Budget underpins export-led growth and job creation - Minister O’Keeffe

7 December 2010

▪ Enterprise and research agency investment alone to generate 30,000 jobs

▪ Stimulus measures to create jobs in the domestic economy

▪ ‘Real’ economy continues to show signs of recovery

The Government has produced a Budget for jobs and export-led growth that will help build investor confidence and drive recovery in the domestic economy, according to the Minister for Enterprise, Trade and Innovation, Batt O’Keeffe TD, who was announcing details of next year’s spending plan for his Department.

Minister O’Keeffe said the measures in the 2011 Budget announced today [Tuesday] would underpin a return to economic growth by investing in jobs and reducing the Exchequer deficit.

‘In finalising my own budget, I have prioritised the operating budgets for IDA Ireland, Enterprise Ireland and Science Foundation Ireland so that they can support job creation next year.

‘I expect that about 30,000 jobs will be created next year through my Department’s agencies alone on the basis of the Government’s commitment today to support enterprise, research, development and innovation.

‘In particular, the €508 million capital investment for these agencies will allow us to continue to win foreign direct investments, grow indigenous exports and create high-quality sustainable jobs in the smart economy,’ said Minister O’Keeffe.

Minister O’Keeffe said the stimulus measures set out in the Budget, including the planned changes to the Business Expansion Scheme, the reduction in the air travel tax, the retrofit programme, and the extensions of the corporation tax exemption for new firms, PRSI exemption scheme and car scrappage scheme, will generate jobs and growth in the domestic economy.

‘The programme of activation measures will keep workers close to the labour market so that they are ready to take up the jobs that will arise as the economy recovers,’ said Minister O’Keeffe.

He said the Budget balances the need to broaden the tax base while at the same time protecting the enterprise community.

‘In particular, our top marginal tax rates will not disimprove and our tax wedge will remain competitive.

‘Importantly, too, our 12.5pc corporation tax rate will not change,’ said Minister O’Keeffe.

He said the enterprise economy remains resilient, with the export sector performing well and exports expected to increase by 5pc next year.

‘Foreign direct investments are continuing to grow and we are pricing ourselves back into the global marketplace by dramatically improving our competitiveness.

‘This Budget is the most challenging in the history of the State and we must all work together to return to sustainable economic growth, keep people in jobs and get more of our people back to work,’ said Minister O’Keeffe.

ENDS

Bernard Mallee, Press Adviser to Minister Batt O'Keeffe, Department of Enterprise, Trade and Innovation, on Tel: +353 1 631 3944, Mobile: +353 87 9173022, Email: bernard.mallee@deti.ie