Written Answers Nos. 204 - 212
204. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which she and her Department continue to compete for foreign direct investment with particular reference to job relocation arising from Brexit; and if she will make a statement on the matter. [14673/17]
View answerMy responsibility, as Minister for Jobs, Enterprise and Innovation, is on ensuring that Ireland as a whole is best placed to capitalise on whatever foreign direct investment (FDI) opportunities may emerge on account of Brexit. That is why I secured significant additional funding for IDA Ireland to help the Agency better respond to the challenges and opportunities Brexit may present for each and every county of Ireland. I also regularly engage with the IDA about its Brexit-related requirements and other issues in connection with securing new investment for Ireland.
Our focus now is converting the interest shown to date by new investors into new projects here. Both the IDA and the Government will continue to work hard with that goal in mind. The IDA has also recently launched a new global communications campaign, called "Right Place, Right Time", which will help target decision-makers in key locations.
While I am confident about the potential to secure new investment in Ireland, we do need to be realistic about what is achievable. Competition for all new such investment remains intense and we should not expect tens of thousands of jobs to be created here by default.
205. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which she and her Department continue to support encourage and foster the creation of jobs through the indigenous sector both in terms of traditional industry and innovative proposals; and if she will make a statement on the matter. [14674/17]
View answerMy Department, through Enterprise Ireland and the LEOs provides a range of supports to help Irish companies start, grow and export. There are now over 201,000 people employed by EI supported companies across the country. The fact that over 130,000 of those 201,000 jobs are outside of Dublin is significant.
The objective of Enterprise Ireland’s new ‘Global Ambition’ strategy 2017-2020 is to support enterprises across the economy, to grow into strong Irish international companies, developing world-leading products and services and exporting them all around the world.
There is a vast range of programmes and supports offered to companies to drive this strategy. These include management capability, leadership and marketing/sales skills as well as promoting innovation and R&D. Investment in these areas is becoming more important as the demands of the marketplace evolve and become tougher.
In terms of supporting traditional industry, my view is that manufacturing in Ireland is still, and will always be, an essential part of a well-balanced economy. Our manufacturers have innovated and moved with the times – and they will continue to do so. Advances in ICT, new materials, biotechnology, fuels, and nanotechnology offer scope for continuous innovation in manufacturing. Together with the opening up of world markets, these advances offer great opportunities for Irish manufacturers.
Manufacturing today is not just about making things anymore. It is about finding solutions for a more sophisticated and demanding range of customers. It includes research, design, maintenance, sales and marketing, logistics and distribution too.
The best way to protect and increase manufacturing jobs is to compete with excellent products and services, using high technology, drawing on design, innovation and our strong science base.
We are placing a particular focus on encouraging startups and small businesses to embrace the culture of innovation that now exists and maximise the benefits of technology.
My Department also ensures that companies can access the right type of funding, appropriate to their stage of development. This ranges from microfinance right through to seed and venture capital, development capital and risk-sharing credit guarantees through the banks.
Enterprise Ireland’s activity across all sectors of the economy is supporting a total of 400,000 directly and indirectly supported jobs.
Furthermore, our 8 Regional Action Plans for Jobs are building on the jobs potential of each region. At local level, the Local Enterprise Offices, supported by EI, are supporting indigenous businesses and entrepreneurs in every county.
I am currently finalising plans for a regional initiative of up to €60m to support collaborative approaches to grow and sustain indigenous enterprise and jobs across the regions. This will be administered by Enterprise Ireland.
206. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the degree to which she continues to promote and support job creation through the small business sector with particular reference to the need to ensure the minimisation of practices likely to impede small businesses; and if she will make a statement on the matter. [14675/17]
View answerAs Minister for Jobs, Enterprise & Innovation, I am consistently focused on supporting job creation. Since 2012, the annual Action Plan for Jobs has delivered actions to support job retention and creation. The unemployment rate has dropped from a high of 15.1% in February 2012 to 6.6 % in February 2017. The figure for the number of people in work has risen from 1,836,000 in Q3 2012 to 2,048,000 in Q4 2016.
We hold structured dialogue with key stakeholders and we advocate across Government to ensure the needs of SMEs are taken into account in the execution of national policy. In 2017, my Department will be developing an SME Test to ensure that policy makers “Think Small First.”
My Department listens to the concerns of the small business sector and actively engages with small businesses and their representative organisations. We have the Advisory Group for Small Business (AGSB) which is chaired by the Minister for Small Business and Employment, Pat Breen TD. This forum and others such as the Retail Consultation Forum and the inter-departmental High Level Group on SME Access to Procurement are there to assist small businesses and show that this Government is willing, and wants to, engage with small business.
The two Departmental developmental agencies dealing with micro, small and medium companies, Enterprise Ireland (EI) and the Local Enterprise Offices (LEOs), are targeted with assisting and developing small businesses through the start-up phase and beyond. EI has approximately 5000 clients supporting over 201,000 jobs. The LEOs support over 6,500 companies which employee 32,500 people.
In total, there are over 170 different Government supports for Irish start-ups and small businesses, from a wide variety of Departments and Agencies. All of these supports are included the cross Governmental www.supportingsmes.com portal. By answering the eight quick questions in the Online Tool, a small business will, in one location be able to: find out which of the over 170 Government business supports from 27 different Government Departments, Agencies and Initiatives are available to them; and obtain information on the range of Government supports for accessing credit with small business.
207. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which she continues to compete for job creation opportunities inside and outside the EU, particularly in anticipation of Brexit; and if she will make a statement on the matter. [14676/17]
View answerThe Government has already taken a number of important initiatives, including in bolstering the capacity of our enterprise agencies to maximise job creation opportunities inside and outside the EU.
The recently published Action Plan for Jobs 2017 builds on this with specific measures to:
- support enterprises, particularly those most dependent on UK markets
- identify and target new markets
- assist Irish businesses expand and scale and
- help position Ireland to benefit from new opportunities that arise.
The Government has just published a new trade and investment strategy which is supported by an extensive programme of Ministerial-led trade missions, as part of a major drive towards market diversification.
Enterprise 2025 continues to provide a solid roadmap for longer-term enterprise development with a focus on building the resilience of the enterprise base, export-led growth and job creation. In anticipation of the type of strategic exercise that may be needed to restate or reposition our global offering, I have asked my officials to undertake an urgent review of progress under Enterprise 2025.
At the Agency level I have directed IDA Ireland to explore the potential for winning more FDI on account of Brexit and the Agency and its staff are already working hard with this goal in mind.
In our efforts to win more FDI, we can continue to rely on the selling points that make investing in Ireland so attractive in the first place including our continued membership of the European Union and Eurozone.
I secured additional funding for IDA in 2017 to strengthen its capacity to communicate Ireland’s unique selling points to the international business audience and to help target key markets to secure investment and jobs.
The potential sources of FDI are likely to come from:
- existing IDA Clients with a presence in Ireland who also have a presence in the UK;
- overseas clients (US, European and Asian) who have a presence in the UK but not in Ireland;
- UK companies operating in the UK who now need certain access to the European Market; and
- International clients without a presence in Europe seeking a European home.
From an indigenous enterprise perspective, Enterprise Ireland’s strategy for the period 2017-2020 focuses on:
- Consolidating and growing exports into the UK market
- Expanding the Irish export global footprint, re-orienting towards N America, Canada, Asia and the Middle-East
- Expanding the EI Export Platform
I have already announced 39 extra staff for EI’s overseas offices and in the Irish based team to support exporting companies in the context of Brexit. Staff will be assigned to:
- Markets that are growing and have scale (including China, India, Latin America, Africa);
- Markets where we are already well established but with potential for further growth (including UK, France, Benelux, Germany, US, the Nordics).
208. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which she expects Ireland to be in a position to increase trade with the US, Canada and other EU and non-EU locations post-Brexit; and if she will make a statement on the matter. [14677/17]
View answerThe UK’s exit negotiations from the EU will not commence until Article 50 has been triggered, which the UK Government have indicated they intend to do on 29 March 2017. These negotiations could take the maximum allowed period of two years to complete.
It is hard to predict at this stage the full impact of Brexit. Much will depend on the nature of the future trade deal that will be negotiated between the EU and the UK. These negotiations are likely to be complex and multifaceted.
The Government has just published a new Trade Strategy, Ireland Connected: Trading and Investing in a Dynamic World which supports an extensive programme of Ministerial-led trade missions, as part of a major drive towards market diversification - promoting diversified export markets in light of the potential impacts of Brexit is a key priority for my Department. This includes markets that are growing and have scale as well as markets where we are already well established but with potential for further growth. The programme of trade missions and trade events for 2017 includes a substantive focus on the EU and third country markets. In 2017 we have 42 Minister led trade missions to existing and emerging markets. These have been reorientated to reflect an increased focus on EU markets. Enterprise Ireland is consistently working with client companies focussing on enhancing their competitiveness, capability and levels of innovation to assist them to diversify into new markets.
The EU’s suite of Free Trade Agreements with third Countries help to open new markets, break down barriers and provide new opportunities for Irish firms. These existing EU Agreements and new trade deals will continue to be important for Ireland. With a small domestic market, further expansion in other markets is essential to our continued economic growth.
Ireland will continue to support the EU’s ambitious programme of negotiating new Free Trade Agreements giving Irish firms expanded market access and a predictable trading environment in third countries. The EU-Canada Free Trade Agreement will create sizeable new market access opportunities in services and investment in many sectors for Irish firms. My Department is already working with our agencies and Business Groups to ensure that Irish firms take early advantage of the terms of the Agreement. I will be leading a trade mission to Canada in the first half of this year to promote the opportunities provided by the Agreement.
The EU-South Korea Free Trade Agreement has led to a sizeable increase in Irish exports since it came into effect in 2011. This is the real evidence that Trade Agreements work for Irish exporters and Irish jobs.
209. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which upskilling is being provided in circumstances whereby recent job losses have occurred such as in a company (details supplied); the extent to which alternatives continue to be pursued in this regard; and if she will make a statement on the matter. [14678/17]
View answerIn cases where significant job losses arise due to a company closing or downsizing, the local Education and Training Board (ETB) can engage with the company and the impacted staff to undertake an assessment of training needs. If retraining or upskilling is deemed to be required, the ETB can then organise appropriate courses.
In the case of the company referred to, this Department has contacted the ETB for Kildare/Wicklow. That Board will be undertaking, in respect of the employees, an assessment of current skills and training needs.
210. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which she expects the knowledge development box to protect Irish interests in the international jobs investment market; and if she will make a statement on the matter. [14679/17]
View answerAs set out in the Action Plan for Jobs 2017, which was co-ordinated across Government by my Department, protecting our interests in the international jobs investment market continues to be a priority. Ireland will continue to provide a competitive offering for mobile investment, including tax offering, and to ensure that our innovative entrepreneurs establish and scale in Ireland so as to provide jobs for our citizens and contributes to funding the provision of services.
Ireland is the first country world-wide to introduce an OECD compliant Knowledge Development Box (KDB) offering. The certainty, predictability and clear signal that this sends to enterprise – including both Irish owned and foreign owned entities establishing and doing business from here - remains essential. This certainty has become even more important in the current dynamic and uncertain geopolitical landscape.
The KDB, introduced in Budget 2016 forms part of Ireland’s competitive offering to continue to attract foreign direct investment (FDI) and to support Irish owned companies to innovate and to compete effectively on international markets. The Government and I are satisfied that the Knowledge Development Box will protect Irish interest in the international jobs investment market and will continue to benefit the Irish economy.
The continuing imperative to establish Ireland as the best place in which to succeed in business is reinforced in our national Enterprise and Innovation strategies. Our aim is that Ireland will be recognised as the place where businesses are innovative, competitive and productive – leading to growth that is sustainable and results in employment opportunities and a higher standard of living for all. These strategies set out the framework for investment over the coming decade to ensure that Ireland remains equally attractive to foreign direct investment and to Irish entrepreneurs and growth businesses in the context of an intensely competitive international environment.
The Knowledge Development Box provides an effective 6.25% rate of corporation tax on profits from certain qualifying assets that are earned by a company, chargeable to corporation tax in the State, to the extent that the assets relate to R&D undertaken by that company. The OECD nexus approach sets out the principles and guidelines under which income arising from IP assets can qualify for a lower rate of tax under a KDB initiative. Ireland’s KDB effective rate is 6.25 percent (half of the corporation tax rate of 12.5 percent) and is internationally competitive.
The KDB complements the existing suite of initiatives and supports available to companies that undertake R&D activities in Ireland across the lifecycle of research and development – including R&D tax credits, RD&I grant supports, support for technology acquisition (S291A), significant state investments in National Research Centres and knowledge transfer infrastructures, and advisory supports for accessing Horizon 2020 funding – providing a competitive proposition for business investment.
It is important to highlight that the Knowledge Development Box will benefit companies of all sizes. To ensure maximum access the Knowledge Development Box (Certification of Inventions) Bill 2016 will apply to certain small and medium sized companies to avail of the Knowledge Development Box without the need for public disclosure of their innovative concept. Under the new scheme, the Patents Office will be the body certifying applications for inventions under the new certification scheme to check that they meet the criteria of being novel, useful and non-obvious. The Bill is intended to open up the opportunity for companies across a broad spectrum to pay lower taxes on profits from Irish-based research and development activities. This includes companies in incubation units right through to high-potential start-ups in all industry sectors once they are generating income resulting from research and development activities. The scheme should serve to significantly boost Irish innovation and investment in research and development.
This Bill will be in the Dáil for Report and Final Stages next week.
211. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which her plans to encourage an even dispersal of investment throughout rural Ireland are on target in view of the necessity to achieve an evenly based balanced economy with equal opportunities throughout; and if she will make a statement on the matter. [14680/17]
View answerIDA Ireland is making good progress towards its target of increasing the level of investment in each region by 30% to 40% by 2019. In 2016, 52% of all Agency supported jobs created were based outside of Dublin.
While IDA Ireland does everything in its power to ensure an even spread of investments, it is important to realise that the ultimate decision on location rests solely with the company. There is a global trend to base foreign direct investment around large urban areas. Quite often, companies also want to be located near competitors or clusters of other similar enterprises. As a result, some businesses are only interested in investing in our larger cities.
The Government remains committed to achieving balanced regional development and this ambition is reflected in our eight Regional Action Plans for Jobs (RAPJs). The aim of the RAPJs is to ensure that the unemployment rate of each region is within one percentage point of the State average by 2020. These plans are delivering clear results with an implementation rate of over 90% for each region. This improvement is also reflected in the increase in regional employment in 2016, with 70% of all new jobs created last year located outside Dublin.
212. Deputy Jack Chambers asked the Minister for Jobs, Enterprise and Innovation the details of any payments made by her Department, its agencies or any bodies under her aegis to broadcasters here in the years 2014, 2015 and 2016; the broadcaster to which the funds were provided; the reason for the payments; and if there are any reasons for payments to broadcasters in 2017. [14726/17]
View answerMy Department did not make any payment to broadcasters in the years 2014, 2015, 2016 and 2017 to date.
In 2015, my Department paid €250,000 to Atomic Advertising ltd in respect of an advertising campaign to raise awareness of a range of government supports for enterprise. These advertisements were carried by a number of broadcasters
Any payments to broadcasters from agencies under the aegis of my Department are a day to day operational matter for the agencies concerned. I have asked the agencies to supply me with details and I will provide these to the Deputy once received.
The following deferred reply was received under Standing Order 42A
I undertook to ask the bodies under the aegis of my Department to supply the information requested and details have been forwarded to the Deputy.
