Vol. 878 No. 2
32. Deputy Joan Collins asked the Minister for Jobs, Enterprise and Innovation in view of 62,000 workers registered in the construction industry as self-employed, that is more than 50% of the total workforce, his views that this represents a significant level of bogus self-employment. [18369/15]
The Central Statistics Office Quarterly National Household Survey indicates that at the end of Quarter 4 2014 there were 116,700 persons engaged in construction, 43,400 of which were self employed. This equates to 37%.
Ireland’s body of employment rights legislation protects all persons legally employed in Ireland on an employer-employee basis. Where NERA receives complaints in relation to bogus self-employment or bogus sub-contracting, they are forwarded to the Revenue Commissioners and/or the Department of Social Protection (Scope Section) for investigation either solely by the recipient, or jointly with NERA. Complaints regarding the abuse of the sub-contracting or the Relevant Contracts Tax (RCT) system are solely a matter for the Revenue Commissioners.
In most cases it will be clear whether an individual is employed or self-employed. Where there is doubt in relation to the employment status of an individual the relevant Departments and Agencies will have regard to the Code of Practice for Determining Employment or Self-Employment Status of Individuals. This Code was drawn up and agreed in 2007 by the Office of the Revenue Commissioners, Department of Social and Family Affairs, Department of Enterprise, Trade and Employment, the Irish Congress of Trade Unions and the Irish Business and Employers Federation.
NERA has statutory authority to share information with both the Revenue Commissioners and the Department of Social Protection. Such information sharing takes place regularly between NERA inspectors and their counterparts in these bodies. In cases of mutual interest, joint operations and/or inspections may also be carried out. This exchange and sharing of information, together with the joint operations, is a valuable element of the inspection process and contributes to uncovering non-compliance in the areas covered by the relevant bodies.
In the course of 2014 a total of 353 joint investigations took place with the Revenue Commissioners and /or the Department of Social Protection. These inspections may involve all or a combination of the three parties and in some instances may also involve the Gardaí.
NERA provides information on employment, equality & industrial relations legislation, through the Workplace Relations Customer Service and Information Unit. It can be contacted at Lo-call:1890 80 80 90 or via its website www.workplacerelations.ie.
33. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the element of Industrial Development Agency Ireland new investment, research and development expenditure, and new jobs, related to County Donegal in 2014; and if he will make a statement on the matter. [18402/15]
Approximately 70% of all FDI investment won by IDA Ireland comes from the existing client base. IDA Ireland has a structured client engagement process aimed at assisting existing investors evolve and grow through a company transformation process. This involves many dimensions from new mandates, R&D activities, retraining and in some cases managing job reductions. Although there were no R&D grant payments to IDA Ireland client companies in County Donegal during 2014, a total of €1,889,800 in employment grants were paid to client companies in the County during the year.
IDA Ireland continues to invest in its clients in the county and in many cases these investments are not publicly announced.
The Annual Employment Survey, which tracks employment levels in companies that are clients of the Enterprise Development agencies shows that employment in IDA Ireland client companies in Donegal rose from 2,387 in 2013 to 2,612 in 2014 an increase of over 9%.
34. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will provide a list of the disability related action in the Government’s Action Plan for Jobs 2015. [18378/15]
Action Plan for Jobs (APJ) 2015 was published in January and is the fourth in the multi-annual series. In addition to explicitly setting out measures to be taken by Government over the course of a year to enhance the environment for job retention and creation, it also points to parallel Government strategies which deal with other sectors or policy areas, for example Food Harvest 2020, Harnessing Our Ocean Wealth, and the new Tourism Action Plan. The Action Plan for Jobs does not repeat all of the constituent actions which make up these other strategies, rather their inclusion signals their importance to the jobs effort, and links their implementation to the Government’s broad approach to employment creation.
In this context, disability related action in APJ 2015 is captured in action 128 of this year’s plan. Action 128 in the APJ commits Government to implement the actions agreed under the Comprehensive Employment Strategy for Persons with Disabilities, a strategy which falls under the remit of the Department for Justice and Equality.
The employment strategy is a cross-government approach that brings together actions by different Departments and state agencies in a concerted effort to address the barriers and challenges that impact on employment of people with disabilities. The aim of the strategy is to ensure that more people with disabilities can access work and that services at local level are coordinated and there is joined up access across agency boundaries to deliver more seamless supports to people with disabilities.
Under Action 128 of the APJ, the comprehensive strategy is to be finalised by the end of Q2 and I understand that a revised draft of the Comprehensive Employment Strategy was well received at the April 14th meeting of the National Disability Strategy Implementation Group, the Group responsible for its publication.
35. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation considering he is the lead Minister for the Action Plan for Jobs, the steps he will take following the latest National Competitiveness Council report Costs of Doing Business in Ireland 2015, outlining that Ireland was the third most expensive location in the euro area for consumer goods and services; and if he will make a statement on the matter. [18355/15]
I was pleased to welcome the publication of the recent National Competitiveness Council (NCC) which noted our progress in rebuilding our competitiveness but also set out the progress still to be achieved. The report by the NCC has been noted by both the Cabinet and the Cabinet Committee on Economic Recovery and Jobs. I have asked my Ministerial colleagues to consider appropriate actions, additional to those already contained in the Action Plan for Jobs, in response to the issues identified by the NCC to improve competitiveness that might be progressed through the Cabinet Committee structures and to indicate policy developments over the coming period that may have a positive or negative impact on competitiveness.
While the NCC report, prepared under the Action Plan for Jobs 2015, finds that Ireland is an expensive location in which to do business, it also finds that costs have fallen across a range of business inputs since 2009, making Ireland more competitive internationally. This is reflected in our ongoing ability to successfully compete internationally for trade and investment and in our improving performance across a range of international competitiveness benchmarking reports – we have moved from 24th to 15th in the IMD’s World Competitiveness Yearbook, for example.
In the longer term productivity performance must be the vehicle through which we must improve our competitiveness and grow the economy. Relentlessly pursuing cost competitiveness remains vital to us as a small, export oriented economy is important but we must also sustain our focus on productivity growth across all sectors of the economy.
Structural reform, as championed through the Action Plan for Jobs, is essential to deliver the necessary productivity gains and improvements in competitiveness. Such reforms are essential to improving the competitiveness of our exporting sectors, which will be at the heart of delivering on our ambition of having full employment by 2018.
In this regard, it is critical that all Government policy reflects the Council’s underlying message that policies which enhance Ireland’s international competitiveness position, reward productivity and develop productive infrastructure capacity are of foremost importance.
36. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he supports the proposal of the European Commissioner, Ms Cecilia Malmström, to the European Parliament Committee on International Trade, that the European Union should work towards the establishment of an international investment court and appellate mechanism, in place of the existing investor-state dispute settlements mechanism attached to the Transatlantic Trade and Investment Partnership. [18382/15]
The EU Commission has been working over the last few months on a number of areas by way of follow-up to its public consultation on ISDS. These are: the protection of the right to regulate; the establishment and functioning of arbitral tribunals; the relationship between domestic judicial systems and Investor to State Dispute Settlement (ISDS); and the review of ISDS decisions for legal correctness through an appellate mechanism.
Last week, the EU Commissioner for Trade, Cecilia Malmström, presented a concept paper to the EU Council of Ministers and to the EU Parliament’s International Trade Committee. The paper sets out ideas for reforming the current ISDS system, with the overall aim of creating a new modern system of investment arbitration. The ideas include strengthening governments' right to regulate, making arbitral tribunals operate more like traditional court systems with a clear code of conduct for arbitrators, and guaranteeing access to an appeals system. The idea of an eventual international investment court is a longer term prospect. The paper can be found at:
http://trade.ec.europa.eu/doclib/docs/2015/may/tradoc_153408.PDF
I welcome the comprehensive work by the EU Commission in following up on the views expressed by stakeholders, and the ideas it has set out in the concept paper, which I will be carefully considering.
37. Deputy Thomas Pringle asked the Minister for Jobs, Enterprise and Innovation the measures he will introduce to improve security for workers on zero hour contracts, low hour contracts and short-term contracts, and for part-time workers; and if he will make a statement on the matter. [18413/15]
In accordance with the Statement of Government priorities, I commissioned, last February, the University of Limerick (UL) to carry out a study into the prevalence of zero hour and low hour contracts and the impact of such contracts on employees. The appointment of UL follows a competitive tendering process. The key objectives of the study are:
- To fill the gap in knowledge that currently exists in terms of the hard data and information that is available concerning the prevalence of zero hour and low hour contracts in the Irish economy and the manner of their use.
- To assess the impact of zero hour and low hour contracts on employees.
- To enable the Minister to make any evidence-based policy recommendations to Government considered necessary on foot of the study.
The study will have a broad scope, covering both the public and private sectors, with a particular focus on the retail, hospitality, education and health sectors. The study will examine how zero and low hour contracts operate in practice and how they impact on employees. It will assess the advantages and disadvantages from the perspective of employer and employee and assess the current employment rights legislation as it applies to employees on such contracts. The study will also consider recent developments in other jurisdictions, including the UK in particular. The study may also identify how the information gap might be addressed in the future.
A wide range of stakeholders is being canvassed to contribute to the study and I expect the study to be completed in Q3. The Deputy will appreciate that I cannot anticipate the outcome of the study or the Government’s consideration of the study’s findings. However, the Deputy can rest assured that where the evidence points to some adjustment being required to the protections already in place under Irish employment law, these will be brought forward for consideration by Government.
In relation to part-time workers and short-term contracts, Irish employment rights legislation contains strong safeguards for part-time workers. The Protection of Employees (Part-Time Work) Act 2001 implemented EU Council Directive 97/81/EC into Irish law. The purpose of the Directive was to implement the Framework Agreement on part-time work concluded by the European cross-industry organisations UNICE, CEEP and the ETUC. The Act provides a wide degree of protection for part-time employees, including the general protection that a part-time employee shall not be treated in a less favourable manner in respect of his/her conditions of employment than a full time employee.
Section 13(5) of the 2001 Act contained provisions in relation to the preparation and publishing of a Code of Practice by the Labour Relations Commission in relation to the steps that could be taken by employers for the purposes of Clause 5.3 of the Framework Agreement. Clause 5.3 of the Framework Agreement provided that, as far as possible, an employer should give consideration to a request by workers to transfer from full-time work to part-time and vice-versa. The Labour Relations Commission prepared this Code of Practice, based on the provisions in Section 13 of the 2001 Act, following consultation with the social partners. It was deemed to be a Code of Practice and implemented, in 2006, by the Industrial Relations Act 1990 (Code of Practice on Access to Part-Time Working) (Declaration) Order 2006 (S.I. No. 8 of 2006). Under Section 42(4) of the Industrial Relations Act 1990, the Code is admissible in evidence in any proceedings before a Court, the Labour Court, the Labour Relations Commission, the Employment Appeals Tribunal or the Equality Tribunal.
The Protection of Employees (Fixed-Term Work) Act 2003 provides that fixed-term employees may not be treated less favourably than comparable permanent employees, unless the employer can objectively justify the different treatment. Any justification offered cannot be connected with the fact that the employee is on a fixed-term contract.
The 2003 Act also establishes a framework to prevent abuses arising from the use of successive fixed-term employment contracts. The Act provides that where an employee has been on two or more continuous fixed-term contracts, the total duration of those contracts may not exceed four years. After this, if the employer wishes to renew the employee’s contract, it must be an open-ended contract unless there are objective grounds justifying the renewal of the contract for a fixed term only.
The Unfair Dismissal Act 1977 as amended contains a provision aimed at ensuring that successive temporary contracts are not used in order to avoid that legislation. It provides that where a fixed-term or specified-purpose contract expires and the individual is re-employed within 3 months, the individual is deemed to have continuous service for the purposes of that Act.
38. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will write to the Central Statistics Office to formally request it to compile official statistics regarding zero hour and low hour contracts here. [18379/15]
In accordance with the Statement of Government priorities, I commissioned, last February, the University of Limerick (UL) to carry out a study into the prevalence of zero hour and low hour contracts and the impact of such contracts on employees. The appointment of UL follows a competitive tendering process. The key objectives of the study are:
- To fill the gap in knowledge that currently exists in terms of the hard data and information that is available concerning the prevalence of zero hour and low hour contracts in the Irish economy and the manner of their use.
- To assess the impact of zero hour and low hour contracts on employees.
- To enable the Minister to make any evidence-based policy recommendations to Government considered necessary on foot of the study.
The study will have a broad scope, covering both the public and private sectors, with a particular focus on the retail, hospitality, education and health sectors. The study will examine how zero and low hour contracts operate in practice and how they impact on employees. It will assess the advantages and disadvantages from the perspective of employer and employee and assess the current employment rights legislation as it applies to employees on such contracts. The study will also consider recent developments in other jurisdictions, including the UK in particular.
I should emphasise that, in respect of the specific matter raised by the Deputy, the terms of reference of the study allow for UL to identify how the information gap surrounding zero hour contracts and low hour contracts might be addressed in the future.
39. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation under the Action Plan for Jobs, the concrete measures that will be taken to improve the supports for self-employed persons and entrepreneurs; and if he will make a statement on the matter. [18354/15]
The 2015 Action Plan for Jobs sets out a comprehensive range of measures to support entrepreneurship, SMEs and the self-employed in the areas of education and research, business environment and supports, innovation and access to finance, networks and mentoring; and, access to markets. Increasing entrepreneurial activity is a Disruptive Reform in the Action Plan for Jobs for 2015. Our key priority is driving implementation of the actions in the National Entrepreneurship Statement, which was published in October last year and to achieve the ambitious targets set out for a 25% increase in the number of start-ups and in the scaling and sustainability of new enterprises.
The launch of the Local Enterprise Offices (LEOs) was a major reform delivered in 2014 and the clients of the LEOs increased employment by 4,012 last year to 31,326 jobs throughout the country. In 2015 the LEOs will have ambitious and robust county strategies and targets for start-ups, enterprise engagements and supports to be effective first-stop-shops for enterprise information and supports and launch an Entrepreneur Partnering Programme.
My Department through its agencies will build on the 2014 success of the awards programmes such as Ireland’s Best Young Entrepreneur with a renewed programme for 2015.
When it comes to promoting prosperity through job creation, the role of new entrepreneurs can hardly be overstated, with two-thirds of new jobs created by firms in their first five years. Enterprise Ireland works to increase the number of companies starting-up, succeeding, expanding, exporting and ultimately creating jobs in Ireland. EI’s support system for young companies includes help with business planning, mentoring and development advice, feasibility funding and finance, often in the form of equity investment, as appropriate to the founder’s ambitions and the company’s potential and stage of growth. Enterprise Ireland has set itself an ambitious target of 550 new and early start-ups supported by 2016.
Enterprise Ireland’s ten regional offices work closely with entrepreneurs, local development agencies and local representative bodies offering a wide range of supports for entrepreneurship. Building on the success achieved to date on the Competitive Feasibility Funds, EI will launch four targeted funds during the year in the West, Midlands, MidEast, and one sectoral fund.
Early stage companies continue to face difficulties in accessing the necessary funding required to develop and to enable entrepreneurs to achieve their vision for their company. Enterprise Ireland also continues to support the development of the Seed and Venture Capital and Business Angel sectors to increase the provision of early stage funding to support entrepreneurs and early stage companies. A further call for expressions of interest under the Seed and Venture Capital Scheme 2013-2018 will be issued by the end of Q2.
In many cases the lack of a first reference sale is a key barrier to accessing funding at an early stage. Early intervention through entrepreneur development programmes such as New Frontiers and others workshops and accelerator programmes helps companies accelerate their business development and to build up the skills and contacts needed to successfully start and grow. EI will support 130 new Entrepreneurs via the New Frontiers programme in 2015.
The launch of the simplified Startup Refunds for Entrepreneurs Scheme (SURE) in 2015 will provide additional finance for entrepreneurs. A range of agriculture related measures are being implemented including steps to maximise available agricultural land with measures to encourage long term leasing. We are also continuing to supporting the tourism sector with retention of 9% VAT rate. More broadly improvements in personal taxation will benefit the self-employed and entrepreneurs and support growth in demand across the economy.
40. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation if he will report on the current status of Transatlantic Trade and Investment Partnership; the time-frame the Government is working within; if an impact analysis of potential negative consequences has been developed along with examining positive outcomes; and if he will make a statement on the matter. [18301/15]
The 9th round of the TTIP negotiations took place in New York from 20 – 24 April 2015. Another round is expected in mid-July 2015. In addition, inter-sessional discussions will also be organised between formal rounds. The objective during these rounds is to make as much progress as possible in all areas of the negotiations.
During the last Round, work advanced in all three pillars of the negotiations: market access, regulatory cooperation and rules. On market access, the discussions were technical, aimed at better understanding the respective tariff offers and issues around government procurement. Regulatory issues took up a lot of the time, with a focus on both horizontal co-operation as well as the 9 specific sectors [cars, pharmaceuticals, medical devices, cosmetics, engineering, textiles, chemicals, pesticides, ICT]. The regulatory discussions are aimed at enhancing transatlantic trade by reinforcing regulatory co-operation in areas of shared interest and cutting out overlapping, unnecessary red-tape. The discussions in the area of rules included sustainable development, and energy and raw materials. SMEs were also discussed in the last Round, specifically, how SMEs might benefit from TTIP. A Report released by the EU Commission at the start of the week of the last Round, which identifies perceived obstacles to trade for SMEs, will inform the EU approach in this area.
The definitive time-frame is difficult to predict but it is expected that there will be substantial progress in these negotiations in 2015.
According to assessments made by the EU Commission, a comprehensive TTIP could over time boost EU GDP by 0.5% per annum bringing significant economic gains as a whole for the EU. This converts into 400,000 jobs across the EU. Right across the range of issues covered by TTIP, I will ensure we are best positioned to make the most from these and other trade and investment opportunities in order to maximise any potential benefits for Irish companies and citizens.
The study commissioned by my Department estimates that these benefits in Ireland will be proportionally greater than in the EU as a whole. It suggests growth in Irish exports of almost 4%, increases in investment of 1% and increase in real wages of 1.5%. It estimates somewhere between 5,000 and 10,000 additional export related jobs. It also suggests that Irish small and medium enterprises (SMEs) will be particular beneficiaries.
Ireland’s interests in the TTIP negotiations will be assisted by the indications from this study, which also includes areas of potential sensitivity. Our priorities include advancing regulatory cooperation and common rules which aim to make trade and investment easier especially for SMEs, and protecting our interests in any sensitive areas, including beef.
Ireland supports the Commission in these negotiations which aim to achieve an ambitious and comprehensive agreement contributing to growth and jobs both here and the EU. I will continue to promote our objective for a comprehensive, balanced agreement for the benefit of the long term development of our country.
41. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if the chairperson and panel of adjudicators, as provided for in the Construction Contracts Act 2013, have been appointed. [18380/15]
The Government is committed to the earliest possible implementation of the Construction Contracts Act, 2013 and, as a consequence, approved the delegation of responsibility for its implementation to my colleague the Minister of State for Business and Employment last November. I am informed that Minister Nash intends to appoint a Chairperson of the Ministerial Panel of Adjudicators, which is to be established under the Act, as soon as is practicable, having regard to procedural and contractual considerations.
The necessary work is continuing on the preparations for the full implementation of the Act, as the commencement of the Act is dependent on a number of factors set out in the legislation. These factors include the appointment of a Panel of Adjudicators by Minister Nash. The selection of the adjudicators for this Panel will be achieved through an open competitive process to be arranged by the Public Appointments Service, at the earliest opportunity.
42. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will explore the development of a cross-Border development zone with the Assembly’s Minister for Enterprise, Trade and Investment. [18376/15]
There are already a range of mechanisms in place to pursue cross-Border economic development.
My ongoing engagement with the Northern Ireland Administration through the North South Ministerial Council, both in Plenary format and through the Trade and Business Sectoral sessions, presents a very useful forum to drive cross border and all-island economic issues. I will continue to pursue relevant and appropriate initiatives through the North South Ministerial Council.
I strongly believe that it is important to continue building on what has already been achieved in the region by the relevant State bodies and by local authorities on both sides of the border. The work of the Cross Border Body, InterTrade Ireland, has been foremost in this regard, with a significant range of enterprise development initiatives and programmes in place. My Department jointly funds and provides oversight to this Body, together with the Department of Enterprise, Trade and Investment in Belfast and it represents a very effective mechanism for tackling business development on an all-island basis. In addition, there is on-going co-operation between Enterprise Ireland and its Northern Ireland counterpart agency, Invest Northern Ireland on areas of mutual interest.
A further useful mechanism has been the work of organisations such as the Irish Central Border Area Network, the North West Region Cross Border Group and East Border Region Ltd. These organisations involve local authorities on both sides of the border working together to pursue the specific needs of communities in their regions. They have the experience and local knowledge to assist with driving future development strategies of mutual interest. Indeed, the projects led by such groups, and others, under the Enterprise Development theme of the INTERREG IVA Programme (2009-2015), have made a significant impact on developing small businesses in the region. My Department co-funds the Enterprise Development strand of this INTERREG Programme, under which a total of 28 individual projects have been initiated. In addition, my Department has been involved in the planning process for the next strand of the INTERREG Programme for the period up to 2020, which has recently been formally approved by the EU, and we will continue to financially support this programme.
The concept of a specific Border Development Zone as a means of fostering economic recovery in the cross-Border region of the Republic of Ireland and Northern Ireland was the main theme of a conference organised by the Centre for Cross Border Studies (CCBS) and the International Centre for Local and Regional Development (ICLRD) in 2014. This follows the development of this concept in the CCBS-sponsored Bradley/Best economic study of 2012 and I am aware that the CCBS has undertaken further research on the topic in the intervening period also.
The concept of initiating a Border Development Zone in the Border region is an interesting proposal. However it could raise significant issues involving EU State Aid Rules and other EU provisions and it would also, of course, require detailed negotiations between both Administrations on this island. There would also, almost certainly, be significant resource issues, which would be challenging in the current financial environment. For these reasons, and while I will of course keep abreast of the ongoing research by the CCBS, I do not envisage the establishment of such a zone as being practical or realistic at this time, especially given the existing, well-developed arrangements which are in place, as set out above.
43. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation the number of Industrial Development Agency sponsored visits by potential investors to County Donegal in 2014; and if he will make a statement on the matter. [18403/15]
I am informed by IDA Ireland that there were 6 IDA Ireland sponsored site visits by potential investors to County Donegal during 2014.
IDA Ireland sponsored site visits by potential investors to specific locations in Ireland are only part of the long and complicated process involved in attracting foreign direct investment to this country. These site visits may take place at the beginning or end of the process and in some cases there are no site visits involved. Site visits, when they do occur, involve new companies visiting a location for the first time and senior executives of existing companies. For reasons of client confidentiality and commercial sensitivity, IDA Ireland does not comment publicly on the success rate of such site visits.
While these site visits contribute to investment approvals and the creation of jobs, there is not always a direct correlation between site visits made and jobs created in any given year. It is important also to acknowledge the natural time lag between a decision being made to invest and that investment coming on stream. The time lag can be between 3 and 5 years in some cases. That time is required for such activities as locating and acquiring a suitable site for the company’s operations, constructing a facility, installing machinery and the recruitment and training of suitable staff.
The level of investment coming on stream is best captured in the number of jobs created in any given year as recorded in the Annual Employment Survey which shows that employment in IDA Ireland client companies in Donegal rose from 2,387 in 2013 to 2,612 in 2014 an increase of over 9%.
44. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation his views that the consultation period for a successor to the Strategy for Science, Technology and Innovation was too short and too rushed for meaningful stakeholder engagement and consultation; and if he will consider extending it. [18338/15]
To ensure its development benefits from a whole of Government perspective, formulation of the successor to the Strategy for Science, Technology and Innovation has been tasked to an Interdepartmental Committee (IDC) on Science, Technology and Innovation, which comprises membership from relevant Government Departments and the Higher Education Authority, along with the Chief Scientific Adviser to the Government.
In October 2014, my Department contacted key stakeholders in the innovation ecosystem to outline our plans for the development of the new Strategy, setting out the range of issues which will be under consideration in its formulation and inviting them to identify key policy statements or analyses that could usefully inform the process. A consultation paper was then prepared as a scene setter which provided details of the current position in relation to the range of relevant issues including, inter alia, investment in Science, Technology and Innovation for economic and societal benefit, the development of human capital, the transfer of knowledge into jobs, delivering research excellence, and the value of international collaboration to Ireland.
The detailed consultation paper was circulated by the IDC on 13th February 2015 with the views of stakeholders sought by the closing date of 23rd March 2015. The consultation paper was also posted on the websites of IDC members. In advance of the consultation paper being issued, I met with each of the heads of the Universities and with the IoTI RD&I Group and DIT’s Head of Research, and to get their views and to invite their formal written submissions following issue of the paper.
While the deadline has not been extended, my Department has been very flexible in the approach taken with regard to the closing date for receipt of submissions. More than half of the total of 80 submissions received were accepted after the original deadline had passed, the latest having been received on 7th May – giving a total of 12 weeks since the publication of the consultation paper which in my view is more than adequate. Each of these submissions is being considered in detail by my Department and, in due course, by the Interdepartmental Committee. Following this analysis, stakeholders will also be invited to attend a consultative workshop designed to address key issues arising from the written consultation phase and the ongoing work of the Committee. This comprehensive approach to consultation will ensure that the full range of stakeholders’ views will be proactively considered in the formulation of the new Strategy.
45. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the progress on securing an alternative tenant for the Bank of America facility in Carrick-on-Shannon, County Leitrim; and if he will make a statement on the matter. [18341/15]
A series of actions are being implemented by local and national bodies to source an alternative employer and find alternative employment for those impacted by the MBNA redundancies, which unfortunately took effect on November 28th last.
An inter-agency group, led by Enterprise Ireland, has been formed and its membership includes representatives of all the relevant State players. This Group has met regularly and provided a coordinated approach to the needs of the affected staff and is ensuring that all necessary steps are put in train to pursue an alternative employer.
As part of the ongoing work Enterprise Ireland and IDA Ireland continue to fully engage with their existing client companies and, in the case of IDA Ireland, with prospective new international investors, to market the facility and especially to make them aware of the skilled pool of former staff.
There have been a small number of preliminary enquiries about the facility, both from foreign owned and Irish owned businesses but it is too early in the process to be specific about their potential.
It is noteworthy that Government has had considerable success in driving job creation in the Border Region, which includes County Leitrim. Since Q3 2012 the unemployment rate has fallen from 17.7% to 10% as of Q4 2014, and the rate in the West Region, which includes Roscommon, has shown an almost similar fall, to now stand at 10.2%. While still unacceptably high, this reduction represents very substantial progress and I am driving this improvement with the advent of the new Regional Enterprise Strategies. These will be developed following consultation with key stakeholders at regional level and on the analysis of the strengths of each region. All will include specific actions for all the enterprise development organisations and other public bodies active in each region, to promote enterprise growth and job creation. Of course specific issues and factors relevant to particular regions, such as the MBNA closure, will be fully embraced in the new Strategies.
46. Deputy Paul Murphy asked the Minister for Jobs, Enterprise and Innovation if he is in favour of trade union representatives at the Cadbury-Mondelez plant in Coolock in Dublin 5 having full access to the accounts of the company, and having independent expertise, in order that the company's cost reduction efforts can be examined fully, and alternatives can be formulated by the trade unions; and if he will make a statement on the matter. [18417/15]
I understand the dispute at the Cadbury Mondelez plant in Coolock relates to redundancies at that site and I would like to assure the Deputy that the State’s industrial relations machinery is available, if required, to assist in this dispute. I know that in similar situations in the past, the parties have facilitated access to commercially sensitive information such as company accounts. It is a matter for the parties in each dispute to decide however.
Ireland’s system of industrial relations is, essentially, voluntary in nature and responsibility for the resolution of industrial disputes between employers and workers, whether in redundancy or other collective disputes, rests with the employer, the workers and their representatives. The State provides the industrial relations dispute settlement to support parties in their efforts to resolve their differences.
Even what often appears to be the most intractable of disputes is capable of resolution where both sides engage constructively and in good faith in this voluntary process. The principle of good faith implies that both sides in a dispute make every effort to reach an agreement and endeavour, through genuine and constructive negotiations, to resolve their differences.
47. Deputy Maureen O'Sullivan asked the Minister for Jobs, Enterprise and Innovation if he is satisfied that self-employed persons are afforded the same rights as pay as you earn workers; his views on concerns expressed by self-employed persons that they are under pressure to liquidate their business in order to receive State assistance; if he will elaborate on whether local enterprise offices offer assistance to self-employed persons on the way to access assistance, without having to cease their business, and the stress that this occurs; and if he will make a statement on the matter. [18324/15]
The Government’s Spring Economic Statement clearly acknowledged that while the income tax system remains highly progressive by international standards, disincentive effects are obvious with a marginal tax rate of 51 per cent for middle-income workers, and top marginal rates of 52 per cent for PAYE workers and 55 per cent for certain self-employed persons, when Universal Social Charge (USC) and PRSI are taken into account. In Budget 2015, my colleague the Minister for Finance, Mr Michael Noonan, TD, signalled the start of a multi-year programme of income tax reform to address these issues.
In relation to access to social welfare supports for the self-employed, I have been informed by my colleague, the Minister for Social Protection, under whose remit this issue arises, that self-employed persons are liable for PRSI at the class S rate of 4% which entitles them to access long-term benefits such as State pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory) as well as guardians payment (contributory), maternity benefit and adoptive benefit. Ordinary employees who have access to the full range of social insurance benefits pay class A PRSI at the rate of 4%. In addition, their employers make a PRSI contribution of 10.75% in respect of their employees, resulting in the payment of a combined 14.75% rate per employee under full-rate PRSI class A.
Self-employed workers may access social welfare supports by establishing eligibility to assistance-based payments such as jobseeker’s allowance and disability allowance. In the case of jobseeker’s allowance they can apply for the means-tested jobseeker’s allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services.
In the report of the Advisory Group on Tax and Social Welfare on Extending Social Insurance Coverage for the self-employed, published in September 2013, it was noted that almost 9 out of every 10 self-employed people who claimed the means tested jobseeker’s allowance between 2009 and 2011 received payment. It recommends that social insurance for the self-employed should be extended on a compulsory basis and that the rate of contribution for class S should be increased by at least 1.5 percentage points. This recommendation will be further considered by the Minister for Social Protection taking into account the findings of the most recent Actuarial Review of the Social Insurance Fund and the views of industry who have concerns about rising costs.
In relation to my area of responsibility the Local Enterprise Offices (LEOs) are the first port of call in terms of advice, information, mentoring, training and, subject to eligibility criteria, grant support for anyone who wishes to start or expand a business. Where appropriate the LEOs will refer clients to other State Agencies or Government Departments for advice on supports such as the Start-up Refunds for Entrepreneurs (SURE), Microfinance Ireland, the Credit Guarantee Scheme and the Credit Review Office.
Businesses can also access the online search tool for SME business supports that was launched last year. The Supporting SMEs Online Tool is a cross-governmental initiative to help Irish start-ups and small businesses navigate the range of Government business supports for which they could be eligible. The Supporting SMEs Online Tool is available at: www.actionplanforjobs.ie
48. Deputy Jim Daly asked the Tánaiste and Minister for Social Protection the reason the Social Welfare Appeals Office would not investigate an appeal, subsequent to her Department advising a person (details supplied) to submit an appeal to it; and if she will make a statement on the matter. [18714/15]
The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 7th May 2015. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by the Deciding Officer on the grounds of appeal be sought. When these papers have been received from the Department, the case in question will be referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral appeal hearing.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
49. Deputy Tom Fleming asked the Tánaiste and Minister for Social Protection if she will expedite an appeal for a carer's allowance in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [18728/15]
The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 13th April 2015. It is a statutory requirement of the appeals process that the relevant papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought from the Department of Social Protection. These papers were received in the Social Welfare Appeals Office on 27th April 2015 and the case will be referred to an Appeals Officer who will make a summary decision on the appeal based on documentary evidence presented or, if required, hold an oral hearing.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
50. Deputy Michael Moynihan asked the Tánaiste and Minister for Social Protection if she will consider introducing a qualified child increase for persons in receipt of a widow's, widower's or surviving civil partner's (non-contributory) pension, considering the consequences of the recent changes to the one parent family payment, and the fact that those on a widow's, widower's or surviving civil partner's (contributory) pension may receive a payment for their children up to 22 years of age; if he will acknowledge that this situation is unfair on persons in receipt of the non-contributory pension; and if she will make a statement on the matter. [18730/15]
All Social welfare contributory schemes, including the Widows/Widowers or Surviving Partners contributory pension are insurance based schemes. The pension is paid to the husband or wife of a deceased person and is available to those who satisfy the necessary PRSI contribution conditions, either on their own record or on that of the deceased spouse, provided the applicant is not cohabiting. A claimant may also qualify for an increase for a qualified child as part of the conditions of this PRSI contribution based scheme.
In order to qualify, either the person claiming or their spouse or civil partner must have:
- At least 260 paid contributions paid before the relevant date (which is either the date of the bereavement or the 66th birthday of one of the spouses, depending on the basis of qualification), and
- An average of 39 paid or credited contributions in either the 3 or 5 years before the death of the spouse or civil partner or before he or she reached pension age (66), or
- A yearly average of at least 24 paid or credited contributions from the year of first entry into insurance until the year of death or reaching pension age. If this average is used then an average of 24 will entitle a person to a minimum payment, they will need an average of 48 per year to get the full pension.
For those who do not meet the qualifying condition of such a contributory payment, they may apply for a means-tested Widow’s or Widower’s (non-contributory) pension, which may be payable to those who are under 66 and who do not satisfy the social insurance conditions. This is a payment for widows, widowers or surviving civil partners who do not have dependent children, and who have not reached State pension age. If the person has qualified children, they may instead qualify for the means-tested one-parent family payment (OFP).
The Deputy may wish to note the phased one-parent family payment (OFP) scheme age change reforms were introduced in the Social Welfare and Pensions Act, 2012, to reduce long-term social welfare dependency by ending the expectation that lone parents will remain outside of the workforce indefinitely. The final phase of the one-parent family payment scheme age change reforms will be taking place on 2 July, 2015, when the maximum age limit of the youngest child at which a one-parent family payment ceases will be reduced to 7 years for all recipients. Prior to these reforms lone parents could have been on the scheme until their youngest child turned 18 years of age (or 22 years of age if they were in full time education).
However, there is an exemption to these reforms for recipients who are recently bereaved. In these circumstances the One-Parent Family Payment will be payable for two years from the date of death of the spouse/civil partner/co-habitant or until the youngest child reaches age 18, whichever occurs first. If after the two years has elapsed and the person continues to have an income support need, they will either remain on the one-parent family payment, move to the jobseeker's transitional payment or to the jobseeker's allowance (JA) depending on the age of their youngest child, in the same way as any other lone parent.
51. Deputy Michael Moynihan asked the Tánaiste and Minister for Social Protection if she will change the rules regarding back to education allowance to ensure that persons coming from Youthreach are eligible to qualify for the allowance immediately after they finish their Youthreach programme; and if she will make a statement on the matter. [18731/15]
The Back to Education Allowance (BTEA) is designed to support jobseekers to undertake second chance education. A person wishing to pursue a course of study under BTEA must satisfy a number of conditions such as age and be in receipt of a qualifying payment for a specified period of time amongst others.
Youthreach participants are eligible to apply for BTEA subject to establishing an entitlement to a qualifying social welfare payment immediately prior to the commencement of their approved course of study. In addition, time spent on the Youthreach programme is counted towards the qualifying period and is considered for BTEA purposes ‘to be out of formal education’ and thereby granting earlier access to the programme than would otherwise apply.
