Written Answers Nos 334-345
334. Deputy Tony McLoughlin asked the Minister for Jobs, Enterprise and Innovation the provisions being made with regard to issues arising post-Brexit (details supplied); and if she will make a statement on the matter. [16908/17]
View answer335. Deputy Tony McLoughlin asked the Minister for Jobs, Enterprise and Innovation in view of the negative impact of Brexit and the triggering of Article 50 on investment and jobs here and especially in the Border region and counties Sligo and Leitrim, the steps she will take to ensure that adequate provision is made to counter the situation; and if she will make a statement on the matter. [16909/17]
View answerI propose to take Questions Nos. 334 and 335 together.
Brexit has been on our radar for a number of years and we have been planning accordingly.
In order for me, as Minister with responsibility for supporting business across all sectors, to develop initiatives to support businesses that are impacted by Brexit, I need to fully understand business needs and to understand the various scenarios that may confront us.
In this regard, my officials are currently analysing the outputs from a series of structured engagements with companies of different sizes, across different sectors and across the regions on the impact of currency fluctuations on exposed companies.
The information gathered during the course of this engagement is detailed and informative and when fully analysed will give me a clear indication of the needs of SMEs to help them address the short and more medium and long term challenges of Brexit.
I recently hosted a Department of Jobs, Enterprise and Innovation Brexit Stakeholder Engagement Event in Carrick-On-Shannon on 30 January, attended by over two hundred Departmental stakeholders – with significant attendance from the local business community. This provided a valuable opportunity to hear from companies and stakeholders about the impact of Brexit on their businesses
My Department is also funding a number of research projects to:
- improve our understanding of the impact of different trade and tariff regimes which might be imposed following Brexit;
- provide data on the extent and concentration of cross border trade, including information on this trade by product and firm types and barriers to trade;
- examine the implications for the most exposed enterprise sectors - in terms of trading and economic relationships - of the UK being outside of the European Single Market and Customs Union.
In terms of my Agencies, Enterprise Ireland has been systematically engaging with its 1,500 clients that export to the UK. EI will continue to provide continued supports to its client companies who now directly employ over 201,000 jobs across the country.
IDA Ireland is constantly engaged with clients across its entire portfolio and in the months leading up to the UK referendum it engaged with clients and prospective clients in relation to the potential impact of Brexit. The IDA has a Team involved in strategic scenario planning, which continues to work on ensuring that the Agency’s strategy is fit for purpose in light of the referendum results in the UK.
The Local Enterprise Offices are a key resource for the micro and small business sector, particularly in the regions. I have obtained an additional Capital allocation of €4m for Local Enterprise Development in 2017, which will be used to implement a series of Brexit-related measures in the LEOs.
IDA, EI, and the LEOs are making a significant contribution to employment in Sligo and Leitrim.
There are currently 27 multinational companies employing over 2,700 people in these counties.
EI companies currently support 1,546 and 922 jobs in Sligo and Leitrim respectively. EI job announcements in 2016 in the North West included LotusWorks (50 jobs in Sligo) and VistaMed (200 jobs in Leitrim).
The Sligo and Leitrim LEOs are fully engaged in supporting the micro-enterprise and small business sectors in their areas to create and sustain jobs. In 2016, the number of jobs that were created by micro-enterprises that had been supported by LEO Sligo and LEO Leitrim were 38 and 44 respectively.
The Regional Action Plans for Jobs initiative is a concrete example of the targeted approach we are undertaking to boost regional employment. While the Regions will benefit from our wider Brexit responses, the implications of the Brexit vote and the challenges and opportunities that the decision pose for specific Regions has been discussed at the meetings of the Implementation Committees for the Regional Action Plan for Jobs that have taken place since the June decision.
The North East/North West Regional Action Plan for Jobs is stimulating job creation across the region, by facilitating collaborative initiatives between the public and private sector, and through the provision of new competitive funds awarded through Enterprise Ireland, to support regional enterprise projects. The Plan aims to support the creation of 28,000 jobs across Sligo, Leitrim, Donegal, Cavan, Monaghan and Louth by 2020. Sectors targeted as part of the plan include traditionally strong sectors for the region like agrifood, manufacturing/engineering and tourism.
I will continue to visit the regions and meet with stakeholders to ensure that plans are being implemented in every region, including the Border region.
336. Deputy Tony McLoughlin asked the Minister for Jobs, Enterprise and Innovation the steps she is taking to attract foreign direct investment and indigenous investment to the manufacturing and service sectors here in view of the triggering of Article 50 (details supplied); and if she will make a statement on the matter. [16910/17]
View answerAt the strategic level, Enterprise 2025 sets out the roadmap for enterprise development, and details the actions required and being taken to support the manufacturing and service sectors. Our new trade and investment strategy, Ireland Connected, will be backed up by increasing our agency resources both at home and overseas and an intensified programme of trade missions.
Responding to Brexit, which has particular implications for border counties, has also been prioritised in the Action Plan for Jobs 2017 which sets out 20 specific actions aimed at growing and diversifying markets for Irish exports and maximise opportunities in foreign direct investment and research and innovation.
In addition to protecting the Northern Ireland Peace Process, maintaining the Common Travel Area, and influencing the future of the European Union, we have made it a priority to minimise the impact of Brexit on Ireland's trade and on our economy. Supporting the development and growth of indigenous companies and maximising Foreign Direct investment are key activities of my Department and Agencies.
Almost 50 additional staff are being deployed by my Agencies to support firms to enter new markets and to attract new investment.
Enterprise Ireland is working with firms to support product and service innovation, the adoption of lean systems, smarter sourcing strategies and, crucially, the identification of new overseas markets. Enterprise Ireland will shortly launch its new Eurozone strategy, with the aim of increasing indigenous exports to the Eurozone by 50% over the period to 2020. In addition, we are engaging with companies to help them adapt to currency fluctuations and to support product and market diversification. The Local Enterprise Offices are working with non-EI client companies providing support and advice services as well as bespoke services to foster new business opportunities in local areas.
IDA continues to identify potential for mobile FDI in key sectors and actively pursue these opportunities including through targeted trade missions and roll-out of advertising campaigns to promote Ireland’s offering.
My Department is currently undertaking research to examine the implications at firm-level for the most exposed enterprise sectors of the UK being outside of the European Single Market and Customs Union. This research will inform an assessment of the way in which Brexit will affect individual sectors of the economy and our targeted response. I am also engaging with stakeholders across the country to assess the implications for different regions and sectors. On 30 January, I hosted a major stakeholder event in Carrick-on-Shannon to facilitate a dialogue with stakeholders about the impacts, challenges and opportunities arising as a result of the UK decision to leave the EU, across the broad range of policy areas for which the Department is responsible.
Further, my Department is also funding a project through InterTrade Ireland on the North-South trade implications of Brexit. This project will provide an understanding of the impact of different trade and tariff regimes which might be imposed following Brexit.
337. Deputy Tony McLoughlin asked the Minister for Jobs, Enterprise and Innovation the steps she is taking to make contact with prospective investors inside and outside the European Union with a view to ensuring a strong and vibrant economy post-Brexit and the triggering of Article 50 (details supplied); and if she will make a statement on the matter. [16911/17]
View answer338. Deputy Tony McLoughlin asked the Minister for Jobs, Enterprise and Innovation the steps she is taking to continues to encourage and avail of job creation opportunities based on innovation and technology here and especially in regards to counties Sligo and Leitrim; and if she will make a statement on the matter. [16912/17]
View answer339. Deputy Tony McLoughlin asked the Minister for Jobs, Enterprise and Innovation the steps she is taking to continue to compete for foreign direct investment with particular reference to job relocation arising from Brexit and the triggering of Article 50 here and especially in the Border region and counties Sligo and Leitrim; and if she will make a statement on the matter. [16913/17]
View answerI propose to take Questions Nos. 337 to 339, inclusive, together.
Foreign Direct Investment (FDI) remains a key contributor to Ireland’s continuing economic development and growth. The role it plays in sustaining employment here is well-documented, with approximately one out of every five private sector jobs here directly or indirectly resulting from FDI. Last year saw the highest ever level of employment in IDA Ireland client companies, with 199,877 people now employed in companies supported by the Agency, including 2,703 jobs across 27 IDA Ireland client companies in Sligo and Leitrim.
IDA markets Sligo and Leitrim as part of the North West region, along with Donegal. The main FDI activity clusters that have been developed in the North West are in the life sciences and engineering sectors. IDA continues to promote the region to prospective investors from both those and other sectors.
The Regional Action Plan for the North East/North West represents the wider strategy for increasing employment in the region. This plan aims to support the creation of 28,000 new jobs across Donegal, Sligo, Leitrim, Cavan, Monaghan and Louth by 2020. Significant progress has been made to date towards that objective, with 5,600 more people in employment across the region since the start of 2015.
More broadly, the Government is focussed on ensuring that Ireland is best placed to capitalise on whatever foreign direct investment (FDI) opportunities may emerge on account of Brexit. That is why significant additional funding has been provided to 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.
340. Deputy Tony McLoughlin asked the Minister for Jobs, Enterprise and Innovation the steps she is taking to support the creation of jobs through the indigenous sector both in terms of traditional industry and innovative proposals in counties Sligo and Leitrim; and if she will make a statement on the matter. [16914/17]
View answerMy Department, through Enterprise Ireland (EI) and the Local Enterprise Offices (LEOs) provide 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. Enterprise Ireland client companies support a total of 1,546 jobs in Sligo and 922 jobs in Leitrim.
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’s 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 LEOs, supported by EI, are supporting indigenous businesses and entrepreneurs in every county. There has been a number of recent LEO events in Sligo, Leitrim, Donegal and Cavan to highlight the key areas where clients may be exposed and to provide direction in how they might address these.
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.
341. Deputy Tony McLoughlin asked the Minister for Jobs, Enterprise and Innovation the steps she is taking 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 in counties Sligo and Leitrim; and if she will make a statement on the matter. [16915/17]
View answerThe Local Enterprise Offices (LEOs) and Enterprise Ireland (EI) are the main Agencies under the auspices of my Department that offer advice and support to the small business sector.
The 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.
The LEOs 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. Businesses should contact their local LEO.
The Sligo and Leitrim LEOs are fully engaged in supporting the micro-enterprise and small business sectors in their areas to create and sustain jobs. In 2016, the number of jobs in micro-enterprises that had been supported by LEO Sligo and LEO Leitrim were 1,095 and 422 respectively.
Contact details and further information on the services available from the LEOs, including soft supports such as training and mentoring, can be accessed at www.localenterprise.ie.
Enterprise Ireland works in partnership with Irish enterprises to help them start, grow, innovate and win export sales in global markets. They provide funding and supports for companies - from entrepreneurs with business propositions for a high potential start-up through to large companies expanding their activities, improving efficiency and growing international sales. Availability of all EI supports are communicated via www.enterprise-ireland.coma and also through EI’s Development Advisors, EI Regional Offices and through public calls for applications.
EI companies currently support 1,546 and 922 jobs in Sligo and Leitrim respectively. EI job announcements in 2016 in the North West included LotusWorks (50 jobs in Sligo) and VistaMed (200 jobs in Leitrim).
In the area of access to finance, a range of initiatives has been introduced - from Microfinance Ireland to the Strategic Banking Corporation of Ireland and from the Credit Guarantee Scheme to the Ireland Strategic Investment Fund - and continued investment in seed and venture capital through Enterprise Ireland. These initiatives remain available and accessible to business and continue to provide increased access to credit and finance for Irish enterprise.
Micro and small enterprises can also access information on over 170 different Government supports that are available for Irish based start-ups and small businesses via the Supporting SMEs online tool. The online tool is a cross-governmental initiative to help start-ups and small businesses navigate the range of Government supports available. By answering the eight quick questions in the online tool, micro and small businesses 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.
The online tool is an initiative developed under the Action Plan for Jobs and is available at: www.supportingsmes.ie.
342. Deputy Tony McLoughlin asked the Minister for Jobs, Enterprise and Innovation the steps she is taking to compete for job creation opportunities inside and outside the EU for Irish citizens, particularly in anticipation of Brexit and the triggering of Article 50; and if she will make a statement on the matter. [16916/17]
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).
343. Deputy Tony McLoughlin asked the Minister for Jobs, Enterprise and Innovation her views on the potential of increased trade with the US, Canada and other EU and non-EU locations post-Brexit and the triggering of Article 50; and if she will make a statement on the matter. [16917/17]
View answerOn 29 March 2017, Prime Minister Theresa May formally notified the European Council of the UK's intention to leave the EU in accordance with Article 50 of the Treaty on European Union.
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.
Last month, the Government 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 orientated to reflect an increased focus on EU markets. Enterprise Ireland is consistently working with client companies focusing 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.
344. Deputy Tony McLoughlin asked the Minister for Jobs, Enterprise and Innovation if her plans to encourage an even dispersal of investment throughout rural Ireland and in counties Sligo and Leitrim 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. [16918/17]
View answerThe Regional Action Plan initiative is working to address regional and rural job creation by bringing different stakeholders in each of the 8 regions together to identify innovative and practical actions, to be taken across a range of Departments and agencies, with clear timelines for delivery over the period 2015 - 2017.
The plans are currently being monitored and driven in each region by Implementation Committees, comprising representatives from the Enterprise Sector, as well as the Local Authorities, Enterprise Agencies, and other public bodies in the region. Collaboration between the private and the public sector has been a core element in each plan’s development, and will be central to each plan’s delivery. The first progress reports on these Plans were published in December showing that good progress is being made in their implementation.
A key objective of the plans is to have a further 10 to 15 per cent at work in each region by 2020, with the aim of having the unemployment rate of each region within one per cent of the national average.
The success of the Regional Action Plans for Jobs is crucial to the Government in meeting the ambition to create an additional 200,000 jobs, 135,000 of which are outside the Dublin region, by 2020.
Employment has been growing continuously for the past 17 quarters and over the past year employment has grown in all regions.
The most recent figures from the CSO also show that 70% of all jobs created in the past year were created outside Dublin.
The enterprise agencies are making a significant contribution to employment in the regions - 61% of new jobs by Enterprise Ireland firms in 2016 were outside Dublin and 52% of new jobs by IDA firms in 2016 were outside Dublin.
The North East/North West Regional Action Plan for Jobs is stimulating job creation across the region, by facilitating collaborative initiatives between the public and private sector, and through the provision of new competitive funds awarded through Enterprise Ireland, to support regional enterprise projects.
The North East/North West Plan aims to support the creation of 28,000 jobs across Sligo, Leitrim, Donegal, Cavan, Monaghan and Louth by 2020. Sectors targeted as part of the plan include traditionally strong sectors for the region like agrifood, manufacturing/engineering and tourism.
There has been a substantial improvement in the North East / North West region since the commencement of the National Action Plan for Jobs in 2012, with an additional 23,000 in employment in Q4 2016 compared to Q1 2012. Moreover, there are now almost 6,800 more people in work in the region since the launch of the Regional Action Plan initiative.
The unemployment rate in the region has fallen from 10.2% in Q1 2015 to 8.0% at present, compared to the national rate of 6.7%.
IDA, Enterprise Ireland (EI), and the Local Enterprise Offices (LEOs) are making a significant contribution to employment in Sligo and Leitrim.
There are currently 27 multinational companies employing over 2,700 people in counties Sligo and Leitrim.
EI companies currently support 1,546 and 922 jobs in Sligo and Leitrim respectively. EI job announcements in 2016 in the North West included LotusWorks (50 jobs in Sligo) and VistaMed (200 jobs in Leitrim).
The Sligo and Leitrim LEOs are fully engaged in supporting the micro-enterprise and small business sectors in their areas to create and sustain jobs. In 2016, the number of jobs that were created by micro-enterprises that had been supported by LEO Sligo and LEO Leitrim were 38 and 44 respectively.
My Department is providing additional funds through the agencies out to 2020. Together with Enterprise Ireland, I am currently finalising plans for a regional initiative of up to €60m to support collaborative approaches to grow and sustain jobs across the regions, and to encourage each county to reach its full potential.
345. Deputy Bríd Smith asked the Minister for Jobs, Enterprise and Innovation if her Department or the Workplace Relations Commission have conducted an analysis on the reason the Labour Court have overturned or varied 53% of adjudication officer decisions in 2016 (details supplied); and if she will make a statement on the matter. [16934/17]
View answerCritically, in 90 per cent of cases, the decision of the Adjudication Officer was accepted by the parties and was not appealed.
With regard to the statistics on appeals published in the WRC’s 2016 Annual Report, and given the time period involved following the establishment of the WRC, the overall numbers of appeals to the Court are low.
As outlined in the WRC Annual Report, the position is that in relation to the decisions issued by the Labour Court in appeals on cases where the original complaint was made after 1 October 2015, of these, 47 per cent were upheld, 20 per cent were overturned and 31 per cent of those appealed were varied, mostly in relation to the quantum of the award. Two appeals were deemed to be outside the time-limits. As such, the vast majority of the decisions issued by the WRC were either accepted by the parties or upheld by the Labour Court.
The Workplace Relations Commission (WRC) is an independent, statutory body established on 1 October 2015 under the Workplace Relations Act 2015.
Section 41 of the Workplace Relations Act 2015 provides that an employee, or his/her representative may present a complaint to the Director General that the employee’s employer has contravened a provision specified in Part 1 or 2 of Schedule 5 of the Act. Where such complaint is presented the Director General shall, subject to section 39, refer the complaint for adjudication by an adjudication officer. A party to proceedings under section 41 may appeal a decision of an adjudication officer to the Labour Court. All appeals to the Labour Court are de novo hearings and turn on the facts of the cases presented by the parties at the hearings.
