€20bn investment programmes to boost employment

JUST over €20 billion is to be invested over the next six years in programmes aimed at boosting employment.

Over the life of the National Development Plan (NDP) €6bn will be invested in research and development (R&D), which the Government says is vital if highly-skilled jobs are to be created.

Irish exports have begun to stall in recent years, growing by just 2% a year between 2001 and 2006 compared to the 6% rise in world trade over that period. If new employment is to be created Irish companies will have to develop “new value propositions and work processes” to attract investment.

A large part of this involved increasing Ireland’s number of highly-skilled graduates working in cutting edge industries.

“The development of a knowledge-based economy is one of the key challenges and opportunities facing Ireland. The factors which have contributed to our economic success to date will not be sufficient to sustain our recent achievements,” the Government said.

Nearly €3.5bn will be spent developing world class R&D programmes so that the country doubles the number of PhD graduates by 2013, and ensuring that these people remain working in the Irish economy.

Richard Thorn, chair of the Council of Directors of the Institutes of Technology, welcomed the extra funding for R&D but said the challenge to get 500,000 workers to increase their education level will be hard.

“Ireland’s ability to compete in the global marketplace over the lifetime of the NDP will be determined by the speed and flexibility with which we can upgrade the knowledge base of our workforce,” Dr Thorn added.

Under the NDP €1.6bn has been earmarked for developing Irish companies. This will be spent by Enterprise Ireland and county and city enterprise board on small growing companies that are targeting international markets for their products.

The IDA will have €1.7bn to spend over the next six year to attract foreign investors. The IDA will focus on getting companies in the pharmaceutical, medical technology and financial services sectors to set up in Ireland and has also been tasked with sending more investment to the nine gateway cities targeted by the NDP.

The agriculture and food sectors will get €8bn to spend over the NDP. This includes €1.7bn to entice young farmers to enter the sector.

Some €6bn will go to support the farming community in disadvantaged areas, while €289 million will go towards marketing Irish foods.

A €435m package will bring broadband internet to parts of the country lacking the service.