Vol. 622 No. 1
37 Mr. Bruton asked the Minister for Enterprise, Trade and Employment the dates on which he expects each of the agencies under his auspices listed for decentralisation to complete the process; the extent to which existing specialist staff will be lost in the move; the impact on the capacity to deliver quality service; and if he will make a statement on the matter. [24057/06]
Four of the agencies under the aegis of my Department are due to decentralise as follows: FÁS is to move 383 posts to Birr, County Offaly; Enterprise Ireland is to move 292 posts to Shannon; the Health and Safety Authority is to move 110 posts to Thomastown, County Kilkenny, and the National Standards Authority of Ireland is to move 132 posts to Arklow, County Wicklow.
Under the Government's decentralisation programme, FÁS is due to transfer its head office including 383 staff to Birr, County Offaly with a target date of 2009. There is no sub-category for specialist posts. The FÁS plan is predicated on the maintenance of services while the decentralisation programme is being implemented. FÁS is confident that the process can be managed in such a manner that specialist services provided by the organisation will be unaffected.
The Health and Safety Authority is to move 110 posts to Thomastown, County Kilkenny. The authority has been advised by OPW that as the site procurement is in the final stages, the current time line for availability for occupancy is late 2008. Twenty-one new recruits, along with four serving staff who wish to move in advance of the Thomastown premises being available, will shortly move to interim accommodation in Kilkenny city.
It is assumed the specialist staff referred to hold inspector positions. It is not possible for the authority to predict what decisions individual staff members may take in respect of their career choices. Therefore, it is impossible to predict what specialist staff will be lost to the authority during the decentralisation programme.
All specialist posts based in the Dublin headquarters of the Health and Safety Authority are earmarked for decentralisation, but as part of the decentralisation plan, the need to maintain an office in Dublin to service the Dublin region would require 34 specialists.
Currently the authority has approximately 100 inspectors of which in excess of 60% are based in Dublin. Of these, seven have applied through CAF to relocate. In addition, a number of specialist posts have also been filled on promotion on the basis of the final location of the post being Thomastown. Nine new inspectors have been recruited on the basis that their eventual location will be Thomastown.
The figures outlined exclude REACH staff. All staff, both specialist and administrative which includes up to 44, sanctioned for REACH will be based in Thomastown.
I understand the authority has identified loss of specialist staff as a real risk and has proposals in its decentralisation plan to deal with that risk. The authority has a comprehensive programme of work approved by the board of the authority and presented to my Department in accordance with the provision of the Safety, Health and Welfare Act 2005. The authority is fully committed to delivering on its programme of work in 2006 and subsequent years while moving forward with its decentralisation implementation plan as published on the website and updated from time to time.
The NSAI projects April 2009 as the completion date under its current decentralisation plan, for the move of 132 posts to Arklow. NSAI has 74 posts of specialist skills planned for relocation under the decentralisation move to Arklow. Currently, eight holders of these specialist posts have expressed their willingness to transfer with their post to Arklow. The decentralisation plan developed by the authority addresses the delivery of quality service and recognises the requirement to manage this issue.
The Government has decided that the headquarters of Enterprise Ireland, including 292 posts, will relocate to Shannon as part of the decentralisation programme. Of these posts, some 107 are in the technical and professional grades, while 25 are senior managers working in general administrative grades with specialist skills and experience, giving a total of 132 specialist posts in all.
The most recent information from the CAF indicates that 19 Enterprise Ireland staff applied for decentralisation to Enterprise Ireland in Shannon. Of these, seven are in technical and professional grades, based in Dublin, and in posts that have been identified for relocation to Shannon; and four are in technical and professional grades and are based outside Dublin or in posts that have not been designated for relocation to Shannon.
The timing of the major move of Enterprise Ireland staff to Shannon town is dependent on having sufficient, suitably qualified and experienced people opting to transfer to Shannon, within the terms of the Government decision, to undertake the work of the areas scheduled for location in Shannon. It is too early at this stage to predict with certainty when a sufficient cadre of suitably qualified and experienced staff will be in place. Therefore, while a preferred site has been identified in Shannon, in consultation with the OPW, it is not possible to say when the move to Shannon will be completed.
Does the Minister believe Enterprise Ireland can continue to deliver its services if less than 5% of its staffing is willing to move to the new location? The same proportion applies across all the agencies — less than 5% willing to move with their services. Is the Minister stating that these boards guarantee that they can continue to deliver services in the new locations despite losing up to 95% of their staff, with the result that he must fill vacancies or achieve new recruits for those vast gaps that are opening up?
Is he satisfied that there will not be losses of critical skills? In reply to a parliamentary question of mine, he indicated that of nearly 300 key specialist skills staff in these agencies, less than 25 are willing to move. I ask the Minister to explain to the House how these agencies can continue to deliver services if there is such a degree of meltdown in their critical areas of expertise. In his reply, the Minister did not mention how he thought they could deliver a quality service without these critical staff and that is a critical issue.
As the Minister responsible, what offer will he make to the members of staff who opt to remain in Dublin, as is their right? What is he saying to the staff in Enterprise Ireland, in the Health and Safety Authority, in the national standards authority or in FÁS? What options do they have if they opt to stay in Dublin but their body, their employer with whom they have a contract, moves out?
I am satisfied the agencies will manage this process in such a way as not to undermine or jeopardise their core activities or performance.
What evidence does the Minister have of that?
I did not interrupt Deputy Bruton and I would appreciate being allowed the opportunity to reply.
Enterprise Ireland's results, published yesterday, are a clear manifestation that the decentralisation process is not undermining its performance or capacity to achieve and to work. Subsequent to previous decentralisation of major agencies such as the Central Statistics Office, there was no evidence that the activities, services or standards of agencies or of Departments or units of Departments transferred were undermined.
It really depends on one's political viewpoint and one's commitment to the concept of decentralisation. There are challenges and as I stated publicly already, we have to approach the area of agencies differently than we approached the area of the Civil Service. My Department, for example, which is transferring to Carlow, has made rapid progress on that decentralisation project and is well in line to achieve its target. Clearly, the same experience has not been evident in agencies. Nonetheless, the Health and Safety Authority is making good progress in terms of the Thomastown site and being in a position to move on an interim basis to Kilkenny city.
We will continue to work through the centralised arrangements in consultation with the social partners to advance the agenda, but without undermining the activities of the agencies concerned.
Does the Minister accept that it is not sufficient to state that because the CSO move worked, this will work in all these specialist agencies? What evidence has he given that it will work? Can he give me the business case he put together stating why Enterprise Ireland should move as he proposes? What is the business case for the move of FÁS, the HSA and the national standards authority? Is it not the case that no business case was made by his Department for these moves? These were moves decided — as he correctly stated — on a political basis, not on the basis of any proper evaluation of the issues.
Is it not incumbent on him, as Minister, to spell out this different approach which he states must be taken with our agencies? He is responsible for these agencies. He is responsible for the delivery of their services. He should tell us the different approach he is now taking so that they can build their plans on some certainty of what the political approach will be. I have not heard of a single offer to the staff in Enterprise Ireland, FÁS, HSA or NSAI as to what they will get if they opt to remain in Dublin and, as the Minister will be aware, up to 90% of them are making that decision. The Minister must tell us this new approach. Just because he states this is a sort of political stroke, he should not expect that we go away and state we do not hold him accountable for delivering quality services from these new locations. We want to see the evidence and the strategy.
At no stage have I stated this is a political stroke and Deputy Bruton is clearly distorting what I stated in that regard. I appreciate the Deputy's honesty in saying he is basically against decentralisation.
I am not saying that.
I must take that on board.
That is a political stroke. The Minister is completely misrepresenting what Deputy Bruton said.
No, it is a fact. Members are taking a two-sided approach to decentralisation. Many Dublin-based Members and Opposition spokespersons articulate a negative attitude to decentralisation to please their constituency——
When will the Minister answer the questions? What is the business case? What is his strategy? He should not lecture the Opposition on what he thinks we might think.
——while their colleagues down the country are endlessly beseeching Ministers about decentralisation.
The Minister will not answer the questions.
A duplicitous approach is emerging on the issue of decentralisation.
The Minister will not answer the questions.
I acknowledge challenges must be overcome to successfully implement the programme but the bottom line is the reason behind it is to increase and facilitate development throughout the regions and to act as a catalyst for further development in those regions.
The Minister has not answered the questions.
38 Mr. Quinn asked the Minister for Enterprise, Trade and Employment the action he intends to take regarding the black economy; the actions which have been taken by his Department or by agencies under his control to date in 2006 to crack down on companies, organisations or persons operating in the black market; the reassurances he can give to consumers at risk of exploitation and legitimate businesses at risk of losing sales to unregulated competitors; and if he will make a statement on the matter. [23523/06]
The "black economy" is generally described as the hidden sector of the economy where private cash transactions go unreported and hence untaxed. As such, the policing of this area is a matter for the Revenue Commissioners in the first instance. In the context of the new social partnership agreement, which is subject to ratification over the coming weeks, it is proposed that the hidden economy working group will be relaunched immediately upon its ratification and will meet on a monthly basis or as appropriate thereafter. The Revenue Commissioners chair this group which consists of members from ICTU, CIF, SFA, ISME and the Departments of Social and Family Affairs and Enterprise, Trade and Employment. It is also anticipated that the new office of the director for employment rights compliance, when established, will join this working group.
I am advised by the Revenue Commissioners that they are continuing with their programmes to tackle the problem of the hidden economy through their routine audit and compliance activities, with a special emphasis on the construction sector in 2006. Furthermore, special compliance districts throughout the country actively pursue intelligence and inquiries surrounding all aspects of the hidden economy.
With regard to the activity of bodies operating in the context of my Department's area of policy responsibility, the Director of Corporate Enforcement regulates the compliance of companies and their officers with company law rather than taxation. However, sections 17 and 18 of the Company Law Enforcement Act 2001 provide for the sharing of information between the Revenue Commissioners and the Director of Corporate Enforcement and a memorandum of understanding has been agreed between the two bodies to give concrete effect to this. If, in the course of investigation of a particular company, a significant taxation issue comes to the attention of the director and his staff they apprise the Revenue Commissioners accordingly. Equally, there is provision for information flow from the Revenue Commissioners to the Office of the Director of Corporate Enforcement.
I thank the Minister for his reply, although I note his Department's reluctance to take this question in the first instance. On the basis of his reply, the Department does not wish to have anything to do with attempting to bring the black economy into the white or grey economy. Does the Minister accept ISME's assertion that departmental agencies, including its inspectorate, should assist the Revenue Commissioners to ensure operators in the black economy competing with legitimate small firms are properly policed and investigated? This is not only about taxation but about operators breaking health and safety, company, planning and transport regulations, which means an illegal company operating outside the rules poses a serious threat to legitimate small enterprises that are trying to compete on a level playing pitch. However, they are being undercut by people who break more than taxation rules. Should the Minister's Department, rather than the Revenue Commissioners, take the lead in combating the black economy, which is a complete reversal of the opening sentence of his reply?
A cross-departmental approach is needed to tackle the hidden economy as no Department in isolation can deal with it. We are anxious and committed to undermining the black economy because it affects the entire edifice on which most of our social progress is based and on which legitimate business is carried out. However, the Revenue has a significant role to play on the working group with ISME, SFA, CIF and ICTU. That group could make a co-ordinated attack on the hidden economy.
Labour law compliance is important in tackling this part of the economy. We made a positive contribution to the new social partnership agreement, particularly in paragraphs 11 to 26, inclusive, which deal with labour law compliance and employment rights. There is a strong shared commitment between the social partners and Government to improved compliance with legal requirements underpinned by strong enforcement. A major package of measures has been agreed such as the establishment of a new statutory office for employment rights compliance.
Significantly, similar to the ODSCA, the new office will have clear links to Revenue through the memorandum of understanding and the legal underpinning of its establishment. The office will be permitted to share information with the Revenue. Such co-ordination is needed to crack down on much of the illegal activity as people avoid taxation and various other legal requirements. The new package of measures, outlined in paragraphs 11 to 26, inclusive, of the new agreement manifests a strong commitment on my behalf and that of the Department to tackle the hidden economy effectively and in a co-ordinated manner with other relevant authorities.
Will the new working group be chaired by the Revenue Commissioners rather than the Minister's Department?
Yes.
If the group is driven by the Revenue, it will miss much of the action. It is estimated the value of the black economy could be as high as €15 billion a year. While it is difficult to measure, the OECD and Jim Power of Friends First say it is enormous. Does the Minister agree that many activities in the hidden economy other than tax evasion fall within the statutory remit of his Department and it should be the lead agency in driving the new group in conjunction with other Departments? For example, work permits and compliance with company law and health and safety standards are vested in his Department through statutory instruments. I do not get a sense from the Minister that his Department looks on this as even a peripheral concern, not to mind a central concern, and it considers this to be primarily a Revenue issue. More than 100,000 enterprises that employ fewer than ten people are struggling daily in a buoyant economy because illegal, pirate and cowboy operators are not complying with the law. These enterprises are forced to cut corners and reduce their compliance with legal standards, which we all support.
They desperately need help and although the Minister has primary responsibility for the economy and employment, as well as company and employment law within the economy, I do not get the impression that he envisages for himself a central and primary responsibility in the minimisation — it will never be eradicated — of the operation of the black economy. Some people have suggested it has grown by 50% in the past 20 years.
I must reject the Deputy's assertion that neither I nor my Department are committed to this issue. It appears as though the Deputy had made up his mind in that regard before asking the question or hearing the reply. For example, our contribution to the social partnership talks in respect of labour law compliance has been strong. If one considers health and safety, within the past year my colleague, the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Killeen, has finalised and brought into law a substantial new consolidated Safety, Health and Welfare at Work Act, which contains extremely significant obligations for employers regarding their responsibilities. In terms of company law, the Department is very committed to the Office of Director of Corporate Enforcement, which comes under the aegis of my Department. The establishment of this office is a recent development. Hence, there is no evidence at all to suggest a reluctance on the part of my Department to deal with the issue of the hidden economy.
The Minister should show some leadership in this regard.
I do not see anything wrong with the agreement on the part of the social partners to the effect that Revenue should chair a working group on this matter. It is of key importance that everyone should be represented on the working group to ensure co-ordination. Revenue is a powerful force with regard to the hidden economy and its impact on the latter should not be underestimated or understated. As far as the new director within the Office of the Director for Corporate Enforcement with responsibility for labour law is concerned, it is of key importance that he or she has the legal capacity and obligation to relay any Revenue-related matters, which he or she might encounter in the course of specific investigations, back to Revenue. Such intersectoral and interdepartmental synergies will achieve the best results in this respect.
The House should proceed to Question No. 39.
39 Dr. Cowley asked the Minister for Enterprise, Trade and Employment if he will address the crisis in Ballina, County Mayo where the unemployment rate is twice the national average; his views on whether this situation needs to be addressed in view of the fact this town has lost 1,000 jobs in recent years; the plans which are in place to address same; the proactive steps being taken by the IDA; when the IDA will begin to sell Ballina for what it is and to entice much needed industry to the region; and if he will make a statement on the matter. [23989/06]
Unemployment is measured through the quarterly national household survey as published by the Central Statistics Office. The survey provides a breakdown of data on a regional basis only, and not on specific towns. The most recent survey data published at the end of May shows the national unemployment rate is 4.2%. The equivalent rate for the western region, which includes Ballina, is 4.3%.
Live register data are available for specific areas such as Ballina. However, they are not designed to measure unemployment. In addition to showing the numbers claiming unemployment assistance and benefit, they also include part-time, seasonal and casual workers, who are entitled to unemployment benefit. In May 2005, a total of 1,437 people were on the live register in Ballina. The most recent data available are for May 2006, which show that this number has fallen to 1,308.
State support for enterprise and job creation is channelled through the industrial development agencies, and while I may give general policy directives to the agencies under the Industrial Development Acts, I am precluded from giving directives regarding individual undertakings or from giving preference to one area over others.
I have been assured by the agencies under the remit of my Department that they are endeavouring to attract new investment, to encourage the start-up of new businesses, to grow existing businesses and to develop the labour market in County Mayo.
IDA Ireland actively promotes Ballina for new foreign investment and since January 2003, five first-time site visits to Ballina have taken place. In addition, IDA Ireland actively works with the existing base of overseas companies in Ballina and Mayo to encourage them to grow and expand.
IDA Ireland is also developing world class business and technology parks at a number of towns throughout Mayo. The goal is to ensure that such locations have the appropriate property solutions, tailored to specific key sectoral targets, to attract inward investment. In Ballina, IDA Ireland has been in discussions with Mayo County Council regarding the acquisition of a site of approximately 27 acres in local authority ownership on the Sligo Road. The IDA has completed site investigation works and has obtained planning permission for site development works to ensure these lands are suitable for industrial purposes prior to acquisition. I understand the IDA awaits contract documentation and copy of unburdened title from Mayo County Council.
In terms of job creation, Enterprise Ireland activity is focussed on the creation of new jobs through supporting entrepreneurs setting up new high potential start-up companies, HPSU, the retention and creation of new jobs in existing companies and in enhancing the innovation capability of Ireland at a national and regional level through support of research in companies and third level institutions. A new Enterprise Ireland supported HPSU company, Heatsolve Limited, commenced operations in Ballina in early 2005.
Additional information not given on the floor of the House.
The overall aim of Enterprise Ireland's strategy is to transform Irish companies into market focused and innovation driven businesses and to increase their exports, sales and employment. Enterprise Ireland has approved funding support of more than €6.4 million and paid more than €2.9 million to companies in County Mayo in the period from 2003 to date. Of this, Enterprise Ireland client companies in the north Mayo area have been approved funding of more than €1.2 million.
Enterprise Ireland has worked in close co-operation with Mayo County Council in the development of the broadband metropolitan area networks in Ballina and Kiltimagh, both of which are now complete.
During 2005, Mayo County Enterprise Board approved a total of €437,965 to 23 projects and paid out €301,239 in grant assistance, which resulted in the creation of 53 net jobs in county enterprise board-assisted companies throughout the county. Five of the 23 projects which received a grant approval in 2005 were in the Ballina area and accounted for €82,400, or 19%, of the total grant approvals in Mayo in 2005. To date, a total of €28,579 has been paid out by Mayo County Enterprise Board.
Mayo County Enterprise Board's 2006 programme budget is, at more than €900,000, 12.9% greater than the 2005 allocation. This increase enables Mayo County Enterprise Board to fulfil its function and remit in maximising entrepreneurial development in the microenterprise sector throughout the county.
I am satisfied the policies being pursued by the agencies under the remit of my Department, together with the Government's commitment to regional development will continue to bear fruit in terms of the creation of sustainable development for the people of Ballina and of the west generally.
I thank the Minister for his reply. I have had numerous replies from the Minister in this regard as I have raised the issue consistently. As for the 27 acre park, it is disgraceful that the IDA still lacks a site, premises or business park that can be marketed, sold or exhibited to potential investors. This is a scandal and marks a Government failure. In the past nine years,Ballina has lost 1,340 jobs and only 400 replacement jobs have been created, which constitutes a net loss of nearly 1,000 jobs. I can only describe this as a mortal blow.
Ballina is an unemployment black spot. Although the Minister cited an unemployment rate of 4%, the rate stands at 11% in Ballina, which is twice the national average.
Where did the Deputy acquire that figure?
The numbers on the live register in Ballina exceed those for the entire County Roscommon, which speaks for itself. The fast-tracking of the industrial park on the Sligo Road must be ensured because the IDA needs a site.
Moreover, while the Minister may assert that the N26 Ballina to Bohola bypass is the responsibility of the National Roads Authority, he must exercise his collective responsibility as there must be some movement in this regard.
Although the Minister stated the IDA is playing its part, this is not the case and it has failed miserably. The IDA denies it is at fault and points to the absence of infrastructure in Ballina, which is abysmal. In previous replies, the Minister claimed to be confident that the national development plan would bear fruit for Ballina. However, there has been an underspend of €3.8 billion, including a €500 million underspend on transport. How can Ballina survive without the requisite infrastructure to make it competitive? This is the story of the west. Can the Minister do better than this?
Apparently, a couple of hundred million euro in seed capital will be made available. Will any of it be made available to Ballina companies? Will any of it reach companies from Mayo, or from the west, to allow people from Mayo to rise above their present abysmal state? The scale of failure has been abysmal. While the Minister has claimed advances are being made in respect of the business park, in reality the only advances being made are in the state of neglect of the west and of Ballina in particular. Can the Minister shed some light in this respect?
Unemployment has been reduced in Ballina from 1,437 to 1,308 in the past year. Members should be careful in respect of the language they use.
The Minister should try to tell that to 2,000 people plus.
I was in Mayo recently and to describe either conditions or indigenous business there as abysmal is ridiculous and should not be done. County Mayo has a good indigenous sector, with some excellent local companies which create good employment. While challenges certainly exist in respect of infrastructure, there is a significant number of positive factors in County Mayo, not least the number of strong indigenous companies that deserve to be supported and to have their successes articulated. The word "abysmal" does not rate and is inappropriate and irrelevant to the quality of many of the companies which operate there.
As for venture capital funding, I anticipate that a number of new high potential start-up companies in Mayo and, hopefully, in Ballina, will emerge and will avail of the funds. The money in question is not given away. It must be earned in terms of the quality of companies, their products and new ideas. The money will follow ideas and products which have good commercial realisability, potential etc.
In addition, the Department has received good feedback from towns in County Mayo in terms of responding to Enterprise Ireland's community enterprise centres. I understand ten community enterprise centres have been funded in County Mayo, which illustrates good local community attitudes to enterprise and a willingness of local communities to develop their own companies and so forth. As the Deputy is aware, the most recent case concerned IRD Kiltimagh Limited, for which €300,000 has been approved for an expansion to its existing centre.
I visited the Galway-Mayo Institute of Technology recently to open the innovation centre on the Castlebar campus. This also constitutes a good success story which augurs well for a good relationship between that institute and local businesses.
As for the IDA and the proposed site, this is one of the biggest problems in respect of foreign direct investment. The Deputy cannot blame the IDA for this, as some people do, as there is a problem with the title of the site.
Surely, another site could be procured.
The Minister should be allowed to speak without interruption.
I understand IDA Ireland does not want to sell short the county council which invested significantly in that site as part of an agreement. I accept people have different ideas and members of my party articulated to me that perhaps a different site should have been selected a number of years ago. I cannot retrospectively resolve that.
This is a major challenge. Ideally, securing that site would open up and pave the way for a more effective approach to attracting industry, and I must acknowledge that. However, one cannot state it is a matter for IDA Ireland alone. Locally, heads must be put together to see whether we can resolve it.
Does the Minister think that an 11% unemployment rate is abysmal?
From where did the Deputy get that figure?
It is twice the national average rate and more than County Roscommon. It is abysmal. The Minister must take action on Ballina.
I do not know from where Deputy Cowley got the figure of 11%. The live register is not the unemployment register and the unemployment rate is reducing in Ballina. I met the chamber of commerce in Ballina and people there are anxious to bring in foreign direct investment as well as developing their own. That is the issue. Regarding the site development works, the most pressing challenge is locating and securing title to the site so we can develop it and make it available to potential foreign direct investors.
40 Mr. P. Breen asked the Minister for Enterprise, Trade and Employment the measures he and job creation agencies are taking to create the potential of 3,500 jobs at the Ennis Information Age Park in Ennis, County Clare; the current employment numbers at the park; and if he will make a statement on the matter. [24056/06]
Job creation measures in the Ennis Information Age Park, IAPE, and elsewhere are a matter for the relevant industrial development agencies and not one in which I have any direct involvement. As I indicated in response to previous similar parliamentary questions, Shannon Development's 30-acre information age park in Ennis, which opened on 9 June 2005, is in the early stages of a long-term development. The park is intended to provide a high potential start-up base for Ennis and County Clare which will also accommodate appropriate foreign direct investment companies brought to Ireland by IDA Ireland.
Shannon Development estimates that, when completed, the park has the potential to facilitate the creation of an estimated 3,500 high value jobs in more than 700,000 sq. ft. of high quality office accommodation. At present, the total space let to enterprises is 5,000 sq. ft. and more than 8,500 sq. ft. are available for letting in three units of large floor office space suitable for second stage incubation projects.
Phase one of the project involves an investment of €11 million by Shannon Development in a new InnovationWorks facility designed to fast-track the development of Irish high potential start-up enterprise. Shannon Development estimates that €110 million will be invested between the public and private sectors in the new park over the next 15 years.
Prior to the opening of the park, Shannon Development had 12 Irish industry client companies in the Clare Business Centre. All 12 companies transferred to the park when it opened because the Clare Business Centre was subsequently closed as part of Shannon Development's strategy of building a more modern business friendly incubation centre. One of the 12 companies subsequently closed. In addition to the transferred companies, three new companies formed since the park opened. The total employment in the client companies which originally transferred to the park was 17. The number of new jobs created by those 11 transferred companies and the three new companies formed since the IAPE opened is 20, bringing the total to 37. Shannon Development is confident that the early growth shown will continue to develop in the future.
In addition, Shannon Development accommodates Clare County Council which will rent 20,000 sq. ft. of office space at the park until it moves to its new headquarters next year. This is a short-term arrangement and Shannon Development has held back sufficient space to accommodate potential foreign direct investment client requirements by IDA Ireland.
Shannon Development will continue to attract and help establish high potential start-ups in the park through its venture development process. This process encapsulates the various stages of business development from idea generation, feasibility study stage, project development, market launch and business expansion and offers an integrated package of business development programmes to achieve this. IDA Ireland works closely with Shannon Development in the provision of suitable property solutions for potential investors to the county. The development of Ennis Information Age Park has become an integral part of IDA Ireland's international marketing programme and will be pivotal in attracting new investors.
I thank the Minister for his reply. I was present last year when he officially opened the Ennis Information Age Park. Regarding the potential for 3,500 jobs, the first phase cost Shannon Development approximately €11 million. Does the Minister think the creation of only 20 jobs in the first year is a very poor return for an investment of €11 million?
Has confusion over who is involved when it comes to enterprise activities in Clare led to a downward trend in job creation in Ennis and surrounding areas? Will the Minister assure me that, on switching Shannon Development's enterprise functions to IDA Ireland and Enterprise Ireland, they will be able to attract more indigenous and foreign investment industry?
Approximately 4,500 people leave Ennis and its surrounding areas every day to commute to Limerick and Shannon. Ennis is becoming a dormitory town. Approximately 570 jobs were lost between 1999 and 2005. Organic Lenses and Monster Cables created approximately 100 and 50 jobs respectively. Will the Minister elaborate on the role of Enterprise Ireland in attracting industry to Ennis Information Age Park? Does he agree that IDA Ireland's performance in Ennis was very poor? Does the Minister believe it is value for money to spend €11 million to create 20 jobs in 12 months while there is potential for 3,500 jobs?
Shannon Development is responsible for the development of Ennis Information Age Park. It always made clear that it is a 15 to 20-year development. I understand all local Deputies supported that initiative by Shannon Development and continue to do so. To be fair to Shannon Development, it almost manages within its own resources. The manner in which it developed its property portfolio generated significant revenues which enabled it to plough it back into enterprise development.
The most recent successful company it supported was Stockbyte, based in the technology park in Tralee, which was floated and is a great success. I met Stockbyte representatives prior to the floatation and they articulated strong appreciation for the role of Shannon Development in the company's early stage support.
I gave a new mandate to Shannon Development which gives it certainty and security in terms of the broad regional economic development of the region in the future. It is important that the national and international resources which Enterprise Ireland has are brought in a more focused and effective way to many of the indigenous companies in the Shannon region. That would be a win-win situation for all concerned.
Clare has a strong foreign direct investment base, contrary to the rhetoric articulated from time to time. Total State supported foreign direct investment employment now represents approximately 15% of the labour force in County Clare. That compares with 7% in the national labour force. I accept that includes the Shannon Free Zone as well as IDA Ireland backed employment. Clare has been a good magnet for foreign direct investment.
Not Ennis.
Clare has been and Ennis is——
What about Ennis? That is the priority question.
With respect, Deputy Pat Breen mentioned other places in County Clare.
A total of 570 jobs were lost in the Ennis area.
Towns will always have ongoing issues. We must include——
It is the capital town.
I want people to examine matters with a regional focus. If we cannot even consider matters with a county focus, our industrial policy will go nowhere fast strategically. County Clare has strong quality companies such as Roche, Olympus and Essidev which provide high quality jobs and are expanding. Deputy Pat Breen might be interested to know the employment in IDA Ireland companies had strong growth in 2005. It increased by 10%. It is not only about bringing in new companies. It is about increasing the range and functions of existing companies to increase employment, which happened in 2005. Clare is especially strong on pharmaceuticals and medical technologies. With progress on the Ennis bypass and the environmental impact study on the Crusheen to Gort section of the N18 which was published in February, we are also acting on infrastructural issues which are important for job creation.
Regarding the 3,500 potential jobs at Ennis Information Age Park, are any new jobs in the pipeline for that centre? I know Clare County Council takes up some of it. Does the Minister consider 20 jobs at a cost of €11 million is good value?
Stage one involves an investment of €11 million and all the infrastructural work. I would like to see more jobs but, having said that, Shannon Development has always made it clear that it is a long-term, 15-year project. We will give any support we can to Shannon Development to support companies to base themselves at the location in question, be they indigenous or foreign direct investors.
41 Mr. Eamon Ryan asked the Minister for Enterprise, Trade and Employment the number of offices and agencies operating within his Department; the functions with which they are charged; and the budgetary allocation afforded to each. [24135/06]
There are currently ten agencies and 12 offices operating under the aegis of my Department. Their functions and budgetary allocations for 2006 are as outlined in the following tables.
|
Name of Organisation |
Functions |
Budgetary Allocation 2006 |
|
€ |
||
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Forfás |
Forfás is the national policy and advisory board for enterprise, trade, science, technology and innovation. The broad functions of Forfás are to advise the Minister on matters relating to the development of industry in the State; advise on the development and co-ordination of policy for Enterprise Ireland, IDA Ireland, Science Foundation Ireland and such other bodies (established or under statute) as the Minister may, by order, designate; encourage the development of industry, technology, marketing and human resources in the State; encourage the establishment and development in the State of industrial undertakings from outside the State; and advise and co-ordinate Enterprise Ireland, IDA Ireland and Science Foundation Ireland in regard to their functions |
35,351,000 |
|
FÁS |
FÁS is Ireland’s National Training and Employment Authority. The function of FÁS is to provide training and re-training in and for employment; recruitment service; employment schemes; placement and guidance services; assistance to community groups; advice for people returning to Ireland, those seeking employment in Ireland or elsewhere in the EU; information, advice or research on labour market issues. |
974,375,000 |
|
Health and Safety Authority |
The Health and Safety Authority is the national statutory body charged with responsibility for the enforcement of occupational safety and health law; the promotion and encouragement of accident prevention; and the provision of information, advice and research. The authority is a state-sponsored body, established under the Safety, Health and Welfare at Work Act 1989, formerly known as the National Authority for Occupational Safety and Health (NAOSH). Since the passing in 2005 of the Safety Health and Welfare at Work Act 2005 the authority’s remit is now based on the provisions of that Act.The authority is the designated interim national competent body for the administration and enforcement of EU chemicals regulation in this country and it is also the national competent authority for the implementation of EU regulations concerning transportable pressure equipment. |
20,598,000 |
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The Industrial Development Agency Ireland (IDA Ireland) |
The functions of IDA Ireland are to promote the establishment and development, in the State, of industrial undertakings from outside the State; to make investments in and provide supports to industrial undertakings which comply with the requirements of the enactments for the time being in force; to administer such schemes, grants and other financial facilities requiring the disbursement of European Community funds as may from time to time be authorised by the Minister for Enterprise, Trade and Employment with the concurrence of the Minister for Finance; and to carry out such other functions as may from time to time be assigned to it by Forfás with the consent of the Minister for Enterprise, Trade and Employment. |
139,218,000C3 (Property programme not included in finance figure). |
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Enterprise Ireland (EI) |
EI is the Irish State development agency focused on transforming Irish industry. The mission of EI is “To accelerate the development of world-class Irish companies to achieve strong positions in global markets resulting in increased national and regional prosperity”.Its focus is on achieving export sales; investing in research and innovation; competing through productivity; starting up and scaling up and driving regional enterprise.EI also provides assistance for international companies searching for world-class Irish suppliers. |
258,559,000 |
|
SFADCo (Shannon Development) |
SFADCo is responsible for industrial and tourism development in the mid-west region. Its primary focus is to lead and encourage the identification and development of solutions to the critical needs or obstacles to development in the region. SFADCo supports firms, which either currently or are likely to achieve significant sales growth of €1.3m and employ in excess of ten people within three years of start-up. |
3,400,000 |
|
National Standards Authority of Ireland (NSAI) |
The NSAI is Ireland’s Standards body. NSAI facilitates the development of voluntary standard documents which manufacturers or service providers may use as an aid to meeting safety or customer requirements. The functions of NSAI are specifically detailed within NSAI and legal metrology legislation. In summary NSAI operates the following functions: 1. Standards 2. Irish Agrément Board 3. Client Services 4. Legal Metrology Service 5. NSAI Inc. 6. The functions of the National Metrology Laboratory (NML), which were formerly the responsibility of Enterprise Ireland, are shortly to be transferred to NSAI. |
6,891,000 |
|
The 35 county and city enterprise boards (CEBs) |
The 35 CEBs were set up in 1993 to meet a need which was identified for support targeted specifically at the micro-enterprise sector. The CEBs develop indigenous enterprise potential and stimulate economic activity at local level. CEB interventions are targeted at projects in the manufacturing and traded services sectors employing ten or fewer workers. |
31,180,000 |
|
Science Foundation Ireland (SFI) |
The function of the SFI is to build and strengthen scientific and engineering research and its infrastructure in the areas of greatest strategic value to Ireland’s long-term competitiveness and development. |
149,435,622 |
|
Personal Injuries Assessment Board (PIAB) |
The PIAB is an independent statutory body. Its function is to assess the amount of compensation due to a person who has suffered a personal injury. |
The PIAB’s operational costs are funded by fees levied on claimants and respondents |
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Name of Organisation |
Functions |
Budgetary Allocation 2006 |
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€ |
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Patents Office |
The main statutory functions of the Controller General of Patents, Designs and Trade Marks are concerned with the granting of patents and the registration of trade marks and designs and the administration and maintenance of these industrial property rights. The controller also has certain statutory functions under the Copyright and Related Rights Act 2000. |
Nil.(The running of the Patents Office is funded under the administrative budget of the Department of Enterprise, Trade and Employment) |
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Labour Relations Commission |
The Labour Relations Commission has general responsibility for the promotion of good industrial relations through the provision of a comprehensive range of services designed to help prevent and resolve disputes. The commission provides an industrial relations conciliation service; an industrial relations advisory development and research service (ADRS); and a rights commissioner service. |
5,012,000 |
|
The Labour Court |
The Labour Court provides a comprehensive service for the resolution of disputes regarding industrial relations, equality, organisation of working time, national minimum wage, part-time work and fixed-term work matters.The Labour Court also supports the work of the joint labour committees (JLCs) and makes employment regulation orders on foot of proposals from the JLCs. |
3,464,000 |
|
Office of the Director of Consumer Affairs (ODCA) |
The Office of the Director of Consumer Affairs was established under the Consumer Information Act 1978. The director is an independent statutory officer, responsible for enforcing a wide spectrum of consumer protection legislation, including the power to seek court orders and to prosecute for breaches of the Consumer Information Act, consumer credit, package travel, food and textile labelling, price display orders, product pricing, unfair terms in consumer contracts and product safety legislation. |
4,289,000 |
|
National Consumer Agency (board acting in an interim capacity until such time as the agency is established on a statutory basis) |
The function of the National Consumer Agency is the promotion and protection of consumer interests including advocacy, enforcement, education and awareness, information and research. |
3,000,000 |
|
The Office of the Director of Corporate Enforcement |
The Office of the Director of Corporate Enforcement is responsible for encouraging compliance with the Companies Acts and investigation and enforcing suspected breaches of the legislation. |
4,713,000 |
|
Competition Authority |
The Competition Authority is an independent statutory body responsible for enforcing competition law in the State. |
5,831,000 |
|
Companies Registration Office |
The functions of the Companies Registration Office (CRO) are •Enforcement of Companies Acts to ensure filing of returns. •Provision of public access to accurate company information. •Issue of certificates of incorporation for new companies. •Maintenance of register of mortgages and charges. •Registration of business names and limited partnerships. |
9,308,000 |
|
Registry of Friendly Societies (RFS) |
The functions of the RFS are: •The registration of industrial and provident societies, friendly societies and trade unions. •To ensure that various societies and trade unions comply with their statutory obligations. •The provision of accurate information to the public about the affairs of societies and trade unions supervised by the registry. |
The (RFS) is included in the main Vote of the Department. It does not have a separate Vote |
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Employment Appeals Tribunal (EAT) |
The function of the EAT is to adjudicate, process and hear claims in employment rights disputes. |
(The running of the Employment Appeals Tribunal is funded under the administrative budget of the Department of Enterprise, Trade and Employment) |
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Inter TradeIreland, The Trade and Business Development Body |
Inter TradeIreland was established in December 1999 to promote all-island trade and business development. The statutory functions of InterTradeIreland are set down in the British-Irish Agreement Act 1999, which defines the body as one “to exchange information and co-ordinate work on trade, business development and related matters in areas where the two administrations specifically agree it would be in their mutual interest”. |
10,025,000 |
|
Irish Auditing and Accounting Supervisory Authority |
The function of the IAASA is to supervise the regulation by the accountancy bodies of their members. IAASA has a wide range of oversight functions in relation to accountancy bodies including the power to •Intervene in the disciplinary processes of the accountancy bodies where it deems it necessary; •Carry out independent investigations of possible breaches of standards of prescribed accountancy bodies by their members; •Require accountancy bodies to amend their rules and their disciplinary and investigation procedures; •Grant recognition to bodies of accountants under the Companies Acts; and •Review the accounts of certain categories of companies and apply to the courts to compel directors of a company to amend accounts that are not in compliance with the Companies Acts. This function has yet to be commenced. |
919,000 |
It kind of makes my point about the black economy.
In what way?
The Department has primary responsibility for it rather than the Revenue Commissioners.
It is interesting and has perhaps confirmed my point that in response to each priority question we have been referring constantly to independent bodies in which the Minister has no role. In certain cases, there is confusion over which body has authority. I asked my question on the back of a report by TASC entitled Outsourcing Government: Public Bodies and Accountability. It raised real concerns about the level of outsourcing, which is sometimes appropriate, and also about the lack of accountability under this process. I noticed in particular that 90% of the budget of the Department of Enterprise, Trade and Employment was allocated to outside agencies. This contrasts with other Departments and TASC's assessment clashes with that of the Minister. We can go through the details ourselves at a later stage.
TASC states that of the 29 public bodies in the Minister's Department, only 15 are listed in the budgetary Estimates and only 14 were established by the Oireachtas. Does the Minister agree with the concerns over there being 450 such bodies involving 500 appointments by the Government? There is a lack of accountability and clarity regarding the agencies that exist, their remit and the source of their money. Does the Minister not agree that there is a need for a full review of our procedures for setting up public bodies so their appointees will not be regarded solely as cronies of members of whatever party is in power? Does he agree that financing should be utterly transparent and that there should be accountability to the Oireachtas so our democracy will not be diminished due to massive outsourcing of Government activities, which has become increasingly prevalent in the past ten years? This is what the TASC report concludes.
It is wrong to use the term "outsourcing" in respect of the establishment of State agencies to carry out specific functions designated thereto by the Executive and Oireachtas. It is improper to use the term in respect of the IDA, Enterprise Ireland and FÁS, for example.
On the question of there being a lack of political accountability, we must be careful at all times to ensure there is strong accountability to Parliament. We could always consider mechanisms to determine how to facilitate such accountability more effectively without intervening too much in the operations and activities of the State agencies. There were far more agencies in my Department when I was Minister for Health and Children and I took the decision to amalgamate quite a number of them into one national delivery service. This was after a very considered review and analysis by consultants and various other people.
The enterprise strategy group considered the future of industrial strategy. It did not recommend the amalgamation of Enterprise Ireland and the IDA, for example, nor did it recommend the abolition of county enterprise boards or other such bodies. These are the fundamental questions that arise if one is proposing a fundamental review of agencies in my Department.
There is a strong correlation between the success of the economy over the past ten or 15 years and the effectiveness of the bodies in question, particularly those on the economic side. Likewise, it is hard to doubt the need for a health and safety authority or the Office of the Director of Corporate Enforcement. Recent events necessitated the creation of such an office. It is also hard to doubt the need for FÁS as a national training office. When considering the existing bodies one at a time, one will not see much room for rationalisation or the elimination of some of them. The National Standards Authority has a particular role in facilitating the development of standard documents for manufacturers, service providers etc.
On the issue of accountability, the Minister for Finance recently developed new methods to deal with the accounting and financial expenditure in terms of how Estimates are laid before the Dáil and the respective committees. I support these and they may afford a greater opportunity to Members of the Dáil and Seanad to ensure the financial accountability of State bodies. The Comptroller and Auditor General has an oversight role, as does the Committee of Public Accounts. The fundamental question concerns the degree to which the Oireachtas wants to delegate responsibilities to State agencies. Much of the work of the agencies in my Department, such as Enterprise Ireland and the IDA, has been very successful. I am not so sure the agencies would have been so successful had they been encapsulated by the Civil Service.
I have no doubt but that we need agencies such as the IDA and I commend them on their good work. Does the Minister believe he needs 29 different agencies, as listed in the TASC report. I could provide this list to the Minister and we could determine what agencies included thereon are not on his list. We could then ask whether the identified agencies are needed. Does the report not beg the question as to whether the functions of certain agencies overlap and whether there is a requirement for tightening up?
There is a lack of political accountability. We have a National Consumer Agency and a Consumer Strategy Group. On the issue of setting up the enterprise strategy group, we allocate functions to a to a particular appointed board or group and, when results are not achieved, the Department says it has no role in the operations of the independent body in question. There is much concern that when work done outside the aegis of the Department and without political direction does not lead to positive developments, the Department is distanced from the work that must then be done. There is a lack of democratic accountability and a need for a review and amalgamation. That there are 29 departmental agencies receiving 90% of the Department's budget begs the question as to whether there is a quango system in place that suits the Department but not the people.
The big push currently is to get stronger synergy among the major agencies — IDA Ireland, Enterprise Ireland and FÁS — in terms of the skills issues as they affect multinational and indigenous companies. The consumer strategy group is gone; it was in operation for a short period. We must distinguish between agencies and groups that are established for a specific research policy purpose. While the Small Business Forum will continue in an implementation role, it could hardly be described as an agency. It is an effective facility for small businesses to inform Government of their ongoing needs. The Personal Injuries Assessment Board, for example, was set up for a specific reason and has achieved outstanding success. Taking that alone, the benefits to be accrued from good governance via the establishment of such agencies are obvious. I am open to better political accountability. I share the Deputy's concern that all the agencies should realise that the funding comes from this House and that we should have good mechanisms, but we can improve our lot here also, even at committee level, in terms of the way we interact.
Sometimes they do not get good example from the Minister.
