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Wednesday, 11 Nov 2015

Written Answers Nos. 68-73

Regional Development Initiatives

Questions (68)

Brendan Griffin

Question:

68. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation if he will formulate an industrialisation plan for the Shannon Estuary; if he has reviewed the handling of the Shannon liquified natural gas project; his views on same; and if he will make a statement on the matter. [39634/15]

View answer

Written answers

Given the extensive nature of the Shannon Estuary, it adjoins three local authorities i.e. Clare County Council, Limerick City and County Council and Kerry County Council, who coordinate and control land-use planning and development on its landward sides. Shannon Foynes Port Company (SFPC) has statutory responsibility for all commercial maritime activities on the Shannon Estuary. A Strategic Integrated Framework Plan (SIFP) for the Shannon Estuary was developed by Clare County Council, Kerry County Council, Limerick City and County Councils, Shannon Development (now part of the Shannon Group ) and Shannon Foynes Port Company and published in November 2013. Implementation of the plan is overseen by a multi-agency Steering Group comprising of:

- Clare County Council (lead authority)

- Kerry County Council

- Limerick City & County Council

- Shannon Commercial Properties

- Shannon Foynes Port Company

- National Parks and Wildlife Service

- Marine Institute

- Environmental Protection Agency

- Office of Public Works

- National Monuments Service

- Limerick Clare Energy Agency

- Inland Fisheries Ireland

- EirGrid

- Shannon Airport

- Department of the Environment, Community and Local Government

- Shannon International River Basin District Project

The plan identified key strategic locations for industrial development which take into account the fact that the entire Estuary is also designated a Special Area of Conservation (SAC) – a wildlife conservation area, considered to be important on a European as well as Irish level – under the Habitats Directive. A large part of the estuary – around the Fergus Estuary – is also designated as a Special Protection Area (SPA) – as part of a network of sites across Europe that are protected under the Birds Directive.

The Shannon Estuary is home to a number of large industries and employers including ESB Moneypoint, Aughinish Alumina, Tarbert Power Station and Shannon Airport. As further key strategic locations become zoned for development, these sites will become available for appropriate development and will be marketed by the IDA for Marine related activities.

Shannon LNG currently has on option with Shannon Commercial Properties to buy a site in Ballylongford; Shannon Commercial Property is part of the Shannon Group which comes under the remit of the Minister for Transport, Tourist and Sport. Energy Policy comes under the remit of the Minister for Communications, Energy and Natural Resources.

The Regional Action Plan for Jobs initiative was launched in February of this year and aims to identify a range of actions which will help each region to achieve its economic potential. The Mid-West Action Plan for Jobs, which covers the Shannon region, was published on 19th October. Led by my Department, the Plan is the fourth of 8 regional jobs plans to be published as part of a new €250 million regional jobs strategy, and aims to deliver employment growth of 10-15% in the region by 2020.

Public Investment Projects

Questions (69)

Patrick O'Donovan

Question:

69. Deputy Patrick O'Donovan asked the Minister for Jobs, Enterprise and Innovation to set out in tabular form the value of capital investment projects and grants under way or approved for funding by his Department, by county; and if he will make a statement on the matter. [39659/15]

View answer

Written answers

IDA Ireland provides capital funding to client companies to support investments and job creation and runs a capital property programme to attract and facilitate investment throughout the country.

The total grant payments on a county basis for the period 2011-2014 are provided in the following table 1. Figures for 2015 will be available in 2016.

In the period 2011-2014, there were a total of 653 investments approved by IDA Ireland, not all of which will receive grant support. In 2014, 197 investments were approved equating to a 20% increase on 2013.

In its mid-year statement, IDA Ireland announced that Ireland continued to win a strong share of global investment for regional locations in the first half of 2015, despite intense international competition and economic uncertainty in Europe. In the first half of the year, IDA Ireland approved 110 investment projects, which will lead to the creation of 9,000 direct jobs this year and over future years as the companies gradually roll-out their investment plans. In the same period in 2014, there were 100 projects leading to 8,000 jobs. Among the companies publicly announcing investment plans in Ireland in the first half of 2015 were Apple, Alexion Pharmaceuticals, Johnson & Johnson Vision Care, Northern Trust, Facebook, Agora Publishing, Viagogo, Zimmer, ABEC Inc. and Zalando. Ireland is also investing in a €150 M Regional Property Programme over a five-year period to ensure that there is sufficient availability of utility-intensive strategic sites, quality business parks and advance building solutions to attract investment in to the regions.

So far this year, advance technology buildings have been completed in both Waterford and Athlone and the construction of buildings in Sligo, Castlebar and Tralee is at an advanced stage of procurement. Next year, IDA Ireland will continue this programme of advance builds with projects in Galway, Dundalk and Limerick. Investment in IDA Ireland’s portfolio of business and technology parks around the country is also underway.

Each year, Science Foundation Ireland allocates in the region of €150 million to €160 million of research funding to researchers across Ireland’s higher education system based on open, internationally peer-reviewed calls for proposals. This funding makes up part of the capital expenditure of my Department. SFI research awards are typically multi-annual awards (i.e. drawn down over a period of 2 to 5 years depending on the nature of the Call).

All SFI research funding is channelled to designated research performing organisations in Ireland – universities, colleges and other research institutes and this is reflected in the county by county breakdown provided below. The €911.9 million of capital funding presented below relates to all “live awards” on the SFI system (i.e. funding for projects that are underway but not yet completed). [Note: the data in the following table 2 include a number of awards for projects that were active earlier in 2015 which have now been completed.]

There are two capital projects funded through my Department by the North/South Interreg Programme:

County Donegal: Contribution to construction costs of Science Park in Letterkenny Institute of Technology €1.013 m; and

County Leitrim: Contribution to construction costs of Enterprise Centre in Carrick on Shannon €0.267 m.

Funding approvals to Enterprise Ireland client companies in 2015 are set out in the following table 3. Small grants include feasibility grants, consultancy grants, new market research grants, small training grants and some key manager grants. Payments to Enterprise Ireland client companies in 2015 are set out in the following table 4. Payments relate to approvals made in 2015 but also in previous years.

Table 1: IDA grant payments by county

County

2008

2009

2010

2011

2012

2013

2014

Carlow

€480,305

€176,000

€0

€0

€9,503,141

€5,093,152

€72,000

Cavan

€0

€143,000

€772,345

€129,778

€0

€0

€0

Clare

€471,682

€790,882

€762,100

€844,145

€0

€0

€3,172,202

Cork

€14,422,159

€16,585,908

€20,119,751

€15,092,610

€14,308,619

€12,380,130

€18,353,580

Donegal

€281,200

€1,253,200

€2,353,385

€354,746

€6,221,146

€3,071,490

€1,889,800

Dublin

€25,910,424

€29,101,843

€46,420,938

€43,043,936

€22,156,125

€24,803,491

€19,952,938

Galway

€12,218,919

€10,206,304

€9,448,677

€14,107,397

€12,252,609

€17,277,141

€8,422,227

Kerry

€42,949

€148,565

€216,450

€152,671

€2,145,004

€584,145

€16,800

Kildare

€10,857,083

€9,691,781

€4,981,549

€4,281,933

€1,767,566

€4,690,248

€728,457

Kilkenny

€0

€0

€0

€0

€0

€0

€0

Laois

€0

€39,000

€274,324

€21,182

€0

€0

€25,000

Leitrim

€0

€28,600

€566,500

€297,622

€347,378

€0

€0

Limerick

€2,871,880

€5,594,812

€5,104,862

€7,801,591

€11,209,462

€4,434,483

€15,374,032

Longford

€678,789

€143,000

€357,000

€124,852

€0

€0

€0

Louth

€1,245,000

€282,000

€347,207

€489,051

€2,809,400

€2,935,800

€3,672,307

Mayo

€816,847

€66,007

€4,693,343

€1,198,963

€1,254,475

€4,180,577

€6,376,253

Meath

€691,066

€136,501

€524,671

€386,670

€152,240

€1,540,920

€0

Monaghan

€0

€445,882

€260,000

€70,335

€0

€0

€58,022

Offaly

€0

€257,092

€211,870

€338,200

€8,000

€150,042

€324,662

Roscommon

€91,938

€77,568

€283,503

€361,000

€13,098

€110,000

€0

Sligo

€555,017

€553,787

€925,555

€852,618

€0

€796,831

€750,892

Tipperary

€2,727,287

€1,431,584

€17,755,098

€1,875,356

€0

€2,729,055

€3,654,309

Waterford

€4,739,590

€854,934

€1,414,402

€115,819

€1,722,808

€1,938,976

€1,867,329

Westmeath

€937,110

€1,872,257

€1,564,401

€1,443,232

€1,552,832

€272,624

€1,948,923

Wexford

€0

€190,078

€569,253

€3,373,513

€1,853,970

€934,569

€783,794

Wicklow

€232,593

€791,321

€513,000

€0

€48,328

€27,623

€43,738

Table 2: SFI grants by county.

County

Funding

Carlow

€5,538,224.85

Cork

€169,896,632.95

Dublin

€466,400,289.33

Galway

€147,170,482.26

Kildare

€14,631,508.50

Limerick

€105,692,228.82

Louth

€830,655.20

Mayo

€16,000.00

Offaly

€71,000.00

Sligo

€584,474.00

Waterford

€535,331.90

Westmeath

€607,058.00

Grand Total

€911,973,885.81

Table 3: Approvals to Enterprise Ireland Clients in 2015

County

Capital Grants

Employment Grants

Equity Prefs/Ordinary Shares

R&D Grants

Small Grants

Training Grants

Grand Total

Carlow

1,220,680

220,000

400,000

470,866

2,311,546

Cavan

325,120

784,640

375,000

380,215

294,846

93,230

2,253,051

Clare

653,000

130,000

50,000

1,297,567

626,869

2,757,436

Cork

264,854

1,036,299

2,900,051

1,945,564

1,719,719

366,290

8,232,777

Donegal

148,573

300,000

339,839

278,011

1,066,423

Dublin

829,123

3,669,337

10,774,187

5,891,961

5,039,210

402,243

26,606,061

Galway

854,850

648,500

1,216,914

1,185,352

710,970

4,616,586

Kerry

350,000

176,910

220,725

747,635

Kildare

47,000

125,265

1,000,000

3,955,990

481,556

5,609,811

Kilkenny

100,000

598,596

70,977

769,573

Laois

42,194

151,250

193,444

Leitrim

46,800

46,800

Limerick

596,103

617,118

1,130,000

499,977

667,969

3,511,167

Longford

249,805

450,000

126,800

826,605

Louth

558,675

934,620

400,000

924,432

502,974

3,320,701

Mayo

250,000

380,280

630,000

65,090

437,439

131,587

1,894,396

Meath

74,863

943,626

896,000

94,369

421,769

98,700

2,529,327

Monaghan

227,100

445,293

289,583

90,347

1,052,323

Offaly

303,156

306,542

609,698

Overseas

350,000

350,000

Roscommon

186,000

50,000

79,200

315,200

Sligo

280,800

50,000

234,224

565,024

Tipperary North

175,209

175,209

Tipperary South

390,000

344,800

250,000

246,262

277,575

1,508,637

Waterford

539,000

826,000

498,551

158,445

2,021,996

Westmeath

506,627

700,000

995,035

422,189

2,623,851

Wexford

150,080

250,007

73,486

322,183

795,756

Wicklow

368,600

90,000

100,000

873,471

754,187

2,186,258

Grand Total

8,071,909

10,876,585

23,548,159

20,530,154

15,288,087

1,182,397

79,497,291

Source: Cognos Report ran 10.11.2015 showing approvals from 1/1/2015 to 09/11/2015 to Enterprise Ireland clients.

Table 4: Payments to Enterprise Ireland Clients in 2015

County

Capital Grants

Employment Grants

Equity Pref. Shares/ordinary shares

New Market Research Grants

R&D Grants

Small grants

Training Grants

Competitive Feasibility Fund

Grand Total

Carlow

104,069

550,000

12,500

270,959

155,960

20,947

1,114,436

Cavan

600,120

99,335

150,000

645,163

176,320

1,670,937

Clare

125,000

383,958

50,000

493,395

212,733

71,424

1,336,509

Cork

-

1,054,977

1,835,051

102,441

1,816,230

611,136

89,644

67,069

5,576,547

Donegal

372,949

500,000

55,384

81,925

1,010,257

Dublin

47,970

1,515,185

12,640,137

767,832

5,147,397

2,918,073

540,833

128,190

23,705,617

Galway

226,782

702,000

113,393

626,898

453,942

13,928

45,006

2,181,948

Kerry

176,193

450,000

149,340

156,734

39,195

971,462

Kildare

13,617

271,488

525,000

46,115

247,677

133,400

1,237,298

Kilkenny

3,467,521

52,159

325,000

77,141

136,626

5,190

4,063,638

Laois

34,400

25,000

489,349

137,305

16,765

702,819

Leitrim

288,991

35,925

324,916

Limerick

48,427

258,282

425,000

30,158

523,684

289,766

40,443

12,279

1,628,038

Longford

1,728,478

142,634

475,077

59,998

2,406,187

Louth

338,771

275,000

947,937

288,003

155,381

10,325

2,015,416

Mayo

130,446

280,000

367,302

252,417

1,030,165

Meath

25,000

644,416

571,000

369,936

259,646

24,478

1,894,476

Monaghan

144,985

378,264

108,749

212,035

844,033

Offaly

25,000

85,320

99,748

210,069

Overseas

175,000

175,000

Roscommon

83,899

158,635

50,000

54,543

18,000

365,076

Sligo

73,853

275,000

75,762

23,050

447,665

Tipperary North

39,256

16,633

294,790

39,887

297,335

687,901

Tipperary South

900,000

220,400

150,000

16,394

171,980

137,951

1,596,725

Waterford

221,238

1,083,145

706,000

72,323

76,069

2,158,775

Westmeath

557,960

200,000

36,029

228,646

158,706

12,617

31,800

1,225,759

Wexford

1,033,394

185,842

200,007

129,513

98,117

1,646,873

Wicklow

232,437

110,339

245,000

55,199

570,204

283,626

12,546

1,509,351

Grand Total

8,900,049

8,296,501

21,329,195

1,134,184

14,331,303

7,604,829

1,695,758

446,073

63,737,893

Source: Cognos Payments Report ran 10/11/2015 of Enterprise Ireland clients paid between 1/1/2015 and 09/11/2015.

Note does not include infrastructural clients, Employment Subsidy Scheme Recipients or Community Enterprise Centre Recipients.

Employment Rights

Questions (70)

Thomas Pringle

Question:

70. Deputy Thomas Pringle asked the Minister for Jobs, Enterprise and Innovation when the consultation process on zero-hour contracts will commence; how it will be carried out; and if he will make a statement on the matter. [39666/15]

View answer

Written answers

I am pleased to inform the Deputy that the consultation process has commenced. My Department has published on its website a consultation document to assist interested parties in making a written submission in response to the University of Limerick’s study. The consultation process runs for a period of eight weeks from Monday 9th November 2015 to Monday 4th January 2016. In addition to seeking written submissions from all interested parties, I intend meeting with employer representative bodies and worker representative bodies and non-Governmental organisations on 24th November 2015 to hear their initial views first hand.

I know the Deputy has a particular interest in the study from the perspective of seasonal workers, and I would welcome any submissions from seasonal workers or their representatives in response to the study’s findings and recommendations.

Defence Forces Reserve

Questions (71)

Seán Ó Fearghaíl

Question:

71. Deputy Seán Ó Fearghaíl asked the Minister for Jobs, Enterprise and Innovation to outline his plans to bring forward legislation to facilitate greater participation by the national workforce in the Reserve Defence Force; and if he will make a statement on the matter. [39686/15]

View answer

Written answers

Encouraging and facilitating suitable people to join the Reserve Defence Forces is a matter for my colleague the Minister for Defence and I have no plans to introduce legislation in this area.

National Minimum Wage

Questions (72)

Terence Flanagan

Question:

72. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation to outline the position regarding the increased minimum wage (details supplied); and if he will make a statement on the matter. [39690/15]

View answer

Written answers

At all times the Government's policy choices are considered in the context of the impact on jobs. This is at the heart of the Action Plan for Jobs process and has been a central feature of successive Budgets and The Pathways to Work programme. This level of policy focus has helped create an environment where 126,000 extra people are at work, all regions are increasing employment and our economy is the fastest growing in the EU. In the context of the above enterprise and jobs performance it should be noted that one of the first decisions this Government made was to reverse the €1 cut in the national minimum wage implemented by the previous Government. In the context of the minimum wage, the report from the Low Pay Commission which supported the Commission’s recommendations regarding the appropriate rate for the National Minimum Wage (NMW) stated that research indicates that moderate increases in the NMW are unlikely to have a significantly adverse effect on employment.

The Commission recommended that anomalies in relation to PRSI which could adversely affect employer costs should be addressed, and I believe that the adjustments to PRSI which have been provided for by my colleague, Minister Noonan, in the recent Budget, will assist employers in reducing costs, thus ensuring a continuing positive climate for job creation.

Budget Documentation available at the following link www.budget.gov.ie/Budgets/2016/Documents/Budget%20Book%202016%20-%20full%20document.pdf gives the example (Example 6 page B.22) of an individual earning the minimum wage of €8.65 for a 39 hour week in 2015. The minimum wage increase will mean an additional €1,014 per annum for this person, taking their gross income to €18,556 in 2016. Their income tax liability will increase from €208 per annum to €411 per annum due to their additional earnings. They will have a PRSI liability of €160. USC liability reduces from €374 to €317. The net gain for this person is €708 per annum or 4.2%.

Due to the budget changes introduced the employer will pay PRSI at 8.5% and not move to the previously higher rate of 10.75% when paying the additional €1,014 per annum. This reduces the additional PRSI paid by an employer to €86.19 per annum.

PRSI changes (New PRSI relief of €12 per week for employees and increase in employer threshold).

Application where someone earns the new NMW of €9.15 per hour (39 hour week = €18,556 per annum).

The maximum PRSI relief is €12 a week, applied on wages of €352 a week. So instead of paying €14.08 a week PRSI the person will pay €2.08 a week.

The PRSI relief is gradually reduced as wages rise to €424 a week - for every €12 rise in weekly wage the relief is reduced by €2.

Weekly wage

Hourly rate

Old PRSI

Relief

New PRSI

Old Annual PRSI

New Annual PRSI

352.00

9.03

14.08

12.00

2.08

732.16

108.16

356.85

9.15

14.27

11.19

3.08

742.04

160.16

NMW

364.00

9.33

14.56

10.00

4.56

757.12

237.12

376.00

9.64

15.04

8.00

7.04

782.08

366.08

388.00

9.95

15.52

6.00

9.52

807.04

495.04

400.00

10.26

16.00

4.00

12.00

832.00

624.00

412.00

10.56

16.48

2.00

14.48

856.96

752.96

424.00

10.87

16.96

-

16.96

881.92

881.92

-

Annual PRSI Cost to Employee on new NMW (working 39 hours p.w.) without the proposed change would be €742.04 (€18,556 * 4%), giving a saving of €581.88 even with the new payment of €160.

Employer impact - increase in threshold for change of rate from 8.5% to 10.75% from €356.01 to €376.01

-

Weekly NMW

PRSI rate

Weekly cost

No of weeks

Annual Cost

Increase of rate to €376 before 10.75% applies

356.85

8.50%

30.33

52

1,577.28

Cost to employer prior to Budget change

356.85

10.75%

38.36

52

1,994.79

Difference

8.03

52

417.51

Annual PRSI Cost to Employer without the proposed change would be €1,994.79, giving a saving of €417.51.1

1.(There is an additional saving to Employer also for employees earning up to €9.64 per hour/€376 p.w., who previously would have invoked the 10.75% rate - annual saving to the employer of €439.92 for an employee earning €376 per week).

Farm Safety

Questions (73)

Pat Breen

Question:

73. Deputy Pat Breen asked the Minister for Agriculture, Food and the Marine to set out his plans to extend the registration date beyond 26 November 2015 for farmers to register as professional users of pesticides, given that a number of farmers may not have completed an approved pesticide course by the deadline due to illness or the unavailability of space on a locally-organised course; and if he will make a statement on the matter. [39637/15]

View answer

Written answers

The Sustainable Use of Pesticides Directive establishes a framework for European Community action to achieve the sustainable use of pesticides by setting minimum rules to reduce the risks to human health and the environment that are associated with pesticide use. It also promotes the use of integrated pest management. The Directive is designed to further enhance the high level of protection achieved through the entire regulatory system for pesticides.

Implementation of the Sustainable Use of Pesticides Directive relies heavily on the training of the various people involved at all levels of the industry, including Professional Users i.e. any individual who applies professional use Plant Protection Products.

Anybody who applies professional use plant protection products, regardless of quantity or method of application, is deemed to be a professional user and, as such, is required to be appropriately trained and registered with DAFT.

After 26th November 2015, there is an obligation on an individual to be appropriately trained as a professional user and registered with DAFM before they apply/spray professional plant protection products, in order to be compliant with the provisions of the Sustainable Use Directive (SUD).

In practice, only those farmers who intend to apply plant protection products immediately after the 26th November date will have to complete their training and registration by that date. The vast majority of farmers who will not be applying plant protection products until the spring/summer of 2016 will have some further time to be trained and registered but they must complete this requirement before they apply/spray professional plant protection products.

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