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Wednesday, 29 Jan 2014

Written Answers Nos. 70 -76

EU Solidarity Fund

Questions (70)

Tom Fleming

Question:

70. Deputy Tom Fleming asked the Minister for Public Expenditure and Reform if a submission has been made to the EU for solidarity funds and any other EU disaster funds for remedial work to the billion of euro devastation to our coastal regions and private property damage, in the recent storms; the status of this submission; and if he will make a statement on the matter. [4562/14]

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Written answers

On 16 January 2014, my colleague, the Minister for the Environment, Community and Local Government, reported to the House on the recent severe storm damage. In that context, he advised the House that the Government is exploring all possible sources of funding to meet the costs which have arisen from the storm damage, including a possible application under the EU Solidarity Fund. He said that any Government decision on an application to the fund will be made once the full cost of damage has been assessed. Minister Hogan is due to report back to Government next month.

Building Regulations Application

Questions (71)

Kevin Humphreys

Question:

71. Deputy Kevin Humphreys asked the Minister for Jobs, Enterprise and Innovation in respect of capital building projects under the remit of his Department and the building programmes planned for 2014, if he will outline the impact the new building control regulations 2013, that come into effect on 1 March, will have on the costs of each specific project; if he will list the projects under way; the extra costs that will be incurred on each project due to increased professional fees and increased supervision; and if he will make a statement on the matter. [4369/14]

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Written answers

In my Department the following Programme for Research in Third Level Institutions (PRTLI) capital building projects are underway:

Project

Estimated Exchequer capital building cost (€)

Status of project at 30/09/2013 (see note below)

Dublin Institute of Technology (DIT) - Environmental Health Sciences Institute (EHSI)

8.29m

Planning stage

Dublin City University (DCU) Nano-BioAnalytical Research Facility (NRF-TRH)

9.29m

Under construction

National University of Ireland Maynooth (NUIM) - ICT Infrastructure

4.27m

Under construction

National University of Ireland Maynooth (NUIM) - Innovation Value Institute (IVI) – Phase II

1.12m

Under construction

University College Cork (UCC) - Environmental Research Institute at the Maritime & Energy Cluster, Ireland (ERI @ MeRC)

7.5m

At tender stage

UCC – Food & Health

0.45m (refurbishment)

At tender stage

University College Dublin (UCD) – Science Centre

34.3m

3 buildings; 2 complete; 1 at planning stage

University of Limerick (UL - National Centre for Applied Materials Research (NCAMR)

8.2m

Under construction

Note: Quarterly Financial Reports (QFRs) to end December 2013 will not be available until end February 2014).

Enterprise Ireland is expecting building works to take place works in two locations in 2014; the National University of Ireland Maynoooth (NUIM) and the DIT Grangegorman Campus. The building works being undertaken at NUIM includes an Enterprise Ireland Incubator Unit with a budgeted cost of €1.25 million.

It is not possible for me to comment on the impacts of the Building Control regulations 2013 which have yet to take effect or to give detail of extra costs, if any, that might be incurred on projects as a result of the legislation. It should be noted, however, that Exchequer liability on all PRTLI capital projects is limited to the formal approved amounts. Any subsequent costs additional to those approved are borne by the Higher Education Institution (HEI) to whom the funding has been awarded. Likewise, in the case of building works relating to Enterprise Ireland, any changes in Building Control regulations and any associated cost will be borne by the college with no increase in award amount being provided by Enterprise Ireland.

In so far as IDA Ireland is concerned, consultant appointments are awarded based on a competitive tender on a fixed fee basis which include in the scope of service a requirement to address all and any regulatory requirements. At present IDA Ireland has two capital projects for Athlone and Waterford which are in the final phase of tender and it is expected that commencement notices will issue in advance of 1 March 1 2014.

Work Permits Eligibility

Questions (72)

Michael Creed

Question:

72. Deputy Michael Creed asked the Minister for Jobs, Enterprise and Innovation further to Parliamentary Question No. 322 of 21 January 2014, if he envisages the number of work permit renewals to non-EEA nationals in the meat processing sector will drop in the coming years in view of the training programme in this area being rolled out in 2014; and if he will make a statement on the matter. [4390/14]

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Written answers

Since 2004, Irish labour market policy has been to ensure that general labour and skills needs are met from within the workforce of the European Union. Policy in relation to applications for employment permits continues to focus on facilitating the recruitment from outside the European Economic Area of highly skilled personnel, where the requisite skills cannot be met by normal recruitment or by training.

Ireland’s employment permit system is designed to react to changing labour market conditions and the criteria and eligibility for employment permits are reviewed accordingly and take into account initiatives underway in the education sector. Employment permit renewals are normally granted subject to the terms and conditions of the original employment permit being met, including salary level and the condition that the employee continues to work for the same employer.

As I indicated in my answer of 21 January, there is a cohort of permit holders already working and integrated in the State that is eligible to apply for renewal of the permit when it falls due. It is not possible to predict how many of these will seek to renew their permits but I am confident that the numbers, per my answer on 21 January, will remain small. The Government’s aim in addressing the skills gap in the meat sector through the training programme being developed by my colleague, the Minister for Education and Skills under the auspices of Skillnets, is to ensure that there is an adequate supply of skilled Irish and EEA nationals available to employers in the Irish meat sector, so as to obviate the need for new permits to be issued in this sector in future.

Prompt Payments

Questions (73)

Terence Flanagan

Question:

73. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation the position regarding small and medium enterprise credit (details supplied); and if he will make a statement on the matter. [4393/14]

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Written answers

Prompt Payments for goods and services rendered is critical to the effective working of any economy and is an issue on which this Government places great emphasis. In an effort to help ease cash flow difficulties for Irish small businesses operating under the current economic environment, while at the same time, setting an example for businesses in the private sector to improve their payment record by paying each other more promptly, Ireland has introduced, on a voluntary basis:

A 15 days prompt payment requirement for all central Government Departments to pay their business suppliers within 15 days of receipt of a valid invoice. This arrangement applies to all valid invoices received on or after 15 June 2009;

A similar arrangement has now being extended beyond central Government Departments to our State Agency Sector to include the Health Service Executive, the Local Authorities, State Agencies, and all other Public Sector Bodies, (with the exception of the Commercial Semi-State bodies). These new arrangements apply in respect of valid invoices received on or after 01 July 2011.

The Late Payment Directive that established EU law in the area of prompt payments was originally introduced in 2000 and was recast in 2011 to modernise the law in this area. The Recast Directive (2011/7/EU) came into effect across the EU on 16 March 2013. The issue of prompt payment is now covered in Irish law by the European Communities (Late Payment in Commercial Transactions) Regulations 2012 (S.I. No. 580 of 2012).

This legislation will act as a deterrent to late payment and as a driver for payment on time by establishing a clear expectation in law that payment will be made according to agreed terms. It lays down the specific deadlines for the payment of invoices and establishes a right to compensation in the event of late payment in all commercial transactions, whether they relate to transactions between private or public undertakings, or between undertakings and public authorities.

The Regulations specifically provide that Public Authorities must pay for goods and services that they procure within 30 days. Payment can be extended up to 60 days only it if is “expressly agreed” and justified in light of the nature or feature of the contract.

For business to business transactions, where no contract exists, the payment period is set at 30 days. Where a contract stipulating the payment period does exist, normally such a period should not exceed 60 calendar days unless both parties agree otherwise and providing it is not “grossly unfair” to the creditor. For small businesses in particular, this contractual freedom to agree payments terms is vital as it provides protection when negotiating payments terms with larger companies.

Any harmonisation of payment periods for business to business transactions could lead to a loss of flexibility and contractual freedom by removing the ability of companies, especially SMEs, to compete with payment periods offered to customers. This in turn could put more pressure on other aspects of contract negotiation where larger companies can still exercise significant influence over small companies.

Industrial Disputes

Questions (74)

Andrew Doyle

Question:

74. Deputy Andrew Doyle asked the Minister for Jobs, Enterprise and Innovation if there is any relevant national collective agreement in place which is a legally binding collective agreement between the Technical Engineering and Electrical Union, TEEU, and any other party including local authorities and the health service for public works contracts; and if he will make a statement on the matter. [4421/14]

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Written answers

In the judgement delivered on 9 May 2013 in McGowan and others v The Labour Court, Ireland and the Attorney General, the Supreme Court held that Part III of the Industrial Relations Act 1946 was invalid having regard to Article 15.2.1 of the Constitution. That Article provides, in effect, that the exclusive power to make laws is vested in the Oireachtas. The Supreme Court took the view that Registered Employment Agreements (REAs) are instruments having the status of laws made by private individuals. While the Constitution allows for the limited delegation of law making functions, the provisions of the 1946 Act went beyond what is permissible under the Constitution.

The effect of this decision is to invalidate the registration of employment agreements previously registered under Part III of the 1946 Act, including the REA for the Electrical Contracting Sector, to which the TEEU was a party. In consequence the Labour Court no longer has jurisdiction to enforce, interpret or otherwise apply these agreements. As a result, all such agreements no longer have any application beyond the subscribing parties and are not enforceable in law. However, existing contractual rights of workers in sectors previously covered by REAs are unaffected by the ruling. Contractual rights can be altered only by agreement between the parties involved.

The Supreme Court judgment is clearly an important issue for many employers and their employees, particularly in relation to rates of pay and tendering for contracts. Having considered legal advice from the Attorney General on the implications of the ruling, I intend to bring forward legislation to address the ruling as soon as possible. Such legislation will be fully informed by the Court’s judgment and will provide for a revised framework to deal with those matters.

Third Level Fees

Questions (75)

Arthur Spring

Question:

75. Deputy Arthur Spring asked the Minister for Jobs, Enterprise and Innovation if he considers it necessary that an exemption from international student fees should be given to children of an Irish person working for an Enterprise Ireland assisted company who has been required to live outside the EU for more than three of the past five years in an attempt to grow the company. [4529/14]

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Written answers

Enterprise Ireland supports companies to grow and scale and achieve international sales. This often involves senior employees spending a number of years in overseas market outside of the EU. Developing markets outside of the EU is core to the Strategy on Trade, Tourism and Investment. Enterprise Ireland would encourage policy initiatives that would support companies to encourage high performing business development executives to lead their company’s initiatives overseas. However, consideration would have to be given to the legalities of any policy that would be directed exclusively at the employees or directors of Enterprise Ireland clients.

Exceptional Needs Payment Applications

Questions (76)

Bernard Durkan

Question:

76. Deputy Bernard J. Durkan asked the Minister for Social Protection further to Parliamentary Question No. 113 of 22 January 2014, if an additional exceptional needs payment will issue in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [4343/14]

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Written answers

According to the records of this Department there are currently no applications pending for an exceptional needs payment in the case of the person concerned. It is open to the person concerned to make such an application to her local Community Welfare Service.

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