Written Answers Nos. 1-20
14. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 51 of 29 June 2023, for a status update on his Department's engagement with the Department of Foreign Affairs with a view to developing a new business and human rights action plan and implementation body; and if he will make a statement on the matter. [44203/23]
Amharc ar fhreagraI recognise the importance of businesses having a focus on human rights. It is now expected by society that businesses consider how their operations can impact on human rights. Businesses have reacted well since Ireland launched its first National Plan on Business and Human Rights (2017 -2020) towards the end of 2017.
Ireland became the 19th state in the world to develop a National Plan. In December 2021, a review of the implementation of the Plan was brought to Government. It found that over 91% of commitments under the Plan were achieved, with plans to implement the remainder.
Stakeholder engagement is an important part of developing the second National Plan. In advance of initiating the new forum, a public consultation was launched in the summer and closed last month seeking the opinions of interested stakeholders to inform the development of the second Plan. Eleven submissions, from business representatives, trade unions, human rights organisations and academia, were received as part of a public consultation process which took place over the summer. The Department of Foreign Affairs and my Department are currently reviewing these submissions, which include a range of recommendations on the scope of the plan and monitoring and implementation structures.
Our Departments are working together to re-convene a Business and Human Rights stakeholder forum, involving representatives of Government, civil society and business, including officials from my own Department. Both Departments are in the process of identifying participants for this group, which will include business representatives. It is expected that the stakeholder group will convene a meeting shortly to discuss common themes emerging from the submissions and determine a viable pathway forward for the development and implementation of a second Plan.
The new Plan is expected to cover a multi-annual timeframe as was covered in the first Plan. The new National Plan is intended to build on the achievements of the first National Plan, while reflecting new developments in the international understanding of business and human rights, including new EU instruments. It will also align with the commitment in the Programme for Government to ‘ensure that the Action Plan on Business and Human Rights is further developed to review whether there is a need for greater emphasis on mandatory due diligence’.
15. Deputy Ruairí Ó Murchú asked the Minister for Enterprise, Trade and Employment if he will give an update on the work that is being carried out by his Department, with other Government Departments and State agencies, to find solutions for those who live in the North of Ireland and work remotely for southern-based companies; and if he will make a statement on the matter. [44395/23]
Amharc ar fhreagraThe Government is committed to facilitating remote and flexible working in a way which maximises economic, social and environmental benefits.
The expansion of remote and hybrid working in recent years has significant potential to help create a more inclusive labour market, to widen access to talent for employers and to improve regional balance in the economy, including the Border region.
I am aware, however, that the growth of remote and hybrid working has introduced a new context for cross border workers and for employers based in the State employing - or seeking to employ - workers residing outside the State, particularly in relation to taxation.
While the current position does not preclude an Irish employer from allowing an employee to work remotely, such an arrangement may result in implications for the employer and the employee from a tax perspective.
It is important to emphasise that the State cannot move unilaterally on this issue and that consideration must be given to International Tax Law, Double Taxation agreements and any changes are subject to international negotiation. Clearly, these are matters that rest primarily with the Minister for Finance.
My Department is nevertheless actively engaged with colleagues across Government and other public bodies bilaterally and through the Remote Work Interdepartmental Group and other fora to address this challenge and in this context, I would highlight the following:
- Agencies under the auspices of my Department are engaged with their client companies, and with the relevant state bodies on matters relating to cross-border remote working.
- My Department is continuing to engage with the Department of Finance to obtain better data on the nature and extent of cross-border working. The Department of Finance has commissioned the ESRI to undertake research into the prevalence of cross-border working, including remote and hybrid working, with this research currently underway.
- I understand that Revenue is continuing to look at ways to minimise the administrative burden of cross-border working for workers and employers.
- More broadly, the Department of Finance is actively engaging in international discussions on the policy implications of cross-border working. These discussions remain at a preliminary stage.
- The Labour Employer Economic Forum, LEEF, Shared Island Working Group, which brings together Government, employers and trade unions is scheduled to meet on 31st October to discuss the policy challenges posed by cross-border remote working. Participants will include my own Department, the Department of the Taoiseach, the Department of Finance, Revenue and the Department of Social Protection.
My Department will monitor and assess any developments very closely, taking into account the cross-border nature of many people’s lives on the island of Ireland and the significant role that cross-border working plays in the all-island economy.
16. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment when specific additional financial supports will be introduced to assist local authorities and community development organisations in the development of enterprise centres, in view of their importance in providing workspace for start-up businesses and small enterprises and the lack of such accommodation at present in areas such as County Cavan; and if he will make a statement on the matter. [44465/23]
Amharc ar fhreagraSince 2017, Enterprise Ireland on behalf of government has administered a number of successful schemes supporting the expansion of our regional entrepreneurial ecosystem. To date over a €130m has been invested, resulting in a network of EI supported projects, in such sectors as agri-food, food-innovation, digital innovation, entrepreneurship, energy and the bioeconomy.
EI is committed to strengthening the regional asset base, supporting new job creation, new enterprises and driving exports through expansion of regional enterprise. For example, in Deputy Smith’s own constituency, over €10m in funding has been allocated to capital projects and to new programmes supporting innovative clusters and enterprise accelerators such as Cavan Digital Hub and Bioconnect in Monaghan. Furthermore, both Cavan and Monaghan benefitted from the Enterprise Centre Scheme and previous Community Enterprise Centre scheme.
I am pleased that earlier this week I launched Enterprise Ireland's new Smart Regions Enterprise Innovation Scheme with €145m available to applicants. The aim of the scheme is to accelerate economic growth across all regions with a focus on enterprise development.
The Smart Regions Scheme is a mix of measures, providing an opportunity for newly built infrastructure, new programme supports and direct assistance that will encourage new innovative projects. It is designed to be enterprise led and aligned with existing priorities identified by the Regional Enterprise Plan groups across the country.
The Smart Regions Scheme will have four streams, and will support:
1. Local infrastructure projects
2. Innovation clusters and consortia
3. Services to SMEs to drive Innovative Solutions
4. Feasibility & Priming Grants
The Scheme is co-financed by the EU's European Regional Development Fund (ERDF) and details are available on EI’s homepage.
17. Deputy Marian Harkin asked the Minister for Enterprise, Trade and Employment if he will consider specific supports for small and medium operators in the retail sector due to the significant increased costs of operating a business, some that are out of the Government’s control and some that are directly related to Government decisions. [43827/23]
Amharc ar fhreagraI am very aware of the challenges that SMEs, in particular those operating in certain sectors, continue to face due to the cost of living, crisis. That is why the Government in budget 2024 has announced a package for business owners.
For example, we are introducing the Increased Cost of Business Scheme (ICOB) which will benefit up to 130,000 Small and Medium enterprises.
The aim of the Scheme is to provide financial support to those firms which have been most impacted by additional business costs, by providing a tiered grant equivalent to up to half business rates for this year.
This will also go some way to helping businesses meet the increase in the Minimum Wage to €12.70, which is obviously an important step towards the Government’s commitment to introducing a Living Wage.
I also welcome the range of tax measures in the Budget to assist start-ups and SMEs, including improvements to the R&D Tax Credit.
New funding and advisory programmes have also been put in place to help businesses across the country as part of Budget 2024.
Budget 2024 will deliver a real boost to businesses of all sizes; from an additional €9m to the Local Enterprise Offices which are vital for small businesses across the country, to a further €3m allocated to the Ukraine Credit Guarantee Scheme which provides low-cost loans to SMEs.
Full details of all supports available to businesses including the Business Users Support Scheme for Kerosene which is open until 30th October for applications is available on my Department’s website with a dedicated Retail Sector page.
That said, I recognise that it has become challenging for businesses to find the help they need, when they need it. So, this week I announced a new National Enterprise Hub which will include a dedicated website and phone line with a Hub Advisor to help businesses access State supports. Developed by Enterprise Ireland on behalf the Government, any business can call it for direct help in navigating the comprehensive suite of supports that are being offered to business throughout Ireland.
18. Deputy Seán Haughey asked the Minister for Enterprise, Trade and Employment if he is satisfied that Personal Injuries Assessment Board (PIAB) is providing a much-needed timely and cost-effective service to the public in assessing personal injury insurance claims. [44202/23]
Amharc ar fhreagraThe Programme for Government set down a commitment to enhance and reform PIAB. The overarching aim is to increase the number of claims settled through the Board and without the need for litigation. To meet this commitment the Personal Injuries Resolution Board (PIRB) Act 2022 was signed into law by the President on 13 December 2022.
The reform and enhancement of the Board through the PIRB Act 2022 should encourage more claimants and respondents to avail of the Board’s model to settle injury claims more quickly and less costly and contribute to reductions in insurance premiums.
The Act is being commenced over three phases this year. Phase 1 of the PIRB Act commenced this year on 13 February, phase 2 on 4 September and it is intended to commence phase 3 with all the elements relating to the introduction of mediation as a new service and the remaining provisions of the Act before year end.
The Central Bank’s National Claims Information Database (NCID) Reports show the savings in time and costs when claims are settled through PIAB. The Bank’s NCID Private Motor Insurance Mid-Year Report 1 published in April 2023 shows that the time taken to resolve claims through litigation is more than 2 years greater than claims settled through the Board.
The Report also shows that for claims of less than €100,000 in H1 2022 the average legal costs associated with settling claims through litigation was €17,813 compared to legal costs under PIAB of €1,156.
The new Personal Injuries Guidelines came into effect on the 24th of April 2021, which has resulted in the average PIAB award decreasing by 34% in 2022 compared to 2020 pre-guidelines. Both the Courts and PIAB must have regard to the Personal Injuries Guidelines when assessing awards which reinforces the benefits of the quicker and less costly PIAB process.
Following an initial decline in acceptance rates for PIAB awards post the introduction of the Personal Injuries Guidelines in April 2021 to 36%, acceptance rates have been increasing with the latest data showing they are holding at 48% and are close to the pre-guidelines acceptance rate of 51% in 2020.
19. Deputy Ruairí Ó Murchú asked the Minister for Enterprise, Trade and Employment if he will outline the engagement he, along with his Department and the IDA, have had with the State's tech sector in the past three months; and if he will make a statement on the matter. [44396/23]
Amharc ar fhreagraThe tech sector plays a pivotal role to the Irish economy, with 320 IDA client companies in the sector employing over 64,000 people. I regularly engage with tech companies through my own office and through officials in my Department and our agencies.
IDA Ireland has strong engagement with its technology client base to actively support clients through new mandates, expansions, sustainability and digital transformation initiatives and to offer support when companies are downsizing.
There has been modest contraction for some tech clients over the past 12 months. In most cases, the level of job losses has been consistent with, or less than, the level layoffs implemented elsewhere in their global organisations.
IDA Ireland continues to see a flow of business and in the last year has announced several new investments in microelectronics and semiconductors, in cloud computing, and in data storage. It is important to note that technology company commitment to Ireland remains exceptionally strong and Ireland remains an attractive location of choice for companies. Key investments of scale recently announced include, for example, from ADI, Intel and AMD.
20. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the continued efforts of his Department in isolating and identifying the cause of the rising costs of energy and the negative impact on manufacturing, services and distribution sectors; the extent to which efforts continue to provide replacement sources by whatever means, preferably locally sourced; and if he will make a statement on the matter. [44463/23]
Amharc ar fhreagraI and my Department are extremely conscious of the cost pressures and competitiveness challenges facing businesses as a result of high energy prices. The Government has been consistent in its focus on mitigating the worst of these impacts for businesses in the short term, while investing in the long-term resilience and sustainability of our energy system so that we are not so exposed in future. The Budget, announced on Tuesday, provides a balance of short-term supports and prudent planning for capital investment and integration of renewable energy.
Ireland remains highly dependent on important fossil fuels, and the price of these - determined primarily by the global market supply - are the main driver of petrol, diesel and natural gas prices, and also electricity prices which are still largely determined by the natural gas price notwithstanding that increasing levels of renewable energy are coming on to the grid. While we have seen wholesale market prices for gas and electricity falling in recent months, they remain at levels substantially higher than in 2020. Energy suppliers in Ireland typically hedge energy costs forward over a period of up to 18 months to smooth the effects of gas price volatility. Therefore, as wholesale prices drop there will be a lag before they feed into retail prices for most businesses. While we have seen some price reductions already, I think retailers will have scope for further price reductions and the Government will continue to push for greater price competition in the market. Businesses can shop around to encourage this too.
Since energy prices spiked before and following the Russian invasion of Ukraine, my Department and I have looked to mitigate the worst of these impacts on Irish businesses, with financial supports including the Temporary Business Energy Support Scheme (TBESS), the Ukraine Enterprise Crisis Scheme, and the Business Users Support Scheme for Kerosene (BUSSK). Crucially, we are also helping businesses invest in mitigating their exposure to price volatility, and invest in decarbonisation at the same time. Minister Ryan and I amended the Non-Domestic Microgen Scheme to facilitate access to solar power for businesses while SEAI's Support Scheme for Renewable Heat offers generous grants on heat-pumps and biomass use, and the Green Transition Fund is available for manufacturers through Enterprise Ireland and IDA.
All these interventions are to support businesses immediately, but we also recognise that significant change in our energy system is required to not only provide a stable and price competitive environment but also to meet our continued climate obligations. My Department is preparing an Industrial Strategy for Offshore Wind to maximise the economic benefit to Ireland of the energy transition. The Government's Hydrogen Strategy and forthcoming Biomethane Strategy further demonstrate our commitment and intent to continue producing and using more renewable energy in Ireland, supporting regional employment, and preparing Ireland to be a key destination for low and zero carbon enterprise development.
