Written Answers Nos. 18-31
18. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the progress to date on protecting employment of staff working on the UK loan book at a company (details supplied) in County Roscommon; and if he will make a statement on the matter. [33279/13]
View answerThe process regarding the sale of Bank of America’s (BOA's) UK credit card businesses is ongoing. The former MBNA Credit Card Processing facility in Carrick-on-Shannon now comprises two operations. The first, following the purchase of part of BOA's Credit Card portfolio by Apollo, is a new operation called AvantCard, which employs approximately 250 staff which transferred from BOA to AvantCard (Apollo) under TUPE regulations on 13 March 2013. The second operation remains in the ownership of BOA and employs approximately 200 people.
Apollo has acquired the entire building in Carrick and has leased back office space to BOA. BOA continues to look for a buyer for the remainder of the UK Credit Card book but no suitable buyer has been found to date. IDA Ireland remains in contact both locally and at corporate level with both BOA and Apollo/AvantCard to monitor progress and provide assistance, as appropriate, with respect to reconfiguring the Carrick facility. IDA continues to highlight the strengths of the Carrick site to a broad range of potential investors and hope that a satisfactory outcome can be reached soon.
19. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the number of additional jobs he expects to be created by the establishment of the €375,000 Enterprise Ireland competitive feasibility fund. [33490/13]
View answerEnterprise Ireland launched the new Enterprise Ireland €375K Competitive Feasibility Fund on Monday 1st July 2013 aimed at stimulating new start-ups, or expansion of existing business activity in the aviation sector. This fund, which can provide up to €25,000 per project for 15 projects, is now open for applications, and will remain open until Monday 16th September 2013.
It is difficult to validate employment projections at a feasibility stage of a project but Enterprise Ireland is confident that a number of these projects will progress to High Potential Start-Up businesses and at that point validated job projections will be possible. The Competitive Feasibility Fund will support new start-up companies or individual entrepreneurs to investigate the viability of a new significant growth oriented business or proposition in the aviation sector. It will also support established companies or groups of businesses examine the potential for expansion, diversification or spinning out of a new enterprise in the industry. The funding will enable the promoters to reach firm conclusions regarding the project's viability and strategies for developing and commercialising the innovative product or service on international markets.
The fund is open to applications from the Aviation Sector including financial services associated with the sector, Aircraft and Engine leasing, Aviation software and IT, Training, Travel related software and related services, Small Aircraft Assembly, Aircraft Dismantle, Maintenance Repair Operations Airframe and Components, Composite Repair, Parts Manufacture, Aviation Services, and other engineering and technical activities.
20. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the potential benefits and challenges for Ireland from the proposed transatlantic trade and investment partnership between the EU and the United States; and if he will make a statement on the matter. [33573/13]
View answerFollowing agreement at the Trade Council that I chaired on 14 June, the Commission now has a mandate to open negotiations with the U.S. on an historic Transatlantic Trade and Investment Partnership (TTIP). The formal negotiations between the EU and the US are due to begin on 8 July 2013. While it is far too early to anticipate the eventual negotiated outcome of the Agreement, the negotiating mandate is broad based and positions the Commission to enter the talks with strong support from the Council to negotiate the best possible deal for Europe.
According to assessments made by the EU Commission and other European bodies, a comprehensive Trade and Investment Partnership could over time boost EU GDP by 0.5% per annum bringing significant economic gains as a whole for the EU. Given the current very low level of economic growth in the EU and in Ireland, this agreement will provide a significant injection of economic activity and consequently of new job opportunities. Based on those assessments, if Ireland simply benefited in proportion to the size of our economy within the EU, a comprehensive trade and investment partnership could over time provide gains to Ireland in the order of €800 million per annum in increased GDP and 4,000 new jobs.
An independent study by the London-based Centre for Economic Policy Research (CEPR), entitled 'Reducing Barriers to Transatlantic Trade', suggests the EU's economy could benefit by €119 billion a year, up to 80% of which would come from cutting unnecessary costs imposed on business by having to comply with two separate sets of rules, and from liberalising trade in services and creating new access for exporters into the huge public procurement market in the U.S.
Given that negotiations have yet to begin, it is not possible to estimate in detail the impact on Ireland until there is greater clarity about any exchange of offers, the scale of the possible long term gains will have a positive impact on Ireland given our close trading and investment relationship with the U.S. In addition, many Irish exporters are part of European supply chains where their exports to the UK, Germany or elsewhere to the EU, feed into Europe’s exports to the U.S. While tariffs are already low on trade across the Atlantic, the objective of abolishing even these will bring benefits to business in the short term. Tariffs that average about 3% on EU/U.S. trade may appear insignificant but tariffs can be a tax on business and especially where trade is between company affiliates. That is the case for a good proportion of trade between US multinationals in Ireland and the US market.
21. Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation the position regarding the key commitment to develop an international content services centre; if he expects funding for such a project or similar project to come from the recently announced strategic investment fund; and if he will make a statement on the matter. [33469/13]
View answerIn order to deliver on a commitment in the Programme for Government regarding the development of an International Content Services Centre, my Department commissioned a Feasibility Study as part of the deliberative process around this proposal to examine what structures and policies could be developed to make Ireland a world centre for managing and trading in intellectual property. The objectives of the study were to identify and describe the emerging trends in IP Portfolio Management in corporations globally; and taking account of such global emerging trends, to identify options and models for Ireland to leverage its existing strengths to become an internationally attractive centre for managing and trading in IP, such that this could realise an economic and jobs potential.
The Study, which was undertaken by Deloitte, was finalised in January 2013 and is now being considered by officials in the Department in the context of wider policy developments and economic conditions domestically and globally. Following this consideration, proposals will be developed regarding the next steps to be taken resulting from the findings of the Study. At present, proposals and criteria for funding of initiatives under the Strategic Investment Initiative are at an early stage of development and it is too early to say if an international content services centre would fit within the scope of the Fund.
22. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he has monitored gains or losses in the domestic job sector in each of the past three years to date; if any particular issues have been identified as being fundamental in the creation of a conducive economic environment; and if he will make a statement on the matter. [33522/13]
View answerMy Department and its development agencies continuously monitor job gains and losses to ensure that the Government's offering to business in both the domestic and multinational sectors is attuned closely to the needs of business. Details of job gains and losses are set out at Tables 1 and 2. The outcome of this close monitoring is to be seen through the Action Plan for Jobs 2013 which includes 333 actions for delivery across all Government Departments and 46 Agencies and Offices to ensure a whole of Government approach in addressing the current difficult economic situation.
The Plan also includes seven landmark projects, or Disruptive Reforms, that the Government has identified as having the potential to impact significantly on job creation. Employment retention and creation continues to be the Government’s primary objective. I am confident that we now have a structure in place that is delivering the type of actions needed to continue supporting business.
Basically, the Action Plan for Jobs is all about improving the competitive position of Irish business. Competitiveness improvements are underpinning Ireland’s return to growth. Costs have reduced across the economy, in a number of areas including: property, business services and labour costs. This has provided a positive environment for exporting companies, who have fuelled growth over the past two years.
Table 1 showing the total new jobs created, job losses and net change in Enterprise Ireland Client Companies in each of the years from 2010 to 2012
|
Employment Data |
2010 |
2011 |
2012 |
|
Total Employment |
159,808 |
166,359 |
169,451 |
|
New Jobs Created |
10,987 |
14,023 |
12,861 |
|
Job Losses |
-15,354 |
-10,453 |
-9,523 |
|
Net Change |
-4,367 |
+3,570 |
+3,338 |
Table 2 showing the total new jobs created, job losses and net change in CEB-Supported Companies in each of the years from 2010 to 2012
|
Employment Data |
2010 |
2011 |
2012 |
|
Total Employment |
32,994 |
32,614 |
33,430 |
|
New Jobs Created |
4,510 |
5,331 |
4,858 |
|
Job Losses |
-4,958 |
-5,901 |
-4,602 |
|
Net Change |
-448 |
-570 |
+256 |
23. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the value of investment secured and the number of jobs created in 2012 and to date in 2013 by IDA Ireland in north Dublin, particularly in Dublin 5, Dublin 13 and Dublin 17. [33413/13]
View answerThe Forfás Employment Survey for 2012 shows that there were 511 companies supported by IDA Ireland in Dublin which employed 55,344 employees. In 2012, 6,839 new jobs were created in IDA client companies in Dublin while 3,059 were lost. The Survey does not provide data for County Dublin by postal district. Comparable figures for 2013 will be available following the completion of the 2013 survey which is expected to be completed by Forfás in November of this year.
The Survey does not provide details of investment secured by particular areas within County Dublin. IDA Ireland has indicated that, as is evidenced by announcements made by the Agency over the last number of years, a significant number relate to Dublin as leading global corporations investing in Ireland wish to have access to a significant population pool in excess of 1 million. In 2012, announcements of investment in Dublin accounted for approximately 50% of the total investments announced by IDA Ireland. Of the 11 announcements made to date in 2013 by the Agency, 50% of them relate to Dublin.
24. Deputy Timmy Dooley asked the Minister for Jobs, Enterprise and Innovation the way he believes the problem of regional employment blackspots can be tackled; and if he will make a statement on the matter. [33558/13]
View answerThe achievement of balanced regional growth is a core objective of Government. Promoting entrepreneurship, attracting inward investment and facilitating the key infrastructural needs of Irish enterprise across all regions is vital to ensuring a vigorous pipeline of new business leaders, new business ideas and entrepreneurial activity. The Action Plan for Jobs is a whole of Government, national strategy aimed at creating and sustaining jobs across all regions of the State. The objective of balanced regional development is supported by the EU Commission's Regional Aid Guidelines, which recognise that some regions can face significant structural disadvantage. Regional Aid Guidelines permit Member States to grant higher investment aid in areas suffering such structural disadvantage.
All of the enterprise development agencies have regional structures to maximise local opportunities. Both Enterprise Ireland and IDA Ireland have offices in Limerick, Cork, Waterford, Galway and Letterkenny, Co. Donegal. This regional spread allows the agencies to drive take-up of their services and supports such as entrepreneurship programmes focused on identifying new business opportunities, at a local level, thereby maximising take up and impact. In addition, EI has a network of 110 Community Enterprise Centres in operation across the regions. At present, two thirds of employment in Enterprise Ireland client companies, well in excess of 100,000 jobs, is currently located outside of Dublin.
The establishment of a one-stop-shop to provide micro-enterprise support through the dissolution of the existing CEB offices and the creation of a new network of Local Enterprise Offices (LEOs) will ensure an enhanced delivery of support to micro-enterprises in the regions and nationally. Microfinance Ireland is also providing support to such businesses. This comes in the form of loans available to microenterprises of up to €25,000 to start-up, newly-established or growing firms employing less than 10 people with viable business propositions that do not meet the conventional risk criteria applied by the banks. The Fund has a significant entrepreneurship focus and is open to anyone with a viable business proposal.
LEADER, which falls under the remit of my colleague, the Minister for Environment, Community and Local Government also provides both direct and indirect support to enterprise start-ups and already established microenterprises in rural areas all over Ireland. Since 2009, almost €20m has been provided for direct support to enterprise in rural Ireland through the Rural Development Programme (RDP) 2007-2013. A significant proportion of the resources provided through the RDP Training Measure, which has registered a further €10m in expenditure to date, also provides indirect capacity building and mentoring support for rural entrepreneurs.
To support the development of a pipeline of High Potential Start-Ups across all regions of the country, Enterprise Ireland has the following initiatives in place:
- The New Frontiers Programme
- Competitive Feasibility Fund aimed at stimulating start-ups and creating jobs and growth in the regions.
- The "Get Export Ready" Programme encompasses a wide range of practical measures for early exporters focusing on export readiness, the importance of research, developing a value proposition and the skills of export selling.
- Innovation Vouchers worth €5,000, give small companies access to the vast knowledge available in Irish Institutes of Technology, Universities and other public research bodies.
I believe that these measures combined with other initiatives set out in the Action Plan for Jobs will assist the development of investment and employment opportunities at regional level and across the country generally and help to achieve our objective of making Ireland the best small country in which to do business.
25. Deputy Seamus Kirk asked the Minister for Jobs, Enterprise and Innovation his views on collective bargaining rights for employees; and if he will make a statement on the matter. [33576/13]
View answerIt has been the consistent policy of successive Irish Governments, including this one, to promote collective bargaining through the development of an institutional framework supportive of a voluntary system of industrial relations that is premised upon freedom of contract and freedom of association and underpinned by a legislative framework, including the Trade Union and Industrial Relations Acts. There is also an extensive range of statutory provisions designed to back up the voluntary bargaining process, together with long-established dispute settling institutions that play an important role in disputes relating to collective bargaining.
In the absence of a practice of voluntary collective bargaining, subject to agreed qualifying criteria, the Industrial Relations Acts, 2001 & 2004, provide for a mechanism by which the fairness of the employment conditions of workers in their totality could be assessed. A 2007 decision of the Supreme Court in Ryanair v The Labour Court impacted on the process to be followed where issues pursued to the Labour Court under the Industrial Relations Acts, 2001 and 2004 to resolve problems between employers and workers on employee representation issues where that could not be done through existing procedures.
The Programme for Government contains a commitment to reform the current law on employees' right to engage in collective bargaining (the Industrial Relations (Amendment) Act 2001), so as to ensure compliance by the State with recent judgments of the European Court of Human Rights. With this in mind, in late 2012, I wrote to relevant stakeholders inviting their observations on the matter. Submissions have been received and follow up meetings took place between Departmental officials and stakeholders up to end May 2013. Legal advice on issues arising is awaited.
I hope to be in a position to put proposals to Cabinet later this year. In this context, I am certain that satisfactory arrangements can be put in place that will reconcile Ireland's constitutional, social and economic traditions, and international obligations, whilst at the same time ensuring continued success in building Ireland's domestic jobs-base and in attracting overseas investment into the economy.
26. Deputy Barry Cowen asked the Minister for Jobs, Enterprise and Innovation his views on the likely impact of the recent fall in exports on employment levels in the State; the way he believes exporting firms may be assisted to maintain and win new markets in the context of the ongoing eurozone economic weakness; and if he will make a statement on the matter. [33553/13]
View answerI refer the Deputy to my reply to Priority Question No 1 (33643/13) earlier in this afternoon’s Session. Ireland's open economy needs to have the export of goods and services at the heart of its economic strategy. The excessive growth in the reliance on property in the years up the crisis was not only unsustainable but it undermined Ireland's competitiveness in export markets and caused a steady decline in our export market share. The economic transition which we are now undertaking must be founded solidly on exporting with the innovation and enterprise that is necessary to support it.
Employment in agency supported exporting companies fell by over 46,000 between 2007 and 2010. However in the past two years this has been reversed and 22,000 net additional persons are now at work in those exporting companies. This has been built on strong performances by both Irish owned and foreign owned companies in export markets. The fall in exports recorded in the first quarter has broken with this trend. My Department and Agencies are closely monitoring this situation. It is clear that there has not been a negative impact in employment during that first quarter. A number of factors are at work such as the re-pricing of pharmaceutical products which are coming off patent and a downgrading of demand in many of our key trading partners.
Other sources of data suggest that export growth can be sustained. They underpin the importance of work to build up our position in export markets through initiatives in the areas of trade promotion and innovation. In this context, Enterprise Ireland has established a Potential Exporters Division as a new way of engaging with Irish companies and providing them with mentoring, business advocate support and financial support. A pilot initiative will also be commenced, focusing on enabling companies to research, evaluate and plan market entry strategies in new geographic markets. A total of 15 Ministerial Trade Missions will take place in 2013 to existing and emerging markets.
In addition, Enterprise Ireland’s Overseas Offices will work with indigenous companies to help them realise new market opportunities. We are developing a series of initiatives to assist our manufacturing companies to step up their performance and penetrate new markets.
27. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the progress to date on protecting employment at companies (details supplied); and if he will make a statement on the matter. [33280/13]
View answerIn relation to Covidien, IDA Ireland is unaware of any current issues in relation to the facility in Athlone. However, on 29 September 2011, the company announced 100 voluntary redundancies at the facility. The redundancies were a result of a manufacturing line for one product being transferred to Thailand. The redundancies were to take place over a two year period and the company is currently completing this process.
In relation to Alkermes, a review of its Athlone operations was undertaken as a result of a fall in demand for certain pharmaceutical products that had become generic or are nearing the end of their commercial life. Following the review, the company decided to reduce the number of staff at their Athlone facility. Reductions of approximately 100 to 130 staff are expected to take place over a two-year period as these older product lines are phased out. The company anticipate that a reduction in staff numbers will be achieved through a combination of natural attrition, voluntary redundancy and compulsory redundancy. While this will inevitably have a regrettable impact on the staff affected, favourable redundancy terms and outplacement services will be provided and discussed as part of the consultation process with employees.
The Athlone facility will continue to play a strategic part in Alkermes' future business, and significant investment is planned to be made at the site over the next number of years which will allow Alkermes to focus primarily on the manufacture of newer, advanced pharmaceutical product lines. World-class development and manufacturing activities at the plant will remain robust and will continue producing global pharmaceutical products. The Alkermes facility in Athlone will remain strategically important to Alkermes’ global development and manufacturing network. Headquartered in Dublin, Alkermes currently employs 440 people between its corporate headquarter offices in Dublin and its facility in Athlone.
I am confident that the on-going efforts of IDA Ireland and the other development agencies will continue to enhance job creation in the Athlone area.
28. Deputy Sandra McLellan asked the Minister for Jobs, Enterprise and Innovation the key factors promoted by his Department and agencies to encourage development of the aviation leasing industry. [33508/13]
View answer46. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the value and number of jobs directly sustained by the aircraft leasing sector. [33491/13]
View answerI propose to take Questions Nos. 28 and 46 together.
Details of the number of employees in the aircraft leasing sector are not available as, for statistical purposes, that sector is included with others to form the financial services sector in which there were 16,803 people employed in 2012. I am mindful, however, that the aviation sector contributes approximately €4.1 billion directly to the Irish economy and that Ireland is responsible for half of the world's aircraft leasing. A report from Oxford Economics in 2012 estimated the air transport industry directly employed 26,000 people and a further 16,000 people are estimated to be employed along the air transport supply chain.
In light of the above, the Government, through its Action Plan for Jobs 2013, agreed that it would support the development of the aviation industry in Ireland. In that regard, I recently launched the new Enterprise Ireland €375,000 Competitive Feasibility Fund. The Fund will provide up to €25,000 to support new start up companies or individual entrepreneurs to investigate the viability of a new significant growth oriented business or proposition in the aviation sector. It will also support established companies or groups of businesses to examine the potential for expansion, diversification or spinning out of a new enterprise in the industry. The funding will enable the promoters to reach firm conclusions regarding the project's viability and strategies for developing and commercialising the innovative product or service on international markets. The fund, which will remain open until 16 September, is open to applications from the aviation sector including financial services associated with the sector, aircraft and engine leasing, aviation software and IT, training, travel related software and related services, small aircraft assembly, and other engineering and technical activities.
IDA Ireland continues to market Ireland as a location for aircraft leasing on the basis of a number of selling points, including the following:
- Ireland is an established major centre of global significance, with 9 of the top 10 industry leaders having operations in Ireland. This is partly due to the longevity of the industry going back to the establishment of GPA as one of the first aircraft leasing companies in the world;
- The availability of a talented pool of people with superior levels of expertise and commercial technical and legal experience;
- A pro-business and technologically advanced environment; and
- An attractive corporate tax rate and double taxation treaty network.
IDA Ireland has confirmed that the above points are consistently cited as reasons why key global corporations continue to select Ireland as a destination of choice for aircraft leasing. The aircraft leasing sector continues to grow globally and, notwithstanding competition from other locations, IDA Ireland has assured me that it will continue to seek to win investment in this sector.
29. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation his plans to improve the level of compliance with Labour Court recommendations with particular reference to where State agencies are involved. [33282/13]
View answerThe Labour Court conducts hearings on trade disputes and issues recommendations setting out its opinion on the dispute and the terms on which it should be settled. The Labour Court is a court of last resort in the industrial relations process, and it is expected that the parties come to the process in good faith and consequently are prepared to give serious consideration to the Court’s recommendation.
However, the system of industrial relations in Ireland is essentially voluntary in nature and recommendations of the Labour Court are not legally binding. Neither the Labour Court, nor I, can compel a company to comply with such recommendations. Ultimately, responsibility for the settlement of a trade dispute rests with the parties to the dispute.
30. Deputy Barry Cowen asked the Minister for Jobs, Enterprise and Innovation his views on the national minimum wage in view of the recent comments of his colleague the Minister for Social Protection; and if he will make a statement on the matter. [33575/13]
View answerThe current Programme for Government contained a commitment to reverse the €1 per hour reduction in the National Minimum Wage introduced by the previous Government on 1 February 2011. The increase was provided for in the Social Welfare and Pensions Act 2011 and effected by the National Minimum Wage Act 2000 (Section 11) (No. 2) Order 2011 from 1 July 2011. The restoration of the National Minimum Wage to €8.65 per hour represents a significant commitment by the Government to protect the lowest paid and most vulnerable workers. I have no plans for further adjustments to the National Minimum Wage at this time.
31. Deputy Martin Ferris asked the Minister for Jobs, Enterprise and Innovation the outcomes that have been achieved through the implementation of the action plan for jobs with regard to making public procurement more accessible to small and medium enterprises. [33505/13]
View answerThe Action Plan for Jobs includes a number of measures to support SMEs to access public procurement opportunities. These measures are being delivered by various bodies, including Enterprise Ireland, InterTradeIreland, the National Procurement Service (NPS) and the Department of Public Expenditure and Reform. The NPS and Enterprise Ireland are continuing to encourage SMEs to register on the Government’s eTenders website to enable forthcoming procurement opportunities to be brought to their attention. Since the upgrade to the eTenders website in November 2012, an additional 12,000 companies have registered with the site. This brings the current total of registered suppliers to approximately 82,000.
As well as publishing contract notices, the new eTenders site has a wide range of additional functionality that will allow other aspects of the procurement process to be completed electronically. This additional functionality is improving and generating efficiencies for both the public and private sectors.
In order to encourage greater SME participation in procurement, the NPS and InterTradeIreland have, over the past three years, conducted a targeted programme of education for suppliers who wish to learn more about doing business with the public sector. This programme consists of seminars, workshops and large scale 'meet the buyer' events hosted nationwide. Enterprise Ireland has also participated in these events. To date, over 4,500 SMEs have attended events of this nature throughout the country. SMEs are being actively encouraged to form consortia or similar business relationships to improve their bids for larger contracts.
In the context of the reform of public procurement and the establishment of a national Procurement Office, my Department and Enterprise Ireland are in on-going dialogue with the new National Procurement Officer to ensure that opportunities for SMEs to access procurement opportunities are taken into consideration and that tendering criteria are proportionate. Last year, my Department and Enterprise Ireland introduced a new Procuring Innovation initiative to make better use of the innovation available in Irish-based companies to provide solutions to the public sector. This initiative has resulted in some promising contacts between contracting authorities and SMEs. The objective is to build further on this initiative in 2013.
Full details of the implementation of the actions aimed at improving SMEs access to procurement are published in the quarterly Progress Reports on the Action Plan for Jobs which are published on my Department's website, www.enterprise.gov.ie.
