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Thursday, 18 Oct 2012

Written Answers Nos. 152-163

Job Creation Issues

Questions (152)

Dan Neville

Question:

152. Deputy Dan Neville asked the Minister for Jobs, Enterprise and Innovation the position regarding the Industrial Park West of Askeaton, County Limerick, which comprises of 240 acres; if he will appoint a person to look at this industrial park with a view to try and get some industry into same and have necessary jobs created; and if there has ever been a feasibility study done by his Department or any reports on this industrial park with a view to attracting industry to the area. [45459/12]

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Written answers

I wish to inform the Deputy that the Askeaton Business Park is owned by Shannon Development and is one of the main sites available for industrial development in County Limerick. The park continues to be marketed by Shannon Development in conjunction with IDA Ireland and Enterprise Ireland, as well as Limerick County Council. The recent work to improve the N69 road from Limerick to Foynes will assist in the ability to market the location, and Shannon Development has had discussions with the Shannon Foynes Port Authority about jointly promoting the business park for businesses that would primarily locate there due to the proximity to Foynes Port.

The Deputy will be aware that the Government decided, in principle last May, to separate Shannon Airport from the DAA and bring it together with a restructured Shannon Development to create a new Shannon entity with a commercial mandate in public ownership. As a consequence of this decision the Government appointed a Steering Group and two task forces to examine the various issues involved. As part of the overall process discussions are currently on-going with Shannon Development, Enterprise Ireland and IDA Ireland regarding the most appropriate use of lands which currently fall under the ownership of Shannon Development. I am not aware of any feasibility study having been undertaken in relation to the business park.

Job Creation Issues

Questions (153)

Peadar Tóibín

Question:

153. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will provide in tabular form, for each jobs announcement by an Industrial Development Agency client company, the number of additional jobs expected to be created and relevant timeframe, any amendment to the number of jobs created as per adjustments to grant aid; the number employed at the client company at the time of the announcement; and the numbers employed at the last time such data was available for each of the past five years. [45475/12]

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Written answers

Details of IDA Ireland’s investment announcements for the past 5 years are available on the Agency’s website at www.idaireland.com. The listing includes, where appropriate, the number of potential jobs announced by the individual company. The Forfás Annual Employment Survey reports on job gains and losses in companies that are clients of the industrial development agencies. Information is aggregated at county level. Information on job numbers is provided by companies on a confidential basis for statistical purposes only. Jobs announced are typically created over a period of between three to five years depending on the company’s business plan.

Industrial Development

Questions (154)

Peadar Tóibín

Question:

154. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will detail the information requested by the Industrial Development Agency as part of the monitoring progress for financial assistance from client companies. [45476/12]

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Written answers

When approving financial assistance for a company, IDA Ireland, which is a statutory body, enters into a legal and binding contract with that company. The contract, which is confidential between IDA Ireland and the company, includes conditions and milestones with which the company is required to comply before any financial assistance is paid. In order to draw down grants, a company must meet the performance targets as set out in the contract. IDA Ireland pays grants pro rata with achieved performance. Companies sign a grant agreement in full knowledge that the penalty for non-performance is pro rata repayment of the grant. In cases where companies have not achieved the agreed performance target or, in the event of a company closure, IDA Ireland will seek to recover the grants paid.

Foreign Direct Investment

Questions (155)

Peadar Tóibín

Question:

155. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will detail the average lead in time, from first engagement to a jobs announcement by the Industrial Development Agency client companies. [45477/12]

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Written answers

The business of securing foreign direct investment is a complex one. I understand from IDA Ireland that, depending on the size and scale of the project, the lead in time from first engagement to job announcement can vary from 12 months upwards. A number of factors have an impact on this timeframe. For example, a large multinational may require its own board approval for large investment whereas a smaller emerging business/ financial service company may not. The sector and business activity can also have an impact. With Pharmaceutical/Medical Technology companies or large ICT companies, a fit out or new build may be required. Finally, deciding on a location can also be a contributory factor. Normally a company is shown three or four selected towns which could meet its requirements for skills, labour, site and/or buildings, infrastructure, etc. and while IDA Ireland will seek to influence the selection of location, the final decision on the location of and the announcement to proceed with the project is taken in all cases by the promoting company.

Employment Appeals Tribunal

Questions (156)

Jack Wall

Question:

156. Deputy Jack Wall asked the Minister for Jobs, Enterprise and Innovation the position regarding the Employment Appeals Tribunal in regard to the number of applications pending; the waiting period for an application to be processed; his plans to reorganise the Tribunal in regard to easier access and quicker turnover of applications; and if he will make a statement on the matter. [45498/12]

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Written answers

The Employment Appeals Tribunal is independent in the exercise of its quasi-judicial function and I have no direct involvement in its day to day operations. The Tribunal hears claims under 18 separate pieces of legislation, some of which are lodged as direct claims to the Tribunal and others which come to the Tribunal by way of appeal or implementation of a Rights Commissioner’s recommendation/decision. The Tribunal has seen a significant increase in its caseload in recent years, as it is one of the front-line services directly impacted upon by the economic downturn. The largest increase in claims has been in redundancy appeals but other types of claims have also increased. Regrettably this has had the unfortunate consequence of increasing the time it takes for a claimant to have his or her case heard. All appeals are listed for hearing in accordance with their date of lodgement with the Tribunal.

Despite the significant increase in the volume of claims, the Tribunal has been pro-active in seeking to manage the caseload to maximise efficiency. As part of the drive for efficiencies the Tribunal streams cases, of similar types where possible or where the parties are the same. These efficiencies have resulted in quicker turnover and improvements to the service provided and delivered significant increases in output and the number of cases disposed of, in 2010 (+30%), 2011 (+11%) and a further marked increase to date in 2012. The number of claims awaiting hearing at the end of Q3 2012 is 4,311. There has been a continued reduction in the number of claims awaiting hearing since Q1 2011. However, of the total number of claims received by the Tribunal, approximately 25% to 35% of these claims are Unfair Dismissal claims. Due to the contested nature of unfair dismissal cases, a very significant but varying amount of the Tribunal’s time is given to these hearings.

I am informed that the waiting periods at the end of September 2012, ranged from 9 weeks to 94 weeks. The reason for the variance in these waiting times is because the Tribunal conducts hearings in about 36 locations. Where the number of cases is relatively small, the Tribunal may wait until a sufficient number of cases are on hand so as to maximise value for money. Once a critical mass of hearings is assembled, 5 days of hearing in a single location can reduce the waiting time in the area concerned significantly. I have asked the Tribunal to examine if further efficiencies can be achieved through rationalizing their hearing venues. Delays are also impacted upon by the number of postponement or adjournment applications made by either party. I understand that the Tribunal targets areas with the longest waiting period and highest level of claims outstanding; using the resources it has currently available. The Tribunal is actively working to meet this challenge, notwithstanding the high level of claims in recent years and the administrative resources available.

I believe it is essential that we have efficient and effective mechanisms to develop harmonious and productive workplaces and to assist employers and employees to avoid and resolve disputes. When I came into office last year I inherited a system for resolving employment disputes that did not achieve this. The system was frustrating for employers, employees and professionals representing them. Notwithstanding the efforts of the EAT and others to reduce backlogs, I believe the delays that users of the service are experiencing are unacceptable.

It is for these reasons I am undertaking a root and branch reform of all five Workplace Relations Bodies. The Reform programme I have commenced will deliver a World-Class Workplace Relations structure. I propose to establish a two-tier Workplace Relations structure. This means that from next year two statutorily independent bodies will replace the current five. We will have a new single body of first instance to be called the Workplace Relations Commission and a separate appeals body, which will effectively be an expanded Labour Court. All complaints will be dealt with by a single body of first instance where the aim will be to have a hearing within three months from the time the case is lodged.

The activities of the Labour Relations Commission, the National Employment Rights Authority, the Equality Tribunal and the first instance functions of the Employment Appeals Tribunal and the Labour Court will be merged into the new Body of First Instance, to be known as the Workplace Relations Commission (WRC). The appellate functions of the Employment Appeals Tribunal will be incorporated into an expanded Labour Court. Work has commenced on the drafting of a Workplace Relations Bill to give effect to the new two-tier structure. I fully expect the work that I have initiated with regard to the reform of the Workplace Relations Bodies, including the EAT, to significantly improve the quality of service to users including a reduction in waiting times.

Since I announced my reform proposals we have undertaken two public consultation processes; published two policy documents; published a new website; introduced a single complaint form and single contact portal and commenced delivery of an Early Resolution Service. In addition we have prepared the Scheme of the Workplace Relations Bill and secured Government Approval for priority drafting of the Bill.

Significant progress has been made to date which means we now have:

- A new single contact portal called “Workplace Relations Customer Services” dealing with all Workplace Relations complaints which has replaced the five separate entry points.

- Complaints are now acknowledged, on average, within a week of receipt. This was previously taking up to eight months in some cases.

- The employer is also notified, on average, within a week of the complaint being lodged thus increasing the possibility of a resolution being reached without the need for a hearing. Again this was taking up to eight months

- There are now no backlogs for Rights Commissioner hearings.

- A Single Complaint Form that deals with over 100 first instance complaints has replaced the 30 forms previously in use.

- A new workplace relations interim website www.workplacerelations.ie is in place.

- A pilot Early Resolution Service is now seeking to resolve disputes at an early stage without the need for adjudication.

I am determined to progress the next phase of the reform and the enactment of the legislation with the same determination and priority that has delivered excellent results so far.

Industrial Development

Questions (157)

Patrick O'Donovan

Question:

157. Deputy Patrick O'Donovan asked the Minister for Jobs, Enterprise and Innovation when he will introduce legislation on the changes in responsibility for Shannon Development and the way it is expected that the change will affect the promotion and use of lands in County Limerick that are currently in the ownership of Shannon Development; and if he will make a statement on the matter. [45519/12]

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Written answers

The Deputy will be aware that the Government decided, in principle last May, to separate Shannon Airport from the DAA and bring it together with a restructured Shannon Development to create a new Shannon entity with a commercial mandate in public ownership. As a consequence of this decision the Government appointed a Steering Group and two task forces to examine the various issues involved. The Steering Group and task forces are due to report back to Government before year end and their work will also include recommendations as to the future ownership of assets owned by Shannon Development. As part of the overall process discussions are currently on-going with Shannon Development, Enterprise Ireland and IDA Ireland regarding the most appropriate use of lands which currently fall under the ownership of Shannon Development. Shannon Development currently has a range of property in County Limerick, the largest of which are National Technology Park, Raheen Business Park and Askeaton land bank. The company also has smaller business parks in Newcastle West, Kilmallock, Askeaton and Abbeyfeale.

The Deputy will also be aware that I recently announced a legislative change which will shortly remove the restriction on IDA Ireland and Enterprise Ireland in providing their services in the Shannon Free Zone. The requirement for further legislative change in relation to the promotion of Shannon Development’s lands in Limerick, and if any such change is required, will become clearer once the Steering Group and task forces have completed their work and report back to Government.

Redundancy Payments

Questions (158)

Noel Coonan

Question:

158. Deputy Noel Coonan asked the Minister for Social Protection when a redundancy payment will be finalised for persons (details supplied) in County Tipperary; and if she will make a statement on the matter. [45398/12]

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Written answers

On the 7th December 2011 this matter was heard before the Employment Appeals Tribunal (EAT) with 22 appellants seeking a redundancy payment. The EAT upheld that 20 of the 22 appellants were entitled to a statutory redundancy payment from their former employer, the organisation to which the Deputy refers. The appeals of the other two appellants were withdrawn at the hearing. Following the EAT decision, redundancy lump sum claims in respect of the 20 eligible employees were received by the Department. The 20 claims have been awarded and payment of their statutory redundancy entitlement, issued directly to those former employees in May 2012. The Department has no outstanding statutory redundancy payment claims on hand in respect of the organisation to which the Deputy refers.

Rent Supplement Scheme Eligibility

Questions (159)

Willie O'Dea

Question:

159. Deputy Willie O'Dea asked the Minister for Social Protection the reason the rates of rent supplement differ significantly between the areas of North Tipperary and South Tipperary and his plans to change this situation. [45425/12]

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Written answers

The purpose of the rent supplement scheme is to provide short-term support to eligible people living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. The overall aim is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer. There are approximately 90,000 persons in receipt of rent supplement for which the Government has provided €436 million in 2012.

The State plays a major role in the private rental market through the rent supplement scheme. As the Department currently funds approximately 30% of the private rented sector it is essential that State support for rents are kept under review and reflect current market conditions. Revised maximum rent limits came into force on 1 January 2012 and are in place until June 2013. These limits were set after an analysis of the most up to date market data available. Any price differential between North and South Tipperary was based on the analysis of their respective local rental markets. The emphasis of the rent limit review was to ensure that maximum value for money for tenants and the taxpayer was achieved whilst at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation.

Analysis of the rental market shows that for both North Tipperary and South Tipperary there are properties available for rent supplement recipients. The Department will continue to monitor rent levels throughout the country but at this point I have no immediate plans to revise the existing rent limits. The next review of rent limits will take place before June 2013 and any changes to the limits in Tipperary will be considered as part of this review.

Mortgage Interest Supplement Payments

Questions (160)

Willie O'Dea

Question:

160. Deputy Willie O'Dea asked the Minister for Social Protection if he will review and outline the system of checks and balances of the way the mortgage interest supplement is being used, to ensure that the recipient is passing all money onto the financial institutions. [45426/12]

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Written answers

Mortgage interest supplement (MIS) provides short-term income support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. There are currently approximately 16,000 mortgage interest supplement recipients for which the Government has provided €51 million for in 2012. From 18 June 2012, applicants for MIS must comply with an alternative payment arrangement agreed with their lender for a cumulative period of not less than 12 months prior to becoming eligible for the scheme. The underlying principle of this legislative change is to ensure that MIS eligibility criteria reflect the forbearance arrangements set out in the Mortgage Arrears Resolution Process (MARP). Part of the MIS eligibility criteria includes the provision of written evidence that applicants have engaged with his/her mortgage service provider under the MARP.

There are standard controls which form part of the day-to-day administration of the mortgage interest supplement scheme. This includes a number of operational controls in place to ensure that payment of mortgage interest supplement does not continue to those who no longer have an entitlement such as regular review of claims. These reviews include the provision of information by the claimant and a statement on the current position of the mortgage from the mortgage provider. In addition warning reports are issued to officers where there is a change in circumstances which would prompt a review of entitlement. The delivery of services and control related functions in relation to processing MIS applications is subject to on-going review.

Question No. 161 withdrawn.

Disability Allowance Appeals

Questions (162)

Niall Collins

Question:

162. Deputy Niall Collins asked the Minister for Social Protection the position regarding disability allowance appeal in respect of a person (details supplied) in County Cork. [45436/12]

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Written answers

The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 16th July 2012. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought. These papers were received in the Social Welfare Appeals Office on 11 October 2012 and the case will be referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

Domiciliary Care Allowance Applications

Questions (163)

Noel Coonan

Question:

163. Deputy Noel Coonan asked the Minister for Social Protection when an application for domiciliary care allowance will be finalised in respect of a person (details supplied) in County Tipperary; and if she will make a statement on the matter. [45465/12]

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Written answers

An application for domiciliary care allowance (DCA) was received on the 2nd July 2012. This application was referred to one of the Department’s Medical Assessors who found that the child was not medically eligible for DCA. A letter issued on the 20th August 2012 advising of the decision not to allow the application.

The person concerned supplied further information and the case has been forwarded to another of the Department’s Medical Assessors for further consideration, including a review of the new information supplied. Upon receipt of the Medical Assessor’s opinion, the application will be further reviewed and the person concerned will be notified of the position.

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