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Thursday, 23 Jan 2014

Written Answers Nos. 1-26

Company Closures

Questions (12)

Catherine Murphy

Question:

12. Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation if, considering that Ireland is the number one country in the world for aircraft leasing and this contributes significantly to employment in this industry, he is concerned that the closure of the Lufthansa Technik Airmotive plant may adversely impact on this position; if there is a strategy to add value to Ireland's position in the aircraft leasing market; and if he will make a statement on the matter. [2952/14]

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Written answers

While it might be assumed that there should be strong direct linkages between leasing companies and locally located aircraft maintenance operations, the position is that Global Aircraft Leasing and domestic Irish Maintenance, Repair and Overhaul firms are not mutually interdependent. While Irish based after-market services providers undoubtedly can benefit from their proximity and relationships with the Irish based operations of International Leasing firms, the global nature of both businesses means that cost competitiveness, flexibility and capability are the key determinants in companies’ decision making processes.

The dynamics of the aircraft maintenance business worldwide are complex and fast changing, partly due to the mobility of the assets – the planes themselves - and, also due to the influence of both the aircraft manufacturers and the engine manufacturers. In many cases, under complex sale contracts, these manufacturers are increasingly determining where maintenance of their equipment is carried out.

Despite the very globalised nature of both the leasing sector, and also of the maintenance sector, IDA Ireland and Enterprise Ireland have, of course, collectively been seeking to actively encourage more collaboration between the international leasing companies and the maintenance operators who are located here in Ireland. Such synergies are promoted by the Agencies’ direct engagement with relevant companies, in an effort to develop better linkages between these two sectors of the aerospace industry. You will appreciate however, that in cases where leasing companies are making decisions relating to on-going maintenance of their fleets, such decisions are solely a matter for those leasing companies themselves and are made on commercial, business efficiency and cost grounds.

Ireland’s success in building up a world-class Aircraft leasing sector has brought very significant benefits to the economy. The sector now employs over 1,000 people and controls assets of over €80bn. We have 9 of the top 10 lessors by fleet size here in Ireland. Its development to this level has been achieved by a favourable financial climate which has been developed and we have also specialist, multi-disciplinary, personnel available with the requisite skills. In relation to work to enhance Ireland’s attractiveness for Aircraft leasing, a wide range of financial and taxation incentives have been put in place over the years. These include rules on VAT, depreciation provisions and exemptions on various measures. Also of course, in relation to Corporations Tax, the attractive 12.5% rate applies. These incentives are kept under constant review and we are very conscious of the need to be able to offer an attractive business and financial environment to attract and retain companies in such an internationally mobile sector.

IDA Ireland globally has been engaged on an on-going basis to attract companies in all parts of the aviation sector into Ireland both to increase employment and improve the scale of the industry in Ireland. These efforts will continue.

Given the circumstances I have outlined, it is not considered that the very unfortunate closure of the Lufthansa engine maintenance plant in Rathcoole will adversely impact on the position of the leasing sector here.

Wage-setting Mechanisms

Questions (13)

Dara Calleary

Question:

13. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his views on the merits of a new national wage agreement; the way he feels this would impact on the prospects for jobs and consumer spending; and if he will make a statement on the matter. [2960/14]

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Written answers

I am aware that a number of public statements have been made in recent weeks, accompanied by media speculation, concerning the prospect of a return to some form of national-level wage bargaining for the private sector.

The commentary has been framed in a very constructive manner; it has been driven by concerns about the potential economic and industrial relations issues that might arise over the medium term as the economy continues to stabilise and wage bargaining perhaps returns as a noticeable feature on the Irish industrial relations landscape.

The return to such wage bargaining is already visible and I note, in this regard, that the Irish Business and Employers’ Confederation has indicated that around half of its members expect to experience some level of pay increase over the next 18 months. This will have a positive potential impact on domestic demand.

It is vital that any wage increases negotiated are not excessive, do not hamper the emergence of job opportunities, increase costs locally or impact on our competitiveness internationally.

We must never forget that Ireland’s economy had become increasingly and critically uncompetitive in the five years up to 2008. Regaining cost competitiveness, which has included wage restraint among other things, has been key in our fight to recover. We must be very careful that the gains so hard fought for over the past few years are not eroded.

Indeed, it could be argued that we have further to travel in this regard. According to the 2013 Forfás Report on Labour Market Competitiveness, despite some reductions, labour costs in Ireland remain above OECD averages. The Report found that Ireland has the 17th highest total labour cost level in the OECD-32 and the 11th highest net wage level in the OECD-32.

At the moment, I believe that firms and employers are taking stock of how the next 24 months will possibly pan out. Each assessment will be different and I do not believe that there is a homogeneous model for all Irish business at the moment. Rather, I think that employers must make their own assessments based on their personal experience of how their own business and sector is performing.

We know that some sectors are expanding at a faster pace than others while some are only beginning to stabilise and return to growth. In such a current scenario I am not convinced that a national wage agreement is feasible or desirable. Indeed, I have noted IBEC's view that local bargaining based on company-level realities is the appropriate manner in which to deal with wage pressures at this stage.

With some exceptions, Ireland has been through a period of industrial peace. IBEC and ICTU have agreed two separate Private Sector Protocols for the Orderly Conduct of Industrial Relations and Local Bargaining. This has played a significant role and I would hope that any disagreements arising during pay negotiations where they arise at company level do not cause industrial unrest.

However, I can assure the Deputy that it is an issue that I am monitoring closely. The next 18 months will be key in terms of getting the economy expanding again and I am determined to ensure that the gains achieved and the image of Ireland as the best small country in the world in which to do business are not damaged.

Enterprise Support Schemes

Questions (14)

Seán Fleming

Question:

14. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation the number of jobs supported by the competitive start fund operated by Enterprise Ireland; his views on the operation of the scheme; and if he will make a statement on the matter. [2965/14]

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Written answers

Enterprise Ireland offers a range of financial and non-financial supports to assist companies through all stages of the business development cycle. Enterprise Ireland’s Competitive Start fund is aimed at accelerating the development of High Potential Start-Up companies (HPSUs) and creating a strong pipeline of HPSUs. Enterprise Ireland piloted the Competitive Start Fund in 2011 which aims to provide early stage companies with critical funds to test the market for their products and services and progress their business plans for the global marketplace.

Under the terms of the Competitive Start Fund, start-ups receive an equity investment of €50,000 for a 10% ordinary equity stake by Enterprise Ireland matched by €5,000 of promoter’s equity. In addition to funding, each start-up is provided with an experienced business mentor to provide support. The application process has been designed and improved to be fast and efficient to allow the new start-ups to concentrate on validating their business concept and getting to market entry stage as quickly as possible.

To date 204 early stage companies have been approved a total of €10.2 million in equity investment under the fund. These companies employed a total of 243 people (full-time & part-time) as of October 2012*. Twenty five of these companies have progressed to being HPSUs and have raised seed funding. In 2013 Enterprise Ireland’s provisional data shows that it supported the creation of 103 HPSUs. These companies will make a significant contribution to the Irish economy and have committed to creating a total of 2,100 new jobs and generating over €300 million in annual sales by the end of 2015.

In 2014 Enterprise Ireland will launch 7 Competitive Start Fund calls with a particular focus on encouraging female entrepreneurs, young or graduate entrepreneurs, manufacturing technologies and aviation start-ups.

* Based on the latest available 2012 Forfás Employment data.

Job Creation

Questions (15)

Denis Naughten

Question:

15. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the steps he is taking to secure jobs at the MBNA site in Carrick-on-Shannon, County Leitrim; and if he will make a statement on the matter. [2894/14]

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Written answers

The position regarding potential developments at the two operations which formerly formed part of the original MBNA/Bank of America facility in Carrick on Shannon is essentially unchanged over recent months.

The former MBNA Credit Card processing facility in Carrick-on-Shannon now comprises two operations. Firstly, a new operation called AvantCard was established following the purchase of part of Bank of America’s Credit Card portfolio by Apollo. This operation employs approximately 250 staff, who manage the Irish card customers. These staff transferred from Bank of America to AvantCard (Apollo) under the EU Transfer of Undertakings Regulations on March 13th 2013. This was a very positive development and provided more certainty regarding this part of the operation.

The second operation remains in the ownership of Bank of America and employs approximately 200 people who manage the UK credit card customer business. The process regarding the possible sale of this UK credit card business remains on-going. Bank of America continues to look for a buyer for this business.

On another positive note, Apollo has acquired the entire building in Carrick and has leased office space back to Bank of America. We welcome this investment in Carrick-on-Shannon by Apollo.

Government’s priority is that any decision taken by Bank of America will have minimal impact on employees at the Carrick on Shannon operation and ensure that jobs are maintained at the facility. Minister Bruton emphasised this when he met with Senior Bank of America Executives in their Headquarters in Charlotte, North Carolina. IDA Ireland is in regular contact with Bank of America management in Dublin and with the parent company in the US to monitor developments. IDA met with senior executives of Apollo in London in September 2013 where the transfer of the Carrick facility and staff to Apollo, and further investment opportunities for the group in Ireland, were discussed.

IDA will remain in contact with the company and will continue to highlight the strengths of the Carrick operation to a broad range of potential investors.

IDA Jobs Data

Questions (16)

Éamon Ó Cuív

Question:

16. Deputy Éamon Ó Cuív asked the Minister for Jobs, Enterprise and Innovation the number of job announcements made by the Industrial Development Agency, broken down by region, within the State for the three years 2008 to 2010, inclusive; the number of jobs announcements by the IDA for the same regions for the three years 2011 to 2013, inclusive; and if he will make a statement on the matter. [2779/14]

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Written answers

I have been informed by IDA Ireland that in respect of job announcements, they are tracked on a calendar basis and not by region. In the period from 2008- 2010 there were 176 announcements, while in the period from 2011- 2013 there were 221 announcements, an increase of 25%, an increase with which I am pleased as foreign direct investment (FDI) is key to Ireland’s economic recovery. I have arranged to have copies of IDA Ireland’s announcements for each year from 2008 to 2013 supplied to the Deputy.

For a variety of reasons many IDA Ireland sponsored investments proceed without announcement. I would like to say that while IDA Ireland’s investment announcements are indicative of the improvement in our economic performance since this Government came to office, a better indicator by far are the Agency’s recently announced End of Year Results. Those results show that in 2013, 164 investments were secured and a record 7,071 net new jobs were created, the highest job creation figures in over a decade. There are now over 161,000 people employed in IDA Ireland client companies, the highest in IDA Ireland’s history

At the end of 2013, 72,500 people, roughly 44% of the total employment in IDA Ireland client companies, are located outside of Dublin and Cork. This figure includes those companies that were heretofore Shannon Development's client companies.

It must be acknowledged that some locations outside of Dublin and the main urban areas already facilitate the presence of a large number of multinational companies who have invested over the years, span multiple sectors and employ significant amounts of people. The primary opportunity for regional locations is in respect of the existing client base and potential further opportunities from same. Approximately 70% of all FDI investment won by IDA Ireland is from the existing client base. During 2013, there were some very big announcements in regional locations such as Dundalk, Limerick and Waterford.

I am, of course, concerned at the lack of investment in certain regional locations and I have, accordingly, requested IDA Ireland and Enterprise Ireland to work with my Department so that we can explore what further initiatives we can take to ensure we have a better approach to enterprise development in regional locations. This exercise will complement the in-depth analysis of our FDI strategy which is currently being undertaken by Forfás and which will take account of factors such as key trends emerging in FDI best practice internationally, Ireland’s strengths in attracting FDI and any changes to the EU’s State Aid Rules, which will come into effect on 1 July 2014. The results of these two exercises will form the basis of IDA Ireland’s strategy from 2015 onwards.

Finally I have appointed Frank Ryan, former Chief Executive Officer of Enterprise Ireland to be Chairperson of the board of IDA Ireland with effect from 1 January 2014. Given his previous experience in supporting enterprise development in this country while working in both IDA Ireland and Enterprise Ireland, he is ideally placed to oversee the next phase of growth in the multinational sector. I have every confidence that under his Chairmanship, the multinational sector can continue the strong growth which has been so crucial to our economic recovery in recent years. I look forward to working with IDA Ireland, Enterprise Ireland and officials of my Department in developing strategies for the enhancement of enterprise and jobs in the regional locations.

Company Closures

Questions (17)

Catherine Murphy

Question:

17. Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation if, regarding the closure of Lufthansa Technik Airmotive Ireland's jet engine overhaul facility and the possible loss of a particular domestic skills base as a result, he will give an assurance that a strategy is in place to deal with such closures where highly valuable skills are threatened; if any such support has been arranged for the workers in this case to try and keep their skills here; and if he will make a statement on the matter. [2950/14]

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Written answers

The Government is totally committed to the retention and expansion of our Manufacturing sector. The new Manufacturing Strategy, which I launched last year sets out an ambitious target to create an additional 20,000 jobs by 2016 and a range of actions are underway to drive that target. It is very heartening that after several years of significant job losses in that sector, job levels are now rising. However within that manufacturing sector there are many different sub sectors and some face greater challenges than others. The aircraft engine maintenance sector is one of those facing a particularly difficult set of circumstances due to global factors, including over capacity in the industry and changing dynamics in the way the players interact.

With regard to skills specifically for manufacturing, I also commissioned a detailed report, prepared last year by the Expert Group on Future Skills Needs/Forfas and this identified key actions to help ensure that the required skills are available for the sector. Work is in hand to drive those actions, particularly with the various educational and training bodies.

In relation to Lufthansa, IDA Ireland, in conjunction with Enterprise Ireland, has been actively seeking to attract new employment opportunities for the workers being made redundant. The agencies have been targeting existing and prospective clients highlighting the skills and capabilities of these employees as a key attractor. The Agencies have had on-going engagement with the relevant educational bodies to evaluate potential training and up-skilling supports for these employees. Despite extremely difficult global market conditions in that particular sector, every effort is being made to help attract alternative employment opportunities.

While we do have several companies thriving in various aspects of aircraft maintenance, employing about 4,000 staff, including two very successful companies at Dublin Airport and another Lufthansa operation in Shannon, the engine casing repair companies have been under very severe pressure, largely due to global changes.

Given the various global pressures and factors which arise from time to time for specific sectors and sub-sectors of industry, and the free-market business environment in which we operate, it is not possible to ensure that in the case of every closure, that mechanisms are in place to ensure that immediate re-employment of staff who have been made redundant. However every effort is made by the relevant State bodies to mitigate the adverse impacts involved and to try to ensure that re-employment opportunities are maximised. This is particularly important in the case of high skilled employees.

Industrial Development

Questions (18)

Jonathan O'Brien

Question:

18. Deputy Jonathan O'Brien asked the Minister for Jobs, Enterprise and Innovation the steps he will take with the Industrial Development Agency following its failure to again meet the target of 50% of investment located outside of the major urban centres of Cork and Dublin. [2947/14]

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Written answers

The IDA Ireland Strategy for the period 2010 to 2014, “Horizon 2020”, set an ambitious regional economic development target of 50% of investments in regions outside Dublin and Cork and this has proven to be a challenge. There are many complex factors influencing investor location decision-making such as the increasing preference of investors globally for cities of scale with 1 million plus population, significant challenges from lower cost locations in the UK and Eastern Europe and attractive regional aid.

While I am, of course, disappointed that IDA Ireland has failed to meet the very ambitious target of 50%, the result for 2013 at 30% is ahead of the outcome of 25% in 2012 indicating a positive trend in terms of new investment in the Regions. I should point out that 72,500 people, roughly 44% of the total employment in IDA Ireland’s base of companies including those that were former clients of Shannon Development, are located outside of Dublin and Cork.

It must be acknowledged that some locations outside of Dublin and the main urban centres already facilitate the presence of a large number of multinational companies who have invested over the years, span multiple sectors and employ significant amounts of people. The primary opportunity for regional locations is in respect of the existing client base and potential further investment opportunities from same. Approximately 70% of all FDI investments won by IDA Ireland is from the existing client base. During 2013, there were some very big announcements in regional locations such as Dundalk, Limerick and Waterford.

I am, of course, concerned at the lack of investment in certain regional locations and I have, accordingly, requested IDA Ireland and Enterprise Ireland to work with my Department so that we can explore what further initiatives we can take to ensure we have a better approach to enterprise development in regional locations. This exercise will complement the in-depth analysis of our FDI strategy which is currently being undertaken by Forfás and which will take account of factors such as key trends emerging in FDI best practice internationally, Ireland’s strengths in attracting FDI and any changes to the EU’s State Aid Rules, which will come into effect on 1 July 2014.

The results of these two exercises will form the basis of IDA Ireland’s strategy from 2015 onwards.

Finally, I have appointed Frank Ryan, former Chief Executive Officer of Enterprise Ireland to be Chairperson of the board of IDA Ireland with effect from 1 January 2014. Given his previous experience in supporting enterprise development in this country while working in both IDA Ireland and Enterprise Ireland, he is ideally placed to oversee the next phase of growth in the multinational sector. I have every confidence that under his Chairmanship, the multinational sector can continue the strong growth which has been so crucial to our economic recovery in recent years. I look forward to working with IDA Ireland, Enterprise Ireland and officials of my Department in developing strategies for the enhancement of enterprise and jobs in the regional locations.

Employment Rights

Questions (19)

Dara Calleary

Question:

19. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his views that adequate protection is in place for part-time workers, including those on so-called zero hours contracts; and if he will make a statement on the matter. [2961/14]

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Written answers

The Protection of Employees (Part-Time Work) Act 2001 implemented EU Council Directive 97/81/EC into Irish law. The purpose of the Directive was to implement the Framework Agreement on part-time work concluded by the European cross-industry organisations UNICE, CEEP and the ETUC.

The purpose of the Framework Agreement, which was annexed to the Directive, was to eliminate discrimination against part-time employees and to improve the quality of part-time work. It also aimed to facilitate the development of part-time work on a voluntary basis and to contribute to the flexible organisation of working time in a manner which takes into account the needs of employers and employees.

Accordingly, the Protection of Employees (Part-Time Work) Act 2001 provides a wide degree of protection for part-time employees, including the general protection that a part-time employee shall not be treated in a less favourable manner in respect of his/her conditions of employment than a full time employee.

With regard to employees on zero hours contracts, who are a category of part-time employee, I note that these contracts must be entered into freely by the employer and the employee – one cannot be forced upon an employee. Zero hours contracts are normally found in sectors such as retail, healthcare and hospitality. I am very conscious that in certain circumstances, they may be of great benefit to both employers and employees. They allow greater flexibility for both, reducing the employer’s pay costs, while workers can decide when and if they want to work. Such contracts may be preferred by employees who require flexibility to facilitate educational or other personal requirements and banning such contracts could do a disservice to these workers. However, this is an area I will keep under review.

Section 18 of the Organisation of Working Time Act 1997 contains a specific protection for such employees. The zero hours protection applies to all employees whose contract operates to require them to be available whether they work on a casual basis or not. It covers situations where, for example, an employee is sent home if things are quiet or is requested to be available for work and is not, on the day, asked to work. Where an employee suffers a loss by not working hours he/she was requested to work or be available to work, the zero hours provisions of the Act ensure that he/she is compensated for 25% of the time which he/she is required to be available or 15 hours, whichever is the lesser. The level of compensation may be impacted if the employee got some work. Claims of breaches of section 18 may be referred to a rights commissioner.

An expectation of work does not, however, entitle an employee to compensation. The zero hours provision does not apply to lay-offs, short-time, emergency or exceptional circumstances, employee illness, employee on-call or where the employee is paid wages for making him/herself available for work.

Sections 17 and 19 of the Organisation of Working Time Act may also be of particular interest to employees on zero hour contracts. Section 17 sets out the requirements regarding notification to the employee of the times at which he/she will be required to work during the week. Generally, an employee is entitled to 24 hours’ notice of his/her roster for the week, although section 17(4) allows for changes as a result of unforeseen circumstances.

Section 19 sets out an employee’s entitlement to paid annual leave equal to 4 working weeks in a leave year in which he or she works at least 1,365 hours (unless it is a leave year in which he or she changes employment) or one-third of a working week for each month in the leave year in which he or she works at least 117 hours or 8 per cent of the hours he or she works in a leave year (but subject to a maximum of 4 working weeks).

European Investment Bank Loans

Questions (20)

Michael McGrath

Question:

20. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation the way he believes funding from the European Investment Bank can be further leveraged to support job creation here; and if he will make a statement on the matter. [2967/14]

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Written answers

Policy responsibility for leveraging funding from the European Investment Bank (EIB) rests with my colleague the Minister for Finance.

However, since Mr. Werner Hoyer’s appointment as President of the EIB in 2012, there has been increased engagement between Departments, Agencies and Financial Intermediaries and the Bank. A joint Irish EIB High Level Working Group (HLWG) was established to identify concrete and flexible mechanisms to enhance the Bank’s support for Ireland’s growth agenda. The EIB and Ireland are strongly committed to working together to enhance the Bank’s activity in the country and this commitment is beginning to bear results with increased contacts at many levels.

Total funding, by the EIB Group to Irish projects in 2013 was €1.193 billion, representing a 21% increase on 2012 levels, including funding for SMEs in the form of €200 million in loans to AIB targeted specifically at SMEs.

In addition to securing a higher level of funding for Irish projects in 2013 than in 2012, funding went to a larger number and broader range of projects than in previous years including infrastructure projects, with loans to the University of Limerick, the Grangegorman PPP, Irish Schools Programme, the Dublin Cross City Luas Project and the N11/N7 Motorway. EIB support has also been secured in the renewable energy sector including a loan to AIB for small to medium renewable energy projects in Ireland; the Bord Gáis Onshore Wind Programme, which consists of the construction and operation of six onshore wind farms located in Ireland, and the ESB Renewable Connection. Moreover, there was specific support for micro and small and medium enterprises (SMEs) in the form of a loan to AIB for €100m. Furthermore, the European Investment Fund (EIF) has supported the recently announced Development Capital Scheme in Ireland and has continued its support for the Microenterprise Loan Fund managed by Microfinance Ireland.

Close engagement between Ireland and the EIB will continue in 2014 with a number of proposals being discussed between the Department of Finance, the Department of Jobs, Enterprise and Innovation and the EIB for further support of Ireland’s growth agenda. For example, as announced in Budget 2014, given the importance of the export sector to sustainable economic growth and employment, officials from my Department and Enterprise Ireland, as well as well as the Department of Finance, are in discussions with the EIB on the feasibility of an EIB-supported trade finance initiative which would proactively support Irish exporters in growing their businesses abroad. Work in support of this will feature in the Action Plan for Jobs 2014.

The EIB support for Ireland’s growth agenda will contribute to job creation and will complement this Government’s drive for job creation through the Action Plan for Jobs in the coming year.

Skills Shortages

Questions (21)

Denis Naughten

Question:

21. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the initiatives he is taking in view of the report by the Oireachtas Joint Committee on Jobs, Enterprise and Innovation regarding serious skills shortages in the ICT sector here; if he will establish an Irish technology visa; and if he will make a statement on the matter. [2895/14]

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Written answers

The rapidly evolving technology sector represents both a challenge and an opportunity for Ireland, and it is my intention and the intention of my colleagues in Government to harness to the greatest extent possible developments in this sphere to the benefit of the country. Since the Oireachtas Committee's Report was issued in October 2012, a study undertaken for the European Commission in April 2013 projects that there may be up to 900,000 ICT job vacancies in Europe by 2015. In addition, the Expert Group on Future Skills Needs (EGFSN) published a report in November 2013 which projects that there will be more than 44,500 potential job openings for ICT professionals in Ireland over the period from 2013 to 2018, including almost 20,400 potential job openings for both new graduates and skilled professionals between 2013 and 2015.

Almost half of applications for new Employment Permits during 2013 were from applicants with critical ICT skills, both within and beyond the ICT sector itself. The Action Plan for Jobs (APJ) 2013 committed to delivering a range of additional measures to streamline and simplify the Employment Permit application process, with shortages in the ICT sector specifically in mind. These have all been delivered.

For example, an ICT Green Card employment permit application may now be made in respect of all sectors of the economy, not just in the ICT sector itself, in recognition that ICT skills are in short supply across the economy. An Intra-Company Transfer Permit holder or a Contract Service Provider Employment Permit holder can now apply for other types of Employment Permits. The €30,000 salary threshold for IT Graduates (both graduates of Irish and foreign colleges) has been reduced to €27,000, as well as for Specialist Language Support & Technical or Sales Support with fluency in a non-EEA language for client companies of the Enterprise Development Agencies, many of which are in respect of ICT skills. This year, the application process is being enhanced by the development of a ‘Trusted Partner Registration Scheme’ to allow fast tracking of applications for employment in selected enterprises that are enterprise agency clients.

Other changes to the application process, which include moving the Employment Permits call centre to NERA and the introduction of an eForm, have reduced processing times for issue of Employment Permits by an average of 33% over the course of 2013.

Together with the Minister for Education and Skills, I am currently developing a new ICT Action Plan, informed by the progress to date in implementing the measures under the first ICT Action Plan, and the EGFSN Report. That report presents new demand scenarios for high level ICT skills to 2018. The Plan will bring together actions by industry, education providers and the state sector to meet the challenge of ICT skills shortages, with an expected launch date shortly. The focus of the new Plan will be on building the supply of graduates and skilled professionals with core ICT/electronic engineering qualifications at honours degree level and above.

Whilst I have no plans to introduce a Technology Permit, I am pleased that the scope of the new ICT Action Plan is being broadened to encompass measures to increase the supply of highly skilled and experienced ICT professionals from abroad, to meet expected skills demand in the short term. I also intend to bring before the Houses an Employment Permits (Amendment) Bill during this session to underpin an employment permits regime, specifically focused on plugging skills gaps and minimising their impact on enterprise growth. I am confident that the changes to the application requirements specific to the Highly Skilled Occupations – which includes ICT skills - will enhance Ireland’s attractiveness as a destination for ICT professionals and their families.

Company Closures

Questions (22)

Clare Daly

Question:

22. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation the outcome of discussions that he had with Lufthansa Technik in relation to saving the hundreds of jobs at the company's plant; the reason for the closure, including addressing the level of State investment that had been made in the facility over the past number of years; the future plans for the site and buildings; the options that exist for alternative employment; and if he raised the fact that the company approvals were transferred from the IAA to its German counterpart during the year, which would indicate that they had made a decision to close substantially earlier than the announcement. [2777/14]

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Written answers

Prior to the closure announcement I met senior international management of this company several times and discussed issues relating to this plant in detail. Over recent years IDA Ireland held constant engagement with the company in an effort to help them deal with various issues and challenges. Unfortunately the company was faced with declining revenues and shrinking international opportunities and, following an extensive company review which was carried out, they took the decision to close several plants worldwide, including the Irish engine casing facility in Rathcoole. Lufthansa’s other aircraft maintenance operation based in Shannon continues to operate.

The reasons for this closure are complex; modern aircraft engines require less maintenance, the aircraft manufacturers and the engine manufacturers now play a greater role in determining where maintenance is carried out, competition from lower cost Asian centres is intense and it is, or course, a very mobile and globalised industry. There have been new entrants into the sector and, in addition, currency movements have further increased competitive pressures.

In relation to State Investment in the Rathcoole operation over the years, total grant aid paid to the company in respect of Employment, Capital, Research and Development and Training since 1978 was €10.7m. There is no contingent liability to the State in respect of these grants.

Regarding the site and buildings, while the Lufthansa company own key parts of the plant, other external companies own some peripheral parts of the overall site. A potential new operator would obviously have to come to an acceptable arrangement with the current owners. The IDA is actively pursuing the attraction of potential new investors to take over the plant and have created a profile of the workforce and their skills, for marketing purposes.

With regard to licences/permits, maintenance organisation approvals are issued in accordance with Commission Regulation (EC) No 2042/2003 of 20 November 2003 as amended, annex II, Part 145. Up until December 2011, the Irish Aviation Authority (IAA) approved and provided the required certification for Lufthansa Airmotive Ireland Ltd for its Irish based operation. However, in accordance with the legislation (EU Regulation 216/2008), a single approval can include several different plants in different countries, i.e. approval from the Member State of the principle place of business is sufficient for a subsidiary in another Member State. The IAA approval certificate for Lufthansa Airmotive Ireland Ltd was returned to the IAA in December 2011, following a rationalisation program to bring all of the Lufthansa subsidiaries under German authority approval. This process commenced in July 2011.

Local Enterprise Offices Establishment

Questions (23)

Jonathan O'Brien

Question:

23. Deputy Jonathan O'Brien asked the Minister for Jobs, Enterprise and Innovation if the proposed local enterprise offices will be fully functioning in 2014. [2948/14]

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Written answers

The County Enterprise Boards (Dissolution) Bill, 2013 has completed its passage through the Seanad and is scheduled for debate in the Dail on 6th February, 2014.

In tandem with the passage of the legislation, work is ongoing at local level between the CEBs and the Local Authorities on practical administrative arrangements in advance of the formal commencement of the new structure, including the testing of Financial Management and ICT systems. Enterprise Ireland has established a new Micro and Small Business Division/Centre of Excellence and a robust Service Level Agreement between Enterprise Ireland and the Local Authorities has been agreed and published. The LEO Branding and Logo have been developed and launched, and a project to develop a common LEO website is currently underway.

The target date for the legal dissolution of the CEBs and the formal launch of the Local Enterprise Offices (LEOs) is mid-April, 2014.

Media Mergers

Questions (24)

Dara Calleary

Question:

24. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his views that the delay in introducing legislation in regard to media mergers has been damaging to the diversity of content in the sector and its overall development; and if he will make a statement on the matter. [2964/14]

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Written answers

Media mergers are covered by the Competition Act, 2002. The Advisory Group on Media Mergers’ Report of June 2008 on media mergers recommended that the Competition Authority should remain responsible for the examination of the lessening of competition test and that the appropriate Minister should have responsibility for a new public interest test.

Recent statistics show there are a small number of media mergers each year, most of which do not require in-depth examination under the Competition Act, 2002 (so called “Phase 2” investigations). The last media merger that required a “Phase 2” investigation was in 2009.

 -

2008

2009

2010

2011

2012

2013

Total 2008-2013

Total number of mergers notified to the Competition Authority

37

27

46

40

33

37

220

Total number of media mergers

5

2

8

5

3

5

       

28

Number of media mergers that went to Phase 2

0

1

0

0

0

0

   

1

Media mergers decided upon

6

3

8

3

5

4

29

These figures do not bear out the suggestion that the presence or lack of legislation has been damaging to the diversity of content within the sector or with its overall development.

The Competition and Consumer Protection Bill will implement, for the most part, the recommendations of the Advisory Group on Media Mergers. Publication of the Bill is expected in the coming weeks. Post-enactment, responsibility for the public interest aspect of media merger determinations will transfer to the Minister for Communications, Energy and Natural Resources.

Job Creation Targets

Questions (25)

Bernard Durkan

Question:

25. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if he will set out his priorities for job creation over the next three years; the extent to which the young unemployed are likely to benefit; if he continues to be satisfied regarding the competitiveness of our economy; and if he will make a statement on the matter. [2897/14]

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Written answers

The Government’s Action Plan for Jobs has set the objective of supporting the creation of 100,000 extra jobs in the economy over the period 2012 to 2016 through a series of annual measures aimed at improving Ireland’s competitiveness and making it easier for enterprises to do business. Broadly speaking, the Action Plan for Jobs envisages that an extra 20,000 jobs can be created in manufacturing activities, while 30,000 jobs can be created in internationally traded services. These will support a further 50,000 new indirect jobs in the economy.

The latest employment statistics published by the Central Statistics Office (26th November 2013) show that employment increased by 58,000 in the year to Quarter 3 2013. Increases in employment have been recorded in eight of the fourteen economic sectors categorised by the CSO, including a number which are targeted for attention under the Action Plan for Jobs, such as Agriculture, ICT, and Accommodation and Food services.

The Government is tackling the issue of youth opportunities in the labour market through the combined efforts of the Action Plan for Jobs and Pathways to Work. Through these strategies, the Government has brought in a range of new initiatives such as JobBridge, Springboard, Momentum, JobsPlus, and the ICT Action Plan, to help people to upskill or enter employment. These schemes provide opportunities for all people who are unemployed, including young people.

The 2014 Action Plan for Jobs, which will be published shortly following its approval by Government, will include a number of additional measures to support youth employment.

Through the Action Plans for Jobs in 2012 and 2013, the Government has focused on measures aimed at restoring our competitiveness position and creating a supportive environment for businesses operating in Ireland. 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. Ireland is ranked 15th in the World Bank’s Doing Business 2014 report, while Forbes magazine recently named Ireland as the “best country for business”, up from sixth position in the previous year.

While Ireland’s competitiveness has improved, we must continue to do more to ensure that these competitiveness gains are not eroded as the economy begins to recover. The Action Plan for Jobs will continue to be the key vehicle for the identification and delivery of specific policy measures that will bring further improvements to our competitiveness position and support job creation.

Enterprise Data

Questions (26)

Seán Fleming

Question:

26. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation the number of jobs that were created through the county enterprise boards in 2013; when the local enterprise offices will be operational; and if he will make a statement on the matter. [2966/14]

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Written answers

Statistics in relation to the number of jobs created in 2013 through support provided by the County and City Enterprise Boards (CEBs) are currently being compiled as part of the CEB Annual Employment Survey of client companies. It is expected that the information will be available later this Quarter. Provisional figures suggest that over 2,500 jobs have been created or sustained last year through the capital support provided by the CEBs.

As part of the process of restructuring the enterprise supports for micro-enterprises, the existing metrics being used by the CEBs are being revised and extended to make them more relevant as a means of reporting on the performance of the new Local Enterprise Offices (LEOs). Under this process, the jobs metrics will be brought in line with Forfás methodology and will include appropriate jobs targets for each LEO.

The County Enterprise Boards (Dissolution) Bill, 2013 has completed its passage through the Seanad and is scheduled for debate in the Dail on 6th February, 2014.

In tandem with the passage of the legislation, work is ongoing at local level between the CEBs and the Local Authorities on practical administrative arrangements in advance of the formal commencement of the new structure, including the testing of Financial Management and ICT systems. Enterprise Ireland has established a new Micro and Small Business Division/Centre of Excellence and a robust Service Level Agreement between Enterprise Ireland and the Local Authorities has been agreed and published. The LEO Branding and Logo have been developed and launched, and a project to develop a common LEO website is currently underway.

The target date for the legal dissolution of the CEBs and the formal launch of the Local Enterprise Offices (LEOs) is mid-April, 2014.

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