Written Answers Nos. 44-63
44. Deputy Niamh Smyth asked the Tánaiste and Minister for Business, Enterprise and Innovation if there are incentives for companies changing from instore sales to online sales (details supplied); and if she will make a statement on the matter. [43239/17]
View answerThe Local Enterprise Office (LEO) in Cavan is the ‘first-stop-shop’ for advice and guidance, financial assistance and other ‘soft’ supports such as training and mentoring.
The LEOs provide a ‘signposting’ service in relation to all relevant State supports available through agencies including Revenue, the Credit Review Office and Microfinance Ireland. The LEOs can also offer advice and guidance in areas such as Local Authority rates, Public Procurement and other regulations affecting business.
The LEOs can offer direct grant aid to microenterprises (10 employees or fewer) in the manufacturing and internationally traded services sectors which, over time, have the potential to develop into strong export entities. Subject to certain eligibility criteria, the LEOs can provide financial assistance within three main categories: Feasibility Grants (investigating the potential of a business idea); Priming Grants (to part-fund a start-up); and Business Development Grants for existing businesses that want to expand. In addition a Technical Assistance Grant may be available for eligible micro-exporter applicants who are seeking to explore alternative markets for their product or service.
Micro-enterprises may also avail of the Trading Online Voucher Scheme (TOVS) from the LEOs. The Scheme offers the opportunity for businesses to develop their website or digital marketing strategy by availing of vouchers of up to €2,500 or 50% of eligible expenditure.
Anyone with a viable business proposal can also use the LEO to make an application to MicroFinance Ireland, which offers support in the form of loans of up to €25,000 to start-ups with viable business propositions that do not meet the conventional risk criteria applied by the banks. Successful applicants can avail of a more favourable interest rate from MFI if they make their application through the LEO.
I should also draw your attention to the ‘Supporting SMEs’ Online Tool, which is a cross-governmental initiative to help start-ups navigate the range of Government business supports for which they could be eligible. The tool is available at www.supportingsmes.ie. By answering the eight questions in the Online Tool, a small business will, in one location, be able to:
- find out which of the over 170 Government business supports from 27 different Government Departments, Agencies and Initiatives are available to them;
- obtain information on the range of Government supports for accessing credit;
- identify their nearest Local Enterprise Office where they can discuss the outcomes of the guide further; and
- download all these filtered results into a document for their further use.
LEO Cavan is located in Cavan Innovation & Technology Centre, Dublin Road, Cavan and can be contacted at 049 4377200 or localenterprise@cavancoco.ie.
45. Deputy Eugene Murphy asked the Tánaiste and Minister for Business, Enterprise and Innovation the position regarding the creation of 50 new jobs in Roscommon town by a company (details supplied) that was announced in June 2015 but have not been delivered; and if she will make a statement on the matter. [43312/17]
View answerThe company in question announced plans in 2015 to establish a facility in the IDA Business Park in Roscommon Town to manufacture ophthalmic products.
A total of 50 jobs were announced at the time, to be created over a seven year period. I understand that 12 staff are now employed at the facility and that the company remains on track to create the remainder of the planned positions over the next five years.
46. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the degree to which she and her Department are making provision for the negative impact of Brexit, with particular reference to the industries here most likely to be negatively affected; and if she will make a statement on the matter. [43325/17]
View answerEven in advance of the UK referendum result the analytical capacity of Government had been set in motion, identifying risks and preparing responses that would best protect the interests of Irish citizens and enterprises, regardless of out the outcome.
The Government is intensifying its focus on the economic implications of Brexit, including on domestic policy measures to reinforce the competitiveness of the Irish economy, to strengthen it to deal with potential negative impacts of Brexit, and to pursue all possible opportunities that might arise. The Department of Jobs, Enterprise and Innovation (DJEI) plays a key role in the
In terms of the Government’s response to Brexit, we are building an evidence base to inform policy decisions, relating to both our immediate support for enterprise and our longer term desired outcomes from the negotiations. This incorporates an extensive suite of studies (both externally commissioned and in-house research) and surveys, addressing the key enterprise aspects of Brexit.
- In April my Department published the outputs from a series of structured engagements with companies (of different sizes, across different sectors and across the regions) and from a survey of a thousand SME business owners to "Understand the Implications of Brexit for Irish SME’s".
- A study analysing the "Potential Impact of WTO Tariffs on Cross-Border Trade" has been published in conjunction with InterTrade Ireland. This study provides an understanding of the impact of different trade and tariff regimes which might be imposed following Brexit, together with data on the extent and concentration of Cross Border Trade, including information on this trade by product and firm types, and barriers to exporting, all in the context of Brexit.
In terms of ongoing research commitments, the Department is currently working on:
- A major study examining the "Strategic Implications arising from EU-UK Trading Patterns". This study will provide an evidence base on key trade and investment questions to inform Ireland’s position as part of the wider negotiation on the UK’s future relationship with the EU. It will quantify the possible impact of a range of Brexit scenarios on trade and investment and will provide significant data on possible sectoral impacts of Brexit.
- A study examining the "Sectoral implications arising from Brexit" focused on 18 sectors most exposed to the UK is underway and is due to be completed by end 2017. This research examines the implications at firm-level for Ireland’s most exposed enterprise sectors of the UK being outside of the European Single Market and Customs Union. The study is expected to be completed by end 2017.
- A study examining the "Import Content of Irish Exports: Implications of Brexit for Inputs and Competitiveness" and the extent to which Irish firms source intermediate inputs from the UK has just commenced. This research will provide empirical evidence on the import content of Irish firms’ exports, how firms and sectors may be exposed to changes in the trading environment after Brexit and the impact of Brexit on inputs, and competitiveness.
- A study examining the "Skills needs arising from the Potential Trading and Regulatory Implications of Brexit" has commenced – with a particular focus on sectors such as logistics and freight. This research is being undertaken in my Department on behalf of the Expert Group on Future Skills Needs.
Informed by this evidence base and extensive stakeholder engagement, we are inputting to and helping to shape the Irish position in the negotiations regarding the UK’s exit from the EU. DBEI officials based in the Permanent Representation in Brussels, the Embassy London and at the WTO in Geneva are also essential to this work, engaging with other Member States and institutions and sharing intelligence with the wider Departmental system.
At Ministerial and official level we are central to the diplomatic effort across Government engaging our EU partners including the European Commission, individual Member States and the European Parliament.
This has led to a much greater understanding and appreciation across the EU of the uniqueness of Ireland’s relationship with the UK and the potential impact of Brexit on Ireland – including the impacts at a sectoral level.
We are also engaging with counterparts in the UK at Ministerial and official level to deepen bilateral contacts generally and to ensure that our concerns regarding the potential impact of Brexit on Irish enterprise in particular are well understood.
In terms of our policy response, the focus has been to assess the possible implications and impacts of Brexit across policy areas of the Department and to ensure that the necessary supports are in place.
We are leveraging the expertise and enhancing the capacity of our Enterprise Agencies to ensure that they are in the best possible position to address the needs of their client in relation to competitiveness, innovation and market diversification. This is being achieved through the provision of information, training and other supports.
I have also secured an additional €3 million to enable the recruitment of a further 40-50 staff as part of DBEI 'Boots on the Ground'. This will bring the total additional Brexit related posts in the Department and across the Agencies to 100 in 2018.
Enterprise Ireland is key in this regard. In responding to Brexit, Enterprise Ireland’s strategy is to support clients in sustaining and growing exports to the UK while also encouraging and supporting diversification into new markets outside the UK.
EI is in regular contact with some 600 clients across all sectors who are most reliant on the UK market; there is a particular focus on sectors such as food, construction and engineering that are most exposed to the UK and which provide major employment across all the regions.
EI’s 'Brexit SME Scorecard' is an interactive online tool which can be used by all Irish companies to self-assess their exposure to Brexit. The tool prompts companies to consider the potential impact of Brexit across their business and provides suggested actions.
EI has introduced a 'Be Prepared Grant' which offers up to €5,000 in funding to support exporting client companies to research and develop a Brexit Action Plan.
Likewise, the Local Enterprise Offices are key points of context for engagement with enterprise. The LEO’s are organising local workshops, seminars and training to assist companies to better understand the challenges of Brexit. LEOs also have a range of supports to help clients to respond to those challenges, to become more competitive and to source new markets.
Finally, we are targeting State supports to help vulnerable firms to adapt, in order to reinforce enterprise and employment, across all sectors and regions. In Budget 2018, a new €300 million Brexit Loan Scheme was announced to provide affordable financing to Irish businesses that are either currently impacted by Brexit or will be in the future. The new scheme is open to all trading SMEs and large firms employing less than 500.
In addition, I have asked my officials to progress with the Department of Finance and the SBCI and EIB the development of a Longer-Term Loan Scheme, together with a new Business Advisory Hub service, which would focus on business development to allow enterprises to position them for a post-Brexit environment.
Of course, there may also be sectoral opportunities as a result of Brexit. IDA continues to identify potential for mobile FDI in key sectors and actively pursue these opportunities including through targeted trade missions and rollout of advertising campaigns to promote Ireland’s offering particularly in talent and tax.
Financial Services is a key sector where we have strengths and opportunities. IDA is taking a targeted but realistic approach to pursuing these opportunities - this is being done in the context of upholding regulatory standards that apply in Ireland managed by the Central Bank.
47. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which she and her Department have continued to monitor the availability of the requisite skills in the workplace, having regard to the skills requirements of the high-tech industry; and if she will make a statement on the matter. [43326/17]
View answerThe Department of Business, Enterprise and Innovation, through the Expert Group on Future Skills (EGFSN), continuously monitors and advises the Government on future skills requirements and associated labour market issues that impact on the national potential for employment growth.
The EGFSN is an independent, non-statutory body, which includes representatives from the business community, trade unions, and a small number of Government Departments and agencies. My Department provides the Group with research and Secretariat support.
High level ICT skills have been a key concern of the EGFSN since 2013, when it undertook the study Addressing Future Demand for High-Level ICT Skills. This study included a demand forecast for such skills, both in the ICT sector and across other sectors of the economy, over the period 2013-2018. A related objective was how Ireland could retain and attract high-level ICT Skills to address immediate high level ICT skills recruitment needs.
The findings and recommendations of this report were essential inputs into the development of the ICT Skills Action Plan 2014-2018. At official level, my Department has also been involved in the High Level Steering Group responsible for monitoring the implementation of the ICT Skills Action Plan.
As the Department of Education and Skills looks to develop a new ICT Skills Action Plan for the coming years, the EGFSN is now engaged in a refresh of the demand forecast exercise undertaken in 2013, for the period 2017-2022. This forecast is scheduled for completion in Q1 2018.
48. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which she and her Department continue to monitor impediments likely to impact on business throughout the country, with particular reference to the need to ensure the availability of indigenous foreign investment of a business-friendly environment with consequent employment opportunities; and if she will make a statement on the matter. [43327/17]
View answerOn identifying impediments, one of the primary tools I have as Minister to hear from SMEs, who account for 99.8% of enterprises in Ireland, is through the Advisory Group on Small Business (AGSB). The AGSB was set up to give a greater voice in the development of policy to SMEs. Issues negatively affecting the growth and development of SMEs are identified, and possible solutions are suggested by the Group. My colleague, Minister of State for Trade, Employment, Business, EU Digital Single Market and Data Protection, Pat Breen TD, chairs the group and will ensure we continue to monitor current and impending impediments impacting on business.
Another formal structure is the Retail Consultation Forum. Given the importance of this sector to the economy it was established is to allow key issues of relevance to the retail sector to be discussed, with a view to identifying practical actions which could be taken by Government, or by industry itself, to support the sector with particular emphasis on achieving sustainable jobs growth in the sector.
As well as these formal structures, my Department regularly undertakes consultation exercises on various matters that are open to SMEs and their representative organisations to provide input.
Another method my Department uses to monitor any potential impediments to the business environment is Ireland’s Small Business Act (SBA) Factsheet by the European Commission, the latest annual report being published in November 2016. The Small Business Act for Europe (SBA) is the EU’s flagship policy initiative to support small and medium-sized enterprises (SMEs). It comprises a set of policy measures organised around 10 principles.
2016 Report on Ireland:
This 2016 report shows once again that Ireland has one of the most SME friendly environments in the EU.
Ireland features among the top three performers in the EU in two of those ten principles:
- Skills & innovation of SMEs, and
- Single market (Single market refers to the integration and interaction of a countries administration and SME’s to the Single Market).
Ireland performs well above the EU average in three other SBA areas:
- Entrepreneurship
- Second chance, and
- Responsive administration
In addition, my Department, as set out in the Action 166 of the APJ 2016, began monitoring a range of nationally and internationally available indicators to assess national performance across the entrepreneurship ecosystem in order to inform policy relating to new and growing businesses.
The reason behind this measurement exercise was to identify Ireland's international performance in each of the six fields in the ecosystem for entrepreneurship. They are:
1. Culture, human capital and education
2. Business environment and supports
3. Innovation
4. Access to finance
5. Entrepreneurial networks and mentoring and
6. Access to markets.
By assessing Ireland’s performance in each field through a number of internationally respected entities, we can see the lay of the land in our ecosystem.
When viewed, the measurements show good to excellent performance in a number of fields, particularly Business Environment and Innovation. In the Access to Finance field, it appears that the SME sector, of which entrepreneurs are a cohort, rely heavily on reinvesting profits and inter trade lending. They appear to be below the mean, when compared with their EU counterparts, in accessing finance from banks. This impediment is being addressed by the SBCI and the Credit Guarantee Scheme.
Overall, the picture painted from the indicators shows that Ireland is a positive environment in which to create and operate a business.
49. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the degree to which she and her Department continue to encourage start-up enterprises in all regions; the issues identified to date as being likely to impede progress; and if she will make a statement on the matter. [43328/17]
View answerEnterprise Ireland supports companies in regional and rural areas to start, innovate and remain competitive in international markets, now and into the future.
The 5,000 manufacturing and internationally traded services companies that Enterprise Ireland works with are a critical source of existing employment and job creation in every county in Ireland. In 2016, Enterprise Ireland supported companies employed 201,108 people (173,868 FTE and 27,240 other). Within this, 19,244 new jobs were created resulting in a net gain of 9,117 jobs.
65 per cent of Enterprise Ireland client employment is outside of Dublin. 42.2 per cent of client employment is outside the five counties which are home to the five urban centres (Dublin, Limerick, Galway, Waterford and Cork). 36 per cent of the net new jobs created in 2016 by Enterprise Ireland support clients were outside of this geographic region. From interactions with clients, the agency is seeing companies that are born in rural locations, creating jobs in rural areas and innovating to provide globally competitive product for international markets.
Enterprise Ireland has 10 regional offices throughout Ireland including offices in Athlone, Tralee, Letterkenny, Sligo, Shannon and Dundalk. This enables Enterprise Ireland to connect and collaborate at a local level with enterprise development partners to assist in driving the multiagency response required to encourage start-up enterprises.
Enterprise Ireland provides a range of financial and non-financial supports for start-up enterprises throughout the country, such as:
- The National Entrepreneurial Development Programme delivered in partnership with Institutes of Technology through the country.
- A Competitive Start Fund ran by the agency to accelerate the growth of start-up companies that have the capability to become High Potential Start-Up (HPSU) Companies. This fund routinely targets specific sectors, regions and cohorts to ensure that the assets of the state are utilised to promote start-up enterprises and to drive job creation. In 2016, 128 new start-up enterprises were approved funding under this initiative.
- Equity investment High Potential Start-ups (HPSUs) with the potential to develop an innovative product or service for sale on international markets and the potential to create 10 jobs and €1m in sales within 3 to 4 years of starting up. 101 new High Potential Start-Ups were supported in 2016, 48% of which were from outside Dublin.
- Enterprise Ireland has a service level agreement with four Business Incubation Centres through the country to assess, advise, validate and progress early stage-business plans of Enterprise Ireland clients to an investor ready stage-point, with an objective of driving the number of High Potential Start-Ups approved each year by Enterprise Ireland.
- In 2016, Enterprise Ireland’s entrepreneurship programmes had 407 participants. In 2016 there was six newly established funds under the Seed & Venture Capital Scheme (2013- 2018) making additional funds of over €330 million available for investment in Irish companies.
- Enterprise Ireland has funded campus incubators in every Higher Education Institute throughout the country. These facilities are internationally recognised as an important element of public assistance for technology-intensive start-ups. These facilities are also an important driver of regional development with the majority of companies remaining in their region after they have completed their incubation period.
- Under the 2015-2017 Accelerator Development Scheme, Enterprise Ireland has funded two accelerators outside of Dublin to enhance the start-up eco-system in their region. More accelerators will be announced in due course.
At local level, the advent of the Local Enterprise Offices (LEOs) has enabled Enterprise Ireland to play a critical role in driving and nurturing entrepreneurship from the original local level idea, through to successfully competing in global markets.
The LEOs were established as the ‘first-stop-shops’ for advice and guidance, financial assistance and other supports for anyone who intends to start or grow their own business. In the first instance, the LEOs provide a ‘signposting’ service in relation to all relevant State supports available through agencies such as Revenue, the Department of Social Protection, Education and Training Boards, Credit Review Office, and Microfinance Ireland. The LEOs can also offer advice and guidance in areas such as Local Authority rates, public procurement and other regulations affecting business.
There are a range of supports available from the LEOs to assist start-ups. The LEOs can offer direct grant aid to microenterprises (10 employees or fewer) in the manufacturing and internationally traded services sectors which, over time, have the potential to develop into strong export entities. These include feasibility grants (investigating the potential of a business idea) and priming grants (to part-fund a start-up). In 2016, over €7 million in priming grants was approved for 357 new LEO clients across the country.
Anyone with a viable business proposal can also use the LEOs to make an application to MicroFinance Ireland, which offers support in the form of loans of up to €25,000 to start-ups with viable business propositions that do not meet the conventional risk criteria applied by the banks. Successful applicants can avail of a more favourable interest rate from MFI if they make their application through the LEO.
The LEOs attracted 1,471 applicants to the Ireland’s Best Young Entrepreneur (IBYE) 2018 competition by the closing date at the end of September 2017. IBYE is a programme run by the 31 LEOs with the support of my Department and Enterprise Ireland and is aimed at encouraging entrepreneurship as a career choice among young people. The competition is open to people between the ages of 18 and 35 with an innovative business idea and has an investment fund of up to €2 million.
The LEOs also run promotional events such as the National Women’s Enterprise Day and the Local Enterprise Week, which are aimed at, inter alia, promoting the LEO services and encouraging people to start or grow a business. These events are supplemented by LEO participation in other promotional events such as the National Ploughing Championships and the forthcoming Taking Care of Business event in Dublin Castle on 8 November.
50. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which innovation continues to be a feature of enterprise and investment here; if she has satisfied herself that new enterprises have adequate access to innovation technology and-or appropriate assistance from the European Union; and if she will make a statement on the matter. [43329/17]
View answerResearch, Development and Innovation (RDI) is globally recognised as the key economic differentiator and, as such, a very important feature of enterprise and investment in Ireland. Put simply, RDI enables Irish companies to make products and services that are innovative, competitive and more novel than those in global markets. This continued innovation helps to insulate us from market shocks, such as those posed by Brexit.
Enterprise Ireland, an agency of my Department, has a role in this regard either by: supporting Irish companies to carry out RDI within their company; by collaborating with Higher Education Institutions (HEIs) or by sourcing/licensing new technologies from HEIs which can provide a step change in their innovative capabilities.
These supports all help companies develop new and improved products and services which serve as the basis for sustainable economic growth and are detailed below:
In Company RD&I - supports the development of new or substantially improved products, services or processes which will have a competitive advantage in their target market. This enables companies to increase employment through sustainable and substantially increased sales;
Innovation Vouchers - providing vouchers worth €5,000 aims to introduce them to innovation, linking them with a network of knowledge providers, North and South of the border;
Innovation Partnerships - helping industry to engage in collaborative research projects with Irish universities and Institutes of Technology to develop new products and services;
Technology Gateways - providing Business Development resources to the Institutes of Technology and other firms to help them interact with industry on a local, regional and national basis;
Technology Centres - Technology Centres, a partnership between Enterprise Ireland and IDA Ireland, are organised to respond rapidly to industry defined needs and conduct market-relevant R&D in partnership with collaborating groups of companies. Participating companies propose areas and themes of greatest relevance to them over a 3-5 year period. In response, the researchers develop solutions that respond to these needs, often exploring avenues that can lead to new licensable intellectual property; and
Campus Incubators - such facilities are internationally recognised as an important element of public assistance for technology-intensive start-ups. Incubators now exist on every university and Institute of technology Campus in the country.
Going forward, Enterprise Ireland will continue funding its critical existing programmes along with new supports for innovation, such as:
The Business Innovation Initiative (BII) is aimed at driving innovation beyond selling products based on technical innovations; in turn providing more customer focussed process and service solutions; and
The Small Business Innovation Research (SBIR) Initiatives are a cross-government process that allows public bodies to use public procurement to source R&D and innovative solutions to solve ‘identified challenges’ with solutions that are not currently commercially available, which provides significant business opportunities for innovation focused companies.
High Potential Start Up (HPSU) support is the most significant and relevant support available for new start-ups is Enterprise Ireland’s. HPSUs are start-up businesses with the potential to develop an innovative product or service for sale on international markets and the potential to create 10 jobs and €1m in sales within 3 to 4 years of starting up. A range of supports are available under the HPSU offer such as the:
Innovative HPSU Fund - providing support to early stage companies considered to have an innovative product, service or technology with the potential to achieve international sales and create employment. It is an equity investment into HPSU clients on a co-funded basis to support the company’s business plan. This offer also leverages private investments to help the company grow and succeed in the implementation of their business plans;
New Frontiers Programme - a national entrepreneur development programme delivered locally through the Institutes of Technology (IoTs) and funded by Enterprise Ireland; and
Competitive Start Fund (CSF) - aimed at accelerating the growth of start-up companies that have the capability to become HPSU companies.
EU Funding
Assistance from the European Union (EU) continues to play a vital role in supporting innovation in enterprises operating in Ireland, both indigenous SMEs and foreign-owned multinational companies.
Enterprise Ireland also has supports in place to help companies maximise the funding they can receive from the European Union.
Horizon 2020 is the instrument which supports collaborative R&D in Europe and provides an important source of non-exchequer funding for companies. It enables us to amplify the impact of domestic public investment by leveraging complementary funding from the EU.
Horizon 2020 has a budget of €75 billion and runs from 2014 to 2020. A budget of €30 billion has been allocated to the final three years of Horizon 2020, which will provide significant funding opportunities for companies in Ireland that participate in the programme over the period 2018-2020. Ireland has won €424 million from 2014 to May 2017 in competitive, EU funding from Horizon 2020. Higher Education Institutions accounted for €233 million of the total and companies, €151 million. The funding for companies included €94 million awarded to SMEs.
51. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which all enterprises existing and-or new foreign direct investment or indigenous continue to be screened to ensure a smooth and unimpeded operation of their enterprise and the elimination of administrative obstacles; and if she will make a statement on the matter. [43330/17]
View answerGood regulation aims to provide a stable base for economic activity and a level playing field for all businesses, while also protecting workers, consumers and the environment. Better Regulation Policy aims to ensure that the processes for generating new regulation, and for evaluating existing regulation, are as effective and efficient as possible. Regulation should achieve the policy goals underpinning it in the least costly manner possible, without undermining the protections that regulation provides.
In the recent World Bank's Doing Business Report 2017 Ireland is ranked 18th for Ease of Doing Business, out of 190 countries, and in the top ten for ease of starting a business. This means that Ireland is highly regarded internationally as a great place in which to do business, which is a key factor in Ireland's ability to attract Foreign Direct Investment.
The Action Plan for Jobs 2017 outlines a number of commitments relating to improving the ease of doing business and reducing burdens, for instance the drive to bring all Government services on line, and the development of an SME test to ensure that policymakers “Think Small First” when considering new proposals that will have an impact on enterprise.
My Department has continued to engage closely with the business community through bodies such as the Retail Forum and the Advisory Group on Small Business, along with extensive stakeholder engagement on Brexit. Next month my Department will also host the Taking Care of Business event at Dublin Castle which aims to put approximately 500 members of the business community face to face with up to 30 state bodies and services, so they can learn more about the aid and supports available to them.
52. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the degree to which she and her Department are engaged in the encouragement of business and enterprise with all EU states having particular regard to the impact of Brexit; and if she will make a statement on the matter. [43331/17]
View answerSince the Brexit vote outcome, my Department has had extensive engagement with business to understand what they need to help them adapt to the challenges posed by Brexit, and to provide support for diversification, development and innovation.
Brexit presents the most significant economic challenge of the past 50 years and long-term, structural and disruptive change will emerge. The need to accelerate and implement competitiveness, innovation and market diversification strategies at a national and company level cannot be underestimated. This is at the crux of Enterprise Ireland’s 2017-2020 Build Scale and Expand Reach strategy and its new Eurozone Strategy.
The Enterprise Ireland Eurozone Strategy was launched in May 2017 as part of their overarching strategy to ‘Build Scale, Expand Reach’ by 2020.
- The strategy aims to help Irish exporters increase exports into the Eurozone by €2bn (50%) by 2020.
- The Eurozone is a very attractive market for Irish exporters because of currency stability, free trade agreements and growth potential.
- Priority sectors and export growth will be targeted in areas like construction, engineering and the life sciences/medtech sectors.
Enterprise Ireland will seek to inspire more companies to have Eurozone and global ambition and will implement extensive trade mission and event schedules focussed on global and sectoral opportunities, further develop in-market expertise and networks, place greater focus on identifying new sectoral opportunities and stimulate demand for Irish products and services through international marketing campaigns. In 2017, Enterprise Ireland will run 145 promotional trade events, of which 44 were minister-led. An additional 39 posts have been sanctioned for the agency, including in some EU markets, in order to increase its ability to support clients in finding new markets.
Assisted by Enterprise Ireland’s strategic communications campaigns such as “Global Ambition” and “PrepareforBrexit”, the agency has:
- Launched a ‘Brexit SME Scorecard’, a new interactive online platform which can be used by all Irish companies to self-assess their exposure to Brexit under six business pillars. Based on answers supplied by the user, the Scorecard generates an immediate report which contains suggested actions and resources, and information on events for companies to attend, to prepare for Brexit. To date approximately 1,500 companies have utilised the Brexit SME Scorecard.
- Rolled out a national Prepare for Brexit Breakfast roadshow across the country.
- Incorporated a Brexit zone into International Markets Week. This zone provided Enterprise Ireland client companies with access to independent experts in areas such as currency management, transport and logistics and procurement. Enterprise Ireland staff were also available to discuss sales and marketing capability and client management development programmes with a focus on Brexit
- Launched a Be Prepared Grant which provides client companies with the cost of preparing a plan to mitigate risks and optimise opportunities arising from Brexit. This grant support, of up to €5,000, can be used to help cover consultancy, travel and out of pocket expenses associated with researching the direction of their Brexit action plan.
All of the above actions are aimed at assisting companies to grow new markets so as to reduce our dependence on the UK. To that end, Enterprise Ireland is proactively engaging with client companies on Brexit issues and is working with clients on their business development plans based on a company diagnostic led approach.
53. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the degree to which SMEs can qualify for support in the context of innovation and technology; the extent to which an advantage is afforded to foreign direct investment as opposed to the indigenous sector; and if she will make a statement on the matter. [43332/17]
View answerEnterprise Ireland and IDA Ireland are both agencies of my Department and each has a specific and very different role to play in the context of innovation and technology. Enterprise Ireland is primarily focussed on SMEs and indigenous enterprises, while IDA Ireland’s main objective is to encourage investment into Ireland by foreign owned companies, in the form of foreign direct investment (FDI).
RDI (Research, Development & Innovation) enables Irish companies to make innovative products and services that are competitive and more novel than those in global markets. However, for an SME investment in R&D can be costly in terms of time, personnel and budget. It also requires a focus beyond the day to day challenges of running a business with limited resources.
Enterprise Ireland has role in this regard to de-risk such RDI so that companies will develop new and improved products and services and achieve the required exports to allow economic growth. This is done either by supporting companies to do RDI within the company, or by collaborating with Higher Education Institutions (HEIs) or by sourcing/licensing new technologies from HEIs which can provide a step change in their innovative capabilities. These supports all help companies to develop new and improved products and services which serve as the basis for sustainable economic growth.
SMEs qualify for all of Enterprise Ireland’s funding programmes and a limited number of these programmes are also open to FDI companies.
Enterprise Ireland operates a range of supports to help companies at all stages of growth and sophistication to engage in RDI, from initial research projects to higher level innovation and R&D activities, such as:
In Company RD&I - supporting the development of new or substantially improved products, services or processes which will have a competitive advantage in their target market. This enables companies to increase employment through sustainable and substantially increased sales;
Innovation Vouchers - providing vouchers worth €5,000 to small businesses to introduce them to innovation, linking them with a network of knowledge providers, North and South of the border;
Innovation Partnerships - helping industry to engage in collaborative research projects with Irish universities and Institutes of Technology to develop new products and services;
Technology Gateways - providing Business Development resources to the Institutes of Technology to help them interact with industry on a local, regional and national basis;
Technology Centres - a partnership between EI and IDA Ireland; these centres are organised to respond rapidly to industry-defined needs and conduct market-relevant R&D in partnership with collaborating groups of companies. Participating companies propose areas and themes of greatest relevance to them over a 3-5 year period. In response, the researchers develop solutions that respond to these needs, often exploring avenues that can lead to new licensable intellectual property;
Campus Incubators – such facilities are internationally recognised as an important element of public assistance for technology-intensive start-ups. Incubators now exist on every university and Institute of technology Campus in the country.
Going forward, Enterprise Ireland will continue funding it’s critical existing programmes along with new supports for innovation specifically targeting SMEs, such as:
The Business Innovation Initiative (BII) - available only to SMEs, this initiative is aimed at driving innovation beyond selling products based on technical innovations; in turn providing more customer focussed process and service solutions.
The Small Business Innovation Research (SBIR) Initiative is also available only to SMEs. The SBIR a cross-government process that allows public bodies to use public procurement to source R&D and innovative solutions to solve ‘identified challenges’ with solutions that are not currently commercially available. This provides significant business opportunities for innovation focused companies;
EU funding in the form of the SME Instrument is available and is specifically for single or groups of highly innovative SMEs with international ambitions, determined to turn strong, innovative business ideas into winners on the market. The instrument provides full-cycle business innovation support from the stage of business idea conception and planning over business plan execution and demonstration to commercialisation. Ireland has the highest success rate in Europe for the Horizon 2020 SME Instrument with a 16% success rate, compared to a European average of 6%.
In light of Brexit, Irish companies will continue to employ more R&D in a bid to protect their current exports to the UK. Innovation will continue to play a central role in growing exports as well as contributing to employment and Enterprise Ireland will assist SMEs in this regard.
IDA Ireland also has an important role to play in the Irish economy, as foreign direct investment (FDI) has been, and will continue to be, a key plank upon which Ireland’s economy is built. Its contribution is far reaching and it is estimated that 20% of all private sector employment in the State is directly or indirectly attributable to FDI. It also contributes significant taxation revenue to the Exchequer, generates other commercial activity across the economy and helps to drive investment in research and innovation.
IDA is tasked with growing and sustaining FDI in Ireland. It achieves this by partnering with potential and existing investors to help them establish or expand operations here. It also provides a range of supports, including R&D grant assistance, to its client companies.
At present, Ireland is home to over 1,200 overseas company operations that directly employ 200,000 people. Many of the companies undertake strategic activities here such as advanced manufacturing and R&D.
R&D capital investment remains very strong in Ireland. In 2016, IDA Ireland client companies achieved R&D investments worth €1.12bn. This was undoubtedly a strong performance given the general market caution for large capital projects, which includes significant R&D activities. The total spend on in-house R&D in 2016 was €1.5bn.
One of IDA’s ambitious targets in its strategy ‘Winning: Foreign Direct Investment 2015 - 2019 is to win €3 billion in new RD&I investment projects, including in-house and collaborative RD&I projects with companies and universities by 2019, and to encourage 120 additional companies to engage in R&D across the FDI portfolio
The Government works hard to maintain the country’s attractiveness to FDI in the face of ever-increasing global competition. Ireland has been ranked first in the world for the flexibility and adaptability of its workers and also scores highly in international rankings for the availability of skilled labour and productivity.
IDA Ireland's strategy for the period 2015 - 2019 sets out the key targets that the agency is working towards in order to sustain and grow investment by overseas companies in the next few years.
Enterprise Ireland and IDA Ireland are resourced to meet the innovation needs of their respective client companies through the range of supports outlined above. SMEs do not compete with FDI projects in order to access supports and no advantage is afforded to foreign-owned companies in terms of the supports available for innovation.
54. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the way in which Ireland compares with other EU and non-EU member states, including the UK, in terms of an attractive location for business and enterprise to locate and avail of innovation and technology; if there are areas needing attention, particularly after Brexit; and if she will make a statement on the matter. [43333/17]
View answerDespite increasing international competition from across the EU and further afield for foreign direct investment (FDI), overseas companies continue to be attracted to Ireland. That is because multinational businesses value our talented workforce, membership of the EU and Eurozone as well as our proven track record as a home to FDI.
The Government is very much aware, however, that we must work hard in order both to sustain FDI and encourage more companies to locate or expand here. That is why we are continuing to improve our offering to international investors. This includes taking steps to enhance our competitiveness and infrastructure, together with the supply of talent for overseas businesses.
In terms of innovation and technology, a concerted and successful effort has been made to develop an innovation-driven enterprise and academic culture and our country is now firmly on the global map for the excellence of our research. Our investment in research and innovation has also helped to foster indigenous enterprise and to attract FDI from some of the world's leading companies.
While significant strides have therefore been taken to grow our international innovation and technology profile, more work remains to be done. That is why the Government developed its Innovation 2020 strategy, which is our five-year roadmap for research and development, science and technology. We are committed to the implementation of the actions set out in that strategy which will help to drive our economy and deliver a better society.
55. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation if her attention has been drawn to emerging trading or competitive disadvantages for SMEs here in comparison with other locations throughout the EU and the UK; the extent to which these issues will be addressed in the short and medium term; and if she will make a statement on the matter. [43335/17]
View answerCompetitiveness is integral to exports, jobs growth and as a means of achieving sustainable improvements in living standards. Improving competitiveness performance is a core focus of the work of my Department and wider Government policy and is particularly vital in light of the challenges posed by Brexit.
The 2017/2018 Global Competitiveness Report published by the World Economic Forum in September shows Ireland’s ranking has fallen by 1 place this year. Despite the fall in ranking, Ireland continues to be the 8th most competitive economy in the euro area and the 11th most competitive economy in the EU28. The Institute for Management Development measure of competitiveness ranks Ireland 6th most competitive out of 63 countries and the 2nd most competitive in the Euro area. Ireland’s performance 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 World Bank’s Ease of Doing Business report currently ranks Ireland 18th out of 190 economies, ahead of the UK in terms of starting a business and paying taxes but behind in the overall rankings.
Most importantly, our improved competitiveness is reflected in strong employment growth across sectors and regions. The strong performance of clients supported by the enterprise agencies in winning exports, market share and job creation in the face of intense global competition is to be commended and reflects the competitiveness of the environment in which to do business in Ireland.
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 competitiveness, and drive innovation and productivity across all economic sectors. Global uncertainty, and Brexit in particular, has underlined the importance of building competitive advantage, generating an uplift in enterprise export competitiveness and continuing to harness the benefits from trade and the Single Market to secure sustainable jobs and growth. My objective is to ensure the economy is resilient at sectoral and enterprise level to deal with imminent competitiveness challenges and to build further on the progress we have made.
Competitiveness is key to success in international markets and helping businesses to improve their competitiveness will remain a key focus for my Department. 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 and helping Irish businesses which export to the UK and helping others diversify into new products and markets. We are introducing a Brexit loan scheme of up to €300 million targeting the short-term capital needs of SMEs, which will allow them to put in place the necessary change to help their business grow into the future.
56. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the degree to which emphasis is placed on facilitating and encouraging employment generating enterprises throughout the regions with particular reference to the need to ensure an even spread of investment with consequent benefit to the national economy; and if she will make a statement on the matter. [43336/17]
View answerThe Regional Action Plan for Jobs initiative is a central pillar of the Government’s ambition to create 200,000 new jobs by 2020, 135,000 of which are outside of Dublin.
Progress on this initiative to date is good and employment continues to grow. In the year to Q2 2017, 48,100 jobs were created across the country; four out of five of these jobs were outside Dublin.
The Enterprise Agencies continue to work to contribute to employment and economic growth throughout all regions. In 2016, almost two thirds of new jobs created by Enterprise Ireland supported companies, and over half of those created by IDA supported companies, were outside Dublin.
Enterprise Ireland’s strategy for 2017-2020 aims to create a further 60,000 jobs, while sustaining existing ones, which will make an important contribution to jobs and economic growth across all regions; IDA meanwhile will continue to target a minimum increase in investment of 30% to 40% in each region outside Dublin to 2019.
The 31 Local Enterprise Offices (LEOs) are the ‘first-stop-shop’ State support service for micro and small businesses in each local area. The LEOs are providing advice and direction, covering all government supports and requirements, to anyone who wishes to start or expand a business. The 2016 LEO annual jobs survey results highlighted three consecutive years of local jobs growth throughout the country: in 2016 there was a net increase of 3,679 jobs and total direct employment among LEO client companies stood at 34,634.
To further support enterprise development across all regions, 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. This competitive Regional Enterprise Development Fund will support the ambition, goals and implementation of the Regional Action Plans for Jobs.
Additional funding of €150m is also being made available to the IDA to support its Regional Property Programme and drive job creation in the multi-national sector.
57. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of Enterprise Ireland exporting client companies that have availed of be-prepared grants to date, by county, in tabular form. [43342/17]
View answerBrexit presents the most significant economic challenge of the past 50 years and long-term, structural and disruptive change will emerge. Following the UK’s vote to leave the EU, the need to accelerate and implement competitiveness, innovation and market diversification strategies at a national and company level cannot be underestimated. This is at the crux of Enterprise Ireland’s 2017-2020 Build Scale and Expand Reach strategy and its new Eurozone Strategy to assist Irish exporters increase exports in Eurozone countries by 50% by 2020.
The devaluation and volatility of sterling, and the uncertainty that has unfolded in the business environment since the UK vote to leave the EU cannot be underestimated. At the same time, Enterprise Ireland clients are challenged to prepare to operate in a yet unknown trading environment post-Brexit – they must prepare for a hard Brexit. Enterprise Ireland’s clients are actively utilising the agency’s financial and non-financial supports to meet the innovation, competitiveness and market diversification challenges of Brexit as part of their strategic growth plans.
In March 2017, Enterprise Ireland launched a ‘Brexit SME Scorecard’, a new interactive online platform which can be used by all Irish companies to self-assess their exposure to Brexit under six business pillars. Based on answers supplied by the user, the Scorecard generates an immediate report which contains suggested actions and resources, and information on events for companies to attend, to prepare for Brexit. To date approximately 1,500 companies have utilised the Brexit SME Scorecard.
Enterprise Ireland’s Be Prepared Grant provides client companies with the cost of preparing a plan to mitigate risks and optimise opportunities arising from Brexit. This grant support, of up to €5,000, can be used to help cover consultancy, travel and out of pocket expenses associated with researching the direction of their Brexit action plan.
To date 54 companies have received approval for support under this initiative, and a strong pipeline of companies have applications undergoing review for approval. The number of applications at this early stage means that a county by county analysis is not particularly meaningful. Approximately 45% of applications are from the Dublin region and the rest from the other regions. Enterprise Ireland will continue to promote the Scorecard and the Be Prepare Grant to all counties and regions to ensure that the maximum number of clients are engaged in preparing for the impact of Brexit.
58. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the position regarding the study by the CCPC into the personal contract plan car finance market. [43343/17]
View answerSection 9(5) of the Competition and Consumer Protection Act 2014 provides that the Competition and Consumer Protection Commission (CCPC) is independent in the performance of its functions.
While, I, as Minister for Business, Enterprise and Innovation have no direct function in the day to day operations of the Agency including in relation to its research activities, I understand that to date the CCPC has met with the Department of Finance, Central Bank, industry representatives and traders in relation to the personal contract plan car finance market. They have also conducted market research and received information from other stakeholder groups including consumers. The CCPC plans to finalise its report within the next two months.
59. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the position regarding investigation into suspected anti-competitive conduct in the ticketing sector by the CCPC. [43344/17]
View answerThe Competition and Consumer Protection Commission (CCPC) is the statutory body responsible for the enforcement of competition and consumer law in the State. Section 9(5) of the Competition and Consumer Protection Act 2014 provides that the CCPC is independent in the performance of its functions, including carrying out investigations of suspected breaches of competition law. As investigations and enforcement matters are part of the day-to-day operational work of the CCPC, I, as Minister for Business, Enterprise and Innovation have no direct function in the matter and it would be inappropriate for me to comment.
60. Deputy Róisín Shortall asked the Tánaiste and Minister for Business, Enterprise and Innovation the position regarding the report on the collapse of a trial (details supplied) which was submitted to her by the ODCE in July 2017; if she has received the advice she sought from the Attorney General on this matter; her plans in relation to this report and the future of the agency; her views on media reports that the Government is considering replacing the ODCE with a new stand-alone agency; and if she will make a statement on the matter. [43203/17]
View answerI received a report under Section 955(1)(a) of the Companies Act 2014 from the Director of Corporate Enforcement on 23rd June. This Report addresses the issues highlighted by Judge Aylmer in his ruling in the case of DPP v Sean Fitzpatrick. The report sets out the facts relating to the case and does not purport to be an investigation or an inquiry.
It covers the main issues directed at the ODCE by Judge John Aylmer in his ruling on 23 May 2017. This includes:
- the coaching of witness statements;
- late disclosure of documents;
- a perceived bias by ODCE investigators; and
- the shredding of documents.
I have sought the advice of the Attorney General, specifically as to whether there are any legal impediments to publishing the report and discussing its contents in the Oireachtas and further advice is awaited.
It is important that any actions we take are done with full knowledge and in line with fair procedures, due process and natural justice.
It is my intention to publish the Report subject to the advice of the Attorney General.
It is my intention to change the structure of the ODCE from an office to an independent statutory agency. This will provide greater autonomy to the agency and ensure it is better equipped to investigate increasingly complex breaches of company law. Sourcing of expertise and specialist staff will be enhanced under the agency model.
61. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which borrowing costs are affecting the growth and development of SMEs; and if he will make a statement on the matter. [43334/17]
View answerAs the Deputy is aware, small and medium sized businesses are critical to the overall wellbeing of the Irish economy and are an important source of employment. Government policy is focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources.
My Department conducts a biannual SME Credit Demand Survey. This survey series is the most comprehensive survey of SME credit demand in Ireland, covering over 1,500 respondents and involving over 6,000 direct telephone calls to SMEs. SMEs of all sizes trading in all sectors, excluding property development and speculative activities, and in all regions are included. The latest survey can be found here:
http://www.finance.gov.ie/sme-credit-demand-surveys-archive/
The survey shows that demand for credit amongst the SME sector remains subdued with 20% seeking credit, however, only 1% of the SMEs that did not seek credit stated this was because it was too expensive to borrow. When asked for the reason SMEs did not borrow, 89% of firms reported they did not need to borrow, up 5 percentage points from 84% in March 2016.
The SME State Bodies Group, chaired by my Department, provides a forum for the development and implementation of policy measures to enhance SMEs' access to a stable and appropriate supply of finance. As the Deputy will also be aware, the Action Plan for Jobs over the past number of years has set out a range of commitments to ensure viable SMEs can access appropriate finance at a reasonable cost from both bank and non-bank sources. My Department will also continue to monitor the SME credit lending market in conjunction with the Credit Review Office.
The Government remains committed to the SME sector. I can assure the Deputy that my Department, working with other relevant Departments and Agencies such as the Credit Review Office, will continue to advance policies to support and monitor the availability of both bank and non-bank credit so as to ensure that viable Irish SMEs have sufficient access to finance and can reach their full potential in terms of growth and development.
62. Deputy Niall Collins asked the Minister for Finance his views on whether a report (details supplied) should be immediately published in view of the implication this will have on trade for many Irish companies. [43345/17]
View answer68. Deputy Gerry Adams asked the Minister for Finance his plans to publish an internal report by the Revenue Commissioners which outlines physical and economic impacts that Brexit will likely impose; and if he will make a statement on the matter. [43270/17]
View answerI propose to take Questions Nos. 62 and 68 together.
I am informed by the Revenue Commissioners that the report is now available on their website at www.revenue.ie.
63. Deputy Robert Troy asked the Minister for Finance his plans to allow a local property tax exemption for persons who provide their own water supply and sewerage system. [43208/17]
View answerThe Government decided that the Local Property Tax (LPT) should be centred on the principles of equity, transparency and simplicity and that a universal liability should apply to all owners of residential property with a limited number of exemptions and reliefs. Limiting the reliefs available allows the rate to be kept to a minimum for those liable persons who do not qualify for relief.
While individuals who provide their own water supply and sewerage system may be exempt from LPT for another reason, or may be entitled to avail of a deferral arrangement under the provisions contained in the legislation, there is no specific LPT exemption where a homeowner provides their own water supply or sewerage system and I have no plans to introduce such an exemption.
