Building Competitive Advantage

We will accelerate the delivery of economic outcomes from Government investment in research. Therefore, in 2012, we will:

 

1.1 Adopt 14 priority areas for research based on the recommendations of the National Research Prioritisation Exercise, where publicly‐performed research will underpin specific opportunities of direct relevance to enterprise and jobs. We will implement the priority areas in relevant research programmes by:

• Establishing a “stage‐gate” process to screen new projects for both economic relevance/impact and scientific excellence/originality;
• Applying a rigorous performance monitoring system to demonstrate alignment with the prioritised areas and the impact arising. (Government and dedicated Prioritisation Action Group)

 

1.2 Adopt a new approach to funding Research Centres to concentrate on the identified priorities and to create a distinctive enterprise‐focused culture in the centres concerned and coherence with IDA/EI supported Technology Centres. (DJEI, Science Foundation Ireland with Enterprise Ireland and IDA Ireland, DCENR)

 

1.3 Enact an applied research mandate for SFI linked to the priority areas, and the new approach to funding research centres so that research is better aligned to the needs of users. (DJEI)

 

1.4 Establish new Technology Centres in Cloud Computing, Learning Technologies and Financial Services and undertake preparatory actions for Technology Centres linked to the priority areas (e.g. Connected Health, Pharmaceutical Production, Data Analytics, Medical Device Manufacturing). (DJEI, Enterprise Ireland, IDA Ireland and other funders as appropriate)

 

1.5 Agree and implement a new protocol for management of intellectual property (IP) associated with State funded research. Enabled by Enterprise Ireland, establish a strong Central Technology Transfer Office (CTTO) and strengthen further the Technology Transfer function so that enterprises can avail of the ideas with greater ease and certainty. (DJEI, Enterprise Ireland and other research funders, HEIs)

 

1.6 In the context of above initiatives, set new targets for industry participation and take‐up of publicly‐funded research across all enterprise‐relevant research programmes so that the enterprise relevance will play a greater part in research activity including targets for:

Collaborative research with enterprise

• Industry‐based PhD students
• Employment of trained researchers within industry
• Licensing and spin‐outs associated with HEI research
• Enterpriseparticipation in the EU Framework Programme (FP7)
• (Government via Inter‐Departmental Committee on STI)

 

1.7 Implement the improvements to the R&D tax credit regime outlined in Budget 2012 so that:

• Companies get up to 37.5% relief on all R&D expenditure where there was no qualifying R&D expenditure in 2003
• The first €100,000 of R&D expenditure of all companies will be allowed on a volume basis for the purpose of the R&D Tax Credit
• The outsourcing arrangements for R&D purposes will be improved in a targeted manner to allow the greater of the existing percentage arrangement or €100,000
• Companies will have the option to use some portion of the R&D credit to reward key employees who have been involved in the development of R&D (D/Finance)

 

1.8 Expand key programmes aimed at improving in‐company innovation capability. This will deliver increases in:

• Support for firms’ R&D programmes with the objective that 740 companies are committed to meaningful R&D expenditure (in excess of €100,000 per annum)
• Take‐up and redemption of Innovation Vouchers (Target: 450)
• Attract 100 companies to avail of R&D tax credit for the first time
• The quality and quantity of R&D projects which secure over €100,000 investment (Target: 80) (Enterprise Ireland)

 

1.9 Undertake a feasibility study to examine what structures and policies could be developed to make Ireland a world centre for managing and trading in intellectual property. (DJEI)

 

1.10 Host the “Big Ideas “Showcase in 2012 to focus on securing investment and identifying business partners that will bring new technologies to the next stage of commercialisation. (Enterprise Ireland)

 

1.11 Support the Dublin City of Science (ESOF) event in July 2012 which will provide a global showcase for Irish research and innovation. (DJEI, Chief Scientific Advisor, Organising Committee)

 

Improving Cost Competitiveness

 

Further progress can be made on reducing the cost of doing business, therefore in

2012 we will:

 

1.12 Enact legislation to reform wage setting mechanisms.  (DJEI)

 

1.13 Simplify and extend the Employer Job (PRSI) Incentive Scheme, which exempts employers from liability to pay their share of PRSI for certain employees. The scheme will be extended to cover the first 18 months of employment.

• Eligibility criteria for the scheme will be amended to

o Allow time spent on the Work Placement Programme and JobBridge count as the qualifying period for the scheme

o Allow persons on eligible payments undertake short SOLAS courses without impacting on their eligibility

o Allow time spent in casual employment count towards the qualifying period for the scheme, where a person is progressing to a new full‐time job offered by a different employer

o Allow linking periods for illness payments provided on qualifying payment immediately prior to commencement of employment (D/Social Protection)

 

1.14 While cognisant of security of supply and environmental goals, take a series of actions to manage energy costs:

• Ensure that investment in energy (electricity and gas networks) infrastructure is as cost effective as possible, that any delays in rolling out these infrastructures are minimised, and that subsidies for energy generation are cost effective.
• As required by the EU‐IMF agreement and based on the results of the IEA assessment of the efficiency of the electricity and gas sectors, we will further strengthen the regulatory and market reform programme in consultation with European Commission Services, with a view to increased efficiency, improved governance, strengthened competition and improving these sectors' ability to contribute towards covering Ireland's financing needs and improving its growth potential and economic recovery. (DCENR, SEAI, EPA, and others)

 

1.15 Request that Government Departments and Bodies assess by end March 2012 which charges levied by them on businesses are amenable to reduction in the short‐term, or frozen for 24 months (DJEI and all Departments)

 

1.16 Place downward pressure on insurance costs and the cost of legal services via enactment of The Legal Services Bill. (D/Justice)

 

1.17 Build on the positive response to date from Local Authorities to requests from Government to exercise restraint in setting rates for businesses, to minimise costs imposed on businesses and assist struggling firms in any way they can, with a need for continuing restraint and lower costs in the coming years.

In particular, we will:

• Accelerate the programme of revaluation of commercial premises, which will provide a basis for an adjustment in the burden of commercial rates. (with D/PER and the Valuation Office)
• Encourage Local Authorities to exercise restraint in setting of commercial rates for 2012, which is a reserved function of Local Authorities.
• Require Local Authorities to consider the impact of development contributions on businesses and competitiveness generally. Development contribution schemes will continue to be used to support capital investment by Local Authorities in the provision of necessary infrastructure and services, which will create jobs. (D/EC&LG)

 

1.18 Encourage all professionals (accounting, taxation, legal etc.) supplying the business sector and consumers to provide price quotations in advance. (DJEI)

 

1.19 Promote greater competition and reduce costs in the health sector by enacting legislation relating to general practice. (D/Health)

 

1.20 Introduce a more effective enforcement regime for competition offences by enacting the Competition (Amendment) Bill 2011. (DJEI)

 

1.21 Merge the Consumer and Competition Agencies to maximise the benefits for consumers and business arising from the interdependence between consumer and competition policies. (DJEI)

 

1.22 Encourage a competitive regime for waste services via careful design of the regulatory framework. (DEC&LG)

 

1.23 Finalise the strategy for future structure for water services delivery to ensure an improvement in efficiency and delivery. (DEC&LG)

 

1.24 Place downward pressure on commercial rents in respect of which NAMA has acquired the loan on the underlying property, by:

• Appointing an independent valuation of market rent where necessary
• Encouraging landlords of business premises to consider ameliorating rents that are in excess of the current prevailing market levels
• Assessing rent reduction applications
• Timely engagement following direct contact from a tenant who is not getting satisfaction in negotiations with his NAMA landlord (D/Finance, National Asset Management Agency)

 

1.25 Bring down the cost of acquiring commercial property by reducing the Stamp Duty rate from 6% to 2% and the introduction of a Capital Gains Tax incentive for property purchased up to the end of 2013 and held for at least seven years. (D/Finance)

 

1.26 Promote business supports to promote energy efficiency and reduce cost, including energy audits, energy management training, mentoring and advice and the Accelerated Capital Allowances scheme which supports businesses in purchasing plant and machinery that are highly energy efficient. (DCENR, SEAI, EPA, Enterprise Ireland, IDA)

 

 

Further research to benchmark Ireland against international best practice and to

inform additional actions to address high business cost is required, therefore in 2012

we will:

1.27 Benchmark and develop actions to systematically reduce excessive key business costs or delays. (Forfás, DJEI)

 

1.28 Develop a set of competitiveness targets that are amenable to domestic action to restore Ireland’s ranking. (Forfás, DJEI)

 

1.29 Analyse the costs associated with exporting and set out an action plan to reduce these costs. (Forfás/ DJEI)

 

1.30 Review public transport regulation with a view to reform that will reduce costs via increased competition. (DTTS)

 

1.31 Identify changes in the operation of sectoral regulators that would enhance cost competitiveness. (Forfás, DJEI)

 

1.32 Identify any sheltered areas of the economy where competition is restricted and commission studies on such areas where appropriate. (DJEI, Competition Authority)

 

1.33 Examine the feasibility of introducing a new structured and non‐judicial debt settlement and enforcement system to meet SME needs ‐“Examinership Light”. (DJEI, Company Law Review Group)

 

We will ensure that people in the Irish labour market, particularly those that have lost their jobs, have access to a quality further and higher education and training system that is aligned with and responsive to the needs of enterprise. In 2012 we will take the following actions:

 

1.34 To ensure unemployed persons have access to relevant education and training solutions, the Government will:

• Allocate €20 million for a new Education and Training Fund to deliver 6,500 places for the long‐term unemployed. (DES).
• Prioritise places, including in the further education and training sector, specifically for those on the Live Register for 12 months or more (DSP, DES, SOLAS).
• Continue to reflect the recommendations of the Expert Group on Future Skills Needs in all new Labour Market Activation programmes. (DSP, DES, Forfás, HEA, SOLAS)
• Issue a new call under the Springboard programme for courses that are aligned with areas of skills shortages as identified by the Expert Group on Future Skills Needs targeted at the unemployed (DES, HEA).
• Having regard to objectives of Pathways to Work, establish a formal process to ensure that the training provided under the auspices of SOLAS is consistent with the demands of the labour market and the needs of individuals to regain and secure employment. (DES, SOLAS, DSP, DJEI, Forfás, Industry)

 

1.35 To respond to immediate shortages in the ICT sector, the Government will:

• By June 2012 provide 1,400 places on ICT programmes in the first phase of Springboard, from which 550 are due to graduate with awards at honours degree or masters level; and
• Commence a one year Level 8 graduate conversion programme in core computing early in 2012 (DES, HEA).
• Other actions are set out in the ICT Sector section of the report

 

1.36 To incentivise greater participation in Science, Technology, Engineering and Mathematics and highlight areas of skills shortages the Government will:

• Provide bonus points for students taking leaving certificate higher level mathematics from 2012.
• Continue to disseminate the work of the Expert Group on Future Skills Needs on future trends and vacancies to schools and guidance counsellors, appropriate websites (e.g. Qualifax, Careers Portal, Career Directions) and through the media. (EGFSN, Forfás, DES, Education and Training Providers). Examine the scope to make available a very limited number of bursaries that would be linked to the take‐up of specified skills in high demand. (DES)

 

1.37 The Government will in 2012, through its Discover Science and Engineering programme, promote the study of the physical sciences to students by:

• Engaging early second level students (12,000) through its Discover Sensors   programme which supports inquiry based learning in Junior Certificate Science.
• Encouraging the take‐up of science, technology, engineering, and mathematics (STEM) and communicating the variety of career opportunities to older second level students, teachers and parents through CareersPortal.ie :

o First Online Careers Fair, January 2012

o Careers focus in Science Week (120,000 participants), November 2012

o Launching in 2012 an enterprise‐led partnership to support the skills common to both the education curriculum and business, so as to enrich students overall experience and to ensure better informed students and parents on careers and opportunities in STEM enterprises.

• Focussing its other programmes to assist 3,000 schools and 5,000 teachers through, for example, Discover Primary Science and Maths. (DJEI/SFI)

 

1.38 To improve linkages between higher education and enterprise, the Government will:

• Introduce of a new system of strategic dialogue to align funding of higher education institutions to performance in the achievement of national objectives for system development and priorities in relation to skills development (HEA).
• Introduce a systematic approach to the national surveying of undergraduate and postgraduate students and employers to inform institutional and programme management and development (HEA).
• Publish guidelines for the establishment of higher education institutional clusters at a regional level to support enterprise development and employment needs (HEA).
• Introduce a targeted funding scheme for research masters scholarships with strong enterprise focus. (HEA)

 

1.39 To foster greater alignment between the Further Education and Training sector and the labour market the Government will:

• Evaluate VEC further education and existing training programmes on an ongoing basis, including by the new further education and training authority (SOLAS)

‐ to establish which are effective in delivering on the skills required in specific sectors and occupations, and provide the transferable skills that enhance employability.

• Review the Apprenticeship training model, including costs, duration and demand with a view to providing an updated model of training that delivers the necessary skilled workforce to service the needs of a rapidly changing economy and ensures appropriate balance between supply and demand. (DES, SOLAS)

 

1.40 In the context of the new Children and Young People’s Strategy, the Government will, review the structures and funding of youth work and support services to ensure that they support the development of the skills needed by enterprises. (D/Children & Youth Affairs)

 

Infrastructure Investment to Underpin Employment Growth

 

Delivering priority infrastructure to help every business compete for and win new business and improve efficiency remain central to our strategy for growth therefore we will:

 

1.41 Invest €3.9 billion of exchequer capital in 2012 to ensure Ireland’s infrastructure can facilitate economic growth, including €514 million in capital investment for direct enterprise support and development. (Department of Public Expenditure and Reform / DJEI)

 

1.42 Ensure NewERA works with the State and private sectors to develop and implement proposals for commercial investment in line with Programme for Government commitments in energy, water and broadband. (Government / NewERA/ NPRF)

 

1.43 Through the Strategic Investment Fund, channel commercial investment from the NPRF towards productive investment in the Irish economy and seek matching commercial investment from private investors. The NPRF will also commit €250 million to the Infrastructure Fund, which will seek up to €1 billion from institutional investors in Ireland and overseas for investment in infrastructure in Ireland. (Government / NewERA/ NPRF)

 

1.44 Ensure that transport infrastructure supports enterprise development and sustainable job creation by the targeted upgrading of specific road and public transport infrastructure where such projects are clearly demonstrated as critical to economic development through improving competitiveness and market access. (DTTS)

 

1.45 Building on the work of the Next Generation Broadband Taskforce, we will agree advanced broadband targets and milestones for Ireland, identify the infrastructure deficits nationally and then develop and implement a plan to achieve these targets. (DCENR)

 

1.46 Roll‐out delivery of 100 Mbps broadband services to all second level schools, with 200 connected in 2012. (DCENR/DES/HEAnet)

 

1.47 Integrate the foreshore consent process under the Foreshores Acts 1933 with the existing on land planning system. (D/EC&LG)

 

Reduced Costs through Sensible Regulation

 

The Better Regulation agenda has the potential to deliver further cost savings and efficiencies for firms across the country and assist them in growing employment, therefore in 2012 we will:

 

1.48 Reform and consolidate the five existing employment rights institutions into two simplified and streamlined bodies. (DJEI)

 

1.49 Audit and review the multiplicity of licences required by businesses to assess the potential for discontinuing some licences and for amalgamating licences. (Forfás)

 

1.50 Deliver the potential for reduction in administrative burdens in national regulatory regimes across the following Departments: Social Protection, Communications, Energy & Natural Resources, Public Expenditure & Reform, Transport, Tourism & Sport, Health, Environment, Community & Local Government, Agriculture, Food & Marine, and the Offices of the Revenue Commissioners to meet the overall 25% target. (DJEI / Government)

 

1.51 Launch a single web portal for business compliance information. (DJEI)

 

1.52 Ensure that all requirements for establishing businesses which are amenable to electronic compliance will be available on line. (DJEI and all relevant Departments/bodies)

 

1.53 Examine options for a more cohesive approach to Better Regulation across Government and introduce new structures to improve coordination and synchronisation. (DJEI, DPER, D/Taoiseach)