Written Answers Nos. 209 - 222
209. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation his plans to introduce the industrial relations (amendment) Bill to provide a new legislative framework for registered employment agreements before the summer recess. [13910/15]
View answerThe Government has approved the drafting of the legislation to provide for a revised legislative framework to replace REAs. This follows the 2013 judgement by the Supreme Court in the McGowan case which made the registration of employment agreements, including those governing sectoral terms and conditions, invalid. The main purpose of the legislation is twofold. Firstly, it will provide for the reintroduction of a mechanism for the registration of employment agreements between an employer or employers and trade unions governing terms and conditions in individual enterprises. Such agreements will not be legally binding beyond the subscribing parties.
The Bill will, separately, provide for a new statutory framework for establishing minimum rates of remuneration and other terms and conditions of employment for a specified type, class or group of – in effect a framework to replace the former sectoral REA system. In this context, the new framework proposes a mechanism whereby, in future, at the request, separately or jointly from organisations substantially representative of employers and/or of workers, the Labour Court can initiate a review of the pay and pension and sick pay entitlements of workers in a particular sector and, if it deems it appropriate, make a recommendation to the Minister on the matter. If the Minister is satisfied that the process provided for in the new legislation has been complied with by the Labour Court, he shall make the Order. Where such an order is made it will be binding across the sector to which it relates, and will be enforceable by the National Employment Rights Authority.
The proposed legislation has completed pre-legislative scrutiny and is due to be published shortly.
210. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will introduce the industrial relations (amendment) (No. 2) Bill to provide for collective bargaining rights before the summer recess. [13911/15]
View answerCabinet approval was obtained at the end of 2014 to legislate for an improved framework for workers who are in dispute with their employer regarding their terms and conditions in situations where there are no arrangements with their employer to resolve the matters through collective bargaining. When enacted, this legislation will mark the fulfilment of one of the most significant commitments in the Programme for Government which indicated that reform in this area was needed. In developing these proposals Minister Bruton and I have been keen to respect the positions articulated by stakeholders to develop proposals that sustain our voluntary system, but also ensure that workers have confidence that, where there is no collective bargaining, they have an effective system that ensures they can air grievances about remuneration, terms and conditions and have these determined based on those in similar companies and not be victimised for doing so.
I expect this legislation to be published during this Dáil session and enacted as expeditiously as possible thereafter.
211. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if the Unfair Dismissals Acts or Terms of Employment (Information) Acts include a definition for commencement of employment. [13927/15]
View answerWhile the Acts referred to by the Deputy contain various references to the commencement of the employment and references to a contract of employment having been entered into, these Acts do not contain a specific definition for commencement of employment. Under the Terms of Employment (Information) Act 1994, one of the particulars of information to be provided to the employee in the written statement of terms and conditions is the date of commencement of the employee’s contract of employment. This statement of particulars should be provided to the employee within two months of the commencement of the employment.
Where there is a question with regard to the commencement date of employment in a case before an adjudicatory body such as a Rights Commissioner, this will be decided on the basis of the facts of the particular case, taking into consideration any relevant legal principles or precedents.
212. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation the position regarding zero-hour contracts (details supplied); and if he will make a statement on the matter. [13982/15]
View answerThe 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 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 in February, 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.
213. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation further to Parliamentary Question No. 5 of 26 March 2015, if the €250 million over five years in additional funding was accounted for in his Department's budget for 2015; if he will provide details of this allocation in his Department's Voted Estimate; where this funding is to be dispersed; and if the €150 million property investment programme is included in the aforementioned €250 million allocation. [13993/15]
View answerAs part of the Action Plan for Jobs: Regional initiative which was launched last February, the Government announced that up to €250 million would be made available over five years to support enterprise development in the regions. The €250 million package includes €150 million for a property investment programme by IDA Ireland to attract foreign direct investment into the regions. Up to €100 million will be made available to Enterprise Ireland for three new competitive calls which will be announced over the coming months.
The IDA’s property programme will build on the recent investment by the IDA in Letterkenny, Athlone and Waterford. Construction will commence in 2015 at sites in Sligo, Castlebar and Tralee, and further developments are planned for Galway, Dundalk, Limerick, Carlow, Athlone and Waterford in 2016 and 2017. These projects will account for approximately 30% of the funding available to the IDA, so there will be scope to support other IDA property-based investments that emerge in the regions.
The objective of the funding which will be administered by Enterprise Ireland is to bring forward fresh collaborative initiatives to boost enterprise growth and job creation in the regions through three competitive calls. The first of these calls will focus on community-driven enterprise initiatives. A second call will focus on the Local Enterprise Office network and on supporting innovative new ideas to support job creation through the LEOs. A third, broader, competitive regional call will support significant projects or initiatives to leverage identified enterprise capability in the regions.
In the case of all three funding calls, a collaborative approach, tangible jobs impact, enterprise start-up and scaling are amongst the criteria against which applications will be measured.
The €250 million funding which the Government announced for these new initiatives is a multi-annual package and, in accordance with the standard Estimates procedures, the amounts to be provided each year will be agreed with the Department of Public Expenditure and Reform and published in the Revised Estimates Volume on an annual basis.
214. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation if he will address a matter (details supplied) regarding small and medium-sized enterprises. [14004/15]
View answerAccording to the Central Statistics Office (CSO), the number of SMEs in Ireland in 2012 (most recent figures available) was 185,049. The numbers have been declining since the economic crisis in 2008. Self-employed workers may access social welfare supports by establishing eligibility to assistance-based payments such as jobseeker’s allowance and disability allowance. In the case of means-tested jobseeker’s allowance they can apply for this scheme if their business ceases or if they are on low income as a result of a downturn in demand for their services.
The 2013 report of the Advisory Group on Tax and Social Welfare on extending social insurance coverage for the self-employed found that the current system of means tested jobseeker’s allowance payments adequately provides cover to self-employed people for the risks associated with unemployment. In this context, the Group noted that almost 9 out of every 10 self-employed people who claimed jobseeker’s allowance during the three-year period from 2009 to 2011 received payment.
My Department provides a range of supports for SMEs. Since this Government came to Office in March 2011, it has worked across its various Departments and agencies to ensure that all enterprises have access to appropriate finance for both working capital and investment.
In order to assist SMEs to grow and create jobs, my Department put in place two novel credit schemes: the Microenterprise Loan Fund (managed by Micro Finance Ireland) and the Credit Guarantee Scheme to support viable enterprises, from all sectors, who have been refused bank credit. Both schemes have been the subject of review and appropriate improvements to both schemes are in train. My Department also provides a range of grants, equity and venture capital finance through its agency, Enterprise Ireland.
The Local Enterprise Office network provides a range of financial and non-financial supports to help enterprises at start-up or during business expansion phases, including acting as a gateway to accessing finance from Micro Finance Ireland (MFI), which offers support in the form of loans of up to €25,000 to start-up, newly established or growing microenterprises employing less than 10 people with viable business propositions that do not meet the conventional risk criteria applied by the banks. Applications for the Microfinance Fund should be channelled through the local LEO. Further information can be found on the LEO website at www.localenterprise.ie.
The Minister for Finance has recently established the Strategic Banking Corporation of Ireland (SBCI). The SBCI will the ensure access to flexible funding for Irish SMEs by facilitating the provision of:
- Flexible products with longer maturity and capital repayment flexibility, subject to credit approval;
- Lower cost funding to financial institutions which is passed on to SMEs; and
- Market access for new entrants to the SME lending market, creating real competition.
Further information on cross-Government initiative to help enterprises, entrepreneurs and start-ups may be found on the Supporting SMEs Online Tool at www.actionplanforjobs.ie.
Other recent supports for SMEs include changes to the Seed Capital and Employment and Investment Incentive (EII) Schemes which provide more tax relief in respect of business investment. 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).
I am confident that the supports in place for SMEs will help further develop this vital contributor to economic growth in Ireland.
215. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation the supports available for persons who wish to set up a new business. [14005/15]
View answerIn the first instance, existing and prospective businesses can access the new online search tool for SME business supports that was launched last year. The Supporting SMEs Online Tool is a cross-governmental initiative to help Irish start-ups and small businesses navigate the range of Government business supports for which they could be eligible. The Supporting SMEs Online Tool can be accessed at www.actionplanforjobs.ie. The Local Enterprise Offices (LEOs) are the first-stop-shop service assisting in delivering business growth and jobs for the small and micro-enterprise sector. The LEOs are the first port of call in terms of advice, training, signposting to other support providers and, in certain circumstances, grant support for anyone who wishes to start or expand a business.
The LEOs themselves provide a range of financial and non-financial supports to help enterprises at start-up or during business expansion phases. It should be noted, though, that the LEOs generally only grant assist enterprises in the manufacturing or internationally traded services sector, which over time can develop into strong export entities. However, there are other non-financial supports available, such as mentoring and training, and the LEO staff can advise as to which supports would be most appropriate to an enterprise’s situation.
In addition, any business can use the LEOs as a gateway to accessing finance from Micro Finance Ireland (MFI), which offers support in the form of loans of up to €25,000 to start-up, newly established or growing microenterprises employing less than 10 people with viable business propositions that do not meet the conventional risk criteria applied by the banks. Applications for the Microfinance Fund should be channelled through the local LEO. Further information can be found on the LEO website at www.localenterprise.ie.
Enterprise Ireland is the national agency under my aegis with responsibility for the development of Irish enterprise, deepening Ireland’s footprint in world markets, and supporting employment creation in our economy.
Enterprise Ireland works to increase the number of companies starting-up, succeeding, expanding, exporting and ultimately creating jobs in Ireland. EI’s support system for young companies includes help with business planning, mentoring and development advice, feasibility funding and finance, often in the form of equity investment, as appropriate to the founder’s ambitions and the company’s potential and stage of growth.
Enterprise Ireland’s 10 regional offices work closely with entrepreneurs, local development agencies and local representative bodies offering a wide range of supports for entrepreneurship. Enterprise Ireland is also actively engaged in creating and maintaining relevant networks, which provide a pipeline of early stage entrepreneur enquiries.
The Government’s Action Plan for Jobs sets out a comprehensive set of measures to support entrepreneurship, SMEs and the self-employed. One of the key priorities in the 2015 Plan is driving implementation of the actions in the National Entrepreneurship Statement, which was published last October, and to achieve the ambitious 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 including 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.
216. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation if he will address a matter (details supplied) regarding credit for small businesses; and if he will make a statement on the matter. [14009/15]
View answerMy Department put in place two credit schemes in 2012: the Microenterprise Loan Fund and the Credit Guarantee Scheme. Microfinance Ireland (MFI) was established to manage and control the Microenterprise Loan Fund. I provided a €10 million Exchequer allocation to MFI in 2012 which will be supplemented by €5 million from the three main banks to cover the first 5 years of the Fund. There is scope within the legislation for further funding to be provided in the future.
MFI provides loans of up to €25,000 to start-up, newly established, or growing microenterprises employing less than 10 people, with commercially viable proposals that do not meet the conventional risk criteria applied by banks.
The latest figures which are published each quarter on my Department’s website show that MFI had, up until the end of 2014, received 887 applications with 704 applications fully processed. Overall there had been a 59% approval rating with loans of €6.3 million approved at that point. MFI applications are required to complete a standard loan application form which is available from MFI’s website.
The SME Credit Guarantee Scheme (CGS) provides a 75% State guarantee to banks against losses on qualifying loans to eligible micro, small and medium enterprises. and can facilitate up to €150 million of additional lending per year.
The latest figures which are published each quarter on my Department’s website, up to end of 2014, show that 162 CGS facilities totalling almost €22 million had been sanctioned resulting in 649 new jobs being created and 333 jobs maintained. Applications are made through participating lenders (currently Bank of Ireland, Allied Irish Banks and Ulster Bank), on a Borrower Scheme application form
Both credit schemes have been reviewed and my Department is working on implementing the review recommendations.
In addition to the above schemes, the Government through the NPRF has put in place an SME Credit Fund, Bluebay Ireland Corporate Credit I Limited and more recently established the Strategic Banking Corporation of Ireland (SBCI) to ensure access to flexible funding for Irish SMEs.
217. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation the position regarding audits (details supplied); and if he will make a statement on the matter. [14098/15]
View answerAs 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 the 1st June 2015.
Since the late filing fees 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.
218. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will provide, in tabular form, a list of the organisations that have made submissions to his Department on the proposed innovative manufacturing facility, as set out in the Action Plan for Jobs; if the Industrial Development Agency, Enterprise Ireland and Science Foundation Ireland have submitted their proposal for the establishment, governance and funding of the facility; and if he will provide details of the next steps for progressing this commitment. [14109/15]
View answer219. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the criteria being used in the selection of the National Advanced Manufacturing Centre; the number that are proposed; if it will be on one site; when the decision will be made; when is it expected that the centre will be up and running; and the expected value of this centre to the regional economy. [14137/15]
View answerI propose to take Questions Nos. 218 and 219 together.
I am committed to the development of the Manufacturing Sector in Ireland and to the implementation of the two studies which I commissioned, i.e. the Manufacturing Strategy and the Future Skills requirements for Manufacturing, both published in 2013 and which are currently being implemented. It is heartening that the latest employment data for those engaged in manufacturing shows a significant increase since those reports were commissioned, representing an increase of about 13,000 jobs, meaning that we are well on the way to achieving the projected increase of 20,000 by the end of 2016. Taking into account both direct and indirect jobs, the sector now supports a workforce of about 437,000 people.
In relation to the initiative referred to by the Deputy, I arranged for this research project to look at the business case for the possible establishment of an Innovative or Advanced Manufacturing Facility to be included in the 2015 Action Plan for Jobs, as it is apparent that there may be a gap in Ireland's’ infrastructure for the support of manufacturing, especially in relation to the provision of research and training.
Organisations have not made submissions to my Department as part of this exercise. The process adopted is that IDA Ireland and Enterprise Ireland are working on developing a detailed business case and these Agencies are interacting directly with key stakeholders. They have initiated a number of workshops involving over 50 companies, from both the Multinational and Irish-owned sectors. An Industry Steering Group has been established and input from this Group and from Science Foundation Ireland is ongoing.
Given the ongoing status of the initiative it would be premature to anticipate at this stage what the final recommendation will be in relation to possible establishment, format and finances of a possible Centre. It is intended that this assessment process will be completed by Quarter 3 of this year, as specified in the Action Plan for Jobs.
220. Deputy James Bannon asked the Minister for Jobs, Enterprise and Innovation his views on removing the position of chiropractor from the ineligible list of occupations for work permits; and if he will make a statement on the matter. [14284/15]
View answer221. Deputy James Bannon asked the Minister for Jobs, Enterprise and Innovation his views on adding the position of chiropractor to the high-skilled occupation list; and if he will make a statement on the matter. [14285/15]
View answerI propose to take Questions Nos. 220 and 221 together.
In accordance with our EU obligations, employment permits policy is calibrated to encourage the meeting of general labour and skills needs from within the workforce of the EU and other European Economic Area (EEA) countries. Ireland's labour market is part of a much greater EEA labour market which affords a considerable supply of skilled workers. Where specific skills prove difficult to source within the EEA, an employment permit may be sought to hire a non-EEA national.
The Employment Permit (Amendment) Act 2014 provides the flexibility to deal with changing labour market, work patterns and economic development needs which often require rapid response. The Regulations, as provided for in the Act, are being reviewed and adapted on a biannual basis to reflect the exigencies of a changing enterprise environment. They, inter alia, stipulate two types of occupation for the purposes of the employment permits system:
- The Highly Skilled Eligible Occupations Lists (HSEOL) sets out the lists of eligible occupations deemed to be critically important to growing Ireland’s economy, are highly demanded and highly skilled, and are in significant shortage of supply in our labour market. This list is an integral part of the Critical Skills Employment Permit which is designed to attract highly skilled people into the labour market with the aim of encouraging them to take up permanent residence in the State.
- The Ineligible Categories of Employment List includes those occupations for which there is a clear surplus of adequately skilled Irish and EEA nationals in the wider labour force.
My Department has devised a process of reviewing and updating the HSEOL and Ineligible Categories of Employment List for employment permits bi-annually. This review is predicated on a formalised and evidence-based process. Such a process involves obtaining and considering advice from the Expert Group on Future Skills Needs (EGFSN) and Skills and Labour Market Research Unit (SMLRU - SOLAS). It also involves input from relevant Government Departments, Agencies, and industry as necessary.
The EGFSN’s Annual Skills Bulletin contributes principally to my Department’s ongoing monitoring of the labour market. This Bulletin draws on data on employment, vacancies, job announcements and immigration and other qualitative information held in the National Skills Database (in SOLAS), to identify imbalances in the Irish labour market at occupational level.
The inclusion of chiropractors on the Ineligible Categories of Employment List was informed by this formalised evidence-based process. This periodic review process provides an opportunity to interested parties to make representations to me, as Minister, on the composition of the lists. Accordingly, my Department is considering the matter as part of its current review of the lists which it is intended will be finalised in May.
222. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the number of site visits by IDA Ireland client or prospective client companies, in tabular form and on a county basis, for the first three months of 2015; and if he will make a statement on the matter. [14540/15]
View answerI am informed by IDA Ireland that data on site visits for the first 3 months of 2015 is being verified by IDA Ireland at present. It is envisaged that the data will be available by the end of April 2015. I will forward the information to the Deputy as soon as it becomes available. It should be noted that site visits are only one part of a longer negotiation process between IDA Ireland and a client company and it is important to note that data on site visits is not a true measure or does not reflect the level of FDI activity in a Region or County. Depending on the sector, scale and complexity of the investment won by IDA Ireland, there could be a lead in period of up to 3 to 5 years before an investment is fully implemented as approved. The final decision on where to locate an investment does, and always will, ultimately reside with the client company.
In addition, approximately 70% of all FDI investment won by IDA Ireland comes from the existing client base. IDA Ireland has strong relationships with all of its client companies and works closely with them to ensure their long term sustainability and to encourage their growth, development and continuing re-investment in their sites.
