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Wednesday, 1 Jul 2015

Written Answers Nos. 102 - 111

Departmental Expenditure

Questions (102)

Mary Lou McDonald

Question:

102. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the annual saving to the Exchequer if all Department spending on travel was reduced by 2.5%, 5% and 10%. [26628/15]

View answer

Written answers

My Department does not normally collect information on overall figures for travel and subsistence in the civil and wider public service. However, in 2013 my Department carried out an analysis of spending on travel and subsistence expenditure across the Civil and Public Service. The analysis covered spending in the years 2011 and 2012 and is the most recent public service-wide analysis.

The following table shows spending in the categories of Domestic Subsistence, Foreign Subsistence and Motor Travel for 2012 and also shows the amount equivalent to a reduction of 2.5%, 5% and 10% on these figures.

The Deputy may wish to note that certain changes in subsistence arrangements come into effect from 1 July 2015. In summary, these arrangements provide that an overnight allowance will not generally be payable in respect of a necessary absence on official business that is within 100 km of an officer's home or headquarters (whichever is the lesser) and a day allowance is not payable for an absence on official business that is within 8 km of an officer's headquarters or home (whichever is the lesser). It is envisaged that the new arrangements will result in savings of approximately €7 million.  

2012

2.50%

5%

10%

Domestic Subsistence

 €  42,943,000

 €1,073,575

 €2,147,150

 €4,294,300

Foreign Subsistence

 €  16,171,000

 €   404,275

 €   808,550

 €1,617,100

Motor Travel

 €  85,459,000

 €2,136,475

 €4,272,950

 €8,545,900

Gross total T&S

 €144,573,000

 €3,614,325

 €7,228,650

 €14,457,300

Job Losses

Questions (103, 104, 105)

Brendan Smith

Question:

103. Deputy Brendan Smith asked the Minister for Jobs, Enterprise and Innovation if he will provide an outline of the discussions he has had with an insurance company (details supplied) in respect of that company's proposal to reduce its workforce by 270 persons; if he has outlined to the company the absolute need to retain the maximum level of employment; and if he will make a statement on the matter. [26562/15]

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Brendan Smith

Question:

104. Deputy Brendan Smith asked the Minister for Jobs, Enterprise and Innovation if he has outlined to an insurance company (details supplied) the need for the company to honour the commitments made at the time of purchase of Quinn Insurance to retain employment levels of almost 1,500; and if he will make a statement on the matter. [26563/15]

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Dara Calleary

Question:

105. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the actions he has taken to protect jobs at a company (details supplied); and if he will make a statement on the matter. [26581/15]

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Written answers

I propose to take Questions Nos. 103 to 105, inclusive, together.

I share the Deputies’ concern in relation to the recent developments at Liberty Insurance, where job losses were announced last week. The most significant area of concern in this jurisdiction is the proposed reduction of 115 jobs in Cavan town, which will be a significant blow to those employees and their families in this rural area.

This decision was made after a strategic internal review by the company. The Deputies will appreciate that we cannot change a company decision - companies make strategic decisions based on what they think is best for the company and its owners. In the globalised world we live in, capital is very mobile. We are generally very successful in retaining and embedding foreign companies in Ireland, unfortunately in this case the company have made a decision to reduce numbers. So the priority now is to retain the remaining jobs and work to create new jobs elsewhere.

The underlying reason for these redundancies is that Liberty Insurance conducted a strategic review of its business and that it will, as a result, withdraw from the personal motor insurance market in Great Britain and make significant changes to its operations in Ireland. The company will now focus on the Republic of Ireland market.

On a more positive note, Liberty Insurance has purchased the remaining minority stake in the company. In addition it has announced the acquisition of a company in Northern Ireland and has continued to invest and create jobs in their Liberty IT division in both Dublin and Belfast. In 2013 the company announced the creation of 150 jobs in an IT project at their Blanchardstown operation and this project is being put in place and is unaffected by the recent announcement.

I am encouraged by the company statement that it is fully committed to Ireland, that it will be seeking voluntary-led redundancies in the first instance and that these will not take place immediately but will be phased over an 18-month period. The company has also stated that attractive redundancies terms will be offered, which should encourage a higher voluntary take-up.

I have asked both IDA Ireland and Enterprise Ireland to redouble their efforts to secure new projects and expand existing operations in Cavan, and to explore all opportunities to replace the jobs being lost there. Enterprise Ireland, has been very successful in recent years, with jobs in their client companies in the Irish-owned sector, having grown in County Cavan by 394 last year.

In addition, the Local Enterprise Office in the County, formerly the County Enterprise Board, has been working to develop the micro-enterprise sector in the county and has helped to develop start up enterprises. That work will, of course, continue.

In relation to the job numbers at the time of the 2011 purchase of Quinn Insurance, the commitment given at that time as part of the takeover was that the 1,570 staff in both jurisdictions were transferred under the EU’s Protection of Employees Rights on Transfer of Undertakings to Liberty Insurance. However this did not guarantee that these job levels would be retained indefinitely. Unfortunately no new employer could give such a blanket guarantee, especially in a volatile and changing market sector.

The State, though IDA Ireland, will continue to engage with the company to seek to influence corporate decisions and to broaden the scope of their operations here. However there are constraints on State supports for companies, either multinational or Irish-owned, whose operations mainly involve the provision of a service for Irish customers, such as is now the case for Liberty Insurance.

Despite the current setback, it should be highlighted that significant progress in addressing the problems of the wider Border region has been made over recent years. As recently as Quarter 3 2012 the unemployment rate in that region stood at 17.7% but by Quarter 1 2015 that had fallen to 10.2%, which of course is still too high but represents a major improvement. An additional 18,000 jobs were put in place over that period in the region which is an impressive achievement. Jobs in Government-supported companies in Cavan have increased by 7% in the recent years following the crash.

I am very conscious of the difficulty in attracting new industry to the regional centres. For this reason I have initiated the preparation of an Action Plan for Jobs for the Border region as part of the drive to increase the level of job creation across the country. Eight Regional Action Plans will be delivered this year, building on the success of the national Action Plan for Jobs process, which has contributed to the creation of over 100,000 new jobs since 2012. Significant progress has been made in preparing the Action Plan for the Border region, which of course includes County Cavan, in consultation with key stakeholders there. My officials are currently finalising that Plan and I anticipate that it will be launched in the Autumn.

Enterprise Support Services Provision

Questions (106)

Finian McGrath

Question:

106. Deputy Finian McGrath asked the Minister for Jobs, Enterprise and Innovation if he will provide support in respect of a new company (details supplied); and if he will make a statement on the matter. [26637/15]

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Written answers

My Department takes a number of factors into account when disposing of old IT equipment and other electronic waste. Such factors include, among other things, cost, security, data protection and efficient reuse. My Department has in the past used open public procurement procedures to choose a recycling partner who is best able to meet its requirements. As certain ICT equipment designated for disposal may have a residual value, it would not be feasible for my Department to provide such equipment to any one operator without offering it on an open basis through some form of competitive procurement process. Future procurement processes related to this area are likely to be managed by the Office of Government Procurement.

Departmental Expenditure

Questions (107)

Mary Lou McDonald

Question:

107. Deputy Mary Lou McDonald asked the Minister for Jobs, Enterprise and Innovation the annual saving to his Department if spending on education and training was reduced by 2.5%, 5% and 10%; and if he will make a statement on the matter. [26923/15]

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Written answers

In supporting learning and development to facilitate the Department in building appropriate skill and expertise levels, while supporting officers in the area of self-development and life-long learning, my Department has a dedicated Learning & Development budget. In the most recent full financial year of 2014, my Department spent a total of €451,191 on training and learning & development. This represented a relatively modest investment in business-relevant skills development of the staff of the Department and is considered an essential enabler to building and maintaining our capacity to deliver the critical strategic mission of my Department.

A substantial proportion (23%) of expenditure in the area relates to the refund of fees to staff pursuing business-related educational courses outside of normal working hours.

The percentage reduction in this spend requested by the Deputy is outlined as follows:

DJEI Training and Development Expenditure in 2014 - €451,191

%

2.5%

€11,280

5%

€22,560

10%

€45,119

Departmental Expenditure

Questions (108)

Mary Lou McDonald

Question:

108. Deputy Mary Lou McDonald asked the Minister for Jobs, Enterprise and Innovation the annual saving to his Department if spending on professional fees, including but not limited to legal, IT-related, accountancy and other advisory and consultancy fees, was reduced by 10%; and if he will make a statement on the matter. [26952/15]

View answer

Written answers

The estimated expenditure for professional fees, including but not limited to legal, IT-related, accountancy, and other advisory and consultancy costs for 2015 for my Department is €5,376,500. This includes the figure of €784,000, which relates to the Forfás consultancy budget which is now part of my Departments budget following the integration of Forfás in the Department of Jobs, Enterprise and Innovation. The annual saving in 2015, if spending was reduced by 10%, would be €537,650.

My Department keeps the overall position on professional fees, under close review and, where a decision is taken to engage external providers, this is, and will continue to be, done in the context of the options open to my Department at that time and with a view to best value for money. Where the use of external services is considered necessary, this is subject to normal public procurement procedures.

Departmental Expenditure

Questions (109)

Mary Lou McDonald

Question:

109. Deputy Mary Lou McDonald asked the Minister for Jobs, Enterprise and Innovation the annual saving to the Exchequer if Minister's special advisers' salaries were capped at the first point of the principal officer grade, that is, €75,647; and if he will make a statement on the matter. [26966/15]

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Written answers

The following tables set out the salary details of the two Special Advisors appointed by me as Minister for Jobs, Enterprise & Innovation, and the two Special Advisors appointed by Minister of State Gerald Nash, TD, in line with the Guidelines for Ministerial Appointments and as sanctioned by the Minister for Public Expenditure and Reform.

Special Advisors to Richard Bruton, TD, Minister for Jobs, Enterprise and Innovation:

Title

Salary Scale

Current Salary (8/07/15)

Estimated Annual Saving if Pay Capped at 1st point on Principal Officer Scale

Special Adviser (Policy)

€118,840

€118,840

€43,193

Press Adviser (Press)

€75,647 - €92,550

€84,706

€9,059

Special Advisors to Gerald Nash, TD, Minister of State for Business and Employment:

Title

Salary Scale

Current Salary (8/07/15)

Estimated Annual Saving if Pay Capped at 1st point on Principal Officer Scale

Special Adviser (Policy)

€75,647 - €92,550

€87,258

€11,611

Special Adviser (Press)

€75,647 - €92,550

€84,706

€9,059

Departmental Expenditure

Questions (110)

Mary Lou McDonald

Question:

110. Deputy Mary Lou McDonald asked the Minister for Jobs, Enterprise and Innovation the annual saving to his Department and the bodies under its aegis if all the fees for all State agency, non-commercial State-sponsored bodies and commercial semi-State board members were reduced by 25%; and if he will make a statement on the matter. [26980/15]

View answer

Written answers

The following table lists the fees for the Chairperson and Members, for each Board under the aegis of my Department. The Deputy should note that in some cases members may have opted to waive their fees, some members will be subject to the ‘one person one salary’ principle and others are Department nominees at official level who are not entitled to fees and vacancies will exist on various boards from time to time. In October last I answered a related PQ which highlighted the fact that 44% of the Department of Jobs, Enterprise and Innovation related Board Members either do not qualify for, or have chosen to waive their fee.

The individual amounts paid to each member in board fees are a day to day matter for the respective Agencies. I have asked all Agencies under the aegis of my Department to advise me of their response, and I will communicate that information to the Deputy as soon as it is available.

Body

Chairpersons Fees

Member Fees

Enterprise Ireland

€20,520

€11,970

IDA Ireland

€20,520

€11,970

Labour Relations Commission

€20,520

€11,970

Personal Injuries Assessment Board

€20,520

€11,970

Science Foundation Ireland

€20,520

€11,970

Health and Safety Authority

€11,970

€7,695

Irish Auditing and Accounting Supervisory Authority

€11,970

€7,695

National Standards Authority of Ireland

€11,970

€7,695

Crafts Council of Ireland

€11,970

€7,695

Intertrade Ireland

€11,970

€7,695

In addition to the above agencies, the chairperson of the Company Law Review Group receives an honorarium of €8,978 per annum. No fee is paid to the members of the Group.

Commission for the Economic Development of Rural Areas

Questions (111)

Éamon Ó Cuív

Question:

111. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine the amount of funding available for spending in 2015 and 2016, respectively, under the Commission for the Economic Development of Rural Areas rural innovation and development fund; the projects and schemes being funded from this fund; and if he will make a statement on the matter. [26568/15]

View answer

Written answers

Funding of €1 million has been provided in this Department’s 2015 Vote for pilot innovative projects which progress the CEDRA remit. The provision for 2016 will be determined as part of the annual budgetary process.

A strong framework work programme for this fund has been developed and will be progressed over the remainder of this year. The proposed work programme includes pilot schemes for the development of female rural entrepreneurs, social farming, village/town regeneration based on local food markets and artisan produce and agri-tourism projects.

In that context, funding has been provided for Leitrim Development Company to provide overall support for social farming operations and specifically to develop four new social farming initiatives around the country.

A tender issued last month for the development and implementation of a pilot programme to develop the entrepreneurial skills of nascent female entrepreneurs living in rural areas. The closing date for receipt of tenders is 9 July.

In addition, two separate open competitive calls have been prepared seeking applications for part funding for proposals which enhance (a) existing social farming operations and (b) community based food/artisan/craft markets or shops in villages/small towns.

Following recent sanction from the Department of Public Expenditure and Reform, these pilot open calls for proposals, which will be competitive, will be advertised shortly on a national basis.

Finally, plans are being formulated for a further competitive call around agri-tourism projects with a particular emphasis on food, beverages and the marine, which could be partially funded from this CEDRA allocation. Details of the latter proposal have been finalised recently and will be advertised following sanction from the Department of Public Expenditure and Reform.

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