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Tuesday, 25 Nov 2014

Written Answers Nos. 1-134

Enterprise Support Services Expenditure

Questions (101)

Ruth Coppinger

Question:

101. Deputy Ruth Coppinger asked the Minister for Jobs, Enterprise and Innovation the proportion of his Department's budget used on financial support to businesses, including EGE grants, subsidies and any other forms of financial support, either directly or via agencies under his remit. [44355/14]

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Written answers

The overall mission of my Department is to support the creation of good jobs by promoting the development of a competitive business environment in which enterprises will operate to high standards and grow in sustainable markets. In this context, the majority of the funding of my Department directly supports this overall mission statement.

In particular, my Department provides a range of supports, primarily via Agencies under the remit of my Department, both financial and non-financial to assist companies grow, improve competitiveness, create employment and improve productivity. Important support to businesses is also provided through funding made available through third level institutions for industry led collaborative research and commercialisation of business concepts and products. Access to credit, business costs and consumer confidence are constant concerns for the business owners I meet. Both my Department and the Government is systematically trying to address as many of those issues as it can through financial support to business.

For the purpose of the specific question tabled by Deputy Coppinger, the following is the information in respect of my Department’s overall expenditure for the latest completed year i.e. 2013.

The total gross Exchequer expenditure by my Department in 2013 was €791.90 million. Of this, €454.26 million, or 57%, represents the total Capital expenditure via Agencies under the remit of my Department. This Capital expenditure includes funding directly to business such as grants, equity and direct funding for research and development and funding to third level institutions for business-led collaborative research and commercialisation of business concepts and products. It also includes funding to third level institutions for fundamental research via Science Foundation Ireland.

Financial supports directly to businesses, in the form of grants or equity and support through funding via third level institutions for business-led collaborative research and funding for commercialisation of business concepts and products, amounted to €274.42 million i.e. 61% of total Capital expenditure or 35% of my Department’s overall Exchequer allocation.

The breakdown of this €274.42 million allocation in 2013 is as follows:

-

Amount

IDA Ireland

€82.00 million

Enterprise Ireland - Capital Expenditure

€47.20 million

Enterprise Ireland - Research and Development

€117.00 million

County Enterprise Development (Local Enterprise Offices)

€18.18 million

InterTradeIreland

€6.02 million

Shannon Development

€1.75 million

Loan Guarantee Scheme

€0.27 million

INTERREG

€2.00 million

Questions Nos. 102 to 108, inclusive, answered orally.

Employment Rights

Questions (109)

Clare Daly

Question:

109. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation the steps he will take to introduce mechanisms to improve compliance by subcontractors with legal wage rates. [44143/14]

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Written answers

Ireland’s robust suite of employment rights legislation applies to all workers, whether employed by a sub-contractor or other class of employer. Workers who consider they are not receiving the correct wage rate can make a complaint to the National Employment Rights Authority (NERA) which is the body responsible for enforcing minimum statutory employment rights entitlements in the State, including the national minimum wage, or can go directly to a Rights Commissioner. The proposed Industrial Relations (Amendment) Bill 2014 will provide for a new statutory framework for establishing minimum rates of remuneration and other terms and conditions of employment in specific sectors, including the construction sector.

NERA also has a proactive labour inspectorate, which carried out over 5,500 inspections in 2013. NERA’s policy is, in the first instance, to seek voluntary compliance where breaches of employment law are detected but will prosecute where this is deemed appropriate.

A key issue that arises in relation to the sub-contractor model is the issue of whether individuals are employees or are self-employed. It is not within NERA’s remit 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.

Finally, the Deputy will be aware of the programme I am currently undertaking to reform the State’s employment rights structure. The reform programme, which is at an advanced stage, will result in the establishment of a new two-tier Workplace Relations structure comprising two statutorily independent bodies replacing the current five. Provision has been made in this Bill for a range of enhanced compliance and enforcement measures, including the use of Compliance Notices and Fixed Payment Notices.

Company Takeovers

Questions (110)

Denis Naughten

Question:

110. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation if IDA Ireland has been in discussion with the management of a company (details supplied) following the purchase of the Covidien plants in Athlone, County Westmeath, and Tullamore, County Offaly; the implications of this sale for employment on the three sites at Athlone, Tullamore and Galway; and if he will make a statement on the matter. [43995/14]

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Written answers

The proposed takeover of Covidien by Medtronic was announced earlier this year but is subject to certain conditions such as shareholder approval and regulatory clearances around the world, including by the European Commission. Assuming this process progresses as envisaged, the transaction is expected to be concluded by the end of 2014 or early 2015.

The acquisition will see the businesses of Medtronic and Covidien combine under a new entity entitled Medtronic plc, which will have its principal executive offices in Ireland, where Covidien’s current headquarters are located, with its Operations Centre located in Minneapolis, USA. The combined entity will have about 3,600 employees in Ireland.

Over 2,000 people are currently employed by Medtronic in Ireland, mostly at the company’s Galway facility. It also has a small sales operation in Dublin. Covidien has significant operations in Galway, Athlone Tullamore and Dublin, employing about 1,500. However, we shall remain actively engaged with the company both in Ireland and in the USA to support the development of each of the individual Irish plants and their business pipeline.

IDA Ireland has ongoing close relationships with Medtronic and Covidien, both in Ireland and the US. That Agency will continue to engage with all parties to endeavour to influence positive developments for Ireland Inc., as the structure of the merger develops and future strategic decisions are made.

Job Losses

Questions (111)

Denis Naughten

Question:

111. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the steps being taken to source an alternative employer for a company's staff (details supplied) in Carrick-on-Shannon, County Leitrim, who are due to lose their jobs before Christmas; and if he will make a statement on the matter. [43994/14]

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Written answers

A series of actions are being implemented by local and national agencies to source an alternative employer and find alternative employment for those impacted by the MBNA announcement.

An inter-agency group, led by Enterprise Ireland, has been formed and its membership includes representatives of all the relevant State players. This Group is providing a coordinated approach to the needs of the affected staff and ensuring that all necessary steps are put in train to pursue an alternative investor.

A series of additional developments have also taken place:

- Details of the staff skills and the capabilities of the facility have been collated;

- IDA, along with MBNA/Bank of America has produced a marketing pack for potential investors;

- The global IDA team continues to market the MBNA facility to a range of potential investors through its network;

- Enterprise Ireland is marketing the facility to its client base;

- There have been a number of preliminary enquiries about the facility, both from foreign owned and Irish owned businesses but it is too early in the process to be specific about their potential.

The work of the inter-agency group will continue and IDA and Enterprise Ireland will work to market the MBNA facility to a range of potential investors and to respond to requests for information from potential interested parties.

Manufacturing Development Forum

Questions (112)

Michael Fitzmaurice

Question:

112. Deputy Michael Fitzmaurice asked the Minister for Jobs, Enterprise and Innovation if his Department and IDA Ireland are actively seeking to create manufacturing jobs in the west of Ireland; the efforts made by his Department and IDA Ireland to create manufacturing jobs in the region; and if he will make a statement on the matter. [43999/14]

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Written answers

The Strategy for the Manufacturing Sector, which I commissioned, and which was published in April 2013, identified that an additional 20,000 jobs can be created in the sector by 2016. A complementary report on the skills needs for the sector, which I had commissioned at the same time, was published by the Expert Group on Future Skills Needs and Forfás, and it identified a series of actions to enhance skills in the sector.

Arising from the Manufacturing Strategy and the Skills Report, there are now a range of initiatives in hand by relevant Agencies to drive the 2016 target, with key actions from both reports having been incorporated into the Action Plans for Jobs. A wide range of training and educational initiatives are underway by the relevant providers, such as Skillnets.

In order to provide industry insight for the development of policy initiatives, I established a Manufacturing Development Forum, comprising industry practitioners. One of the key results from the work of the Forum, and adopted in the Strategy, is the development of a National Step Change initiative, aimed at strengthening Ireland’s manufacturing base across all firms and sub sectors, redressing perceptions of the sector as a career choice and removing barriers to the competitiveness of the sector in Ireland.

The Strategy does not identify specific locations around the country for the expansion of the sector. However, a particularly attractive feature of manufacturing in Ireland is the fact that many of the present jobs are not in the main urban areas, but dispersed into regional locations, thereby providing a valuable employment focus in areas where alternative jobs are scarce. The further development of the sector will, of course, build on this key feature.

Both IDA Ireland and Enterprise Ireland are working with both existing and prospective new client companies to promote the sector in Ireland, including in the Western Region, with consequent job creation and retention, and several recent new job announcements have been in respect of companies engaged in manufacturing, which is very heartening.

However the ultimate decision on location of a plant rests with the individual company involved. Nevertheless, our Development Agencies make all possible efforts to ensure that the more peripheral regions are fully considered for the development of manufacturing opportunities.

Public Procurement Contracts Social Clauses

Questions (113)

Peadar Tóibín

Question:

113. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the progress that has been made by the social enterprise interdepartmental group, with the Office of Government Procurement, in examining the scope for the inclusion of social impact clauses in public procurement contracts. [44358/14]

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Written answers

The Department of the Environment, Community and Local Government provides Secretariat support to the Inter-Departmental Group on Social Enterprise.

Policy responsibility for public procurement, meanwhile, is a matter for the Minister for Public Expenditure and Reform, Brendan Howlin, T.D. The Office of Government Procurement falls under Minister Howlin’s remit.

My understanding is that the Inter-Departmental Group on Social Enterprise has not made a formal submission to the Office of Government Procurement (OGP) regarding the inclusion of social impact clauses in public procurement contracts. However, I also understand that the OGP is examining the scope for the targeted use of social clauses in procurement contracts.

On the 9th June, Minister Howlin announced the establishment of a Social Clauses Project Group to identify suitable policy priorities to be addressed through the insertion of social clauses in public contracts. The objective is that the use of social clauses in appropriate projects would contribute to employment or training opportunities for the long term unemployed while mitigating the risk of displacing existing workers. My Department is represented on the Social Clauses Group and is supporting the Group’s objectives.

Trade Agreements

Questions (114)

Mick Wallace

Question:

114. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation in the case of Ireland signing up to the transatlantic trade and investment partnership, if Ireland will also be subject to the investor state dispute mechanism; and if he will make a statement on the matter. [44364/14]

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Written answers

The scope of the EU Commission’s mandate to negotiate with the United States on a Transatlantic Trade and Investment Partnership (TTIP) is a very broad and comprehensive one, covering sectors and regulatory and rules issues, and investment protection including investor state dispute settlement (ISDS) is included. The mandate is available on the EU Council’s website at

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

The broad scope of the negotiating mandate increases the chances of a comprehensive deal. According to assessments made by the EU Commission and other European bodies, a comprehensive TTIP could over time boost EU GDP by 0.5% per annum bringing significant economic gains as a whole for the EU. This would provide a significant injection of economic activity and consequently bring new job opportunities.

I have indicated in replies to previous Parliamentary Questions some of the tentative and preliminary findings from the study commissioned by my Department, concerning the economic and other impacts and potential opportunities for Ireland. These suggest an additional 1.1% increase in GDP, higher than the estimated GDP gain from TTIP for the EU as a whole. This also means job opportunities for Ireland.

This trade and investment agreement will build on the deep economic and wider relationship we have with the US, and will create jobs by opening up further opportunities in the US market for Irish business.

As regards ISDS, I have indicated in replies to previous Parliamentary Questions that I believe that it is a valid mechanism. But I also believe that the experience of ISDS internationally has given rise to concerns and shows us there is room for much improvement in how the system works.

The TTIP gives us a valuable opportunity to make improvements and create a new generation ISDS model that would respect and address legitimate concerns that have been raised. Such improvements include having safeguards against claims that are clearly unwarranted and making sure that ISDS does not serve to constrain the rights of governments to take measures for legitimate public policy reasons. Important features in any system would also include greater transparency in the operation of tribunals and ensuring the independence of arbitrators.

The EU Commission is currently analysing the results of a public consultation on ISDS, carried out in response to concerns raised. As I have previously indicated, Ireland was one of a number of EU member states that wrote to the new EU Commissioner for Trade, Cecelia Malmstrom, expressing the view that the consultation was an important step in ensuring that we strike the correct balance to ensure that governments retain their full freedom to regulate. We also pointed out that it would be important that the outcome of this consultation would run its course and that the views expressed by our stakeholders would be carefully considered before reaching firm decisions on the way forward.

It is important to underline that the EU and the US follow the same principles that guide investment and seek to ensure a level playing field for investors. These principles recognise the right of Governments to regulate for legitimate public policy objectives. I will be seeking to ensure that we learn from the experience of the past and that any ISDS provisions in a future Agreement would represent a fair and reasonable option to which investors would have recourse for legitimate reasons.

Trade Agreements

Questions (115)

Dara Calleary

Question:

115. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the status of negotiations on the transatlantic trade and investment partnership; the way Ireland’s interests will be protected in the talks; and if he will make a statement on the matter. [44349/14]

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Written answers

Since the formal negotiations between the European Union and the United States on a Transatlantic Trade and Investment Partnership (TTIP) began in July 2013, seven negotiating rounds have taken place, the most recent of which took place in the US from 29 September to 3 October 2014. Reports of Rounds, together with background documents, are available on the European Commission’s TTIP website at

http://ec.

.eu/trade/policy/in-focus/ttip/

europa

While I am not aware that a date has yet been set for the eighth round, I expect that it will most likely take place early next year.

As regards representing Ireland’s interests, the EU Commission, which negotiates on behalf of the EU, is required under the terms of the mandate and in accordance with Article 207 of the Treaty on the Functioning of the European Union, to conduct the negotiations in consultation with and to regularly report to the Council on all aspects of the negotiations. Officials from my Department are represented on the relevant committees. As in all trade negotiations at EU and international levels, I fully intend to work at securing the best deal for Ireland, to open up opportunities for Irish business, and to ensure that any sensitivities we may have are taken into account.

Construction Contracts

Questions (116)

Dara Calleary

Question:

116. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation when the necessary appointments will be made to the panel of adjudicators to facilitate the operation of the Construction Contracts Act 2013; his views on the impact the legislation will have; and if he will make a statement on the matter. [44348/14]

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Written answers

The Construction Contracts Act, enacted last year seeks to ensure prompt payment practices throughout the construction industry. It is intended that the legislation will in the future provide easier access to payment for contractors who have carried out work.

The commencement of the Construction Contracts Act 2013 is dependent on a number of factors contained within the legislation itself. These factors include the appointment of a Chairperson and Panel of Adjudicators by the Minister, and the drafting and publication of a code of practice for the conduct of adjudications, which will be binding on all adjudicators operating under the Act, not just those appointed to cases by the Chair of the Adjudication panel.

Work on these items, and the required consultation with industry, is ongoing. My Department is working with the Public Appointments Service to develop the parameters for an open competition for those wishing to apply for a place on the Panel of Adjudicators. In addition, a draft version of the Code of Practice has been prepared in consultation with industry, which I hope will be finalised shortly.

It is expected that the Act will be implemented in full by Spring of next year. A specific date of implementation for the Act, and details of the various stages leading up to that implementation will be announced in advance once those details have been finalised, to provide sufficient notice to those affected by the Act's provisions.

Trade Agreements

Questions (117)

Mick Wallace

Question:

117. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation the timeframe regarding the introduction of the transatlantic trade and investment partnership; when it is likely to be discussed in Dáil Éireann; and if he will make a statement on the matter. [44363/14]

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Written answers

Seven formal rounds and numerous inter-sessional meetings have taken place in the sixteen months that have passed since the launch of the negotiations in June last year. While I am not aware that a date has yet been set for the eighth round, I expect that it will most likely take place early next year. It is not possible at this stage to say when the negotiations on the Transatlantic Trade and Investment Partnership (TTIP) might be concluded.

I welcome all opportunities to discuss TTIP and in this regard, I was very pleased to have been invited within the last year to brief and have exchanges with the Joint Oireachtas Committee on Jobs Enterprise and Innovation and the Joint Oireachtas Committee on European Affairs.

I was also very pleased to have invited Oireachtas members from relevant Joint Committees to a conference on TTIP that I hosted in Dublin Castle on 20 June. At that conference, attendees heard some preliminary findings from a study commissioned by my Department that indicate that a comprehensive trade and investment deal between the EU and the US could lead to a 1.1% increase in Irish GDP, a 2.7% increase in exports, a 1.4% increase in real wages, and a 1.6% increase in investment.

Trade Agreements

Questions (118)

Maureen O'Sullivan

Question:

118. Deputy Maureen O'Sullivan asked the Minister for Jobs, Enterprise and Innovation the reason Ireland is considering ratifying the EU-Colombia free trade agreement, in view of the many human rights issues and concerns expressed by Colombian farmers, trade unionists and human rights organisations; and if he will make a statement on the matter. [44329/14]

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Written answers

The Free Trade Agreement between the European Union and its Member States and the Republic of Colombia and the Republic of Peru, is an Agreement within the meaning of Article 29.5.2 of the Constitution. Ratification by Ireland is therefore subject to prior approval of Dáil Éireann. It is my intention to seek the necessary approval of Dáil Éireann shortly.

According to the EU Council website - http://www.consilium.europa.eu/policies/agreements/

- 17 member states have notified the completion of national ratification procedures. Once all member states have notified the completion of national ratification procedures, the Agreement will be formally concluded. The Agreement has also received the assent of the European Parliament.

The EU Colombia Free Trade Agreement is part of a multi-party Trade Agreement between the EU and the Andean Countries. These agreements will bring economic benefits to Ireland and to Irish business.

There is considerable interest in the Oireachtas as to the value of these agreements to support and enhance human rights, labour rights, environmental protection and more broadly the sustainable development of these countries. I have already answered 14 PQs on the matter this year and I would refer in particular to my most recent reply to written PQ 41056/14 on Tuesday, 4th November, 2014.

I want to recall a few important points in the context of Colombia.

Sustainable development and concerns for social and human rights are at the heart of the sustainability chapter of the agreement with Colombia. This is emphasised by the fact that, from the outset, Article 1 of the Agreement stipulates that respect for democratic principles and fundamental human rights and for the rule of law is an essential element of the agreement.

During its negotiation Ireland, including officials from my Department, strongly promoted the inclusion of provisions to reflect this essential element. The inclusion of a sustainable development chapter provides the EU with an important means to contribute to supporting positive social reforms and to the greater protection of human rights in Colombia.

Furthermore, the setting up of a special committee, with representatives from Colombian civil society, to monitor implementation of the sustainability provisions demonstrates how the EU can develop real leverage for promoting its values and expectations through this agreement.

The elaboration by Colombia and Peru of Roadmaps on human rights, labour rights and environmental protection in October 2012 clearly demonstrates how the agreement can incentivise an agenda for change. Against this background, I believe the agreement with Colombia will be instrumental in encouraging economic and social progress reinforced by arrangements that strengthen the voice and role of civil society in favour of the progressive development human and labour rights.

Small and Medium Enterprises Supports

Questions (119)

Peadar Tóibín

Question:

119. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the engagement his Department has had with the Department of Finance to increase small and medium enterprises' engagement with the Credit Review Office. [44361/14]

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Written answers

My Department has ongoing structured engagement with the Department of Finance across the range of access to finance issues for SMEs, including the operation of the Credit Review Office. The primary conduit for this engagement is the SME State Bodies Group, which is chaired by the Department of Finance and includes officials from my Department and Enterprise Ireland. The Credit Review Office itself is also represented on this Group.

Further, there is a subgroup of this main group which deals specifically with communicating to SMEs through a strategic plan, which again my Department takes part in. The Government is determined to improve the communication of its offering to SMEs and in this context has developed the “Supporting SMEs” online tool. I would urge Deputies to direct all SMEs to this online facility, which is available on a range of Government websites, including my own Department’s website and the Local Enterprise Office website. Where appropriate this tool will direct SMEs to the Credit Review Office.

I am aware that the Credit Review Office itself has taken part in a number of awareness raising activities such as national and regional radio advertising campaigns and it uses targeted trade press and focussed online campaigns targeting the SME and farming audience.

In the last 8 months the Credit Review Office has been involved in the following events:

- Presented at 4 accountancy CPD courses – Overview of the Credit Landscape in Ireland;

- Contributed to 4 Taking Care of Business Roadshows – Access to Finance presentation and Credit Review Stand;

- Contributed to 3 Financing Your Business – courses run by Skillnets;

- Had stands at 9 official openings of Local Enterprise Offices;

- Stand at ISME National Conference;

- Stand at SFA National Conference;

- Presentation on banking for SME start-ups in Limerick; and

- Quarterly meeting with the three representative organisations for SMEs: Chambers Ireland, ISME and SFA – and IFA for farming community to gather their collective views on credit issues facing their member SMEs.

The Credit Review Office has upheld 56% of the appeals in favour of borrowers, or with a commitment to reassess the lending in the future if agreed performance hurdles are met in the short term.

I believe that this is a vital service and was pleased to note in the most recent report of the Credit Reviewer that on the basis of his continuing discussions with Bank of Ireland, it does appear that over 85% of the businesses in which the Credit Review Office overturned the banks initial decision continue to trade.

Low Pay Commission Establishment

Questions (120)

Peadar Tóibín

Question:

120. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation his plans to publish the low pay commission legislation; and his plans to establish the commission on an interim administrative basis to carry out its functions as early as possible. [44359/14]

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Written answers

There is a commitment in the Statement of Government Priorities 2014-2016 to establish a Low Pay Commission (LPC) on a statutory basis as an independent body to make annual recommendations to the Government about the appropriate level of the minimum wage and related matters.

With a view to ensuring that the LPC is in a position to carry out its functions as soon as possible, the Minister for Business and Employment intends, in the first instance, to establish the LPC on an interim administrative basis. This approach was approved by Government at the end of October. Legislation to provide for the establishment of the LPC on a statutory basis will be published as soon as possible with a view to its enactment in early 2015. It is intended that the interim membership will constitute the Commission when it is established on a statutory basis.

While the complement of the Low Pay Commission has yet to be decided it will comprise a Chair and other members appointed by the Minister. In appointing members, the Minister will have regard to the desirability of ensuring that there is an appropriate balance between:

- members who will have a deep understanding of the interests of low-paid workers;

- members who will have a deep understanding of the interests of employers, particularly small to medium-sized employers and those operating in traditionally low-pay sectors;

- independent members who will have relevant knowledge or expertise in relation to some or all of the following; economics, labour market economics, workplace relations and employment law.

It is proposed that members will be appointed to the Commission for a period not exceeding three years.

The Commission will be statutorily independent in the performance of its functions.

Expressions of interest will shortly be sought by the Public Appointments Service from suitably qualified persons for consideration for appointment as members of the Low Pay Commission.

Foreign Direct Investment

Questions (121)

Gabrielle McFadden

Question:

121. Deputy Gabrielle McFadden asked the Minister for Jobs, Enterprise and Innovation his plans to target specific investors for the advanced technology building, in view of its pending completion. [44311/14]

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Written answers

As part of the Action Plan for Jobs 2014, we are bringing a particular focus to regional job creation and are delivering a range of measures to support this goal.

I announced in April that IDA Ireland had agreed contracts for the delivery of two advanced technology buildings in Athlone and Waterford, which will be suitable for future IDA client investment across the full spectrum of manufacturing and technology activities. Both buildings are on track to be completed before year end.

The Athlone building is located in the IDA Garrycastle Business and Technology Park, on the Dublin Road. The development has been designed to a high standard and consists of an advanced technology building of approximately 2,674m2, part two storey and part double height single storey, with associated infrastructure.

The building layout has taken account of the requirement of potential end users for flexibility by creating front of house open plan offices areas with the potential for subdivision. The rear open plan production area offers flexibility for large scale open plan of again the potential to subdivide or introduce cellular spaces. The building is of high quality environmental design which will achieve the globally recognised U.S.G.B.C. LEED “Leadership in Energy and Environmental Design” silver standard. Employment across the two projects is in the region of 160 to 180 over the construction cycle.

The Agency has assured me that they are actively promoting and marketing the facility to overseas clients wishing to invest in Athlone as the building will provide an enhanced platform to attract FDI to the Midlands Region.

Trade Agreements

Questions (122)

Paul Murphy

Question:

122. Deputy Paul Murphy asked the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to the potential negative impact on the environment, workers and consumers rights, as highlighted by trade unions and other organisations here and across Europe, in relation to the transatlantic trade and investment partnership; and if he will make a statement on the matter. [44332/14]

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Written answers

One of the clearly stated objectives in the EU’s negotiating mandate is sustainable development, which encompasses the respect of international environmental and labour agreements and standards while promoting high levels of protection for the environment, labour and consumers, consistent with the EU acquis and Member States' legislation. It is, therefore, an explicit objective that the Transatlantic Trade and Investment Partnership would not negatively impact on such standards and protections.

The full text of the mandate can be found on the EU Council’s website at

http://data.consilium.europa.eu/doc/document/ST-11103-2013-DCL-1/en/pdf

Employment Rights

Questions (123)

Clare Daly

Question:

123. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation his views on whether sanctions imposed on employers found guilty of breaching the law in terms of workers' wages and conditions are sufficiently robust; and if he will make a statement on the matter. [44142/14]

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Written answers

Ireland has a robust body of employment law, encompassing a comprehensive range of employment rights together with both civil and criminal remedies to ensure that individuals can vindicate their rights. The suite of employment rights legislation is underpinned by a proactive labour inspectorate.

As regards wages, the National Minimum Wage Act 2000 modifies all existing contracts of employment, collective agreements or legislative provisions, in the event that they provide for a rate of pay less than the National Minimum Wage. In addition, the proposed Industrial Relations (Amendment) Bill 2014 will provide for a new statutory framework for establishing minimum rates of remuneration and other terms and conditions of employment in specific sectors.

The National Minimum Wage Act provides for a number of criminal offences, ranging from the failure to pay the statutory rate to the obstruction of Inspectors in the exercise of their functions. Penalties range from a maximum fine of €2,500 (Class C) and/or imprisonment for a summary conviction or a maximum fine of €12,697.38 and/or imprisonment for a term not exceeding 3 years for a conviction on indictment.

Following conviction, if the offence continues the person will be guilty of a further offence on every day the offence is committed, and on summary conviction to a further fine not exceeding €500 (Class E), or on conviction on indictment to a fine not exceeding €2,500 for each offence.

An individual who considers that they are not being paid the National Minimum Wage may refer the matter to a Rights Commissioner of the Labour Relations Commission or to the National Employment Rights Authority (NERA) for investigation.

Other conditions of employment are provided for in Ireland’s comprehensive suite of employment rights legislation, together with redress to the relevant adjudicatory bodies where there has been an infringement of an employee’s statutory rights.

The Deputy will be aware of the programme I am currently undertaking to reform the State’s employment rights structure. The reform programme, which is at an advanced stage, will result in the establishment of a new two-tier Workplace Relations structure comprising two statutorily independent bodies replacing the current five. Provision has been made in this Bill for a range of enhanced compliance and enforcement measures, including the use of Compliance Notices and Fixed Payment Notices.

Trade Agreements

Questions (124)

Maureen O'Sullivan

Question:

124. Deputy Maureen O'Sullivan asked the Minister for Jobs, Enterprise and Innovation as over 750,000 persons across Europe signed a European citizens initiative petition with concerns over translantic trade and investment partnership, highlighting the ISDS proposals as a core concern, if he will therefore ensure there will be a human rights impact assessment on TTIP; and if he will make a statement on the matter. [44330/14]

View answer

Written answers

The scope of the EU Commission’s negotiating mandate for the Transatlantic Trade and Investment Partnership (TTIP) includes Investor State Dispute Settlement (ISDS). The EU Commission earlier this year decided to conduct a formal public consultation on ISDS in TTIP, and negotiations on ISDS under TTIP have been suspended since then. The formal consultation closed in July, and the EU Commission is now examining the submissions received, with a view to making recommendations in due course. The EU Commission’s preliminary report can be found at: http://trade.ec.europa.eu/doclib/docs/2014/july/tradoc_152693.pdf.

IDA Portfolio

Questions (125)

Seán Kyne

Question:

125. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to the proposed science and technology park at a location (details supplied) in County Galway; the progress in developing this facility; if IDA Ireland or other relevant agencies in his Department have further plans and proposed visits to an industrial estate; and the infrastructural requirements to ensure the facilities are able to provide capacity for new businesses and business expansion in the west. [44333/14]

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Written answers

Under the Industrial Development Acts, the management of IDA Ireland’s property portfolio, including the provision of property solutions for client companies, is a day to day operational matter for the Agency and not one in which I have a function.

I am informed by IDA Ireland that they have invested in a number of Business and Technology Parks in Galway city and county -Parkmore, Oranmore, Ballinasloe, Tuam, and Loughrea and have purchased land for future strategic development in Athenry. The Agency also partners with the private sector in the promotion of appropriate property solutions for FDI.

The Agency has explained that they have a c.97 ha site at Athenry on which phase 1 road infrastructure is completed and the lands are appropriately zoned for industrial purposes as part of the current Athenry Local Area Plan and related Galway County Development Plan. The provision of related infrastructure in the form of power, gas water and waste water continues to be advanced with the respective stakeholders.

In the case of Oranmore, full planning permission is in place from Galway County Council for a significant Biopharmaceutical Manufacturing Campus on the c.27 hectares site. The facility is designed to be a flexible multi process campus suitable for a range of investors, principally multi-national Biopharmaceutical Corporations. The Oranmore site is fully serviced to support such development.

I am informed by IDA Ireland that up to the end of September 2014 there were a total of 16 IDA Ireland sponsored site visits by potential investors to County Galway. For commercially sensitive reasons IDA Ireland is not in position to release details of these visits.

Enterprise Ireland, which deals with indigenous industry, does not conduct similar type site visits but Enterprise Ireland Executives work regularly in the field in Galway meeting with clients. These meetings range from introductory meetings with potential entrepreneurs to strategic planning meetings with established companies to promote expansion in addition to visits with community groups to advance enterprise infrastructure in the community.

It is also worth remembering that County Galway has been particularly successful in recent years in terms of attracting inward investment particularly in the areas of Medical Technologies and ICT. There are currently 60 IDA Ireland client companies employing some 13,615 people in Galway, city and county. IDA Ireland has strong relationships with these companies and works closely with them to ensure their long term sustainability and to encourage their growth, development and continuing re-investment in their sites. During 2013, there were 1,098 new jobs created in IDA Ireland Client companies in Galway.

IDA Ireland has assured me that it will continue to promote Galway as part of its marketing efforts, in response to specific client queries and also on an opportunistic basis for the purpose of winning FDI projects for the county. We must also remember that it is the investor in all cases who decides where to invest and an investment win for Ireland regardless of the location has to be seen as a plus for the country as a whole.

IDA Portfolio

Questions (126)

Gabrielle McFadden

Question:

126. Deputy Gabrielle McFadden asked the Minister for Jobs, Enterprise and Innovation if the new IDA Ireland advanced technology building in Athlone, County Westmeath is on target for completion in November 2014. [44310/14]

View answer

Written answers

As part of the Action Plan for Jobs 2014, we are bringing a particular focus to regional job creation and are delivering a range of measures to support this goal.

I announced in April that IDA Ireland had agreed contracts for the delivery of two advanced technology buildings in Athlone and Waterford, which will be suitable for future IDA client investment across the full spectrum of manufacturing and technology activities. Both buildings are on track to be completed before year end.

The Athlone building is located in the IDA Garrycastle Business and Technology Park, on the Dublin Road. The development has been designed to a high standard and consists of an advanced technology building of approximately 2,674m2, part two storey and part double height single storey, with associated infrastructure.

The building layout has taken account of the requirement of potential end users for flexibility by creating front of house open plan offices areas with the potential for subdivision. The rear open plan production area offers flexibility for large scale open plan of again the potential to subdivide or introduce cellular spaces. The building is of high quality environmental design which will achieve the globally recognised U.S.G.B.C. LEED “Leadership in Energy and Environmental Design” silver standard. Employment across the two projects is in the region of 160 to 180 over the construction cycle.

The Agency has assured me that they are actively promoting and marketing the facility to overseas clients wishing to invest in Athlone as the building will provide an enhanced platform to attract FDI to the Midlands Region.

EU Regulations

Questions (127)

Michael Fitzmaurice

Question:

127. Deputy Michael Fitzmaurice asked the Minister for Jobs, Enterprise and Innovation if he will provide assistance and funding to small and medium enterprises that are struggling to meet the high costs associated with attaining certification to standard EN1090, formerly the CE Mark and EN127; if he is aware that in some instances, the projected cost of EN1090 certification has forced SMEs out of business; and if he will make a statement on the matter. [43996/14]

View answer

Written answers

In general, the implementation of the Construction Products Regulations (CPR), is a matter for the Minister for the Environment Community and Local Government, and has resulted in increased compliance requirements for manufacturers of construction products across the board. The requirement for Steel Fabricators to CE mark product is a complex matter requiring the implementation of systems and procedures to demonstrate compliance with the EU regulations.

The National Standards Authority of Ireland (NSAI) are one of a number of notified bodies that can provide certification to fabricators in the area. NSAI costs are limited to the certification of the fabricators factory production control processes. The charge per day is currently €1,100 and certification normally requires 1.5 days of audit giving a total cost of €1,650 plus VAT. There is a follow up annual inspection process, normally incurring a 1 day charge plus an administration fee of €440.

It has come to the attention of NSAI’s Sustainability and Built Environment Division that fabricators have been quoted consultant costs in the region of €15,000 - €20,000 to develop and implement the appropriate processes and documentation to achieve compliance with the CPR. As a certification body, NSAI does not provide such consultancy services and has no direct evidence of the costs being charged by the consultants in this sector.

NSAI has received no notification of instances where SMEs have been forced out of business directly as a result of the implementation of the CPR.

Assistance is offered by way of the Local Enterprise Offices (LEOs) who have, provided general awareness/information seminars on the topic. The Education and Training Boards (ETBs) in Cork, Dundalk, Galway, Shannon, Tralee and Waterford provide metal fabrication apprenticeship training, which incorporates elements of certification training. The ETBs come under the remit of the Minister for Education and Skills.

The Centre of Excellence in Enterprise Ireland has agreed to explore the option for the LEOs to join forces with the Construction Industry Federation to provide regional information briefings.

I understand that the Department of the Environment, Community and Local Government, remains committed to working with all stakeholders in order to continue to raise awareness and facilitate the implementation of the CPR in Ireland.

Innovation Vouchers Initiative

Questions (128)

Dara Calleary

Question:

128. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his views on the operation of the Enterprise Ireland innovation voucher initiative; his plans to expand the scheme; and if he will make a statement on the matter. [44351/14]

View answer

Written answers

The Enterprise Ireland Innovation Voucher Initiative was established in 2007 in order to drive an on-going innovation cultural shift within small enterprise by promoting and encouraging a transfer of knowledge between Ireland’s public knowledge providers and the small business community and creating greater synergies between the two. This scheme provides small companies access to the sources of knowledge, expertise and innovation available in our Universities and Institutes of Technology and in so doing acts as an important driver of knowledge transfer from 3rd Level Institutes to industry. The Vouchers, worth €5,000, can be used by small Irish companies to explore a business opportunity or problem and purchase advice and knowledge that is new to the company.

The Innovation Voucher initiative has proven to be a very useful tool in encouraging companies to embark on initial innovation projects and to collaborate with higher education research groups. The scheme operates very efficiently while dealing with considerable numbers of projects on a yearly basis. To date, 5,847 Innovation Vouchers have been issued to Irish companies, increasing from 428 per annum in 2007 to over 1,000 per annum in 2013. These figures illustrate substantial growth in the scheme since its inception and the strong appetite/demand for these important Vouchers among small businesses.

A recent independent external evaluation of this programme indicated high levels of programme effectiveness and company satisfaction. The evaluation found that 24% of respondent companies had introduced new products to their companies and 23% had improved products within the company as a result of the Voucher project. Over the total portfolio of projects supported during the evaluation period €7.65 of company turnover was created for every euro Enterprise Ireland invested. There is frequently a lag effect between performing R and D and a company receiving the full impact from the activity. As such it is always useful to include projections of future value as well as counting impacts achieved to date. It was found that the Vouchers issued during this evaluation period are anticipated to achieve €27.76 in increased turnover for every €1 invested by EI by 2017. These figures represent a very impressive return predicted on state investment.

With regard to companies’ satisfaction with the operations of the scheme, as part of the evaluation 94% of companies said that they would be willing to participate in an Innovation Voucher project in the future and 93% would be willing to recommend the programme to other businesses. A further 82% stated that participation in the project has increased their desire to work with research partners in the future. One of the key objectives of this programme was to improve links between industry and 3rd level institutes – these findings suggest that the voucher programme has been successful in doing this.

Enterprise Ireland plans to pilot a limited expansion of the Innovation Voucher Scheme to larger SMEs and it is expected that this pilot will be launched in 2015.

Enterprise Support Services Provision

Questions (129)

Michael Fitzmaurice

Question:

129. Deputy Michael Fitzmaurice asked the Minister for Jobs, Enterprise and Innovation the investment his Department has directed to each of the counties of Roscommon, Leitrim, Dublin, Galway, Mayo and Sligo in each of the past five years; the number of visits that have been paid to each county by IDA Ireland in the past five years; and if he will make a statement on the matter. [43997/14]

View answer

Written answers

The final decision as to where to visit and ultimately where to locate is taken in all cases by the investor.

My Department’s agencies provide a range of grant aid and financial supports throughout the country including the counties listed by Deputy. This investment is provided primarily through direct financial grant supports to client companies and the breakdown of these figures in respect of IDA Ireland, Enterprise Ireland and the Local Enterprise Offices is set out in the following tabular statements. The figures for 2014 will not be available until 2015.

In addition to these direct financial grants, the agencies also provide a vast range of other supports from management development training to the direct provision of property solutions.

There are many complex factors influencing decisions on selecting locations. The final decision on where to locate and indeed where to visit, resides with the client company. In the period January 2014 to September 2014, there were 209 site visits to the aforementioned counties. The breakdown of these figures is set out in the following tabular statement.

The Action Plan for Jobs 2014 includes a commitment to develop a framework for a Regional Enterprise Strategy to better integrate the efforts of the enterprise development agencies and other regional stakeholders in supporting enterprises. My intention is that the framework will be developed on a pilot basis initially, focusing on the Midlands region, and involving the agencies under the remit of my own Department – Enterprise Ireland, IDA Ireland and the 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.

Grant Investment by County

Table 1: IDA Ireland

County

2009

2010

2011

2012

2013

Dublin

€29,101,843

€46,420,938

€43,043,936

€22,156,125

€24,803,491

Galway

€10,206,304

€9,448,677

€14,107,397

€12,252,609

€17,277,141

Leitrim

€28,600

€566,500

€297,622

€347,378

€0

Mayo

€66,007

€4,693,343

€1,198,963

€1,254,475

€4,180,577

Roscommon

€77,568

€283,503

€361,000

€13,098

€110,000

Sligo

€553,787

€925,555

€852,618

€0

€796,831

Table 2: Enterprise Ireland

County

2009

2010

2011

2012

2013

Dublin

€61,356,021

€48,391,621

€39,988,307

€32,853,294

€31,995,479

Galway

€7,299,810

€7,751,711

€4,773,425

€4,968,252

€4,694,128

Leitrim

€754,071

€314,242

€53,869

€314,386

€102,679

Mayo

€8,013,988

€2,202,585

€1,735,009

€1,661,413

€1,480,439

Roscommon

€480,174

€1,666,124

€1,182,743

€451,456

€560,539

Sligo

€2,373,561

€2,105,365

€1,257,628

€1,198,697

€850,974

Table 3: Local Enterprise Offices

LEO

2009

2010

2011

2012

2013

Dublin City

€664,492

€754,730

€848,351

€720,913

€609,588

Dun Laoghaire Rathdown

€595,164

€539,188

€627,790

€632,964

€565,426

Dublin Fingal

€394,924

€401,093

€508,115

€459,416

€296,367

Dublin South

€487,500

€478,770

€357,683

€604,482

€366,279

Galway

€455,927

€479,772

€622,707

€431,789

€582,027

Leitrim

€160,793

€203,735

€265,308

€186,389

€128,918

Mayo

€243,396

€429,409

€280,710

€208,472

€195,518

Roscommon

€340,218

€343,335

€302,224

€253,329

€167,371

Sligo

€323,834

€280,464

€269,145

€168,138

€288,393

IDA Ireland sponsored site visits from 2009 to the end September 2014

County

2009

2010

2011

2012

2013

Jan-Sept 2014

Dublin

90

197

150

196

180

184

Galway

22

41

35

18

15

16

Leitrim

0

0

0

0

1

2

Mayo

1

1

0

1

3

1

Roscommon

0

0

0

0

4

0

Sligo

5

12

3

6

10

6

Trade Agreements

Questions (130)

Paul Murphy

Question:

130. Deputy Paul Murphy asked the Minister for Jobs, Enterprise and Innovation if he has received a reply to the letter which he co-signed to the Commissioner-designate for Trade, Ms Cecilia Malmström, on the transatlantic trade and investment partnership, specifically in relation to investment protection; and if he will make a statement on the matter. [44331/14]

View answer

Written answers

The scope of the EU Commission’s mandate to negotiate with the United States on a Transatlantic Trade and Investment Partnership (TTIP) includes investment protection and investor state dispute settlement (ISDS). The mandate is available on the EU Council’s website at

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

I believe that ISDS is a valid mechanism. But I also believe that the experience of ISDS internationally shows us there is room for much improvement in how the system works. And that, I believe, is the reason why ISDS has raised some concerns.

The TTIP gives us a valuable opportunity to make improvements and create a new generation ISDS model that would respect and address legitimate concerns that have been raised. Such improvements include having safeguards against claims that are clearly unwarranted and making sure that ISDS does not serve to constrain the rights of governments to take measures for legitimate public policy reasons. Important features in any system would also include greater transparency in the operation of tribunals and ensuring the independence of arbitrators.

The EU Commission is currently analysing the results of a public consultation on ISDS, carried out in response to concerns raised. Ireland was one of 14 EU member states that wrote to the new EU Commissioner for Trade, Cecelia Malmstrom, expressing the view that the consultation was an important step in ensuring that we strike the correct balance to ensure that governments retain their full freedom to regulate. We also pointed out that it would be important that the outcome of this consultation would run its course and that the views expressed by our stakeholders would be carefully considered before reaching firm decisions on the way forward.

It is important to underline that the EU and the US follow the same principles that guide investment and seek to ensure a level playing field for investors. These principles recognise the right of Governments to regulate for legitimate public policy objectives. I will be seeking to ensure that we learn from the experience of the past and that any ISDS provisions in a future Agreement would represent a fair and reasonable option to which investors would have recourse for legitimate reasons.

No reply to the letter has been received.

Employment Rights

Questions (131)

Dara Calleary

Question:

131. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the status of the commitment in the Statement of Government Priorities 2014-2016 to conduct a study on the prevalence of zero hour contracts among Irish employers; and if he will make a statement on the matter. [44350/14]

View answer

Written answers

I can confirm that in accordance with the Statement of Government priorities, my colleague the Minister for Business and Employment, Ged Nash TD, issued on Monday 17 November a call for tenders to carry out a study into the prevalence of zero hour and low hour contracts and the impact of such contracts on employees.

The tender can be accessed on the Government’s website www.etenders.gov.ie.

The deadline for applications is 15 December 2014. It is expected that the study will commence early in the New Year and will report back its findings to Minister Nash by quarter two.

A key objective of the study is to fill the gap that currently exists in terms of hard data on zero hour and low hour contracts. It is expected to collect information on the extent of these contracts, the manner in which they are used and also to look at recent developments in other jurisdictions, particularly in the UK.

All sectors of the economy, both public and private, will come within the scope of the study; however, a particular focus will be on the retail, hospitality, education and health sectors. The study will also focus on how these contracts operate in practice and particularly on how they impact on employees. It will assess the advantages and disadvantages from the perspective of employer and employee and assess the current employment rights legislation as it applies to employees on such contracts.

It is also expected that stakeholders including employers, employees, employer representative bodies, trade unions and Government Departments will be canvassed to contribute to the study.

Small and Medium Enterprises Supports

Questions (132)

Michael Fitzmaurice

Question:

132. Deputy Michael Fitzmaurice asked the Minister for Jobs, Enterprise and Innovation the reason indigenous Irish companies and entrepreneurs are being less favourably treated when it comes to start-up and expansion assistance and, in particular, the reason indigenous small to medium projects appear to flounder at local level; and if he will make a statement on the matter. [43998/14]

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Written answers

State agency spending on Irish owned companies is approximately €770 million versus €470 million for foreign owned companies. We have a range of supports to help indigenous companies start to expand and create jobs including: start up grants, innovation, technology support, management development, graduate placements and export supports.

Since coming into office, this Government has had an unrelenting focus on enhancing supports to SMEs across the country. Recognising the importance of the contribution that small businesses make to the economy, employing as they do, 70% of the workforce in the private sector, we have taken very specific steps to enhance both the State supports available to them and the wider business environment in which they operate.

Specifically, we have rolled out the new LEO network which replaced the City and County Enterprise Boards (CEBs) in every County. The LEOs are now the “first-stop-shop” front line service assisting in delivering business growth and jobs.

In this enhanced support structure under the LEOs Network, entrepreneurs, micro or small businesses, whether they are exporting or domestically trading, will be offered advice or pointed in the right direction on what they need to do, in order to progress their business idea, or take the next step in expansion. The aim is to give the best possible service to people who have a business idea or who are already in business, but wish to expand.

Enterprise Ireland also provides a range of supports for start-up and expansion companies including, financial supports, business and marketing advice, mentoring and product development.

In October, the Government published the National Policy Statement on Entrepreneurship in Ireland which represents the first time a Government has published a comprehensive national plan for entrepreneurship. This Policy Statement sets out the Government’s strategic objectives in key areas that impact on entrepreneurs and start-ups and signposts the direction which policy will take in the coming years.

Since 2011, we have introduced a suite of state sponsored financing instruments that provide a broader range of capital, equity and debt funding options for SMEs across all stages of the business life cycle. Most recently, the Strategic Banking Corporation of Ireland (SBCI) was launched by the Government, and will provide over €800m of additional credit for SMEs, with lending likely to begin before the end of the year.

Budget 2015 also announced a number of reforms to the Employment Investment Incentive and the Seed Capital Scheme to support increased investment into entrepreneurial ventures.

I have undertaken a review of Microfinance Ireland’s operations to identify actions that can be taken to improve take up and the impact of the Scheme. This review will be finalised shortly. I have also undertaken a review of the Credit Guarantee Scheme and will ensure that appropriate changes are made to it.

Starting a new business is inherently risky and many new start-ups fail. However, as Minister for Jobs, Enterprise an Innovation, I am determined to improve the communication of the Government’s offering to SMEs, as part of its goal to make Ireland the best small country in the world in which to do business.

In this regard, businesses can now also access the new online search tool for SME business supports which was launched last May. The Supporting SMEs Online Tool is a cross-governmental initiative to help Irish start-ups and small businesses navigate the range of Government business supports for which they could be eligible. I would urge the Deputy to direct all SMEs to this online facility, which is available at: www.localenterprise.ie/smeonlinetool.

Industrial Relations

Questions (133)

Catherine Murphy

Question:

133. Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation his views on bringing forward legislation to provide for the right of former employees and pension beneficiaries to be represented and negotiate on their own behalf within the industrial relations architecture of the State; the reason such a measure has not been considered up to now; if he will confirm that there is a precedence for such a measure going back to the 1970s; and if he will make a statement on the matter. [44334/14]

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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.

Legal advice received by the Labour Court on a number of occasions since the 1970s suggests that a person who is retired cannot be regarded as a worker and cannot be party to a trade dispute capable of investigation by the Court. Where a person is retired they cannot have a dispute concerning their employment or non-employment.

I can say, however, that I am currently considering the introduction of access rights for individual retired workers to the industrial relations machinery of the State under the Industrial Relations Acts, where they have not referred their claim prior to their retirement.

EU Regulations

Questions (134)

Seán Kyne

Question:

134. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation if financial supports are available to allow small steel fabrication businesses to carry out retraining to upskill staff in order to comply with the new European standard IS EN 1090-1, which came into operation on 1 July 2014 regarding structural steelwork; if the local enterprise offices are permitted to fund such training; and if similar protocols may be in place for all local employment offices. [44299/14]

View answer

Written answers

In general, the implementation of the Construction Products Regulation is a matter for the Minister for the Environment, Community and Local Government, Mr Alan Kelly, T.D. I understand that officials in that Department have worked with a broad range of stakeholders to ensure the industry was aware of, and prepared for, the implementation of the Construction Products Regulation in Ireland. I also understand that a significant number of steel fabricators operating in the State have already established the systems necessary to comply with their obligations under the Construction Products Regulation and, more specifically, the requirements of I.S. EN 1090-1. I am informed that Minister Kelly’s Department remains committed to working with all stakeholders in order to continue to raise awareness and facilitate the implementation of the Construction Products Regulation in Ireland.

With regard to your specific question concerning the role of the Local Enterprise Offices (LEOs), the LEOs were established as a first-stop-shop for the provision of supports to the micro and small enterprise sector. These supports are aimed at enabling the LEO clients to develop and grow their business. For example, the non-financial supports are designed to build business competency within the sector and include a range of business and management development courses, such as Start Your Own Business, Online Marketing, Small Business Accounting, etc, as well as mentoring and networking services.

The provision of the specialist technical training required to achieve certification to an International or European Standard, such as that required by steel fabricators in this instance, is outside of the remit of the LEO services. However, I understand that to date the LEOs can, and have, provided general awareness/information seminars on the topic. I also understand that the Education and Training Boards (ETBs) in Cork, Dundalk, Galway, Shannon, Tralee and Waterford provide metal fabrication apprenticeship training, which incorporates elements of certification training. The ETBs come under the remit of the Minister for Education and Skills.

The Centre of Excellence in Enterprise Ireland has agreed to explore the option for the LEOs to join forces with the Construction Industry Federation to provide regional information briefings.

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