BUDGET 2014: Job creation initiatives introduced

By Business & Finance
15 October 2013

Minister for Research and Innovation, Seán Sherlock welcomed Government’s ongoing commitment to support research funding programmes delivered through the Department of Jobs, Enterprise and Innovation.

This funding will support research, development and innovation activities delivered through Enterprise Ireland, Science Foundation Ireland, IDA Ireland, the Tyndall National Institute and the Higher Education Authority.

The Minister said, “The Government is committed to the vision of using research and innovation to generate jobs and economic growth. Within the constraints of our economic circumstances, we are maximising the funding available for research, development and innovation and critically, maximising the impact of this investment on jobs and the economy.

The evidence shows our investment in this area is paying off. Ireland has just been ranked third in the EU, according to the new “Indicator of Innovation Output”, which measures the extent to which ideas from innovative sectors are able to reach the market, providing better jobs and making Europe more competitive. This proves that we are investing smartly in this area and that our investment is delivering jobs,” continued minister Sherlock.

More than 48,000 new jobs will be created in 2014 as a result of support from the Department of Jobs, Enterprise and Innovation.

Minister for Jobs, Enterprise and Innovation, Richard Bruton TD said,  Enterprise Ireland and IDA are targeting the creation of a total of 24,000 gross new jobs in supported companies during 2014 as a result of financial supports allocated under today’s Budget. Based on a conservative calculation of standard multiplier effects, this will result in the creation of more than 20,000 additional jobs elsewhere in the economy through supply companies and support services. The CEBs/LEOs are expected to support the creation of a further 4,500 jobs in 2014.”

Further job-creation measures included in Budget 2014 include:

  • A package of new measures to support start-ups and growing businesses, including an income tax exemption for long-term unemployed people who start a business and incentives for investment in start-up businesses.
  • €3.5million in additional funding for CEBs/LEOs.
  • Continued provision for a total of over €2bn in non-bank credit schemes for business.
  • More than €400mn in total funding invested through EI and SFI research and innovation programmes in 2014, taking into account expected levels of funding from various sources including EU and industry, in line with 2013 investment.
  • Full delivery of Action Plan for Jobs 2014.
  • Supports for jobs growth in targeted sectors including retention of the 9% VAT rate for the hospitality sector, 0% air travel tax, home renovation incentive, extension of the Living Cities Initiative.

According to Minister Bruton: “This is another pro-jobs, pro-enterprise Budget and is further clear statement of intent by this Government to continue the job we started in 2011 to rebuild our shattered economy.

“Budget 2014 is aimed at building on and accelerating the progress we are making in addressing the massive jobs challenge we inherited. In an extremely difficult Budgetary environment, I am happy that investment right across my Department’s capital programme in 2014 will continue in line with 2013 expenditure levels, and new funding is being provided for CEB/LEO initiatives.”

“Through investments provided in Budget 2014 my Department will support the creation of almost 50,000 new jobs in 2014. We will continue the cross-Government focus on the jobs agenda with continued support for €2bn in non-bank credit schemes for business and further new incentives for start-ups and SMEs. And in 2014  total spending on research and innovation supported by my Department through Enterprise Ireland and SFI, at over €400mn, will be in line with 2013 levels.”

The minister added: “Through Budget 2014 we will be able to provide continued supports for the full range of vital job supports that have proved instrumental in turning around the jobs market and getting growth into the economy over the past two years. Crucially, we are also providing for new and innovative measures that will build on this progress, accelerate the trends we have started and create the jobs we need.”