Address by Mr. Noel Treacy T.D.,Minister for Science, Technology and Commerce,At the launch of the Carlow/Kilkenny Training Network2000/2001 Training ProgrammeAt 12 noon, Friday, 27th October 2000,The Tower, Dinn Rí, Carlow

I am delighted to be back in Carlow today to congratulate and acknowledge a number of people for some outstanding achievements. I have just come from Bagenalstown where I presented Ms Josie Daly, Managing Director, of CNC Components Ltd with the ISO9002 Certificate, at her new purpose built factory on the Industrial Estate.

I now have the great pleasure of launching the 2000/2001 training programme designed by the Carlow/Kilkenny Training Network.

The Carlow/Kilkenny Training Network was established in January 1999 by a number of Senior Managers of businesses in the Carlow/Kilkenny area. These businesses, a number of whom are nationally recognised for the excellence of their training and development strategies, had realised, that in order to maintain competitive advantage in a global economy, the importance of employee development on a continuous basis was paramount. Concepts such as, life-long learning and the development of a knowledge based skilled workforce were recognised as being of vital importance to the growth and prosperity of an organisation.

The Group also agreed that training and development could be expensive, could be disruptive to the business process, was generic rather than tailored and posed difficulties in relation to value-added. The objective of this Network was, therefore, to develop training strategies that would:

1. Be delivered locally to reduce cost.

2. Would be appropriate to the business needs of the member companies.
3. Would be learner-based rather than generic.
4. Would utilise the existing expertise within the member organisations.
5. Would take a long-term rather than a short-term view.
6. Would develop a pool of resources within the member companies so that learning could be transferred at minimum cost.
7. Would develop innovative and creative training and development instruments and strategies and
8. Would be of benefit to the wider community and in particular S.M.E’s and owner/mangers of these organisations by giving them access at a local level and in a structured manner to the knowledge and expertise of the Group as a whole

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The Carlow/Kilkenny Training Network has a track record of achievement in providing training and development services to its members. The Network has a deep reservoir of experienced people committed to improving their organisations through employee training, development and learning. The group has exchanged knowledge, shared facilities and developed partnerships. It is community based, with a desire not only to improve their own organisations but also to serve the wider community in Carlow/Kilkenny.

The Network provides businesses in the Carlow/Kilkenny region with an opportunity to meet, exchange knowledge, develop training strategies and share resources in order to develop their competitive advantage. It is a supporting Network both formally and informally. The Network provides a unique opportunity to develop innovative and creative training and development programmes within a defined geographical region and to share these developments with a wider audience in the interest of partnership.

The major point of common agreement between members of the Network is the absolute need to continually develop and improve their organisations to meet the demands of the competitive environment. While the Network membership represents multinationals, large indigenous and S.M.E’s, experience of working together has shown that the overwhelming need of all is to fully develop their human resources to allow them to compete on cost, quality and delivery, in both national and international markets. Skill shortages and changes in demographics are also areas which are creating problems for Network members. Second-chance education and ongoing training and development are seen as essential elements in meeting these many challenges.

The National Training Networks Programme “Skillnets” was established in December 1998 in response to calls for an employer led approach to training for industry. Skillnets Ltd will receive £9million in funding from public funds up to the end of 2,001 and there is a commitment from Companies involved in training networks to investing a further £4million in their projects. It is a measure of the Company’s success to date that they have almost 4,500 companies involved in training networks. This is a very encouraging sign and, I think, demonstrates an increasing recognition amongst employers and trade unions that continuous up-skilling of the workforce will help to underpin competitiveness.

This Government has spent the last few years successfully building the competitiveness of our national economy; a competitiveness built through social partnership, pay moderation, low rates of corporation tax and, not least, the presence of a skilled and well-educated labour force.

Ireland’s international competitiveness in the last decade has been remarkable by any standards:

• our economy has grown by 75%
• exports have risen from 53% of GDP in 1990 to 84% of GDP in 1998
• the number of people in employment is at a record high; and
• our unemployment rate is now less than 4%, compared to 17% in 1987.

However, we cannot afford to be complacent. We have built a strong competitive base, but now we must make further progress in areas where Ireland is lagging behind best international practice. The recently published Annual Competitiveness Report shows that Ireland ranks in the bottom half of the table in more than 50% of the key competitiveness indicators which were reviewed.

Our continued competitiveness is challenged by a complex set of emerging issues in the economic and business environment. The globalisation of markets, the emergence of e-Business, the process of EU enlargement and the tightening labour market are just some of the issues which are impacting on Government and business alike.

In the face of increased global competition and changes in the organisation of work, companies now require a labour-force which is flexible and adaptable. To remain competitive, a company must be able to adapt to the needs of its customers and to the demands of the market-place. More and more it is the workforce, in terms of their skills, competencies and ability to adapt and change, that will create competitive advantage. Employees who possess a range of skills will have a greater chance of providing the flexibility and adaptability that industry now requires. It is becoming increasingly evident that a specific skill, on its own, is no longer sufficient in many jobs. In the new workplace, specific skills must be underpinned by a range of general skills, including computer proficiency, literacy, numeracy, good communication skills and language skills. The ability to work in teams and to take on responsibility are also vitally important and constantly required.

Traditionally, investment by Irish companies in the training of their workforce has been significantly less than that of our international competitors. However, I understand that a survey shortly to be published by IBEC shows that the level of investment by firms in human resources development is increasing. I very much welcome this development. It signals a realisation by industry that investment in human capital will help enterprises to become more competitive through the capacity of their workforce to evolve, adapt and innovate. The degree of interest in the Training Networks Programme is a further indication that Irish business is now more prepared to invest in training and up-skilling its workers. Skillnets remarkable achievements in a short space of time demonstrates that there is a demand for an enterprise-led approach from within industry and that such an approach can work effectively. I think that it is essential that we build linkages between the new approaches developed in an enterprise-led context and State-provided training. This will help to ensure that this State is delivering training services in a manner which is fully consistent with the needs of industry. I want to commend the Board of Skillnets and the Chief Executive, Ms. Máire Hunt and her staff, for their hard work and commitment to making this pilot initiative a success so quickly. I am particularly pleased to note that over 8,000 people in many enterprises will receive training this year as a result of the Training Networks Programme.

It is essential that funding is used wisely to provide resources that will still be available, when Skillnets funding has ceased. The ethos of the Carlow/Kilkenny Network is one of partnership and support. This has sustained the Network to-date and while the history is short, this ethos is strong and supported by all Network members. Skillnets funding will allow the Network to build a foundation to ensure the long-term viability of the Network and provide the Region with a training and development model for the future, accessible to all.

I wish to thank most sincerely all of you for your tremendous commitment and dedication. You are a credit to your organisation and an example to others.

It now gives me great pleasure to formally launch your training programme for the new Millenium.

Go raibh míle maith agaibh go léir.