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Thursday, 16 Oct 2014

Written Answers Nos. 1-24

Online Business Voucher Scheme

Questions (11)

Peadar Tóibín

Question:

11. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the policy measures he plans to roll out over the next 12 months in addition to the online trading voucher to maximise indigenous companies' sales through e-commerce. [39083/14]

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Written answers

A recent report on Ireland's Digital Future, published by UPC and Amárach research, estimates that the value of Irish on-line consumer spending in 2014 will be €6 billion, and that this will rise to nearly €13 billion by 2020. However, 60% of on-line purchases made by Irish consumers currently go abroad.

Only 23% of companies trade on-line. Therefore, it is imperative that we encourage more businesses to trade on-line in order to save jobs in the face on on-line competition from abroad.

E-commerce should be an element in every enterprise's business. All of the Agencies under the aegis of our Department actively support enterprises in developing such business plans. The Local Enterprise Offices have been supporting enterprises in this area for several years. They provide mentoring support and other practical assistance. The NSAI have encouraged businesses to adapt new technologies through iSwift. Solas has developed specialist courses in managing ecommerce for SMEs. Many of our start-ups facilitated by EI are specifically using E-commerce as the platform to drive their business models. Enterprise Ireland's Internet Marketing Unit is focused on helping export-focused clients across all sectors to exploit the internet as a route to market and to assist them in developing a strategy that will shape how they do business online.

Encouraging more companies to conduct their business through e-commerce is also one of the key strands of the Government's National Digital Strategy, which falls under the remit of the Minister for Communications, Energy and Natural Resources, Alex White, TD. The National Digital Strategy envisages that an awareness and promotion campaign, highlighting the value to business of trading on-line, will be developed in partnership with industry, community stakeholders and Ireland's Digital Champion, David Puttnam. The Department of Communications, Energy and Natural Resources also supports internet start-up companies through the Digital Hub Development Agency and the National Digital Research Centre. The Deputy will of course also be aware of that Department's ongoing development of the National Broadband Strategy.

As the Deputy acknowledges we have introduced a Trading On-Line Voucher scheme as a specific measure to encourage a step-change in Irish business' engagement with E-commerce, which is administered by the Local Enterprise Offices, forms part of the Government's programme to get more businesses selling their products and services over the internet. The scheme will support 2,000 small businesses to trade on-line over a period of two years. However, we expect that these businesses will act as exemplars for other small companies to start trading on-line.

Preliminary feedback from the first 50 companies that took part in the pilot in Dublin indicates 70% of companies are getting more customer inquiries, 55% have had - or are expecting - more sales, and 60% expect to recruit extra staff within 12 months.

Action Plan for Jobs

Questions (12)

Seán Kyne

Question:

12. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation if he will report on the progress of the actions within the Action Plan for Jobs concerning his Department and its constituent groups to create competitive regions, including but not limited to building new manufacturing and office space facilities and the development of a regional enterprise strategy; and if he will make a statement on the matter. [39072/14]

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Written answers

The aim of the Action Plan for Jobs is to help enterprises to create employment in all regions of the country. If we are to do this successfully, it is important that the economic potential of each region is maximised and that each region builds on its particular strengths and assets to provide an environment that stimulates entrepreneurship and attracts investment - both indigenous and foreign.

The Quarterly National Household Survey figures published by the Central Statistics Office for 2013 show that employment increased year-on-year in every region. However, we must do more to ensure that the economic recovery is translated into sustainable jobs in all parts of the country.

In order to support the development of competitive regions, a number of important initiatives have been delivered through the APJ. These include:

- The rolling out of an integrated structure of Local Enterprise Offices which integrate the business support services of local authorities with policy support from a Centre of Excellence in Enterprise Ireland and delivering new initiatives like the investment in our County and Regional Best Young Entrepreneur;

- The negotiation of Regional Aid Guidelines that extended our capacity to support enterprise in weaker regions;

- The roll out of a national step change for manufacturing enterprises

- The introduction of Regional Competitive Feasibility and Competitive Start Funds;

- The support of innovation capability in our regions through Research support to Higher Education Institutions and Technology Centres.

The 2014 APJ includes a number of commitments to support competitive regions, including, within my own Department, embarking on a programme of building properties in specific locations to create fresh opportunities for foreign direct investment, and developing a framework for Regional Enterprise Strategies.

IDA Ireland has identified a number of locations where the private sector is unable currently to develop property solutions. The agency has commenced the construction of new advanced manufacturing facilities in Waterford and Athlone which will be completed by the end of this year, and new office space is also being delivered in Letterkenny. In addition, the IDA is reviewing available property stocks in other locations.

The framework for the development of Regional Enterprise Strategies will enable us to better integrate the efforts of the enterprise development agencies and other regional stakeholders in supporting enterprise growth and jobs in the regions. While there is already a significant amount of practical cooperation taking place at local and regional levels between many public bodies, developing a framework in which cooperation can be improved is timely.

I have been actively working on a template for the development of Regional Enterprise Strategies and it is my intention that this framework will be applied initially to produce action-oriented plans to support enterprise growth and jobs in the Midlands region and the South East region. Learning in these regions will inform any adaptations that might need to be made prior to the framework being applied to other regions.

Information and Communications Technology

Questions (13)

Bernard Durkan

Question:

13. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which innovation and technology continue 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, including relevant EU grant aid; the most important factors likely to affect growth in industry in the future and the means whereby any issues may be addressed; and if he will make a statement on the matter. [39067/14]

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Written answers

The importance of innovation and technology to Ireland's on-going and future economic recovery is well recognised by the Government as being crucial to growth in both our indigenous and FDI sectors. Evidence, from both the EU and internationally, shows that the Government's strategy of accelerating the economic and societal return on our STI investment is paying off.

Globally, we are ranked:

- 11th in the Global Innovation Index 2014, out of 143 countries.

- 15th in the IMD World Competitiveness Yearbook for 2014, up two places from 2013.

- 1st in the world for inward investment and quality, as per the IBM Global Location Trends Report of 2013.

- 1st in Europe and 2nd in the world for the number of investment jobs per capita, as per the same report.

- 3rd in the new EU 'Indicator of Innovation Output' (September 2013), and

- 9th in the European Commission's 2014 Innovation Union Scoreboard

By way of illustration, in 2013 SFI had links to 65% (2,018 jobs) of the 3,085 jobs announced by IDA in fields covered by SFI's legal remit.

In addition, 'Knowledge Transfer Ireland', our central Technology Transfer Office, has recently been set up as a central reference point for entrepreneurs and industry, signposting them to the wealth of technology opportunities and academic talent that exist in Research Performing Organisations.

Measures designed to support industry growth are set out in the Action Plan for Jobs 2014 and include encouraging entrepreneurship and supporting startup activity, further improving our skills base, assisting our businesses to grow, improved access to finance by SMEs and developing and deepening opportunities from global investment. Work is currently underway to draft our 2015 Action Plan for Jobs.

In terms of European Union funding for research and innovation, with a budget of almost €80 billion covering the next seven years Horizon 2020 offers huge opportunities to researchers, research organisations and industry to engage in cutting edge research. The European Research Framework Programmes have always been a very important element in providing international linkages and enhancing the excellence of the Irish R&D system. Ireland has set an ambitious target of drawing down up to €1.25bn in funding from Horizon 2020 over the period 2014 - 2020.

Exports Growth

Questions (14)

Stephen Donnelly

Question:

14. Deputy Stephen S. Donnelly asked the Minister for Jobs, Enterprise and Innovation his views on Ireland's economic over-reliance on imports of all kinds; if he will change the terms of reference for Enterprise Ireland and, in particular, its high-potential start-up programme to include import substitution; and if he will make a statement on the matter. [39077/14]

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Written answers

Ireland is a highly globalised, small open economy with trade at the core of its economic model. While Ireland has high import intensity relative to the size of our economy, this is also matched and indeed exceeded by very high export intensity. As such Ireland is a net exporter to the world which underpins the growth in our economy as measured by GDP and GNP, and this has been a principal factor in the economic recovery which has taken hold in recent times.

Enterprise Ireland (EI) has responsibility for the development of Irish enterprise in the manufacturing and internationally traded services sectors.

EI's remit is set out in legislation with policy direction provided by my Department. This is the basis for EI's focus on the internationalisation of Irish-owned enterprise and the agency works with companies that have the ambition and potential to develop sustainable export sales.

In order to qualify for potential support a company needs to demonstrate where an international agenda fits in their business plans. EI's approach then combines a comprehensive suite of financial supports with the provision of practical services, expertise and advice, both at home and through an extensive overseas office network. These supports are provided to target development across all aspects of a company's business plan.

It is recognised that success domestically does contribute to the viability of a new or growing enterprise and to that extent it is a valuable and welcome constituent part of the company's target market. As a general principle, a purely domestic focus is typically considered insufficient to justify State resources (in funding and support services), primarily for reasons of deadweight, displacement and value for money.

Ireland is one of the most open economies in the world. Enterprise Ireland believes companies capable of supplying goods and services (and which might be classified as import substitutes) to a highly competitive domestic market which includes major foreign-owned companies should also strive to supply these goods into overseas markets.

Employment Rights

Questions (15)

Thomas P. Broughan

Question:

15. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to the serious workers' rights issues raised through the use of the relevant contracts tax system in the construction sector, whereby some construction workers are effectively forced to become self-employed rather than having employee status and thereby do not have the protections of the employment law framework. [39071/14]

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Written answers

The inspection of employers' employment records and workplaces to determine compliance with employment law and employee's statutory entitlements is carried out by Inspectors from the National Employment Rights Authority (NERA). In 2013, NERA carried out over 5,500 such inspections including construction sites. The policy of NERA is to seek voluntary compliance where breaches of employment law are detected. NERA work with employers and allow them every reasonable opportunity to rectify breaches. Allegations of non-compliance with employment rights legislation should be referred to NERA who investigate matters brought to their attention.

It is not within the remit of NERA to make determinations regarding the employment status of individuals vis-à-vis employment or self-employment. This is the responsibility of the Department of Social Protection who make decisions in relation to the insurability of employment and the appropriate class applicable where the matter is called into question and the Revenue Commissioners who also make decisions concerning the correct employment status of individuals. Where either of these bodies makes a determination on these issues NERA, in accordance with the Code of Practice for Determining Employment or Self-Employment Status of Individuals will generally accept their decisions on the issue. Finally, the matter can also be determined by the Courts.

Whether any a given situation is an abuse of the sub-contracting or RCT systems is a matter for the Revenue Commissioners.

Job Creation

Questions (16)

Mattie McGrath

Question:

16. Deputy Mattie McGrath asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the work being carried out by Enterprise Ireland in relation to the renewal of employment opportunities following the closure of a plant (details supplied) in County Tipperary; and if he will make a statement on the matter. [39095/14]

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Written answers

The closure of any company involving job losses is always regrettable, so I was very pleased to be able to announce recently the creation of 100 new jobs by another Irish food company, Ribworld, at the opening of their new manufacturing facility in Fethard. This facility is part of a new €8 million strategic investment programme by the company, which has been supported by my Department through Enterprise Ireland. Recruitment for the new positions will get underway shortly, and this will bring employment levels at Ribworld to over 175 people over the next three years. This programme will position the company to invest in a major new product development drive and expand operational capacity, all aimed at meeting increasing demand for its products and expanding its market share across Europe and other international markets.

Enterprise Ireland's activity in County Tipperary is focused on the creation of new jobs through supporting entrepreneurs setting up High Potential Start-Ups, and the retention and creation of jobs in existing companies.

In 2013, over €3.2m was paid by Enterprise Ireland to its clients in County Tipperary through a range of supports spanning from employment grants to trade fair participation to equity in start-up enterprises. EI has 129 client companies in the County, which employ 4,219 in full-time jobs and over 600 in part-time jobs.

Enterprise Ireland has also approved funding for the development of Community Enterprise Centres at Tipperary Town, Clonmel, Rearcross, Thurles and Cloughjordan. Two of the Centres were approved funding towards the cost of a business development manager.

Enterprise Ireland is part of a multi-agency Enterprise Working Group in Tipperary and was involved in organising and delivering a one day Tipperary Enterprise Showcase at LIT Tipperary, Thurles Campus on 10 September 2014. The event attracted over 300 participants and was widely publicised throughout the County.

The next Competitive Feasibility Fund for start-ups in the Mid-West including County Tipperary will be launched by Enterprise Ireland on 27 October 2014 and will be promoted throughout County Tipperary. The Competitive Start Fund and the “New Frontiers” Enterprise Development Programme are also available to enterprises from County Tipperary.

The Centre of Excellence within Enterprise Ireland (EI) plays a major role in monitoring and driving the performance of the Local Enterprise Offices (LEOs) network, which are operating in every County, including Tipperary. A Service Level Agreement (SLA) between Enterprise Ireland and Tipperary County Council provides the framework for the operation of the LEO by the Council on behalf of Enterprise Ireland. It sets out respective roles, operational guidelines, metrics and other provisions to which LEO Tipperary, as with all LEOs, is subject.

Trade Agreements

Questions (17)

Peadar Tóibín

Question:

17. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the impact the recent US Chamber of Commerce complaint regarding Ireland's public policy lodged with the European Commission will have on the Transatlantic Trade and Investment Partnership and the investor-State dispute settlement mechanism attached to the agreement; and if he will make a statement on the matter. [39081/14]

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Written answers

The scope of the EU Commission's mandate to negotiate with the US on TTIP is publicly available since 9 October 2014, and can be found on the EU Council's website at

http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/145014.pdf

Included in the mandate is the recognition of the right to take measures necessary to achieve legitimate public policy objectives.

I understand that the subject matter of a letter from the US Chamber referred to by the Deputy relates to the issue of plain packaging for tobacco products. This is a matter for which the Minister for Health has primary responsibility.

Research and Development Supports

Questions (18)

Dara Calleary

Question:

18. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the way he plans to encourage greater take-up of research and development incentives among small and medium enterprises; and if he will make a statement on the matter. [39088/14]

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Written answers

Investment in Research, Development and Innovation (R, D & I) is a key economic differentiator which can support Irish companies of all scales to adapt to, and excel in a global market which in turn leads to increased exports and jobs. As a result the Government considers that it is critical that Irish companies are supported to engage in R&D and Innovation.

Enterprise Ireland will support over 1000 companies to engage in R&D in 2015. These supports will include in-company R&D projects via the R&D Fund, small to medium sized collaborative projects with researchers in higher level institutions under the Innovation Voucher and Innovation Partnership programmes and large consortium based research via sector specific Technology Centres.

Enterprise Ireland's promotional approach seeks to have as broad a reach as possible. It ranges from "one to one" promotion between Enterprise Ireland client companies and their Development Advisors, to larger "one to many" promotional activities that include web based notifications, social media activity, national media and specific Enterprise Ireland events.

One such event is the National Innovation for Industry Showcase on 2nd December 2014 in the National Conference Centre which will be the first convention, in one location, of all the Irish State-supported large scale research centres and Technology Centres. Working closely with my Department, Enterprise Ireland is coordinating this event in co-operation with Science Foundation Ireland, IDA Ireland and other relevant research funders. The aim of the event is to introduce industry to the excellent scientific research, and disruptive technologies being developed in the 38 state sponsored centres of scale. It also provides an excellent opportunity for centres to engage with companies as potential collaborators and to raise the awareness of the range of complementary R & D supports available to firms in Ireland.

Continued and intensified promotion such as this will continue throughout 2015 to ensure that as many SMEs as possible avail of the RD&I supports available to gain competitive advantage. Within the constraints of our economic circumstances, the Government for its part is continuing to prioritise the funding available for research, development and innovation and critically, maximising the impact of this investment on jobs and the economy.

Finally, the Government also has in place the R&D Tax Credit. This relief provides a 25% tax credit for qualifying Research and Development expenditure for companies engaged in in-house qualifying research and development. This Tax Credit is also available to Irish SMEs. Arising from Budget 2015, the R&D tax credit is being placed on a full volume basis with the removal of the 2003 base year expenditure criterion from 1st January 2015.

Industrial Relations

Questions (19)

Catherine Murphy

Question:

19. Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to ongoing disputes involving retired staff of bodies where no forum or audience is possible for pensioners' representatives to engage with the industrial relations mechanism of the State; his plans to bring forward legislation addressing this omission; and if he will make a statement on the matter. [39069/14]

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Written answers

I fully appreciate the concerns of retired and deferred members of pension schemes whose schemes are being restructured, particularly where such restructuring may impact on existing or potential pension benefits.

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 been raised for consideration.

It should be pointed out that the Trustees of a particular pension scheme are already required by law 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 proposals they make.

This is an issue to which I have given careful consideration, particularly in light of representations made to me in this regard.

In addition, my Department 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, it is important to stress that the industrial relations system in Ireland is voluntary in nature both as regards access to the Labour Relations Commission and the Labour Court. Any change to that principle which would put in place a mandated right to be part of the process would alter fundamentally the conduct of industrial relations.

As it stands, active members of pension schemes (through their Trade Unions) regularly engage with the employer to attempt to reach a common position as regards changes to pension schemes whether as a result of a crisis in the scheme or otherwise. In all such cases the outcome of that engagement can only be a collective agreement which cannot, of itself, change the pension scheme. Any proposed changes to the scheme are effected via the mechanisms set out in the trust deeds and rules of the scheme and are at the discretion of the parties so designated in the rules/deeds of the scheme. It may be that it is within this framework that a collective approach could be most effective.

On a separate but related matter, I am actively considering the introduction of access rights for individual workers to the proposed Workplace Relations Commission in terms of pursuing issues relating to terms and conditions of the relevant worker that pertained at the time of retirement.

Employment Rights

Questions (20)

Richard Boyd Barrett

Question:

20. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to the widespread allegations by construction workers regarding the abuse of the subcontracting system by major building contractors and the failure properly to protect the rights of building workers in the construction industry; and if he will make a statement on the matter. [39091/14]

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Written answers

The inspection of employers' employment records and workplaces to determine compliance with employment law and employee's statutory entitlements is carried out by Inspectors from the National Employment Rights Authority (NERA). In 2013, NERA carried out over 5,500 such inspections including construction sites. The policy of NERA is to seek voluntary compliance where breaches of employment law are detected. NERA work with employers and allow them every reasonable opportunity to rectify breaches. Allegations of non-compliance with employment rights legislation should be referred to NERA who investigate matters brought to their attention.

It is not within the remit of NERA to make determinations regarding the employment status of individuals vis-à-vis employment or self-employment. This is the responsibility of the Department of Social Protection who make decisions in relation to the insurability of employment and the appropriate class applicable where the matter is called into question and the Revenue Commissioners who also make decisions concerning the correct employment status of individuals. Where either of these bodies makes a determination on these issues NERA, in accordance with the Code of Practice for Determining Employment or Self-Employment Status of Individuals will generally accept their decisions on the issue. Finally, the matter can also be determined by the Courts.

Whether any a given situation is an abuse of the sub-contracting or RCT systems is a matter for the Revenue Commissioners.

Trade Agreements

Questions (21)

Mick Wallace

Question:

21. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation further to Parliamentary Question No. 76 of 8 October 2014, if he has made any commitments or plans to make any commitments; and, if so, if he will provide the services and activities that could possibly be provided by foreign companies as a result of the TISA negotiations. [39299/14]

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Written answers

The aim of the Trade in Services Agreement (TiSA) is to open up markets for services in order to create jobs and growth. All WTO members associated with the TiSA negotiations – currently 50 - are expected to open up their markets to each other.

The EU negotiates on behalf of all 28 EU member states. The EU's initial offer in the TiSA negotiations is based on what the EU has offered to other countries in bilateral agreements, and contains commitments and restrictions for all 28 member states. This includes commitments and reservations for Ireland. Commitments are the services or activities a WTO member is prepared to open up to foreign suppliers. Restrictions limit that market access and non-discriminatory treatment.

The EU first offer is available on the EU Commission's website at the following link:

http://trade.ec.europa.eu/doclib/docs/2014/july/tradoc_152689.pdf

As I said in my previous reply, the EU excludes from its commitments:

- publicly-funded health and social services

- publicly-funded education

- water collection, purification, distribution and management services

- film, TV and other audiovisual services.

Employment Rights

Questions (22)

Joe Higgins

Question:

22. Deputy Joe Higgins asked the Minister for Jobs, Enterprise and Innovation his views on the downward pressure on wages and working conditions at Greyhound Recycling and other private waste collection operators. [34328/14]

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Written answers

I understand that there are approximately 100 registered domestic waste collection companies operating in Ireland and they employ 8,000 workers directly. The indirect labour figure (agency/contract) is less clear. Given the number of companies competing for business, the cost of service delivery is a deciding factor in winning customers and forms part of the differentiation in terms of competing on cost to the customer.

As in the case of many other service provision sectors characterised by internal competition, wage costs are an important component of overall costs. Consequently service providers who can reduce their wage costs obtain an initial competitive advantage over others.

It appears that, for the majority of operators in the waste collection sector, many pay rates at or slightly above the national minimum wage.

In this context, and in light of recent industrial unrest in the sector, my colleague, the Minister for Business and Employment is considering the feasibility of possible voluntary wage setting frameworks that could be utilised, through which terms and conditions of employment in the domestic waste sector might be agreed or arrived at.

Job Creation Targets

Questions (23)

Bernard Durkan

Question:

23. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which job creation through foreign direct investment and-or indigenous sources are in line with or ahead of projections in each of the past three and a half years to date; if he expects to continue to meet the ambitious targets required in this regard to facilitate economic recovery further; and if he will make a statement on the matter. [39068/14]

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Written answers

Since it was introduced in 2012, the Action Plan for Jobs has put job creation at the centre of policy formulation for all Government Departments and has changed the way Government operates. The Action Plan covers all areas of the domestic economy and not just the areas which fall within the remit of the enterprise development agencies under the aegis of my Department ie IDA Ireland, Enterprise Ireland and the Local Enterprise Offices.

Labour market data for the Quarter 2 2014 indicates that there are now 1.9016 million people at work, compared to 1.847 million at the start of the Action Plan process. Employment increased in 10 of the 14 economic sectors, including Agriculture, Tourism, Professional and Scientific activities which are all areas of focus for the Action Plan for Jobs. As measured by the QNHS, unemployment fell by 46,200 in Quarter 2 2014 and the Unemployment Rate decreased to 11.8% - down from 15.1% in Quarter 1 2012, while Youth Unemployment rate (for 15-24 year olds) decreased from 29.6% to 26.9% over the year to Q2.2014.

With specific reference to the agencies which operate under the aegis of my Department, IDA Ireland's primary responsibility is to attract foreign direct investment (FDI) into Ireland and, Enterprise Ireland supports indigenous industry and export growth. In addition, the LEOs, which were launched earlier this year, act as a first stop shop for advice, guidance and support to people seeking to launch their own business.

In the three year period 2011 to 2013, Enterprise Ireland client companies created a total of 34,393 jobs against a target of 29,300, while IDA client companies created a total of 39,157 new jobs against a target of 35,300. While job creation figures for 2014 will not be known until year end, indications are that both agencies will surpass the targets for 2014.

Furthermore, tax changes announced in Tuesday's Budget for example the introduction of a knowledge development box and changes to the R&D tax credit as well as improved measures to attract key senior executives will make major improvements to our ability to attract FDI to this country. These measures, together with the increased capital spending allocation to my Department for 2015, will enable us to continue to build on the strong job creation performance since this Government came to office.

Small and Medium Enterprises Supports

Questions (24)

Seán Kyne

Question:

24. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation the position regarding progress on introducing an integrated licensing application service which will reduce the regulatory burden on small and medium enterprises in the retail sector; and if he will make a statement on the matter. [39073/14]

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Written answers

The Integrated Licensing Application Service was a Disruptive Reform in the Action Plan for Jobs 2013 with the delivery of such as Service to the Retail Sector in the first instance.

This Disruptive Reform was based on findings in a Forfás report on "A Review and Audit of Licences" that businesses had to apply for a multiplicity of licences adding to their administrative burden.

A Steering Group was established to oversee the process with membership from key licensing authorities for the Retail Sector and chaired by the Minister for Small Business.

The initial focus is on 29 core licences across 40 licensing authorities (this includes the 34 Local Authorities).

There were a number of project parameters that influenced the process:

- No additional cost to the business user;

- Use of the Service by Licensing Authorities would not be mandatory; and

- No additional exchequer funding for the project.

The Steering Group agreed an approach of outsourced provision on a Finance-Design-Build-Operate model.

A Statutory Instrument (S.I. No. 83 of 2014) was signed by the Minister of the Environment, Community and Local Government in February 2014 to extend the powers of the LGMA so that they could act as the Contracting Authority for this Service on behalf of the Minister for Jobs, Enterprise and Innovation.

A Request for Tender for a Single Supplier Framework Agreement for the provision of an Integrated Licensing Application Service, signed-off by the Chief State Solicitor's Office, was issued through etenders and in the EU Official Journal on 21st February 2014 with a closing date of 17th April 2014.

A letter was issued (on 7th March 2014) from the Secretary General of DJEI to Secretaries Generals of other government departments requesting assistance in identifying all the licensing authorities under their auspices so that they can be included and named as Framework Clients in the services contract between the Contracting Authority and the appointed Service Provider.

The Evaluation Panel, chaired by the LGMA, has concluded and recommended to award the tender and award the contract.

A Contract Award Notice has been published in the EU Official Journal - An Post with Escher (as their technology partner) have been awarded the contract to a value of €3,000,000 over a 7 year period.

Contract conclusions have commenced between the LGMA and An Post.

The Steering Group met on 9th October 2014 with the main outcomes being:

- Licensing Authorities are up-to-date on the process/project;

- Awareness of any issues from the Licensing Authorities perspective on the project;

- Commitment from the Licensing Authorities to engage in discussions about the potential use of the Service with An Post after the contract is signed; and

- Detailed costings for use of the Service will be devolved to each Licensing Authority at that stage as part of the Service Contract discussions between each Licensing Authority and the Service Provider.

The next steps are as follows:

- The LGMA will continue with contract conclusions with An Post – it is envisaged that this will be complete by the end of October 2014;

- A Memo for Information will be brought to Government before the contract is signed; and

- The Framework Agreement contract will then be signed with An Post with the aim of having the Service available to Licensing Authorities by year end.

This action which was originally due for delivery in Q4 2013 was delayed primarily due to the public procurement process embarked upon. A new delivery date of Q4 2014 is being targeted to have the service available to licensing authorities.

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