Written Answers Nos. 1-29
12. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation the number of jobs supported to date by the venture capital fund; his plans to review the operation of the fund; and if he will make a statement on the matter. [29943/14]
View answerUnder the Seed and Venture Capital Scheme 2007-2012 a total of 14 funds were established which secured a total of €525m in external funding in addition to the commitment made by the State of approximately €175m. As of December 2013, there were 177 companies in receipt of investment under this scheme. They employed 2,244 and generated €250m in sales. Compared to the situation at the end of 2012, the fund supported 41 extra companies, 660 extra jobs and extra sales of €127m. This compares to a situation at the end of 2012 where 136 companies were in receipt of venture capital investment under the Seed and Venture Capital Scheme 2007-2012, had 1,584 people employed with total sales of €123,591,000, of which €83,236,000 were exports. This data excluded those investments made in companies where the VC latterly exited the investment.
The full economic potential of these investments is as yet unrealised and these seed investments have created a platform for future job creation. Furthermore, many of these companies where the VC has exited its investment will go on to grow organically or gain investment through other sources of finance continuing to generate economic activity and sustaining and creating jobs.
Under APJ 2012, a working group was established to ascertain the need for the State to continue its support, on the same terms as the private sector, for the development of the domestic VC Sector. This working group consisting of DJEI/EI and NPRF concluded there was a need for continued support and this led to the development of the 2013-18 SVC scheme. The continuation of the scheme was clearly justified by the strong performance of the existing fund in terms of companies and jobs but also its success in leveraging private capital to match the State’s investment. At its October meeting, the Board of Enterprise Ireland committed €99.5m of 2013-2018 funding to a number of Venture Capital Funds following the conclusion of an extensive and in-depth evaluation and due diligence process. No companies have yet received investment under the Seed and Venture Capital Scheme 2013-2018 as the Funds that received commitments under this Scheme are in the process of completing the fundraising. Once completed the Funds will close and commence investing in companies. The balance of the capital available under the Scheme will be committed to Venture Capital Funds to meet the overall objectives of the Scheme following further analysis and consultation on the needs of business. To this end, Enterprise Ireland issued a consultation exercise inviting interested parties to submit written views, observations, or suggestions to help inform it in identifying the sectors and company stages of development that should be targeted under future competitive calls for expressions of interest under the Seed and Venture Capital Scheme 2013-2018. This consultation period closed on 30 May 2014 and the submissions and other inputs are currently being considered in advance of formulating the criteria for the expressions of interest to be issued in the short to medium term.
The following revised reply was received on 18 July 2014:
Successive Governments have invested in the domestic venture capital sector over the last twenty years. This investment has sought to increase the availability of risk capital for SMEs to support economic growth through the continued development of the Seed and Venture Capital Industry in Ireland thereby achieving a more robust, commercially viable and sustainable sector.
The Government’s Seed and Venture Capital Schemes have sought to specifically encourage and leverage private sector and institutional capital into sectors (and stages of development) that find it challenging to secure appropriate growth funding.
Under the Seed and Venture Capital Scheme 2007-2012 a total of 14 funds were established which secured a total of €525m in external funding in addition to the commitment made by the State of approximately €175m. As of December 2013, 219 Irish companies were reported to have received investment from funds in receipt of commitments under the Seed and Venture Capital Scheme 2007-2012.
Adjusting for companies that are in receipt of venture capital investment from more than one fund and those where the Venture Capital Fund (VC) has exited its investment there were 170 companies in receipt of investment under this scheme in December 2013.
At year-end 2013 these 170 companies employed 2,165 and generated €247,216,000 in sales, of which €173,235,000 were exports.
This compares to a situation at the end of 2012 where 136 companies were in receipt of venture capital investment under the Seed and Venture Capital Scheme 2007-2012, had 1,584 people employed with total sales of €123,591,000, of which €83,236,000 were exports. This data excluded those investments made in companies where the VC latterly exited the investment.
The number employed includes a large number in very early stage companies. The full economic potential of these investments is as yet unrealised and these seed investments have created a platform for future job creation. Furthermore, many of these companies where the VC has exited its investment will go on to grow organically or gain investment through other sources of finance continuing to generate economic activity and sustaining and creating jobs.
A number of the funds established under the 2007-2012 Scheme are still investing in companies. The level of investment broken down by sector and region will be released on the occasion of the publication of the Seed and Venture Capital Report 2013 by Enterprise Ireland shortly.
The launch of the first call for expressions of interest under the Seed and Venture Capital Scheme 2013-2018 was a key Action Plan for Jobs target for 2013. The call was successfully launched on 31 May 2014 aligned with the end of the majority of investment periods of Funds supported under Seed and Venture Capital Scheme 2007 – 2012.
At its October meeting, the Board of Enterprise Ireland committed €99.5m of 2013-2018 funding to a number of Venture Capital Funds following the conclusion of an extensive and in-depth evaluation and due diligence process.
No companies have yet received investment under the Seed and Venture Capital Scheme 2013-2018 as the Funds that received commitments under this Scheme are in the process of completing the fundraising. Once completed the Funds will close and commence investing in companies.
The balance of the capital available under the Scheme will be committed to Venture Capital Funds to meet the overall objectives of the Scheme following further analysis and consultation on the needs of business.
To this end, Enterprise Ireland issued a consultation exercise inviting interested parties to submit written views, observations, or suggestions to help inform it in identifying the sectors and company stages of development that should be targeted under future competitive calls for expressions of interest under the Seed and Venture Capital Scheme 2013-2018. This consultation period closed on 30 May 2014 and the submissions and other inputs are currently being considered in advance of formulating the criteria for the expressions of interest to be issued in the short to medium term.
This fund is working well and I am satisfied that the parameters and criteria that govern the Seed and Venture Capital Scheme 2013-2018 do not need to be updated as this time. I am, however, cognisant at fund managers are operating in a very competitive fundraising environment and it is important that we continue to monitor domestic and international developments and reflect them, where appropriate in future expressions of interest under the scheme.
13. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation the number of staff currently employed in NERA; his plans to increase that number and particularly to strengthen the numbers and powers of those working the inspectorate-investigating division. [29854/14]
View answerIn line with Government policy to reduce the overall staffing numbers in the public sector, staffing levels of my Department, its offices and Agencies, including NERA, are managed within the context of challenging staff reduction targets contained in the employment control framework managed centrally by the Department of Public Expenditure and Reform. Staffing of all business units is managed in that context, utilising available resources in the most effective and efficient manner as appropriate to business needs.
At end-January 2014 there were 795 FTE staff in DJEI, of which 101.43 full-time equivalents (FTE’s) were assigned to NERA. This represents a significant commitment of resources by the Department to maintaining the standard of service by NERA in an effective and efficient manner. This includes a team of fifty seven inspectors, including seven managers. Two of these inspectors are assigned other duties.
As the Deputy may be aware, I am currently implementing a programme to reform the State’s existing workplace relations structures. My objective is to deliver a world-class workplace relations service which is simple to use, independent, effective, impartial, cost effective and provides for workable means of redress and enforcement, within a reasonable period of time. A new two-tier Workplace Relations structure will be established comprising two statutorily independent bodies replacing the current five (including NERA). We will have a new single body of first instance to be called the Workplace Relations Commission (WRC) and a separate appeals body, which will effectively be an expanded Labour Court.
A significant amount of work has been completed on the preparation of the legislation which will give statutory effect to the new structures and associated processes. The Workplace Relations Bill will provide for a robust consolidated restatement of the powers of NERA inspectors that are currently provided for across a range of enactments dating back to 1946. The restatement of the powers of the inspectorate will provide a unified and strong statutory basis to all aspects of its work as part of the WRC, including the detection and, where necessary, the prosecution of employers who fail to comply with their statutory employment rights obligations to workers.
The Bill will also provide the inspectorate with a range of new and effective enforcement measures, including Compliance Notices and Fixed-Payment Notices. I am confident that the introduction of these measures will provide for more proportionate, efficient and effective enforcement of employment law.
14. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation the developments regarding mechanisms to allow former employees access the State's industrial relations machinery to deal with pension issues. [29855/14]
View answerI am informed by my colleague, the Minister for Social Protection that any consideration of a restructure of pension scheme benefits under section 50 of the Pensions Act must comply with the provisions in the Pensions Act and with guidance issued by the Pensions Board. This guidance makes provision for the notification of all pensioners in advance of any application to the Pensions Board to restructure scheme benefits. In such circumstances a pensioner will have at least one month to make a submission to the trustees of the scheme in relation to such a proposal. The Pensions Board must be satisfied that all the provisions in the guidance are complied with before the Board will consider issuing a notice to restructure scheme benefits. It is important to note that the trustees of a pension scheme are required to act in the best interests of all the members. On that basis, the trustees have to take account of the interests of the deferred and pensioner members in any restructuring proposals they make.
The question of whether it is appropriate that pensioner groups have access to the State’s industrial relations machinery in pursuing pension scheme grievances has also been raised for consideration. Officials from my Department and the Department of Social Protection have held discussions to explore the issue of retired persons’ collective representation with the Trustees of the Pension Schemes of which they are members and, perhaps more problematically, with former employers where changes to the scheme are being negotiated between employers and employees that may impact on retired persons.
My Officials have also consulted with the industrial relations bodies under the auspices of my Department on the issues that arise in the context of collective representation of retired and deferred members of pension schemes in such circumstances. In this context, issues that arise include;
- the relationship, if any, between pensioners or deferred pensioners and their former employer. In this context, the relationship is with the pension scheme and by extension with the trustees of the scheme, rather than the employer;
- the representativeness of such groups and whether they have a mandate or mechanisms to conclude a collective agreement.
15. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation the number of IDA Ireland visits to County Donegal in 2013 and quarters 1 and 2 of 2014; the number of confirmed visits for the remainder of 2014; the way his Department is actively encouraging companies to relocate to County Donegal; his plans to increase the level of IDA Ireland grant aid given to foreign direct investment companies who locate in County Donegal; and if he will make a statement on the matter. [29851/14]
View answerI am informed by IDA Ireland that during 2013 and to date in 2014 there were a total of 10 IDA sponsored site visits by potential investors to County Donegal. These site visits were from new companies visiting the location for the first time and from senior executives of existing companies.
There are many complex factors influencing investor location decision-making such as the increasing preference of investors globally for cities of scale with 1 million plus population, significant challenges from lower cost locations in the UK and Eastern Europe and attractive regional aid. Because of the complexities involved in putting together an itinerary for a potential investor, IDA Ireland does not comment on upcoming visits by clients.
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. Today 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. 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 should also point out that some investment and job creation projects in client companies are not simply not announced.
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 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.
In regard to the level of grant aid payable by the enterprise development agencies under the 2014 to 2020 Regional Aid Guidelines, all Irish areas designated for Regional Aid have the same aid rates. Those rates are 30% for small companies (under 50 employees), 20% for medium sized companies (50 to 249 employees) and 10% for large companies. A Revised Regional Aid Map came into effect on 1 July 2014. The provision of State aid to enterprises in the most disadvantaged areas of the country is an important part of the Government’s jobs strategy.
16. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation when Knowledge Transfer Ireland will be established; the targets that have been set for it; and if he will make a statement on the matter. [29939/14]
View answerKnowledge Transfer Ireland (KTI) was formally launched on 28th of May 2014. KTI is hosted in Enterprise Ireland and now operates as Ireland’s central point of reference for business-research partnership and commercialisation. It will act as a neutral space to support interactions between companies and higher education institutions.
The aim of KTI is to support the State in maximising the economic and societal benefits from Ireland’s investment in public research by making it easy for business and investors to access the intellectual assets in Ireland’s Universities, Institutes of Technology and other publicly funded research institutions. The ultimate objective of this initiative is to enable companies of every shape and size to become more innovative and competitive leading to new products and services, company growth and job creation. These aims will be achieved by providing a fully integrated, streamlined, predictable knowledge transfer system for Ireland by standardising processes and providing practical resources.
Central to the KTI service offering is its unique web resource - www.knowledgetransferireland.com - which offers companies for the first time:
- A comprehensive overview of the research capabilities of all Irish Universities, Institutes of Technologies and specialist research centres in one place;
- Searchable databases of research expertise and talent;
- Details of over 160 pre-commercial technologies developed by research performing institutions which are available to license;
- A series of practical guides and model agreements on engaging with the research sector; and
- Access to all patents filed by Ireland’s publicly-funded research institutions.
The targets set for KTI derive from the national Intellectual Property (IP) Protocol published in 2012 and are articulated in the Action Plan for Jobs 2014 as follows:
- Action 124: Launch the central technology transfer office (Knowledge Transfer Ireland) industry portal incorporating searchable licensing opportunities from Ireland’s HEIs in order to increase the visibility of research opportunities to industry. This action was completed with the launch of the KTI on 28 May.
- Action 125: Provide a suite of model agreements and supporting guidance notes for business in order to ease the interaction between industry and HEIs, for inclusion in IP Protocol. This action was completed with the launch of KTI and a suite of model agreements is now available on the KTI website.
- Action 126: Introduce a broader range of knowledge transfer key performance indicators for Ireland’s HEI sector. This action is under development and is targeted for completion in Q4 2014 as per the timeframe in APJ.
- Action 127: Issue first annual report on knowledge transfer in Ireland as a vehicle to promote research collaboration to industry. This action is also under development and is targeted for completion in Q4 2014 as per APJ timeframe.
The Enterprise Ireland funded Technology Transfer Strengthening Initiative (TTSI) falls under the remit of KTI and the metrics and associated targets for 2014 under TTSI are:
- 36 Spin-out companies;
- 122 Licenses, Options, Assignments (Technologies transferred);
- 279 Research Agreements with Industry with a value of over €25,000;
- 139 Preliminary Patent Filings; and
- 400 Invention disclosures.
17. Deputy Ruth Coppinger asked the Minister for Jobs, Enterprise and Innovation if he will report on the progress of the Action Plan for Jobs 2014; and if he will make a statement on the matter. [29910/14]
View answerThe Action Plan for Jobs is underpinned by a rigorous monitoring mechanism and by the publication of quarterly Progress Reports on the implementation of individual actions. This year’s Action Plan contains 385 actions to be delivered across all Government Departments and over 40 public bodies. Most of these actions have interim quarterly milestones to be achieved as part of the delivery of the headline action. The interim measures are set out in a series of tables which were published in parallel with the Action Plan for Jobs last February.
Progress Reports on the quarterly milestones are compiled centrally by the Department of An Taoiseach and are published on the Action Plan for Jobs page on my Department’s website, www.djei.ie. The Progress Report for the first Quarter of 2014 under the Action Plan for Jobs showed that 97 of the 103 measures to be delivered in Quarter 1 were implemented on schedule, giving a 94% completion rate. The Progress Report for the second Quarter is currently being compiled by the Department of An Taoiseach and should be published during July.
Since the start of the Action Plan for Jobs process in 2012, over 600 actions, containing over 1,100 individual quarterly measures, have been delivered across all Departments and a wide range of public bodies. The overarching objective of all of these actions is to improve the operating environment for businesses in order to support job creation. The most recent Quarterly National Household Survey published by the Central Statistics Office, for Quarter 1 2014, showed that the number of people in employment increased by over 63,000 since the Action Plan for Jobs process began. Live Register figures published last week show that the number of people signing on the Register continues to decrease and is at its lowest level since April 2009.
Nonetheless, our unemployment rate is still too high and we must maintain our focus on creating a supportive environment for employment growth through the continued delivery of the Action Plan for Jobs.
18. Deputy Ruth Coppinger asked the Minister for Jobs, Enterprise and Innovation if he will report on the costs to the Exchequer of initiatives contained in the Action Plan for Jobs 2014. [29911/14]
View answerThe 2014 Action Plan for Jobs contains 385 actions to support job creation which will be delivered across all Government Departments and over 40 public bodies. The actions include measures to support entrepreneurship, improve the capability of indigenous companies, deepen the impact of foreign direct investment, improve our competitiveness, and support the development of key sectors of the economy.
Many of the initiatives under the Action Plan for Jobs are aimed at reducing administrative burdens on business and do not require Exchequer funding. For example, within my own Department, procedures have been streamlined to reduce processing times for Employment Permits and to facilitate the on-line filing of returns to the Companies Registrations Office. Supports to mico-enterprises have been reformed through the creation of the Local Enterprise Offices, and a major restructuring of the workplace relations bodies is taking place which will improve the efficiency of those bodies and help to bring disputes to a speedier conclusion. Other initiatives in areas such as Big Data are leveraging inputs from the enterprise sector.
There are, of course, Exchequer costs associated with many other initiatives in the Action Plan for Jobs and funding for these is included in the budgetary allocations of the relevant Departments. These allocations are negotiated by Departments as part of the annual Estimates cycle and funding for specific Action Plan measures may be a sub-set of a broader budget line for a Department or agency. In these circumstances, and given the range of measures being delivered across all Departments, it is not feasible to disaggregate the Exchequer costs of initiatives under the Action Plan for Jobs.
However, the Action Plan has been effective in prioritising the areas where Exchequer resources are being directed to support job creation. We have, for instance, seen funding being allocated to initiatives such as the new Trading On-Line voucher scheme as well as a suite of measures to improve access to finance for SMEs. Additional manpower has also been provided to IDA Ireland this year to intensify our efforts to grow employment through foreign direct investment.
19. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation the position regarding increasing volunteerism for one-to-one mentoring, whereby experienced entrepreneurs would provide advice and mentoring to new entrepreneurs, particularly in consideration of the immense benefits such advice and mentoring would have for a new start-up; and if he will make a statement on the matter. [29921/14]
View answerUnder the Action Plan for Jobs 2013, Forfás was requested by my Department to carry out a review of mentoring services in Ireland. This report, entitled ‘Review of Business Mentoring Services in Ireland – July 2014 ’, has now been finalised and will be published shortly. The report contains a number of recommendations including on the need to expand the mentor population to include a higher proportion of volunteer mentors in areas of particular expertise (sectoral, market, technical etc.) The report also recommends the establishment of a working group by my Department to drive coordinated execution of a number of recommendations in the review, including the above recommendation.
The establishment of this group is now in train and the first meeting of the group is expected to take place in September.
20. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation his proposals for a major change or reform of the posted workers directive. [29852/14]
View answerDirective 2014/67/EU of the European Parliament and of the Council on the enforcement of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services was formally adopted by the EU Council of Ministers on 13 May 2014 after lengthy and difficult negotiations. The Directive aims to provide for better and more uniform application and enforcement in practice of the original Posting Directive (No. 96/71/EC), including measures to provide greater transparency and certainty in the administrative requirements and control measures applicable in individual Member States.
I welcome the adoption of the Directive. It strikes a good balance between, on the one hand, ensuring the free movement of workers within the EU and protecting those workers’ rights and on the other, protecting the freedom of business to provide services and to access opportunities anywhere in the Internal Market. The Directive will ensure that the high standards that operate in the Irish labour market are respected by those seeking to post workers to Ireland. I am also confident that the Directive will not only protect Irish companies from unfair competition on the domestic market from foreign service providers but also give greater certainty and clarity to Irish service companies seeking to do business in other Member States.
The Directive has a transposition date of 18 June 2016. A decision on the manner of transposition of the Directive has not yet been taken. My Department will engage in a public consultation on the transposition of the Directive later this year.
21. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the number of local enterprise offices that have opened to date; his views on the roll-out of local enterprise offices; and if he will make a statement on the matter. [29940/14]
View answerOn 15 April 2014, the 35 County and City Enterprise Boards (CEBs) were legally dissolved under the County Enterprise Boards (Dissolution) Act 2014 and the 31 new Local Enterprise Offices (LEOs) were open for business on the same day. The formal launching of individual LEOs commenced with the National launch in the LEO Westmeath on 29 April 2014. To date, 27 LEOs have been formally launched with two more scheduled for 14 July. The scheduling of the launching of the remaining two LEOs is subject to Ministerial diary availability.
The establishment of the system of Local Enterprise Offices through the Local Authority structure, overseen by Enterprise Ireland, is a significant milestone under the Programme for Government and the Action Plan for Jobs 2014. The LEOs will act as a first-stop-shop for all budding entrepreneurs and also any existing businesses looking to expand. Clients of the LEOs can expect information, guidance and advice in relation to all State supports for enterprise development, and in certain cases, may also qualify for grant support or other "soft" supports such as mentoring or training. It builds on the work done by the CEBs and brings together the work done by the Local Authorities for enterprise development in each County.
22. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation the impact of the ending the lower rate of employer's PRSI on job creation; and if he will make a statement on the matter. [29942/14]
View answerIn May 2011, as part of the Government’s Jobs Initiative, the Minister for Finance halved the 8.5% rate of Employers PRSI in respect of employees earning up to €356 per week. The Minister signalled that this measure, which came into effect on 1 July 2011, would run until the end of 2013. The measure was forecasted to cost up to €190 million in PRSI forgone in a full year.
The Government regularly reviews the nature of supports it provides to companies and to employers, taking account of the evolving business environment and labour market conditions. When the reduced PRSI rate was introduced in 2011, the economy was at its lowest point and losing over 1,600 jobs per week. By comparison, the latest Quarterly National Household Survey figures published by the Central Statistics Office show that there was an annual increase of 42,700 people in employment in the twelve months ending in the first quarter of 2014. Subsequent to the Jobs Initiative in May 2011, the Action Plan for Jobs process has separately delivered over 600 actions across all Government Departments and many State agencies to support job creation.
Although the 8.5% rate of Employers PRSI was restored from 1 January this year for those earning up to €356 per week, this still represents a reduction on the standard Employers PRSI rate of 10.75%. The Department of Social Protection also introduced the JobsPlus scheme last year under the Action Plan for Jobs, as a new support for employers who take people from the Live Register. This scheme provides a grant of €7,500 over a two year period to an employer who recruits a person who has been on unemployed for 12 months or more. The subsidy increases to €10,000 if the person has been unemployed for 24 months or more.
The Government will continue to monitor the impact of its policies on employment and will look for further measures to reduce business costs and support employment creation in the context of the 2015 Budget and Action Plan for Jobs.
23. Deputy Joe Higgins asked the Minister for Jobs, Enterprise and Innovation the amount by which casualisation, internships - both private and Government-sponsored - and temporary working in the labour market have increased since 2007; if his Department will seek to obtain statistics on the growth of zero-hour contracts; and if he will make a statement on the matter. [29936/14]
View answerLabour market flexibility needs to be complemented by support to workers enabling them to make smooth transitions between different types of labour market status (e.g. activation measures for the unemployed, training for employment, work experience options, transitions towards self-employment). The quality of transitions will determine the quality of a worker’s career and the smooth functioning of the labour market.
Ireland has a comprehensive body of employment rights legislation which has among its objectives the protection of employees and the quality of transitions between different contractual arrangements. Specific areas covered by employment rights legislation include, for example, the protection of part-time work, the protection of fixed-term work, the protection of temporary work and the protection of persons engaged by temporary work agencies.
There were 76,561 casual and part-time workers on the Live Register in June 2014, which represents 19.2% of the total Live Register. This compares with 20.3% one year earlier when there were 88,322 casual and part-time workers on the Live Register. In the year to June 2014 the number of casual and part-time workers decreased by 11,761.
The increase in QNHS total employment of 47,000 in Q1 2014 was made up of an increase in full-time employment of 46,400 (+3.3%) while part-time employment declined by 3,700 (-0.8%). This is in sharp contrast to the rest of the EU where there has been steady growth in the number of employees working part-time, while the number of fulltime workers has continued to fall.
The objective of the Action Plan for Jobs is to support sustainable job creation by creating the operating conditions where businesses can start-up and grow. The efforts of IDA Ireland and Enterprise Ireland are geared to creating full-time employment rather than part-time employment and this is reflected in their employment trends. Jobs Plus, the Department of Social Protection’s employer incentive scheme has helped recruit over 2,000 long-term unemployed jobseekers from the Live Register to fill full-time positions since its introduction last July and is deliberately designed to encourage employers to provide full-time jobs. While full-time employment is the focus of our policy efforts, I recognise that in Ireland as indeed throughout Europe, temporary and part-time jobs area a contribution to job creation since in the medium to long run they may act as a stepping stone to permanent or full-time contracts.
I appreciate the Deputy’s concerns about the way in which zero hour contracts can operate. I have, on previous occasions, pointed out that the manner in which these contracts are regulated in Ireland differs from the position in the United Kingdom, where they have generated greater controversy. In particular, workers engaged under mutually agreed zero hour contracts in Ireland are entitled to compensation where shifts for zero-hours workers are cancelled at short notice.
24. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation if his Department has intervened to help find a resolution for CRH workers who have been on strike since 16 June over proposed pay cuts, in view of the fact that the workers have already complied with €6 million in payroll cuts since 2012; if he will outline the contact his Department has had with the workers and their unions; and if he will make a statement on the matter. [29933/14]
View answerI understand that the dispute relates to the restoration of bonuses, the loss of which formed part of a cost cutting plan agreed between management and unions in 2012. The matter was the subject of a Labour Court hearing last week and it is my understanding that the strike action which had been underway since June 16th is currently suspended following the Labour Court Recommendation of Thursday last, July 3rd.
The recommendation proposes that:
- restoration of the bonus should be phased in over a specific timeframe with the bonus to be fully restored by 2017;
- that strike action be suspended while workers ballot on the proposals;
- that both parties agree that they will not engage in any form of victimisation or retaliation against any person whether they supported the dispute or worked for all or any period of the current strike; and
- that both sides should take steps to re-establish good effective industrial relations with a view to growing the company and securing and improving the level and quality of employment of the workers concerned.
Ireland’s system of industrial relations is voluntary in nature and responsibility for the resolution of industrial relations issues lies ultimately with employers and workers and their respective representatives as appropriate. As the Deputy is aware, experience constantly shows us that what often appears to be the most intractable of matters is capable of resolution where both sides engage constructively and in good faith in this voluntary process. The principle of good faith implies that both sides make every effort to reach an agreement and endeavour to resolve their differences.
25. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation in relation to the Transatlantic Trade and Investment Partnership negotiations, his views on reports that the EU has put forward proposals that will weaken regulation of the financial sector; and if he will make a statement on the matter. [29924/14]
View answerI am satisfied that the EU’s objective for financial services in the negotiations for a Transatlantic Trade and Investment Partnership (TTIP) is the strengthening of financial stability. The EU Commission set this out very clearly in a document on cooperation on financial services regulation which it published on its website last January,
[http://trade.ec.europa.eu/doclib/docs/2014/january/tradoc_152101.pdf ]
That document very clearly states:
“The EU aims at establishing a framework for regulatory cooperation on financial services in the TTIP. The goal is not to define the substance of international standards, which shall be discussed in the respective fora outside the TTIP negotiations. The goal is to create an institutional framework of EU and US regulators to make sure the EU and US rules work together, which shall contribute towards preventing future crisis.”
The EU’s approach in engagement with the US in this matter is consistent with this.
26. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation the measures his Department has undertaken to help resolve the dispute at a company (details supplied); and if he will make a statement on the matter. [29934/14]
View answerI understand that the dispute relates to the issue of cost cutting measures within the company. The dispute has already been the subject of conciliation efforts in the Labour Relations Commission, where agreement was not reached, and a subsequent Labour Court recommendation. The Court found that the Company’s current cost base is not sustainable and requires immediate remedial action in order to both protect employment and secure its customer base.
In this context, the Court recommended that:-
- The parties engage in a concentrated process to identify and cost the level of labour productivity savings that can be generated within the business and to agree on further adjustments to the wage bill necessary to return the Company to viability.
- The talks should be completed within 14 days of the date of its recommendation.
- The parties should engage the services of suitably qualified financial and productivity advisors to assist them through this process.
Ireland’s system of industrial relations is voluntary in nature and responsibility for the resolution of industrial relations issues lies ultimately with employers and workers and their respective representatives as appropriate. The services of the State’s industrial relations machinery are available to assist the parties in the dispute. In this context, I would urge the parties to avail of their services and to engage constructively in the process in an effort to resolve the issues that are in dispute.
As the Deputy is aware, experience constantly shows us that what often appears to be the most intractable of matters is capable of resolution where both sides engage constructively and in good faith in this voluntary process. The principle of good faith implies that both sides make every effort to reach an agreement and endeavour to resolve their differences. I am aware that there has been some commentary about NERA's involvement with this company and its employees. NERA acts independently in these matters and it is the practice of NERA to instigate investigations where it becomes aware of public allegations of breaches of employment rights legislation.
27. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation if he raised the issue of poor working conditions in China during his recent trade mission to that country; and if he will make a statement on the matter. [29923/14]
View answerThe primary focus of the recent trade mission which I led to China and South Korea, as with all trade missions, was to encourage business to business links and to encourage investment and employment opportunities for Ireland. Issues such as those referred to by the Deputy would be more appropriate to other fora rather than in the context of a trade mission which was aimed at raising the profile of indigenous companies in Ireland as world-class suppliers to China of goods and tradeable services and increasing awareness of Ireland as a competitive source of world-class expertise and products.
Over the course of the recent very successful five day trade mission programme, introductions were made, contacts developed and business relationships progressed, from which significant increases in exports and jobs by Irish companies are targeted over the coming years. 41 companies participated in the five-day mission to Beijing, Shanghai and Seoul. The trade and investment mission also included 13 bilateral meetings with IDA Ireland target companies, as well as engagements with many more such companies in a group setting, during which many projects with potential to create jobs in Ireland were discussed and advanced.
Contracts between Irish and Asian companies worth just under €5million and the creation of 20 jobs were among the initial immediate results of the 5-day trade mission to China and Korea. In addition, investments of €36 million in business opportunities in Asia were agreed by Irish companies during the mission.
28. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the actions undertaken following the recent meeting of the retail consultation forum; and if he will make a statement on the matter. [29938/14]
View answerThis year’s Action Plan for Jobs includes a number of measures to support the Retail sector. These measures include the establishment of a Retail Consultation Forum to provide a platform for a structured engagement between the Retail sector and relevant Government Departments and agencies. Its purpose is to allow key issues of relevance to the retail sector to be discussed, with a view to identifying practical actions which could be taken by Government, or by industry itself, to support the sector.
The first meeting of the Retail Consultation Forum took place on 9th June last. It is chaired at Assistant Secretary level by my Department. The membership includes the key representative bodies for the retail sector, as well as practitioners from different sub-sectors within retail. Key Government Departments and bodies are also represented on the Forum, but the emphasis is on giving a voice to the retail members who form the majority of the membership.
The Forum will consider issues of relevance to the retail sector on a thematic basis. The focus of the first meeting was on potential items for consideration in the context of Budget 2015 which might assist the recovery of the sector. There was a good exchange of ideas on this topic at the meeting and a number of the Forum members subsequently submitted further details to my Department in support of suggestions made at the meeting. The proposals made by the retail representatives on the Forum are currently being collated by my Department with a view to channelling those suggestions into the Budgetary process and the Action Plan for Jobs 2015 for consideration.
The Retail Consultation Forum will meet again in September and account will be taken of the suggestions made by the members in setting the thematic topic for discussion.
29. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation the number of the 164 investments won by IDA Ireland in 2013 that came to County Donegal; the reason only 177 out of 13,367 new jobs, or 1.32% of the new jobs created by IDA Ireland client companies in 2013, were created in County Donegal; the plans he and his Department have to ensure a greater portion of the new investment and jobs in 2014 is directed to County Donegal; if he will clarify the element of new investment, research and development expenditure and new jobs he hopes to create in County Donegal in 2014; and if he will make a statement on the matter. [29850/14]
View answer2013 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 to date in 2014 there were 2 IDA Ireland sponsored site visits by potential investors to Co. Donegal. 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.
