Skip to main content
Normal View

Dáil Éireann debate -
Thursday, 24 Jan 2013

Vol. 789 No. 3

Priority Questions

Action Plan for Jobs

Dara Calleary

Question:

1. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his assessment of the impact to date of the Action Plan for Jobs; and if he will make a statement on the matter. [3563/13]

The Action Plan for Jobs is designed to deliver measures right across Government to protect existing jobs and support the creation of new ones. It is a key instrument in our objective to transform the economy from one that became overly-dependent on property, construction and debt to one focused on enterprise, innovation and exports. Because it involves a very large number of actions across different spheres, the impact of Action Plan for Jobs has to be assessed both in respect of the successful delivery of individual measures and in the broader context of its impact on enterprise and jobs.

The 2012 plan successfully delivered more than 90% of measures on time. They included many important reforms designed to enhance competitiveness, improve access to finance, support enterprise and develop employment in sectors of opportunity. In many cases, the full impact of these changes will take time to evolve. However, significant objectives have been realised, including new supports for first-time exporters and women in business, new sources of credit, reductions in PRSI and so on.

In respect of the economic impact of the plan, there are a number of encouraging indicators of strong performance in our export-oriented sector. Despite a difficult domestic and external economic environment, 2012 saw significant net job creation by Enterprise Ireland and IDA-supported companies, building on the positive results of 2011 and following successive years of significant net job losses. The value of exports of goods and services increased by just over 6% year on year in the first three quarters of 2012. The most recent quarterly national household survey figures published by the CSO for the third quarter of 2012 show there was a net increase of almost 12,000 in private sector employment, driven by the export-oriented sectors. Ireland also improved its ranking by two places in the World Economic Forum’s global competitiveness index, and by four places in the IMD's World Competitiveness Yearbook.

While these are positive signs, with growth forecast downgrades in many of our key trading partners and continuing fiscal and banking consolidation, many challenges lie ahead. However, the Government is determined to deepen the thrust of reform in the 2013 action plan for jobs, which I will bring to Government for approval shortly, prior to its publication.

I wish the Minister and his two Ministers of State every success over the next six months during the Presidency. The Department has ambitious targets and a significant work programme. On behalf of everyone, I wish them well.

I tabled a parliamentary question to every Minister earlier this month to ascertain what they had delivered under Action Plan for Jobs and, more important, how many jobs were created and their job creation targets. The only impact worth measuring in such a plan is job creation. It is a bit like the Andrex puppy of action plans. It is nice and fluffy and the replies I received had little to do with what it is about. Every Department replied with vague aspirations and achievements but none outlined job creation targets and, therefore, I had nothing against which to measure their performance. I have a sense that it has been left to the Minister co-ordinate the entire plan, even though the Taoiseach every so often wakes up and convenes a special meeting. Every Department throws in the kitchen sink in the context of aspirations. How many Departments have specific job targets? Will the Minister give an assistant secretary in the Department responsibility to ensure the implementation of the action plan and to work with the Taoiseach's Department to ensure no Minister can hide behind these vague aspirations?

Last April, the Minister forecast that the numbers at work would increase by 67,000 between 2011 and 2015, yet in the medium-term financial statement published in November, he lowered that forecast to 18,000. That is the ultimate measure of Action Plan for Jobs. Our export sector is flying and we owe a huge debt to the IDA and Enterprise Ireland which are doing a superb job, but the difficulty is in the domestic economy in which we are not experiencing any improvement. What resources is the Minister putting in to ensure Departments deliver?

I thank the Deputy for his good wishes in respect of the Presidency. It is an ambitious programme. Yesterday, the Minister of State, Deputy Sherlock, and I attended a number of committee meetings and the size of the operation is formidable.

I assure him that Action Plan for Jobs has initiated a change in the way Departments work and this can be seen throughout Departments. The Department of Justice and Equality has introduced reforms to the visa system for investors, while the Department of Health has established a health innovation hub. Irish companies were never previously allowed to test their products in real life scenarios in our hospitals. The Minister for Finance also announced an SME strategy in the Budget Statement and the Minister for Education and Skills has doubled the ICT skills output. We also have the national broadband plan. They do not have specific job targets but they are crucial in creating the transition we need to make. It is a little naive to talk about setting job creation targets for individual Departments because it does not work as simply as that.

I also assure the Deputy that an effective implementation policy is run from the Taoiseach's Department. Two Forfás officials have been assigned to support his Department in that work and, therefore, it is centrally monitored. It is my strong belief that rather than a line Department seeking to monitor other Departments, it is much more effective to have his Department overseeing this.

The Minister is in charge of the line Department for job creation and, therefore, one would assume the Department would be in a position to crack the whip. The Minister for Finance's reply to my parliamentary question about his Department's job creation targets and implementation plan was that it was a matter for the Minister for Jobs, Enterprise and Innovation. He was not overly worried about it.

I refer to an issue we discussed previously, which is the visa arrangements for employees in high technology companies. The Minister was pursuing this with the Department of Justice and Equality. Can he update the House in this regard? This might alleviate the skills shortage, which could lead to job creation.

I assure the Deputy this will be included in the 2013 programme. We have been working on reform of the work permits system. We will have legislation in the new term and we plan to make it much more accessible in order that where there are skills shortages, there will be a speedy and easy response and people will have certainty in respect of how the system works. I am confident that I will fulfil the Deputy's expectations.

I did not see the reply to the parliamentary question to the Minister for Finance but each of his budgets has progressively improved the start-up and research and development incentives in the tax code, the tax breaks for companies in the early years of operation and so on. There has been a consistent programme of reducing VAT and PRSI and, clearly, he is very much engaged in making the changes necessary to facilitate job creation. That is central to what he seeks to achieve.

Job Creation Issues

Peadar Tóibín

Question:

2. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation in view of the fact that jobs are the number one priority for the Government, if he will identify the target for job creation for this year; and the target unemployment rate and the additional resources committed to promote and retain jobs. [3566/13]

Job creation is a key priority for the Government. Action Plan for Jobs has set the objective of supporting the creation of 100,000 jobs by 2016 and making Ireland the best small country in which to do business. The 2013 action plan for jobs will set out detailed targets for important measures of economic transition and for the delivery of policy actions to support employment, enterprise, innovation and exports. It will include indicators such as job creation in agency supported enterprises, the number of high potential start-ups to be supported in 2013, the target for new foreign direct investment projects and the number of significant investments by Enterprise Ireland-assisted firms in a range of areas, which are critical to company growth and job creation.

Considerable resources are being committed to the task. Our Department's Exchequer capital allocation for 2013, including carryover of unspent moneys from 2012, amounts to €483 million gross. At a time of severe restraint in capital resources, this demonstrates the Government's commitment to enterprise development and jobs.

We have also developed innovative instruments to leverage up the impact of this capital expenditure to support job creation through our Department and its agencies. These include the provision of €175 million in Exchequer funding through the seed and venture capital scheme. This funding has a target to leverage €525 million in line with past experience. An additional Exchequer allocation of €25 million is being provided under the development capital scheme in 2013, targeted at mid-sized indigenous firms. The Government committed €50 million to the scheme in 2012 and this funding will leverage up to €225 million. The Department will also continue to roll out and monitor the €90 million microfinance fund and the €450 million credit guarantee scheme, which again leverage smaller Exchequer outlays.

Additional information not given on the floor of the House

In a similar vein, the National Pensions Reserve Fund, NPRF has developed a range of support funds for the SME sector to provide equity, credit and recovery investment. The NPRF will invest between €350 million and €500 million with a view to creating a total funding pool of at least €850 million for investment in SMEs. In addition, a new package of tax measures to support SMEs was outlined by the Minister for Finance in budget 2013. It is important, however, to recognise that the economic transition is not solely about the volume of Exchequer resources aimed at the enterprise sector. Equally important in the 2013 action plan for jobs will be the reforms which we are continuing to implement on an ongoing basis to enhance our competitiveness, improve the environment for business, support enterprises, and progress sectoral strategies. The 2013 plan will be published in the coming weeks, following approval by Government.

I asked what were the Minister's targets for job creation and the unemployment rate this year.

Despite the wonderful amount of information the Minister of State gave the House, neither of those two questions was addressed.

The Government objective was not to create 100,000 jobs by 2016. It was to create 100,000 additional jobs by 2016. At present, 335,000 people are unemployed, of whom 60% have been unemployed for 12 months or more. Since the Government came to power there have been 20,000 net job losses. The Government already faces an uphill battle if it is to create 120,000 jobs by 2016.

The IDA and Enterprise Ireland did good work last year. Sinn Féin welcomes every single job created by a Government initiative. Let us look, however, at the size of the problem. One job was created for every 34 people unemployed. The Government has solved 3% of the unemployment situation in the last year. According to the Nevin Institute, to achieve net job increases the economy must grow by 2% or more. I see no forecast of a 2% increase in growth.

Every business in the State operates its business by identifying targets for growth, turnover and profit. Why will the Government not do the same?

As the Minister has said, the Government must create a set of conditions that facilitate growth in employment rates. I am not aware of any Government having set an employment rate target. I am not aware of a precedent for that.

The Deputy referred to the National Pensions Reserve Fund, NPRF. It will be used to support the SME sector and provide equity, credit and recovery investment. The NPRF will provide up to €850 million on a commercial basis with a view to leveraging private sector funding into the Irish investment market. The Government is creating conditions such as a 25% increase in the threshold for VAT cash receipts basis accounting to improve cash flow for SMEs. It is doubling the amount of expenditure that qualifies for the research and development tax credit for SMEs so that we can support more innovation by businesses. That will have a positive impact on foreign direct investment. It is extending the foreign earnings deduction scheme to support exporting companies to develop a presence in new key markets.

The economic transition is not solely about the volume of Exchequer resources aimed at the enterprise sector. We must give equal importance to the reforms that will result from instigating a range of measures to enhance our competitiveness, improve the environment for business and create the jobs that are so necessary.

There are IDA and Enterprise Ireland targets. Because of the constraints of time here in the House I would be happy to talk to the Deputy about those targets. He is welcome to come to the Department for a briefing any time.

I do not say there have not been positive actions by the Government, but they are not proportionate to the size of the problem. The Government has created one job for every 34 people unemployed.

The Minister of State speaks about competitiveness. There are major infrastructural gaps that necessitate investment. Such investment plans would increase the growth rate above 2% and would create the necessary proportionate level of growth to decrease unemployment significantly.

On 29 September 2011, a new strategic investment fund was announced with some fanfare. The legislation to establish that fund will not be published this term and the heads of the Bill have not been agreed. Given the immediate importance of the problem, is this not a shocking length of time to wait for legislation to create an average initiative such as this?

Deputy Tóibín says we are not allocating sufficient resources. The seed and venture capital scheme has €175 million of Exchequer funding. The NPRF will spend approximately €850 million, which will be available for investment in the Irish SME sector. The IDA has an allocation of €86 million for 2013. Its targets are set out in its Horizon 2020 programme. We have allocated €120 million to Enterprise Ireland. It has clear targets to support high potential start-ups. There are innovation programmes, new technology centres and spending on technology transfer within our universities. There is €69.5 million for enterprise supports. There are Graduates for International Growth, additional Lean programmes and engagement with 300 first time exporting companies. Local enterprise offices have been established at local level.

If Deputy Tóibín wishes to critique the Government's allocation of resources on each of those specific processes I would like to give more time to hammer it out with him and see where Sinn Féin thinks we should allocate more resources and taxpayers' money in creating jobs.

Employment Rights Issues

Joe Higgins

Question:

3. Deputy Joe Higgins asked the Minister for Jobs, Enterprise and Innovation noting the circumstances around the recent occupation of HMV stores and the current occupation of the Old Darnley Lodge Hotel, Athboy County Meath, if he will support the introduction of legislation that will support jobs being maintained, including through public ownership of enterprises which close preemptorily, give workers and the State sight of the company accounts and prioritise the settlement of outstanding pay and redundancy payments due to workers in such enterprises and prevent employers injuncting workers occupying the place of work in pursuit of their rights. [3562/13]

Dara Calleary

Question:

4. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if he has any plans to change either consumer or employment legislation in the view of recent events at a company (details supplied); and if he will make a statement on the matter. [3564/13]

I propose to take Questions Nos. 3 and 4 together.

The recent closures of HMV and the Old Darnley Lodge are very regrettable. My thoughts are with those directly affected, the workers and their families and the wider local communities. Their concerns about the future of their jobs and the payment of money owed to them by their employers are of paramount importance.

There is a body of legislation to protect workers in such situations such as the Payment of Wages Act 1991, Redundancy Payments Act 1967 – 2007, Protection of Employment Act 1977 and the Minimum Notice and Terms of Employment Act.

When I became aware of the evolving situation in both companies, I asked the National Employment Rights Authority, NERA, to contact the workers involved in the sit-ins, and to mobilise NERA resources to answer workers’ queries on their employment rights.

In the case of HMV, my Department established a direct line of contact with the receiver from the outset and I was assured that communicating with staff would be a priority. I understand that, over the weekend, the HMV receiver secured the agreement of staff to discontinue their sit-in in return for his commitment to arrange for payment of wages this week. The HMV receiver has indicated he is making every effort to find a buyer for the Irish operation. I understand that the receiver has issued employees with letters notifying them that they are on temporary lay-off, pending an outcome to his efforts to secure a buyer.

In relation to the Old Darnley Lodge, my Department, through NERA, is offering employees ongoing information support in relation to the processing of any outstanding entitlements, including redundancy entitlements.

On the general legislative front, employees left without pay and redundancy payments by an insolvent employer are protected in legislation and are entitled to receive outstanding payments from the Social Insurance Fund, which is administered by the Department of Social Protection. NERA can assist workers to establish the position regarding their rights.

On the issue of preventing employers from injuncting workers occupying the place of work, it should be noted that the Industrial Relations Act 1990, subject to certain prescribed conditions being met, contains a number of provisions affording immunity to persons who organise or engage in trade disputes from civil liability. The Act also places restrictions on the right of employers to obtain injunctions in certain dispute situations. However, the Act does not place restrictions on the seeking of injunctions in cases of unlawful action, for example trespass, sit-in, occupations, damage to property, or actions resulting in or likely to result in personal injury or death. Where an injunction along the lines mentioned by the Deputy is sought, it is a matter for a court to decide, based on the circumstances of the case, whether or not such an injunction is warranted.

As regards the suggestion that pay and redundancy should be prioritised, I point out that in instances where a company is being wound up, employees, in relation to pay etcetera, are preferential creditors under the Companies Acts. Initial priority in terms of disbursement of assets belongs to super preferential creditors, that is the Revenue Commissioners on behalf of taxpayers in respect of any PRSI deductions made by the employer. The liquidator’s costs are next in priority. The employees, the Revenue Commissioners and the rating authority rank next in priority. Holders of fixed charges and mortgages are outside the liquidation process and can enforce their security in accordance with the terms of the deed of charge or mortgage.

The proposal on public ownership of enterprises which close peremptorily is not a viable option. The reality is that the economy has gone through a profound crisis as a result of policies which allowed the economy to become dependent on property, construction and debt. The economy must now make a transition to one that is sustainable, built on enterprise, innovation and exports. While the Government actively promotes policies designed to assist enterprises at risk of losing jobs, it is not viable for Government to take responsibility for running businesses which cease to be viable. In addition, there are EU rules regarding operating aid to be considered.

As far as the sale of gift vouchers is concerned, consumer protection law prohibits traders from engaging in unfair or misleading commercial practices. Aside from general advice regarding gift vouchers, the National Consumer Agency issued a public statement in the run up to Christmas urging consumers to use gift vouchers as quickly as possible. Consumers who have used payment cards to purchase vouchers from retailers who cease trading have been advised to contact their card issuer. The agency’s full advice and public statements in relation to the purchase of gift vouchers can be obtained from its website.

Additional information not given on the floor of the House

The Deputy has asked whether I plan to change consumer legislation in view of recent events. In these situations, customers holding unredeemed gift vouchers are effectively creditors of the retailer. The priority of creditors is determined in accordance with section 284 of the Companies Act 1963. Any measure which would require that unredeemed vouchers should always be honoured would mean that holders of such vouchers would rank in priority over the interests of all creditors, including the interests of employees, the taxpayers and other ordinary creditors. I do not consider that such a measure would be appropriate or justified.

On the question of giving workers and the State sight of company accounts, under the Companies Acts, limited companies are required to file annual accounts with the Companies Registration Office. That office strictly enforces this requirement and in general all filed accounts are available to the public from the CRO. In addition, mortgages and debentures over a company’s assets must be registered in the CRO, providing further information on a company’s level of indebtedness

In summary, I am satisfied that the current body of employment rights and industrial relations legislation, backed up by the information and enforcement activities of NERA and the redress available to workers through the State’s workplace relations bodies, provides robust protection for employees, even in these very difficult circumstances. I am similarly satisfied with the protection provided by consumer protection legislation, backed up by the services of the National Consumer Agency. Accordingly, I do not intend to amend the relevant legislation as suggested by the Deputies.

After the peremptory closure of HMV Ireland, with more than 300 job losses, the workers correctly occupied some stores in Limerick, Cork and Dublin, demanding their rights in terms of pay, holiday pay, redundancy and the guarantee of social welfare entitlements. The Minister put his faith in the receiver to give these workers justice. Is the Minister not aware that the receiver, Deloitte, put these workers under disgraceful pressure last weekend, blackmailing them that the pay for the entire 300 workers would be withdrawn if they did not hand over the premises to the receiver forthwith without any guarantee on redundancy payments?

Even worse, the owners of the Old Darnley Lodge Hotel, Athboy, County Meath, told 15 full-time and 30 part-time workers on 16 January that the hotel would close in one hour. The owners have since absconded without any contact with the staff at all. This is a year after similar behaviour by the employers in La Senza lingerie chain. Is it not a sorry judgment on this Government's record on workers' rights that in the Ireland of 2013, employers can treat workers in this high-handed, cavalier and disgraceful fashion?

I ask the Minister to put in place new strategies. He says it is not viable to consider public ownership for major enterprises like this but it is viable to throw hundreds of workers on to the dole. These companies should be forced to open their books so workers can understand exactly where the €15 million HMV brought in last month went and can ask why it should not go to them.

The occupation is the most effective weapon for workers facing this disgraceful action but the law the Minister just mentioned allows the employers who have closed these businesses and treated their employees disgracefully to injunct them. Surely the power should be given to workers to injunct the bosses who have gone off with their wages and entitlements?

Clearly, the best outcome in all of these situations is to find a buyer and maintain and support jobs in the business, or as many of those jobs as is possible. That must be a factor in dealing with such situations. The legislation exists to allow receivers or examiners to seek new buyers and to find a way of making a settlement with creditors in cases of examinership and to find a way for those parts of a business that can be saved to remain viable. Clearly, that is an element of that and those in charge of a company need access to the resources of the company to seek that outcome.

The Deputy suggests the State should intervene to keep these companies going but the sad truth is that 300,000 jobs have been lost across many sectors in the four years before we entered government. The chances of the State being able to intervene in so many businesses that were getting into difficulty would not be viable. We must find sectors that are sustainable in the long term. Sectors like construction became too big, as did some parts of the retail sector, and we cannot continue to support them. Under pressure of reduced resources, we must find the sectors that will give us sustainable employment. That must be our strategy.

Strong labour laws exist to protect people. The workers of other companies that closed in such circumstances, like La Senza, have been paid by the insolvency fund so the system has protected and paid workers in those situations.

This is the second January in a row where workers have been forced to occupy premises. In this case, the workers involved heard about their fate on the media, which is completely unacceptable. I am not sure about the Minister's faith in the receiver when it was the National Consumer Agency that found that HMV Ireland was a separate operation from HMV UK. We did not know that until the NCA pointed it out. There are serious gaps in this area.

The company advised investors before Christmas that there was significant doubt about its ability to continue as a going concern. Surely it is within our capacity to amend the law that where a company issues such a warning, it is not allowed to trade in vouchers or accept money for future purchases when it knows it cannot honour them. That is how we could intervene there.

There are European regulations on gift vouchers that do not seem to apply here. Why if I got a voucher issued by HMV UK can I redeem it, but I cannot redeem the voucher issued by HMV in Grafton Street? The National Consumer Agency did not do enough in December to highlight this. A large retail company issued a warning; the National Consumer Agency should have acted on that straight away and warned consumers about it. There should be provision in law that if a company issues a public warning that its retail operations are restricted, it cannot trade in vouchers.

I agree with the Deputy that there have been many cases where workers have been treated poorly by employers and I am not exonerating them in any way but the question was should we change the law in this area. In many cases, NERA ensures that employers respect the existing law. Employers often fail to do so and that is why we immediately called in NERA.

The Deputy raised the situation with vouchers. If a company issues gift vouchers it knows it cannot honour, it is a serious matter under company law. Such instances would be reported to a receiver and, in turn, would have to be investigated with potential action being taken. Companies cannot act in a misleading way when conducting business.

The wider issue of precedence for gift vouchers over other creditors in the event of a company getting into difficulty raises the issue of the order for creditors. We just spoke of the need for workers to have preference in response to their commitments to a company. Gift voucher holders fall into the category of unsecured creditors and come lower down the order. Changing the order of preference would raise considerable issues.

Does the Minister not agree his austerity policy of slashing wages and increasing taxes for workers is hitting the retail trade and is a contributory factor to the crisis in the sector? The Minister says it is not viable for State intervention to save significant numbers of jobs but in the past period, the State allowed Waterford Glass and Irish Glass Bottle to close.

These were two instances where not only could significant numbers of jobs have been saved but other strategic interests could have been accrued.

Finally, I put it to the Minister that the legislation about which he boasts is feeble in the extreme as long as workers, some of whom might have decades of service, can be told at an hour's notice or less that their jobs are gone, the company is gone, they will not get redundancy payments and they can be left chasing their wages. What will the Minister do so that in the next period this type of disgraceful behaviour towards workers by employers cannot be repeated?

On the role of the company during the Christmas period, does the Minister intend to ask the receiver to pursue the issue that the company continued to trade knowing it may not have been able to honour the purchases?

I would hotly dispute the contention that policies being pursued by the Government are undermining retail business. The truth is that the Government has made a number of interventions to improve the environment for business in the retail sector, whether it be in terms of access to credit or their cost structure. The Minister of State, Deputy Perry, is conducting an audit of the licences with a view to simplifying licensing in respect of the retail sector. There is much work to make it easier to do business and to create employment.

Of course, restructuring of businesses is what we need to encourage. For example, as part of the Companies Bill 2012 coming before the Dáil shortly, I am ensuring that examinerships can be taken in the Circuit Court, which has a regional presence, and it will be easier for companies that are in difficulty to get the protection of the courts to allow a work-out with their creditors. That is a practical way of making it easier to see companies restructured.

Clearly, the law is there to protect workers. I set out the different Acts. Workers have rights. NERA is there to help them enforce those rights. We have sophisticated and proven institutions, such as the Labour Relations Commission, to deal with disputes and to help workers and employers reach solutions in difficult situations. There is the long stop of an insolvency payment system to meet persons' obligations in respect of their rights should their jobs be lost and the employer be proven insolvent. We have a range of measures seeking to protect workers in these situations.

These are very difficult situations but we seek, as we did in this instance, to intervene to support workers in those to ensure that they-----

What will the Minister do about the Old Darnley Lodge Hotel?

In the same way, we have made the services of NERA available to the workers so that it will support workers in that situation. Obviously, the same applies in terms of recourse to the insolvency legislation to protect the workers in respect of payments if the company is insolvent. Of course, the company, in the first instance, has its responsibilities and the State will not step in unless the company is not seen to honour its responsibilities.

Enterprise Support Services Provision

Peadar Tóibín

Question:

5. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the steps he has taken to support business at risk from closure. [3567/13]

The entire focus of Action Plan for Jobs 2012 has been on measures to protect existing jobs and support the creation of new jobs. It addresses issues of competitiveness, access to finance, support of enterprise and sectoral strategies.

The enterprise support agencies of the Department, Enterprise Ireland, IDA Ireland and the county enterprise boards, are all alert to the need for business to anticipate difficulties and have developed various programmes for process improvement, innovation, mentoring and capability development to assist companies in making necessary transformations. For this reason, the enterprise development agencies, Enterprise Ireland, IDA Ireland and Shannon Development operate an early warning system which has been in place for over ten years. When triggered, this mechanism brings the full capacity of the agency concerned to bear on whatever situation has arisen within the client company.

A number of new measures of particular assistance to businesses under pressure have included the introduction of the microfinance loan fund and the credit guarantee scheme, reform of wage setting mechanisms, allowing easier access to examinership to which the Minister, Deputy Bruton, alluded, reducing employers' PRSI and the introduction of a low rate of VAT for certain sectors. We have also introduced a first-time exporters division within Enterprise Ireland, which is designed to assist companies consider developing an export market.

Additionally, under Action Plan for Jobs, my Department and small business representative organisations developed a guide, entitled Managing Out of the Crisis, which sets out warning signs to encourage small businesses to ask for help and outlines services available to help them through difficulties. This guide is available on my Department's website and those of the small business organisations. Other services of the Department, such as the Labour Relations Commission, regularly assist companies in difficulty which seek to negotiate cost reductions or changes in work practices as part of restructuring.

The 2013 action plan for jobs is currently being prepared. The 2013 plan will build on the progress made last year and will set out a number of new initiatives to support job creation. It will be published by the Minister, Deputy Bruton, in the coming weeks.

Last week, HMV and the Old Darnley Lodge in Athboy closed. I went out to the Old Darnley Lodge in Athboy and sat in with the workers while they were involved in their sit-in on Thursday and Friday last. I spoke at length to the workers in that situation. They are devastated at what has happened. Holiday pay is owed. Some staff have wages still outstanding and they are not confident about what will happen on redundancy. The management have gone to ground and, disgracefully, have not been in contact with the workers. As we speak, the staff in Athboy are still sitting in.

The Minister mentioned insolvency a while ago. I understand that the company has not paid rent in two years. It has not paid rates. It has not paid water rates. That would indicate that solvency is definitely not involved.

Athboy is a town like many others in middle Ireland that has lost a serious number of jobs over recent years with little or no Government response. It seems that if the Old Darnley Lodge was the Old Darnley bank, the Government would be in like Flynn trying to resolve the situation.

Last year, I introduced legislation that would have expedited the process of where workers find themselves now and have their full rights vindicated. It would also have ensured that one would not need to wait for liquidation to ensure that redundancy was paid and that redundancy would be paid once the company was seen to be insolvent. The Minister and the Government refused that legislation and, as a result, the workers are in that position of sitting in today. If they are sitting in today in search of their rights, how can the Minister of State say that he is protecting their rights?

That is quite a different question from the question Deputy Tóibín asked. On enterprise and business, as the Minister, Deputy Bruton, correctly stated, it is difficult to get into private enterprise. There are the protections of PRSI and the workers will get the benefits. I took a Topical Issue debate on this last week. They will get the statutory redundancy from the State. It is regrettable that they must sit in. Obviously, this company has closed and the owners are not contactable. It is difficult to legislate for that situation. We all know the difficulty in both examples to which the Deputy alluded, HMV and the hotel trader. Both are difficult areas. They are changing trades.

The Government has created substantial jobs in the area of innovation and enterprise, with the enterprise offices, the innovation hub and the pharmaceutical end. Clearly, there is the legacy of the previous Government with the amount of retailing space. Equally, the number of hotels that were developed caused serious difficulties.

It is regrettable that workers are sitting in currently but no doubt they will get their statutory entitlement from their PRSI contributions. It is regrettable that they must go that avenue.

It is obvious that HMV's product offering is meeting technological changes which is making the company less competitive, but it must be remembered that HMV is still operating in England. It is believed that upward-only rent has had an effect on its ability to trade. It is interesting that another trader, Mr. John Corcoran, was forced to close a couple of weeks ago because of upward-only rents and after a long campaign and fight. Indeed, the Labour Party held a press conference in his store which launched its campaign for resolving upward-only rents. When the party went into government, it stated the matter would need a constitutional amendment. Retail business and my party have seen legal advice stating the opposite. If the Minister states it needs a constitutional amendment, why does the Government not put a constitutional amendment to the people?

If the Minister of State believes we should eliminate upward-only rents, why does the Government not change the Constitution? We hear today there may be a need for a constitutional amendment with regard to EU patents, etc. That would represent a prime opportunity for the Government to include a constitutional amendment on upward-only rents to ensure that this extremely anti-competitive cost is reduced. It must be remembered that rents on Grafton Street are among the most expensive in the world and every other street in Ireland is a function of that. It would be a massive boost for the competitiveness of retail businesses if the Government lived up to its pre-general election promises on this.

HMV is in examinership in the UK and I understand there is a takeover bid in the UK for it. It is in receivership here, which is the difference. I hope a buyer will be found to salvage some of the business. The advice of the Attorney General on upward-only rents is quite clear.

Why not have a referendum?

The advice was given by the Attorney General.

That advice changed.

As the Deputy will know from his own constituency, rents have reduced regardless of the existence of upward-only rent reviews. As I have often said, there is 13,000 sq. ft. of retail area per head of population, compared with 1,000 sq. ft. in the UK, which is part of the legacy of the previous Government. The point is that rents-----

It is a serious question.

Allow the Minister of State to finish.

If the Government believes a constitutional referendum is necessary and that upward-only rents are wrong, why does it not hold a referendum?

That is only one aspect of the problem. The Deputy must remember that-----

Then it should just focus on the one aspect at the moment.

The Minister of State without interruption.

It is about confidence and credit in the economy.

The Minister of State should focus on the one aspect about which I am asking.

In the doom and gloom Sinn Féin is professing, it never recognises the opportunities. I visit companies throughout the country where jobs are being created.

Deputy Tóibín is coming in here with the same pessimistic outlook all the time.

It is only a question.

There is opportunity in the retail trade and some businesses are very successful at the moment - they are not all closing.

Nobody is saying that.

The Deputy needs to look at the positivity in the market as well as the opportunities and challenges in the economy. I was in the RDS-----

The question is not on the RDS.

I was at the National Crafts and Design Fair in the RDS. Did Deputy Tóibín attend the National Crafts and Design Fair this week?

The question I am asking-----

Jobs are being created at the National Crafts and Design Fair in the RDS and there are great opportunities in the retail sector.

If the Government is in favour of the abolition of upward-only rents and there needs to be a constitutional referendum-----

We need to move on to other questions.

We have debated-----

-----why would it not have a constitutional referendum?

It is not necessary.

It is not the issue that is closing down businesses at the moment.

Top
Share