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Wednesday, 20 Feb 2013

Written Answers Nos. 142-150

Proposed Legislation

Questions (142)

Patrick O'Donovan

Question:

142. Deputy Patrick O'Donovan asked the Minister for Public Expenditure and Reform if he will consider, as part of the Construction Contracts Bill, a project bank account system, which was previously proposed by this Deputy and which has recently been progressed in Northern Ireland to ensure that only payments owing to subcontractors and individuals relating to particular projects can be made from specific bank accounts; and if he will make a statement on the matter. [9199/13]

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Written answers

The key objective of the Construction Contracts Bill is to ensure that cash flows down the supply chain on all construction contracts. This is achieved by providing a statutory schedule of payments, prohibiting the use of ‘pay when paid’ clauses in construction contracts and, most importantly, it provides the means for subcontractors to enforce these rights; by suspending their labour and the provision of statutory adjudication. Given these provisions the requirement for security of payment reduces since the exposure of a subcontractor to non-payment is greatly reduced.

A range of security of payment options, including Project Bank Accounts were considered in the initial drafts of the Construction Contracts Bill and provision was made for devices such as bonds as part of the first draft of the Bill that was introduced to the Seanad by Senator Feargal Quinn. However such mechanisms were omitted from the current draft of the Bill in order to reduce the administrative and cost burden to the small businesses that make up a large proportion of our construction industry.

Policy in relation to public works contracts is reviewed on a regular basis by the Government Contracts Committee for Construction and the introduction of Project Bank Accounts is under consideration at present.

Flood Prevention Measures

Questions (143)

Nicky McFadden

Question:

143. Deputy Nicky McFadden asked the Minister for Public Expenditure and Reform the temporary defence measures, in advance of the completion of the CFRAM study, that will be put in place to manage flooding on the River Shannon; the progress being made between the Office of Public Works and the relevant authorities to deal with the issue of flooding on the River Shannon; and if he will make a statement on the matter. [9266/13]

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Written answers

The River Shannon Catchment Flood Risk Assessment & Management Study is being progressed by Jacobs Engineering. This is an in-depth examination of the flood risk in the Shannon catchment and a detailed plan with specific recommendations on measures to manage that risk will be produced by Jacobs.

In advance of the detailed analysis which is being carried out under the Shannon CFRAM Study Jacobs was requested by OPW to prioritise a formal review of the operating regulations and procedures of the control structures along the river Shannon with the purpose of identifying potential improvements with respect to flood risk management that could be introduced in the short term.

That report and a non-technical summary of the Report - ‘Understanding Water levels on the River Shannon’ was circulated to all public representatives in the region, last Autumn. In addition, a direct briefing on the report was made by Jacobs Engineering in late 2012 to the Irish Farmers’ Association and the Joint Oireachtas Committee on the Environment, Culture and the Gaeltacht.

Arising from those consultations, it was agreed, to explore the possibility of carrying out a water level monitoring exercise, involving controlled raising and lowering of weir boards at selected locations, subject to favourable hydrological conditions.

It is important to note that operational control of water flows and levels on the Shannon is a matter for both the ESB and Waterways Ireland. The OPW met with both organisations recently to review the scheduling of such an exercise having regard to existing water management protocols operated by these two bodies for the major storage areas in the Shannon system. It has been agreed to involve the expertise of Jacobs Engineering, in order to advance the water monitoring proposal.

In addition it is open to all local authorities within the Shannon catchment to apply to the OPW for funds under the Minor Works Scheme in respect of any proposals to carry out local flood alleviation works which might be in general accord with the approach of the Shannon CFRAM Study.

Consumer Protection

Questions (144)

Heather Humphreys

Question:

144. Deputy Heather Humphreys asked the Minister for Jobs, Enterprise and Innovation the position regarding the introduction of a statutory code of practice in the grocery goods sector; and if he will make a statement on the matter. [9162/13]

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Written answers

The Programme for Government contains a specific commitment to enact legislation to regulate certain practices in the grocery goods sector. I intend to give effect to this commitment by including an enabling provision in the Consumer and Competition Bill. This Bill will also, inter alia, merge the National Consumer Agency and the Competition Authority, update and reform competition law on foot of a review of the operation and implementation of the Competition Act 2002 and give effect to the recommendations of the Advisory Group on Media Mergers, Work on drafting the Consumer and Competition Bill is on-going and the Bill is included in the “A list” in the Government’s current Legislative Programme.

It is important to point out that in introducing a statutory Code the intention is not to protect one stakeholder over another nor is the Code intended to prevent stakeholders such as retailers and suppliers from engaging in robust contractual negotiations as happens in most other sectors of the economy. It is also the case that the Code is not seeking in any way to determine the price of grocery goods. Rather the essential value of the Code is that by regulating problematic practices in the grocery goods sector it seeks to strike a fair balance between the competing interests of the various stakeholders including the interests of the end user, the consumer.

The Government is strongly of the view that it is important to ensure there is balance in the relationship between the various players in the grocery goods sector and that Ireland continues to have robust agri-food and retail sectors, particularly given the importance of these sectors to the national economy. The introduction of a Code of Practice is intended to achieve such a balance taking into account the interests of all stakeholders in the grocery goods sector including the interests of the consumer and the need to ensure that there is no impediment to the passing-on of lower prices to consumers.

Consumer Protection

Questions (145)

Pearse Doherty

Question:

145. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the position regarding the merger of the Competition Authority with the National Consumer Agency; and if he will make a statement on the matter. [9237/13]

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Written answers

Work on drafting the Consumer and Competition Bill is on-going and the Bill is included in the “A list” in the Government’s current Legislative Programme.

In addition to merging the National Consumer Agency and the Competition Authority, the Bill will, inter alia, update and reform competition law on foot of a review of the operation and implementation of the Competition Act 2002, give effect to the recommendations of the Advisory Group on Media Mergers and introduce enabling provisions for a code of practice for the grocery goods sector.

The merger of the two bodies is aimed at ensuring improved co-ordination of the two policy areas. Enforcing both competition and consumer laws will give the newly merged body synergies and efficiencies in carrying out its functions. This will have benefits for consumers due to the existence of a stronger and more co-ordinated body dealing with consumer and competition issues.

Regional Aid

Questions (146)

Ciara Conway

Question:

146. Deputy Ciara Conway asked the Minister for Jobs, Enterprise and Innovation if he will seek EU approval to have the EU regional aid grant rates increased from 10% to 15% in the south east; and if he will make a statement on the matter. [9259/13]

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Written answers

The Deputy will be aware that the purpose of regional aid is to support investment and job creation and encourage firms to set up new establishments in Europe's most disadvantaged regions. The aid intensity thresholds for each category of region are pre-determined in the Guidelines by the Commission. The thresholds reduce on a sliding scale basis, with the highest rates available to the most severely disadvantaged or geographically isolated regions of the EU.

Ireland’s Border, Midlands and West region automatically qualified for designation on the basis of being the least developed region of Ireland. Thus the BMW region is currently entitled to the highest investment aid rates in Ireland of 15% for large companies, that is, those with 250 employees or more, and 25% and 35% for medium and small-sized enterprises respectively.

The details of the support in terms of aid intensity currently available for each county are available on my Department's website, and are also listed in the chart at the end of this answer.

The process of Member States agreeing the 2014-2021 Regional Aid Guidelines is underway and multilateral discussions between Member States and the Commission, which has responsibility for the Regional Aid Guidelines, have taken place. For the 2014-2021 Regional Aid Map, economic data such as unemployment and Gross Domestic Product for all counties will once again be analysed afresh when deciding which counties will be designated for Regional Aid.

A revised Irish Regional Aid Map will have to be submitted to and approved by the Commission by the end of this year.

Regional Aid Map 2007-2013 – IRELAND (as reviewed by Commission Decision)

N130/2010 – Official Journal c 226/5 21.8.2010)

BORDER, MIDLANDS and WEST REGION

Large Firms

Period

2007-2010

2011-2013

Aid Rate

(Gross Grant Equivalent)

30%

15%

Medium Firms

Period

2007-2010

2011-2013

Aid Rate

(Gross Grant Equivalent)

40%

25%

Small Firms

Period

2007- 2010

2011-2013

Aid Rate

(Gross Grant Equivalent)

50%

35%

SOUTHERN & EASTERN REGION

LARGE FIRMS

Area

Period

Aid Rate

(Gross Grant Equivalent)

South East sub-Region

(Carlow, Kilkenny, Wexford, Waterford, South Tipperary) and designated islands1

2007-2013

10%

Mid West

(Clare, Limerick, North Tipperary2 )

2007-2013

10%

Kerry,

Cork (entire county)

2007-2008

10%

2009-2013

0%

1Bear, Cleire, Dursey, Heir, Long, Sherkin, Whiddy

2As a result of Commission Decision N 130/2010, large investment aid and aid for investment projects with eligible expenditure exceeding EUR 25 million is once again permitted for these three counties. Prior to the decision, such aid had only been allowed up until the end of 2008.

Medium Firms

Area

Period

Aid Rate

(Gross Grant Equivalent)

South East sub-Region

(Carlow, Kilkenny, Wexford, Waterford, South Tipperary) and designated islands

2007 - 2013

20%

Mid West

(Clare, Limerick, North Tipperary)

2007 - 2013

20%

Kerry,

Cork Urban Regeneration Area

2007 - 2013

20%3

Cork (apart from Urban Regeneration Area)

2007-2008

20%

2009-2013

0%

Small Firms

Area

Period

Aid Rate

(Gross Grant Equivalent)

South East sub-Region

(Carlow, Kilkenny, Wexford, Waterford, South Tipperary) and designated islands

2007-2013

30%

Mid-West

(Clare, Limerick, North Tipperary)

2007 - 2013

30%

Kerry,

Cork Urban Regeneration Area

2007 - 2013

30%3

Cork (apart from Urban Regeneration Area)

2007-2008

30%

2009-2013

0%

Lower aid rates apply to Large Investment Projects (i. e. > €50 million

3From 2009-2013 no aid may be awarded in these counties for investment projects with eligible expenditure exceeding EUR 25 million

Job Creation Targets

Questions (147)

Micheál Martin

Question:

147. Deputy Micheál Martin asked the Minister for Jobs, Enterprise and Innovation the actions that have been taken since the special Cabinet committee on jobs in January; and if he will make a statement on the matter. [3967/13]

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Written answers

The Government held a special meeting on 17th January to focus on what additional actions can be taken across Government to support job creation.

All Ministers submitted proposals for consideration at the meeting. These proposals have now been incorporated into the 2013 Action Plan for Jobs, which is being finalised for publication.

The objective of the Action Plan for Jobs process is to create a supportive environment for businesses so that they can retain existing jobs and create new ones. We are transforming our economy, step by step, by taking measures across all Government Departments and many State agencies to remove administrative burdens on businesses, improve their access to finance, further improve our export performance and support the development of key growth sectors.

The Government remains committed to the overall target of supporting the creation of over 100,000 new jobs in the economy by 2016 through the Action Plan for Jobs process and making Ireland the best small country in the world in which to do business.

Industrial Production

Questions (148)

Dara Calleary

Question:

148. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the action he will take to reverse the recent decline in industrial production; and if he will make a statement on the matter. [3565/13]

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Written answers

There are a number of indicators used to measure the performance of the manufacturing sector. It is unwise to concentrate solely on one single set of statistics and a comprehensive view of the sector requires an assessment of all relevant indicators, especially over a longer period, as erratic fluctuations can occur from time to time.

The key data source for Industrial Production is the monthly Central Statistics Office publication on Industrial Production and Turnover. The most recent release, published earlier this month, covers the period up to December 2012 so we now have full 2012 data. This latest information shows that production increased by 11% in December last over the previous month (seasonally adjusted basis) and this helped overcome a poor performance during some earlier months of 2012. The index of Industrial production now stands 2.8% higher than its level at the end of 2011, which represents a very solid recovery.

In relation to Purchases, the reputable NCB Purchasing Managers Index is a composite indicator designed to provide an overall view of activity in the manufacturing sector of the Irish Economy and also acts as a leading indicator for the whole economy. After a period of contraction between November 2011 and February 2012, this Index has recorded 11 straight months of consecutive growth from March 2012 to January 2013. The Index now stands at about 50% higher than its low point in early 2009.

Regarding export performance, the picture is also positive. It is heartening that exports of manufactured goods are continuing to rise despite challenges in many of our key markets. Final 2012 export data published by the Central Statistics Office just last week showed that goods exports increased by 1% over 2011, reaching a total of €92bn, the highest figure since 2002.

Employment in the sector had suffered a major shock in 2008-2010 when approximately 50,000 jobs were lost in manufacturing. However, numbers have stabilised over the last two years and there are now 205,700 people directly employed in manufacturing (both full-time and part-time), and a similar number of people are employed indirectly.

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 facilitated this process. I asked Forfas 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, also being finalised at present, will also be a key driver in pursing those specific needs.

A number of steps have already been taken to enable indigenous manufacturing firms to specialise, develop skills and value and scale up including:

- The launch of the new Potential Exporters Division in Enterprise Ireland, to support more indigenous companies to trade in foreign markets,

- Enterprise Ireland’s Lean Business Offer enables manufacturing clients increase productivity and competitiveness,

- The Launch of a new Development Capital Scheme, aimed at addressing a funding gap for mid-sized, high-growth, indigenous companies,

- Improvements to the R&D tax credit scheme.

On wider Government actions, we have 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, including the industrial and manufacturing sector. 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 and which will be published in the coming weeks.

All these initiatives will help build a solid future for manufacturing in Ireland so that we are well positioned to respond to an upturn in global markets.

Research and Development Supports

Questions (149)

Micheál Martin

Question:

149. Deputy Micheál Martin asked the Minister for Jobs, Enterprise and Innovation if his Department officials have any role, along with the sponsoring Department, in developing research, development and innovation policy; and if he will make a statement on the matter. [6828/13]

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Written answers

The Government’s core aim in investing in science, technology and innovation (STI) is to protect and create employment in Ireland and to increase national competitiveness through an integrated approach to research and innovation. Our overarching strategy is to accelerate the economic and societal returns from our investment in research and innovation and we are putting in place a range of initiatives to deliver on this strategy.

A key cross-Government initiative is implementation of the recommendations in the report of the Research Prioritisation Steering Group which seeks to maximise the impact of our spend by focussing the majority of public competitive research funding on 14 priority areas. The priority areas were identified on the basis of existing strengths of the public research base and the enterprise base, opportunities that exist in terms of the global marketplace and those which are most likely to deliver economic and societal impact. In February 2012 the Government agreed to implement the recommendations of this report as a whole of Government policy goal and the Prioritisation Action Group (PAG) was established, under the chairmanship and political leadership of the Minister for Research and Innovation, tasked with driving implementation. The PAG comprises representatives of all relevant Government Departments and State Agencies funding research.

Key to delivering on implementation is collaboration across the funding Agencies and Departments, and the PAG, which has held 8 plenary meetings since its inception, is the opportune forum for dialogue which can facilitate this collaboration. Action plans for each of the priority areas are being developed, and represent the detailed blueprint for actions to be taken by funding Departments and Agencies in order to re-align the majority of competitive public research funding around the priority areas. This new approach is driving new behaviours resulting in a more holistic approach to funding research across relevant Departments and funding Agencies.

Youth Unemployment Measures

Questions (150)

Micheál Martin

Question:

150. Deputy Micheál Martin asked the Minister for Social Protection if she will confirm plans to tackle youth unemployment in Tallaght, Dublin 24; if she will appreciate the large youth population in the region and the need to give hope in respect of future job opportunities; and if she will make a statement on the matter. [9226/13]

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Written answers

The 2011 Census provides the most recent statistics on the youth population in Tallaght. According to the Census, there were just under 10,000 young persons (aged 15-24) in the Tallaght area in 2011, which represents just under 14% of the total population. There were 2,178 persons under 25 on the Live Register in Tallaght in January 2013, down 7% on the same month last year.

Young people, typically, suffer disproportionately from job losses in recessions as they tend to have entered employment more recently, are more likely to hold temporary contracts and to be employed in cyclically sensitive industries than older workers.

In the first instance, the Government’s primary strategy to tackle youth unemployment is to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth. Past experience suggests that youth unemployment, which tends to rise relatively rapidly in a downturn, can be expected to fall relatively rapidly during the recovery.

In addition to promoting economic recovery, the Government recognises the need for interim measures to support the young unemployed and keep young jobseekers close to the labour market. There are five main approaches being taken to tackle youth unemployment: education, training, job search assistance/guidance, work experience, and encouraging job creation. These actions range across a number of Departments and Agencies. These initiatives are being rolled out in all areas across the country including Tallaght. Details of these initiatives have already been outlined in earlier PQs relating to youth unemployment policies at the national level.

There are some programmes specific to Tallaght that are also being run. Job Clubs are open to job ready job-seekers between the ages of 18 years and 65 years. Two Job Clubs will be run in Tallaght in 2013 - the Tallaght Village Job Club and the Bolbrook Job Club. In addition to this, travellers, ex-offenders, refugees, people with disabilities and Drugs Task Force referred clients, over the age of 18 years, may be eligible to participate in Community Employment. The VECs are also very active in relation to YouthReach and other programmes in the Tallaght area.

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