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Thursday, 22 Nov 2012

Written Answers Nos. 14-23

Public Procurement Tenders

Questions (16)

Sandra McLellan

Question:

16. Deputy Sandra McLellan asked the Minister for Jobs, Enterprise and Innovation the steps he has taken to increase access by the small and medium enterprises sector to Government procurement. [51885/12]

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Written answers

There is a series of actions included in the Action Plan for Jobs aimed at implementing the commitment in the Programme for Government to improve access to public procurement for SMEs. These include ensuring that the qualifying criteria for public contracts are proportionate, and providing advice to firms on how to improve their engagement in the procurement process. Some of these actions are for delivery by the National Procurement Service (NPS) and the Department of Public Expenditure and Reform, which has overall responsibility for public procurement policy in Ireland.

With regard to my own Department and its agencies, Enterprise Ireland is actively supporting its client companies in preparing and competing for public contracts. The agency has assigned 18 Advisors to work with companies in the procurement process. This support is in addition to the one-to-one engagement undertaken with client companies by Enterprise Ireland’s Procurement Team. In the last 12 months, 697 clients have participated in events organised by the Public Procurement Team.

Enterprise Ireland, along with the NPS, has been encouraging client SMEs to register on the eTenders.ie and Procurement.ie websites so that they are alerted to upcoming public procurement opportunities. The agency has also been involved in “Meet the Buyer” events which bring together public sector buyers and potential suppliers. The Minister for Small Business, Deputy John Perry, addressed the most recent event in Kilkenny earlier this month. Over 500 suppliers met with a range of public sector buyers on the day, including the Health Service Executive, Dublin Airport Authority, An Garda Síochána, Central Procurement Directorate, National Procurement Service, and Vocational Education Committees (VECs).

A ‘Procuring Innovation Initiative’ has also been introduced under the Action Plan for Jobs, with the aim of encouraging a more flexible approach to tendering that focuses on procuring innovative solutions to an organisation’s needs, rather than prescribed products or services which may be less effective. This approach will afford an opportunity for innovate SMEs to demonstrate their capacity to win public contracts. Following a Roundtable which I hosted earlier this year, a number of State bodies have agreed to participate in the Procuring Innovation Initiative. The objective is that the projects pursued by these bodies will act as exemplars for the expansion of the initiative in 2013.

In conjunction with the NPS, Enterprise Ireland is also exploring the potential for developing a panel of sub-contractors on the Government’s eTenders website which could be available to principal contractors who are looking for subcontractors or specialist partners to complete a project.

Progress in relation to the various initiatives under the Action Plan for Jobs to improve SME access to public procurement are published in the Quarterly Progress Reports which are available on my Department’s website, www.enterprise.gov.ie.

Action Plan for Jobs

Questions (17)

Dessie Ellis

Question:

17. Deputy Dessie Ellis asked the Minister for Jobs, Enterprise and Innovation the initiatives that his Department is taking to address the structural nature of long term unemployment through job creation. [51896/12]

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Written answers

There are two major elements to the Government’s response to unemployment – Pathways to Work and the Action Plan for Jobs. The aim of the Action Plan for Jobs is to create a supportive environment for enterprise to create and sustain new jobs, while the aim of Pathways to Work is ensure that as many of those jobs as possible go to people who are currently on the Live Register, particularly those who are Long Term Unemployed.

The Action Plan for Jobs contains over 270 individual actions to be delivered in 2012, spanning all Government Departments and 36 State agencies. The third Progress Report on the Action Plan was published on 17th October 2012. It shows that 218 (96%) of the 227 milestones to be achieved in the first three Quarters of 2012 had been delivered.

The full impact of the measures being taken under the Action Plan for Jobs will become apparent over time, but we are already seeing encouraging progress. For example, so far this year, the IDA has announced investments with the potential to create more than 8,500 further jobs as these projects come on stream. In the first eight months of this year, a total of 4,669 job commitments over the next three years, linked to Enterprise Ireland approvals to client companies, were secured.

Employment in the Tourism sector increased by 6,300 over the period June 2011 to June 2012. There were also modest increases in Agri-food and ICT, while the number of people employed in Digital Games has also doubled since 2009. These are sectors specifically targeted for support under the Action Plan for Jobs.

The labour market activation measures outlined in Pathways to Work include over 85,000 job placement and work experience places to be delivered this year by the Department of Social Protection, and over 450,000 training and education places to be delivered by the Department of Education and Skills.

Pathways to Work has an objective of ensuring that at least 75,000 of those currently long-term unemployed will move into employment by 2015. It also aims to reduce the average time spent on the Live Register from 21 months, to less than 12 months by the end of 2015.

The Department of Social Protection recently launched a new employment and support service – Intreo. This will provide individualised supports to jobseekers to assist them in getting back to work and increasing their employability.

In addition, there is a range of other measures available to those who are on the Live Register and seeking to start their own business, such as supports from the County and City Enterprise Boards, the Back to Work Enterprise Allowance and the new Micro Finance Fund. There are also financial supports available to employers who recruit a person who is long term unemployed, including Revenue’s “Job Assist” scheme and the Employer’s PRSI Exemption scheme operated by the Department of Social Protection. The Government has been actively promoting these schemes to employers in recent months, with the support of business representative bodies.

We will continue to do all we can to facilitate the return to work of those who have lost their jobs. I am currently preparing the 2013 Action Plan for Jobs on behalf of the Government and in that context, will be exploring further measures which can be taken to transform our economy and support job creation.

Departmental Bodies Abolition

Questions (18)

Mick Wallace

Question:

18. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation the reason behind the decision to abolish the office of the Chief Scientific Adviser; and if he will make a statement on the matter. [51812/12]

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Written answers

The Government decision to abolish the separate Office of the Chief Scientific Adviser (CSA) is part of the wider reform and efficiency process currently being driven right across the public sector. The abolition of the Office of the CSA is one element of a number of reforms being driven by the Department of Jobs, Enterprise and Innovation.

The principal function of the Chief Scientific Advisor to the Government when it was established in 2004 was to provide high-level advice on scientific issues of concern to Government and to provide scientific inputs to the development of Science Technology and Innovation (STI) strategy including through the Inter-Departmental Committee on STI or through the Advisory Science Council.

Since its establishment the role of CSA evolved into one which was more ambassadorial and representational in nature and this proved highly beneficial to our international reputation and standing – e.g. in securing European Science Open Forum for Dublin this year.

In reality over the past 8 years there has been little requirement for the CSA to respond to formal requests from Government for advice on specific scientific issues of concern.

With regard to the CSA advisory role, no individual could be expected to be a leading expert on the full range of scientific issues that might arise across the spectrum of Government activities such as in relation to public health, veterinary science, energy etc.

This is borne out by the experience to date where the Government continues to utilise for the most part the specialist expertise in these fields that is available within Departments. In the event that the advice of the CSA is required, the role of the CSA in such circumstances would be to identify and source the best possible scientific advice for Government.

It is considered that the Director General of SFI, Prof. Mark Ferguson, given his eminent scientific background, extensive industry expertise and a range of global contacts, and as the head of the Government’s leading science agency, is optimally placed to secure that independent advice.

Prof Ferguson has agreed to take on the additional duties of CSA without any additional remuneration or any additional resources.

Prof Ferguson will, where the need arises, utilise a panel of independent experts, in an arrangement similar to some other international systems.

Proposed Legislation

Questions (19)

Aengus Ó Snodaigh

Question:

19. Deputy Aengus Ó Snodaigh asked the Minister for Jobs, Enterprise and Innovation if he will provide a timeframe for the introduction of the new workplace relations legislation. [51890/12]

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Written answers

The Government is committed to reform of the State’s Workplace Relations Services. The system that developed over the last sixty years had become unwieldy and complex; it lacked consistency, involved long delays and in some cases proved expensive for users.

In short, the system was no longer fit for purpose and it was for this reason that I have commenced a root-and-branch reform with the objective of establishing a world-class Workplace Relations Service.

Significant progress has been made to date and I am happy to report that in the last year a number of priority actions have been successfully delivered within the target timescale.

While considerable progress has been achieved to date on an administrative basis, completing the proposed reform requires the enactment of detailed legislation in order to provide the statutory basis for the new structures and processes.

A significant amount of work has been completed on the preparation of the Workplace Relations Bill which will give statutory effect to the Reform proposals. In July 2012, I published a policy document – Legislating for a World Class Workplace Relations Service - which was submitted to the Oireachtas Committee on Jobs, Enterprise and Innovation in order to give the Committee an early opportunity to shape the legislation. I had a constructive dialogue with the Committee on the basis of this document.

Enactment of the Bill will necessitate amendments to 22 primary acts, 12 specified parts or sections of acts and 71 statutory instruments. The Scheme of the Workplace Relations Bill has been approved by Government for priority drafting. Engagement is on-going with the Attorney General’s Office and I expect publication at an early stage next year. This would enable the proposed new structures to be put in place by early 2013.

I intend to progress the reform programme to the next stage with the same determination that has delivered the achievements to date. I am working towards delivery of the new two-tier Workplace Relations structure so that from next year two statutorily independent bodies will replace the current five.

In the meantime I intend to continue to progress the reform and bring about further enhancements for users of the services on an administrative basis in the coming months.

Skills Shortages

Questions (20)

John McGuinness

Question:

20. Deputy John McGuinness asked the Minister for Jobs, Enterprise and Innovation the initiatives he is taking in view of last months report by the Joint Oireachtas Committee on Jobs, Enterprise and Innovation regarding serious skills shortages in the ICT sector here; if he supports proposals for an Irish technology visa; and if he will make a statement on the matter. [51854/12]

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Written answers

I welcome the Report of Joint Committee on Jobs, Enterprise and Innovation, ‘A review of the Information Communication Technology (ICT) skills demand in Ireland’ and look forward to meeting with the Committee shortly to discuss its findings.

Ireland has to compete with other countries for migrant labour, particularly in respect of high-level skills. Skills required in the high-tech sectors are in demand and in short supply globally. While increasing the supply of high-level skills from domestic sources is the most sustainable way forward in the long term, in the short term, there continues to be a need to supplement Ireland’s skills stock through employment permits and to ensure that Ireland’s employment permits system is geared towards attracting such skills.

Current Government policy is to issue employment permits for the employment of non-EEA nationals for specific vacancies and in response to employer demand for strategic skills and labour shortages in designated occupations in key economic sectors such as health care, information technology and financial services.

The employment permits regime is supporting the enterprise sector and significant levels of applications are successful particularly those based on high skills levels. My Department’s figures indicate:

- A reduction in total applications in line with economic circumstances, but an increase in Green Card applications, in line with a greater emphasis on high value skills;

- An increase in the proportion of applications in respect of ICT job roles with applications in respect of ICT job roles being more successful than the norm. Over 90% of ICT related applications are successful and over 1,200 ICT related applications have been approved so far this year.

The Department of Justice and Equality is responsible for the implementation of policy in relation to the admission of non-EEA nationals to the State and their residence in the State. There can be some confusion with regard to the term ‘IT Visa’ as it is suggestive of a visa-based immigration system. However, the employment permit regime provides for a managed system regarding entry to Ireland’s labour market as well as powers for enforcement of employment rights. Economic migrants are a vulnerable class of people. Any actions affecting inward economic migration should be cognisant of the need to ensure that such migrants are protected and made aware of their employment rights.

Therefore, we should examine how the employment permits regime can be adjusted in order to facilitate attracting highly sought skills. Even further, we should facilitate all highly sought skills, not just those relating to the ICT sector.

My Department has reviewed its processes with a view to attracting more ICT related applications and other applications regarding highly sought skills and is confident that significant improvements can be made shortly which will greatly enhance the employment permits regime, for example:

- In conjunction with Forfás, a review is underway of the Green Card Employment Permit Scheme which is used by Ireland to meet labour market requirements where skills shortages have been identified by reference to analyses undertaken by the Expert Group on Future Skills Needs.

- An interim review of the four core employment permit types - Green Cards, Intra-Company Transfers, Work Permits and Spousal/Dependents - has identified a variety of means to improving the throughput and quality of employment permit applications. Such an initiative would favour the ICT sector in particular as it would include a streamlining of the documentary process, a reduction in the time it takes for applicants to prepare a successful application, and a significant reduction in processing times.

- Closer interactions are being cultivated with the Department of Justice and Equality with a view to providing a more coherent service across the employment permit regime and visa regime including policy convergence, greater information sharing and unified communications from both Departments in respect of labour market access.

I intend to announce a range of improvements in this regard shortly.

It is also the Government’s ambition that Ireland should take advantage of the opportunities for employment in the ICT sector and that every opportunity is afforded to our graduates and unemployed to prepare them with the skills required to work in that sector. Employment permits are but one way of increasing the level of ICT skills available in the labour market and I am mindful that improvements in the regime must be done in a manner that does not undermine the work of my colleague the Minister for Education and Skills to increase domestic supply through our education system and targeting of the unemployed. In that regard, the Minister for Education and Skills has already put in place plans to establish an overarching target of doubling the annual output from honours degree ICT undergraduate programmes to 2,000 graduates by 2018. These plans involve actions to:

- increase the domestic supply of honours degree graduates in the short term through expansion of conversion; and

- boost the longer term supply and quality of graduates from the higher education system.

Finally, work is also proceeding in my Department with regard to the preparation of new employment permits legislation which will provide for more flexibility and targeted instruments in support of the economy’s evolving skills needs. Heads of Bill were approved by Government last April and since then, my Department has been engaged with the Office of the Parliamentary Counsel in order to progress the drafting of the Bill.

Question No. 21 answered with Question No. 7.

Job Creation Issues

Questions (22, 45)

Michael Colreavy

Question:

22. Deputy Michael Colreavy asked the Minister for Jobs, Enterprise and Innovation the way in which his Department is working with the Department of Enterprise Trade and Investment in Northern Ireland to promote job creation and innovation. [51891/12]

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Michael Colreavy

Question:

45. Deputy Michael Colreavy asked the Minister for Jobs, Enterprise and Innovation the actions being taken by his Department to promote job creation along the border corridor. [51892/12]

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Written answers

I propose to take Questions Nos. 22 and 45 together.

North South economic co-operation is and will remain a priority of mine and of the Government. To this effect, there is on-going dialogue between relevant Ministers and officials, North and South, to promote economic development, job creation and innovation, in the border region.

From my own perspective, I attend meetings in the Trade and Business development sectoral format of the North South Ministerial Council, which are held twice a year. I also attend two meetings each year of the North South Plenary which are hosted by either the Taoiseach or the First and Deputy First Ministers. At these meetings there is full engagement with Northern Ministers, particularly at the sectoral meetings, where I have direct discussions with my NI counterpart, Ms Arlene Foster MLA, Minister for Enterprise, Trade and Investment, on a wide range of issues of mutual interest. I look forward to meeting Minister Foster again at the next Trade and Business Development meeting scheduled to be held next week.

My officials engage in on-going dialogue with their counterparts in DETI. A key area of such regular engagement is on the operation of InterTrade Ireland, the North/South Trade and Business Development Implementation Body, which is co-funded by my Department and DETI. All matters relating to the management of that body and the planning and oversight of its schemes and programmes, involve close interaction by the officials of both Departments.

Another key area of engagement at official level between my Department and DETI is our joint support for enterprise projects under the Interreg initiative, which is co-funded by the EU, by my Department and by DETI. The most recent of these involves the establishment of a significant North West Science Park, to be co-located in Derry and Letterkenny, in respect of which both our Departments have agreed financial support. The process of assessing further Interreg projects for joint funding is on-going and both groups of officials are also engaged in a process which will hopefully see a new Interreg Scheme initiated when the current phase expires in 2014.

In addition to direct Departmental engagement, there is a long history of co-operative action between North/South enterprise agencies to achieve mutual benefits. Enterprise Ireland, which stimulates the development of indigenous enterprise, has extensive contact with its Northern counterparts and works with them on a range of programmes to drive job creation in border areas. IDA Ireland collaborates with Invest Northern Ireland, for example, in the Northwest Now initiative. More recently, there have been very positive developments where a wide range of agencies and institutions now co-operate on science and technology issues, including participation in the EU Research Framework Programme.

My Department, along with our enterprise development agencies, will continue to work diligently with our counterpart Department and relevant Northern Ireland Agencies to increase the economic benefits, especially on job creation research and innovation, accruing from practical co-operation.

Action Plan for Jobs

Questions (23)

Éamon Ó Cuív

Question:

23. Deputy Éamon Ó Cuív asked the Minister for Jobs, Enterprise and Innovation if he has examined the potential for a national community investment fund as promised in the Action Plan for Jobs; and if he will make a statement on the matter. [51863/12]

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Written answers

The Action Plan for Jobs recognises the role that communities and local businesses play in supporting and creating jobs. The Plan includes a number of commitments on the part of Government to encourage and support local initiatives that promote job creation.

One of these is that the Government will examine the potential to establish a Community Investment Fund which would be allocated to projects on a competitive basis, with matching funding being provided by the projects.

My officials have carried out a preliminary examination of this proposal and it is clear that the establishment of such a fund would require the input of a number of Government Departments and agencies and would be contingent on the availability of funding from the Exchequer.

I have been in contact with my colleague, the Minister for the Environment, Community and Local Government, Phil Hogan, T.D., as an initial step to exploring the potential role and input of his Department to a Community Investment Fund. I will continue to explore the proposal with Minister Hogan and other Ministerial colleagues as appropriate.

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