Robert Troy
Question:97. Deputy Robert Troy asked the Minister for Jobs, Enterprise and Innovation the measures he will put in place to help the retail sector; and if he will make a statement on the matter. [18664/13]
View answerRetail Sector
Questions (97, 104, 110, 121, 137)
Éamon Ó Cuív
Question:104. Deputy Éamon Ó Cuív asked the Minister for Jobs, Enterprise and Innovation the measures he will put in place to help the retail sector; and if he will make a statement on the matter. [18654/13]
View answer
Timmy Dooley
Question:110. Deputy Timmy Dooley asked the Minister for Jobs, Enterprise and Innovation the key elements of his strategy to help the retail sector; and if he will make a statement on the matter. [18666/13]
View answer
Brendan Smith
Question:121. Deputy Brendan Smith asked the Minister for Jobs, Enterprise and Innovation the terms of reference for the proposed Interdepartmental Group to consider further possible measures to assist the retail sector, as per action 309 in Jobs Action Plan for Jobs 2013, the proposed membership of same group; if there will be retailers on the group; and if he will make a statement on the matter. [18659/13]
View answerTimmy Dooley
Question:137. Deputy Timmy Dooley asked the Minister for Jobs, Enterprise and Innovation the key elements of his strategy to help the retail sector; and if he will make a statement on the matter. [18646/13]
View answerWritten answers
I propose to take Questions Nos. 97, 104, 110, 121 and 137 together.
I am acutely aware of the importance of the retail sector in the Irish economy. The combined wholesale and retail sector in Ireland employs 273,000 people. The sector also supports employment in other related services, such as transport and logistics. A number of new measures of particular assistance to retail businesses under pressure have been introduced by this Government including: the introduction of the Micro Finance Loan Fund and Credit Guarantee Scheme; reform of wage setting mechanisms and removal from the JLCs of the setting of a Sunday premium; extension of seed capital and employment and investment incentive scheme to the retail sector and reduction of employers PRSI and a low rate of VAT for certain sectors.
In recognising the importance of the retail sector to the economy, the Action Plan for Jobs 2013 contains a number of measures aimed at supporting the sector. These include an initiative to increase the number of small businesses trading on-line and an initiative to streamline business licence application procedures. The retail sector has been chosen to pilot the licencing initiative as it is one of the sectors which requires a multiplicity of licences and where the positive impact of streamlining the application process can be realised fairly quickly. The intention is that an integrated licensing application system, incorporating up to 25 licences in the retail sector, will be developed in 2013. Additionally, the Government has committed to strengthening the Credit Review Office to deal with problems in getting access to finance and integration of local authority business support into a stronger local enterprise office to support the emergence of a better local environment for micro and small businesses.
The Government has also committed, in the Action Plan for Jobs, to establishing an Interdepartmental Group to undertake a short examination of further possible measures to assist the retail sector, which could, for example, be considered in the context of the Budget or the 2014 Action Plan for Jobs. The Group will comprise key Government Departments and will consult with relevant stakeholders across the retail sector as part of its work. The composition of the Group is currently under consideration by officials in my Department. The Terms of Reference for the Group will be agreed by the Group at its first meeting, which is due to take place in the 2nd quarter of 2013.
Economic Growth Initiatives
Questions (98)
Bernard Durkan
Question:98. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which innovation/technology has contributed to national recovery with particular reference to the extent to which industry here has been in a position to access and avail of advances in this area; if he will outline the most important factors likely to affect growth in industry in the future and the means whereby any issues may be addressed; and if he will make a statement on the matter. [18578/13]
View answerWritten answers
The importance of innovation to Ireland’s on-going and future economic recovery has been well recognised by the Government as being crucial to growth in both our indigenous and FDI sectors. IDA has transformed its investment profile with RDI projects increasing from €80m in 2004 to €700m in 2011 - representing some 50% of IDA investment wins. It was most encouraging to see that the recent European Commission’s Innovation Union Scoreboard, published in spring 2013, shows Ireland retaining its position among those EU Member States with above average performance in their research and innovation systems. In addition, improvements have taken place in Ireland’s cost competitiveness, 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.
IBM’s Global Location Trends Report of 2012 places Ireland:
- 1st in the world for inward investment by quality and value;
- 1st in Europe for jobs created in Research and Development;
- 1st in Europe for investment in the pharmaceutical sector; and,
- 2nd is Europe and 4th globally for the number of investment jobs per capita.
In a modern economy, highly innovative sectors deliver high returns. In Ireland, we have some of the largest and most dynamic medical device and pharmaceutical companies in the world. Nine of the top 10 pharmaceutical companies in the world have a base in Ireland, as do eight of the top 10 medtech companies. The life sciences sector in Ireland accounts for over 50,000 jobs and €50 billion worth of exports. High value added, productive manufacturing is increasingly dynamic, sophisticated and innovative and requires investment in research and development. Statistics show that exports from R&D performing companies have increased from €44bn in 2003 to €111bn in 2011, while for non R&D performing companies, exports decreased from €48bn to €30bn over the same period. This clearly demonstrates the significant contribution investment in R&D makes to the national recovery effort.
There are a number of factors which are likely to affect growth in industry; export-led growth is essential for a return to sustainable economic recovery and it is identified as a key component of the Programme for Government. Cost competitiveness is a critical foundation of international competitiveness and we are cognisant that we must use research and innovation to build a competitive advantage. Irish cost competitiveness has improved markedly over the last three years and we need to ensure this improvement continues. Continued innovation in products and services is also crucial in building a competitive advantage. Measures designed to support industry growth are set out in the Action Plan for Jobs 2013 and include improved access to finance by SMEs, further improving our skills base, encouraging entrepreneurship and supporting startup activity, assisting our businesses to grow, and developing and deepening opportunities from global investment. Building competitive advantage is also a key driver of growth and the Action Plan includes a particular focus on using Research and Innovation to drive job creation.
In this context, the Government’s strategy is to accelerate the economic and societal return on our STI investment, especially in terms of sustainable jobs. In particular we aim to further strengthen enterprise engagement with and take-up of public research and to drive commercialisation. A number of initiatives are being rolled out across Government in support of this strategy. Implementation across Government Departments and agencies of the recommendations in the report of the Research Prioritisation Steering Group seeks to maximise the impact of our spend by focussing the majority of public competitive research funding on 14 priority areas which are most likely to deliver societal and economic impact. Other initiatives include expanding the remit of Science Foundation Ireland to cover applied research; a new Intellectual Property Protocol which gives more clarity and certainty around ownership of IP emerging from state funded research; the establishment of a Central Technology Transfer Office to act as a one stop shop providing an effective interface between industry and the research community; and the R&D tax credit scheme which continues to encourage business to invest in research.
Employment Rights
Questions (99)
Róisín Shortall
Question:99. Deputy Róisín Shortall asked the Minister for Jobs, Enterprise and Innovation the action he proposes to take to deal with the position of workers whose contract of employment expires on their sixty-fifth birthday, a year before the official State pension age; if he has any legislative proposals to allow for contracts to be extended at the request of workers in these circumstances, or to ban the making of long-term employment contracts that are not aligned with the State pension age; and if he will make a statement on the matter. [18594/13]
View answerWritten answers
There is no statutory retirement age for employees in the private sector in Ireland. A contract of employment will generally contain a retirement age but this is a matter of contract between the relevant parties.
As matters currently stand for those employees who are obliged by their contract of employment to retire at 65 years but will not receive the State pension until 66 years, the Department of Social Protection have indicated that, in terms of financial supports, social welfare benefits will continue to be available to the age of 66 for those who are contractually obliged to leave employment. Also, existing legislation provides that jobseekers whose benefit expires in their 65th year will continue to be paid benefit up until the age of 66, subject to the person having paid 156 or more qualifying contributions and satisfying the general scheme conditions.
The Department of Social Protection, which has lead responsibility for the State pension and pension age policy, is chairing an inter-Departmental Group on Working and Retirement issues, on which my Department is represented. That Department organised and chaired a Working and Retirement Forum in Croke Park last December, at which a range of stakeholder groups discussed, amongst other matters, issues related to the alignment of mandatory retirement age practices with the new State pension age. The Group is currently considering the issues highlighted at the Croke Park Forum and is preparing preliminary proposals in this regard.
The Court of Justice of the European Union (CJEU) has made rulings in a series of age-discrimination cases concerning Directive 2000/78/EC, which prohibit discrimination in employment and occupation on various grounds, including age. The CJEU has clarified that mandatory retirement ages may be set down if, within the context of national law, they are objectively and reasonably justified by a legitimate social policy aim. Directive 2000/78/EC is principally given effect in national law by the Employment Equality Acts 1998 to 2011, which come within the remit of my colleague, the Minister for Justice, Mr Alan Shatter, T.D. With regard to the extension of contracts, the Employment Equality Acts currently permit an employer to offer a fixed-term contract to a person over the compulsory (contractual) retirement age for that employment.
European Council Meetings
Questions (100)
John McGuinness
Question:100. Deputy John McGuinness asked the Minister for Jobs, Enterprise and Innovation if he will report on the recent EU EPSCO Council meeting; and if he will make a statement on the matter. [18671/13]
View answerWritten answers
The Employment, Social Policy, Health and Consumer Affairs Council of Ministers met in Brussels on the 28th February. This was the first formal meeting of the EPSCO Council under the Irish Presidency. I co-chaired the Employment and Social Policy element of the meeting along with my colleague, Minister for Social Protection, Joan Burton.
Prior to the commencement of the formal Council proceedings, there was a meeting between the President of the European Council and EPSCO Ministers which Ireland had convened at the request of President Van Rompuy. The informal discussions focused on better ways of co-ordinating economic and fiscal policies as well as enhancing the social dimension of the EMU, including social dialogue.
Deliberations at the formal Council meeting included political agreement being reached on the Youth Guarantee. This is a significant achievement for our Presidency. The Council Recommendation is that each Member State should ensure that every young person under the age of 25 receives a quality offer of employment, or of continued education, an apprenticeship or traineeship, within four months of becoming unemployed. When implemented, the Youth Guarantee will contribute to three out of the five Europe 2020 targets by:
- increasing the employment rate,
- reducing the extent of early school leaving, and
- lifting people out of poverty and social exclusion.
There were two policy debates during the Council. Minister Burton chaired a lunch time debate on “Pension rights to support Labour Mobility” while I chaired a debate on the “European Semester”. There was broad support for the valuable role the Semester process plays in working towards our Europe 2020 targets. EPSCO also adopted the Commission’s 2013 Joint Employment Report and Council Conclusions on the Annual Growth Survey. The Council made a series of recommendations that fed into the European Council meeting on 14 and 15 March which provided guidance to national governments on strategies to be set out in their National Reform Programmes and Stability and Convergence Programmes.
The 2013 European Semester is now well under way. This is a significant challenge as we move into the second half of our Presidency. Member States are currently submitting their National Reform Programmes to the Commission for assessment. The results of that assessment will be presented on 29th May, together with proposals for country-specific recommendations for consideration by the EPSCO and ECOFIN Councils.
The Presidency's Synthesis Report on the Implementation of the European Semester reflected the view that the EU needs to ensure effective delivery of efforts along the five priorities set in the Annual Growth Survey: differentiated, growth-friendly fiscal consolidation; restoring normal lending to the economy; promoting growth and competitiveness; tackling unemployment and modernising public administration. In the areas specific to the EPSCO Council, it identified the need for Member States to address the following priorities:
- active employment, social and labour market policies with particular priority to be given to promoting youth employment;
- better performing education and training systems, ensuring that young people are equipped with the right skills and linking the worlds of work and education more effectively;
- continued application to increasing female labour participation rates, reducing long term unemployment and ensuring full participation of older workers;
- tackling the social consequences of the crisis and fight poverty and social exclusion.
The Commission introduced its proposal for a Social Investment Package (SIP). The measures in the package are aimed at enhancing people's capacities to support better involvement in society and better participation in the labour market. The intention is to benefit individuals' prosperity, boost the economy and help the EU emerge from the crisis stronger, more cohesive and more competitive.
Economic Growth Initiatives
Questions (101)
Brian Stanley
Question:101. Deputy Brian Stanley asked the Minister for Jobs, Enterprise and Innovation the steps he has taken with his counterparts in the Northern Executive to promote trade and support enterprises along the border corridor. [18631/13]
View answerWritten answers
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 and, also, 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, and particularly at the sectoral meetings, where I have direct discussions with my N.I. counterpart, Ms Arlene Foster MLA, Minister for Enterprise, Trade and Investment, on a wide range of business issues of mutual interest.
My officials engage in on-going dialogue with their counterparts in the Northern Ireland Department of Enterprise, Trade and Investment (D’ETI). A key area of such regular engagement is on the operation of InterTradeIreland , the North/South Trade and Business Development Implementation Body, which is co-funded by my Department and D'ETI. I am pleased that despite the serious economic pressures, I have been able to ensure that no significant cutbacks have been applied to our funding of that body over recent years. Another key area of engagement at Departmental level is our joint support for enterprise projects under the Interreg initiative, which is co-funded by the EU, by my Department and by either D’ETI or the Northern Ireland Department of Finance and Personnel. The most recent significant such project involves the establishment of a significant North West Science Park, to be co-located in Derry and Letterkenny, in respect of which we have agreed financial support. Officials in both jurisdictions are also engaged in a process which will hopefully see a new Interreg Scheme initiated when the current phase expires in 2014. Officials of my Department are also engaging with D’ETI in relation to work on the EU’s Regional Aid guidelines.
In addition to direct Departmental engagement, there is a long history of co-operative action between enterprise agencies on both sides of the border 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.
Several of the County Enterprise Boards in the border area are engaged in co-operative economic initiatives with various bodies in Northern Ireland, some funded by the enterprise strand of the Interreg programmes referred to above. 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, which can accrue from practical co-operation.
Retail Sector
Questions (102)
Seamus Kirk
Question:102. Deputy Seamus Kirk asked the Minister for Jobs, Enterprise and Innovation if he has had any recent meetings with RGDATA; and if he will make a statement on the matter. [18669/13]
View answerWritten answers
I am acutely aware of the importance of the retail sector in the Irish economy. The combined wholesale and retail sector in Ireland employs 273,000 people, which is one in every 7 people who were working in Ireland at the end of 2012. The sector also supports employment in other related services, such as transport and logistics. There are a number of bodies representing different parts of the retail sector, with RGDATA representing independent family owned grocery shops, convenience stores, forecourt stores and supermarkets.
I launched the first of AIB’s series of outlook reports for the SME sector on Friday last 19 April. As that report was focussed on the retail sector and undertaken in conjunction with RGDATA, I met the Director General of RGDATA, at that event. In addition, RGDATA was part of a “Local Jobs Alliance” delegation which met with Minister Bruton in September 2012. In addition, a representative of RGDATA sits on the High Level Group on Business Regulation which I Chair as the Minister for Small Business, so we engage regularly on issues relevant to the retail and small business sector through that forum, including the meeting of 30 January last. RGDATA have been active in making input in many areas affecting the business climate and many of the reforms introduced by Government have responded to these concerns.
In recognising the importance of the retail sector to the economy, the 2013 Action Plan for Jobs contains a number of measures aimed at supporting the sector. We are currently introducing new initiatives including:
- Rationalisation of 25 retail licences and provision of a single retail licensing system;
- Promoting a proposed competitive voucher scheme to assist retailers to go online;
- Strengthening the Credit Review Office to deal with problems in getting access to finance;
- Integration of local authority business support into a stronger local enterprise office to support the emergence of a better local environment for micro and small businesses.
In addition, the Government has committed to establishing an Interdepartmental Group to undertake a short examination of possible further measures to assist the retail sector, which could, for example, be considered in the context of the Budget or the 2014 Action Plan for Jobs. The Group will comprise key Government Departments and will consult with relevant stakeholders across the retail sector as part of its work. RGDATA will be one of the representative bodies which is consulted as part of that examination of the retail sector.
Credit Guarantee Scheme Implementation
Questions (103)
Michael McGrath
Question:103. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation his assessment of the impact of the Credit Guarantee Act to date; the amount of jobs that have been supported by this investment to date; and if he will make a statement on the matter. [18670/13]
View answerWritten answers
The Credit Guarantee Scheme (CGS) became operational on 24 October 2012 and as of the 28 March 2013, 24 CGS facilities were approved resulting in an additional €3,131,600 in business lending being approved by the banks. It is expected that 181 new jobs will be created and 25 jobs will be maintained as a result of the current guaranteed lending. Quarterly progress reports will be published on my Department’s website www.enterprise.gov.ie. The progress report detailing the analysis and performance of the CGS for the quarterly periods ending 31 December 2012 and 31 March 2013 are now available on my Department’s website. I have committed to conducting a full review after one year’s operation of the scheme and at that point I will fully assess the impact of the scheme.
Question No. 104 answered with Question No. 97.
Economic Competitiveness
Questions (105)
Seán Crowe
Question:105. Deputy Seán Crowe asked the Minister for Jobs, Enterprise and Innovation the steps he has taken to address the many utility costs facing enterprises which undermine our competitiveness. [18624/13]
View answerWritten answers
The recently published Forfás report “Costs of Doing Business in Ireland 2012” highlights a number of issues relating to utility costs in Ireland. Energy Costs remain relatively high in Ireland, particularly for SMEs. While Ireland is the sixth most expensive location from 15 countries benchmarked, the cost of water for industrial users remains relatively unchanged since 2007. Waste costs in Ireland remain relatively high, particularly for landfill, while Ireland is also relatively expensive for broadband, particularly when broadband quality is considered.
As part of the Action Plan for Jobs process, Forfás undertook a study to identify changes in the operation of sectoral regulators that would enhance cost competitiveness. The sectors examined in the report are energy, telecommunications, transport, waste and water. The report, which was published yesterday, also assesses Ireland’s cost performance in these sectors relative to our key competitor countries and the drivers of costs, in particular what drivers are within and outside our control in each of the sectors studied.
The study finds that in many cases policy actions have a more significant impact on cost competitiveness than regulatory changes. The report suggests that there are a number of areas where changes to the operation of sectoral regulators could have a real and positive impact on cost competitiveness. These changes relate to the focus of regulatory mandates, the level and adequacy of resources, enforcement powers and sanctions available to the regulators, and the efficiency of the appeal process. The recommendations set out in these two Forfás reports will require careful consideration by all of Government before appropriate policy responses can be developed. However the Government is already working on the development of a policy statement on Economic Regulation and has opened a public consultation process on the matter.
Action Plan for Jobs
Questions (106)
Niall Collins
Question:106. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation the role that will be played by the six industry partners in the implementation of the Action Plan on Jobs; the support that will be available to them to facilitate their roles; and if he will make a statement on the matter. [18643/13]
View answerWritten answers
On 12 March 2013, the Taoiseach and I announced the appointment of six Industry Partners to assist with the implementation and monitoring of the “Disruptive Reforms” identified by Government for implementation in 2013 as part of the Action Plan for Jobs. As set out in the press release on the announcement, the intention is that the six Industry Partners will bring their skills and experience to bear in driving the delivery of the Disruptive Reforms, in helping to identify opportunities for greater efficiency in the delivery of the proposals and in providing greater collaboration between the public and private sectors in delivering jobs.
The Industry Partners will actively participate on Steering Groups which are being set up to oversee and progress the Disruptive Reforms. These Steering Groups will be led by the line Departments with policy responsibility for the relevant initiatives. The Industry Partners will also support the Action Plan for Jobs Monitoring Committee, a high level group co-chaired by the Secretary Generals of the Department of the Taoiseach and my Department. The Secretariat to the Group is provided by the Department of the Taoiseach.
This partnership with experienced industry figures is innovative in itself and will accelerate the roll-out of the Disruptive Reforms over the coming year. Their experience and perspective should prove invaluable to the Government as we take on these strategically significant challenges. Furthermore, our combined efforts working towards shared goals will achieve more, with less, and in a shorter time than would otherwise be possible.
Trade Promotion Issues
Questions (107)
John Browne
Question:107. Deputy John Browne asked the Minister for Jobs, Enterprise and Innovation the relationship that is in place between his agencies and the Department of Foreign Affairs to ensure that overseas trade opportunities are being maximised; and if he will make a statement on the matter. [18661/13]
View answerWritten answers
Enterprise Ireland works very closely with its sister agencies, IDA Ireland, Bord Bia and other relevant bodies, to achieve the objectives set for the agencies by Government that involves trade promotion activities. Core to this work is the Department of Jobs, Enterprise and Innovation, as Enterprise Ireland’s parent Department, and the Department of Foreign Affairs and Trade on trade promotion. Enterprise Ireland also works closely with other Government Departments, such as Agriculture, Food and Marine, and Education and Skills, on developing specific sector export opportunities and enhancing the capabilities of these sectors to win more exports.
In terms of the Department of Foreign Affairs and Trade, collaboration is strong with Enterprise Ireland’s international offices co-located with Department of Foreign Affairs and Trade or another agency wherever possible. This involves 22 of EI’s 29 locations overseas. A key forum is also the Export Trade Council which was established by Government. Enterprise Ireland’s Chief Executive Frank Ryan attends the Council, chaired by the Tanaiste and that forum has a key role in fostering a collaborative approach to building Ireland’s trade base.
The relationship and collaboration between Enterprise Ireland and Department of Foreign Affairs and Trade is strong at all levels both in Ireland and in overseas markets. In Ireland, Enterprise Ireland have a strong collaborative relationship with the Trade and Promotion Division of the Department of Foreign Affairs and Trade, on a wide range of areas, including:
- Developing Ministerial led Enterprise Ireland Trade missions and events. 16 such Trade Missions were undertaken in 2012, double the number in 2011, with 18 scheduled during 2013.
- Joint Economic Commissions (JECs)
- Messaging overseas
- Annual Market plans for each priority market as agreed with the Government’s Export Trade Council.
Overseas there is equally strong collaboration in individual territories between the relevant Department of Foreign Affairs and Trade team led by the relevant Ambassador or Consul General in that market. This interaction covers a wide range of areas including;
- Detailed information sharing and joint working,
- Discussion on priorities and coordinating the focus of activities in the particular market,
- Coordination on trade promotion activities,
- Leveraging various networks such as the Global Irish Network,
- Development and implementation of action plans / priorities for Joint Economic Commissions where we have such JEC’s,
- Leveraging Ministerial visits and International Trade Missions,
- Influencing discussions on trade issues / barriers where in some instances these represent a barrier to growth in bilateral trade with a particular country.
It is worth noting, however, that the vast majority of Enterprise Ireland’s work overseas by its nature is direct detailed one to one client company work, assisting the thousands of existing and potential exporting Irish companies to identify specific potential market opportunities, evaluate those opportunities, develop detailed plans and strategies to target and secure new customers in new markets/sectors and build their export sales in those markets. Assisting Irish companies to develop and grow new and increased export sales in international markets is central to the creation and sustainment of much needed jobs in Ireland and is the primary focus and the targets by which Enterprise Ireland export activities is measured.
EI are closely linked with development of EU Free Trade Agreements that are being negotiated with important centres of economic growth in Asia, for example with Thailand, Vietnam and Malaysia and with major economic players globally such as Canada and Japan. The proposed trade and partnership agreement with the U.S. will considerably enhance the opportunities for EI client exports in this important market.
Jobs Data
Questions (108, 312)
Sandra McLellan
Question:108. Deputy Sandra McLellan asked the Minister for Jobs, Enterprise and Innovation the number of jobs in exporting enterprises; the number in the domestic economy; and changes in these since 2007. [18618/13]
View answer
Peadar Tóibín
Question:312. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will detail the total number of jobs in the exporting enterprises, the public service and in non exporting enterprises. [18520/13]
View answerWritten answers
I propose to take Questions Nos. 108 and 312 together.
The Central Statistics Office (CSO) compiles statistical data on an economy-wide basis including data on employment and unemployment levels. I am advised by the CSO that they do not differentiate between jobs in exporting and non-exporting enterprises when compiling their data. My Department has responsibility for reporting on jobs created by the Enterprise Development agencies under its remit, and details of these are set out in the tables attached. While the vast majority of these jobs are in exporting companies, a small percentage will inevitably be non-exporting.
According to CSO’s Quarterly National Household Survey, there were 1,848,900 people employed in the State at Quarter 4 2012 – a year-on-year increase of 0.1% or 1,200 on the previous year. The number of employees in the public sector declined by 9,100 (-2.3%) in the year to Q4 2012, bringing the total number of employees in the public sector to 381,800. The total reduction in employment in the public sector over the three years from Q4 2009 to Q4 2012 was 27,300 (-6.7%). Further economy-wide employment data are available on the CSO website www.cso.ie, or by contacting the CSO directly.
Number of jobs existing in CEB-supported companies
|
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
|
34,545.5 |
33,811 |
30,726.5 |
32,994 |
32,614 |
33,430 |
Numbers of Jobs Existing in Agency-Supported Companies
|
- |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
|
Enterprise Ireland |
185,030 |
161,562 |
142,919 |
138,418 |
142,122 |
145,460 |
|
IDA Ireland |
156,308 |
139,457 |
126,866 |
126,305 |
130,867 |
136,505 |
Local Enterprise Offices Establishment
Questions (109)
Jonathan O'Brien
Question:109. Deputy Jonathan O'Brien asked the Minister for Jobs, Enterprise and Innovation the stage at which the creation of the new local enterprise offices are at; and when will they be functioning. [18635/13]
View answerWritten answers
The CEB Restructuring project is the first radical reform of the system for the delivery of State support to micro and small businesses since the establishment of the County and City Enterprise Boards in 1993. This reform will bring about a new level of engagement and interaction at both national and local level in relation to enterprise support and stimulation and economic recovery and growth.
Notwithstanding the fact that it is a complex project much progress has taken place. In particular agreement has being reached recently on the Framework Service Level Agreement (SLA) between Enterprise Ireland and the Local Authorities. This is a key document and will be the blueprint for each Local Enterprise Office going forward. The SLA sets out the structure, functions and role of the LEO as well as the respective roles of Enterprise Ireland and the Local Authority. It lays down the operating environment for each LEO i.e. protocols relating to project selection and evaluation, budgetary matters, corporate governance matters as well as the policies, guidelines and metrics required in each LEO. In addition the new LEO branding and associated logo has been designed and agreed. I will shortly publish and launch the SLA, and the LEO branding and logo both of which are tangible steps to the full rollout of the new infrastructure.
The finalisation of LEO locations, accommodation arrangements and personnel resources for each LEO is continuing and increased focus will now be placed on the “housekeeping” issues such as integration of IT systems and Financial Management systems, management of transfer of data etc. all of which will be central to a smooth transition from a CEB structure to a Local Authority based LEO. It is vital to get these elements right so as to ensure a seamless transition in terms of client service and delivery upon dissolution of the CEBs. In relation to the formal dissolution of the CEBs officials of my Department are continuing, in conjunction with the Office of the Parliamentary Counsel, to develop draft legislation with a view to bringing the Bill to Government shortly, with a view to enactment before the summer recess.
Question No. 110 answered with Question No. 97.
Job Creation
Questions (111, 132, 139)
Martin Ferris
Question:111. Deputy Martin Ferris asked the Minister for Jobs, Enterprise and Innovation in view of the centrality of business and trade to economic recovery across the island, the proposals he has developed to extend the budget and remit of Intertrade Ireland. [18632/13]
View answerMartin Ferris
Question:132. Deputy Martin Ferris asked the Minister for Jobs, Enterprise and Innovation the steps he has taken to ensure that where there is job creation policy alignment North and South that joint working is developed. [18633/13]
View answerBrian Stanley
Question:139. Deputy Brian Stanley asked the Minister for Jobs, Enterprise and Innovation if he will consider working with his counterpart in the Northern Executive to develop all Ireland business and economic statistics. [18630/13]
View answerWritten answers
I propose to take Questions Nos. 111, 132 and 139 together.
My Department is very conscious of the importance of comprehensive business and economic statistics relating to both the Republic of Ireland and Northern Ireland. The availability of such data is crucial to understanding the background and context of the various business and trade issues which both our administrations are addressing. A significant range of such economic data is compiled by our Central Statistics Office and by the Northern Ireland Statistics and Research Agency (NISRA) and this is publicly available. From time to time other research is undertaken by Departments and bodies on both sides of the border. Specifically relevant is the work of InterTradeIreland, the North South Implementation Body with specific responsibility for promoting trade development on an all-island basis, and which is co-funded by my Department, as this body has analysed and published data on key cross-border economic activities. This is a valuable source of information to help inform future business activity and enhance cross-border engagement.
In relation specifically to the finances of InterTradeIreland, I am very happy to confirm that the Body’s budget has been kept relatively intact over the last number of years despite the enormous budgetary cuts implemented elsewhere. This has meant that that body has been able to roll out many successful programmes including FUSION, (Technology transfer), INNOVA (Collaborative Research & Development) and ACUMEN (Cross-border sales). I will of course continue to keep InterTradeIreland’s operations under review but we must of course, be conscious of the fact that there should be no duplication of their work with existing programmes undertaken by the other enterprise development Agencies and bodies.
In relation to job creation North and South, this is a key priority of both administrations on the island and we work closely on a range of initiatives. In addition to co-funding InterTradeIreland, as mentioned above, I regularly meet my counterpart Ms Arlene Foster MLA, Minister for Enterprise, Trade and Investment. There is successful cooperation with the N.I. administration to ensure the implementation of the EU’s INTERREG programme which assists enterprise development and both Departments work to ensure that all relevant areas for potential enterprise development, between the two jurisdictions for mutual benefit, are pursued. In addition, both Enterprise Ireland and Invest Northern Ireland have a long history of cooperation and have developed and rolled out many effective cross-border enterprise development initiatives that have benefitted firms in both jurisdictions and in the border region. The enterprise agencies will continue to work closely to ensure that all cross-border business opportunities are exploited.
Employment Rights
Questions (112)
Mary Lou McDonald
Question:112. Deputy Mary Lou McDonald asked the Minister for Jobs, Enterprise and Innovation if he will detail the impact of the recent Industrial Relations Act on the wages of low paid workers; and the way his Department monitors the wages of highest paid workers to ensure cost competitiveness. [18617/13]
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The Industrial Relations (Amendment) Act 2012 came into effect on 1 August 2012. The main purpose of the Act is to implement the commitment in the Programme for Government to reform the Joint Labour Committee system. The Act provides for a radical overhaul of the system so as to make it fairer and more responsive to changing economic circumstances and labour market conditions. It reinstates a robust system of protection for low paid and vulnerable workers in these sectors in the aftermath of the July 2011 High Court ruling in the John Grace Fried Chicken case.
Workers that were in employment in a JLC sector prior to the July 2011 judgment, continue, unless otherwise agreed with their employer, to be covered by their individual contracts of employment and enjoy the terms set out in the ERO that was in place up to 7 July 2011. Workers who commenced employment in those sectors after 7 July 2011 are covered by the full suite of employment rights legislation, including the National Minimum Wage Act, the Organisation of Working Time Act and the Payment of Wages Act. The 2012 Act also provides that a Review of each Joint Labour Committee be carried out by the Labour Court. The aim of the review is to ensure that the range of sectors and enterprises to which they apply remains appropriate, with consequent changes to their Establishment Orders if necessary. That Review was completed on 12 April 2013.
The review assisted the Labour Court’s deliberations as to whether any JLC should be abolished, maintained in its current form, amalgamated with another JLC or its establishment order amended and the Labour Court is required to make recommendations to me to this effect. The Labour Court submitted its report of the review and recommendations in relation to the 10 existing JLCs to me only yesterday, 22 April. The report is detailed, comprehensive and complex and will require careful examination and consideration. I would hope to be in a position to indicate my response shortly.
It will ultimately be a matter for each Joint Labour Committee to negotiate the terms and conditions of employment for workers in their respective sectors and to be set out in proposals for Employment Regulation Orders which will require a Ministerial Order to be given legal effect. Under the terms of the EU/IMF Programme of Financial Support for Ireland, the Government will report to the Troika by end June 2013 on the impact on the labour market of reforms to sectoral wage setting mechanisms undertaken under the programme of financial assistance. Forfás is currently carrying out this review.
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.
A recently published (April 2013) Forfás report “Costs of Doing Business in Ireland 2012” indicates that labour costs in Ireland have fallen marginally since 2008 and when compared with the Euro area, where labour costs have been rising in recent years, our competiveness position in this area has shown a significant improvement. However the report also indicates that labour costs in Ireland have started to increase, albeit at a lower rate than elsewhere in the Euro area. The report makes a number of recommendations which can improve the operation of Ireland’s labour market, encourage employment creation and maximise labour supply. I and my colleagues in Government, will consider the recommendations set out in this report and develop appropriate policy responses to ensure that Irish labour costs remain competitive.
Economic Competitiveness
Questions (113)
Dessie Ellis
Question:113. Deputy Dessie Ellis asked the Minister for Jobs, Enterprise and Innovation if he will detail the impact of the Competition Authority in reducing costs to business and the consumer. [18629/13]
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Competition has many benefits; it gives consumers more choice and better value for money, it encourages businesses to innovate by creating new and better products and services and, critically, it drives competitiveness and economic growth which results in job creation and retention, higher living standards and lower costs. The Competition Authority is the statutory independent body responsible for enforcing national and EU competition law in the State. In fulfilling this function it investigates suspected breaches of competition law and takes enforcement action where appropriate. The Authority also has a function to promote competition in the economy and it does so by, inter alia, studying areas of the economy to examine how competition is working and by identifying legislation and administrative practices that impact negatively on competition.
The Authority has carried out detailed market studies into a number of sectors of the economy to establish how competition is working in those sectors and to identify any restrictions that hinder competition. In this context the Authority has made recommendations, addressed to relevant Government Ministers, aimed at removing barriers or restrictions to competition within the sectors. The Authority is currently examining how competition is working in the ports sector in Ireland and it has previously examined aspects of banking and insurance, the retail planning guidelines, the import/distribution sector and a number of professions including the legal profession, GPs, and architects.
Whether it is through the elimination of anti-competitive behaviour such as price-fixing and other cartel-like practices or through effect been given to Competition Authority recommendations the result is a more competitive and innovative environment with lower costs and greater job opportunities.
Job Creation Targets
Questions (114)
Mick Wallace
Question:114. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation in view of the fact that the private sector has not delivered the number of jobs predicted, his views on whether it is time for the State sector to take a different approach and play a direct role in job creation; and if he will make a statement on the matter. [18596/13]
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Job creation is a key priority for the Government. As I have pointed out on many occasions, the Government does not create jobs – entrepreneurs and successful businesses do. However, the Government has a lead role to play in providing the environment where businesses can start-up, expand and create jobs.
The Action Plan for Jobs has set the objective of supporting the creation of 100,000 net new jobs in the economy by 2016 and making Ireland the best small country in which to do business. My role and that of other Government Ministers and Departments is to ensure that we have the right policies in place to support enterprise growth and innovation so that employment can be created and maintained. The Action Plan for Jobs focuses on the creation of 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 business, improve their access to finance, further improve our export performance and support the development of key growth sectors.
The Action Plan for Jobs is aimed at supporting the transition from the old, failed economy reliant on property, banking and debt to a new, sustainable, jobs-rich economy based on enterprise, exports and innovation. In the year since we launched the first plan that transition has been gathering momentum, with 12,000 net jobs added in the private sector in 2012 and a record year for job-creation by exporting companies in multinational and indigenous sectors in the same year.
One of the significant benefits of the approach taken in the Action Plan is that is has focussed Agencies and Departments right across Government to put forward measures that would make it easier for enterprises to develop opportunities and create employment. It is not of course possible to attach a specific job’s target to many of these actions. The results from 2012 demonstrate that the plan is working. However, the Government acknowledges that we have a long way to go. If we are to sustain and accelerate this positive movement, we must continue a relentless focus across Government on jobs and competitiveness. The challenge now is to build on the progress we have made, work harder, deliver more ambitious change – and we are determined to do that to tackle our number one priority and create the jobs we need.