Written Answers Nos. 1-20
11. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the progress that has been made in the establishment of a national health innovation hub as promised under the Action Plan for Jobs; and if he will make a statement on the matter. [48140/14]
View answerIn 2014 the National Project Team for the National Health Innovation Hub finalised recommendations on the optimum arrangements for establishing the national Hub. These arrangements were arrived at by taking into consideration the experience to date of the (pilot) Demonstrator Project in Cork, and the outcome of an independent evaluation of the Demonstrator Project carried out by consultants during 2014. The consultants concluded that the Health Innovation Hub has potential to be a vital component of national innovation infrastructure and its value has been recognised by the relevant stakeholders in the healthcare sector and industry. The recommendations of the National Project Team formed the basis of proposals to Government which considered the next steps for establishing the National Health Innovation Hub.
In July 2014, Government agreed to the establishment of a National Health Innovation Hub that would be tasked with proactively developing, managing, and progressing relationships and connections with industry and the health system. A Joint Agency Project Team, chaired by Enterprise Ireland and comprising representatives from my Department, the Department of Health, the HSE, IDA Ireland, Science Foundation Ireland and the Health Research Board, has been established and is designing a competitive call for hosting the National Health Innovation Hub. It is intended that the competitive call will be launched in early 2015. Ministers Bruton and Varadkar can confirm that Mr Dave Shanahan an Industry Partner will chair the new implementation body.
12. Deputy Gabrielle McFadden asked the Minister for Jobs, Enterprise and Innovation the timelines and targets in relation to rolling out his Department’s regional enterprise strategy for the midlands region in 2015; and if he will make a statement on the matter. [48116/14]
View answerThe Government recognises the need to place a greater emphasis on supporting enterprise growth and job creation at regional level. Employment has increased in all regions - and nationally by 80,000 - since the start of the Action Plan for Jobs process in 2012.
Employment in the Midlands region increased by 8,000 since the start of 2012 and the unemployment rate for the Midlands region has decreased from 18.7% to 14.5%.
The 2014 Action Plan for Jobs contained a number of commitments to support competitive regions, including, within my own Department, developing a framework for new Regional Enterprise Strategies. This framework will provide a model for co-ordinated action across public bodies and other stakeholders to support enterprise development and jobs growth, based on the strengths and assets of each region.
Consultation with regional stakeholders is an essential part of developing the Regional Enterprise Strategies. Over the past number of months, officials from Enterprise Ireland, IDA Ireland and my Department have been involved in a series of engagements with stakeholder groups in the Midlands to discuss the strengths and opportunities that can be built upon to support enterprise and jobs growth. This consultation process will continue with a Regional Enterprise Forum in Athlone on the 19th December.
Following on from this consultation process, I expect to publish the Regional Enterprise Strategy for the Midlands in early 2015. The Strategy will include specific actions and targets on the part of Enterprise Ireland, IDA Ireland, Local Enterprise Offices, and other public bodies active in the region, to promote enterprise growth and job creation. The Regional Enterprise Strategies will need to be dynamic and flexible and capable of capturing any new ideas or opportunities that emerge over their life span.
Similar strategies for the other regions will be developed over the course of next year, on a phased basis.
13. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the launch of distinct employment strategies for the regions as envisaged in the Action Plan for Jobs. [48148/14]
View answerI am encouraged by the level of interest the House is showing in the delivery of the new Regional Enterprise Strategies which my Department is leading on. As I have mentioned previously, the Government recognises the need to put a greater emphasis on supporting enterprise growth and job creation at regional level.
While employment has increased nationally by approximately 80,000 since the start of the Action Plan for Jobs process in 2012 regions of the country which have faced difficulty in recent years are now showing strong employment growth – with the Border, West, Mid West, South West and South East showing the strongest jobs results in the past quarter. The pace of progress in the regions – and especially those with the highest unemployment levels - needs to be accelerated through targeted supports for enterprise growth and job creation.
Vibrant and competitive regions are important, not just from an economic perspective, but also from a societal point of view. Growing the economic base of regions will support social cohesion and provide opportunities for young people, in particular, to continue to live and work in their local communities.
My Department has developed a framework for Regional Enterprise Strategies which will be applied to produce action-oriented plans to support enterprise growth and jobs in the regions, commencing with the Midlands in the New Year, followed by the South East region. Similar strategies for the other regions will be developed over the course of the year, on a phased basis.
Developing the jobs potential of the regions can best be achieved through better coordination and collaboration by all stakeholders operating within the region, including the enterprise agencies, other public bodies, education and skills providers, and enterprise itself. Consultation with regional stakeholders is a fundamental part of developing the Regional Enterprise Strategies.
My officials have also been working closely with the Department of the Environment, Community and Local Government to ensure that the Regional Enterprise Strategies will dove-tail with, and contribute to, the Local Economic and Community Plans to be developed over the coming year by the Local Authorities, and the Regional Spatial and Economic Strategies to be prepared by the Regional Assemblies.
The aim of the Action Plan for Jobs is to help enterprises to create employment in all regions of the country. If we are to do this successfully, it is important that each region builds on its particular strengths and assets to provide an environment that stimulates entrepreneurship and attracts both indigenous and foreign investment. The 2015 Action Plan for Jobs, which I am currently finalising on behalf of the Government, will build on the work we have commenced in 2014 and place a strong emphasis on enterprise and jobs at regional level.
14. Deputy Gabrielle McFadden asked the Minister for Jobs, Enterprise and Innovation the stakeholders who have been involved in the consultative process to date for the regional enterprise strategy for the midlands region; and if he will make a statement on the matter. [48117/14]
View answerAs I have outlined previously, the new Regional Enterprise Strategies which my Department is leading on will be underpinned by consultation with the key stakeholders in each region. These stakeholders include public sector bodies, business people, industry representatives, educational institutions and other parties who have a role to play in the economic development of the regions.
Over the past number of months, officials from my Department, along with Enterprise Ireland and IDA Ireland have been involved in a series of engagements with stakeholder groups in the Midlands region.
“Brainstorming” sessions have been held with three groups of stakeholders to identify initial areas of opportunity for enterprise growth and job creation. These consultations involved:
- a Public Agencies group,
- an Industry group, and
- a Skills/HR group.
The Public Sector Group included representatives from Enterprise Ireland, IDA Ireland, the Regional Assembly, Local Enterprise Offices, Local Authorities and Athlone Institute of Technology.
A number of key IDA Ireland and Enterprise Ireland client companies operating in the region were invited to participate on the Industry Group.
The Skills/HR Group comprised representatives from a number of IDA and EI client companies, Athlone Institute of Technology, the National University of Ireland Maynooth, and the Education and Training Boards from within the region.
My Department and the enterprise agencies also attended an event organised by the Midlands Gateway Chamber in Glasson, Athlone, on 20th November.
The consultation process will continue with a Midlands Regional Enterprise Forum in Athlone on the 19th December, which will bring together a wider range of stakeholders, including representatives from the Retail Sector, LEO clients, community-based enterprises, Commercial State Bodies and Fáilte Ireland, to discuss the strengths and opportunities that can be built upon to support enterprise and jobs growth in the region. Members of the Oireachtas representing the Midlands region have also been invited to the event.
The consultation process will inform the Regional Enterprise Strategy for the Midlands which will be published early in the New Year.
15. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation the level of engagement with stakeholders in the preparation of the 2015 Action Plan for Jobs; the organisations and persons involved in the consultation process; the mechanism to determine which measures are included; and when it is anticipated that the new plan will be launched. [48151/14]
View answerI and my Department formally began the process of developing Action Plan for Jobs 2015 in July this year. The next Action Plan will be informed by the work of the National Competitiveness Council but we are also continuing the process of previous years whereby direct input from industry and wider stakeholders is sought and considered. One of the factors that has made the APJ process such a success has been the input, support and partnership with business and others in developing and progressing the Plans.
To supplement the ongoing research undertaken by my Department, its agencies and across the government system, as well as the feedback I receive via my many engagements with business and other groups, I met formally with stakeholders in the interim. I have held meetings dedicated to APJ2015 with representatives from IBEC, American Chambers, SFA, Chambers Ireland, ISME, ICTU, SIPTU, IMPACT, UNITE and the INOU, seeking their views on the shape and content of APJ2015. At these meetings I hear directly from groups about the competitiveness issues to be addressed, the priorities within those, and suggested actions to be taken across Government. I also held a roundtable discussion with a small group of entrepreneurs to garner their views on how best we can continue to support start-up activity in Ireland. In many cases these face-to-face discussions were followed-up with formal written submissions to my Department from stakeholders. A written request for submissions was also issued to stakeholders to accompany the open-call for submissions on my Department’s website. Engagement across the government system on Action Plan for Jobs 2015 has also been ongoing with Departments and Agencies since the summer.
In addition, we have taken on board suggestions made by the OECD in their preliminary review of the APJ process. That OECD review will inform the development of APJ2015 in a way that helps maximise the impact of actions on our competitiveness.
As is the case every year, all submissions are collated and analysed by my Department and considered by individual Departments and by government via the Cabinet Committee on Economic Recovery and Jobs. Intensive work on the content of APJ2015 is continuing, and drafting is expected to be completed early in the New Year with publication shortly thereafter.
16. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the work of the consultative committee on jobs in the green economy; and if he will make a statement on the matter. [48141/14]
View answerThe Consultative Committee on Jobs in the Green Economy was established in 2013 arising from a commitment in Delivering our Green Potential, the Government’s Policy Statement on Growth and Employment in the Green Economy. The Committee was established to help identify emerging opportunities for Ireland in the Green Economy and any enablers or barriers to seizing those opportunities. The Committee, which I chair, involves representatives from the enterprise sector as well as relevant Government Departments and agencies.
The Committee met on three occasions in 2013 and twice this year, and has considered range of issues including:
- the potential for waste reduction, as well as for the re-use and re-cycling of waste, to support enterprise competitiveness and jobs;
- access to Finance for companies in the cleantech sector;
- Research, Development and Innovation in the Green Economy;
- areas of potential market growth for green products and services; and
- the potential for better use of Green Public Procurement to support innovative companies based in Ireland.
The Committee has also provided input to the Action Plan for Jobs process.
The Green Economy presents a major economic opportunity for employment creation in Ireland. We have significant strengths and advantages which we can leverage to exploit business opportunities at home and in overseas markets in sectors such as sustainable food production, tourism, green financial services, green products and services, waste management, water and waste water management, renewable energy, smart grids and energy efficiency.
The demand for green products and services is likely to increase over the coming years on foot of the EU’s Climate and Energy targets to 2030 and the prospect of an international agreement on Climate Change at the end of 2015. Our objective is to ensure that Irish companies are well prepared to benefit from these new market opportunities as they arise.
17. Deputy Paul Murphy asked the Minister for Jobs, Enterprise and Innovation his views that an accurate reflection of Irish economic activity that exports Irish-resident companies manufactured abroad are now counted as Irish exports; and his views that this increase in exports will benefit job creation here. [48146/14]
View answerI understand that the Deputy’s question refers to contract manufacturing. The national accounts show that exports grew by 13.0 per cent year-on-year in the second quarter of this year, with goods exports up nearly 16 per cent. This was not matched by proportionate import growth, despite the growth in domestic demand in the same period. As a result net exports increased by 11.0 per cent year-on-year in the second quarter to stand at €11.2 billion, or 24 per cent of GDP.
Part of the strong performance in goods exports, shown in the national accounts, can be put down to what is known as contracted manufacturing. This contracted production occurs when an Irish-resident (though not necessarily Irish-owned) enterprise contracts a plant abroad to produce a good for supply to a third country. The sale of the good is recorded as an Irish export, as the economic ownership of the good prior to sale is regarded as belonging to the Irish-resident enterprise. Imports used in the production process are also recorded as Irish imports. Neither these exports nor imports associated with contracted production are recorded in the monthly trade series which is based on measurement of when goods physically cross the Irish border.
Contracted production involves very little employment effect or second-round impact on the wider economy and complicates the task of forecasting net exports. Developments in contract production are sector-specific and product-specific and have little relationship with concurrent indicators of export performance. As such, they have the potential to unwind or accelerate with potentially large impacts on measured GDP.
Notwithstanding these developments, there is no doubt that economic recovery has gained momentum this year and that it has broadened to include a recovery in domestic demand. High-frequency data such as retail sales, industrial production and purchasing managers' indices (PMIs) are all in strong positive territory. Employment growth resumed in 2012 and the Live Register continues to fall month-on-month
As stated above, contract manufacturing is not included in the CSO Monthly trade statistics. The latest goods exports statistics released by the CSO shows that exports of goods in October 2014 increased by 4% compared to October 2013, while, for the 10 months period to October 2014, exports of goods increased by 2%, compared to the same period for 2013. Sustainable broad based export-led growth is essential to rebuilding our economy and growing employment. The Government’s Action Plan for Jobs places a specific emphasis on growing opportunities in overseas market.
18. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the latest round of talks between the EU and the US on the Transatlantic Trade and Investment Partnership scheduled for December 2014; and if he will make a statement on the matter. [48150/14]
View answerThe last round of negotiations between the EU and the US on the Transatlantic Trade and Investment Partnership took place during the week beginning 29 September last, the report of which can be found on the EU Commission’s website at: http://trade.ec.europa.eu/doclib/press/index.cfm?id=1158&title=EU-US-trade-–-7th-round-of-talks-on-transatlantic-trade-pact-ends-in-the-US.
I understand that the eighth round is scheduled to take place during the week of 2 February 2015.
19. Deputy Paul Murphy asked the Minister for Jobs, Enterprise and Innovation the steps he will take to end the practice of some employers using subcontracting to lower the cost of labour; and if he will make a statement on the matter. [48143/14]
View answerIreland’s robust suite of employment rights legislation is underpinned by a proactive labour inspectorate. The National Employment Rights Authority (NERA) has a team of inspectors, and in 2013 NERA carried out over 5,500 inspections. Where NERA encounter the sub-contractor model, the question may arise as to whether individuals are employees or self-employed. NERA Inspectors are not in a position to make a final determination regarding employment status. Rather, this is a matter for both the Department of Social Protection (DSP) and the Revenue Commissioners. Where NERA inspectors encounter situations in which there is a question over the employment status of an individual, they refer the matter to the relevant authority. Where either the Department of Social Protection or the Revenue Commissioners 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.
NERA has statutory authority to share information with the Revenue Commissioners and the Department of Social Protection. In addition, NERA is a member of the Hidden Economy Monitoring Group, a non-statutory multi-agency group comprising of representatives from business groups, trade unions and State agencies, including the Department of Social Protection and the Revenue Commissioners, who have a common commitment to tackle the shadow economy. Publicly funded construction projects are subject to ongoing supervision and inspection by the enforcement agencies of the State (i.e. Revenue, DSP and NERA - acting as Joint Inspection Units).
Workers who consider they are not receiving the National Minimum Wage can make a complaint to NERA, or a Rights Commissioner. Complaints in relation to non-payment of wages, or a deficiency in the wage rate can also be made to a Rights Commissioner. The proposed Industrial Relations (Amendment) Bill will provide for a new statutory framework to replace the former sectoral Registered Employment Agreement (REA) system. The new framework will enable the establishment of minimum rates of remuneration and other terms and conditions of employment in specific sectors, including the construction sector. The Heads of the proposed Bill provide for a definition of “worker” based on section 23 of the Industrial Relations Act 1990. In this context, it is proposed that the term “worker” will include a person who has entered into or works under a contract with an employer to personally execute any work or labour. The High Court has interpreted the term “worker” in section 23 as including a subcontractor providing services personally under a contract for service. In addition, the Labour Court had found in a number of cases that self-employed subcontractors in the construction sector were covered by the terms of the REAs for the Construction Industry.
20. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation the way he plans to deal with the anticipated substantial extra workload on Labour Court-LRC staff arising from the Workplace Relations Bill and his plans to increase staff numbers to ensure an efficient, accessible and timely service is delivered. [47998/14]
View answerThe Workplace Relations Bill provides for the establishment of a statutory Workplace Relations Commission (WRC) with a full range of functions formerly carried out by the Labour Relations Commission (LRC), including Rights Commissioner Service, the Equality Tribunal, the Employment Appeals Tribunal and the National Employment Rights Authority (NERA). The Bill will also provide for the Labour Court to be the appellate body to determine, among other matters, appeals against decisions of WRC Adjudication Officers.
A Staffing and Structures Plan for the Workplace Relations Commission (WRC) and the Labour Court has been drawn up. Compliance, inspection, enforcement, conciliation, advisory and other services currently provided by NERA, the LRC and the Equality Tribunal will be incorporated into the WRC. Certain elements of this Plan, including the establishment of shared services units to deal with the receipt, validation, registration and scheduling of complaints, have already been put in place. These and other synergies and efficiencies, underpinned by significant investment in new technology and enhanced business processes, will reduce the cost of service delivery.
Within this context, however, I remain committed to the delivery of a world-class workplace relations service which is simple to use, independent, effective, impartial, cost effective, provides for workable means of redress and enforcement within a reasonable period and reduces costs for businesses and employees. In this regard I am anxious to ensure that the Labour Court and the WRC have the resources necessary to meet this objective.
Six additional staff were assigned in order to facilitate the establishment under the Reform Programme of the Pilot Early Resolution Service currently operated within the Labour Relations Commission. This Service will be amalgamated with the Equality Mediation Service currently provided by the Equality Tribunal to form a dedicated Mediation Service to be operated by the WRC. The objective of this Service will be to resolve first instance complaints and disputes as early as possible and without recourse to adjudication, thus reducing pressures on the WRC’s Adjudication Services.
All first instance complaints will be heard by WRC Adjudication Officers. On the establishment of the WRC the current cohort of Equality Officers together with the Labour Relations Commission’s Rights Commissioners will be appointed as WRC adjudicators. They will be supplemented by a panel of external adjudicators appointed by me. The Public Appointments Service (PAS) is currently undertaking the selection process for this panel which will comprise industrial relations and HR practitioners and employment lawyers with appropriate skills and experience.
It is estimated that the caseload of the Labour Court will increase significantly arising from the Court’s assumption of responsibility for dealing with appeals which had previously been referred to the Employment Appeals Tribunal. The current strength of the Labour Court is nine comprising the Chairman, two Deputy Chairs and six members. Additional resources will be required for the Court to deal with an increase of this magnitude and arrangements to appoint an additional Division of the Court and two additional Deputy Chairs are currently being put in train.
Separately, it is intended that provision will be made to allow the Chairman and Deputy Chairs of the Court to sit alone in matters such as case management conferences, adjournment applications, examining the merits of certain appeals or other routine matters, thus allowing the Divisions to focus on contested cases. The provision of an additional Deputy Chair for the Court will allow Divisions to continue to sit if a Chairman or Deputy Chair has to attend to drafting and related work.
I am confident that these changes will further enhance the efficiency and productivity of the Court and will allow it to cope with an increased caseload without a corresponding increase in its strength.
