Written Answers Nos. 64-74
64. Deputy Éamon Ó Cuív asked the Minister for Jobs; Enterprise and Innovation the measures he has taken to help the retail industry here; if he will consider the establishment of a separate unit in his Department to deal with and coordinate the challenges facing the retail sector; if he will consider introducing a new strategy for supporting existing and new jobs in the retail sector; and if he will make a statement on the matter. [41654/12]
View answer81. Deputy Dessie Ellis asked the Minister for Jobs; Enterprise and Innovation in view of the continued concerns regarding employment in the retail sector, the steps or proposals that are under active consideration by him to address the issue of rigid costs. [41613/12]
View answerI propose to take Questions Nos. 64 and 81 together.
The Government recognises the importance of the retail sector to the economy. It is employment-intensive and covers every community in the country. Combined with wholesale, the sector employs 258,000 people in Ireland – that is almost 15% of our total workforce. Recognising its importance to the economy, the Action Plan for Jobs includes a number of specific measures aimed at supporting employment in the retail sector in 2012. These actions are for delivery across a number of Departments and agencies and include a renewed focus on prompt payments, an assessment of the potential for future development of the retail sector, the introduction of a statutory code of practice for grocery goods undertakings and the provision of support to retail firms seeking to internationalise. Other more general measures in the Action Plan which will also help to support employment in the retail sector include improved access to finance for businesses, the enactment of legislation to reform the statutory wage setting mechanisms and the acceleration of the programme of revaluation of commercial premises, which will provide a basis for the adjustment in commercial rates. Other initiatives which the Government introduced as part of the Jobs Initiative in May of last year will also continue to help support employment in the retail sector. These include the halving of employer’s PRSI on earnings up to €356 per week and the reduction in the 13.5% VAT rate to 9% on certain goods and services. I regularly meet representatives of the retail sector to hear about the challenges they face, including in relation to the costs of doing business. My officials have also held separate discussions with retail representatives. These engagements will assist us in implementing the commitments in the Action Plan for Jobs and in identifying any further actions that can be taken to support the retail sector.
65. Deputy Barry Cowen asked the Minister for Jobs; Enterprise and Innovation the discussions he has had with industry or their representatives in relation to skills shortages here; the reason, in view of our unemployment situation, that some employers cannot fill vacancies; if he has consulted with the Department of Education and Science in relation to the shortage of necessary graduates to fill vacancies; and if he will make a statement on the matter. [41651/12]
View answerThe Expert Group on Future Skills Needs advises the Minister for Education and Skills and me, on behalf of the Government, on current and future skills needs of the economy and on other labour market issues that impact on Ireland’s enterprise and employment growth. In its most recent National Skills Bulletin, which was published on 25 July last, the Expert Group stated that it considers "skills shortages" to refer to a situation where there are an insufficient number of individuals who have the required qualifications, skills set, and/or experience to fill a particular post. The Expert Group considers that current skills shortages almost entirely have third level qualification requirements, coupled with experience and a specific skills mix. The National Skills Bulletin found that the magnitude of shortages is unlikely to be greater than several hundreds in terms of headcount for the overall economy, with the exception of IT skills where the demand is greater especially for experienced personnel who are in demand and short supply globally. Job vacancies were most frequent for sales and related occupations, including marketing (especially digital marketing) and customer services roles. Vacancies also arose for IT professionals, science and engineering professionals, business professionals, administrative occupations, IT associate professionals, and personal care occupations. Language skills continue to be important, particularly for sales and customer service roles but also at a professional level (e.g. ICT, engineering and finance).
The conclusions of the Expert Group on Future Skills Needs with regard to the incidence of shortages in specialist skills categories that require a specific skill mix, and also in relation to the persistence of some difficult to fill vacancies, concur with my own experience based on continuing discussions with employers and their industry level representatives. The Government has brought education and training to the heart of its Action Plan for Jobs. Initiatives such as Springboard, the ICT Conversion Programme and the target to double the annual number of honours degree ICT graduates to 2,000 by 2018 are aimed at delivering the skills needed by enterprise. Graduates from these programmes are available to industry and increasing numbers will qualify over the next 18 months. We will continue to depend on inward migration for highly experienced specialists in ICT who are in short supply globally. While these are small in number, their recruitment is linked to the additional hiring of a team of graduates and professional staff. In the area of multilingual skills requirements, I met exporting companies when I launched the Expert Group Report on Key Skills for Enterprise to Trade Internationally. I am working with the Minister, Deputy Quinn, in the context of the Action Plan for Jobs 2013 to address the specific recommendations in relation to sales and foreign language skills development as identified by companies. My Department continues to work closely with the Department of Education and Skills to ensure our workforce is well aligned with the skills that employers need now and into the future.
66. Deputy Seán Crowe asked the Minister for Jobs; Enterprise and Innovation when he last met with the major banks to promote credit to the small and medium enterprise sector. [41612/12]
View answerAlong with my officials, I am in regular contact with the major banks to discuss the availability of credit to the SME Sector and the rollout of both the Partial Credit Guarantee Scheme and the Microfinance Loan Fund.
67. Deputy Denis Naughten asked the Minister for Jobs; Enterprise and Innovation the progress made to date on protecting employment of staff working on the UK loan book at bank of America, Carrick on Shannon, County Leitrim; and if he will make a statement on the matter. [41257/12]
View answerThe process regarding the sale of Bank of America’s Irish and UK credit card businesses is ongoing. Negotiations regarding the sale of the MBNA Ireland portfolio have culminated in its recent sale by BOA to Apollo Global Management, a leading global alternative investment manager headquartered in New York. Apollo has more than US$75 billion in assets under management in private equity, credit-oriented capital markets and real estate funds invested across nine industries where the group has considerable knowledge and resources. This transaction involves approximately 250 employees in Carrick-on-Shannon currently supporting the Irish portfolio transferring to Apollo, under Transfer of Undertakings (Protection of Employment) Regulations, in 2013 following a transitionary period for the remainder of 2012 and early 2013. Apollo and BOA are currently finalising the sale contract. BOA has not yet sold the UK MBNA portfolio which is the other business supported out of Carrick-on-Shannon. IDA Ireland continues to monitor the situation closely and is providing relevant input into the process as it moves forward. IDA is in regular contact with Bank of America management in Carrick-on-Shannon and Dublin and at corporate level to monitor developments and is also in contact with Apollo. IDA last spoke with BOA MBNA management in Carrick-on-Shannon on 27 September 2012 and is scheduled to meet with the local management again in the first week of October. IDA’s understanding is that while BOA does not now expect to sell this UK MBNA portfolio in the short term, the process remains ongoing and a potential deal could materialise at any time.
68. Deputy Sandra McLellan asked the Minister for Jobs; Enterprise and Innovation when the first loans will be made available from the Micro Enterprise Fund. [41604/12]
View answerMicrofinance Ireland has been established to deliver the Government’s Microenterprise Loan Fund. Microfinance Ireland opened for business yesterday, Monday, 1 October. Loan applications from businesses and sole traders across all sectors, employing up to ten people who have been refused credit by the banks for loans of up to €25,000, will be accepted and processed. Further details, guides and application forms can be obtained from the individual County and City Enterprise Boards and at www.enterpriseboards.ie.
69. Deputy Sandra McLellan asked the Minister for Jobs; Enterprise and Innovation his views on the level of cooperation between him and the Minister for Enterprise, Trade and Investment in the north of Ireland. [41603/12]
View answerNorth-South economic co-operation is and will remain a priority for myself and the Government. To this end, there is ongoing dialogue between the relevant Ministers North and South in all areas to promote economic development in the Border region. From my own perspective, I attend meetings in the trade and business development sectoral format of the North-South Ministerial Council which are held twice a year. I also attend two meetings each year of the North-South Plenary which are hosted by either the Taoiseach or the First and Deputy First Ministers. At these meetings, there is full engagement with Northern Ministers, particularly at the sectoral meetings where I have face-to-face discussions with my NI counterpart, Ms Arlene Foster MLA, Minister for Enterprise, Trade and Investment, on issues around cross-Border trade and on the work of InterTrade Ireland, the North-South Implementation Body whose remit is to "exchange information and co-ordinate work on trade, business development and related matters in areas where the two administrations specifically agree it would be in their mutual interest". InterTrade Ireland is co-funded by my Department and its counterpart in Northern Ireland. I look forward to meeting Minister Foster again at the next trade and business development sectoral meeting scheduled to be held on 28 November 2012.
My officials engage in ongoing dialogue with their counterparts in the Northern Ireland Department of Enterprise, Trade and Investment and keep me informed of all key North-South related issues including the North-South activities of the enterprise development agencies. In fact, there is a long history of co-operative action between North-South enterprise agencies to achieve mutual benefits. The enterprise development agencies North and South of the Border have for many years co-operated where this has added value to their activities, and this collaboration has greatly increased in recent years. Enterprise Ireland, which stimulates the development of indigenous enterprise, has extensive contact with its Northern counterparts and works with them on a range of programmes. IDA Ireland collaborates with Invest Northern Ireland, for example, in the Northwest Now initiative. More recently, there have been very positive developments where a wide range of agencies and institutions now co-operate on science and technology issues, including participation in the EU Research Framework Programme. In addition, my Department provides funding support for enterprise-themed Interreg projects jointly approved with the Northern Ireland Department of Enterprise, Trade and Investment. Through Interreg, my Department has supported a number of North-South projects, including enterprise networking for the Border counties and Northern Ireland, capacity-building initiatives and several other enterprise development projects. The process of assessing further Interreg projects for joint funding is ongoing. The Government, along with the enterprise development agencies, will continue to work diligently with the Northern Ireland Executive and its agencies to increase the economic benefits accruing from cross-Border co-operation.
70. Deputy Sean Fleming asked the Minister for Jobs; Enterprise and Innovation the reason Ireland performed so poorly in securing funding for science research projects from the European Research Council which recently awarded €800 million to 503 applicants of which only four were Irish; and if he will make a statement on the matter. [41658/12]
View answerThe European Research Council (ERC) is a European funding body that was set up to support investigator-driven frontier research. It was established to implement the "Ideas Programme" of the Seventh European Union Framework Programme for Research and Technological Development (FP7). Its main aim is to stimulate scientific excellence by supporting and encouraging the very best, truly creative scientists, scholars and engineers to be adventurous and take risks in their research. Being investigator-driven or bottom-up in nature, the ERC approach allows researchers to identify new opportunities and directions in any field of research. To date, Irish researchers have won ERC awards totalling €34 million. While this is not insignificant, there is certainly scope for improvement and I am confident that we will see more success in ERC grants by the end of FP7. To get a better appreciation of Irish researchers' performance in securing EU funding one has to look at the success rate across FP7 as a whole. Funding from the ERC is only one part (14.87%) of the overall FP7 budget of €50 billion over the 2007-13 period. Since the commencement of FP7 in January 2007 to June 2012, Irish researchers have won awards under the Programme totalling €438 million, representing a success rate of 21.78%. This is above the EU average success rate of 20.72%. This shows that overall Ireland continues to perform very creditably vis-à-vis other EU Member States and that we remain on track to secure our target of €600 million from FP7.
71. Deputy Peadar Tóibín asked the Minister for Jobs; Enterprise and Innovation if he has carried out research into the effect of the dissolution of the Sunday premium on the working poor. [41594/12]
View answerThe requirement for an employer to provide additional compensation to employees for Sunday work has not been removed. The obligation to provide a Sunday Premium is derived from Section 14 of the Organisation of Working Time Act 1997 (OWT). In summary, while the OWT Act specifies the means by which an employer should provide a premium for Sunday working, the nature and value of the premium rate is a matter for negotiation and agreement between the employer and trade union(s) representing employees or between the employer and employees who are affected by Sunday trading, in circumstances where employees are not unionised. Thus, under section 14 any employee who is required to work on a Sunday, and his or her having to work on that day has not been taken account of in the determination of pay, shall be compensated by the payment to the employee of a reasonable allowance having regard to all the circumstances; or by increasing the employee’s rate of pay by a reasonable amount having regard to all the circumstances; or by granting the employee reasonable paid time off from work having regard to all the circumstances; or by a combination of two or more of the above.
Prior to the High Court ruling in the Grace Fried Chicken case that resulted in the striking down of all Employment Regulation Orders, many EROs had provided premium payments to those required to work on Sundays. Where EROs had made provision for a Sunday premium, they had only prescribed the level of monetary compensation (e.g. double time; time plus one-third) and had excluded the possibility of the use of the other options under section 14 of the OWT Act. These provisions were a source of significant concern to employers in sectors in which Sunday is a normal working day. In some cases, such as the hospitality sector, it is the day of greatest demand for the services provided. The Duffy-Walsh report accepted that there was validity in the argument that the arrangements in place in JLC sectors with regard to Sunday working were unduly burdensome, particularly in sectors in which Sunday is a normal working day. In its decision, the High Court had particular regard to the absence of consistency across sectors in relation to such matters as to the requirement to pay a Sunday Premium and a confusion between what had been established in statute for universal application and what was being imposed through EROs.
In this context, the Industrial Relations (Amendment) Act 2012 provides for a new definition of "remuneration" for the purposes of formulating proposals for EROs. The proposed new statutory definition will ensure that JLCs will no longer set Sunday premium rates or any other conditions of employment already covered by universal standards provided for in existing legislation. Workers' entitlements to a Sunday Premium will, of course, continue to be reserved under Section 14 of the Organisation of Working Time Act 1997. To complement the removal of the Sunday Premium from the purview of JLCs, I have requested the Labour Relations Commission to develop a Code of Practice on Sunday Working in those sectors covered by JLCs. The development of this Code will complement the provisions at Section 14 of the OWT Act and ensure that best practices are operated by all employers for those employees who are currently covered by JLCs and who work in sectors where Sunday working is widely practised.
72. Deputy Jonathan O'Brien asked the Minister for Jobs; Enterprise and Innovation if he will provide the increase in the number of people employed in exporting companies; and his plans to increase the number of existing business that have an export potential. [41620/12]
View answerDriving export growth is central to our economic recovery and is a key focus of the Government's Action Plan for Jobs. CSO figures show that the strong export performance is continuing. On a seasonally adjusted basis, goods exports in July increased by 6% on the June figure. The statistics also show that the seasonally adjusted trade surplus, at just under €4 billion, increased by over 12% in July as compared to June; and that exports in July 2012, at almost €8 billion, showed a 13% increase over the July 2011 figure. This is the latest in a growing list of positive signs in the international environment. I am determined, through continued implementation of the Government’s Action Plan for Jobs, to ensure we can accelerate the transition to a sustainable economy, keep growing our exports and create the jobs we need. Central to the Action Plan is ensuring greater access for Irish companies to real opportunities to break into new markets, grow their exports and create much needed jobs for this economy. In 2011, jobs in exporting companies started to grow again for the first time after three years of contraction, with 21,800 gross gains in full time jobs in Enterprise Ireland and IDA Ireland supported companies. The Government is determined to build on this in 2012 by improving supports like the establishment of the new Potential Exporters Division in Enterprise Ireland. Its role is to stimulate greater activity within companies across all regions and to reorient those demonstrating real growth potential from the domestic to the international market place.
Enterprise Ireland’s 29 overseas offices and international networks have an important role to play in the internationalisation of its established and start-up client companies, through positioning them to meet the needs of specific international market and guiding them in the right direction regarding market contacts and introductions to potential buyers. On 17 September last, I launched Enterprise Ireland's Annual International Markets Week. This event is Enterprise Ireland’s single largest client event and a significant part of Enterprise Ireland’s strategy to drive Irish exports to support business growth and jobs in Ireland. During the course of the week, 697 client companies held 2,273 meetings with export advisers to discuss their international growth strategies and help them break into export markets. This event gives Irish companies the opportunity to discuss and explore their international growth strategies with Enterprise Ireland's team of overseas market advisers and agree specific actions, which Enterprise Ireland will undertake on their behalf in international markets. Government policy is to build on the strength of our existing markets and diversify into new ones. Ministerial-led Trade Missions are an integral part of this process, particularly in countries where government-to-government contracts are a prerequisite for doing business and I have first-hand experience of the importance of these Trade Missions for Irish companies seeking to win overseas contracts.
73. Deputy Aengus Ó Snodaigh asked the Minister for Jobs; Enterprise and Innovation if he will provide an assessment of the impact of current levels of commercial rates on job creation and sustainability. [41607/12]
View answerThe levying and collection of commercial rates is a reserved function of the Local Authorities, which come under the policy remit of the Minister for the Environment, Community and Local Government, Deputy Phil Hogan. The Annual Rate of Valuation (ARV) is decided by the elected members of each Local Authority in their annual budget. Conscious of the need to minimise the costs that impact on business, the Minister earlier this year asked all Local Authorities to exercise restraint in setting their 2012 ARVs. Local Authorities have responded positively. All but one Local Authority froze or reduced its rate this year. The one Local Authority that increased its ARV was legally required to do so following the extension of a town boundary. In order to help businesses to be competitive, we must strive to keep all other costs on businesses as low as possible. The Action Plan for Jobs contains a range of measures designed to achieve cost reductions across the whole of Government and to support business.
74. Deputy Denis Naughten asked the Minister for Jobs; Enterprise and Innovation the steps he is taking to support enterprise development in the midland and western regions; and if he will make a statement on the matter. [41256/12]
View answerJob creation is at the top of the Government’s agenda. Supporting new and existing indigenous and foreign-owned businesses, across all regions, is central to our plans for recovery, growth and jobs. The Action Plan for Jobs contains a number of measures which are aimed specifically at the facilitation and incentivisation of national enterprise development from start-ups to growth companies. The action plan is a whole-Government plan with a national focus across all regions. The Enterprise Development agencies will be at the forefront of implementing the Action Plan for Jobs across all regions and will ensure enterprises can maximise their contribution to economic and jobs growth. IDA Ireland’s strategy document, Horizon 2020, sets out the agency’s targets for the 2010-14 period. These targets include creating 63,000 new jobs in Ireland over that time and securing 50% of these investments to locations outside Dublin and Cork. The agency has invested heavily in the provision of property solutions tailored to meet the requirements of investors and has developed a network of high-quality Business Parks in locations throughout the Midlands and West regions. There are a total of 120 IDA-supported companies employing over 17,500 people between both regions reflecting the considerable success that has been achieved in attracting high quality investment to both regions.
A total of nearly €15 million was paid to Enterprise Ireland client companies in the Midland and Western regions in 2011, supporting more than 18,000 jobs. Of the 92 High Potential Start-ups assisted by Enterprise Ireland throughout the country in 2011, four are based in the Midlands region and eight in the West. As part of our support for early stage entrepreneurs, I announced an investment of €50,000 by Enterprise Ireland in each of four start-up companies in the West Region on 25 September 2012. In addition, the Taoiseach announced the €200,000 Competitive Feasibility Fund for the West Region. Support of up to 50% of eligible expenditure up to €25,000 per project is available and 17 October is the application deadline. Following Exporting Awareness Events last March and May in Athlone and Galway respectively, further Get Export Ready Workshops were held in Athlone in April and in Galway in June and July 2012, with another event planned for 23 October 2012 in Tullamore. Community Enterprise Centres located in both regions were approved funding under the Community Enterprise Centre Business Development Funding. This programme supports funding of the creation of, or maintenance of, a business development function within the enterprise centres concerned.
In 2012, County and City Enterprise Boards in the Midlands and Western regions have allocated approximately €900,000 in support of over 100 Micro Enterprise Projects. The Micro Finance Loan Scheme, which was launched last week, will initially facilitate €40 million in additional lending to businesses employing not more than ten people over the next five years, with provision for the scheme to be extended to provide an additional €50 million of lending over a further five years at that point. Start-ups, sole traders and existing micro-enterprises will be eligible to apply for a loan under the Scheme. In addition, the Credit Guarantee Scheme will also facilitate €150 million per annum in additional lending for SMEs who, because of a lack of collateral or because of the sector they operate in, face difficulties in accessing traditional bank credit. I am confident that the activities and initiatives being delivered by the Enterprise Development agencies and the County and City Enterprise Boards in both regions will continue to promote investment and employment opportunities among the communities concerned. These will be kept under review as part of the Action Plan for Jobs of 2013.
