Skip to main content
Normal View

Tuesday, 2 Oct 2012

Written Answers Nos. 75-95

EU Funding

Questions (75)

Brendan Griffin

Question:

75. Deputy Brendan Griffin asked the Minister for Jobs; Enterprise and Innovation if County Kerry's status for grant aid will be more favourable in view of the lack of foreign direct investment in the county; if he will acknowledge that County Kerry is a very poor neighbour to the bordering counties of Cork and Limerick in the context of foreign direct investment; if any follow ups have been made by the Industrial Development Agency to companies that have relocated from County Kerry to the far east such as those (details supplied) to ascertain if there is any possibility of a return to County Kerry due to unforeseen difficulties at the new locations; and if he will make a statement on the matter. [41253/12]

View answer

Written answers

The Regional Aid Guidelines govern the areas in which Member States may grant regional aid, more commonly known as investment aid. Investment aid is intended to promote the economic development of certain disadvantaged areas within the European Union in order to redress regional disparities. The current Regional Aid Map for 2007-13 was drawn up in accordance with the Commission’s Regional Aid Guidelines. The details of the support in terms of aid intensity for each county are available on my Departments website.

Under the approved map, Kerry, Limerick, Clare, North Tipperary and the Cork Urban Regeneration area retained entitlement to Regional Aid from 2007 to 2013 for small and medium sized firms at the higher aid rates permitted for such firms under the Regional Aid Guidelines.

The process of Member States agreeing the 2014-2021 Regional Aid Guidelines has begun. The Commission is due to forward proposals to Member States in the coming months documenting the structure and provisions that will form the basis of the revised Guidelines. My Department is leading an interagency group that is currently examining issues around the new guidelines, including which counties could be included in the next map. The group will be examining all counties without prejudice as to their status in the revised group.

In accordance with its Horizon 2020 Strategy, IDA Ireland is aiming to create 63,000 direct jobs in 640 investments over the period 2010 to 2014, with 50% of these investments located outside of Dublin and Cork. The Agency has pointed out that, as it competes for high quality foreign direct investment (FDI), the concept of scale is crucial. Leading global corporations require a significant population pool, access to qualified talent, world standard physical and digital infrastructure coupled with the availability of sophisticated professional and business support services. Ireland has only one Metro Region, the Greater Dublin area, so, in order to achieve regional economic development, IDA prioritises the marketing of Gateway locations within each Region as the locations of critical mass (i.e. sufficient scale of population, skills, infrastructure, companies, business services etc.) and highlights the opportunities provided by other locations on an opportunistic basis, which are within commuting distances of these Gateways. The Gateways in the Mid-West and South West Regions include Limerick and Cork. With continuing enhancement and improvements in physical and digital infrastructure, an FDI project secured for one Gateway Economic Region has a positive impact on other Gateway Economic Regions and their surrounding areas.

At the end of 2011 there were 12 IDA Ireland supported companies in Kerry employing in the region of 1,300 people. IDA Ireland has assured me that it will continue to promote Kerry in response to specific client queries and on an opportunistic basis. Approximately 70% of all FDI secured for Ireland is from the existing base of multinationals. Accordingly, IDA Ireland has retained strong relationships with its existing client base across the country and will continue to work closely with them to ensure their long term sustainability and to encourage their growth, development and the broadening of their mandate with a view to continuing re-investment in their sites.

When IDA becomes aware that one of its client companies is considering downsizing or closing down its activities in Ireland, IDA engages with senior management in the company is question, both at local and corporate level, in an effort to persuade that company to alter its decision. However, in all cases it is the company who makes the final decision.

Economic Competitiveness

Questions (76, 255)

Peadar Tóibín

Question:

76. Deputy Peadar Tóibín asked the Minister for Jobs; Enterprise and Innovation if he has analysed the cost structure of Irish business and developed methods of reducing the cost base to allow businesses create jobs. [41593/12]

View answer

Bernard Durkan

Question:

255. Deputy Bernard J. Durkan asked the Minister for Jobs; Enterprise and Innovation the extent to which various costs continue to act as a disincentive to job expansion in existing enterprises in the manufacturing and services sectors; and if he will make a statement on the matter. [42064/12]

View answer

Written answers

I propose to take Questions Nos. 76 and 255 together.

The National Competitiveness Council (NCC) periodically publishes a report on the “Costs of Doing Business in Ireland”. This report benchmarks business costs against a range of Ireland’s key competitor countries in a number of key areas, such as labour costs, property costs, utility costs and business and professional services. The report also provides an analysis of cost profiles of the manufacturing and services sectors.

In its most recent Cost of Doing Business report, published in 2011, the NCC identified improvements in Ireland’s competitiveness, particularly in relation to labour costs and property costs. However, the NCC also advised that further progress is required to ensure that Irish enterprises can compete internationally.

Some operating costs for business are largely outside the control of Government. For example, fuel and energy prices are primarily driven by external factors such as global fossil fuel prices. However, the Government’s approach has been to identify those areas of policy it can influence to bring about cost reductions or provide supports to business.

The Action Plan for Jobs 2012 includes an extensive range of measures across Government which will help to reduce costs and support job creation. These include:

- Reforming the statutory wage setting mechanisms;

- Reducing the administrative burden on business;

- Placing downward pressure on insurance costs through the enactment of the Legal Services Bill;

- Encouraging all professionals to supply quotes in advance to business customers; and

- Encouraging local authorities to exercise restraint in the setting of commercial rates.

The Government is making good progress on implementing the Action Plan for Jobs. All of the 160 measures for delivery in the first half of the year have been implemented.

The Government will continue to deliver on its commitments in the Action Plan for Jobs, to work towards the objective of supporting an extra 100,000 jobs in the economy by 2016 and making Ireland the best small country in which to do business.

Job Initiatives

Questions (77)

Michael Colreavy

Question:

77. Deputy Michael Colreavy asked the Minister for Jobs; Enterprise and Innovation if he will outline the way in which the proposed industry-led clustering proposals will address or exasperate existing regional employment disparities. [41609/12]

View answer

Written answers

Collaboration and clustering is a proven strategy that provides potential for economies of scale and access to opportunities that would be outside the capability or scope of a business working on its own. A number of sectors have potential to progress clustering, particularly in the guise of collaborative industry-led networks which seek to identify mutual objectives which if tackled collaboratively, can have a positive impact on the capability of companies to grow and create employment, wherever they are located. Clustering can be geographically focused, but with advanced technologies and communications, it can be sectorally focussed and operate across regions. Collaboration between companies is a proven method of enhancing economic performance. Benefits of collaboration include: enhanced productivity and income; increased market share; increased innovation and knowledge transfer; and enhanced capability.

One of the Action Points (2.4) in the Plan is to support industry-led clustering in key areas of opportunity, based on new models, industry proposals, and newly developed niche market strategies and in July last, I announced a new €2m pilot Clustering Programme designed to promote cooperation between businesses and create more jobs. The Programme is a joint agency initiative, involving Enterprise Ireland, IDA Ireland and Forfás. The goal of this Programme is to support time limited collaborative projects that will achieve measurable benefits to members of the group by addressing the needs of participant companies e.g. sectoral/sub-sectoral development initiatives, supply-chain optimisation, realising economies of scale, exploring export market opportunities and potential convergence opportunities.

Projects must involve a minimum of five companies. The initiative is aimed at a broad range of businesses serviced by the Enterprise Development Agencies. Clusters will also be encouraged to seek to find members from other jurisdictions, including Northern Ireland.

Clusters are proven catalysts of change and companies engaging in collaborative activities can improve their productivity and compete more effectively in domestic and overseas markets, thereby sustaining and creating much needed jobs across the economy.

This pilot programme offers two phases of funding support: Phase 1 Feasibility and Phase 2 Facilitation. 29 applications were received in the first call, which closed on 18 September, of which 22 were for Phase 1 support and 7 were for Phase 2 support. The applications received represent a broad range of companies from across different regions, industry sectors and State Agencies. Applications are currently being reviewed, by a committee comprising of officials from EI, IDA and Forfás, and funding will be awarded to successful applicants in October/November.

Job Initiatives

Questions (78)

Brendan Griffin

Question:

78. Deputy Brendan Griffin asked the Minister for Jobs; Enterprise and Innovation his plans to stimulate activity and jobs in the construction sector; and if he will make a statement on the matter. [41254/12]

View answer

Written answers

The Action Plan for Jobs 2012 identifies a number of key economic sectors which the Government will focus on to promote employment opportunities, including Construction. Among the key actions identified for the Construction sector is the development of a National Strategy to 2015, which will outline the opportunities, challenges and actions needed to realise the potential of the sector. Work has already commenced on this Strategy, and initial consultations have taken place with key stakeholders. I expect the Strategy to be completed by the end of this year.

Enterprise Ireland (EI) is assisting Construction companies to expand their presence in key geographic territories, to target project opportunities in emerging markets in the Middle East and Africa as well as helping them access other international market opportunities.

To achieve these objectives, Enterprise Ireland has in place a range of direct supports to assist established client companies including those in the Construction sector. EI maintains a network of offices to ensure it reaches out to support entrepreneurs and established companies throughout the country. A dedicated unit within Enterprise Ireland - the Potential Exporters Division - holds responsibility for responding to the development needs of such companies; promoting and advocating the export agenda; proactively promoting a range of tailored services, initiatives and grants; helping companies easily access EI services and financial supports; proactively identifying and stimulating companies that demonstrate the potential to grow and establish a developmental agenda with those particular companies. In addition, the Government’s recently announced €2.25bn infrastructure stimulus package should provide significant opportunities for job creation in the Construction sector.

Credit Guarantee Scheme Implementation

Questions (79)

Dessie Ellis

Question:

79. Deputy Dessie Ellis asked the Minister for Jobs; Enterprise and Innovation when the credit guarantee scheme will be operational. [41614/12]

View answer

Written answers

As the Deputies will be aware, the Oireachtas enacted the Credit Guarantee Act 2012 in July 2012. The Act was commenced and came into operation on 30 August 2012. I have now made, with the consent of my colleagues the Minister for Finance and the Minister for Public Expenditure and Reform, a necessary scheme under section 5 of the Act. The Scheme, which is Statutory Instrument number 343 of 2012, was laid before the Oireachtas on 13 September.

Officials in my Department are working on the final arrangements in conjunction with the participating banks and the Operator of the Scheme, Capita Assets Services, and the scheme launch is imminent.

Trade Missions Numbers

Questions (80)

Jonathan O'Brien

Question:

80. Deputy Jonathan O'Brien asked the Minister for Jobs; Enterprise and Innovation the number of trade missions he plans to attend in 2013. [41619/12]

View answer

Written answers

In general, proposals for Ministerial led trade missions are developed by Enterprise Ireland on the basis of priority markets and specific sectoral interests of EI client companies. Enterprise Ireland’s proposals for 2013 are currently under consideration by the agency and have not yet been finalised. Once finalised Enterprise Ireland will submit these proposals to me and to the Minister for Foreign Affairs and Trade, reflecting the close involvement of both our Departments in trade-related matters. The proposed schedule will take account of Ireland’s Presidency of the EU that will place particular demands on Ministerial time during the first half of 2013. For the remainder of 2012, a number of trade missions are planned that will include emerging markets such as Brazil, South Africa, India and Malaysia/Vietnam as well as to Italy, Japan, the UK and Canada where our exporters are already well established. Their purpose is to bring Irish businesses into direct contact with business opportunities abroad. Such missions are a valuable support to Irish businesses, in terms of establishing their credibility with and gaining access to the business community in the target market. This is particularly the case in countries where government-to-government contacts are a prerequisite for doing business. These trade missions are an integral part of the work of relevant Government Departments and Agencies to develop and expand Ireland’s exports to existing and new markets. They raise Ireland’s profile as a world–class supplier of goods and services and contribute to the generation of incremental sales to foreign markets over the long-term.

Question No. 81 answered with Question No. 64.

Unemployment Levels

Questions (82)

Pearse Doherty

Question:

82. Deputy Pearse Doherty asked the Minister for Jobs; Enterprise and Innovation his views on the fall in labour force by 95,000 in the age group 20-34 over the past two years. [41597/12]

View answer

Written answers

The Quarterly National Household Survey report published on 19th September records the total number of persons in the labour force in the second quarter of 2012 as 2,096,400. This represents a decrease of 29,500 (-1.4%) over the year and compares with an annual labour force decrease of 26,800 (-1.2%) in the year to Q2 2011.

The National Skills Bulletin published by the Expert Group on Future Skills Needs (EGFSN) on 25 July 2012 observes that the trend of a shrinking labour force has continued, albeit at a slower pace since 2010. The labour force declined by 0.6% and it was estimated that there were 25,500 fewer persons either at work or seeking work during 2011 when compared to 2010.

According to the Quarterly National Household Survey report there were 752,500 persons aged 20-34 in the labour force in Q2 2012, while in Q2 2010 it was 837,400. Based on this data, the difference in the levels of labour force participation is accordingly 84,900 rather than the figure of 95,000 mentioned by the Deputy.

Looking specifically at the period between 2010 and 2011, the National Skills Bulletin commented on the marked deterioration in the labour market indicators for the younger age cohorts as follows:

- the younger age groups were relatively more affected by outward migration, with those aged 20-34 being particularly adversely affected

- despite the growth in the overall population, it is estimated that the number of persons aged 20-34 declined by almost 44,000

- the number of 20-34-year-olds participating in the labour force declined by approximately 40,000

- the number of unemployed persons aged 20-24 declined, the only age cohort for which a decline occurred

- the decline in the labour force participation rate was the sharpest for those aged 20-24.

The Government is tackling unemployment and the stabilisation of the employment rate through the twin strategies of the Action Plan for Jobs and Pathways to Work, which are together complemented by measures to ensure individuals are appropriately educated and trained to be able to avail of those job opportunities.

Job Creation

Questions (83)

Bernard Durkan

Question:

83. Deputy Bernard J. Durkan asked the Minister for Jobs; Enterprise and Innovation the number of jobs created by sector and salary scale in each of the past four years to date; the number of jobs lost by sector and salary scale in the same period; the extent to which evidence exists as to the long term sustainability of jobs created in the period in question; if it is expected to pursue any particular policy arising from the experience of the past four years; if manufacturing or the services sectors have shown a greater potential for recovery, job creation or expansion; and if he will make a statement on the matter. [41638/12]

View answer

Written answers

The Forfás Annual Employment Survey collates data on numbers employed in enterprise agency supported companies on an annual basis; however no data is compiled in relation to salary scales. Whole of economy data in relation to overall employment by sector and average pay by sector is available from the CSO’s website in the Quarterly National Household Survey and the Earnings and Labour Costs releases respectively.

The data on full-time agency supported employment in respect of jobs created and lost in the period 2008-2011 is set out on the table below by broad industrial sector.

The data indicates that after three years of heavy job losses in the period 2008-2010, the situation improved significantly in 2011 with a net overall increase of 4,439 full-time jobs in agency-supported employment. This improvement is apparent across all sectors. However, the International Services sector in particular shows a net increase of 3,752 in the numbers employed in 2011. It is also worth noting that the net change in the Manufacturing Sector showed only a slight reduction in numbers employed in 2011 in comparison to losses of almost 38,000 sustained in the previous three years.

The Action Plan for Jobs identifies a number of key targeted sectors in the Manufacturing and Services areas with the potential to create significant sustainable employment. The Action Plan identifies the challenges facing each sector and sets out the measures required to ensure these sectors achieve their potential. Ensuring that all of the measures in the 2012 Action Plan - and in the Action Plans for subsequent years - are implemented will provide the best means of ensuring that employment opportunities are maximised in each sector.

Full-Time Job Gains and Job Losses in Enterprise Agencies assisted companies

-

-

2008

2009

2010

2011

-

Job Gains

10,240

6,794

8,167

9,042

-

Job Losses

-20,327

-28,711

-14,289

-9,423

Manufacturing

Net Change

-10,087

-21,917

-6,122

-381

-

Job Gains

8,856

5,099

8,932

8,625

-

Job Losses

-7,055

-12,735

-7,429

-4,873

International Services

Net Change

1,801

-7,636

1,503

3,752

-

Job Gains

2,764

1,011

1,536

2,085

-

Job Losses

-1,169

-1,976

-1,672

-1,257

Financial Services

Net Change

1,595

-965

-136

828

-

Job Gains

1,624

1,058

1,753

1,286

-

Job Losses

-1,800

-3,903

-2,412

-1,046

Other Sectors

Net Change

-176

-2,845

-659

240

Overall

Net Change

-6,867

-33,363

-5,414

4,439

Small and Medium Enterprises Supports

Questions (84)

Mick Wallace

Question:

84. Deputy Mick Wallace asked the Minister for Jobs; Enterprise and Innovation his plans for targeted action to relieve pressure on small and medium sized businesses in the domestic economy in view of the fact that the pressure of keeping businesses open; and if he will make a statement on the matter. [41629/12]

View answer

Written answers

Supporting SME’s in the current difficult economic climate is a key Government priority. Government actions to relieve pressure on small and medium sized businesses in the domestic economy are set out in the Action Plan for Jobs published in February 2012 and reported on quarterly.

The Action Plan for Jobs is improving the operating environment and supports for job-creating businesses, and is removing barriers to employment.

The Plan details more than 270 actions and specifies the Government body responsible for implementation. The Q2 Progress Report shows that 72 out of 77 actions slated for delivery were delivered.

In addition to work under the APJ 2012 the government is also delivering on the findings of the Advisory group on Small Business. This Advisory Group chaired by Mr John Perry, T.D., published the Voice of Small Business Report in November, 2011. This report contained fifty-seven actions across twelve broad policy areas. Thirty-four of the Groups recommendations are being progressed through the APJ. The remaining 23 Actions are being considered in the context of implementation through the Action Plan for Jobs 2013.

The Deputy will also be aware that the Microfinance Scheme came into operation yesterday, 1 October. This scheme will facilitate €40 million in additional lending over the next five years to businesses employing up to 10 people. I also intend to announce the formal launch the Temporary Partial Loan Guarantee Scheme in the coming days. In addition, Government is making sure that Enterprise Ireland continuous to administer the Development Capital Scheme and the Innovation Fund. This is real evidence of Government getting involved in filling gaps in the market and supporting viable businesses.

We are making solid progress on this crucially important agenda and have already put place a number of measures that will make a practical difference in making it easier for businesses to grow and create jobs. We will redouble our efforts in the coming year with the Action Plan for Jobs 2013 to ensure that we deliver all possible support to business and relieve as much pressure as possible from business at this difficult time.

Joint Labour Committees Agreements

Questions (85)

Patrick Nulty

Question:

85. Deputy Patrick Nulty asked the Minister for Jobs; Enterprise and Innovation in view of the fact that the Joint Labour Committee legislation is now in place, when the process of re establishing the JLCs will commence; if he will expand the scope of JLCs to include additional categories of low paid workers; when he will establish the code of practice for Sunday working regarding compensatory arrangements for workers covered by JLCs; and if he will make a statement on the matter. [37886/12]

View answer

Written answers

The Industrial Relations (Amendment) Act 2012 was enacted on 24 July 2012 and commenced on 1 August 2012.

The new Section 41A of Industrial Relations Act 1946 (inserted by Section 11 of the Industrial Relations (Amendment) Act 2012) provides that the reviews of the JLCs will be carried out by the Labour Court, as soon as practicable after the commencement of the Act. The purpose of this provision, which was a recommendation contained in the Duffy Walsh Report, is to provide a means by which the scope of individual JLCs can be reviewed so as to ensure that the range of activities to which they relate remains relevant. I understand that work will begin on the process shortly. The outcome of these reviews will inform the Labour Court as to whether any JLC should be maintained in its current form, amalgamated with another JLC or its establishment order amended.

I have asked the Labour Relations Commission to begin work on the formulation of two Codes of Practice. The first, on Sunday Working, will provide guidance to employers, employees and their representatives in sectors covered by Employment Regulation Orders, on arrangements that may be put in place to comply with the options specified at section 14 of the Organisation of Working Time Act, 1997. The second will address the standardisation of benefits in the nature of pay – including overtime and the conditions under which it becomes payable – across sectors covered by JLCs. I understand that preparatory work on the two Codes is underway.

Labour Market Issues

Questions (86)

Gerry Adams

Question:

86. Deputy Gerry Adams asked the Minister for Jobs; Enterprise and Innovation the steps he intends to take to tackle the increasing casualisation of the labour market. [41596/12]

View answer

Written answers

Labour market flexibility needs to be complemented by support to workers enabling them to make smooth transitions between different types of labour market status (e.g. activation measures for the unemployed, training for employment, work experience options, transitions towards self-employment, etc.). The quality of transitions will determine the quality of a worker's career and the smooth functioning of the labour market.

Ireland has a comprehensive body of employment rights legislation which has among its objectives the protection of employees and the quality of transitions between different contractual arrangements. Specific areas covered by employment protection legislation include:

- Protection of part-time work

- Protection of fixed-term work

- Protection of temporary work

- Protection of persons engaged by temporary work agencies.

- Working time;

- Payment of Wages;

- Holidays;

- National Minimum Wage;

- Unfair Dismissal;

- Redundancy Payments;

- Protection of Young Persons;

- Transfer of Undertakings.

In general, Irish legislation mirrors the broader EU social protection framework in this area. The increase recorded in the August Live Register in the movement of unemployed persons into casual or part time work does facilitate labour market entry. Opportunities for up-skilling and further career development are essential to advance the inclusive growth objective and to provide individuals with the necessary means to maintain their employability and make transitions work.

Job Initiatives

Questions (87)

Brian Stanley

Question:

87. Deputy Brian Stanley asked the Minister for Jobs; Enterprise and Innovation the progress made to date in implementing the Forfás jobs plan for the South East. [41615/12]

View answer

Written answers

In accordance with the South East Employment Action Plan, which I initiated following the closure of the Talk Talk Call Centre, all the key State players are actively pursuing initiatives to facilitate development and job creation in the region. I travelled to Waterford in June last to meet the members of the South-East Forum and I was heartened to hear of the progress being made.

Foremost amongst these has been that Enterprise Ireland has supported the establishment of the Eishtec Call Centre in Waterford city, where employment had reached 230. This is a very significant achievement and other recent initiatives by Enterprise Ireland in the region included the approval of 14 high quality projects under their competitive feasibility fund, 12 companies being been approved for Graduate Placement. 5 Community Enterprise Centres having been approved for funding for full-time business development managers and a high take-up of the Enterprise Ireland Innovation Voucher scheme in Waterford.

The two local County Enterprise boards, in the city and county, have created 59 new jobs and the South East Regional Authority has secured EU funding for a number of enterprise and innovation-focussed projects.

FÁS training services having provided training for about 5,000 people and that Agency is also undertaking a wide range of other training initiatives. Several tourist initiatives are underway in the region and Science Foundation Ireland has funded 8 research awards to Waterford Institute of Technology.

Other developments include the first phase of the €23 million Belview Strategic Water Supply Scheme which was officially opened in February 2012. This will facilitate industrial development and job creation in Kilkenny and the South East. The total investment for this phase of the scheme is €13m. In March 2012, McDonald’s Ireland and Dawn Meats announced that Dawn Meats had been awarded a 5 year €300 million contract to process up to 18,000 tonnes of Irish beef annually for McDonald’s. The deal has led Dawn Meats to invest €14.5 million in a new purpose built, state of the art, beef processing facility in Carroll’s Cross, Co Waterford, creating 65 new jobs. This investment is supported by Enterprise Ireland.

I look forward to on-going co-operation and collaboration between all the various stakeholders across the South East region to pursue the Action Plan recommendations.

Employment Rights Issues

Questions (88)

Brian Stanley

Question:

88. Deputy Brian Stanley asked the Minister for Jobs; Enterprise and Innovation the steps he is taking to ensure the rights of workers regardless of migration status. [41616/12]

View answer

Written answers

The State has a significant body of employment rights legislation designed to protect workers. This legislation provides for certain statutory minimum rates of pay and conditions.

The State provides a number of mechanisms through which these statutory employment rights can be vindicated and enforced. These are provided through the National Employment Rights Authority (NERA), The Rights Commissioner Service, The Employment Appeals Tribunal (EAT), The Equality Tribunal and the Labour Court.

NERA seeks to secure compliance with employment rights legislation through the provision of education and awareness as well as through routine and complaint driven inspection of employers’ employment records. NERA also undertakes enforcement activity. Where an employer has been identified as being in breach of the legislation NERA will request that the employer rectify the breach. Where such a breach involves underpayment of wages due to an employee NERA will seek rectification for the employee by seeking payment of the monies due. Where an employer fails or refuses to rectify the breach or repay monies due NERA may initiate a prosecution.

Where people have concerns that workers may be exploited or are receiving less than their statutory entitlements the matter should be reported to NERA for investigation.

In other cases complaints may be made to Rights Commissioner Service, the EAT, the Equality Tribunal or the Labour Court depending on the nature of the complaint and the relevant legislation. The relevant body will convene a hearing where both parties will be afforded the opportunity to present their case and the relevant body will issue a determination or recommendation.

It has to be acknowledged that the system that has developed over the years has become complex and in some cases involves long delays. However, I have commenced a root-and-branch reform with the objective of establishing a world-class Workplace Relations Service. I am happy to report that significant progress has been made to date in that regard.

In addition to reforming the structures and processes, I also intend to provide for enhanced compliance measures and a new mechanism for enforcing awards of the Adjudicators and of Labour Court Determinations.

The mechanisms I have outlined above relate to people who are legally entitled to work in the state. A situation where an individual, whose immigration status prohibits him or her from working legally in the State, takes up employment and is thus working illegally is different. In such cases both the employer and the employee may be committing an offence. As the Deputy will be aware, from a recent High Court case, this may prevent a worker in such circumstances from seeking to benefit from the rights laid down in statute.

While NERA, and other authorities, could pursue convictions regarding an employer in breach of certain employment legislation and employment permits legislation, in cases where the employment is illegal, and may succeed in securing penalties on the employer, they are not in a position to seek redress for the employee in such circumstances. This is because a contract may be unenforceable if it is drawn up for an illegal purpose or in an illegal manner, or if the contract is prohibited by statute whether expressly or implicitly.

On Friday 31st August 2012, Mr Justice Gerard Hogan of the High Court reversed a Labour Court award on the basis that person concerned had no standing to invoke the protection afforded by employment legislation since any contract of employment was an illegal one in the absence of an employment permit which he did not have. Justice Hogan therefore held that the Labour Court could not lawfully have made the awards as the employment contract was substantively illegal.

The issue raised by the High Court judgment is one which has important policy and legal implications in the area of Employment Permits and also in terms of Employment Rights.

As Justice Hogan noted in his judgement, “the Oireachtas must, of course, regulate the labour market by specifically deterring illegal immigrants from taking up employment, as failure to do so could have serious medium term implications for both employment and immigration policy”. The relevant provisions of the Employment Permits Acts of 2003 and 2006 hold that where an employee, who was required to hold an Employment Permit, has failed to do so then he or she is guilty of an offence. Furthermore, while an employer may also be guilty of an offence in this matter, Justice Hogan points out that the legislation provides for a defence with regard to an employer but fails to do so with regard to an employee.

As I understand it, this lack of defence affects the Courts’ scope to interpret the statutory provisions and compels the Court to hold that the legislation has created an absolute offence so far as an employee is concerned. Importantly, Justice Hogan found that it must therefore be taken that the Oireachtas intended that a such a non-national employee automatically commits an offence if he or she does not have a work permit irrespective of the reasons for that failure and that this has implications so far as the civil law is concerned, in that such a contract of employment must also be taken to be void.

The question which now arises is to what extent illegal immigrants should be dissuaded from working illegally in Ireland by virtue of there being a statutory offence to do so, versus, to what extent certain employment rights shall protect vulnerable migrants who find themselves unwittingly in such employment positions.

The Deputy will recognise that this question requires careful consideration as the applicability of rights in one context can have far reaching consequences beyond that originally intended.

I wish to assure the Deputy that I am very concerned by the facts of this case and I will be meeting the individual concerned this week. My Department is treating the matter with the utmost importance and various policy options are currently being considered with a view to an early response.

National Minimum Wage

Questions (89)

Peadar Tóibín

Question:

89. Deputy Peadar Tóibín asked the Taoiseach the number of workers currently employed, by sector, with a remuneration level equal to the national minimum wage. [41250/12]

View answer

Written answers

The Earnings, Hours and Employment Costs Survey (EHECS) collects information from enterprises on the number of employees paid at or below the national minimum wage.

The table shows the results from this survey by economic sector for Quarter 1 2012, the latest period for which data is available.

Q1 2012

-

-

-

Economic Sector

Nu-mber of Employees on National Minimum Wage(NMW)*

Total Number of Employees

National Minimum Wage (NMW)   %

Industry

3,400

192,700

1.8

Construction

1,800

63,500

2.8

Wholesale and retail trade; repair of motor vehicles and motorcycles

18,800

275,800

6.8

Transportation and storage

1,500

61,000

2.5

Accommodation and food services

15,100

119,200

12.7

Information and communication

400

54,100

0.7

Financial, insurance and real estate

400

86,600

0.5

Professional, scientific and technical

1,200

67,600

1.8

Administrative and support services

1,800

72,200

2.5

Public administration and defence

100

111,500

0.1

Education

1,400

131,500

1.1

Human health and social work

2,800

212,900

1.3

Arts, entertainment, recreation and other service activities

3,500

47,400

7.4

Total

52,200

1,496,100

3.5

* This information is based on the following question from the EHECS Survey: -

National Minimum Wage

Number of full-time and part-time employees (i.e. exclude

apprentices/trainees) in receipt of €8.65 per hour or less at end of quarter.

Enterprise Statistics

Questions (90, 91)

Pearse Doherty

Question:

90. Deputy Pearse Doherty asked the Taoiseach if he will provide in tabular form the number of business startups on an annual basis from 1992 to 2011. [41523/12]

View answer

Pearse Doherty

Question:

91. Deputy Pearse Doherty asked the Taoiseach if he will provide in tabular form the total number of business closures on an annual basis from 1992 to 2011. [41524/12]

View answer

Written answers

I propose to take Questions Nos. 90 and 91 together.

The information sought by the Deputy is not available through the CSO for all of the years requested. However, the latest CSO Business Demography returns for 2010 were released on 22 June 2012 and the tables below provide data on business start ups and closures.

The terms used in this release are "enterprise birth" which refers to a new business start up, and "enterprise death", which is a business closure.

The CSO identifies enterprise births and deaths by using available economic indicators from administrative data (Revenue Trading returns in Corporate, Income, Employment and VAT activity). Data for 2011 is not yet available as it is dependent on the receipt of administrative data which are not filed until 2012 and are not fully available to CSO until 2013. Similarly, data for years prior to 2006 are not available as the related administrative data are unavailable.

The CSO Business Demography Statistics covers the whole business economy as classified by the standard European classification of economic activity i.e. NACE Rev2 B-N excluding activities of holding companies; K 64.20.

Table A contains the relevant data concerning enterprise births for 2006-2010 inclusive.

Table A: Enterprise Births for 2006-2010 inclusive.

Enterprise Births

2006

2007

2008

2009

2010

Business economy excluding activities of holding companies

16,696

13,461

11,954

13,810

11,237

Regarding enterprise deaths, the Deputy should be aware that two types of data are available. Preliminary deaths are available for the years 2006, 2007, 2008 and 2009, while final deaths are available for 2006, 2007 and 2008.

Preliminary deaths are those enterprises that are active during the reference year, but not in the subsequent year. Final deaths are those active in the reference year that are not active in either of the two subsequent years.

Preliminary deaths for 2010 require the full population of active enterprises for 2011, which is available in March 2013, so the 2010 preliminary deaths will be published in June 2013.

Tables B and C set out the relevant enterprise deaths data.

Table B: Preliminary Enterprise Deaths for 2006-2009 inclusive.

Preliminary Enterprise Deaths

2006

2007

2008

2009

2010

Business economy excluding activities of holding companies

11,939

17,263

20,601

24,511

n/a

Table C: Final Enterprise Deaths for 2006-2008 inclusive.

Final Enterprise Deaths

2006

2007

2008

2009

2010

Business economy excluding activities of holding companies

10,438

14,745

19,530

n/a

n/a

The Business Demography 2012 Press Release of 22 June 2012 is available at;

http://www.cso.ie/en/newsandevents/pressreleases/2012pressreleases/pressreleasebusinessdemography2010/

Unemployment Data

Questions (92, 93)

Pearse Doherty

Question:

92. Deputy Pearse Doherty asked the Taoiseach if he will provide in tabular form employment and unemployment levels as a percentage of the work force and in nominal terms on an annual basis from 1992 to 2011. [41525/12]

View answer

Pearse Doherty

Question:

93. Deputy Pearse Doherty asked the Taoiseach if he will provide in tabular form the number of people in long term unemployment as a percentage of the workforce and in nominal terms on an annual basis from 1992 to 2011. [41526/12]

View answer

Written answers

I propose to take Questions Nos. 92 and 93 together.

The Quarterly National Household Survey (QNHS) is the official source of estimates relating to the labour force. Estimates from the QNHS are available for each quarter since the first quarter of 1998, prior to that annual estimates were available from the Labour Force Survey (LFS).

The data requested by the Deputy is presented in the tables.

Persons aged 15 years and over "In employment" and "Unemployed" (Labour Force Survey)

Year

Labour Force '000

In Employment '000

Employment Rate % 1

Unemployed '000

Unemployment Rate % 2

Long-term Unemployment '000

Long-term Unemployment Rate % 3

1992

1,371.8

1,165.2

50.9

206.6

15.1

116.5

8.5

1993

1,403.2

1,183.1

51.1

220.1

15.7

125.4

8.9

1994

1,431.6

1,220.6

52.2

211.0

14.7

128.2

9.0

1995

1,459.2

1,281.7

54.0

177.4

12.2

103.3

7.1

1996

1,507.5

1,328.5

55.1

179.0

11.9

103.3

6.9

1997

1,539.0

1,379.9

56.1

159.0

10.3

86.3

5.6

Persons aged 15 years and over "In employment" and "Unemployed" (QNHS Quarter 2)

Year

Labour Force                        '000

In Employment   '000

Employment Rate % 1

Unemployed     '000

Unemployment Rate % 2

Long-term Unemployment '000

Long-term      Unemployment Rate % 3

1998

1,633.3

1,505.5

60.0

127.8

7.8

*

*

1999

1,706.9

1,605.9

63.1

101.0

5.9

40.2

2.4

2000

1,763.7

1,684.1

65.0

79.6

4.5

27.1

1.5

2001

1,807.4

1,738.0

65.7

69.4

3.8

20.3

1.1

2002

1,850.8

1,768.5

65.2

82.3

4.4

20.8

1.1

2003

1,886.7

1,800.0

65.2

86.7

4.6

26.2

1.4

2004

1,940.0

1,852.2

65.9

87.8

4.5

26.7

1.4

2005

2,040.4

1,944.6

67.5

95.8

4.7

29.2

1.4

2006

2,132.8

2,034.9

68.5

97.9

4.6

29.2

1.4

2007

2,217.0

2,113.9

69.2

103.1

4.7

28.8

1.3

2008

2,239.6

2,112.8

68.1

126.7

5.7

33.2

1.5

2009

2,203.1

1,938.5

62.5

264.6

12.0

57.3

2.6

2010

2,152.7

1,859.1

60.4

293.6

13.6

127.0

5.9

2011

2,125.9

1,821.3

59.6

304.5

14.3

164.2

7.7

2012

2,096.4

1,787.9

59.1

308.5

14.7

184.8

8.8

* Data not available

1The employment rate is the number of employed aged 15 to 64 expressed as a percentage of the total population aged 15 to 64.

2The unemployment rate is the number of unemployed expressed as a percentage of the total labour force.

3The long-term unemployment rate is the number of persons unemployed for one year or more expressed as a percentage of the total labour force.

Poverty Statistics

Questions (94, 95, 100, 101)

Pearse Doherty

Question:

94. Deputy Pearse Doherty asked the Taoiseach if he will provide the number of children living in relative poverty on an annual basis from 1992 to 2011. [41529/12]

View answer

Pearse Doherty

Question:

95. Deputy Pearse Doherty asked the Taoiseach if he will provide the number of children living in consistent poverty on an annual basis from 1992 to 2011. [41530/12]

View answer

Pearse Doherty

Question:

100. Deputy Pearse Doherty asked the Taoiseach if he will provide the number of people living in relative poverty on an annual basis from 1992 to 2011. [41531/12]

View answer

Pearse Doherty

Question:

101. Deputy Pearse Doherty asked the Taoiseach if he will provide the number of people living in consistent poverty on an annual basis from 1992 to 2011. [41532/12]

View answer

Written answers

I propose to take Questions Nos. 94, 95, 100 and 101 together.

Statistics on poverty are compiled from the Survey on Income and Living Conditions (SILC) which was introduced in 2004. The latest results are for 2010. The survey provides statistics on the at risk of poverty rate (the percentage of persons below 60% of median income) and consistent poverty (the percentage of persons who, in addition, are deprived of two or more material items from a list of eleven deprivation items).

The information requested by the Deputy is set out in the following tables.

Percentage of all persons at risk of poverty and in consistent poverty

Year

% at risk of poverty

% in consistent poverty

2004

19.4

6.6

2005

18.5

7.0

2006

17.0

6.5

2007

16.5

5.1

2008

14.4

4.2

2009

14.1

5.5

2010

15.8

6.2

Percentage of children (aged 0-17) at risk of poverty and in consistent poverty

Year

% at risk of poverty

% in consistent poverty

2004

22.7

9.2

2005

23.1

10.8

2006

22.3

10.3

2007

19.9

7.4

2008

18.0

6.3

2009

18.6

8.7

2010

19.5

8.2

Top
Share