Written Answers Nos. 99 to 106
99. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the current status of HMV employees in view of the lack of clarity following the lay-offs at the store; and if he will make a statement on the matter. [3650/13]
View answerTo ensure the employees had access to information on their employment rights, on becoming aware of the evolving situation in the company, I asked the National Employment Rights Authority (NERA) to contact the workers involved in the sit-ins and to mobilise NERA resources to answer queries from all workers on their employment rights.
My Department established a direct line of contact with the receiver from the outset and I was assured that communicating with staff would be a priority. I understand that, over the weekend, the HMV receiver secured the agreement of staff to discontinue their sit-in in return for his commitment to arrange for payment of wages this week. The HMV receiver has indicated he is making every effort to find a buyer for the Irish operation. I understand that the receiver has issued employees with letters notifying them that they are on temporary lay-off, pending an outcome to his efforts to secure a buyer.
I would point out that temporary lay-off is governed by the Redundancy Payments Acts, which are administered by the Department of Social Protection. I would urge HMV employees to contact the National Employment Rights Authority for information about their employment rights.
In general terms, under the body of Irish employment rights legislation there are significant protections afforded to employees whose employers cease trading. If an employer is unable to pay wages and/or redundancy payments, employees are entitled to apply to the Social Insurance Fund - which is administered by the Department of Social Protection - for payment of the amounts otherwise due from the employer. These rights are contained in the Payment of Wages Act 1991, the Protection of Employees (Employers’ Insolvency) Acts 1984 - 2006 and the Redundancy Payments Act 1967 - 2007. Additional protections afforded by the Protection of Employment Act 1977 (as amended) and the Minimum Notice and Terms of Employment Act are also of relevance. Accordingly, employees left without pay and redundancy payments by an insolvent employer are protected in legislation and are entitled to receive outstanding payments from the Social Insurance Fund.
100. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his Department has monitored the competitiveness of industry here; if economic competitiveness has fluctuated and if so to what extent in each of the past five years to date; and if he will make a statement on the matter. [3668/13]
View answerThe National Competitiveness Council (NCC) monitors Ireland’s competitiveness position on an on-going basis and reports to me on key competitiveness issues facing the Irish economy.
The most recent report published by the NCC, in July 2012 - “Ireland's Competitiveness Scorecard” - acknowledged that improvements have taken place in Ireland’s cost competitiveness since 2008, particularly in terms of labour costs and property costs.
This improvement in competitiveness is reflected in the fact that, in 2012, Ireland’s international competitiveness ranking improved four places from 24th in 2011, to 20th in the IMD World Competitiveness Yearbook for 2012. Ireland also improved its competitiveness ranking with the World Economic Forum, which reported last year that Ireland had improved its competitiveness ranking, from 29th to 27th place, in that organisation’s Global Competitiveness Index.
Notwithstanding these improvements, the NCC has identified a number of issues which need to be addressed in order to achieve sustainable, long-lasting competitiveness gains. The Council advises that the Government must maintain a 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 NCC also highlights the importance of ensuring that our banking system is appropriately structured to provide an adequate supply of credit for enterprise.
The Government has been systematically identifying those areas of policy it can influence to bring about cost reductions or provide supports to business. The Action Plan for Jobs 2012 included an extensive range of measures across Government which will help to improve competitiveness and support job creation across all sectors of the economy.
Updates on all commitments under the Action Plan for Jobs are outlined in the Quarterly Progress Reports on the Plan which are available on my Department’s website, www.enterprise.gov.ie.
Further measures to improve our competitiveness will be contained in the 2013 Action Plan for Jobs which I am currently finalising on behalf of the Government. The 2013 Action Plan will be published in the coming weeks.
101. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the total number of jobs lost or created in the area of innovation and technology in each of the past seven years to date; and if he will make a statement on the matter. [3672/13]
View answerThe Forfás Annual Employment Survey reports on job gains and losses in companies that are supported by Enterprise Ireland, IDA Ireland and Shannon Development. The survey does not measure jobs lost and created in the categories of innovation and technology but rather in specific sectoral categories. There are traditional sectoral categories which might not necessarily be regarded as innovative or technological but which would nonetheless be likely to have people employed in innovative and technological roles. Similarly, there are sectors generally regarded as innovative and technological but will have a number of jobs that are not innovative or technological in themselves, e.g. sales, administration. As innovation and technology are aspects of employment across most sectors it is not possible, therefore, to disaggregate the information as sought by the Deputy.
The importance of innovation and the use of technology are recognised as core enablers of job creation. Ireland is a small open economy which needs to have the export of goods and services at the heart of its economic strategy and in order for our companies to achieve success on the global market they must be innovative in order to differentiate themselves.
There are some 130,000 people directly employed in 1,004 IDA client companies and in 2011, the value of the foreign direct investment approvals achieved by the IDA that were research, development and innovation (RDI) based amounted to €700m. Indeed, some 70% of business expenditure on research and development is accounted for by IDA client companies. Additionally, around 50% of IDA client company announcements in 2012 had links to Science Foundation Ireland.
The introduction of the annual Action Plan for Jobs process supports employment creation by the enterprise sector, based on innovation, entrepreneurship and exporting and recognises that delivering improvements in competitiveness and prioritising innovation are key drivers that will lead to jobs growth.
102. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if, arising from any studies following the relocation of manufacturing or service jobs from this jurisdiction to others throughout the EU or otherwise over the past six years, a determination has been made as to any common factors causing such relocation; the extent to which any such factors have been addressed; the benefit of such action in terms of future projections; and if he will make a statement on the matter. [3673/13]
View answer108. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his Department has identified the most commonly cited reasons for job losses in the manufacturing, services and commercial sectors in the course of the past five years to date; the extent to which he has addressed or intends to address the underlying issues in the short and medium term; and if he will make a statement on the matter. [3679/13]
View answerI propose to take Questions Nos. 102 and 108 together.
While manufacturing has been an important sector in Ireland since the 1960’s, there has been a noticeable decline in numbers employed in this sector. This is not necessarily surprising and it echoes what has been happening in most developed economies. This has also been experienced in other industrialised countries such as Germany, UK, USA, Netherlands and Korea.
It is clear that, arising from greater globalisation, reduction of tariff barriers and the ease of transporting goods, the nature of industry and the location of specialisations will be changing and there will be an inevitable movement of production of lower-cost, less-specialised goods towards cheaper labour economies in Asia, for example. This is part of a wider global pattern. Although it is very challenging in an internationally competitive environment, there is considerable potential for the manufacturing sector in Ireland, as we are strongly placed to create opportunities and employment in many higher- value sub sectors, for example chemicals, pharmaceuticals, medical devices and food, amongst others.
Despite this trend, there are now 197,000 people directly employed in manufacturing (both full-time and part-time), and a similar number of people employed indirectly. This figure has stabilised over the last two years. It is noteworthy that exports of manufactured goods are continuing to rise despite a difficult environment. Even more heartening is the fact that exports by the services sector are going from strength to strength, with an 11% increase in the first nine months of 2012. In addition, the contribution of manufacturing to GDP has risen significantly over the last decade
To promote job opportunities in this sector, the Action Plan for Jobs 2012 included several specific initiatives to develop the sector. The Manufacturing Development Forum, which I established last year, has provided valuable insights into the sector. I also asked Fortas to develop a new Strategy for Manufacturing up to 2020 and this study is currently being finalised. A new report on the skills needs of the sector will also be a key driver in pursing those specific needs.
The services sector accounts for two thirds of total employment. While the majority of service firms are not supported by the State, 125,644 persons are employed in agency-supported firms, an increase of 4.6% on 2010. A total of 46,634 of these are employed by Irish companies, with growth particularly strong in areas including business services, ICT and financial services. By concentrating on where our competitive advantages lie, in both manufacturing and services and building on last year’s Action Plan for Jobs and the new Jobs plan to be announced in the near future, I am confident that growth in employment will be achieved.
103. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the total number of jobs through foreign direct investment created in each of the past six years to date; the extent to which emerging trends have indicated opportunities for the future; and if he will make a statement on the matter. [3674/13]
View answerDetails of the total number of new jobs created in IDA Ireland’s client companies for the past six years are set out in the tabular statement which follows.
In accordance with its Horizon 2020 Strategy, which covers the period 2010 to 2014, IDA Ireland has identified current and future industry trends which are enhancing the agency’s ability to secure foreign direct investment (FDI) projects, thereby creating sustainable employment opportunities in Ireland. These include employment-intensive services, new forms of foreign direct investment (FDI), investment from new high-growth markets and winning business from emerging companies.
2012 saw a strong performance in the level of FDI won by Ireland with 12,722 new jobs being created in IDA client companies. This also represents a significant achievement in terms of reaching the target of 12,500 new jobs set in the Government’s 2012 Action Plan for Jobs. IDA Ireland has indicated that the gains made spanned a range of sectors, with particularly strong performances from social/digital media, IT, financial services and life sciences.
IDA Ireland’s concentration on attracting employment-intensive services to Ireland is leading to the speedy creation of jobs. A significant proportion of investments in 2012 were in the area of services operations, particularly serving the Europe, Middle East and Asia Market. A notable feature of 2012 was the wide range of green field investments coming to Ireland. In total, there were 145 individual investments, with 66 (over 40%) from companies coming to Ireland for the first time
In recent years IDA Ireland has established a footprint in high-growth markets, such as China and India, and remains committed to the goal of securing 20% of all green field investments from high growth markets by 2014. The agency has also broadened and deepened its portfolio, embracing not just large multinational corporations (MNCs) but also working closely with “fast growth” companies, which aspire to be the MNCs of the future. This strategy was successfully implemented in 2012 with a range of fast-growing companies announcing that they had decided to invest in Ireland.
IDA Ireland has indicated that, while the outlook for key global markets in 2013 is less favourable, particularly in Europe, which is a key focus for IDA’s existing and potential clients, there are opportunities for growth in the IT/technology sector, in specific areas of financial services, in life sciences, in social/digital media and in sectors where consolidation is taking place on a pan-European basis. The agency has assured me that its global team will continue to pursue these opportunities vigorously in 2013 and to ensure the organisation achieves its goals and targets as outlined in Horizon 2020.
New Jobs Created in IDA Ireland's Client Companies 2007-2012
|
Employment Data |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
|
Total New Jobs Created |
9,372 |
6,766 |
3,582 |
12,178 |
13,381 |
12,722 |
104. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which research has been carried out to identify possible disincentives to job creation and retention of existing jobs in the small and medium-sized enterprises; and if he will make a statement on the matter. [3675/13]
View answerThe development of appropriate policy responses to the current economic challenges is dependent on robust research and consultation with key stakeholders, which is undertaken on an ongoing basis by Government, the State agencies and other independent bodies. In addition to work carried out by my own Department, Forfás provides independent and rigorous research, advice and support in the areas of enterprise and science policy. This work informs my Department and wider Government in its responses to the needs of the business environment.
Last year, my Department carried out research on the need for a Microfinance Fund to support start-up and expanding microenterprises, resulting the Government approving the recently launched Microenterprise Loan Fund. My Department also worked with independent consultants Capital for Enterprise in researching the need for, and developing, a Partial Credit Guarantee Scheme, which was launched last November.
Working with Forfás and key stakeholders, my Department is currently in the process of finalising reports on the construction and manufacturing sectors, as part of the Action Plan for Jobs 2012, which will highlight issues impacting on these sectors and set out recommendations to address these issues and facilitate these sectors in developing to their potential.
Forfas recently published a report entitled 'A Review and Audit of Licences Across Key Sectors of the Irish Economy'. The key recommendation from the review is for the relevant licensing authorities to proceed towards the development of integrated licensing systems for retail, food and drink, hospitality and leisure and construction sectors to rationalise the number of licences and to streamline processes and therefore reduce the overall administrative burden on business.
The National Competitiveness Council reports on key competitiveness issues facing the Irish economy and offers recommendations on policy actions required to enhance Ireland’s competitive position. The most recent report, while acknowledging an improvement in Ireland’s competitiveness, identified a number of issues which need to be addressed in order to achieve sustainable, long-lasting competitiveness gains. Ireland must maintain focus on implementing a range of structural reforms across all sectors of the economy including issues relating to the labour market, competition policy, taxation, education and skills. The report also highlighted the importance of ensuring that our banking system is appropriately structured to provide an adequate supply of credit for enterprise.
The Department of Finance regularly commissions and publishes independent credit-demand surveys which seek to identify and resolve issues around the availability and access to credit for small and medium sized enterprises. Arising out of the findings of the Mazar’s survey published in late 2011, the Minister of State with responsibility for small business, Deputy John Perry, accompanied by the Secretary General from the Department of Finance, held a series of seven regional meetings around the country to discuss access to bank credit with key local stakeholders. These meetings gave rise to a whole series of positive actions to help small businesses to stay in business and create jobs.
I regularly meet with small business owners across all sectors and hear directly from them what further measures are needed in order to incentivise them to retain and create jobs. Also, as part of the preparation of the Action Plan for Jobs 2013 which is now nearing finalisation, more than 55 submissions were received, containing over 600 individual proposals for consideration. Many of these submissions made suggestions on how job retention and creation could be enhanced and where appropriate, ideas that were considered to be feasible for implementation this year have been taken on board in formulating the Action Plan.
105. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the number of applications for work permits received by his Department in each of the past five years to date; the numbers granted and or refused in each of the years in question; and if he will make a statement on the matter. [3676/13]
View answerSince 2004, Irish labour market policy has been to ensure that general labour and skills needs are met from within the work force of the European Economic Area (EEA). 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 healthcare, information technology and financial services.
The number of permits processed over the last five years are detailed in Appendix 1.
The numbers of employment permit applications submitted and issued have dropped since 2008 in line with economic conditions and the narrowing of eligible job categories and sectors where it was considered that a sufficient supply of labour exists. It is anticipated that the rate of decline in applications will reduce following a number of changes being made to the Employment Permits system shortly in order to attract more applications in respect of highly skilled employees, especially in the ICT sector, as it has been shown that a significant shortage of skilled employees currently exists in that sector.
Appendix 1
Employment Permits Processed
|
Year |
No of applications |
No of new permits Issued |
No of permits renewed |
Total no of permits Issued |
No of permits refused |
No of applications withdrawn |
|
2012 |
5075 |
2916 |
1088 |
4004 |
825 |
246 |
|
2011 |
6422 |
3179 |
2012 |
5191 |
1030 |
201 |
|
2010 |
8495 |
3378 |
3908 |
7286 |
996 |
213 |
|
2009 |
9704 |
3717 |
3765 |
7482 |
1781 |
441 |
|
2008 |
15892 |
8371 |
4957 |
13328 |
2225 |
339 |
106. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the full extent of incentivisation or inducement for employers to take on long-term unemployed and particularly the young long-term unemployed thereby achieving a reduction in the live register; if it is possible to quantify possible progress in this area within the next 12 months; and if he will make a statement on the matter. [3677/13]
View answerIncentives and supports for employers to recruit people from the Live Register or provide them with work experience are primarily operated by my colleague, the Minister for Social Protection, Deputy Joan Burton. Supports and schemes available through the Minister’s Department include the Employer (PRSI) Incentive Scheme, the Jobs Ireland recruitment service and JobBridge, the national internship scheme.
Revenue’s Job Assist scheme also offers employers significant financial incentives to recruit long-term unemployed people through tax savings.
Details of these and other schemes are available in an Employer Information Pack on the Department of Social Protection’s website at the following web address: www.welfare.ie/en/downloads/employerpack.pdf.
