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Thursday, 23 Jan 2014

Written Answers Nos. 108-16

Economic Competitiveness

Questions (109)

Bernard Durkan

Question:

109. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if he remains satisfied regarding the competitiveness of the Irish economy; and if he will make a statement on the matter. [3497/14]

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Written answers

Ireland is rated highly internationally as one of the best countries in the world in which to do business, and we have built a strong competitive basis on which to compete on global markets. Ireland has moved up to 17th place in the IMD’s World Competitiveness Yearbook 2013 having being ranked 24th only 2 years ago, while Ireland is ranked 15th in the World Bank’s Doing Business 2014 Report and was recently named by Forbes magazine as the “Best Country for Business”.

There are a number of key areas where Ireland tops the various global competitiveness rankings, including in relation to: business impact of rules on foreign direct investment; inflation; FDI and technology transfer; availability of skilled labour; flexibility and adaptability of the labour force; and investment incentives.

While Ireland’s competitiveness has improved in recent years, we must continue to do more, to ensure that these competitiveness gains are not eroded as the economy begins to recover and that we continue to address the structural imbalances which had built up over the lifetime of the previous Government. Through the Action Plans for Jobs in 2012 and 2013, the Government has focussed on measures aimed at restoring our competitiveness position and creating a supportive environment for businesses operating in Ireland. The implementation of these actions, combined with the Government’s exit from the Troika programme and its return to international funding markets, will play a key role in improving our competitiveness further and realising our ambition of making Ireland the best small country in which to do business. I am currently finalising the 2014 Action Plan for Jobs on behalf of the Government, which will build on the progress made in recent years and will include further measures aimed at improving our competitiveness performance.

Question No. 110 answered with Question No. 105.

Job Creation

Questions (111)

Bernard Durkan

Question:

111. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent of the role he expects science, innovation and technology to play in job creation in the next 12 months; and if he will make a statement on the matter. [3500/14]

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Written answers

The importance of science, technology and innovation (STI) to Ireland is recognised by the Government as being crucial to growth in our indigenous and FDI sectors and plays a key role in job creation. The Government’s overarching aim is to accelerate both the economic and societal return on our public investment in STI. In this context, implementation of Research Prioritisation, underway since March 2012, will see the majority of public research funding aligned with 14 priority areas where we are most likely to get economic and societal returns, particularly in the form of jobs. Action Plans have been drawn up and approved by Government for each of the 14 Priority Areas and monitoring systems have been developed and approved by Government to measure the outputs and impact of funding provided.

Another key initiative is the adoption of the Intellectual Property Protocol, which outlines a clear, robust and industry friendly policy for the commercialisation of IP arising from state funded research. As result of this, the central Technology Transfer Office (cTTO) is being established. The aim of the cTTO is to encourage the commercialisation of IP arising from State funded research, with a view to achieving more job creation from our investment in this area.

Furthermore, the remit of Science Foundation Ireland has been expanded to cover applied research, aligned with the 14 priority areas to further support the development of research findings into commercial opportunities, further enhancing our job creation potential. In 2013 SFI had links to 41% (2,618) of 6,449 jobs (90 company announcements) announced by the IDA in all fields.

It was most encouraging to see that the European Commission’s Innovation Union Scoreboard, published in spring 2013, shows Ireland retaining its position among those EU Member States with above average performance in their research and innovation systems. Moreover, the European Commission ‘Indicator of Innovation Output’, announced in September 2013, shows Ireland, along with Sweden, Germany and Luxembourg as EU Member States getting the most out of innovation.

Job Creation Data

Questions (112, 113)

Bernard Durkan

Question:

112. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which efforts continue to ensure the retention of the maximum number of jobs in both manufacturing and service sectors; the issue, if any, likely to impact on such efforts; and if he will make a statement on the matter. [3501/14]

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Bernard Durkan

Question:

113. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the total number of jobs created in the course of the past three years to date in both manufacturing and service sectors in County Kildare; and if he will make a statement on the matter. [3502/14]

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Written answers

I propose to take Questions Nos. 112 and 113 together.

The manufacturing sector, which has 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.

Arising from the 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. The Manufacturing Development Forum, comprising industry practitioners, is helping to address the key issues arising from the Strategy recommendations. These 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 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 is very positive. The Action Plan for Jobs 2012 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 addition, the recently published Medium Term Economic Strategy (MTES) has identified the Services Sector as a key driver of job creation and growth. The MTES highlights the opportunities in a range of sectors and it is envisaged that the forthcoming Action Plan for Jobs 2014 will concentrate to a significant extent on a range of actions to develop various aspects of the Services Sector.

In relation to jobs created in County Kildare in the manufacturing and services sectors over the last three years, such data is not readily available. However, non sector- specific details of jobs created and lost by Enterprise Ireland, IDA Ireland and the County Enterprise Board, in each individual county, over recent years, were supplied by me in the reply to Parliamentary Question 47719/13 dated 12th November 2013, and this additional information can be forwarded by my Departmental officials if required.

Severe Weather Events Response

Questions (114)

Pearse Doherty

Question:

114. Deputy Pearse Doherty asked the Minister for Social Protection if funding will be put in place to recompense persons who have had property damaged in the recent storms; and if she will make a statement on the matter. [3435/14]

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Written answers

The Department of the Environment, Community and Local Government is the lead Department for severe weather emergencies and the Office of Public Works has responsibility for capital flood relief activities. However, the Department of Social Protection has an important role to play in assisting households in the immediate aftermath of emergency events such as the recent severe weather conditions under the supplementary welfare allowance (SWA) scheme.

Under the SWA scheme, the Department can make a single exceptional needs payment (ENP) to help meet essential, once-off, exceptional expenditure, which a person could not reasonably be expected to meet out of their weekly income. ENPs are payable at the discretion of the officers administering the scheme, taking into account the requirements of the legislation and all the relevant circumstances of the case. This is to ensure that the payments target those most in need of assistance. There is no automatic entitlement to a payment. Examples of the main types of needs that may be met under this provision in respect of severe weather conditions includes assistance towards the purchase of household appliances, bedding, clothing and household repair and maintenance.

In addition to the payment of ENPs, SWA legislation also provides for assistance in the form of an urgent needs payment (UNP) which can be made to persons who would not normally be entitled to SWA. The person may be required to pay the money back in respect of a UNP at a later date, for example, if the person had significant capital or income or was later compensated by an insurance company.

In response to the recent weather events the humanitarian assistance scheme has been activated. The humanitarian assistance scheme, which is means-tested, is available to assist people whose homes are damaged by flooding and who are not in a position to meet costs for essential needs, household items and, in some instances, structural repairs as a result of the flooding damage. The Government has not set a limit on the amount that can be paid to an individual household under this scheme. Levels of payment depend on the relative severity of damage experienced and the household’s ability to meet these costs ensuring that the funding is appropriately targeted. Humanitarian assistance does not cover risks that are covered by insurance policies or cover business or commercial losses. Any person continuing to experience hardship as a result of the recent weather events should contact the Department’s local representative administering the SWA scheme who may be able to offer assistance.

Consultancy Contracts Data

Questions (115)

Tom Fleming

Question:

115. Deputy Tom Fleming asked the Minister for Social Protection if she will provide details of all consultancy firms engaged by her Department during 2013; if she will further provide details of all the relevant fees paid to the firms during this period; and if she will make a statement on the matter. [3216/14]

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Written answers

The procurement of services is essential to support the Department in providing high quality service to the public in a cost effective and efficient manner and is governed by a comprehensive regulatory, legal and procedural framework. The Department engages consultants (individuals or organisations) to provide intellectual or knowledge based services (e.g. expert analysis and advice) including the delivery of reports, studies, assessments, recommendations and proposals that contribute to decision making or policy making.

The majority of expenditure on consultancy expertise is to support the Department in implementing a multi-annual service delivery modernisation programme to enhance the efficiency and quality of delivery of services to customers. Further technical consultancies relate to the on-going development of the Department’s extensive information technology systems.

The information requested by the Deputy is set out in the attached table. I am satisfied that the engagement of consultants provides valuable support to the Department and that the procurement of consultants is compliant with best practice in realising value for money.

Year 2013

-

-

CONSULTANTS ENGAGED

PURPOSE OF CONSULTANCY

Naked Objects Group Ltd

BOMi - Business Objects Modelling Advice & Expertise

234,463

Naked Objects Group Ltd

BOMi- Technical Development Advice

168,181

ESRI

SWITCH Research Programme

150,000

Centre for Economic and Social Inclusion

External Service Delivery - Employment Services

140,989

Haywood Associates

BOMi- Technical Development Advice

87,872

Axiom Consulting

Report on Organisation Development

74,812

ESRI

Analysis & measurement of Deprivation & Poverty

69,979

Deloitte & Touche

IS Internal Audit Services

48,688

Accenture

Mobile Opportunity Exploration

33,388

Mercer Ireland Ltd

Long-term Pensions Policy Research

18,450

ESRI

Profiling of “Stock” Live Registrants

16,873

Microsoft

Support to Technical Architecture Group

11,515

Irish Research Council

Social Inclusion Research Innovation Awards

11,103

Mel Cousins & Associates

Review of Best International Practice regarding In-Work Supports

10,000

TOR Financial

Models of National Employment Based Pension Systems

9,900

ESRI

Evaluation Research (BTEA)

9,809

PricewaterhouseCoopers

Provision of Financial Advisory Services (for Payment Services Evaluation)

7,380

Deloitte & Touche

Provision of Security Partner Services

6,540

Irish Nutrition & Dietetic Institute

Update of the Diet Supplement Diet Cost Report

4,000

Mel Cousins & Associates

Guidance documentation for deciding & appeals officers

2,400

OECD

Youth Guarantee Advice

0*

*Final invoice €50,000 yet to be processed.

Pensions Legislation

Questions (116)

Timmy Dooley

Question:

116. Deputy Timmy Dooley asked the Minister for Social Protection if pensioners will be given a right to be represented where matters relating to pensions and pensioners are being discussed; the historical reasons for this not being the case; if she will introduce legislation to facilitate same; and if she will make a statement on the matter. [3221/14]

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Written answers

The matter of representation by pensioner groups in consideration of a change to scheme benefits needs to be considered in a broader industrial relations context. This is a matter for my colleague, the Minister for Jobs, Enterprise and Innovation and I have referred this matter to him for consideration.

It is normal practice for my officials to engage with representatives of stakeholders in relation to any substantial change to the Pensions Act. The consultation process which preceded the publication of the Social Welfare and Pensions (No. 2) Bill, 2013 included engagement with representatives of pensioners, the pensions industry, employers and trade unions. Written submissions were also sought from these stakeholder groups.

I would also advise that any consideration of a restructure of pension scheme benefits under section 50 of the Pensions Act must comply with the provisions in the Pensions Act and with guidance issued by the Pensions Board. This guidance makes provision for the notification of all pensioners in advance of any application to the Pensions Board to restructure scheme benefits. In such circumstances a pensioner will have at least one month to make a submission to the trustees of the scheme in relation to such a proposal. The Pensions Board must be satisfied that all the provisions in the guidance are complied with before the Board will consider issuing a notice to restructure scheme benefits.

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