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Dáil Éireann debate -
Thursday, 26 Apr 2012

Vol. 763 No. 2

Priority Questions

Industrial Relations

Willie O'Dea

Question:

1Deputy Willie O’Dea asked the Minister for Jobs; Enterprise and Innovation if his attention has been drawn to the fact that employers are increasingly disregarding the recommendations of institutions such as the Rights Commissioner and the Labour Court; his plans to deal with this; and if he will make a statement on the matter. [21035/12]

Recommendations and awards of these institutions may concern either industrial relations or employment rights issues. I will deal with each separately.

The system of industrial relations in Ireland is essentially voluntarist in nature. The State provides a framework and the institutions through which good industrial relations can prosper. It is expected that the parties to a dispute come to the process in good faith and consequently are prepared to give serious consideration to the recommendations made. It should be noted, however, that either party to a dispute may reject such recommendations. I am not aware of an increasing disregard from employers to the recommendations of these institutions. Accordingly, I have no plans to make any changes to alter this voluntarist principle. It has been tried and tested over a long period and has proved robust in dealing with many difficult disputes.

Employment rights awards may be enforced, depending on the legislation, usually by application to the Circuit or District Courts. I would not normally be aware of the enforcement history of a particular award. However, as Minister, I may sometimes make an application to the courts on behalf of a claimant. Through these cases and a recent consultation process I undertook, I am aware of increasing concerns with regard to situations where employers fail or refuse to comply with awards of rights commissioners, the EAT or the Labour Court with regard to awards under employments rights legislation. It is my intention this autumn, in the forthcoming workplace relations Bill, to develop new and more effective ways of enforcing such awards. I have already sought the views of all interested parties as part of the workplace relations reform programme on how to improve this system. I am open to all positive suggestions and advice on the design of a better system.

I welcome what the Minister has said with regard to the forthcoming legislation in the autumn. We look forward to seeing what improvements he can manage to bring about in the system.

I would like to bring the Minister back to the situation under the industrial relations legislation. Is he aware that in 2010, the last year for which we have figures, no less than 543 cases were referred to the Labour Court under the industrial relations legislation? However, the Labour Court could issue a binding recommendation in only nine of them, less than 2% of the cases. To put it another way, in over 98% of cases that went to the Labour Court, if the employer chose to ignore the Labour Court recommendation, the employee was in no position to vindicate his or her rights. The figures for 2009 are somewhat similar with ten out of 606 cases. Will the Minister agree that this is very unfair, that it needs to be given careful and serious consideration and that the Connolly Shoes case, with which he would be familiar, is a classic example of what happens when employers fail to engage meaningfully with employment rights bodies?

I agree there have been difficulties with the resolution of many industrial disputes. However, legal mandatory rulings have not been a feature of our industrial relations scenery and they create a very different approach to industrial relations. Our industrial relations machinery has evolved on the basis of seeking to be conciliatory and to bring parties together. Ultimately solutions have to be found from between the two sides and seeking to have binding legal obligations in respect of a dispute of this nature has never favoured. One would need to consider long and hard before imposing mandatory solutions producing binding decisions which affect workers or employers without them having the opportunity to take a different view.

The Deputy is suggesting a very profound shift in the type of industrial relations approach in this country. Our record of low industrial strife points to the success of the system. I recognise there are always some cases which prove the exception to the rule and I am always ready to listen to suggestions. However, the bigger problem is in the area of employment rights. Just as we have a more efficient system the awards should be enforceable and this is an area where I plan to direct more of my energies.

I agree with the Minister on his last point. I refer the Minister to a letter he wrote to the Mandate trade union dated 1 March 2012 in which he advised the union that he would consider, " vindication of employees' rights and the minimisation of the cost to employees in the context of the forthcoming reform of the State's employment rights and industrial relations structures and procedures". Will the Minister give the House a commitment that he will review those procedures and legislation in a way that will assist in the speedy resolution of industrial relations disputes in cases where the employer refuses to engage with the industrial relations institutions of the country?

Our ambition is to have a system that is efficient, with early intervention to reconcile the issues rather than as in the present system where often it becomes very legalistic and moves towards adjudication and hearings rather than seeking an early intervention. We need a system that works effectively for both sides. That is my ambition and we seek to develop mechanisms to achieve this.

Upward-only Rent Reviews

Peadar Tóibín

Question:

2Deputy Peadar Tóibín asked the Minister for Jobs; Enterprise and Innovation if he will outline the steps he has taken to end the application of upward only rent clauses by State economic development bodies such as the Industrial Development Agency. [21033/12]

Section 132 of the Land and Conveyancing Law Reform Act 2009, which provides for the abolition of upward-only rent reviews in commercial leases, became operative on 28 February 2010. The two enterprise agencies which report to my Department and have significant property portfolios, namely IDA Ireland and Shannon Development, have acted in accordance with the provisions of section 132 of the 2009 Act.

IDA Ireland has informed me that it currently has 73 occupational leases across its private finance building portfolio. Sixty-four of the leases were granted prior to 28 Feb 2010, at which time all IDA Ireland building leases would have contained upward-only rent reviews. From 28 February 2010, IDA Ireland's leases are linked to market rent and there are currently nine leases which were granted after 28 Feb 2010. Shannon Development has 48 long-term leases, 43 of which contain the upward-only rent review clause as they were entered into prior to February 2010.

Both agencies have confirmed that where businesses are in difficulties, they have, on a case by case basis, responded to and facilitated requests from companies for reduced rent and they will continue to do so.

The Government made a strong pledge in its programme for Government and even on Grafton Street that it would get rid of upward-only rents. The State spends €53 million on upward-only rent contracts. The State would save at least €8 million if it got rid of upward-only rents.

The retail sector has fallen off a cliff and 50,000 people have lost their jobs in that sector in the past four or five years and a further 30,000 jobs are in jeopardy.

The Minister states that those upward-only rents clauses were contracted prior to the 2010 date and the Government is reducing those rents on a case-by-case basis down to market levels. Will the Minister confirm there have been no further upward-only rent contracts are being used by the agencies under his remit? I have been informed that businesses continue to suffer under upward-only rent contracts on properties owned by departmental agencies.

It is my understanding that there has been no increase in rents by those agencies. However, I will seek further clarification and confirmation for the Deputy. He raises the wider issue of the Government's intention to seek to do away with upward-only rents. This matter is the responsibility of the Department of Justice and Equality but the advice of the Attorney General is that it was not possible to do away with these rents without the State or the taxpayer paying compensation to those who would be adversely affected.

The industrial agencies manage their portfolios with the knowledge of the pressures on businesses. As I outlined in my reply, they have responded in cases where clients have been in difficulties.

I understand that companies which are tenants of the agencies have had rent increases. I know of a business in Killybegs which has gone to the wall because of upward-only rents paid to a Government agency. Will the Minister guarantee that the agencies for which he is directly responsible and also all Government agencies with upward-only rent contracts with tenants will reduce rents to the current market rate?

I am not in a position to guarantee in respect of any reduction in upward-only rents. It is not possible for the Government to introduce a provision requiring landlords to reduce their rents to market levels. The legal advice is that it is not possible.

I am referring to Government agencies.

I am only responsible for agencies under my remit.

The Minister has collective responsibility.

I have no responsibility for the agencies. The Deputy has not offered details. If he wishes to send me information about the agency concerned I will raise it with the appropriate Minister. Every case can be different. I cannot issue diktats or guarantees but if the Deputy wishes to send details of a case about which he is concerned, I will bring it to the attention of the appropriate Minister.

Industrial Development

Tom Fleming

Question:

3Deputy Tom Fleming asked the Minister for Jobs; Enterprise and Innovation the actions he will take in relation to matters (details supplied); and his plans for jobs in County Kerry. [21032/12]

The achievement of balanced regional development continues to be a core objective of this Government. The enterprise agencies under the remit of my Department, IDA Ireland, Enterprise Ireland and the Kerry County Enterprise Board work continuously to encourage the establishment and the development of industry in the county. Between them the client companies of IDA Ireland, Enterprise Ireland and the Kerry County Enterprise Board employ almost 6,300 people in the county.

Following the announcement by Aetna to close its facility at Castleisland, IDA Ireland was successful in attracting JRI America Incorporated, to establish a software development operation in Tralee, which will create up to 100 highly skilled positions over the next number of years. Recruitment is already under way for a number of positions. The vacant Aetna building is the property of that company and it is the company's decision to put the building on the market. At the time of the announcement of the company closure, there were local reports that the building should be given over to the State or local development interests but no such decision was ever agreed to or proposed by the company.

As regards the Pretty Polly site, this building is not in the ownership of the IDA. The building itself was formerly a manufacturing facility which means that the opportunity to source a prospective tenant for this building may be limited in its current layout. Both the IDA and the CEO of Kerry CEB have had engagement with Killarney Town Council on the matter and both remain available to provide assistance regarding potential uses for the building.

With respect to the Minister of State, Deputy Perry, and the Minister, Deputy Bruton, the reply is a repeat of one I received from the Minister, Deputy Bruton, last November. The reply contains much rhetoric and gobbledygook and is repetitive of one I received six months ago. In the south-west region we are the poor relations in terms of employment and the attraction of viable jobs into this country. We are being totally overlooked.

This morning it was welcome to hear the announcement of a significant number of jobs in Dún Laoghaire. I would be the first person to compliment the Government on the efforts it is making. We have heard a plethora of announcements in the past 12 months. Excellent efforts are being made. The Government is striving to attract foreign direct investment and also supporting local businesses as much as possible but on a geographic level we are being treated in a reckless manner. I will be honest about it. It is not just this Government but successive Governments have allowed Kerry to become an industrial wasteland, which is currently epitomised by the vacant Pretty Polly plant in Killarney in recent years. Absolutely nothing is happening there although the premises was given to the State for free. It is also epitomised at the moment by the Aetna company premises in Castleisland which has been vacant since last December when the final lot of employees vacated the premises. The company has relocated its financial services operations to Asia. Its premises was also to be given to the State. A senior executive of the Aetna company assured me 12 months ago that it would, at the time of the announcement of the closure when I asked him whether the plant would be donated to the State in a similar way as the Pretty Polly plant. He said it would be also available to another employer. The situation was in the affirmative at that particular time.

One and a half minutes remain for the question.

I brought the issue to the attention of the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, six months ago. It is a devastating blow to see a "For Sale" sign on the building for the past two months. The premises is state-of-the-art and comprises approximately 16,000 sq. ft. It is located in a town that has been devastated in an area of County Kerry that has been totally neglected. Many of the 120 staff who are capable and skilled people are not in any way confident about gaining work in the near future. Some of them have left this country. I urge the Minister to intervene at this late stage because I got positive statements last November about the IDA placing suitable industry in the vacant premises. I am most disappointed with what I have heard this evening.

I raised the matter in the Joint Committee on Jobs, Social Protection and Education with Mr. Barry O'Leary the chief executive of the IDA. I am most disappointed because he was supposed to come back to me with a report on the matter but he never did.

On the Pretty Polly plant in Killarney, I compliment the mayor of Killarney, Sean Counihan, and his fellow councillors, who are like a band of IDA representatives themselves. They have to go out alone to seek suitable employment in the fine premises in Killarney. It is very sad that we are being let down by the State agencies. We have been let down by the Government. I do not wish to point the finger at any Minister but it is time to buck up and grasp the nettle and give us fair play in County Kerry.

I thank the Deputy. The time is up on that question. We move now to Question No. 4.

Before we move on I wish to say in reply that Enterprise Ireland in County Kerry is focused on the creation of new jobs. In 2011, a total of 3,602 people were employed in 124 enterprise client companies in County Kerry with 170 of those jobs created during that year. Equally, Enterprise Ireland has also provided funding of more than €2.2 million, as well as other supports for the development of incubation facilities at the Institute of Technology, Tralee. It is important that I put this on the record for Deputy Fleming. The Tom Crean business centre also provides an incubation space for Enterprise Ireland client companies in start-up phase.

The Minister of State must excuse me, the reply is on the record.

This is important. That is the normal procedure that I would reply to the question asked by the Deputy.

I know that but we are over time and I must move on. The reply is on the record.

It is important to put on record the fact that there are 12 IDA companies in Kerry employing 1,294 people. The IDA strategy for Kerry is to achieve development in globally traded business. The IDA promotes Kerry as part of an integrated region. The county has a population of 145,000. In addition, IDA Ireland is working closely with educational institutions in the region in developing the skillset. The IDA is also working with FÁS to provide guidance.

With regard to the Pretty Polly site, it is about subsidiarity and creating community, economic business opportunities. I strongly advise that the Killarney Town Council would engage with Enterprise Ireland and the IDA with a plan of action for the region on how best it can create jobs in that facility.

I thank the Minister of State.

With regard to the comment on the Aetna premises, local reports indicated that the building would be given over to the State or local development interests but no such decision was ever agreed to or proposed by the company directly to Government.

I thank the Minister of State. The response is on the record.

Yes, but the normal procedure is that-----

Yes, I know that. It is my mistake. I admit it.

An executive of the company informed me that the premises would be handed over to the Government and the local authority.

This is not an Adjournment debate.

This is a free-for-all.

We are in injury time. The Acting Chairman should allow Deputy Fleming to speak.

No effort was made to take any initiative to gain control of the premises-----

I will not allow a shoot-out.

-----but I ask today that the Department would move on it. We have nearly lost Tarbert due to bureaucracy.

A billion euro investment is nearly gone.

Deputy Fleming must please help me with my job.

Deputy Fleming is taking time from the next question.

The pharmaceutical centre of excellence is gone with the wind. Will the Minister and the Minister of State intervene today?

I will engage with Enterprise Ireland and the IDA and they will support the Deputy in every way possible.

Will they provide backup supports?

The Deputy can rest assured that they will.

We must move on to the next question and I will be strict about the time limits. I will let Deputies know when two minutes remain in the response time so the Minister can respond.

I want as much time as Deputy Fleming received.

I want twice as long.

Employment Support Services

Willie O'Dea

Question:

4Deputy Willie O’Dea asked the Minister for Jobs; Enterprise and Innovation the number of persons under 25 years of age in employment now; the number of same unemployed; the corresponding figures in respect of 2011; his proposals to tackle this; and if he will make a statement on the matter. [21036/12]

The latest quarterly national household survey published by the Central Statistics Office in March shows that in the final quarter of 2011 there were 142,500 people under the age of 25 in employment. This compares to 157,000 in that age cohort who were in employment at the end of 2010. The quarterly national household survey also shows that in the final quarter of 2011, 59,700 people under 25 years of age were unemployed compared to 63,500 at the end of 2010.

There are two major elements to the Government's response to tackling unemployment in general. These are the action plan for jobs and Pathways to Work. The goal of the action plan for jobs is to support the creation of 100,000 net new jobs in the economy by 2016, while the aim of Pathways to Work is to help ensure as many of those jobs as possible are filled by people on the live register. Under Pathways to Work, the Department of Social Protection is committed to supporting more than 85,000 beneficiaries in job placement, work experience and back to education schemes in 2012. The Department of Education and Skills will also provide more than 457,000 training and education places including provision for early school leavers.

I call Deputy O'Dea and I will let him know when two minutes remain.

That is jolly decent of you.

The question is focused on youth unemployment. I recall that when in opposition Fine Gael produced a policy document on youth unemployment. During Question Time on 19 January 2011 Deputy Bruton expressed great concern about people under the age of 25 who were unemployed and who were emigrating. I find it strange that the Government has no specific plan for youth unemployment. I understand it has a national action plan for combating unemployment with 270 proposals but I can find only a glancing reference to youth unemployment, which is the greatest focus of unemployment in the country with more than 40% unemployment among people aged between 15 to 19 and 26.5% among people aged between 19 and 24. There is no particular focus on youth unemployment, just one glancing reference.

In his response the Minister mentioned Pathways to Work. Pathways to Work makes no reference to youth unemployment. In view of the alarming numbers of people under the age of 25 who are unemployed, the drop in the number of people under the age of 25 who are at work and the significant continuing increase in emigration of which there is considerable anecdotal evidence, does the Minister intend to formulate a plan to deal specifically with the unemployment of people under the age of 25 and will it be reflected in the rolling national action plan for employment?

My direct responsibility is for enterprise policy and we support people establishing enterprise and employment regardless of age. Many of the new opportunities being made available through decisions of companies to expand mean the recruitment of young, well-educated people. The issue about which the Deputy is concerned is younger people who perhaps have a skill mismatch or who have come out of college and need work experience. It is not my area of responsibility but as the Deputy knows the Minister for Social Protection, Deputy Joan Burton, introduced the JobBridge scheme which specifically targets people who leave college and need to get work experience. I understand there has been a high take-up of it and it has almost achieved its target participation level. The Minister for Education and Skills, Deputy Ruairí Quinn, also examined the specific needs of young people who perhaps left education and went into construction or another sector. He has introduced schemes such as Springboard to target their need to switch. A number of interventions have been made. Deputy Burton's initiative is examining long-term unemployment and the risk profile of people who become unemployed. Young people with a risk profile will get support through her interventions. If the Deputies wish to get into the detail of this I advise them to table a question to the Minister for Social Protection, Deputy Joan Burton, who has at her fingertips information on the structures and approach she has adopted.

I appreciate that but I am speaking to the Minister in his capacity as a member of the relevant Cabinet committee. He mentioned the JobBridge scheme. In many cases it is being treated as a means of cheap labour by employers. I take the Minister's point that the thinking behind the JobBridge scheme, which in principle is a good scheme, is to enable people to enter employment so they can acquire some experience. Unfortunately in many cases the employer looks at it from the opposite point of view, which is as a means to acquire cheap labour, and in too many cases the people being taken on are those with experience. I suggest to the Minister that he suggests to the Cabinet subcommittee, in particular to the Minister, Deputy Burton, that there is value in considering altering the JobBridge scheme to focus on people under the age of 25 so it can genuinely help those it was originally designed to help.

Will the Minister consider the recommendation made today by the National Youth Council to commission a feasibility study on how a youth guarantee scheme along the lines of the scheme operating in the UK would work here?

We are almost out of time but perhaps the Minister can give a brief reply.

I would love to be helpful to the Deputy but these are not my areas of responsibility. I know the Minister, Deputy Burton, is conducting a review of the impact of the JobBridge scheme. I am sure the reply to a parliamentary question would reveal what percentage of participants are under and over the age of 25. My limited experience is different to that of the Deputy. I know many very good companies which are putting a lot of effort into it and creating genuine training opportunities. No new scheme will be perfect and the Minister will be open to modifying and developing it and responding to the Deputy's concerns.

We will move on to Questions Nos. 6 and 18.

What about Question No. 5?

Deputy Fleming used up Deputy Tóibín's time.

Cross-Border Projects

Peadar Tóibín

Question:

5Deputy Peadar Tóibín asked the Minister for Jobs; Enterprise and Innovation the work he has done with the Executive in Northern Ireland to share enterprise development resources including international offices between the Industrial Development Agency, Enterprise Ireland and InvestNI. [21034/12]

The development of a world-class all-island economy is of strategic importance and strongly complements our mission to accelerate the development of world-class Irish companies. There is a long history of co-operative action between North-South enterprise agencies to achieve mutual benefits. Close co-operation has been established between Invest NI and Enterprise Ireland. Since 2006 clients of both agencies can access market services, trade missions, overseas offices, trade fairs, seminars and market development programmes provided by each agency. In 2011, two Northern Ireland companies participated in two Enterprise Ireland trade events and 23 in six client knowledge forum events.

The all-island innovation voucher initiative, jointly launched by Enterprise Ireland and Invest NI, provides Irish SMEs with access to a further ten knowledge providers based in the North, and allows Northern Ireland based SMEs use Invest NI innovation vouchers to access expertise in research institutions based in the Republic of Ireland.

The Acumen programme is an all-island business development programme managed by InterTradeIreland and supported by Enterprise Ireland, Invest NI, FÁS, Údarás, and county enterprise boards and is designed to stimulate cross-Border sales and co-ordinate development among SMEs North and South to establish and build market presence in the other jurisdiction.

The IDA and Invest NI have been involved in areas of mutual interest which have centred on improvements in infrastructure, such as roads, airports and electricity and creating centres of critical mass such as in Letterkenny and Derry. The agency has participated in the north-west cross-Border gateway initiative through the British Irish Intergovernmental Conference. The focus has been on a range of various elements of Government policy and planning. I am confident there is strong co-operation between these enterprise development bodies which is contributing worthwhile cross-Border benefits.

The issue of competition for investment and jobs is nonsense. That this island would have a plethora of enterprise organisations such as Enterprise Ireland, InterTradeIreland and Invest NI does not make sense. We also have the Northern Ireland Bureau and embassies across the planet, all of which are duplicating work. While there has been some improvements in this area, we have not achieved very much since InterTradeIreland was established in 1998, which is almost 20 years ago. For example, in California, the eighth the largest economy in the world, we have seven IDA staff, five Enterprise Ireland staff and nine Invest Northern Ireland staff. Why the duplication there? In China, a massive emerging market, we have 15 IDA and Enterprise Ireland staff and three INI staff. These organisations are competing with each other to get investment to Ireland. Given the economic climate is this duplication making sense or is it time for the Government parties to step outside the ideological box in this regard and try to understand that one all Ireland investment and enterprise development agency is long overdue?

The collaboration has been successful. I will give one or two examples. InterTradeIreland is one of the six North-South implementation bodies-----

It is 20 years old.

It is 14 years old. Key InterTradeIreland initiatives include the Acumen programme which stimulates cross-Border trade by assisting individual SMEs, as does the Fusion programme. Some 19,000 SMEs have benefited from cross-Border information and 2,400 have taken part in all-island programmes. Some €600 million worth of trade and business development has been generated and 1,300 new jobs have been created. On the joint North-South agencies initiative, Enterprise Ireland, Invest Northern Ireland and InterTradeIreland have teamed up to host Bridging the Border seminars, which have been very effective. Information is also provided on agencies support as well as one-to-one meetings. The Promoting Entrepreneurship Programme has also been equally effective. I recently attended the Halo Business Angels Network which has been very successful. The North West Business and Technology Zone, NWBTZ, Initiative in Letterkenny has equally been successful. Part of IDA's contribution to the NWBTZ project involved incorporating its three separate business parks in Letterkenny into a 44 ha state-of-the-art business and technology park which matches international standards.

Invest Northern Ireland's contribution has been spread between three geographical sites. There are many events taking place under the north west partnership. Enterprise Ireland has in the North-South context focused on two areas, liaising with cross-Border bodies such as the Ireland Fund, Joint Business Council and, increasingly, Invest Northern Ireland and InterTradeIreland on specific project issues. This has been very effective, as has been the Seventh Framework Programme on funding. The Students Enterprise Award and All-Ireland Innovation Voucher schemes have been effective in terms of a sharing of resources. A huge level of funding is being provided through INTERREG and the Peace Fund, which funding has benefited companies on both sides.

If the Government's only objective was to set about creating a health service, which was efficient and ensured good services for the people of Ireland, would it slap a border in the middle of it? Would it create two Departments and two Administrations and duplicate the process? If the Government's only objective is to develop enterprise again, would the Government slap a border in the middle of it, create two Departments, two Administrations and two international office networks? It would not. I have worked for InterTrade Ireland. It was one of the projects which Sinn Féin pushed for in the Good Friday Agreement.

I am asking the Minister what this Government has done to push the issue forward. I do not want him to cite agencies created 14 years ago. I would ask that he leave his script aside and speak to this directly. This is an issue on which both of us could be on the same page. It is something that could reduce the cost to the State and increase the level of enterprise development. Will the Minister use the North-South Ministerial body - we have an open ear in terms of our party in the North of Ireland - to not alone express platitudes or to quote history on this issue but to push hard for this development?

I am not expressing platitudes. There is a huge level of co-operation, including by the IDA and Invest Northern Ireland. I attended an event in the Border counties yesterday held by the Border County Regional Authority. There is a huge level of action on the part of the enterprise boards in the North. Much has happened in the past 14 years in terms of co-operation. There is a huge level of exports from the Republic into the North. There is also an all-Ireland tourism body.

They are things for which Sinn Féin worked. What has this Government done?

We are proactively supporting Invest Northern Ireland and are doing much work through the ministerial council. I have no doubt how best we can further enhance that co-operation to grow business will be raised at the council. I have no doubt that there will be further improvements in the future. To date, there has been notable successes. Everyone involved must be complimented on the number of jobs created thus far. The level of funding provided by both jurisdictions has been effective in terms of job creation and promoting the island of Ireland as a whole economy, which is important.

There are a number of questions remaining to be dealt with. I want to be fair to all Members.

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