Tuesday, 28 Jan 2014

Written Answers Nos. 322-345

Departmental Bodies

Questions (322)

Pearse Doherty

Question:

322. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the number of appointments to State boards under the remit of his Department that were made as a result of applications made through the Publicjobs.ie website in the last three years; the number of board posts that were advertised on Publicjobs.ie; the number of board posts that were not advertised on the website but instead were directly appointed; and the average pay to directly appointed board members. [4023/14]

Written answers

Minister for Public Expenditure and Reform

As the Deputy is aware in 2011 the Government introduced new arrangements for the appointment of State board members.  Under the new arrangements Departments now invite expressions of interest on their websites from the public in vacancies on the boards of bodies under their aegis. It is open to all members of the public regardless of gender, political affiliations or geographically location to apply for appointment to these vacancies.

I am satisfied that the new arrangements introduced by the Government in 2011 have significantly improved transparency in the making of appointments to State Boards compared with the making of appointments in previous years. 

Since the formation of this Government 22 members have been nominated to State Boards under my remit. In the context of the sale of the National Lottery licence, I have considered it appropriate to re-appoint two of the Ministerial nominees to the An Post National Lottery Board; Mr. Micheál Ó Muircheartaigh has been re-appointed twice and Mr. Oliver Wilkinson has been re-appointed once.  Consequently, recourse to publicjobs.ie did not arise.  Each of the aforementioned Board members receives an annual fee of €12,600.

The Public Service Management (Recruitment and Appointments) Act, 2004 states that the Minister for Public Expenditure and Reform (in consultation with Minister for the Environment, Community and Local Government, the Minister for Health and the Minister for Justice and Equality) should appoint members of the Board of the Public Appointments Service.

The Public Appointments Service Board is meant to be representative of our client base.  The majority of the board is therefore civil or public servants, nominated by the relevant Minister.  There is also a union representative nominated by ICTU.  The two external members were appointed by the Minister because of their expertise in strategic change and public service recruitment respectively. The Chairman is paid an annual fee €11,970 and three of the Board members are paid at a rate of €7,695 each per annum. 

In view of these statutory procedures for the appointment of members of the Boards, there is limited scope for me to use the Publicjobs.ie website. The following tables give a breakdown of positions filled on State boards under my remit in since March 2011:

Board Name		No. of Appointments made	No. of Positions Advertised	No. of Current Vacancies
	2011	0
	2012	2
An Post National Lottery Board	2013	6	0	1
	2011	9
	2012	2
Public Appointments Service Board*	2013	3	0	0
Total		22	0	1

* The CEO of PAS is appointed to the Board on an ex officio basis.

Parliamentary Party Allowances Expenditure

Questions (323)

Seán Fleming

Question:

323. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the total amount that will be spent on the Party Leaders' Allowance in 2014; the way this amount differs from 2013; and if he will make a statement on the matter. [4170/14]

Written answers

Minister for Public Expenditure and Reform

The total amount paid under the Party Leader s allowance in 2013 to leaders of qualifying parliamentary parties and to qualifying independent members was €8.33 million. Following a review of the allowance and a consultation process with leaders of qualifying political parties, qualifying independent members and with the Standards in Public Office Commission, I published the Oireachtas (Ministerial and Parliamentary Offices) (Amendment) Bill 2013 in October 2013.  The Bill has passed all stages in Seanad Éireann and is currently in passage through Dáil Éireann. The Bill provides for a reduction of 10% in the rates of the allowance, representing an estimated full year Exchequer saving of €0.84 million. The date on which the reduction will come into effect is subject to the enactment of the Bill. On this basis, I cannot provide a precise figure for the amount payable in 2014 at this time.

Departmental Bodies

Questions (324)

Michael McGrath

Question:

324. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform if he will, in respect of his Department's audit committee, provide details of its current membership; the date of appointment of each member; the fees paid to each member; if members of the committee are required to hold certain professional qualifications; and if he will make a statement on the matter. [4222/14]

Written answers

Minister for Public Expenditure and Reform

There are five members on the Audit Committee  of my Department, as follows: Mr Aidan Horan (Chairperson, Non-Executive Member). Mr Horan is a Director of the Institute of Public Administration (IPA) and is a qualified accountant.   As Mr Horan is a serving public servant, Mr Horan's employer (the IPA) was paid €2,062.17 in fees in respect of Mr Horan's work on the Committee for 2013. Mr Horan was appointed on the 1st January 2012. Mr John Neary (Non-Executive Member) Mr Neary is a Director with GE Capital.  Mr Neary waived all fees in respect of 2013.  Mr Neary was appointed on the 1st January 2012. Mr Joe Treacy (Non-Executive Member) - Mr Treacy is a Director in the Central Statistics Office. As a serving civil servant, Mr  Treacy does not receive any fee in respect of his work on the Committee.  Mr Treacy was appointed on the 25th October 2013. Mr William Beausang (Executive Member). Mr Beausang is an Assistant Secretary in the Department of Public Expenditure and Reform.  As a serving civil servant, Mr Beausang does not receive any fee in respect of his work on the Committee.  Mr Beausang was appointed on the 1st January 2012. Ms Kathryn SmIth (Executive Member). Ms Smith is Head of Operations for the Office of Government Procurement.  As a serving civil servant, Ms Smith does not receive any fee in respect of work on the Audit Committee.  Ms. Smith was appointed on 24 January 2014.

While there is no explicit requirement for Members of the Committee to hold certain   professional qualifications,  Members of the Committee are selected on the basis of  either  their knowledge  of or experience in an auditing, accounting or business-related and/or public sector function.  The Head of the Internal Audit unit in my Department is the Chief Audit Executive and agrees the work programme of the Internal Audit Unit with the Audit Committee.  All the professional auditing staff in the Internal Audit Unit are qualified accountants.

Public Service Reform Plan Measures

Questions (325)

Robert Troy

Question:

325. Deputy Robert Troy asked the Minister for Public Expenditure and Reform regarding his Public Service Reform Plan 2014-2016, and the intention that services be born digital and digital by design, the alternative arrangements he intends to make for citizens who will not be able to access online service provision due to inadequacy or unavailability of broadband connections; and if he will make a statement on the matter. [4253/14]

Written answers

Minister for Public Expenditure and Reform

The move to "digital by default" in the Public Service Reform Plan is an acknowledgement that digital delivery should be assumed for all new services, and that existing services may need to be re-engineered to take advantage of the ongoing changes in the technology landscape and the consequent impact on how services should be delivered and consumed. Any changes will need to reflect the obligation on public bodies to design services around the real needs of citizens and businesses, and this includes the obligation to take all reasonable measures to ensure that services are accessible.  One of the barriers to accessing certain online public services may be the unavailability of suitable broadband in certain locations. However, the Department of Communications Energy and Natural Resources is currently implementing a National Broadband Plan which aims to deliver access to high speed broadband to all parts of the country, with a view to ensuring that all citizens and businesses can participate fully in, and maximise the benefits of, a digitally enabled economy and society.

State Bodies Mergers

Questions (326)

Brendan Smith

Question:

326. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform if he will outline the up-to-date position regarding the proposal to merge Coillte and Bord na Móna; and if he will make a statement on the matter. [4290/14]

Written answers

Minister for Public Expenditure and Reform

The House will be aware that in the context of the Programme for Government commitment to create a streamlined and refocused commercial state company in the bio-energy and forestry sectors, the Government decided in June 2013 that an evaluation would be carried out on how to give effect to a beneficial merger of Coillte and Bord na Móna.  This work is now nearing completion.  A draft report on the financial costs and benefits of a merger was prepared by NewERA in conjunction with the companies and circulated to relevant Departments in late 2013.  The draft report is currently under discussion with the Departments, and is expected to be finalised shortly and submitted to the relevant Ministers for consideration myself, the Minister for Agriculture, Food and the Marine and the Minster for Communications, Energy and Natural Resources. I expect that a recommendation on the matter will be brought to Government shortly thereafter.

Consumers Association of Ireland Funding

Questions (327)

Patrick Nulty

Question:

327. Deputy Patrick Nulty asked the Minister for Jobs, Enterprise and Innovation if the Consumers Association of Ireland has supplied his Department with its quarterly reports in relation to the its €47,000 2013 funding application; if the association has met its performance indicators in respect of the project and targets as outlined in its funding proposal; and if he will make a statement on the matter. [3486/14]

Written answers

Minister for Jobs, Enterprise and Innovation

As part of the agreement to provide funding support in December, 2012, the Association committed to providing my Department with quarterly reports on various activities which would include reporting on a series of indicators on the basis that they would provide a credible challenge in how it approached building capacity in a number of its key areas. The Consumers' Association of Ireland submitted three quarterly reports during 2013 as agreed in respect of funding it received in 2012. The final report for the 4th quarter of 2013 is due to be submitted by the Consumers' Association of Ireland to my Department shortly.

The indicators that were agreed with the Association for each quarter of 2013 included the gathering of metrics on the number of media interviews undertaken, measurement of website statistics, membership figures per category, number of emails received requesting consumer advice and information, number of phone calls received seeking consumer advice and information and measuring the public interest in various consumer issues which were the subject of 6 polls undertaken on behalf of the CAI.

Banking Sector Regulation

Questions (328, 329)

Pearse Doherty

Question:

328. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation further to Parliamentary Question No. 286 of 15 January 2014, his views on whether paragraph 59 of IAS 39 as referenced-losses expected as a result of future events, no matter how likely, are not recognised means that banks, albeit for a temporary period, are allowed to delay the recognition of expected losses and therefore overvalue loans in their published accounts. [3561/14]

Pearse Doherty

Question:

329. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation his views on whether, for the period 2005 to the present, the non-recognition of expected losses to the extent carried out by Irish banks is contrary to paragraphs 14 and 37 of the IASB framework as endorsed by the European Union; and if he will make a statement on the matter. [3562/14]

Written answers

Minister for Jobs, Enterprise and Innovation

I propose to take Questions Nos. 328 and 329 together.

Paragraph 59 of International Accounting Standard 39 (IAS 39) “Financial Instruments: Recognition and Measurement” explicitly precludes the recognition of losses expected as a result of future events, no matter how likely. Paragraph 59 falls within the part of IAS 39 that deals with “impairment and uncollectability of financial assets measured at amortised cost”, so that it applies to (among other things) loans that banks have advanced to customers.

Paragraph 59 of IAS 39 requires that there must be objective evidence of impairment as a result of a “loss event” (also known as a “trigger event”). The determination of whether a loss event (within the meaning of IAS 39) has or has not occurred involves a degree of subjective judgement, in the exercise of which prudence or conservatism may be appropriate. The exercise of prudence or conservatism in such circumstances does not imply the recognition of expected losses.

The IASB “Framework for the Preparation and Presentation of Financial Statements”, which was superseded by the “Conceptual Framework” in 2010, was not an International Accounting Standard or International Financial Reporting Standard and therefore endorsement or adoption by the EU under Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 (the “IAS Regulation”) did not arise.

The individual standards adopted under Regulation 1606/2002 set out the accounting requirements with which companies to which they are applicable must comply.

IDA Site Visits

Questions (330, 335)

Arthur Spring

Question:

330. Deputy Arthur Spring asked the Minister for Jobs, Enterprise and Innovation his views on whether the number of Industrial Development Agency led visits by potential investors to County Kerry will be increased in future years; the changes to regional aid grants that are required to make County Kerry more attractive to potential investors; and if strategies to rectify the imbalance between the number of IDA led visits to major cities in comparison to designated hub towns will be implemented. [3578/14]

Arthur Spring

Question:

335. Deputy Arthur Spring asked the Minister for Jobs, Enterprise and Innovation his views on whether the number of Industrial Development Agency led visits by potential investors to County Kerry will be increased in future years; the changes to regional aid grants that are required to make County Kerry more attractive to potential investors; and if strategies to rectify the imbalance between the number of IDA led visits to major cities in comparison to designated hub towns can be implemented. [3991/14]

Written answers

Minister for Jobs, Enterprise and Innovation

I propose to take Questions Nos. 330 and 335 together.

The arrangement of IDA Ireland sponsored site visits by potential investors to individual locations throughout the country is a day to day operational matter for the Agency. I understand from IDA Ireland that 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 IDA Ireland does try to influence the location decisions of prospective and existing client companies, the decision relating to where to visit and where to locate are ultimately a matter for the investor.

As I have said on more than one occasion in this House, 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.

However, that having been said, 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. I should also 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.

The Regional Aid Guidelines enable the State’s industrial development agencies to pay grants, at enhanced rates, to businesses in order to support new investment and new employment in productive projects in Ireland's most disadvantaged regions. This helps the convergence of these regions with the more advantaged regions of the Union. All such grants come from the exchequer, i.e. there is no EU or other external funding.

The guidelines for 2014 to 2020 were adopted by the Commission on 19 June 2013 and will enter into force on 1 July 2014. As a result, changes to Regional Aid grant rules will not be possible until 2021.

As things stand, Kerry qualifies for regional investment aid for SME’s under the current 2007-2013 Regional Aid Map, at a rate of 20% for medium sized companies (50 to 249 employees) and 30% for small companies (under 50 employees). Since January 2009, Kerry no longer qualifies for regional aid for investment projects by large companies.

For the 2014-2020 Irish Regional Aid Map, economic data such as unemployment and Gross Domestic Product for all counties, including Kerry, will once again be analysed afresh when deciding which counties will be designated for Regional Aid.

If Kerry, or any other Irish region, was to be designated, aid to all categories of companies would be allowed. The rates for SME’s would be the same as those that apply in 2007-2013. The rates for investment by large companies would be 10% for certain activities only.

My officials are currently compiling the most up to date economic data for each county in order to determine which counties will qualify for inclusion in a revised Regional Aid Map for Ireland. Once this data has been compiled and analysed, qualifying regions up to a maximum of 51.28% of the total population will be included in the new map. This must be agreed by Government and submitted to the Commission by the end of June, 2014.

It is important to note that all of the Country, including those areas not entitled to Regional Aid, can qualify for other forms of State investment e.g. Research & Development Aid, SME Investment Aid, Training Aid and Aid for Environmental protection etc.

National Internship Scheme Data

Questions (331)

Gerry Adams

Question:

331. Deputy Gerry Adams asked the Minister for Jobs, Enterprise and Innovation if he will provide in tabular form the number of JobBridge interns taken on in County Louth in his Department from September 2013 until January 2014. [3609/14]

Written answers

Minister for Jobs, Enterprise and Innovation

My Department is a participant in the "JobBridge National Internship Scheme” providing work experience placements for interns for a 6 or 9 month period. When an opportunity arises to offer a JobBridge internship for my Department it is advertised on the JobBridge website and is open to eligible JobBridge applicants from all counties.

In 2013 and to date in 2014 there were seven JobBridge internships in my Department’s Dublin offices in areas such as company law and legal research, intellectual property and copyright report research, records management and entrepreneurship strategy projects.

My Department does not have any offices in County Louth and an examination of the home addresses of those who have been JobBridge internees in my Department does not identify anybody who identified for us an address in County Louth.

Small and Medium Enterprises Supports

Questions (332)

Robert Dowds

Question:

332. Deputy Robert Dowds asked the Minister for Jobs, Enterprise and Innovation if he will support the introduction of a support scheme for small businesses where the Government would employ a person to look after the accounts and payroll for several small new businesses, thus encouraging more entrepreneurs to start their own businesses and help job creation. [3780/14]

Written answers

Minister for Jobs, Enterprise and Innovation

The issue of financial capability is one that has been highlighted by many as a major concern for SMEs, particularly new businesses, in the current economic environment.

The Deputy will be aware that the Government, in an attempt to address these concerns announced in the Budget a specific provision for a subsidised pilot financial training programme for small businesses consisting of two days dedicated offsite training together with expert mentoring support. This measure is being developed by Skillnets Management Works Programme and is designed to improve the financial capability of SMEs. 1,000 SMEs are due to take part in the pilot programme in 2014.

The Deputy’s suggestion that the State introduce a scheme to cover costs of accounts and payroll services is interesting and I would welcome further details on his proposal. However, I have to point out that operational aid is forbidden in Ireland under the EU State Aid regulations and my Department’s initial reaction is that the proposed scheme might well fall under the operational aid category.

Consumers Association of Ireland Funding

Questions (333)

Patrick Nulty

Question:

333. Deputy Patrick Nulty asked the Minister for Jobs, Enterprise and Innovation the reason he has granted €45,000 for 2014 for three projects to the Consumers Association of Ireland when it only spent 58% of its 2013 funding; and if he will make a statement on the matter. [3982/14]

Written answers

Minister for Jobs, Enterprise and Innovation

An application for a grant payment of €45,000 from the Consumers’ Association of Ireland was approved by me in December 2013. The funding will be used by the Consumers’ Association of Ireland for an IT project that entails a system and software upgrade of the IT system to equip it for SEPA compliance and also to integrate the membership and marketing functions to enable staff members to easily and effectively manage interactions with current and future customers by using technology to organise sales, marketing, customer service, PR and social media monitoring and engagement. The Consumers’ Association of Ireland signed a grant agreement in respect of the funding of €45,000 with my Department before the funds were paid out.

On 10 January last, the Consumers’ Association of Ireland informed my Department that they would not spend an approximate sum of €19,846.90 from the grant payment paid to them by my Department in December 2012. This arose from a VAT calculation which did not apply to the tenderer for the work sought by the Association, an underspend on the original estimate of costs for the work and a contribution from the Association towards the cost of the overheads for the work. Until the CAI discharges the final invoice for the contractor (which is expected in late February), the CAI cannot refund any monies to the Department. The project funded in 2013 is a different project to that funded in 2012.

Company Law

Questions (334)

Dara Calleary

Question:

334. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation in view of the levying powers conferred on IAASA by the recent Companies (Miscellaneous Provisions) Act 2013 and the Exchequer-nature of the overall approach, if there is any further legislative impediment to IAASA taking responsibility for the supervision, audit quality and regulation of auditors of public interest entities; the other administrative obstacles which remain to permitting the resourcing of IAASA in this regard; when the IAASA can be expected to begin undertaking this function; and his views on the matter given its critical importance to the much needed enhancement of confidence in statutory audit. [3983/14]

Written answers

Minister for Jobs, Enterprise and Innovation

Article 7 of the Companies (Miscellaneous Provisions) Act 2013, No. 46 of 2013 confers powers on the Irish Auditing and Accounting Supervisory Authority (IAASA) to impose a levy in order to defray the full costs to it of discharging the external quality assurance function with respect to statutory auditors and audit firms auditing Public Interest Entities. The intention is that this will be complemented by further powers and functions in primary and secondary legislation to enable IAASA to carry out the range of tasks and activities associated with the external quality assurance function.

Sanction has been sought for the additional posts associated with conferring these new functions on IAASA, and confirmation of this is awaited from the Department of Public Expenditure and Reform. Such sanction will enable IAASA to embark on the process of recruiting the necessary additional staff.

The conferral on IAASA of additional functions to those of discharging that of external quality assurance as regards the cohort of auditors and audit firms in question does not arise in the present context.

Question No. 335 answered with Question No. 330.

Job Creation Data

Questions (336)

Dara Calleary

Question:

336. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the number of new jobs that were created in data management and analytics during 2013; the number of these jobs that are attributable to actions taken as part of the first disruptive reform in the Action Plan for Jobs; the number of these that are privately funded; and if he will make a statement on the matter. [4182/14]

Written answers

Minister for Jobs, Enterprise and Innovation

Data management and analytics is a key enabler of business across all areas of economic activity, for example, in the food, manufacturing and financial services sectors. The overall ambition of the Big Data disruptive reform is to build on existing strengths to make Ireland a leading country in Europe in the area of Big Data and data analytics. There is no measurement of job creation directly associated with this disruptive reform but rather actions to building capacity and capabilities in this key area to enable future job creation.

During 2013, Insight, an SFI supported research centre for data analytics was launched as was CEADAR, an Enterprise Ireland /IDA funded technology centre in data analytics. The Forfas Employment Survey tracks employment by NACE codes, data management and analytics would mainly fall within the computer services NACE codes below. Together these NACE sectors account for 41% of all new jobs created by IDA client companies in 2013.

Table 1: New Jobs Created in 2013

Sector	2013
Computer consultancy activities	2,000
Computer programming activities	2,215
Other information technology and computer service activities	1,306

The ambition associated with the Big Data disruptive reform will be progressed further during 2014 in the context of the 2014 Action Plan for Jobs. Key dimensions of the disruptive reform will continue in the areas of:

- Skills provision for Big Data and Data Analytics;

- Research and development aligned to industry in the areas of Big Data and Data Analytics;

- Government use of data analytics and steps to make Government data available to support economic and social objectives.

The specific details of steps to be taken in respect of this agenda will be set out in the Action Plan for Jobs 2014.

Labour Market

Questions (337)

Dara Calleary

Question:

337. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the number of additional honours level ICT graduate professionals that entered the Irish labour market in 2013; the number of these that were attracted from outside Ireland; and if he will make a statement on the matter. [4183/14]

Written answers

Minister for Jobs, Enterprise and Innovation

The rapidly evolving ICT 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. The Expert Group on Future Skills Needs (EGFSN) published a report in November 2013 that projects 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.

Having consulted with my colleague, Mr. Ruairi Quinn TD, Minister for Education and Skills, who has responsibility for first tracking graduate destinations for graduates, I understand the following to be the case. While it is not possible to quantify the numbers of graduates entering the labour market from Irish and EEA institutions, the November 2013 EGFSN report, “Addressing Future Demand for High-Level ICT Skills”, sets out forecasts for ICT graduate supply to 2018. The forecasts, which were prepared by the Higher Education Authority, indicate that 3,331 people were expected to graduate from mainstream ICT programmes at level 8 and above during 2013. As a proportion of these graduates would be expected to go on to further study, take up employment abroad or be otherwise unavailable for employment in Ireland, the report estimates that an additional 2,274 level 8+ mainstream graduates would be available for employment in Ireland in 2013. A further 883 people were also expected to graduate from conversion programmes at level 8 and above and be available for employment during 2013.

In tandem with these numbers, commitments made in the Action Plan for Jobs (APJ) 2013 for this Department, have delivered a range of additional measures to streamline and simplify the Employment Permit application process, with shortages in the ICT sector specifically in mind. Almost half (1,463) of new Employment Permits issued during 2013 were for applicants with critical ICT skills, both within and beyond the ICT sector itself, of which 61 were in respect of non-EEA graduates of both Irish and foreign colleges. Potential job openings for ICT graduate professionals was estimated at 5,548 by the EGFSN in 2013 leaving the remainder to be filled from other sources.

The Minister for Education and Skills and I are 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. Under the first ICT Action Plan, doubling of level 8 graduate output is now expected to be achieved by 2015 (3 years ahead of schedule). There has been a 58% increase in the number of students presenting for higher level maths over past 3 years, 4,000 places have been provided on ICT reskilling/conversion courses at level 8 and over.

The latest EGFSN report presents new demand scenarios for high level ICT skills to 2018. The New Plan will bring together actions by industry, education providers and the state sector to meet the challenge of ICT skills shortages. It will be launched shortly. The focus of the new Plan will be on increasing the supply of graduates and skilled professionals with core ICT/electronic engineering qualifications at honours degree level and above in both the short term and medium term.

Retail Sector

Questions (338)

Dara Calleary

Question:

338. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the reason for the delay in delivery of the integrated licensing application system for the retail sector; the amount by which it will reduce the annual cost of regulatory requirements for local convenience stores when introduced; the date on which the system will be rolled out to other sectors of the economy; and if he will make a statement on the matter. [4184/14]

Written answers

Minister for Jobs, Enterprise and Innovation

The Forfás report, “The Review and Audit of Licences”, which assessed 159 licences across key sectors of the economy recommended the introduction of an integrated licensing system. The Government considers this project to be of significant importance and positioned it as one of the Disruptive Reforms in the Action Plan for Jobs 2013. Such an integrated licensing system, which will streamline the licensing application process, is a reformative step in reducing the administrative burdens for business. A key goal of the proposed system is to support the licence application process through the provision of a single portal or website through which businesses will be able to apply for, and renew, a multiplicity of licences. The new licensing system will be developed for the retail sector in the first instance and rolled out to other sectors of the economy thereafter.

The delivery of an integrated licensing application system for business offers real potential to ease the process of starting up a business in Ireland and will significantly reduce the work involved in annual renewals of licences. It will also contribute to maintaining Ireland’s position at the forefront of delivering advanced eGovernment services and using Information Technology to reduce costs for business and improve the delivery of services to business.

The Integrated Licensing Application System should also provide productivity and efficiency gains in the public sector by streamlining the administration of licensing processes and the potential for more integrated inspection and compliance systems in the future and better application of rick-based enforcement.

The latest draft Request for Tender for an outsourced provision of an Integrated Licensing Application System is being examined by the Chief State Solicitor’s Office (CSSO), in conjunction with the Office of the Attorney General. It will also be legally necessary for the Minister for the Environment, Community and Local Government to designate this Department as a body to which the Local Government Management Agency (LGMA) can provide services. This will enable the LGMA to act as the Contracting Authority for the licensing application system. As soon as final sign-off by the CSSO is received, and following the designation of the LGMA, a call for tenders will be issued through the EU Official Journal. It will take a minimum of three months to award a contract. These strict timelines will impact on the delivery date of the building, testing, and delivery of the Integrated Licensing Application System. It is expected that a service provider could be appointed by Quarter 2 of 2014 with delivery of the system in Quarter 3.

It is then proposed that the LGMA would complete a roadmap for the rollout of the Service to other key sectors of the economy by Q4 2014, with rollout to commence in 2015.

Health Care Infrastructure Provision

Questions (339)

Dara Calleary

Question:

339. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the progress that has been made in the promised establishment of a national health innovation hub following the achievements of the Cork demonstrator project; and if he will make a statement on the matter. [4187/14]

Written answers

Minister for Jobs, Enterprise and Innovation

The Action Plan for Jobs 2013 included a commitment to establish a world renowned Health Innovation Hub (HIH) to drive collaboration between the health system and commercial enterprises leading to the development and commercialisation of new healthcare technologies, products, and services, emerging from within the health system and/or enterprise. In order to drive this initiative, a National Project Team (NPT) was established which consists of a multidisciplinary team spanning my Department and the Department of Health, as well as executives from the HSE, Enterprise Ireland, IDA and Science Foundation Ireland, and chaired by Dave Shanahan (formerly Head of Global Life Sciences, IDA Ireland and now the Head of Strategic Health initiatives at Abbvie - he is also is one of the six industry partners appointed by Government to assist with the implementation and monitoring of the Disruptive Reforms).

As a precursor to the establishment of a National HIH, a Demonstrator project was established, based in University College Cork, in order to test the Hub model on a small scale and at a regional level. The Demonstrator project initially brought together six innovative Irish healthcare companies with the health service. The companies were selected on the basis of their potential to deliver efficiencies into the health system and their fit with the broader reform of the health system, as well as the economic impact in terms of company growth including export potential. A self-assessment by the Cork Demonstrator project at the end of 2013 found that there is a demand from SMEs for enhanced clinical engagement with the healthcare system to support their development efforts whether in manufacturing, digital technologies or services. It also concluded that the initiative demonstrated how aligning clinical delivery, academia and the business community can yield a new wave of innovation in health related commerce. Following this positive feedback it was decided to issue a second call for projects to participate in the pilot. This call was announced on 16th December 2013 seeking applications from companies or individuals whose products and innovations have the potential to positively impact the healthcare sector in Ireland.

Significant work has been undertaken to date by the NPT overseeing the Demonstrator project and considering options around the establishment, governance and scope of a National Hub. This work will continue apace in 2014 and next steps to be taken in the establishment of the National HIH will be identified in the Action Plan for Jobs 2014.

Small and Medium Enterprises Supports

Questions (340)

Dara Calleary

Question:

340. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his views on whether the Government action to promote small and medium enterprise financing has been sufficient in 2013; and if he will make a statement on the matter. [4188/14]

Written answers

Minister for Jobs, Enterprise and Innovation

Since coming into office this Government has had a clear focus on assisting SMEs to establish, expand and export, with a view to driving economic recovery and creating jobs across the country. Access to finance is critical for SMEs and requires a range of Government interventions.

At present bank lending is the primary source of finance for SMEs. The Government imposed SME lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Both banks were required to sanction lending, including lending for working capital purposes, of at least €3 billion in 2011, €3.5 billion in 2012 and €4 billion in 2013 for new or increased credit facilities to SMEs. Government has monitored the banks in this regard to ensure these lending targets were met.

In addition the Government has recognised that a range of non-bank financial supports are vital to support SMEs in our economy. The 2013 Action Plan for Jobs brought a greater focus and co-ordination of Government efforts in relation to access to finance for SMEs. A range of initiatives such as improving the financial capability of SMEs and communicating supports available were developed in 2013 and will be rolled out in 2014 with expected positive impacts for SMEs.

My Department has taken the lead on a number of SME funding initiatives. I have introduced two targeted initiatives to support an additional flow of credit into the economy by filling gaps where specific market failures exist – the Credit Guarantee Scheme and the Microenterprise Loan Fund. Both Schemes launched in late 2012 and my Department continued to promote and support these Schemes in 2013. The Credit Guarantee Scheme was reviewed in 2013 and will be improved in 2014 with a view to increasing its take-up and impact. The operation of the Microenterprise Loan Fund Act 2012 will be reviewed in 2014 with a view to increasing its take-up and impact.

In addition to these initiatives, my Department through Enterprise Ireland manages and funds the Seed and Venture Capital Scheme, the Innovation Fund Ireland (IFI) and Development Capital Scheme help Irish companies access funding in the current difficult environment. The National Pension Reserve Fund launched 3 SME funds in 2013 which are beginning to make investments in businesses.

My Department will soon launch the Action Plan for Jobs 2014 which will continue on from the Action Plan for Jobs 2013 committed by Government to support and improved access to finance for SMEs by setting out in detail the actions needed to address difficulties in this arena.

Research and Development Funding

Questions (341)

Dara Calleary

Question:

341. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the number of jobs that were created in 2013 through the establishment of new collaborative research and technology centres promised in the Action Plan for Jobs; the amount of private investment that has been secured; and if he will make a statement on the matter. [4189/14]

Written answers

Minister for Jobs, Enterprise and Innovation

In line with the commitment contained in the Action Plan for Jobs, Science Foundation Ireland (SFI) has in 2013 provided funding support for the establishment of seven new world-leading large-scale SFI Research Centres. These centres consolidate research activities across higher education institutes to create a critical mass of internationally leading researchers in strategic areas which will lay the foundation for effective and productive academic and industrial partnerships. The seven centres have 150 industry partners in place with a commitment by industry of €100 million over the next six years matched with SFI funding of almost €200 million.

The seven centres will directly support approximately 800 highly skilled personnel (senior researchers (PIs), Post Docs, and PhD Students). Through the commercial application of the research in the centres further jobs will be created in partner companies and spin-outs. For example Irish Photonic Integration Centre (IPIC) focuses on new applications in ICT and medical device areas with the target of stimulating the creation of 200 jobs in these key sectors over the next six years and Insight, the Centre for Data Analytics, will position Ireland at the heart of global Data Analytics research and aims to create 300 direct jobs over the next six years.

As part of the Government’s objective to accelerate economic and societal returns form investment in research the Technology Centre programme, a joint initiative of Enterprise Ireland and IDA Ireland, addresses the advanced research needs of industry in Ireland. More than 300 companies, multinational corporations and indigenous companies, are already benefiting from Ireland’s largest industry-led research programme driving innovation and delivering results in the areas of: cloud and learning technologies; manufacturing and materials; energy, food and health; financial services and business processes. Technology centres aim to introduce companies to the research expertise in Higher Education Institutes with the objective of generating innovative technologies. Each centre has an industry steering group which controls the direction of the research performed in the centre, enabling each centre to reach its full potential.

Fourteen technology centres have been fully established to date including two additional centres, in the economically important areas of Data Analytics and Pharmaceutical Manufacturing, which were established in 2013 in line with the Action Plan for Jobs 2013. While initial stage funding for a technology centre in Connected Health was approved during 2013 it is expected that this will be fully established in early 2014. CeADAR (the Centre for Applied Data Analytics Research) has been established to accelerate the development, deployment and adoption of Data Analytics technology and relevant innovations. The Pharmaceutical Manufacturing technology centre was established to support and develop the Irish pharmaceutical industry by improving manufacturing competitiveness and enhancing the research and development mandate and activity of Irish pharmaceutical manufacturing sites and companies. Enterprise Ireland will invest €1 million per annum in each of these centres over the next 5 years. Both of these centres are based around 5 year industry-led research agendas and it is too early for these recently established centres to have leveraged private investment or created employment in companies beyond the 16 research staff currently employed in the centres. It is expected, nevertheless, that these centres will leverage from the companies involved as much as 40% of the State investment as they mature and will also contribute to the employment and turnover growth of participant firms.

Independent analysis commissioned by Enterprise Ireland has found that the seven technology centres that have reached the “half way point” in their funding cycles have helped to create €69 million of turnover to date in member companies and this is expected to rise to €272 million by 2018. These centres have also helped to create159 full time equivalent jobs to date, and this is expected to rise to 371 full time equivalent jobs by 2018.

Trade Data

Questions (342)

Dara Calleary

Question:

342. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if Ireland’s international cost competitiveness improved during 2013; and if he will make a statement on the matter. [4190/14]

Written answers

Minister for Jobs, Enterprise and Innovation

Forfas’s most recent report on Ireland’s cost competitiveness, “Cost of Doing Business 2012”, published in April 2013, indicates that our cost competitiveness has improved markedly over the last number of years.

Between January 2000 and April 2008, Ireland recorded a 22.5% loss in competitiveness, fuelled by an unsustainable consumption and property boom. Since 2008, Ireland has regained some of the competitiveness it had lost.

There have been falls in relative prices in a number of areas. Labour is the most significant cost for most businesses and the latest Eurostat figures show that the labour cost index in Ireland fell by 1.6% in Quarter 3 of 2013, compared with Quarter 3 2012. Over the two year period 2011-2012, there has been a very significant improvement of almost 20% in our unit wage costs relative to the rest of Europe.

Construction costs and rental costs for both office and industrial space have fallen dramatically for new businesses since the collapse of the property bubble. Rental costs for office space, for example, declined by 45% between 2007 and 2011. Other property related costs such as stamp duty have also been reduced.

Similarly, the Forfás report shows that the cost of the majority of business and professional services in Ireland has fallen since 2006.

My Department has identified measures to simplify the administrative burden on businesses to the potential value of over €207 million per annum, by cutting out paperwork, revising rules for small businesses and making better use of online services. Programmes such as Enterprise Ireland’s LEAN Business offering and innovation supports are helping companies to address competitiveness issues and improve productivity. The reform of statutory wage setting mechanisms has also improved competitiveness in a number of sectors.

In terms of Ireland’s overall international competitiveness position, we have seen a significant improvement in recent years. The latest IMD World Competitiveness Yearbook, published in May 2013, shows Ireland improving to 17th position in the rankings, up from 24th in 2011. 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”. However, there is no room for complacency, and policies to improve cost competitiveness are vital if we are to continue to increase employment.

Through the Action Plans for Jobs in 2012 and 2013, the Government has focussed on creating a supportive environment for businesses operating in Ireland. The Action Plans have included a range of concrete measures to address issues which impact on our competitiveness position. 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 reducing costs for business.

Action Plan for Jobs

Questions (343, 346)

Dara Calleary

Question:

343. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if there was an improved availability of skills required for the manufacturing sector in the Irish labour force during 2013; if he has engaged with the Department of Education and Skills to improve foreign language skills; and if he will make a statement on the matter. [4191/14]

Dara Calleary

Question:

346. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the net number of jobs that were created in the manufacturing sector during 2013; and if he will make a statement on the matter. [4197/14]

Written answers

Minister for Jobs, Enterprise and Innovation

I propose to take Questions Nos. 343 and 346 together.

I initiated an analysis of the skills requirements for the manufacturing sector in 2012, and this was published in April last. This report, by the Expert Group on Future Skills Needs/Forfas was developed in tandem with a wider Strategy for the Manufacturing sector up to 2020, launched at the same time.

In relation to skills, a wide range of recommendations on many aspects of skills enhancement were made in that skills report. This included the development of foreign language skills, particularly European language skills. The recommendations are being advanced in conjunction with the Department of Education and Skills and the relevant educational bodies. Key Actions were incorporated into the Action Plan for Jobs 2013 and good progress has already been made in initiating various measures.

In relation to employment in the manufacturing sector, full year statistics for 2013 are not yet available but the latest Central Statistics data shows, that in the 12 months up to end-September 2013, an additional 7,900 workers were employed in that sector, bringing the total to 213,600. When account is taken of indirect jobs, the sector therefore now supports over 427,000 employees.

Exports Data

Questions (344)

Dara Calleary

Question:

344. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the monetary value of additional goods and services domestically sourced by foreign direct investment companies in 2013; and if he will make a statement on the matter. [4194/14]

Written answers

Minister for Jobs, Enterprise and Innovation

The Annual Business Survey of Economic Impact provides a range of indicators on the client base of the enterprise development agencies, including IDA Ireland. The latest year for which data is available is 2012. Figures for 2013 will not be available until the 2013 survey is published later in the year.

The value of goods and services sourced by FDI companies in 2012, the latest year for which figures are available, is set out in the attached tabular statement.

Table showing the value of goods and services sourced by FDI companies for 2012, the latest year for which figures are available

Indicator 2012	€bn
Irish Materials	2.364
Irish Services	10.381

Exports Data

Questions (345)

Dara Calleary

Question:

345. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the amount by which the value of indigenous exports increased during 2013; and if he will make a statement on the matter. [4195/14]

Written answers

Minister for Jobs, Enterprise and Innovation

At the heart of the Action Plan for Jobs is our determination to create a powerful engine of exporting Irish business. That is why we have doubled the number of trade missions, established new supports for exporting companies, protected the Enterprise Ireland capital budget and secured agreement for the recruitment of 20 additional staff in overseas markets despite constrained budgets.

As we know, export growth provides a sustainable route for companies to grow their employment. If these companies win sales overseas, they will drive the growth of jobs here in Ireland. In 2012, Enterprise Ireland clients’ exports exceeded €16.2 billion, an increase from €15.2 billion in 2011. Following on from this strong performance in 2012, Enterprise Ireland forecasts that client exports will reach €17 billion when figures become available for 2013.

The Inter-Agency Annual Survey of Economic Impact is currently compiling data on the level of exports for 2013. Following a review of the data, the export results for Enterprise Ireland clients will be made available and will also be published in Enterprise Ireland’s Annual Report.

In its End of Year Statement published on 13th January 2014, Enterprise Ireland reported that EI supported companies created 18,033 new jobs in 2013. This resulted in a net increase of 5,442 in the number of people employed by Enterprise Ireland supported companies, the highest net gain for Irish companies in the last decade and indicators suggest that this was primarily due to the strong export performance of Enterprise Ireland client companies.