Written Answers Nos. 285-306
285. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the progress made on proposals for grade rationalisation and restructuring in each sector of the public service by 2014, as indicated in paragraph 3.11 in the Haddington Road agreement or if this is being left to natural wastage; and if he will make a statement on the matter. [17953/14]
View answerIn line with the Haddington Road Agreement and in accordance with Action Plan set out in the Government's new Public Service Reform Plan 2014-2016 - page 79, section 4.2.1(iii) - my Department is currently working to develop options for advancing the objective of grade restructuring as one of a number of actions to strengthen Human Resource Strategy and resourcing policies. Proposals for grade rationalisation and restructuring in other sectors of the Public Service (Health, Education, Local Authorities, Justice Group) are matters for management in the parent Departments concerned.
286. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform if any sector of the public service has implemented grade restructuring as per paragraph 3.11 of the Haddington Road agreement; the discussions he or his Department have had on overseeing this matter; and if he will make a statement on the matter. [17954/14]
View answerIn line with the Haddington Road Agreement and in accordance with the Action Plan set out in the Government's new Public Service Reform Plan 2014-2016 - page 79, section 4.2.1(iii) - my Department is currently working to develop options for advancing the objective of grade restructuring as one of a number of actions to strengthen Human Resource Strategy and resourcing policies. This work is scheduled to conclude at the end of 2014. Proposals for grade rationalisation and restructuring in other sectors of the Public Service (Health, Education, Local Authorities, Justice Group) are matters for management in the parent Departments concerned.
287. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the reason his Department has written to the CEO of the pensions committee of Waterways Ireland who oversees the administration of the North-South pension scheme for its employees of the intention to increase employee contributions from April 2014 in view of the fact that the Haddington Road agreement gave a commitment that public service pay and related issues would not be revisited over the lifetime of the agreement; and if he will make a statement on the matter. [17955/14]
View answerFive of the six North/South Implementation Bodies, including Waterways Ireland, along with Tourism Ireland, operate the North/South Pension Scheme (N/SPS). The Scheme is unique in covering public service staff employed on both sides of the border; staff of the affiliated employers in this jurisdiction are automatically members of the Scheme. The Chief Executive Officers of the relevant N/SPS bodies and Tourism Ireland meet as the N/SPS CEO Pension Committee, which exercises trustee-like functions in relation to the Scheme.
As Minister for Public Expenditure and Reform, I am jointly responsible, along with the Northern Ireland Minister for Finance and Personnel, currently Mr Simon Hamilton, MLA, for the rules of the N/SPS, and in particular for approving amendments which may be proposed to those rules.
Review and reform of existing pension arrangements, including public service pension arrangements, has been an ongoing issue in both jurisdictions over recent times. In exercise of my responsibilities in relation to the N/SPS, I and my officials have engaged in correspondence and discussion about reforms to the Scheme rules with my counterpart Northern Ireland Minister and his officials.
As outlined in recent correspondence with the CEO of the Pensions Committee, I consider that the current reform package, which includes a proposed increase in pension contributions, is appropriate and proportionate, particularly having regard to the desirability of maintaining a common pension scheme for N/SPS employees in both jurisdictions. In this regard I welcome the Committee's acceptance, in principle, that the N/SPS should be reformed in line with changes to the Principal Civil Service Pension Scheme Northern Ireland (PCSPSNI). I do not accept that the Haddington Road Agreement precludes necessary ongoing pensions reforms with appropriate consultation.
The Deputy may be aware that, in this connection, officials from my Department have met with Union interests under the auspices of the Labour Relations Commission. In the light of these discussions, which I am hopeful will conclude in the near future, I do not wish to comment further on this aspect. Contribution increases have not been implemented pending completion of this process.
288. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform if he will provide a full breakdown of all costs relating to the transfer to PeoplePoint of administrative responsibility for personnel functions in the Civil Service; the numbers employed in PeoplePoint and the comparative numbers employed in each Department prior to the move to PeoplePoint; the residual numbers remaining in each Department's personnel section following the transfer of administrative responsibility for staff functions to PeoplePoint; the quantifiable efficiencies gained by the introduction of the PeoplePoint system; and if he will make a statement on the matter. [18073/14]
View answerThe information requested by the Deputy on all costs for the establishment of PeoplePoint, the Human Resources and Pensions Shared Service Centre (HRSSC), are set out in the following table. It outlines both the Project Implementation costs and PeoplePoint Operational costs incurred in 2012 and 2013 and the estimated costs for 2014:-
|
Year |
Project Implementation Costs €m |
PeoplePoint Operational Costs €m |
|
2012 actual |
5.34 |
N/A |
|
2013 actual |
6.575 |
5.96 |
|
2014 estimate |
4.025 |
11.725 |
The Project Implementation costs consist of technology, project team resources (both internal to the Civil Service and the cost of implementation partners) and facilities costs. The Operational costs for PeoplePoint include staffing costs and overheads such as heating, lighting, licensing, etc. My Department is collating a detailed and up-to-date breakdown of the costs incurred to date and will provide these to the Deputy separately.
The 2012 Financial Appraisal that underpinned the decision to proceed with PeoplePoint estimated the implementation costs associated with this project at €26m inclusive of VAT and contingency. The table reflects an overall project implementation cost of €15.94m. The difference arises as there has been no recourse to the use of the 20% contingency which was included in the Financial Appraisal. Also, a 40% increase was applied to all staff costs in the Financial Appraisal to reflect the overheads associated with staff. This is not included in the actual spend as the Project Team costs reflect the actual cost to the Exchequer of staff who are on loan to the project from within the system.
The 2012 Financial Appraisal estimated that there were 865 full time equivalents (FTEs) providing HR and Pensions services to the organisations participating in the project. Of these, it was estimated that 529 FTE were carrying out transactional (or purely administrative) HR and Pensions activities to be delivered in PeoplePoint. There are currently 224 staff working in PeoplePoint operations.
The 2012 Financial Appraisal also estimated that, when PeoplePoint is fully operational and stable in due course, 309 FTEs would remain in HR Units in the participating public service bodies to continue to carry out the balance of HR and Pensions activities that were being carried out when the baseline was set for the Financial Appraisal and were remaining the responsibility of each public service body after the transactional activities within the scope of the project had fully moved to PeoplePoint.
My Department has been engaged in tracking and reviewing the progress achieved to date in securing reductions in the number of staff providing transactional HR and Pensions services from HR Units to the Civil Service on a tranche by tranche basis with a view to reporting to Government on progress made by Tranche 1 of public service bodies shortly. The estimated reduction in FTEs would only be expected to be achieved once PeoplePoint is stable and fully operational.
It should also be noted that Civil Service staff numbers were not expected to be directly reduced as a result of establishing PeoplePoint. It is expected that the staff resources previously engaged in providing the transactional HR and Pension services transferred into PeoplePoint would be available for redeployment into other areas to meet staffing needs arising from other priorities (i.e. there would be lower replacement rates than would otherwise be the case for vacancies arising, for example, from natural attrition such as retirements). In addition, while some HR staff are being redeployed out of HR Units to other areas of their organisations, others are being re-assigned within HR Units to work that is strategic and potentially of higher value to the business of their organisation. This reinvestment in HR is designed to work in tandem with the introduction of shared services to change how HR is delivered in the Civil Service.
289. Deputy Billy Kelleher asked the Minister for Jobs, Enterprise and Innovation the progress the Government has made in implementing the recommendations of the Moriarty tribunal report; and if he will make a statement on the matter. [17801/14]
View answerThe Moriarty Tribunal made two recommendations for changes to company law, as follows:
- That a provision similar to section 172 of the UK Companies Act, 2006 be adopted, together with the adoption of additional implementation or enforcement measures.
- That consideration be given by the Oireachtas, and/or by the Company Law Review Group, to enacting provisions similar to those contained in Part 14 of the UK Companies Act, 2006, governing the control of political donations and expenditure.
The Government considered that provisions in the Companies Bill 2012, which will consolidate and give a statutory footing to the duties of directors, meet the objectives of the first recommendation above. This Bill was published on 21 December 2012 and completed Report Stage in the Dáil on the 2nd of April 2014. With regard to the second recommendation above, provisions restricting corporate donations are contained in the Electoral Amendment (Political Funding) Act 2012, which comes within the remit of the Minister for the Environment, Community and Local Government.
290. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation the total legal costs incurred by his Department in 2011, 2012, 2013 and estimated in 2014. [17359/14]
View answerLegal costs incurred to date in 2014 for my Department amount to €241,975.61. The estimated total of legal costs for my Department for the remainder of 2014 is €662,290. While it is not possible to definitively predict the amount which will be spent on legal costs for 2014, this figure represents projects of which I have been notified at this point. For example, legal costs incurred by the Office of the Director of Corporate Enforcement are difficult to anticipate in advance, as much depends on the scheduling of cases in the Courts and on the outcome of those cases.
My Department seeks, where possible, to minimise legal costs and has adopted a number of measures to achieve this. The Department/offices avail of the services of the Chief State Solicitors office and the Attorney General’s office in terms of the provision of legal advice and in terms of representation of the Department/offices in Court cases. The services of legal cost accountants are availed of where fees demanded appear to be high. Additionally, in 2012 my Department completed a tendering process for prosecution and civil debt enforcement services in the case of the pursuance of employment rights cases on behalf of individuals.
291. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation the total external public relations costs incurred by his Department in 2011, 2012, 2013 and estimated in 2014.; and if he will make a statement on the matter. [17375/14]
View answerThe total external public relations costs incurred by my Department in 2011, 2012, 2013 and estimated in 2014 are as follows:
|
Year |
2011 (since 9 March) |
2012 |
2013 |
2014 (incurred to date) |
2014 (estimated to be incurred from 15 April to 31 Dec) |
|
Total External PR Costs Incurred |
€18,770 |
€5,268 |
€79,663* |
€923 |
€3,100 |
* €76,480 was incurred to provide the Department with Press and Media Relations Services for the Irish Presidency of the EU. This was a once off exercise/expenditure due to Presidency events.
While it is not possible to definitively predict the amount which will be spent on public relations costs for the remainder of 2014, the figure provided above represents projects of which I have been notified at this point.
My Department uses external public relations providers having regard to its business needs. In engaging such providers, the Department is mindful of the need to secure value for money and, accordingly strives to keep costs to the minimum.
292. Deputy Maureen O'Sullivan asked the Minister for Jobs, Enterprise and Innovation the number of persons, companies or projects Enterprise Ireland referred to the Dublin Business Innovation Centre in the years 2012 and 2013; the number of persons, companies or projects that were referred to Enterprise Ireland by DBIC in the years 2012 and 2013; and if he will make a statement on the matter. [17419/14]
View answer293. Deputy Maureen O'Sullivan asked the Minister for Jobs, Enterprise and Innovation the number of persons, companies or projects that were referred to Enterprise Ireland by the Dublin Business Innovation Centre and received feasibility grant funding in the years 2012 and 2013 and his views on whether it is appropriate that a number of entities performing the evaluation of high-tech CSF applications do not have websites; and if he will make a statement on the matter. [17420/14]
View answerI propose to take Questions Nos. 292 and 293 together.
Working in conjunction with Enterprise Ireland, the Dublin BIC (DBIC) helps to refine early stage business propositions with high potential and helps the promoter to build an Investor Ready Business Plan. This is a very valuable service in supporting early-stage enquiries and start-up companies. The DBIC will also advise the promoter in relation to the Funding Authority that would best be appropriate for his/her business.
The number of persons, companies or projects referred to Dublin BIC by Enterprise Ireland (EI) for assistance with developing investor plans was 58 in 2013. Figures for 2012 are not readily available and would take time to collate. I will endeavour to have the information required provided to the Deputy as soon as possible.
The number of persons, companies or projects referred by DBIC to EI is not tracked; however, the numbers are relatively small, simply because the majority of entrepreneurs will also have contacted EI directly.
DBIC as an organisation receives approximately 500 enquiries per year. Of these, the organisation engages in detail with approximately 60 persons/companies/projects per year with a focus on "Investor Ready Business Plan preparation". Of the 60, many would have contacted EI directly or may have been referred to Dublin BIC by EI. Many others would be signposted to their Local Enterprise Office (LEO); to the New Frontiers & Accelerator Programmes, as appropriate. Some would also be directed to participate in the early stage Enterprise Start 2 Programme operated by DBIC in partnership with EI. There is not a formal direct referral process in place.
Of the 58 projects referred to DBIC by EI,
- 6 Projects subsequently received Feasibility Grant funding; 2 Companies also received Feasibility funding to attend Trade Fairs in the United States;
- 10 Companies received Capital Investment following the DBIC assistance.
Evaluation of CSF applications is undertaken by a team of Enterprise Ireland Development Advisors and external assessors. The external assessors are all professionals who are required to have experience of technology start-ups and also and relevant sectoral expertise. EI look for two categories of expert; internet, telecoms, Software-as-a-Service (SaaS), cloud computing and enterprise software or, alternatively, engineering, medical devices and clean-tech. These assessors are appointed following an open call for tender. The latest tender for assessors, was advertised publicly on the E-Tenders website in May 2012 and the call is still open. EI recently appointed five new assessors to the panel, in addition to the existing panel of experts.
The assessors usually contract with Enterprise Ireland through small consultancy firms who may not have more than a couple of employees. Such companies generally do not have websites, and it is not a requirement that they should have one. The selection and appointment of external evaluators is not based on the experience of the company, in every case it relates to the experience and expertise of the named individual who is being proposed. Accordingly, EI’s evaluators are all individuals with the relevant skills. It would be normal for such individuals to tender for work as part of a small consultancy business.
294. Deputy Maureen O'Sullivan asked the Minister for Jobs, Enterprise and Innovation the total funding provided by Enterprise Ireland to the Dublin Business Innovation Centre for the years 2011, 2012 and 2013; and if he will make a statement on the matter. [17421/14]
View answerThe Business Innovation Centres (BIC’s) are independent companies limited by guarantee and led by Boards whose members are mainly from the private sector. There are four BIC’s located throughout the country as follows – Dublin BIC, Cork BIC, South East BIC based in Waterford and West BIC based in Galway.
The BICs were established in 1988 as a European Union initiative and until the end of 1999 the BICs were funded by the EU. Since 2000, EU funding was replaced by Government Exchequer funding, which is channelled through and managed by Enterprise Ireland (EI).
The four BIC’s currently receive combined core funding of €2.2m per annum. The core funding is divided on a population basis between:
- Dublin BIC,
- Cork BIC, covering the South West region of Ireland.
- West BIC which covers the Border, Midland and Western regions of Ireland primarily serving counties Galway, Mayo, Sligo, Leitrim, Roscommon, and Donegal.
- South East BIC providing services in Carlow, Kilkenny, Waterford, Wexford and South Tipperary.
Table 1 outlines the total Grant Payments to Dublin BIC from 2011 to 2013.
Table 1
|
Year |
Grant Payments |
Business Angels |
Total |
|
€ |
€ |
€ |
|
|
2011 |
1,008,109 |
85,200 |
1,093,309 |
|
2012 |
1,008,109 |
85,200 |
1,093,309 |
|
2013 |
1,033,221 |
85,425 |
1,118,646 |
|
Total |
3,049,439 |
255,825 |
3,305,264 |
295. Deputy Finian McGrath asked the Minister for Jobs, Enterprise and Innovation if he will provide the contact name, number, office and so on of an official or staff who can advise small businesses on the northside of Dublin on the way to access funds on issues like EII, SCS, RSA, FED, VAT and PRSI in the Dublin 3, 5, 9, 13 and 17 areas; and if he will make a statement on the matter. [17431/14]
View answerSince 1993, the City and County Enterprise Boards (CEBs) have been providing advice and assistance to micro enterprises across the country, such as the availability of financial assistance and other Government supports for businesses. As the Deputy will be aware, the CEBs have been dissolved with effect from today and replaced by Local Enterprise Offices (LEOs) situated in the Local Authorities.
The LEOs will provide an enhanced range of services to their clients and all LEO staff have received training on the range of relevant services provided by other organisations, such as Revenue, the Department of Social Protection, MicroFinance Ireland, etc. As part of the improved services, protocols have been agreed with those organisations so that staff in the LEOs will have direct access to appropriate individuals in those organisations to whom their clients can be referred, if necessary.
Anyone in Dublin City, regardless of location, who is seeking information on the range of supports available to businesses should contact the Local Enterprise Office, Dublin City at 5th Floor, O'Connell Bridge House, D'Olier Street, Dublin 2, telephone: 01-6351144; email info@leo.dublincity.ie ; or access the LEO website at: www.localenterprise.ie/dublincity.
296. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the number of complaints made to the Rights Commissioner Service regarding breaches of section 18 of the Organisation of Working Time Act 1997 in the years 2012, 2013 and to date in 2014. [17435/14]
View answerThe details of the number of complaints referred to the Rights Commissioner Service regarding breaches under section 18 of the Organisation of Working Time Act, 1997 for the years 2012, 2013 and to date in 2014 are set out in the following table.
|
Year |
2012 |
2013 |
2014 (to end March) |
|
No. of complaints referred to RCS under section 18 of the OWT Act 1997 |
Statistics not available for 2012* |
60 |
7 |
*Statistics are not available for 2012 in relation to the number of complaints referred to the Rights Commissioner Service under section 18 of the OWT Act 1997. However, the total number of complaints referred to the Rights Commissioner Service for 2012 under the OWT Act 1997 was 1,308.
297. Deputy Caoimhghín Ó Caoláin asked the Minister for Jobs, Enterprise and Innovation when a decision will issue on the work permit appeal of a person (details supplied) in Dublin 8. [17555/14]
View answerA Work Permit application in respect of the person named by the Deputy was refused on 30th January 2014. The level of remuneration stated in respect of an Employment Permit application is a key indicator of the skills and experience required for a job. This assists the Minister in determining the necessity for employing a foreign national. Therefore, in order to satisfy the Minister that the granting of an Employment Permit would be in the public interest and in line with the current economic policy of the Government, new Employment Permit applications are normally only considered where it is established that a minimum salary of €30,000 per annum is on offer based on a 39 hour week. The annual salary stated on the application form was €20,160 in respect of a forty eight hour working week, which would give a rate of pay below the National Minimum Wage.
I understand that the applicant has appealed this decision in accordance with Section 13 of the Employment Permits Act 2006. This appeal will be processed in due course.
298. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation the various non-bank sources of funding available to small and medium-sized enterprises; the way SMEs can access such funding; and if he will make a statement on the matter. [17682/14]
View answerAccess to Finance for SMEs is a key priority for this Government as evidenced by its importance within the Action Plan for Jobs process for the last 3 years. Again in 2014 Access to Finance has a crucial role to play in delivering the jobs agenda and the required cross Government work is continuing to address difficulties in the access to finance arena and to facilitate recovery and growth plans.
The Government provides a broad range of non-bank sources of funding for SMEs. Comprehensive information and details on over 90 such Government sources of funding are publicly available on the Department of Finance website:
http://banking.finance.gov.ie/wp-content/uploads/State-Financial-Support-for-SMEs.pdf
Details on access to the various State sources of non-bank funding are set out in the links included on this table.
Further work has been undertaken to develop an interactive on-line tool which will provide SMEs with information on these various Government funding supports. The on-line tool has been trialled at the Government’s Taking Care of Business events held in March and April 2014 in Limerick, Galway and Cork; and it is expected that the final on-line tool will be launched shortly.
The various non-bank funding supports that my Department has responsibility for are included in the table and in the on-line tool. Funding and other supports are provided to SMEs by my Department through Enterprise Ireland, the Local Enterprise Offices and Science Foundation Ireland ranging from direct investment in SMEs to grants and advice and training supports. My Department has also established 2 schemes for enterprises that have been refused bank credit: the Microenterprise Loan Fund and the Credit Guarantee Scheme.
In addition to the wide range of State supports for SMEs there are many private sector non-bank funding options available for SMEs such as: Invoice Finance, Supply Chain Finance, Leasing, Peer-to-Peer lending and Crowdfunding. Through the Action Plan for Jobs 2013 and again in 2014, the various Departments and State Agencies are working together to develop and support new sources of non-bank finance for SMEs.
299. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the progress to date on sourcing a new tenant for a premises (details supplied); the number of site visits arranged to the premises in 2012, 2013 and to date in 2014; and if he will make a statement on the matter. [18030/14]
View answer300. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the site visits arranged to view a vacant premises (details supplied) in each of the past two years to date in 2014; and if he will make a statement on the matter. [18031/14]
View answerI propose to take Questions Nos. 299 and 300 together.
I am informed by IDA Ireland that of the 4 IDA Ireland sponsored site visits by potential investors to Roscommon during 2013, 3 included a visit to the IDA facility in Roscommon Town. To date no tenant has been found for the building. There were no IDA Ireland sponsored site visits to County Roscommon during 2012 or to date in 2014.
There were no IDA Ireland sponsored site visits to the facility in Boyle. I have been informed by Enterprise Ireland that the facility in Boyle, which is in the ownership of Green Isle, is currently on the market. Enterprise Ireland understands that Green Isle has no plans for the facility other than disposal but have assured me that the agency’s Food Business Unit will promote the factory should it become aware of any potential new food projects.
The Action Plan for Jobs 2014 includes a commitment to develop a framework for a Regional Enterprise Strategy to better integrate the efforts of the enterprise development agencies and other regional stakeholders in supporting enterprises. My intention is that the framework will be developed on a pilot basis initially, focusing on the Midlands region, and involving the agencies under the remit of my own Department – Enterprise Ireland, IDA Ireland and the County and City Enterprise Boards (soon to become Local Enterprise Offices). The objective is to enhance synergies between the agencies and their client companies and build on the competitive strengths of the region to maximise the potential for job creation in both indigenous and foreign owned companies. The role which other public bodies in the region can play in working towards this objective will also be examined as the project develops. The aim is that this framework will serve as a model for other regions of the country.
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.
301. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his Department has identified the most important issues affecting job retention based on the performance over the past ten years; and if he will make a statement on the matter. [18077/14]
View answer302. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his Department has identified the main cause of job losses in the economy in the years 2007 to 2011; the extent to which these issues have been addressed; and if he will make a statement on the matter. [18078/14]
View answerI propose to take Questions Nos. 301 and 302 together.
When this Government came into office, it had inherited a situation where more than 250,000 private sector jobs had been lost in the previous three years. This was primarily the result of relying on economic growth fuelled by a construction sector bubble and unsustainable consumption.
At its peak in 2007, the construction sector directly employed 276,000 people. By the end of 2011, the numbers employed in the sector had fallen to 107,000. Similarly, the numbers employed in the wholesale and retail sectors reduced from 317,800 in 2007, to 271,400 at the end of 2011. We had also experienced a significant loss in our competitiveness in the period up to 2007.
In general terms, business decline resulting in job losses often arises due to a combination of issues affecting the long-term viability of a company. Some of the primary reasons for business decline and consequent job losses include:
- significant decreases in customer or market demand due to the recession in Ireland and in key trading partners;
- financial difficulties (insolvency, bankruptcy, bad debts, inability to raise finance);
- increased competition from competitor;
- loss of key customers;
- rationalisation/consolidation/restructuring of Group structures involving the closure of a company unit.
To support economic recovery, the Government set about transformation on a number of fronts, including fixing the banking systems, reforming the public sector and embedding a jobs agenda right across Government. The new economic model which we are building is based on enterprise, innovation and exporting.
Through the Action Plan for Jobs process, we have been addressing key factors which can act as obstacles to job creation and retention. These include issues such as costs of doing business, access to finance, administrative burdens on business, the need to improve company capability, and access to new markets. We are also building a strong enterprise mix to ensure that Ireland is not overly reliant on a limited number of sectors for future growth.
While the task has been significant, we are making progress. We are climbing back up the international competitiveness rankings again, our exports are at record high levels, and the latest CSO Quarterly National Household Survey showed that the number of people in employment increased by 61,000 year-on-year in the fourth Quarter of 2013, net of a reduction of 5,500 people in the public sector.
We are now seeing an average of 1,200 jobs being created each week in the enterprise sector, compared to an average loss of 1,600 per week before the Government came into office. There are now 1.909 million people at work, compared to 1.847 million at the start of the Action Plan for Jobs process.
303. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which the cost base in Irish industry remains in line with that in other adjoining and European jurisdictions; and if he will make a statement on the matter. [18079/14]
View answerThe National Competitiveness Council (NCC) published the Cost of Doing Business in Ireland 2014 Report on the 1st April 2014. This report compares Ireland’s cost competitiveness to other regions across a number of key business inputs: Labour costs, Property costs, Transport costs, Utility costs, Credit costs, Business and Professional Services costs, and Broader environment costs, such as consumer prices. Comparisons are made against a number of EU Member States and the Euro area average in many instances.
The report finds that Ireland’s costs base has improved across a range of metrics over the last number of years, making Irish firms more competitive internationally and making Ireland a more attractive location for firms to base their operations. However, the report also indicates that, despite these improvements, Ireland is still a high cost location for a number of key business inputs. The Council points to upward pressures emerging in a number of areas, including labour costs, industrial electricity prices, transport costs and a range of business services.
The NCC emphasises the importance of Ireland’s international cost competitiveness remaining a key priority and cautions that further structural change is required to ensure that costs do not escalate and erode the competitiveness gains which we have made in the last few years. The report also emphasises the importance of improving productivity performance. The full Costs of Doing Business report is available on the NCC’s website, www.competitiveness.ie.
The 2014 Action Plan for Jobs places a particular focus on improving competitiveness in all areas of economic activity, and includes a full chapter setting out actions to be taken in 2014 in relation to costs, supporting competitive regions, aligning skills with enterprise needs, and using research and innovation to drive competitiveness. These issues will be systematically addressed over the course of the year by the relevant Departments and agencies.
The Action Plan for Jobs also includes a commitment that the Cabinet Committee on Economic Recovery and Jobs will monitor the competitiveness agenda on a regular basis and will report to the Government on a quarterly basis on such issues. In this context, the Costs of Doing Business report was submitted to the Cabinet Committee on Economic Recovery and Jobs for its March meeting and has also been submitted to a full meeting of the Government.
304. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which consideration remains to be given to supporting regional developments in a way likely to spread economic growth throughout the regions thereby preventing imbalances; and if he will make a statement on the matter. [18080/14]
View answerThe 2014 Action Plan for Jobs, which was published at the end of February, recognises that regions that support strong and dynamic enterprises are crucial to Ireland's return to overall economic growth. The Action Plan includes a number of measures to be taken in 2014 to support competitive regions.
For example, one of the mechanisms by which we will support enterprise development at regional level in 2014 is by building new property capacity in regional locations to help cater for FDI projects. In 2014, IDA Ireland will commence building new advanced manufacturing facilities in Waterford and Athlone, and office space in Letterkenny.
The Department of the Environment, Community and Local Government and Local Authorities will develop integrated local economic and community plans, to promote economic and community development in each local authority area.
The Action Plan also includes a commitment to develop a framework for a Regional Enterprise Strategy to better integrate the efforts of the enterprise development agencies and other regional stakeholders in supporting enterprises. My intention is that the framework will be developed on a pilot basis initially, focusing on the Midlands region, and involving the agencies under the remit of my own Department – Enterprise Ireland, IDA Ireland, as well as the new Local Enterprise Offices. The objective is to enhance synergies between the agencies and their client companies and build on the competitive strengths of the region to maximise the potential for job creation. The role which other public bodies in the region can play in working towards this objective will also be examined as the project develops. My aim is that the pilot Regional Enterprise Strategy framework for the Midlands will serve as a model for other regions of the country.
The latest Quarterly National Household Survey published by the Central Statistics Office shows that in Quarter 4 2013, there was an increase of 61,000 people in employment year-on-year, net of reductions in the public sector. The data also shows that there was an increase in employment in all regions of the country.
Through the Action Plan for Jobs, we will aim to build on this progress across the regions in 2014.
305. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the role he sees for job creation through innovation, science and technology in the future; and if he will make a statement on the matter. [18081/14]
View answerThe importance of Science, Technology and Innovation (STI) to Ireland is recognised by the Government as being crucial to growth in our indigenous and FDI sectors and plays a key role in job creation. The Government’s overarching aim is to accelerate both the economic and societal return on our public investment in STI. In this context, the implementation of Research Prioritisation, underway since March 2012, is seeing the majority of public research funding aligned with 14 priority areas, where we are most likely to get economic and societal returns, particularly in the form of jobs.
In line with Research Prioritisation, in June 2012 an IP Protocol was published outlining new structures to encourage more businesses to commercialise R&D by ensuring that they can access the results of state-funded R&D with greater clarity and certainty. A key initiative linked to the IP Protocol is the new central Technology Transfer Office (cTTO) located in Enterprise Ireland, which is providing a crucial interface between industry and the research community and is helping to drive a world-class technology transfer system in Ireland, ensuring it is responsive to the needs of both academia and enterprise. Furthermore, the remit of Science Foundation Ireland has recently been expanded to cover applied research, aligned with the 14 priority areas to further support the development of research findings into commercial opportunities, further enhancing our job creation potential.
In 2013, SFI had links to 41% (2,618) of 6,449 jobs (90 company announcements) announced by the IDA in all fields. Indeed, in 2013 of 164 foreign direct investments in Ireland, 27 were in Research, Development and Innovation, activities that are central to productivity and new business development in Ireland’s multinational sector. Moreover, the recently modified R&D Tax Credit scheme continues to encourage businesses to invest in research and development.
We have a well-established reputation in Ireland for having an environment conducive to doing business and to supporting job creation. We have been extremely successful in targeting FDI which has catalysed industrialisation, the expansion of exports and has helped to diversify economic activity. As a Government, we are accelerating the re-balancing of the economy towards internationally competitive, export-oriented sectors that can generate further employment and earnings, and we are striving to remove any remaining barriers to growth and employment creation in those sectors most capable of strong expansion.
Export-led growth is essential for a sustainable economic recovery and measures designed to support industry growth are set out in the most recent Action Plan for Jobs 2014, which includes a dedicated section on ‘Research and Innovation to Drive Job Creation’. Actions include consolidating and building critical mass and international reputation in areas that underpin Ireland’s enterprise base and enhancing fruitful collaborations between enterprises, academia and other public sector bodies to deliver economic and social benefits. With 2014 being designated as the “Year for Jobs”, the Action Plan for Jobs this year continue to focus on competitiveness, winning new markets and new investment overseas and building a strong environment where targeted sectors with potential can grow and create new jobs.
306. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which smaller indigenous companies can avail of assistance by way of support for research and innovation with consequent improved job retention and creation prospects; the extent to which he sees such smaller companies being in a position to avail of such assistance in the current and following years; and if he will make a statement on the matter. [18082/14]
View answerSecuring Ireland’s future economic growth and sustainability requires a vibrant and productive indigenous enterprise sector. Improvements in these companies’ innovative capabilities will allow them to grow, increase their exports and substantially improve their levels of employment. Enterprise Ireland’s primary focus is on helping indigenous small to medium enterprises (SMEs) to grow and the agency operates a suite of supports to assist SMEs in their research and innovation efforts.
Assistance is available to support all stages of a company’s development. In-company R&D supports via the Enterprise Ireland R&D fund supported over 100 projects valued at over €100,000 each in 2013. Innovation Vouchers are €5,000 vouchers that mainly support small companies to engage in initial research projects with academic researchers. In this way experienced researchers can perform the R&D on behalf of small companies while these companies receive a useful commercial output and a first step on the innovation ladder. Over 500 such projects are completed every year. Approximately 60 large industry-academic collaborative projects (up to €200,000) known as Innovation Partnerships are supported annually. In addition, Enterprise Ireland fund industry focused Technology Centres with over 300 member companies at present and the Technology Gateways programme which generates over 200 collaborative research projects completed for industry each year to provide interfaces between the academic research community and companies in Ireland. Information on all supports for research and development is available on the Enterprise Ireland website – www.enterprise-Ireland.com.
The Action Plan for Jobs 2014 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. Research and development support programmes and initiatives are critical in supporting Irish businesses in order to drive growth, sustainability, exports and job creation. My Department and its enterprise agencies will continue to promote the application of research, development and innovation to gain competitive advantage and to build on the strengths that have emerged from the investment to date in Science, Technology and Innovation.
Improving access to finance is a key pillar of The Action Plan for Jobs. The right mix of available funding solutions is essential in fostering increased investment in research & development and innovation by small companies. The Government’s SME funding initiatives that include the introduction and improvement of the SME Loan Guarantee Scheme, the launch of MicroFinance Ireland, the continued availability of the Innovation Vouchers scheme along with increased investment in the Seed & Venture Capital is having a positive impact on the funding landscape and gives confidence in particular to smaller companies to access funding and take advantage of the range of state supports for research and development.
