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Thursday, 29 Jun 2017

Written Answers Nos. 1 - 33

Brexit Issues

Questions (8)

Catherine Connolly

Question:

8. Deputy Catherine Connolly asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the measures which have been taken to assist small and medium businesses in the Border regions to prepare for all eventualities of the Brexit negotiations; and if she will make a statement on the matter. [25608/17]

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Written answers

Given the extent of North-South trade, I am very conscious of the particular challenges faced by companies operating in close proximity to the border, many of which trade freely on both sides of the border.

Current trade between Ireland and Northern Ireland is extensive and far-reaching. South to North trade in goods was valued at €1.65 billion in 2016 and North to South trade was €1.05 billion. This trade is particularly significant for SMEs – over 15% of Irish SME exports are destined for the Northern Ireland market. 

A recent study undertaken for InterTrade Ireland by the ESRI analyses a so-called “worst-case scenario” whereby WTO tariffs would apply to the trade of goods between the UK and the EU’s Member States. The report’s key findings are that the imposition of WTO tariffs alone would have an effect of reducing cross-border trade by 9%.  In addition to the imposition of WTO tariffs, if the cost of Non Tariff Barriers, e.g. administrative and regulatory requirements were included, this would reduce cross-border trade by 16%. The possible imposition of customs duties on cross border trade could also represent a significant impediment to such trade. 

The Irish Government is engaged at every level in the Brexit negotiations and our trade, economic ties and our land border with the UK are central to these talks and every effort will be made to minimise the impact on the border.  You will recall that at the start of the formal talks between the EU and the UK on the 19 June, the EU’s chief negotiator Michel Barnier specifically referenced the centrality and sensitivity of Ireland’s border with the UK to the negotiations.

Since the UK referendum, the State agencies under my remit - Enterprise Ireland (EI), the Local Enterprise Offices and Inter Trade Ireland - have been active in supporting companies in assessing and addressing their exposure to Brexit.

EI’s current “#Prepare for Brexit” campaign includes a Brexit Scorecard available to all companies to self-assess their preparedness for Brexit across all aspects of their business and which generates a report suggesting appropriate responses.  A €5,000 ‘BePrepared’ grant is also available to clients to prepare a Brexit action plan.

My Department is providing InterTrade Ireland with additional funding this year to establish a new Brexit Advisory Service, which will provide factual advice, supports for capability building and other specialist expertise to SMEs.

Each of the Local Enterprise Offices in the border counties can offer advice, training and mentoring to address Brexit challenges. Each LEO can now offer financial assistance to clients to examine export options, to improve product innovation and improve the competitiveness of their business in the face of Brexit.

I secured new resources, including an extra €52Min Capital funding and funding for the agencies, extra staffing, in Budget 2017 to assist businesses to maintain and grow export markets.

Based on significant analysis and stakeholder consultation, my Department is currently working on further measures targeted at the needs of companies in the wider economy around working capital and business development.

The Regional Action Plan for Jobs for the Border region contains a large number of actions aimed at strengthening the enterprise sector in the region. In particular, the new Regional Enterprise Development Fund of up to €60m was launched on 29th May. This Fund is aimed at supporting collaborative approaches to grow and sustain indigenous enterprise and jobs across the regions of Ireland.

Questions Nos. 9 to 12, inclusive, answered orally.

Military Exports

Questions (13)

Clare Daly

Question:

13. Deputy Clare Daly asked the Tánaiste and Minister for Jobs, Enterprise and Innovation her views on the year on year increase in the value of military exports between 2015 and 2016, from €42 million to €63 million; and if she will make a statement on the matter. [30234/17]

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Written answers

I publish an annual report under the Control of Exports Act 2008 which includes information on military exports. The objective of publishing such a report is to provide the public with a continuing enhanced level of transparency about exports of controlled goods and services.  Export controls are of particular importance to my Department in ensuring compliance with the highest international standards in accordance with international law.  Our policy of free trade and open markets must conform with the core principles of security, regional stability and human rights which underpin export controls. 

In 2015, 81 military licences were issued for exports to 16 countries.  In 2016, 128 military licences were issued for exports to 20 countries.  The increase in the value of licensed military exports between 2015 and 2016 is due mainly to increases in exports to Germany, USA and Singapore.

The EU has a range of sanctions in place in respect of countries engaged in conflicts. All licence applications are considered having regard to these measures.  Sanctions can include arms embargoes and various restrictive measures including prohibitions on the provision of targeted goods and services. My Department observes all arms embargos and trade sanctions when considering export licence applications.

All export licence applications, whether for Dual-Use or Military Goods are subject to rigorous scrutiny.  My officials seek observations on any foreign policy concerns that may arise in respect of a proposed export; such factors are subject to review in the light of developments in a given region and having regard to the 2008 EU Common Position on Arms Exports. Any observations which may arise from this examination are considered in the final assessment of any licence application.

My Department may refuse an export licence, following consultation with the Department of Foreign Affairs and Trade and other EU and Non-EU export licensing authorities, as appropriate.

The Control of Exports Act 2008 provides the legal basis for export controls, the licensing regime and the overall regulatory environment relating to the export of dual-use and military goods.

Departmental Reviews

Questions (14)

Maurice Quinlivan

Question:

14. Deputy Maurice Quinlivan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation if the terms of reference for the review of the Succeed in Ireland initiative have been finalised; the number of submissions received through the public consultation process; and when she expects the review to be completed. [30233/17]

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Written answers

As was announced previously, my Department will soon be commissioning an independent review of the Succeed-in-Ireland programme. That review, which will be carried out after details of the initiative’s full and final costs are available, will equip us with a thorough understanding of the programme’s results and its contribution to employment generation in the State. This is in the interests of good governance and ensuring value for money for the taxpayer.

On the 20th of April my Department launched a public consultation calling for observations on the draft terms of reference for that review. The consultation period ended on 26 May. I am pleased that the consultation process elicited 17 different submissions.

The responses that we received came from a broad range of stakeholders, including public representatives and the general public. Many of the submissions provided general observations on the Succeed-in-Ireland initiative and its perceived strengths. Others provided specific observations on the draft terms of references themselves. All were welcome contributions that will help guide our approach in the time ahead.

There has been no delay in finalising the terms of reference.  My Department is completing the examination of all the responses to the public consultation, a process which will help - as I have indicated - to shape the final text.

I want to take this opportunity to acknowledge that the Succeed-in-Ireland initiative has contributed to the Government’s ongoing efforts to win more foreign direct investment (FDI) and jobs for the people of this country. Securing more FDI will remain a key priority of mine as Minister for Enterprise and Innovation. I look forward to working, together with my Department and its Agencies, to attract more overseas investment and employment to Ireland.

Skills Shortages

Questions (15)

Éamon Ó Cuív

Question:

15. Deputy Éamon Ó Cuív asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the steps she has taken to ensure an adequate supply of chefs for the catering sector; and if she will make a statement on the matter. [30220/17]

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Written answers

The Department of Education and Skills is responsible for education and training provision. This includes ETBs and several Institutes of Technology that are running courses supplying chefs.

Fáilte Ireland has a primary function “To support the training and education and development of persons for the purposes of employment within the Tourism Industry”. Fáilte Ireland falls under the Department of Transport, Tourism and Sport.

My Department has responsibility for the employment permits system. Changes to that system are made on the basis of research undertaken by the Expert Group on Future Skills Needs (EGFSN) in tandem with wider consultation.

Chefs with expertise in a non-EEA cuisine at the level of executive chef, head chef, sous chef and specialist chef are eligible for employment permits and some 83 permits were issued to chefs this year. In 2015 the EGSFN carried out a study on the future skills needs of the hospitality sector. The EGFSN report provides a clear and coherent framework for the development of talent in the hospitality sector in the years ahead to help drive employment growth.

The Study assessed skills demand at all NFQ levels, with a particular focus on career progression opportunities for those at lower skilled levels to help fill anticipated job openings. The report provides a set of recommendations designed to address the skills requirements of the sector over the period to 2020.  While the emphasis is on developing skills in the resident labour market, the report recommends that the role migration can play should be kept under review. 

The lists of highly skilled and ineligible occupations are reviewed twice yearly. The current review will be completed in September. I will then be in a position to determine, based on the evidence available, if any changes are required to the categories of chefs that are eligible for employment permits.

International Bodies Membership

Questions (16)

Maureen O'Sullivan

Question:

16. Deputy Maureen O'Sullivan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation further to Parliamentary Question No. 248 of 30 March 2017, if her Department held further negotiations regarding Ireland joining the European Southern Observatory in view of the potential benefits; and if she will make a statement on the matter. [30399/17]

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Written answers

Innovation 2020, the national strategy for research and innovation, recognised that for Ireland to become a Global Innovation Leader, it must be a member of leading International Research Organisations (IROs). 

Ireland has long-standing membership of the European Space Agency, the European Molecular Biology Laboratory, the European Molecular Biology Conference, EUREKA, COST and CECAM.

As part of the on-going implementation of Innovation 2020, Ireland joined ELIXIR, the European data infrastructure for the life sciences, in July 2016 and Ireland will join LOFAR, the international radio astronomy collaboration, in July 2017. 

Innovation 2020 also recommended that a formal review be undertaken of costs and benefits of existing and potential new IRO memberships every five years.

As was outlined in the reply to the parliamentary question referred to by the Deputy, my department had significant engagement with the European Southern Observatory, at both official and Ministerial level, throughout 2016. The information gathered during these engagements has provided my officials with a comprehensive understanding of the potential benefits of membership and therefore it has not been necessary for my department to hold further formal discussions with the European Southern Observatory since March.

While the potential benefits of membership of the European Southern Observatory are significant, the cost of membership is also significant.

The case for membership is being assessed in the context of other research and innovation priorities.  The cost of membership of the European Southern Observatory comprises a once-off payment of circa €14 million (which may be spread over a number of years) and a recurrent annual cost of circa  €3 million.  My objective is to ensure that we obtain the best overall return on our investment in research and innovation.

Jobs Data

Questions (17)

Thomas P. Broughan

Question:

17. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation her views on the discrepancies between the jobs related information disclosed by the 2016 census and information gathered and published by her Department; and if she will make a statement on the matter. [30244/17]

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Written answers

The Action Plan for Jobs is one of the Government’s key instruments to support job creation. Since the first Plan was launched in early 2012, over 225,000 more people are at work.

My Department does not gather data but uses the official data published by the CSO. I assume the Deputy is referring to the CSO's Quarterly National Household Survey (QNHS), the official source of employment data in the State. My Department uses the QNHS data, which is also used by Eurostat, to monitor performance against our employment targets. The most recent figures available are for Q1 2017.

Census 2016 was taken on the 24th April 2016 and measures employment at a moment in time only.

According to Census 2016, there were 2,006,641 people at work in April 2016. The CSO’s most recent QNHS data release shows that almost 70,000 new jobs were created in the year to Q1 2017, bringing total employment in the State to 2,063,900.

The CSO highlights the differences in methodology between the QNHS, the official source of employment data in the State, and Census 2016. The main differences are that there is a greater degree of precision on the employment status of individuals in the QNHS, than in the Census form. The Census uses a broad definition of whether unemployed or not, while the QNHS asks if the person, in the week before the survey was without work and available for work within the next two weeks, and had taken specific steps in the preceding four weeks, to find work.  In addition, the Census form is completed by the head of household while the QNHS is by face to face interview and the census is a complete enumeration while the QNHS is a sample survey.

My priority is to work closely with Ministerial colleagues to keep us on track to achieve our goal to have an additional 200,000 people at work by 2020, with 135,000 outside Dublin.

Questions No. 18 answered with Question No. 6.

Employment Rights

Questions (19)

Richard Boyd Barrett

Question:

19. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Jobs, Enterprise and Innovation her plans to make a sectoral employment order for teachers and employees in the English as a foreign language sector; and if she will make a statement on the matter. [30476/17]

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Written answers

The Industrial Relations (Amendment) Act of 2015 provides for a new statutory framework – Sectoral Employment Orders - for establishing minimum rates of remuneration and other terms and conditions of employment for a specified class, type or group of workers.  This is in effect a framework to replace the former sectoral Registered Employment Agreement (REA) system which was found to be unconstitutional in 2013 in McGowan - v – The Labour Court. 

The new framework sets down a mechanism whereby at the request, separately or jointly, from organisations substantially representative of employers and/or of workers, the Labour Court can initiate a review of the remuneration and pension and sick pay entitlements of workers in a particular sector and, if it deems it appropriate, make a recommendation to myself as Minister on the matter. If I am satisfied that the process provided for in the 2015 Act has been complied with by the Labour Court, I can then make the Order. Where such an order is made it is known as a Sectoral Employment Order (SEO), will be binding across the sector to which it relates, and will be enforceable by the Workplace Relations Commission.

To-date five applications for SEOs have been made to the Labour Court – one was withdrawn and one was rejected. The remaining three are being considered by the Labour Court.  I am informed that no application has been made on behalf of workers or employers in the teaching English as a foreign language Sector.

Job Initiatives

Questions (20)

James Browne

Question:

20. Deputy James Browne asked the Tánaiste and Minister for Jobs, Enterprise and Innovation her plans to address the high unemployment black spots in the south-eastern region; and if she will make a statement on the matter. [30463/17]

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Written answers

Government policy to reduce unemployment is two-fold.  First, through policies set out in the national Action Plan for Jobs, to create an environment in which business can succeed and create jobs and second, through Pathways to work to ensure that as many of the new jobs and other vacancies that arise in our economy are filled by people taken from the Live Register.

The South East Action Plan for Jobs is another key Government response to supporting employment growth in the South East region.

The core objective of the Plan is to see a further 25,000 at work in the region by 2020 and to reduce the unemployment rate to within 1 percentage point of the State average.

The second progress report on the implementation of the Action Plan has just been published and shows that good progress continues to be made in implementing the actions. Almost 13,000 jobs were created in the South East since the regional Action Plans for Jobs initiative was launched in January 2015.

According to the CSO Quarterly National Household Survey, in Q1 2015 the unemployment rate in the South East was 12.8%. At Q1 2017, the most recent QNHS data available shows the unemployment rate in the South East has dropped by 3.5 percentage points to 9.3%.

Enterprise Ireland companies support over 23,000 jobs across the South East. Total employment among client companies of all LEOs in the region was 6,690 at the end of 2016. The South East is also home to 72 IDA client companies who collectively employ 13,369 people.

To support regional enterprise development, additional funding of up to €60m is being rolled out by Enterprise Ireland over the next 4 years to support the development and implementation of collaborative and innovative projects that can sustain and add to employment at a national, regional and county level.

In addition, additional funding of €150m is being made available to the IDA to support its Regional Property Programme and drive job creation in the multi-national sector.

Job Initiatives

Questions (21)

Brendan Smith

Question:

21. Deputy Brendan Smith asked the Tánaiste and Minister for Jobs, Enterprise and Innovation her plans for specific additional measures to assist job creation in areas such as counties Cavan and Monaghan which will face serious challenges due to Brexit; and if she will make a statement on the matter. [30429/17]

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Written answers

Since the UK referendum, the State agencies under my remit - Enterprise Ireland (EI), the Local Enterprise Offices and Inter Trade Ireland - have been active in supporting companies in assessing and addressing their exposure to Brexit.

EI’s current “#Prepare for Brexit” campaign includes a Brexit Scorecard available to all companies to self-assess their preparedness for Brexit across all aspects of their business and which generates a report suggesting appropriate responses. A €5,000 ‘BePrepared’ grant is also available to clients to prepare a Brexit action plan.

Each of the Local Enterprise Offices in the border counties including Cavan and Monaghan can offer advice, training and mentoring to address Brexit challenges. Each LEO can now offer financial assistance to clients to examine export options, to improve product innovation and improve the competitiveness of their business in the face of Brexit.

My Department is providing InterTrade Ireland with additional funding this year to establish a new Brexit Advisory Service, which will provide factual advice, supports for capability building and other specialist expertise to SMEs.

For exporting companies I secured new resources, including extra staffing, for EI and the LEOs in Budget 2017 to assist businesses to maintain and grow export markets.

Based on significant analysis and stakeholder consultation, my Department is currently working on further measures targeted at the needs of companies in the wider economy around working capital and business development.

The Regional Action Plan for Jobs for the Border region contains a large number of actions aimed at strengthening the enterprise sector in the region. In particular, the new Regional Enterprise Development Fund of up to €60m was launched on 29th May. This Fund is aimed at supporting collaborative approaches to grow and sustain indigenous enterprise and jobs across the regions of Ireland.

Brexit Issues

Questions (22)

Charlie McConalogue

Question:

22. Deputy Charlie McConalogue asked the Tánaiste and Minister for Jobs, Enterprise and Innovation her plans to minimise the impact of Brexit in County Donegal; the detail of engagement she has had with the IDA and Enterprise Ireland; if she will ensure that they secure new investment in County Donegal in view of Brexit; and if she will make a statement on the matter. [30215/17]

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Written answers

Since the UK referendum, the State agencies under my remit - Enterprise Ireland (EI), IDA, the Local Enterprise Offices and Inter Trade Ireland - have been active in supporting companies in assessing and addressing their exposure to Brexit.

EI’s current “#Prepare for Brexit” campaign includes a Brexit Scorecard available to all companies to self-assess their preparedness for Brexit across all aspects of their business and which generates a report suggesting appropriate responses.  A €5,000 ‘BePrepared’ grant is also available to clients to prepare a Brexit action plan.

The IDA is working on a daily basis to pursue opportunities for new foreign direct investment (FDI) that may arise for Ireland on account of Brexit. The Agency, when promoting Ireland as an FDI location - whether Brexit related or otherwise - particularly emphasises the benefits of locating in regional areas such as Donegal.

Each of the Local Enterprise Offices in the border counties including Donegal can offer advice, training and mentoring to address Brexit challenges.  Each LEO can now offer financial assistance to clients to examine export options, to improve product innovation and improve the competitiveness of their business in the face of Brexit.

My Department is providing InterTrade Ireland with additional funding this year to establish a new Brexit Advisory Service, which will provide factual advice, supports for capability building and other specialist expertise to SMEs.

For exporting companies I secured new resources, including extra staffing, for EI and the LEOs in Budget 2017 to assist businesses to maintain and grow export markets.

Based on significant analysis and stakeholder consultation, my Department is currently working on further measures targeted at the needs of companies in the wider economy around working capital and business development.

The Regional Action Plan for Jobs for the Border region contains a large number of actions aimed at strengthening the enterprise sector in the region. In particular, the new Regional Enterprise Development Fund of up to €60m was launched on 29th May. This Fund is aimed at supporting collaborative approaches to grow and sustain indigenous enterprise and jobs across the regions of Ireland.

Employment Rights

Questions (23, 28)

Bríd Smith

Question:

23. Deputy Bríd Smith asked the Tánaiste and Minister for Jobs, Enterprise and Innovation if her attention has been drawn to the widespread use of bogus self-employment contracts in the English language teaching industry alongside other practices such as dismissing workers at holiday periods; her plans to undertake an investigation into the employment practices among companies in this sector; and if she will make a statement on the matter. [30410/17]

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Mick Barry

Question:

28. Deputy Mick Barry asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the measures her Department will take to support efforts to eliminate bogus self-employment practices in the English language teaching sector; and if she will make a statement on the matter. [30408/17]

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Written answers

I propose to take Questions Nos. 23 and 28 together.

Ireland has a comprehensive body of employment legislation, in respect of which the Workplace Relations Commission (WRC) is mandated to secure compliance.  Ireland’s employment rights legislation protects all employees who are legally employed on an employer-employee basis. 

All employers, including those in the English language teaching sector, carry the same obligations in relation to compliance with employment law.  Where an individual believes they are being deprived of employment rights applicable to employees they may refer a complaint to the Workplace Relations Commission (WRC) where the matter can be dealt with by way of mediation or adjudication leading to a decision that is enforceable through the District Court. WRC inspectors can also be asked to investigate certain breaches. Complaints can be made on a single complaint form available at the WRC’s website www.workplacerelations.ie.  Should the Deputies be aware of specific cases where there are breaches of employment laws they may wish to contact the WRC directly.

There are existing mechanisms in place to determine the employment status of individuals or groups.  WRC Inspections are undertaken on the basis of risk analysis which identifies certain sectors, as a result of complaints received and on a routine basis.  Where the WRC inspection service receive complaints in relation to bogus self-employment, they are forwarded to the Revenue Commissioners and/or the Department of Social Protection (Scope Section) for investigation either solely by the recipient, or jointly with the Workplace Relations Commission.

It is important that individuals are correctly designated regarding their employment status so that those who ought to be designated as employees are not deprived of their employment rights. This is particularly the case for vulnerable workers who may not feel in a position to object to certain arrangements. However, it is also important to remember that some individuals may be correctly categorized as self-employed.

In most cases it will be clear whether an individual is employed or self-employed.  Where there is doubt in relation to the employment status of an individual the relevant Departments and Agencies will have regard to the Code of Practice for Determining Employment or Self-Employment Status of Individuals.  This Code was drawn up and agreed in 2007 by the relevant Government Departments with ICTU and IBEC.

Brexit Issues

Questions (24)

Niall Collins

Question:

24. Deputy Niall Collins asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the contingencies and supports in place to safeguard businesses and exports from a hard Brexit scenario; her views on current EU State aid rules to protect enterprises and related jobs; and if she will make a statement on the matter. [30222/17]

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Written answers

My Department and its agencies are fully engaged in supporting companies to prepare for Brexit. Enterprise Ireland’s (EI) #PrepareforBrexit communications campaign featuring the ‘Brexit SME Scorecard’ was launched in March.  The Scorecard is an interactive online platform which can be used by all Irish companies to self-assess their exposure to Brexit. 

EI has introduced a ‘Be Prepared Grant’ which offers up to €5,000 for exporting client companies to conduct further research and  use external expertise to develop a Brexit Action Plan. Enterprise Ireland also launched its Eurozone Strategy which aims to increase exports to the Eurozone by 50% by 2020.

The Local Enterprise Offices and Inter Trade Ireland are offering a range of Brexit focused supports to companies, including those engaged in cross-border trade with Northern Ireland.

Based on significant analysis and stakeholder consultation my Department is currently working on further measures targeted at identified needs of companies around working capital and business development.

These measures are being considered in the context of existing State Aid rules.

As the situation evolves, and we get a better idea of impacts on enterprise in a post Brexit landscape, we will almost certainly need to have further discussions with the Commission in order to ensure that we take sufficient measures in good time to provide support to our most impacted companies and sectors.

Foreign Direct Investment

Questions (25)

Bernard Durkan

Question:

25. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the extent to which she is satisfied that Ireland remains an attractive location for foreign direct investment notwithstanding developments at EU level, Brexit or geopolitical changes globally; her views on whether the 12.5% corporation tax rates here will remain notwithstanding challenges; and if she will make a statement on the matter. [30485/17]

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Written answers

Ireland is and will continue to be an attractive location for foreign direct investment.  

As a small open economy Ireland punches above its weight and attracts significant levels of inward investment.

The number of new investments secured by IDA Ireland in 2016 rose by almost 12% against a background of global economic uncertainty, intense competition and a changing global tax landscape.

There are now almost 200,000 people employed in IDA Ireland, the highest in the history of the Agency.

IDA Ireland client companies account for approximately 10% of the private sector jobs in the economy, a very important contribution to our overall economy.   

Ireland attracts foreign direct investment for a wide variety of reasons including that:

- We are English speaking;

- We are committed members of the European Union with barrier free-access to over 500 million consumers;

- We have a strong pool of highly skilled workers and a first-class education system that produces top graduates;

- We have a clear, certain, consistent and competitive corporate tax rate of 12.5% on trading income and competitive regime with incentives for research and innovation.

There have been many developments in international taxation, including the OECD's Base Erosion and Profit Shifting (BEPS) initiative and legislative proposals from the European Union in recent years.  Ireland actively participates and will ensure that our corporation tax code meets these new international standards, is competitive and delivers tax certainty for business.  This is reflected in the update of Ireland's International Tax Strategy 2016 and in the ongoing Review of the Corporation Tax Code by Seamus Coffey.

Ireland's 12.5% corporate tax rate on trading income will not be changed and nobody is asking for it to be changed, as clearly articulated by the then Minister for Finance in his 2017 Budget speech.

Job Initiatives

Questions (26)

Robert Troy

Question:

26. Deputy Robert Troy asked the Tánaiste and Minister for Jobs, Enterprise and Innovation her plans to deal with the high level of unemployment in County Longford and Mullingar as confirmed in recent reports. [30501/17]

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Written answers

Government policy to reduce unemployment is two-fold.  First, through policies set out in the national Action Plan for Jobs, to create an environment in which business can succeed and create jobs and second, through Pathways to work to ensure that as many of the new jobs and other vacancies that arise in our economy are filled by people taken from the Live Register.

The Midlands Action Plan for Jobs is another key Government response to supporting employment growth in the Midlands region.

The core objective of the Plan is to see a further 14,000 at work in the region by 2020.

The second progress report on the implementation of the Action Plan has just been published and shows that good progress is being made. Almost 7,600 jobs were created in the Midlands since the Regional Action Plans for Jobs initiative was launched in January 2015.

The unemployment rate in the region has fallen from 12.5% in Q1 2015 to 7.8% in Q1 2017, compared to a State average in Q1 2017 of 6.7%.

Live register numbers have fallen in County Longford and Mullingar by over 13% and over 11% respectively in the past 12 months.

The Enterprise Agencies are working hard to drive job creation in the region.

Enterprise Ireland companies currently support 2,886 jobs in Longford and 3,653 jobs in Westmeath. 

Total employment among LEOs Longford and Westmeath clients were 1,061 and 1,375 respectively at the end of 2016.

Longford and Westmeath are together home to 17 existing IDA Ireland clients who between them employ over 3,200 people.

To support regional enterprise development, additional funding of up to €60m is being rolled out by Enterprise Ireland to support the development and implementation of collaborative and innovative projects.

In addition, additional funding of €150m is being made available to the IDA to support its Regional Property Programme.

International Bodies Membership

Questions (27)

James Lawless

Question:

27. Deputy James Lawless asked the Tánaiste and Minister for Jobs, Enterprise and Innovation if she has assessed the considerable economic, educational and research opportunities that the State could avail of as a member of CERN; if her Department is engaging with the possibility of Ireland joining CERN as soon as possible; and if she will make a statement on the matter. [30413/17]

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Written answers

Innovation 2020, the national strategy for research and innovation, recognised that for Ireland to become a Global Innovation Leader, it must be a member of leading International Research Organisations (IROs).

Ireland has long-standing membership of the European Space Agency, the European Molecular Biology Laboratory, the European Molecular Biology Conference, EUREKA, COST and CECAM.

As part of the on-going implementation of Innovation 2020, Ireland joined ELIXIR, the European data infrastructure for the life sciences, in July 2016 and Ireland will join LOFAR, the international radio astronomy collaboration, in July 2017.

Innovation 2020 also recommended that a formal review be undertaken of costs and benefits of existing and potential new IRO memberships every five years. Innovation 2020, contains actions to initiate negotiations with CERN on Ireland's membership options.

Discussions with CERN commenced in 2016 and senior officials from my department, Enterprise Ireland and Science Foundation Ireland visited CERN in July 2016. The Director-General of CERN visited Dublin in October 2016 and met with former Minister Mitchell O’Connor. The information gathered during these engagements has provided my officials with a comprehensive understanding of the potential benefits of membership of CERN.

While the potential benefits of membership of CERN are significant, the cost of membership is also significant. 

The cost for Ireland to become a full member of CERN would be approximately €15 million per annum.  Alternatively, Ireland could become an Associate Member for 10% of this of cost (€1.5 million per annum).  However for Associate Membership, there is a corresponding reduction in the benefits available such as access to contracts for enterprise.

The case for membership of CERN is being assessed in the context of other investment priorities.

Question No. 28 answered with Question No. 23.

Economic Competitiveness

Questions (29)

Niall Collins

Question:

29. Deputy Niall Collins asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the steps being taken to reverse the continual fall in business competitiveness levels and making Ireland an attractive location for businesses to locate, particularly competitiveness standing with the UK; and if she will make a statement on the matter. [30226/17]

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Written answers

Ireland’s competitiveness performance is particularly vital in light of the challenges posed by Brexit. The IMD World Competitiveness Yearbook published this month shows Ireland’s competitiveness ranking has improved for the third year in a row. We are now ranked the 6th most competitive economy in the world and 2nd most competitive in the Euro area.  This is our best performance since 2000. It reflects significant and continuous improvements in rankings related to economic performance, business efficiency, government efficiency and infrastructure. It is an important signal to international  investors. The UK is ranked 19th, a fall of one place since last year.

In 2016, Ireland's ranking improved from 24th to 23rd out of 138 countries in the 2016 World Economic Forum Global Competitiveness Report. The World Bank's Ease of Doing Business report shows Ireland is ranked 18th, ahead of the UK in terms of ease of starting a business and paying tax but behind in the overall rankings.

Brexit means we must do more to enhance our attractiveness as a location to start and grow a business. Recent reports by the National Competitiveness Council have highlighted the need to continually enhance competitiveness performance. I share the Council’s view that to further improve competitiveness we must preserve fiscal sustainability, maximise investment in infrastructure and talent, maintain cost competiveness, and drive innovation and productivity across all economic sectors.

As Minister for Jobs, Enterprise and Innovation, my focus is on ensuring Ireland enhances its competitiveness as a location in which to run a business. Through the Action Plan for Jobs, my Department is working to improve the ease and cost of doing business, increase enterprise innovation capacity and productivity. We are driving the implementation of our research strategy, Innovation 2020. We are putting more people on the ground in foreign markets to attract investment, assisting Irish businesses which export to the UK and helping others diversify into new products and markets. Competitiveness is key to success in international markets. Facilitating businesses to improve their competitiveness will remain a key focus for my Department.

Employment Rights

Questions (30)

Bríd Smith

Question:

30. Deputy Bríd Smith asked the Tánaiste and Minister for Jobs, Enterprise and Innovation her plans to ensure companies in the security industry comply with the recent employment regulation order which raised the hourly wage rate to €11.05; and if she will make a statement on the matter. [30411/17]

View answer

Written answers

The Inspection and Enforcement Services of the Workplace Relations Commission (WRC) monitor employment conditions to ensure compliance with and, where necessary, the enforcement of employment rights legislation. This includes redress for the employees concerned and payment of any unpaid wages arising from breaches of employment rights.   

The Industrial Relations Act 2012 provides for the making of Employment Regulation Orders (EROs) whereby proposals on pay and other terms and conditions are formulated by Joint Labour Committees (JLCs) and adopted by the Labour Court if the Court is satisfied that the JLC has complied with the relevant Sections of the 2012 Act. The Labour Court then makes a recommendation to the Minister who if satisfied that the Act has been complied with will make an Employment Regulation Order, the terms of which are legally enforceable and applicable to all employers in those sectors.

If enterprises that are covered by Employment Regulation Orders are experiencing severe financial difficulties they may apply to the Labour Court for an exemption from their obligation to pay the rates provided for in the Orders for a specified period of time. The criteria relating to these exemptions are provided for in the Industrial Relations (Amendment) Act 2012.

Prior to the 1 June last, SI No. 417 of 2015 Employment Regulation Order (Security Industry Joint Labour Committee) 2015, which came into operation on 1 October 2015 applied in the sector. The following table sets out the detail relating to inspections carried out in the Security Sector between 1 October 2015 and 31 May 2017.

Security Sector   

No. Inspections  

No. of Employers in Breach  

Security Sector   

No. Inspections  

No. of Employers in Breach  

Oct-Dec 2015

3

2

2016

17

5

2017 (to 31 May)

5

2

Employment Regulation Order (Security Industry Joint Labour Committee) 2017 (SI No. 231 of 2017) came into effect from 1 June last and revokes the 2015 Order.  It is anticipated that a similar number of inspections will be carried out in the sector this year as compared to last year. 

Employees in the sector who feel that their employment rights have been contravened can make a complaint to the WRC. The Commission’s Information Officers may also be contacted at 1890 808090 or through the website www.workplacerelations.ie for information on employment rights and entitlements.

Question No. 31 answered with Question No. 11.

Foreign Direct Investment

Questions (32)

Thomas P. Broughan

Question:

32. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the annual cost to the State of new jobs in foreign direct investment; if this figure includes special tax reliefs awarded to incoming foreign direct investment executives; and if she will make a statement on the matter. [30243/17]

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Written answers

Cost Per Job Sustained (CPJS) is the mechanism used by IDA Ireland to assess the cost of each job sustained and supported by the Agency. Tax reliefs are not included in the calculation.

The CPJS measures the level of first time jobs created during a seven year period against IDA Ireland grants paid over that same period of time.  Only jobs created during and sustained to the end of each seven year period are reflected in the calculations.

The annual cost per job sustained from 2008 to 2015 is set out in the following table.  Figures for 2010-2016 will be available following the publication of the Agency's annual report in July.

IDA Ireland Cost per Job Sustained

 -

2002/2008

2003/2009

2004/2010

2005/2011

2006/12

2007/13

2008/14

2009/15

Cost per job sustained

€12,029

€13,776

€13,960

€13,876

 

€13,457

€12,716

€11,852

€10,553

 

Job Creation

Questions (33, 38)

Thomas Byrne

Question:

33. Deputy Thomas Byrne asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the efforts being made to promote and attract more industry and business to the IDA site at Drogheda, County Meath. [30212/17]

View answer

Thomas Byrne

Question:

38. Deputy Thomas Byrne asked the Tánaiste and Minister for Jobs, Enterprise and Innovation her priorities and plans regarding jobs and investment in County Meath. [30213/17]

View answer

Written answers

I propose to take Questions Nos. 33 and 38 together.

As Minister for Enterprise and Innovation, I am fully committed to the creation of high-quality and sustainable employment across Ireland, including in County Meath. Significant progress has already been made towards achieving the IDA's regional development targets of a 30% to 40% increase in foreign direct investment (FDI) in every region outside Dublin and I am now determined to grow FDI-driven job creation further outside of our main urban areas.

The IDA markets Meath as part of its Mid-East region, which also incorporates Kildare and Wicklow. The wider area is home to 56 multinational companies, 17 of which are located in Meath. The County's proximity to transport hubs and population centres are amongst its key strengths. The IDA is working hard to secure new investment for Meath and it continues to draw the attention of investors to the County.

As regards the business park in Drogheda, the IDA is actively marketing the facility to existing and potential clients. Currently the park is home to one Agency client that employs approximately 250 people. The remaining vacant space in the park is suitable for FDI and the IDA is hopeful of securing more investment for it.

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