| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Economy Last Updated: Feb 2, 2011 - 4:28 AM


Irish General Election 2011: Labour's enterprise policy - - a depressingly vacuous menu of actionless actions
By Michael Hennigan, Founder and Editor of Finfacts
Feb 1, 2011 - 3:44 AM

Email this article
 Printer friendly page
Labour Party leader, Eamon Gilmore, outlines plans for 'Digital Ireland,' Jan 31, 2011.

Irish General Election 2011: Last Sunday, the Labour Party launched its enterprise policy but it's a depressingly vacuous menu of actionless actions, which proposes cosmetic changes to failed policies.

Irish political parties do not produce detailed policies and what are termed so, are menus of soundbites with the blanks filled in on assuming office by commissioning reports from management consultancy firms and setting up taskforces of assumed 'experts' from the lists of worthies, maintained by senior civil servants. 

The new Fianna Fáil leader Micheál Martin (who is also currently a schoolteacher, on leave from Presentation College, Cork) as health minister, commissioned 145 reports and reviews during his four-year period in that office.

The most depressing aspect of Labour's Plan for Enterprise, Innovation and Growth (pdf), is that there is no recognition of the serious challenges in creating 200,000 net new jobs.

There is no recognition that Brian Cowen's 'smart economy' strategy will never be an engine of growth; there is no fresh thinking or evidence that the people who put this menu together have any understanding of exporting; there is no evidence that there is an understanding of what a credible jobs strategy requires.

The principal headline in the plan is the proposal for a  €500m Jobs Fund, run by a Cabinet sub-committee. This is in addition to a Strategic Investment Bank, which is similar to the 1930s creation of the Industrial Credit Company.

The easiest proposal for a politician to make is to spend more money and it's not that enterprise policy is currently starved of funds.

Of the current €1bn annual science budget, about half of it is spent on supporting research activities, which could be termed a jobs stimulus program.

The plan says "Labour has identified...additional deficiencies in Ireland’s national system of innovation: a failure to properly support applied scientific and technology research beyond the basic stage supported by Science Foundation Ireland and the lack of financing for companies involved in this stage of technology development. As such, while basic (non-commercial) research is adequately supported by SFI and while companies that are already in the market have a range of supports from Enterprise Ireland, there is a significant gap in the supports available for companies that are taking technology from proof-of-concept stage up to the stage where they can be taken to market by an investor. Furthermore, there are very limited prospects that this gap will be filled by private funding."

It's proposed that some existing agencies be merged; a network of Technology Research Centres will be established focused on applied technological research in specific areas to be located in appropriate higher-education institutions. The centres will accelerate the exploitation of new technologies by providing infrastructure that bridges the gap between research and technology commercialisation.

The plan says that the "aim is to create the foundations for a national system of innovation that will enable Ireland to join the first rank of innovative economies during the next decade."

It all sounds like something former Enterprise and Innovation Minister, Batt O'Keeffe, could have said.

The new Innovation Strategy Agency (ISA) will be tasked with closing the gap between universities / SFI and industry through a ‘translational infrastructure’ to provide a business-focused capacity and capability that bridges research and technology commercialization.

This is religion from pious amateurs out of their depth and reminiscent of Brian Cowen's dream of creating a European Silicon Valley in Ireland and up to 235,000 jobs.

The facts continue to be ignored and amateur politicians want to provide more tax funds.

Why deal with for example the inconvenient fact that the default exits for venture capital investments in young high tech companies with potential, is the sale to a bigger overseas company?

The other 'big idea' in the plan is in respect of the BRICs (Brazil, Russia, India & China) and other emerging growth markets.

It is proposed to establish a local trade and investment team reporting to the local Irish Ambassador or Head of Mission and the Minister for Enterprise, which will execute a detailed local market plan. Progress against targets will be reviewed annually.

The plan says figures from the Central Statistics Office, show that from from January 2008 to Oct 2010, the share of Irish trade with the BRICs constituted less that 4% of our overall external trade.

This data excludes services exports but the main issue here is that trade from Ireland is dominated by foreign firms and decisions on the destination of their exports are not generally made in Ireland.

Besides, multinationals are not going to use Ireland a base for large-scale shipment to Asia.

Irish trade with India is currently a decimal point; it's simply stupid to believe that there would be big potential for indigenous companies by placing an Irish enterprise team in Mumbai.

Issues such as this and much more are covered here:

Irish General Election 2011: The challenge of creating 200,000 new jobs and the media as cheerleader

"We campaign in poetry, but when we’re elected we’re forced to govern in prose,” New York governor, Mario Cuomo, said in a speech at Yale University, in 1985.

What the Labour Party has dished up is reheated unappetising prose, when there is a yearning for a new departure.

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March