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Thursday, 26 Mar 2015

Written Answers Nos. 1-49

Low Pay Commission Establishment

Questions (8)

Micheál Martin

Question:

8. Deputy Micheál Martin asked the Minister for Jobs, Enterprise and Innovation the position regarding the Low Pay Commission; and if he will make a statement on the matter. [9968/15]

View answer

Written answers

The establishment of a Low Pay Commission is one of the key commitments in the Statement of Government Priorities agreed in July last.

The General Scheme of the National Minimum Wage (Low Pay Commission) Bill was approved by Government in January. The General Scheme, together with a Regulatory Impact Assessment, has been published on my Department's website and forwarded to the Joint Oireachtas Committee on Jobs, Enterprise and Innovation for pre-legislative scrutiny.

The Commission will be a nine member body comprising an independent chairman, three members who will have a deep understanding of the interests of low-paid workers, three members who will have a deep understanding of the interests of employers, particularly small to medium-sized employers and those operating in traditionally low-pay sectors, and two members who will have relevant knowledge or expertise in relation to some or all of the following; economics, labour market economics, statistics, and employment law. The term of office of its members will be three years, subject to a maximum of two consecutive terms.

The 9 members of the Commission have been appointed. With the exception of the position of chairperson, the appointment process was managed by the Public Appointments Service (PAS). The Commission was officially launched on 26th February last to operate on an interim administrative basis and the Commission held its first meeting on the same day. It is intended that the interim membership will constitute the Commission when it is established on a statutory basis.

The principal function of the Low Pay Commission will be, on an annual basis, to examine and make recommendations to the Minister of the day on the national minimum wage, with a view to securing that the national minimum wage, where adjusted, is adjusted incrementally having had regard to changes in earnings, productivity, overall competitiveness and the likely impact any adjustment will have on employment and unemployment levels.

Alongside examining the National Minimum Wage, the Low Pay Commission will also be tasked with examining matters related generally to the functions of the Commission under the Act. This work programme will be agreed by Government and presented to the Commission in February of each year.

In discharging its functions, the Commission will be required to ensure that any advice or recommendations it makes to Government is evidence-based; utilising agreed data, carrying out research and consultations with employers, workers and their representatives and taking written and oral evidence from a wide range of organisations. This is to ensure that any suggested changes to the National Minimum Wage have minimum adverse impact on employment and competitiveness.

In addition, the Commission will be asked to consult with employers and workers who are directly affected by the National Minimum Wage. The Commission has already commenced its work in this regard and has recently placed notices in national newspapers seeking submissions on the issue.

The Commission is expected to submit its first report by the middle of July.

Question No. 9 answered orally.

Regional Development Initiatives

Questions (10)

Bernard Durkan

Question:

10. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation his proposals for job creation throughout the regions, with particular reference to the need to achieve a reasonable balance in terms of economic investment, thereby contributing to a more co-ordinated, integrated and comprehensive development of job creation opportunities in the future; if any infrastructural deficiencies need to be addressed in this context; and if he will make a statement on the matter. [12089/15]

View answer

Written answers

Employment has increased nationally by almost 90,000 since the start of the Action Plan process in 2012. All regions have experienced job growth but some regions less than others. That is why the Government is placing an increased emphasis on supporting jobs growth in the region.

The Government recently announced details of the Regional Action Plan for Jobs initiative which will seek to build on the strengths and assets of each region to maximise enterprise growth and job creation. My objective is that six Regional Action Plans will be launched by July, with two remaining Strategies in development at that stage.

The objective of this new initiative is to strengthen and develop job creation in the regions by encouraging the enterprise development agencies, Local Authorities, regional bodies, higher education institutions, other public bodies, as well as the private sector and communities, to come forward with innovative ideas to boost job creation in their area.

While the Regional action plan process will not, in itself, address issues surrounding significant infrastructural deficits it will be of assistance in highlighting any such difficulties. Other Government strategies including Infrastructure and Capital Investment programme and the National Broadband Strategy will identify key infrastructural priorities to be addressed within the constraints of available resources.

The Regional Action Plans will provide up to €250 million over five years in additional funding to support regional enterprise development. This €150m IDA property programme will build on the recent investment by the IDA in a number of advance manufacturing facilities in regional locations. It should be noted that the Advance Facilities announced recently represent less than half of the total investment in property solutions as part of the new IDA Strategy. Significant resources will be invested in utility intensive strategic sites which have a track record of attracting FDI as well as a substantial upgrade of large sections of the existing Business Park network to ensure an attractive suite of investment location options are available to potential investors.

The Enterprise Ireland €100m will be distributed through three new competitive calls which will be announced by EI over the coming months. 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.

Questions Nos. 11 to 13, inclusive, answered orally.

Employment Rights

Questions (14)

Richard Boyd Barrett

Question:

14. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation in view of industrial action looming at a company (details supplied), the measures he plans to take to address the issues of zero hour contracts and excessive use of temporary contracts; and if he will make a statement on the matter. [11958/15]

View answer

Written answers

I understand that the current dispute concerns a range of issues, including the introduction of banded hours contracts, individual and collective representational rights and a review of the use of temporary contracts. The union is seeking to engage with the company on these issues and the matter was referred by the union to the Labour Court under section 20(1) of the Industrial Relations Act, 1969 in October of last year.

The company was not represented at the Labour Court hearing. The Court found it regrettable that the company declined to participate in the investigation of the dispute or to put forward its position on the union's claims.

In its recommendation of 14th November 2014, the Court reaffirmed earlier recommendations it had made by noting that the Company and the union were party to a collective agreement signed in 1996 which provides a procedural framework within which industrial relations disputes and differences arising between the parties can be resolved by negotiation and dialogue. The Court pointed out that the dictates of good industrial relations practice requires parties to honour their collective agreements in both spirit and intent.

I regret that the company decided against attending the Labour Court hearing, contrary to good industrial relations practice in that regard. In my view, the experience and expertise of the Labour Court offer the most appropriate and effective avenue for resolving such issues.

I would urge both parties to avail of the services of the State's industrial Relations machinery who remain available to assist the parties, if requested. It is my opinion that engagement with the State's industrial relations machinery offers the best way whereby the parties involved in this dispute can hope to resolve their differences.

However, the system of industrial relations in Ireland is essentially voluntary in nature and recommendations of the Labour Court are not legally binding. Neither the Labour Court, nor the Minister, can compel a company to comply with such recommendations. Ultimately, responsibility for the settlement of a trade dispute rests with the parties to the dispute.

As regards zero hours contracts, in accordance with the Statement of Government priorities, the Deputy will be aware that I recently commissioned the University of Limerick (UL) to carry out a study into the prevalence of zero hour and low hour contracts and the impact of such contracts on employees. 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.

The study will have a broad scope, covering both the public and private sectors, with a particular focus on the retail, hospitality, education and health sectors. 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. The study may also identify how the information gap might be addressed in the future.

Unlike the position in the UK, 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 is no equivalent provision in the UK, where employees on zero hours contracts are only paid for time spent working and if they are not given any hours by their employer they receive no compensation.

A wide range of stakeholders will be canvassed to contribute to the study and I expect the study, which commenced recently, to be completed within six months.

It is worth noting that while the proportion of Irish workers who are on temporary contracts rose slightly during the recession, reaching 10.5% in 2011, it has since fallen back to the pre-recession level of 9.5% and remains significantly below the EU average of 14.4%. The CSO data for February 2015 indicates that the share of casual and part-time workers on the Live Register was down over 11% on February 2014, equivalent to 9,049 workers. The cumulative decrease is 17,625 workers since February 2013.

The Deputy will appreciate that I cannot anticipate the outcome of the study or the Government's consideration of the study's findings.

Job Losses

Questions (15)

Denis Naughten

Question:

15. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the progress to date in replacing jobs lost at a bank (details supplied) in County Leitrim; and if he will make a statement on the matter. [11962/15]

View answer

Written answers

A series of actions are being implemented by local and national bodies to source an alternative employer and find alternative employment for those impacted by the MBNA redundancies, which unfortunately took effect on November 28th last.

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

The IDA, through its global network, continues to market the former MBNA facility to a range of potential investors and Enterprise Ireland is also marketing it to its client base. The availability of a skilled pool of the former MBNA employees is being highlighted.

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

The Government is very committed to Regional Job Creation. In pursuance of this objective, under the 2015 Action Plan for Jobs which I launched recently, it is intended to develop and publish a suite of Regional Enterprise Strategies, based on consultation with key stakeholders at regional level and on the analysis of the strengths of each region. All will include specific actions for all the enterprise development organisations and other public bodies active in each region, to promote enterprise growth and job creation. Of course specific issues and factors relevant to particular regions, such as the MBNA closure, will be fully embraced in the new Strategies.

Action Plan for Jobs

Questions (16)

Thomas Pringle

Question:

16. Deputy Thomas Pringle asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the way his Department is attempting to increase job creation in County Donegal through the Action Plan for Jobs; the number of jobs forecasted to be created in 2015 in County Donegal; and if he will make a statement on the matter. [12081/15]

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. While employment has increased nationally by over 89,000 since the start of the Action Plan process in 2012, 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.

The Action Plans for Jobs Regional initiative seeks to build on the success of the annual Action Plan for Jobs process by developing locally driven plans that can build on the strengths and opportunities identified in each region. These plans will contain a series of specific actions to be delivered by a range of public bodies and local stakeholders, including Enterprise Ireland, IDA Ireland, and the Local Enterprise Offices, to maximise the potential of each region to support enterprise development and jobs growth.

Eight Regional Action Plans will be published this year. My objective is that six Plans, including one for the Border region which includes Co. Donegal, will be launched by July, with two remaining Plans in development at that stage.

It is not intended that specific job creation targets will be set for each county in the Regional Action Plans for Jobs, but, rather, that the plans will identify measures that can be taken to enable each region as a whole to realise its economic potential and create jobs, building on its competitive strengths and opportunities.

Trade Agreements

Questions (17)

Mick Wallace

Question:

17. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation the business sectors which have lobbied the Government in relation to the transatlantic trade and investment partnership talks; the percentage that were supportive; the sectors that opposed specific proposals and the sectors in total opposition; and if he will make a statement on the matter. [12047/15]

View answer

Written answers

As part of our engagement and consultation on matters relating to EU-US trade negotiations my Department has met with stakeholders and in particular representative organisations and sectors of enterprise on questions arising in the negotiations. I am not aware of any total opposition to the negotiations arising in these consultations. Indeed business sectors have been broadly supportive of the negotiations and are assisting the Department in identifying priorities and sensitivities in the negotiations. Business sectors represented by IBEC in consultation and briefing meetings with the Department have been broadly supportive of the TTIP negotiations.

IBEC as an organisation are publically supportive of the trade agenda including the EU US trade negotiations. IBEC has 7,500 members. On the other hand, I have received 470 same content emails from individuals concerned about investment provisions in the negotiations. I have responded to these emails to clarify and explain the position.

As I have said previously in the House the purpose of the negotiations on the Transatlantic Trade and Investment Partnership (TTIP) is to generate jobs and growth by reducing barriers to trade and investment.

I would like to add that My Department commissioned a study on the impact in Ireland of TTIP. The study, which has now been finalised will be published tomorrow. I welcome hearing the views of all stakeholders including all sectors of business so that we can be in the best position to get the best overall deal for Ireland.

Low Pay Commission Establishment

Questions (18)

Robert Troy

Question:

18. Deputy Robert Troy asked the Minister for Jobs, Enterprise and Innovation if he will provide a commitment that this Government will ensure that the 24,000 workers in the early childhood education sector will be included in the Low Pay Commission. [7762/15]

View answer

Written answers

The establishment of a Low Pay Commission is one of the key commitments in the Statement of Government Priorities agreed in July last.

The General Scheme of the National Minimum Wage (Low Pay Commission) Bill was approved by Government in January. The General Scheme, together with a Regulatory Impact Assessment, has been published on my Department's website and forwarded to the Joint Oireachtas Committee on Jobs, Enterprise and Innovation for pre-legislative scrutiny.

The principal function of the Low Pay Commission will be, on an annual basis, to examine and make recommendations to the Minister of the day on the national minimum wage, with a view to securing that the national minimum wage, where adjusted, is adjusted incrementally having had regard to changes in earnings, productivity, overall competitiveness and the likely impact any adjustment will have on employment and unemployment levels.

Alongside examining the National Minimum Wage, the Low Pay Commission will also be tasked with examining matters related generally to the functions of the Commission under the Act. This work programme will be agreed by Government and presented to the Commission in February of each year.

In discharging its functions, the Commission will be required to ensure that any advice or recommendations it makes to Government is evidence-based; utilising agreed data, carrying out research and consultations with employers, workers and their representatives and taking written and oral evidence from a wide range of organisations. This is to ensure that any suggested changes to the National Minimum Wage have minimum adverse impact on employment and competitiveness.

In addition, the Commission will be asked to consult with employers and workers who are directly affected by the National Minimum. The Commission has already commenced its work in this regard and has already placed notices in national newspapers seeking submissions on the issue. In this context, representatives of workers and employers in the early childhood education sector have an opportunity to make their views on the issue known to the Commission.

The Commission is expected to submit its first report by the middle of July.

Employment Rights

Questions (19)

Ruth Coppinger

Question:

19. Deputy Ruth Coppinger asked the Minister for Jobs, Enterprise and Innovation in view of the scheduled day of strike action by Mandate members in Dunnes Stores on 2 April 2015, if he will introduce legislation outlawing the practice of zero-hour contracts; if he will make representations to the Central Statistics Office requesting it to collect data on the prevalence of zero-hour contracts in the workforce; and if he will make a statement on the matter. [12084/15]

View answer

Written answers

I understand that the current dispute concerns a range of issues, including the introduction of banded hours contracts, individual and collective representational rights and a review of the use of temporary contracts. The union is seeking to engage with the company on these issues and the matter was referred by the union to the Labour Court under section 20(1) of the Industrial Relations Act, 1969 in October of last year.

The company was not represented at the Labour Court hearing. The Court found it regrettable that the company declined to participate in the investigation of the dispute or to put forward its position on the union's claims.

In its recommendation of 14th November 2014, the Court reaffirmed earlier recommendations it had made by noting that the Company and the union were party to a collective agreement signed in 1996 which provides a procedural framework within which industrial relations disputes and differences arising between the parties can be resolved by negotiation and dialogue. The Court pointed out that the dictates of good industrial relations practice requires parties to honour their collective agreements in both spirit and intent.

I regret that the company decided against attending the Labour Court hearing, contrary to good industrial relations practice in that regard. In my view, the experience and expertise of the Labour Court offer the most appropriate and effective avenue for resolving such issues.

I would urge both parties to avail of the services of the State's industrial Relations machinery who remain available to assist the parties, if requested. It is my opinion that engagement with the State's industrial relations machinery offers the best way whereby the parties involved in this dispute can hope to resolve their differences.

However, the system of industrial relations in Ireland is essentially voluntary in nature and recommendations of the Labour Court are not legally binding. Neither the Labour Court, nor the Minister, can compel a company to comply with such recommendations. Ultimately, responsibility for the settlement of a trade dispute rests with the parties to the dispute.

As regards zero hours contracts, in accordance with the Statement of Government priorities, the Deputy will be aware that I recently commissioned the University of Limerick (UL) to carry out a study into the prevalence of zero hour and low hour contracts and the impact of such contracts on employees. 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.

The study will have a broad scope, covering both the public and private sectors, with a particular focus on the retail, hospitality, education and health sectors. 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. The study may also identify how the information gap might be addressed in the future.

Unlike the position in the UK, 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 is no equivalent provision in the UK, where employees on zero hours contracts are only paid for time spent working and if they are not given any hours by their employer they receive no compensation.

A wide range of stakeholders will be canvassed to contribute to the study and I expect the study, which commenced recently, to be completed within six months.

The Deputy will appreciate that I cannot anticipate the outcome of the study or the Government's consideration of the study's findings.

Enterprise Support Services Provision

Questions (20)

David Stanton

Question:

20. Deputy David Stanton asked the Minister for Jobs, Enterprise and Innovation the progress made by his Department in developing and supporting entrepreneurship; and if he will make a statement on the matter. [11961/15]

View answer

Written answers

The Government's National Policy Statement on Entrepreneurship in Ireland was launched in October 2014 and sets out the Government's strategic objectives as a facilitator within the Irish entrepreneurship ecosystem, covering the six key elements that impact on entrepreneurs and start-ups, and signposts the direction that policy will take in the coming years.

This Policy Statement represents the first time a Government has published a comprehensive national plan for entrepreneurship in Ireland. The key target contained in the plan is to double the jobs impact of start-ups in Ireland over the next five years. In order to deliver on this we must -

- Increase the number of start-ups by 25% - representing 3000 more start-ups per annum

- Increase the survival rate in the first five years by 25% - 1800 more survivors per annum

- Improve the capacity of start-ups to grow to scale by 25%

The National Policy Statement on Entrepreneurship is the Government's plan to deliver an ambitious but realistic increase in the numbers of start-ups in Ireland over the next five years.

The Government has set out a vision for Ireland to be among the most entrepreneurial nations in the world and to be acknowledged as a world-class environment to start and grow a business. To achieve the ambition, we will improve the key interlocking elements that impact on entrepreneurship and make up the entrepreneurship ecosystem in Ireland. These are: 1. Culture, human capital and education; 2. Business environment and supports; 3. Innovation; 4. Access to finance; 5. Networks and mentoring; and 6. Access to markets.

By driving implementation of the actions in the new National Entrepreneurship Policy Statement we will double the jobs impact of start-ups in Ireland over the next five years, from 93,000 currently.

The Action Plan for Jobs details a number of the immediate key actions to support the Government's ambition and confirms the commitment to continue to identify new approaches which will enhance and strengthen Ireland's entrepreneurial ecosystem and ultimately create jobs e.g. the Start Up Refunds for Entrepreneurs (SURE) scheme will add further support to start-ups to grow and develop their business. Actions are set out to expand reform measures to boost entrepreneurship across all areas of the economy and society.

The specific objectives for 2015 are to:

- Progress the actions from the National Entrepreneurship Policy;

- Utilise the New Frontiers Programme optimally to support emerging entrepreneurs;

- Continue to promote LEOs as one stop shops for small business; and

- Develop an action programme of support for pre-investment HPSUs.

I am personally driving and chairing the Implementation Group, comprised of senior officials from the key departments and agencies, charged with oversight and delivery of the actions set out in the National Entrepreneurship Policy Statement.

Enterprise Ireland and the LEOs continue to provide a comprehensive suite of supports to start-ups and established entrepreneurs. In the last few years Enterprise Ireland has supported approximately 500 new and early stage start-ups. These are ambitious companies, with innovative products and business development strategies that will enable them to carve out a place in global markets. The focus in the coming years is to continue to increase both the number of quality start-ups and to identify those start-ups with the ability to scale at an earlier stage. Taking these trends together, and acknowledging the intensive focus that will be placed on scale and gaining commercial traction, an ambitious target of 550 new and early start-ups supported by 2016 has been set. With 183 new and early stage start-ups supported last year, Enterprise Ireland is on track to achieve this ambitious target.

In addition the Local Enterprise Offices (LEOs) have been established and are now up and running as the First-Stop-Shop service supporting start-ups, business growth and jobs in the micro-enterprise sector. Some specific initiatives in driving entrepreneurship under the LEOS banner include the National Enterprise Awards, the Student Enterprise Awards, Women in Business Networks and the Ireland's Best Young Entrepreneur competition (IBYE).

The first IBYE competition was launched in May 2014, with over 1,000 applications received by the 31 LEOs from entrepreneurs aged under 30. The nationwide competition formed part of the Action Plan for Jobs 2014 with an overall investment fund of €2 million awarded between County, Regional and National winners. It is intended to run a second iteration of the IBYE.

Further information on LEO supports for business ideas can be found on the LEO website at www.localenterprise.ie.

The LEOs have continued to use Microfinance Ireland loan facilities to provide credit in this sector. By end 2014 over €6m in loans were distributed by MFI with 851 jobs supported in 413 businesses. In addition to this activity the Government budgets have had a specific entrepreneurial focus. Measures were introduced to aid cash flow, reduce the administrative burden of tax compliance and incentive job creation to name but a few. While many of the measures were small in scale their cumulative effect has been to improve the environment for business to grow and develop and create jobs. The work in each of these areas continues as does work on upgrading the Microenterprise Loan Fund Scheme and the SME Credit Guarantee Scheme on which I hope to introduce legislation to the House in the near future.

No one policy intervention will generate substantial impact on the entrepreneurship ecosystem, but various actions if taken together will combine to create greater synergies. The overarching National Entrepreneurship Statement serves to co-ordinate all areas of Government policy in the area of entrepreneurship to drive these synergies and will deliver on the targets I referred to above.

Trade Agreements

Questions (21)

Paul Murphy

Question:

21. Deputy Paul Murphy asked the Minister for Jobs, Enterprise and Innovation the reason the State, in October 2014, communicated to the European Commission its support for the inclusion of an investor state dispute settlement mechanism in the transatlantic trade and investment partnership negotiations; and if he will make a statement on the matter. [12087/15]

View answer

Written answers

Ireland was one of 14 EU member states that co-signed a letter addressed to the EU Commissioner for Trade, Cecelia Malmström, concerning the public consultation on investment protection in the Transatlantic Trade and Investment Partnership (TTIP) that the EU Commission had undertaken earlier in 2014. In the letter, it was pointed out that the consultation was an important step, that the outcome of the consultation should run its course and that the views expressed by stakeholders should be carefully considered before reaching firm decisions on the way forward.

The EU Commission published its report on the results of the on 13 January, 2015. The report, along with explanatory material, can be found at

http://trade.ec.europa.eu/doclib/press/index.cfm?id=1234.

Commissioner Malmström has indicated that work is underway on developing specific proposals for the TTIP negotiations in the areas it identified in the report, namely, the protection of the right to regulate, the establishment and functioning of arbitral tribunals, the relationship between domestic judicial systems and Investor to State Dispute Settlement (ISDS), and the review of ISDS decisions for legal correctness through an appellate mechanism.

In line with Article 207 of the Treaty on the Functioning of the European Union, the position to be taken by the EU on issues in the TTIP negotiations is the subject of consultation with the EU Council. Like other Member States, Ireland could only support an ISDS mechanism that is fair, transparent and efficient. Ultimately, the TTIP negotiations, once they are concluded, must be ratified by each member state. This means that Ireland will be part of the final decision to ratify the agreement.

Enterprise Support Services Provision

Questions (22)

Dara Calleary

Question:

22. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation under the Action Plan for Jobs, the concrete measures that will be taken to improve the supports for self-employed persons and entrepreneurs following budget 2015; and if he will make a statement on the matter. [12092/15]

View answer

Written answers

The Government's Action Plan for Jobs, which is co-ordinated and developed by my Department since 2012, has set out a comprehensive set of measures to support entrepreneurship, SMEs and the self-employed. The themes in this year's Action Plan for Jobs build on the reforms of previous years in the areas of competitiveness, innovation and entrepreneurship. The objectives and actions set out in the Plan are designed to achieve specific impacts such as in terms of jobs, exports and start-ups, market penetration and innovation, efficiency of public interaction with business, finance and access to talent.

Increasing entrepreneurial activity is a Disruptive Reform in the Action Plan for Jobs for 2015. Our key priority is driving implementation of the actions in the National Entrepreneurship Statement, which was published in October last year and to achieve the ambitions targets set out for a 25% increase in the number of start-ups and in the scaling and sustainability of new enterprises. The Action Plan for Jobs sets out a range of actions that will positively impact on entrepreneurship namely. These include measures to promote entrepreneurship in the areas of education and research, business environment and supports, innovation and access to finance, networks and mentoring, and access to markets. These actions are being delivered by an inter-departmental/agency Group.

Specifically in 2015 the LEOs will have ambitious and robust county strategies and targets for start-ups, enterprise engagements and supports. We will build on the success of Ireland's Best Young Entrepreneur competition in 2014 with a new 2015 Programme. We will launch an Entrepreneur Partnering Programme. The Startup Gathering 2015 will also be held in October, with events over five days in five cities. We will support 130 new entrepreneurs via the New Frontiers Programme, support 185 Competitive and High Potential Startups.

As reflected in the Action Plan for Jobs, a range of actions are also underway following Budget 2015 to support the self-employed and entrepreneurs. These include supporting SMEs through changes to the Seed Capital and Employment and Investment Incentive (EII) Schemes. The EII is being amended to raise company limits, increase the holding period by 1 year and include medium-sized companies in non-assisted areas and internationally traded financial services. The Seed Capital Scheme is being revised and made easier to access, with eligibility extended to individuals who have been unemployed up to 2 years. The new Scheme will be called “Start Up Refunds for Entrepreneurs” (SURE) and full details will be announced shortly. We have also strengthened measures to encourage exports through improvements to the Foreign Earnings Deduction (FED). The FED is being extended for a further 3 years until the end of 2017 and qualifying countries are being extended to include Chile, Mexico and certain countries in the Middle East and Asia. The number of qualifying days abroad is being reduced from 60 to 40, the minimum stay in a country is reduced to 3 days and travelling time is being included as time spent abroad.

A range of agricultural related measures are being implemented including steps to maximise available agricultural land with measures to encourage long term leasing. We are also continuing to supporting the tourism sector with retention of 9% VAT rate.

More broadly improvements in personal taxation will benefit the self-employed and entrepreneurs and support growth in demand across the economy.

Low Pay

Questions (23)

Ruth Coppinger

Question:

23. Deputy Ruth Coppinger asked the Minister for Jobs, Enterprise and Innovation his views on the Nevin Institute's Quarterly Economic Observer (Spring 2015); his further views on the finding related to earnings distribution and low pay, in particular the number of workers earning less than the living wage threshold; and if he will make a statement on the matter. [12085/15]

View answer

Written answers

The Nevin Institute's (NERI) Spring 2015 Quarterly Economic Observer outlines the Institute's latest expectations for the economic outlook in the Republic of Ireland and Northern Ireland and provides a profile of the earnings distribution and low pay in the Republic of Ireland.

NERI concludes that the economic outlook differs for both parts of the island of Ireland. According to the report, an overdue recovery is gaining strength with ongoing improvements in the labour market, exports, domestic demand and earnings.

NERI projections for the Republic of Ireland include strong GDP growth of 3.4% in 2015, declining marginally to 3.1% in 2016; consumption to continue its recovery driven by rising real disposable incomes; improving household balance sheets and a strengthening labour market and strong growth in investment. NERI also forecast improvements in the economy impacting positively on Exchequer finances with the General Government Deficit falling to 2.7% in 2015 and 1.9% in 2016. NERI project a steady decrease in unemployment out to 2016, with the 2015 figure reaching 10% and 2016 figure reaching 9.1%. Also further employment growth of 2.1% in 2015 and 1.9% in 2016 is projected.

The ESRI forecasts released this week are for both GNP and GDP to grow by approximately 4 per cent in 2015 and by at least 3.5 per cent in 2016. Unemployment is forecast to fall to 9.7 per cent in 2015 and 8.4 per cent in 2016. The strong expected performance in 2015 comes after the Irish economy grew by over 5 per cent in 2014. The ESRI envisage continued strong contributions from investment, in particular, and consumption into 2015. In this scenario, the ESRI indicate that the Budget deficit should decline to 2.3 per cent of GDP this year, with a further reduction to 0.3 per cent in 2016.

NERI estimated an update of the Eurostat low pay threshold by looking at those employees in NACE sectors B to S excluding sector O and who are in firms of 10 or more employees. Thus the 2013 median hourly wage rate estimate ranges between €17.14 and €17.25 per hour and low pay threshold estimate between €11.43 and €11.50 per hour.

This government has clearly demonstrated its commitment to the well-being of lower paid workers. It restored the National Minimum Wage from €7.65 to €8.65 on taking office. Having returned the economy to sustainable growth through transformational policies implemented through the twin tracks of the Action Plan for Jobs and Pathways to Work, this Government is determined to ensure that the benefits of this recovery are felt by all in our society, both nationally and regionally.

Almost 90,000 more people are at work since the launch of the first Action Plan for Jobs in 2012. This increase has been in full-time jobs rather than casual or temporary jobs, with full time jobs accounting for 86% of the jobs growth. Every job created is a life changed, a family improved, a community enhanced. It is by increasing job creation that we can grow tax revenues and ultimately improve people's lives through better services and further tax reductions. That is why we have placed job-creation at the very heart of the Government's agenda.

The Government has established the Low Pay Commission, which will, on an annual basis, examine and make recommendations to the Minister on the national minimum wage, with a view to securing that the national minimum wage, where adjusted, is adjusted incrementally over time. The Commission will have regard to changes in earnings, productivity, overall competitiveness and the likely impact any adjustment will have on employment and unemployment levels. Legislation to restore the Registered Employment Agreement structure has completed Pre-Legislative Scrutiny and I expect to publish the resulting Bill shortly. Legislation has been passed and Orders made to re-establish Joint Labour Committees.

The second element of Government's strategy is to reduce taxation on low and middle-incomes. In this context, 410,000 low paid workers have been removed from the USC charge over successive budgets. The Government is committed to continuing this policy of targeted tax reductions for workers in the next budget.

The third element of the Government's strategy is to introduce targeted welfare supports for people returning to work, and particularly for the low-paid. From April, the Government will pay €30 a week to mothers or fathers returning to work from long-term unemployment for each child for the first year, and €15 per week per child for the second year.

For those trapped on rent supplement that cannot go back to work because they will lose their housing support, a new Housing Assistance Payment is being rolled out. The assistance from the State will be based on how much you earn and not by your employment status.

As a package, the Government expects these measures to have a transformative effect on incentives to work and on the wellbeing of those at work.

Trade Agreements

Questions (24)

Thomas Pringle

Question:

24. Deputy Thomas Pringle asked the Minister for Jobs, Enterprise and Innovation his views on whether the adoption of the transatlantic trade and investment partnership treaty will require a referendum here; and if he will make a statement on the matter. [12083/15]

View answer

Written answers

The Transatlantic Trade and Investment Partnership (TTIP) is a Free Trade Agreement being negotiated between the European Union and its Member States and the US. It will be an Agreement within the meaning of Article 29.5.2 of the Constitution. Ratification by Ireland will therefore be subject to prior approval of Dáil Éireann. The question of a referendum does not arise.

Trade Agreements

Questions (25)

Richard Boyd Barrett

Question:

25. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation the progress of talks between the European Union and the United States of America on the Transatlantic Trade and Investment Partnership; the meetings he has attended; and if he will make a statement on the matter. [11959/15]

View answer

Written answers

Since the formal negotiations between the European Union and the United States on a Transatlantic Trade and Investment Partnership (TTIP) began in July 2013, eight negotiating rounds have taken place. The 9th round is scheduled to take place in Washington from 20th-24th April 2015.

Reports of previous Rounds, together with background documents, are available on the European Commission's TTIP website at http://ec.europa.eu/trade/policy/in-focus/ttip/.

In accordance with Article 207 of the Treaty on the Functioning of the European Union, the EU Commission negotiates on behalf of the EU and regularly reports to the Council of Ministers which I attend.

Trade Agreements

Questions (26)

Mick Wallace

Question:

26. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation his views on the EU's regulatory co-operation provisions in the transatlantic trade and investment partnership talks; and if he will make a statement on the matter. [12046/15]

View answer

Written answers

The European Union's initial proposal for legal text on Regulatory Cooperation in the Transatlantic Trade and Investment Partnership (TTIP) was tabled for discussion with the United States in the negotiating round of 2-6 February 2015. The text, which was made public by the Commission on 10 February 2015, can be found at the following link: http://trade.ec.europa.eu/doclib/docs/2015/february/tradoc_153120.pdf.

The draft contains proposed text establishing a regulatory co-operation body, the purpose of which would be to monitor and facilitate the implementation of any agreed regulatory co-operation provisions under TTIP.

It is usual that an international agreement would provide for the appropriate structures to oversee the implementation of the various provisions of the agreement, and so an appropriate structure should be provided for to oversee any regulatory co-operation provisions agreed under TTIP.

Trade Agreements

Questions (27)

Thomas Pringle

Question:

27. Deputy Thomas Pringle asked the Minister for Jobs, Enterprise and Innovation the proposals in the transatlantic trade and investment partnership negotiations that have been discussed to liberalise the market for public services and water; and if he will make a statement on the matter. [12078/15]

View answer

Written answers

The EU's mandate to negotiate the Transatlantic Trade and Investment Partnership (TTIP) states that services supplied in the exercise of governmental authority as defined by Article I.3 of GATS shall be excluded from these negotiations.

Both the EU and the US have repeatedly confirmed that no commitments will be taken on public services. This means that TTIP will have no implications for health, education, social services and other public services, including water.

Low Pay Commission Establishment

Questions (28)

Peadar Tóibín

Question:

28. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he and his officials considered the independent report by a person (details supplied) entitled Low Pay: The Nation's Challenge and the Resolution Foundation Review of the Future of the National Minimum Wage: The Final Report, before concluding the draft heads of the low pay commission legislation. [12099/15]

View answer

Written answers

I am aware of the report referred to by the Deputy and commissioned by the UK Labour Party who requested Alan Buckle, former Deputy Chairman at KPMG International, to investigate how to restore the value of the UK minimum wage, ensure that where sectors can afford to pay more, they do, and promote the Living Wage.

The report, published in May 2014, notes that the UK National Minimum Wage has been a great success, boosting pay at the bottom without loss of jobs. The report seeks to build on the success of the Low Pay Commission in a wider context of building an economy with fewer low skill, low paid jobs and more high skill, high paid jobs.

The position in Ireland is quite different to the UK in that, in addition to the National Minimum Wage and the new Low Pay Commission, the Government has also legislated for Joint Labour Committees and has also brought forward comprehensive legislation to replace the Registered Employment Agreement system. Both of these initiatives provide for rates of pay above or significantly above the National Minimum Wage that can be given statutory backing on a sectional basis. Thus the Report's views of a wider remit for the UK LPC do not necessarily translate to a very different Irish position.

Making work pay continues to be a cornerstone of this Government's agenda and the setting up of a Low Pay Commission is one of the key commitments in the Statement of Government Priorities agreed in July last.

The General Scheme of the National Minimum Wage (Low Pay Commission) Bill was approved by Government in January. The General Scheme, together with a Regulatory Impact Assessment, has been published on my Department's website and forwarded to the Joint Oireachtas Committee on Jobs, Enterprise and Innovation for pre-legislative scrutiny.

The principal function of the Low Pay Commission will be, on an annual basis, to examine and make recommendations to the Minister of the day on the national minimum wage, with a view to securing that the national minimum wage, where adjusted, is adjusted incrementally over time having had regard to changes in earnings, productivity, overall competitiveness and the likely impact any adjustment will have on employment and unemployment levels.

Alongside examining the National Minimum Wage, the Low Pay Commission will also be tasked with examining matters related generally to the functions of the Commission under the Act. This work programme will be agreed by Government and presented to the Commission in February of each year.

I am conscious of the need to balance a basic statutory minimum pay rate that is fair, with one that is sustainable and which allows employers to continue to create quality jobs.

In this context, a particular function of the Commission will be to ensure that any advice or recommendations it makes to Government is evidence-based; utilising agreed data, carrying out research and consultations with employers, workers and their representatives and taking written and oral evidence from a wide range of organisations. This is to ensure that any suggested changes to the National Minimum Wage have minimum adverse impact on employment and competitiveness.

This approach proposed draws on that adopted in the UK where, since 1997, the recommendations of the UK Low Pay Commission have brought about a progressive increase of the minimum wage that has little detrimental effect on the functioning of the economy or labour market.

Employment Rights

Questions (29)

Paul Murphy

Question:

29. Deputy Paul Murphy asked the Minister for Jobs, Enterprise and Innovation his views on au pairs and domestic workers being paid the minimum wage; and if he will make a statement on the matter. [12086/15]

View answer

Written answers

Ireland's strong commitment to protecting the rights of domestic workers was highlighted last July when we ratified the International Labour Organisation's (ILO) Convention No. 189 on Domestic Workers. Ireland is among the small group of seventeen ILO member countries that have ratified this Convention to date. To mark the occasion of Ireland's ratification of the Convention and to help promote greater awareness of domestic workers' rights, Minister Bruton welcomed members of the Migrant Rights Centre of Ireland's Domestic Workers Action Group, along with IBEC and ICTU, to the Department on 9 July 2014 for the launch of a NERA Information Leaflet on the employment rights of domestic workers in Ireland. Ireland's strong track record in the area of protecting people involved in domestic work is evidenced by the fact that we were in a position to ratify the Domestic Workers Convention without having to amend our existing suite of employment rights legislation.

The National Employment Rights Authority (NERA) has undertaken a programme of inspections involving domestic workers, and continues to respond to any complaints received from domestic workers. In addition, the Labour Relations Commission, in conjunction with the social partners, produced a Code of Practice for Protecting Persons Employed in Other People's Homes which recognises the unique circumstances that occur in the domestic work employment relationship.

There is no legal definition of the term “au pair” in Irish legislation. However Ireland's body of employment rights legislation protects all employees who are legally employed on an employer-employee basis, regardless of what title is given to them. Therefore, once it is clear that a person is working under a contract of employment, on a full-time or part-time basis, that person has the same protection under employment law as other employees. For example, the National Minimum Wage Act 2000 requires that any persons working under a contract of employment to be paid the statutory National Minimum Wage. For the purposes of this Act, this means a contract of service or apprenticeship, or any other contract whereby an individual agrees with another person to do or perform personally any work or service for that person.

Where the National Employment Rights Authority (NERA) receives a complaint involving somebody described as an au pair, NERA will investigate with a view to establishing the person's statutory entitlements under employment law. The question as to whether a person is an employee or not is generally established by reference to the provisions of existing employment legislation and established contract law, regardless of any title or designation given to the individual. Complaints involving "au pairs" are considered on a case-by-case basis, in the light of the facts of each case.

Any persons with questions or complaints regarding their rights under employment law should contact the Workplace Relations Customer Service on lo-call 1890 808090 or at www.workplacerelations.ie.

Employment Rights

Questions (30)

Peadar Tóibín

Question:

30. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the measures within the Action Plans for Jobs 2015 that will address the high levels of part-time and casual work which are now embedded in the structure of the labour market. [12095/15]

View answer

Written answers

The premise of the Deputy's question is false. Since 2012, the Action Plan for Jobs (APJ) has put in place a comprehensive set of measures agreed by Government to promote job opportunities and employment growth in all parts of the country. Almost 90,000 more people are at work since the launch of the first Plan in 2012. This increase has been in full-time jobs rather than casual or temporary jobs, with full time jobs accounting for 86% of the jobs growth. While the proportion of Irish workers who are on temporary contracts rose slightly during the recession, reaching 10.5% in 2011, it has since fallen back to the pre-recession level of 9.5% and remains significantly below the EU average of 14.4%. The CSO data for February 2015 indicates that the share of casual and part-time workers on the Live Register was down over 11% on February 2014, equivalent to 9,049 workers. The cumulative decrease is 17,625 workers since February 2013. The CSO data further indicates that the rate of unemployment has declined from a peak of 15.1% at the start of 2012 to 10.1% at end February 2015. The latest Quarterly National Household Survey figures show that, for the year to end Q4 2014, the numbers of people in employment increased by 29,100, which was represented by an increase in full-time employment of 39,600 and a decrease in part-time employment of 10,500.

The Action Plan for Jobs process is working and the Government is determined that this progress continues so that full employment can be achieved by 2018. In 2014, client companies of Enterprise Ireland and IDA Ireland created 8,476 and 7,131 net new jobs respectively; this represents the highest levels of net new job creation by agency client companies in over a decade and most of this employment growth was in full-time employment.

The 2015 Action Plan for Jobs, which was launched on January 29th, contains a suite of 382 actions to ensure we deliver the promised 100,000 additional jobs by 2016, with the target to create 40,000 jobs this year. Specifically, in 2015, Enterprise Ireland will target the creation of 13,000 gross new full-time jobs in indigenous firms. IDA Ireland will target the creation of 14,000 gross new jobs in multinationals. It is estimated that every direct job created in agency assisted firms indirectly supports another job in the wider economy thereby making a strong contribution to the overall target of achieving full employment in 2018.

While it is very encouraging that the majority of jobs being created are full-time, in accordance with the Statement of Government priorities, I have commissioned the University of Limerick to conduct a study into the prevalence of zero hour and low hour contracts and the impact of such contracts on employees. 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 contract on employees.

- To enable me as 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, and a wide range of stakeholders will be canvassed to contribute to it. It is expected that the study will be completed within six months of commencement.

Grocery Industry Competition

Questions (31)

Peadar Tóibín

Question:

31. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation when the final regulations for the grocery goods sector, as provided for under the Competition and Consumer Protection Act 2014, will be signed into law; and if his attention has been drawn to any current practices by large retailers that are unduly and unfairly burdening their suppliers. [12096/15]

View answer

Written answers

As the Deputy is aware, the Programme for Government contains a commitment to regulate certain practices in the grocery goods sector and this will be met by way of enabling powers to regulate certain practices in the grocery good sector. These powers are contained in the Competition and Consumer Protection Act 2014. On 22 December 2014, I issued a set of draft regulations for public consultation with a deadline for submissions of the end of February 2015. However, some respondents requested an extension of the deadline into March 2015 for submissions. The content of submissions received are currently being fully considered before the final version of the regulations is promulgated, and the regulations are signed by me, as soon as possible during 2015.

Allegations of unfair practice in the grocery goods sector have been made over a number of years. As the Deputy will know, I have consistently emphasised that it is important to ensure there is balance in the relationship between the various players in the grocery goods sector and that Ireland continues to have robust agri-food and retail sectors, particularly given the importance of these sectors to the national economy. The regulation of certain practices in the grocery goods sector is intended to achieve such a balance taking into account the interests of all stakeholders in the grocery goods sector including the interests of the consumer and the need to ensure that there is no impediment to the passing-on of lower prices to consumers.

Irish Airlines Superannuation Scheme

Questions (32)

Clare Daly

Question:

32. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation if he is satisfied with the manner in which the Irish Airlines (General Employees) Superannuation Scheme Expert Group dealt with the initiative proposed by the Secretary General of his Department and the Secretary General of the Department of Transport, Tourism and Sport on 2 December 2014; and if he will make a statement on the matter. [11964/15]

View answer

Written answers

At the request of the Department of Transport, Tourism and Sport and the Department of Jobs, Enterprise and Innovation, the Expert Panel was asked to re-engage with SIPTU and ICTU in relation to matters dealt with in its June 2014 report on its review the Irish Aviation Superannuation Scheme (IASS), including the actuarial assumptions, and to provide clarity on those matters. There were also discussions immediately before Christmas between the two Departments, members of the Expert Panel and ICTU in relation to this engagement which helped to refine the areas of focus for the Panel.

On 9 March last, the Expert Panel presented its Final Determination on the resolution of the industrial relations issues. The Report states that the unions have confirmed that the June 2014 Report, together with the Panel's Final Determination, will be put to an immediate ballot/reballot of all members to be conducted as quickly as possible. The Report also states that the unions confirmed that it will be made clear to members that this outcome is the absolute best that can be achieved in negotiations.

I wish to express my thanks to the Expert Panel for completing its work in such an effective and efficient manner and to all parties that engaged so constructively in the process.

Apprenticeship Programmes

Questions (33)

David Stanton

Question:

33. Deputy David Stanton asked the Minister for Jobs, Enterprise and Innovation his Department's role in encouraging apprenticeships; and if he will make a statement on the matter. [11960/15]

View answer

Written answers

In its submission to the Apprenticeship Review in 2013, this Department identified the need for apprenticeships that better reflected the changing occupational needs brought about by advances in technology and productivity in modern manufacturing and service occupations.

The focus of this Department has been on advocating for a wide range of enterprise-led apprenticeships to meet the needs of enterprises and to equip individuals for the current or future job opportunities across the economy in areas such as manufacturing technician, manufacturing machine operators, practical engineering apprentice, polymer technologists, tool-making, customer support, transport/logistics, supply chain management, IT user and application roles, hospitality and healthcare.

Key to these apprenticeships is developing a curriculum for the relevant occupations that reflects the tasks needed to be performed in the modern workplace with the length, breadth and depth of technical coverage and work-based practical experience to ensure qualifications and learning outcomes are achieved leading to full awards on our National Framework of Qualifications. It is vital that apprenticeships encompass an access path for those who wish to enter it from different educational attainment levels including accelerated entry routes recognising prior experience.

Career progression for those engaging in apprenticeships is important so that it provides for well-structured and mapped progression routes to higher levels of technical skills, supervisory and management roles operating seamlessly between second level, further and higher education and on the job training. The new apprenticeships should be seen by school leavers as a valuable flexible work based training programme leading to a range of recognised valuable careers in services, and manufacturing occupations.

This Department has undertaken a number of initiatives around raising awareness of the recent Apprenticeship call in its day-to day dealings with businesses specifically, Enterprise Ireland and IDA Ireland client companies. The new apprenticeship scheme is being actively marketed to informing them of specific sectoral trade associations with whom they might collaborate in an apprenticeship submission, e.g. Food and Drink, Financial Services, Medical Devices, Pharmaceuticals, Engineering and ICT.

Both I and Minister English have taken every opportunity to raise awareness of the apprenticeship call at various engagements since it issued in January.

Minister English recently met with Freight Transport, distribution and logistics representative bodies and further and higher education providers in that sector to draw their attention to the possibilities that the apprenticeship might provide for them to address the specific skills gaps identified in the Expert Group on Future Skills Needs report for the sector which he launched in February.

Minister Nash, at the Retail Consultation Forum, also highlighted the opportunities for that sector by collaborating in a submission.

Department executives actively promoted the apprenticeship call at a series of workshops with the hospitality sector in the course of their work on the skills requirements for that sector.

Scientific Research

Questions (34)

Thomas Pringle

Question:

34. Deputy Thomas Pringle asked the Minister for Jobs, Enterprise and Innovation if he will respond to the open letter signed by more than 900 scientists calling on the Government to rebalance its funding for scientific research away from a commercial-heavy focus and towards the funding of research across all disciplines; if the successor to the Strategy for Science, Technology and Innovation 2006-2013 will include a focus on third level research projects on sustainable and renewable energy technology; and if he will make a statement on the matter. [12077/15]

View answer

Written answers

The Government remains committed to the importance of science, technology and innovation (STI) given the key role that it plays in underpinning economic recovery and maintaining Ireland's competitiveness.

Ireland has successfully built up a strong science base as result of significant funding and an ambitious policy of building up capacity in our Higher Education Institutes and in our enterprise base over the last decade and a half. The Strategy for Science, Technology & Innovation (2006 to 2013) was a broad based strategy which covered funding for research and innovation across all disciplines and across the full continuum of research from basic to applied as well as commercialisation of research.

Economic and fiscal conditions in the intervening period informed the Government's decision to implement a range of policies directed at accelerating the economic and societal return on our STI investment. Research Prioritisation was one such key policy initiative and saw a concentration of the majority of competitive funding on areas which were deemed most likely to secure greater economic and societal impact, particularly in the form of jobs.

While Research Prioritisation saw a greater emphasis on the economic and societal impact of research it did not represent a move away from funding basic research. Policy has been and will continue to support research across the full continuum from basic to applied, through to commercialisation of research. While the mandate of Science Foundation Ireland was expanded in 2013 to include applied as well as basic oriented research, SFI is still mandated to fund earlier stage research. However, all research supported by SFI must be in strategic areas of opportunity for the State in line with our research prioritisation agenda and it must have impact - this approach will continue to underpin policy into the future and will be a central pillar of the Government's Strategy.

Excellence in scientific research has also been and will continue to be a cornerstone in the development of our science base in Ireland. In the context of our vision for the future, we must have a strong and excellent research base particularly in areas where our strengths can match opportunities.

I welcome the open letter from “Irish Scientists for Basic Research” as part of the consultation process designed to inform the development of a broad based Strategy which will be a successor to the Strategy for Science Technology & Innovation. This letter along with all other submissions received from the various stakeholders will be considered in detail by my Department and the Interdepartmental Committee which has been established tasked with developing proposals for the new Strategy. The new whole-of-Government Strategy will articulate a vision for science policy across all disciplines and will address Government wide goals on innovation in key sectors for job creation and societal benefit.

Foreign Direct Investment

Questions (35)

Seán Kyne

Question:

35. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation his plans to ensure that Ireland remains at number one in the world in terms of the provision of investment incentives to attract inward investment; the way this encourages companies to invest here; the way it improves the creation of direct and indirect jobs; and if he will make a statement on the matter. [12079/15]

View answer

Written answers

My Department's Policy Statement on Foreign Direct Investment, which was published at the end of July 2014, sets out the strategic direction for FDI to 2020 and the key actions needed to enhance Ireland's attractiveness and business environment in the context of intensified international competition for investment and talent. As the Deputy is aware Ireland continues to perform well in the attraction of new investment and particularly so in recent years as FDI inflows to Europe have slowed considerably.

Total employment at IDA client companies now stands at 174,488 people, the highest level in the history of IDA Ireland. The job performance took place against a particularly challenging European economic environment and changing corporate taxation landscape. There were 197 investments in 2014, equating to a 20% increase on 2013. There was a notable rise in new-name investment, with 88 new name investors in 2014.

This highlights both the draw of large wealthy markets for FDI, particularly when the focus activities are sales and marketing, but also investor options across Central & Eastern Europe and Western Europe for manufacturing, R&D and business support services. The range of countries competing for FDI in Europe demonstrates the intensity of the marketplace to secure investments for Ireland. In Ireland's case, cost competitiveness, the availability of a dynamic talent pool and targeted sectoral focus, was underpinned by the strong economic management and certainty on the 12.5% corporate tax rate.

The US 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 for contestable investments, competition with the UK, Germany and France, the major overall beneficiaries of US investment into Europe, is intense. The proposed TTIP currently under negotiation could be transformational in this area. There are potentially many benefits for Ireland from a successful deal but we must also be aware that such trade deals can impact FDI flows.

IDA Ireland constantly monitors competitor locations and the value propositions they offer potential mobile investment. Competitor locations differ depending on the sector of the mobile investment. In this respect, IDA Ireland is continuously working to ensure that Ireland is the most competitive, innovative and relevant to the investment being targeted.

Multinational companies account for almost 10% of the Irish workforce and are of crucial strategic importance for the economy due to the quality of the jobs involved, their export focus and the massive knock-on impact they have on the wider economy.

Ireland's relative cost competitiveness, corporate tax regime and available direct firm level financial supports remain critically important - but in reality they are no longer aspects that will substantially differentiate Ireland's offering for FDI over the longer term. So in addition to maintaining a competitive offering in these areas we must at the same time redouble efforts to develop and reinforce the aspects that truly differentiate Ireland's offering in a context of intensified global competition for mobile investment. With this objective in view, I recently launched IDA Ireland's new corporate strategy for the years 2015 to 2020 which aims to create 80,000 new jobs in the economy over the next five years.

We are determined to ensure that every region will benefit from the recovery. I recently announced along with the Taoiseach and the Tánaiste, the details of a comprehensive new strategy to support enterprise growth and job creation at regional level. The Regional Action Plan for Jobs initiative seeks to build on the success of the annual Action Plan for Jobs process by developing locally driven plans that can build on the strengths and opportunities identified in each region.

The strategy will provide up to €250 million over five years in additional funding to support regional enterprise development. This includes the roll out of a five year, €150 million property investment programme by the IDA to attract foreign direct investment into the regions. This programme will build on the recent investment by the IDA 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.

Retail Sector

Questions (36)

Peadar Tóibín

Question:

36. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation his plans to act on the recommendations of the recent Retail Excellence Ireland and Northern Ireland Independent Retail Trade Association report on building the all-island retail industry, North and South. [12098/15]

View answer

Written answers

Since coming into office, the Government has recognised the importance of the retail sector to the economy. The Wholesale and Retail sector accounts for the largest share of employment in the Irish economy, employing 276,000 people in Ireland and representing approximately 15% of the workforce. The sector provides employment in every community in the country and is an important part of every locality.

Retail Excellence Ireland and the Northern Ireland Independent Retail Trade Association published the “Building Retail: North & South” report earlier this month. The report was funded through the Department of Foreign Affairs & Trade's Reconciliation Fund, as it was recognised that a vibrant retail sector plays an invaluable role in the economy of the whole island.

The report makes a number of recommendations, many of which focus on positioning Ireland as a shopping destination and on marketing retail as part of the tourism strategy of Tourism Northern Ireland and Fáilte Ireland. These recommendations can best be progressed through engagement between the relevant retail associations and the tourism bodies across the island.

The report also recommends the establishment of a North-South Retail Forum which would be chaired by the retail bodies. My Department established a Retail Consultation Forum in June 2014 as one of the key deliverables in the Action Plan for Jobs to support the recovery of the retail sector in Ireland. The Retail Consultation Forum is chaired by the Minister for Small Business and Employment, Mr. Ged Nash, T.D.

The Forum provides a platform for a structured engagement between the Retail sector and relevant Government Departments and aims to be interactive, participative and solutions-focused. Membership comprises retail representative bodies, including Retail Excellence Ireland, retail practitioners, and relevant Government Departments and public bodies.

The Work Programme of the Retail Consultation Forum is driven primarily by the retail representatives on the Forum. However, the Forum could be asked to study the “Building Retail: North & South” report at a future meeting and consider if it can make a contribution to building an all-island retail industry.

The Forum will also shortly be considering the forthcoming report of the Joint Oireachtas Committee on Jobs, Enterprise and Innovation on Town Centre Retailing, which is an important issue for retailers both North and South of the Border.

Community Employment Drug Rehabilitation Projects

Questions (37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49)

Caoimhghín Ó Caoláin

Question:

37. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection if she will provide details of the most up-to-date available information on the annual cost of the special community employment schemes. [12525/15]

View answer

Caoimhghín Ó Caoláin

Question:

38. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection if she will provide details of the most up-to-date available breakdown of annual costs, including all wage, salary, training and capital costs. [12526/15]

View answer

Caoimhghín Ó Caoláin

Question:

39. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection if she will provide details of the number of client participants and service users currently employed in the special community employment schemes. [12527/15]

View answer

Caoimhghín Ó Caoláin

Question:

40. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection if she will provide details of the wage cost for the client participants and service users currently employed in the special community employment schemes. [12528/15]

View answer

Caoimhghín Ó Caoláin

Question:

41. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection if she will provide details of the gender breakdown of the client participants and service users currently employed in the special community employment schemes. [12529/15]

View answer

Caoimhghín Ó Caoláin

Question:

42. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection if she will provide details of the current number of key workers employed in the special community employment schemes (details supplied). [12530/15]

View answer

Caoimhghín Ó Caoláin

Question:

43. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection the current wage cost of key workers employed in the special community employment schemes. [12531/15]

View answer

Caoimhghín Ó Caoláin

Question:

44. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection the budget allocated specifically for key worker training for key workers employed in special community employment schemes. [12532/15]

View answer

Caoimhghín Ó Caoláin

Question:

45. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection the current actual expenditure incurred specifically for training key workers employed in special community employment schemes. [12533/15]

View answer

Caoimhghín Ó Caoláin

Question:

46. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection if key workers employed in the special community employment schemes are paid the same wages and work the same hours as participants on the same schemes and are subject to the same employment contract terms and conditions, including duration of employment contract. [12534/15]

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Caoimhghín Ó Caoláin

Question:

47. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection if she will provide details of the policy justification for the equal employment conditions of client participants, service users and key workers, considering their clearly distinct role involvement in the special community employment schemes. [12535/15]

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Caoimhghín Ó Caoláin

Question:

48. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection if she will provide details of the policy justification for there being no recognition in regard to the accumulated training and experience of key workers employed in a special community employment scheme. [12536/15]

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Caoimhghín Ó Caoláin

Question:

49. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection if she will provide details of the breakdown between men and women employed as key workers in the special community employment schemes. [12613/15]

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Written answers

I propose to take Questions Nos. 37 to 49, inclusive, together.

There are 1,000 drug rehabilitation places ring-fenced on Community Employment (CE). As of December 2014, there are 936 referred clients (292 female, 644 male) on drug rehabilitation schemes and 220 support workers (117 female, 103 male).

There has been no change to the CE Budget for Drug Rehabilitation places in 2015 over 2014 which remains at €14.5m. This is based on the average cost of a CE place of €13,000 which includes a budget for participant allowances (€12.5m), supervisory costs (€1.5m), material costs (€250,000) and training costs (€250,000). The combined weekly wage cost for referred clients and support workers is approximately €254,400. The conditions relating to participation on CE are contained in the CE Operations Manual. All CE participants receive a payment of €208 per week while participating on CE and the hours are 19.5 hours per week or 39 hours per fortnight.

There are no key workers posts on CE Drug Rehabilitation Schemes. The structure of a CE Drug Rehabilitation scheme is 1 Supervisor to 7 referred participants (a ratio of 1:7). In addition, 2 support workers may support the delivery of the CE Scheme. Support workers who are job-seekers and over 1 year unemployed, comply with normal CE eligibility conditions and are referred from Intreo Offices. Participants on the ring-fenced places must be referred by a recognised addiction practitioner.

The quality of a supervisor can be the single most important factor in the success of a CE drug rehabilitation scheme, together with the support of an active Sponsoring Committee. All supervisors must be competent to provide coaching and mentoring to participants and ensure that relevant training or work experience opportunities are provided for participants in their path to rehabilitation and progression.

The role of CE schemes is to help recovering drug users to develop their personal and employment skills and to find a pathway back to work. Part of this engagement involves working closely with existing services to progress an interagency focus on education, prevention, treatment, rehabilitation and training – five key pillars of the National Drugs Strategy (2009-2016) - for the advancement of the participant.

The Health Service Executive (HSE) has responsibility for ensuring that each person is appropriately supported through the rehabilitation system. The supports are clearly outlined in the National Drugs Rehabilitation Framework Document (2010) and include provision for a key worker - “the key worker is the named person who is assigned to work closely with the service user and provide a range of psycho-social interventions/advocacy ” (2010:11) and falls within the services and supports provided by the HSE.

A key feature of the Department's response in supporting CE rehabilitation schemes was the establishment of a key Drugs Stakeholders Group in 2013 which now assists the Department to identify and implement enhancements to the scheme. In addition, training workshops have been held with the scheme supervisors and departmental staff to ensure that the schemes continue to meet the needs of participants.

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