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Tuesday, 26 Apr 2016

Written Answers Nos. 134-148

Retail Sector

Questions (134)

Brendan Griffin

Question:

134. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation the supports available for small retailers who expand their business to include a hot food counter and seating area; and if he will make a statement on the matter. [8289/16]

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Written answers

The Local Enterprise Offices (LEOs) are the ‘first-stop-shop’ State support service for micro and small businesses in each local area. The LEOs provide advice and direction, covering all government supports and requirements, to anyone who wishes to start or expand a business. They can also provide funding for projects that meet certain criteria, generally with regard to export potential, and other non-financial supports such as training and mentoring.

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. The Fund available to MFI has a significant entrepreneurship focus and is open to anyone with a viable business proposal. 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.

Businesses can also access the ‘Supporting SMEs’ online search tool that was launched last year. The tool is a cross-governmental initiative in order to help Irish start-ups and small businesses navigate the range of Government business supports. It is available at www.actionplanforjobs.ie.

By answering eight questions that take under a minute to complete in the Online Tool a small business will be able to:

- Find out which of the over 80 Government business supports from 27 different Government Departments, Agencies and Initiatives are available to them;

- Obtain information on the range of Government supports for accessing credit; and

- Identify their nearest Local Enterprise Office where they can discuss the outcomes of the guide further.

Low Pay

Questions (135)

Finian McGrath

Question:

135. Deputy Finian McGrath asked the Minister for Jobs, Enterprise and Innovation his views on correspondence (details supplied) concerning small and medium enterprises and the minimum wage; and if he will make a statement on the matter. [8303/16]

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Written answers

The Low Pay Commission was established last year through the National Minimum Wage (Low Pay Commission) Act 2015 and was one of the key commitments in the Statement of Government Priorities agreed in July 2014.

The Low Pay Commission’s main function is to, on an annual basis, examine and make recommendations on the national minimum wage, with a view to securing that the national minimum wage, where adjusted, is adjusted incrementally over time having had regard to changes in earnings, productivity, overall competitiveness and the likely impact any adjustment will have on employment and unemployment levels. The national minimum hourly rate of pay increased to €9.15 per hour on January 1st this year following Government acceptance of the Low Pay Commission recommendation of July 2015 to increase the rate from €8.65 per hour.

In Budget 2016, when the increase in the National Minimum Wage to €9.15 per hour was announced, a number of related measures were introduced in order to ensure that the benefit of this increase was not lost to taxation for the employee and that the effect of the increase in the National Minimum Wage to €9.25 per hour on employer’s liability to PRSI was mitigated.

The employer’s PRSI threshold, where an employer’s liability to PRSI on all of the employee’s income increases from 8.5% to 10.75%, was increased by €20 from €356 to €376 in order to keep this threshold above the weekly wage for a full-time worker on the increased minimum wage, thereby mitigating the cost to employers of that increase. 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.

The Low Pay Commission is an independent body and it seeks submissions from interested parties in relation to the National Minimum Wage. A public consultation process requesting submissions on the National Minimum Wage recently closed on the 11th of March 2016. However, I will forward the points made in relation to the NMW to the Commission Secretariat.

Jobs Protection

Questions (136, 142)

James Lawless

Question:

136. Deputy James Lawless asked the Minister for Jobs, Enterprise and Innovation if he will engage immediately with a company (details supplied) to assess the impact, if any, on north Kildare of the announcement regarding redundancies across its global organisation; if he will immediately engage with the management of the company to address any threat to local jobs; and if he will make a statement on the matter. [8331/16]

View answer

Marc MacSharry

Question:

142. Deputy Marc MacSharry asked the Minister for Jobs, Enterprise and Innovation if he will request assurances from Intel that there will be no significant job losses here; and if he will make a statement on the matter. [8508/16]

View answer

Written answers

I propose to take Questions Nos. 136 and 142 together.

Since this company was attracted to locate Ireland in 1989, it has made a very positive contribution to the Irish economy. Not only does it provide several thousand high quality jobs but its presence here has helped in the development of the domestic ICT sector and has assisted our ability to attract other leading electronics multinationals. Intel has also undertaken valuable high-level research and development work in Ireland and generated significant downstream economic activity.

As was publicly announced earlier this month, the company are now engaging in a strategic review of its worldwide activities. This will reportedly involve restructuring of its operations and a sizeable reduction in the size of its global workforce by mid-2017. I understand that the company has not yet decided where the job losses will arise so it is not possible to say at this stage how this decision will impact on their Irish operations.

I meet regularly with, and my office are in ongoing contact with, the company in question but I have asked IDA Ireland to maintain its ongoing contact with Intel with regards to their restructuring plans. We will also continue, at the same time, to work to attract further investment from the company into Ireland.

Proposed Legislation

Questions (137)

David Cullinane

Question:

137. Deputy David Cullinane asked the Minister for Jobs, Enterprise and Innovation his plans to introduce blacklisting legislation; and if he will make a statement on the matter. [8378/16]

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Written answers

I am not aware that there is a practice of trade union representative blacklisting by employers in Ireland. I would consider blacklisting of workers for whatever reason as an unacceptable practice – particularly if it arose in relation to workers exercising their rights to take part in trade union activities.

The Deputy will be aware that there are already legislative protections in place where workers are victimised by an employer for trade union activity.

Section 6(1) of the Unfair Dismissals Act 1977 (as amended) provides that, in general, a dismissal shall be deemed to be unfair unless an employer can prove that there were substantial grounds justifying the dismissal. In addition, Section 6 also deems certain dismissal situations to be unfair as well as outlining certain criteria on which dismissals may be adjudicated as fair. One type of dismissal situation deemed to be unfair is referred to in Section 6(2)(a) of the Act which indicates that a dismissal is unfair where it can be shown that the dismissal resulted wholly or mainly from an employee’s trade union membership or activities, either where those activities take place outside working hours or at those times during working hours when permitted by the employer. While, in general, an employee must have been in the same employment for at least a year in order to bring a claim for unfair dismissal under the Unfair Dismissals Acts, one of the exceptions to the one-year service requirement includes dismissals falling under section 6(2)(a) of the Act.

In addition, the Industrial Relations Act 1990 (Code of Practice on Victimisation) (Declaration) Order 2004 provides that where there is a dispute in an employment where collective bargaining fails to take place and where negotiating arrangements are not in place, no person, be they union representative, individual employee or manager, should be victimised or suffer disadvantage as a consequence of their legitimate actions or affiliation arising from that dispute. A procedure for addressing complaints of victimisation in such cases is set out the Industrial Relations (Miscellaneous Provisions) Act 2004. A complaint for breach of this legislation may be presented to the Workplace Relations Commission who can enforce rights breached. That Code of Practice was amended in October last year to include as a form of victimisation the use by employers of inducements (financial or otherwise) designed specifically to have an employee forego collective representation by a trade union.

The Industrial Relations (Amendment) Act 2015 also provides for enhanced protection for individuals who are victimised as a result of invoking the provisions of the 2001/2004 Industrial Relations Acts through a trade union or for acting as a witness or comparator for those provisions.

If there is evidence that this is a widespread practice – and to date I do not have such evidence on the matter – I will be happy to consider the matter further with both sides of industry.

If the Deputy has any information regarding blacklisting of workers in Ireland, he might bring it either to my attention or to the Data Protection Commissioner.

Company Law

Questions (138)

David Cullinane

Question:

138. Deputy David Cullinane asked the Minister for Jobs, Enterprise and Innovation the steps he is taking to prevent companies engaging in tactical insolvencies; and if he will make a statement on the matter. [8379/16]

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Written answers

In January 2016, Minister Ged Nash and I announced a twin track examination of protections in law for employees and unsecured creditors, particularly to ensure limited liability or restructuring are not used to avoid a company’s obligations to its employees and unsecured creditors. We appointed two experts to examine the legal protections for workers, particularly where operations and assets may be moved to separate legal entities as part of a restructuring. The examination specifically looked at situations where valuable assets in a company are separated from the operating entity, and how the position of employees can be better protected in such situations. The experts have submitted their report and I intend to submit it to Government shortly with a view to its publication. Publication of the report will allow interested parties to consider the detailed proposals therein. Their feedback will help inform a response to the report.

As part of the twin track approach, I also requested that the Company Law Review Group examine legislation with a view to recommending ways company law could be amended to better safeguard employees and creditors. That work has commenced and any recommendation made by the Group will be given full consideration, when received.

Trade Union Recognition

Questions (139)

David Cullinane

Question:

139. Deputy David Cullinane asked the Minister for Jobs, Enterprise and Innovation his plans to introduce legislation to bring about mandatory trade union recognition; and if he will make a statement on the matter. [8380/16]

View answer

Written answers

While Article 40 of the Irish Constitution guarantees the right of citizens to form associations and unions, it has been established in a number of legal cases that the constitutional guarantee of the freedom of association does not guarantee workers the right to have their union recognised for the purpose of collective bargaining.

It has been the consistent policy of successive Irish Governments to promote collective bargaining through the laws of this country and through the development of an institutional framework supportive of a voluntary system of industrial relations that is premised upon freedom of contract and freedom of association. There is an extensive range of statutory provisions designed to back up the voluntary bargaining process. The freedom of association and the right to organise and bargain collectively are also guaranteed in a number of international instruments which the State has ratified and which it is, therefore, bound to uphold under international law.

The previous Programme for Government contains a Commitment to ensure that Irish law on employees’ right to engage in collective bargaining is consistent with recent judgements of the European Court of Human Rights. Giving effect to this Commitment involved in-depth consultation with stakeholders, including employer and worker representatives, and a review of the experience of the operation of the existing legislative framework as put in place under the Industrial Relations Acts of 2001 and 2004 and the consequences of the litigation that has arisen in the course of the operation of these Acts.

A decision by the Government to legislate for an improved framework in this area resulted in the Industrial Relations (Amendment) Act 2015 which came into effect on 1st August 2015.

The legislation provides a clear and balanced mechanism by which the fairness of the employment conditions of workers in their totality can be assessed in employments where collective bargaining does not take place and brings clarity and certainty for employers in terms of managing their workplaces in this respect. It also provides strong protections for workers who invoke the provisions of the 2001/2004 Industrial Relations Acts or who have acted as a witness or a comparator for the purposes of those Acts.

The legislation ensures the retention of Ireland’s voluntary system of industrial relations, but it also means that where an employer chooses not to engage in collective bargaining either with a trade union or an internal ‘excepted body’, and where the number of employees on whose behalf the matter is being pursued is not insignificant, the 2001 Act has been remediated to ensure that an effective framework exists that allows a trade union to have the remuneration and terms and conditions of its members in that employment assessed against relevant comparators and determined by the Labour Court, if necessary.

It ensures that where an employer is engaged in collective bargaining with an internal ‘excepted body’, as opposed to a trade union, that body must satisfy the Labour Court as to its independence of the employer.

Specifically, the legislation includes:

- a definition of what constitutes “collective bargaining”,

- provisions to help the Labour Court identify if internal bargaining bodies are genuinely independent of their employer and not under their domination or control,

- bringing clarity to the requirements to be met by a Trade Union advancing a claim under the Act,

- policies and principles for the Labour Court to follow when assessing those workers’ terms and conditions, including the sustainability of the employers business in the long-term,

- new provisions to ensure cases dealt with are ones where the numbers of workers are not insignificant,

- provisions to ensure remuneration, terms and conditions are looked at in their totality,

- provisions to ensure that there is some management of the permitted frequency of reassessment of the same issues, and

- enhanced protection by way of interim relief in the case of dismissal for workers who may feel that they are being victimised for exercising their rights under the proposed legislation.

In addition an explicit prohibition on the use by employers of inducements (financial or otherwise) designed specifically to have staff forego collective representation by a trade union was introduced with the adoption of a statutory Code of Practice on Victimisation on the 28th October 2015.

Consumer Protection

Questions (140)

Martin Heydon

Question:

140. Deputy Martin Heydon asked the Minister for Jobs, Enterprise and Innovation the rights available to a consumer who does not use a gift voucher before the stated expiry date; his plans to introduce legislation to ban the policy implemented in this regard; and if he will make a statement on the matter. [8458/16]

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Written answers

Gift vouchers supplied to consumers are subject to the provisions of general consumer protection legislation, in particular the provisions of the Consumer Protection Act 2007 on unfair, misleading and aggressive commercial practices and of the European Communities (Unfair Terms in Consumer Contracts) Regulations 1995 (S.I. No. 27 of 1995). Gift vouchers that are not financial services products are covered also by the provisions of the European Union (Consumer Information, Cancellation and Other Rights) Regulations 2013 (S.I. No. 484 of 2013). Gift cards that come within the definition of “electronic money” in the European Communities (Electronic Money) Regulations 2011 are subject to the provisions of these Regulations unless the card can be used only to acquire goods or services in the premises of the card issuer or within a limited network of service providers or for a limited range of goods and services. The issuer of a gift card which comes within the definition of electronic money must, at the request of the electronic money holder, redeem the monetary value of the electronic money at par value at any time. Redemption may be subject to a fee in specified circumstances and any such fee must be proportionate and commensurate with the costs actually incurred by the issuer of the electronic money.

My Department published the draft Scheme of a comprehensive Consumer Rights Bill for public consultation on 25 May 2015. In addition to Parts dealing with the consolidation and updating of the law on the supply of goods, digital content and services and on unfair contract terms, the draft Scheme contains a number of provisions for the regulation of gift vouchers, including a proposed ban on expiry dates in contracts for the supply of gift vouchers. The responses to the gift card provisions raised a substantial number of issues, including concerns expressed by businesses about the impact of a complete prohibition on expiry dates and the need for regulatory clarity and certainty in respect of the regulation of gift cards that come within the scope of the European Communities (Electronic Money) Regulations 2011. While it is important to ensure that the provisions of consumer protection legislation are balanced and do not impose unreasonable or disproportionate burdens on business, it remains my intention to provide for a ban on expiry dates for gift cards that do not come within the scope of the Electronic Money Regulations.

Economic Competitiveness

Questions (141)

Noel Rock

Question:

141. Deputy Noel Rock asked the Minister for Jobs, Enterprise and Innovation his views on the National Competitiveness Council’s report Costs of Doing Business in Ireland 2016, which states Ireland is a high-cost location in which to do business; and if he will make a statement on the matter. [8491/16]

View answer

Written answers

The Costs of Doing Business Report published by the National Competitiveness on April 21st provides an assessment of Ireland's cost competitiveness performance vis-à-vis a range of competitor countries. The report concentrates on the costs that are largely domestically determined such as labour, property, transport, energy, water, waste, communications, credit/finance and business service. It finds that Ireland’s cost base has improved across a range of metrics over the last five years. This has made Irish firms more competitive internationally and made Ireland a more attractive location for firms to base their operations in. However, despite these improvements, internationally comparable data suggest that Ireland remains a relatively high cost location for a range of key business inputs and there is strong upward cost pressure evident in property and in the labour market. The Council warns that Ireland is particularly vulnerable to external shocks beyond our control – external risks at the moment include in particular the forthcoming UK Referendum on membership of the EU, oil prices and exchange rate movements. To pre-empt such threats we must create a competitive edge.

The report is a timely reminder of the risks of complacency regarding our economic performance. The improved competitiveness of Ireland’s exporting sector has been one of Ireland’s greatest strengths in recent years and has been central to economic growth and job creation. Cost competitiveness has been critical to the success of Irish based exporters, allowing them to maximise the opportunities arising from increases in global demand.

I share the Council’s view that to protect the gains achieved to date, to further embed and sustain the recovery, and to ultimately spread the benefits of economic growth to all, we must continue to enhance all aspects of our competitiveness.

The Council’s report has been noted by Government and enhancing Ireland’s international competitiveness performance will remain a key economic cornerstone of economic policy making.

The Council and my Department and its agencies are continually engaged with relevant stakeholders on the particular policy needs required to support cost competitiveness. The stakeholders include other Government Departments, regulatory bodies and public and private bodies. In this regard, there is a role for both the public and private sectors alike to proactively manage their cost base and drive efficiency, thus creating a virtuous circle between the costs of living, wage expectations and cost competitiveness. Measures that ensure open and competitive markets are also essential.

The policy implications of the Costs of Doing Business in Ireland 2016 report’s analysis, and associated structural reforms required to address Ireland’s cost base, will be included in the Council’s annual Competitiveness Challenge report which will be published later this year.

Question No. 142 answered with Question No. 136.

Wind Energy Generation

Questions (143)

Lisa Chambers

Question:

143. Deputy Lisa Chambers asked the Minister for Agriculture, Food and the Marine the name and location, by county, of community benefit schemes in place for wind farms owned or operated by semi-State companies under his remit; and if he will make a statement on the matter. [8054/16]

View answer

Written answers

Coillte Teoranta was established as a private commercial company under the Forestry Act, 1988 and day-to-day operational matters, such as the operation of Community Benefit Schemes associated with wind farm development, are the responsibility of the company. Coillte has, however, advised that it is currently involved in partnership arrangements to relation to the development of the following windfarms for which Community Benefit Schemes are in place.

Wind Farm

Townland

County

Sliabh Bawn Wind Farm

Sliabh Bawn Mountain

Roscommon

Raheenleagh Wind Farm

Raheenleagh Forest

Wicklow/Wexford

Castlepook Wind Farm

Castlepook Forest

Cork

Galway Wind Park

Cloosh Valley

Galway

Cullenagh Wind Farm

Cullenagh Forest

Laois

I am advised that Wind Farm Community Benefit is normally activated once the wind turbine is operational. However, while none of the above have been commissioned to date, I understand that Coillte has begun to activate the Community Benefit during construction stage of two of its projects, namely Sliabh Bawn Wind Farm and Raheenleagh Wind Farm.

GLAS Applications

Questions (144)

Charlie McConalogue

Question:

144. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the current status in relation to a green low-carbon agri-environment scheme application for a person (details supplied) in County Donegal; and if he will make a statement on the matter. [8002/16]

View answer

Written answers

There are a number of applications, including that of the person named, remaining which have not passed all of the Department’s pre-payment validation checks for the 2015 part-year payment.  The Department is continuing to investigate these issues including the correction of any IT or data issues with a view to all these remaining cases meeting the payment validation checks so that they will be paid the full amount of their 2015 part-year payment in May including the 2015 GLAS balancing payment.

Single Payment Scheme Administration

Questions (145)

Pat Breen

Question:

145. Deputy Pat Breen asked the Minister for Agriculture, Food and the Marine when a person (details supplied) in County Clare will receive forms for the single payment scheme; and if he will make a statement on the matter. [8004/16]

View answer

Written answers

The Department issues pre-printed application packs under the Basic Payment Scheme to all herdowners who submitted an application in the previous year. As we have no record of receiving an application in 2015 for the person named, no pre-printed application pack issued. A blank pack has recently issued to the person named.

Young Farmers Scheme

Questions (146)

Charlie McConalogue

Question:

146. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the position regarding an application made for force majeure by a person (details supplied) under the young farmers scheme; the reason no update has been communicated directly to the person on this; and if he will make a statement on the matter. [8032/16]

View answer

Written answers

The person named submitted an online Force Majeure application to my Department. My Department has no record of having received documentation in support of this application or a late 2015 National Reserve application. An Official from my Department will contact the person named directly to establish the circumstances of his appeal with a view to having the matter resolved.

Single Payment Scheme Payments

Questions (147)

Timmy Dooley

Question:

147. Deputy Timmy Dooley asked the Minister for Agriculture, Food and the Marine when a person (details supplied) in County Clare will receive payment under the single payment scheme; and if he will make a statement on the matter. [8056/16]

View answer

Written answers

The person named submitted a Transfer of Entitlements Allocation Right and Reference Value application to my Department seeking the transfer of allocation rights and values by Inheritance of Holding as transferee. This application has been fully processed and payment under the Basic Payment Scheme will issue shortly.

Basic Payment Scheme Payments

Questions (148)

James Browne

Question:

148. Deputy James Browne asked the Minister for Agriculture, Food and the Marine the reason for the difference in payments to a person (details supplied) between 2014 and 2015 under the basic payment scheme. [8070/16]

View answer

Written answers

The person named submitted a Review of Entitlements application and a Private Contract Clause application under the 2015 Basic Payment Scheme. Under the 2005 Single Payment Scheme the person named received a transfer of entitlements by lease of 51.13 entitlements with a total value of €4,890 which had an expiry date of 31 December 2018. In 2005 and 2006 the person named received €8,241.90 under the Dairy Premium scheme. This was topped up on his leased in entitlements bringing the total value of entitlements to €13,132.85 in 2014. My Department is currently working on a process to establish a set of entitlements under the Basic Payment Scheme for the person named based on the number and value of the leased in entitlements and to include the value of the Dairy Premium payment. Department officials have been in contact with the person named to bring the case to a successful conclusion.

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