• Chapter 6:
  Action to Promote Enterprise and Jobs
  
  
  • Introduction
  • Competitiveness
  • Enterprise Culture
  • Continuous Innovation
    • Science and Technology, Research and Innovation Development
  • High Level Skills and Life Long Learning
    • Atypical Workers
    • The Information Society
  • SECTORAL INITIATIVES AND INFRASTRUCTURE
    • Industrial and Trade Policy
    • Services Strategy
    • Environment (Protection, Licensing and Planning)
    • Competition Policy and Regulatory Reform
    • Tourism
    • Construction
    • Commercial State Sponsored Bodies
    • Financial Services
    • Film
    • Music
    • The Marine Sector
    • Transport and Logistics
    • Surface Transport
    • Water Transport

Chapter 6:
Action to Promote Enterprise and Jobs

Introduction

6.1 - The growth and development of enterprise in Irish firms, including the large number of small firms in particular, and the increase or maintenance of employment in them has been stated by Forfas, the NESC and the NESF to require:

• recognition that the competitiveness of the Irish economy is a pre-condition for the pursuit of all other economic and social goals, in particular that of employment;
• continuous innovation in terms of technology and of its application within firms;
• high-skilled workers and life-long learning in all work roles;
• specific, focused sectoral strategies in the key developmental areas and in modem infrastructural support areas;
• the promotion of enterprise and new business formation; and
• the promotion of exports.

Competitiveness

6.2 - The key to the convergence of living standards in Ireland with the EU average and improvement in social cohesion is the sustaining and improving of national economic competitiveness through:

• an enterprise environment, including infrastructure and services, which will facilitate and support competitiveness;
• improved competitiveness in individual enterprises; and
• greater social solidarity.

Enterprise Culture

6.3 - Given the importance of fostering an enterprise culture, the Government will consider actions to promote enterprise as a part of the curricula of schools and youth programmes. The Department of Education in consultation with the Department of Enterprise and Employment, the Social Partners and the Small Business and Services Forum will progress this issue over the course of the Partnership. The enterprise environment is profoundly impacted upon by the national competitiveness environment. A dynamic process is now required which will:

• develop and agree a pro-competitiveness agenda; and
• determine a mechanism to monitor the implementation of that agenda and a benchmarking mechanism to measure competitiveness on an ongoing basis.

6.4 - The Government will, therefore, establish a Competitiveness Review Mechanism. The precise structure of the Review Mechanism will be determined in consultation with the Social Partners.

Continuous Innovation

Science and Technology, Research and Innovation Development

6.5 - The imperative challenge is for Irish-based companies, including those in the more traditional sectors, to compete on the innovative quality of their products, through expanded utilisation and application of research and technology.

6.6 - The key actions to be implemented, as identified in the recent White Paper on Science, Technology and Innovation, are:

• a planning process for investment in science and technology;
• a substantial increase in business spending on R&D and technical innovation;
• a higher profile for technology transfer;
• better adaptation and translation of the S&T education system, particularly third level research, to meet current and future competitiveness needs;
• improvement in the capability of firms which currently have little or no technological competence; and
• the establishment of a permanent STI Council.

6.7 - Immediate consideration, in consultation with the Social Partners, will be given to the extent to which progress can be achieved in 1997 and beyond.

High Level Skills and Life Long Learning

6.8 - Firms must have regard to increasing evidence that a partnership approach between management and employee's/trade unions is of key importance in managing change effectively and developing and maintaining an effective human resource development and training strategy which helps to achieve long-term competitive advantage. Mechanisms need to be developed to ensure a business-led process in the development and implementation of training policy, aimed at upgrading skill levels in business. Such processes must also accommodate employee representatives.

6.9 - There is a need to ensure, in the modem workplace, where change is endemic and the need for new skill acquisition is ongoing, that there is a commitment on the part of all involved to life long learning. Individuals will need to develop a personal portfolio of skills that are continuously upgraded to ensure their employability over a working lifetime.

6.10 - Greater emphasis will be given to equipping the unemployed and early school leavers with skills that are in demand now and likely to be in demand in the future in the labour market. A more holistic approach based on intensive counselling and guidance and the development of individual pathways of progression is required. Development of targeted unemployment measures is dealt with in Chapter 4, Social Inclusion. Gender equality considerations, dealt with specifically in Chapter 5, will continue to be a key employment policy objective, so that women can better integrate into and participate at all levels in the labour market.

6.11 - Actions to improve the level and quality of enterprise, education, competences and training will include:

• developing new approaches to enterprise training with business taking a lead in this priority area of investment. A business-led programme, with strong business, trade union and education/training sector inputs will be required. Training Networks of groups of firms, sectors and business associations will be supported to prepare training plans related to competitiveness needs;
• increased recognition of the central role of education, training in upgrading of firms' capability. Training must now be integrated fully into all companies' programmes for development and capability enhancement, and into business plans and applications for all forms of State support;
• promoting a commitment to life long learning because of the need for continuous upgrading and skill enhancement for individuals in work since it is estimated that in ten years time, 80 per cent of the technology now in use in Europe will have changed, but 80 per cent of that workforce are already part of today's workforce. Arrangements must be put in place to achieve the commitment of employers, trade unions and Government to measures that give effect to the acceptance of the need for life long learning, including support to individuals to invest in then-own training;
• national traineeship, certification and quality awareness. It is proposed to introduce a National Traineeship Programme and Certification, with on-and-off the job structured training. An authorised system of certification under TEASTAS is required to ensure that training bodies have effective quality awareness procedures; and
• the National Apprenticeship Advisory Committee will continue to monitor and review the effectiveness and the efficiency of the existing apprenticeship system.

Atypical Workers

6.12 - Ireland, like most other European countries, is experiencing growth in various forms of atypical work, including part-time, temporary and contract work. The legal, social and institutional frameworks of the labour market were built around the concept of permanent, full-time work. Progress has been made in adapting these institutional arrangements. The ICTU have sought that during the course of this agreement:

• existing employment legislation will be reviewed in the light of the growth in atypical employment;
• the application of social protection to atypical employment will be reviewed; and
• the impact of the tax structure on atypical workers will be examined.

6.13 - IBEC has stressed the need for continued flexibility to ensure ongoing growth in this form of employment.

6.14 - Some categories of atypical worker are covered by Joint Labour Committees. During this Partnership a renewed information campaign will be undertaken regarding minimum rates of pay for the relevant sectors, while enforcement procedures will be reviewed and up-dated. The operation and effectiveness of the Joint Labour Committees will be reviewed.

The Information Society

6.15 - The information society presents us with new and exciting potential to improve our knowledge and skills on a life long basis. It has huge potential for improved competitiveness, wealth creation and a higher standard of living. It is recognised that the information society is presenting new and lucrative business opportunities.

6.16 - A Steering Committee is in the course of completing its report on a National Information Society Strategy and Action Plan. The recommendations in this report will provide a basis for the formulation of actions to maximise the economic benefits of the information society and the utilisation of information and communications technology to sustain and improve the competitiveness of Irish-based enterprise. Particular regard will be had to recommendations concerning:

• infrastructure;
• learning and the education system;
• provision of Government services; and
• use of new technologies by enterprise.

6.17 - The Social Partners will be invited to play a full role in the formulation of the general measures to be taken in response to the National Information Strategy.

SECTORAL INITIATIVES AND INFRASTRUCTURE

Industrial and Trade Policy

6.18 - A significant framework exists. Particular attention should, in the global context, focus on:

• funding for indigenous industry must be competitive with that offered not only to multi-national companies but in other countries e.g. UK, Northern Ireland;
• investment in infrastructural support for overseas industry including telecommunications, energy and transport to satisfy needs of existing and incoming investors;
• a statement of National Trade Policy;
• the dependency of the food, clothing, textile and engineering sectors on the UK market and the need for export diversification in those areas; and
• a review of the effectiveness of trade promotion including the issue of private sector participation.

Services Strategy

6.19 - Development of the significant employment potential of the Services Sector, of which small business and tourism form such a major part, is a key objective at the heart of the Services Strategy Paper which will be published shortly. The initiatives envisaged by the Strategy will be directed towards integrating actions for Services into mainstream business development policy, recognising the importance of effective and efficient service inputs throughout all sectors of the economy.

6.20 - ABT will implement its new strategy in relation to services exports, under which services firms will be treated in the same way as manufacturers for the purposes of ABT supports. The strategy aims to more than double indigenous services exports over the next 5 years. The other key feature of the strategy is to bring many more firms, who are currently trading on the domestic market only, into exporting. To deliver these changes, ABT will prioritise its annual budget towards services.

Environment (Protection, Licensing and Planning)

6.21 - An effective physical planning system is essential for sustainable job creation and enterprise. Changes to improve the efficiency of the system have been made and further consideration will be given to streamlining the system in order to minimise delays and uncertainties which can discourage enterprise and investment and reduce the competitiveness of business, especially small enterprises. Accelerated procedures will also be introduced for major projects involving significant employment and added value.

6.22 - The Integrated Pollution Control (IPC) licensing system operated by the Environmental Protection Agency (EPA) is a modern approach to the licensing of environmentally significant activities. In terms of both environmental protection and operational efficiency, integrated licensing is widely recognised as a major improvement on multimedia licensing which it replaces. The system is supported by industry but environmental costs are critical for competitiveness and have to be balanced by reasonable achievable standards. Consideration will be given to the publication of a White Paper on the Environment.

6.23 - Opportunities for enterprise can emerge from the development of a healthy, clean environment supported by an appropriate regulatory system. The Government will act on the imminent Report of the Advisory Group on Industry and the Environment in consultation with the Social Partners.

Competition Policy and Regulatory Reform

6.24 - The object of competition policy is the achievement of healthy, positive competition and the elimination of anti-competitive practices. Fair competition will support the development of high standards in business which can be a competitive advantage. The Competition Authority will implement and rigorously enforce competition policy.

6.25 - During the life of the Partnership, a regulatory framework will be put in place to ensure, in the increasingly open markets, that the transport, energy and communications sectors operate on a fair and transparent basis. This will benefit both consumer and supplier including those carrying universal service obligations.

6.26 - A national strategy will be developed to improve the quality of regulation and reduce the administrative burden. This will form an important part of the functions of the Competitiveness Review Mechanism (Section 5.4) and will be supported by appropriate actions under the Strategic Management Initiative in the Public Service. Particular regard will be had to the needs of small business. A detailed action plan will be developed and implemented in the course of this partnership.

6.27 - A number of key issues dealt with in this and other Chapters are of concern to most sectors and are trans-sectoral:

• sterling exposure;
• training;
• corporation tax post 2005/2010;
• skills shortage; and
• improved linkages between indigenous and multi-national companies. What follows are sector specific initiatives.

Tourism

6.28 - The rapidly growing tourism sector is one of Ireland's largest industries. It benefits all sections of the economy and contributes to regional income. A major new initiative in the tourism sector is the development of a new 'Brand Ireland'. This concept was developed by Bord Fáilte, in co-operation with the tourism industry and the Northern Ireland Tourist Board. It is intended that Bord Fáilte and the tourism industry will jointly promote this Brand in all marketing activities.

6.29 - Over the lifetime of the Partnership, a total investment of some £560 million is expected in the tourism sector. By the end of 1999, it is aimed to have foreign exchange earnings of £2,250 million from tourism. The potential of tourism for job creation is enhanced by the labour intensive nature of the industry and the fact that it has a low import content. It is aimed to have 120,000 full-time job equivalents in the sector by the end of 1999. As stated in the NESC Report (No. 98), there is a need to strengthen measures to promote tourism and develop a strategy for the industry beyond the year 2000.

6.30 - A number of commitments in this Partnership such as those relating to VAT on labour intensive services (3.20), minimising access costs (6.44) and investment in training (6.11) are of particular relevance to the tourism sector.

Construction

6.31 - A Strategic Review of the Construction Industry is underway to ensure that the industry is well equipped to meet the challenges, both at home and abroad, into the next century. While a core objective is to ensure optimum competitiveness and efficiency in building, the remit of the Strategic Review Committee extends to a wide range of other strategic issues. The Government and Social Partners look forward to the report of the Strategic Review Committee, due early in 1997, which is expected to set a framework for the development of the industry in the medium term. Progress reports on the implementation of the Committee's recommendations will be made to the Social Partners over the life of the Partnership.

6.32 - It remains Government policy to use accepted GDLA contract conditions at tendering stage and for construction. Best industry procedures and established good practice will continue to be observed. The relevant Social Partners will be fully consulted on any amendments to the accepted contract conditions and established industry good practice.

6.33 - The Government supports public/private partnership in construction, in principle, and is awaiting the relevant recommendations of the Strategic Review Committee. A detailed assessment of the scope of private financing mechanisms for public infrastructure and the methodology of identification of suitable projects will be undertaken early in the life of the new Partnership. The Government is also committed to pursuing key infrastructural projects which are eligible for funding under the current Community Support Framework. Further economic growth is dependent on proper identification and prioritisation of investment needs and the Government undertakes to review those needs on a strategic basis during the Partnership.

6.34 - Measures to combat the black economy in the construction industry which were developed under previous Programmes will be continued. In particular, the Government and Social Partners acknowledge the contribution which the employers and unions in the industry have made in this regard through the Construction Industry Monitoring Agency. A review of the Agency is to be undertaken which should further improve its effectiveness.

Commercial State Sponsored Bodies

6.35 - The commercial State companies have made a major input into Ireland's economic and social development over many years. The Government intends that the commercial State companies, as major contributors to national competitiveness, will become more competitive by international benchmarks during the lifetime of this Partnership. This is critical not only for the continued existence of these companies, but for continued national economic and social progress.

6.36 - In addition to becoming more competitive, the commercial State companies will be expected to provide an even higher quality of customer service and to provide these services at internationally competitive prices. They will be expected to comply with a Code of Practice — The Delivery of Services to Customers in Commercial State Companies — which will be published in 1997. The Code will deal with such areas as quality of service, consultation, information for the customers, choice and complaint procedures.

Financial Services

6.37 - 1997 marks the 10th anniversary of the decision to establish the International Financial Services Centre (IFSC). In that time the Centre has become firmly established as a recognised base for the development of financial services. A report examining the IFSC and the scope for its further development is being prepared with a view to advising the Government on the next steps to be taken in supporting the development of the Centre into the next century.

Film

6.38 - The key challenge in this sector is to establish a mechanism to sell Ireland abroad as a location for making films, ensuring the effective promotion of all available incentives. Strategies to meet this challenge will be evaluated by the Government.

Music

6.39 - The key challenge in the music area is to build on a very rich and creative vein of activity which already exists in the economy and which has achieved a high international profile. The Government will examine the Report of the Special Task Force on the Music Industry in conjunction with the Social Partners with a view to maximising the job potential of the Sector.

The Marine Sector

6.40 - There is growing recognition of the economic and employment potential of Ireland's marine resources and marine industries. A general review of marine policy is underway and will result in a framework strategy for the integrated development of the marine sector, to be published in the first half of 1997.

6.41 - The fundamental objective in relation to the fisheries sectors (sea fisheries, aquaculture and inland fisheries) and related industries is to maximise their contribution to the national economy in line with the principles of sustainability and renewability.

6.42 - The Government will continue to pursue, in the context of the ongoing evolution of the Common Fisheries Policy, the case for a significant increase in Ireland's allocation of fish stocks. Increased opportunities for Irish fishermen, in new fisheries and third country waters, will be pursued vigorously. Development of the aquaculture industry will be supported by the enactment in 1997 of a new legislative framework for licensing and regulation. The economic importance of wild salmon will be safeguarded by a programme of action, based on the report of the Salmon Management Task Force, to arrest and reverse stock decline.

Transport and Logistics

6.43 - The Government will continue to focus on the development of a more efficient, competitive, safe, environmentally friendly and customer oriented transport system, taking full account of the impact which EU decisions will have on economic and social cohesion and on the creation of sustainable employment.

6.44 - Given our peripheral island location, our dependence on trade and the importance to the economy of tourism development, access transport policy will focus on ensuring competitive transport costs and providing adequate capacity. Inland transport policy will aim to improve the reliability of the transport system by removing bottlenecks, remedying capacity deficiencies and reducing journey times.

6.45 - Actions to achieve the above objectives will include:

• the development of competitively priced and high quality transport services through investment in transport infrastructure and facilities and the promotion of competition, where appropriate; and
• heightening the awareness in Irish firms of the competitive importance of logistics including education and training in logistics and increased use of information technology.

Surface Transport

6.46 - The priority for road development is to focus development on the four strategic road corridors linking the principle population/economic centres, ports and airports. The overall target is to accelerate the completion of the national primary road network and to provide an inter-urban travel speed on completion of 80kph. The Government will continue to promote investment in the mainline rail network, focusing on the key rail corridors. The aim will be to upgrade the track and signalling and to improve the quality of rolling stock on the network, with a view to improving the quality and reliability of services. Continuing priority will be given to implementing the public transport recommendations of the Dublin Transportation Initiative. A review of Local Authority training including rural roads will be carried out under the Strategic Management Initiative.

Water Transport

6.47 - The Government will aim to reduce port and shipping costs to users over the period to end-2000 by a cumulative minimum of 15 per cent in real terms and facilitate throughput increases in bulk trade as compared with the 1993 level. It is also planned to review the strategic options for the future development and management of declining commercial regional ports. A review of training for Irish seafarers is underway.