Written Answers Nos. 99-107
99. Deputy Terence Flanagan asked the Minister for Public Expenditure and Reform if there will be a policy shift soon regarding compulsory redundancies in the public sector; and if he will make a statement on the matter. [3428/14]
View answerThis issue was addressed under Section 4.2 of the Haddington Road Agreement whereby the Government reaffirmed the commitment given under Paragraph 1.6 of the Public Service Agreement that compulsory redundancy will not apply within the Public Service. However, this commitment is subject to the following exceptions:
- Where existing exit mechanisms have applied, such arrangements will continue;
- The commitment on compulsory redundancy continues to be subject to the agreed flexibility on redeployment being delivered. Where redeployment is not an option and taking account of the business needs of the organisation there may be circumstances where voluntary departure would be appropriate. In such situations there will be discussions with the relevant unions on the terms of any arrangement (which will be in line with any centrally agreed arrangements);
- Agreed procedures for managing instances of consistent performance issues will be actively pursued.
I have no plans to change this position.
100. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation if he will provide in tabular form, year by year from 1997 to 2013, the amount of money Lufthansa Technik Airmotive Ireland, based in Rathcoole in Dublin received in public money; and if he will make a statement on the matter. [3279/14]
View answerDetails of a range of grants paid to this company by IDA Ireland, during this period, are set out in the table below.
Table of grants paid to Lufthansa Technik Airmotive Ireland from 1997 to 2013
|
Year |
Grant paid |
Grant Type |
|
1998 |
€164,431 |
Employment |
|
2007 |
€105,832 |
Research, Technology and Innovation |
|
2009 |
€235,053 €41,600 |
Training Employment subsidy |
|
2010 |
€246,110 €104,000 |
Training Employment Subsidy |
|
2011 |
€231,240 |
Training |
101. Deputy Tom Fleming asked the Minister for Jobs, Enterprise and Innovation if he will provide details of all consultancy firms engaged by his Department during 2013; if he will further provide details of all the relevant fees paid to these firms during this period; and if he will make a statement on the matter. [3213/14]
View answerDetails of all consultancy firms engaged by my Department during 2013 and relevant fees paid are outlined in the table.
|
Name of consultancy firm |
Fees paid |
|
First Choice Financial Services Ltd and AJS Financial Advice Ltd |
€24,600 |
|
Peter Fitzpatrick & Company Legal Cost Accountants |
€4,323.45 |
|
Cyril O' Neill Legal Cost Accountants |
€5,597.95 |
|
H M Ventures |
€7,500 |
|
Fitzpatrick Associates |
€ 47,417 |
|
Barberry Limited trading as Keating & Associates |
€3,183 |
|
RSM McClure Watters |
€35,498 |
|
A & L Goodbody, Solicitors |
€59,746 |
|
Tom Martin & Associates/TMA |
€5,547.30 |
|
Janet Hughes |
€17,835 |
|
Copenhagen Economics |
Nil to date |
102. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation his plans to revamp the micro-enterprise loan fund; and if he will make a statement on the matter. [3413/14]
View answer104. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the number of applications received by the microenterprise loan fund to date; the number of loans approved; the total amount drawn down; the number of jobs supported by the fund; his plans for its future development; and if he will make a statement on the matter. [3436/14]
View answerI propose to take Questions Nos. 102 and 104 together.
The Microfinance Loan Fund Scheme facility was introduced in October 2012 following demands from business interests for the introduction of supports for microenterprises in a difficult economic environment. It has now developed a presence in the Irish financial market.
As of 17 January 2014 MFI, has approved 149 applications to the value of €2.32m supporting 333 jobs. The latest progress report detailing the analysis and performance for the quarterly period ending 30th September 2013 is available on my Department’s website. I intend to publish the next progress report for the period to December 2013, once the report has been finalised.
The key challenge for MFI is to ensure that people are aware that there is support for new and existing viable micro enterprises with perceived or real higher trading risk that have been refused credit by banks. In that regard MFI has been engaged with key influencers across the country to get that message across. There are on-going promotional and awareness activities to ensure that awareness of the scheme is promoted to its full potential amongst relevant micro business groups across all sectors of business. MFI has also undertaken a number of publicity and awareness raising activities since it began lending, including radio advertisements and attending local business network meetings. In addition, the Minister for Small Business and I promote the scheme at every available opportunity, locally, regionally and nationally.
Take-up to date may be a reflection of the muted level of demand for credit as evidenced in the Department of Finance commissioned SME Credit Demand Surveys.
My Department and the Microenterprise Loan Fund operator, MFI have committed significant time and resources to the establishment and operation of this Fund. While my officials engage with MFI on an on-going basis in how the Fund is being delivered, I will commence a review of the operation of the Microenterprise Loan Fund Acts 2012 by July 2014. The purpose of the review will be to enhance the uptake and impact of the Fund and I can assure the Deputy that I will take all recommendations into consideration with a view to improving the overall take-up of the Fund.
103. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation his views on the write off of moneys invested in Enterprise Ireland companies that failed over the past five years; and if he will make a statement on the matter. [3427/14]
View answerEnterprise Ireland’s (EI) mission is to partner with entrepreneurs, Irish businesses and the research and investment communities to develop Ireland’s international trade, business investment, innovation, leadership and competitiveness with the ultimate objective of job creation. Start-up companies in particular are a very valuable source of job creation.
In support of this mission EI invests in a significant number of Small and Medium Enterprises (SMEs), a proportion of these being start-ups in the early stage of development, many developing disruptive new technological applications. Investing in SMEs is inherently risky, particularly so in the case of early stage and seed investments. It should be emphasised that Enterprise Ireland supports companies in an effort to alleviate the market failure for Irish companies in accessing finance. It should also be borne in mind that EI’s focus is on the economic return from any investment, i.e. jobs and exports, and not just the financial return.
EI, when making an investment, will always seek that the company raises matching funding from the private sector where, at a maximum, Enterprise Ireland accounts for less than fifty percent of any investment. This ensures that the private sector shares a larger proportion of the investment risk. Private sector participation can be from the promoters, private investors and business angels, venture capital or private equity funds. In advance of making an investment, EI undertakes an in-depth commercial evaluation process.
The investment write offs for the period 2008 to 2012 can be attributed to companies not achieving market success, in what was a difficult economic period. EI would, in many cases, be writing off investments in line with other private sector investors in any particular company. Equity investment write off over the period 1999 - 2012 (€67m) on foot of investments made over the same period (€427m), represents a 16% write off. The return from investments in shares for the period 1999 – 2012 amounted to €376m. The original cost of these shares (including investments written off €67m) amounted to €208m, resulting in a profit of €168m.
EI writes off investments where market failure has occurred and a company is being liquidated or wound up. Before any investment or grant is written off, Enterprise Ireland conducts a thorough due diligence process to ensure that all monies, if any, which are recoverable by EI, have been recovered. Enterprise Ireland’s recovery due diligence process is often carried out in tandem with the recovery processes undertaken by the private sector investors.
Notwithstanding the challenges of developing SME’s into successful growth companies, Enterprise Ireland client companies continue to have a significant economic impact on the Irish economy, spending more than €19bn per annum and being collectively responsible for more than 300,000 jobs in every county throughout the State. In 2013, EI companies created 18,033 jobs resulting in a net increase of 5,442 jobs. In the same year, EI clients export performance continued to be strong and are expected to rise from the €16.2bn level achieved in 2012. These figures will be published later this year.
105. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he expects new jobs to be created through foreign direct investment in the current year; and if he will make a statement on the matter. [3493/14]
View answer108. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he remains satisfied that this jurisdiction remains an attractive location for foreign direct investment in both services and manufacturing sectors; and if he will make a statement on the matter. [3496/14]
View answer110. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he and his Department can enhance those features most likely to attract foreign direct investment; and if he will make a statement on the matter. [3499/14]
View answerI propose to take Questions Nos. 105, 108 and 110 together.
2013 was one of the best years in recent times for the attraction of foreign direct investment (FDI) and the creation of jobs in IDA Ireland client companies.
There were over 7,000 net new jobs created in IDA Ireland client companies during 2013, the highest figure in over a decade. There are now over 161,000 people directly employed in IDA Ireland client companies, the highest number in the history of the agency.
IDA Ireland markets Ireland as a location for FDI on the basis of a number of selling points viz a pro-business and technologically advanced environment and the availability of an educated and talented English speaking workforce with the blend of appropriate skill sets. The Agency also offers a range of affordable, state of the art property solutions. Ireland is strategically located between Europe and America and is the only English speaking member of the Eurozone. Ireland has an attractive corporation tax rate and complies fully with OECD guidelines and EU competition law. Ireland has a good track record of attracting and retaining high quality investments across a range of sectors. In addition, there is good road access to key cities, ports and international airports.
All these factors, together with Ireland’s improvement in competitiveness in recent years has led IBM Global location trends to rate Ireland first in the world for inward investment by quality and value and first in Europe and second globally for the number of investment jobs per capita.
Ireland’s recent exit from the bailout and the decision by Moody’s to raise the rating on Ireland’s sovereign debt to investment grade will have a very positive impact on the on the Irish economy. Investment agency ratings are used by foreign investors when they are deciding where to locate their businesses. I am confident that the continued work of Government in restoring the economy and the publication of the 2014 Action Plan for Jobs will lead to the attraction of further foreign direct investment into the country and the creation of additional much needed jobs.
To respond to the significant job losses in manufacturing in the years up to 2010, and to build on the potential for this sector, I asked Forfás to undertake an analysis of Manufacturing in Ireland and the resultant Strategy, which I launched in April last, sets a comprehensive suite of recommendations to develop the sector, and these actions are now being progressed (including through the Action Plan for Jobs ). The Strategy identifies that an additional 20,000 jobs can be created in Manufacturing by 2016. The tide is already turning, as in the years 2011 and 2012 there was a net increase of 3,700 jobs in the Manufacturing sector. This trend has gained momentum with the latest Central Statistics figures (QNHS-Q3 2013) showing that almost a further 8,000 jobs have been created in the period since the Strategy was published. There are now 213,600 people directly employed in the sector in Ireland and a similar number of people employed indirectly: the total supported within the sector is therefore about 427,000. A particularly attractive feature of manufacturing in Ireland is the fact that many of the present jobs are not in the main urban areas, but dispersed into regional locations, thereby providing a valuable employment focus in areas where alternative jobs are scarce.
106. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation his expectations for the creation of new jobs through indigenous industry, manufacturing and services, in the current year; and if he will make a statement on the matter. [3494/14]
View answerThe manufacturing sector, which had lost 50,000 jobs in the years up to 2010, has seen a modest return to growth in employment over the last few years, with an additional 8,000 jobs having been created in the last year alone. There are now 213,600 people directly employed in the sector in Ireland and when account is taken of indirect jobs supported, it now supports over 427,000 people. The Forfás Strategy for the Manufacturing Sector, which I commissioned and which was published last year, identified that an additional 20,000 jobs can be created in the sector by 2016. A complementary report was also published in relation to skills needs by the Expert Group on Future Skills Needs and Forfás. This will enable the Government to identify key areas and actions that will assist in increasing growth in the sector.
Arising from the Manufacturing Strategy and the Skills Report, there are now a range of initiatives in hand by my Department and relevant Agencies to drive the 2016 target, with key actions from both reports having been incorporated into the Action Plan for Jobs 2012 and 2013. The Manufacturing Development Forum is helping to address the key issues arising from the Strategy recommendations which include delivering a National Step Change initiative to strengthen Ireland’s manufacturing base across all firms, redressing perceptions of the sector as a career choice and removing barriers to the competitiveness of the sector in Ireland.
We must maintain and exploit our natural advantages and, in doing so, continue to attract Foreign Direct Investment (FDI) and develop our indigenous manufacturing sector, particularly in higher-value sub sectors, for example chemicals, pharmaceuticals, medical devices and food, amongst others.
In relation to the services sector, this accounts for two thirds of total employment within Ireland. While the majority of service firms are not supported by the State, in respect of agency-supported companies, the job creation trend has been very positive. According to the latest figures available, the total net new full-time jobs created in the agency-supported service industry for 2012 was 6,372. This is very positive growth. The Action Plan for Jobs 2013 outlined a range of sectoral initiatives to facilitate new and established services companies to grow, with particular focus on International Financial Services, Business Process Outsourcing/Shared Services, Education Services, Retail and Wholesale, Tourism, Construction Services and ICT Services.
In relation the indigenous sector, in its recent End-of-Year Statement, Enterprise Ireland announced that its client companies created 18,033 new jobs in 2013 – a net increase of 5,442 jobs. These companies now directly and indirectly account for more than 300,000 jobs in the Irish economy equating to 16% of the total workforce.
The challenge for Government is to continue to support companies to build on this success and continue to grow employment in 2014. With this in mind, my officials are currently coordinating the completion of the Action Plan for Jobs 2014. The Action Plan will outline ambitious job targets for the enterprise development agencies and a suite of other measures to support job creation.
107. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which it is expected to obtain assistance from EU institutions towards the creation of jobs in the manufacturing and service sectors through the utilisation of science, innovation and technology grant assistance; and if he will make a statement on the matter. [3495/14]
View answerResearch and Innovation are of major importance given their potential role in contributing to economic recovery, competitiveness and jobs across the EU. The European Research Framework Programme - which is the largest innovation and technology programme offering grant assistance from the EU - has always been an important element in providing international linkages and enhancing the excellence of the Irish R&D system. The EU Framework Programme has enabled academic and industry research groups to work with their peers across Europe and beyond, and to derive the benefits associated with collaborative research, such as access to knowledge networks, sharing of costs and risks and, in particular for industry, the possibility of opening up commercial opportunities.
Ireland’s participation in the recently concluded Seventh Framework Programme 2007-2013 (FP7) , has been very successful. We are on track to reach our target of drawing down €600 million from FP7. According to the latest available figures (July, 2013), Ireland’s total drawdown in FP7 currently stands at €572 million with funding to private industry at €149 million, or 26% of all funding received to date. It is not possible to provide specific figures regarding support for the manufacturing and services sectors. While the funding to industry includes support for these sectors, some of the funding to higher education institutions also supports future innovation and job creation in these sectors.
Horizon 2020, the successor to FP7, offers huge opportunities to researchers, research organisations and industry to engage in cutting edge research, and power Europe towards economic recovery. With a budget of almost €80 billion, and covering the next seven years, Horizon 2020 is the biggest ever European Research and Innovation Programme and the largest worldwide. Many of our research organisations and third level colleges have developed specific strategies to improve their level of performance in Horizon 2020 and are now better prepared for participating in EU research programmes than ever before.
The Government has set an ambitious but achievable target for Irish researchers, of winning funding of €1.25 billion over the lifetime of Horizon 2020. We have proved that we have an excellent science base on which to compete successfully with the best. A comprehensive national strategy is being implemented which will direct our engagement in Horizon 2020 and ensure that we maximise the benefits for Ireland.
