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Wednesday, 21 Nov 2012

Written Answers Nos 109-116

Employment Rights Issues

Questions (109)

Nicky McFadden

Question:

109. Deputy Nicky McFadden asked the Minister for Jobs, Enterprise and Innovation if the rights of domestic workers will be protected by the ratification of the Domestic Workers’ ILO Convention, if Irish laws will be brought in line with international standards; and if he will make a statement on the matter. [51688/12]

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Written answers

Currently domestic workers in Ireland are protected by virtue of the fact that the full suite of employment rights legislation, including that of redress for violations of their employment rights, apply to domestic workers in the same way as they apply to other categories of employees in Ireland. Also NERA has carried out a programme of inspections involving Domestic Workers as well as continuing to respond to any complaints it receives from Domestic Workers.

A voluntary Code of Practice for Persons Employed in Other People’s Homes was developed under the Industrial Relations Act 1990. The Code sets out certain employment rights and practices for persons employed in other people’s homes and encourages good practice and compliance with the law in such employment situations. In any proceedings before a court, or a workplace relations dispute resolution body, a code of practice shall be admissible in evidence and any provision of the code which appears to the court, body or officer concerned to be relevant to any question arising in the proceedings shall be taken into account in determining that question.

The issue of ratification by Ireland of Convention No. 189 on decent work for domestic workers is being considered in the context of our standard approach to the ratification of international instruments. Ireland does not ratify international Conventions until any such necessary amendments to domestic legislation have been identified and effected.

The current situation in relation to the ratification process is as follows. A preliminary assessment of the implications of ratifying the International Labour Organisation’s Convention 189 on Domestic Workers is currently being finalised by my Department. The Assessment includes an Article-by-Article examination of the extent to which Domestic legislation provisions already provide for the Rights and Entitlements enunciated in each Article, as well as the extent to which any legislative amendments will be required. This assessment will then be forwarded to the Office of the Attorney General for their examination.

My officials have been in contact with EU Commission officials and I am aware that they are in the process of issuing a document to all its members in relation to the ratification of the Convention. I have asked the Commission to provide me with this document when it is available.

Employment Rights Issues

Questions (110)

Colm Keaveney

Question:

110. Deputy Colm Keaveney asked the Minister for Jobs, Enterprise and Innovation if he will detail the number of cases taken under Employees (Information and Consultation) Act 2006 that have been processed by the Labour Court and the Labour Relations Commission since 2006 to date; and if he will make a statement on the matter. [51689/12]

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Written answers

The purpose of the Employees (Provision of Information and Consultation) Act 2006, which implements EU Directive 2002/14/EC of the 11 March 2002, is to provide for the establishment of a general framework setting out minimum requirements for the right to information and consultation of employees in undertakings with at least 50 employees. It provides a general right to information and consultation for employees from their employer on matters which directly affect them.

The Act also transposes into Irish law an optional provision of EU Council Directive 2001/23/EC of 12 March 2001 dealing with the safeguarding of employees’ rights in the event of transfers of undertakings, businesses, or parts of undertakings or businesses.

The Act provides employees, in undertakings with at least 50 employees, with a general right to information and consultation from their employers. The intention behind the Act is to ensure that information and consultation is provided by employers systematically so that employees are able to acquire an informed understanding of the challenges faced by the business.

The Act came into operation on 24 July 2006. Since then 135 cases have been received under the Act by the Labour Relations Commission. 7 referrals have been made under the Act to the Labour Court.

Employment Rights Issues

Questions (111)

Colm Keaveney

Question:

111. Deputy Colm Keaveney asked the Minister for Jobs, Enterprise and Innovation the steps he is taking to promote greater use of the Employees (Information and Consultation) Act 2006; and if he will make a statement on the matter. [51690/12]

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Written answers

The Employees (Provision of Information and Consultation) Act 2006 came into operation on 24 July 2006. The purpose of the Act, which implements EU Directive 2002/14/EC of the 11 March 2002, is to provide for the establishment of a general framework setting out minimum requirements for the right to information and consultation of employees in undertakings with at least 50 employees. It provides a general right to information and consultation for employees from their employer on matters which directly affect them.

The Act also transposes into Irish law an optional provision of EU Council Directive 2001/23/EC of 12 March 2001 dealing with the safeguarding of employees’ rights in the event of transfers of undertakings, businesses, or parts of undertakings or businesses.

The Act provides employees, in undertakings with at least 50 employees, with a general right to information and consultation from their employers. The intention behind the Act is to ensure that information and consultation is provided by employers systematically so that employees are able to acquire an informed understanding of the challenges faced by the business. The Government recognises that timely information and meaningful consultation are prerequisites for the improved adaptability of Irish workplaces, which is vital to meet the challenges created by the globalised economy.

Research both at home and abroad demonstrates the tangible benefits that effective and meaningful information and consultation arrangements can bring to both the business and the individual. In modern society, organisations are undergoing continuous change driven by a complex combination of factors. It has been shown that effective information and consultation arrangements can help organisations improve their capacity to anticipate and manage change, leading to improved organisational performance and competitiveness.

Under Section 7 of the Act either an employer can initiate negotiations or employees can request negotiations to establish information and consultation arrangements. The Act provides the maximum flexibility to employers and employees to devise arrangements which best suit their own particular circumstances. So while providing certain legal requirements, the Act allows for the Irish voluntarist tradition to be maintained. It presents an opportunity to foster and deepen customised partnership-style approaches to anticipating and managing change.

Following enactment of the legislation in 2006, my Department published an Explanatory Booklet for Employees and Employers on the Provisions of the Act. This was later complimented by a Code of Practice (S.I 132 of 2008 Industrial Relations Act 1990 (Code of Practice on Information and Consultation) (Declaration) Order 2008) which was developed by the Labour Relations Commission. Both publications can be downloaded from www.workplacerelations.ie

My Department has also provided funding to IBEC and ICTU through the Workplace Innovation Fund to raise awareness of the legislation and to provide training for their members on the operational aspects of the legislation.

Youth Enterprise Initiatives

Questions (112)

Shane Ross

Question:

112. Deputy Shane Ross asked the Minister for Jobs, Enterprise and Innovation his plan he has to encourage youth entrepreneurship; if the Government has any plans to set up a youth entrepreneurship fund; if he sees the benefits in encouraging grant supports outside the areas of manufacturing and export; and if he will make a statement on the matter. [51723/12]

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Written answers

The Government established the Microfinance Loan Fund on 27 September 2012 to improve access to credit for entrepreneurs and micro-enterprises and to facilitate the growth and expansion of viable businesses from all industry sectors which have been refused access to credit by banks. The Fund has a significant entrepreneurship focus. It will add value to other Government schemes of support for entrepreneurs and unemployed persons, such as the Back to Work Allowance, the range of training programmes and the Seed Capital Scheme.

The Fund will provide support in the form of loans of up to €25,000, available to start-up, newly established, or growing microenterprises employing less than 10 people, with viable business propositions, that do not meet the conventional risk criteria applied by banks.

Microfinance Ireland (MFI), the company set up to operate the Fund, will work closely with the County and City Enterprise Boards (CEBs) / Local Enterprise Offices which provide assistance with training and preparing business plans for entrepreneurs. They will carry out an initial evaluation of the quality of business proposals/loan applications from entrepreneurs before sending same on to MFI for decision. The addition of microfinance will now enable the CEBs to deliver a wider suite of services to all entrepreneurs, namely grants, mentoring, soft supports and access to loan finance.

MFI and the CEBs are very conscious of the particular difficulties the youth sector faces with regard to credit history, previous business experience etc. and where they can assist young entrepreneurs, they will. However, the potential viability of the business proposal is the dominant factor in any credit decision made by Microfinance Ireland.

In addition to MFI and the CEBs, other sources of funding are available for example, the Seed Capital Scheme, business angels and E.I.I.S. While access to start-up finance through the various channels outlined is important to support youth entrepreneurship, other policy actions are equally important such as fostering entrepreneurship in students while at school or in third level education. Over 20,000 students now participate annually in the various CEB–supported programmes implemented in the education sector.

The Government continues to monitor the requirements of all business sectors regarding access to finance and in that context will continue to assess the needs of youth entrepreneurs in the light of the operation of the Microfinance Loan Fund and the availability of support from sources such as the EU, EIB and IMF. If there is a clearly identified need for a further targeted initiative to address market failure in this sector the matter will be addressed by relevant Departments.

IDA Portfolio

Questions (113)

Brendan Smith

Question:

113. Deputy Brendan Smith asked the Minister for Jobs, Enterprise and Innovation the position regarding a request by Monaghan County Council (details supplied); and if he will make a statement on the matter. [51754/12]

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Written answers

In accordance with the Industrial Development Acts, the management of IDA Ireland’s industrial property portfolio, including the purchase and sale of land, is a day-to-day operational matter for the agency. I have been in discussion with IDA Ireland about this matter and the Agency has explained to me that, in order to fully align with the strategic objectives set out in its strategy “Horizon 2020”, it is now focussed on maintaining its Business and Technology Parks in Gateway locations and its strategic sites, while simultaneously disposing of its non-core property assets located in legacy locations around the country.

I understand that the 7.56 Ha site in Knockanconny has been in IDA ownership since the early 1980’s. The lands are fully serviced and zoned for industry and employment use and are located approximately 3kms east of Monaghan Town Centre with nearby park occupiers including Monaghan VEC, the Revenue Commissioners, Special EU Programmes Body and Monaghan Mushrooms.

IDA Ireland has confirmed that, whilst the lands in Monaghan are on the market, IDA officials have met with the Monaghan County Manager to discuss the best utilisation of the lands for industrial and employment purposes. I am assured that discussions between IDA Ireland, Monaghan County Council and any third parties will continue to ensure the best utilisation of the lands at Knockaconny.

Economic Competitiveness

Questions (114)

Micheál Martin

Question:

114. Deputy Micheál Martin asked the Minister for Jobs, Enterprise and Innovation if his officials have made any recommendations following the most recent report from the National Competitiveness Council; if there are any outcomes from this in his own Department; and if he will make a statement on the matter. [49723/12]

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Written answers

The most recent report published by the National Competitiveness Council (NCC), in July of this year, was “Ireland's Competitiveness Scorecard”. This report provides a comprehensive benchmark of Ireland’s competitiveness performance compared to many of its trading partners and competitors, using over 125 statistical indicators drawn from a range of national and international data sources.

My officials have analysed the report and I have also brought it to the attention of my colleagues in Government.

The report notes that there is evidence that the economy has stabilised and that the Irish economy has made some gains in international competitiveness in recent years. Many of our traditional strengths have survived the recession intact, including our pro-business enterprise regime, our supportive tax regime and our productive workforce.

The World Economic Forum (WEF) rankings showed Ireland’s position improving 2 places to 27th last September, while the IMD World Competitiveness Yearbook released in May showing Ireland’s headline position recovering back into the top 20 (up from 24th) and 8th out of the 24 EU countries featured. Ireland was ranked first by the IMD in a number of areas, including in relation to investment incentives, skilled labour and attitudes towards globalisation while the WEF ranked Ireland first for the business impact of FDI rules, FDI and technology transfer and inflation.

However, the NCC advises that Ireland must continue to focus on implementing a range of structural reforms across all sectors of the economy, including in relation to the labour market, competition policy, taxation, education and skills. The report also highlights the importance of ensuring that our banking system is appropriately structured to provide an adequate supply of credit for enterprise and the need to embed pro-competitiveness reforms in sheltered areas, such as healthcare and legal services.

The 2012 and the coming 2013 Action Plan for Jobs includes an extensive range of measures across Government which will address many of the reforms highlighted by the NCC as necessary to ensure a continued and structural improvement in our competitive position. In relation to my own areas of responsibility, I have taken a number of specific actions which are directly aimed at improving the competitiveness of enterprises. These include:

- reforming the Joint Labour Committee/Registered Employment Agreement system,

- the introduction of a number of initiatives to improve access to finance for business,

- the reduction in business burdens which will yield potential savings of €206 million per annum for business,

- through the National Consumer Agency, encouraging greater transparency in the pricing of professional services to business.

In addition, one of the key actions being undertaken by Forfás this year under the Action Plan for Jobs is to identify a set of competitiveness indicators and actions to improve Ireland’s international competitiveness rating.

Further measures to achieve the structural reforms identified by the NCC to improve our international competitiveness will be contained in the 2013 Action Plan for Jobs which I am currently preparing in consultation with my Government colleagues.

Economic Competitiveness

Questions (115)

Micheál Martin

Question:

115. Deputy Micheál Martin asked the Minister for Jobs, Enterprise and Innovation if the economic unit within his Department has considered the recent EU report on competitiveness; the implications of the report for Ireland; and if he will make a statement on the matter. [48025/12]

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Written answers

The European Commission’s Competitiveness Report 2012 was published on 19 October last. The report analyses competitiveness across the European Union as a whole and examines the related challenges and opportunities faced by European enterprises.

The focus of the report is on the potential for Europe to benefit from the globalisation of trade. The report concludes that European industry is well positioned to benefit from this globalisation.

In addition to the main report, the Commission has produced country-specific summaries of the competitiveness situation in each Member State.

The summary for Ireland shows that we are better than the EU average in the vast majority of the competitiveness indicators examined, including in relation to labour productivity, our share of high-tech exports, the energy intensity of industry and our overall business environment.

Areas where Ireland is weak compared to the EU average are in relation to access to finance for SMEs, the cost of electricity for medium-sized enterprises and the availability of high speed broadband.

The Commission’s report on Ireland acknowledges the actions that are being taken by the Government under the Action Plan for Jobs to improve the areas of deficit and concludes that the breadth of the Plan and the way implementation has started are promising signs that we are making a determined effort to reduce the differences in the competitiveness of the domestic and multinational sectors.

We will build on this progress in the 2013 Action Plan for Jobs which will set out further measures to improve our competitiveness.

Action Plan for Jobs

Questions (116)

Micheál Martin

Question:

116. Deputy Micheál Martin asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the his Department's commitments under the Action Plan for Jobs. [47372/12]

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Written answers

The Action Plan contains over 270 individual actions to be delivered in 2012, spanning all Government Departments and 36 State agencies. The 270 actions are broken down further into Quarterly deliverables or “measures” which are reported on at the end of each Quarter. Approximately 60% of the measures in the Action Plan for Jobs are for delivery by my Department or its agencies.

To the end of the third Quarter this year, around 130 measures had been implemented by my Department and its agencies, giving a delivery rate of approximately 97%. Only three measures were delayed. These are all legislative measures covering:

- the extension of SFI’s remit to allow the agency to fund applied research,

- the proposed new structure for the employment rights institutions, and

- the Consolidated Companies Bill.

These pieces of legislation have been delayed for a number of reasons, including the detailed and complex nature of the legislation in question, the demand on resources in the Office of the Parliamentary Counsel, and the availability of time for legislative business in the Houses of the Oireachtas. However, I expect to publish the Consolidated Companies Bill by the end of the year and I can assure Deputy that every effort is being made to ensure that the remaining legislation is progressed as quickly as possible.

With regard to the 130 or so measures which have been implemented by my Department and its agencies since the start of the year, some of the key deliverables are:

- improving access to finance for Irish business, particularly through the introduction of the Microfinance Fund, the Temporary Partial Credit Guarantee scheme and the Development Capital Fund;

- initiatives to assist more indigenous companies to trade internationally, including through the setting up of a Potential Exporters Division in Enterprise Ireland;

- the introduction by Enterprise Ireland of a clustering programme, the Competitive Start-up fund, a Women In Business programme and the New Frontiers programme for new entrepreneurs;

- the launch by IDA Ireland of the Succeed in Ireland initiative to supplement the agency’s continued efforts to attract foreign investment to Ireland;

- the enactment of legislation to reform the statutory wage setting mechanisms;

- the establishment of new Technology Centres in Cloud Computing, Learning Technologies and Financial Services.

Full details of all the measures delivered by my Department and its agencies can be found in the Quarterly Progress Reports on the Action Plan for Jobs which are available on my Department’s website, www.enterprise.gov.ie.

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