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Tuesday, 30 Apr 2013

Written Answers Nos. 270-277

Departmental Agencies Funding

Questions (270)

Billy Kelleher

Question:

270. Deputy Billy Kelleher asked the Minister for Jobs, Enterprise and Innovation if his Department, or any of the bodies under the aegis of the Department have been requested to provide support to any tobacco or tobacco related company; the names of the companies involved; the nature of such support; and the level of support that has been provided; and if he will make a statement on the matter. [19944/13]

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Written answers

I am informed by Enterprise Ireland that Exclusive Cigar Manufacturing Ireland Ltd was paid funding of €836,522.57, of which €85,281.87 was repaid. This funding was approved and paid under a number of the support programmes of the agency during the period 1992 to 2012.

In June 2012, Enterprise Ireland met the company and the issue of the provision of capital and internationalisation supports were discussed. As the company has a strong export focus, support through the Internationalisation Fund was deemed the most appropriate at the time. The agency is continuing to liaise with the company in regard to this Fund.

Official Engagements

Questions (271)

Andrew Doyle

Question:

271. Deputy Andrew Doyle asked the Minister for Jobs, Enterprise and Innovation if the Secretary General of his Department, for the purpose of transparency and accountability, will publish his diary on the Department's website on a monthly basis. [19967/13]

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Written answers

The Secretary General of my Department has no difficulty with the principle of making his diary accessible through the Department’s website.

He proposes to publish the diary on a trial basis for a number of months and will review the practice in the light of whether there is any significant level of hits on the relevant page.

IDA Site Visits

Questions (272)

Joe Carey

Question:

272. Deputy Joe Carey asked the Minister for Jobs, Enterprise and Innovation the number of Industrial Development Agency site visits that have taken place with prospective investors to County Clare and the mid-west region in the first three months of 2013; and if he will make a statement on the matter. [19998/13]

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Written answers

I have been informed by IDA Ireland that, to date in 2013, there have been 13 agency sponsored site visits by potential investors to the d-West Region, of which 4 were to County Clare. These site visits were from new companies visiting the location for the first time and from senior executives of existing companies.

As Ireland competes for high quality investments, the concept of scale is crucial. Leading global corporations require a significant population pool, access to qualified talent, world standard physical and digital infrastructure coupled with the availability of sophisticated professional and business support services.

The Mid West Region, which includes Clare, has been particularly successful in recent years in terms of attracting inward investment from FDI companies. There are 59 IDA client companies in the Mid-West Region employing 7,885 people. IDA Ireland has strong relationships with these companies and works closely with them to ensure their long term sustainability and to encourage their growth, development and continuing re-investment in their sites.

I am mindful that, in order to ensure that Ireland can continue to compete globally for FDI projects, it will be necessary to undertake an in depth analysis of our FDI strategy with a view to informing the formulation of an appropriate strategy for the period post 2014. This analysis, which will be undertaken later this year, will take account of factors such as key trends emerging in FDI best practice internationally, Ireland’s strengths in attracting FDI, any changes to the EU’s State Aid rules that may be introduced in the near future and our agreed approach to regional development.

In the meantime, IDA Ireland has assured me that it will in 2013, in accordance with the Government’s recently announced 2013 Action Plan for Jobs, seek to target more than 130 new investments, secure €500 million of R&D expenditure and create 13,000 new jobs in its client companies.

Patent Legislation

Questions (273)

Andrew Doyle

Question:

273. Deputy Andrew Doyle asked the Minister for Jobs, Enterprise and Innovation the implications that a unified patent court will have on patent law here; if any offices or branches of the courts and arbitration centres will be based here; and if he will make a statement on the matter. [20013/13]

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Written answers

The Agreement on the Unified Patent Court (UPC) was signed in February this year by twenty-five Member States, including Ireland. Work is now advancing on the next stage to allow for ratification of the Agreement. In Ireland’s case, a Referendum is required to be carried to allow for the transfer of limited jurisdictional powers to the Unified Patent Court relating solely to patent disputes. In advance of ratification, significant preparatory work is necessary which is expected to take up to eighteen months to complete. This work includes setting the Rules of Procedure of the Court, selection and training of Judges, setting up an ICT system to provide for case management at the Court etc.

The UPC will not impact on substantive patent law in Ireland or on the operation of the Courts in Ireland which will continue to play a role in the determination of patent- related disputes that come before the Irish Courts.

When operational, the UPC will provide a system of arbitration for patent-related disputes. This will be in relation to European patents that are granted as at present by the European Patent Office in Munich and, patents that will be granted under the new unitary patent regime. The unitary patent will provide a new option for Irish business to protect their patents in a cost effective manner by filing a single application and thereby obtain patent protection in the territories of the 25 participating States (with the exception, thus far, of Spain and Italy). The unitary patent and the UPC are interlinked in that both will enter into effect simultaneously.

The Agreement on the UPC provides that it will comprise of a Court of First Instance and a Court of Appeal. The Court of First Instance will be made up of three divisions namely: the central division, local divisions and possible regional divisions. The Court of Appeal is to be located in Luxembourg and will also serve as the Court Registry.

1) Central division: The Central Division of the Patent Court will be located in Paris. Two specialist sub-divisional courts will be established, one in London for cases involving ‘chemistry patents’ (including pharmaceutical products) and the other in Munich for mechanical engineering cases.

2) Local division: It is possible under the Agreement for each contracting State to set up a local division.

3) Regional division: The option also exists under the Agreement to form a regional division i.e. where two or more contracting states would join together to function as a local division for participating countries.

Thus, Contracting States will have the option to set up a local division of the Court, join a possible regional division or, confer jurisdiction on the central division of the Court alone. All States intending to ratify the UPC Agreement will need to decide, in advance of ratification, on the particular Court structure that it proposes to adopt. As Ireland’s participation in the UPC arrangement raises issues that fall within the remit of jurisdictional arrangements in the Courts area generally and thus are of interest to my colleague the Minister for Justice and Equality, my Department is in contact with that Department on this issue.

In relation to arbitration and mediation under the UPC Agreement, Lisbon and Ljubljana will host Patent Arbitration and Mediation Centres.

Companies Law Issues

Questions (274)

Pearse Doherty

Question:

274. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation his views on the fact that separate accounts for Ireland are not available for many consumer multinational companies operating here. [20028/13]

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Written answers

The contents of the financial statements of companies are governed by relevant EU Company Law Directives and Regulations and by the applicable accounting standards.

The requirements regarding the preparation and publication of the accounts of limited companies and groups are determined by the First, Fourth and Seventh EU Company Law Directives and by the EU IFRS Regulations. These requirements are largely reflected in the Companies Act, 1963, the Companies (Amendment) Act 1986 and the European Communities (Companies: Group Accounts) Regulations 1992, as amended. The EU Eleventh Company Law Directive, implemented as the European Communities (Branch Disclosures) Regulations, 1993, addresses the requirements applicable to branches of EEA companies. Irish subsidiaries of EEA companies can submit the audited group accounts of their parent to the Registrar of Companies instead of their own individual accounts provided certain conditions are met. EEA companies that have an Irish branch are required to submit only the company accounts to the Registrar of Companies. Irish companies that are subsidiaries of EEA companies and which are themselves parent companies need not produce consolidated accounts provided certain conditions are met.

There are similar provisions for subsidiaries of non-EEA companies. In such cases the consolidated accounts of the EEA or non-EEA group must be submitted to the Registrar of Companies.

I have no plans to amend this disclosure regime in relation to specific sectors in the economy, as this would be open to accusations of discrimination and, were it to be required generally in the economy, it could have implications in terms of business costs and attracting foreign direct investment.

Job Creation Numbers

Questions (275)

Peadar Tóibín

Question:

275. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will confirm that 60 new and additional posts have been created to date through the micro-enterprise loans fund; and if he will provide a breakdown of same on a county basis. [20105/13]

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Written answers

Microfinance Ireland (MFI) began operating in October 2012. For the period covering 1st October 2012 to 31st March 2013, 44 microenterprises have been supported resulting in a total of 116 full time equivalent jobs supported. Of these jobs supported 60 are in existing enterprises while the balance are new jobs. I note there has been a significant increase in March in applications and I look forward to continued interest in the facility as its availability becomes better known.

The analysis of the breakdown of approvals by county is on page 6 of MFI’s progress report detailing the first 6 months of its operation which is now available on my Department’s website enterprise.gov.ie and is also published on MFI’s website microfinanceireland.ie. It is my intention that reports of this nature will be published on a quarterly basis to ensure openness and transparency on the operation of this innovative scheme.

Job Creation Numbers

Questions (276)

Joe McHugh

Question:

276. Deputy Joe McHugh asked the Minister for Jobs, Enterprise and Innovation the percentage of new jobs that were created in 2012 and in Q1 2013 by Industrial Development Agency supported companies on a county basis. [20106/13]

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Written answers

The Forfás Annual Employment Survey reports on job gains and losses in companies that are supported by the enterprise development agencies. Details of the number of new jobs created in IDA Ireland client companies in 2012, on a county by county basis, are set out in the attached tabular statement. As data is compiled on an annual basis, results for 2013 will not be available until year end.

While reductions in overall employment figures were recorded in 2012, including a reduction in public sector numbers, there was a net increase of almost 12,000 in private sector employment over the year. This growth was predominantly in the export-oriented sectors which are supported by the enterprise development agencies, as well as in tourism.

The client companies of the enterprise development agencies under the aegis of my department created almost 10,000 net jobs during 2012. IDA Ireland client companies created 6,570 new net jobs, the highest number of new jobs in a decade, while Enterprise Ireland client companies created over 3,338 net new jobs.

Table showing the number of new jobs created by IDA client companies in 2012 on a county by county basis.

County

2012

Carlow

116

Cavan

43

Clare

37

Cork

1,979

Donegal

186

Dublin

6,389

Galway

859

Kerry

74

Kildare

176

Kilkenny

180

Laois

2

Leitrim

1

Limerick

400

Louth

386

Mayo

126

Meath

68

Monaghan

3

Offaly

31

Roscommon

53

Sligo

149

Tipp North

0

Tipp South

10

Waterford

75

Westmeath

252

Wexford

111

Wicklow

60

Action Plan for Jobs

Questions (277)

Regina Doherty

Question:

277. Deputy Regina Doherty asked the Minister for Jobs, Enterprise and Innovation the supports in place to offer follow-up support for new small business enterprises; and if he will make a statement on the matter. [20264/13]

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Written answers

The Action Plan for Jobs 2013 contains a number of policy actions to assist the development of indigenous enterprise, including small businesses such as:

- Increasing the number of businesses trading online for the first time, particularly small businesses;

- Measures to improve access to finance;

- Driving entrepreneurship and start-up companies;

- Assisting indigenous businesses to grow – to include driving the implementation of a Global Sourcing Strategy targeting the procurement of an additional €500m of domestically sourced goods and services by FDI companies in Ireland. This initiative is being driven by a joint senior management team from Enterprise Ireland and IDA Ireland; and

- Maximising access to Public Procurement opportunities for SMEs.

The Enterprise Development Agencies of my Department, in particular Enterprise Ireland (EI) and the County and City Enterprise Boards (CEBs), provide a suite of programmes to assist companies to develop their enterprises and support both start up and established businesses. All companies eligible for support from the Agencies have the same access to State services regardless of their location or status. Further information on the supports available from EI and the CEBs are available on their websites www.enterprise-ireland.com and www.enterpriseboards.ie .While grant support is focussed in the main, on the manufacturing and internationally-traded sectors, for reasons of the potential for deadweight and displacement, many locally trading, established firms can avail of soft supports, such as mentoring and training, etc. I would encourage all eligible enterprises to establish and maintain contact with Enterprise Ireland and/or the CEBs as appropriate.

Since coming into office, this Government has demonstrated its determination to fundamentally address the challenge of supporting micro and small businesses. For example, we have introduced the Microenterprise Loan Fund and the Credit Guarantee Scheme to assist both new and established businesses in gaining access to finance.

I am currently in the process of reforming the national micro and small business support infrastructure by dissolving the City and County Enterprise Boards and establishing new Local Enterprise Offices that will operate from within Local Authorities, but with clear oversight by Enterprise Ireland. To this end, a new Microenterprise Division has been established within Enterprise Ireland and this will become the national Centre of Excellence for supporting micro and small businesses, benchmarked to international standards. This fundamental reform offers the opportunity to revisit and refocus national policy in relation to the micro and small business sector with a view to ensuring that the State supports are properly targeted at that sector and that the LEOs become a “First Stop Shop” for micro and small businesses for the range of supports available across the system. The LEOs will engage will all local businesses and will offer a range of soft supports to those that are locally trading with a viable business proposition, including help with applying for a Microfinance Loan. They will also be well positioned to assist in the early identification of start-ups with the best potential to move into the Enterprise Ireland client portfolio.

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