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Dáil Éireann debate -
Thursday, 26 Apr 2007

Vol. 636 No. 3

Other Questions.

Business Regulation Forum.

Shane McEntee

Question:

5 Mr. McEntee asked the Minister for Enterprise, Trade and Employment the reason he has not implemented procedures to ensure direct feedback from business on regulatory burdens; and if he will make a statement on the matter. [15554/07]

Direct feedback from business was facilitated over the past 15 months through the Business Regulation Forum, which comprised representatives of the business community and business representative organisations. In 2006, the forum collected evidence from businesses about regulatory burdens in a number of ways. Over 40 submissions were received from businesses, organisations and individuals. Six case studies were undertaken on behalf of the forum to understand companies' day-to-day issues with regulation. Two pilot studies were carried out by PricewaterhouseCoopers on behalf of the forum to investigate the applicability for Ireland of the standard cost model, which is a means of identifying and measuring administrative burdens. More than 30 businesses were consulted in detail about their experiences as part of this process, with two regulations investigated.

I welcome the survey of business attitudes to regulation conducted by the ESRI in 2006 on behalf of the Department of the Taoiseach. The survey collated the views, attitudes and concerns of over 800 firms on the impact of regulations on them. The Business Regulation Forum took these sources of information into account in producing its report, which I launched yesterday. The Government has asked me to lead a Government-wide effort to drive this agenda forward. I have asked the Secretary General of my Department to lead a cross-departmental agency effort, working directly with business, to examine ways of reducing the regulatory burden. It is intended to bring the regulating Departments and agencies into direct contact with business representatives. The initial focus will be on those areas which are causing the greatest burden.

I thank the Minister for his reply. This is a serious problem for businesses, as the Minister is aware. I am sure he has received many representations on it over the years. When the Taoiseach launched a Government document, Better Regulation, in 2001, it was claimed that proportionality and necessity would be provided for and regulatory impact assessments would be carried out on all the various matters. Very little was done in that regard over the following years, however.

What evidence do we have that anything will happen as a result of the report that was published yesterday, which represents a damning indictment of the regulatory burden that has been placed on businesses by the Government? If the Minister reads the report's executive summary, he will see evidence of problems in this respect in areas like tax, health and safety, statistical information and the environment. He will find evidence of a duplication of the administrative burden on business. Will the Minister give the House details of the timescale and targets he is prepared to set for the implementation of this report?

We need to keep this debate in perspective. I have been active on the regulation issue — I increased the audit exemption threshold soon after I took office.

The Minister refused to do it at first, but he has done it now.

The Minister for Finance introduced significant measures in the budget, on foot of the work that was done in co-operation with the Small Business Forum, to reduce the burden on businesses. He amended the VAT thresholds, for example, to help small and medium sized enterprises. The work that has been done to date illustrates the fact that regulation affects small businesses more than large businesses and has a disproportionate impact on small and medium sized enterprises.

The work of the Business Regulation Forum indicates that regulation constitutes a significant burden for businesses in Ireland. The five areas on which we will concentrate are taxation, health and safety, the environment, statistical returns and employment and company law. There is evidence from international organisations to suggest that Ireland is in a better competitive position than other countries. The World Bank's 2006 Doing Business report ranked Ireland tenth of 175 countries in terms of the ease with which businesses can be started and run here. The World Economic Forum's 2006-07 Global Competitiveness Report showed that Ireland compares favourably with other countries in terms of a number of regulatory indicators. The International Institute for Management Development's 2006 world competitiveness scoreboard showed that Ireland compares favourably in areas like ease of doing business.

(Interruptions).

Deputy Hogan should pay attention to what I am saying.

He has other things to think about.

I noticed that his mind was wandering. He should take note of these positive indicators ahead of the campaign that may take place over the next few weeks.

There is a regulatory burden on us all.

The Minister was quite alert in the way he picked up on that.

When I was a teacher I was able to tell when the attention of students was elsewhere, just as I noticed when Deputy Hogan was concentrating on the change in the Chair. The Deputy asked me to outline the Government's targets. We are prepared to nail our colours to the mast. Like our European counterparts, we want to reduce the regulatory burden by approximately 25%, across the board, over the next five years.

I do not know where we heard previously of a policy of reducing the regulatory burden by 25%.

Perhaps the Deputy heard it in the House of Commons.

No, the Minister heard it first as part of Fine Gael's policy. We have been proposing that for the last three years, but the Government has been ignoring our efforts.

Of course that is the case. After ten years in office, I would have expected the Government to have a done a great deal to reduce the regulatory burden, which is currently such an important issue. Like all other Government conversions to Fine Gael policy, this conversion is welcome. I am glad that the Minister said this is an important issue. He has accepted this report, just like he accepted many other reports. Will the Minister indicate which of the areas identified in the submissions from the other EU member states that have had some success in this area are priority areas? I accept that some priorities have been identified, but I would like to know more about some specific priorities, particularly in relation to the Dutch model, which is the best example of a regime coming to grips with the regulatory burden on small and medium sized enterprises.

This is an ongoing issue. It would be incorrect to suggest that we have just become associated with this issue. The consumer legislation we passed in this House is a good example of simpler consolidated legislation that reduces the regulatory burden. It repealed a number of outdated historic Acts. We need to create a pillar of legislation that can be accessed by consumers, business and industry. The Minister of State, Deputy Michael Ahern, has initiated the mammoth task of updating and reviewing company law. That work, which is well advanced, will work wonders in simplifying the regulatory obligations to be fulfilled by those establishing new companies, etc. The great deal of significant legislative work that is under way will reduce and simplify the regulatory burden. We need to ensure that regulation, which is important to all our lives, is administered in a simple, efficient and effective manner.

The Deputy asked about the areas on which we will concentrate. He also mentioned the international dimension. We have spoken to the Dutch authorities. Some civil servants from the Netherlands have come to this country to explain how the standard cost model works there. We have some concerns about the applicability of that model to Ireland, as we do not want to create a new layer of bureaucracy. That is something we are teasing out.

We have set up an interdepartmental group with business people on it which is headed by the Secretary General of my Department. It will become a clearing house for regulation, as was the case for the financial services sector. That arrangement was very effective in having a structured dialogue between the sector and Government. Likewise, in this case we want a structured, ongoing and sustainable dialogue between business and Government on the regulation issue.

European Defence Agency.

Ciarán Cuffe

Question:

6 Mr. Cuffe asked the Minister for Enterprise, Trade and Employment the reason a representative from Enterprise Ireland is acting as Ireland’s representative at meetings of the European Defence Agency; the mandate given to same; and the powers vested in same to conclude agreements on behalf of the State. [15612/07]

Representation at meetings of the European Defence Agency, EDA, is a matter for the Department of Defence and I have no function in the matter.

Enterprise Ireland does not represent Ireland at meetings of the EDA and has no powers to conclude agreements relating to the EDA on behalf of the State. Meetings of the EDA are attended by staff from the Department of Defence. However, I understand that Enterprise Ireland has provided preliminary technical assistance to the Department of Defence at EDA meetings in relation to a research and development programme which the EDA has decided to undertake and in which the Minister for Defence has determined that Ireland should participate. On the basis of that decision, the Department of Defence has requested the involvement of Enterprise Ireland in identifying Irish companies which may potentially participate in this research programme and thereby benefit from the funding which is available from EDA projects. That Department has also requested the involvement of Enterprise Ireland in relation to Ireland's representation in the management of the said research programme by the EDA. These requests are currently under consideration.

The decision to establish an intergovernmental agency in the field of defence capabilities development, research, acquisition and armaments, known as the European Defence Agency, was formally adopted at the General Affairs and External Relations Council meeting on 12 July 2004. Ireland participates in the framework of the European Defence Agency, pursuant to a Government decision of 6 July 2004. The agency is an intergovernmental agency within the framework of ESDP and Ireland is represented on the steering board by my colleague, the Minister for Defence.

As the Minister began his response, I presumed that my information was inaccurate and that Enterprise Ireland was not sending representatives to the European Defence Agency. As his reply evolved, it became clear that it is doing so.

How is this reconciled with stated Government policy regarding control of the export, sale and use of arms to ensure that this State does not assist the development of weapons which would have a disastrous effect if sold to inappropriate regimes? What is our involvement in this defence armaments research programme? What is the role of Enterprise Ireland in the matter? Are we seeking contracts for Irish universities or companies? What is our involvement, as a neutral state, in such European defence armament programmes?

We have a strong legislative framework for regulating the dual use issue, which the Minister for Foreign Affairs piloted through the Houses. Deputy Ryan's question suggested that Enterprise Ireland was acting as Ireland's representative at the EDA. In the interest of Enterprise Ireland, it is important to clarify that it does not act as Ireland's representative on the European Defence Agency. Enterprise Ireland provides technical advices to a number of Departments. For example, Enterprise Ireland provided the technical and scientific assessments which informed the decisions taken by the Department of Agriculture and Food on the rationalisation of the dairy industry. When the IDA, for example, grant aids research and development projects for multinational companies, Enterprise Ireland does the technical evaluations and assessments of the projects concerned.

In this case, the Minister for Defence needed technical advice regarding a research and development programme in which his Department is involved. I do not have specific information about the programme. The Minister for Defence determined that Ireland should participate in the programme and wished to identify companies which could participate in it.

There is always a crossover, particularly in the area of information technology, between civilian and defence uses. Companies with expertise in peacekeeping equipment and crisis management systems could play a role in the development of emerging technologies which would not undermine our neutrality or non-alignment policy. We must be careful not to rain on everyone's parade as soon as we see the word "defence" on an agenda.

Is the Minister suggesting that the Minister for Defence seeks to develop an armaments or a research capability in this area? The parallel of Enterprise Ireland assisting the Department of Agriculture and Food does not stand up. Enterprise Ireland's only purpose in this matter can be to generate business for Irish universities or companies. Is that not what it is doing rather than helping the Minister for Defence to develop a defence capability?

The Department of Defence has requested the involvement of Enterprise Ireland in identifying Irish companies which might potentially participate in this research programme. To date, Enterprise Ireland has provided preliminary technical assistance to the Department of Defence at EDA meetings for a research and development programme which the EDA has decided to undertake and in which the Minister for Defence has decided to participate. There is not a wide-ranging set of programmes. There is one particular programme which may have applicability to some Irish companies.

Is there a fear regarding Ireland's neutral position?

Countries such as Austria, Finland and Sweden, which are neutral countries, are participating in this programme.

Departmental Travel.

Mary Upton

Question:

7 Dr. Upton asked the Minister for Enterprise, Trade and Employment the steps he is taking to offset the carbon emissions caused by official travel of staff of agencies under the remit of his Department; and if he will make a statement on the matter. [15484/07]

Official travel in the agencies under the remit of my Department is appraised and monitored by each agency to ensure that travel is restricted to necessary journeys only. Wherever feasible, staff of the agencies use public transport when travelling on official business. Video conference and conference call facilities are regularly utilised to avoid the need for official travel, where appropriate. The Department and its agencies operate a travel pass scheme encouraging staff members to use public transport in both working and leisure hours, thus assisting in reducing the level of carbon emissions.

Carbon emissions caused by official travel must be balanced against the considerable benefits accruing to Ireland from business transacted on those journeys in terms of promoting trade, attracting inward investment and influencing international policy.

The recently published National Climate Change Strategy 2007-2012 sets out measures to be adopted by the civil and public sector to reduce greenhouse gas emissions. These include a requirement that each public sector body adopt greenhouse gas reduction targets and measure and report progress on achieving these targets in their annual reports.

I accept the Minister's response as far as it goes. To what extent does his Department monitor the maintenance by the various State agencies of the standards he has described? To what extent do those agencies report directly to his Department, as distinct from merely including an account of their compliance in their annual reports?

The new National Climate Change Strategy 2007-2012 is putting in place a framework for all Government Departments and agencies to reduce greenhouse gas emissions. Chapter 9 of the strategy deals with that issue. The strategy places a requirement on each public sector body to adopt greenhouse gas reduction targets and to measure and report progress in achieving these targets in their annual reports. I do not chase these agencies every week or every month. Each agency's annual report must contain a separate section dealing with greenhouse gas reduction and the measures it is taking or will take to reduce or offset greenhouse gas emissions.

In addition, the strategy requires the offsetting of carbon emissions resulting from all air travel on Government business, including flights by Ministers and civil servants, from the beginning of the Kyoto commitment period in January 2008. Practical arrangements will be put in place to enable each Department to compute annually the emissions associated with its air travel and to make a contribution to an appropriate fund to secure verified emission reductions of an equivalent amount. The Department of the Environment, Heritage and Local Government calculated that its 2006 air travel would have given rise to a contribution in the general order of €5,000 if such a scheme were already in place. We are addressing this issue in practical ways.

In the past number of years I have asked every Minister the amounts of money spent on mileage allowances compared to public transport. The answer from almost every Department, including the Minister's, is that more than 95% is spent on mileage allowances. While the stated position is that we wish to promote the use of public transport, everything in the current system encourages people to drive.

What does the Minister intend doing to change that, if anything?

Very significant investment in public transport has enhanced the situation, and Transport 21 will further improve performance regarding public transport.

What will the Minister do in his Department?

I thought the Deputy had referred to the Government as a whole.

What will the Minister do in his Department?

Pragmatism is necessary if I am travelling around the country to areas where there is no public transport and 15 organisations wish to see me. We do not always use the car to get to Donegal or other communities, but they want to see Ministers at different times of the day. Carbon offsetting is a good practical way of dealing with the issue.

What about the officials?

Deputy Eamon Ryan should allow the Minister to speak.

I stated in my reply that there is already a scheme to incentivise the use of public transport by officials.

It is not working.

It exists. The most effective and practical solution, given the way in which people travel in all sorts of directions to various locations, is carbon offsetting.

As a Cork Member, and given the colleague beside him, does the Minister accept that for a long time the financial incentive to accept a mileage allowance instead of having one's train fare reimbursed was skewed for every Member?

That is changing.

Not necessarily. If anything, the scheme has been rendered more opaque. The Minister has been in office for so long that he does not know what has changed.

It is Deputy Quinn who is out of touch.

We are running out of time.

The system has changed for Deputies.

I am well aware of what has changed.

Ministers do not receive a mileage allowance.

I am not imputing that for a moment.

In his supplementary question, my colleague raised the question of staff. If someone in the family of enterprise agencies, including Forfás, the IDA and Enterprise Ireland, needs to travel to Limerick for a meeting, what is the difference in what that person would get if he or she went by train instead of claiming mileage? I suspect that the cash in hand for mileage as distinct from reimbursement of the train ticket is significantly greater, which is why Deputy Eamon Ryan put that to the Minister in his supplementary question.

There is more than that to the matter, including flexibility and how people want to travel. It is not all about mileage. My reference was to the system, which was changed some time ago. I have no difficulty with its being applied to civil servants through the normal channels.

Irish Language.

Brian O'Shea

Question:

8 Mr. O’Shea asked the Minister for Enterprise, Trade and Employment the cost to his Department of implementing the Official Languages Act 2003; the number of documents that were published in both languages in 2006; the number of documents that were published in only one language; the number of documents that were published in both languages, but where the version in the second language was published more than two weeks after the version in the first language was published; and if he will make a statement on the matter. [15488/07]

The cost to the end of 2006 of implementing the Official Languages Act 2003 in my Department and its offices was €156,667 for translation and website development.

In 2006 the number of documents published by my Department and its offices was 26. Of those, 14 were published in one language only, English. The number of documents published in both Irish and English was 12, and in two of those cases the Irish version was published more than two weeks after the English one.

My Department is fully committed to the implementation of the Official Languages Act 2003. It is already fulfilling many of the requirements of the 2003 Act, although the Department has not yet been formally notified by the Department of Community, Rural and Gaeltacht Affairs to draw up a statutory scheme outlining the Department's plans for compliance.

Next is Question No. 9, in the name of Deputy Ó Caoláin.

Is it in order for a question to be answered in the absence of the Deputy who tabled it?

Not for priority questions, but these are ordinary questions.

Literacy Levels.

Caoimhghín Ó Caoláin

Question:

9 Caoimhghín Ó Caoláin asked the Minister for Enterprise, Trade and Employment if his attention has been drawn to the fact that 25% of the Irish working population lack functional literacy skills; his plans to introduce a robust programme to eradicate literacy problems in the workplace; the specific target dates for the incremental eradication of these literacy problems; and if he will make a statement on the matter. [15625/07]

In 1997 the OECD published the findings of its international adult survey. That survey, which was conducted in 1995, provided a profile of the literacy skills of adults in Ireland aged between 16 and 64. According to the survey, almost 25% of the Irish workforce lacked functional literacy skills.

Since the publication of the OECD survey, the Government has committed substantial resources to tackling the problem of adult literacy. For instance, the provision in the education sector for adult literacy increased from a base of €1 million in 1997 to €33 million this year. That substantial increase in resources will allow more than 38,000 adults this year to be catered for in literacy training programmes, compared with just 5,000 in 1997.

FÁS, for its part, is implementing several programmes to address literacy issues. Those include the workplace basic education fund, community employment literacy programmes and the literacy programmes for community training centres, justice workshops and local training initiatives.

The workplace basic education fund aims to have more than 3,000 registered learners from 2005 to 2007. To help it achieve that, its budget increased from €2 million in 2006 to €3 million in 2007.

There are currently 46 FÁS-VEC community employment literacy programmes, and those are being extended to all regions. Those programmes enable participants on FÁS-funded community employment schemes to be released half-time from their work experience programme to avail themselves of intensive literacy tuition provided by the VECs.

FÁS and the National Adult Literacy Agency, NALA, have been collaborating since 1999 on a literacy strategy for community training centres, CTCs, justice workshops and local training initiatives, LTIs, to address the literacy development needs of early school-leavers and adults. The strategy aims to integrate literacy support and development into all aspects of vocational training programmes.

Company Closures.

Jan O'Sullivan

Question:

10 Ms O’Sullivan asked the Minister for Enterprise, Trade and Employment the status of investigations by the Director of Corporate Enforcement, the Employment Appeals Tribunal and other agencies under the aegis of his Department into the liquidation of a company (details supplied) and subsequent creation of another company; if the situation has been resolved to his satisfaction; his views on whether new legislation will be required to prevent this situation recurring; and if he will make a statement on the matter. [15463/07]

As I indicated in replies to previous questions, matters arising from the liquidation of the company concerned are currently receiving attention from two of the agencies that operate under the aegis of my Department, the Employment Appeals Tribunal and the Office of the Director of Corporate Enforcement.

The latest position with regard to the involvement of the Employment Appeals Tribunal is that the tribunal commenced its hearing under section 9(3) of the Protection of Employees (Employers' Insolvency) Act 1984 on 21 March and adjourned it until 14 June. The situation regarding the insolvency and redundancy payments schemes will be considered by my Department following a decision by the tribunal.

The position in regard to the involvement of the Office of the Director of Corporate Enforcement remains as described in my previous replies, namely that the liquidator of the company has been temporarily relieved by the director from the obligation to take restriction proceedings in the High Court, pending the receipt of a further report from the liquidator to the director under section 56 of the Company Law Enforcement Act 2001.

Regarding new legislation relating to "phoenix" situations, I draw attention to the changes introduced by Part 5 of the Company Law Enforcement Act 2001, which address problems and issues connected with business failure. Company law is also under continuing review, particularly through the work of the Company Law Review Group.

I have brought this case to the Minister's attention on several occasions, and I am not satisfied that we have made the progress required to ensure that there is no replication elsewhere in the sector. The construction industry is particularly vulnerable to phoenix-type companies and the re-emergence of directors from one company in another. Their obligations to their employees, customers and, in the context of housing estates, planning legislation and residents, are not being met. Is the Minister satisfied that action taken by the various agencies under his remit has been sufficiently vigorous to ensure that, if there has been malfeasance in the area, it is vigorously prosecuted to create an example for any other companies that might otherwise wish to act in the same manner?

As the Deputy has said, that would depend on whether there has been malfeasance, but the answer is "Yes". We have asked the Company Law Review Group to examine the case and ascertain what lessons might be learned from it. I referred to that earlier regarding the more comprehensive legislation on the way.

Job Creation.

Ruairí Quinn

Question:

11 Mr. Quinn asked the Minister for Enterprise, Trade and Employment his plans for job creation in the south and south west following the recent high-profile job losses at three companies; his view on the fact that high-technology jobs are being lost in the region; the steps he is taking to ensure retention of high-tech jobs in the region and the introduction of new high-tech jobs; and if he will make a statement on the matter. [15487/07]

I understand that the Deputy is referring to recent announcements of job losses in IDA client companies, Motorola and Bourns Electronic in Cork, which is part of the south-west region, and Thompson Scientific in Limerick, which is part of the mid-west region. Job losses are regrettable, no matter where they occur, but they are a feature of economic development in all countries as various sectors expand and contract in response to market forces.

The development agencies under the remit of my Department are working with a range of local bodies in the south west and mid-west regions to develop a competitive knowledge economy and to assist their client companies in moving up the value chain. IDA Ireland is actively promoting both of these regions through its network of overseas offices to prospective investors across the full range of IDA Ireland targeted sectors, such as pharmaceuticals, medical technologies, information and communications technologies and internationally traded services.

While we have been successful over the past decade in attracting investment and jobs we now face new challenges. We are no longer a low cost country with high levels of unemployment. In Cork and Limerick, as elsewhere, there is a need to mobilise initiatives and resources on a regional rather than a purely local basis so as to compete effectively with other city regions for mobile investment.

The development of the gateway and hub locations in the south and mid-west under the national spatial strategy will assist in providing the critical mass in terms of population, skills and infrastructure that are needed to attract, sustain and grow investments in these regions.

In recent years, Cork has been particularly successful in attracting investment in the pharmaceuticals, medical technologies and ICT sectors. Such investments are attracted to Cork due to the availability of a high quality workforce and a well developed infrastructure as well as a positive business environment. Limerick's employment base is dominated by the ICT sector, with companies such as Dell, Analog Devices and Banta. The medical technology and life science sector is also strong, making up approximately 26% of FDI employment in the county, as is the engineering and consumer products sectors with 16% of employment.

This transition from a low-cost economy has resulted in some companies moving operations to lower cost locations in eastern Europe and Asia, but, more importantly, it has resulted in some companies expanding their remit to include higher value activities in their Irish operations.

In terms of job creation, Enterprise Ireland activity is focused on the creation of new jobs through supporting entrepreneurs setting up new high potential start-up companies, 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. I am confident the policies and strategies the agencies are pursuing will deliver the best results in terms of maximising investment and jobs.

I have a supplementary question but it is possibly linked to Question No. 14 which we may not reach.

We will get to it.

I accept the overall situation with regard to employment creation in the economy is positive, but that generalisation does not include people, of whom there are many, as the Minister's figures suggest there were 440,000 at the last count, who only have second level educational achievement within a labour force of just over 2 million. I do not dispute the points made by the Minister. They are the facts of life and we have done well out of riding them, as it were, in terms of job creation.

What tracking mechanisms are available to the Department and FÁS when redundancies occur due to relocation? For the individuals directly concerned and with the support services of FÁS, what is the expectancy for someone with limited skills who is made redundant in a plant that has closed due to relocation? How long does FÁS stay involved with an individual and at what point is he or she cut loose in terms of finding another job? The level of satisfaction of ex-employees depends on their sense of security in getting back into the labour market at a salary level at least similar to what they had enjoyed previously, even though their formal educational skills and experience may not give them that expectation. I am not sure whether that question makes sense to the Minister but I think he may know what I am trying to say.

When a redundancy takes place or a closure occurs, FÁS has a structured response which involves going into the company concerned and conducting a dialogue with the employer, seeking to profile the collective employee group and inviting employees to engage with FÁS. Not every employee does this. The feedback from the intervention by FÁS in a number of cases in the past year and a half has been positive. The number of people who do not engage present a problem as this may not be picked up. Those who engage with FÁS remain engaged until they get something. That is a part of the FÁS service which has become increasingly more important and more effective.

FÁS also liaises with Enterprise Ireland and IDA Ireland as the two services offered are the provision of training and reorientation programmes and the creation or sourcing of new job opportunities in a given locality for the individuals involved. It is very much a three-pronged approach by the three agencies; to get in on the ground in a particular company, assess the profile of the staff, see what is required, offer courses and programmes and to enable the staff to take up training for other jobs. That approach is being taken and will continue to be taken.

Industrial Development.

Seán Crowe

Question:

12 Mr. Crowe asked the Minister for Enterprise, Trade and Employment his plans to reconfigure the enterprise development agencies to allow local authorities to participate in strategic investment decisions regarding local and regional business development through funding research and development. [15621/07]

Investment decisions concerning grant aid, including research and development, to individual undertakings are operational matters for the development agencies. Under the Industrial Development Acts the Minister of the day is precluded from giving directions to the agencies concerning specific projects.

Under existing arrangements local authorities can engage with the development agencies concerning local development plans. For example, both IDA Ireland and Enterprise Ireland are members of the various county development boards operated by the local authorities. They are also members of sub-groups of the boards such as the Economic Development Group. The county and city enterprise boards also work closely with their relevant local authorities and are active participants on the county development boards. The board of each county enterprise board includes four elected councillors nominated by the local authority as well as the county manager. This structure of cross-representation creates a platform for the delivery of enterprise supports at the local and regional level in an integrated and effective manner.

The enterprise development agencies are also represented by regional managers on inter-agency task forces responding to a local need at a given time, for example, the Dungarvan inter-agency task group. Regional managers also attend many other meetings with chambers of commerce and other committees involved in developing initiatives to market the county.

In terms of infrastructure, the goal is to ensure that each county has appropriate property solutions, tailored to specific key sectoral targets, to attract inward investments. This means the provision of high quality business and technology parks, and in co-operation with the private sector, the provision of new advance technology buildings. It also means undertaking long-term planning with the local authority so that the county is seen by investors as having the appropriate locational solutions in terms of property, infrastructure, air access, business and lifestyle services for key strategic investments of national importance.

Accordingly, there is already extensive collaboration between local authorities and the development agencies and I do not consider there is any necessity to reconfigure the agencies in these circumstances.

Control of Exports.

Trevor Sargent

Question:

13 Mr. Sargent asked the Minister for Enterprise, Trade and Employment whether the Control of Exports Bill 2007 will be amended to require Irish companies to receive prior licensing approval before establishing licensed production arrangements overseas for any equipment on Ireland’s military list as defined in the Control of Exports Order 2005, Government authorisation for private providers of military, police and security services, both within and outside Ireland, exporters of military goods and services to report to his Department on the delivery and use of equipment to the stated end-users, as recommended in the 2004 Forfás review and Government authorisation for overflight, transit and transhipment through Ireland of military list items and goods listed in the EU regulation on equipment which could be used for torture, whether held under bond, in its definition of exportation. [15617/07]

I refer the Deputy to the Seanad debates on the Bill where some of these issues were raised. With regard to licensed production overseas, a number of non-governmental organisations have called for the imposition of controls on what they refer to as "licensed production overseas". This is the practice whereby a company based in one jurisdiction permits a second company located elsewhere to manufacture its products under licence. The issue was considered in the context of the Forfás review and, ultimately, the consultants concluded: "While provision to govern licensed production abroad is legally feasible, this is not a priority concern in the circumstances of the Irish industrial base."

In deciding not to specifically provide for the inclusion of controls on licensed production overseas, the Department also took into account that controls already apply to the export of goods and technology required for the development, production or use of military equipment and other equipment subject to export controls. Such controls would apply to exports of goods and-or technology for use in connection with overseas production. Furthermore, these controls will be enhanced with the imposition of controls under section 5 of the Bill in accordance with EU Joint Action 401/2000 CFSP of 22 June 2000, which provides for controls on technical assistance, such as repairs, maintenance, development, manufacture, assembly, testing, training and instruction and consultancy services.

With regard to end-use monitoring, contemporary international export control practice favours enhanced pre-shipment controls and the use of risk analysis programmes. The sharing of information on potential end-users of concern is a strong component of preventative action by the EU and by the international export control regimes. Where there is any reason to doubt the bona fides of the end-users, an export licence is not issued. The Department will also deny a licence where there is any reason to believe there is a risk of diversion of the goods in question to an end-use or end-user other than that stated on the licence application. This accords with criterion seven of the European Code of Conduct on Arms Exports. The code binds Ireland to take into account such criteria as the existence of internal conflicts, regional peace and security and respect for human rights when considering whether to permit the export of controlled goods. Exporting companies have a responsibility to ensure their products are not being used for nefarious purposes. In line with best international practice, the Department continues to promote the implementation of effective internal compliance programmes by Irish exporters of controlled goods.

The definition of "export" in the Bill has been widened to cover goods imported for re-export and this will enable controls to be imposed on goods in transit. On overflights, the carriage of munitions is regulated by the Department of Transport under the Air Navigation (Carriage of Munitions of War, Weapons and Dangerous Goods) Order 1973.

The European Communities (Control of Trade in Goods that may be used for Torture) Regulations 2006 provide for penalties for breach of Council Regulation 1236/2005 of 27 June 2005, which prohibits the import or export of goods that have no practical use other than for the purposes of capital punishment, torture and other cruel, inhuman or degrading treatment or punishment. The Council regulation also imposes an export authorisation requirement on certain goods that could be used for torture or other cruel, inhuman or degrading treatment or punishment. Consideration will be given to imposing a ban on the export of such equipment when updating the list of goods to be controlled in orders made under the new legislation. I am sure the matters themselves will be decided by the House when the legislation comes before it.

I apologise for the long, complex nature of my question but I asked it because of the serious concerns expressed by organisations such as Amnesty International that the proposed Bill does not go far enough. There is real disappointment, at the end of the term of this Dáil, that the Government did not manage to bring this matter to a conclusion, despite its having been of concern for the five years in which I have been a Member. This is a real shame and a loss.

The Minister of State said he will consider strengthening the Bill with regard to the definition of products that could only be used for torture. Am I correct in saying their export would require licensing? What is the position on overflights in this regard, or the position on checking goods in transit through the country? In such circumstances, must the Minister specify to the Department of Transport the need for tighter regulations? What role can the Department play to ensure Ireland is not a transit point for such goods?

The definition of "export" in the Bill has been widened to cover goods imported for re-export and this will enable controls to be imposed on goods in transit. This provision did not exist heretofore. I am sure there will be plenty of opportunities to deal with this when the Deputy is re-elected. It will be brought before the House in due course.

In the autumn.

How will the checks be implemented?

To implement anything one must examine it. One must put controls in place to monitor the flights and shipments.

Employment Support Services.

Joe Costello

Question:

14 Mr. Costello asked the Minister for Enterprise, Trade and Employment the steps he is taking to assist persons who lose their jobs and have particular difficulties finding new employment due to their age but are many years from retirement age; and if he will make a statement on the matter. [15475/07]

The full range of services provided by FÁS is available to all unemployed people. In particular, FÁS provides an integrated support service for people being made redundant because of company restructuring or closures. This involves information sessions, skills analysis, training and retraining courses and job placement. In the delivery of these services, FÁS liaises with other relevant agencies such as Enterprise Ireland, IDA Ireland, the city and county enterprise boards and the Department of Social and Family Affairs.

Under Towards 2016, a number of initiatives aimed at workers in vulnerable industries are being undertaken. These include enhanced programmes to upskill the low-skilled and older workers. In addition, a high-level working manufacturing group has been established to review the challenges facing the sector and, having regard to initiatives currently under way, identify any further measures that would help to meet those challenges.

I welcome the members of the Fourth Estate, who have displayed an extraordinary interest in upcoming redundancies. Specifically on the difficulties older people face finding new employment, will the Minister indicate whether FÁS will extend its services to backbench members of his parliamentary party who are likely to find themselves in that circumstance fairly soon after the next election?

Is that an endorsement?

No. I am anxious that the Deputy be redeployed after he exits this Chamber.

I am quite happy doing what I do.

Are the people of Tallaght happy with that?

The Deputy has already secured his place in the other House, so we are not worried about him.

To return to the substance of the Minister's reply, we know from other countries that are suffering from higher levels of unemployment than those in Ireland that we cannot sustain and support an open, competitive economy that is embracing globalisation unless we can offer a sense of security to those who, through no fault of their own, find themselves without a job and in need of the aid and support of FÁS to return to the workplace. In effect, this question is not dissimilar to one asked previously. Will the Minister outline some examples of the work FÁS is doing in this area, as distinct from just describing it? What experience has he had, in his capacity as Minister, of FÁS intervening successfully in the event of job losses in 20-year-old companies, for example, the skills sets of whose employees are of a particular timeframe? What is the real-life experience communicated to the Minister in respect of the efficacy of such intervention by FÁS?

The question relates to the difficulties older people encounter, because of their age, when seeking employment. Evidence suggests there has been an increase in the order of approximately 10% in the employment of older people over recent years. We have had good success in this regard. FÁS intervention through the One Step Up initiative is very much directed at workers in employment. Through the Excellence Through People programme and others, involving both individual companies and sectors, FÁS has had success in upskilling.

One of the most effective training programmes to date, the Skillnet programme, does not involve FÁS. It is industry-led and is very much based on the sector itself identifying gaps, coming together, providing content and delivering a programme to deal with the gaps.

FÁS will expand the One Step Up initiative in the years to come under the national skills strategy. In Dungarvan, FÁS intervened very effectively in respect of the job losses at Waterford Glass. I received detailed accounts of its impact from the regional manager. The recent feedback from Motorola was positive in terms of the FÁS interface with the workers. I hear such stories across the country. Increasingly there will be interaction with those at work, rather than with those who become unemployed.

Official Travel.

Breeda Moynihan-Cronin

Question:

15 Ms B. Moynihan-Cronin asked the Minister for Enterprise, Trade and Employment the policies in place in his Department to encourage the use of public transport by staff travelling to and from work; the policies in place to encourage staff to use public transport when travelling on Departmental business; and if he will make a statement on the matter. [15481/07]

The mode of transport staff of my Department use in travelling to and from work is a matter of choice for them. However, my Department generally supports the use of public transport by staff. In this context, it operates a travel pass scheme which was introduced by the Department of Finance in 2001. Under this scheme, an employee can forego part of his or her salary in lieu of the provision of an annual bus or rail pass by my Department. A particular attraction of the scheme for staff is that it complies with the Revenue Commissioners’ guidelines on benefit-in-kind tax exemption. The employee is not liable to pay tax and PRSI on the cost of the travel pass provided by the employer. A total of 216 staff in my Department are availing of the scheme in 2007.

Travel by staff on official business is governed by travel and subsistence regulations issued by the Department of Finance. The overriding principle in these regulations is that all official travel should be by the shortest practicable route and by the cheapest practicable mode of transport. As a general rule, officers are only authorised to use their own transport on official business where suitable public transport is not available, where public transport is available only at equal or greater expense, or where the use of public transport would result in the unnecessary loss of official time.

Given the nature of the work carried out by some areas of my Department, it is not always feasible for staff to use public transport. For example, labour inspectors and prices inspectors are often required to carry out site visits at locations or at times that make the use of public transport impractical. In such instances, the use of an official's private car is authorised. As far as possible, journeys of this nature are arranged to maximise the amount of business carried out in a particular geographical area. Travel by car may also eliminate the need to incur overnight subsistence expenditure.

The Minister might clarify the number of staff in his Department who use the travel pass. I want to separate his reply into two categories. There are two categories, the first of which is travel to and from work, in respect of which the Minister incentivises civil servants to use public transport. Where people have access to the Dart and Luas, these are the options they choose. The major issue is that of the mileage rate for a civil servant in using his or her car, which provides a greater cash incentive than using a train or taxi where a worker is reimbursed the actual cost of travel according to a receipt. There is a discrepancy in mileage rates depending on the size of the car used. Therefore, all other variables being equal, it is preferable for a civil servant to use a car. When one strips away the cost benefit analysis, a civil servant is better off using a car and claiming mileage rather than using a taxi, bus or train because in the latter scenario he or she only receives the cash expended.

I hate to be a killjoy but the Minister presumes civil servants use public transport in the vast majority of cases. In fact, it is so in less than 5% of cases. People are not stupid; the Minister provides a major financial incentive to drive. As a result, the State spends some €20 million on mileage rates and the centre of Dublin is clogged because the State promotes driving by way of providing Civil Service car parks. It does this through the mileage rate system and the provision of free car parking spaces in Dublin city centre and elsewhere. Does the Minister wish to change this?

I will not introduce a fatwa against civil servants, follow them around and insist that they travel in a certain way. We need practical application and to cop on. Mileage has been paid for some time and rates are negotiated by union representatives. One cannot unilaterally wade into this matter. In the case of labour inspectors and other civil servants travelling to particular locations, public transport services may not be amenable. The result may be far more inefficient, with more overnight stays, if one were to use another system. Using a taxi does not lead to a reduction in carbon emissions any more than using one’s own car.

It does.

Not necessarily. Taxis still run on petrol or fossil fuels. We need proportionality and pragmatism in this debate. People throughout the country seek access to public and civil servants. Those outside Dublin believe the official mindset to be too Dublin centred. If we continue along this route, we will ensure no one will leave Dublin or travel to any other part of the country.

The Minister sent public servants all over the country but did not send one to Cork.

The Dáil adjourned at 5.25 p.m. until2.30 p.m. on Tuesday, 1 May 2007.
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