Written Answers Nos. 26-44
26. Deputy Timmy Dooley asked the Minister for Business, Enterprise and Innovation the status of the report of the Competition and Consumer Protection Commission on the operation of the household waste collection market; and if she will make a statement on the matter. [37632/18]
View answerOn 4 July 2017, a motion was passed by Dáil Éireann which called on the Minister for Communications, Climate Action and Environment to ask the Competition and Consumer Protection Commission (CCPC) to report on the operation of the household waste collection market.
Following a formal request on 25 September 2017 from the Minister for Communications, Climate Action and Environment, who has policy responsibility for the waste sector, the then Minister for Business, Enterprise and Innovation, in accordance with section 10(4) of the Competition and Consumer Protection Act 2014, requested the CCPC to carry out a study on the operation of the household waste collection market.
The CCPC conducted its study into the household waste collection market and published its report on 28 September 2018.
27. Deputy Aindrias Moynihan asked the Minister for Business, Enterprise and Innovation if she will report on the uptake in the various schemes her Department offers to allow businesses to prepare for Brexit; and if she will make a statement on the matter. [42548/18]
View answerMy Department and its Agencies offer a wide range of supports to allow businesses to prepare for Brexit. My commitment to ensuring businesses are as well prepared as possible is evidenced by the focus I placed on Brexit as part of my allocations under Budget 2019, including through Enterprise Ireland, the 31 Local Enterprise Offices, IDA Ireland and InterTrade Ireland and the advisory services in the NSAI and the HSA. My focus is on helping firms to improve their competitiveness, innovation and to diversify markets.
Research for my Department by Behaviour & Attitudes (B&A) indicates that 44% of Brexit impacted firms nationally have a plan in place as of mid-year. Enterprise Ireland report that 85% of clients have a plan in place and are taking action.
I want to increase the numbers of firms that have completed Brexit scenario planning, and secondly for those with a plan, my Department and agencies are available to work through ‘no regrets’ implementation actions by firms. We are also focusing on building capability in areas of customs and tariffs, supply chain, regulation and standards and employee movement issues. Minister Donohoe announced a package of over €110m for Brexit supports in Budget 2019.
There has been a significant uptake in these supports from my Department and agencies among businesses.
For instance, the ‘Brexit SME Scorecard’ is a new interactive online platform launched by Enterprise Ireland (EI) which can be used by all Irish companies to self-assess their exposure to Brexit. To date, close to 3,000 Brexit Scorecards have been completed.
The Be Prepared grant, also available through EI, offers SME clients a grant of up to €5,000 to assist them in preparing an action plan for economic shocks such as Brexit. The grant can be used to help cover consultancy, travel and travel expenses associated with researching the direction of their action plan. 137 Be Prepared Grants have so far been approved.
Enterprise Ireland has run 8 Brexit advisory clinics throughout the country to date. Approximately 590 people have attended these events to date and three more Clinics are due to take place before the end of the year in Dundalk, Waterford and Limerick.
The Local Enterprise Offices (LEOs) have organised various events to enable companies to learn about the potential impacts and opportunities of Brexit. 3,925 participants have taken part in these events. In addition, 263 LEO clients have received one-to-one mentoring solely focused on Brexit.
The LEOs engage in a number of other schemes to help companies prepare for Brexit. Technical Assistance Grants for Micro Export are offered as an incentive for LEO clients to explore and develop new market opportunities. 293 clients have been approved so far for this scheme.
204 Brexit SME Scorecards have been completed in this period by clients that identified themselves as LEO clients.
The Brexit Loan Scheme, launched in March this year, makes a fund of up to €300 million available to eligible businesses to help them innovate, change or adapt to mitigate their Brexit challenge. So far, there have been 262 applications to the Scheme, with 224 approved by the Strategic Banking Corporation of Ireland.
InterTradeIreland’s Brexit Advisory Service was established in May 2017 to provide a focal point for SMEs, working to navigate the changes in cross-border trading relationships brought about by Brexit negotiations. To date the Brexit Advisory Service has engaged directly with some 2,350 SMEs.
These are just some of the schemes available under the auspices of my Department to help businesses prepare for Brexit.
28. Deputy Thomas P. Broughan asked the Minister for Business, Enterprise and Innovation the measures being taken, including under budget 2019, to promote and foster indigenous trade and productivity, especially to prepare for Brexit; and if she will make a statement on the matter. [42551/18]
View answerBrexit is undoubtedly the most significant challenge facing Irish enterprise in over 50 years. With less than 6 months to go, I was determined to deliver a budget with Brexit at its core, building on the many measures we have already introduced, and responding to the evolving needs of business.
The agencies under my remit have an extensive range of supports available to enable companies to both consolidate market share and continue to pursue new opportunities to grow their market presence within the UK. For 2019, I am allocating an extra €8m to the enterprise agencies and regulatory bodies under my Department, who work with firms at the coalface to develop their supports for business.
I also announced a longer term loan facility, the Future Growth Scheme, of up to €300m to support capital investment by business, which is a collaboration with the Department of Agriculture, Food and Marine, the Department of Finance, the European Investment Bank Group and SBCI.
Enterprise Ireland (EI) supports include:
- A new Online customs Training Programme to be launched shortly to demystify customs procedures. This will be available to all exporters and importers.
- Brexit Advisory Clinics: The purpose of these clinics is to encourage companies to examine their potential exposure to Brexit, to complete the Brexit SME Scorecard and use the Be Prepared Grant to plan their strategic response to Brexit.
- Brexit Scorecard: An interactive online platform to self-assess exposure to Brexit under six business pillars.
- Be Prepared Grant: This grant offers SME clients a grant of up to €5,000 to assist businesses in preparing an action plan for economic shocks such as Brexit.
- The Agile Innovation Fund: giving companies rapid fast-track access to innovation funding, and up to 50% in support for product, process or service development projects with a total cost of up to €300,000.
- Market Discovery Fund - supports Enterprise Ireland clients research new markets for products and services.
- “Prepare to Export Scorecard”: The Scorecard helps Irish companies with global ambition to self-assess how prepared they are to start exporting.
In Budget 2019, I have allocated €1.25m for a Retail Online Scheme which will be launched by Enterprise Ireland shortly. The main objective of the Pilot scheme will be to support SMEs in the retail sector with a pre-existing online presence to develop and implement a more sophisticated and strategic online trading offer with a view to increasing online business and customers both domestically and internationally.
I have also earmarked an additional €1.8m for the Design and Crafts Council of Ireland over the next 3 years to help businesses to respond to digital and new market opportunities.
The 31 Local Enterprise Offices play a pivotal role in supporting micro-enterprises, as they prepare for Brexit. I have allocated an additional €5m to enhance their programme of supports in 2019, up 22% on 2018.
I have also allocated an additional €1m in capital funding to InterTrade Ireland, an increase of 17.5%. This will allow them to step up their support for companies in the border region, North and South, who are particularly exposed to Brexit.
The Government’s commitment to supporting the business community prepare for Brexit can also be seen in the series of four “Getting Ireland Brexit Ready” seminars, which are being held this month around the country. My Department and agencies are actively participating in this new campaign, Getting Ireland Brexit Ready, and we are seeking to promote the supports available to the broad base of business across the country.
29. Deputy Robert Troy asked the Minister for Business, Enterprise and Innovation the measures she will take to support balanced regional investment; and the supports in place for businesses wishing to locate in the midlands. [42667/18]
View answerSince becoming Minister for Business, Enterprise and Innovation, I have made regional development my top priority. Indeed, enterprise development and job creation in the regions of Ireland is a key policy priority of this Government.
The Midlands has seen good progress under the Regional Action Plan for Jobs, with employment in the region increasing by 14% from Q1 2015 to Q2 2018. There are 15,300 more people in employment in the region from Q1 2015 to Q2 2018. Live Register numbers have fallen in all four Midland counties in the past 12 months. In 2017, both Enterprise Ireland and IDA reported job increases in the Midlands of 6% and 1% respectively. Through partnership between Enterprise Ireland and the Local Authorities, the Local Enterprise Offices (LEOs) have 819 client companies in the Midlands employing 4,214 people; and last year those companies added 387 new employees in total.
CSO figures show that the unemployment rate in the Midlands is currently at 9.7% (Q2 2018), which is higher than the State average and continued focus is therefore required on regional enterprise development and job creation in this region.
The Enterprise Agencies continue to work to contribute to employment and economic growth throughout all regions. 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.
The Local Enterprise Offices operating under the auspices of the Local Authorities and Enterprise Ireland in every county continue to play a vital role in providing advice and guidance, financial assistance and other supports to those wishing to start or grow their own businesses.
IDA meanwhile will continue to target a minimum increase in investment of 30% to 40% in each region outside Dublin to 2019. The IDA is involved in a number of initiatives to attract additional FDI to the Midlands, including a focused digital marketing campaign. This is designed to market the Midlands Region to potential investors by showcasing locations such as Westmeath and Longford. The IDA actively engages with its existing client base to support them in growing their business to retain jobs and expand their existing footprint in the region. The Agency also maintains regular engagement with the Chief Executives of Longford, Westmeath, Laois and Offaly County Councils to attract further investment to the region.
Regional development and growth of indigenous enterprise was one of my three main priorities for Budget 2019, announced last week. In order to support this, I announced the following allocations:
- an extra €5m to the 31 Local Enterprise Offices (LEOs);
- a doubling Retail Online Pilot Scheme to €1.25m to strengthen retailers online offering;
- a new round of €175m for Seed and Venture Capital Fund;
- €2.75m for SMEs Regional Innovation and Technology Clusters Programme; and
- a €300m Future Growth Loan Scheme which addresses the lack of availability of loans in the marketplace for loan-terms of longer than five to seven years
These initiatives will operate alongside existing supports for businesses and indigenous entrepreneurs.
I also announced an allocation of €10m to the next phase of the IDA’s Regional Property Programme. The IDA’s regional property programme is critical to encouraging more foreign direct investment into the regions. Project Ireland 2040 names the Border and Midlands regions as priority areas for this Programme, and so the funding will be used to start building advanced facilities a number of regional locations, including Athlone.
It is important to reiterate that any business can find out more information about the supports available to their business by visiting the SME Online Tool or they can contact their Local Enterprise Office which is the first stop shop for information, support and referral in relation to supports for business in every county.
The Midlands Action Plan for Jobs has been a key policy response for supporting employment growth in the Midlands, working with public and private stakeholders. In April of this year, I met with the Chairs of all the Regional Action Plan for Jobs committees and other regional stakeholders, to start a process to Refresh and Refocus all Regional Plans, including the Midlands Plan, to ensure their effectiveness, relevance and impact out to 2020, particularly in light of Brexit. This work is ongoing at present.
In December last year I announced an allocation of €30.5 million in funding to support enterprise capability in the regions, with 21 projects from all over the country receiving funding. This Regional Enterprise Development Fund (REDF) totalling €60 million is being rolled out by Enterprise Ireland over the next 4 years. The Fund supports the ambition, goals and implementation of the Regional Action Plans for Jobs.
The Irish Manufacturing Research CLG project located in Mullingar was one of the significant funding recipients under Stream 1 of the REDF, which will be an important support to manufacturing activity in the Midlands region. In addition, Longford is a partner in a Stream 2 project to develop a network of three Digital and Innovation Hubs with Leitrim and Cavan.
In April of this year I launched a second competitive call under the REDF , which will make available the remainder of the €60 million. The results of this competitive process will be announced by the end of the year.
Lastly, there have been a number of recent high-profile investments announced by overseas companies in the Midlands region. Earlier this year, Indian-owned Leetha Industries announced that it is to establish a manufacturing and supply operation called Red Seal Cups Ltd. in Ireland. This will create over 100 jobs in Longford over the next three years. The Avery Dennison Corporation is also planning a significant expansion of its Finesse Medical manufacturing facility in the county.
I was in Longford last Friday (October 12th) where I officially opened the first Center Parcs recruiting day. Center Parcs will invest in a €233m resort in Longford Forest on a 400-acre site which will create approximately 750 jobs during the construction phase, and is due to open in the summer of 2019. Once open, the resort expects to employ up to 1,000 people in permanent jobs.
Developments like these are a great vote of confidence in what the Midlands has to offer for investors. My priority is to continue to work with stakeholders collectively within the Midlands to build on the progress to date on implementation of the Regional Action Plan for Jobs over the period to 2020, and to focus on leveraging the key strengths of the region. My Department is also working closely with the Department of Housing, Planning and Local Government in relation to the National Planning Framework and development of Regional Spatial and Economic Strategies, and with the Department of Rural and Community Development on roll out of the Action Plan for Rural Development.
30. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation if her Department has a long-term plan in place to deal with skills shortages in various sectors; and the timeframe to implement recommendations by the expert group on future skills needs. [42561/18]
View answerMy Department works in collaboration with the Department of Education and Skills to ensure that the education and training system is producing the right talent pool to ensure the success of enterprise in Ireland.
In particular, my Department provides research and secretarial support to the Expert Group on Future Skills Needs (EGFSN). The EGFSN plays a key role in identifying and advising the Government on current and future skills needs, through the undertaking of research, analysis and horizon scanning on current and emerging skills requirements at thematic and sectoral levels. Recently completed and ongoing work being undertaken by the EGFSN includes analyses of skills needs or implications relating to the food and drink sector, design, high level ICT, Brexit/trade related skills needs, and digitalisation.
As part of the National Skills Architecture, the EGFSN presents its findings to the National Skills Council, which is chaired by the Minister for Education and Skills, and includes representation from the chief skills stakeholders within the Irish economy, including my Department.
Together with additional skills and labour market intelligence provided by the Regional Skills Fora, Skills and Labour Market Research Unit (SLMRU) in SOLAS, and employment permit trends, the Council works to enhance the response of the education and training system to the provision and delivery of those skills. In considering the recommendations of the EGFSN, the Government and relevant stakeholders are guided by the timeframes advised by the Group in its individual reports.
This National Skills Architecture, underpinned by robust analysis and data collection on skills needs, ensures an education and training system that can be responsive and flexible in meeting the evolving skills needs of the economy, especially under the impact of continuing technological change.
The research of the EGFSN and SLRMU also informs my Department’s Economic Migration Policy Unit, which holds responsibility for the employment permits system and manages the Highly Skilled Eligible Occupations List and Ineligible Categories List.
The employment permits regime is designed to facilitate the entry of appropriately skilled non-EEA migrants to fill areas of identified skills shortage. This objective is balanced by the need to ensure that there are no suitably qualified Irish/EEA nationals available to undertake the work, and the shortage is a genuine one. The rationale underpinning inclusion or omission from the occupations list is augmented by a consultation process that includes calls for submissions.
I have recently published the Review of Ireland's Economic Migration Policy led by my Department, the findings of which will update Ireland's employment permits system to make it fit for purpose against the backdrop of a changing economy and labour market.
The analysis of the EGFSN, and other work by my Department, have been reflected in the overarching longer term strategies for the education and training system published in recent years. These include Ireland’s National Skills Strategy 2025, and the Action Plan for Education 2016-2019, including its associated annual implementation plans, both of which have been developed by the Department of Education and Skills.
The EGFSN's analysis has also informed the development of my own Department’s framework policy for enterprise policy, Enterprise 2025 - Ireland’s National Enterprise Policy 2015-2025 and its recent refresh, Enterprise 2025 Renewed. It has also fed into the Action Plan for Jobs, and from 2019, the Future Jobs initiative, which will focus on raising productivity levels across the economy including through ready availability of relevant skills and talent.
31. Deputy James Lawless asked the Minister for Business, Enterprise and Innovation if she is satisfied that the national research prioritisation exercise allocated sufficient funding and resources to research projects in the discovery and basic-oriented research areas; and if she will make a statement on the matter. [36140/18]
View answerInnovation 2020 contains a commitment to support excellent research across the full continuum from basic research to the creation and development of research-informed innovative products, processes and services.
Government investment in R&D includes funding for programmes that encompass all disciplines and all types of research. It should be noted that public funding for research is awarded according to the criteria set out in the various funding programmes operated by research funders irrespective of whether the research is basic or applied.
The Government’s policy of Research Prioritisation aligns the majority of competitively awarded public investment in RDI with 14 priority areas that present market opportunities for Ireland and where there was a pre-existing, proven combination of enterprise relevance and research strength in Ireland.
Research Prioritisation aligns investment with the priority areas and themes, encompassing the full continuum of research, from basic through to applied as committed to in Innovation 2020.
My Department and its agencies are significant funders of research, providing over half of Government investment in RDI in 2017, amounting to €380 million.
Our agency, Science Foundation Ireland, estimates that more than 80 per cent of its funding of its portfolio of active research awards, approximately €130 million, is for oriented basic scientific research which takes place before the point of any type of commercialisation, at Technology Readiness Level (TRL) 1 and 2. These funding decisions are made through international peer review on the basis of research excellence and impact.
Other Government departments invest significantly in basic research, in particular the block grant from Department of Education and Skills, administered through the Higher Education Authority.
The most recent survey of Higher Education Expenditure on R&D, published in May 2017, showed that basic research accounted for 45.3% or nearly €330 million in 2014. A new HERD survey with revised figures will be published by my Department in the coming months.
As an additional support to drive basic research in Ireland, Innovation 2020 committed to establishing a new programme of funding for frontier research across all disciplines. The Irish Research Council launched the Frontier Research Programme or Laureate Awards in April 2017 with an initial fund of €2.5 million, to support researchers to undertake project-based frontier research and to develop as Principal Investigators. A total of €29.6 million was subsequently announced for these in March of this year.
32. Deputy John Curran asked the Minister for Business, Enterprise and Innovation the supports she has to prioritise entrepreneurs in view of the fact that there was a failure to make changes to entrepreneurs' capital gains tax in budget 2019 (details supplied); and if she will make a statement on the matter. [42566/18]
View answerMy Department and I are fully committed to ensuring a “fit for purpose” ecosystem of supports for entrepreneurs. In 2014, the Government launched the National Policy Statement on Entrepreneurship in Ireland, a five-year plan to double the jobs impact of start-ups on our economy.
To further underpin this commitment, my Department, in conjunction with the OECD earlier this year, commenced a Review of SME and Entrepreneurship issues and policies in Ireland. This is a collaborative body of work and will involve considerable input from wider Government and stakeholders.
The aim of the review is to provide tailored analysis and recommendations to my Department and to Government on how to improve the design and implementation of national SME and entrepreneurship policies and programmes, based on an assessment of the country’s current SME and entrepreneurship performance, framework conditions and policies based on international comparisons.
To meet the ongoing concerns of the small business sector my Department actively engages with representative organisations through the Advisory Group on Small Business (AGSB). This forum is chaired by my colleague Minister for Trade, Employment, Business, EU Digital Single Market and Data Protection, Pat Breen T.D. Meetings are held throughout the year in recognition of Government’s willingness and desire to engage on a continuing basis with our small business community.
My Department also chairs the SME Communications Group whose main responsibility is the online tool supportingsmes.ie. This is a cross-governmental initiative which helps Irish start-up and small business to navigate the range of Government supports. By answering 8 simple questions, an individual can find one or more of the most relevant State supports out of over 170 total supports.
In addition, my Department has created a Mapping of Supports database which compiles over 850 public and private sector supports for small businesses with contact details and addresses for the organisations in each category.
Budget 2019 saw a number of measures announced that will further support entrepreneurs to start, scale and internationalise their business from Ireland. These include:
- A Long Term €300m Future Growth Loan Scheme which will complement the previously announced €300m Brexit Loan Scheme that will provide businesses that are impacted or likely to be impacted by Brexit, the opportunity to borrow for up to ten years to support capital investment. It addresses the lack of availability of loans in the market place for long term loans of longer than five to seven years.
- An extra €5m being provided to the 31 Local Enterprise Offices to support start-ups and growth and in particular to support businesses to prepare for Brexit. This will include the provision of a new customs training programme for all businesses, exporters and importers, to be rolled out in conjunction with Enterprise Ireland.
- Following an extensive evaluation of Enterprise Ireland’s Seed & Venture Capital Scheme, a new programme of funding for the Scheme of €175m is to begin. The new Programme will be in place next year and will cover the period to 2024. The Programme will be aimed at seed and early stage investments, where the evaluation has shown there is a very clear market failure. It will actively direct investment to key sectors that have been identified for development as part of overall enterprise strategy and will be closely aligned with other key enterprise support programmes. The fund is expected to leverage a further €525m in private sector funding to make available a total of €700m. Well over 100 innovative Irish companies are expected to benefit, with thousands of jobs created and hundreds of millions of euros in additional exports generated.
The record budget allocation awarded to my Department in Budget 2019 has allowed me to fund a range of measures aiming to further drive indigenous enterprise and regional growth, in line with the objectives of the Regional Action Plans. These include:
- €2.75m allocated to Enterprise Ireland to fund a support programme of Regional Innovation and Technology Clusters. With this support Enterprise Ireland will progress a number of regionally focused initiatives linking SMEs and Institutes of Technology, and deliver new Project Ireland 2040 commitments to build regional sectoral clusters to scale and internationalise enterprise in all regions.
- €20m allocated funding for Phase 1 of the Disruptive Technologies Innovation Fund, a key element of Project 2040 which will see investment in the development and deployment of disruptive technologies and applications, on a commercial basis, targeted at tackling national and global challenges.
Given the importance of SMEs and entrepreneurship, I also welcome the announcement by my colleague, the Minister for Finance and Public Expenditure and Reform, Mr Paschal Donohoe, T.D., that the Employment Investment and Incentive Scheme (EIIS) scheme will be redesigned and will include a specific investor ready eligibility regime for investment in very small enterprises. Likewise, the announcement of enhancements to the Key Employee Engagement Programme (KEEP) share option scheme which will allow our SMEs to attract and retain talented individuals and encourage investment in their ideas in order for the businesses to scale and internationalise from Ireland.
Entrepreneur relief from Capital Gains Tax was introduced in Budget 2016, giving a rate of capital gains tax for qualifying gains of 20%. The rate was further reduced in Budget 2017 to 10%. Increasing the lifetime threshold to approximate parity with the UK was estimated to cost €48M and given the available fiscal space and other priorities, it was not possible to make this change in Budget 2019.
33. Deputy James Browne asked the Minister for Business, Enterprise and Innovation if she is satisfied with the level of IDA activity in County Wexford; and if she will make a statement on the matter. [42555/18]
View answerI understand that there are 18 IDA client companies located in County Wexford employing a total of 2,948 people there. I am pleased that these companies have exhibited strong growth in recent years, as evidenced by the 10% increase in IDA supported employment in the County from 2016 to 2017. Total employment in overseas companies in the South-East now stands at 14,785 people across 75 companies and the IDA continues to engage with its client base to help support further employment and investment growth in Wexford and the wider region.
While the employment trends in Wexford are positive, I recognise that there is room for improvement in the County. I am working hard, together with my colleagues across Government, to further unlock the economic potential of the County and to create more jobs for the area.
One potential means to create new opportunities is of course through new or expanded foreign direct investment (FDI). The IDA has a number of locations available for investment in Wexford which are being actively marketed to clients. These include lands at the IDA Business & Technology Park in Wexford Town, the Whitemill Industrial Estate in Wexford Town and a building and lands at the IDA Business Park in Enniscorthy. I am hopeful that further investors can be encouraged to situate in the area, whether at these sites or others, and thereby contribute further to the region's growth and job creation.
More broadly, I want to emphasise that creating jobs in the regions is a priority for both the IDA and my Department. I am focused on doing everything I can to deliver the fairest possible spread of investment across the country. The energy and resources we have invested into regional growth is, as the evidence illustrates, now helping produce results. In 2017, for example, the IDA delivered 99 regional investments with 45% of new jobs created outside Dublin. The last three years have seen 30,000 new FDI jobs created outside the capital. We will continue to do our utmost to encourage further such job growth across all parts of Ireland in the time ahead.
34. Deputy Charlie McConalogue asked the Minister for Business, Enterprise and Innovation the number of new first time investments by new IDA client companies in County Donegal for each of the past ten years; the percentage of the national total of new client investments in each of those years; and if she will make a statement on the matter. [42553/18]
View answerIn the past ten years there have been three new name investments in County Donegal out of a total of 18 investments in the County for that period. It is important to emphasise in this context, however, that foreign direct investment (FDI) performance is not necessarily reflected in new name investments, as almost 70% of all new FDI in Ireland comes from existing IDA client companies already situated in the country.
There has, as the evidence demonstrates, been a steady and positive increase in employment numbers in IDA Ireland client companies in Donegal over the past number of years. The County has experienced a 52% increase in FDI-driven employment since 2012 with job numbers in the Agency's client firms increasing from 2,223 in 2012 to 3,389 at the end of last year. This compares very favourably to the national average increase of 31% in FDI employment across that same period. In 2017 alone, the number of IDA supported jobs in Donegal increased by 11%, with the County now home to 12 IDA companies including SITA, Optibelt and Pramerica.
With respect to this year, the indications are that FDI in Donegal will continue to increase. For example, Abbott Laboratories has announced plans to expand its workforce in the County with the creation of 500 new jobs. Site visits by IDA client companies have also increased, with three visits as of the second quarter of 2018, compared to a total of two site visits in 2017.
While progress has been made in helping to generate new economic opportunities in Donegal, the Government remains determined to achieve more. That is why work is continuing to unlock further the economic potential in the County. The IDA remains pivotal to this and the Agency is engaging with its clients and with other enterprise agencies to create jobs and source new investment there.
The following table outlines total new name investment by IDA clients nationally from 2008 to 2017.
|
- |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
|
Number of New Name Investments |
36 |
39 |
47 |
61 |
65 |
78 |
88 |
94 |
99 |
111 |
35. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which she remains satisfied regarding the future of foreign direct investment and its potentially positive impact in respect of enterprise and innovation here; if she remains satisfied that indigenous and foreign direct investors will continue to invest based on the confidence generated by economic performance here; and if she will make a statement on the matter. [42739/18]
View answerIreland continues to perform very strongly in terms of attracting Foreign Direct Investment (FDI). It is a significant achievement that there are now over 210,000 people employed in IDA Ireland client companies here. The fact that the IDA has surpassed its overall five-year target of 209,000 within three years is further evidence of Ireland’s success in growing both the level of employment and investment by multinationals in the country.
However, I recognise that global competition for FDI is increasing all the time, and we must therefore work harder than ever to retain and promote our competitive advantages and to secure new investment projects. That means improving, if possible, on our already compelling and attractive offering for multinationals to invest here. These include strong incentives for research and development, our stable and competitive corporation tax regime, the long established pro-enterprise policy environment in this jurisdiction and our country's highly-educated workforce. By reinforcing these strengths and others, I’m confident we will be able to continue attracting more investment by overseas companies for years to come.
From an indigenous investment perspective, increasing the scale and internationalisation of indigenous enterprise is at the core of the ambition of Project Ireland 2040 and of Enterprise Ireland’s strategy 'Build Scale, Expand Reach 2017 – 2020'. This strategy seeks to inspire more Irish owned companies to have global ambition and to grow the annual exports of client companies by €5bn to reach €26bn in 2020. To support the diversification of Irish exports to new markets, Enterprise Ireland also published a new strategy to assist Irish exporters increase exports in Eurozone countries by 50% by 2020.
36. Deputy Maurice Quinlivan asked the Minister for Business, Enterprise and Innovation her plans to establish a co-operative development unit in her Department to encourage the development of co-operatives here; and if she will make a statement on the matter. [42713/18]
View answerMy Department supports co-operatives in the same way we support other enterprises. The co-operative model is one of a number of legal options that are available to those considering establishing themselves in business and the different models have their own distinct characteristics. It is of course up to each individual operation to choose the model that best suits the nature of the business and the desired ethos of the entity. My Department supports cooperatives in the same way as we support other enterprises.
I have no plans to establish a co-operative development unit within my Department at this point in time.
In terms of the policy and regulatory framework for co-operatives, the Friendly Societies and Industrial and Provident Societies (Miscellaneous Provisions) Act 2014 was aimed primarily at easing the regulatory burden on co-operative societies and making it easier to start up and run a co-operative as an alternative form of enterprise organisation. It addressed particular problems that were identified in the co-operative sector and helps to ensure this model would thrive and grow to its potential to promote appreciation of the co-operative as a form of enterprise organization.
My Department provides a full range of enterprise supports for new and existing businesses, primarily through its development Agencies, Enterprise Ireland, IDA and the Local Enterprise Offices. I would direct the Deputy to the online tool at www.supportingSMEs.ie. This tool helps startups and small businesses identify which Government support, out of over 170, meets their needs. Alternatively, searching my Department’s website (www.dbei.gov.ie) under the phrase “Which support is for you?”, will provide the Deputy with many useful resources for small businesses.
38. Deputy Mick Wallace asked the Minister for Business, Enterprise and Innovation the details of the funding increase to the Office of the Director of Corporate Enforcement; her plans regarding creating a statutory white collar crime agency; and if she will make a statement on the matter. [42715/18]
View answerThe Government agreed in October 2017 to establish the Office of the Director of Corporate Enforcement as an agency. The purpose was to give it greater autonomy over its resources and enhance its capacity to meet the increasing challenge of investigating suspected corporate offences. That decision was one of the Government’s package of “Measures to Enhance Ireland’s Corporate, Economic and Regulatory Framework”, which was published in November 2017 and is also referred to as the Government’s plan for tackling “white collar” crime.
This establishment of the ODCE as an Agency is intended to:
- enhance the ODCE’s independence, by providing it with more autonomy, particularly the ability to recruit the required specialist skills and expertise;
- build on its existing expertise and experience;
- strengthen its capability to investigate increasingly complex breaches of company law; and
- build on the organisational and procedural reforms that have been implemented by the current Director for Corporate Enforcement since 2012.
The Government has set out an ambitious timeframe for the establishment of the ODCE as an Agency. It is expected that the General Scheme of a Bill to give effect to this decision will be considered by Government shortly.
The Government is committed to ensuring that the new Agency will not be found wanting for the appropriate resources to carry out its functions.
Specific provision has been made in the Office’s pay allocation from 2015 to allow for the recruitment of additional staff. This has facilitated the recruitment of additional specialist expertise, including 8 Forensic Accountants, a Digital Forensic Specialist, 2 Enforcement Portfolio Managers and 2 Enforcement Lawyers.
Insofar as the 2019 allocations for my Department’s Offices and Agencies are concerned, the Expenditure Report 2019 set out the summary capital and current allocations for my Department in 2019. The gross allocation of €950.2 million for my Department in 2019 as set out in the Report represents an increase of 9.1% on the Department’s 2018 allocation of €871 million and includes an increase in our capital funding from €555m to €620 million in 2019 and also an increase in our current funding from €316million to €330.2million next year.
The distribution of the Department’s 2019 capital and current expenditure as and between its Offices and its Agencies will be determined through the 2019 Revised Estimates Volume (REV) process which will be conducted in the weeks ahead. It is expected that the Rev 2019 will be finalised and published in early December 2019.
39. Deputy John Curran asked the Minister for Business, Enterprise and Innovation her plans to address the serious skills shortages experienced by many companies across all sectors, the majority in information technology, life sciences and construction; the actions being taken to deal with severe skills shortages in the economy; the actions set out in the 2018 Action Plan for Jobs regarding skills shortages; and if she will make a statement on the matter. [42567/18]
View answerMy Department works in collaboration with the Department of Education and Skills to ensure that the education and training system is producing the right talent pool to ensure the success of enterprise in Ireland.
In particular, my Department provides research and secretarial support to the Expert Group on Future Skills Needs (EGFSN). The EGFSN plays a key role in identifying and advising the Government on current and future skills needs, through the undertaking of research, analysis and horizon scanning on current and emerging skills requirements at thematic and sectoral levels. Recently completed and ongoing work being undertaken by the EGFSN includes analyses of skills needs or implications relating to the food and drink sector, design, high level ICT, Brexit/trade related skills needs, and digitalisation.
As part of the National Skills Architecture, the EGFSN presents its findings to the National Skills Council, which is chaired by the Minister for Education and Skills, and includes representation from the chief skills stakeholders within the Irish economy, including my Department.
Together with additional skills and labour market intelligence provided by the Regional Skills Fora, Skills and Labour Market Research Unit (SLMRU) in SOLAS, and employment permit trends, the Council works to enhance the response of the education and training system to the provision and delivery of those skills.
This National Skills Architecture, underpinned by robust analysis and data collection on skills needs, supports an education and training system that can be responsive and flexible in meeting the evolving skills needs of the economy, especially under the impact of continuing technological change.
The research of the EGFSN and SLRMU also informs my Department’s Economic Migration Policy Unit, which holds responsibility for the employment permits system and manages the Highly Skilled Eligible Occupations List and Ineligible Categories List.
The employment permits regime is designed to facilitate the entry of appropriately skilled non-EEA migrants to fill areas of identified skills shortage. This objective is balanced by the need to ensure that there are no suitably qualified Irish/EEA nationals available to undertake the work, and the shortage is a genuine one. The rationale underpinning inclusion or omission from the occupations list is augmented by a consultation process that includes calls for submissions.
I have recently published the Review of Ireland's Economic Migration Policy led by my Department, the findings of which will update Ireland's employment permits system to make it fit for purpose against the backdrop of a changing economy and labour market.
The analysis of the EGFSN and other work of my Department have been reflected in the overarching longer term strategies for the education and training system published in recent years. These include Ireland’s National Skills Strategy 2025, and the Action Plan for Education 2016-2019, including its associated annual implementation plans, both of which have been developed by the Department of Education and Skills.
The EGFSN's analysis has also informed the development of my own Department’s framework policy for enterprise policy, Enterprise 2025 - Ireland’s National Enterprise Policy 2015-2025 and its recent refresh Enterprise 2025. It has also fed into the Action Plan for Jobs, and from 2019, the Future Jobs initiative, which will focus on raising productivity levels across the economy including through ready availability of relevant skills and talent.
This objective is reflected in chapter 4 of Action Plan for Jobs 2018, which includes actions around removing barriers and maximizing participation in the labour market, notably through implementation of the Pathways to Work strategy, activating groups outside the labour force, and introduction of a new work experience programme for young jobseekers; and facilitating female participation in employment through increased childcare supports and identifying the policy issues around cohorts with low participation rates.
The Action Plan also seeks to ensure the alignment of skills with enterprise needs, through completion of an independent review of the National Training Fund; roll out of the Skills for Growth initiative; development of training initiatives to improve in-company capability; support for increased apprenticeship registrations and programmes, and Springboard+ competitive calls; publication of the new ICT Skills Action Plan; completion of a study on Skills for the Digital Economy; and completion of the review of the employment permits system.
40. Deputy Thomas P. Broughan asked the Minister for Business, Enterprise and Innovation the status of the Comprehensive Economic and Trade Agreement; and if she will make a statement on the matter. [42550/18]
View answerThe 21st September 2018 was the first anniversary of provisional application of the EU – Canada Comprehensive Economic Trade Agreement (CETA). It is important to have CETA enter into force provisionally so that Irish companies may take advantage of the Agreement, which removes customs duties, substantially improves access to the Canadian public procurement market, opens up new sectors of the Canadian services market, reduces regulatory barriers and provides more transparent rules for market access.
It is important to note that the provisions relating to investment protection and the Investment Court System are excluded from provisional application. This means Ireland or other Member States will not be bound by these provisions until they are ratified by all Member States in accordance with their national law.
In this regard, given the request by Belgium for an Opinion (1/17) from the Court of Justice of the European Union (CJEU) on the compatibility of the Investment Court System in CETA with the European Treaties, my Department awaits the CJEU opinion on this matter which will inform our plans for ratification.
Ireland already has a strong trading relationship with Canada which is reflected in the €3.2 billion worth of annual trade between both countries. The value of Irish exports to Canada is worth €2.4 billion whilst the value of Irish imports from Canada is worth €780 million. I welcome the provisional application of CETA which will provide increased opportunities for new and existing Irish companies trading with Canada to build and develop further these relationships, providing increased growth and jobs.
41. Deputy Aindrias Moynihan asked the Minister for Business, Enterprise and Innovation if she is satisfied with the level of awareness and suitability of the various schemes to prepare small and medium-sized businesses for the effect of Brexit; and if she will make a statement on the matter. [42549/18]
View answerMy Department and its Agencies provide extensive supports to ensure that businesses are prepared for Brexit.
These supports aim to assist businesses in identifying key risk areas and the practical preparatory actions to be taken over the coming months.
The level of uptake of these supports shows that businesses are aware of the assistance on offer and are engaging with various initiatives and schemes that have been made available. A September 2017 survey reported that 38% of Enterprise Ireland clients surveyed had taken Brexit Actions. In May 2018, this figure increased to 85% of EI client companies surveyed.
The survey reported that client companies are taking action in areas such as market diversification; developing strategic partnerships; improving operational competitiveness, improving financial management, and strengthening business in the UK. This is a positive indication that companies are undertaking Brexit preparedness actions.
For instance, the ‘Brexit SME Scorecard’ is a new interactive online platform launched by Enterprise Ireland (EI) which can be used by all Irish companies to self-assess their exposure to Brexit. As of early October nearly 3,000 Brexit Scorecards have been completed.
It is important to note that companies are choosing from the full suite of supports that are available from the agencies. So while uptake on the specific Brexit supports, e.g. the Scorecard, may be low this is not to say that companies are not availing of other supports that suit their requirements.
The Be Prepared grant, also available through EI, offers SME clients a grant of up to €5,000 to assist them in preparing an action plan for economic shocks such as Brexit. The grant can be used to help cover consultancy, travel and travel expenses associated with researching the direction of their action plan. 137 Be Prepared Grants have so far been approved.
Enterprise Ireland has run 8 Brexit advisory clinics throughout the country to date. Approximately 590 people have attended these events to date and three more Clinics are due to take place before the end of the year in Dundalk, Waterford and Limerick.
The Local Enterprise Offices (LEOs) have organised various events to enable companies to learn about the potential impacts and opportunities of Brexit. 3,925 participants have taken part in these events. In addition, 263 LEO clients have received one-to-one mentoring solely focused on Brexit.
The LEOs engage in a number of other schemes to help companies prepare for Brexit. Technical Assistance Grants for Micro Export are offered as an incentive for LEO clients to explore and develop new market opportunities. 293 clients have been approved so far for this scheme. An additional €5 million is being provided to the LEOs for 2019 to assist firms deal with the challenges of Brexit. This will include the roll-out of a new customs awareness and training programme.
204 Brexit SME Scorecards have been completed in this period by clients that identified themselves as LEO clients.
The Brexit Loan Scheme, launched in March this year, makes a fund of up to €300 million available to eligible businesses to help them innovate, change or adapt to mitigate their Brexit challenge. So far, there have been 262 applications to the Scheme, with 224 approved by the Strategic Banking Corporation of Ireland.
InterTradeIreland’s Brexit Advisory Service was established in May 2017 to provide a focal point for SMEs, working to navigate the changes in cross-border trading relationships brought about by Brexit negotiations. As of early October, the Brexit Advisory Service has engaged directly with some 2,350 SMEs.
These are just some of the supports on offer through my Department to assist in preparing businesses for Brexit. I am encouraged by the fact that businesses are engaging in high numbers with these supports. It shows that many businesses are taking the first important steps of gathering information and preparing Brexit contingency plans.
42. Deputy Niamh Smyth asked the Minister for Business, Enterprise and Innovation the number of applications for the Brexit loan scheme as announced in budget 2019 from counties Cavan and Monaghan; and if she will make a statement on the matter. [42557/18]
View answerThe Brexit Loan Scheme provides affordable working capital to eligible businesses with up to 499 employees that are or will be impacted by Brexit and meet the scheme criteria. The €23 million exchequer funding (€14 million from my Department and €9 million from the Department of Agriculture, Food and the Marine) has been leveraged to provide a fund of up to €300 million.
It has been designed to assist eligible Irish businesses in the short-term to deal with the challenges of Brexit, which include the pressures of increased market instability and currency volatility. The scheme is open to both State Agency clients and businesses that do not have any relationship with State Agencies. Sole traders may also apply.
The scheme features a two-stage application process. First, businesses must apply to the Strategic Banking Corporation of Ireland (SBCI) to confirm their eligibility for the scheme. This application process requires businesses to use guidelines provided on the SBCI website to determine if they are eligible, and if so, to complete the eligibility form. As part of the process, businesses must submit a business plan, demonstrating the means by which they intend to innovate, change or adapt to meet the challenges posed by Brexit. Guidance is available on the SBCI website on completing a business plan. The SBCI assess the applications and successful applicants receive an eligibility reference number.
Successful applicants can then apply for a loan under the scheme with one of the participating finance providers. Participating finance providers are the Bank of Ireland, Ulster Bank and Allied Irish Bank. Approval of loans under the Brexit Loan Scheme is subject to the finance providers’ own credit policies and procedures. As part of its efforts to promote the scheme, the SBCI has participated numerous Brexit-related events, including an event earlier this year in Cootehill, County Cavan and they will be attending the Government’s Getting Ireland Brexit Ready event in Monaghan this Friday.
The scheme was launched in March this year and at the beginning of October 2018 there have been nine applications each from Cavan and Monaghan. I have recently me with the SBCI and the three pillar banks participating in the Scheme and I will continue to work with them over the coming months on the promotion of the Scheme.
43. Deputy Eamon Scanlon asked the Minister for Business, Enterprise and Innovation the way in which her Department is assisting small and medium-sized enterprises faced with escalating insurance costs and commercial rates, issues concerning access to banking services and the cost of credit; and if she will make a statement on the matter. [42565/18]
View answerSupporting our small and medium sized enterprises is a cornerstone policy for the Government and my Department. SMEs are vital to Ireland’s continuing recovery and all active enterprises in the State remain critically important.
The Government recognises that rising insurance costs for enterprise are an issue. For this reason, the Minister for Finance established the Cost of Insurance Working Group in July 2016. In terms of my own Department’s work, in December 2017 and in September 2018, on foot of a recommendation from this Working Group we published the First and Second Reports of the Personal Injuries Commission. The work of the Personal Injuries Commission, the implementation of the Report on the Cost of Motor Insurance and the complementary work of the Cost of Insurance Working Group should contribute to a better functioning personal injury litigation system and should also help to deliver reduced premiums for businesses.
In terms of commercial rates, the levying and collection of rates is a matter for each individual local authority. The Department of Housing and Planning has developed legislative proposals to modernise and consolidate the legislation governing commercial rates. Among the measures included in the General Scheme of the Bill are provisions to allow a local authority to introduce rates alleviation schemes to support the implementation of policy objectives.
In terms of access to finance, I understand that finance is critical to the success of business and providing appropriate and accessible finance to business is one of my top priorities.
As SMEs are more likely to be indigenous they have a higher reliance on funding from the Irish banking system than larger businesses or multinational enterprises. The cost of finance for Irish SMEs is higher than the European average according to the European Central Bank’s SAFE study. One explanation for this interest rate differential is that the SME lending market in Ireland continues to be highly concentrated. According to the latest Central Bank SME Market Report the combined market share of new lending of the three main banks was 82%. It is in this context that my Department has developed some important SME-specific initiatives to improve availability of affordable finance for SMEs.
The Strategic Banking Corporation of Ireland (SBCI) was established in 2014. It provides low cost, flexible finance to SMEs through its seven on-lending partners. By the end of December 2017, €920 million of SBCI supported lending has been provided to 22,965 Irish SMEs, operating across all sectors of the Irish economy and in all regions of the country, supporting 119,393 jobs.
The Credit Guarantee Scheme (CGS) has been operating since 2012 to encourage lending to commercially viable SMEs which, under normal lending criteria, are unable to obtain new or additional facilities from their bank. Following a review of the CGS, a new scheme which incorporates many positive changes, including an increase in the guarantee from 75% to 80% is being rolled out by the banks this year. In the lifetime of the Credit Guarantee Schemes to the end of June 2018, approximately €93.4 million in credit guarantee scheme facilities were sanctioned for 587 SMEs, resulting in 3,666 jobs being created or sustained.
Microfinance Ireland (MFI) was established to provide small loans from between €2,000 to €25,000 to start ups and established businesses. Since its establishment to the end of June 2018 MFI has approved loans totalling €25.4m that have helped to create or sustain 4,277 jobs so far.
I launched the €300 million Brexit Loan Scheme in March 2018 this year. This scheme will be available to eligible businesses with up to 499 employees. The scheme offers a competitive interest rate of 4% or lower. Loans will range from €25,000 to €1.5 million, with a loan term of up to three years.
The Future Growth Loan Scheme is currently being developed by my Department and the Department of Agriculture, Food and the Marine (DAFM) in partnership with the Department of Finance, the Strategic Banking Corporation of Ireland (SBCI) and the European Investment Fund (EIF). Through a counter-guarantee from the EIF, the Future Growth Loan Scheme will leverage €62 million of Exchequer funding, of which 60% will be provided by my Department and the remaining 40% will be provided by the Department of Agriculture, Food & the Marine over a five-year period to make a fund of up to €300 million available to eligible Irish businesses for terms of 8-10 years. Finance provided under the scheme will be competitively priced and have favourable terms, including the interest rate, with loans up to €500,000 unsecured. The scheme is expected to launch in early 2019.
44. Deputy Robert Troy asked the Minister for Business, Enterprise and Innovation her plans to deal with the average 16-week wait for working permits. [42666/18]
View answerAs the economy improves and we approach full employment my Department has experienced a high volume of employment permit applications in recent months which has led to some delays in processing applications.
At the end of September 2018, the total number of employment permit applications accepted was 12,530, a 29% increase over the same period in 2017.
During this period, the total number of employment permits issued was 9,284 a 10% increase over the same period in 2017.
The Employment Permits section in my Department is working to reduce the current waiting times of six weeks for applications from Trusted Partners who are regular users of the service, and account for 71% of total permits issued, and sixteen weeks for Standard applications, which account for 29% of permits issued.
My officials have been proactively engaging with customers to notify them of current delays through email, meetings and regular updates on the Employment Permits section of my Department’s website.
In order to reduce processing times, the Employment Permits section has introduced a number of operational changes, streamlined processes and implemented ICT solutions. Additional staffing resources have also been assigned to the section and a fast track training programme has been devised. I can assure you that all available resources are being deployed with the aim of reducing processing times.
Overall, the number of applications awaiting processing is starting to reduce as a result of the changes that have been implemented and this is expected to continue.
A reduction in processing times is anticipated in the coming weeks as the changes being implemented start to bear fruit.
