Ambitious plan by Government almost certain to become part of general election manifesto

The Government’s national enterprise policy which was announced yesterday is almost certain to become part of its general election manifesto next spring.

It is a hugely ambitious programme that includes a commitment to increasing employment by 220,000 over the next five years.

In a very real way, though, governments do not create jobs. That is done by business people, workers and entrepreneurs. They are the real wealth creators.

Yet government job policy is essential for growth in employment and it is gratifying that this document concentrates on home grown talent and recognises the importance of indigenous industry to the Irish economy.

As the outgoing Central Bank governor Patrick Honohan has warned, concentrating too much on foreign direct investment leaves an open economy like Ireland vulnerable to a downturn elsewhere.

In a pre-budget letter to Finance Minister Michael Noonan, he warned that the activities of multinational companies were affecting growth figures, creating a risk that Government policy would not be based on a realistic view of future prospects.

We have, of course, done very well by encouraging foreign investment and only this week we learned that Apple is to expand its plant in Hollyhill in Cork, providing up to an additional 1,000 jobs over the next 18 months.

Apple CEO, on a visit here, declared: “We’don’t just see ourselves as located in Ireland, we see ourselves as rooted here.” Indeed, the company has been based in the city since 1980 and already employs more than 5,000 people so the announcement of the additional investment is a testament to the company’s commitment to Ireland and to the work and talents of its Irish workforce.

However, if Apple suffered some catastrophic unforeseen losses globally those Irish jobs would be vulnerable. Over the years we have seen the devastating effect on local economies when major employers like Ford, Dunlop, Ferrenka and Dell pulled out of their Irish operations.

That is why local business organisations have been clamouring for years to be given equal weight for their efforts in reviving the Irish economy. This policy document appears to go a long way to meeting their needs.

Equally welcome is the commitment to encouraging economic growth outside of Dublin. A key theme of the Government’s new strategy is to build regional business clusters that will encourage and help start-ups.

As Enterprise Minister Richard Bruton put it yesterday, “We need also to invest place-making throughout Ireland, in all regions, creating attractive places where business choose to invest and where people chose to live and work. Our Regional Action Plans for Jobs will be a key driver of this concept.”

Whether a future Fine Gael-Labour coalition can deliver on such lofty sentiments remains to be seen but the partnership has form, helping to create 126,000 jobs since 2012.