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Tuesday, 3 Mar 2015

Written Answers Nos. 243-258

Farm Safety

Questions (243)

Brendan Griffin

Question:

243. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation if the installation of safety seats will be considered as acceptable for younger passengers on farm vehicles; and if he will make a statement on the matter. [9287/15]

View answer

Written answers

The Health and Safety Authority Code of Practice on Preventing Accidents to Children and Young Persons in Agriculture prohibits children under the age of 14 from riding on agricultural machines including agricultural trailers unless a risk assessment shows it to be safe to do so.

Farmers must prepare a Safety Statement to comply with Section 20 of the Safety, Health and Welfare at Work Act, 2005. It must be based on an identification of the hazards and an assessment of the risks, so as to ensure their own safety and that of other persons in the workplace (e.g. children or young persons assisting in work activities).

However, the Code provides that children between the ages of 7 and 16 may ride on a tractor provided the tractor is fitted with a properly designed and fitted passenger seat (with seat belts) inside a safety cab or frame.

It is important to always remember that farms are workplaces. Most fatal accidents involving children on farms occur as a result of their straying into areas where work is taking place. A relaxed approach to the presence of children in and around farm vehicles and the normalisation of such activity can be a contributing factor in increasing the risk of fatalities.

Questions (244)

James Bannon

Question:

244. Deputy James Bannon asked the Minister for Jobs, Enterprise and Innovation the budget and job creation targets for the local enterprise office in County Longford for the years 2011 to 2014, inclusive; the targets for 2015; and if he will make a statement on the matter. [8773/15]

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Written answers

The Local Enterprise Office (LEO) Longford replaced the County Enterprise Board (CEB) for Longford on 15 April 2014 to become the first-stop-shop for micro- and small-enterprise development within the County.

Enterprise Ireland (EI) is responsible for allocating budgets to individual LEOs for both current administration and capital requirements. Details of the budget allocations for LEO Longford for the years from 2011 to 2014 are set out in the table below. The Deputy is asked to note that the Budget allocations for the years from 2012 to 2014 include additional allocations that were made to LEO Longford arising from additional funding that became available from savings within the Department’s Vote during the year. In addition, the allocation to the LEO Longford in 2014 includes funding of €56,000 under the Ireland’s Best Young Entrepreneur competition (IBYE).

In 2014, enterprises supported by LEO Longford created 206 new jobs (134 full time and 72 other time). However, when job losses among LEO clients are taken into account the net effect was the creation of 75 jobs (74 full time and 1 other time). At the end of 2014, there were 899 persons (680 full time and 219 other time) employed in 222 enterprises supported by Longford LEO.

Formal job creation targets were not a feature of the operation of the CEBs prior to dissolution. However, one of the major elements of the reform of the CEB structure that I implemented was the development of a set of rigorous performance metrics for the LEOs.

The LEO Longford is expected to develop specific targets for these metrics, in conjunction with EI, as part of its annual Local Enterprise Development Plan (LEDP) for 2015. The LEDP for Longford for 2015 is currently being prepared and it is expected that the Plan and associated targets will be available through the local enterprise website at www.localenterprise.ie shortly.

Year

LEO / CEB

Budget Allocation

2014

LEO Longford / Longford CEB

€647,430

2013

Longford CEB

€817,636

2012

Longford CEB

€666,075

2011

Longford CEB

€605,764

Job Creation

Questions (245)

James Bannon

Question:

245. Deputy James Bannon asked the Minister for Jobs, Enterprise and Innovation his plans to create manufacturing jobs in County Longford; and if he will make a statement on the matter. [8774/15]

View answer

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 (APJ) for 2013, 2014 and 2015. Developing manufacturing was adopted as a Disruptive Reform in the APJ and one of the key actions is the delivery of a National Step Change initiative to strengthen Ireland’s manufacturing base across all firms engaged in manufacturing i.e. small and medium-sized firms and larger multi-nationals, particularly in higher-value sub sectors such as chemicals, pharmaceuticals, medical devices and food. In addition, a wide range of training and educational initiatives are underway by the relevant providers, such as Skillnets. Other actions include encouraging entrepreneurship, supporting startup activity, further improving our skills base, assisting our businesses to grow, improving access to finance by SMEs and developing and deepening opportunities from global investment.

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. However it would be a mistake to concentrate on a specific sector to drive job creation in a particular county. IDA Ireland, Enterprise Ireland and the Local Enterprise Office (LEO) work with companies in all sectors and Longford can benefit from the supports offered by those bodies.

I am very conscious of the difficulty in attracting new industry to the regional centres. For this reason I have initiated the development of new Regional Strategies, to be rolled out this year, starting with the Midlands region. I am hopeful that this new approach will help to reinvigorate the industrial base of areas which are away from the main urban centres.

The Government is committed to strong job creation in all regions of the country. This policy is already working – for example the Midlands Region, which includes County Longford, has seen its unemployment rate reduced from 19.5% in Quarter 3 2011, shortly after this Government took office, to 13.1% at the end of last year, with 12,000 additional jobs in place there. Employment in Enterprise Ireland supported companies in Longford is up 17% since this Government has come in to office and I anticipate that the Regional Strategy will seek to build on that progress. While the current unemployment rate is still unacceptably high, the numbers on the Live Register have fallen by 18% since this Government came into office. It illustrates the significant progress which the Government has achieved and I am confident that the trend will continue downwards.

IDA Site Visits

Questions (246)

Frank Feighan

Question:

246. Deputy Frank Feighan asked the Minister for Jobs, Enterprise and Innovation the number of Industrial Development Agency sponsored visits that took place in Ballinasloe, County Galway, between 2011 and 2014; the number of agency supported companies in Ballinasloe between 2011 and 2014; the agency’s plans to encourage job creation in Ballinasloe; and if he will make a statement on the matter. [8862/15]

View answer

Written answers

I am informed by IDA Ireland that in the four year period 2011 to 2014 inclusive, there has been a total of 87 IDA Ireland sponsored site visits by potential investors to County Galway. The number of site visits paid in each of the years in question is set out in the tabular statement. For reasons of client confidentiality and commercial sensitivity, such as the potential impact on future property transactions, it is prudent to provide details of such visits on a county by county basis only.

In respect of Ballinasloe, there is currently one IDA client company, Aptar, which manufactures cosmetic dispensing systems. Aptar is based in the IDA Business & Technology Park, where the other major tenant is Creagh Medical, an Enterprise Ireland medical technology company. They occupy 65,000 ft² and 29,000 ft² facilities respectively. Across its range of overseas offices, IDA Ireland actively markets the remaining available land on the park , approximately 24 acres, for new investment.

IDA also works closely with the private property sector to influence the provision of appropriate and cost effective solutions suitable for mobile FDI opportunities and markets appropriate existing private sector buildings. IDA is actively marketing the former AT Cross building in Ballinasloe which is a c. 20,000 ft² facility on a 10 acre site with an existing Planning Permission for c. 54,000 ft² facility with a c. 9-mth construction time frame. IDA also actively markets another c. 25,000 ft² building in Ballinasloe. From an FDI promotion perspective these are both very attractive and appropriate properties.

County Galway has had particular success in recent years in terms of attracting inward investment particularly in the areas of Medical Technologies and ICT. The 2014 Annual Employment Survey shows that there are 63 IDA Ireland client companies in Galway (City and County) an increase from 2011 when the corresponding figure was 60. These companies employ over 13,800 people in full and part time employment. In the four year period from 2011 to 2014, almost 5,000 new jobs were created in IDA Ireland client companies in Galway ( City and County).

As a Government, we are determined to ensure that every region in the country will benefit from recovery and we recently announced details of the Action Plan for Jobs-Regional initiative which will seek to maximise the strengths and assets of each region to support enterprise growth and job creation. The objective is that six Regional Action Plans will be launched by July, with two remaining Strategies in development at that stage.

Additionally the Government will provide up to €250 million over five years in additional capital funding to support regional enterprise development. This includes the roll out of a five year, €150 million property investment programme by IDA Ireland to attract foreign direct investment into the regions. This programme will build on the recent investment by the Agency in a number of advance manufacturing facilities in regional locations. A further sum of up to €100 million will be available to Enterprise Ireland to support enterprises in the regions to start-up, grow and export, thereby creating more jobs in regional locations.

Last week I also launched IDA Ireland’s new strategy for the 5 year period 2015 to 2019. In that Strategy the Agency set itself a target of winning 900 investments over the 5 year period of increasing increase the level of investments won into in each region by between 30% and 40% during the lifetime of the strategy.

To date this year there have been two significant announcements for County Galway. Apple announced last week that it is to invest €850 million in a data centre to be built and located in Derrydonell near Athenry, Co. Galway. The new centre will be the company’s largest data centre project in Europe, providing 300 jobs during its multiple phases. In January Zimmer, a worldwide leader in musculoskeletal health care, announced that it will invest over €50m and create up to 250 new manufacturing jobs over the next 5 years as it expands its footprint in Ireland in its new facility in Oranmore, Co. Galway. I look forward to continuing investment and job announcements for county Galway and the West region during the year

Table showing the number of IDA sponsored site visits by potential Investors to County Galway (incl. Galway City) in each of the years 2011, 2012, 2013 and 2014

Year

2011

2012

2013

2014

Number of site visits

35

18

15

19

Action Plan for Jobs

Questions (247)

Frank Feighan

Question:

247. Deputy Frank Feighan asked the Minister for Jobs, Enterprise and Innovation if the new Action Plan for Jobs: Regional will specifically target towns like Ballinasloe, County Galway, in need of urgent investment; his plans to secure such investment; and if he will make a statement on the matter. [8863/15]

View answer

Written answers

The aim of the Action Plan for Jobs is to help enterprises to create employment in all regions of the country. The latest Quarterly National Household Survey figures form the CSO show that employment has increased nationally by over 89,000 since the start of the Action Plan process in 2012. However, not all regions are yet fully experiencing the benefits of economic recovery. That is why the Government is placing an increased emphasis on supporting jobs growth in the regions. Last month, the Government announced details of the Action Plan for Jobs: Regional initiative which will seek to maximise the strengths and assets of each region to support enterprise growth and job creation. The Regional Action Plans will identify specific measures that can be taken to help each region to realise its economic potential, with a view to increasing the number of people at work in the region.

My objective is that six Regional Action Plans, including one for the West region, will be launched by July, with two remaining Plans in development at that stage.

It is not intended that Regional Action Plans will target every individual town for job creation or investment but, rather, that these plans will identify measures that can be taken to enable the region as a whole to build on its competitive strengths and increase the number of people at work the region.

In launching the Action Plan for Jobs: Regional initiative, I also announced that new funding of up to €250 million will be made available over the next five years to support job creation through enterprise growth in the regions. This includes €150 million for an IDA property investment programme to attract foreign direct investment into the regions, and €100 million to Enterprise Ireland to support indigenous enterprises to start up, grow and export.

As part of IDA’s capital investment programme, a total of nine locations were identified in the recent announcement as headline investments to occur in the period 2015-2017; these investments include facilities at Galway and Castlebar within the West Region.

The Enterprise Ireland funds will be distributed through three new competitive calls which will be announced by Enterprise Ireland over the coming months. The first of these calls will focus on community-driven enterprise initiatives, the second will focus on new ideas emerging from the Local Enterprise Offices and a third, broader, competitive regional call will support significant projects or initiatives to improve enterprise capability in the region. Funding will be allocated to the best ideas across the regions. Tangible jobs impact, enterprise start-up and scaling are amongst the criteria against which applications will be measured. Innovative collaborations among different regional agencies or stakeholders will also be favourably weighted.

Trade Missions

Questions (248)

Thomas Pringle

Question:

248. Deputy Thomas Pringle asked the Minister for Jobs, Enterprise and Innovation if his Government, during the Ministers' trade missions over Saint Patrick's weekend, will be promoting the north-west region as a potential destination for Industrial Development Agency supported companies coming to Ireland; the total number of agency visits to County Donegal in 2014; and if he will make a statement on the matter. [9042/15]

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Written answers

Each year I, along with my colleagues in Government, lead a number of trade and investment missions across the globe to support Irish companies selling abroad and to attract foreign direct investment to this country. These missions are in support of the work being done on the ground by the enterprise development agencies Enterprise Ireland and IDA Ireland.

The value of the St Patrick’s Day promotions cannot be overstated. It is the best period in which to showcase “Team Ireland” in operation abroad. Last year’s programme reached an audience of over 353,000 directly and 80 million through media coverage and assisted in securing €5 million in new business for Irish exporters.

I would like to assure the Deputy that I will of course use every opportunity during the coming St Patrick’s Day events abroad to attract foreign direct investment to Ireland and its regions, including the North West but I must remind the Deputy that despite efforts to influence location the decision on where to locate is taken in all cases by the investor.

I am informed by IDA Ireland that in 2014 there were 6 IDA sponsored site visits by potential investors to County Donegal.

As a Government, we are determined to ensure that every region in the country will benefit from recovery and we recently announced details of the Action Plan for Jobs-Regional initiative which will seek to maximise the strengths and assets of each region to support enterprise growth and job creation.

Last week I also launched IDA Ireland’s new strategy for the 5 year period 2015 to 2019. In that Strategy the Agency set itself a target of winning 900 investments over the 5 year period and of increasing increase the level of investments won into in each region by between 30% and 40% during the lifetime of the strategy.

Credit Guarantee Scheme Implementation

Questions (249)

Dara Calleary

Question:

249. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation in view of the recent extension of the credit guarantee scheme to allow businesses, whose banks are exiting the Irish market, avail of this scheme, if he will include businesses whose banks are remaining in the Irish market but selling the businesses loans to external investment funds; and if he will make a statement on the matter. [9048/15]

View answer

Written answers

The SME Credit Guarantee Scheme (CGS) was introduced to encourage additional lending to SMEs and not as a substitute for conventional lending that would otherwise have taken place.

A review of the CGS was undertaken and laid before the Oireachtas in July 2014.

As a result of the review of the CGS and on foot of immediate concerns raised by the Credit Review Office, Business Representative Organisations and the banks, I decided to take urgent action to assist SMEs whose banks have left or are leaving the Irish SME lending market. A new CGS 2015 has now been made in accordance with the terms of the Credit Guarantee Act 2012 which will allow guarantees for refinancing loans where an SME's bank has exited or is exiting the Irish SME market. This new Scheme will also increase the maximum length of guarantees under the CGS from 3 years to 7 years.

To bring this Scheme into operation there are a number of steps to conclude with the participating banks including certification, approval and legal agreements. It is hoped that the new Scheme will be operational in the very near future.

In addition, my Department is currently working on amending the primary legislation and once this is completed I will introduce a new CGS, which will include the following improvements: a wider range of financial products to be covered not just traditional credit products, an increase in the level of guarantee on individual loans from 75% to the maximum permissible under State Aid rules of 80%, an increase in the portfolio cap and the removal of the annual portfolio cap.

My Department also continues to monitor market failures in this area and will take action as appropriate when a complete assessment of the situation has been undertaken.

Departmental Legal Costs

Questions (250)

Billy Kelleher

Question:

250. Deputy Billy Kelleher asked the Minister for Jobs, Enterprise and Innovation if his Department, or State bodies or agencies under the aegis of his Department, use solicitors' firms (details supplied); the amount paid to these solicitors, each year from 2011 to 2014 by his Department, or State bodies or agencies under the aegis of his Department; the date until which his Department, or State bodies or agencies under the aegis of his Department, are contracted to use these solicitors' firms; and if he will make a statement on the matter. [9197/15]

View answer

Written answers

My Department did not engage the services of McCann Fitzgerald in the period 2011 to 2014. The amount paid to Arthur Cox solicitors by my Department and its offices for the years 2011 to end 2014 is as follows:

January – December 2011

Amount paid €

Dates of contract (if applicable)

135,288.00

13th September 2010 - 12th September 2011

January – December 2012

Amount paid €

Dates of contract (if applicable)

43,188.00

13th September 2011 - 10th May 2012

3,188.86

Not applicable

January – December 2013

Amount paid €

Dates of contract (if applicable)

5,712.00

Not applicable

January – December 2014

Amount paid €

Dates of contract (if applicable)

14,823.00

Not applicable

In 2014 Forfás, prior to its dissolution and in advance of its integration into my Department on 1 August, used the services of McCann Fitzgerald Solicitors, as follows:-

Amount paid €

Dates of contract (if applicable)

12,032.40

Not applicable

My Department seeks, where possible, to minimise legal costs and has adopted a number of measures to achieve this. The Department/Offices avail of the services of the Chief State Solicitors Office and the Attorney General’s Office in terms of the provision of legal advice and in terms of representation of the Department/Offices in Court cases.

Payment for contracts to Arthur Cox solicitors and McCann Fitzgerald solicitors is a day-to-day matter for the individual Agencies concerned, for which I have no direct function.

I have asked all Agencies under the aegis of my Department to advise me of any legal fees paid to these two firms for the years 2011 - 2014, and I will communicate this information to the Deputy as soon as it is available.

Company Law

Questions (251)

Billy Kelleher

Question:

251. Deputy Billy Kelleher asked the Minister for Jobs, Enterprise and Innovation if he will respond to concerns (details supplied) regarding the imposition of an audit requirement, as a penalty on companies, which file their annual returns late with the Companies Registration Office; and if he will make a statement on the matter. [9219/15]

View answer

Written answers

As part of its work programme for 2010/2011 the Company Law Review Group (CLRG) examined the penalties that apply to companies that do not submit their company annual returns by the statutory deadline. These are known as late filing penalties and include monetary fines and loss of audit exemption for two years. The purpose of the review was to assess the proportionality of those penalties. The CLRG concluded that no change should be made to the level of late filing penalties but it did make a recommendation that where a company seeks a waiver from the payment of late filing fees, the grant of that should not be within the powers of the Companies Registration Office (CRO), but rather should be determined by a court of competent jurisdiction, preferably the District Court. The recommendation was given effect in Section 343 (7) of the Companies Act 2014. I hope to commence the 2014 Act from 1 June 2015.

Since the late filing penalties were introduced in 2001 there has been a significant increase in compliance by Irish companies with their annual filing obligations. Whereas prior to 2001, only 13% of companies filed their annual returns on time, currently over 90% of companies file on time.

I am informed that all companies are advised of their responsibilities under the Companies Acts at the time of incorporation, including their statutory obligations regarding the filing of annual returns and the fact that failure to file annual returns on time results in late penalties, loss of audit exemption and potentially prosecution.

The CRO provides information on its website about these requirements and also issues reminder letters to companies in advance of their Annual Return Date to remind them of their obligations to file annual returns.

Legislative Programme

Questions (252)

Terence Flanagan

Question:

252. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation when the Construction Contracts Bill will be enacted; and if he will make a statement on the matter. [9241/15]

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Written answers

The Government approved the delegation of responsibility for implementation of the Construction Contracts Act, 2013 to my colleague, the Minister of State for Business and Employment, Mr. Gerald Nash T.D., in November. Work is continuing on the preparations for the full implementation of the Act, as the commencement of the Act is dependent on a number of factors set out in the legislation. These factors include the appointment of a Panel of Adjudicators by Minister Nash and the selection of the adjudicators for this Panel will be achieved through an open competitive process to be arranged by the Public Appointments Service, at the earliest opportunity. Minister Nash is also overseeing the preparation of a Code of Practice for the conduct of adjudications, which will be binding on all adjudicators operating under the Act, the drafting of which is at an advanced stage and will be finalised after consultations have concluded with the construction industry stakeholders. A specific date for implementation of the Act will be announced in advance once the necessary arrangements have been finalised, in order to provide sufficient notice to those affected by the Act's provisions.

Low Pay Commission Remit

Questions (253)

Dara Calleary

Question:

253. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the terms of reference, and guidelines, to the recently announced Low Pay Commission; and if he will make a statement on the matter. [9272/15]

View answer

Written answers

The Terms of Reference for the Low Pay Commission agreed by Government are as follows:

"Context

The National Minimum Wage Act 2000 provides for a “national minimum hourly rate of pay” – the minimum wage. The aim of the legislation is to provide for a guaranteed, and regularly updated, minimum wage rate that will help as many low-paid workers as reasonably practicable, without creating significant adverse consequences for employment or for competitiveness.

The minimum wage was last set, on 1 July, 2011, at €8.65 per hour, an increase of €1, or 14%.

Establishment and Composition

The Government has decided to establish a permanent, independent, advisory Low Pay Commission, initially on a non-statutory basis but to be underpinned by legislation in early 2015, which will make recommendations on setting the minimum wage.

The Commission will be a nine member body with an independent chair and;

a) 3 members appointed from among persons who, in the opinion of the Minister, have a deep understanding of the interests of low-paid workers, very good knowledge and experience of working on behalf of workers’ interests or representing workers, particularly low-paid workers or a proven track record in an advocacy or representational role on behalf of the low paid,

b) 3 members appointed from among persons who, in the opinion of the Minister, have a deep understanding of the interests of employers, particularly small to medium-sized employers and those operating in traditionally low-pay sectors, and who possess a good knowledge and understanding of the particular issues faced by Irish businesses, particularly in relation to labour costs, and competitiveness, and

c) 2 members appointed from among persons who, in the opinion of the Minister have particular knowledge or expertise in relation to some or all of the following: economics, labour market economics, statistics, and employment law and proven competence in analysing and evaluating economic research and statistical analysis.

Appointments to the Commission will be made after considering expressions of interests made to the Public Appointments Service from interested members of the public. The Minister will comply with Government policy on gender representation in appointing the membership of the Commission.

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

Recommendations on the National Minimum Wage

The principal function of the Low Pay Commission will be, on an annual basis, to examine and make recommendations to the Minister by mid-July each year on the minimum wage, with a view to securing that

- the minimum wage is adjusted, when appropriate, incrementally and non-disruptively,

- the minimum wage is set at a rate that is both fair and sustainable, and

- the minimum wage is, when appropriate, progressively increased, if and insofar as current economic circumstances, and the conditions of the labour markets directly or indirectly affected permit, in particular, having regard to productivity trends, international comparisons, particularly in Great Britain and Northern Ireland, and the need for job creation.

In making recommendations on the minimum wage, the Commission will be required to have regard to those three objectives and to make recommendations that are evidence-based. It will be required to collect comprehensive relevant data and to monitor trends.

In particular, the Commission will be obliged to have regard to:

- changes in earnings since the most recent making of a minimum wage order;

- changes in currency exchange rates;

- whether unemployment has been increasing or decreasing; generally and in the sectors directly or indirectly most affected;

- whether employment has been increasing or decreasing; generally and in the sectors directly or indirectly most affected; whether productivity is increasing or decreasing generally; and in the sectors directly or indirectly most affected;

- changes in income distribution; and

- the likely effect of a recommendation on levels of employment and unemployment, the cost of living and national competitiveness.

The Commission will consult with appropriate interests and persons, including representatives of employers and employees in the private sector and public sector.

The Minister will have power to accept, reject or vary the recommendations of the Commission, for stated reasons. Changes to the minimum wage will be made by statutory order. The Minister will make a statement in the Oireachtas setting out the basis for any change.

Reports on Related Matters

In addition to its reports on the minimum wage, the Low Pay Commission may be asked to examine, and to report its views and recommendations on such matters, related generally to the functions of the Commission under the Act, as are specified by the Minister in a request to be agreed by Government and made not later than two months after the start of each year and be part of that year’s work programme of the Commission.

Triennial Report

The Commission will also be required to report every 3 years on the operation of the Act, including on the level and extent of low pay in the economy and the impact of minimum wage orders on income distribution and on employment costs.''

Low Pay Commission Remit

Questions (254)

Dara Calleary

Question:

254. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the metrics or parameters the Low Pay Commission will adhere to in adopting an evidence-based approach in setting the minimum wage; and if he will make a statement on the matter. [9273/15]

View answer

Written answers

The Scheme of the proposed Minimum Wage (Low Pay Commission) Bill 2015 provides that in discharging the functions assigned to it under the Act, the Low Pay Commission shall make such recommendations to the Minister that are designed to set a minimum wage that is fair and sustainable, and when appropriate, is adjusted incrementally, and that, over time, is progressively increased to assist as many low-paid workers as is reasonably practicable without creating significant adverse consequences for employment or competitiveness. To this end, in making a recommendation regarding the appropriate level of the national minimum wage, the Low Pay Commission will be required to have regard to:

(a) changes in earnings during the period since the most recent making of an order relating to the rate of the national minimum wage;

(b) changes in currency exchange rates during that period;

(c) changes in income distribution during that period;

(d) international comparisons, particularly with Great Britain and Northern Ireland;

(e) the need for job creation;

(f) whether during that period—

(i) unemployment has been increasing or decreasing,

(ii) employment has been increasing or decreasing, and

(iii) productivity has been increasing or decreasing, both generally and in the sectors most affected by the making of an order, whether directly or indirectly, and

(g) the likely effect that any proposed order will have on—

(i) levels of employment and unemployment,

(ii) the cost of living, and

(iii) national competitiveness.

Employment Rights

Questions (255)

Peadar Tóibín

Question:

255. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation his plans to abolish zero hour contracts. [9284/15]

View answer

Written answers

In accordance with the Statement of Government priorities, I have commissioned a study into the prevalence of zero hour and low hour contracts and the impact of such contracts on employees. I recently announced the appointment of the University of Limerick (UL) to carry out the study. The appointment of UL follows a competitive tendering process.

The key objectives of the study are:

- To fill the gap in knowledge that currently exists in terms of the hard data and information that is available concerning the prevalence of zero hour and low hour contracts in the Irish economy and the manner of their use.

- To assess the impact of zero hour and low hour contracts on employees.

- To enable the Minister to make any evidence-based policy recommendations to Government considered necessary on foot of the study.

All sectors of the economy, both public and private, will come within the scope of the study, including the retail, hospitality, education and health sectors in particular. The study will examine how zero and low hour contracts operate in practice and 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. The study will also consider recent developments in other jurisdictions, including the UK in particular.

Section 18 of the Organisation of Working Time Act 1997 provides that where employees on zero hour contracts suffer a loss by not being given the hours they were requested to work or be available for work, they can be compensated for 25% of the time or 15 hours, whichever is less. There would not appear to be an equivalent provision in the UK, where it would appear employees on zero hours contracts may only be paid for time spent working and if they are not given any hours by their employer they do not appear to have the same statutory right to compensation.

It is expected that a wide range of stakeholders will be canvassed to contribute to the study, including employer representative bodies, trade unions, relevant Government Departments and relevant state bodies. I expect the study to be completed within six months of commencement.

I will not anticipate the outcome of the study or the Government’s consideration of the study’s findings.

Public Procurement Contracts

Questions (256)

Seán Kyne

Question:

256. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation the progress to assist Irish small and medium enterprises in their bids for procurement contracts, at home and abroad, in view of the benefits such contracts have for local economies. [9332/15]

View answer

Written answers

The Government acknowledges the significant role that SMEs play in the Irish economy and is committed to ensuring that SMEs are fully engaged with public sector procurement and the opportunities presenting.

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

My Department’s officials are closely involved in supporting SMEs' access to procurement through their involvement in a number of interdepartmental groups chaired by the OGP, including the High Level Group on SME Access to Procurement, the Social Clauses Project Group and the SME Working Group.

The SME Working Group also includes representatives from ISME, IBEC, Inter Trade Ireland, Enterprise Ireland, the Competition and Consumer Protection Commission, the Small Firms Association and Chambers Ireland. This group will continue to be a key mechanism for engaging with SME representative bodies and identifying further measures to improve access to public sector procurement opportunities.

The 2015 Action Plan for Jobs includes a number of measures to support SMEs to access public procurement opportunities to be delivered by a number of public sector bodies. In particular, Enterprise Ireland (EI) and InterTradeIreland, which come under the remit of my Department, are delivering a number of APJ actions, which will build on their work to date in increasing SME awareness of public procurement opportunities. EI will provide support to Irish companies seeking to participate in procurement overseas through engagements for SMEs with International Financial Institutions. IntertradeIreland will continue to grow the capacity and capability of Irish enterprises to successfully tender for public procurement contracts, through the continued delivery of “Go-2-Tender”, “Advanced Go-2-Tender” and consortia building initiatives and “Meet the Buyer” events, run in conjunction with the OGP, as outlined below.

Furthermore, EI and IntertradeIreland will also examine ways of improving the supply of innovative products and services, where appropriate, in public procurement including assessing innovation practices in public procurement in other countries with a view to establishing potential learnings for Ireland.

Under the APJ process, the OGP has conducted a targeted programme of education for suppliers who wish to learn more about doing business with the Irish Public Service. This programme consists of seminars, workshops and large scale 'Meet the Buyer' events hosted nationwide. These 'Meet the Buyer' events are run in conjunction with EI and InterTrade-Ireland. To date the OGP has facilitated workshops and presented at seminars to over 4,500 SMEs nationwide. These events afforded suppliers an opportunity to meet and discuss the issues with public service buyers and provide networking opportunities for suppliers and encourage consortia-building.

The OGP also reviewed and updated its guidelines and procedures aimed at promoting SME participation in public procurement. Circular 10/14, launched on 17 April 2014, sets out new initiatives aimed at opening up opportunities for small businesses to bid for State business. These new guidelines are aimed at reducing the administrative burden on businesses that want to tender for public contracts. The SME Working Group, established under the Government's Action Plan for Jobs, was consulted on the new Guidelines and the Circular and it has been broadly welcomed by industry representative associations.

It is also important to remember that open tendering is a two way street and that it provides Irish companies with opportunities to compete abroad. The public procurement market in the EU is estimated to be valued in excess of €2.4 trillion. The open market regime offers opportunities for Irish companies to win business abroad and reliable EU studies indicate that many Irish businesses are successful in this regard.

The reform of public procurement across the public service is on-going and will continue to provide opportunities to the SME sector to win business. My Department will continue to work with the Office of Government Procurement and other relevant stakeholders to ensure that the supports are in place to assist SMEs in building their capacity to access public procurement opportunities both here and abroad.

National Internship Scheme Administration

Questions (257)

Seán Fleming

Question:

257. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation the procedures to protect persons who are taking part in an internship; their rights regarding changes to their working hours; if they should be working in an unsupervised manner, and left on their own; if he is satisfied that all employers under this scheme are operating in a fair manner in the spirit that was originally intended; and if he will make a statement on the matter. [9393/15]

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Written answers

The JobBridge scheme is the national internship scheme administered by the Department of Social Protection. The legislation underpinning the JobBridge scheme specifically provides that a participant shall, for the purposes of any enactment or rule of law (other than the Tax Acts and the Safety, Health and Welfare at Work Act 2005), be deemed not to be an employee. Any complaints regarding compliance with the scheme should be addressed to that Department. With regard to other arrangements which may be described as internships, such arrangements are not defined by Irish legislation but depending on the particulars of the individual arrangement, the participants may have entitlements to protection under employment law. Any persons with questions or complaints regarding their rights under employment law should contact Workplace Relations Customer Service on lo-call 1890 80 80 90 or at www.workplacerelations.ie

As regards occupational health and safety legislation, the Safety, Health and Welfare at Work Act 2005 requires employers to ensure that working conditions are such as will protect the safety, health and welfare at work of employees. It also requires employers to manage their business in such a way as to ensure, so far as is reasonably practicable, that individuals at the place of work who are not employees, are not exposed to risks to their safety, health or welfare.

Disadvantaged Areas Scheme Payments

Questions (258)

John O'Mahony

Question:

258. Deputy John O'Mahony asked the Minister for Agriculture, Food and the Marine when a person (details supplied) in County Mayo will receive a payment under the disadvantaged areas scheme; and if he will make a statement on the matter. [8733/15]

View answer

Written answers

The person named submitted a 2014 Single Farm Payment/Disadvantaged Areas scheme application on 6 May 2014. EU Regulations governing the administration of these schemes require that full and comprehensive administrative checks, including in some cases on-farm inspections, be completed before any payments issue.

The application of the person named was selected for a ground eligibility inspection.

This inspection identified discrepancies between the areas declared and the area found resulting in an over-declaration in area of less than 3% and less than 2ha. Under the Terms and Conditions of these schemes this resulted in the 2014 payments being based on the area found.

The person named was notified of the outcome of the inspection on 13 November 2014 and of their right to seek a review of this decision.

The initial payable area for the Disadvantaged Areas Scheme was 15.04 ha and payment based on this area issued to the person named on 21 November 2014.

A further parcel was added to the application of the person named which increased the payable area under the Disadvantaged Areas Scheme to 20.39 ha, taking account of the outcome of the inspection. Arrangements have now been made by my Department to issue any outstanding payment due under this scheme to the nominated bank account of the person named shortly.

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