Vol. 743 No. 2
6 Deputy Micheál Martin asked the Minister for Jobs, Enterprise and Innovation the number of civil servants or other staff from his Department who accompanied him on his recent trade mission to the United States; the number of civil servants from the Department of Foreign Affairs and Trade who accompanied him on this mission; the cost of the mission; and if he will make a statement on the matter. [28837/11]
On my recent trade mission to the south eastern states of the USA, involving a detailed programme of events in Atlanta, Georgia, Miami, Florida and Raleigh and Charlotte, both in North Carolina, I was accompanied by my private secretary and by one other official from my Department who has responsibility for trade matters. The net cost of this mission was approximately €49,000 and this was borne by Enterprise Ireland. No civil servants from the Department of Foreign Affairs and Trade travelled from Ireland but the Atlanta-based Irish Consul General accompanied me to several of the events and meetings.
The trade mission involved over 60 Irish companies who are clients of Enterprise Ireland and its aim was to widen the export footprint of Irish exporters by exploring new opportunities in these fast growing south eastern states. As the United States is already one of Ireland's most important trading partners and the largest export market for Irish goods, sustaining export growth there is essential in the continuation of our drive towards export-led growth.
The Government is keen to build on our existing export successes on both the east and west coasts of the US and to pursue further export gains that can be achieved by breaking new ground in other parts of that country. The mission was about showcasing Irish products and services to new areas of the USA.
In the context of this mission, I also met, in association with IDA Ireland, senior representatives of Bank of America to discuss issues arising from their plans for a withdrawal from the Irish and UK credit card market which has implications for the employment of their existing staff here. In addition, I also pursued other foreign direct investment prospects on behalf of IDA Ireland and I also facilitated a Bord Bia food promotion initiative.
As those states are home to institutions and colleges with a renowned reputation for scientific research, especially the North Carolina research triangle, I also facilitated contacts for Science Foundation Ireland and for some Irish companies and educational bodies which were developing their relationships with relevant contacts there.
Ministerial-led trade missions are an integral part of this Department's work to develop and expand Ireland's exports to existing and new markets abroad. It has been the experience of my Department and of the companies participating in such missions, that the presence of a Minister enhances the opportunities for the companies involved and achieves a higher level of recognition and access for companies to the various target markets.
I thank the Minister for his reply and I am sure he works very hard. The cost of these trade missions should be kept to a minimum but I must question why no official from the Department of Foreign Affairs and Trade accompanied the Minister. As he said in a response to an earlier question, the Department of Foreign Affairs and Trade is central to trade promotion. Is this a form of branding exercise? How many civil servants have been transferred from the Department of Foreign Affairs and Trade to the Minister's Department to deal with trade? Has the Department of Foreign Affairs and Trade any significant input into such trade missions or is this work still firmly in the grasp of the Department of Jobs, Enterprise and Innovation?
On the contrary. The south eastern states of the United States have been designated by the Department of Foreign Affairs and Trade as a key region for trade opportunities. The Department opened the first consular office in Georgia since 1933. The office supported me throughout the entire visit. The consul general is a very talented and expert person. We do not need to bring numbers in order to make an impact. Our approach is to ensure that the Department of Foreign Affairs and Trade has a presence on the ground and its representatives do other work besides trade promotion, although this is regarded as a primary task. I was impressed by the number of contacts with business and political contacts that have been established by the Department of Foreign Affairs and Trade through its consular office. We built on this work as this is a collaborative process. One does not need to have a large staff complement and a wide-ranging entourage to make an impact.
I have never been in favour of big entourages. I asked the Minister how many officials have been seconded to his Department from the Department of Foreign Affairs and Trade to deal with trade. The Government made a specific commitment that the Department of Foreign Affairs and Trade would be centrally involved in the promotion of foreign trade. How is this reflected in the deployment of officials in both Departments?
That is the subject of a later question and I do not wish to upstage the Member who tabled it. In answer to the Deputy's query, it is a small number of officials. Enterprise Ireland undertakes much of the planning of these trade missions by organising an array of companies which are relevant to the development of trade opportunities in these target markets. We work with the diplomatic representation and this is how the collaborative process evolves. This is not a competition between my Department and the Tánaiste's Department. The number of staff seconded is small but this reflects the fact that much of the spade work is done by Enterprise Ireland with regard to companies with relevant contacts and by the locally-based officials of the Department of Foreign Affairs and Trade.
7 Deputy Martin Ferris asked the Minister for Jobs, Enterprise and Innovation if he will develop financial supports to businesses to encourage them to keep staff gainfully employed instead of having to let them go. [28881/11]
Job creation is central to our economic recovery and the programme for Government has job creation at its core. The role of my Department is to ensure that we have the right policies in place that will support and grow our enterprise base in order to facilitate both job creation and job retention. On a national basis, the jobs initiative announced on 10 May focuses our limited resources on measures that offer the greatest potential for expansion and employment creation in the domestic economy. There are 200,000 companies employing up to 900,000 people in the domestic economy and our job is to kick-start the initiative there because the sector is the backbone of the domestic economy. Initiatives such as the reduction in the VAT rate and the reduction in the low rate of employers' PRSI were designed to keep people gainfully employed. During the most acute phase of the recent recession, grants were offered to exporting companies to help them adapt to the difficult conditions. Some companies have used part-time working as a way of adapting to temporary falls in demand and receive support from the Department of Social Protection.
Very many of the programmes operated by the Department's agencies are designed to help businesses develop their product range, open up new markets or improve their skills and processes in order to keep people in employment. For example, Enterprise Ireland provides a range of supports to assist companies, especially SMEs, to meet the challenges of exploiting new business opportunities, thus sustaining jobs. These include research and development grants; programmes to improve productivity and processes; management development and mentoring; and supports to enter new export markets. The Minister's recent trip was all about exploring the huge potential in that regard.
The Government's work in restructuring the banks to create two pillar banks capable of lending into the domestic economy is central to our strategy for job protection. The Government has recognised that there still is market failure in providing finance to SMEs and we are working on the early introduction of a temporary partial loan guarantee scheme which will help.
On a weekly basis, small businesses are going out of business and the jobs lost weekly are almost equivalent to the number of jobs lost in TalkTalk. This is a silent annihilation of businesses and the jobs involved. Each time a business closes and a person goes on to the live register, it costs the State €20,000. If we remove a person from the live register, there is a saving of approximately €13,000. Germany and other countries have a subsidy system whereby the Government gives the business a subsidy to employ an individual, perhaps on a short week or for three days a week. Can our Government not do something similar? If, for example, €500 million was spent over three years on such a programme, this would save the State €500 million net, because many of those people would not be going on to social welfare. This would also give the State the opportunity to provide training and up-skilling for these individuals on the two days they are not working.
The Minister for Social Protection, Deputy Burton, has introduced an internship programme which has been very effective as can be seen by looking at the uptake and the opportunity provided by the scheme for SMEs. The 200,000 small companies that employ 900,000 people are the backbone of our economy. We must recognise the services and manufacturing sectors and we have a deep understanding, respect and concern for them and will provide a service to them as they form a critical mass for the economy. I have spoken to several employers on the issue of the internship programme and I know that some changes will be made that will encourage a greater retention of staff beyond the nine-month period. The real job of government is job retention and to keep every business possible open.
The micro-finance fund to be introduced by the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, will be critical, as will the partial loan guarantee and the ring-fencing of €20 billion for the two banks to be lent to SMEs over the next three years. Our job is to ensure access to credit. However, a question that must be taken into account is whether companies are viable. Banks will not give money to companies that are no longer viable. Our job is to ensure confidence and credit in the economy. We have the highest rate of savings ever and must ask people to "Buy for Ireland" and encourage them to spend locally, because banks will not give money to a company that is not viable.
The Government has told the banks to deleverage €70 billion and it has told them to give €6 billion to small businesses. The two objectives are mutually exclusive and cannot be achieved at the same time. With regard to the national internship programme and unemployment, we have almost 500,000 people on social welfare, but only 5,000 positions are being provided on the national internship programme. If the problem is as big as Kildare Street, the solution is the same size as this glass. The mismatch between the scale of the problem and the solutions attempted by the Government are incomprehensible. There is no match between the problem and the solution when there are only 5,000 internship places for 500,000 unemployed.
I come from a business background where it is said: "No problem, no business." There will always be problems, even if the Deputy assumes it is as easy as he assumes it is to solve the problem. The Government has clearly come up with a radical plan to encourage business people to hold onto staff. It has done the same with regard to the banking issue, through placing John Trethowan in charge of the credit review office. It has also ensured that the two pillar banks will be observed over the next three years so that the €20 billion that has been ring-fenced for SMEs will be dispensed. We also have the partial loan guarantees. I am on the ground with regard to business and it is not as simple as the Deputy thinks it is to solve the problems.
The credit review office has only dealt with 30 cases this year.
We must move on.
It is not a simple issue. Deputy Burton has initiated a very good internship programme and I guarantee there will be a lot more placements on it.
8 Deputy John McGuinness asked the Minister for Jobs, Enterprise and Innovation if he has had any involvement in the establishment of NewERA in view of its job creation remit; the role he will take when the agency is established; and if he will make a statement on the matter. [28842/11]
On 29 September last, the establishment of NewERA was announced by the Minister for Finance, the Minister for Public Expenditure and Reform and Minister of State Fergus O'Dowd, who has special responsibility for NewERA. The Government took the decision to establish NewERA to reform the manner in which Government manages its shareholding in the semi-State companies. It is one of the key commitments in the programme for Government and is central to our plans for investment.
NewERA will initially be established on a non-statutory basis as a shareholder executive within the NTMA. It will have responsibility for reviewing capital investment plans of the commercial semi-State companies from a shareholder perspective and will identify possible synergies between investment programmes of different State companies. The companies in question are the ESB, Bord Gáis, EirGrid, Bord na Móna and Coillte.
The decision to establish NewERA is an important element in the Government's strategy to create jobs and promote economic growth. The operation of NewERA will be overseen by the Cabinet committee on economic infrastructure, of which the Minister, Deputy Bruton, is a member.
The Government is doing everything it can to create jobs and improve Irish infrastructure. Part of this is to ensure that critical infrastructure is put in place to allow enterprise to grow now and in the future and take advantage of the opportunities which arise in traditional and emerging sectors.
I deduce from the Minister of State's response that the most extraordinary situation now exists and that something which is central to the Government's job creation programme will only involve the Minister for Jobs, Enterprise and Innovation in a peripheral way. He will be a member of the Cabinet sub-committee which will discuss these issues in a general way and sign off on them, but the other Ministers mentioned are the ones who will be centrally involved. I find this very strange, but perhaps the Minister of State can allay my fears.
When NewERA was first mooted by the Fine Gael Party, the target was 105,000 jobs. Does that remain the target or has the target moved? Is there any target now?
The fact that Deputy Fergus O'Dowd is the Minister of State with responsibility for NewERA is incidental in terms of this being a whole Government approach to the issue. We should not underestimate the fact that the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, is on the Cabinet sub-committee. There is a corporate view at Government level between the two parties of Government of the need to ensure we have an entity that will carry out a corporate governance function from a shareholder perspective and that will report to the relevant Ministers and be overseen by the Cabinet committee on economic infrastructure. The bottom line is that it is a whole of Government approach. Through NewERA, the Government is taking control of the infrastructure as per the semi-State companies involved.
Regarding the second part of the question on the jobs target, the key emphasis is to ensure we get it up and running. We must get the key strategic infrastructure fund in place through the NPRF and we must become more efficient in terms of how we run these companies. Infrastructure is the key at this point.
I am glad the Minister of State has confirmed that the jobs target has disappeared. When this programme was first mooted in November 2009, the proposed expenditure was €18.2 billion. It subsequently dropped to €7 billion and it is now at €2 billion or 10% of what it originally was. The funding for this appears to come from the sale of strategic State assets. The troika has not yet given permission to invest the proceeds in that way. Why was there a public announcement of NewERA, with expenditure incurred in setting it up and allocating staff, when there is no guarantee that the body will be able to spend any money arising from the sale of State assets?
There is a commitment in line with obligations to the troika in respect of non-strategic State assets. Deputy O'Dea is aware of why we are in that position. The key issue is that, following the appropriate legislative changes, resources will be channelled from the NPRF to productive investment. We are talking about productive investment in the Irish economy. I realise there may not be a specific target of a number of jobs. Although one of the parties in government set out a specific target as part of its manifesto, there is a programme for Government and a clear convergence in terms of what both parties are trying to achieve. We must be mindful of targets and ensure we have an efficient organisation in NewERA to manage infrastructure and investment in partnership with the NPRF, using the strategic infrastructure fund, which will be the forerunner to the strategic infrastructure bank.
Many of us on this side of the House believe that the move to sell State assets is a shameful betrayal of the public interest. However, given that the Government and the troika are determined to go through with it, can the Minister of State be more specific about the jobs created from this process? From the answer to Deputy O'Dea, should I take it that we do not know many jobs we will create, what projects we will engage in and the funds available to NewERA until the troika gives us permission and gives us the answers to these questions? Can the Minister of State be more specific on his role in deciding the projects, the amount available for the projects, and the number of jobs created?
Discussions with the troika are ongoing this week in respect of the issue. We are ensuring that we can leverage State assets to create jobs. Deputy Boyd Barrett has a political philosophical view on selling State assets that must be respected but there is a process of engagement with the troika in which commitments are given by this Government, which is sovereign. We are not going to disavow those commitments but, as a Government, we are in the business of seeking to ensure we can get out of this economic morass. The sale of State assets is one mechanism by which we can do this. We want to create an efficient tool called NewERA so we can ensure that we can leverage the assets to create jobs. I cannot give an exact answer of pounds, shillings and pence for the number of jobs we can create.
The Minister of State should guess.
The assets will be used in a way that seeks to leverage them to create jobs and we have not maximised the potential of those State assets heretofore.
9 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent, if any, to which he has examined possible reasons for job relocation from this jurisdiction to other areas in Europe and around the globe in respect of high, medium and low skilled employment over the past six years to date; if any evaluation has been done regarding the number of enterprises in each of the aforementioned categories in order to determine the main reason for such a move; his plans or proposals to address any issue arising in the future; and if he will make a statement on the matter. [28852/11]
88 Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he has studied the reasons for relocation from this jurisdiction and for whatever reason over the past five years; the degree to which specific steps can be taken to address such issues with a view to minimising any such relocations in the future; and if he will make a statement on the matter. [29122/11]
I propose to take Questions Nos. 9 and 88 together.
There are many differing and complex factors that can influence a firm's decision to relocate in today's modern globalised economic environment. Companies adjust their plant and utilisation strategies to address matters such as accessing new markets, moving production nearer to customers, meeting firm or market specific customer relationship issues, in addition to business takeovers and consolidations.
Recent jobs losses that have occurred in the FDI sector in Ireland are largely the result of the continuing restructuring process that is ongoing in Ireland and other developed economies, driven by competitive pressures and technological change. This results in jobs at the lower end of the value added scale being either phased out completely or relocated to lower cost locations.
An analysis of closures in the IDA portfolio of companies over the period 2005-10 shows that the majority of the closures were in areas such as metals and engineering, print and packaging, textiles, and plastics and rubber. The remainder of closures were spread across more vulnerable parts of sub-sectors that are growing overall, such as ICT, international services and chemicals. In many instances, it is not possible to distinguish between jobs that are made redundant as a result of technological change and those that relocate to lower cost locations.
The IDA strategy, Horizon 2020, is focused on winning as many new jobs as possible each year and giving equal priority to maintaining existing jobs. On a daily basis, the IDA is working with its clients, making every effort to retain their operations in Ireland and minimising job losses. The IDA continues to play a key role in both encouraging and assisting its client companies to move up the value chain in terms of carrying out higher skilled operations and expanding their presence in Ireland. The IDA's aim is to retain existing clients, improve the quality of employment opportunities in Ireland and increase the positive economic impact.
The IDA actively encourages its clients to engage in transformation initiatives, and is assisting them in programmes to improve company-wide competitiveness, enhance the use of new technologies, grow the skills of the business, engage in research, development and innovation, develop new business processes and make company operations more energy efficient.
Additional information not given on the floor of the House
For much of the last decade, company relocation has been positive overall for Ireland. The IDA has continued to attract and retain high value investments from leading global corporations. The combined influence of Ireland's improving competitiveness, our commitment to maintaining our 12.5% corporate tax rate, the development of our national infrastructure, the Government's investment in science, technology and innovation, and our strong skills base has been instrumental in this regard, and will continue to attract and increase the level of inward investment in Ireland. To date in 2011, the IDA has announced investment decisions which will create over 4,500 jobs in the Irish economy as the investments come on stream.
IDA's focus will continue to be on high end manufacturing, global services and RD&I across a wide range of sectors. In particular ICT, digital media, international financial services, internationally traded services, life sciences and clean tech are poised for further growth.
Over the past five years or more, there has been a steady outflow of jobs to other jurisdictions for a variety of reasons. Some of these are jurisdictions within the EU, some are outside. Has a stringent and forensic evaluation of the causes given for the suppression or relocation of such jobs been carried out? Has the Department engaged with the firms concerned with a view to identification of those issues? To what extent has a plan been put in place to address the issues arising therefrom? For example, the case of Jacob's Biscuits comes to mind. The firm relocated from this jurisdiction to an adjoining jurisdiction, where the costs should not be all that much greater. Given the need to encompass within our economy all levels of skills and accommodate them within the labour force, can the Minister indicate whether his Department will lead the campaign to identify the issues with a view to addressing them in the short term?
The Deputy is right, there is always a careful analysis of each closure, and the IDA seeks to work with companies to prevent closure where possible. In many of these cases, however, the cost competitiveness comparisons are significant. This applies even to the UK. Over recent years there have been adverse cost comparisons between some Irish locations and some UK locations. Over the last two years there has been a significant improvement in unit wage costs in Ireland compared to other countries, and we are seeing developments and advantages due to this. Companies that were struggling are doing better as a result.
There is a range of issues here, as I said in my reply to the question. It is never one issue. Some companies have located service centres here, which will survive if they become more sophisticated over time, add value and become more integral to their companies. If they are allowed to become slightly marginalised from the central operations of the company they are vulnerable, and small cost differences can then undermine them. That is one analysis. However, the reason I pointed to the programmes run by the IDA is that they are built on that analysis. It is the application of new technologies, the introduction and upgrading of skills, investment in research and development, examination of the business process, and deeper involvement in the business — for example, if a centre is providing customer support, it could move to other areas of involvement with the business — that copperfasten the survival of businesses.
Would the Minister agree that for a long time the Government has concentrated on foreign direct investment? It is great that we have foreign investment here; unfortunately, however, there is always a temptation for such companies to move to countries where their costs are lower. For too long, we have not concentrated enough on indigenous industry. This is a major problem for us. In Wexford, where 20,000 people are already unemployed, 80 jobs have been lost at Sola ADC Lenses. I have not seen much effort being put into the creation of indigenous industry in the Wexford area and in Ireland generally. This is a major problem. It would be a feather in the cap of this Government if it changed tack and put far more resources and effort into the development of indigenous industry.
I still have a problem — as I am sure the Minister has — with some of the relocations. For whatever reason, companies have decided to move to other jurisdictions. How can we address those issues? For example, is it a question of costs, such as energy costs? If it is something else, such as access to markets, what can be done to address that in the short term? Now is when we need do this.
I do not want to be smart, but each case is different. For example, the work being done by TalkTalk, which is very much in the news, had dropped by something like 40% within the group. As a result, that fairly narrow range of services was no longer required, and the centre moved to another location because business, generally, was down. In other cases, one can seek to broaden the base of the company to future-proof it against changes. There is no single explanation that can apply in all cases. The challenge for the IDA is to work with companies. It is no secret that the IDA was engaging with TalkTalk with the aim of implementing training programmes to strengthen its base. We need to examine these issues continually.
To comment on Deputy Wallace's point, it is not an either-or situation. However, I accept his point that we have failed to develop a strong indigenous engine of growth. This is something we need to consider seriously. It is true that Enterprise Ireland has been successful with high-potential start-up companies, of which there are 80 this year. These are very dynamic companies. However, we do not yet seem to be able to increase the size of them to the kind of scale to which other countries have built them. We need to consider the obstacles to that. Are they policy obstacles, or is there an issue with the way in which we fund companies? We need to think hard about that.
In addition, we have not penetrated sufficiently broad export markets with our indigenous companies, which have tended to stay within a narrow geographical area. What we are seeing in this recession is that they are doing exactly that. Much of our success in this recession is due to indigenous companies. As the Minister of State, Deputy Sherlock, just said, growth in indigenous exports this year will be 10%, and this will exceed growth in foreign-owned companies. They say necessity is the mother of invention, and we are seeing indigenous companies become much more inventive.
10 Deputy Michael Colreavy asked the Minister for Jobs, Enterprise and Innovation the basis on which Industrial Development Agency Ireland engaged with the management of Aviva; his views that it is unprecedented that the IDA would engage with a company before it’s staff were even notified of any threat to their jobs. [28873/11]
IDA Ireland engages with Aviva both here in Ireland and at its corporate headquarters in the UK to understand the company's strategy and business development needs and to win investment and jobs from the company for Ireland. The IDA regularly engages with companies that may be contemplating restructuring in order to help protect employment. This is the primary basis for the IDA's engagement with all international companies and it is an approach that has served this country well for more than 40 years.
Aviva is undertaking a review of its operations in response to a significant reduction in demand for insurance and pensions products. Industry figures show significant drops in both home insurance business and pension and life assurance business, which has greatly affected Aviva's operations. The fall in the Irish market has led to the present restructuring review, which is being led by the company's European management. This is against the background of a reduction in staff numbers in the UK from 33,000 to 20,000, with the company's global workforce dropping from 56,000 to 36,000.
I met Aviva's CEO for worldwide operations and its European director, as well as the CEO of Aviva Ireland, as part of an ongoing process. I expressed the concern of the Government about the impact on employment and urged them to seek solutions that minimised the impact on jobs. I also offered them the support of the agencies of my Department. The company briefed me on the discussions that have been taking place. It remains committed to the Irish market. The representatives reiterated that no final decisions had yet been arrived at.
I assure the House that the IDA's central role has always been to anticipate and understand the needs of businesses that have invested here, seeking wherever possible to prevent job losses where they might occur.
I understand the importance of the IDA engaging with the businesses themselves. If it was not, we would be here holding the Government to account. However, speaking to unions and workers' representatives, I have heard that many of them feel very much left in the dark in this whole process. They consider it strange that they were not told about the issues that would affect them, while the IDA was. Would the Minister not agree that since it is the future of the workers that is at stake, they should have been told before the IDA became involved? Also, the workers themselves could well be part of the solution to the problems that are affecting Aviva.
They are different relationships. The IDA is an investment agency of the State which seeks to work with companies to anticipate challenges they might meet and deal with them through updating of skills, research and development investment and other means of assistance that might strengthen them. It is routine for the IDA to make contact with companies and, where the possibility of restructuring comes to its attention, it will engage intensively with the company concerned. It is not for the IDA to seek to inform workers of impending changes, that is not its role. I understand the anxieties of workers in this situation but the issue of the company's communication with its workforce is different from the IDA's work with the company, which is ongoing and seeks to anticipate and, where possible, pre-empt changes. They are two different issues and the IDA is acting entirely appropriately. However, I appreciate the concerns of workers and I hope this review will serve to end their uncertainty as quickly as possible and allow them to contribute to a resolution.
If the situation at Aviva goes wrong, it will mean job losses not only in Dublin but also in Cork and Galway. When one takes into account workers' families, thousands of individuals will be directly affected by these job losses. In effect, some €38 million will be taken out of the economy and the Government will have to spend an additional €20 million on social welfare supports. It is akin to the TalkTalk situation but in slow motion. The Government must take the opportunity to engage proactively with the company in order that the necessary changes can be made and these jobs retained.
I assure the Deputy we are doing everything we can. As I indicated in my reply, Aviva has been restructuring its operations in the United Kingdom and Europe. In other words, the proposals regarding its Irish operations are part of a broader trend. There has been a huge collapse in the company's business in the Irish market and a review is now in train. The company is seeking to come to terms with the difficult trading conditions that pertain in this country.
The IDA will support the company it any way it can but one must bear in mind that the IDA's chief remit relates to new opportunities, particularly those orientated towards export markets. For companies trading within the domestic economy, there is limited support available from the development agencies. We can support only certain types of activities and opportunities, and those are the ones the IDA will seek to influence.
11 Deputy Robert Troy asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the proposal to amend the law arising from the decision of the High Court in the case of EMI versus UPC; and if he will make a statement on the matter. [28822/11]
My Department recently carried out a public consultation in regard to this matter. The consultation document set out the background to the matter arising from the judgment issued by Mr. Justice Charleton in the High Court in the case of EMI Records (Ireland) Limited and others v. UPC Communications Ireland Limited. It indicated that it had been considered heretofore that injunctions, as required under Directive 2001/29/EC of the European Parliament and of the Council of 22 May 2001 on the harmonisation of certain aspects of copyright and related rights in the information society, known as the copyright or info soc directive, were already available in Irish law under subsection 40(4) of the Copyright and Related Rights Act 2000.
However, in the judgment referred to, Mr. Justice Charleton held that he was constrained by the wording of the 2000 Act and could not grant an injunction, as sought, in regard to infringement of copyright against an information service provider in the circumstances of "mere conduit", as set out in the EU e-commerce directive, 2000/31/EC. Accordingly, and for the avoidance of doubt, the consultation document indicated that it was considered necessary to restate Ireland's compliance with the directives concerned. In proposing to do so, it was pointed out that the Department was particularly conscious of the importance of online content and digital businesses in the Irish context and that, accordingly, it was simply seeking to ensure Ireland's continued compliance with its obligations under the relevant EU directives, following the decision of the High Court in the aforementioned UPC case.
Additional information not given on the floor of the House
The consultation document also contained the text of a proposal to amend the Copyright and Related Rights Act 2000, by means of a statutory instrument under section 3 of the European Communities Act 1972, which had been drawn up after careful consideration and in consultation with the Office of the Attorney General. Arising from the public consultation, more than 50 submissions were received from interested parties. Several of these submissions contained legal argument in regard to the issue, including, in at least one case, advice of senior counsel, as well as detailed comments in respect of the draft statutory instrument which was published as part of the consultation process. These comments are being considered by my Department in conjunction with its legal adviser and the Attorney General's office.
The court case in question took place more than a year ago, since which we have been in something of a vacuum. There are thousands of jobs at stake, including 1,600 in Xtra-vision alone, not to mention all the other jobs in related areas. Moreover, looking to the future, it is the centrepiece of the Government's economic policy to create jobs in the digital games area and so on. It is ten weeks since the Minister of State initiated the consultation process, which is welcome. I am asking, on behalf of the industry, and on behalf of the workers in particular, when the matter will be resolved.
I will not be held to a timetable because I want to give this matter the fullest consideration. There is more work to be done between my Department and the Department of Communications, Energy and Natural Resources. Given that I have been in office only since March, I reserve the right to take more time on this issue. I do not accept the argument that there are jobs at stake. It is an issue on which there is an interaction between rights holders, the "mere conduits" — that is, the Internet service providers, ISPs — and the end users, of whom there are millions. We must ensure that we get the balance right and that the legislation is correct. I am conscious of the Deputy's point regarding the gaming industry and Xtra-vision, but I intend to make haste slowly on this issue.
I understand the Minister of State has had a meeting with the organisation representing ISPs. Is he prepared to meet representatives of the Irish Recorded Music Association, IRMA?
I would be happy to meet all stakeholders on this issue.
Written Answers follow Adjournment.
