Vol. 927 No. 2
6. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which her Department has identified any positive or negative fallout from developments in the context of Brexit; the plans in place to safeguard interests here; and if she will make a statement on the matter. [32993/16]
In a similar vein to the previous question, I ask the Minister the extent to which she has been in a position to liaise with the relevant personalities in Brussels and at the same time relate the information available to the investment sector here, with a view to ensuring that this nation does not lose out more than might be expected in the period ahead.
I thank Deputy Durkan for the question. The question he asked is not exactly what is on the Order Paper but I will come back to it. I will now answer the question I was asked.
My Department is actively managing our response to Brexit to take full account of any potential positive consequences, and to safeguard against any negative developments.
In this regard, I am working closely with the enterprise agencies. We are determined not to overlook whatever opportunities may emerge for Ireland on account of the referendum result. Securing new foreign direct investment for the country is one such possibility, and IDA Ireland is already working hard with this goal in mind.
In recent months, IDA Ireland has been engaging with current and prospective clients about the possibility of expanding or investing in Ireland in the wake of the referendum. Our continued membership of the EU and the eurozone makes Ireland potentially more attractive to potential investors than before the referendum.
Enterprise Ireland, EI, is working hard to minimise any negative fallout from Brexit, particularly for its 1,500 clients. EI is looking at the individual challenges faced by companies in every county in Ireland.
Enterprise Ireland is working to assist companies to extend their international reach, and to enhance their competitiveness. EI is also assisting clients to improve their processes, drive efficiencies and cost reductions, and to undertake research and development and innovation with a view to improving existing products and developing new ones.
My Department’s 2017 budget contains many measures to assist Irish business to become more competitive and cope with the impact of Brexit.
I thank the Minister for her comprehensive reply. To what extent has her Department identified the threats emanating from the Brexit vote? Has it been decided how best, and how soon, those issues can be addressed, notwithstanding events in our neighbouring jurisdiction? Also, I ask the extent to which an evaluation has been done of potential possibilities and opportunities for this country in the aftermath of Brexit.
To be honest, the biggest threat for our companies is uncertainty. We are not sure what is happening. That was very evident yesterday when I met the various Ministers in London. When there is the threat of uncertainty, businesses do not know whether they should invest and take on more staff. All of that feeds into people not investing in companies. Obviously, currency fluctuation is a huge issue for our agrifood, timber and beef sectors. That is a potentially huge threat. In terms of competitiveness, Enterprise Ireland is working to ensure that companies are competitive.
The positives for Ireland are the number of companies in the UK that are worried about the uncertainty and what will happen if there is a soft or hard Brexit. Will they opt for a trade deal such as the one Norway has or their own specialised trade deal? I do not believe they know themselves at this stage. All that uncertainty is feeding into the uncertainty with regard to the currencies, investors and our entrepreneurs because they do not know what decision to make.
I ask the Minister the extent to which our European colleagues have been apprised and are conscious of the urgency to ensure consistency and that the interests of member states, including Ireland, are to the forefront in any discussions likely to take place in the run-up to Brexit.
For my part, I have met the Commissioners, Ms Biekowska and Dr. Malmström, in Brussels. I have told them about the unique position that Ireland has and the unique relationship that Ireland has with Britain. I believe that they understood that relationship.
Obviously, everything now has to be worked out. We are awaiting the UK to invoke Article 50. Then it will have to negotiate with the EU and see what kind of trade deals it wants. We will continue to work hard with my Commissioner colleagues. I have also invited them to Ireland and I am hoping they will be able to visit.
7. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation her plans to protect Irish industry from Brexit; the details of those plans across all sectors; and if she will make a statement on the matter. [33032/16]
Will the Minister tell us her plans to protect Irish industry from Brexit? Obviously, that is her job, but she might outline how she will do so sector by sector. I listened to all the questions on Brexit here earlier on. The Minister keeps repeating there is €52 million and €3 million in place, but how will she break down the supports and ensure that the different sectors are being protected? Will the Minister outline to us as much as she can how these sectors are being protected individually?
First, it is Enterprise Ireland that will be working sector by sector, and it has been doing that.
Has the Minister a reply?
It has contacted each of its 1,400 clients. That is what is needed, a bespoke response to the different clients. Enterprise Ireland has outlined its five pillars of support, namely, information and guidance, market diversification support, international sector clustering strategy, UK market support, and competitiveness and market development supports. There is significant potential to diversify and we will be working our way through that.
Obviously, Enterprise Ireland has been working with many of these companies for many years and it knows the strengths and weaknesses of the companies. As I stated already, the companies have different requirements and we will be trying to respond to that.
It would be foolish of me and the Department to announce something when we do not know what the companies want. We do not know their needs exactly. That is being worked on. We will probably have that response in a fortnight. The sectoral bodies, the Small Firms Association, IBEC and ISME, have all bought into this and they know that this needs to be done in order that we can give a proper targeted response.
I am surprised the Minister is saying that it is EI's responsibility and not her own. It is really the Minister's responsibility. All agencies-----
It is an agency under my Ministry.
The Minister will have an opportunity.
That is known.
I might have that time back, a Leas-Cheann Comhairle. It is the Minister's responsibility. It is not Enterprise Ireland's responsibility. It is nice to have another five-point plan coming from Fine Gael under the five pillars.
I agree with the Minister on not announcing it too early and ensuring it is correct. I merely want to ensure the Minister is not making it up as she goes along in terms of what is happening here. It is broken down by sector. We need to ensure that across all of these sectors, whether it is market volatility, access to market, supply chain management, changes in business model potential, taxation issues or workforce mobility, all of these issues and many others are covered and being planned for thoroughly by the Department and all of agencies that work with the Minister.
I work closely with Enterprise Ireland. I probably talk to the people there once every two days. We have meetings every fortnight at which Enterprise Ireland gives the Department's officials the exact details on the ground with the companies. It is not hearsay and it is not someone talking in the pub.
From a strategic perspective, Enterprise Ireland has a two-pronged approach, that is, to assist companies to maintain and grow UK exports but also to extend their international reach, reorienting towards North America, including Canada, Asia and the Middle East. EI is particularly working with companies which are most exposed in the UK in areas such as engineering, food, construction and timber. It has contacted the 1,400 client companies. It certainly is not making it up as it goes along. Enterprise Ireland is also supporting companies to enhance their competitiveness to protect and grow Irish exports and jobs.
According to the Minister, we will know a lot in two weeks. I look forward to that.
The Minister stated that Enterprise Ireland does not make it up as it goes along. I know that. I worked fairly closely with it for many years. The Minister stated it has a two-pronged approach but only three minutes ago she stated it has five pillars. It is good to have all these statements, but what is needed is practical analysis across all of the sectors. Depending on how Brexit will be triggered in Britain, particularly after today's judgment, we need to be able to plan for all eventualities, both across sectors and across a range of issues, which I only hinted at earlier. We need to have confidence that there is a plan in place. The Minister says that we will know about it in two weeks. I and, I am sure, all other spokespersons look forward to this.
Has the Minister plans to meet Mr. Michel Barnier? I note the Taoiseach has. How quickly will the Minister be able to meet him and how does she foresee the role of the Irish appointee to the Brussels group that will oversee Brexit?
Enterprise Ireland has 1,400 client companies and it has contacted them. They have had face-to-face meetings. It is certainly not making it up. It is aware of what exactly is needed.
I will answer questions that I think need to be answered. It is important that the companies are lean, competitive, up to date and able to respond to the challenges and the competitiveness issues, such as oil prices and exchange rates. All of that happens, but then there are many factors within the control of the management team. That is what Enterprise Ireland is doing.
Enterprise Ireland is under my auspices, under my Ministry. We will ensure that happens. When we get this targeted response of companies, we will look at that and we will plan and see what we need to do. Certainly, I hope we will have a good, targeted response from the companies.
I asked two specific questions which have not been answered. The Minister was merely waffling. I asked about Brexit.
Deputy Kelly may have other opportunities.
I will answer that. I have not made arrangements but we will be doing so.
No, Minister. I am here to implement Standing Orders. We have to move on to Question No. 8 in the name of Deputy Quinlivan.
8. Deputy Maurice Quinlivan asked the Minister for Jobs, Enterprise and Innovation if, considering the fact that the Comprehensive Economic and Trade Agreement, CETA, is ranked as a mixed agreement, Dáil Éireann will have an opportunity to debate and vote on the issue; when this will happen; and if she will make a statement on the matter. [32940/16]
This question will not come as a surprise to the Minister as I have asked it of her on a number of occasions. It is about the Comprehensive Economic and Trade Agreement, CETA, between the EU and Canada. Will the Minister confirm when the Dáil will have an opportunity to debate this and when we can vote on the issue?
Given the position taken by Ireland and other member states, the European Commission amended its position and has submitted CETA to the Council for decision as a mixed agreement. This means that it will require both EU and individual member states' ratification. However, following a decision by the Council with the consent of the Parliament, it will be possible to provisionally apply CETA.
Provisional application is a standard process in free trade agreements which provides for the coming into effect of those areas over which the EU has competence. Provisional application will not apply to those areas over which member states have competence. Furthermore, provisions in CETA relating to investment protection and investment dispute resolution will be excluded from provisional application. Accordingly, the Government supported provisional application as we are keen to see Irish firms enjoy tariff-free benefits and new business opportunities as soon as possible.
The issue of growing exports in other markets such as Canada is made even more important by the result of the UK referendum on its membership of the EU.
The full entering into force of CETA will be subject to the conclusion by the EU, through a Council decision with the consent of the European Parliament, and by all member states through the relevant national ratification procedures. This means that there will be a debate and vote on CETA in the Dáil in order to ratify the agreement.
I asked this question a number of times and the Minister has not given me an answer. When can we have a debate on this agreement? I note she said this House will have a vote on it but in the meantime we could have a debate on it. I request that she arranges that. She might indicate specifically when the House will get an opportunity to debate this issue. As elected representatives, we are entitled to debate this issue. That is why we are asking the Government not to sign up to this agreement until we have had discussion on it and a full vote on it in the House. I believe, as do thousands of Irish people - millions of people have signed a petition opposing CETA as they have concerns about it and the Seanad is also opposed to it - that this is a bad deal for Irish workers, consumers and farmers. It is a bad deal for democracy. It undermines the Irish judicial system and the Government should strongly oppose it. The least that should happen is that we should have a full debate on it in this House and a vote on it when it comes back from the Commission. The Minister might indicate a date when we will have a debate on it.
CETA will create sizeable new market access opportunities. We have spent the last hour talking about Brexit. It will present opportunities for our farmers. Meat Industry Ireland has written to me in support of CETA. Ireland has strong protections for our beef industry. It is important we make sure that Irish companies can avail of the Canadian market in the context of CETA. The Taoiseach indicated in the House yesterday that a debate on CETA will take place. I want to see the benefits of this agreement come into being so that we can have a fully informed debate based on real facts and evidence. We have an EU agreement with South Korea which has led to a 25% increase in Irish exports there. That is real evidence that trade agreements work for Irish exporters and Irish jobs.
I just want to know when we will debate this issue. We have been raising this issue and the House needs to debate it. I have spoken to farm organisations and many of them have huge concerns about the deal. It is best that we debate it in this Chamber.
The Taoiseach indicated in the House yesterday that a debate on CETA will take place.
A debate on it must take place.
The Deputy probably needs to talk to the Chief Whip about it.
It is a mixed agreement and it needs to be debated in the Dáil.
It will be.
I am asking when it will be debated.
That concludes Question No. 8.
I want to clarify that Questions Nos. 9, 20, 27 and 28 appear on the Questions Paper in the name of Deputy Brendan Ryan but that is an error. They should appear in the name of Deputy Alan Kelly. I call Deputy Kelly to introduce Question No. 9.
9. Deputy Brendan Ryan asked the the details of all the meetings that she has held to date with her Cabinet colleagues, with her Department, with her departmental agencies and with external stakeholders to address the challenges facing businesses in the face of Brexit and specifically in view of the decline in the value of sterling. [33015/16]
I am sure the Minister is delighted with that. I hope the Minister will be specific in her response. This question relates to the meetings that have taken place on Brexit with Ministers at Cabinet sub-committee level, internally in her Department, with her departmental agencies and with other external stakeholders given that this is the most important topic she is likely to face during her tenure in this Department.
I have had a wide and extensive series of meetings since the result of the UK referendum in June. I am a member of the Cabinet sub-committee on Brexit, which has already met on a number of occasions. As regards my Department and its agencies, I have established a co-ordination group consisting of the chief executive officers of both IDA Ireland and Enterprise Ireland, and relevant enterprise, Single Market and trade officials from my Department. I am continuing to chair this group.
I have met with a wide range of representative organisations, including the Irish Business and Employers Confederation, IBEC; the Irish Congress of Trade Unions, ICTU; the Irish Small and Medium Enterprises Association, ISME; the Small Firms Association, SFA; the Irish Exporters Association, the American Chamber of Commerce Ireland, the Dublin Chamber of Commerce, Enterprise Ireland, the Regional Action Plan Implementation Groups, the IDA and Enterprise Ireland client companies as well as the Irish Farmers Association.
In September, I travelled to Brussels and met with Elbieta Biekowska, Commissioner for the Internal Market, Industry, Entrepreneurship and SMEs, and with Cecilia Malmström, Commissioner for Trade, and also with Vicky Ford MEP, chair of the Internal Market Committee of the European Parliament.
Yesterday, I was in London and met with Secretary of State for International Trade, Liam Fox, and the Secretary of State for Business, Energy and Industrial Strategy, Greg Clark. In addition, I met the UK Trade Minister, Lord Price, earlier this week during his visit to Dublin. I have also met with my Northern Ireland counterpart, Minister Simon Hamilton, and I look forward to ongoing engagement with him, including through the North-South Ministerial Council.
In all of these meetings and fora, I have been very conscious of the need to respond in the most appropriate manner to the challenges presented by the movements in the sterling exchange rate.
The Minister in her next reply might tell us how many meetings of the Cabinet Sub-Commitee on Brexit have taken place. How many times has the Brexit co-ordination group met in her Department?
Can the Deputy repeat that?
Furthermore, the Minister said earlier that she hopes to met Mr. Barnier. Has she written to him? I asked her an earlier question, which she refused to answer, regarding what she sees as the role of the Irish appointee to the Brexit group in Brussels? At the end of the day it is the Brussels group that will decide the fate of our situation with Britain on Brexit, not Ireland. Therefore, what is the role of that appointee? Has she sought to meet with Sabine Weyand and what role does the Minister foresee her having in this respect? I would appreciate if the Minister could outline specific answers to those questions.
I ask that one of the questions be repeated as I did not hear the Deputy.
It was about the formation group.
I will repeat the questions.
Just that one relating to the formation group.
It was the second one.
I asked about the Minister's contact with Mr. Barnier, Sabine Weyand, the role of the Irish appointee to the Brexit group in Brussels, the number of meetings of the Cabinet sub-committee that have taken place and the number of times the group within her Department has met.
Details of my availability and the meetings I have had have been put up on the web, so the Deputy can check the meetings that I have had. As I said, in our Department we have a business Brexit response, we have a co-ordination group and a departmental Brexit group. I do not have the details, the specific numbers, in respect of the Deputy's questions but I would be more than happy to write to him and answer the questions he has asked.
I find this extraordinary. I sat where the Minister is sitting now on many occasions during the past five years and for her not have the details of how many times the Cabinet Sub-committee on Brexit has met is incredible. She does not need notes to know whether it met once, twice, three, four, five, six or seven times. I do not foresee it met on any more occasions than that. Similarly, surely she knows the number of times the co-ordination group in her Department has met. She still has not answered the question on Mr. Barnier and, in particular, she has not answered the question on the Irish appointee to the group in Brussels or the question on the role Sabine Weyand will have. The Minister might outline to the House answers to those questions and with a view to giving confidence to Members of the House that she knows the number of meetings that took place and the roles of the three individuals I mentioned.
I thank the Deputy. As I said, I will write to the Deputy to make sure he gets the exact number-----
That is not good enough. I want the answer now.
----of meetings. With regard to Cabinet Sub-committee meetings on Brexit, I do not have the figure before me but I sit on a number of Cabinet committees, including the Sub-committee on the Economy, Trade and Jobs, the Sub-committee on Infrastructure, Environment and Climate Action and the Sub-committee on European Affairs.
It is a waste of time asking questions.
I will give the Deputy-----
There are no answers coming.
I will-----
The Minister without interruption.
The Minister has an obligation to answer the question.
The Minister without interruption.
I have said I will write and give the Deputy the exact number and I will copy a letter-----
We might as well not have questions at all; the Minister could write all the time.
I cannot be responsible for the Minister's answers.
I will copy an answer to the Ceann Comhairle and any other Members who would like the answers to the question. I do not have it here but the co-ordination group within our Department, which includes IDA and Enterprise Ireland, meets regularly on a fortnightly basis.
10. Deputy Maurice Quinlivan asked the Minister for Jobs, Enterprise and Innovation the measures she will take to address the over-concentration of women in precarious work and in receipt of low pay; and if she will make a statement on the matter. [32942/16]
What specific measures will the Minister take to deal with the over-concentration of women in precarious work and the fact that many of them are in receipt of low pay?
Women’s participation in the labour force has been on a long-term upward trend in Ireland. For example, the participation rate for women in the workforce rose from 49% in 2003 to 53.6% in quarter two of 2016. The Deputy will be aware the Low Pay Commission submitted its second report on the national minimum wage in July 2016. In its report, the commission noted that between 63% and 74% of those workers earning the minimum wage are women.
It is the view of the commission that a national minimum wage provides the best model to establish a pay floor below which no one should be expected to work. A pay floor protects those workers who are vulnerable and prone to being exploited. This includes women.
The preponderance of women on the national minimum wage was also highlighted in the commission’s 2015 report. In order to obtain a better understanding of the composition and profile of this group and the underlying causality, the Low Pay Commission was asked, as part of its 2016 work programme, to examine this issue and report its views on the underlying reasons for this position and to make any recommendations it considered appropriate. The commission submitted its report to me last Tuesday and I am currently considering its contents.
On Thursday of last week, I signed an employment regulation order providing for higher rates of pay for approximately 30,000 workers in the contract cleaning sector, the majority of whom are women.
If the Deputy has any supplementary questions, I will answer them.
The signing of the order last week is very welcome. I am aware of the two reports from the Low Pay Commission but my question was addressed to the Minister or Minister of State. The commission is an advisory body so the Minister is not bound by the recommendations in the report. What measures will the Minister of State take to address the issues I raised?
The Low Pay Commission is an independent body set up by the Government. The Government asked it to look at why there are so many women on the minimum wage. That report came into me last week. I will go through it briefly with the Deputy. I do not have much time but the report will be made available to the Deputy very early next week. The report highlighted the predominant issues that affect the risk of being on the minimum wage. They appear to depend on the sector in which one works and whether one works part time or full time. It is important to bear that in mind. The sector one works in and whether one is part time or full time affect the risk. It has to be noted that there are close to twice as many women as men on the national minimum wage. Between a third and a half of this imbalance is a result of caring responsibilities, the hours they work and the sectors in which they are employed. The CSO figures are very useful to us in dealing with the situation, which we will deal with. With regard to part-time work, 24% of females indicated they were on the minimum wage for the simple reason they were caring for children and adults.
The Minister of State has exceeded his time.
A further 28% of them said it was for personal or family reasons. In the budget, we have looked at the whole area of looking after children.
It is Deputy Quinlivan's final question. We cannot exceed the time.
I thank the Minister of State for his answer and I look forward to getting the report next week or the week after. My main concern is that the Low Pay Commission is an advisory body and it is the Minister who has to take action to deal with the two issues. That is what I would like the Minister of State to come back to me on.
The Low Pay Commission is a very serious body which puts a lot of effort into the work it does, particularly on the minimum wage. It has regular meetings and is made up of nine people who are experts in their area. They represent businesses, workers and academics and they take their work seriously. I met Dr. de Buitléir last Tuesday and we went through the report which I am considering at the moment. In the report there is no explanation as to why so many women earn the minimum wage. Women are more likely to work part time than men. In some cases, it is partly by choice because it suits them to have flexible opportunities. I ask the Deputy to study the report. I have no problem consulting with him and talking to him about it. If he has some recommendations, we will take them on board. The Low Pay Commission has worked really hard on this report. It is not complete but it is the best it can do in the circumstances.
Question No. 11 is in the name of Deputy McConalogue, who is not present, so we will move to Question No. 12 in the name of Deputy Maurice Quinlivan.
12. Deputy Maurice Quinlivan asked the Minister for Jobs, Enterprise and Innovation her plans to provide additional funding to InterTrade Ireland to deal with the fall out from Brexit; and if she will make a statement on the matter. [32941/16]
I thank the Minister. I mentioned this earlier when-----
This is Question No. 12.
I mentioned this earlier when we were talking about Brexit. How will InterTrade Ireland deal with the fallout from Brexit? Does the Minister have any plans to give InterTrade Ireland additional funding?
Funding of InterTrade Ireland is provided on a 2:1 basis by my Department and its counterpart in Northern Ireland, the Department for the Economy. Discussions between both Departments to determine a budget for the body for 2017 have not yet been concluded. I am very much aware of the difficulties that Brexit may pose for the companies that InterTrade Ireland assists, particularly SMEs. That is why I am keen to ensure it will have sufficient funding in 2017 to manage its operations, including assisting client companies to plan and prepare for the implications arising from the UK's withdrawal from the EU.
I am hopeful we will be able to increase budgetary support for InterTrade Ireland through my Department's Vote allocation for 2017. I cannot be specific about the amount of potential additional funding at this stage. The 2017 allocation to InterTrade Ireland from my Department will be finalised through the 2017 Revised Estimates Volume process in conjunction with the Department of Public Expenditure and Reform. This is expected to be concluded by the end of this month.
I emphasise that I fully appreciate the important role that InterTrade Ireland will play in helping businesses deal with Brexit. Supporting its work will remain a priority of mine in the time ahead.
I welcome the Minister's comments that she recognises how important InterTrade Ireland is and that she will support it. I request that she specifically asks for additional funding for InterTrade Ireland before the Revised Estimates are finalised at the end of the month. It is a very important group. Enterprise Ireland and the IDA got additional funding in the budget but InterTrade Ireland did not so I request we make sure it gets additional resources.
Protecting cross-Border trade from the potential impacts of Brexit is important. It is really hard to predict at this stage. I am hopeful I will have more money and that is what we are pushing for in the budget. It is clear that the cross-Border market on the island is particularly important for SMEs. It has a really important role to play in this area. We recognise it on this side of the Border and we will be funding it. We will know that at the end of the month.
I thank the Minister. I welcome her comments which are very positive. I hope she will secure extra funding for InterTradeIreland.
13. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation if she has read the recent study by Tufts University which uses the UN economic model to show that the Comprehensive Economic and Trade Agreement, CETA, will lead to job losses, a reduction in the labour income share and losses in GDP; her views in this regard; and if she will make a statement on the matter. [32945/16]
Has the Minister read the study by Tufts University in Boston which provides alternative projections for the CETA's economic effects? Using the United Nations' global policy model, it shows that the CETA will lead to job losses, a reduction in the labour income share and losses in GDP. It is entitled, CETA Without Blinders: How Cutting 'Trade Costs and More' Will Cause Unemployment, Inequality and Welfare Losses, and presents evidence which shows that the CETA will have negative implications for social cohesion.
This question deals with technical economic modelling. The sustainability impact assessment, SIA, assesses the likely benefits of the Comprehensive Economic and Trade Agreement, CETA, and provides a comprehensive prediction on the impacts of the agreement. The study uses the so-called computable general equilibrium, CGE, model to simulate the impact of the CETA. These are standard tools for trade economists that create a computerised simulation of the world economy and model what happens when changes to tariffs and quotas are introduced. The CGE model used is state-of-the-art. It relies on assumptions about the economy in order to work, but these are as reasonable as possible to make it as close to the real world as possible. For example, the model is able to account for the effects of economies of scale, different skill levels of employees, imperfect competition between companies and many other features of the real world economy.
Like any model, the CGE model may have its limitations. The model gives us our best indication of the economic effects rather than precise predictions of exactly what will happen. However, alternatives to the CGE approach such as the study referred to by the Deputy have not yet proved to be sufficiently reliable for an ex ante analysis of economy-wide effects of trade policy changes.
The Minister referred to the computable general equilibrium, CGE, model. This trade model assumes full employment and neutral income distribution in all countries, which clearly is an unrealistic assumption. It excludes any of the major and already proven risks of deeper liberalisation. The Tufts University paper argues that, by their design, the studies which use the single same CGE model do not form a reliable basis for assessing the CETA and its projected impacts. Is the Minister interested in a realistic and intellectually diverse approach to the CETA? The Government appears to have shut down any alternative or dissenting opinion on the CETA. I note that there is no reference to the CETA or the Transatlantic Trade and Investment Partnership, TTIP, in the programme for Government, which is amazing, given the implications of the two trade agreements for the people of Ireland. There is huge public concern about them. People are very concerned about the implications they might have for their lifestyles.
The Tufts study uses a hypothetical model which is not suitable in analysing complex trade agreements. Quite honestly, I prefer to look at real examples and the evidence we already have available. One such example is the EU-Korea Free Trade Agreement. It has led to an increase in Irish exports of 25%, which is proof that free trade agreements work in increasing exports, jobs and growth. We look at what is happening on the ground. Meat Industry Ireland has written to me in support of the CETA. Ireland has strong protections in place for the beef industry and we are very hopeful these new markets will soon be open. Irish companies will be able to bid for Canadian public contracts, as the limitations will end under the CETA.
If we wish to examine history, rather than future projections, to assess the effects of the so-called trade agreements on employment and trade, we should look at the North Atlantic Free Trade Agreement, NAFTA, with which the CETA has much in common. I will outline some of its results. The North Atlantic Free Trade Agreement led to a staggering US trade deficit of $181 billion with NAFTA partners Mexico and Canada, a net loss of 1 million US jobs, growing income inequality, the displacement of more than 1 million Mexican farmers and a doubling of the level of desperate emigration to the United States from Mexico. An estimated $360 million has been paid to corporations after investor state tribunal attacks on US domestic public interest policies. There is little doubt that Ireland agreeing to the CETA or the TTIP will lead to greater rights and privileges for large corporations and will be to the detriment of small and medium-sized businesses in Ireland. We will not be able to withstand the money these corporations can throw at problems and dispute mechanisms.
Ireland is a small, open economy. I want the benefits of the agreement to come into being, when we can have a fully informed debate based on facts and evidence. I mentioned the example of the EU agreement with South Korea. On the timing, no decision has been made on when we will have a debate here. There are a number of factors. Obviously, the Singapore case is taking place and we will take the decision into account. We hear from small and medium enterprises that the CETA is leading to the opening of markets, especially in the context of Brexit. Small and medium-sized enterprises will be able to seek business in Canada.
14. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation if she is satisfied with the current number of vacant IDA Ireland properties; and if she will make a statement on the matter. [33010/16]
Is the Minister satisfied with the number of vacant IDA properties around the country, in view of the information she supplied to me in reply to a recent parliamentary question?
I am satisfied that IDA Ireland must maintain an adequate supply of marketable serviced land and buildings. The ready availability of property in advance of demand is critical to IDA Ireland’s ability to compete for mobile foreign direct investment. That is particularly the case, given the increasingly competitive global foreign direct investment market and in the context of the result of the UK referendum on EU membership. If IDA Ireland did not have available properties to offer prospective investors, it would significantly diminish the agency’s capacity to attract and win new investments, especially in regional areas. Its regional property programme aims to ensure suitable properties are available outside Dublin by investing €150 million in the provision of buildings and sites in designated regional locations. The portfolio of properties held by IDA Ireland is dynamic and changes to meet industry needs as they emerge. The number of available properties also depends on the level of demand from investor companies. Of course, it is important to mention that the agency also helps to provide property solutions for Enterprise Ireland clients. The objective is always to ensure companies are connected with the right property in the right place in order that the business concerned can thrive and jobs can be created.
I am not sure how the Minister can say she is happy that IDA Ireland must maintain so many vacant sites. It is a staggering figure - 85 properties out of a total of 137 are vacant, or almost two of every three properties. These properties were not acquired in the recent or even the medium-term past. They have been vacant for a long period. Given that 94% of the 137 properties are located outside the Dublin area, there is a huge opportunity to address the two-tier recovery, regional imbalance which we have discussed throughout this session and earlier. Will the Minister and the Department undertake a specific task or initiative to address the issue?
The Minister mentioned she had an increase of €53 million in her capital budget. What specific plan is out there? Apart from just mentioning IDA Ireland and EI, can we have a specific plan or initiative from the Minister, her Department and those agencies to address the vacant sites? They are under-utilised and their potential to address the imbalance in regional development is not being harnessed.
I made the point that when there are available properties and sites, it gives choice to foreign direct investment companies that would be interested in locating in Ireland. At the end of last year, the total number of available sites was 85. The most recent information IDA Ireland provided to me last April was that there were 21 vacant IDA Ireland-owned properties. I can forward the details from the agency to the Deputy if he wishes.
There is a major contradiction in what the Minister is saying. She stated that having vacant sites available gave potential FDI companies a choice. However, such companies are not exercising the option of taking up these sites. This is the point I am trying to get across to the Minister. We need a specific initiative to try to target companies - FDI or indigenous - and get them into these sites. In an earlier exchange, the Minister said she hoped to visit Limerick and that she had more in the pipeline for the city, which is welcome. I ask the Minister to step outside Limerick city and come to my constituency, where there is a vacant site at Askeaton, a former Shannon Development site. Whether it is under the auspices of IDA Ireland or Shannon Commercial Properties is irrelevant. Can the Minister come and see these vacant sites? They have been available for years and nothing is happening. Something must happen and we need a specific initiative.
To clarify, there are 21 IDA Ireland properties and 85 sites. When we have choice, especially in conjunction with the regional Action Plan for Jobs, it gives IDA Ireland an opportunity to bring FDI to the areas. Clare has had 13 site visits and the mid-west and Limerick had 39, as I mentioned earlier, to the end of the third quarter. I will talk to IDA Ireland. Although I would love to see FDI in every town and village, it will not happen. I do not decide; the companies decide where they want to locate.
15. Deputy James Lawless asked the Minister for Jobs, Enterprise and Innovation following the publication of Innovation 2020, the mechanism in place to review progress and ensure targets in the strategy are being met on an annual basis; and if she will make a statement on the matter. [32997/16]
Following the publication of Innovation 2020, which set out a number of targets for research, innovation and such matters, what measures are in place to quantify, track and, if necessary, remediate progress towards those targets?
I am taking this on behalf of the Minister of State, Deputy John Halligan. He had a prearranged appointment and the questions were supposed to be taken next week.
It is not the first time he has gone missing. Will he be here on the next occasion?
A cross-governmental implementation group has been established to drive and ensure a coherent approach to the implementation of Innovation 2020. The group, chaired by my Department, consists of representatives from Government Departments, research funding agencies and the chief scientific adviser to the Government.
Innovation 2020 commits the implementation group to reporting annually to the Cabinet committee on the implementation of the strategy, including providing progress on the levels of investment required to reach our research and development investment target of 2.5% of GNP by 2020. In July of this year, a report on the progress of implementation to date was presented to the senior officials group and to the Cabinet committee on the economy, trade and jobs. The progress report was noted by Government on 19 July 2016. The progress report was published and is available at djei.ie.
A number of high-level national indicators with associated targets to 2020 have been selected to measure success in implementing the strategy. Effective and timely delivery of the range of actions in the strategy will also be key indicators of success. The delivery of key actions will also be monitored through the annual Action Plan for Jobs process. As the Minister, Deputy Mitchell O'Connor, said, we are working on it with stakeholders and the Action Plan for Jobs 2017 will be published in February or March of 2017. A mid-term review will be carried out to ensure that we are on track for delivery and that any necessary adjustments can be made in a timely manner.
I thank the Minister of State, Deputy Breen, for standing in for missing-in-action Minister of State, Deputy Halligan. We will watch that space.
My colleagues and I are not aware of the cross-party group to which the Minister of State referred. I would seek further information on it. To my knowledge, it has not met. If it has, Fianna Fáil has not been invited. This is of concern. Science and research are very important to our nation in terms of education and the economy. It is well understood that pure research drives economic and scientific advancements. A recent Financial Times editorial championed it and it needs to be prioritised by advanced economies. The Government's approach has been to drop it down the scale and focus on commercial activity and, in terms of technology readiness, prioritise those areas closest to market. This not research but product development. An article in yesterday's Irish Independent said, "the Government here is unusually weak when it comes to direct funding of innovation". We are second last in the EU bloc. We need to see what is going to be done to change this, how it will be tackled, when the mid-term review will be and when the cross-party group will meet. My colleagues and I are not aware that it has met.
The Innovation 2020 implementation group, which is chaired by the assistant secretary general of the Department, comprises representatives from other Departments, including the research funding agencies and the Government chief scientific adviser. The group has responsibility for driving and overseeing the implementation of actions and strategy. The group has met twice already in 2016 and one more meeting will be held before the end of the year. At the meetings, the group agreed a work programme for 2016 and compiled a progress report which was presented to senior officials of the group and the Cabinet sub-committee on the economy, trade and jobs. The Minister of State, Deputy Halligan, has brought the report before the Cabinet in conjunction with the Minister, Deputy Mitchell O'Connor, and this was noted in July. A draft work programme for 2017 is being put together by officials of the Department and the Department will be financed in time for the meeting of the implementation group which is to take place later in the year.
I am concerned. I am trying to be constructive and we wish to contribute constructively to this portfolio. However, the cross-party group has morphed into a cross-departmental sub-committee. I am none the wiser as to what exactly the group is and we have not been party to its deliberations. During the course of the Minister of State's answer, it seems to have changed from a cross-party group to some sort of departmental sub-committee. Either way, this matter needs to be taken seriously. There are targets in Innovation 2020. We stress that these are not ambitious enough. Be that as it may, they must be measured, monitored and actioned and resources must be allocated in respect of them. The available data suggest none of this is the case. I have spoken to people in the scientific community and researchers at home and abroad - individuals who are overseas and who may be considering returning to Ireland - and they have all informed me that the single thing they need is a multi-annual commitment. They need to know if they are to move their research hubs or bases to Ireland that they will be supported with funding on a multi-annual basis. These are fundamental, basic tenets which do not appear to be contemplated in the strategy.
The budget for 2017 saw a 5% increase, amounting to over €15 million, for the Department's innovation programme, with a capital provision of just under €323 million, which has increased from €307 million. The budget also introduced measures to support small and medium enterprises and entrepreneurs, along with the lower 10% tax for capital gains relief as well. That will encourage and reward those who are at risk in starting a business that generates growth and jobs. Savings have been identified in the Department and they have been redirected to the research and development programme.
With regard to Innovation 2020 and the implementation group, 53 actions were initiated in 2016 and 45 actions were initiated-----
Do not go into the 45 actions.
I will not go through them. There was an increase in research masters and PhD enrolments, going from 1,750 in 2015 to 2,250 in disciplines aligned to enterprise and other initiative needs as well. Much has been done but more needs to be done. With the economy on the turn, it is important that we continue to work on innovation and ensure funding is made available so the group can continue its work.
