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Thursday, 13 Mar 2014

Written Answers Nos. 1 - 34

Job Creation Data

Questions (7, 33)

Joan Collins

Question:

7. Deputy Joan Collins asked the Minister for Jobs, Enterprise and Innovation if he will provide a breakdown of the 61,000 jobs the Government says were created in 2013; the categories of the economy in which they were created; the number that are zero-hour contracts, that is, less than 19.5 hours per week; and the number that are full-time. [12172/14]

View answer

Clare Daly

Question:

33. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation if he will provide a breakdown of the 61,000 extra jobs which were supposedly created last year; the number that were full-time positions; and in which sectors. [12140/14]

View answer

Written answers

I propose to take Questions Nos. 7 and 33 together.

The Quarterly National Household Survey (QNHS) for the Fourth Quarter of 2013 was published by the Central Statistics Office on 27 February. The Survey showed that 61,000 extra jobs had been created in the economy year-on-year compared to Quarter 4 of 2012. This was the fifth Quarter in succession where employment has grown on an annual basis. Employment increased in ten of the fourteen economic sectors classified by the CSO. The largest rates of increase were in

- Agriculture, Forestry and Fishing, increased by 26,800 jobs;

- Accommodation and Food Services, saw an increase of 17,400 jobs;

- Professional, Scientific and Technical Activities increased by 13, 000 jobs;

- Industry employment increased by 6,400;

- Health and Social work increased by 3,900.

Increases were also recorded in other sectors, including Education, +1,600, Administration + 1,300 Transport and Constructon.

I am advised that the CSO does not currently collect data on zero-hour contracts. However, the QNHS figures show that full-time employment grew by 54,300 in Quarter 4 of 2013; while part-time employment increased by 6,600, so 90% of net new jobs are in full time employment.

The enterprise sector is now creating employment faster than any other State in the EU or the OECD. I am encouraged by the fact that most of the jobs that are being created are full-time and many are in sectors which we have targeted in the Action Plan for Jobs. However, we are not being complacent. There are sectors, particularly Construction, Retail and related sectors, that were hit particularly badly by the economic downturn and which have not yet recovered in terms of employment, even since 2011. We must do more to help these sectors to re-build, and the 2014 Action Plan for Jobs, which was published at the end of February, places a focus on supporting these sectors of the domestic economy.

Questions Nos. 8 and 9 answered orally.

Credit Guarantee Scheme Application Numbers

Questions (10)

Derek Nolan

Question:

10. Deputy Derek Nolan asked the Minister for Jobs, Enterprise and Innovation if he will outline the draw-down of funds from the credit guarantee scheme and micro-enterprise fund, particularly by businesses on the western seaboard; and if he will make a statement on the matter. [8248/14]

View answer

Written answers

As of 31 December 2013, the SME Credit Guarantee Scheme had seventy-two live facilities resulting in over €9.7m being sanctioned through the Scheme by the participating lenders resulting in 409 new jobs being created and 236 jobs being maintained. Data is collated on a regional basis, and the following are the year-end totals for relevant regions. The South West region (Cork and Kerry) had 13 live facilities with over €1.428 million in sanctioned lending, the West region (Galway and Mayo) had 8 live facilities with €586,100 in sanctioned lending, the Mid-West region (Limerick, Clare and North Tipperary) had 7 live facilities with €400,000 in sanctioned lending, and the North West (Donegal, Sligo and Leitrim) has 1 live facility with €100,000 in sanctioned lending.

With regard to Microfinance Ireland (MFI) as of 31 December 2013 MFI has approved 139 applications to the value of €2.16m and has supported 313 jobs. Data is collected at county level and the following is the number of loans approved per county on the western seaboard to year-end: Cork – 10, Kerry – 7, Galway – 7, Mayo – 8, Sligo – 7, Clare – 3 and Donegal – 3. The average loan size throughout Ireland is €15,500.

My Department publishes quarterly reports on the progress of the SME Credit Guarantee Scheme and Microfinance Ireland on the Department’s website www.enterprise.gov.ie. The 4th quarter progress report for MFI showing detailed breakdown of lending in each county and other analyses for year ending 31 December 2013 is available on my Department’s website. The 4th quarter CGS progress report for the period to December 2013 will be published shortly. My Department is pursuing a strategy to promote these schemes more widely with SMEs, with the Banks at the point of credit refusal through the LEO network and using varying media and promotional activities.

Questions Nos. 11 to 13, inclusive, answered orally.

Employment Rights

Questions (14, 34)

Kevin Humphreys

Question:

14. Deputy Kevin Humphreys asked the Minister for Jobs, Enterprise and Innovation his plans to introduce measures to ensure staff do not have to pay rental fees to their employers for the provision of uniforms required for a position in the Irish labour market; his plans to legislate to regulate zero hour contracts; and if he will make a statement on the matter. [12010/14]

View answer

Kevin Humphreys

Question:

34. Deputy Kevin Humphreys asked the Minister for Jobs, Enterprise and Innovation his plans to prohibit the charging of staff for the purchase and provision of uniforms that they require for their job; his plans to ensure the protection of staff in low paid positions in the Irish economy; and if he will make a statement on the matter. [12009/14]

View answer

Written answers

I propose to take Questions Nos. 14 and 34 together.

The Payment of Wages Act 1991 establishes a range of rights for all employees, one of which is protection against unlawful deductions from wages. Subject to certain conditions set out in that Act, an employer may make a deduction from wages in respect of the cost of goods or services which are necessary to the employment, including, for example, the provision of uniforms. The Act provides, in particular, that any deduction must be required or authorised to be made by virtue of a term of the contract of employment, and that the employee be furnished with a copy of the relevant contract term. If that term was not in writing, then notice in writing of the existence and effect of the term must be given to the employee. It further provides that any deduction must be fair and reasonable having regard to all the circumstances, including the employee’s wages, and should not exceed the cost to the employer of the goods or services.

If an employee considers that an employer has not complied with the Payment of Wages Act, a complaint may be made to the Rights Commissioners Service of the Labour Relations Commission. I believe this represents a reasonable and balanced approach.

As regards the protection of staff in low-paid positions, further to a commitment in the Programme for Government, on 1 July 2011, the National Minimum Wage was restored to €8.65 per hour from the previous rate of €7.65. This restoration represents a significant commitment by the Government to protect the lowest paid and most vulnerable workers.

The Industrial Relations (Amendment) Act 2012 came into effect on 1 August 2012. The main purpose of the Act is to implement the commitment in the Programme for Government to reform the Joint Labour Committee (JLC) system. The Act provides for a radical overhaul of the system so as to make it fairer and more responsive to changing economic circumstances and labour market conditions. It reinstates a robust system of protection for low paid and vulnerable workers in sectors which, prior to the July 2011 High Court ruling in the John Grace Fried Chicken case, had been covered by JLCs. On January 28 last I signed Establishment Orders following a Labour Court review of the existing JLCs.

As regards zero hours contracts, these contracts must be entered into freely by the employer and the employee – one cannot be forced upon an employee. In certain circumstances, they may be of great benefit to both employers and employees. Such contracts may be preferred by employees who require flexibility to facilitate educational or other personal requirements. However, this is an area I will keep under review.

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

In addition, Sections 17 and 19 of the Organisation of Working Time Act may also be of particular interest to employees on zero hour contracts. Section 17 sets out the requirements regarding notification to the employee of the times at which he/she will be required to work during the week, and Section 19 sets out an employee’s entitlement to paid annual leave calculated based on hours worked.

Enterprise Support Schemes

Questions (15)

Ciara Conway

Question:

15. Deputy Ciara Conway asked the Minister for Jobs, Enterprise and Innovation the number of female entrepreneurs that have benefited from the female entrepreneurship competitive feasibility fund; the progress to date in promoting female entrepreneurship; and if he will make a statement on the matter. [12011/14]

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Written answers

Both Enterprise Ireland and the County & City Enterprise Boards (CEBs) are actively providing a range of supports to women in business including financial supports, sponsorship of awards, business events, promoting role models and specialised training and networking programmes. 30 female led businesses received Enterprise Ireland’s (EI) Competitive Feasibility funding in 2013. The number of female clients who benefited from the Competitive Start Fund has increased from 8 in 2012 to 27 in 2013 as a result of a more targeted approach taken by EI. High Potential Start-up (HPSU) investments in female led businesses have also increased from 8 in 2012 to 14 in 2013. Enterprise Ireland is currently working closely with 120 female led businesses to help them grow.

A key objective in supporting female entrepreneurship is to ensure that training and development programmes meet the particular needs of female entrepreneurs. A fund of €150,000 was launched by Enterprise Ireland in 2013 towards training and development programmes supporting the key challenges impacting on female entrepreneurs. The following Development Programmes received funding in 2013 following an assessment process:

1. Going for Growth Programme – Fitzsimons Consulting

2. Female Founders Programme - NDRC

3. Women in Business Programme - Cork Institute of Technology

4. Female Propellor Programme - DCU Ryan Academy

It is anticipated that up to 100 female entrepreneurs will benefit from completing these development programmes and the outputs of the programmes will be reviewed in Q4 2014.

In 2013, the CEBs provided €2.44m in grant funding to female led businesses. 74 received business expansion grants, 35 received feasibility/innovation grants and a further 168 received priming grants. Furthermore, over 15,000 female entrepreneurs received training from the CEBs during 2013 with a further 2669 women engaging with mentoring. Many of the CEBs operate Women in Business Networks that provide both training and networking opportunities.

In terms of promoting female entrepreneurship, each year, the CEBs organise a National Women’s Enterprise Day (NWED) with the aim of inspiring, activating and assisting women across Ireland in running their own business. NWED 2013 took place on October 16 & 17 in Co. Laois and was attended by over 300 women. Microfinance Ireland is also actively supporting female led businesses with access to loan finance, and has provided loans to 33 female led businesses to end of Q4 2013.

Pension Provisions

Questions (16, 37)

Mick Wallace

Question:

16. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation his plans to allow former employees access to the Labour Court or the Labour Relations Commission in relation to pension matters; and if he will make a statement on the matter. [12177/14]

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Clare Daly

Question:

37. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation his proposals in relation to allowing former employees access the State's industrial relations procedures so they can have a voice in relation to pension matters, as referred to by the Minister for Social Protection during the recent the debate on the Social Welfare and Pensions (No. 2) Bill 2013. [12139/14]

View answer

Written answers

I propose to take Questions Nos. 16 and 37 together.

Access to the Industrial Relations machinery of the State is governed by the definition of “worker” in Section 23 of the Industrial Relations Act 1990, which provides, inter alia, that a “worker” means any person aged 15 years or more who has entered into or works under a contract with an employer. In addition, section 3 of the Industrial Relations Act 1946 provides that a dispute between a worker and an employer only arises if it is connected with the employment, non-employment or the terms of the employment or with the conditions of employment of any person. Legal advice received by the Labour Court on a number of occasions suggests that a person who is retired cannot be regarded as a worker and cannot be party to a trade dispute capable of investigation by the Court. Where a person is retired they cannot have a dispute concerning their employment or non-employment. The Court is, however, entitled to investigate a matter which arose prior to an individual's retirement and which was referred to the Labour Relations Commission or Labour Court prior to the individual's retirement.

In the context of work on the draft Workplace Relations Bill, I am currently considering issues which have arisen in the context of the provision of access to individual former employees to the industrial relations machinery of the State under the Industrial Relations Acts, where they have not referred their claim prior to their retirement. Any change in this area would require amendments to the definition of 'worker' within the meaning of section 23 of the Industrial Relations Act 1990 and to the definition of 'trade dispute' within the meaning of section 3 of the Industrial Relations Act 1946.

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

Officials from my Department and the Department of Social Protections have held initial discussions to explore how retired persons could have collective representation with the Trustees of the Pension Schemes of which they are members and, perhaps more problematically, with former employers where changes to the scheme are being negotiated between employers and employees that may impact on retired persons. The issue requires careful consideration; it is apparent, however, that it does not lie exclusively within the industrial relations framework.

Job Creation Targets

Questions (17)

Bernard Durkan

Question:

17. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the degree to which he expects innovation, science and technology to play a part in the jobs market in the next two years; the extent to which he expects funding to be made available in this regard from the relevant EU Commission; and if he will make a statement on the matter. [12171/14]

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Written answers

The importance of investment in innovation, science and technology in employment creation is well recognised by Government. As a small open economy, a central tenet of Ireland’s economic strategy is the essential requirement to export goods and services. In order for our companies to achieve success on the global market they must be able to innovate at internationally high levels in order to differentiate themselves.

My Department and its agencies are focused on the development and support of internationally traded manufacturing and services firms in Ireland. They have a clear and steady focus on the potential and opportunities that exist and can be created by prioritising innovation and technology as a key driver of success. Enterprise Ireland, IDA Ireland and Science Foundation Ireland provide a range of innovation and science/ technology development programmes that deliver financial, technical and experiential support to help companies become more innovative and encourage competitiveness. In turn, this will help them grow their sales and exports in order to create a climate in which sustainable employment will be maintained and expanded.

The Action Plan for Jobs emphasises the importance of Innovation and the use of technology as core drivers of job creation in Ireland’s key sectors during 2014 and into the coming years. In tandem with this approach, it is recognised that substantial international expertise and important sources of non-exchequer funding are available via EU research initiatives. Enterprise Ireland is responsible for coordinating Ireland’s national support network for helping Irish companies and third level researchers to participate in Horizon 2020. This is the new EU Framework Programme for Research and Innovation covering the period 2014 – 2020, with a budget of nearly €80 Billion.

Horizon 2020 offers valuable opportunities to companies based in Ireland to participate in high-quality research collaborations. The Government has set an ambitious but achievable target of €1.25 Billion in funding from this programme. Ireland’s drawdown from Framework Programme 7, Horizon 2020’s predecessor, was almost €600 Million. This funding has provided a considerable increase in the innovative capability of Irish industry and academics over and above existing exchequer investments in this area.

It is most encouraging to see that the 2014 European Commission’s Innovation Union Scoreboard, published last week, shows Ireland increasing its position from tenth to ninth in the overall ranking of 28 EU Member States. Moreover, it is particularly encouraging to see that Ireland is the overall leader in the indicator which measures the economic effects of innovation. This indicator captures the economic success of innovation in employment in knowledge-intensive activities and the contribution of medium and high-tech product exports to the trade balance. It also captures exports of knowledge-intensive services, sales due to innovation activities and license and patent revenues from selling technologies abroad. I am confident that, against that background, Ireland will continue to maximize the financial benefits from EU Framework Programmes and will meet the target we have set ourselves for Horizon 2020.

Trade Agreements

Questions (18)

Mick Wallace

Question:

18. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the negotiations between the EU and the US on a transatlantic trade and investment partnership; and if he will make a statement on the matter. [12176/14]

View answer

Written answers

Since TTIP talks started in July 2013, there have been three Rounds of talks, with a further five scheduled during 2014. The fourth Round started this week. Among the topics covered are Trade in Services, Regulatory Coherence, Customs and Trade Facilitation, Intellectual Property Rights, Sustainable Development, Government Procurement, Market Access, Technical Barriers to Trade among other topics. A political stocktake meeting between the principal negotiators, Commissioner Karel de Gucht and United States Trade Representative Mr Michael Froman, took place on 17 and 18 February. This meeting looked at all issues across the negotiating agenda and discussed the best means to keep the negotiations moving forward with the pace and energy that both sides have demonstrated to date.

My Department has encouraged the Commission to seek an ambitious programme of tariff reductions when compiling its initial exchange of offers on goods, that took place last month. The quickest possible removal of tariffs will lower business trading costs and will bring wider competitiveness and consumer benefits. While current tariffs are already low on trade, even these can act as a tax on trade that in reality serves no purpose. This early exchange of offers did not include sensitive agriculture products. What the EU is prepared to offer in this sector will be considered separately and much later in the negotiating process.

In addition to coordinating the interests of other Departments, enterprise development agencies and business associations to promote our strategic interests in the TTIP, my Department recently engaged international expertise to examine the economic and other impacts of TTIP and related potential opportunities. The focus of this study, being undertaken by Copenhagen Economics, will be to identify how any agreement will affect the economy. Consequently, I am arranging for the consultants to meet with the widest possible range of stakeholders over the coming weeks. This work will help to inform my input to the Commission’s negotiating position.

On 27 January the Commission announced the setting up of a special Advisory Group, including environmental, health, consumer, workers', business and NGO interests, to provide EU negotiators with high quality advice in the areas covered by TTIP talks. This forms part of the Commission’s commitment to outreach and transparency, to explain what is involved in the TTIP and to hear the widest possible views from civil society.

Job Creation Data

Questions (19)

Dara Calleary

Question:

19. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if part-time jobs are included in the figures provided by IDA Ireland for employment in its client companies; the number of the net jobs created by IDA Ireland client companies in 2013 that were part-time; and if he will make a statement on the matter. [12163/14]

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Written answers

I am informed the Agency does not collect data on part-time jobs, but groups all “other” jobs (agency, part-time, temporary, short-term contract or employed on contracts of less than nine months) into one category. 2013 was a record year for investment wins and job creation, with over 7,000 net new jobs being created in the Agency’s client companies- of which 2,136 were in this “other” category. I am informed that a significant driver of this was the increasing use of contracted or agency workers in the IT, digital media and medical technologies industries specifically. In 2013, half of the gains in the “other” employment category was accounted for by 15 companies. These companies are primarily based in the digital media and medical technology sectors.

The use of non-permanent workers fulfills a valuable role in allowing an IDA client company the flexibility to meet fluctuating global demands while at the same time gaining access to key skills as business demands change. This is the fourth year in a row for jobs growth and there are now over 161,000 people employed in IDA Ireland client companies, the highest ever number recorded in the history of the Agency.

Table shows IDA Ireland Employment Data for 2013

-

2013

%

Full Time Jobs

142,283

88.31

Other Jobs

18,829

11.69

Total Jobs

161,112

IDA Site Visits

Questions (20)

Patrick O'Donovan

Question:

20. Deputy Patrick O'Donovan asked the Minister for Jobs, Enterprise and Innovation the number of IDA Ireland-organised visits by prospective investors to sites in County Limerick and in towns outside Limerick city, since 2011; and if he will make a statement on the matter. [12013/14]

View answer

Written answers

I am informed by IDA Ireland that since 2011, there has been a total of 98 IDA Ireland sponsored site visits by potential investors to County Limerick. Details of the number of site visits conducted in each of the years 2011 to date in 2014 are set out on the tabular statement.

IDA Ireland sponsored site visits by potential investors include visits to multiple locations where there are greenfield or current turn-key property solutions for them to consider. For reasons of client confidentiality and commercial sensitivity, such as the potential impact on any future property transactions that may arise from a possible investment, it is prudent to provide details of such visits on a county by county basis only.

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. In all cases it is the investor who decides where to locate.

Limerick, along with Clare and North Tipperary, forms part of IDA’s Mid-West region. Within that region, IDA Ireland concentrates its efforts on the Limerick/Shannon gateway and the hub town of Ennis. With the improved infrastructure that is now in place, a project win in one location in a region has a positive economic impact on other areas within and in close proximity to that region. IDA Ireland works closely with third level educational institutions in the region so that the skill-sets necessary to attract high value added employment to the county are being developed.

At the end of 2013, there were 44 IDA Ireland supported companies in Co. Limerick employing 7,284 people. IDA Ireland has strong relationships with all these companies and works closely with them to ensure their long term sustainability and to encourage their growth, development and continuing re-investment in their sites. 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 are from the existing client base.

In December 2013, I announced that Regeneron Pharmaceuticals is to apply for planning permission to establish a state-of-the art, biopharmaceutical production facility within an 11.88 hectare site, previously owned by Dell in the Raheen Business Park, Limerick. Subject to planning approval from the local authority, the company expects to employ up to 300 people by the end of 2016, including scientists, engineers, technicians and administrative personnel. The proposed $300 million investment programme will involve the major refurbishment of existing buildings on the site and the construction of a quality control laboratory, which will transform the site into a world-class biopharmaceutical campus. Subject to a successful permit, construction and refurbishment is anticipated to begin in 2014 for a two year period, generating up to 600 temporary construction jobs for local contractors. There were a number of other IDA announcements for Limerick during 2013 including Vistakon (300jobs), EtQ (30 jobs) ACI Worldwide (60 jobs) and WWTS (62 jobs).

In accordance with the Government decision of November 2012, Shannon Development is being merged with Shannon Airport to form a new entity with a commercial mandate in public ownership. As part of the restructuring of Shannon Development, the enterprise support functions have transferred to IDA Ireland and Enterprise Ireland. This will ensure the continuation of support to both FDI and indigenous enterprises in the region and will also allow the new Shannon Group, being formed from the combining of Shannon Airport Authority and Shannon Development to focus on the development of an International Aviation Service Centre in Shannon. IDA Ireland is assuming responsibility for FDI companies in the Shannon Free Zone, which currently has approximately 55 companies with over 5,000 employees. In addition, part of the restructuring will result in IDA purchasing lands in the National Technology Park in Limerick and the Raheen Business & Technology Park from Shannon Development.

Table showing the number of IDA Ireland sponsored site visits in County Limerick in each of the years 2011 to date in 2014

County

2011

2012

2013

2014

(to date)

Limerick

40

30

23

5

IDA Jobs Data

Questions (21)

Éamon Ó Cuív

Question:

21. Deputy Éamon Ó Cuív asked the Minister for Jobs, Enterprise and Innovation the number of jobs created by IDA Ireland in each NUTS-II region in the last three years; the number lost in IDA Ireland-assisted businesses broken down on the same basis; and if he will make a statement on the matter. [12228/14]

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Written answers

Ireland’s NUTS-II regions are defined as:

- Border, Midland and Western NUTS-II Region and

- Southern and Eastern NUTS-II Region

The Forfás Annual Employment Survey reports on the number of jobs gained and lost in the enterprise development agencies. The survey is conducted on an annual basis and aggregated at county level. Details of the number of jobs created, lost and net jobs change in each of the Nuts-II regions in the last three years are set out in the tabular statements. Table 1 outlines the IDA client employment gains for the years 2011 to 2013. The table shows that there have been significant gains in employment in both the BMW and the South & East Region over the past three years. Since 2010, IDA clients have employed over 42,000 new staff across Ireland. Similarly, Table 2 outlines the IDA client employment losses for the years 2011 to 2013. Employment losses in IDA clients have been falling over the past three years. While employment losses in the BMW were slightly higher in 2013 compared to 2012, the overall net employment growth has been strong in both the BMW and the South & East Region.

The 2014 Action Plan for jobs which was published recently aims to build on the success of the 2012 and 2013 Action Plans and has again set out a series of ambitious commitments by Government to support job creation and retention.

I am, of course, concerned at the lack of investment in certain regional locations. Under the Action Plan for Jobs 2014, IDA Ireland and Enterprise Ireland are working with my Department to develop a framework for a Regional Enterprise Strategy to better integrate the efforts of enterprise agencies and the other regional stakeholders in building enterprise based on sustainable competitive advantage of the region. 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.

Table 1 shows Job Gains in IDA client companies by NUTS-II Region

NUTS-II

2011 Gains

2012 Gains

2013 Gains

BMW

3,115

2,098

2,577

S&E

11,052

12,851

10,790

Total

14,167

14,949

13,367

Table 2 shows Job Losses in IDA client companies by NUTS-II Region

NUTS-II

2011 Losses

2012 Losses

2013 Losses

BMW

914

941

1,210

S&E

7,365

6,806

5,086

Total

8,279

7,747

6,296

Table 3 shows Net Jobs Change by NUTS-II Region

NUTS-II

2011 Net Change

2012 Net Change

2013 Net Change

BMW

2,201

1,157

1,367

S&E

3,687

6,045

5,704

Total

5,888

7,202

7,071

Skills Shortages

Questions (22)

Denis Naughten

Question:

22. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the initiatives he is taking in view of the report by the Joint Committee on Jobs, Enterprise and Innovation regarding serious skills shortages in the ICT sector here; if he will establish an Irish technology visa; and if he will make a statement on the matter. [12227/14]

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Written answers

The rapidly evolving technology sector represents both a challenge and an opportunity for Ireland, and it is my intention and the intention of my colleagues in Government to harness to the greatest extent possible developments in this sphere to the benefit of the country. Since the Oireachtas Committee Report was issued in October 2012, a study undertaken for the European Commission in April 2013 projects that there may be a shortage of ICT professionals of up to 864,000 in Europe by 2015. In addition, the Expert Group on Future Skills Needs (EGFSN) published a report in November 2013 which projects that there will be more than 44,500 potential job openings for ICT professionals in Ireland over the period from 2013 to 2018, including almost 20,400 potential job openings for both new graduates and skilled professionals between 2013 and 2015.

Almost half of applications for new Employment Permits during 2013 were from applicants with critical ICT skills, both within and beyond the ICT sector itself. The Action Plan for Jobs (APJ) 2013 committed to delivering a range of additional measures to streamline and simplify the Employment Permit application process, with shortages in the ICT sector specifically in mind. These have all been delivered. For example, an ICT Green Card employment permit application may now be made in respect of all sectors of the economy, not just in the ICT sector itself, in recognition that ICT skills are in short supply across the economy. An Intra-Company Transfer Permit holder or a Contract Service Provider Employment Permit holder can now apply for other types of Employment Permits. The €30,000 salary threshold for IT Graduates (both graduates of Irish and foreign colleges) has been reduced to €27,000. This year, the application process is being enhanced by the development of a ‘Trusted Partner Registration Scheme’ to allow fast tracking of applications.

The initial pilot phase of the Scheme will be rolled out for employment in selected enterprises that are enterprise agency clients. Other changes to the application process, which include enhanced call centre support and the introduction an eForm, have reduced processing times for issue of Employment Permits by an average of 36% over the course of 2013.

The Minister for Education and Skills and I, together with a range of Government agencies and in close collaboration with industry, have developed Ireland's second ICT Skills Action Plan, informed by the progress to date in implementing the measures under the first ICT Action Plan, and the EGFSN Report. The EGFSN report presents new demand scenarios for high level ICT skills to 2018. The ICT Skills Action Plan will bring together actions by industry, education providers and the state sector to meet the challenge of ICT skills shortages, and will be launched by the Minister for Education and Skills and myself tomorrow. The focus of this new Plan will be on building the supply of graduates and skilled professionals with core ICT/electronic engineering qualifications at honours degree level and above. Before the publication of the first Action Plan, domestic supply from higher education programmes only meat 45% of demand. That figure is now estimated at over 60% and we are targeting three quarters by 2018.

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

Living Wage

Questions (23)

Thomas Pringle

Question:

23. Deputy Thomas Pringle asked the Minister for Jobs, Enterprise and Innovation his views on the introduction of a living wage and its benefits to employers and employees; and if he will make a statement on the matter. [12225/14]

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Written answers

The UK Living Wage Foundation describe the Living Wage as an hourly rate, set independently and updated annually that is calculated according to the basic cost of living and paid by employers on a voluntary basis. The UK rate promulgated is £7.65 per hour. Ireland generally operates a voluntarist system of Industrial Relations where terms and conditions are negotiated freely. This has operated well. In addition, Ireland had certain provisions that apply with statutory effect.

The National Minimum Wage (NMW) in Ireland at €8.65 per hour, is relatively high by international standards. The most recent figures published by Eurostat show that Ireland’s rate is the fourth highest among the 21 EU Member States that have a National Minimum Wage. When the cost of living is taken into account, Ireland’s rate is the fifth highest. In addition to the NMW, Industrial Relations Acts provide a framework within which employers and employee representatives, through the Joint Labour Committee (JLC) system, can come together voluntarily and negotiate terms and conditions of workers in their respective sector. Pay rates negotiated in the JLC fora tend to be somewhat above the NMW and the JLCs operate in areas where collective bargaining is not well established and wages tend to be low (e.g. hairdressing, and hospitality sectors).

For vulnerable workers, the advantage of JLCs is that they see fair terms and conditions such as wage rates, sick pay etc. agreed and given effect by Employment Regulation Order. For some employers, the advantage of the JLC system, based as it is on the principle of self-governance, means that they can agree and set minimum pay and conditions, agree on work practices which are custom-made to their industry; a flexibility which cannot easily be achieved by primary legislation. Where both parties to a JLC see commonality of purpose and outcome then an agreement may emerge that is of benefit to both. The decision to restore the NMW to €8.65 per hour with effect from 1 July 2011, together with the decision to put the JLC on a more secure legal and constitutional footing and reinstate a robust system of protection for these represents a significant commitment by this Government to protect the lowest paid and most vulnerable workers.

Alongside these structures, the Department of Social Protection supports low-income families in work by means of Family Income Supplement (FIS). That Department avails of every opportunity in its engagement with employers and jobseekers to build awareness of the availability of FIS and how this payment may benefit potential employees with children.

Regional Development

Questions (24)

Dara Calleary

Question:

24. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his views on whether regional development goals are receiving adequate attention from the Industrial Development Agency Ireland; and if he will make a statement on the matter. [12162/14]

View answer

Written answers

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

IDA Ireland’s target of 50% of investments outside Dublin and Cork was ambitious. The result for 2013 at 30% is ahead of the outcome of 25% in 2012 indicating a positive trend in terms of new investment in the Regions. I should point out that during the period 2010 to 2013, 35% of all FDI announcements related to locations outside of Dublin and Cork while 40% of all IDA Ireland sponsored site visits by potential investors were to locations outside of Dublin and Cork. Furthermore, 72,500 people, roughly 44% of the total employment in IDA Ireland’s base of companies, including those that were former clients of Shannon Development, are located outside of Dublin and Cork.

It must also 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. Indeed during 2013, there were some very big announcements in regional locations such as Dundalk, Limerick and Waterford.

In order to achieve regional economic development, IDA prioritises the marketing of Gateway locations within each Region as the locations of critical mass and highlights the opportunities provided by Hub locations which are within commuting distances of these Gateways. During 2012, as part of its marketing activities, IDA Ireland began an online marketing initiative, “Connect & Invest”, to showcase the unique attributes of each region to international clients. A key component of a Gateway Economic Region’s value proposition are the existing industry clusters which originated with the arrival of several large multinational companies through the support of IDA Ireland and which, in turn, create the development of an indigenous sub-supply base assisted, in some cases, by Enterprise Ireland. A number of these Irish-owned companies, particularly in the Life Sciences Sector, have since become significant international players in their own right. These clusters are primarily located in Gateway locations.

Under the Action Plan for Jobs 2014, IDA Ireland and Enterprise Ireland are working with my Department to develop a framework for a Regional Enterprise Strategy to better integrate the efforts of enterprise agencies and the other regional stakeholders in building enterprise based on sustainable competitive advantage of the region. 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.

Employment Rights

Questions (25)

Joan Collins

Question:

25. Deputy Joan Collins asked the Minister for Jobs, Enterprise and Innovation if he welcomes the fact that over 40,000 workers in the retail sector have sought and won, through their union Mandate, over €15 million in wage increases over the past 18 months; and if he supports legislation for statutory trade union recognition and collective bargaining. [12224/14]

View answer

Written answers

I am aware that, through a process of negotiations in line with Ireland’s voluntary system of industrial relations, Mandate, the trade union representing retail workers in Ireland, have concluded a number of collective agreements with individual employers in the retail sector providing for wage increases for their members.

A return to wage bargaining is visible in certain sectors of the economy, not just in retail. But it remains vital that our competitiveness is not eroded. It has been the consistent policy of successive Irish Governments to promote collective bargaining through the laws of this country and through the development of an institutional framework supportive of a voluntary system of industrial relations that is premised upon freedom of contract and freedom of association.

The Programme for Government contains a commitment to reform the current law on employees' right to engage in collective bargaining (the Industrial Relations (Amendment) Act 2001), so as to ensure compliance by the State with recent judgments of the European Court of Human Rights. With this in mind, in late 2012 I wrote to stakeholders inviting their observations on the matter. Submissions were subsequently received and a series of meetings took place with representatives from IBEC, ICTU, the American Chamber of Commerce Ireland and Chambers Ireland during 2013. Discussions with stakeholders are still ongoing. I hope to be in a position to revert to Cabinet soon.

Job Creation

Questions (26)

Seán Fleming

Question:

26. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation his views on whether the current system of employers PRSI can be enhanced to support job creation; and if he will make a statement on the matter. [12166/14]

View answer

Written answers

Policy responsibility for the PRSI system is a matter for the Minister for Social Protection and any substantive changes to the PRSI system are generally agreed by the Government as a whole in the context of the Budgetary process.

As the Deputy will be aware, the PRSI system operates on a tripartite basis, with contributions being made by employers, employees and the State to the Social Insurance Fund which finances a range of social welfare benefits. Self-employed people also make contributions to the Fund. Employer’s PRSI is a component of labour costs and it is important that, along with income tax and corporation tax, we maintain competitive rates to support job creation while balancing the needs of the Social Insurance Fund to pay social welfare benefits. There are, however, many other ways of supporting employers to create jobs.

Last year, the Government introduced the JobsPlus scheme which provides financial support to employers who recruit a person who has been unemployed for 12 months or longer. The scheme provides a payment of €7,500 over two years to an employer who recruits a person who has been unemployed for 12 months, but less than 24 months. A payment of €10,000 over two years is made to the employer in respect of a person who has been unemployed for more than 24 months. The JobsPlus scheme replaced the former Revenue Job Assist scheme and the Employer’s PRSI exemption scheme in July 2013 and has already had a higher uptake than both of those schemes combined.

JobsPlus was a key initiative of the 2013 Action Plan for Jobs. The 2014 Action Plan for Jobs was published at the end of February and contains a range of commitments for delivery across all Government Departments and 46 agencies to support job creation in the economy.

Grocery Industry Competition

Questions (27)

Michael McGrath

Question:

27. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation the position regarding plans to ban so called hello money in the retail sector; and if he will make a statement on the matter. [12168/14]

View answer

Written answers

Competition law prohibits retailers from compelling suppliers to make payments for the advertising or display of grocery goods. Anyone who has evidence of traders engaging in such practices should bring this evidence to the attention of the Competition Authority in order that it can be fully investigated. The Programme for Government contains a commitment to regulate for certain practices in the grocery goods sector. This commitment will be given statutory effect through enabling provisions in the Competition and Consumer Protection Bill. Work on drafting this Bill, which is included in the “A list” in the Government’s current Legislative Programme, is at an advanced stage and I expect to be in a position to seek Government approval shortly to publish the Bill.

In addition to introducing enabling provisions to regulate for certain practices in the grocery goods sector, the Bill will, inter alia, merge the National Consumer Agency and the Competition Authority, update and reform competition law on foot of a review of the operation and implementation of the Competition Act 2002, and give effect to the recommendations of the Advisory Group on Media Mergers.

Enterprise Support Schemes

Questions (28)

Michael McGrath

Question:

28. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation the steps he is taking to implement the report of the Entrepreneurship Forum; and if he will make a statement on the matter. [12169/14]

View answer

Written answers

In consideration of the need to generate a step-change in the spirit and culture of entrepreneurship in Ireland, I established an Entrepreneurship Forum, chaired by entrepreneur and investor Sean O’Sullivan in May 2013 to draft appropriate policy conclusions and recommendations aimed at supporting business start-ups, sustainable growth and long term job creation. Membership of the Entrepreneurship Forum consisted of entrepreneurs and academics with representation also from my Department and Enterprise Ireland. The rationale for establishing the Forum was to take suggestions/advice from people who have actually taken the entrepreneurial route, have direct experience of the challenges facing entrepreneurs and can provide a relevant insight into the responses needed in the current economic environment.

The Forum considered all 74 of the submissions from a parallel public consultation process undertaken in 2013 as well as the outcomes from meetings with stakeholders in the development of their Report. 69 recommendations have been put forward by the Forum in their Report. Many of the recommendations require Government action, but there are also recommendations aimed at businesses, entrepreneurs and industry representative bodies to engage them in building a stronger entrepreneurial culture in Ireland. The Report is an important contribution to our current consideration of new policies to drive entrepreneurship in Ireland. I am currently considering the Report’s recommendations in so far as my own responsibilities are concerned, and I am also consulting with relevant colleagues in Government in respect of their Department’s response to the recommendations falling within their respective areas of responsibility.

The Government have committed to produce a National Entrepreneurship Policy Statement within the context of the Action Plan for Jobs 2014. Through a disruptive reform on entrepreneurship, we have set out a vision for Ireland to be among the most entrepreneurial nations in the world and to be acknowledged as a world-class environment to start and grow a business. I hope to be in a position to publish the Policy Statement by early Q2 2014. The Statement will further expand on the rationale, policies and actions set out in the Entrepreneurship chapter in the Action Plan for Jobs 2014. It will contain a set of cross-Governmental targeted actions to drive improvements in the overall environment for entrepreneurship, thereby demonstrating our commitment to increasing the prevalence of job creating start-ups.

Industrial Property Portfolio

Questions (29)

Éamon Ó Cuív

Question:

29. Deputy Éamon Ó Cuív asked the Minister for Jobs, Enterprise and Innovation the number of agencies under the aegis of his Department that own business or industrial land for development, broken down by agency and by county; if he intends rationalising this approach to the development of industrial and business sites; and if he will make a statement on the matter. [12229/14]

View answer

Written answers

The two agencies under the remit of my Department who hold industrial property portfolios are IDA Ireland and Shannon Development. Details of the land holdings of both agencies are set out in the tabular statement. IDA Ireland also provides property solutions to companies who are clients of Enterprise Ireland. Under legislation both agencies are independent in the exercise of their property function. The empirical results of international research has demonstrated that the availability of suitable property solutions is a key element in the location decision making process undertaken by prospective investors in determining where projects will locate. Most International development agencies with which IDA competes hold substantial stocks of such properties.

As part of the restructuring of Shannon Development, the enterprise support functions have transferred to IDA Ireland and Enterprise Ireland. This will ensure the continuation of support to both FDI and indigenous enterprises in the region and will also allow the new Shannon Group, being formed from the combining of Shannon Airport Authority and Shannon Development to focus on the development of an International Aviation Service Centre in Shannon. IDA Ireland is assuming responsibility for FDI companies in the Shannon Free Zone, which currently has approximately 55 companies with over 5,000 employees. In addition, part of the restructuring will result in IDA purchasing lands in the National Technology Park in Limerick and the Raheen Business & Technology Park from Shannon Development.

In recent years IDA Ireland has taken the decision to rationalise its non-core land holdings in a number of locations throughout the country. Land holdings are initially offered to Local Authorities and recent examples of rationalisation of IDA Ireland non-core lands completed include the transfer of lands to Roscommon County Council, Donegal County Council, Wicklow County Council and South Dublin County Council. In addition, current transfers in legal process include Cork County Council, Leitrim County Council, Wexford County Council and discussions are ongoing with Galway County Council, Sligo County Council, Dún Laoghaire-Rathdown County Council and Kilkenny County Council. The Agency has explained that non-core lands which are not required by the Local Authorities are placed on the Open Market for disposal.

IDA Ireland also markets non-core lands and properties directly to stakeholders including; OPW, HSE, Chambers of Commerce, An Post and other similar bodies through active engagement in sharing portfolio information with common objectives. IDA constantly keeps its property portfolio under review and of course the matter will again be reviewed in the contest of the work currently being undertaken on the preparation of a new strategy for the Agency from 2015 onwards.

Table shows details of IDA Ireland Land Holdings

County

Property Name

Property Type

Net Hectares

Carlow

Bagenalstown

Land

0.1555

Cavan

Cavan B&T Park

Land

12.0745

Cork

Youghal Springfield Estate

Land

1.87

Cork

Youghal Foxhole

Land

1.2341

Cork

Mallow B & T

Land

3.4585

Cork

Macroom Coolcour

Land

0.3976

Cork

Kinsale Rathhallikeen

Land

0.1298

Cork

Fermoy Rathealy

Land

0.9955

Cork

Cork City Kilbarry B&T Park

Land

57.53

Cork

Carrigtohill B&T Park

Land

24.297

Cork

Bandon Laragh Estate

Land

1.83

Cork

Ringaskiddy (Strategic Site)

Land

156.67

Cork

Cork B&T Park

Land

0.83

Cork

Cork City Ringaskiddy Estate

Land

0.2023

Cork

Cork City Rossa Ave

Land

0.1152

Cork

Millstreet IDA Estate

Land

0.1133

Cork

Fermoy B & T

Land

6.05

Cork

Cork Carrigtohill East (SSi)

Land

53.1576

Donegal

Donegal Lurganboy

Land

0.872

Donegal

Letterkenny Knocknamona

Land

1.35

Donegal

Letterkenny B & T Park [30 Ha]

Land

24.5

Donegal

Letterkenny Business Pk

Land

2.84

Dublin

Dublin 24 - Whitestown Ind Est

Land

0.46

Dublin

Swords - Barrysparks

Land

0.2834

Dublin

Dubl 11 - Poppintree Ind. Est.

Land

3.13

Dublin

Blanchardstown Cruiserath (SS)

Land

27.1925

Dublin

Blanchardstown

Land

14.8587

Dublin

Dubl 12 - Ballymount Ind. Est.

Land

0.0249

Dublin

Swords Bus. Park, Greenfields

Land

3.3775

Dublin

Dublin 5 - Belcamp

Land

46.3996

Galway

Tuam Business Park

Land

2.25

Galway

Roundstone

Land

1.0135

Galway

Mountbellew Business Park

Land

0.1979

Galway

Gort Business Park

Land

1.1217

Galway

Glenamaddy Business Park

Land

0.9105

Galway

Parkmore B&T Park (W&E)

Land

29.22

Galway

Ballygar Site

Land

3.4398

Galway

Athenry Business Park

Land

0.109

Galway

Ballinasloe B&T Park

Land

9.697

Galway

Tuam Science & Technolgy Park

Land

10.1269

Galway

Oranmore S&T Parkk (SS)

Land

26.78

Galway

Athenry (Strategic Site)

Land

8.792

Kerry

Killorglin Farrantoreen

Land

0.8224

Kerry

Dingle

Land

0.5059

Kerry

Killarney B&T Park

Land

4.0619

Kildare

Newbridge Business Park

Land

3.5385

Kildare

Naas Tipper West

Land

1.733

Kildare

Athy Woodstock

Land

1.7183

Kilkenny

Kilky-Purcellsinch Ind. Park

Land

7.26

Kilkenny

Kilkenny B&T Park

Land

14.0783

Kilkenny

Belview (Strategic Site)

Land

14.69

Laois

Portlaoise B&T Park

Land

10.9868

Leitrim

Carrick-On-Shannon Bus. Park

Land

7.72

Leitrim

Drumshanbo

Land

0.2238

Leitrim

Manorhamilton Carrickleitrim

Land

0.4208

Longford

Longford -- Aghafad

Land

2.0272

Longford

Longford Industrial Estate

Land

1.0176

Louth

Greenore

Land

0.0272

Louth

Dundalk Finnabair B&T Park

Land

10.69

Louth

Marleys Lane, Drogheda

Land

0.0056

Louth

Dundalk Mullagharlin East (SS)

Land

15.6

Louth

Dundalk Mullagharlin (SS)

Land

44.175

Louth

Drogheda B&T Park

Land

23.0626

Mayo

Ballina Business Park

Land

2.07

Mayo

Bangor Erris Industrial Park

Land

0.607

Mayo

Castlebar B&T Park

Land

3.0897

Mayo

Foxford Business Park

Land

0.6798

Mayo

Ballina

Land

10.6141

Meath

Navan B&T Park

Land

27.16

Monaghan

Monaghan Business Park

Land

7.53

Offaly

Tullamore Industrial Estate

Land

0.3541

Offaly

Tullamore B&T Park

Land

16.7284

Offaly

Clara

Land

0.4872

Roscommon

Roscommon B&T Park

Land

7.4991

Roscommon

Castlerea Station Rd

Land

1.1735

Roscommon

Carrick-On-Shannon Tullyleague

Land

1.633

Sligo

Collooney Business Park

Land

0.545

Sligo

Cleveragh Business Park

Land

0.3035

Sligo

Easkey Business Park

Land

0.0611

Sligo

Finisklin Business Park

Land

12.74

Sligo

Tubbercurry Business Park

Land

1.2871

Sligo

Sligo - Oakfield Site

Land

31.3186

Tipperary So

Tipperary Knockanrawley

Land

3.16

Tipperary So

Clonmel Bus Park

Land

20.071

Waterford

Knockhouse (Strategic Site)

Land

28.7334

Waterford

Waterford Industrial Estate

Land

1.8

Waterford

Dungarvan Clogheran

Land

0.6277

Waterford

Cappoquin

Land

2.1206

Waterford

Waterford B&T Park

Land

24.2872

Waterford

Dungarvan Business Park

Land

11.5675

Westmeath

Mullingar Clonmore Ind. Est.

Land

10.244

Westmeath

Athlone B&T Park Garrycastle

Land

13.57

Westmeath

Athlone Garrankesh

Land

0.0926

Westmeath

Mullingar B&T Park

Land

23.9227

Wexford

Wexford B&T Park

Land

3.14

Wexford

Wexford Whitemills

Land

1.0141

Wexford

Enniscorthy - Moyne Upper

Land

1.88

Wicklow

Bray Oldcourt

Land

0.0424

Wicklow

Arklow Kilbride

Land

0.1197

Wicklow

Greystones B&T Park

Land

17.93

Wicklow

Bray B&T Park

Land

0.0347

Wicklow

Arklow B&T Pk

Land

14.834

Table shows details of Shannon Development Land Holdings

County

Number of Landbanks

Total Development Acreage

Clare

20

572

Galway

1

4

Kerry

4

638

Limerick

20

739

Offaly

3

5

Tipperary

6

125

Total

54

2,083

Credit Guarantee Scheme Application Numbers

Questions (30)

Seán Fleming

Question:

30. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation the amount of loans guaranteed to date under the credit guarantee scheme; his plans to review the scheme to improve its take up; and if he will make a statement on the matter. [12167/14]

View answer

Written answers

The SME Credit Guarantee Scheme (CGS) was established under the Credit Guarantee Act 2012, to address specific market failures in lending to SMEs and in response to calls from business interests. It is a novel Scheme in an Irish context and it is currently developing a position in the Irish financial arena. My Department, along with the CGS operator, Capita, and the participating lenders has committed significant time and resources to the establishment and operation of this Scheme. While demand for the scheme has been lower than anticipated, it has, nonetheless to year end 31 December 2013 supported additional lending of some €9.788 million to 72 companies and supported 409 new jobs, while maintaining 236 jobs.

The recently completed review of the Scheme has recommended some changes that could lead to increased take-up if they are addressed. We are nearing completion of the review process, having consulted widely with stakeholders on the proposed changes. I will shortly be bringing a Memorandum to Government seeking approval to amend the Credit Guarantee Act and I am confident that the necessary legislative amendments will be made by the Oireachtas in the coming months, with a view to the earliest possible re-launch of the scheme. My Department publishes quarterly progress reports on the SME Credit Guarantee Scheme on its website www.enterprise.gov.ie. The progress report detailing the analysis and performance for the quarterly period ending 30 September 2013 is available on my Department’s website. The progress report for the period to December 2013 will be published shortly.

Action Plan for Jobs

Questions (31)

Ciara Conway

Question:

31. Deputy Ciara Conway asked the Minister for Jobs, Enterprise and Innovation the position regarding the implementation of the Action Plan on Jobs; the most recent figures from the exporting sector; if he will provide a breakdown of those sectors that are witnessing a return to growth; the number of new start-ups by region; the latest information on consumer confidence here; and if he will make a statement on the matter. [12012/14]

View answer

Written answers

Since the Action Plan for Jobs was introduced in 2012, the Government has implemented over 500 actions to support job creation across all Government Departments and a significant number of State agencies. The 2012 Action Plan for Jobs contained 270 actions and 92% of these were delivered by the end of that year. The 2013 Action Plan contained 333 actions and had a 90% implementation rate. Those commitments which were not implemented on schedule in 2012 and 2013 were carried forward to the subsequent year’s Action Plan, or replaced with more targeted measures.

A key strength of the Action Plan process is its cumulative impact – each year’s Plan builds on measures which have been initiated in the previous year. The 2014 Action Plan for Jobs was launched on 27th February and builds on the actions contained in the 2012 and 2013 Plans. It contains 385 actions for delivery across all Government Departments and 46 agencies. The Action Plan process is underpinned by a robust monitoring system, with quarterly reports published on progress against key milestones. All of the Progress Reports since the commencement of the Action Plan for Jobs process are available on my Department’s website, www.djei.ie.

The latest QNHS data shows that employment has increased in ten of the fourteen economic sectors classified by the CSO. The largest rates of increase were in:

- Agriculture, Forestry and Fishing, which saw an increase of 26,800 jobs;

- Accommodation and Food Services, which saw an increase of 17,400 jobs; and

- Professional, Scientific and Technical Activities, which saw an increase of 13,000 jobs.

These are all sectors which have been identified as having potential for jobs growth under the Action Plan for Jobs process. Smaller increases were recorded in other sectors, including Industry, Health and Social Work activities, Education, and Administrative services.

Ireland’s goods exports in 2013 showed a robust performance, and the figures for December 2013 showed an 18% seasonally adjusted increase over December 2012. In 2013, the Agri-food sector continued to perform well and exports of food and live animals were up 8%, with exports of dairy products increasing by 15%. This performance shows the quality and competitiveness of our agri-business sector and the capacity of that sector to support export-orientated employment across the regions.

The services sector also continued to perform particularly well, and comprised almost half of Ireland’s exports in 2012. Services exports reached a record level of €90bn in 2012, when our services sector recorded a trade surplus for the first time. The value of our services exports continued to grow in 2013, with the latest available figures, for September 2013, showing a 4% increase on September 2012. I understand that updated trade figures are due to be published by the Central Statistics Office today.

I am not in a position to provide complete data on the number of new start-ups by region, but Enterprise Ireland offers a range of financial and non-financial supports to assist clients through all stages of the business development cycle, including offers to High Potential Start-Up (HPSUs) companies. In 2013, Enterprise Ireland invested in 189 new HPSU companies by way of Equity and through the Competitive Start Funds. Table 1 shows the regional breakdown of these approvals. The County and City Enterprise Boards also provide supports to those who wish to start up a business.

The latest KBC Ireland/ESRI Consumer Sentiment Index was released last week and showed continued improvement, increasing to 85.5 in February 2013, from 84.6 in January and 59.4 in February 2012. The 3-month moving average increased for the tenth consecutive month, to 83.3, from 78.5 in January. The indications from this are that consumers are increasingly confident that the Irish economy as a whole is improving.

As we said two years ago when we published the first Action Plan for Jobs, there is no ‘big bang’ solution to the employment crisis – what we need is to systematically build a sustainable growing economy which can create the jobs we need. Over the past two years we have implemented over 500 actions to improve our competitiveness, support Irish and multinational companies, and target sectors of potential. We are seeing the results of our efforts – our competitiveness rankings are improving, our exports are growing, and we are now creating jobs faster than any other economy in the EU or the OECD. We will continue the process in 2014 with the Action Plan for Jobs and other Government policies, so that we fulfil our promises to the many people around the country still have yet to see evidence of economic recovery in their own lives.

Table 1 – Enterprise Ireland investment in HPSUs by region

Region

No. of approvals 2013

Dublin/Mid-East

119

Midlands

6

Mid-West

13

North East/North West

9

South/South East

31

West

11

TOTAL

189

Job Creation

Questions (32)

Bernard Durkan

Question:

32. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he expects to see jobs created in the manufacturing and services sectors over the next two years; if he is satisfied regarding the availability of skills in the labour force to meet market requirements; the degree to which specific skills are likely to become sought after in the period in question; if any particular skill shortages have been identified; and if he will make a statement on the matter. [12170/14]

View answer

Written answers

The Forfás Strategy for the Manufacturing Sector, which I commissioned, and which was published in April last, identified that an additional 20,000 jobs can be created in the sector by 2016. A complementary report on the skills needs for the sector, which I had commissioned at the same time, was published by the Expert Group on Future Skills Needs and Forfás and it identified a series of actions to enhance skills in the sector.

Arising from both the Strategy and the Skills Report, there are now a range of initiatives in hand by my Department and relevant Agencies to drive the 2016 target, with key actions from both reports having been incorporated into the Action Plan for Jobs for 2013 and 2014. A key initiative which is underway is the development of a National Step Change initiative to strengthen Ireland’s manufacturing base across all firms. For 2014 it is intended to undertake the following:

- Support 130 indigenous companies with an initiative to improve their productivity as part of the National Step Change for Manufacturing;

- Deliver a transformation programme across 70 foreign-owned manufacturing and services companies in Ireland to achieve technology uplift, skills enhancement, energy improvements and investment in new facilities and equipment, and

- Support the adoption of LEAN manufacturing and other productivity enhancing measures across a wide range of enterprises including relevant micro-enterprises.

In relation to that Skills report, it identified some key areas where up-skilling will be required, including shortages of toolmakers, a growing future demand for polymers technicians, and up-skilling requirements for machinists and a range of other specialisms. On foot of these recommendations, work is underway by key stakeholders such as Solas, Skillnets and other educational bodies to implement a range of specific skills actions. In addition, a comprehensive review of the Apprenticeship system has just been completed by the Department of Education and Skills. Its recommendations take account of the major changes to the structure of the economy and the nature of employment since the current system of Apprenticeships was implemented in early 1990s. A consultation process with stakeholders is now underway to examine how implementation of this report can be progressed as quickly as possible. In relation to overall employment in the manufacturing sector, when account is taken of indirect jobs, the sector now supports over 400,000 employees.

With regard to the Services sector, this accounts for two thirds of total employment in Ireland. While the majority of service firms are not supported by the State, in respect of agency supported companies, the job creation trend is very positive. The various Action Plans for Jobs, including the recently published Action Plan for Jobs 2014 have included a range of sectoral initiatives to facilitate new and established services companies to grow, including International Financial Services, Business Process Outsourcing/Shared Services, Education Services, Retail and Wholesale, Tourism, Construction Services and ICT Services.

In addition, the Medium Term Economic Strategy, published last year, has identified the Services Sector as a key driver of job creation and growth. That Strategy highlights the opportunities in a range of sectors. It is notable that the latest employment data shows that, across all sectors, an additional 61,000 people were in work at the end of 2013, compared with one year ago.

Question No. 33 answered with Question No. 7.
Question No. 34 answered with Question No. 14.
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