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Thursday, 22 Nov 2012

Written Answers Nos. 94-103

Special Educational Needs Services Provision

Questions (94)

Michael Healy-Rae

Question:

94. Deputy Michael Healy-Rae asked the Minister for Education and Skills the position regarding a computer in respect of a person; and if he will make a statement on the matter. [52123/12]

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Written answers

My Department provides for a scheme of grants towards the purchase of equipment for the use of students in primary and second level schools who have been diagnosed as having serious physical and/or communicative disabilities which make ordinary communication through speech and/or writing impossible for them. The purpose of the grant-aid is to provide such students with equipment of direct educational benefit to them, including computers. The scheme is driven by applications from schools on behalf of individual students, as and when specific needs present. Applications for assistive technology are made to the National Council for Special Education (NCSE) Special Educational Needs Organiser (SENO) with assigned responsibility for the school. The SENO examines applications and makes a recommendation to my Department.

As my Department has not yet received a recommendation in respect of the pupil referred to by the Deputy, an official in my Department has made contact with the school. The school have had discussions with the Parents and is available to assist in completing an application which will be forwarded to the SENO for consideration.

Public Procurement Contracts Tenders

Questions (95)

Bernard Durkan

Question:

95. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the action that will be taken to ensure that subcontractors are paid in respect of State contracts when the main contractor is being paid but the subcontractor is not; and if he will make a statement on the matter. [52088/12]

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Written answers

Under a public works contract the contractual relationship is between the public body and the main contractor. A public body has no contractual ties with a subcontractor engaged by a main contractor. Any contractual relationship is exclusively a matter between the main contractor and its sub-contractor.

I am conscious of the difficulties being experienced by sub-contractors in this current economic climate. However the Deputy may be aware that the Programme for Government contains a commitment to introduce new legislation to protect small building subcontractors that have been denied payments from bigger companies. In this regard, my colleague Minister of State Mr Brian Hayes has been working with Senator Quinn to develop the Senator’s private member’s Construction Contracts Bill into a robust piece of legislation. The Bill has passed Second Stage in the Dáil.

The main purpose of the Bill is to help address the issue of non-payment to construction sector subcontractors who have satisfactorily completed work on construction projects. Minister Hayes is now examining the Bill with a view to progressing it as expeditiously as possible. It is important that a solution to the problem of non-payment must not place an unnecessary regulatory or cost burden on the parties to the dispute, other parties involved in the project, or the State.

State Properties

Questions (96)

Alan Farrell

Question:

96. Deputy Alan Farrell asked the Minister for Public Expenditure and Reform the State owned buildings currently not in use; his proposals for these buildings; and if he will make a statement on the matter. [52094/12]

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Written answers

The Office of Public Work's property portfolio consists of approximately 2,200 buildings, both owned and leased. Of these, some 60% are State owned. Currently there are approximately 100 vacant State-owned buildings in the portfolio. Of these, 47 are former Garda stations and the rest comprise mainly former custom posts, coastguard stations and sundry other properties. A number of these properties are at various stages of conveyancing by the Office of the Chief State Solicitor.

The protocol for dealing with surplus property is as follows: OPW identifies if there is a requirement for the property by any other State body. Consideration is also given to the utilisation of the property asset by the wider public service bodies i.e. local authorities, the HSE, etc.; and if there is no identified requirement, the property asset is then considered for sale or community use. The objective in the current challenging economic climate is to minimise the cost to the State in maintaining its property portfolio.

State Properties

Questions (97)

Alan Farrell

Question:

97. Deputy Alan Farrell asked the Minister for Public Expenditure and Reform his plans for the use of the former Garda Station building in Rush, County Dublin; the possibility of this building being offered on a short term basis to a local community group as requested; and if he will make a statement on the matter. [52095/12]

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Written answers

I refer to previous representations by the Deputy in relation to the proposal that this Garda station might be available for community use. The Office of Public Works (OPW) have requested, through the Deputy, that the Scouts Group would contact the relevant officer in the OPW with a view to identifying the potential use of this Garda station under licence. To-date, this office has not received any communication from the group in question. I am positively disposed to granting a lease to local community groups where Garda Stations become available. I am more than happy to advance the proposal in Rush when contact is made with the OPW.

Oireachtas Members' Remuneration

Questions (98)

Terence Flanagan

Question:

98. Deputy Terence Flanagan asked the Minister for Public Expenditure and Reform his views on a query regarding TD's allowances; and if he will make a statement on the matter. [51933/12]

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Written answers

The provision for payment of an annual allowance to the chairpersons of Oireachtas Committees is made in the Oireachtas (Allowances to Members) and Ministerial, Parliamentary, Judicial and Court Offices (Amendment) Act, 1998. The system of allowances paid to TDs was substantially overhauled by this Government in 2011 upon taking office. The number of committees, and therefore chairpersons, was substantially reduced from 24 to 15, and the amount of the allowance paid to chairpersons was reduced. In addition, allocations previously made to each committee for research were removed. The allowance paid to Committee Chairs has been reduced by 53% since 2009.

It is my intention to continue to ensure that the greatest value for money can be achieved in relation to payments of this nature on an ongoing basis consistent with ensuring maximum efficiency and output from Members.

Job Creation Issues

Questions (99, 100, 102, 104)

Bernard Durkan

Question:

99. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the steps he has taken in the wake of the various jobs initiatives created by Government over the past two years to assess the extent to which opportunities arose to a greater extent in the public or the private sector, in manufacturing or services; and if he will make a statement on the matter. [52060/12]

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Bernard Durkan

Question:

100. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the total number of jobs created in the manufacturing and services sectors in each of the past four years to date in 2012; those that have arisen through foreign direct investment; those created in the indigenous sector; and if he will make a statement on the matter. [52061/12]

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Bernard Durkan

Question:

102. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the total number of jobs created through innovation and technology in each of the past four years and to date in 2012; the number of such that were as a result of foreign direct investment or indigenous industry in both manufacturing and services; and if he will make a statement on the matter. [52063/12]

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Bernard Durkan

Question:

104. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if he will indicate, arising from his discussions with stakeholders in the indigenous sector, the extent to which specific reasons have been identified for job losses in manufacturing or service sectors; if it has been found possible to address the most commonly quoted causes for such losses; the action taken or likely to be taken to address the issue; and if he will make a statement on the matter. [52065/12]

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Written answers

I propose to take Questions Nos. 99, 100, 102 and 104 together.

Manufacturing has played a strong role in Ireland’s economic development and growth. It is a key driver of innovation and technological advance, is an important source of jobs for people at all skills levels and generates many additional secondary jobs. Manufacturing is a key priority of enterprise policy comprising 64% of Enterprise Ireland (EI) supported jobs and over 50% of IDA supported jobs in 2011. The following tables set out the job gains in manufacturing and services sectors from 2007 to 2011. As agency-employed data is collated on an annual basis there is no data available yet in respect of 2012. However, there has been a noticeable decline in numbers employed in manufacturing and in the contribution from manufacturing activities to Ireland’s employment and exports over the past decade. This is not surprising, and it reflects similar trends in many developed economies, particularly small open economies that rely heavily on exports and do not have a tradition of large scale manufacturing.

To address the challenges facing this sector, this Government’s Action Plan for Jobs 2012 (APJ) included a series of actions for the Manufacturing Sector and it noted that Ireland is well positioned to exploit the advances in manufacturing technology, and to build and maintain a strong base of manufacturing activity. The APJ pointed out that the activities taking place within the base of foreign owned companies are continuously changing and, in general terms, moving to more sophisticated and high value added activities involving elements of both manufacturing and services. Similarly, indigenous manufacturing was seen as becoming more sophisticated and knowledge-based.

A key proposal was that a Manufacturing Development Forum be established to assist the Government in identifying the needs of manufacturing enterprises and to progress a transformation agenda. I have therefore established such a Forum in June last to help drive this process. Its membership comprises key industry players and there are also representatives from Enterprise Ireland, IDA Ireland and Forfás. I have asked the Forum to consider the biggest impediments to job creation in manufacturing in Ireland and the immediate areas of opportunities for job creation in the sector and it will provide expert insights to two key initiatives on manufacturing which I have set in train as part of the APJ:

- A Long-term Vision and Strategic Plan. Forfás has commenced a study to revisit the role of manufacturing in Ireland’s economy to assess where it stands today and to set out a strategic vision for 2020 aimed at reversing the current employment trend and enabling a return to growth. This research will set out the policy actions needed to support a sustainable and competitive manufacturing sector to 2020 in the context of global trends, the on-going transformation of the sector and the existing issues facing the sector in Ireland. The Forum will provide expert insights into the development of this Plan.

- An Assessment of Manufacturing Skills Needs: The Expert Group on Future Skills Needs, working alongside Forfás in the development of the Long-term Vision and Strategic Plan, is currently undertaking an in-depth study on the future skills needs of the manufacturing sector in Ireland, building on previous sub-sectoral work and undertaking new firm-level inquiry.

In relation to the number of jobs created through innovation and technology, it is not possible to disaggregate the contribution made by innovation and technology towards overall job creation in those sectors as these are key, but seamless aspects of the Manufacturing and Services sectors.

Forfás’s Annual Employment Study 2011 showed that between 2007 and 2011, services employment held fairly steady (109,134 in 2007 and 109,933 in 2011) with a total of 46,634 full-time jobs being recorded in the Irish-owned Services sector in 2011, a net gain of 428 jobs (0.9 per cent) over 2010. A total of 63,359 full-time jobs were recorded in the foreign-owned Services sector in 2011, with a substantial net gain of 4,236 jobs (7.2 per cent) over 2010. Employment levels in key areas of the Services sector have therefore been very resilient in the period, which reflects the decisive shift in economic activity towards the sector.

There are many complex factors which contribute to job losses particularly over the period of the current recession. The Government are fully committed to addressing these losses as outlined in the overall APJ. I am confident that these measures, combined with other Government initiatives to improve Competitiveness generally, will provide strong practical support to these important sectors.

Manufacturing - Job Gains (Department agencies combined

2007

2008

2009

2010

2011

13,011

10,420

6,794

8,167

9,042

Services & Other Sectors - Job Gains (Department agencies combined)

2007

2008

2009

2010

2011

15,877

13,244

7,168

12,221

11,996

Job Losses

Questions (101)

Bernard Durkan

Question:

101. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the number of jobs lost in each of the past five years and to date in 2012; if in the indigenous sector or in the area of foreign direct investment; the most often quoted reason for job relocation from this to other jurisdictions; the steps he has taken to address such issues; and if he will make a statement on the matter. [52062/12]

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Written answers

The Forfás Annual Employment Survey reports on the jobs created and lost in the companies supported by the enterprise development agencies. Details of the number of jobs lost in client companies of IDA Ireland and Enterprise Ireland in the 5 year period 2007 to 2011 are set out in the following tabular statement. As figures are compiled on an annualised basis, figures in respect of 2012 will not be available until year end.

Job losses arise in the internationally trading sector of the economy for a variety of reasons including changing competitiveness, competition from sister sites, product and technology lifecycles, global location rationalisation as a result of mergers and acquisitions, or an amalgam of these factors. In the majority of the cases involving relocation, the shift is to lower cost emerging economies with a smaller number of cases relocating to other developed country locations, largely in Eastern Europe. Some of the job losses are due to cyclical factors and will be recovered.

IDA’s strategy “Horizon 2020 ” is focussed on winning as many new jobs as possible each year and giving equal priority to maintaining existing jobs. IDA has assured me that it continues to focus sharply on both encouraging and assisting its client companies to move up the value chain in terms of carrying out higher skilled operations and expanding their presence in Ireland. The IDA’s aim is to retain existing clients, improve the quality of employment opportunities in Ireland and increase the positive economic impact. It does this by assisting its clients to:

- improve company – wide competitiveness

- enhance the use of new technologies

- grow the skills of the business

- engage in Research, Development and Innovation

- develop new business processes, and make company operations more energy efficient

2011 was a very good year for FDI in Ireland and in 2011 over 13,000 new jobs were created in IDA supported companies. To date in 2012 there have been 801 IDA investment announcements with the potential to create over 8,550 jobs.

Table showing the number of jobs lost in both IDA Ireland and Enterprise Ireland Client Companies in each of the years 2007 to 2011

Employment Data

2007

2008

2009

2010

2011

EI client companies job losses

14,069

19,733

28,382

15,545

9,096

IDA client companies job losses

9,631

10,154

17,911

9,635

6,950

Question No. 102 answered with Question No. 99.

Upward Only Rent Reviews

Questions (103)

Bernard Durkan

Question:

103. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which upward only rent reviews continue to remain a reason for closure or job losses in the retail or commercial sectors; and if he will make a statement on the matter. [52064/12]

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Written answers

As I informed the Deputy in response to a previous question on 2nd October 2012 PQ (Ref. 42061/12), there is no specific data available on the extent to which upward only rent reviews have been a factor causing job losses. While I am aware that upward only rent reviews are putting pressure on some enterprises in the commercial and retail sectors at the present time, there are other factors influencing decisions of individual companies to reduce jobs. The retail sector has, for example, seen a disproportionate fall in activity due to the fall in consumer confidence and a reduction in discretionary spending by Irish consumers.

Recognising the importance of the retail sector to the economy, the Action Plan for Jobs includes a number of specific measures aimed at supporting employment in the sector. These actions are for delivery across a number of Departments and agencies and include a renewed focus on prompt payments, the introduction of a statutory code of practice for grocery goods undertakings, the provision of support to retail firms seeking to internationalise, and the provision of funding for the up-skilling of workers in the sector.

Other measures in the Action Plan for Jobs which will also help to support employment the retail sector include:

- improved access to finance for businesses;

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

- supports to business to help them manage their energy costs; 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. The most recent retail sales index has seen an increase in activity in the sector and there have been a number of seasonal and permanent job announcements by this sector in recent weeks.

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