EU delays blocking job creation – Naughten

In Business & Jobs by Denis Naughten

Government plan to create 240 jobs per week hindered by EU Commission delays


Denis Naughten TD has called for action to be taken to tackle EU delays which are hindering the job creation incentive scheme announced in last December’s Budget. The scheme is designed to get cash into businesses with potential to create jobs.

Speaking in the Dáil this morning, Denis Naughten called for action to expedite EU Commission approval for the Employment and Investment Incentive Scheme, which is focused on the 230,000 small and medium sized enterprises (SMEs) in the country who are employing 900,000 people, and where they have the potential to take on additional staff but need investment.

“It was expected that this scheme would be approved by the EU Commission before the end of June 2013, but to date the job creation measure has not become law under the Finance Act 2013,” stated Denis Naughten.

Deputy Naughten called on the Government to re-double efforts to get the required EU approval for this support for a sector of the economy which will form the cornerstone of our economic recovery and job creation strategy.

“Without our SME sector growing and creating jobs, our country will face a further decade as an economic zombie,” he stated.

“Government has already announced a plan to create 240 direct and indirect jobs every week within the manufacturing sector, which is dependent on companies accessing vital cash investment such as that provided by this Budget measure.

“But every business in Ireland today is struggling in trying to get access to cash to invest in their business, and this is a significant barrier to job creation. While banks are lending, the conditions mean that you nearly have to be able to prove that you don’t need the money before they will release it. So this measure is vital.

“But while the EU Commission has been quick as part of the Troika to tell us where we need to cut, it seems that it has dragged its heels when it comes to approving job initiatives. Not only will approval of this Budget measure benefit job creation but also the distribution of jobs because SMEs are based in every town in Ireland.”