Tuesday, 19 Jul 2016

Written Answers Nos. 891-907

Competition and Consumer Protection Commission

Questions (891)

Alan Kelly

Question:

891. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation if she is concerned with the lack of substantive investigations into cartel activity here by the Competition and Consumer Protection Commission, CCPC, since its creation, in particular the lack of criminal convictions, despite the increased resources and sanctions provided for by the previous Government; her views that the CCPC is failing as an enforcement agency, in view of the evidence that both price fixing and bid rigging is prevalent in many sectors of the economy. [22656/16]

Written answers

Minister for Jobs, Enterprise and Innovation

As the Deputy is aware, the Competition and Consumer Protection Commission (CCPC) is the statutory independent body responsible for the enforcement of domestic and EU competition law in the State. Section 9 of the Competition and Consumer Protection Act 2014 provides that the Commission is independent in the performance of its functions, including carrying out investigations of alleged breaches of the law. As investigations and enforcement matters generally are part of the day-to-day operational work of the Authority, I, as Minister for Jobs, Enterprise and Innovation, have no direct function in the matter.

If the Deputy is aware of any alleged anti-competitive behaviour that is being practised (be it price-fixing or bid-rigging), I would urge him to forward details to the CCPC for their attention.

It is important to note that the CCPC investigates other infringements of competition law, not just hard-core cartel activities, which also may restrict competition. The CCPC has investigated and successfully challenged (both directly and through the courts) a number of agreements on this basis.

The CCPC was formally established in October 2014. Following its establishment, and in view of the significant number of vacancies that existed at that point in time, the CCPC took the opportunity to review its organisational structure to ensure it would be structured effectively and to ensure it would utilise the extensive professional and technical expertise that existed amongst its staff.

The CCPC is now well advanced into the process of hiring 25 additional staff to make up the numbers that have been depleted over the years and to resource new functions.

Since the most recent recruitment process began the CCPC has filled 12 positions over the last two months. The skill sets recruited include competition and enforcement experts. Many of those recruited have commenced employment or are due to start shortly. The rest of the vacancies are at various stages of the recruitment process, including backfilling for vacancies created where internal staff have been successful in the external competitions and for new vacancies that have arisen as a result of departures (including resignations and retirements). The CCPC expects to have the remaining vacancies filled over the coming months. Some of these vacancies are in the competition enforcement divisions.

I understand from the CCPC that, in addition to a bid rigging cartel case that is currently before the courts, in 2016 the CCPC has already conducted 21 searches of companies suspected of anti-competitive practices. During 2015 the CCPC received 74 allegations of competition law breaches (both civil and criminal) and opened two large scale investigations in respect of anti-competitive agreements, one of which involved searches at five premises in the bagged cement sector. This is in addition to the opening of a cartel investigation into allegations of a criminal breach of competition law in the aviation sector and the closing of two additional investigations. Since 2013, the CCPC has sent one file to the DPP in respect of suspected infringements of Section 4 of the Competition Act 2002. The trial is set to take place in April 2017.

I am confident that the CCPC will continue to carry out its statutory functions in the future.

EU Regulations

Questions (892)

Alan Kelly

Question:

892. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation if she is aware of the cost to consumers of geo-blocking by companies providing online services and goods; if she supports the EU Commission proposals to prevent geo-blocking; and if she will make a statement on the matter. [22671/16]

Written answers

Minister for Jobs, Enterprise and Innovation

Geo-blocking refers to practises used by online sellers that result in the denial of access to websites from other States. It also includes situations where access to a website is granted, but the customer from abroad is prevented from accessing the product or service in question or being asked to pay with a debit or credit card from a certain country.

Some forms of geo-blocking are justified. However, many are not justified. The proposed EU Regulation on geo-blocking aims to provide for more opportunities to customers: it addresses the problem of customers not being able to buy products and services from traders located in a different Member State, or being discriminated in accessing the best prices or sales conditions compared to nationals or residents.

While the impact assessment accompanying the legislative proposal from the EU Commission does not put a figure on the likely scale of consumer detriment incurred by European consumers on foot of unjustified geo-blocking measures used by traders, survey data collected in 2014 shows that 19% of cross border online shoppers did experience restrictions at one stage or another when attempting to make a purchase. Similarly, 2015 Eurostat figures show that 10% of cross border online shoppers were restricted in making a purchase based on their nationality or place of residence in the previous 12 months.

More generally, the Digital Single Market (DSM) Strategy for Europe published by the EU Commission in 2015 states that the economic potential of the DSM for consumers and businesses is currently under-exploited. The EU Commission estimated that consumer welfare gains from greater e-commerce activity in goods in an integrated DSM could reach over €200 billion per annum with two-thirds of these gains coming from increased online choice.

With regards to the EU Commission proposal on addressing unjustified geo-blocking, the Government fully supports any measure that enhances consumer welfare, without any disproportionate additional burden on business, in order to facilitate the achievement of a fully-functioning integrated Digital Single Market.

Consumer Protection

Questions (893)

Alan Kelly

Question:

893. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation the estimated total cost of cartel activity to the economy, given that the EU Commission has estimated that cartel activity can cost up to 3% of GDP; and in view of the harm being caused to the economy, if she is concerned by the lack of prosecutions being taken under section 4 of the Competition Act 2002. [22675/16]

Written answers

Minister for Jobs, Enterprise and Innovation

By definition, it is difficult to estimate the prevalence of cartels as a lot of effort is expended by their participants in keeping them hidden. All efforts to estimate the harm of hidden cartels suffers from the problem that it is impossible to know the number of cartels in existence. Academic research tells us that the cost overcharge that results from hidden cartels is in the range of 20 to 30% and they can endure for 8 years on average before detection.

At the same time, anti-competitive agreements that are not hidden in the same manner also cause harm and the Competition and Consumer Protection Commission (CCPC) has often taken action in relation to these. These can be no less damaging to consumers and indeed to the State as it attempts to obtain value for money in the provision of services provided by different professional groups to consumers, etc.

To assist in exposing cartels, the CCPC has a Cartel Immunity Programme that it runs in conjunction with the DPP.

I understand from the CCPC that, in addition to a bid rigging cartel case that is currently before the courts, in 2016 the CCPC has already conducted 21 searches of companies suspected of anti-competitive practices. During 2015 the CCPC received 74 allegations of competition law breaches (both civil and criminal) and opened two large scale investigations in respect of anti-competitive agreements, one of which involved searches at five premises in the bagged cement sector. This is in addition to the opening of a cartel investigation into allegations of a criminal breach of competition law in the aviation sector and the closing of two additional investigations. Since 2013, the CCPC has sent one file to the DPP in respect of suspected infringements of Section 4 of the Competition Act 2002. The trial is set to take place in April 2017. Ultimately, it is a matter for the Courts to determine if criminal sanctions are warranted in any specific case.

As the Deputy is aware, the CCPC is the statutory independent body responsible for the enforcement of domestic and EU competition law in the State. Section 9 of the Competition and Consumer Protection Act 2014 provides that the CCPC is independent in the performance of its functions, including carrying out investigations of alleged breaches of the law. As investigations and enforcement matters generally are part of the day-to-day operational work of the Authority, I, as Minister for Jobs, Enterprise and Innovation, have no direct function in the matter.

Competition and Consumer Protection Commission

Questions (894)

Alan Kelly

Question:

894. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation the number of files forwarded to the DPP by the Competition and Consumer Protection Commission and previously the Competition Authority in 2013, 2014 and 2015 in respect of suspected infringements of section 4 of the Competition Act 2002. [22676/16]

Written answers

Minister for Jobs, Enterprise and Innovation

As the Deputy is aware, the Competition and Consumer Protection Commission (CCPC) is the statutory independent body responsible for the enforcement of domestic and EU competition law in the State. Section 9 of the Competition and Consumer Protection Act 2014 provides that the Commission is independent in the performance of its functions, including carrying out investigations of alleged breaches of the law. As investigations and enforcement matters generally are part of the day-to-day operational work of the Authority, I, as Minister for Jobs, Enterprise and Innovation, have no direct function in the matter.

I understand from the CCPC that since 2013, the CCPC has sent one file to the DPP in respect of suspected infringements of Section 4 of the Competition Act 2002. This was sent in 2014 and the trial is set to take place in April 2017.

EU Directives

Questions (895)

Alan Kelly

Question:

895. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation the total number of EU directives relating to her Department that currently require transposition into Irish law; the number of such directives for which the deadline for transposition has passed; the communications both formal and informal that she has received from the European Commission regarding the failure to transpose said directives; and if she will make a statement on the matter. [22713/16]

Written answers

Minister for Jobs, Enterprise and Innovation

My Department is proactive in ensuring that good performance on the transposition of Directives is consistently maintained. Within my Department, transposition is monitored through a customised intranet database which is used as a central management and information tool to track the implementation of Directives on an ongoing basis. This complements the central tracking and monitoring of transpositions carried out by the Department of the Taoiseach. Updates on transposition of Directives are also provided regularly to the Management Board of my Department.

A total of fifteen Directives require to be transposed by my Department up to the end of 2017. Nine Directives are currently overdue. The European Commission has initiated infringement proceedings in respect of seven of the overdue Directives. My Department is making every effort to transpose the overdue Directives and has advised the Commission of the position in respect of the ongoing progress being made in finalising the transposition of these Directives.

In addition, the Department is dealing with the transposition of five codified Directives that have no deadline for transposition.

A full list of the Directives to be transposed up to 2017 is set out below and is also available on the Department’s website at www.djei.ie.

DIRECTIVES as at 18 July 2016

Directives to be transposed up to 2017 (Fifteen)
Description of Directive	Deadline for Transposition/ Unit Responsible	Current Position
1. Directive 2013/34/EU on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings	20/07/2015 Unit: Company Law Unit	Drafting of the Companies (Accounting) Bill, which transposes Directive 2013/34/EU, is at an advanced stage.
2. Directive 2014/30/EU on the harmonisation of the laws of Members States relating to Electromagnetic Compatibility (Recast)	19/04/2016 Unit: Enterprise Development Unit	It is aimed to have the Directive transposed in Q3 2016.
3. Directive 2014/31/EU on the harmonisation of the laws of Members States relating to the making available on the market of non-automatic weighing instruments	19/04/2016 Unit: NSAI Liaison & Standards Unit	Draft Regulations with the OPC. It is aimed to have the Directive transposed in Q3 2016.
4. Directive 2014/32/EU relating to the harmonisation of the laws of the Member States in relation to the making available on the market of measuring instruments (Recast)	19/04/2016 Unit: NSAI Liaison & Standards Unit	Draft Regulations with the OPC. It is aimed to have the Directive transposed in Q3 2016.
5. Commission Delegated Directive 2015/13/EU of 31 October 2014 amending Annex III to Directive 2014/32/EU of the European Parliament and of the Council, as regards the flowrate range of water meters	19/04/2016 Unit: NSAI Liaison & Standards Unit	Draft Regulations with the OPC. It is aimed to have the Directive transposed in Q3 2016.
6. Directive 2014/33/EU of the European Parliament and of the Council of 26 February 2014 on the harmonisation of the laws of the Member States relating to lifts and safety components for lifts (recast)	19/04/2016 Unit: Safety, Health & Chemicals Policy Unit	It is aimed to have transposition achieved by September 2016.
7. Directive 2014/34/EU of the European Parliament and of the Council of 26 February 2014 on the harmonisation of the laws of the Member States relating to equipment and protective systems intended for use in potentially explosive atmospheres (Recast)	19/04/2016 Unit: Safety, Health and Chemicals Policy Unit	It is aimed to have transposition achieved by September 2016.
8. Directive 2014/67/EU on the posting of workers	18/06/2016 Unit: Employment Rights Unit	It is aimed to transpose by the end July.
9. Directive 2014/68/EU on the harmonisation of the laws of the Member States relation to the making available on the market of pressure equipment (Recast)	18/07/2016 Unit: Safety, Health and Chemicals Policy Unit	It is aimed to have transposition achieved by September 2016.
10. Directive 2016/970/EU of 27 May 2016 amending Directive 2009/43/EC of the European Parliament and of the Council as regards the list of defence-related products	21/09/2016 Unit: Licensing Unit	It is aimed to transpose by the deadline set for transposition.
11. Directive 2014/95/EU on disclosure of non-financial and diversity information by certain large undertakings and groups	06/12/2016 Unit: Company Law Unit	Drafting of S.I. has commenced.
12. Directive 2014/104/EU on certain rules governing actions for damages under national law for infringements of the competition law provisions of the Member States and of the European Union	27/12/2016 Unit: Competition and Consumer Policy Unit	Drafting of S.I. has commenced.
13. Directive: 2015/2115  on the purpose of adopting specific limit values for chemicals used in toys, Appendix C to Annex II to Directive 2009/48/EC of the European Parliament and of the Council on the safety of toys, as regards formamide	24/05/2017 Unit: Competition and Consumer Policy Unit	Drafting of S.I. has not yet commenced.
14. Directive: 2015/2116 for the purpose of adopting specific limit values for chemicals used in toys, Appendix C to Annex II to Directive 2009/48/EC of the European Parliament and of the Council on the safety of toys, as regards benzisothiazolinone	24/05/2017 Unit: Competition and Consumer Policy Unit	Drafting of S.I. has not yet commenced.
15. Directive: 2015/2117 for the purpose of adopting specific limit values for chemicals in toys, Appendix C to Annex II to Directive 2009/48/EC of the European Parliament and of the Council on the safety of toys, as regards chloromethylisothiazolinone and methylisothiazolinone, both individually and in a ratio of 3:1	24/05/2017 Unit: Competition and Consumer Policy Unit	Drafting of S.I. has not yet commenced.

CODIFIED DIRECTIVES as at 18 July 2016

Codified Directives1 (Five) Currently Awaiting Transposition
Description of Directive	Unit Responsible	Current position
1. Directive 2009/104/EC of the European Parliament and of the Council concerning the minimum safety and health requirements for the use of work equipment by workers at work (second individual Directive within the meaning of Article 16(1) of Directive 89/391/EEC)	Safety, Health and Chemicals Policy Unit	Draft with OPC.
2. Directive 2009/142/EC of the European Parliament and Council relating to appliances burning gaseous fuels	Competition & Consumer Unit	Draft with OPC.
3. Directive 2004/9/EC of the European Parliament and of the Council of 11 February 2004 on the inspection and verification of good laboratory practice (GLP) (Codified)	Safety, Health & Chemical Policy Unit	The Department is considering the draft final text of the Regulations.
4.  Directive 2004/10/EC of the European Parliament and of the Council of 11 February 2004 on the harmonisation of laws, regulations and administrative provisions relating to the application of the principles of good laboratory practice and the verification of their applications tests on chemical substances (Codified)	Safety, Health & Chemical Policy Unit	The Department is considering the draft final text of the Regulations.
5.  Directive 2004/37/EC on the protection of workers from the risks related to exposure to carcinogens or mutagens at work (Codified)	Safety, Health & Chemical Policy Unit	The Department is in consultation with the OPC on the possible transposition of this codified Directive.

1 Codification brings together previous legislation in a single new Act. There are no timelines required for the transposition of codified Directives.

EU Directives

Questions (896)

Alan Kelly

Question:

896. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation the reason the EU accounting directive (2013/34/EU) has still not been transposed into Irish law despite a deadline of 20 July 2015; when she intends to transpose the directive; and if the European Commission has raised the issue of non-transposition with Ireland. [22714/16]

Written answers

Minister for Jobs, Enterprise and Innovation

The Office of the Parliamentary Counsel has recently completed drafting of the Companies (Accounting) Bill 2016. I intend to seek Government approval to publish and initiate the Bill in the Houses of the Oireachtas shortly.

The European Commission issued a Reasoned Opinion on 16 June 2016. This Opinion is on account of Ireland's failure to notify measures for the transposal of the Accounting Directive (2013/34/EU) into national law.

Low Pay Commission Report

Questions (897, 898)

Alan Kelly

Question:

897. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation her plans to accept the recommendations of the Low Pay Commission on the national minimum wage that is due to report on the week of 19 July 2016; and if she will make a statement on the matter. [22715/16]

Alan Kelly

Question:

898. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation when the Low Pay Commission will report back on its examination of the prevalence of low pay among young persons and women in the workforce; if she expects new legislation or regulations to arise on foot of these investigations; and if she will make a statement on the matter. [22716/16]

Written answers

Minister of State at the Department of Jobs, Enterprise and Innovation

I propose to take Questions Nos. 897 and 898 together.

The Low Pay Commission was established last year through the National Minimum Wage (Low Pay Commission) Act 2015. Its principal function is, once each year, to examine the national minimum hourly rate of pay and to make a recommendation to the Minister respecting the rate, ensuring that all decisions are evidence based, fair and sustainable, and do not create significant adverse consequences for employment or competitiveness.

The Commission submitted its first report in July 2015. Its recommendation to increase the minimum wage from €8.65 to €9.15 per hour was accepted by Government and the increase came into effect on 1 January last.

The Commission’s second report on the national minimum wage is due to be submitted today. Any recommendation made by the Commission will be considered by Government in the context of Budget 2017.

As well as making recommendations regarding the national minimum hourly rate of pay, by 19 July, the Low Pay Commission, which is independent in the performance of its functions, has also been requested to examine the appropriateness of the sub-minima rates as currently provided for in the National Minimum Wage Acts with regard in particular to their impact on youth unemployment rates and participation in education. This report was due by the end of February 2016, but an extension to the end of October 2016 was sought and has been granted to the Commission.

The Commission has also been requested to examine the issues surrounding the preponderance of women on the NMW and report its views in relation to the underlying causes. This report is also due by end October 2016.

UK Referendum on EU Membership

Questions (899)

Alan Kelly

Question:

899. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation the contingency plans her Department has put in place to address the impact on Ireland of Brexit; if she has met her counterpart in the British Government and the Northern Irish and Scottish administrations to discuss this matter; and if she will make a statement on the matter. [22717/16]

Written answers

Minister of State at the Department of Jobs, Enterprise and Innovation

As outlined previously, my own Department has been, and will continue to be, fully engaged in the risk analysis and contingency planning work that is being undertaken at cross-Government level, led by the Department of the Taoiseach.

Since the announcement of the UK referendum result on 24 June, as part of my contingency plans, I have established a Coordination Group within my Department consisting of relevant enterprise, single market, and trade officials, together with the Chief Executive Officers of IDA and Enterprise Ireland, to oversee the management of our immediate response, including the messaging to businesses both at home and overseas. I chair this Group, and I will continue to do so as part of my Department’s ongoing response as developments unfold at EU level and bilaterally with the UK.

Also on that day, I met with representative business organisations, including IBEC, ISME, the SFA, and the Irish Exporters Association, to provide an update on immediate responses to reassure business in the aftermath of the result.

Since then, I have had meetings with a range of other representative organisations, including American Chamber of Commerce Ireland (AmCham), Dublin Chamber of Commerce, and the Irish Farmers Association.

I have written to my newly-appointed counterparts in the new UK Government – Liam Fox, the Secretary of State for International Trade, and Greg Clark, the Secretary of State for Business, Energy and Industrial Strategy – to confirm my intention to work together with them as the upcoming negotiations develop, and to request an early opportunity to discuss our priorities.

In the weeks prior to the referendum, I met with the UK Trade and Single Market Ministers, Lord Price and Baroness Neville-Rolfe (both of whom are continuing in office in the new UK Government), and I will be meeting with the EU Commissioners for Trade, and for Internal Market, Industry, Entrepreneurship and SMEs respectively, at an early date.

In addition, a team of senior officials from my Department visited London on 1 July to discuss Single Market and Trade issues in light of the referendum outcome. Officials will continue to stay in contact with relevant UK counterparts, including through the continued working at EU groups in Brussels.

The enterprise agencies under my remit also continue to deliver on their commitment to supporting business in this period of heightened uncertainty.

My Department will continue to work closely with the Department of the Taoiseach and the enterprise agencies and other Departments to monitor the impact of the UK referendum result both on indigenous and international companies. Our immediate focus must be on communications and supporting business and investors in relation to shorter term concerns. As the position of the UK as regards both the timing of its planned exit negotiations and the nature of its desired relationship with the Union following exit clarify, we will be focussing on the strategic interests of the enterprise sector.

Corporation Tax

Questions (900)

Alan Kelly

Question:

900. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation her views on proposals to lower the UK's corporation tax rate to 15% or lower; if she has discussed this matter with the Minister for Finance; if they are developing a strategy to address the potential impact of such a move on the Irish economy; and if she will make a statement on the matter. [22718/16]

Written answers

Minister for Jobs, Enterprise and Innovation

On 24 June we published a contingency plan outlining our whole of Government response which was immediately activated. Government is addressing the implications for Ireland of the UK leaving the EU by actively taking forward the contingency plan to ensure that we respond appropriately. The Government and my Department and its agencies are taking concrete actions to address potential challenges and deliver for Ireland on any potential upside that change inevitably presents.

I instituted a Coordination Group consisting of the Chief Executive Officers of IDA Ireland and Enterprise Ireland and relevant enterprise, single market, and trade officials, to oversee the management of our immediate response and the messaging to businesses both overseas and domestically. I will continue to chair this Group as part my Department’s ongoing response as developments unfold.

Both agencies have communicated directly with their clients, and, I am aware that there have been multiple contacts since then, between IDA Ireland and Enterprise Ireland and the enterprise base.

In terms of FDI, IDA Ireland continues to market Ireland across the globe as the number one location for direct investment, confirming that we are open for business.

I, together with the Minister for Finance and the Government, are actively considering all aspects arising from the UK referendum, conscious that the situation is evolving and remains uncertain in the short term. UK tax issues are a matter for the UK administration and parliament. Chancellor Hammond has indicated that the Autumn Statement will take place as usual.

A competitive tax offering is one part of our attractive holistic offering. Ireland’s 12.5% corporate tax rate is underpinned by a competitive regime – our world class R&D tax credit and our ‘best in class’ OECD compliant Knowledge Development Box. Our low rate applied to a broad base ensures sustainable economic growth while still maintaining tax revenues.

A priority for Government is to protect and promote Ireland’s interests to the greatest extent possible, working within the EU context. Ireland’s foreign direct investment policy, of which tax is one part, has attracted real and substantive operations to Ireland – the kind that brings real jobs. We have an enviable track record. Ireland’s transparent and competitive tax regime and our membership of the EU continue to provide a certainty that is valued by business. Ireland has an English speaking business environment, ease of doing business and access to talent and consistently performs well on key international indices. Ireland has a certain, stable and competitive offering. Ireland is, and will remain a member of the EU and Eurozone.

Proposed Legislation

Questions (901)

Alan Kelly

Question:

901. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation the timeline for the passage of the Competition (Amendment) Bill through the Oireachtas; the amendments she expects to introduce to the legislation; and if she will make a statement on the matter. [22719/16]

Written answers

Minister for Jobs, Enterprise and Innovation

As the Deputy is aware, the Competition (Amendment) Bill 2016 is a Private Member’s Bill which was introduced into Seanad Éireann in January 2016. Second Stage in Seanad Éireann was taken on 20 January 2016 while Committee Stage was taken on 6 July 2016. I understand from the Order Paper of Seanad Éireann, dated 12 July 2016, that Report Stage is now scheduled to take place on the first sitting day after the summer recess.

As indicated at Second Stage in Seanad Éireann, bearing in mind the central aim behind the Bill to protect vulnerable self-employed workers, Government amendments will be proposed at Report Stage in Seanad Éireann to address the policy objectives of the Bill of protecting vulnerable workers in a targeted way that would be consistent with Irish and EU competition law. However, it is premature to indicate what the exact nature of those amendments will be as they will require settling by the Office of Parliamentary Counsel.

Living Wage

Questions (902, 904)

Alan Kelly

Question:

902. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation the action she is taking to progress a motion (details supplied) which supported the call for an incremental increase in the minimum wage until it is set at 60% of median earnings and a living wage to be adopted throughout the public sector; and if she will make a statement on the matter. [22720/16]

Alan Kelly

Question:

904. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation if she is considering measures to ensure that the Government leads by example and becomes a living wage employer by 2018 and that the living wage is progressively extended to State procured services in the areas of security, cleaning and hospitality; and if she will make a statement on the matter. [22722/16]

Written answers

Minister of State at the Department of Jobs, Enterprise and Innovation

I propose to take Questions Nos. 902 and 904 together.

The Living Wage concept is grounded in the idea that a person’s wage should be sufficient to maintain a safe, decent standard of living. At an individual level the resources required to achieve a minimum essential standard of living is very dependent on family circumstances and thus the interaction of individual earnings with household income and State-provided supports such as Child Benefit, Family Income Supplement as well as supports available in relation to housing, education and health all contribute to an individual’s standard of living.

It is important that Ireland’s statutory National Minimum Wage and the Living Wage concept are not conflated. The Living Wage is a voluntary societal initiative centred on the social, business and economic case to ensure that, wherever it can be afforded, employers will pay a rate of pay that provides an income that is sufficient to meet an individual’s basic needs, such as housing, food, clothing, transport and healthcare. The Living Wage is voluntary and has no legislative basis and is therefore not a statutory entitlement. It is different to the National Minimum Wage which is a statutory entitlement and has a legislative basis.

The Low Pay Commission was established last year and its primary 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 Commission presented its first report in July 2015 in which it recommended an increase of 50 cents per hour to the minimum hourly rate bringing it to €9.15. That increase, which was accepted by Government, came into effect on 1 January last.

The Commission is due to submit its second Report today. Any recommendation made by the Commission will be considered by Government in the context of Budget 2017.

Issues relating to Public Sector employees and their terms and conditions of employment are a matter for my colleague, Paschal Donohoe TD, Minister for Public Expenditure and Reform. Issues relating to the tendering of public contracts are also outside my remit and should be addressed to the Office of Public Procurement which operates as an office of the Department of Public Expenditure and Reform.

Proposed Legislation

Questions (903)

Alan Kelly

Question:

903. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation the timeline for the introduction of legislation to implement the recommendations of the University of Limerick report to the Government - A Study on the Prevalence of Zero Hours Contracts among Irish Employers and their Impact on Employees and the Cahill-Duffy expert examination and review of laws on the protection of employee interests when assets are separated from the operating entity and commissioned following the treatment of workers (details supplied) in June 2015; and if she will make a statement on the matter. [22721/16]

Written answers

Minister of State at the Department of Jobs, Enterprise and Innovation

The Programme for Government contains a commitment to tackle the problems caused by the increased casualization of work and to strengthen regulation of precarious work.

I am committed to bringing forward an appropriate policy response to the University of Limerick (UL) study on Zero Hour Contracts and Low Hour Contracts report for consideration by Government later this year.

The policy response will be informed by the UL study itself and also the extensive material and practical examples provided by respondents to the public consultation conducted by my Department. In this respect some 48 submissions were received which contained a broad range of views for and against the findings and recommendations made by UL. In developing a policy response, my overriding concern is to find balanced and workable solutions to the issues of insecure, low hours work, with a particular focus on low paid vulnerable workers.

The Duffy Cahill report was commissioned as part of the Government’s response to the closure of Clerys last year. The report provides a comprehensive analysis of the relevant provisions of employment law and company law. It makes a number of proposals for reform of the law, which are primarily concerned with amendments to employment law. My Department conducted a Public Consultation on the report following its publication on 26 April. The submissions received in response to the consultation are important in terms of assessing how the suggested reforms could operate in practice and in identifying any unintended consequences. They will inform the response to the report which will be brought forward for consideration by Government.

Question No. 904 answered with Question No. 902.

Ministerial Advisers Data

Questions (905)

Seán Sherlock

Question:

905. Deputy Sean Sherlock asked the Minister for Jobs, Enterprise and Innovation the number of politically appointed staff working in her Department including the names, roles and salaries of each staff member; in the case of special advisers, their qualifications and experience relevant to their roles; and if she will make a statement on the matter. [22735/16]

Written answers

Minister for Jobs, Enterprise and Innovation

The numbers and grades of politically or personally appointed staff in respect of Ministers’ Offices are governed by “Instructions” issued by the Department of Public Expenditure and Reform (DPER). In that context, sanction has been received for the following:

Minister for Jobs, Enterprise and Innovation

Name	Role	Salary	Qualifications / Experience
Mr Alan Cantwell	Special Adviser (Press)	PO Standard Scale (ppc €79,401 - €97,194)
Mr Jim McGrath	Special Adviser (Policy)	PO Standard Scale (non-ppc €75,647 - €92,550
Mr John Slattery	Civilian Driver	€665 per week
Mr Neil Brady	Civilian Driver	€665 per week

Minister for Employment and Small Business

Name	Role	Salary	Qualifications / Experience
Mr George Quinn	Civilian Driver	€665 per week
Mr Noel McMahon	Civilian Driver	€665 per week

However, I should point out that at this particular time, contract offers are being progressed and once finalised will be laid before the Houses of the Oireachtas, along with, in the case of Special Adviser appointments, relevant statements of interests and qualifications.

Job Retention

Questions (906)

Richard Boyd Barrett

Question:

906. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation her plans to encourage workers to stay here, in view of emigration figures still running at 23,000 persons, per annum. [20699/16]

Written answers

Minister for Jobs, Enterprise and Innovation

The Programme for a Partnership Government sets an ambitious target to have an additional 200,000 at work by 2020, with an unemployment rate of 6 per cent. Achieving this ambitious target is premised on the creation of a range of employment and career opportunities across a broad spectrum of skills across all sectors of the economy, including manufacturing and services activities. Supporting the creation by enterprises of sustainable and quality employment is the key focus of my Department, of the enterprise development agencies and the Local Enterprise Offices. We are determined to ensure there are employment opportunities in this country for all our people.

Enterprise 2025, the Government’s long-term enterprise policy was launched in 2015. It is an ambitious strategy, with the objective of delivering growth over the next decade that is sustainable, led by strong export performance, builds on our sectoral strengths, and that is underpinned by innovation, productivity, cost effectiveness and competitiveness.

It is our aim to build resilience into our economy so that we do not suffer again as we have done in the past. As a small open economy Ireland’s success will be dependent on driving export led growth and growing the additional indirect jobs stimulated by the activities of exporting enterprises in the wider economy. We will continuously monitor our employment growth patterns in terms of an export/non-export ‘balance’ to avoid the mistakes of the past.

The focus on job creation is a Government wide agenda. As set out in the Programme for a Partnership Government, it involves:

- achieving a leap forward in the capacity and the performance of enterprises based here/ and in attracting further investment. We will put in place an extra €500 million in capital funding to accelerate export led jobs growth across Ireland’s regions;

- focusing investments in areas where Ireland can differentiate itself internationally – specifically education and skills, creating attractive places to live and work throughout the country and supporting enterprise innovation; and

- improving the environment for business in terms and maintaining a focus on protecting our national competitiveness from unsustainable cost growth.

To deliver on this ambitious target, in the Programme for a Partnership Government we commit to maintaining the OECD endorsed Action Plan for Jobs (APJ) Process that will set out, on an annual basis, the best ideas for job creation within available resources.

Building on this process, we are focused on ensuring that we can support new job creation in every region in the country over the next five years, through the implementation of the Regional Action Plans for Jobs. A key objective of the plans is to have a further 10 to 15 per cent at work in each region by 2020.

The Expert Group on Future Skills Needs (EGFSN) reports to me and to the Minister for Education and Skills. The EGFSN plays a key role in advising the Government on the current and future skills needs of the economy. Recent EGFSN reports have anticipated future job opportunities arising from both expansion and replacement demand for a range of occupational roles. These include ICT, data analytics, manufacturing, medical devices, pharmaceuticals, food and beverages. Further opportunities are also anticipated in international sales and marketing, project management, freight transport, distribution and logistics, and in the hospitality sector.

Job Creation

Questions (907)

Michael McGrath

Question:

907. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation the number of persons who have been paid fees paid to connectors under the ConnectIreland initiative, in each year since it was established; the total fees paid; the number of jobs created under the scheme; and if she will make a statement on the matter. [22883/16]

Written answers

Minister of State at the Department of Jobs, Enterprise and Innovation

The Succeed in Ireland initiative was launched by the Government as part of the 2012 Action Plan for Jobs and is designed to lead to additional job creation. The scheme is delivered on behalf of IDA Ireland by Connect Ireland.

As of 4 July 2016, IDA Ireland has paid fees of €1,774,500 to ConnectIreland.

The number of jobs confirmed as having been created is 453. The annual breakdown is in the following table:

Fees Paid to ConnectIreland and Jobs Created 2012-2016

	2012	2013	2014	2015	2016 to date	Total
Jobs On the Ground	0	0	116	184	153	453
Payment to ConnectIreland	€            -	€            -	€   447,500.00	€   719,500.00	€   607,500.00	€   1,774,500.00