Tuesday, February 14, 2012
SO what did yesterday’s action plan contain that can help slow the growing dole queues and potentially lead to long-term job creation?
There was some recycling of initiatives, such as PRSI relief for employers, R&D credits for firms and the continued pledge to drive down commercial rates for businesses. Proposals on stamp duty relief, a pledge to reduce rents for businesses and the use of €250m in pension reserve funds to create jobs have already been flagged too.
However, the Government has committed to following through on the sector by sector targets set out. Health and life sciences will become a focus with the creation of a health innovation hub which will connect commercial companies and the health system. Ministers also want Ireland to become a global centre of excellence for the medical device industry and to attract further investment in the bio-pharmaceutical sector.
The green economy will promote services such as renewable energy and smart grids and it is hoped it will help develop markets for green tourism and food.
Agri-food production is also a high priority for the Government to create employment, through regional food exhibitions, progressing ideas with the dairy and meat sectors and further, third-level research.
Placements of people in information and communications and software jobs will also be helped through upskilling, increased broadband in schools and the creation of a digital services centre.
Digital games are also a focus with hopes that sector will see job numbers double to 2,500 in two years.
Reducing costs for the tourism industry should help create jobs while securing major sports events and conferences here will also help.
The promotion of international financial services will also be targeted, with plans to ease the tax burden further on companies setting up here through measures in the annual Finance Bill.
Other areas that will be targeted include education where a new €20m training fund will deliver upward of 6,500 places in 2012. Places will be prioritised specifically for those unemployed for 12 months or more.
Measures to boost the construction sector include reduced stamp duty rates and supporting companies expanding in key new markets such as the Middle East and Africa.
Reducing the costs of licences for the retail sector, reforming wage settings and agreements on prompt payments for services are also planned to boost jobs.
Lastly, it is also hoped the arts and creative enterprises will boost employment.
Critics will say some of these initiatives are just being rehashed and that no real targets or fund amounts have been set. In fairness though, April will be the first review of the 270-point plan for this year. The 100,000 jobs are also not a "bang theory" and will not be created overnight, Mr Bruton warned.
Individual initiatives will likely receive a broad welcome such as the phasing out of county enterprise boards which will now be merged into one-stop shops or facilities where entrepreneurs can make inquiries.
Strengthening options for exporters and credit supports for small businesses through a €100m fund will also be welcomed.
Accountability on reaching the targets would be demanded, said the Government.
It is unlikely though these new jobs will suddenly emerge over the new few weeks. Instead, a changed relationship between companies and state agencies should help protect jobs and boost employment further.
Training of the long term unemployed though will be important among the sector targets if the Government can get a good portion of the thousands of construction workers and others who lost their jobs after the collapsed property boom back into the working economy.
A lot of the measures, which hope to reduce costs, red tape and incentivise investment, echo comments made by former US president Bill Clinton when he last week said Ireland had the "best educated workforce in the world and a lot of people all dressed up and no place to go".
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