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Thursday, 21 Feb 2013

Written Answers Nos. 12-19

Cross-Border Enterprise Initiatives

Questions (12)

Jonathan O'Brien

Question:

12. Deputy Jonathan O'Brien asked the Minister for Jobs, Enterprise and Innovation the number of jobs and the amount of investment achieved by cross-Border agencies and through cross-Border enterprise initiatives in the past two years. [9041/13]

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Written answers

My Department has shared responsibility for the one cross border body with responsibility for enterprise development, InterTradeIreland which is one of the six North/South Implementation Bodies established under the ‘Good Friday Agreement in 1998. Its remit includes work on trade, business development and related matters. The body is based in Newry and is jointly funded in a 2:1 ratio, respectively, by my Department and the Department of Enterprise, Trade and Investment in Northern Ireland.

Over the past 2 years InterTradeIreland programmes have helped create 1,012 jobs and generated a business value of €224m in terms of additional sales, efficiency gains and investments made. IntertradeIreland currently support approximately 246 companies across a range of programmes.

A range of other cross-border enterprise support activities have also been undertaken by the main Development Agencies, Enterprise Ireland and IDA Ireland. For example, Enterprise Ireland has co-financed a business development programme operated by InterTradeIreland to stimulate cross-border sales, EI client companies participate on this programme. In addition, EI’s Innovation Voucher fund has now a cross border aspect, with Irish companies able to access Northern Ireland knowledge providers and Northern Ireland companies able to access knowledge providers based in the South.

Enterprise Ireland also works closely with their counterpart organisation, Invest Northern Ireland on a range of initiatives to benefit enterprise development in the border region. In relation to the National Support Structure for the EU’s Framework Programme 7, work has been on-going to facilitate more targeted cooperation on an all-Ireland basis. To date, under this initiative, there have been 137 successful applicants (54 North and 83 south) securing funding of over €40m for 50 proposals (€10m in Northern Ireland and €30m in the South).

In relation to IDA Ireland, that Agency has participated in the North West Cross Border Gateway Initiative. IDA and Invest Northern Ireland have jointly worked on an initiative to capitalise on the combined strengths of Letterkenny and Derry City as an economic corridor. The focus has been on developing compatible infrastructure and property solutions, which are now in place, and therefore make the Region more attractive for investment.

IDA is committed to a direct investment of €15.2 million to the North West NOW project. The overall project has resulted in enhanced provision of property in Letterkenny, the construction of the town’s Outer Relief Road and improvements in Telecoms infrastructure.

In addition IDA and Invest Northern Ireland cooperated on the development of Project Kelvin which is the first direct International Communications link of its kind into the North West of Ireland and Northern Ireland. It provides the North West with faster response times at lower cost for high capacity broadband, thereby making the Region a more cost-effective base for international business.

Retail Sector

Questions (13, 33, 46)

Martin Ferris

Question:

13. Deputy Martin Ferris asked the Minister for Jobs, Enterprise and Innovation the inititives that will be undertaken to stem the collapse within the retail trade here. [9068/13]

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Michael McGrath

Question:

33. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation if, in view of the difficulties of retailers across the country, he will examine the problems facing the sector; and if he will make a statement on the matter. [9077/13]

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Niall Collins

Question:

46. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation the way he will assist the retail sector; and if he will make a statement on the matter. [9092/13]

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Written answers

I propose to take Questions Nos. 13, 33 and 46 together.

The Government recognises the importance of the retail sector to Ireland’s economy. It is employment-intensive, and covers every community in the country. The combined wholesale and retail sector employs almost 273,000 people in Ireland – that is almost 15% of our total workforce.

In recognising the importance of the sector to the economy, the 2012 Action Plan for Jobs contained a number of measures which support the retail sector directly. These actions, for delivery across a number of Departments and agencies, included:

- a renewed focus on prompt payments;

- the provision of support to retail firms seeking to internationalise;

- the provision of funding for the up-skilling of workers in the sector; and

- reform of the statutory wage setting mechanisms.

Other important changes which we have delivered and which will help the retail sector include improving access to finance, including through the temporary Partial Loan Guarantee scheme and the Microfinance Fund, and the extension of the Seed Capital Scheme and the Employment and Investment Incentive Scheme to the retail sector. Introducing a lower rate of VAT on certain goods and services, halving the lower rate of employers’ PRSI, and the freezing or reducing of the Annual Rate of Valuation by all but one Local Authority in 2012 should also help to ease the pressure on the sector.

I will announce further measures to assist the retail sector in the 2013 Action Plan for Jobs, which will be launched in the coming days. These will include initiatives to encourage more retailers to trade online, the establishment of a single web portal for business licences applications, and other general measures to improve cost competitiveness.

The Government will continue to explore further measures that can be taken to support the retail sector. I frequently meet with representatives of the sector to hear the challenges they face. These engagements have assisted me in formulating the measures which will be included in the forthcoming Action Plan for Jobs.

Copyright Legislation Review

Questions (14)

Catherine Murphy

Question:

14. Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the work of the copyright review committee; when the final report of the committee is to be expected; the number of submissions received by the Committee; the way he intends to respond to the report once it is delivered; and if he will make a statement on the matter. [9033/13]

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Written answers

An independent Copyright Review Committee was established by Minister Richard Bruton in May 2011 to examine the Irish copyright framework in order to identify areas that might be considered to create barriers to innovation and to make recommendations to resolve any problems identified, whether at national or EU level. As part of the Committee's terms of reference, they were asked also to consider the USA style ‘fair use’ doctrine to see if it would be appropriate in an Irish/EU context. This doctrine is concerned with circumstances in which copyright material may be used without the express permission of Right Holders.

The Committee undertook an initial consultation during the summer of 2011 and received a large number of submissions from a broad spectrum of interested parties. The outcome of this consultation phase resulted in the publication of a comprehensive Consultation Paper in February 2012 which developed the issues advanced in the submissions and posed specific additional questions arising from the first round of consultations.

A further round of consultations was initiated by the Committee in March 2012 covering issues affecting the different categories of persons affected i.e. Right Holders, Collecting Societies, Intermediaries, Users, Entrepreneurs, Heritage Institutions and Fair Use under a wide range of headings. In addition, a public meeting was held on 24th March 2012 for the purpose of facilitating broader discussion on issues arising from the Consultation phase. In response to the second round of consultation and the public meeting, in the region of 180 submissions were received by the closing date for receipt of submissions, in which many complex and substantive matters were raised. These further submissions are currently being examined by the Committee members who are working to produce their Final Report by end March 2013. I look forward to receiving the Committee's report and will be examining it closely at that time.

Regional Development

Questions (15)

Denis Naughten

Question:

15. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the steps being taken to promote investment in the midland and western regions; and if he will make a statement on the matter. [9036/13]

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Written answers

In addition to the work of the enterprise development agencies operating under the aegis of my Department, whose statutory function is, in the case of IDA Ireland, to attract foreign direct investment (FDI) and, in the case of Enterprise Ireland, to support indigenous industry, the Action Plan for Jobs forms a key element of this Government's approach to rebuilding the economy and getting people back to work. Under the Action Plan process, the Government publish a series of measures to support job creation and retention each year.

The 2012 Action Plan for Jobs, which was published in February 2012, provided a comprehensive framework for actions right across Government and the public sector to support economic growth and job creation. The Enterprise Development agencies were at the forefront of implementing the Action Plan for Jobs across all regions. I am pleased to say that 2012 was a particularly good year for job creation in Agency supported companies with IDA client companies creating a total of 12,722 new jobs and Enterprise Ireland client companies creating a total of 12,861 new jobs.

In the midlands and western regions, there are in excess of 39,000 people employed in full and part time employment by IDA Ireland and Enterprise Ireland client companies.

For IDA purposes, the Midlands and West Region consists of the Counties Laois, Longford, Offaly, Westmeath, Galway and Mayo. The key sectors of focus for the Regions are life sciences, information and communications technologies and high value services activities. IDA primarily promotes the city of Galway and the towns of Athlone, Mullingar and Tullamore to potential investors. In addition to attracting new FDI, IDA also works closely with its existing client companies with a view to getting them to upgrade and consolidate their existing businesses. The agency also works closely with the educational institutions and FÁS with a view to providing specialised training to those interested in upskilling.

Enterprise Ireland’s Midland region consists of Laois, Longford, Offaly and Westmeath while the Western Region consists of Galway, Mayo and Roscommon. EI has a number of support programmes to address the multi-disciplinary demands of entrepreneurship and the diversity of business types in the indigenous sector. The agency supports companies to achieve productivity gains, internationalisation and export growth. It assists with research and development, management skills acquisition, market information and seed and venture capital.

As the Deputy will be aware, my Department recently introduced two targeted National schemes to support an additional flow of credit to SMEs, namely, the Microenterprise Loan Fund and the Credit Guarantee Scheme. These schemes will support business investment, job maintenance and job creation around the country.

Work on facilitating access to finance for all viable businesses will remain a priority in the context of the forthcoming Action Plan for Jobs 2013. The 2013 Action Plan for Jobs, which will be published shortly, will outline how the Government proposes to ensure that the target of creating 100,000 new jobs over the period 2012 to 2016 will be achieved.

Job Creation

Questions (16)

Pearse Doherty

Question:

16. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the number of jobs created by Industrial Development Agency supported businesses along the Border region; and the total number of job losses in IDA supported business along the region. [9051/13]

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Written answers

The Forfás Annual Employment Survey reports on job gains and losses in companies supported by the enterprise development agencies. The 2012 survey shows that the total number of new jobs created in IDA Ireland’s client companies in the five Border counties of Cavan, Louth, Leitrim, Donegal and Monaghan was 619 while the number of job losses was 264.

IDA Ireland has informed me that there are a total of 52 IDA client companies located in these five counties which employ 5,390 people in full and part time employment. IDA Ireland has explained that, in seeking to achieve balanced regional development and the broader goal of securing new foreign direct investment (FDI) projects for Ireland in a very competitive global environment, the concept of scale is crucial. Leading global corporations require a significant population pool, access to qualified talent, world class physical and digital infrastructure as well as the availability of sophisticated professional and business support services. Ireland has only one such Region, the Greater Dublin area, so in order to achieve balanced regional economic development, IDA prioritises the marketing of its Gateway locations within each Region as the locations of critical mass and highlights the opportunities provided by other locations on an opportunistic basis, which are within commuting distances of these Gateways.

With the improved infrastructure that is now in place, a significant number of people commute within Regions and a project win in one location has a positive impact on the other surrounding areas. In this context, during 2012 there were a number large job announcements in Louth which will have a positive economic impact, both directly and indirectly, on the Border Region as a whole.

I am mindful of the concerns that have been expressed to me by Deputies on all sides of the House about the relatively low level of site visits to certain regional locations. I have, accordingly, raised this matter with the CEO of IDA Ireland with a view to exploring what further initiatives can be taken to influence potential investors to invest in such locations.

That having been said, we must remember that it is the investor in all cases who decides where to invest and an investment win for Ireland regardless of the location has to be seen as a plus for the country as a whole. I have no doubt that the 2013 Action Plan for Jobs, which is to be published in the coming days, will build on the achievements of the 2012 Plan and bring increased employment and prosperity to the regions generally.

Job Creation Data

Questions (17)

Michael Colreavy

Question:

17. Deputy Michael Colreavy asked the Minister for Jobs, Enterprise and Innovation the number of additional jobs now on site through the investment in Vistamed in Carrick on Shannon. [9060/13]

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Written answers

Enterprise Ireland has had an active relationship with VistaMed and is working with the company to ensure growth is concentrated in Ireland. In particular, the agency is seeking to ensure that VistaMed becomes the preferred centre for new medical product development within the conglomerate Group and that the maximum number of new jobs is created in Ireland.

Enterprise Ireland has invested in the company since I announced 79 new jobs in the company in 2011 and there has been a substantial increase in employment in the company since. However I understand from Enterprise Ireland that employment figures for individual agency supported companies are held in confidence.

The company is now undertaking a major expansion of its facilities and capabilities which will ensure it is optimally positioned to capture increasingly higher value-added contracts in expanding international territories.

The medical technologies industry is of key importance to the Irish economy and has continued to grow year on year despite the global recession.

The sector employs 25,000 people directly in Ireland and had exports in excess of €7.3bn in 2011 – up 14% on 2008 levels.

The Government continues to invest in Research and Innovation in this sector, despite the economic challenges. Medical Devices is one of the priority research areas identified under Research Prioritisation, which aims to optimise the use of State funding invested in research and development, in terms of economic and societal impact and ultimately, jobs.

Public Service Reform Plan Measures

Questions (18)

Micheál Martin

Question:

18. Deputy Micheál Martin asked the Minister for Jobs, Enterprise and Innovation the number of his Department's non-core public service activities that have been selected for priority outsourcing to companies based here; and if he will make a statement on the matter. [9098/13]

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Written answers

I take it that the Deputy is referring to the Public Service Reform programme agreed by Government in November 2011. In July 2012, the Government agreed a range of actions aimed at achieving a focused and integrated approach to external service delivery of non-core processes with the objective of reducing costs and focusing staff on priority areas.

As part of this approach, the Government has decided that all proposed new services across the Public Service will be tested for external service delivery before any approval to provide the service internally will be granted. External service delivery leads have been appointed in every Department and Sector. The Minister for Public Expenditure and Reform, Brendan Howlin, has responsibility for overseeing the development and implementation of external service delivery policy for the Public Service.

In respect of my Department’s ICT requirements, a significant amount of services such as systems development support for financial systems, network management support, Lotus Notes system development and support and my Department’s ICT Helpdesk, are already outsourced, because of the significant complexity of systems, technology support specialisation, and limited technical resources within the Department.

In line with government policy, my Department continually appraises the delivery of ICT services, to determine the optimal way of delivering such services, whether that be by outsourcing or delivery using internal resources. In addition to proposals for outsourcing, there are also various initiatives in place for the delivery of shared services.

In May 2012, the Government approved the establishment of a HR Shared Service Centre for the Civil Service to be known as PeoplePoint. The financial appraisal conducted by the Department of Public Expenditure and reform suggests implementing the HR Shared Service will reduce headcount across the Civil Service by 17% and costs by 26% with annual net savings of €12.5 million. My Department is engaging fully with the project which is still at an early stage.

My Department is also participating in the Shared Services projects being managed by the Department of Public Expenditure and Reform in respect of Payroll, Financial Management and Banking.

Alternative Energy Projects

Questions (19)

Michelle Mulherin

Question:

19. Deputy Michelle Mulherin asked the Minister for Jobs, Enterprise and Innovation in view of the recent signing of a Memorandum of Understanding with the British Government for the support of electricity generated by wind energy from the State, the plans that are in place to attract wind turbine manufacturing companies here to set up new operations and the progress being made on same; and if he will make a statement on the matter. [9037/13]

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Written answers

The recent signing of a Memorandum of Understanding on Co-operation in the Energy Sector between my colleague Mr Pat Rabbitte, Minister for Communications, Energy and Natural Resources, and Mr Edward Davey, the United Kingdom Secretary for Energy and Climate Change, is a very welcome development and provides the confidence and assurance to those in the wind energy sector that Ireland is open for business and is clearly a destination for investment.

The Memorandum of Understanding is an important step in a long process of attracting investment in this sector, and provides the scale necessary to attract elements of the wind energy supply chain to Ireland with subsequent additional employment opportunities. I have been informed by IDA Ireland that it is actively engaged with a number of overseas target companies in relation to establishing operations in Ireland. Many of the employment opportunities will be realised by local, Irish owned companies and IDA Ireland and Enterprise Ireland are working closely together to maximise the benefits and employment potential that is inherent in this opportunity.

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