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Dáil Éireann debate -
Thursday, 5 May 2011

Vol. 731 No. 3

Other Questions

Job Creation

Bernard J. Durkan

Question:

6 Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Innovation his plans to incentivise employment growth now and in the future; and if he will make a statement on the matter. [10043/11]

Bernard J. Durkan

Question:

20 Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Innovation his priorities to rejuvenate the economy over the next two years; and if he will make a statement on the matter. [10044/11]

I propose to take Questions Nos. 6 and 20 together.

A key objective of the programme for Government is to stimulate the economy and incentivise employment growth both in the short term and the medium to long term. The programme outlines the actions which will be taken on a number of fronts to support jobs growth, including improving access to finance for enterprises; getting our cost base right; helping businesses to be more innovative and to win new markets, and developing strategies to capitalise on Ireland's potential in key sectors.

The forthcoming jobs initiative will be an important first step in delivering policy to meet the ambitions in the programme for Government and it will outline a range of measures which will be taken across Departments, including my own, to restore confidence in the economy, improve our competitiveness and facilitate job creation and retention. Following the publication of the initiative, I will continue the work in my Department, along with the enterprise agencies and my colleagues in Government, to develop a medium-term jobs programme.

We will develop policy on a number of fronts such as access to finance. In this regard, my Department is working with the Department of Finance, the Credit Review Office, Enterprise Ireland and Forfás to address access to credit issues for viable SMEs, including the commitment in the programme for Government for the introduction of a temporary, partial credit guarantee scheme. It includes a commitment to construct a €100 million microfinance start-up fund.

Getting our cost base right is another major theme. While Ireland has regained some of its cost competitiveness, the Government is committed to doing more to reduce the cost base for business in areas such as rents and energy costs. There are also opportunities for reducing red tape and tackling barriers to entry must be addressed.

There is also considerable scope to help businesses to be more innovative and to win new markets. I will evaluate a range of enterprise programmes and policies with a view to maximising their impact on job opportunities in co-operation with Minister of State, Deputy Sherlock. These programmes are focused on assisting companies to grow and export through a number of measures. I plan, along with my colleagues in Government, to develop initiatives to target particular sectors where there is great opportunity for developments such as life sciences, cloud computing, the digital gaming industry, the green economy and the international education sector.

Can I come in on that question?

No, the Deputy who tabled the question is not present. Normally, if the question has been tabled on behalf of a party spokesperson in another Member's name, the Chair will allow a party colleague in but, as the Deputy who tabled the question is not present, we must move on because there are many questions and some of those tabled by Members who are present may not be reached.

National Wage Agreements

Martin Ferris

Question:

7 Deputy Martin Ferris asked the Minister for Enterprise, Trade and Innovation if he has received the report of the review of employment regulation orders and REA systems; when he expects to receive and publish this report; and if he will make a statement on the matter. [10017/11]

An independent review of the statutory wage setting mechanisms was initiated on 8 February last and was undertaken jointly by Kevin Duffy, chairman of the Labour Court acting in an ad hoc capacity, and Dr. Frank Walsh, School of Economics, UCD, under specific terms of reference. The report of the independent review team has been completed and was received by me last Thursday, 28 April. I am currently examining the report and it will be published and made available to Members following consideration by the Government.

It is proposed to have early discussions with the European Commission services on the main findings of the review, in line with the provisions in the EU-IMF programme. Arising from these discussions, I will present a time-bound comprehensive action plan to follow up on the report's recommendations, setting out proposals for any legislative action that may be necessary to give effect to reform measures. Consultation with, and the co-operation of, relevant stakeholders will also be sought to ensure that the required reforms can be progressed as a matter of urgency.

One of the major problems people have with the review is they feel that a number of the terms used in it are euphemisms. For example, there is a reference to wage rigidity which others would look on as the safeguarding of wages and standards of living. There is also a reference to flexibility, which some people believe is a euphemism for downward pressure on wage rates. Given organisations such as the Society of St. Vincent de Paul have made submissions, which indicate that the standard of living of 250,000 people could be lowered through this review, will the Minister do his best to safeguard the standards of living of the individuals governed by these agreements?

As the terms of reference have made clear, the role of statutory wage setting mechanisms is to strike a balance between the need to protect employment and the need to protect working standards. There are two sides to this and, as I pointed out to Deputy Boyd Barrett, there have been significant job losses in these sectors on a truly dramatic scale. For example, 37% of low income jobs in retail and wholesale have been lost while more than 60% have been lost in construction. A number of sectors have been acutely affected by the recession. Other sectors face acute competition, particularly cross-Border competition. We must be mindful that our wage levels are substantially higher than in the North.

Some measures in these agreements have been inflexible in the way that have been applied and many have found that it is not just the pay levels but some of the conditions and the specific nature of requirements to be recorded, policed and honoured that need to be addressed. We must consider whether this is a suitable, modern mechanism to respond to sectors in deep crisis. That is the backdrop to this examination and that is why radical reform will be proposed in the review.

The Minister has said on a number of occasions that he will protect those at the lower end of the scale by increasing the national minimum wage. He, therefore, regards the two issues as inextricably linked. The programme for Government states independent chairpersons will be appointed to these committees. Does the Minister not regard the current chairpersons to be acting independently?

With regard to his promise, which I welcome, to publish the Duffy report, will he undertake to do so before he refers to it to EU and IMF officials?

Does the Minister agree that the austerity programme his Government is pursuing will continue to have a negative impact on jobs and industry? Will the Minister be straight with the House and the people that the reversal in policy on the national minimum wage is not a concession by the Government but it is linked integrally to the 250,000 people on the EROs? Will he make clear that it is part of the EU-IMF programme and the Government is being directed by the EU to do this? There should be a review to protect workers such as those who worked in Connolly Shoes, Dún Laoghaire, who were indiscriminately sacked after 38 years. This is an area in which regulations and protection of workers should be tightened up.

The change in the policy on the national minimum wage is a decision of the Government and it reverses the position adopted by the previous Government under the EU-IMF agreement. This decision reverses the policy in place before the Government took office. Legislation will have to be introduced to implement this because I cannot do this by order. A Bill will have to be debated and voted on in the House.

Deputy O'Dea asked whether the two Bills would be taken together. That remains to be seen. It depends on timing issues and the complexity of reforms whether they will be addressed in one Bill or separate Bills. However, they are separate issues.

I hope to publish this report soon but I will also convey its contents to the EU Commission, as was undertaken. It played a role in commissioning the report and, therefore, there is no reason to hold it back. I will make it available to the EU as well. I am anxious to publish it, indicate the direction of change to avoid a long period of uncertainty, as Members have highlighted, and make the decisions that are appropriate.

What about the question on the independent chairperson?

The indication in the programme for Government is that the independent chairperson is not to question the independence of those who are already in place but to indicate that the basic structure of the JLCs with independent chairpersons would remain. Clearly, there will be radical reform. There was no reflection on any individual.

Research and Development

Micheál Martin

Question:

8 Deputy Micheál Martin asked the Minister for Enterprise, Trade and Innovation his plans to include opportunities for presenting Ireland’s capacity for scientific research in his itinerary during his official visits to other States; and if he will make a statement on the matter. [8195/11]

I assure the Deputy and this House that since assuming office I have incorporated a strong focus on our research and development strengths and incentives in my engagement with Government and business abroad, and with overseas governments and business presences in this country and I will continue to do so.

I engaged with Commissioner Máire Geoghegan-Quinn recently when I met with her at the recent Council of Ministers meeting in Budapest. I signalled to her this country's strong intention of seeking to ensure that we can draw down the maximum amount and hit the target of €600 million under the current framework programme 7 and that we would endeavour to surpass that target if we could but, furthermore and more importantly, that we would engage deeply with her on the next framework programme which we feel would ensure that we can continue on the programme for research and development in this country in order to ensure that the research engine keeps going and we can build on that.

I do not know how much time I have.

The Minister of State has 35 seconds to reply.

In establishing the itinerary for any official visits abroad, the three State enterprise agencies, IDA Ireland, Enterprise Ireland and Science Foundation Ireland, work very closely together, with my own Department and with the Department of Foreign Affairs. The objective is clear: we want to achieve increased sales and exports and to headline our attractiveness as a locale for FDI. This entails setting out our stall not only on the 12.5% corporation tax rate and the research and development tax credit but also on our intellectual capital and other attractions and in restoring reputational damage in that regard also.

Additional information not given on the floor of the House.

Ireland's ongoing development as a centre for research excellence continues to be a crucial factor in the attraction of foreign direct investment and SFI serves as a magnet of attraction for FDI through its support of research expertise in ICT, biotechnology and energy, its 341 principal investigator teams, its partnership with FDI and Irish companies in the nine centres for science, engineering and technology, CSETs, and the 19 strategic research centres, SRCs.

As the agency tasked with attracting industrial FDI to Ireland, IDA Ireland approved 126 investment projects for support in 2010, including 37 research, development and innovation projects, where IDA support underpinned total RDI investment of approximately €465 million.

Given the small size of the Irish economy, increased sales will be largely achieved overseas through exporting. Enterprise Ireland is therefore focused on every aspect of the exporting and trade development process and the promotion of Irish companies on overseas trade visits is a key part of this process. Overseas visits present an opportunity to build awareness among the international community of the availability of sophisticated products and services emerging from innovation and research and development within indigenous industry.

We have other strengths, complementary to our fiscal regime and intellectual capital. The availability of qualified labour, a workforce noted among peers internationally for its flexibility and adaptability and falling costs in terms of property, workforce and energy. Our task, working together with the relevant Departments and agencies, is to marshal all of these strengths to deliver a positive outcome.

Deputy Micheál Martin is not present in the Chamber.

Yes, but a representative of his party is present.

On the previous occasion there was a representative of the party of Deputy Durkan in the Chamber but a supplementary question was not asked.

No one sought to ask a question.

The rule has changed.

No, the rules have not changed. The Deputy should please correct himself. He just replied to a question asked by Deputy Martin Ferris.

Deputy O'Dea is representing Deputy Micheál Martin. He should proceed with his question.

That was a Priority Question.

Deputy Durkan is on the Government side and no Government Deputy offered to ask a supplementary question in his name.

That is quite clear, a Cheann Comhairle. I did not get an opportunity earlier to compliment the Minister of State, Deputy Sherlock, on his promotion as he was not in the Chamber when I complimented his colleagues. The promotion is, again, well deserved.

I tabled a question to the Taoiseach and it was transferred to the Department. Could the Minister please clarify what plans he has to go abroad to sell this country in the context in question?

I wish to refer to a number of items in the programme for Government which seem to be pretty good ideas such as the idea of a "Source Ireland" portal and international content services centre to make this country a world leader in intellectual property. They are innovations I would heartily welcome. Could the Minister of State give some indication of when we will see those developed?

On the first part of the question, as the Deputy is well aware the Minister, Deputy Bruton, has already visited India and a further visit to the United States is envisaged some time during the summer. The Deputy will also be aware that the President has visited The Netherlands. Part of that process involved engaging on the European Space Agency, ESA, programme in which six Irish companies are already involved.

An internal engagement in ongoing on the content services centre. We do not have definitive timelines at this stage but there is a very clear direction within the programme for Government that we would build on the existing centres of excellence and create three additional competence centres. That engagement is currently ongoing. I am happy to engage with the Deputy on the matter, as I would be with any Member of the House, because it is in the national interest that we continue to ensure we can build on the €600 million that is invested in research and development in this country.

The research and STI programme will be vital in order to ensure that companies already in this country which are based on the FDI model stay here and that we can build and add to what exists. That is why the budget lines are vital. I will revert to the Deputy on the matter. I thank him sincerely for his kind remarks.

Business Regulation

Sandra McLellan

Question:

9 Deputy Sandra McLellan asked the Minister for Enterprise, Trade and Innovation the measures he will introduce to prevent delayed payments to small business; the monitoring and enforcement that is in place to administer the 15 day prompt payment rule; the mechanisms that will be put in place when prompt payment has not been met; and if he will make a statement on the matter. [10007/11]

Payment terms in commercial transactions are determined by the parties concerned and the responsibility for the collection of those payments and general credit control rests with the selling enterprise, in the first instance. The issue of late payment is covered by the European Communities (Late Payment in Commercial Transactions) Regulations 2002, SI 388 of 2002.

Under these regulations, it is an implied term of every commercial transaction that where a purchaser does not pay for goods or services by the relevant payment date, the supplier shall be entitled to interest, "late payment interest", on the amount outstanding.

In the absence of any agreed payment date between the parties specified in the contract, late payment interest falls due after 30 days has elapsed, provided the invoice is not subject to query. Since 2009, Departments have been improving their respective payment times, so as to assist the cash flow of businesses, which is critical, and are now obliged to pay their suppliers within 15 days of receipt of a valid invoice. This has been extended across all Departments. The 15 day prompt payment rule was introduced to Departments on an administrative basis.

Departments are required to report quarterly on their performance in meeting this target. To date, six sets of quarterly returns have been published on the website www.deti.ie. The ongoing publication of these returns by my Department provides clarity on the performance of individual Departments.

As part of the commitments in the EU-IMF programme the 15 day prompt payment rule is being extended beyond Departments and is being rolled out to the Health Service Executive, local authorities, State agencies and all other public sector bodies, excluding commercial semi-State bodies.

Businesses experiencing any difficulties in securing payments should in the first instance approach the body concerned. Any failure to comply with the initiative can be brought to the attention of the relevant Minister with responsibility for the body concerned. This initiative, which is critical, should have a considerable impact on the cash flows of small companies.

I worked with approximately 2,000 separate businesses in the past seven years in my previous job as a management consultant. One of the major problems they had was getting paid on time. On many occasions when they went to banks, banks did not wish to get on the wrong side of the chain of credit.

I thank the Minister of State for his reply. Because the system is voluntary the Minister of State indicated that a letter will be sent to the relevant Minister in an effort to come to a resolution. Are there any incentives or penalties which can be levied on an offending organisation which has not adhered to the 15 day rule?

A total of 60,666 payments totalling €1.7 billion have been paid. Some 50,000 payments were paid within 15 days which indicates a high level of compliance on behalf of semi-State bodies in a system which is currently operated on an administrative basis. I fully agree that cash flow is the backbone of any business. Given the lack of credit to small companies it is critically important that payments are made within 15 days or at the very least within 30 days. There is no sanction after the 15th day, but there is a sanction if payment is not made by the 30th day.

Clearly, Departments are moving in the right direction and we hope that in the private sector and commercial world people will pay within 30 days. In many cases, the bigger the company, the slower it can be in paying. We encourage companies to pay on time because prompt payment is the life blood of a business. We recommend that with the support of the banking sector, payment is made within 15 days. It is encouraging that some €1.722 billion was paid within 15 days.

Will the Minister of State consider introducing a sanction or some incentive to ensure bills are paid within 15 days?

Fourteen Departments have paid between 96% and 100% of their invoices within 30 days and this Department has paid 91% of invoices within 30 days. I would be delighted if compliance with the 30-day rule was implemented in the private sector because that would be a great benefit for the viability of small companies. That is not the case currently. The Departments are setting a good example and I am pleased with how they are operating the rules currently. It is clear they are taking the advice of the State and paying the invoices of small companies that are the backbone of our economy, the bulk of them within 30 days and quite a number within 15 days. That is very encouraging. Therefore, administrative sanctions would not be recommended currently, because there is significant compliance.

Foreign Direct Investment

Micheál Martin

Question:

10 Deputy Micheál Martin asked the Minister for Enterprise, Trade and Innovation his plans to meet with the CEOs of multinational companies considering Ireland as a location to do business. [6846/11]

Since becoming Minister, I have met and had discussions with the chairmen, chief executives and senior executives in key companies, both indigenous and foreign direct investors, across a range of sectors. Many of the companies involved already have substantial and valuable activities in Ireland while others are considering major investments here for the first time.

On 17 and 18 March last, accompanied by the CEOs of IDA Ireland and Enterprise Ireland, I travelled to Germany and undertook a business programme in Berlin, Dusseldorf and Cologne. Part of that programme involved meeting with senior German executives of existing and target client companies of the IDA. During April, on trade missions to India, Saudi and London, I met senior executives from a wide range of multinational companies and had the opportunity to outline the recent positive developments in the Irish economy and the attractions of doing business with us.

It is my intention to travel to the United States next month in the company of senior officials from my Department and the IDA to meet with CEOs and senior executives of companies located on the west coast. These meetings will provide me with an opportunity to speak directly to senior executives of companies about Ireland as a location for investment and will include existing and target companies. They will also allow me to hear, at first hand, the issues which industry considers important if Ireland is to retain this standing, and I continue to work with my Government colleagues to address these issues in a positive fashion.

I am confident that support from myself and Government colleagues will bolster ongoing contacts between the IDA, Enterprise Ireland and Shannon Development with a wide variety of potential investors and lead to the creation of a pipeline of new business and the creation of high quality jobs.

I am glad the Minister intends to be proactive in this regard. On the question of selling Ireland abroad, is the Minister aware of a document produced by a number of business leaders, entitled Blueprint for Recovery? This document contains a number of suggestions the Government could pursue to sell Ireland abroad. Also, the Twitter organisation is currently considering a substantial investment, which seems to be down to a choice between Ireland and the United Kingdom, and I understand the British Prime Minister, Mr. Cameron, has already met the executives of Twitter. Has anybody met the Twitter executives on behalf of the Irish Government?

I have not met with Twitter executives, but on foot of the Deputy's inquiry, I will inquire as to what contacts have been made and whether there is an opportunity to get access at an appropriate level to try and influence such a choice.

I read the document Blueprint for Recovery as I was travelling from India to Saudi Arabia in the middle of the night and perhaps my recollection of it is not quite as sharp as it should be. It did make valuable suggestions, but many of them were suggestions that had been in previous reports. As I mentioned earlier, I am conducting a root and branch review of what we are doing in our agencies across all programmes and policies and I will look at the suggestions made to see whether they can be factored in to that. We will consider any good suggestions. The suggestion in the media today for a finder fee came from an individual with considerable international experience and is brilliant in a sense. It is something that should be tried. We are willing to try any good ideas and I will revise suggestions with a fine tooth comb to see what initiatives we can test.

County Enterprise Boards

Dessie Ellis

Question:

11 Deputy Dessie Ellis asked the Minister for Enterprise, Trade and Innovation the way county and city enterprise boards are to be restructured; the timetable for this restructuring; and if he will make a statement on the matter. [10012/11]

The county and city enterprise boards, CEBs, have been the principal deliverers of State support to the micro-enterprise sector since their establishment in 1993. The CEBs support micro-enterprises employing up to ten people in the start-up and expansion phases and also promote economic activity and entrepreneurship at local level. The CEBs deliver a series of programmes to underpin their role and they can provide both financial and non-financial assistance to an eligible micro-enterprise. The micro-enterprise sector is a key component of the indigenous small business sector and I am confident that it will be key to our economic recovery.

I thank Deputy O'Dea for his words of acknowledgement on my appointment. With regard to the restructuring of the CEBs, there is no doubt but that the county enterprise board model has served the micro-enterprise sector very well over the years but there is also no doubt that some restructuring of that model is now required. There have been many changes to the social, economic and technological landscape of Ireland since the establishment of the boards in 1993 and it is timely to restructure. However, any restructuring must not compromise the State's engagement with and support for our important micro-enterprise sector and in particular must not make it more difficult for the end-user to access the support services available for the sector.

As Minister of State with responsibility for small business, I want to ensure that there is a coherent and cohesive delivery of State support to the indigenous business sector, based on clear enterprise policy principles laid down by the Department and to ensure that any structural or institutional changes do not compromise the State's support for indigenous businesses. There are a number of schools of thought on the best way forward on CEB restructuring. All options are being considered at this stage and I am engaging with officials and other Government colleagues in order to determine the best way forward.

I noted with some amusement the contribution made by Deputy O'Dea and his cautioning of the Minister with regard to the reduction of the amounts going to the county enterprise boards, while under the Fianna Fáil led Government, the funding for county enterprise boards was reduced by approximately 30%. That is ironic.

On a point of order, I did not——

That is not a point of order.

I want to correct the record of the House. I did not caution the Minister about reducing the amount of money going to county enterprise boards. I will not be misrepresented in the House.

I will allow the Deputy in, but it is not a point of order.

The county enterprise boards are at the coal face of small enterprise development throughout the State. They have a great knowledge of entrepreneurs living in their area and are extremely successful. Their focus, ethos and accessibility would be reduced if they were amalgamated with the local authorities and I would urge the Minister not to become involved in that. Instead, I urge him to reinforce investment in the county enterprise structure.

We have a fine Deputy from Meath here today, but, unfortunately, Meath does not get the same level of investment from the IDA and Enterprise Ireland as other counties. I urge the Minister to take that into consideration in future when developing policy with regard to these organisations. Will the Minister of State consider implementing a State-wide programme for exporting for small businesses with under ten employees and include that in enterprise boards?

The restructuring of the boards is long overdue, but they have operated successfully as a one-stop-shop facility. As Deputy Bruton stated, we are looking at options that will ensure there will be a facility available for people who are setting up small companies in the innovation, research and development area or in the micro-enterprise area and the boards will certainly fund seed capital for larger companies. I assure the Deputy that whatever the final decision taken on the restructuring, it will enhance the situation. We have 35 enterprise boards to date, without duplication. They do outstanding work and have been very successful with limited resources. The backbone of this economy is small companies. It is about encouraging enterprise by providing a one-stop-shop facility that will clearly preserve the ethos of the enterprise boards. I acknowledge the critical role of the enterprise boards to date. Some very successful companies in the State have started with the support of the enterprise boards and that certainly will not be lost in the restructuring. As the Minister, Deputy Bruton, stated, it will encompass the best expertise and facilitation and will cut down on red tape with less duplication to ensure a person with an idea can go to a single location, an instant solution centre, that will satisfy his or her requirements in terms of initial seed capital, working capital or whatever the case may be to encourage that person to set up a company. Our job will be ensuring that facility will be in place.

What is the Minister of State's view on rolling out a State-wide export programme for businesses?

Our job is to ensure the economy can grow. Some 900,000 people work in small companies which form a critical part of the domestic economy. It is the area that needs the kick-start at the moment. Clearly where there is an export potential it certainly will be supported.

Grocery Industry

Michael Colreavy

Question:

12 Deputy Michael Colreavy asked the Minister for Enterprise; Trade and Innovation if he has received the report by a person (details supplied) on a code of practice for the grocery goods sector; when he expects to receive and publish this report; and if he will make a statement on the matter. [10016/11]

I expect shortly to receive the report of the facilitator appointed to engage with the various stakeholders to explore the possibilities of agreeing a voluntary code of practice to regulate relationships and practices in the grocery goods sector. As soon as I have considered the report, a decision will be made on publication of the report and on the detail of any legislation that might be introduced.

As the Deputy is aware, the programme for Government contains a specific commitment to enact the fair trade legislation which will ban a number of unfair trading practices in the retail sector such as so-called hello money which suppliers have to pay to secure a place for their goods on supermarket shelves. It is my intention to give effect to this commitment by including a specific enabling provision in legislation.

The Government is strongly committed to ensuring Ireland continues to have vibrant agrifood and retail sectors, especially given the importance of these sectors to the national economy. The Government considers it important, therefore, that there is balance in the relationship between the various players in the grocery goods sector. The introduction of a code of practice, as provided for in the programme for Government, is intended to achieve such a balance taking into account the interests of all stakeholders in the grocery goods sector, including the interests of the consumer and the need to ensure there is no impediment to passing on lower prices to consumers.

Will there be a mechanism that will allow some of the stakeholders in these areas to help drive the direction of these policies? I am not simply referring to the grocery sector but to the entire business sector. We need these people with experience to have an opportunity to give the Minister the benefit of their experience.

We regularly meet representatives of various sectors. There is a possibility of engaging directly with the sector to agree a voluntary code, but it appears unlikely that will happen. I believe the likelihood is that there will be legislation. Of course there is already legislation and if people came forward with evidence, activities such as demanding hello money would in theory be in conflict with competition legislation. The difficulty is getting evidence to take a prosecution, which is why we need to get a code of practice and get more material published as routine in order that there would be the basis for checking whether there is compliance with the principles. That, unfortunately, appears to be the way to go. I have no great enthusiasm for this because it is another source of regulatory burden, but there needs to be fairness in the balance between the players in the sector. If a voluntary agreement cannot be reached, we will need to take legislative action. The enforcement of that would be down to the competition and consumer authorities. I will probably try to introduce any such legislative proposals in conjunction with the legislation which is due before the House soon.

Job Losses

Sandra McLellan

Question:

13 Deputy Sandra McLellan asked the Minister for Enterprise, Trade and Innovation the active and practical support he will implement to prevent the redundancy rate of 1,200 people a week; and if he will make a statement on the matter. [10006/11]

The redundancy payments scheme, which is now operated by the Department of Social Protection, provides statutory redundancy entitlements to those who have lost their jobs. In addition, the Department of Social Protection and FÁS offer supports to redundant workers, including assistance in identifying new employment opportunities as well as retraining and up-skilling to improve their employment prospects.

I am advised that the level of redundancies in the economy in the first quarter of this year fell by 24% compared with the same period in 2010. During the period January to March 2011, 13,404 redundancy claims were received by the State compared with 17,598 claims over the same period in 2010. The Government's objective is that the number of redundancies will continue to decrease by putting in place the right policies to support job retention and encourage employment growth.

The forthcoming jobs initiative will outline a range of measures which will be taken across all Departments, including my own, to support job retention and creation by improving the business environment, increasing competitiveness, increasing our exports and restoring confidence in the economy internationally and domestically. The presentation of the jobs initiative will be the first step in the Government's plans to bring about economic recovery. Following the publication of the jobs initiative, I will continue to work with my colleagues in Government to develop medium and longer-term strategies to incentivise job creation further. In addition, my Department's enterprise agencies, Enterprise Ireland, IDA Ireland and the county and city enterprise boards, will continue to work with their clients on an ongoing basis to support job creation and retention.

Obviously the redundancy figures are shocking. Each of these lost jobs costs the State at least €20,000. It is very important that the State stands in solidarity with those individuals under threat and also the businesses which for business reasons feel forced to let those individuals go. These are often very highly skilled individuals with great experience and knowledge who could act as a tremendous resource for new business generation. Would the Minister consider a system whereby these individuals could act as mentors to start-up businesses either in a voluntary capacity or supported in some way through the enterprise development agencies?

Many years of bad policies have led to the scale of these figures, which will not be reversed overnight. We will do our level best to make jobs our priority and reverse those losses.

I am very keen to provide more mentoring support and support generally to management capability in a broader range of companies than now receive support. I would be keen to see ways developed that would result in more business-to-business support in the way the Deputy suggests. That would include people who have experience but have been displaced from companies. In the review I am undertaking, I would be keen to see whether we can do more in that area. Unfortunately, we will be seeking to do more with less. We will be looking to chambers of commerce, Plato groups and so on that have been successful in bringing a mix of talent to bear and helping companies to expand and develop. It will be trying to promote self-help groups rather than the State being involved in funding and selecting. I believe there is scope in this area, as the Deputy rightly says.

Job Creation

Peadar Tóibín

Question:

14 Deputy Peadar Tóibín asked the Minister for Enterprise; Trade and Innovation the number of jobs the jobs initiative will create; the time span for the creation of these jobs; the person who will oversee and monitor the effectiveness of the jobs initiative from the perspective of enterprise, jobs and innovation; and if he will make a statement on the matter. [10002/11]

The role of Government is not to create jobs directly but to put in place the environment where businesses can prosper and generate jobs. In this context, the objective of the forthcoming jobs initiative will be to put policies in place to improve the business environment in Ireland, drive competitiveness, continue to increase our exports and restore confidence in the economy, both internationally and domestically. The jobs initiative will support the maintenance of existing jobs as well as facilitating the creation of new ones. The initiative will include a range of measures which will be taken across all Departments, including my own, to stimulate the economy and help get people back to work.

It is likely that the impact of the jobs initiative on employment will be most visible from 2012 as economic activity picks up in response to the initiative and other Government measures. The stability programme update published on 29 April foresees net employment creation of the order of 100,000 over the period from 2012 to 2015. The presentation of the jobs initiative will be just the first step in the Government's plans to bring about economic recovery and incentivise employment. Following the publication of the jobs initiative, I will continue to work, along with the enterprise agencies and my colleagues in the Government, to develop a medium-term jobs programme.

We will develop policy on a number of fronts, such as improving access to finance for enterprises, getting our cost base right, helping businesses to be more innovative and to win new markets, and developing strategies to capitalise on Ireland's potential in key sectors such as life sciences, cloud computing, the digital gaming industry, the green economy and the international education sector. As outlined in the programme for Government, the Government will also implement a number of sectoral initiatives in areas that will create employment in the domestic economy. These include initiatives in the retail and SME sectors, ICT, agri-food, tourism, financial services, social enterprise, the green economy and education. We will introduce a new national development plan that reflects Ireland's changed economic circumstances , covering the seven-year period 2012-19.

As Minister with responsibility for enterprise, jobs and innovation, I will be monitoring closely the impact of the jobs initiative and subsequent strategies in the areas that fall under my remit.

There is a major difference between the perspectives of each side of the floor. The Government is locked into a deflationary policy that prevents major job-creation initiatives from being undertaken. In the Nyberg report, we read about the herd mentality. There is often a homogenous way of thinking when trying to solve these problems. I urge the Government to break out of its current view if at all possible. There are ways in which governments can create jobs, including capital investment projects. In my county, schools, hospitals, rail lines and green projects need to be built. The Government could also develop projects such as the IFSC, which created a large number of jobs in recent years. Will the Government begin to initiate projects, as outlined in its manifesto prior to the election, that will actually create jobs rather than leave the task to the private sector?

We certainly will. The programme for Government, as the Deputy knows, contains a commitment to develop a State infrastructural bank and the concept of NewERA, by investing in key State-owned infrastructure. We recognise there is an onus on the State to take the initiative in areas in which it can make a significant contribution.

We must be honest about the fact that at a time when we are spending 40% more than we are raising in revenue, the emphasis must be on structural reform and micro-reform as opposed to big spending programmes of the traditional sort. We will have to box clever with the money we have available rather than have big spending programmes. I admit other economies that do not have debt levels at 100% can engage in the latter with some effect. We must focus on the instruments available to us. Much of the assessment of our economy recognises that structural reforms can have the greatest impact on long-term employment sustainability. The focus of the Government's strategy is correct.

Employment Rights

Mick Wallace

Question:

15 Deputy Mick Wallace asked the Minister for Enterprise, Trade and Innovation if he will vote for the adoption of an International Labour Organisation convention on domestic workers’ rights in Geneva in June 2011; and if he will make a statement on the matter. [10001/11]

At the forthcoming International Labour Conference to be held in Geneva in June 2011, the proposal for a draft convention on decent work for domestic workers is a significant and important agenda item. In accordance with standard procedure in respect of the negotiation of any international labour instrument at the International Labour Organisation, it will be the subject of discussion on a tripartite basis involving Governments, employer representative bodies and worker representative bodies over a three-week period. The possible adoption of any such international labour instrument will be subject to the outcome of these discussions at the conference in June.

The Deputy will appreciate that in advance of the detailed discussion and negotiation on the text of any such international instrument, it would be inappropriate to anticipate our position on a draft convention, the final text of which is not yet settled. However, it is worth pointing out that the full suite of employment rights that applies to workers in Ireland is equally applicable to domestic workers. Ireland has been cited internationally as an example of good practice in this area, not least through the introduction of a voluntary code of practice entitled Code of Practice for Persons Employed in Other People's Homes in 2007. During Ireland's tenure on the governing body of the International Labour Organisation, the Irish Government representative supported the inclusion of an ILO standard-setting instrument in this area on the agenda for consideration by the International Labour Conference.

In the context of the forthcoming International Labour Conference in June, Ireland will continue to play a constructive and positive role in which it is hoped the ILO will be in a position to adopt a convention on decent work for domestic workers.

I am sure the Minister is probably aware that one third of domestic workers in Ireland earn less than the minimum wage at present. It is reckoned that 40% of them have no contracts. Unfortunately, many of the domestic workers in Ireland are migrant workers and their immigration status is very often used against them. Domestic workers do not have the rights of ordinary workers at present. With a view to being fair, their rights are worth campaigning for. The Government should be pushing very strongly in this regard.

Under existing law, NERA inspectors can pursue the examination of employment records, either entering with the consent of the occupier or by warrant of the District Court. As in all cases where NERA proposes to conduct an inspection of employment records, notice is provided by it either in writing or by telephone to advise the employer of the proposed inspection. I am advised that, in cases where consent to enter a private residence is not given, NERA meets the employers in an alternative location to examine the relevant employment records, although this has arisen only in a very small percentage of cases.

From what the Deputy says, domestic workers are very much part of the grey economy. It is undoubtedly an issue of enforcement rather than conventions in that the full weight of existing domestic law applies. From what the Deputy said, it is not being achieved in a substantial minority of cases. I recognise this problem. I will have to take advices on how it can be better handled. The Deputy is probably correct that the problem is largely associated with incorrect immigration status. It is quite a complex issue. The enforcement of migration rules raises very significant difficulties also.

That domestic workers have so few rights makes it much more difficult for them to fight for a fair deal. If they are not getting a fair deal, they are more often than not under pressure to stay quiet. Until we afford to them the same rights as are afforded to other workers, they will not be in a great position to fight for their entitlements.

Written Answers follow Adjournment Debate.

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