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Wednesday, 23 Jan 2013

Written Answers Nos. 117 - 125

Public Services Card

Questions (117)

Seán Kyne

Question:

117. Deputy Seán Kyne asked the Minister for Public Expenditure and Reform if he will report on the progress made on introducing the use of public service cards as the means for accessing State services. [3461/13]

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Written answers

I understand that the number of Public Services Cards issued by Department of Social Protection has very recently exceeded 100,000.

As part of the Public Service Reform Plan a number of actions around the use of the Public Services Card for accessing services were identified.

Firstly, to agree on an investment programme and the allocation of required resources. This has been agreed between my Department and the Department of Social Protection.

Secondly, to develop an awareness programme for both Public Service bodies and for residents on the availability of the card and its potential. This has two aspects – Department of Social Protection support for public bodies and the latters' interaction with their own clients. The Department of Social Protection are in communication with public bodies and the other aspect is contingent on each roll-out programme.

Thirdly, to seek Government approval to mandate all public bodies to use the PSC as the means of accessing their high-value services or explain to the Department why this is not possible. It has been decided that, whereas the rollout of the PSC is underway, mandating its use across all public bodies will only become possible when a significant volume of cards is issued and other public bodies have analysed the business cases for use.

Finally, to examine the best way of using the PSC and its underlying registration facilities and data services as the means of accessing public services over electronic channels. A pilot is underway and should be completed during the second quarter of 2013.

Public Sector Reform Implementation

Questions (118)

Seán Kyne

Question:

118. Deputy Seán Kyne asked the Minister for Public Expenditure and Reform if he will report on the progress of the recommendation contained in the Public Service Reform Plan that each Government Department and public body prepare project plans to map out and meet the objectives of the eGovernment strategy. [3462/13]

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Written answers

Since eGovernment 2012-2015 was launched in April 2012, my Department has been promoting awareness of the content of the strategy, including reporting requirements. In that regard, the eGovernment Policy Unit has met with Public Bodies for a series of bilateral meetings to agree approaches to progressing and reporting on actions in the strategy. The Unit has also organised four mini-conferences raising awareness of specific elements of the strategy. Further events are planned for 2013.

While the specific project plans for implementation of the Strategy are the responsibility of each Department and agency, to facilitate easier reporting by Public Bodies, my Department has developed a new website, e.gov.ie, which is being made available over the public Internet today (Wednesday 23 January 2013). The eGovernment updates on this site include short narratives on projects that have been planned or completed. Public Bodies will continue to add and update entries on an on-going basis.

The content of e.gov.ie will be an important element of the first progress report under the strategy, which will be prepared for Government during the first quarter of 2013.

Action Plan for Jobs

Questions (119)

Dara Calleary

Question:

119. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the number of Government Departments and State agencies that have agreed to participate in procuring innovation initiative since mid-2012; and if he will make a statement on the matter. [3400/13]

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Written answers

The Procuring Innovation Initiative is one of the measures included in the Action Plan for Jobs to improve access by SMEs to public procurement opportunities. The initiative promotes a new approaching to procurement on the part of Contracting Authorities by encouraging them to tender for a solution to a particular requirement, without being overly prescriptive as to what the solution might be.

The objective is to allow greater scope for innovative SMEs to offer new solutions that can provide better value for money and more effective products/services for the Contracting Authorities.

Not every public contract will necessarily be amenable to the Procuring Innovation approach. The aim, however, is to identify a number of projects across the public service that are suitable to the provision of more innovative solutions and which can serve as exemplars for an expansion of this approach.

A number of Departments and agencies expressed a willingness to participate in the Procuring Innovation Initiative in 2012. These include the Railway Procurement Agency (RPA), the Department of Defence, the HSE, ESB, the Department of Justice and Equality, the Irish Prison Service, An Garda Síochána and An Post. Enterprise Ireland has also been working with Bord Gáis in the context of the interim Irish Water utility to identify suitable projects for inclusion in the Procuring Innovation Initiative.

Each of these Contracting Authorities has been working with Enterprise Ireland to develop an approach to tendering that will encourage the submission of innovative solutions for selected projects by SMEs.

Each project is unique and will require a customised call for tenders. Similarly, the development of each project is progressing at different pace and is actively monitored by Enterprise Ireland. I understand that good progress is being made, in particular, with the RPA, ESB and Bord Gáis/Irish Water projects.

It is intended that the initial batch of projects will act as exemplars for an expansion of the Procuring Innovation Initiative in 2013.

Medical Products

Questions (120)

Dara Calleary

Question:

120. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his views on the medicine pricing deal agreed between his Department and the Irish Pharmaceutical Healthcare Association on 15 October 2012; and if he will make a statement on the matter. [3148/13]

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Written answers

My Department is not a party to a medicine pricing agreement with the Irish Pharmaceutical Healthcare Association. I presume the agreement the Deputy is referring to is the agreement between the Department of Health, the Health Service Executive and the Irish Pharmaceutical Healthcare Association on the supply terms, conditions and prices of medicines, which is the policy responsibility of my colleague the Minister for Health and I have no direct function in the matter.

Consumers Association of Ireland Funding

Questions (121)

Patrick Nulty

Question:

121. Deputy Patrick Nulty asked the Minister for Jobs, Enterprise and Innovation if he has had any meeting since July 2012 with the Consumers Association of Ireland to discuss their funding problems and consumer issues; if there are any plans for follow up meetings; and if he will make a statement on the matter. [3170/13]

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Written answers

Following my initial meeting with the Consumers’ Association of Ireland on 25th June 2012, I met again with the Association on 20th December 2012 to discuss the details of its application for funding in 2012. In the course of the meeting, the Association provided further detailed information in relation to a marketing project in respect of which it was seeking support and in particular the performance indicators that it intended to employ so as to maximise the value for money from this project. Following the meeting, funding in the amount of €46,865 was approved to support the marketing project. As part of the agreement to provide funding support, the Association has committed to providing my Department with quarterly reports in relation to the various performance indicators identified in respect of the marketing project.

As I have previously stated, it is essential that all public bodies ensure that value for money is a key consideration in any expenditure of public funds and accordingly this has been the main focus of my discussions with the Consumers’ Association of Ireland in relation to its application for funding support.

EU Directives

Questions (122)

Damien English

Question:

122. Deputy Damien English asked the Minister for Jobs, Enterprise and Innovation if he will detail when he proposes to transpose Directive 2011/7/EU on the new late payments directive into Irish law; if he will detail the way this directive may help small and medium enterprises; and if he will make a statement on the matter. [3363/13]

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Written answers

Prompt Payments for goods and services rendered is critical to the effective working of any economy and is an issue on which this Government places great emphasis.

The reduction in the number of late payments in commercial transactions is one of the ten principles cited in the Small Business Act for Europe as a means to help SMEs to deal with the difficult market conditions currently being experienced.

At present the issue of late payment is covered by the European Communities (Late Payment in Commercial Transactions) Regulations 2002 (S.I. No. 388 of 2002). Under these Regulations, it is an implied term of every commercial transaction that where a purchaser does not pay for goods or services by the relevant payment date, the supplier shall be entitled to interest (late payment interest) on the amount outstanding.

Ireland must transpose the Recast of the Late Payment Directive (2011/7/EU) which repeals and modernises the old rules. I signed the Statutory Instrument transposing Directive 2011/7/EU on 22 December 2012 and this will come into effect on 16 March 2013.

The purpose of the recast Directive is to combat late payment in commercial transactions, in order to ensure the proper functioning of the internal market, thereby fostering the competitiveness of undertakings and in particular of SME’s.

Directive 2011/7/EC lays down the specific deadlines for the payment of invoices and establishes a right to compensation in the event of late payment in all commercial transactions, whether they relate to transactions between private or public undertakings, or between undertakings and public authorities. Member States may exclude debts that are subject to insolvency proceedings, including proceedings aimed at debt restructuring.

Main Provisions:

EU Member States shall ensure that if the date or period for payment is not fixed in the contract, the creditor is entitled to interest for late payment upon the expiry of any of the following time-limits:

- 30 calendar days following the date of receipt by the debtor of the invoice or an equivalent request for payment;

- If the date of the receipt of the invoice or the equivalent request for payment is uncertain, 30 calendar days after the date of receipt of the goods or services.

In addition, Member States shall ensure that:

- The maximum duration of the procedure of acceptance or verification does not exceed 30 calendar days from the date of receipt of the goods or services, unless otherwise expressly agreed in the contract and provided it is not grossly unfair to the creditor;

- The period for payment fixed in the contract does not exceed 60 calendar days, unless otherwise expressly agreed in the contract and provided it is not grossly unfair to the creditor.

In practical terms, this translates into the following operational objectives: (1) Confront debtors with measures that successfully discourage them from paying late; (2) Provide creditors with measures that enable them to fully and effectively exercise their rights when paid late, and (3) Create a level playing field across Member States.

The Directive, will contribute significantly to the liquidity of enterprises and therefore to employment and growth.

The proposed legislation will act as a deterrent to late payment and a driver for payment on time by establishing a clear expectation in law that payment will be made according to agreed terms that creditors will not be penalised financially when paid late and debtors will not benefit.

Prompt Payment compliance will assist SME’s improve their cash flow situation and will ease the credit difficulties being experienced by business and facilitate their long term sustainability.

Action Plan for Jobs

Questions (123)

Dara Calleary

Question:

123. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the progress that has been made in examining the potential to establish a national community investment fund to create employment; and if he will make a statement on the matter. [3402/13]

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Written answers

The 2012 Action Plan for Jobs included an undertaking to examine the potential to establish a national Community Investment Fund to promote the creation of employment at a local level. It was envisaged that one-to-one matching funding from the community and/or private sector would be a condition of this fund.

The establishment of such a fund would, of course, be contingent on the availability of Exchequer resources. Given the competing priorities for funding across Government, much of which is supporting other employment creation measures, it has not been possible to proceed with the proposal for a dedicated Community Investment Fund in 2012.

However, there were significant activities and investments over the course of 2012 which focused on supporting employment creation and retention at a local level. For example, within my own Department’s remit, over €18 million was allocated to the 35 County and City Enterprise Boards to provide a range of supports to micro-enterprises and entrepreneurs across the country.

The Microfinance Fund, which was launched in September 2012, will provide loans of up to €25,000 for viable micro-enterprises who have difficulty accessing credit from the banking sector. This initiative will help many small community-based enterprises to start up and grow. In June 2012, the Minister for the Environment, Community and Local Government, Mr Phil Hogan, launched a Local Government Sectoral Strategy to promote employment and support local enterprise. This Strategy outlines measures being taken by Local Authorities to assist enterprises in the areas of business charges, local enterprise supports, procurement, and local development and community-based initiatives.

The Minister of State for Tourism & Sport, Deputy Michael Ring, announced almost €26 million in new funding for local sports projects across the country in December 2012. This was the first round of sports capital funding in four years. Many of the projects selected for funding under the programme will support local employment as sports facilities are improved and upgraded throughout the country.

Recognising the important role that local communities play in job creation, the Government will continue to support local development in 2013 through a range of initiatives such as these across various Departments.

Action Plan for Jobs

Questions (124)

Dara Calleary

Question:

124. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his strategy for the construction sector to 2015; and if he will make a statement on the matter. [3403/13]

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Written answers

One of the actions detailed in the Action Plan for Jobs 2012 was for Forfás to: ‘develop, in consultation with stakeholders, a national strategy for the construction sector to 2015 outlining the opportunities, challenges and actions needed to realise the potential of the sector, to retain expertise in Ireland and to continue to develop capabilities over coming years and to contribute to the development of a cluster development initiative for the sector’.

I understand that Forfás has largely completed its work and will shortly submit a proposed strategy document to me. Clearly, the issues facing the Construction sector are broad ranging and cross several Government Departments. I intend, therefore, to submit the Strategy document to Government for its consideration at an early date.

Personal Insolvency Act

Questions (125)

Dara Calleary

Question:

125. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his views on developing a new structured non-judicial debt-settlement system in view of the report submitted to him by the Company Law Review Group in September; and if he will make a statement on the matter. [3404/13]

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Written answers

The Company Law Review Group (the CLRG) spent several months last year considering the feasibility of introducing a new structured and non-judicial debt settlement scheme for small and medium sized companies. I received the CLRG’s report at the end of September and, shortly after that, I brought that report to the attention of the Government. The CLRG made five recommendations, which it separated into two categories – those that can be implemented straightaway and those that require more analysis.

The CLRG’s main conclusion was that there are some amendments that could be made to the existing process of examinership that would reduce costs and make it more easily available to small private companies. Accordingly, its first recommendation was that the Companies Acts be amended to allow small private companies to apply directly to the Circuit Court, rather than first to the High Court. As for medium sized companies, the CLRG recommended that they continue to have the option of going to the High Court for the appointment of an examiner. I have agreed with these recommendations and included provisions to give effect to them in the Companies Bill 2012, which was published on 21 December 2012.

The CLRG went on to say that there could be scope for reducing the role of the courts in examinership further, and made proposals for the appointment of an examiner by an administrative, rather than judicial, decision. The CLRG envisaged that this procedure would require the involvement of a State agency to exercise this administrative decision, and identified the forthcoming new Insolvency Service, to be established under the Personal Insolvency Act 2012, as the most appropriate agency. However, it acknowledged that implementation of these recommendations would require more consideration, not least as the Insolvency Service is not yet in operation.

I and my Department are assessing the appropriateness and practical implications of the State providing an administrative body to facilitate SME restructuring. We will also take into account the experience of the insolvency service once it has been established and in operation for a while.

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