Written Answers Nos. 66 - 74
66. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation the new compliance and enforcement measures he proposes to introduce to provide a more proportionate, efficient and effective enforcement of employment law; if this will include payments due under the Payment of Wages Act 1991 where an employer ceases operating but does not go into liquidation; and if he will make a statement on the matter. [48648/14]
View answerWork which I am currently undertaking on the reform of the State’s employment rights and industrial relations structures is at an advanced stage. Provision has been made in the Workplace Relations Bill 2014 for a range of enhanced compliance measures, including the use of Compliance Notices and Fixed Payment Notices. The Bill also makes provision for the introduction of a more effective and streamlined system for the enforcement of awards from WRC Adjudicators and-or the Labour Court under employment rights legislation via the District Court. I am satisfied that these new compliance and enforcement measures will provide for more proportionate, efficient and effective enforcement of employment law, including the Payment of Wages Act 1991. As the Deputy is aware, my colleague, An Tánaiste and Minister for Social Protection, Joan Burton, has responsibility for the Insolvency Payments Scheme, which operates under the Protection of Employees (Employers’ Insolvency) Acts. The purpose of the scheme is to protect certain outstanding pay-related entitlements due to employees in the event of the insolvency of their employer. These entitlements include wages, holiday pay, sick pay, payment in lieu of minimum notice due under the Minimum Notice & Terms of Employment Acts, 1973-2001, and certain pension contributions. Various other statutory awards made by the Employment Appeals Tribunal, Rights Commissioners, etc., are also covered by the scheme.
Where a person’s former employer was a limited company, the company must be in liquidation or receivership in order for the person to be eligible to claim under the insolvency payments scheme. In such circumstances, the liquidator or receiver becomes the relevant officer for submitting claims as he or she has access to the company records and can certify that the amounts claimed are in order.
There are companies which cease trading without engaging in a formal winding-up process and in some such cases those employers may owe monies to their employees. Such employees are not eligible for payments under the insolvency payments scheme. I am informed that the Department of Social Protection is currently reviewing the position to establish what, if anything, can be done to progress payments to individuals in these situations. The Department of Social Protection is not in a position to indicate when this review will be completed.
67. Deputy Willie Penrose asked the Minister for Jobs, Enterprise and Innovation the number of Industrial Development Agency Ireland-sponsored visits by entrepreneurs and other companies to counties Westmeath and Longford to date in 2014; the attempts made by his Department and IDA Ireland to secure industry for the large IDA site at Mailinstown, Mullingar, County Westmeath; the success rate that has been scheduled in 2014; and if he will make a statement on the matter. [48653/14]
View answerI am informed by IDA Ireland that during 2014 there have been 8 site visits to Westmeath and no site visits to Longford. Longford and Westmeath are marketed as part of IDA Ireland’s Midlands Region, which also includes the counties of Roscommon, Laois and Offaly. The Region is marketed as having a strong cluster in Medical Technology and Life Sciences and is home to key clients such as Ark Consulting in Longford and Abbott, Covidien, Integra, GeneMedix elsewhere in the region generally.
In addition, the region is home to International Business Services companies such as Teleflex, AXA, NPD Group and PPD. All of these companies are an attraction for potential IDA Ireland clients to locate in the Midlands and to provide employment opportunities for people living in both Westmeath and Longford.
Counties Longford and Westmeath are home to 24 IDA Ireland client companies employing almost 3,000 people.
As well as the FDI sector, there are over 4,000 people employed in Enterprise Ireland-supported jobs in Westmeath and Longford with over 600 employed in the medical technology-related industries in the indigenous sector, in areas such as manufacturing to delivery of elements of the supply chain.
The arrival of Jazz Pharmaceuticals to Athlone combined with the announcement of investment by Alexion Pharma and the existing presence of Alkermes, identifies a new cluster in the Midlands in biopharmaceuticals employing in the region of 400 staff and this will be presented to potential new name companies in the market place.
The IDA Mullingar Business and Technology Park is an essential infrastructure to provide for FDI clients and also for indigenous companies interested in developing their business in the Midlands. For example, Patterson Pumps acquired a 1.62 hectare site from IDA under leasehold title in the Mullingar Business and Technology Park and are currently on site. IDA Ireland continues to market the Park through its network of overseas offices and present it to its client base should the facility be suitable to locational and business requirements.
IDA Ireland recognises the challenges for Ireland and its regions in attracting FDI and, with this in mind, a new IDA strategy will be launched early in the New Year, detailing goals and the broad direction IDA will take to accomplish them over the next five years.
I have been working with my Department on the development of a framework for the formulation of Regional Enterprise Strategies that will enable us to identify the sustainable competitive strengths of each region and to better integrate the efforts of the enterprise development agencies and other regional stakeholders in supporting enterprise growth and jobs in areas of potential. 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 in the course of 2015.
68. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he expects industry here to avail of technology and innovation as a means of enhancing productivity in the manufacturing and services sectors in the future based on the trend over the past four years; and if he will make a statement on the matter. [48692/14]
View answerMy Department, and the relevant State Agencies under its remit, have a clear focus on the role of innovation as a key driver of business success and growth. Enterprise Ireland, IDA and Science Foundation Ireland (SFI), provide a range of innovation and technology development programmes that deliver financial, technical and experiential support. These programmes help companies become more innovative and encourage and support competitiveness. They help grow sales and exports which in turn will lead to sustainable employment. Innovation is a key characteristic of growing companies in both the Manufacturing and Services sectors. By way of illustration, in 2013 SFI had links to 65 per cent of the jobs announced by IDA in fields covered by SFI’s legal remit. 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 Science Technology and Innovation investment is paying off. While is it not possible to fully disaggregate the contribution of Innovation and Technology to job creation, all the evidence is that it is very significant, as Ireland moves up the value chain and exploits our competitive position in knowledge based activity. We have actively pursued the availability of EU funding for Research and Innovation and, in particular, we will ensure that we will access significant funding from both the new EU Horizon 2020 and the new EU INTERREG V Programmes, to further enhance Irish business capability.
Measures designed to support industrial growth were pursued in the Action Plan for Jobs 2013 and 2014 and included 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, which will continue to drive this agenda.
69. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the number of jobs lost in the manufacturing sector in each of the past five years to date; the number of jobs created in the same period; the future expectations for the continuation of the trend; and if he will make a statement on the matter. [48694/14]
View answerThe information requested by the Deputy, as ascertained from the Annual Employment Survey undertaken by Forfás (now incorporated into my Department), is given in the following table. As clearly illustrated, there were very significant net job losses in the Manufacturing Sector for the years 2009 and 2010, as had also been the case in the previous few years also. This negative trend was reversed in 2011 and a positive net position has continued in the last 2 years also. To address this decline, I initiated the development of a new Manufacturing Strategy (completed in 2013) and also an in-depth analysis of the Skills Needs of the sector, which was also finalised last year. Implementation of the key recommendations of both these reports is underway, especially through the Action Plan for Jobs process and I am confident that we can continue to enhance the development of Manufacturing in Ireland, thereby pursuing additional job creation in that sector.
Manufacturing jobs lost and gained 2009 – 2013
|
Year |
2009 |
2010 |
2011 |
2012 |
2013 |
|
Losses |
-29,177 |
-14,494 |
-12,527 |
-8,599 |
-8,182 |
|
Gains |
7,140 |
8,617 |
11,622 |
10,879 |
10,719 |
|
Net Change |
-22,037 |
-5,877 |
-905 |
2,280 |
2,537 |
70. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the number of indigenous jobs lost and created in the manufacturing and services sectors in each of the past five years to date in 2014; and if he will make a statement on the matter. [48695/14]
View answerEnterprise Ireland’s mission is to support indigenous industry, working with entrepreneurs, Irish businesses, and the research and investment communities to develop Ireland’s international trade, innovation, and competitiveness. The ultimate objective is increased employment and prosperity in Ireland. Enterprise Ireland works with High Potential Start-ups (HPSUs) with a capability to start a business and sell in export markets, Small and Medium sized enterprises (SMEs) in manufacturing and internationally traded services, large companies employing 250 or more, and, Irish-based food and natural resource companies that are overseas owned or controlled. Every year my Department, in conjunction with Enterprise Ireland, conducts an Annual Employment survey. The results for the 2014 survey will be available in January 2015.
Table 1 refers to the full time indigenous job losses and gains for the Manufacturing and Services sectors for the last 5 years based on the 2013 Annual Employment Survey of Enterprise Ireland’s clients.
The recently established Local Enterprise Offices (LEOs) provide financial support to enterprises in the manufacturing or internationally traded services sector, which over time, can develop into strong export entities and graduate to the Enterprise Ireland portfolio.
Information in relation to the number of jobs created, jobs lost and net jobs by the LEOs – formerly County and City Enterprise Boards (CEBs) - for the years 2010-2013 are set out in Table 2. Statistical information for the LEOs/CEBs is collated on an annual basis so details in relation to 2014 are not yet available. Prior to 2010, CEBs reported jobs data on a different basis i.e. only on the number of jobs existing in CEB supported companies and the change in this figure since the previous year.
LEO data is not disaggregated between Manufacturing and Services sectors. The Deputy should note that the figure for the net number of jobs is determined by the sum of the number of net full-time jobs and half of the number of part-time jobs for each year in question.
Table 1 : Enterprise Ireland
|
Services |
2009 |
2010 |
2011 |
2012 |
2013 |
|
Full-time Gains |
3018 |
2716 |
2506 |
5094 |
4750 |
|
Full-time Losses |
4962 |
3297 |
2376 |
3035 |
2264 |
|
Net |
-1944 |
-581 |
130 |
2059 |
2486 |
|
Manufacturing |
|||||
|
Full-time Gains |
4425 |
5477 |
6570 |
7767 |
7782 |
|
Full-time Losses |
21559 |
10251 |
6694 |
6488 |
6648 |
|
Net |
-17134 |
-4774 |
-124 |
1279 |
1134 |
Table 2 : LEOs/CEBs
|
Years |
Full Time Gains |
Full Time Losses |
Other Time Gains |
Other Time Losses |
Net Full Time |
Net Other Time |
Net (Full Time + (Other Time/2)) |
|
2013 |
5278 |
-3967 |
3542 |
-3292 |
1311 |
250 |
1436 |
|
2012 |
4858 |
-4602 |
3772 |
-3003 |
256 |
769 |
640.5 |
|
2011 |
5331 |
-5901 |
3844 |
-3071 |
-570 |
773 |
-183.5 |
|
2010 |
4510 |
-4958 |
2955 |
-2296 |
-448 |
659 |
-118.5 |
71. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the number of jobs lost and created through foreign direct investment in each of the past four years and to date in 2014; the future expectations in this regard; and if he will make a statement on the matter. [48696/14]
View answer72. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the degree to which Ireland remains an attractive location for foreign direct investment; and if he will make a statement on the matter. [48698/14]
View answer75. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which other European locations have been noted as serious competitors for foreign direct investment; and if he will make a statement on the matter. [48701/14]
View answerI propose to take Questions Nos. 71, 72 and 75 together.
The Forfás Annual Employment survey reports on the job gains and losses in companies supported by the industrial development agencies. Data is gathered on an annualised basis and is aggregated at county level. Data for 2014 will not be available until early in 2015. Details of the number of jobs gained and lost in companies that are supported by IDA Ireland are set out in the following tabular statement.
Attracting Foreign Direct Investment (FDI) to Ireland has been one of the key pillars of Ireland’s industrial policy over the last 40 years. That policy has proved to be particularly successful as, at the end of 2013 there were 161,112 people employed in IDA client companies. At the beginning of January 2014 IDA Ireland assumed responsibility for companies that had been clients of Shannon Development thereby increasing the number of people employed in IDA Ireland client companies to in excess of 166,000.
Ireland continues to compete very well in the international marketplace for investment. For example over 100 investments were secured by IDA Ireland in the first six months of 2014, compared to 70 at the same time in 2013. Of the investments secured, 40% came from companies investing in Ireland for the first time. Projects approved during the first half of 2014 will lead to the creation of 8,000 jobs during 2014 and over future years as the companies roll out their investment plans.
Ireland is very much the number one location of choice of companies that want to internationalise. US corporations are choosing Ireland as the location of choice for their global operations. Ireland is now a strong exporting nation, with particularly strong performances in sectors such as ICT, Med Tech and Pharma.
In recent days IBM’s key Global Locations Report described Ireland as the ``top performer in the world’’ in terms of the quality of the investments that are attracted here.
Ireland is a location which large multinationals know and trust. They have been coming to Ireland for decades, for our talent pool, competitive tax offering, technology infrastructure and track record. Forbes magazine named Ireland as the best country in the world to do business in December 2013.
Within Europe, Ireland’s FDI performance positions us in absolute terms inside the top ten European locations for investment projects, with the UK, Germany and France the top locations. The range of countries competing for FDI in Europe demonstrates the intensity of the marketplace to secure investments for Ireland.
The economics of the past 5 years has changed Europe’s FDI landscape. Over the period, the UK, Germany, Netherlands and Belgium have maintained investor confidence, confirming their position as safe havens for FDI, with low risk and sustainable profitability. Ireland successfully adapted to the demands of the international economy and cost competitiveness, talent availability and targeted sectoral focus were underpinned by the strong economic management and certainty on the 12.5% corporate tax rate.
The United States continues to be the largest single investor in Europe accounting for about 25% of all inward investment projects and job creation. While Ireland is a very significant recipient of US FDI, the competition is intense with the UK, Germany and France the major overall beneficiaries of US investment into Europe.
That having been said, IDA Ireland recognises the challenges for Ireland and its regions in attracting FDI and, with this in mind, a new IDA Ireland strategy will be launched early in the New Year, detailing goals and the broad direction IDA Ireland will take to accomplish them over the next five years.
Table showing the number of jobs gained and lost in IDA Ireland client companies in each of the 5 years, 2009 to 2013 inclusive
|
- |
2009 |
2010 |
2011 |
2012 |
2013 |
|
No of Companies |
1,087 |
1,083 |
1,088 |
1,127 |
1,153 |
|
Total Jobs |
144,843 |
146,419 |
152,176 |
159,144 |
166,184 |
|
New Jobs Created (Gross Gains) |
6,322 |
14,279 |
14,494 |
15,209 |
13,552 |
|
Gross Losses |
-21,316 |
-12,703 |
-8,737 |
-8,241 |
-6,512 |
|
Net Change |
-14,994 |
1,576 |
5,757 |
6,968 |
7,040 |
73. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he continues to monitor the cost base for Irish industry with particular reference to comparison with other adjoining and EU jurisdictions; and if he will make a statement on the matter. [48699/14]
View answerCost competitiveness is an important aspect of Ireland's overall competitiveness. Substantial progress has been made in terms of improving Ireland's competitiveness in recent years.
The real Harmonised Competitiveness Indicator (HCI) is a measure of the trade-weighted exchange rate for Ireland, adjusted for relative price developments. In October 2014, Ireland's real HCI fell by 3.9 per cent year on year. A fall indicates an improvement in price competitiveness and leaves Irish-based firms better equipped to compete on the international market. Relatively low consumer price inflation over the last five years has meant that Irish price levels have fallen considerably relative to our euro area peers.
There has been a significant improvement in economy-wide cost competitiveness. The European Commission in its autumn forecasts estimate that real unit labour costs in Ireland will fall by 4.3 per cent annually in 2014 which is the largest decline across all EU Member States and compares with a fall of 1.2 per cent in the UK, and increases of 0.1 per cent in the EU, 0.2 per cent in the US and 0.3 per cent in the euro over the same time period. Competitiveness has been achieved through wage moderation vis-a-vis trading partners as well as productivity improvements.
We continue to monitor Ireland's cost competitiveness on a regular basis. This is specifically required under the Action Plan for Jobs 2014. Action 94 requires the National Competitiveness Council to “Benchmark key business costs and publish a report highlighting areas where Irish enterprise costs are out of line with key competitors”.
The report concentrates on the costs that are largely domestically determined such as labour, property, energy, water, waste, communications and business services. The NCC note that Ireland’s cost base has improved across a range of metrics over the last four or five years. This has made Irish firms more competitive internationally and made Ireland a more attractive location for firms to base their operations in. However, despite these improvements, the NCC note that it is essential that we continue to focus on reducing costs that comprise a significant percentage of business costs and that are out of line with those in competitor countries.
Addressing Ireland’s international cost competitiveness, therefore, remains a key economic priority for Government.
74. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which smaller indigenous companies may avail of assistance by way of support for research and innovation, with consequent improved job retention and creation prospects; the extent to which he sees such smaller companies being in a position to avail of such assistance in the current and following years; and if he will make a statement on the matter. [48700/14]
View answerInvestment in Research, Development and Innovation (RD&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 RD&I. National statistics show that companies engaged in RD&I are gaining an increasing share of sales, export sales and are accounting for increasing shares of employment. RDI performing firms have also demonstrated better employment retention during recent years. Exports from R&D performing companies increased significantly during the 10 years to end 2013 while over the same period exports for non R&D performing companies decreased significantly.
Enterprise Ireland and Science Foundation Ireland, provide a spectrum of science, technology and RD&I development programmes that deliver financial, technical and experiential support to help companies become more innovative, encourage and support competitiveness, and help them grow their sales and exports in order to create a climate in which sustainable employment will grow and expand.
Enterprise Ireland will support over 1,000 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.
Evidence from the evaluation of the range of Enterprise Ireland RDI programmes shows the direct return on this investment by way of impact on turnover. For example, companies supported by Enterprise Ireland to engage in collaborative R&D via the Innovation Partnership scheme created €6.69 in company turnover for every €1 Enterprise Ireland invested in the scheme which illustrates the considerable growth potential of engaging in this economically advantageous activity.
Aligned with this suite of supports, which are suitable for and available to companies based in Ireland of all sizes and stages of development, is a strong promotional strategy which seeks to inform companies of these incentives while also encouraging them to apply and reap the economic benefits from this economically advantageous activity.
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, coordinated by Enterprise Ireland on behalf of my Department, was the National Innovation for Industry Showcase held on 2 December 2014 in the National Conference Centre which was the first convention, in one location, of all the Irish State-supported large scale research centres, technology centres and national research institutes and facilities. The event introduced industry of all sizes to the excellent scientific research and disruptive technologies being developed in these centres and institutes and which are delivering solutions for industry in key areas including energy, food, health and medical technologies, ICT, manufacturing and services. It also provided an excellent opportunity for these centres to engage with companies as potential collaborators and to raise the awareness of the range of complementary RD&I supports available to companies in Ireland.
Continued and intensified promotion such as this will continue during 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.
