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Tuesday, 10 Dec 2013

Written Answers Nos. 225-240

Capital Programme Expenditure

Questions (225)

Kevin Humphreys

Question:

225. Deputy Kevin Humphreys asked the Minister for Public Expenditure and Reform the average job creation potential for every €1 million in Government capital spending; and if he will make a statement on the matter. [52961/13]

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Written answers

A 2009 survey, carried out by the Department of Finance, found that the labour intensity of capital projects generally falls within the range of 8 to 12 jobs for every €1 million invested. While this estimate for labour intensity is used as a general rule of thumb, it is important to note that the amount of employment generated by capital expenditure depends on how that expenditure is invested. For example, the purchase of new rail rolling stock would typically generate little direct employment in Ireland as such stock is generally produced abroad. Furthermore, different types of public construction project have different levels of labour intensity. For example, smaller scale projects such as school building and repair, or smaller local and regional road-works, tend to be more labour intensive than major national infrastructural projects.

The Exchequer capital framework for the period 2012 to 2016 was set following a Government-wide review of the public capital programme conducted in 2011. The focus of that review was the identification of infrastructural investment that can aid economic growth, generate sustainable jobs in the medium term, and address urgent social requirements. Much of the capital programme for the five year period of the Framework is geared towards smaller, more labour intensive projects. It is also noteworthy that investment in enterprise supports has the highest direct employment impact. Accordingly, the capital Framework made a point of protecting supports to the enterprise sector primarily through agencies such as Enterprise Ireland and the IDA.

Since the capital plan was launched in 2011, the Government has been able to announce a number of increases to its infrastructure investment through the introduction of a new PPP pipeline and the use of the proceeds from the State asset and Lottery licence transactions. This additional investment is expected to support significant numbers of jobs across the country. The previous analysis of each sector indicates that the investment in the PPP Pipeline may support in the region of 13,000 direct jobs and many more indirect jobs. In addition to this, it is envisaged that the additional Exchequer funding of €150 million, which I announced in June of this year, can support up to 3,000 jobs. These initiatives will of course also create much needed social and economic infrastructure and aid economic recovery. The Exchequer projects, in particular, involve mostly smaller scale capital works which are known to be labour intensive.

It is my intention that a review of the public capital investment framework will be undertaken in 2014 in parallel with the Comprehensive Review of Expenditure. Following this, a new five year capital envelope will be set. Of course, employment creation will be a key consideration in the setting of the new envelope.

Capital Programme Expenditure

Questions (226)

Kevin Humphreys

Question:

226. Deputy Kevin Humphreys asked the Minister for Public Expenditure and Reform if he will confirm the €107.2 million capital budget carry-over from the 2012 fiscal year has been spent; if he will provide a breakdown of the Departments in which it arose; and if he will make a statement on the matter. [52962/13]

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Written answers

The capital carryover facility, which allows Departments to carryover unspent capital of up to 10% of their Voted capital allocation from one financial year into the next, was established under Section 91 of the Finance Act, 2004. The specific rules under which the carryover facility operates are set out in Department of Public Expenditure and Reform Circular 06/2013 which is available at http://circulars.gov.ie/.

Departments are required to report to my Department on a monthly basis in relation to progress on carryover spend as part of their overall monthly expenditure reporting requirements. Reports received at end November indicate that €99 million of the total capital carryover of €107.2 million into 2013 had been spent by Departments. A breakdown of carryover by Department into 2013 and spend to end November is set out in the following table.

As set out in the legislation governing capital carryover, the Minister for Public Expenditure and Reform must make a Ministerial Order specifying the definitive amounts of capital carryover by subhead no later than 31 March of the year into which carryover will occur. Until the Ministerial Order is signed, capital expenditure for the relevant subheads can only be met from the current year’s capital allocation; once the Order is signed, the unspent capital moneys deferred from the preceding year become the first next charge against the subheads concerned. Carryover must then be spent in full before any other moneys can be spent under the relevant subheads. If the amount of capital carried over by a Department is not spent in the second financial year it must be definitively surrendered to the Central Fund at the end of that year.

Vote

Capital Carryover into 2013

Position at End November

Carried into 2013

Spend to end November

Amount left to spend

-

-

(€000’s)

(€000’s)

(€000’s)

24

Justice and Equality

287

0

287

25

Environment, Community & Local Government

43,000

35,465

7,535

26

Education and Skills

19,000

19,000

0

28

Foreign Affairs and Trade

400

270

130

29

Communication, Energy & Natural Resources

10,400

10,400

0

30

Agriculture, Food and Marine

6,000

6,000

0

32

Jobs, Enterprise and Innovation

25,000

25,000

0

33

Arts, Heritage and the Gaeltacht

1,200

1,200

0

36

Defence

900

900

0

37

Social Protection

1,050

1,050

0

Total

-

107,237

99,285

7,952

Public Sector Staff Remuneration

Questions (227)

Simon Harris

Question:

227. Deputy Simon Harris asked the Minister for Public Expenditure and Reform if public servants or civil servants receive any additional remuneration for serving on a board or for holding any position in any organisation or association which receives public funding and which they attend during their working day; his position on this matter; and if he will make a statement on the matter. [53036/13]

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Written answers

It is a long-standing general principle of pay policy that the payment of additional remuneration to public servants for undertaking additional duties is not permitted. Any exceptions are subject to the sanction of my Department and must meet certain strict conditions. The payment of fees to public and civil service staff who sit on state boards was discontinued with effect from 1 November 2011.

Company Registration

Questions (228)

Robert Dowds

Question:

228. Deputy Robert Dowds asked the Minister for Jobs, Enterprise and Innovation if he will consider introducing legislation to create a public register of companies which would contain details on the identity of the true owners of each company operating in the State, as is set to be introduced in the UK; and if he will make a statement on the matter. [52940/13]

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Written answers

The proposed 4th Anti-Money Laundering Directive seeks to update the 3rd Directive to take account of the February 2012 revision of the international standard for anti-money laundering requirements – the recommendations of the Financial Action Task Force (FATF). It includes proposals for the registration of the beneficial owners of companies and other entities.

The generality of the Proposal falls under the remit of my colleague the Minister for Finance. Following consultation with my Department I understand that, at European Council, Ireland had supported the Presidency approach which would require that Member States ensure that the beneficial ownership information on companies incorporated within their territory is held in a specified location for example in one or more registries or by means of other suitable mechanisms.

I understand that negotiations are continuing on the Directive at the Council of the EU and that the final provisions on beneficial ownership will only be agreed as part of the overall compromise. I understand also that the negotiations are proceeding with a view to agreement with the European Parliament before the end of its current term in May 2014.

Industrial Relations Issues

Questions (229)

Lucinda Creighton

Question:

229. Deputy Lucinda Creighton asked the Minister for Jobs, Enterprise and Innovation when the heads of a Bill reforming the law on employees' right to engage in collective bargaining under the Industrial Relations (Amendment) Act 2001 will be introduced; if this legislation will include compulsory collective bargaining for all companies in the State; and if he will make a statement on the matter. [52600/13]

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Written answers

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 were subsequently received and a series of initial first step meetings took place between Departmental officials and stakeholders around mid-2013. Discussions with stakeholders are ongoing. I hope to be in a position to bring the matter to Cabinet soon.

I am certain that the existing legislative provisions in this area can be improved and secured while respecting Ireland’s voluntarist system of industrial relations. I expect that any proposals arising from ongoing discussion with stakeholders 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.

IDA Jobs Data

Questions (230)

Clare Daly

Question:

230. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation the number of jobs created by the Industrial Development Agency from 2001 to date in 2013; the number of IDA-backed companies which received Irish work permits and visas; and if he will provide a breakdown of salaries of the IDA-backed companies which applied for Irish work permits in that period. [52722/13]

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Written answers

The Forfás Annual Employment Survey reports on job gains and losses in companies that are supported by the industrial development agencies. Data is compiled on an annualised basis and is aggregated at county level. Figures for 2013 will not be available until year end. Details of the number of new full time jobs created in IDA Ireland’s client companies for each of the years from 2001 to 2012 are set out in the following table.

In relation to employment permits, the Department only captures statistics in relation to individual applications submitted with support from IDA and this information is available since 2011. Figures from 2011 to date in 2013 are set out hereunder.

New Jobs Created in IDA Ireland’s Client Companies 2001-2012

Employment Data

Total New Jobs Created (Full-Time)

2001

13,514

2002

11,407

2003

9,357

2004

10,846

2005

12,176

2006

12,531

2007

10,401

2008

9,203

2009

5,239

2010

9,075

2011

11,594

2012

11,790

Employment Permits Issued with IDA support 2011-2013 (9th December 2013

Year

Salary

Total

2013

-

697

-

< €30,000

45

-

€30,000 - €35,000

66

-

€35,000 - €40,000

116

-

€40,000 - €45,000

97

-

€45,000 - €50,000

54

-

€50,000 - €55,000

50

-

€55,000 - €60,000

40

-

> €60,000

229

2012

-

737

-

< €30,000

32

-

€30,000 - €35,000

66

-

€35,000 - €40,000

134

-

€40,000 - €45,000

83

-

€45,000 - €50,000

60

-

€50,000 - €55,000

40

-

€55,000 - €60,000

60

-

> €60,000

262

2011

-

472

-

< €30,000

26

-

€30,000 - €35,000

67

-

€35,000 - €40,000

76

-

€40,000 - €45,000

47

-

€45,000 - €50,000

30

-

€50,000 - €55,000

30

-

€55,000 - €60,000

18

-

> €60,000

178

Innovation Vouchers Initiative

Questions (231, 232, 233, 234, 235, 236, 237)

Pearse Doherty

Question:

231. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the number of innovation vouchers issued; the number redeemed; their total value; the number extended; and the number elapsed for each year of the programme. [52755/13]

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Pearse Doherty

Question:

232. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the number of enterprises which received multiple innovation vouchers according to the number of vouchers received, that is, the number of enterprises which received a single voucher, two vouchers, three vouchers and so on. [52756/13]

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Pearse Doherty

Question:

233. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the number of innovation vouchers received by spin-off companies or companies associated with multinationals; the number received by small and medium-sized enterprises; and the number received by microenterprises. [52757/13]

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Pearse Doherty

Question:

234. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the average timescale between an innovation voucher being awarded to a payment being drawn down. [52758/13]

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Pearse Doherty

Question:

235. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the process by which an assessment is made as to how the objectives of an application for innovation vouchers have been fulfilled; the number of innovation vouchers that have achieved all objectives set; the number that have partially met their objectives; and the number that have failed to meet their objectives. [52759/13]

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Pearse Doherty

Question:

236. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the way knowledge providers are informed of awards innovation vouchers; and the way the competence of individual knowledge providers is assessed. [52760/13]

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Pearse Doherty

Question:

237. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the way work undertaken on innovation vouchers by knowledge providers is additional to the work they are funded to provide. [52761/13]

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Written answers

I propose to take Questions Nos. 231 to 237, inclusive, together.

The Enterprise Ireland Innovation Voucher Initiative was established in 2007 in order to drive an on-going innovation cultural shift within small enterprise by promoting and encouraging a transfer of knowledge between Ireland’s public knowledge providers and the small business community and creating greater synergies between the two. Under the initiative, vouchers worth €5,000 are allocated to small businesses whose proposals, to work with public knowledge providers on specific innovation questions, meet simple criteria.

The following table illustrates the number of Innovation Vouchers issued; the number redeemed and their respective total values since the programme commenced.

Innovation Vouchers Approved and Redeemed for years 2007 to 2012

-

2007

2008

2009

2010

2011

2012

Totals

Vouchers Redeemed

4

206

526

524

518

525

2303

Vouchers paid €

18,264

1,014,935

2,406,334

2,591,145

2,573,568

2,547,178

11,151,424

Vouchers Issued

428

588

798

855

757

767

4193

€ Amt approved

2,140,000

2,940,000

3,990,000

4,275,000

3,785,000

3,835,000

20,965,000

At the end of 2012, 55% of Vouchers issued were redeemed while 45% of approved Vouchers were not redeemed within the one year period of validity which is broadly typical for this form of innovation support. For example, in the Netherlands where this scheme was originally established, 40% of issued Vouchers were never redeemed. The Vouchers target small companies who may decide not to pursue the Voucher for a number of reasons including a change of company direction in the interim or a change of R&D or innovation ambitions. The projected outturn for 2013 is positive with 1,007 Vouchers issued so far with a value of €5,035,000. In addition, 491 Vouchers have been redeemed to date with a value of €2,360,337. Under the current guidelines for the programme companies may make use of a maximum of three vouchers, one of which must be a 50-50 co-funded voucher between Enterprise Ireland and the company. Excluding cancellations 3,337 companies have received vouchers to date, 76% received one voucher, 21% two vouchers and 3% have received 3 vouchers.

The timescale between the award of an Innovation Voucher and a payment being drawn down differs as each project is distinct and the time to completion varies widely depending on the circumstances of the company, the knowledge provider and the nature of the project. Many voucher projects are completed within a month of project commencement whereas others may take up to one year to complete depending on the nature of the work. Vouchers are valid for one year from the date of issue and in general are redeemed within that period unless an extension is granted. A formal procedure exists to enable companies to apply for an extension of the voucher, however, information on this specific data set is not available. Enterprise Ireland believes that the number of Vouchers that have received an extension would represent a very small proportion of the total Vouchers redeemed.

Enterprise Ireland carry out regular independent programme evaluations to assess the effectiveness of all programmes. The most recent external evaluation of the Innovation Voucher programme in 2012 indicated high levels of programme effectiveness and company satisfaction. As part of this evaluation 94% of companies said that they would be willing to participate in an Innovation Voucher project in the future and 93% would be willing to recommend the programme to other businesses. A further 82% stated that participation in the project has increased their desire to work with research partners in the future. One of the key objectives of this programme is to improve links between industry and academia – these findings suggest that the Voucher programme has been successful in doing this. The findings also demonstrate a very positive company experience and indicate how beneficial companies found the Innovation Voucher programme.

The evaluation noted that the programme has delivered direct benefits for 69% of companies including new and improved products and processes to the company and to the commercial market. The evaluation also found that the scheme achieved €7.65 in company turnover per €1.00 invested by Enterprise Ireland to date. This evaluation also found that most companies were either satisfied or very satisfied with their partner institutes when asked about the following aspects:

- overall role of the provider (72%)

- partner institute’s role in the setting up of the project (67%)

- partner institute’s role in supporting the project (68%)

- partner institute’s role in following up the partnership after completion (57%)

As a more immediate measure of the achievement of the Voucher’s objectives, at the completion of an Innovation Voucher project the company must sign a declaration to confirm that the knowledge provider has completed the project to their satisfaction. On receipt of the signed declaration Enterprise Ireland can issue a payment in respect of the Voucher.

Innovation Voucher projects are independent projects carried out by the knowledge providers at the company’s behest. The company requires the skills and expertise which is available within the third level research community to help them address a particular technical issue or challenge that the company faces. These projects are defined by companies and are in the research domain of the knowledge provider involved. They are distinct and additional projects to the knowledge provider’s core work and are paid for via the Innovation Vouchers.

A full list of approved knowledge providers who have agreed to participate in the programme is available on the Innovation Voucher website www.innovationvouchers.ie. This provides a directory of the skills and expertise available within each third level institute and a designated contact person for each knowledge provider. Enterprise Ireland advise companies who have been awarded Vouchers to use this directory to assist them to contact and select the most appropriate knowledge provider for their project. The competence of the knowledge provider in relation to providing knowledge to the companies participating in the Innovation Voucher programme is validated by the companies’ level of satisfaction and through Enterprise Ireland’s evaluation of the programme.

The Innovation Voucher programme is restricted to small companies* (less than 50 employees) and medium size companies are not currently eligible to apply for a Voucher. Specific data breaking down further the "small company" designation into further strata such as spin off companies or micro enterprises is not available.

*For the purposes of the Innovation Voucher Initiative, a Small Enterprise is defined as a company or (if part of a group) a group of companies where the total number of full-time employees in the company (or the entire group) is less than 50 and has either an annual turnover and/or an annual Balance Sheet total not exceeding €10m. (Exclusions: small enterprises in the agricultural sector are excluded in line with EU State aid guidelines).

Job Losses

Questions (238)

Pearse Doherty

Question:

238. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the number of job losses or forecasted job losses announced by Industrial Development Authority support enterprises over the past 12 months. [52762/13]

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Written answers

The Forfás Annual Employment Survey reports on jobs gains and losses in the enterprise development agencies. The information is gathered on an annual basis and aggregated at county level. Information is given by companies on a confidential basis for statistical purposes only. The numbers of job losses in each of the past three years in IDA supported companies is set out in the following table. Figures for 2013 will not be available until year end.

Table showing the number of jobs lost in IDA client companies in each of the years 2010, 2011 and 2012

Years

2010

2011

2012

Job Losses

-10,551

-7,447

-6,152

Source: Forfás Employment Survey

Job Losses

Questions (239)

Pearse Doherty

Question:

239. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the number of job losses or forecasted job losses announced over the past 12 months in the manufacturing and financial services sectors of the economy. [52763/13]

View answer

Written answers

The Forfás Annual Employment Survey provides an analysis of employment trends and levels in Industrial and Services companies under the remit of IDA Ireland, Enterprise Ireland, Shannon Development and Údarás na Gaeltachta. This research also gives details of job losses and job gains. This work is undertaken on a calendar year basis and the survey to identify outcomes for 2013 will be undertaken early next year. Net job gains have been forecasted for both the Manufacturing and Financial Services sectors in two recent relevant Government Strategies.

In the case of Manufacturing, Forfás published a Strategy for the Manufacturing Sector earlier this year - entitled Making it in Ireland: Manufacturing to 2020 - which includes a target to create an additional 20,000 jobs in the sector by 2016. A range of initiatives are in hand by my Department and relevant Agencies to drive this target. With regard to the Financial Services Sector, the Strategy for the International Financial Services Industry in Ireland, was published by the Department of the Taoiseach in 2011. The Strategy sets an objective to increase employment in this sector by 10,000 by 2016 and a range of measures are proposed. Implementation of that Strategy is being driven by the IFSC Clearing House Group, which operates under the aegis of the Department of the Taoiseach.

Departmental Expenditure

Questions (240)

Peadar Tóibín

Question:

240. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will provide a breakdown of annual infrastructure and capital expenditure by the Department on a regional and county basis over the past five years. [52802/13]

View answer

Written answers

Given the number of agencies involved, and within the timeframe available, my Department has been unable to collate the information requested. However, my Department is in the process of doing so and will provide the information directly to the Deputy as soon as all the information is assembled.

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