Address by Minister Martin, at the Launch of the FSI International Life Insurance Skillnet

Address by Mr. Micheál Martin, T.D. Minister for Enterprise, Trade and Employment at the Launch of the FSI International Life Insurance Skillnet, in the Merrion Hotel on Wednesday 4^th October 2006

Distinguished Guests, Ladies and Gentlemen

It gives me great pleasure to be with you today for the launch of the FSI International Life Insurance Skillnet.

I am told that this training network is led from the beginning by 21 insurance companies based in Ireland and engaged in providing international life insurance products to clients throughout the EU, with the assistance of Financial Services Ireland.

The basic aim of the network being launched today is to go to the very core of sustained competitiveness in the life insurance sector, namely the need for continual staff training. Therefore, the network plans to increase the number of individuals with life insurance skills and competencies and to further increase the competitiveness of the Irish international life insurance sector.

It is very pleasing to note that the participating companies have identified measurable impacts, which they hope to see developing from their involvement in the training network. These impacts include ability to transfer knowledge from the training to the work environment, increased productivity, improved staff retention and improved job satisfaction.

The intended impacts of the planned training represent a return on the investment in training and thus enable assessments to be made of the added value accruing to the companies. I would regard the intended impacts as also indicating a win win result – improved competitiveness for the enterprise and greater job satisfaction for employees.

Total funding for this network for its 2006/2007 training programme is €459,000. Member companies are making a cash investment of €203,000 with the balance of €256,000 being provided by the Training Networks Programme.

Operated by Skillnets on behalf of my Department, The Training Networks Programme or TNP, began life in 1999 as a pilot project. Building on the success of the pilot phases, the Government decided in 2005 to continue the Programme on a more permanent basis. Skillnets was, therefore, given an expanded mandate to operate the TNP until end 2010. Total budget for this period is €56 million, sourced from the National Training Fund and subject to approval in the annual budgetary process.

As you all know businesses today operate in a rapidly changing world. The challenge for the Irish economy is to maintain sustainable growth and where possible the creation of more and better jobs. The contribution of education and training to growth has been widely acknowledged and it is increasingly being recognised that investment in education and training produces rates of return to individuals and to society comparable to investment in physical capital. The challenge for Irish-based businesses over the coming period will be to maintain competitiveness through innovation and investment in the training and upskilling of their workforce.

Now, more than ever, there is a need to invest in the human capital of companies to ensure that the workforce is able to adapt to the new challenges that lie ahead. Public funding has, of course, a key role to play in this process but it has to be supported by private funding in key areas such as continuing training and development of personnel. This is why we value the Training Networks Programme, which puts in place incentives to encourage more private investment in education and training as a complement to, not as a substitute for public expenditure.

To date, over 30,000 employees in 6,000 companies have benefited from training supported under the TNP. In its approach to the delivery of the TNP, Skillnets has stimulated a new leadership of enterprise training by key industry bodies, leading companies, trade unions and HR managers. Through their member networks, 32 industry federations, chambers of commerce and trade unions have promoted, championed and led training awareness and activities.

In each network, champions of workplace training have joined steering groups and supported and encouraged other enterprise to participate in the process. This leadership by industry has been one of the most important and key success factors of the Training Networks Programme.

The Skillnets approach is cross regional, and cross -functional. It is firmly grounded in the strength and synergies of networking networks are self-selecting and guided by a commonality of need. Decision-making is devolved to the level of the industry group or other network grouping so as to maximise enterprise involvement in all aspects of delivery. Funding for training is based on co-investment by enterprises and Skillnets. A high level of dialogue, linkages and partnerships between and across organisations has taken place with Skillnets as a facilitator and enabler of the process.

Small and medium enterprises on a fast–track to growth and competitiveness constitute an essential feature of a successful economy. It is particularly true in the case of the Irish economy. The fostering and the supporting of Micro firms and SME’s is a challenge for Government, development agencies, trade associations and not least for entrepreneurs themselves. Training in SME’s is a key element of the TNP mandate agreed by my Department with Skillnets. Over 82% of the companies participating in the TNP in the period 2002 to 2005 where companies employing less than 50 people. For many of these firms, their involvement with Skillnets was their first experience of any serious training. For others it was their first time to be involved in making real and informed decisions about what training to provide. Through the TNP, Skillnets is assisting small firms to access training more easily, more quickly and more cost effectively. This particular focus on small firms, including micro and owner-managed companies will continue to be a vital element of the TNP as delivered by Skillnets in the years ahead.

For small companies in particular, the TNP provides a means of overcoming many of the traditional barriers to training. These barriers include lack of experience in managing the training function, low level of funds available to invest in training allied with high training costs, lack of access to relevant training, geographical isolation and disruption to business by staff release for training. Training networks and their managers enable small firms to address these barriers in collaboration with one another.

Perhaps, one of the most striking aspects of the Training Networks Programme and its operation by Skillnets is its broad applicability. Whether in small locally traded companies or larger companies seeking to export to international markets, such as those participating in the network we launch today, the TNP has demonstrated to a significant its adaptability and flexibility in supporting training.

May I conclude by wishing the FSI International Life Insurance Skillnet every success in its endeavours to deliver competitiveness through employee training.

ENDS

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