Vol. 1038 No. 2
69. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment if he has made contact with the new owners of a food retailer (details supplied); if he has managed to receive any clarity for workers in terms of wages owed and the future operations of the company; and if he will make a statement on the matter. [22019/23]
This is a specific question with regard to an ongoing dispute with Iceland. The workers are owed wages and they are very nervous and anxious about the future operation of the company and specifically the future for their own earnings and jobs.
I thank Deputy O'Reilly for raising this really important issue. I was delighted to see it on the question paper because it deserves a good hearing. Deputy O'Reilly has raised it with me directly and with the Taoiseach several times in this Chamber, at committee and via correspondence. First and foremost, my thoughts, like those of the Deputy, are with those Iceland workers who are going through an unbelievably stressful period. As the Deputy will be aware, I have been meeting representatives from the grocery and retail sector this week. I can confirm that, as per the Taoiseach's request, I have made contact with Iceland, though I have yet to have a full exchange with the company. An exchange is forthcoming and I will update the Deputy in due course and keep her fully abreast of the situation. We are all concerned about the treatment of the workers here, but it is important to note this is primarily a role for the WRC.
Ireland has a robust suite of employment rights legislation in place to protect and support workers, including certain protections with regard to the payment of wages and information provided to employees in situations where a transfer of undertakings has taken place. The European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003 safeguards the rights of employees in the event of any transfer of an undertaking, business or part of a business from one employer to another employer as a result of a legal transfer or merger.
The main provisions of the regulations provide that all the rights and obligations of an employer under a contract of employment, other than pension rights, are transferred to the new employer on the transfer of the business or part thereof. The new employer must also continue to observe the terms and conditions of any collective agreements until they expire or are replaced. Both the outgoing and incoming employers are also obliged to inform the employees of the reasons for the transfer and the legal, social and economic implications. The affected employees must be given this information not later than 30 days before the transfer.
With regard to outstanding employee wages, the Payment of Wages Act 1991 establishes a range of rights for all employees in relation to payment of wages. Importantly, failure by an employer to pay all or part of the wages due to an employee is considered to be an unlawful deduction. I expect all employers to comply with their legal obligations under employment rights legislation, and the WRC is the organisation which is mandated to secure compliance.
I am familiar, as the Minister of State is, with the European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003, TUPE. We know them and the workers have had to apprise themselves of their entitlements under the regulations. Regrettably, the new employer in this instance seems blissfully unaware of its obligations under TUPE and it is for that reason we have ended up in this situation. I have put the Minister of State on notice. He may already be aware that at least one of the stores has balloted for industrial action. These are low-paid workers who do not wish to be on picket line. They will be there because they have no choice. Sometimes the gap between one's rights under the law and one's capacity to be able to achieve those can be quite wide. It is often so for workers who are not unionised, in particular, but also for workers on a low income. When the Minister of State meets the employer - I hope that is soon - I ask that he apprise the employer of not just the rights of its workers but also its obligations under the law.
I hope to meet the employer very soon and I will keep the Deputy fully apprised of any engagement. We will also deal with a range of issues with regard to other matters we have been dealing with earlier such as prices at the checkout. I am aware of the ballot and I know about a number of one-off protests that have happened at certain stores, that were not ballots or pickets, but they were protests and campaigns, including in Cork and other places. While I fully appreciate the difficult circumstances faced by some employees and I am really concerned by some of the reports, the WRC and the Labour Court are the relevant bodies. Workers can make reports to these bodies, which are independently administered. I am obliged to respect these instruments and will do so, as we all do, for very good reason. However, I appreciate the full engagement we are having on this matter and I hope we can continue to work, most importantly, to ensure that employees get what they are entitled to.
I ask that at the meeting, the Minister of State would encourage the employer in this instance to go in the direction of the WRC. The Minister of State is right, in that the WRC and the Labour Court have a very clear role here. However, they have no role if the employer does not turn up. One can take a section 20 and it will be binding on the person who takes it, but not on the person who does not turn up. That will be of very little value. We are in the middle of a cost-of-living crisis and these people are already on a low income. Not getting wages if one has a few bob in the bank might be inconvenient. Not getting wages if one does not have any money in the bank means one is going to a food bank. We do not wish to see that. These workers are hardworking. They have given good and loyal service to the company. They do not deserve to be treated like this. I hope that when the Minister of State meets with Iceland, he apprises the new owners of their obligations under the law and encourages them to engage with the WRC because, one way or another, money is owed to these workers. Regardless of whether they continue in employment, they are owed money.
The Deputy and I have spent enough time with retail workers, be it through organised labour movements, in our daily lives or indeed engaging with them practically for many different reasons. We know exactly what the strains of working in the retail sector can be and the effort that goes in. It is a tough job done by many people throughout the country. Retail is the largest private sector employment in the country. It is a good job for many people and deserves good wages, paid in a timely manner, as per legislation. I would always encourage employers to engage with the institutions of the State and the WRC. I am cognisant of my role here and my limitations in what I can ask or deliver, but I continue to remain fully engaged in the issue directly involving this company and wider issues in the sector.
Whenever I can bring the Deputy into the conversation, I will continue to do so.
I thank the Deputy for stepping into the breach. We now move back to Question No. 60.
60. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he and his office continue to attract employment-generating and trade-benefiting enterprises to this country via foreign direct investment or indigenously; and if he will make a statement on the matter. [22066/23]
This question seeks to ascertain the extent to which this country remains an attractive investment location for foreign direct investment and for the indigenous sector.
In spite of challenging headwinds for the global economy in recent years, including the far-reaching impacts of Brexit, the pandemic and the war in Ukraine, Ireland has continued to perform extremely well in both employment and trade. Reaching 2.57 million in quarter 4 of last year, we now have more people employed than ever before. Female participation in the workplace is at an all-time high and youth unemployment remains low. Irish trade continues to perform well, with goods exports totalling €16.5 billion in February 2023, an increase of 4% compared with the previous year.
The numbers of persons directly employed by IDA Ireland multinational clients in Ireland in 2022 reached 301,475, the highest FDI employment level ever, and a 9% increase on 2021. A total of 19,660 new jobs were created at Enterprise Ireland companies last year, with employment at 218,000 across all supported firms. Exports from Enterprise Ireland companies grew by 19% last year, the highest ever level of growth for Enterprise Ireland-backed companies in terms of export value.
The White Paper on enterprise published in December last year outlines the Government’s approach to enterprise policy for the period to 2030. It details how we will deliver on our ambition of a vibrant, resilient, regionally balanced and sustainable economy made up of a diversified mix of leading global companies, internationally competitive Irish enterprises and thriving local businesses. The White Paper seeks to ensure Ireland’s enterprise policy is oriented to protect Ireland’s strong economic position and respond to emerging challenges and opportunities arising from digitalisation, global economic and geopolitical developments, and the urgent need to decarbonise the economy. We are making a big step forward on that today with the announcement of the results of the first big offshore wind auction.
I thank the Minister for his detailed, satisfactory and positive reply. To what extent are the manufacturing and service sectors represented in the ongoing development of employment in this country, having particular regard to woes relating to the possible reduction in taxation from that sector at some point in the future? We know that there may be fluctuations; we do not know the extent. However, we need to know to what extent we are preparing for any movement that might not be positive in either the FDI sector or the indigenous sector. To what extent do we continually monitor matters in this regard?
Later this month I will bring the first implementation plan for the new enterprise strategy to the Government for approval. That will focus on the kinds of things the Deputy raised, which is ensuring that our enterprise strategy delivers balance across multiple sectors, including food, agrifood, construction, the tech sector, medical devices, the pharmaceutical sector and manufacturing.
The Irish economy is probably more balanced than it has ever been in terms of the spread of employment opportunities for people. That said, we have this extraordinary revenue stream coming from corporation tax receipts. A big part of that comes from the ten largest multinationals in Ireland. While that tax revenue is very welcome and we will put it to work - we will outline how we do that in the next budget - we also need to caution against spending money that may not be consistent income in the medium to long term. That is a balancing act the Government needs to get right. The overall message is that the economy and enterprise in Ireland have never been stronger or more balanced.
I agree entirely with the need for balance and the need to provide for eventualities such as an international recession or sudden financial movements on the world stage which could impact in one way or another on all these issues. To what extent has careful consideration been given to the progress in each of the areas, with particular reference to the top ten taxpayers? In the event of an unforeseen reduction in taxation from that quarter, have we put in place particular measures to replace a potential loss of revenue from there?
The Government has already acted to put a reserve fund in place. We have contributed to that for some years. The Government will ensure that we do not make the mistakes made in the past of relying on a revenue stream that turns out not to be consistent over time. We will ensure that we invest for the future but there are also many pressures on families today and we also need to respond to that. The Deputy saw that in last year's budget. Since then, we have spent almost €12 billion supporting families and businesses across Ireland through the extraordinary pressures of cost increases that we have seen over the last 18 months or so. This is about using money well and ensuring that we plan for the future. We know we will face future shocks especially when we consider the last seven years. Very few people predicted the Brexit result. Certainly, nobody predicted an international pandemic. Very few people predicted the brutality that we are seeing in the war in Ukraine right now with its impact on the economy. We need to plan for uncertainty in the future but that is exactly what we are trying to do.
62. Deputy Violet-Anne Wynne asked the Minister for Enterprise, Trade and Employment the total number of site visits hosted by IDA Ireland to counties Clare, Limerick and Galway in 2022; and if he will make a statement on the matter. [22161/23]
My question relates to IDA Ireland. I would be grateful if the Minister of State could report on the total number of site visits hosted by the IDA to counties Clare, Limerick and Galway in 2022.
Regional development is at the centre of the Government's enterprise policy, as set out in the White Paper on enterprise, and is the key focus of our Department's work on developing and implementing the regional enterprise plans. IDA Ireland is committed to the pursuit of more balanced, compact regional development which can deliver complementary efficiency and equity gains, with the overall impact of helping to advance national development. IDA Ireland is targeting that at least half of all investments - that is 400 of 800 - from 2021 to 2024 would be in regional locations and to maintain the same high level of investment as targeted in IDA Ireland’s previous strategy for each region.
IDA Ireland results for 2022 show the highest increase in FDI employment on record. Total employment in IDA Ireland client companies now stands at 301,475, the highest employment level ever and a 9% increase on 2021. Employment growth was recorded in every region of the country for the second consecutive year.
The west and mid-west region has a significant ecosystem of well-established companies across technology, life sciences, international financial services and engineering and industrial technologies. It has also won and continues to win significant investment across all of these sectors over a sustained period, which has contributed significantly to employment growth and positive economic impacts on other sectors of the economy.
There are currently 70 IDA client companies employing 6,643 people located in Clare, 68 IDA client companies employing 14,793 people located in Limerick and 99 IDA client companies employing 24,400 people located in Galway. In 2022, there were: 22 site visits to Clare, 17 in-person and five virtual; 48 site visits to Limerick, 31 in-person and 17 virtual; and 40 site visits to Galway, 31 in-person and nine virtual.
This week I spoke with Helen Downes, the CEO of Shannon Chamber. Among other things, we discussed balanced regional development. The Minister of State will be aware of the work of Shannon Chamber. I understand he will be addressing its members later this year in Dromoland, which we are all looking forward to. As he well knows, balanced regional development is a core part of the programme for Government. It has been committed to as a mission and underpinned by the national development plan, the national planning framework and Project Ireland 2040. In 2022, there were 33,000 new jobs created in FDI companies in Ireland, which is great news. When we drill down into those figures, however, we see that the strongest regional performance was in the mid east, which reported a net change of 13.6%, followed by Dublin and the midlands. In view of those figures, a question about fair and equitable balanced development has to be asked. If we have a year when some regions far outperform others, what actions will IDA Ireland resolve to take the following year to improve growth in a region such as the mid-west? Further, what support will the Minister of State lend to the same region?
I am very well aware of the work of Shannon Chamber and Helen Downes, who does excellent work. I would point out that the biggest job announcement so far this year was made by the Minister last Friday for Dexcom in Athenry, which will benefit workers and industry in Clare with 1,000 jobs over the coming years. IDA Ireland continues to target that kind of investment into the regions, into the western side of the island as well as the eastern. We will absolutely continue to work with groups such as Shannon Chamber. Later in the year we will be launching a call for applications under the new regional enterprise plan, REP. The plan for the mid-west involves a bottom-up approach. It is led and chaired by its own locally based implementation group. It deals with designs projects and plans that are directly relevant, which we are interested in funding and supporting. Through the REP, IDA Ireland, Enterprise Ireland and other investment agencies, we will continue to support the growth of the mid-west. We are due to host our next Building Better Business conference there at the end of May.
I note from IDA Ireland's additional job creation figures from 2022 that County Clare is one of just five counties where there has been net negative growth in the year. What is the Minister of State going to have IDA Ireland do about this, to pull its socks up for next year and to ensure we are not in the same position we have been in for the past three years, namely, looking at a minus figure? Following the fantastic research done by the Clare Public Participation Network, it was identified that we have had two employment black spots in Clare for over a decade now, namely, Kilrush and Kilkee, which each reported rates of unemployment of over 25% in census 2016. South-west Clare formerly had a wealth of light industry but this took a nose-dive during the downturn and never came back. With the winding down of Moneypoint, the problem has only been exacerbated. I welcome the developments at Moneypoint Green Atlantic but it is not enough to provide a sustainable future. I implore the Minister of State to sit down with IDA Ireland and have a proper conversation about Kilkee and Kilrush. I ask that he sit down with me, departmental officials and even constituency colleagues to discuss that.
In fairness to IDA Ireland, given its track record, there is no need for it to pull up its socks. It is absolutely committed to delivering on this. With regard to Clare, the Shannon Estuary task force will be finalising its report and amazing opportunities are being identified. The Minister, Deputy Coveney, has been driving that, particularly in the offshore area. As the Minister said, we are making significant announcements there, and Clare will benefit from that. I would also point to the funding available through the Department of Rural and Community Development for places such as Kilrush. If the relevant authorities in these areas have projects they want to work on with the local authority, namely, Clare County Council, money will not be an issue because funding can be made available through the regional development plan. I am more than happy to sit down with the Deputy and walk her through the opportunities that will be available. It is not a question of supports not being available. If plans are there and if they are viable and sustainable, then we will support them. There are amazing opportunities for County Clare coming out of the Shannon Estuary task force and out of our offshore strategy, which will be taking a major step forward today.
67. Deputy Jennifer Murnane O'Connor asked the Minister for Enterprise, Trade and Employment if he will provide an update on the south-east regional enterprise plan; and if he will make a statement on the matter. [22078/23]
I ask the Minister of State to provide an update on the south-east regional enterprise plan.
I thank the Deputy for her question. The south-east regional enterprise plan covers Carlow, Kilkenny, Waterford and Wexford. It was launched in Wexford on 24 March 2022. As the Deputy knows, each regional enterprise plan is overseen and monitored by a steering committee made up of regional stakeholders and chaired by a senior-level private sector businessperson.
I attended the most recent meeting of the steering committee for the south-east regional enterprise plan on 23 March. The meeting was hosted in workLAB in Waterford. Excellent progress is being made in delivering on the objectives of the plan. I can advise the Deputy further that my Department has secured up to €145 million from the European Regional Development Fund to drive implementation of the regional enterprise plans. We expect the first call of €35 million to be announced in the coming months.
The Deputy will be aware that my Department is holding nine Building Better Business conferences around the country. These conferences focus on the opportunities and challenges for businesses of digital transformation and the transition to a low-carbon economy, as well as showcasing the Government and agency supports available to small and medium enterprises. To date, two conferences, one in the north west and the other in the midlands, have taken place. The next event will be on 26 May in the mid-west. We will be hosting a similar event in the south east on Friday, 14 July.
I thank the Minister of State for that answer. In March of last year, the south-east regional enterprise plan, covering counties Carlow, Kilkenny, Waterford and Wexford, was launched. It is one of nine new enterprise plans throughout the country that will be funded, I understand, by up to €180 million. This funding is to drive the implementation of plans that will develop and implement collaborative and innovation enterprise projects in the regions and support sustainable jobs. I have written to IDA Ireland requesting an urgent meeting with it and the Carlow local authority because I am concerned that there has been an enormous lack of IDA Ireland visits to my county of Carlow. I know that site visits do not necessarily reflect potential investment as a significant percentage of new FDI comes from existing IDA Ireland client companies. However, we have a brand-new beautiful building on the Dublin road and a fabulous new IDA Ireland park. I am trying to get information about whether it has clients, who is going in or what is happening but I do not know. I am here today looking for information from the Minister of State on this brand-new IDA Ireland park.
I do not doubt the beauty of the park, given that it is in the Deputy's home county. It is a testament to the Government's investment in IDA Ireland's regional property programme that we can make those kinds of investments in bringing those IDA Ireland business parks up to the level they are now at. We are not building them for decoration; we are building them to attract investment and to ensure we have the best possible facilities. I am more than happy to engage with IDA Ireland on site visits to Carlow but given its track record and its success to date, I think we can be confident that it will market Carlow and that particular site after having made the investment and will continue to do so. I would also point out the opportunities that are available under the regional enterprise plan, as the Deputy has identified. There will be opportunities for Carlow-based projects to apply for funding under that model.
It is vital that we build a balanced regional recovery, one that is focused on future enterprise development and sustainable job creation for a long time. We have to be practical here. In the south east, there are Waterford, Kilkenny and Carlow. Ours is the smallest county. While we are now a university county and town - it is great to have that and it is such an achievement and delivery from the Government - I always feel that because we are the smallest county in the region, Carlow is forgotten. Great work is being done but we are always compared to the bigger counties or cities in the south east. I have concerns. I ask the Minister of State to meet with me and IDA Ireland, and I know he will. The plan is for this to be a unique responsive opportunity for the needs of the region with a focus on regional collaboration but my focus is Carlow and Kilkenny. Carlow has such opportunities to give here.
We are so near Dublin and we have so much to offer, I take this opportunity to ask that Carlow become a priority.
There is no fear of it being forgotten when Deputy Murnane O'Connor is here. Under the existing south-east regional enterprise plan, Carlow Community Enterprise Centres received a priming grant to develop a technological export and innovation centre, TEIC.
That is right.
That is the kind of project that will potentially receive funding under the new plan to bring it to the next level. It is the kind of innovative project from within the county that has a far better chance of succeeding and making a long-term investment and impact on the Deputy's county, particularly, as she said, with the new technological university there. I am more than happy to sit down with the Deputy and engage with IDA Ireland. I assure her that IDA Ireland is working hard across the country. In particular, because of the investment the Government has made in IDA Ireland's property programme, it is working to market centres like the Carlow Business Park. I look forward to working with the Deputy on that.
72. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment his views on the report by the European Committee of Social Rights, which found that the Government is in breach of several aspects of the European Social Charter; and if he will make a statement on the matter. [22018/23]
We are back to Deputy O'Reilly again.
We are fairly getting through the questions this morning.
The Deputy is earning her salary today.
Indeed. I will be putting in a claim for the overtime.
On a point of information, is Deputy O'Reilly allowed to take questions from her colleagues in their absence?
This is Deputy O'Reilly's question.
My question is No. 72.
Deputy Gould had a question.
I understand that. I do not have any information on the matter. Apologies. I could do it with the permission of the Cathaoirleach, but it would be a fool's errand, unfortunately.
I am just dealing with the people in the Chamber who have questions.
It is good delivery for Cork. That is why-----
I am sure the Minister could sing it if he had an ear to it.
I could put it on the record.
Maybe another day.
Deputy Colm Burke has been working hard on it.
My question is fairly straightforward. I am looking for the Minister's views on the report by the European Committee of Social Rights, ECSR, which found that the Government is in breach of several aspects of the European Social Charter. That is an important report. We should not be lagging behind on this or seeing this. I am interested in the Minister's views on what was found.
My Department co-ordinates Ireland's annual national reports under the revised version of the Council of Europe's European Social Charter. Ireland's 19th national report on the implementation of the charter was submitted to the Council of Europe in December 2021. The report covered the period 2017 to 2020 and focused on the accepted provisions under the thematic group of labour rights. The European Committee of Social Rights's assessment of Ireland's report was published in March this year. While the committee found that Ireland was not conforming with some areas of the charter, it also found Ireland to be in conformity with ten other areas. It should be noted that the assessment could not take into account the many employment rights initiatives introduced since 2020 across a range of areas including many referred to by the assessment, such as the gender pay gap. The Gender Pay Gap Information Act 2021, which comes under the remit of the Department of Children, Equality, Disability, Integration and Youth, was signed into law in 2021.
The ECSR assessment for Ireland will be considered in the context of the existing legislation protecting workers in Ireland and appropriate improvements to employment rights. Many of the labour rights flagged in the ECSR's assessment already have significant statutory protections set out in our national legislation, including in the Organisation of Working Time Act, the Minimum Notice and Terms of Employment Acts, the Unfair Dismissals Acts, the Protection of Employment (Collective Redundancies) Acts, the National Minimum Wage Act and the Payment of Wages Act. These form part of our national suite of employment law, which is regularly updated and is robustly enforced by the Workplace Relations Commission. In addition, the Work Life Balance and Miscellaneous Provisions Act 2023, which incorporates the right to request remote working, came into effect on 4 April last. This Act provides for the introduction of new rights for employees to support a better balance of family life, work life and caring responsibilities.
The committee found that we are in breach in several areas, including the right to organise and the promotion of collective bargaining, which are breached by Ireland's failure to enact laws ensuring that workers cannot be dismissed for trade union involvement or activity. That is an important protection which does not exist. There is also ban on strikes by members of the Defence Forces and An Garda Síochána. The most recent report reaffirms the criticisms that have been made over many years. It specifically refers to the rates of pay for workers aged 18 and 19. The committee found that such rates of pay do not ensure a decent standard of living. When we consider the results of the survey done by Unite the Union, we see that, in real terms, wages have fallen by an average of €76 per week when inflation is factored in and we can see that it is worse for those people who are on sub-minimum rates of pay and for younger people. Will the Minister of State commit to a roadmap to address those issues where we have been found in breach and should not be in breach, as well as detailed timeframes with which we will be in compliance.
There is quite a bit to unpack there, but I think the Deputy will accept that the time lag between when the report was published and what has happened since has seen many of the breaches rectified. On a couple of points the Deputy made, the rates of minimum pay for workers of a certain age are under review by the Low Pay Commission. We discussed that during the last session of parliamentary questions. On the ban on strikes for members of the Defence Forces, I must pay credit to the Minister for his work during his time as Minister for Defence and his real engagement with PDFORRA and RACO to ensure they can make representations at pay negotiations. We have a situation there. We discussed collective bargaining during the last session of oral parliamentary questions. The Government is looking at this with regard to wider European efforts on both collective bargaining and adequate rates of minimum wage. I hope to see progress on this in the coming months.
The committee honed in on the lack of protection for trade union activity. I understand, not because of anyone sitting opposite but because we will be compelled by the European Union, that we will bring in legal protections for union organising and representation. Currently, without the protection from discrimination for trade union activity, it is impeding workers' capacity to organise. It means that if we cannot comply with that, workers are left in a situation where they cannot organise and cannot then vindicate those rights. Something I have raised on more than one occasion is the issue of An Garda Síochána and the Defence Forces being kept out of normal trade union activity. Members of either still cannot strike. That is one thing that we were found to be in breach of. Where we have been found in breach, will the Government address it line by line and ensure we are in compliance? I assume it is the ambition of the Government to ensure that we are in compliance and that the next report will find that we are substantially compliant and will not have to deal with this.
I will respond on the comments on the Defence Forces. To be clear, PDFORRA was not looking and is still not looking for the right to strike. RACO is certainly not either. What they were looking for and now have-----
Affiliation.
-----is a link to ICTU that allows them to be part of the various rounds of pay negotiations that take place. That is what they looked for and have. Nobody apart from Deputy O'Reilly seems to be looking for the Defence Forces to be given the ability to strike, which would not be the right decision for national security issues, which people in the Defence Forces recognise. It is important to put that on the regard.
May I respond to that briefly? I am referring to the report that was published and the fact that the right to strike was mentioned in it. I appreciate that. I looked only for affiliation when I spoke to the Minister, as he will know. I have long association with both those organisations and understand exactly what they want.
75. Deputy Jennifer Murnane O'Connor asked the Minister for Enterprise, Trade and Employment if he will provide an update on the action being taken by IDA Ireland to bring new businesses to Carlow; and if he will make a statement on the matter. [22079/23]
We are now back to Carlow.
I am delighted to be getting back in again. I would like to ask the Minister about action taken by IDA Ireland to bring new businesses to Carlow and if he can make a statement on the matter.
I said it will not be forgotten this morning anyway. As we just discussed, IDA Ireland is working particularly hard to deliver in the regions through its strategy, Driving Recovery and Sustainable Growth 2021-2024. IDA Ireland is identifying emerging trends and looking at the opportunities for sustainable growth among its existing client base through a focus on transformative investments to increase the productivity of existing Irish operations and to attract new ones through research, development and innovation, digitalisation, training and sustainability. The south-east region, of which Carlow is part, has 86 IDA Ireland client companies, employing just over 15,500 people across technology, life sciences, international financial services, and engineering and industrial technologies.
FDI performance in the region has been strong over the past five years with employment among IDA Ireland clients increasing by 25% over the period. Carlow is part of the south-east region. There are four IDA Ireland client companies in County Carlow with a combined employment of 1,515. As we discussed earlier, the new 34,000 sq. ft advanced building solution in Carlow town is scheduled for practical completion in the coming weeks in the second quarter of 2023. In this spirit, IDA Ireland will continue to market Carlow and the south-east region through its overseas offices to target mobile FDI opportunities with corresponding site visits. The availability of the advanced building solution will be a major plus in this marketing effort for Carlow.
I thank the Minister of State. I welcome this and we have spoken previously about it. I welcome regional development but since Carlow is the smallest county in the south east, I always feel we have a lot more to do. I find it is a challenge for us. I thank the Minister of State for his commitment to meeting IDA Ireland with me and perhaps meeting Carlow County Council. Carlow has so much to offer. We are close to Dublin. Our road infrastructure is excellent. I could mention MSD and Unum. Glenveagh is opening a new factory. We have such potential but we need help. To get this help everybody must be involved and all of the agencies must work together. I am raising this because of my concerns that we are the smallest county and this affects us. It is a lot more challenging for us.
Small can be good. Through its strategy IDA Ireland is developing only 19 advanced building solutions in 15 regional locations and Carlow is one of them. This is a very serious statement of intent on the part of IDA Ireland and the Government that we are taking Carlow's potential seriously. We are increasing its attractiveness as a location for direct investment. Having the ability to offer a building will transform its potential to attract new clients. We will sit down with Deputy Murnane O'Connor and IDA Ireland and discuss its plans to sell this new facility, which should be due for completion in the coming weeks.
I thank the Minister of State. I drive by the building every day. I can only say it is excellent. The quality of the workmanship is beautiful. I am raising the issue because I want to make sure we fill the building, get clients for it and are in a position in Carlow whereby I can say to people in the coming months that the building is there with clients in it. It is an excellent building but unless we have people in it, as the Minister of State knows, it will defeat the purpose. I welcome the work that has been done. I am delighted the Minister of State has agreed to work with me on this and I know he will do so. I can only say to any investor that Carlow is a fabulous place to live. We have so much to offer. If people are going to invest, they should look at Carlow.
Obviously, I am in support of my neighbouring representative and I have to agree. At the same time I must bring to the attention of the House the necessity with regard to all of the regions to identify infrastructural deficits that affect various parts of the country, particularly with regard to bringing on board the type of enterprises my colleague has referred to.
The locations of the advanced building solutions were not randomly chosen. A lot of research went in. There was a lot of analysis looking at existing companies in the areas, looking at broader macroeconomic considerations and looking at existing clusters of companies. Part of the new White Paper is on investing in clustering and ensuring it is strengthened. Carlow will be part of this. I point to the 1,000 jobs announced by the Minister, Deputy Coveney, last Friday for Athenry. It shows that IDA Ireland is very committed to regional investment. It is the biggest jobs announcement in the country for some time. It went to the regions and it is an indication of the seriousness not only of IDA Ireland but also of the Government.
70. Deputy Richard Bruton asked the Minister for Enterprise, Trade and Employment if he has plans to update the strategy for entrepreneurship; and if he will make a statement on the matter. [21543/23]
I apologise for not being here earlier. The House is very efficient and speeding through the work. A key long-term investment for Ireland is to build a much stronger culture of entrepreneurship and stronger hubs around it. Will the Minister consider updating the strategy put in place some years ago? Time has passed considerably since then and it needs to be looked at again.
The recently published White Paper on Enterprise sets out the Government's strategy for entrepreneurship and was informed by the SME and entrepreneurship growth plan, which is a strategic blueprint for SMEs and entrepreneurs to start up, scale up and access foreign markets, as well as helping them to navigate the transition to a low-carbon, digital economy.
As part of the implementation of the White Paper we will focus our efforts on developing an integrated approach that accelerates start-up growth and scaling and includes access to public and private funding, investment in research and development and innovation, access to skills, an appropriate regulatory environment as well as a tax system that encourages investment in start-ups and scaling.
In response to the Government’s strategic blueprint for entrepreneurship, Enterprise Ireland’s strategy sets out an ambition for Ireland to be a world-leading location to start and scale a business, with a target of a 20% increase in the number of high-potential start-ups by 2024. This will be achieved by increasing the number of new entrepreneurs, fast-growing start-ups and high-potential start-ups across the regions, and by the commercialisation of research and innovation-driven entrepreneurship.
Enterprise Ireland works closely with the local enterprise offices and other entrepreneurship stakeholders and third level institutions, to provide companies of all sizes with a flexible, proactive and support model, responding to their growth and development needs. The White Paper also recognises the expanding role of the local employment offices as the first-stop shop for guidance, financial assistance, mentoring and training for anyone intending to start or grow a business. This afternoon the Minister and Ministers of State will attend the quarterly meeting of the SME and entrepreneurship stakeholders where issues such as this will be discussed. We will look at new and innovative implementation policies that can be incorporated also.
During the deep recession when we lost 300,000 jobs we would have lost 400,000 jobs were it not for the fact that people set up businesses that in the most difficult times created 100,000 jobs. Almost 10,000 businesses a year are formed. The obsession with high-potential start-ups is misplaced. There will be only 100 of them per year and this will be pushed up to 120. We need to look at wider elements of entrepreneurial strategy, such as a culture that promotes entrepreneurship in our education system, mentoring, the density of opportunities for people to start their own businesses, venture capital and angel capital. It is a world we need to address. Having it as an add-on to a wider enterprise strategy risks that attention will be lost. For the long term, we need indigenous businesses growing and scaling in Ireland.
I absolutely agree with Deputy Bruton that this is vital for the long term and short term in terms of identifying start-ups of all sizes throughout the country that have serious potential. I must give credit in particular to the local enterprise offices throughout the country. I am fortunate to visit them. We see new businesses coming on stream and not only establishing themselves within the first two years but taking on employees also. They move from being a one-person operation to having two or three employees and potentially moving into being Enterprise Ireland clients in their own right.
Some of the areas identified for improvement and more co-ordinated thinking are density, clustering, supporting start-ups of all sizes and focusing on specific geographic regions that lend themselves to providing an environment to allow for increased development and foreign opportunities. Deputy Bruton is right about venture capital and angel capital. It is about looking at venture capitalists and pushing them not only to high-performance opportunities but to all opportunities, particularly with local enterprise office client companies.
I appreciate the Minister's commitment to this area. It is one area where we would benefit from a set of succinct policy proposals that are built around stronger leadership, a stronger culture towards entrepreneurship and better opportunities for people to decide to set up their own business from within companies that are successful. A sustained focus on that, with policy instruments around it, would repay in the long term. It was something we did in the time of deep crisis in the 2011 to 2016 period and it is not something we should overlook now, even though we have extraordinary employment growth from all sources.
I hear what the Deputy is saying and I also recognise his contribution to and experience in this area. To give reassurance, we are not taking anything for granted here. We are assessing the current approach towards a culture of entrepreneurship, start-ups and risk-taking in Ireland, which is needed to continue to generate economic activity and new business all the time. It is one of the reasons that I and the two Ministers of State are spending quite a bit of time around the country, talking to small businesses and listening to them. We had a women in business conference in the last number of weeks to really understand the barriers facing female entrepreneurs. We want to build on the current infrastructure, which works quite well in terms of Enterprise Ireland and local enterprise office, LEO, structures. However, we can continue to ask ourselves if we can do better, specifically in this space, whether that is in the lead-up to budget time or in the broader policy development in this area. Ireland needs to be a leader in terms of being a start-up nation, if you like, and encouraging entrepreneurship and business risk-taking. We need to continue to work on that.
79. Deputy David Stanton asked the Minister for Enterprise, Trade and Employment if he will outline the work carried out to date by his Department to enable Ireland to ratify the agreement on a Unified Patent Court; his further plans in this regard; and if he will make a statement on the matter. [22039/23]
Does the Minister agree the Unified Patent Court is extremely important? Can he outline what work his Department has done, particularly with respect to the arranging of the referendum to be held in order to enable the State to ratify the court? Is his Department responsible for putting the legislation together to enable us to have a referendum? How far advanced is that preparation?
Setting up a local unitary patent court in Ireland will offer users an accessible, cost-effective and more efficient option for broad patent protection and dispute settlement across Europe. Businesses will defend or challenge a patent via a single litigation process rather than costly litigation in each individual member state. Savings for businesses will be significant in this area. That is why, in June of last year, the Government reaffirmed its commitment to participate in the unitary patent system and the Unified Patent Court and to hold a referendum to enable Ireland to do that.
The preparatory work under way includes drafting a constitutional amendment Bill, along with a regulatory impact assessment. Amendments to the national patent legislation will also be required to recognise both the new unitary patent and the Unified Patent Court agreement. A local division of the Unified Patent Court will be created in Ireland if the State ratifies the agreement under which the court is established. Preparations involve engaging with the Department of Justice on the establishment of a new court and with the Department of Housing, Local Government and Heritage regarding the work of the electoral commission on the referendum that would be needed. A communications campaign is being devised and an oversight committee, comprising the key stakeholders, is being established to support the work.
The simplified and much cheaper system of patent protection will make it easier, particularly for micro and small businesses, to export to more EU countries, and protect their IP while doing it. Businesses in other participating member states will have access to their own local patent court and we want to ensure that our companies have that same beneficial access here in Ireland.
To give a practical sense of the money savings involved, the current estimate for a company is that it will cost less than €4,700 to maintain a unitary patent for an average lifetime of ten years under the new system, if it is validated across the 24 participating member states, whereas it currently costs about €30,000 today, without this new system. There are very significant savings for Irish businesses. Let us not forget our businesses are reliant on export markets, predominantly within the European Union, for their growth stories. This is a very important piece of work that we need to get done.
I agree this is very important. Does the Minister agree with the assertion made by some business organisations that this could be worth between €500 million and €1.5 billion per annum to the State? Can he tell me why there does not seem to be any urgency in holding a referendum or getting ready for a referendum, seeing as we will probably be holding referendums in November anyway? Is his Department responsible for drafting legislation or can he tell me which Department is responsible for drafting the legislation to enable us to hold a referendum on this matter? Would he agree that this is very important for business in Ireland and that if we do not move on this, we could be left behind? I am amazed that our friends from the Fourth Estate have not picked this up, given it is so important. We are missing a huge trick here. Maybe it is because it is so complicated that people cannot understand it. I welcome that the Minister spoke about an information campaign, which is also crucial.
As I said, my Department is a lead Department here. We are working with other Departments, like the Department of Housing, Local Government and Heritage and, of course, the Department of Justice because we have to set up a new court, but we have to get a referendum passed too. The Deputy and I are around this House long enough to know that passing referendums is not a straightforward process. The most important thing is that we get this passed as soon as we can but also that we do not risk its success by going at the wrong time. There is a likelihood that there will be at least one referendum in the autumn. There is also an opportunity at next year's local and European elections to run some referendums at the same time, when we know we will have a pretty high turnout. I think there is some sense in running this referendum in parallel with the European elections because it is a European issue and a European opportunity for Irish businesses. The most important thing for me is that we get this passed successfully in a referendum. We have two options, and the more likely of those two options is probably with the local and European elections this time next year.
I asked which Department is responsible for bringing forward the legislation to enable us to have a referendum on this matter and how advanced that work is at this point in time.
The preparation is quite advanced. Of course, we have to rely on the Department of Housing, Local Government and Heritage regarding the work on the electoral commission that is required for the referendum, but that can be done. I am confident that if we choose to do this in the autumn, it will be possible to do it in the autumn, but I think we need to make a wise political decision as to when we are most likely to get it passed and when we will have an electorate that wants to hear and understand the detail of what we are asking of them. What I am saying is that we may hold this in the autumn - that has not been finally decided by the Government yet - but I think the more likely date is to hold it this time next year at the same time as the local and European elections.
By the way, I can see the Deputy is impatient to get this done. As to the setting up of this court, whether we get this referendum passed in the late autumn or in the spring of next year does not make a huge difference. As long as we get it passed, we can then move quickly with the legislation on the setting up of the court. Either way, it is going to take some time to get that done.
We move back to Question No. 66.
66. Deputy Holly Cairns asked the Minister for Enterprise, Trade and Employment the steps he is taking to improve the employment rates among individuals with disabilities. [21884/23]
Ireland has one of the lowest employment rates for disabled people in the EU at 32.3%. This results in almost one quarter of people who are unable to work due to illness or disability living in consistent poverty compared to 6.7% of the rest of the population.
Many disabled people want to work but they continue to face structural and physical barriers. What is being done to assist disabled people to get employment and to start their own businesses?
I thank the Deputy for tabling this question. My Department has a responsibility, along with others, to ensure that increasing numbers of people with disabilities participate in the labour market and to do more in that regard. I acknowledge that, as a country, we are not where we need to be in this area and it will be a priority for me over the next year or so to change that. There are some good results within the public sector, where we are meeting targets. In my Department, for example, we are well above the 6% target that was set for the public sector and the same is true for IDA Ireland and Enterprise Ireland. However, that is not really the story. The story here is that across our economy there is full employment. Can we do more, through our agencies and through incentives for employers, to ensure that we provide opportunities for people with a disability to get paid work? I am determined to do more on that.
We do not rate well in comparison to other European countries in this space. Only slightly more than one third of people with a disability in Ireland have paid employment, which is not good enough, particularly when we have such a wealth of employment opportunities in the country at the moment. I see people with a disability as a significant asset in terms of employment opportunities in Ireland. This is true for them, in terms of their own employment opportunities but also for employers. There are a number of good, innovative projects around the country that the Government is supporting. Indeed, there is a whole series of things being done by Enterprise Ireland and my Department that I can outline to the Deputy but it is an accepted criticism that, regardless of the positive things that are happening, they are not impactful enough right now. I will be conducting a review across my Department's agencies to see what we can do to improve Ireland's performance in this area. I am happy to put that on the record and again thank the Deputy for raising the issue.
The Minister is right that at a time when employment rates are so high, the lack of employment for disabled people is even more stark. The absence of joined-up policies is a key issue here. For example, poor public transport means disabled people cannot get to jobs. In Cork South-West, many Local Link services run only in the mid-afternoon, which means people cannot use them to get to work. The services are just not designed for that. Many disabled people face an income cliff when they get a job as many of their social welfare supports suddenly stop. The social welfare support system should recognise that there is a cost of disability, whether one is in employment or not. There should not be a disincentive for people to go into employment.
I realise some of these issues relate to other Departments but in the context of employment, the Minister has a role in addressing all of the structural barriers for disabled people. On a matter directly related to his portfolio, I ask him to outline what he is doing to support disabled entrepreneurs. In terms of standard PAYE jobs, there are supports for disabled people but this logic has not been applied to disabled people seeking to start their own business.
On the public transport issue, I accept this is a barrier to entry into the workforce, particularly in rural Ireland, but some of these barriers are not as difficult to overcome as they used to be. Many more people are now working remotely and are getting options to work from home. We have technology platforms now that allow many skilled people to work from home or from local enterprise hubs in places like Skibbereen and elsewhere. There are a lot more opportunities now, through using technology, that allow people to work remotely. We should be able to work with people who have a physical disability, in particular, and who have limited public transport options, to find potential employment opportunities.
Enterprise Ireland is focused on ensuring that its supports for entrepreneurs and enterprise are accessible to all, including people with disabilities. Its online content has been adapted to make information more accessible. It continues to invest in accessible training content, which is available on eilearn.ie, and works in conjunction with stakeholders in the local enterprise offices and third level colleges to develop new programmes and initiatives in this area.
The hub in Skibbereen is a great example of a remote working hub but if one lives in a rural area, one needs transport, in many instances, to get to it. The hub is doing its bit to provide remote working opportunities but there is no public transport available for people to get to it.
I encourage the Minister to help his colleagues in other Departments to consider how their responsibilities relate to employment prospects among disabled people. We need to develop robust policies to tackle malpractices within public services. The Disability Participation and Consultation Network highlighted that policies around returning to work after acquiring a disability need to be revised. The Oireachtas Committee on Disability Matters heard examples of people unable to return to their public sector jobs because they are not being given the flexible arrangements that they need.
As a former Minister for Defence, Deputy Coveney will be aware that many disabled people are excluded from careers in the Defence Forces. What kind of message does that send? Representatives from the Independent Living Movement Ireland appeared before the disability matters committee and pointed out that they could contribute to desk work, strategy and logistics, all of which are vitally important. At a time when the Defence Forces are severely understaffed, it is just illogical as well as discriminatory to exclude a whole cohort of people.
First, I will outline some of the other things Enterprise Ireland and IDA Ireland are doing. Last year Enterprise Ireland signed a partnership agreement with Open Doors to further develop awareness campaigns and programmes that will utilise success stories of self-employed and entrepreneur role models across a variety of areas, including people with disabilities. Additionally, the office infrastructure is designed, or has been adapted, to accommodate people with intellectual and physical disabilities.
IDA Ireland is working in partnership with Generation Ireland to launch a pilot programme designed to widen the talent pool and attract people from diverse backgrounds to avail of employment opportunities. That programme is expected to deliver some good results. However, as I said at the start, we can do more and be more impactful in this area. I have personal experience of some really innovative projects which can be templates and can be replicated in other parts of the country to enable people with a disability to get trained and get the skills they need to prepare them for the workplace. Many of these projects have been very successful but we are not doing enough of them. Over the next 12 months, I hope we will see some progress on the numbers that have been pointed to in recent weeks.
81. Deputy Richard Bruton asked the Minister for Enterprise, Trade and Employment the preparations that have been undertaken in his Department to develop a circular economy strategy in key economic sectors; and if he will make a statement on the matter. [21544/23]
Ireland has not been good at either constructing buildings or enterprises that put sustainability at their core. We have 50% higher emissions and a low uptake of renewables outside of electricity, poor material and waste management systems and the lowest rate of circularity, bar Romania, in Europe. Does the Minister agree he has a central role in addressing this?
We touched on this yesterday in committee and, to be fair to Deputy Bruton, he has been a remarkably consistent voice in this area for a long time, including when he served as a Minister. He put in place Ireland's first proper structures for responding to the climate challenge. To be fair, we are moving from being in a poor position in this area relative to other European countries to a much better place. However, we have a distance to travel yet in terms of how we manage, reduce and recycle waste, how we produce energy and how we use natural resources to do that in a clean way, and in our overall approach towards the circular economy. This is more than just a climate strategy; it is a public health strategy as well. We are pursuing much more sustainable approaches now that will enable us to improve our performance and meet the targets that we have set for ourselves, thus placing Ireland in a much better position vis-à-vis other European countries in the context of the circular economy.
While we have now decided that is where we want to go, we are certainly not very advanced on the path. We passed legislation providing that every sector should have a strategy for circularity but I do not see sectoral strategies being evolved. The Dutch, who are the leaders in this field, have such strategies. We need to offer enterprise and consumers much more information on the sustainability of their choices. I ask the Minister to consider bringing forward strategies in building, food, manufacturing, and the many other sectors for which he has responsibility.
The second iteration of the whole-of-government circular economy strategy is currently under development in the Department of the Environment, Climate and Communications. As the Deputy would expect, that needs to be a cross-governmental response. My Department is very much part of that discussion with the lead Department in the context of industry and economic development. I accept the criticism on where Ireland has been in this area. However, I do not accept that we are not putting in place a pathway to a much more impactful response to the circular economy challenge that we have across multiple areas, from energy generation to energy management to transportation, to waste management and waste to energy. In all of these areas, the principles around the benefits of a circular economy are now being actioned in Government policy. We have a distance to travel yet; that is true.
