Taoiseach says economy has reached a turning point and outlines ten areas for job creation

Speaking today in Athlone, the Taoiseach said that Ireland had reached a positive turning point in our economic fortunes. He said the main priority for the Government is to help those who have lost their jobs get back into employment so that they can contribute to the well being of their families, their communities, and our country.

“We want to ensure that Ireland avoids a protracted period of ‘jobless growth’ in the aftermath of the fiscal crisis. We are working to ensure that a return to economic growth will be accompanied by job creation.”

Mr Cowen said his Government was pursuing a very clear and well-defined strategy to generate sustainable jobs in this country.

“The truth is that the purpose of our entire economic strategy is to sustain and generate jobs. Those who say we can save jobs while allowing financial institutions to fall and fail are closing their eyes to the most basic necessities of a market economy like ours, that is built on international trade and sustained by the free flow of capital and commerce.”

The Taoiseach identified ten areas where the Government’s economic renewal plan was working to generate the jobs Ireland needs.

1. Confidence

“Our first route to job creation relates strongly to the importance of confidence - confidence to lend, confidence to spend, confidence to invest, confidence to hire,” said Mr Cowen.

2. Credit

“Credit is the lifeblood of the economy. We need a flow of credit to sustainable businesses, allowing them to grow, expand and create jobs. Credit for business will become more important as the economic recovery gains pace”

3. Costs

“As the world economy recovers, we must ensure we are well positioned to benefit. Economic recovery and job creation requires a reduction in our relative cost base so that we are competitive with the rest of the world.”

4. Infrastructure

“We are spending nearly €40 billion in infrastructure to generate jobs in construction projects and to increase the productive capacity of the economy, enhancing competitiveness and supporting long-term jobs.”

5. Innovation

“At the heart of our jobs strategy is the need to increase rates of innovation across the economy, not only in the high-tech sectors but in all sectors. Positioning Ireland as a Global Innovation Hub will generate new jobs and new enterprises, and also help sustain existing jobs as firms move into higher value-added activities. The Innovation Taskforce estimated that over 110,000 jobs can be created through supporting innovative businesses.”

6. Foreign Direct Investment

“Ireland has been and will continue to be a great place for foreign direct investment and that will not change. A crucial instrument for attracting foreign direct investment is our ability to set the rate of taxation in a way that best encourages job creation. Our 12.5% corporation tax rate will not be increased and will remain at the heart of our strategy to attract ongoing foreign direct investment.”

7. Small Business

“Now that there are signs of recovery, our focus is on helping small firms to grow and create jobs again. Enterprise Ireland’s objective is to create 40,000 new jobs over the next five years. Through the multiplier effect, this will lead to an additional 28,000 jobs elsewhere in the economy. Many of these new jobs will come from the small business sector.”

8. Green Enterprise

“Another key area providing opportunities for job creation is Green Enterprise.

The Green Enterprise Action Group has published plans to create 80,000 new jobs over coming years. Implementation is being overseen by the Cabinet Committee on Economic Renewal and there has already been significant progress.”

9. Agri-food Industry

“The agri-food sector remains a bedrock of the Irish economy. As well as 120,000 primary producers, the agri-food sector employs over 45,000 people in over 800 companies throughout the country. We are working to ensure that the industry is positioned to benefit from global population increases and consequent increases in demand for food. To support this, a new €100 million fund has been established to improve the food industry's competitiveness over the next four years.”

10. Tourism

“The tourism and hospitality sectors, which support about 200,000 jobs, are another important part of our jobs strategy. A Framework for Action for tourism's survival, recovery and growth, supporting exports and jobs is being implemented by Government in partnership with industry.”

The Taoiseach said his Government’s strategy is to support those people who have lost their jobs to make sure they can get back into employment as more jobs are created.

“We are not promising overnight solutions but I can assure you that we are, as a priority, tackling the issue by improving competitiveness, protecting existing jobs and improving the conditions for new jobs to be created. When hit with an international financial crisis of this magnitude, jobs cannot be created in a vacuum. Long term sustainable job creation can only come about by putting our public finances back in order, fixing the banking system and pricing ourselves back into the markets we serve. Ireland is doing those things and we must persevere with this strategy for recovery on the hard road back to prosperity and an expanding economy again” concluded Mr Cowen.