Written Answers Nos. 109-130
109. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation his views on whether it is appropriate for the chief executive of the Industrial Development Agency Ireland to laud Ireland's low pay as a selling point for multinationals. [17470/14]
View answerI have not seen any of the comments to which the Deputy could be referring to. IDA Ireland competes globally for high quality mobile foreign direct investment (FDI). There are now a growing number of global locations that are competing for mobile investments including Asia Pacific and Eastern Europe on the basis of low costs but also future market potential. The effect on Ireland now is that we are competing for a bigger pool of investment but against an increased number of potential locations with attractive product offerings.
Cost competitiveness is a key factor particularly related to property and construction costs, energy costs, wages and salaries, local authority charges and services where competition may be limited. Continued flexibility in responding to changes in both local and international economic conditions is essential.
The report of the National Competitiveness Council “Costs of Doing Business in Ireland 2014 Report”, which was launched just two weeks ago shows that Ireland’s cost base has improved across a range of metrics over the last number of years making Irish firms more competitive internationally and thereby making Ireland a more attractive location for firms to base their operations. However, the Report also finds that, despite these improvements, Ireland is still a high cost location for a number of key business inputs.
Taking labour costs as an example, labour costs are rising again following a number of years decline. Although growth in labour costs is now below the Euro area average, gross earnings are the 8th highest in the Euro area while net wages are the 6th highest.
The importance of wage competitiveness in future economic development is illustrated by the status of the Manufacturing Sector in Ireland. In light of the serious decline in employment in that sector over recent years, with 50,000 jobs having been lost in the decade to 2010, I arranged for Forfás to undertake an in-depth study of Manufacturing in Ireland and I launched that Strategy early last year. A very wide range of issues and solutions were identified and analysed, including an assessment of various cost competitiveness factors for the sector. The study found that average pay levels in Ireland were higher than those in Germany and the UK and that hourly labour costs for Manufacturing were almost 50% more expensive here than in the UK. Further recent research shows that there has been a decline in labour costs in the years since 2009 but this trend is now being reversed with recent growth over the last year or so. Our Manufacturing Strategy has set an ambitious target of creating an additional 20,000 jobs in this sector by 2016 but we need to be mindful of the significant impact that our labour cost competitiveness will have in achieving this target.
While Ireland’s competitiveness has improved in recent years, we must continue to do more, to ensure that these competitiveness gains are not eroded as the economy begins to recover and that we continue to address the structural imbalances which had built up over the lifetime of the previous Government. Ireland’s continued success in attracting foreign direct investment requires a clear focus on improving and enhancing the national competitive environment, easing the impediments to business investment and encouraging job creation.
110. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation his views on whether the moneys spent by Enterprise Ireland and other such agencies justify the level of jobs created. [17471/14]
View answerI believe the Agencies under the aegis of my Department, Enterprise Ireland (EI), IDA Ireland and the CEB network, are performing very well in a challenging environment. They are driving a vital transition from an economy founded on property to one built on enterprise, exports and innovation. Their impact is measured by the gross job creation in enterprises supported by them, the net job movements across their portfolio as well as numerous agency specific key performance indicators which are regularly published. I am encouraged by the progress across almost all of these indicators at a time of declining staff in these Agencies.
As part of our overall strategy to have 100,000 people at work by 2016, under the 2014 Action Plan for Jobs IDA Ireland, Enterprise Ireland and the new Local Enterprise Offices, which from today will replace the CEB network, have been tasked with supporting a total of 30,500 direct new jobs during 2014. Enterprise Ireland will target the creation of 13,000 new fulltime permanent jobs in 2014. IDA Ireland will also target 13,000 new gross jobs in 2014 and work to win another 155 new FDI investment projects, with 20% of those from growth markets. In addition, a further 10,000 jobs (6,000 direct and 4,000 indirect) will be created over a five-year period through the recruitment of extra staff for IDA overseas.
In the past year, overall employment increased by 3.3% in year to Q4 2013. 2013 was the first year where every region demonstrated employment growth and there has been an increase of more than 1,200 jobs per week in the private sector compared to more than 1,600 per week being lost between 2008 and 2010.
The Forfás Annual Employment Survey 2013 shows employment in Enterprise Development agency-assisted companies at 303,155, an increase of 8,579 jobs in total permanent full-time employment. There was also an increase in part-time employment of 3,827 jobs to 46,167 in the same year. This continues the trend in positive employment growth since 2011.
Enterprise Ireland client companies are key contributors to the Irish economy and in 2012, spent €18.9bn on wages, services and materials sourced in Ireland. The Agency’s clients are vital components of the supply chains of many sectors and provide sub-supply opportunities for local businesses. For example, client companies in the Agri-Food sector process the produce of approximately 140,000 family farms annually. This impacts positively on local business by creating new opportunities for sub-supply, distribution, professional services, local domestic services etc. as part of the multiplier factor.
In 2012, IDA Ireland client companies also had a significant impact on the Irish economy, accounting for: €120.8bn of exports; €2.8bn of corporation tax; €1.3bn expenditure on R&D, and €20.8bn spend in the Irish economy comprising €8bn on payroll, €2.4bn on Irish materials, and €10.4bn on Irish services.
The total value of grants paid by Agencies of my Department in the years 2011-2013 amounted to €641m. This comprises €268m by IDA, €313m by Enterprise Ireland, €42m by the CEBs and €18m by Intertrade Ireland.
The Forfás Annual Business Survey of Economic Impact (ABSEI), which covers the period 2003–2012, shows that client companies of the Enterprise Development agencies reported a rise in sales and exports in 2012. Direct expenditure in the Irish economy in terms of payroll and purchases of Irish materials and services produced in Ireland increased by 3.8% to approximately €40.8bn in 2012. The results of this most recent survey show that the enterprise agency client companies continue to make a significant contribution to the Irish economy. Data for the most recent full year available, 2012, show that it was a successful year overall for enterprise agency client companies with increases in all the main economic indicators. Sales increased by 4.4%, exports by 5.1%, value added by 3.6% and direct expenditure to the economy increased by 3.8%.
These figures demonstrate the significant and positive contribution that both indigenous exporting companies and foreign-owned companies are making to the growth of the Irish economy. Considering that they have been achieved in the teeth of a serious recession, this news is particularly encouraging.
111. Deputy Patrick O'Donovan asked the Minister for Jobs, Enterprise and Innovation if consideration will be given to the development of asset inventories and matrices for towns across the country as a support and marketing tool to encourage inward investment into regional towns; and if he will make a statement on the matter. [17307/14]
View answerThe 2014 Government Action Plan for Jobs 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.
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 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.
112. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the way Enterprise Ireland and the Industrial Development Agency Ireland supported companies can be encouraged to develop greater links with other local businesses and training facilities to support the wider economy; and if he will make a statement on the matter. [17459/14]
View answerUnder the 2013 Action Plan for Jobs, IDA Ireland and Enterprise Ireland are working together to leverage the linkages between Irish owned and Foreign owned enterprises in Ireland through, for example, the Global Sourcing Initiative which targets increased purchases by FDI companies in Ireland. IDA Ireland client companies purchased a total of €12.745bn worth of goods and services in the Republic of Ireland in 2012: comprising €2.364bn of materials and €10.381bn of services.
IDA and Enterprise Ireland continue to work closely together on a number of joint initiatives to strengthen linkages between indigenous and multinational enterprises. This includes active engagement to assist appropriate indigenous companies to optimise supply chain business opportunities presented by the MNC community. This engagement will be overseen by a joint EI/IDA Senior Management Team. An example of the linkage between indigenous and multinational enterprises is the target to progress the implementation of the Global Sourcing Strategy across EI and IDA to increase global sourcing sales by EI client companies by €100m over three years and €30m in 2014 alone.
Later this month, the 31 Local Enterprise Offices (LEOs) throughout the country will be launched. The LEOs represent a transformation of the support structure for micro and small enterprises across every county. The new service means that national enterprise policy and local business supports have been brought together to strengthen the local business culture and environment, combining the best of the former County and City Enterprise Boards and the Local Authorities, overseen by the Centre of Excellence in Enterprise Ireland.
Action 177 of the Action Plan for Jobs 2014 mandates my Department, EI and IDA Ireland, to develop a framework for a Regional Enterprise Strategy to better integrate and develop new ways of working, further collaborations and enhance the efforts and activities of these agencies and the other regional stakeholders, including 3rd level and other education and training providers, in building enterprise based on sustainable competitive advantage of the region. Regional towns as the drivers of regional economies will obviously be central to the development of these strategies to further enhance the activities of the agencies and the new LEO network across the regions.
113. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the actions being taken to support the economy of the Border region through the North-South Ministerial Council; and if he will make a statement on the matter. [17457/14]
View answerNorth South economic co-operation and the development of the border region continues to be a priority of mine and of the Government. To this effect, there is on-going dialogue between relevant Ministers and officials, North and South, to promote economic development, job creation and innovation on a cross-border basis.
The role of the North-South Ministerial Council (NSMC) is to develop consultation, co-operation and action on an all-island basis to the mutual benefit of the two administrations, North and South. I attend NSMC meetings both in Plenary format – involving a wide group of Ministers from both administrations – and also in Trade and Business Development Sectoral format. In the sectoral meetings I engage with my counterpart, Ms. Arlene Foster MLA, Minister for Enterprise, Trade and Investment in the Northern Ireland Executive. I will continue to pursue relevant and appropriate initiatives through the NSMC, as it represents a very useful forum to assess issues affecting enterprise and business in the border countries and to drive cross border economic development.
The work of InterTradeIreland is central to discussions at NSMC sectorals. The Body, which is co-funded by my Department and by the Department of Enterprise, Trade and Investment (DETI) in Belfast, initiates a wide range of enterprise development programmes that are tailored to the specific needs of companies throughout the island that want to increase their export and innovation potential.
In addition, my Department works closely with our counterparts in DETI, both through bilateral dialogue and also through the offices of the NSMC. This allows key issues affecting the development of cross-border trade to be examined.
Other relevant initiatives include the current EU INTERREG Programme, which my Department co-funds, which also contributes to the development of the economy of the border region. To date 29 enterprise-themed projects based in the border counties have been approved. These projects included initiatives to address barriers to trade faced by micro-enterprises in border counties, assisting with market entry support, developing cross-border linkages, business support mentoring, capacity building for SMEs, schemes for assisting specific enterprise sectors, the provision of two Enterprise Centres and the provision of two major Science Parks.
Work is underway in devising the structure of the next strand of the INTERREG Programme for the period up to 2020, and my Department is involved in that process.
In addition close co-operation has been established between Invest Northern Ireland and Enterprise Ireland on a range of specific projects and issues. Network groups such as the Irish Central Border Area Network, the North West Region Cross Border Group and East Border Region Ltd. also have been very active in helping enterprise development in the border region.
It is my intention to continue to pursue relevant and appropriate initiatives for the development of the all-island economy, including the border region, through the North South Ministerial Council and through other mechanisms as appropriate.
114. Deputy Éamon Ó Cuív asked the Minister for Jobs, Enterprise and Innovation the steps he has taken to ensure that all areas of the country enjoy a growth in employment; the success of his strategy; and if he will make a statement on the matter. [17308/14]
View answerThe Action Plan for Jobs is the Government's key policy instrument to assist job creation. Its aim is to support enterprises to create employment throughout the whole of the country and in all regions. The 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.
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 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. 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.
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, in 2014, to build on this progress.
115. Deputy Maureen O'Sullivan asked the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to any issues in relation to the evaluation of applications to the Enterprise Ireland competitive start fund; if he will confirm that all applications are thoroughly evaluated before awards are granted and that all scoring and evaluation is done in an open and transparent manner; and if he will make a statement on the matter. [17414/14]
View answerEnterprise Ireland offers a range of financial and non-financial supports to assist companies through all stages of the business development cycle. Enterprise Ireland’s Competitive Start Fund (CSF) is aimed at accelerating the development of High Potential Start-Up companies (HPSUs) and creating a strong pipeline of HPSUs. Enterprise Ireland piloted the CSF in 2011 to provide early stage companies with critical funds to test the market for their products and services and progress their business plans for the global marketplace.
Calls under the CSF occur frequently and are widely publicised. There were five separate calls during 2013 and a similar number of calls are planned for this year. The CSF calls attract a very high number of applications and to date Enterprise Ireland has received 1,950 applicants and has funded 227 companies.
The CSF application process is designed to be fast and efficient to allow new start-ups to concentrate on validating their business concept and getting to market entry stage as quickly as possible. Applications for CSF funding are made through an on-line format. The on-line format also allows applicants to include additional relevant supporting information including a video pitch and relevant web-links. However, this additional information is not scored and in some cases may not be considered by the evaluators, if they feel that the body of the application provides sufficient information to make an informed judgement on the application.
The evaluation of applications involves a two-stage process with all applications thoroughly evaluated and then scored by EI Development Advisors and external assessors. The external assessors are professionals who are required to have experience of technology start-ups and also relevant sectoral expertise. The assessors are appointed on the basis of an open call for tender and the tender remains open for applications at www.etenders.ie.
Each application under the CSF is evaluated and scored on the following basis:
|
Evaluation Criteria |
Weighting |
|
Company and Promoter Profile |
25% |
|
Product/Service & Market Opportunity |
25% |
|
Execution of the Business Plan |
25% |
|
Product/Service Innovation |
15% |
|
Ability to deliver key Commercial & Technica |
10% |
|
Milestones over the coming 12 months |
- |
Depending on the number of applications per call up to 30 of the highest scoring projects proceed to the second stage of evaluation which involves a live “pitch” and an interrogation by a panel that includes experienced entrepreneurs and Enterprise Ireland managers. The evaluation panel scores the applicant’s performance based on responses to the following, equally weighted, questions:-
- What specific need does your product/service address? Why would someone be "compelled" to purchase your offering?
- What is it about you and/or your management team that makes you capable of executing on this business plan?
- What would be the impact of €50K on the execution of this business plan?
Depending on the number of applications on a given call up to 15 of the highest scoring projects from this stage are each offered a €50,000 investment from Enterprise Ireland for a 10% ordinary equity shareholding in the business.
In general Enterprise Ireland does not provide applicants with details of their projects’ scores, however, applicants are provided with an indication as to a project’s comparative ranking and quartile placing. Enterprise Ireland also offers feedback to all unsuccessful applicants to ensure that they can have a clear understanding of why a project was unsuccessful and also direct applicants to other appropriate supports. These features of the process provide applicants with a level of feedback which may allow them enhance their bids in further calls under the CSF or to avail of other business supports.
Since the launch of the CSF Enterprise Ireland has received only a small number of queries from unsuccessful applicants relating to the evaluation process or its transparency. Enterprise Ireland is, of course, always available to engage with applicants under the CSF to discuss any aspect of their application.
116. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation if there has been any engagement between his Department and the housing section of the Department of the Environment, Community and Local Government in view of the concerns of the negative impact that the lack of availability of suitable housing in a number of locations, such as County Galway, may have on the ability to attract new companies from overseas and also to enable the expansion of existing indigenous and multi-national companies; and if he will make a statement on the matter. [17479/14]
View answerMy Department engages with the Department of the Environment, Community and Local Government on a regular basis regarding policy issues under the remit of that Department that impact on enterprise development. To date, the issue of housing supply is not one that has been raised by the agencies under the remit of my Department as a potential barrier to enterprise development and the monitoring of the supply of housing is a policy matter for the Minister for Environment, Community and Local Government.
117. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation his views on whether the credit guarantee scheme provides good value for money for the firms participating in it; and if he will make a statement on the matter. [17464/14]
View answerThe SME Credit Guarantee Scheme (CGS) was launched in October 2012 in response to numerous calls from business interests. It is a novel Scheme in an Irish context which is continuing to develop a position in the Irish financial arena. As of 4th April 2014 the CGS has eighty-six live facilities resulting in €11.6m being sanctioned through the scheme by the participating lenders resulting in 446 new jobs being created and 296 jobs being maintained.
To avail of the SME Credit Guarantee, a borrower pays a 2% annual premium which partially covers the cost of providing the guarantee. The premium is collected annually or quarterly in advance throughout the three year life of the guarantee based on the annual contracted principal balance. This is to comply with EU State Aid requirements.
The Scheme is subsidised by the Government to facilitate additional transactions that would not otherwise have taken place. The availability of the guarantee makes the difference between the borrower not being able to obtain a loan and obtaining the loan.
The State Aid Regulations provide two alternative approaches to premium pricing in respect of loan guarantees, with guarantees able to be priced individually or on scheme-wide basis. For simplicity the latter alternative was recommended and chosen.
Recognising the current situation of the SME lending market in Ireland, it is difficult to justify making the case for a Premium Rate any lower than 2% and hence the Oireachtas decided to apply that rate.
My Department is currently working on changes that can to be made to the Credit Guarantee Act 2012, and the contents of a new Credit Guarantee Scheme, on foot of the independent review which I commissioned last year to make the Scheme more attractive and user friendly to business. This complex work is progressing as quickly as is practicable. I will ensure these legislative changes are made in 2014 as I have committed to do under the Action Plan for Jobs 2014. I will implement the review recommendations, as appropriate, with a view to enhancing the up-take and impact of the Scheme as soon as possible.
118. Deputy Pat Deering asked the Minister for Jobs, Enterprise and Innovation the reason there is so little investment in the south east in view of the fact that it is such an unemployment black spot, especially for young persons; and if he will make a statement on the matter. [17306/14]
View answerI am very conscious that there are quite specific, deep rooted, and long standing challenges facing the South East region – it consistently has a high level of unemployment and also has fared badly on other economic indicators. However it is incorrect to assume that a lack of investment in the region is now a significant factor.
Over recent years there has been a wide range of significant investment in the South East region. This includes the provision of major road infrastructure, with the completion of the M9 motorway, the N25 Waterford city By-pass and the new Suir river crossing. Other significant items include additional water and waste water treatment capacity, provision of extensive broadband, major urban renewal works in Waterford city, extra facilities for Bellview Port and major educational investment, with Waterford Institute of Technology alone having invested €150m over the last 10 years in capital projects. Many other smaller scale investments to enhance facilities and capacity have also been carried out in the region.
Following the closure of the Talk Talk Call Centre, in 2011, I commissioned Forfás to undertake a comprehensive analysis of the region - the South East Region Employment Action Plan. To pursue implementation of the Action Plan, I initiated the South East Forum, comprising the State agencies and other bodies, working together to maximise benefits for the region. I have visited the region several times since taking office and I chaired meetings of the Forum in Waterford City, where I spoke to many of the key stakeholders and learned at first hand of the many challenges facing its economic development.
I am very pleased that the two main Development Agencies have achieved notable successes over the last few years. Enterprise Ireland (EI) has worked closely with the new EISTECH Call Centre, which now employs 500 staff in Waterford and 250 staff in Wexford. By this Summer the company have stated that they expect these numbers to have risen to 600 in Waterford and 350 in Wexford, as they secure new contracts. EI has also supported a major investment by Glanbia in Belview on the Kilkenny-Waterford border, which will provide 1,600 direct and indirect jobs, as well as an additional 450 jobs created during the construction phase. In addition, EI has supported new job creation by Dawn Meats in Waterford and Danone Baby Nutrition in Wexford.
In relation to the work of IDA Ireland, that Agency had two notable successes last year. In February 2013, Sanofi announced plans to invest €44m in Genzyme’s biotechnology campus in Waterford. This investment will increase the site’s diversity of products and comes on top of a €150m investment a little more than a year previously. The investment ensures that the Waterford facility, which currently employs approximately 500 people, can produce the company’s latest products and provides an indication of the Waterford site’s value to the company. In March 2013, Nypro Healthcare announced plans to establish an additional state of the art medical devices facility in Waterford. This will result in the creation of over 200 new high quality jobs in the coming years.
Furthermore, in order to improve the offering in the Region to win new business, IDA Ireland has signed contracts for the construction of an advanced manufacturing facility in Waterford. This facility, which will be 2,348 sq metres in area, will be located in the IDA Technology Park at Butlerstown and will be completed by year end.
In relation to site visits by prospective foreign companies, that Agency arranged a total of 107 site visits to the South East region over the last five years.
In addition, the local County Enterprise Boards have been very active in developing micro-enterprises and have created a significant number of jobs over recent years.
Regarding actual unemployment levels, it is very satisfying that significant progress has been made. The latest data from the Central Statistics Office show that an additional 15,000 jobs have been created in the region during 2013, resulting in the unemployment rate having dropped from 18.8% to 15.5% in the last year alone. While the region still has the highest unemployment rate in the State, the gap between this rate and the national average is narrowing.
All the key State players have been actively pursuing initiatives to facilitate development and job creation in the South East region, and with continued co-operation and collaboration, it is hoped that real benefits will continue to be achieved for the region.
119. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he expects to achieve targets in respect of job retention and job creation in the current year; the extent to which job creation targets as predicted by IBEC are likely to be achieved; if he has identified any particular issues likely to impact on performance in this regard; and if he will make a statement on the matter. [17472/14]
View answerWhen the Government published its first Action Plan for Jobs in 2012, it set a target of supporting the creation of 100,000 net new jobs by 2016 by transforming the operating environment for businesses in Ireland. This multi-annual target continues to be the focus of the Action Plan for Jobs.
The most recent Quarterly National Household Survey figures published by the Central Statistics Office show that we are making progress towards the Action Plan for Jobs target. In Quarter 4 2013, the number of people in employment increased by 61,000 year-on-year, net of reductions in the public sector. This was the fifth quarter in succession where employment grew on an annual basis.
Employment increased in 10 of the 14 economic sectors, including Agriculture, Tourism, and Professional and Scientific activities. All of these areas are a focus for the Action Plan for Jobs. Before this Government came into office, the economy was losing an average of 1,600 jobs per week. However, based on the policies the Government has pursued in fixing the banking system, stabilising the public finances and focusing on employment, we are now seeing an average of 1,200 jobs being created each week in the enterprise sector.
I am aware that IBEC has predicted a positive year for jobs growth in 2014, and has estimated that 50,000 new jobs will be created this year. The ESRI has also forecast a similar level of jobs growth in its latest Quarterly Economic Commentary.
While these independent forecasts are encouraging, the Government is very much aware of the fact that, as a small open economy, Ireland is very sensitive to global developments. However, the Government’s objective is to build a competitive and sustainable economy based on enterprise, innovation and exports across a range of sectors. We are doing this through the Action Plan for Jobs process, which this year places a particular focus on supporting entrepreneurship and improving competitiveness.
120. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation the number of Industrial Development Agency Ireland visits to County Donegal in 2013 in quarter 1 of 2014; the number of confirmed visits for the remainder of 2014, together with his plans on the way his Department is actively encouraging companies to relocate in County Donegal; his further plans to increase the level of IDA Ireland grant aid given to FDI companies who locate in County Donegal; and if he will make a statement on the matter. [17475/14]
View answer123. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation if the Industrial Development Agency Ireland has delivered on assurances which his Department received from IDA Ireland that it would in 2013 seek to target more than 130 new investments, secure €500 million of research and development expenditure and create 13,000 new jobs in its client companies; the element of new investment, research and development expenditure and new jobs that related to County Donegal; and if he will make a statement on the matter. [17474/14]
View answerI propose to take Questions Nos. 120 and 123 together.
2013 was one of the best years in recent times for the attraction of foreign direct investment (FDI) and the creation of jobs in IDA Ireland client companies. During the year a total of 13,367 new jobs were created in IDA Ireland client companies and 164 investments won thereby exceeding the targets set out in the Action Plan for Jobs 2013. Of the 164 investments won, 78 came from companies investing in Ireland for the first time, with 59 expansions and 27 Research, Development and Innovation projects. R&D capital investment remains very strong and in 2013, IDA Ireland achieved 93% of the target of R&D investments. This is a strong performance given the general market caution for large capital projects which includes significant R&D activities. R,D&I remains significantly important to Ireland’s FDI landscape embedding existing employment and putting in place the framework for future employment creation. There are now over 166,000 people directly employed in IDA Ireland client companies nationwide, the highest number in the history of the agency.
There are 13 IDA Ireland-supported companies in Donegal employing 2,381 people in full and part time employment in Software Development, Systems Development and the Medical Technology industry. In 2013, 177 new jobs were created in Donegal. Companies such as Pramerica and UnitedHealth (PacifiCare) which have located in County Donegal are continuously growing and recruiting. IDA Ireland actively engages with its existing base of companies in Donegal, highlighting the ongoing importance of upskilling/reskilling and the need to add high value activities in order to ensure sustainability and ongoing development.
I am informed by IDA Ireland that during 2013 there were seven IDA Ireland sponsored site visits by potential investors to Co. Donegal and two such visits in the first three months of 2014. Donegal’s industry base is transforming from the clothing and textile industry into high tech, high skill activity and IDA Ireland actively promotes Donegal as a successful location for high-end manufacturing mainly to companies in the medical technologies sector. In addition to boost regional development in the area and win new business IDA Ireland has announced its intention to erect a new office facility in Letterkenny.
Another focus for IDA Ireland in Donegal is the designated linked Gateway of Letterkenny/Derry. This focus involves developing stronger economic links with Invest Northern Ireland, which includes initiatives like the North West Business & Technology Zone (NWBTZ). The NWBTZ is aimed at promoting the linked Gateway of Letterkenny/Derry in line with the NI Regional Development Strategy 2025.
In regard to the level of grant aid payable by the enterprise development agencies under the Regional Aid Guidelines, my Department has issued the proposed Regional Aid Map for Ireland to the Commission for consideration and approval. It would be inappropriate to disclose the contents of this submission until such time as the Commission has finalised its consideration of the matter.
121. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation if he will consider fast tracking proposals to put a code of practice for the grocery industry on a statutory basis; and if he will make a statement on the matter. [17463/14]
View answerThe Competition and Consumer Protection Bill 2014 was published on 31 March, 2014, and one of its components provides for enabling regulations to regulate certain practices in the grocery goods sector.
It will be necessary to await the enactment of the Bill before I can determine what those draft Regulations should contain. However, Part 6 of the Bill contains a comprehensive indication of the range of activities which the draft Regulations may cover. It is my intention that Regulations will be introduced as soon as practicable after the Bill is enacted.
122. Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation if Enterprise Ireland is taking a sectoral approach to the airline industry and adequately taking into account the entire value to the economy of the sector when determining support and assistance in its operations; and if he will make a statement on the matter. [17305/14]
View answerEnterprise Ireland has, over the last number of years, taken a sectoral approach to the Airline industry. The Irish Aviation/Airline Industry accounts for approximately 3% of GDP with a direct gross value add of €5bn to the Irish Economy and employment of circa 18,000 people. In this regard, the Aviation/Airline sector is one of our most successful internationally trading sectors.
Against this background, Enterprise Ireland supports some 150 indigenous aviation companies with financial, technical, international sales and marketing supports. Key industry sectors include – air services, aircraft leasing, aircraft repair, aviation products and services, and manufacturing to Original Equipment Manufacturers (OEMs), for example, Boeing, Airbus and Bombardier.
In excess of 40% of the global fleet is leased or managed out of Ireland by a cluster of 30 lessors indirectly employing 2,000 staff. Enterprise Ireland works closely with an industry-led group to maintain competitiveness by looking at new innovation services in the areas of aircraft transitioning and the raising of aviation debt-financing in Ireland.
Ireland has a long tradition in aircraft maintenance and training that is recognised worldwide. Today, the aerospace industry in Ireland consists of some 250 Irish and foreign-owned companies. These companies provide line and base maintenance on a wide range of commercial airliners as well as overhaul of a range of engine types. These operations are supported by a number of specialist engineering service providers and component sub-supply companies. The effect of the whole is to provide a comprehensive support and maintenance service to a large number of international airline customers.
Ireland has a cluster of indigenous technology companies that develop products, systems and solutions for the aviation market. From avionics to in-flight entertainment systems, Ireland is home to a collection of successful, specialist companies providing solutions to the world’s airlines. Most Enterprise Ireland clients have focused on Tier 1 and Tier 2 sub supply or to be part of the development cycle of an aircraft.
The Deputy may be aware that, last Thursday, I launched a special €500,000 Enterprise Ireland Competitive Start Fund, targeted at stimulating new start-up business activity in both the Aviation and Manufacturing sectors. This Fund, which provides for up to €50,000 in equity support for each successful applicant, is now open for applications. The call closes on Wednesday 30 April 2014.The Fund will help start up and early stage companies to get off the ground and launch new products and services in the international marketplace. The priority of the Fund is to provide young companies in these sectors with the critical early stage funding for the key commercial and technical milestones that will ensure delivery of their product or service, and help them get their project to a key funding milestone.
124. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation his views on whether the EU-US negotiations on a transatlantic trade and investment partnership are sufficiently transparent; his views that the text of the EU's negotiating mandate and the initial position papers tabled by the EU should be published, in addition to other relevant documents; and if he will make a statement on the matter. [17416/14]
View answerUnder Article 207 of the Treaty on the Functioning of the European Union, the European Commission has the responsibility to negotiate trade agreements, in consultation with the Member States. The EU’s Trade Policy Committee is specially set up for that purpose and meets at least once a week to discuss the detail of all the EU’s trade negotiations, including the TTIP. This, together with technical and other meetings provides important communications structures underpinning transparency between the Commission and the Member States on all matters that come up for discussion in the negotiations. There is currently an issue around access by member states to the actual documents produced by the US side which I understand will be resolved shortly.
Wider stakeholder transparency is supported by the Commission in a number of ways, including stakeholder briefing sessions during and following each round of negotiations, and a dedicated TTIP website, which is very comprehensive and includes various documents and reports of the ongoing negotiations. It is worth noting that the European Ombudsman, Ms Emily O’Reilly, recently commended the level transparency and openness to stakeholder consultation of these negotiations. The website can be accessed at http://ec.europa.eu/trade/policy/in-focus/ttip.
The European Commission has also set up a special advisory group, which includes representatives from environmental, health, consumer, workers, business and NGO interests, to provide EU negotiators with high quality advice in the areas covered by the Transatlantic Trade and Investment Partnership negotiations. This forms part of the Commission’s commitment to outreach and transparency, to explain what is involved and to hear the widest possible views from civil society.
I would also draw your attention to the recently launched public consultation by the European Commission on the investment provisions of a future Transatlantic Trade and Investment Partnership. All stakeholders have the opportunity to respond to this consultation, so that specific interests and concerns on investor protection and settlement of related disputes are well understood by the European Commission, and can be used to better define the EU’s approach to investor protection in the TTIP negotiations. The public consultation can be accessed at: http://trade.ec.europa.eu/consultations. As regards the question of releasing the text of the EU’s negotiating mandate, the formal process falls under the EU Council’s rules for declassifying documents. This was discussed at the Foreign Affairs Council (Trade) on 18 October last, but it is not a straightforward issue, and it is not at all clear how declassification would best serve the overall negotiating interests of the European Union. But I remain open on this. The EU Commission has produced a useful factsheet on transparency in the TTIP negotiations, and this can be found at: http://trade.ec.europa.eu/doclib/docs/2014/march/tradoc_152276.pdf.
125. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the budget for the potential exporters division of Enterprise Ireland; the number of staff it employs; the way its work can be enhanced to support indigenous firms; and if he will make a statement on the matter. [17460/14]
View answerEnterprise Ireland’s Potential Exporters Division (PED) works with Irish companies that have the drive and ambition to grow their business by winning international sales. Exporting can help secure a company’s future, safeguard and grow Irish jobs, expose Irish businesses to a whole new world of ideas and see them competing and winning against the best in the world. The Potential Exporters Division has 10.5 staff (FTE) and provided €2.3m financial support to help Irish Companies break into export markets for the first time in 2013.
In addition to working directly with companies to enhance their export capability through the use of the full range of available supports, the PED holds “Export Awareness Events” and “Exploring Exporting Workshops” across the regions for new and early exporters to develop the tools and techniques needed to succeed in export markets. Enterprise Ireland (EI) is committed to helping companies strengthen their export readiness and export selling capabilities. EI offers customised training and access to experts, matched to a company’s level of export awareness to save time and money and increase their chances of export success.
The “Export Awareness Events” are workshops that are run regularly in a number of locations around Ireland and are aimed at companies thinking of exporting for the first time. In 2013, ten Export Awareness Events were held across the regions and a similar number will be held in 2014.
The Exploring Exporting Workshops are a series of workshops focused on helping first-time exporting companies become export ready. Topics include:
- conducting market research;
- defining the export value-proposition;
- advising on the processes for exporting and the exportable offer.
Business mentors are available to work with client companies to identify the issues they need to address to become export ready. In 2013, eleven “Exploring Exporting Workshops” were held across the regions and a similar number will be held in 2014.
The role of the PED continues to evolve to meet the needs of companies and the corresponding market opportunities. So far this year, EI have initiated a “Meet the UK Market Team” event to offer companies, making progress in developing their export capability and a market plan, to meet face-to-face with the EI UK market team. This allows these companies to gain insights into market specific opportunities and challenges relating to their business. Three of these events will take place in 2014, in Cork, Dublin and Galway with possible additional events being driven by client demand.
The new Local Enterprise Office (LEO) network, working seamlessly with EI, will enhance the reach of export capability building and other supports, and bring new opportunities to a wider number of new and existing businesses.
My Department continuously monitors the needs of Irish businesses to ensure that policy and programmes reflect their needs. My Department will continue to use the annual Action Plan for Jobs process as the key vehicle for implementing specific and practical measures to support indigenous firms and to continue to deliver on the Government’s commitment to job creation.
126. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation the measures he will put in place to address breaches of the 1993 EU working time directive in private nursing home care; and if he will make a statement on the matter. [17476/14]
View answerThe Organisation of Working Time Act 1997 sets out statutory rights for employees in respect of rest, maximum working time and holidays, including protections regarding nightly working hours. It also provides for a means of redress where an employee believes that his or her rights under the Act have been infringed.
Under the Organisation of Working Time Act (OWT) 1997, the maximum average working week is 48 hours averaged over four months. This means that the average working week of an employee must not be greater than 48 hours over a reference period that does not exceed four months. This legislation also covers daily and weekly rest period entitlements. The general provisions of the legislation provide that employees must receive 11 consecutive hours rest in every period of 24 hours. This means that there must be one 11 consecutive hours break between the time the employee ceases work and commences the next shift. A maximum of 8 hours working time in a period of 24 hours is permitted when a night worker undertakes night work. Breaches of these provisions are matters of complaint to a Rights Commissioner. However, for certain categories of employees, including employees involved in the provision of services relating to the treatment or care of persons in a residential institution, hospital or similar, there are exemptions from the rest break provisions and the nightly working hours provisions of the OWT, subject to the legal requirement to provide compensatory rest. These exemptions are provided for in S.I. No. 21/1998 Organisation of Working Time (General Exemptions) Regulations 1998.
The National Employment Rights Authority (NERA) has an inspectorate which is empowered to carry out workplace inspections to ensure compliance with a range of employment rights legislation, including certain provisions of the Organisation of Working Time Act. One of the sectors which NERA inspects is the health, nursing and childcare sector, which includes private nursing homes.
Where NERA inspectors come across breaches of employment rights legislation, including the OWT, they will advise the employer to rectify the issue, and will advise the employee of the appropriate means of redress. Breaches of the OWT are primarily a matter for the Rights Commissioner service. If an employee believes that his or her rights under the Act have been breached, he or she may make a complaint, in the first instance, to a Rights Commissioner. A Rights Commissioner may award compensation of up to 2 years pay. NERA’s powers to prosecute in respect of breaches of OWT relate to the record keeping provision, and the provision regarding instances where an employee has more than one employer.
Further information on the Organisation of Working Time Act and other employment rights, including means of redress, is available from the Workplace Relations Customer Service of NERA. This service operates from 9.30 a.m. to 5 p.m. on weekdays and can be contacted on Lo-Call 1890 808090. Workplace Relations Customer Service also provides extensive information on its website www.workplacerelations.ie.
127. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation the amount of business or industrial land held by Enterprise Ireland that is not currently occupied or in use; his views on whether the National Asset Management Agency could be a source of further suitable development land for Enterprise Ireland; and if he will make a statement on the matter. [17462/14]
View answerEI does not have any industrial land in its portfolio. In September 2008, the former EI Headquarters site at Glasnevin became vacant due to the relocation of the EI Dublin offices to East Point Business Park. Part of the site was transferred to Dublin City University to facilitate the development of an internationallyrecognised “Innovation Campus”. The remainder was transferred to the Department of Education and Skills.
128. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which innovation-technology has continued to contribute to national recovery with particular reference to the extent to which industry here has been in a position to access and avail of advances in this area; if he will outline the most important factors likely to affect growth in industry in the future and the means whereby any issues can be addressed; and if he will make a statement on the matter. [17473/14]
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, 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 newly established central Technology Transfer Office 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. Additionally, 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. 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 also 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 outlined in the Medium Term Economic Strategy, we need to continue to focus on improving our international competitiveness and upgrading our infrastructure. 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. 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. Continued innovation in products and services is crucial in building a competitive advantage and we are very much aware that cost competitiveness is a critical foundation of international competitiveness.
With 2014 being designated as the “Year for Jobs”, the Action Plan for Jobs this year continues 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.
129. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the actions that can be taken to address proposed cuts to pay and conditions for maritime workers in some companies operating on routes on the Irish Sea. [17402/14]
View answerIn accordance with international maritime law and practice, the terms and conditions of employment for seafarers, including statutory rates of pay on ships, is a matter for the flag state where the ship is registered and the internal domestic legislation of that Country. They are, therefore, outside the remit of my Department.
The terms and conditions of employees on Irish registered vessels are governed by the provisions of Irish law whether in Irish territorial waters or on the high seas. Accordingly, the protections of the full range of Irish employment rights legislation are available to such workers. In addition, the services of the industrial relations machinery of the State are available to assist parties where disputes arise in relation to terms and conditions of employment.
Primary responsibility for maritime policy rests with the Minister for Transport, Tourism and Sport. In this context, if a vessel is not registered in Ireland, it will still be subject to port State control inspections in Ireland by the Marine Survey Office of the Department of Transport, Tourism and Sport. Such inspections cover safety, environment protection and International Labour Organisation Conventions.
