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Thursday, 13 Mar 2014

Written Answers Nos. 95-106

EU Funding

Questions (95)

Bernard Durkan

Question:

95. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which grant aid from the EU Commission under the heading of innovation, science and technology continues to be made available to small and medium-sized enterprises in both the manufacting and services sectors throughout the country; and if he will make a statement on the matter. [12693/14]

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Written answers

Horizon 2020, with a budget of €79 billion and covering the next seven years, is the biggest ever European Research and Innovation Programme and the largest worldwide. Horizon 2020 offers huge opportunities to researchers, research organisations and industry to engage in cutting edge research, and power Europe towards economic recovery

The structure and objectives of Horizon 2020 are very much in line with our national objectives: raising the level of excellence in our science base, making Ireland a more attractive location to invest in research and innovation, enhancing the innovative capacity of industry and addressing major societal challenges by bringing together resources and knowledge across different fields, technologies and disciplines, including social sciences and the humanities.

Horizon 2020 has been designed to be more industry friendly. The "Industrial Leadership" pillar of the programme will support investments in excellent research and innovation in key enabling technologies and other industrial technologies, facilitate access to risk finance for innovative companies and projects, and provide support for innovation in micro, small and medium-sized enterprises. Other areas of the Programme also provide opportunities for small and medium-sized enterprises to participate and avail of EU funding, and it should be remembered that Ireland took a strong role in getting the agreement of the European Council, Commission and the Parliament to an increased target participation rate for SME’s under Horizon 2020 from 15% to 20%.

Under Horizon 2020’s predecessor, FP7, between January 2007 to July 2013, the latest date for which official figures are available, over 2000 applications from Irish-based companies took part in FP7 proposals requesting European funding. From these submissions, and through Enterprise Ireland’s facilitation and financial support, over 500 applications have been successful with awards amounting to €149 million, with over three quarters of this funding going to SME’s.

Horizon 2020 offers even more valuable opportunities to companies based in Ireland to participate in high quality research collaborations with their European counterparts, with the support of EU funding, and the Government has set an ambitious but achievable target of €1.25 Billion in funding from this programme - over double the return from the previous programme. I have no doubt that, building on the experience of our participation in FP7, Irish small and medium sized enterprise, in both the manufacturing and services sectors, will continue to maximize the financial benefits from EU Commission programmes supporting research and innovation.

Job Creation

Questions (96)

Bernard Durkan

Question:

96. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the degree to which his Department continues to monitor the issues likely to encourage new job creation and maintain existing employment throughout the economy in all regions throughout the country with particular reference to the availability of relevant, infrastructural services; the extent to which such infrastructure continues to be readily available here compared with overseas jurisdictions; and if he will make a statement on the matter. [12694/14]

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Written answers

The Government recognises that the availability of competitively priced world class infrastructure (energy, telecoms, transport, waste and water) and related services are critical to supporting enterprise development, and in turn, job creation. My Department and its agencies monitor the issues relevant to job creation and retention – including the infrastructural needs of enterprises - through regular engagement with the enterprise sector.

I have also met with a number of key stakeholders recently to discuss a range of issues on the supply of vital services for enterprise, including property, water, electricity and telecoms. The National Competitiveness Council also considers issues relating to the availability of infrastructure and makes recommendations in its annual Competitiveness Challenge Report, which I present to Government before publication. Ireland has made significant investment in infrastructure in recent years and has improved its ranking in terms of the quality of its overall infrastructure. The World Economic Forum's latest Global Competitiveness Report ranked Ireland 26th out of 148 countries for the availability of infrastructure.

The Action Plan for Jobs process, which was introduced in 2012, aims to create a supportive operating environment in order to maintain existing jobs and grow employment across all sectors and regions. Since the Plan's introduction, the Government has implemented over 500 actions to support job creation. A number of these actions have addressed infrastructure issues. This year's Action Plan for Jobs was launched on 27 February and contains a number of further commitments on infrastructure investment to underpin economic growth. IDA Ireland will also commence building new advanced manufacturing facilities in Athlone and Waterford and office space in Letterkenny this year.

Overall responsibility for the provision of infrastructure falls under the remit of a number of other Ministers. However, issues related to the availability of necessary infrastructure throughout the country are regularly discussed at meetings of both the Cabinet Committee on Economic Recovery and Jobs, and the Cabinet Committee on Economic Infrastructure, which I attend.

While Ireland's economic infrastructure will continue to be developed, our existing infrastructure is already of sufficiently high quality to attract world class Foreign Direct Investment here. Ireland is home to 8 of the top 10 US ICT companies, 8 of the top 10 Pharmaceutical companies, and 15 of the top 20 companies in medical devices. Moreover, 50% of the world's leading financial services firms and 5 leading internet companies are based here, proving that Ireland compares very favourably to overseas jurisdictions for infrastructural services.

Question No. 97 answered with Question No. 94.

Small and Medium Enterprises Supports

Questions (98)

Bernard Durkan

Question:

98. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which particular or specific cost issues have been brought to the attention of his Department by small and medium-sized enterprises; if particular action may or is being taken to address these issues with benefit to the economy in early date; and if he will make a statement on the matter. [12696/14]

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Written answers

My regular engagement with small and medium enterprises around the country, and with their representative bodies, provides a forum to discuss their concerns on a wide range of issues, including those related to costs such as local authority charges, utility costs (including energy), rents, and labour costs.

The Forfás report “Costs of Doing Business in Ireland 2012” published in April 2013, showed that Irish cost competitiveness has improved markedly over the last number of years. It also indicates that business costs in Ireland have reduced significantly in recent years, with overall price levels in the economy falling back to levels last experienced in 2002. The improvement in business cost competitiveness has been driven by significant reductions in property related costs (in terms of purchase and rent levels) and falling prices across a range of professional and business services. There have also been relative improvements in labour costs in Ireland, which fell on average by 0.9% per annum in the period 2008-2011 while labour costs increased in the euro area by 4.6% per annum on average in the same period. These reductions benefit SMEs as well as larger companies.

Government actions to support small and medium sized enterprises are set out in the Action Plan for Jobs. Since the Action Plan process was launched in 2012, a significant number of initiatives have been introduced to support the SME sector. These include:

- tackling the issue of late payments by transposing the EU Late Payment Directive into Irish legislation;

- the introduction of new financing models for SMEs, such as the Microfinance Loan Fund for start-ups and the Partial Credit Guarantee scheme;

- Corporation Tax exemption to 2014 for companies that commenced, or will commence, trading in 2012, 2013 and 2014;

- the introduction of the JobsPlus scheme that provides a subsidy to employers who recruit a person who has been unemployed for 12 months or more;

- the reform of support structures for SMEs through the establishment of the new Local Enterprise Offices, which is well advanced within my own Department;

- the provision of advice and training by the Sustainable Energy Authority of Ireland to businesses that are looking to reduce their energy costs; and

- reductions in the administrative burden on business. To date, my own Department has achieved a 25% reduction in its administrative burden on business, amounting to a potential annual saving for business of over €207 million.

Budget 2014 also contained a number of additional initiatives to support SMEs. These include an increase in the cash receipts threshold for VAT, which will improve cash-flow for businesses, and a new subsidised Financial Training programme for SMEs. We will continue to take actions to support SMEs, including by tackling costs, through the 2014 Action Plan for Jobs.

Job Creation

Questions (99, 101)

Bernard Durkan

Question:

99. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the degree to which his Department continues to focus on job creation likely to be of benefit to the long-term or youth unemployed; and if he will make a statement on the matter. [12697/14]

View answer

Bernard Durkan

Question:

101. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his Department, in the course of job creation in County Kildare, continues to focus on the needs of the long-term and youth unemployed; and if he will make a statement on the matter. [12699/14]

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Written answers

I propose to take Questions Nos. 99 and 101 together.

The latest Quarterly National Household Survey (QNHS) shows that, in spite of the creation of an additional 61,000 jobs overall in the economy in Quarter 4 2013, the number of people under 25 years of age in employment decreased by 1,600 year-on-year. We have, nonetheless, seen a marked improvement from the 14,500 jobs lost in this age cohort in Quarter 4 2011, and the 10,600 jobs lost in that cohort in Quarter 4 2012. The QNHS figures also show that in the year to Quarter 4 2013, the number of people who were long-term unemployed decreased by 20,900. This is reflected in a drop in the long term unemployment rate from 8.2% to 7.2% year-on-year. We need to continue to build on this progress and ensure that we get as many people as possible back to work across all age groups and all regions.

Specifically in relation to County Kildare, in 2013 IDA Ireland created 309 jobs, Enterprise Ireland created 534 jobs and over 300 full-time and part-time jobs were created or sustained through supports provided by Kildare County Enterprise Board.

Clearly, the best way to address the needs of the long-term and youth unemployed is to continue our efforts to support job creation and help those who are unemployed to get back to work. The Government continues to work on these objectives through the combined efforts of the Action Plan for Jobs and Pathways to Work. There are a number of actions in both strategies which are targeted at, or amenable to, younger people and the long term unemployed. These include the JobBridge programme, the Youth Guarantee, the Momentum and Springboard training courses, and the ICT Action Plan. These initiatives are collectively delivered by the Department of Social Protection and the Department of Education and Skills.

The Government is taking steps to increase the number of places and make other enhancements to those schemes for younger people, where possible. For instance, the 2014 Action Plan for Jobs includes a commitment to ring-fence 2,000 places for people under 25 years of age under the new iteration of the Momentum programme this year. The JobsPlus Initiative, which was launched last year, also provides a financial incentive to employers to recruit people who have been unemployed for 12 months or more.

For my own Department’s part, we are putting a particular focus this year on supporting entrepreneurship, and will increase the range of supports available to entrepreneurs, including young entrepreneurs. The Local Enterprise Offices which will be established next month and rolled out during the year will be the local hub for enterprise support, delivering a comprehensive ‘first stop shop’ service to local entrepreneurs and businesses.

Question No. 100 answered with Question No. 94.
Question No. 101 answered with Question No. 99.

Work Permit Criteria

Questions (102)

Bernard Durkan

Question:

102. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation in respect of people employed here on a long-term basis on foot of work permits, in some of whose cases gaps have appeared in respect of continuity which was not the responsibility of the employee; if he is satisfied that adequate steps are being taken to ensure such people have their status updated or upgraded as required; and if he will make a statement on the matter. [12701/14]

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Written answers

In order to work in Ireland a non-EEA National (unless exempted ) must hold a valid Employment Permit and my Department's Employment Permits Section administers the Employment Permits system. The onus to maintain a current immigration status rests on the non-EEA national that may be the subject of a work permit application. An individual’s immigration status has a major bearing on the consideration of all classes of employment permit applications, but consideration of issues relating to the immigration status of individuals falls to the Irish Naturalisation and Immigration Services (INIS) under the Minister for Justice and Equality. My Department has no role in that process.

If an individual holds consecutive valid employment permits and maintains his or her immigration status over a five year period he or she may apply to INIS for an immigration Stamp 4 that allows him or her to work in this country without a permit. I understand from the Minister for Justice and Equality that interruptions to an individual’s permit history or immigration status can adversely affect consideration by the Minister for Justice of an individual’s application for such a stamp.

I am aware of a small number of historical cases - going back ten years – whereby an individual’s immigration status expired whilst a permit application was being processed. I understand that, in these historical cases, the late submission of renewal applications by the individuals’ employer was a contributory factor in the delay experienced. I am satisfied that, in the intervening ten years, adequate steps have been taken to ensure that the risk of such a situation arising again has been minimised. For example, changes introduced in the 2006 Employment Permits Act, whereby the employment permit now issues directly to the employee (not, as was previously the case, to the employer), give the employee more control over the process and he or she is fully aware of the duration and expiry of the permit itself.

Nonetheless, the onus for maintaining his/her immigration status up to date rests on the individual in all cases. There is an extensive range of information available on the websites of both INIS and my Department clearly advising applicants that this is the case. In addition, my Department’s website and all application forms inform the applicant that renewal application forms must be submitted within a reasonable period before the permit expiry date in order to ensure that an employee’s permit history remains unbroken.

In the past, processing times could run to months. I am satisfied that, due to ongoing improvements and efficiencies introduced in the Employment Permits Section of my Department, such lengthy processing times are a thing of the past. I am pleased to inform the Deputy that current processing times run to weeks not months, with the average wait time in February 2014 being 14 business days.

I would also assure the Deputy that there is a close and ongoing working relationship between the Employment Permits Section of my Department and INIS, and both Sections work together to resolve issues pertaining to residency and employment permits where they arise. In addition to the changes already introduced, the Employment Permits Bill (2014), which I intend to publish shortly and introduce in the Houses in this session, will provide for an employment permit for individuals who had been in possession of an employment permit, but through no fault of their own, have fallen out of the system.

Thus I am satisfied that the steps outlined above that have been taken by my Department in recent years – both legislatively and administratively – and the new permit type I am introducing in the upcoming Bill, together with the ongoing close working relationship we have with INIS, address the concerns expressed by the Deputy.

Mortgage Repayments

Questions (103)

Michael Healy-Rae

Question:

103. Deputy Michael Healy-Rae asked the Minister for Social Protection when the current mortgage interest supplement system finishes, the measures she proposes to introduce to ensure that such a system will be continued to enable, struggling families to continue to meet their mortgage repayments; and if she will make a statement on the matter. [12593/14]

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Written answers

The original purpose of the mortgage interest supplement scheme was to provide short-term support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only. There are currently approximately 8,900 people in receipt of mortgage interest supplement for which the Government has provided €17.9 million for in 2014.

The Government wants to provide an environment where mortgage holders can pay for and stay in their home but, where people have a genuine difficulty in meeting their financial commitments, they will have a framework to address and resolve that difficulty in an appropriate and fair way having regard to the particular circumstances of the case. The Government’s strategy to assist those in mortgage difficulty is built around the following measures, as recommended in the 2011 Interdepartmental Mortgage Arrears Working Group (Keane Group), in four main distinct areas:

- Lenders providing sustainable and durable resolution options to their borrowers.

- A social housing response (Mortgage to Rent).

- Comprehensive advice to borrowers.

- Personal Insolvency Reform.

In the context of the overall strategy, the continued payment of mortgage interest supplement does little to assist recipients in improving the long term difficulty in addressing their mortgage problem and provides little incentive for the lender to provide sustainable solutions. The Keane Group’s over-arching theme was that the mortgage interest supplement scheme is not an appropriate long term support and should become a time bound payment with an appropriate exit strategy to be formulated for the recipient.

As part of the fiscal adjustment required for Budget 2014, provision was made for the discontinuation of entitlement to mortgage interest supplement for all new applicants from 1 January 2014. Existing customers are not affected by this measure and may retain entitlement to the scheme over a four year period, up to 1 January 2018. It is expected that during this four year period, existing customers would no longer require this support as sustainable solutions are put in place dealing with their mortgage difficulties including securing employment and exit strategies sponsored by the Department of Environment, Community and Local Government, namely the Mortgage to Rent scheme.

Under the Code of Conduct on Mortgage Arrears, lenders are obliged to put in place Arrears Support Units to deal with borrowers under the Mortgage Arrears Resolution Process (MARP). The most appropriate way in which customers experiencing short term mortgage difficulties is through engagement with their lender under this process. Lenders must explore all options for repayment arrangements in order to determine which options are viable for each particular case. These options include interest only arrangements and deferring payment of all or part of the instalment repayment for a period.

I am satisfied that the range of supports implemented by this Government, including the range of information and guidance resources available, are appropriate in assisting those facing mortgage difficulties following the discontinuance of the mortgage interest supplement scheme.

Carer's Allowance Appeals

Questions (104)

Seán Kenny

Question:

104. Deputy Seán Kenny asked the Minister for Social Protection when the appeal against the disallowance of carer’s allowance will be decided in respect of a person (details supplied) in Dublin 13. [12466/14]

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Written answers

A child under 16 years is deemed medically eligible for carer's allowance when domiciliary care allowance is in payment for that child. Once the child reaches 16 years of age and entitlement to domiciliary care allowance ceases, a review of the continuing entitlement to carer’s allowance is undertaken as medical eligibility is no longer automatically satisfied and must be confirmed. This resulted in a review in this case. Following that review Carer’s allowance was stopped from 11 December 2013 in respect of the person in question as it was decided that the medical criteria were no longer satisfied.

The person in question appealed the decision to stop the allowance and submitted additional medical evidence in support of their application. This supplementary information was forwarded to the Department’s medical assessor for consideration. Upon review, the caree was deemed eligible on medical grounds. The deciding officer awarded the application on 12 March 2014 and the first payment is due to issue to the Post Office on 20 March 2014. Arrears of allowance due from 12 December 2013 to 12 March 2014 have issued to the Post Office.

Rent Supplement Scheme Payments

Questions (105)

Peadar Tóibín

Question:

105. Deputy Peadar Tóibín asked the Minister for Social Protection the position regarding assistance in respect of a family (details supplied). [12471/14]

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Written answers

The family concerned are currently in receipt of rent supplement of €128.80 per week. The Department understands that they have been given notice to quit their current accommodation as the owner wishes to occupy same. The Department also understands that the local authority in Meath has offered the family alternative accommodation but that it has been declined.

The purpose of the rent supplement scheme is to provide short-term support to eligible people living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. There are currently approximately 80,000 rent supplement recipients for which the Government has provided over €344 million for 2014.

Revised rent limits under the rent supplement scheme have been implemented with effect from Monday 17 June 2013 and will be in place until 31 December 2014. The new rent limits were determined following an extensive review of the private rental market based on the most up-to-date data available. The emphasis of the rent limit review is to ensure that maximum value for money for tenants and the taxpayer is achieved whilst at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation. It is also essential that State support for rents do not distort the market in way that could increase rent prices for others including low paid workers and students.

Analysis shows that there are properties available in county Meath within the maximum rent limits for rent supplement recipients. Latest figures show that there are approximately 1,950 rent supplement recipients in Meath, indicating that it is possible to secure accommodation within the rent limits.

Insolvency Payments Scheme Payments

Questions (106)

John McGuinness

Question:

106. Deputy John McGuinness asked the Minister for Social Protection further to Parliamentary Question No. 320 of 19 November 2013 regarding unfair dismissal in respect of former employees of a nursing home (details supplied) in County Kilkenny, if she will confirm the progress that has been in the context of her Department paying these claims; and if she will make a statement on the matter. [12499/14]

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Written answers

The purpose of the insolvency payments scheme, which operates under the Protection of Employees (Employers’ Insolvency) Act, 1984, which, in turn, derives from EU Council Directive 987/80, is to protect certain outstanding pay-related entitlements due to employees in the event of the insolvency of their employer. These entitlements include wages, holiday pay, sick pay, payment in lieu of minimum notice due under the Minimum Notice & Terms of Employment Acts, 1973-2001, and certain pension contributions. Various other statutory awards made by the Employment Appeals Tribunal, Rights Commissioners, etc., are also covered by the Scheme. Payments under the scheme are made from the Social Insurance Fund and the Minister becomes a preferential creditor against the assets of an employer in respect of most amounts paid under the scheme.

Where a person’s former employer was a limited company, the company should be in liquidation or receivership in order for the person to be eligible to claim under the insolvency payments scheme. In such circumstances, the liquidator or receiver becomes the relevant officer for submitting claims under the scheme as he or she has access to the company records and can certify that the amounts claimed are in order.

I am aware that there are some cases where employers have ceased trading without engaging in a formal winding-up process and that in some such cases, such as the one to which the Deputy refers, their former employees may have monies owed to them. Such employees are not eligible for payments under the Insolvency payment scheme. I have asked the Department to review the position to establish what, if anything, can be done to progress payments to individuals in these situations.

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