Written Answers Nos. 32-43
32. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Business, Enterprise and Innovation the further steps she is taking to prevent anti-competitive collusion in the banking sector; and if she will make a statement on the matter. [47375/17]
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.
Policy responsibility for the banking sector is a matter for the Minister for Finance while the regulatory authority for the banking sector is the Central Bank.
33. Deputy Sean Fleming asked the Tánaiste and Minister for Business, Enterprise and Innovation the funding paid to the Design and Crafts Council of Ireland, which was formerly the Crafts Council of Ireland, in 2015 and 2016; the allocation for 2017; if her Department received a copy of its audited financial statements for 2015; if these will be made available; and if she will make a statement on the matter. [47455/17]
View answerThe Design and Crafts Council of Ireland is a company limited by guarantee and is therefore established under and regulated by the Companies Act. The Design and Crafts Council of Ireland receives funding through Enterprise Ireland for the purposes of promoting crafts and design initiatives.
The Design and Crafts Council of Ireland’s Financial Statements for 2015 have been provided to my Department as part of the Design and Crafts Council of Ireland’s Annual Report 2015 which is available at: https://issuu.com/craftscouncilofireland/docs/dccoi_annual_report_2015_eng.
Details of funding allocation for the Design and Crafts Council of Ireland in 2015, 2016 and 2017 are in the following table:
Design and Crafts Council of Ireland Funding via Enterprise Ireland
|
Year |
2015 |
2016 |
2017 |
|
€'000 |
€'000 |
€'000 |
|
|
Enterprise Ireland Funding |
2,919 |
3,019 |
2,919 |
|
Enterprise Ireland Funding Irish Design 2015 |
4,950 |
- |
- |
|
Total |
7,869 |
3,019 |
2,919 |
34. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the details of Ireland's ranking overall when compared with small economies in the latest World Bank Doing Business rankings available for 2018; and if she will make a statement on the matter. [47583/17]
View answerThe World Bank’s annual Doing Business report sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations.
The most recent report (published on October 31 2017) shows Ireland has achieved an overall ease of doing business ranking of 17th out of 190 economies, an improvement of one place on last year. Ireland is 4th in the Euro Area and performs strongly, in 7th position, in the EU behind Denmark (3rd), UK (7th), Sweden (10th), Estonia (12th), Finland (13th) and Lithuania (16th). Ireland ranks ahead of key competitors such as Switzerland, Netherlands, Luxembourg and Israel. New Zealand is ranked 1st and Singapore is ranked 2nd.
This is a positive result for Ireland. It is positive that Ireland’s ranking on starting a business has improved by 2 places to 8th. As benchmarked by the World Bank, Ireland is in the top ten in the world in terms of ease of starting a business, paying taxes and protecting minority investors. It is encouraging that the overall trajectory of Ireland’s competitiveness performance and scores in international measures of competitiveness is generally positive.
The Institute for Management Development measure of competitiveness ranks Ireland 6th most competitive out of 63 economies. Most importantly, 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 reflects the competitiveness of the environment in which to do business in Ireland.
While we are improving our performance, we cannot be complacent. Other economies continue to reform and we must continue the implementation of high-level reforms to improve the environment for business competitiveness. My objective is to ensure the economy is resilient at sectoral and firm level to deal with imminent competitiveness challenges and to build further on the progress we have made in making it easier to start and run a business in Ireland.
35. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation when the report by the Office of the Director of Corporate Enforcement into a trial (details supplied) will be published. [47584/17]
View answerI received a report under Section 955(1)(a) of the Companies Act 2014 from the Director of Corporate Enforcement on 23 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 enquiry.
The Report has been the subject of detailed consultation with the Office of the Attorney General. I received further advice from the Attorney General recently, which I am considering with my officials.
36. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation when Second Stage of the Companies (Statutory Audits) Bill 2017, which will transpose a 2014 EU directive, will take place in Dáil Éireann. [47585/17]
View answerThe Companies (Statutory Audits) Bill 2017 was published on 6 November 2017. The necessary requirements of the EU Audit Directive and Regulation were transposed in June 2016 to meet the EU deadline by way of statutory instrument (S.I. 312 of 2016).
The Bill elevates S.I. No. 312 of 2016 and enhances it, therefore much of the draft legislation is already on the statute book but through secondary legislation. It also avails of options not appropriate to secondary legislation.
The objectives of the Bill are:
- to provide a straightforward legal framework for statutory auditors and audited entities on the requirements for statutory audit,
- to enhance the powers of the Irish Auditing and Accounting Supervisory Authority, as the competent authority with ultimate responsibility for oversight, to ensure effective monitoring and enforcement of the new requirements,
- to update the rules relating to auditors for Industrial and Provident Societies Acts and the Friendly Societies Acts.
The Bill is one of my Department’s measures in the recently published package to enhance Ireland’s corporate, economic and regulatory framework and is therefore one of the Government’s priorities for enactment. While scheduling of second stage will be a matter for the Business Committee, I hope that this will take place early next month.
37. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation her views on a report (details supplied) on the way in which the housing crisis and the severe housing shortages could harm Ireland’s competitiveness and the ensuing impact this may have on attracting foreign direct investment here. [47589/17]
View answerThe Government is fully committed to increasing the supply of affordable and quality housing. That is why it has published the ‘Rebuilding Ireland Action Plan’ which includes financing measures, better use of existing homes, new construction and rental sector improvements.
These steps will first and foremost ensure Irish people are better able to buy and rent suitable homes. They will also serve to reinforce our national infrastructure in terms of its capacity to accommodate further foreign direct investment.
My Department's in-depth engagement in the development of the new National Planning Framework (NPF) over the last 18 months provides an example of efforts to attract foreign direct investment being considered in terms of wider capacity and policy to provide infrastructure and housing. The NPF is a critically important framework for the period to 2040 that will underpin Ireland’s future economic development.
The Department of Housing Planning and Local Government (DHPLG) are developing the NPF and my Department has been heavily involved in that process.
38. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation further to Parliamentary Question No. 56 of 6 October 2017, the Exchequer funds given by her Department to the organisations to conduct this study. [47590/17]
View answerFurther to the Deputy's question of 26 October, I am informed by IDA Ireland that spending on market analysis on property solutions is covered by the IDA’s capital budget. For 2017 the capital allocation from the Exchequer to the Agency was €137m.
39. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation further to the confirmation by the IDA chief executive (details supplied) that over the past number of months there were concerns about a project in view of the time it was taking to get planning approval; when her attention was drawn to planning issues in this area since taking office; and the steps she took on receipt of this information with senior Department officials and Cabinet colleagues, including the Taoiseach, to ensure the project progressed and the investor did not pull out of the project . [47591/17]
View answer40. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the details of each occasion and date that a company (details supplied) raised the matter of the planning process for a project in Athenry since 2015 with her, her predecessor, the IDA and her Department; and the steps taken at Cabinet level to ensure the project was not lost. [47592/17]
View answerI propose to take Questions Nos. 39 and 40 together.
In respect of the facility referred to by the Deputy, IDA Ireland has been engaged in ongoing discussions with the company involved. This included continuous engagement regarding the initial plans to situate the investment in Athenry and throughout the subsequent planning and legal processes. The Government has also regularly underlined its support for this valuable project, including at the Taoiseach's meeting with the company's senior management last week. Although it remains a commercial decision for the company itself to take, I am optimistic that the investment will proceed in the future. We will continue working with the company in support of that investment.
The delays that have beset this project have underlined the need to have an efficient and speedy planning process in place in this country. The Government wants to ensure that similar such projects are not unreasonably delayed again. That is why it had already been considering ways to avoid a repeat of this situation, including in advance of the recent High Court ruling. This may include the designation of data centres as Strategic Infrastructure Developments for planning purposes.
41. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation if an application for a rescue and restructure scheme has been sent to the Directorate General for Competition; the details of the scheme; and the likelihood of approval. [47593/17]
View answerA Rescue and Restructure scheme was recently notified to the Directorate General for Competition as one element of my Department’s response to the challenges posed by Brexit.
The scheme was notified as a precautionary measure. Since the decision of the UK last July to exit the EU, this Department has been working with Enterprise Ireland and other stakeholders to develop a suite of measures to mitigate the potential effect of Brexit on Irish businesses.
We do not expect that there will be a need for the State to provide rescue/restructuring aid to companies, however, it is prudent to have contingency measures in place, so that we can respond swiftly to changing circumstances as necessary.
Once approved, this scheme will allow for grants or equity supports to SMEs in severe financial distress who satisfy the conditions of the scheme.
The scheme filed is similar to ones that have been approved for other member States (e.g. Northern Ireland) – so my Department officials are confident of the scheme’s approval. However, the ultimate decision lies with DG Competition.
42. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which pay demands in the public and private sectors are likely to impact on the growing economy to a negative or positive extent in the future; and if he will make a statement on the matter. [47557/17]
View answerProjections published by my Department in Budget 2018 anticipate growth in the overall pay bill (both private and public combined) of 5.6 per cent in 2018. This comprises growth in average pay of 3.1 per cent and employment growth of 2.3 per cent. Pay bill growth is projected to average 5.2 per cent per annum thereafter, with average pay expected to grow at around 3.3 per cent per annum.
To the extent that wage pressures exceed these projections, this could be expected to boost consumption and overall price levels in the near term. However, to the extent that such higher pay rates result in a loss of competitiveness, any positive impact will be offset by lower overall economic activity and lower numbers employed.
Work published previously by my Department titled 'Quantification of the economic impacts of selected structural reform in Ireland' , www.finance.gov.ie/updates/quantification-of-the-economic-impacts-of-selected-structural-reforms-in-ireland/ indicates that a 1 percentage point wage shock which is not offset by a corresponding rise in productivity, could be expected to reduce the level of real output (GDP) by ¼ percentage point (pp) within 7 years, add 1pp to the rate of unemployment, and reduce the number of people employed by some 0.4 percentage points.
Given downside risks within the international context, it is imperative that wage developments should be commensurate with trends in productivity (output per person employed) over the coming years, in order to avoid a deterioration in Ireland's competitiveness. As such, we will continue to monitor the wage outlook, and labour market and productivity developments.
43. Deputy Paul Kehoe asked the Minister for Finance if a farm transfer (details supplied) is subject to stamp duty; and if he will make a statement on the matter. [47605/17]
View answerI am advised by Revenue that stamp duty is chargeable on the transfer of a farm from a landowner to a company, whether or not the company is controlled by the landowner. The company acquiring the farm is treated as a separate legal entity to the individual. The amount chargeable to stamp duty is the market value of the assets being transferred. The rate of stamp duty applying to the transfer is 6% on transfers taking place after Budget Day, October 10 2017. There are no stamp duty reliefs available in relation to a transfer of a farm to a company.
