Thursday, 26 May 2016

Written Answers Nos. 251-260

Road Projects Status

Questions (251)

Fergus O'Dowd

Question:

251. Deputy Fergus O'Dowd asked the Minister for Transport, Tourism and Sport the status of the spine link road between Laytown and Bettystown in County Meath, which was included in the roads capital plan for 2016, given that Part 8 of the planning Acts has been completed by Meath County Council; to provide funding for the acquisition of land and the construction of this road which will be of huge benefit to over 2,000 children who attend schools on the adjoining education campus; and if he will make a statement on the matter. [12487/16]

Written answers

Minister for Transport, Tourism and Sport

As the Deputy is aware, the improvement and maintenance of regional and local roads in Co. Meath is the statutory responsibility of Meath County Council, in accordance with the provisions of Section 13 of the Roads Act 1993.  Works on those roads are funded from the Council's own resources supplemented by State road grants.

The Capital Plan 2016-2021 provides that a number of schemes targeting bottlenecks in the road network will be progressed subject to necessary approvals.  One of the projects included in the Capital Plan, subject to planning approval, is the R150 Laytown to Bettystown Spine road.  I understand that Meath County Council will now be liaising with my officials in relation to the up to date position in relation to the project, including the timescale for implementation.

Transatlantic Trade and Investment Partnership

Questions (252)

Bernard Durkan

Question:

252. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if the Transatlantic Trade and Investment Partnership is a focus for discussion between the European Union, the United States of America and other countries; if assurances have been given to the effect that agriculture and industry here will not suffer as a result; and if she will make a statement on the matter. [12377/16]

Written answers

Minister for Jobs, Enterprise and Innovation

The 13th round of Transatlantic Trade and Investment Partnership negotiations between the EU the US and took place from 25th – 29th April, 2016 in New York. Progress was made on the two texts on regulatory cooperation and good regulatory practices. Substantial progress was achieved on the SME chapter and on the provisions of Customs and Trade Facilitation which would simplify customs procedures and reduces fees and charges to the benefit of SMEs in particular. There was also progress in consolidating textual proposals on Sustainable Development, which includes labour and the environment, and on Investment. Extensive discussions also took place on public procurement. The parties also discussed regulatory cooperation in the nine industry sectors under consideration and the EU presented its first proposal for the pharmaceuticals sector. The parties also discussed mutual recognition agreements for professional services and significant progress was made on the consolidation of the text.

Both the EU and US are aiming to make substantial progress in 2016. A number of intersessional meetings between the parties will take place before the next full negotiation round, which will be scheduled before the summer break, most likely in July.

The proposed EU-US agreement is one of a number of new style trade agreements the EU is negotiating that not only covers tariffs, services and investment but also includes regulatory coherence and cooperation. An EU-US agreement would be the world’s largest bilateral trade and investment deal, and a successful conclusion is expected to benefit Ireland more than any other EU Member State. As Ireland continues to rely on external demand and international markets for sustainable growth and market access, regulatory cooperation and reduced tariffs are essential to grow our exports.

Owing to our position as a small open economy, Ireland’s enterprises are particularly well placed to take up opportunities to trade more easily with the US. An independent study commissioned by this 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. The findings are backed up in an interim independent report contracted by the EU Commission, carried out by Ecorys Consultancy

(http://www.trade-sia.com/ttip/draft-interim-technical-report-published-online/) and published on 13th May 2016, which estimates that an EU-US free trade agreement would boost Irish GDP by 1.4 per cent.

The opportunities of an agreement will be especially valuable for SMEs, given that trade barriers tend to disproportionately burden smaller firms, which have fewer resources to overcome them than larger firms. In fact, the Copenhagen Economics study reported that an EU-US free trade agreement would have a more significant positive impact on SMEs than on other types of business. The final agreement will have an entire chapter exclusively dedicated to SMEs aimed at addressing those specific constraints that might otherwise limit SMEs taking full advantage of the improved EU-US trade agreement market access.

In relation to agriculture, Ireland, like other Member States, has some sensitivity in the agriculture sector. But we also have offensive interests for example in access to the US dairy market. As part of the Copenhagen Economics Study preparation, meetings were held with a range of stakeholders from the agri-sector. This study finds that EU-US trade agreement will see a likely increase to Irish agriculture exports by 2% to 3% or €230-€270 million relative to 2013. The study also underlined the sensitivity in the beef sector.

Ireland strongly supports these negotiations and is working to ensure that our interests, both offensive and defensive, are fully reflected in the texts of the negotiations. I look forward to continuing to work to ensure we achieve a comprehensive and balanced trade agreement that delivers real economic potential for our country and the EU without lessening of our high standards particularly regarding health, consumer rights and the environment. I look forward to continuing to ensure Ireland’s economic interests are both promoted and defended to the fullest extent possible.

Local Enterprise Offices

Questions (253)

Bernard Durkan

Question:

253. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if a person (details supplied) can avail of start-up financial assistance directly or through a local enterprise office to facilitate a small enterprise in the services sector; and if she will make a statement on the matter. [12350/16]

Written answers

Minister for Jobs, Enterprise and Innovation

The Local Enterprise Offices (LEOs) are the ‘first-stop-shop’ for providing advice and guidance, financial assistance and other supports to those wishing to start or grow their own business.

In the first instance, the LEOs provide a ‘signposting’ service in relation to all relevant state supports available through agencies such as Revenue, the Department of Social Protection, Education and Training Boards, Credit Review Office, Microfinance Ireland. The LEOs can also offer advice and guidance in areas such as Local Authority rates, Public Procurement and other regulations affecting business.

The LEOs can offer direct grant aid to microenterprises (up to 10 employees) in the manufacturing and internationally traded services sector which, over time, have the potential to develop into strong export entities. Subject to certain eligibility criteria, the LEOs can provide financial assistance within three main categories, i.e., Feasibility Grants (investigating the potential of a business idea) Priming Grants (to part-fund a start-up) and Business Development grants for existing businesses that want to expand. (It should be noted that the LEOs do not provide direct grant-aid to areas such as retail, personal services, local professional services, construction/local building services, as it may give rise to the displacement of existing businesses).

For anyone interested in starting or growing a business, the LEOs may be able to offer ‘soft’ support in the form of training (e.g. a Start Your Own Business course) or provide a mentor to work with the business proposer.

Anyone with a viable business proposal can also use the LEO to make an application to MicroFinance Ireland, which offers support in the form of loans of up to €25,000 to start-ups with viable business propositions that do not meet the conventional risk criteria applied by the banks.

Finally, I should draw your attention to the ‘Supporting SMEs’ Online Tool (www.localenterprise.ie/smeonlinetool) which is a cross-governmental initiative to help start-ups navigate the range of Government business supports for which they could be eligible. By answering the eight questions in the Online Tool, a small business will, in one location, 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;

- identify their nearest Local Enterprise Office where they can discuss the outcomes of the guide further;

- download all these filtered results into a document for their further use.

Details of services offered by LEO Kildare can be accessed via phone: [phone] or email: [e-mail]

Work Permits Applications

Questions (254)

Bernard Durkan

Question:

254. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if a person (details supplied) qualifies for a work permit; and if she will make a statement on the matter. [12360/16]

Written answers

Minister for Jobs, Enterprise and Innovation

My Department has no record of an application for an Employment Permit from the person named by the Deputy and consequently I cannot comment on the matter. From the details supplied, it would appear that the application number cited by the Deputy relates to the Department of Justice and Equality.

Jobs Protection

Questions (255, 257)

Niall Collins

Question:

255. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation the action she has taken to protect jobs at a company (details supplied) since the appointment of an examiner; and if she will make a statement on the matter. [12420/16]

Niall Collins

Question:

257. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation the actions she has taken to protect jobs at a company (details supplied); and if she will make a statement on the matter. [12422/16]

Written answers

Minister for Jobs, Enterprise and Innovation

I propose to take Questions Nos. 255 and 257 together.

In the case of these companies, my Department, through IDA Ireland, has engaged intensively with both local management and with the parent companies abroad to pursue new investors to take over the plants in question.

Unfortunately, with regard to the company in Co. Tipperary, these efforts have not been successful to date and a liquidator was appointed last week. I have therefore arranged that the Inter Agency Group, which was established following the Ranbaxy closure in Cashel, will now work to assist the Suir Pharma employees regarding entitlements and training opportunities and also to help pursue securing new employment opportunities. This group is chaired by the CEO of the County Council and also includes representatives from IDA Ireland, Enterprise Ireland, the Department of Social Protection, the local Education and Training Board, Tipperary Local Enterprise Office and Limerick Institute of Technology.

In the case of the company in County Clare, where the parent company made a decision on divesting that operation in November 2015, IDA Ireland has also worked closely with the company to introduce potential buyers. These efforts have, to date, proved unsuccessful, despite intensive negotiations having taken place with a prospective investor. Minister of State Breen proposes to visit the plant very shortly and will meet the company management and employees to discuss the current situation.

It should be appreciated that in all such cases, and despite our best efforts, the ultimate decision in these cases rests with the respective companies concerned.

I want to emphasise that IDA Ireland will continue to market both facilities to its existing client companies and also to potential new investors. It is encouraging that several companies have already visited both plants and we hope that further interest will be generated. Enterprise Ireland will also assess whether either facility could be of interest to any of that Agency’s client companies.

Industrial Relations

Questions (256)

Niall Collins

Question:

256. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation the criteria under which she would avail of section 38 of the Industrial Relations Act 1990 to invoke the services of the Labour Court or of other persons in order to resolve an industrial dispute for an issue of significant public interest that would necessitate such an action; and if she will make a statement on the matter. [12421/16]

Written answers

Minister for Jobs, Enterprise and Innovation

Ireland’s system of industrial relations is, essentially, voluntary in nature and responsibility for the resolution of industrial disputes between employers and workers, whether in redundancy or other collective disputes, rests with the employer, the workers and their representatives. The State provides the industrial relations dispute settlement mechanisms to support parties in their efforts to resolve their differences.

Even what often appears to be the most intractable of disputes is capable of resolution where both sides engage constructively and in good faith in this voluntary process. The principle of good faith implies that both sides in a dispute make every effort to reach an agreement and endeavour, through genuine and constructive negotiations, to resolve their differences.

As the individual circumstances of each trade dispute will be different, each case must be judged on its merits and the powers of the Minister under Section 38 approached accordingly.

Question No. 257 answered with Question No. 255.

Company Law

Questions (258)

Niall Collins

Question:

258. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation if and when she will extend the expiry date as provided under section 279(2) of the Companies Act 2014 to enable qualifying companies use the United States of America generally accepted accounting principles financial reporting standard in Ireland, given the significant number of foreign direct investment jobs provided and continued Irish competitiveness in attracting future jobs in this sector; and if she will make a statement on the matter. [12423/16]

Written answers

Minister for Jobs, Enterprise and Innovation

Section 279 of the Companies Act 2014 provides that US Generally Accepted Accounting Principles may be used by companies for a particular transitional period, subject to compliance with Irish company law and to the company meeting certain criteria. That transitional period runs to 31 December 2020.

A number of factors will need to be considered before a decision is made on any possible extension beyond 2020. Accordingly, my Department intends to carry out a public consultation on this matter in the second half of this year. If it is considered that the existing exemption period should be extended, it will be necessary to introduce this by way of primary legislation, which ultimately will be a matter for the Oireachtas.

Competition and Consumer Protection Commission

Questions (259)

Niall Collins

Question:

259. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation if her Department has examined empowering the Competition and Consumer Protection Commission to issue civil fines for anti-competitive practices; and if she will make a statement on the matter. [12424/16]

Written answers

Minister for Jobs, Enterprise and Innovation

The current legal position is that civil fines are not provided for in Irish law for anti-competitive practices. The Attorney General has previously advised my Department that providing for them would pose legal difficulties having regard to Article 38.1 of the Constitution, even at the level of a class A fine. In that context any legislation to introduce civil fines that would lower the burden of proof from beyond reasonable doubt to the balance of probability would pose constitutional difficulties having regard to the protection afforded in Article 38.1 of the Constitution.

However, I am aware that the Law Reform Commission published an Issues Paper entitled "Regulatory Enforcement and Corporate Offences" on 27 January 2016. The Issues Paper invites views on the supervisory and enforcement powers of the State’s main financial and economic regulators (including the Competition and Consumer Protection Commission) and the issue of administrative and civil fines has been raised. I look forward to the outcome of this consultation process. Any recommendations or proposals that may emanate from this exercise in due course will be carefully considered by my Department.

Competition and Consumer Protection Commission

Questions (260)

Niall Collins

Question:

260. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation if the search powers of the Competition and Consumer Protection Commission are sufficient to investigate anti-competitive practices; if restrictions exist; and if she will make a statement on the matter. [12425/16]

Written answers

Minister for Jobs, Enterprise and Innovation

The search powers of the Competition and Consumer Protection Commission (CCPC) for the purposes of investigating alleged breaches of competition law are set out in section 37 of the Competition and Consumer Protection Act 2014 (the “2014 Act”). Section 37 of the 2014 Act gives the CCPC significant powers of entry, search and seizure in the context of competition law investigations. For the purpose of obtaining any information which may be required in relation to a matter under investigation, these powers include the power (i) to enter a place (if necessary by reasonable force) and to search that place, (ii) to seize and retain books, documents or records found at the place, and (iii) to inspect and take copies of or extracts from any such books, documents or records. In order to exercise these powers, the CCPC must first obtain a search warrant from the District Court.

The Deputy will be aware that the exercise of the CCPC’s search and seizure powers under section 37 of the 2014 Act was challenged in a recent High Court action taken by CRH plc against the CCPC. CRH’s High Court action related to an unannounced search carried out by the CCPC at the premises of CRH’s subsidiary, Irish Cement Limited, on 14 May 2015 as part of an ongoing investigation by the CCPC into alleged anti-competitive practices in the bagged cement sector.

I am aware that on the 19th May 2016, the Competition and Consumer Protection Commission (“the CCPC”) lodged an appeal against the High Court judgment delivered on 5 April 2016 prohibiting the CCPC from accessing or reviewing certain electronic documents seized by the CCPC during the search conducted in May 2015. As the matter is sub judice, it would not be appropriate for me to comment further on this matter.