengthening enterprise engagement in the €88

million Insight Research Centre and the CeADAR Technology Centre.

ICT Skills

Publish a revised ICT Skills Action Plan informed by the recent Forfás/

EGFSN study forecasting high levels of ICT skills needs to 2018, that would

further progress increases made in the domestic supply of ICT graduate

output and move from 63 per cent of demand in 2014 to 74 per cent of demand

in 2018.

Integrated Licensing Application Service

Reducing the regulatory burden on the enterprise sector by delivering an

Integrated Licensing Application Service for the retail sector.

Trading Online

Targeting 2,000 micro and small businesses over a two year period from 2014

to support them to engage in online trading, building on successful trial

undertaken in Dublin.

Energy Efficiency

Establishing an Energy Efficiency Fund and supporting exemplar projects on

energy efficiency to progress the ambition of transforming Ireland into one

of the most energy efficient economies in Europe.

National Health Innovation Hub

Establishing the National Health Innovation Hub in 2014, building on the

successful implementation of the Cork Demonstrator Project, to produce new

healthcare technologies, products, and services by linking commercial

enterprises with the Irish health system.

It is proposed to continue the process of working with Industry Partners in

2014 to deliver these Disruptive Reforms.

Other Key Initiatives

Indigenous Enterprise

Enterprise Ireland will target the creation of 13,000 new fulltime

permanent jobs and support clients to achieve €17.5bn in exports in 2014.

Enterprise Ireland will also implement mentoring programmes for the benefit

of more than 300 clients.

Foreign Direct Investment

The IDA will target 13,000 new gross jobs yielding approximately 6,000 net

new jobs and work to win another 155 new FDI investment projects in 2014

with 20 per cent from growth markets.

Access to Finance

To further improve access to finance for micro, small and medium

enterprises in Ireland, key priorities for 2014 include: increasing new

lending to SMEs; increasing participation in Government sponsored access to

finance schemes for SMEs such as the Microenterprise Loan Fund and the

Credit Guarantee Scheme; raising the level of awareness amongst SMEs and

entrepreneurs of the business supports available; and enhancing the

financial capability of SMEs.

Regional Development

Regions that support strong and dynamic enterprises are crucial to

Ireland’s return to overall economic growth and IDA Ireland will start to

build new advanced manufacturing facilities and office space in regional

locations to create fresh opportunities for FDI.

Sectors

The Action Plan puts a strong focus on a number of domestically trading

sectors, including Construction & Property, Retail and Social Enterprise

where there is potential for significant job creation with the correct

supporting measures. This section also builds on sectors which have been

growing over the last number of years, such as Agri-food, Tourism,

International Financial Services, Aviation Services and the Green Economy

Year of Irish Design 2015

The overall objective of the year is to sustain and create employment

opportunities, sales and export potential for the Irish design sector, by

encouraging investment in design as a key component of competitiveness and

innovation and by showcasing Irish design nationally and in international

design capitals during 2015. Year of Irish Design will be convened by the

Design & Crafts Council of Ireland on behalf of the Department of Jobs,

Enterprise & Innovation, the Department of Foreign Affairs and Trade and

Enterprise Ireland and will provide an umbrella initiative to promote

collaboration between design practitioners, design organisations, and the

government departments, and their agencies, who have an interest in design.

Its aim is to enjoin all parts of the design economy - from education and

enterprise support providers through to the private sector - in a concerted

effort to promote export opportunities for design businesses.

According to an evaluation carried out by Indecon on behalf of DCCoI, craft

and design makes a significant contribution to business, job creation and

export potential. The evaluation estimates that the crafts sector in

Ireland has a total turnover of almost €500m, including exports of €125m,

and is responsible for over 5,700 jobs. The evaluation also concluded that

the sector had the potential to grow significantly over the medium term, to

a level of employment of 7,500 and potential output of €700m, including

exports of €175m.

Action Plan for Jobs Impact Indicators

Working with the OECD we will be developing impact indicators to fine-tune

development and implementation of jobs policy through the Action Plan for

Jobs. Key areas of focus in 2014 will be on:

· Establishing the links, where possible, between actions in the Action

Plan and the achievement of intermediate impacts in areas such as

Entrepreneurship, Innovation, Internationalisation, Skills

Enhancement and Access to Finance;

· The linkages between these intermediate impacts and the ultimate

policy objectives of increasing employment and reducing unemployment

while also increasing competitiveness and productivity in the Irish

economy

NewERA and Irish Strategic Investment Fund established during 2014

Both of these initiatives are expected to make a very significant

contribution to the Irish economy in the years to come. In 2011, NewERA was

established on an administrative basis to support a commercial investment

programme in vital economic infrastructure. NewERA will be established on a

statutory basis in 2014. It will continue to be central to the Government’s

job plans by identifying and advising on opportunities for the commercial

investment programme in vital economic infrastructure. In addition it will

have a role in the provision of independent advice on all aspects of the

business, operations and governance of commercial semi-states under its

remit. The National Pensions Reserve Fund’s (NPRF) discretionary portfolio

is valued at circa €6.8 billion as at 31 December 2013. In 2014, the ISIF

will be established with a commercial Ireland-focused investment mandate,

absorbing the resources of the NPRF. In anticipation of the NPRF’s

conversion into the Ireland Strategic Investment Fund, the NPRF has been

working to develop a pipeline of potential investments. A number of these

have been concluded and as a result, the NPRF now has €1.3 billion invested

or committed to areas of strategic importance to the Irish economy

including infrastructure, venture capital and long-term financing for SMEs.

SME procurement

Building on the progress so far which has seen for example 17,000

additional SMEs register on the Government’s eTenders website suring 2013,

further measures to make it easier for SMEs to win Government contracts

will be introduced during 2014. In particular, we will review and update

the Government’s Procurement Guidelines and Procedures to address any

obstacles to SMEs participating as fully as possible in the public

procurement process

€5million built heritage jobs scheme

A new €5 million Built Heritage Jobs Leverage Scheme to encourage

investment of private capital through matching public funds in a large

number of small-scale, labour-intensive projects to repair and conserve

historic structures, while supporting the employment of skilled and

experienced conservation professionals, craft workers and trades people.

This initiative will be linked to a targeted training scheme in traditional

building skills