Written Answers Nos. 351-366
351. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if he will provide, by county, the number of jobs supported by the Industrial Development Agency Ireland on 31 December 2014 and on 30 June 2015; and if he will make a statement on the matter. [28561/15]
View answerThe following tabular statement sets out, on a county-by-county basis, the total number of jobs supported by IDA on 31 December 2014. Figures for June 2015 are not yet available.
|
County |
2014 |
|
Carlow |
741 |
|
Cavan |
1,136 |
|
Clare |
6,343 |
|
Cork |
28,545 |
|
Donegal |
2,612 |
|
Dublin |
70,989 |
|
Galway |
13,862 |
|
Kerry |
1,874 |
|
Kildare |
10,412 |
|
Kilkenny |
716 |
|
Laois |
87 |
|
Leitrim |
613 |
|
Limerick |
7,906 |
|
Longford |
650 |
|
Louth |
3,029 |
|
Mayo |
3,932 |
|
Meath |
1,252 |
|
Monaghan |
275 |
|
Offaly |
890 |
|
Roscommon |
858 |
|
Sligo |
2,069 |
|
Tipperary North |
326 |
|
Tipperary South |
3,044 |
|
Waterford |
5,097 |
|
Westmeath |
2,405 |
|
Wexford |
2,483 |
|
Wicklow |
2,342 |
|
Total |
174,488 |
352. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if he will provide, by county, the number of jobs supported by local enterprise offices on 31 December 2014 and on 30 June 2015; and if he will make a statement on the matter. [28562/15]
View answerThe 2014 annual results for the Local Enterprise Offices (LEOs) show that 4,012 extra jobs were created by companies supported by the Department of Jobs through the LEOs.
The results, which were compiled by the Enterprise Ireland Centre of Excellence, using the same systems as applied to the Enterprise Ireland and IDA Ireland annual results, show that at the end of 2014, total direct employment among the 6,058 LEO client companies stood at 31,326.
The results also show:
- A total of 7,305 new jobs created during 2014, in gross terms
- Taking into account losses, a net increase of 4,012, or 14%, in the numbers of people at work in these companies
- Jobs growth happened during 2014 in every county of the country in companies supported by LEOs
Data on 2015 is not yet available.
LEO Employment 2014 - by NUTS III Region
|
LEO |
No Of Clients |
Total Jobs in Client Companies 2014 |
Total Net Jobs Growth 2014 |
|
|
Cavan |
195 |
1,049 |
108 |
|
|
Donegal |
159 |
1,223 |
45 |
|
|
Leitrim |
126 |
388 |
117 |
|
|
Louth |
197 |
656 |
66 |
|
|
Monaghan |
170 |
904 |
61 |
|
|
Sligo |
202 |
1,103 |
73 |
|
|
Border |
Border Total |
1,049 |
5,323 |
470 |
|
Kildare |
103 |
683 |
63 |
|
|
Meath |
180 |
806 |
154 |
|
|
Wicklow |
97 |
572 |
137 |
|
|
Mid-East |
Mid-East Total |
380 |
2,061 |
354 |
|
Clare |
161 |
1,346 |
202 |
|
|
Tipperary North |
130 |
482 |
107 |
|
|
Limerick |
216 |
1,292 |
198 |
|
|
Mid-West |
Mid-West Total |
507 |
3,120 |
507 |
|
Laois |
85 |
384 |
35 |
|
|
Longford |
222 |
899 |
75 |
|
|
Offaly |
194 |
931 |
115 |
|
|
Westmeath |
242 |
1,284 |
38 |
|
|
Midlands |
Midlands Total |
743 |
3,498 |
263 |
|
Carlow |
206 |
1,152 |
207 |
|
|
Kilkenny |
243 |
1,154 |
196 |
|
|
Tipperary South |
148 |
895 |
62 |
|
|
Waterford |
300 |
1,515 |
152 |
|
|
Wexford |
170 |
1,070 |
210 |
|
|
South-East |
South-East Total |
1,067 |
5,786 |
827 |
|
Cork City |
96 |
656 |
191 |
|
|
Cork South |
155 |
785 |
171 |
|
|
Cork West/North |
215 |
1,277 |
187 |
|
|
Kerry |
444 |
1,794 |
85 |
|
|
South West |
South-West Total |
910 |
4,512 |
634 |
|
Galway County/City |
239 |
882 |
105 |
|
|
Mayo |
182 |
1,060 |
53 |
|
|
Roscommon |
141 |
641 |
6 |
|
|
West |
West Total |
562 |
2,583 |
164 |
|
Dublin City |
258 |
1,431 |
453 |
|
|
Dublin Dun Laoghaire/Rathdown |
211 |
1,304 |
156 |
|
|
Dublin Fingal |
142 |
562 |
126 |
|
|
Dublin South |
229 |
1,146 |
58 |
|
|
Dublin |
Dublin Total |
840 |
4,443 |
793 |
|
Grand Total |
6,058 |
31,326 |
4,012 |
353. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the value of drawdowns issued under the credit guarantee scheme on 31 December 2014 and on 30 June 2015; the value of approvals on the same dates; if he will provide, by county, a breakdown of each drawdown and approval; the reason for the delay in the legislation to review the scheme; and if he will make a statement on the matter. [28563/15]
View answerMy Department publishes quarterly progress reports on the Department’s website www.enterprise.gov.ie in respect of the Credit Guarantee Scheme. The progress report detailing the analysis and performance by region up to the quarterly period ending 31st March 2015 is available on the Department’s website. I intend to publish the report for the period 30th June 2015, once this report has been finalised.
As a result of the review of the Credit Guarantee Scheme a new Credit Guarantee Scheme 2015 has now been made in accordance with the terms of the Credit Guarantee Act 2012 which will allow guarantees for refinancing loans where an SME's bank has exited or is exiting the Irish SME market. This new Scheme will also increase the maximum length of guarantees under the Credit Guarantee Scheme from 3 years to 7 years.
To bring this Scheme into operation there are a number of steps to conclude with the participating banks including certification, approval and legal agreements. These processes are currently being completed and it is hoped that the new Scheme will be operational in the very near future.
In addition, my Department is currently working on amending the primary legislation and once this is completed I will introduce a new Credit Guarantee Scheme, which will include the following improvements: a wider range of financial products to be covered not just traditional credit products, an increase in the level of guarantee on individual loans from 75% to the maximum permissible under State Aid rules of 80%, an increase in the portfolio cap and the removal of the annual portfolio cap. The technical and legal amendments to the legislation are complex and my Department is working very closely with the Parliamentary Draftsman and the Office of the Attorney General to address these complexities and facilitate the introduction of the revised legislation at an early date.
354. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the value of drawdowns issued under the microfinance scheme on 31 December 2014 and on 30 June 2015; the value of approvals on the same dates; if he will provide, by county, a breakdown of each drawdown and approval; and if he will make a statement on the matter. [28564/15]
View answerMy Department publishes quarterly progress reports on the Department’s website www.enterprise.gov.ie in respect of the Microenterprise Loan Fund Scheme and the Credit Guarantee Scheme. The progress report detailing the analysis and performance by region up to the quarterly period ending 31st March 2015 is now available on the Department’s website. I intend to publish the report for the period 30th June 2015, in the near future.
355. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the value of drawdowns issued by each local enterprise office on 31 December 2014 and on 30 June 2015; the value of approvals on the same dates; if he will provide, by local employment office, a breakdown of each drawdown and approval; and if he will make a statement on the matter. [28565/15]
View answerVerified data in relation to the amount of grants approved and the amount of grants paid by individual LEOs in 2014 is set out in the following table. In relation to the “correlation” between grants approved and grants paid out it should be noted that LEO clients who are approved a grant have a 12 month period to drawdown the grant. Therefore, grants approved in one calendar year might not be paid out on until the following calendar year. In addition, it should also be noted that in any given 12 month period grants might be “de-committed” in situations where the project promoter, who had been approved for a grant, does not proceed with the drawdown of the grant due to reasons associated with the project itself.
Verified data for 2015 is not yet available. Enterprise Ireland is currently conducting a review across the 31 LEOs of commitments and expenditure to date in 2015 and potential demand to year end.
|
LEO |
Grants Approved 2014 |
Grants Paid 2014 |
|
Carlow |
€417,000.00 |
€340,671.00 |
|
Cavan |
€388,500.00 |
€291,113.00 |
|
Clare |
€376,800.00 |
€248,129.80 |
|
Cork City |
€435,660.07 |
€191,744.47 |
|
Cork North & West |
€418,070.00 |
€237,216.53 |
|
Cork South |
€730,499.00 |
€544,017.36 |
|
Donegal |
€325,503.04 |
€374,693.38 |
|
Dublin City |
€1,024,750.00 |
€686,859.13 |
|
Dun Laoghaire/Rathdown |
€552,514.00 |
€501,815.00 |
|
Dublin Fingal |
€769,450.00 |
€502,520.13 |
|
Dublin South |
€641,268.00 |
€331,265.14 |
|
Galway |
€384,110.00 |
€252,542.50 |
|
Kerry |
€306,026.00 |
€259,523.73 |
|
Kildare |
€285,325.00 |
€240,568.00 |
|
Kilkenny |
€467,708.00 |
€454,275.99 |
|
Laois |
€237,125.30 |
€185,410.00 |
|
Leitrim |
€235,785.00 |
€235,700.00 |
|
Limerick |
€806,385.00 |
€529,955.00 |
|
Longford |
€200,500.00 |
€241,048.00 |
|
Louth |
€307,472.00 |
€225,203.40 |
|
Mayo |
€454,506.00 |
€395,949.50 |
|
Meath |
€297,265.00 |
€143,098.00 |
|
Monaghan |
€435,268.66 |
€297,140.17 |
|
Offaly |
€340,313.00 |
€327,183.00 |
|
Roscommon |
€284,741.00 |
€384,281.35 |
|
Sligo |
€364,168.00 |
€389,040.00 |
|
Tipperary |
€934,885.00 |
€397,008.00 |
|
Waterford |
€614,645.50 |
€593,155.27 |
|
Westmeath |
€412,847.00 |
€300,332.46 |
|
Wexford |
€375,221.00 |
€347,587.82 |
|
Wicklow |
€534,258.00 |
€482,944.61 |
|
TOTAL |
€14,358,568.57 |
€10,931,991.74 |
356. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the number of inspections carried out by the workplace relations bodies, by county, in each month in 2014 and in 2015 to date; the number of prosecutions undertaken in each county during that time; and if he will make a statement on the matter. [28566/15]
View answer357. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the number of inspection staff attached to the workplace relations bodies in 2014 and to date in 2015; and if he will make a statement on the matter. [28567/15]
View answerI propose to take Questions Nos. 356 and 357 together.
The National Employment Rights Authority (NERA) is responsible for enforcing minimum statutory employment rights entitlements in the State and in undertaking its role, carries out a range of functions, including inspections of places of employment and employment related records.
These inspections arise:
- In response to complaints received of alleged non-compliance with relevant employment rights legislation;
- As part of NERA inspections focusing on compliance in sectors where there is an identifiable risk of non-compliance and,
- As routine inspections, which act as a control measure.
NERA aims to achieve voluntary compliance with employment law through the provision of education and awareness, inspection of employers’ employment records and enforcement where necessary. While every effort is made to secure compliance, some employers either refuse or fail to rectify the breaches identified and/or pay money due to their employees. These employers are referred for prosecution.
The number of inspectors serving at 31st December 2014 and at 9th July 2015 with the National Employment Rights Authority (NERA) is 57. This includes one inspector who was assigned to duties within the Workplace Relations Reform Programme Office.
Details in relation to the number of inspections and prosecutions undertaken in each county during 2014 and to end June 2015 are provided in the following tables (a monthly breakdown of the figures for inspections undertaken is not available):
Inspections
|
2015 (To 30 June) |
2014 |
|
|
CARLOW |
43 |
53 |
|
CAVAN |
48 |
137 |
|
CLARE |
71 |
217 |
|
CORK |
76 |
304 |
|
DONEGAL |
79 |
153 |
|
DUBLIN |
467 |
1,021 |
|
GALWAY |
211 |
420 |
|
KERRY |
28 |
59 |
|
KILDARE |
115 |
316 |
|
KILKENNY |
58 |
158 |
|
LAOIGHIS |
49 |
124 |
|
LEITRIM |
13 |
23 |
|
LIMERICK |
215 |
546 |
|
LONGFORD |
29 |
73 |
|
LOUTH |
91 |
121 |
|
MAYO |
53 |
146 |
|
MEATH |
54 |
120 |
|
MONAGHAN |
28 |
82 |
|
OFFALY |
48 |
57 |
|
ROSCOMMON |
39 |
85 |
|
SLIGO |
33 |
57 |
|
TIPPERARY |
138 |
224 |
|
WATERFORD |
76 |
115 |
|
WESTMEATH |
53 |
153 |
|
WEXFORD |
152 |
337 |
|
WICKLOW |
191 |
490 |
|
TOTALS |
2,458 |
5,591 |
Prosecutions
|
2015 (To 30 June) |
2014 |
|
|
CARLOW |
2 |
3 |
|
CAVAN |
3 |
2 |
|
CLARE |
3 |
1 |
|
CORK |
6 |
1 |
|
DONEGAL |
2 |
1 |
|
DUBLIN |
10 |
24 |
|
GALWAY |
1 |
3 |
|
KERRY |
0 |
0 |
|
KILDARE |
7 |
5 |
|
KILKENNY |
5 |
6 |
|
LAOIGHIS |
2 |
1 |
|
LEITRIM |
1 |
1 |
|
LIMERICK |
5 |
3 |
|
LONGFORD |
0 |
0 |
|
LOUTH |
3 |
1 |
|
MAYO |
0 |
1 |
|
MEATH |
1 |
1 |
|
MONAGHAN |
0 |
1 |
|
OFFALY |
8 |
4 |
|
ROSCOMMON |
0 |
1 |
|
SLIGO |
1 |
0 |
|
TIPPERARY |
4 |
6 |
|
WATERFORD |
3 |
1 |
|
WESTMEATH |
3 |
3 |
|
WEXFORD |
6 |
6 |
|
WICKLOW |
4 |
8 |
|
TOTAL |
80 |
84 |
358. Deputy Maureen O'Sullivan asked the Minister for Jobs, Enterprise and Innovation if he is satisfied that local enterprise offices offer a wide range of services and expertise to persons setting up online businesses; and his views that possible modernisation of the type of advice offered in these offices is needed, especially in the area of online businesses and start-ups. [28649/15]
View answerThe Local Enterprise Offices provide a wide range of services and support to all start-up enterprises including online start-ups. The LEOs are the first-stop-shop and sign-posting service assisting in delivering business growth and jobs for the micro-enterprise and small business sector. The LEOs provide services under four headings:
- Business Information and Advisory Services;
- Enterprise Support Services;
- Entrepreneurship Support Services;
- Local Enterprise Development Services.
Their main activities include:
- Combining direct grants with targeted mentoring and training as well as general business supports and assistance;
- Providing an enhanced guidance service on all other local and national supports such as those available from Revenue, Dept. of Social Protection, Microfinance Ireland, the Credit Review Office, Skillnets, Fáilte Ireland, NSAI, Education and Training Boards etc.;
- Direct referral of clients to Enterprise Ireland;
- Direct advice and guidance on Local Authority rates, procurement and regulations affecting business.
Direct grant aid (subject to eligibility criteria) is available in the form of Priming Grants, Business Expansion Grants and Feasibility Grants and other non-financial supports include Start Your own Business courses, Mentoring Programmes, Procurement and Tendering training, Financial Management training, Workshops on Communications and PR etc.
The LEOs also administer the Trading Online Voucher Scheme (TOVS). The scheme is funded by the Department of Communications, Energy & Natural Resources (DCENR) but rolled-out by the LEOs. This is an incentive scheme designed to encourage more small businesses to trade online. The scheme provides individual qualifying businesses with matched funding of up to €2,500 to be used to build or enhance the online trading component of their website. The scheme aims to encourage the development of online engagement by Irish small businesses through the adoption of digital services or skills and the target is to get 2,000 small businesses trading online by end 2015 thereby reaching new markets, growing their business, employing more people and exporting more. By 1st July 2015 1,000 vouchers had been provided.
The TOVS targets traditional small businesses (with less than 10 employees) that have been trading for at least 12 months and who are not yet trading online or doing so in a very limited way. In addition to awarding vouchers of up to €2,500 each to successful applicant businesses, LEOs provide the key ingredients of training, mentoring and networking support to enable small businesses to move online. An information session, organised by the LEO, forms an important part of the application process for a trading online voucher. It provides support to prospective applicants who have little knowledge of the internet or its potential to help them access new markets and create jobs. It assists business owners and managers in their application by encouraging them to think strategically about enhancing the digital capability of their business.
Anyone who wishes to seek further information or advice specific to their own business should contact their Local Enterprise Office via www.localenterprise.ie
In addition anyone can access an online search tool for SME business supports. There are over 80 different Government supports for Irish start-ups and small businesses. The “Supporting SMEs Online Tool” is a cross-governmental initiative to help Irish start-ups and small businesses navigate this range of Government business supports for which they could be eligible. It is available at: www.actionplanforjobs.ie .
359. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if he will outline any forthcoming legislation for enhancing the job security of those on short-hours and zero-hour contracts; and if he will make a statement on the matter. [28708/15]
View answerLast February, I commissioned the University of Limerick (UL) to carry out a study into the prevalence of zero-hour and low-hour contracts and their impact on Irish 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 contracts on employees.
- To enable me 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.
A wide range of stakeholders is being canvassed to contribute to the study and I expect the study to be completed shortly.
The Deputy will appreciate that I cannot anticipate the outcome of the study or the Government’s consideration of the study’s findings.
360. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his views on IDA Ireland actively working with companies involved in securing contracts for the outsourcing of jobs; and if he will make a statement on the matter. [28709/15]
View answerIDA Ireland is involved in the attraction of foreign direct investment to Ireland to service international markets and is not involved in the day to day operational or decision making functions of companies.
There is a growing tendency worldwide for companies to outsource certain business functions and companies in Ireland are part of this trend. Companies in all sectors utilise the practice to enhance productivity, utilise their resources better, focus on more core business areas and to be able to tap into new technologies without in-house expertise.
Such Business Process Outsourcing (BPO) is a fast growing economic sector and one which represents an exciting opportunity. It would be very short-sighted not to recognise that this sector should be pursued to assist job creation in Ireland and, indeed, thereby avoid outsourced jobs moving to other countries, given that modern technologies make this easily achievable in most cases.
We have several very successful companies in this sector located in Ireland, both foreign owned and Irish owned, pursuing contracts at home and abroad. Some of these companies are supported by either IDA Ireland or Enterprise Ireland. These companies have gained a significant portion of this market and they provide several thousand valuable jobs, often in regional centres where other employment opportunities are not readily available. Whenever such contracts are available it is obviously in our national interest that companies based here should pursue opportunities and compete for this work.
361. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if he will account for the reduced level in the Irish indigenous tradeable services export sector; and if he will make a statement on the matter. [28710/15]
View answerEnterprise Ireland data for its client companies shows that, in fact, in 2014 the value of exports in internationally traded services increased by €106 million, or 7%, to €1,687 million. This sector is a vital component in Ireland’s export performance. The Department of Jobs Enterprise and Innovation, through Enterprise Ireland, is active both in assisting Irish indigenous companies to find new markets and to increase their existing level of market share.
At the heart of our jobs plan is supporting more exports, and we have put in place a range of measures to deliver on this, including doubling the number of trade missions, placing extra staff for Enterprise Ireland and IDA Ireland in overseas markets and tax incentives for firms to place more staff overseas to help win sales.
The CSO Balance of Payments statistics do not separately identify Irish indigenous enterprises, but their data for services exports for Irish and non-Irish enterprises shows these to have increased steadily annually, except for a slight slow-down in 2008 and 2009. In 2014, for the first time ever, overall services exports from Ireland exceeded €100 bn.
362. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the latest discussions on the Transatlantic Trade and Investment Partnership; and if he will make a statement on the matter. [28711/15]
View answerThe 9th round of a new EU/US free trade deal negotiations took place in New York from 20 – 24 April 2015. The 10th round is being held this week (13 – 17 July) in Brussels. The objective during these rounds is to make as much progress as possible in all areas of the negotiations. During the last Round, work advanced in all three pillars of the negotiations: market access, regulatory cooperation and rules. On market access, the discussions were technical, aimed at better understanding the respective tariff offers and issues around government procurement. Regulatory issues took up a lot of the time, with a focus on both horizontal co-operation as well as the 9 specific sectors [cars, pharmaceuticals, medical devices, cosmetics, engineering, textiles, chemicals, pesticides, ICT]. The regulatory discussions are aimed at enhancing transatlantic trade by reinforcing regulatory co-operation in areas of shared interest and cutting out overlapping, unnecessary red-tape. The discussions in the area of rules included sustainable development, and energy and raw materials. Small and medium enterprises (SMEs) were also discussed in the last Round, specifically, how SMEs might benefit from a new free trade deal. A Report released by the EU Commission on 20 April, which identifies perceived obstacles to trade for SMEs, will inform the EU approach in this area. The definitive time-frame is difficult to predict but it is expected that there will be substantial progress in these negotiations in 2015. According to assessments made by the EU Commission, a comprehensive free trade deal could over time boost EU GDP by 0.5% bringing significant economic gains as a whole for the EU. This converts into 400,000 jobs across the EU. An independent study commissioned by my Department, carried out by Copenhagen Economics, estimates that these benefits in Ireland will be proportionally greater than in the EU as a whole. It suggests a boost to GDP of 1.1%, growth in Irish exports of almost 4%, increases in investment of 1.5%, and an increase in real wages of 1.5%. It estimates somewhere between 5,000 and 10,000 additional export related jobs.
It also suggests that Irish SMEs will be particular beneficiaries. Many of these are part of European supply chains where their exports to the UK, Germany or elsewhere to the EU, feed into Europe’s exports to the U.S. Ireland’s approach to negotiations will be informed by the analysis from Copenhagen Economics. We will seek to have opportunities created in the agreement where we have clear strengths, and we will seek defend our interests where we have sensitivities.
As an economy that lives and grows by the freedom to trade, we have first-hand experience of how trade liberalisation has continually shaped and reshaped our economy. The Copenhagen Economics study should also inform our policy responses as a result of TTIP. Some of these may arise from sector impacts that have been identified in the Copenhagen Economics study. We have used openness to trade in the past, and will continue to use it, as an instrument for structural reform, modernisation and development, creating new opportunities for innovation and stronger productivity growth with higher skilled jobs throughout the economy.
365. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the latest round of negotiations on the Transatlantic Trade and Investment Partnership; if, further to Parliamentary Question No.181 of 19 May 2015, he has had the opportunity to access the confidential reading rooms in the embassy of the United States of America in Dublin, in order to assess the content of the partnership; if so, if he has had the opportunity to read the US's input papers, draft partnership chapters, and consolidated texts, in this regard; and if he will make a statement on the matter. [28756/15]
View answerThe EU US consolidated negotiating texts have been made available through a confidential reading room in the US Embassy in Dublin. My officials have reviewed these texts on my behalf and fully briefed me on their contents.
366. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation if he has read the source research upon which much of the growth data for the Transatlantic Trade and Investment Partnership is based, namely Ecorys 2009 non-tariff measures in EU-US Trade and Investment and Economic Analysis (Rotterdam; Ecorys Netherlands BV), and CEPR 2013 reducing transatlantic barriers to trade and investment: an economic assessment (London: CEPR); and if he will make a statement on the matter. [28757/15]
View answerI am familiar with these studies and the economic models on which these studies are based. The Ecorys 2009 study addresses the technically and analytically complex task of calculating the impact of non-tariff barriers in transatlantic trade. Non-tariff barriers include licences, standards, administrative rules or other measures that make it difficult or impossible for firms to sell into new markets. The aim of the EU US free trade agreement is to break down as many non-tariff barriers as possible.
The Ecorys study presents a detailed qualitative and quantitative estimate of these NTBs using a multi-faceted methodology combining literature reviews, business surveys, econometric analyses, consultation with regulators businesses and sector experts. This was also used by the European Commission’s assessment of the likely benefits of a new free trade agreement between the EU and US which was conducted by the Centre for Economic Policy Research (CEPR).
The study commissioned by my Department on the impact of a new deal in Ireland was prepared by Copenhagen Economics who are independent and renowned external experts in this field. The study is based on the best available techniques of economic modelling and uses the same model and methodology as the CEPR study, to facilitate direct comparison.
The CEPR and Copenhagen Economics studies use a computable general equilibrium (CGE) model to simulate the impact of TTIP. These are standard tools for trade economists that create a computerised simulation of the world economy and model what happens when changes are introduced.
The CGE model is state-of-the-art. It needs to make assumptions about the economy in order to work but these are as reasonable as possible to make it as close to the real world as possible. For instance, it is able to account for the effects of economies of scale, different skill-levels of employees, imperfect competition between companies and many other features of the real world economy.
Like any model, the CGE model has limitations. The figures are an indication of the economic effects rather than precise predictions of exactly what will happen. But the model is not able to take all effects on productivity into account, for example, nor the positive effects on foreign investment by multinational firms, which is very significant for international trade in services in particular. This suggests that the estimated benefits of an Agreement are conservative.
Alternatives to the CGE approach may have their merits but none has yet proven to be sufficiently reliable for an ex-ante analysis of economy-wide effects of trade policy changes.
