Innovation at the Heart of the Jobs Challenge – Statements

14th September 2011

I thank the Minister for joining us today. He might be wondering what I, as a children’s rights advocate, have to say about jobs. For more than 15 years I worked for a small and medium-sized enterprise, through the good times and bad times. As I dealt with making staff redundant and dealt with transfer of undertakings to a UK entity, I understand the sleepless nights that people are going through. I very much welcome the commitments the Minister made today about driving down costs for businesses, increasing the access to credit and the need for regulatory reform. I also appreciate his understanding of the situation for young people because according to the National Youth Council of Ireland, Ireland has the second highest rate of youth unemployment in western Europe, with one in three young men unemployed, which represents a trebling of the figure since 2008.

Senator Cummins asked us to keep our comments for today short. I have one question and one proposal for the Minister. My question is very topical as it relates to the junior certificate examination results. I know there has been a focus on mathematics, and in doing so I take the opportunity to congratulate my nephew who got an A in his honours mathematics paper and who single-handedly may have contributed to the upward trend. However, people have not focused on foreign languages. Some 12% failed ordinary level French, 8% failed ordinary level Spanish and 7.5% failed ordinary level German. Poor foreign language capacity will hinder job creation, especially in the emerging export-led markets and with the changing demand for the global economy, the focus having shifted towards Asia and the consequent need for graduates with, for example, Mandarin. Only one secondary school in Ireland teaches Mandarin as a foreign language subject. I ask the Minister to clarify the role he will play regarding education and whether we will actually join the dots.

I was very encouraged by what the Minister had to say about us needing to add to our exports and we need to put a foot on that export ladder. In preparation for today’s debate I talked to representatives of a number of companies and I will now make what I believe to be an innovative proposal. I will give credit for this to a home-grown entrepreneur, Colm Lyons, of Realex Payments. Irish businesses need to get established in overseas markets, which can sometimes be achieved online, but more often it requires staff to relocate to set up offices. This can often take from 18 to 36 months. During this time local staff are typically recruiting others to train, after which they go back to the head office. Realex has asked several staff to move and while some have moved, many are concerned about the general state of things here and want to remain in their job in Ireland. The proposal is to have a scheme for Irish staff working abroad whereby if a staff member is assigned to grow the business in an overseas market, the company could accrue a bonus for the staff member that is paid tax free when the assignment is completed. It could be controlled, for example, by Enterprise Ireland, which would approve the company, the role and the individual against certain criteria. I believe this scheme would act as a great incentive for staff to be based abroad for a certain period of time and thus accelerate the growth of Irish businesses overseas. I ask the Minister to give the proposal serious consideration.

I conclude by going back to my children’s rights background. Research in the UK and US has found a negative impact of parental unemployment on children and young people. For example, young people living in a workless household are more likely to have poor educational outcomes, including increased incidence of truancy and early school leaving. Therefore I believe the Minister’s brief includes children’s rights and I will be doing what I can to support his work.

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