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Tuesday, 4 Dec 2018

Written Answers Nos. 67-80

IDA Ireland Site Visits

Questions (67)

Louise O'Reilly

Question:

67. Deputy Louise O'Reilly asked the Minister for Business, Enterprise and Innovation the number of IDA site visits in each county in the first, second and third quarters, respectively, of 2018 in tabular form; and if she will make a statement on the matter. [50528/18]

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Written answers

Creating more jobs outside of our main cities is a key priority for both the IDA and my Department. That is why, as part of Budget 2019, I secured €10 million in additional funding to allow the Agency to roll out the next phase of its Regional Property Programme. This brings the Agency's total Exchequer allocation for property next year up to €47m and means that the IDA will have further resources to continue investing in strategic sites, upgrading business parks and constructing buildings across the country. That should help to attract more overseas firms to regional locations and thereby create new employment opportunities.

Whilst the IDA is doing everything within its power to ensure its clients locate outside the country’s principal urban areas, attracting foreign direct investment (FDI) to the regions is not without its challenges. Many overseas firms, for example, will only consider large cities where there is ready access to transport hubs. Companies also often want to be located near competitors or clusters of other similar enterprises, which means they are more likely to decide to situate themselves in urban areas.

Despite those challenges, real progress is being made in increasing levels of FDI in the regions. In 2017, for example, 70% of all jobs created were outside Dublin, including 45% of all jobs created by IDA clients. Similarly, 65% of all Enterprise Ireland client employment is outside Dublin. This year, meanwhile, has seen a number of very high-profile investments in the regions, including in counties Longford, Sligo and Louth. We are working hard, across Government, to build on that progress and ensure further projects are secured for regional Ireland in the coming years.

I want to stress too that IDA Ireland does its utmost to encourage clients to locate in areas that are most in need of investment. While the final decision is always for the company in question itself to take, the Agency makes a particular effort to promote regional locations. This is reflected in site visit statistics for the first three quarters of 2018, where over half of the total number of 461 visits were to regional areas. A breakdown of site visits this year is set out in the table.

It should also be noted that FDI only forms one part of investment in regional locations. Indigenous enterprise is responsible for a significant portion of employment growth, especially outside Dublin. My Department, and its Agencies, work together constantly to ensure that jobs and investment – whether driven by FDI or indigenous firms – are spread as fairly as possible across Ireland.

Appendix A - Site Visits by County 2017 to Q1 2018

Note: Potential clients visiting Ireland may visit more than one county and may return to a location more than once. These figures represent individual visits and, therefore, are not indicative of the number of companies that have visited.

County

2017

Q1-Q3 2018

Dublin

327

209

Kildare

10

5

Meath

3

5

Wicklow

2

1

Laois

4

7

Longford

7

2

Offaly

5

4

Westmeath

42

18

Clare

22

9

Limerick

42

25

Tipperary

8

1

Cavan

2

1

Louth

22

15

Monaghan

1

1

Donegal

2

6

Leitrim

5

5

Sligo

18

12

Carlow

8

3

Kilkenny

6

3

Waterford

11

19

Wexford

3

3

Cork

51

45

Kerry

9

8

Galway

62

42

Mayo

7

5

Roscommon

3

2

Total

682

461

Online Business Voucher Scheme

Questions (68)

Maurice Quinlivan

Question:

68. Deputy Maurice Quinlivan asked the Minister for Business, Enterprise and Innovation the way in which she plans to encourage more businesses here to trade online; her plans to develop digital hubs in regional Ireland; and if she will make a statement on the matter. [50485/18]

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Written answers

My Department, through Enterprise Ireland (EI) and the Local Enterprise Offices (LEOs) delivers a wide range of funded and advisory eCommerce supports and training programmes for businesses to develop their online marketing capabilities.

In Budget 2019, I allocated €1.25m for a Retail Online Scheme which was recently launched by EI. The main objective of this Pilot scheme is to support retailers with a pre-existing online presence to develop and implement a more sophisticated and strategic online trading offer.

The LEOs nationwide actively promote the Trading Online Voucher Scheme (TOVS) on behalf of the Department of Communications, Climate Action and Environment. Since the start of the scheme in July 2014 to 30 June this year, over 4,100 micro enterprises have availed of trading online vouchers.

With regard to developing digital hubs, there are cross-governmental efforts encouraging a bottom-up approach to strengthening the regions, notably through the Regional Enterprise Development Fund, Urban Regeneration and Development Fund and the Rural Regeneration and Development Fund. Just yesterday, I announced the winners of the second call of the Regional Enterprise Development Fund. A number of the projects that have been offered funding were digital hubs such as:

- Galway City Innovation District CLG, Galway

- Hospital Food Units DAC, Limerick

- Ludgate Operations CLG, Cork

- Offaly Innovation & Design Centre CLG, Offaly and

- Sligo County Enterprise Fund CLG, Sligo.

My Department is committed to working with companies of all sizes and across all sectors to develop their online trading presence. It is essential to ensure that enterprises in all regions have strong digital resources and skills in order to ensure they remain competitive.

IDA Ireland

Questions (69)

Richard Boyd Barrett

Question:

69. Deputy Richard Boyd Barrett asked the Minister for Business, Enterprise and Innovation if she has discussed with IDA Ireland the reports that briefing documents within that organisation advised its executives to underestimate rents here when in discussions with multinationals; and if she will make a statement on the matter. [50388/18]

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Written answers

The Government fully recognises how important it is to increase the supply of affordable and quality housing. That is why significant resources have been invested into this area, including through the Rebuilding Ireland Action Plan which includes financing measures, new construction and rental sector improvements. These steps will, first and foremost, ensure that people in Ireland 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.

More broadly, it is important to bear in mind that international investors take a long-term view on where they choose to establish a presence. Investors also use a wide range of criteria to inform such decisions. Our traditional strengths are well known - including our talented workforce, membership of the EU and pro-enterprise policy environment - and these critical factors continue, as the healthy pipeline of investment here demonstrates, to make the country an attractive proposition to overseas firms.

We should not forget either that many of the States that we compete with for investment have challenges of their own – including in housing – when it comes to attracting overseas firms. So while we have infrastructural areas in this country that need further investment and improvement, we are not alone in facing that challenge.

IDA Ireland is fully seized of current housing market conditions in Ireland and recognises that this is an important issue for investors. I myself regularly engage with the IDA - as well as businesses themselves - about the enterprise climate in the country, including with respect to infrastructural issues. I understand that the Agency's assessments of the housing market are based on a wide range of sources and a combination of indices, with the aim of forming the clearest possible picture of how Irish rents compare internationally. These information sources are continuously reviewed and contribute to briefings used by IDA staff. It should be remembered too that the overseas firms that the IDA targets to invest in Ireland - many of whom are large multinational companies with an existing presence here – form their own opinions on housing supply and other investment conditions here.

The briefing documents in question highlight a number of indices regarding the Irish property market. They include a 2018 Residential Tenancies Board figure on average rents in Dublin City. Another index, which was sourced from the Nestpick 2017 Furnished Apartment Index, set out an estimate of the costs of renting small furnished apartments across County Dublin in 2017. I understand that it was not suggested by the IDA that this Nestpick index was an authoritative figure for the entire Dublin property market. Similarly, I understands that the IDA has never advised its staff to underestimate average rents in Ireland to potential investors.

Ticket Touting

Questions (70)

Maurice Quinlivan

Question:

70. Deputy Maurice Quinlivan asked the Minister for Business, Enterprise and Innovation when she plans to bring forward legislation to tackle the problem of ticket touting; and if she will make a statement on the matter. [50484/18]

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Written answers

At its meeting on 24th July 2018, the Government decided on a package of legislative measures dealing with the resale of tickets for entertainment and sporting events. In order to implement these measures, the Government agreed that it would support and amend the Prohibition of Above Cost Ticket Touting Bill introduced in January 2017 by Deputy Noel Rock and Deputy Stephen Donnelly and would take the second and subsequent stages of the Bill in Government time. The proposed legislation would ban the resale of tickets above their face value in designated venues with a capacity of 1,000 or over. The use of bot software to purchase tickets in excess of the number permitted by event organisers would also be prohibited. In addition, the legislation will give effect to the commitment given to UEFA to ban the unauthorised transfer and use of tickets for matches and official events taking place in Ireland during the EURO 2020 Championship.

While the Bill introduced by Deputies Rock and Donnelly was scheduled to have its second reading on 21 November, it did not prove possible to have the Second Stage debate on that date. I very much hope that the second reading of the Bill will proceed as soon as possible and look forward to hearing the contributions of Deputies to the debate on the Bill. My officials have meanwhile been working on a range of amendments and additions to the Private Members' Bill and expect to be in a position to submit these formally to the Office of the Parliamentary Counsel later this month. When finalised, the Government amendments will then be tabled at the Bill's Committee or Report Stage.

Industrial Development

Questions (71)

Bernard Durkan

Question:

71. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the degree to which innovation remains central to her plans to expand the manufacturing and the services sectors to the highest extent possible, mindful of the competition and with the objective of increasing opportunities for Irish interests on EU and world markets; and if she will make a statement on the matter. [50524/18]

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Written answers

Innovation is a cornerstone of Ireland’s overall economic development policy. It is key to maintaining competitiveness for Ireland in global markets, and for providing jobs and sustaining growth across the whole of the economy, including in the manufacturing and services sectors.

In 2018, Ireland rose to 9th place in the European Innovation Scorecard. We also retained our position in the Global Innovation Index, ranking 10th out of 126 countries.

Innovation 2020, Ireland’s strategy for research and development, science and technology articulates Ireland’s ambition to become a Global Innovation Leader, identifying several priority areas including ‘Advanced and Smart Manufacturing’, ‘Manufacturing and Novel Materials’ and ‘Innovation in Services and Business Processes’ as being particularly important for the Irish economy. The priority areas and themes were updated to reflect the impact of technological change and digitisation of the manufacturing and services sectors.

Recognising Ireland’s continued economic growth and prosperity depends on maintaining and indeed increasing investment across the broad science, technology and innovation spectrum.

My Department’s 2019 innovation budget has been increased to €368.95m – an increase of €40.25m over 2018 to be spent over a range of initiatives and programmes that advance innovation and facilitate opportunities for Irish interests on EU and world markets. Of particular relevance is the allocation of €20m for Phase I of the Disruptive Technologies Innovation Fund, which has a total fund of €500m as set out in Project Ireland 2040. Included also is an additional €10m in 2019 as part of a €100m dedicated PhD/Masters training programme through Science Foundation Ireland in areas aligned to enterprise needs.

Significant investments are also being made to develop the national ecosystem of research and technology centres in priority areas including that of manufacturing through Science Foundation Ireland, Enterprise Ireland and IDA Ireland. Two SFI Research Centres have a manufacturing focus, with “CONFIRM” focusing on smart manufacturing involving convergence of IT and industrial automation systems and “I-FORM” focusing on additive manufacturing. The focus of Enterprise Ireland’s Irish Manufacturing Research (IMR) Centre is Advanced Manufacturing. IMR is a one stop shop where manufacturing companies both multinational and indigenous, can collaborate to solve big manufacturing challenges in partnership with Irish and EU researchers.

My Department, along with the Department of the Taoiseach, is currently developing the Future Jobs Initiative, a new cross-Government strategy to guide the next phase of Ireland’s economic development. The focus is on quality jobs, improving productivity and building a resilient and innovative economy. Innovation and technological change is one of the five key pillars and this focus will have a positive impact on the development of both the manufacturing and services sectors.

Competition and Consumer Protection Commission Reports

Questions (72)

John Curran

Question:

72. Deputy John Curran asked the Minister for Business, Enterprise and Innovation if the Competition and Consumer Protection Commission has finalised its report on the operation of the household waste collection market; if the report will be published; and if she will make a statement on the matter. [50482/18]

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Written answers

On 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. Any actions arising from the study are a policy matter for the Minister for Communications, Climate Action and Environment.

Arms Trade

Questions (73)

Clare Daly

Question:

73. Deputy Clare Daly asked the Minister for Business, Enterprise and Innovation further to Parliamentary Question No. 211 of 24 October 2018, the number of licences that comprised the €120 million of temporary exports of military hardware for maintenance to another EU member state in January to June 2017. [50439/18]

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Written answers

Under the Control of Exports Act 2008, licences are required for the movement out of Ireland of military equipment listed in the Common Military List of the EU. My Department is responsible for implementing these controls and for processing applications for licences.

I publish an annual report as required under the Control of Exports Act 2008 which provides information on exports and transfers of military-classified equipment. The objective of publishing such a report is to provide the public with greater transparency on exports of controlled goods and services.

To provide more regular updates about exports of controlled goods, my Department publishes preliminary, summary data on the Department’s website on a six monthly basis.

The preliminary value of military licences originally published on the Department’s website in respect of the period from January to June 2017 was €132 million. A subsequent review of these licences identified licences issued in respect of temporary transfer of equipment to another EU Member State for maintenance purposes. While licences are required for such temporary transfers, as no export was ultimately involved, the total for the period from January to June 2017 was subsequently revised down to €12 million.

My Department issued 17 licences in respect of temporary transfers of equipment which is of military grade to another EU Member State for maintenance purposes, over the period January to June 2017. These licences were Individual Transfer Licences, as provided for in Directive 2009/43/EC of the European Parliament and of the Council simplifying terms and conditions of transfers of such products within the community.

Job Creation

Questions (74)

Tony McLoughlin

Question:

74. Deputy Tony McLoughlin asked the Minister for Business, Enterprise and Innovation the steps she has taken in budget 2019 to encourage and promote job creation in County Sligo and across the Border region; and if she will make a statement on the matter. [50520/18]

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Written answers

Since 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.

We want to have a situation where all regions are enabled to realise their potential as contributors to economic recovery and growth, and thereby reduce regional disparities.

Sligo and the Border region has seen good progress, with employment in the region increasing by almost 5.2% from Q1 2015 to Q3 2018. This equates to an additional 8,800 more people in employment in the Border Region. In 2017, Enterprise Ireland reported job increases of 7% in the North West and by 5% in the North-East; while IDA reported increases of 4% across the Border region.

Through partnership between Enterprise Ireland and the Local Authorities, the Local Enterprise Offices (LEOs) across the Border Region (Sligo, Leitrim, Donegal, Cavan and Monaghan) have 944 client companies employing 4,920 people.

I am happy to say that in Budget 2019, I secured an increase in my Department’s total exchequer allocation by 9.1% year on year, up from €871m to €950.2m.

This is made up of a record €620m in capital and €330.2m in current funding, which includes:

- an increase of €65m in capital – up 11.7% on this year’s allocation of €555m; and

- an increase of €14.2m in current – almost 4.5% more than our 2018 allocation of €316m.

Regional development was one of my three main priorities for Budget 2019 and I approved a range of measures to drive indigenous enterprise development and regional growth.

I allocated an extra €5m to the 31 LEOs, up 22% on 2018, which have a presence in every county, to support start-ups and growth and in particular to support businesses to prepare for Brexit. This will include a new customs training programme for all businesses, exporters and importers, to be rolled out in conjunction with Enterprise Ireland.

I was also pleased to announce an allocation of €10m to the next phase of the IDA’s Regional Property Programme. 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 in a number of regional locations, including in Sligo and Monaghan.

IDA Ireland is working to promote Sligo and the whole Border region to a range of potential investors, but especially in the areas of global business services, research and innovation and high-tech manufacturing.

I was also pleased to announce an additional capital allocation €2.75m to Enterprise Ireland to start developing regional innovation and technology clusters with Institutes of Technology right across the country, positioning them as drivers of world-class start-ups and growth enterprises.

Through Enterprise Ireland, I also doubled funding for the Online Retail Pilot Scheme to €1.25m in 2019, which will support SMEs in the retail sector to have a stronger online presence.

In addition, I also secured funding for a new phase of Enterprise Ireland’s Seed & Venture Capital Scheme out to 2024. The new scheme, which is worth €175m, will be oriented towards seed and early stage investments, where there is a very clear market failure.

I announced an additional €1.8m investment for the Design Craft Council of Ireland (DCCOI) which will assist craft enterprises all over the country to drive export sales, grow online revenue opportunities, and increase market diversification so as to underpin sustainable growth.

Finally, I announced a €300m Future Growth Loan Scheme for loans of up to 10 years. The Scheme has been developed by my Department with the European Investment Bank Group, the Department of Agriculture, Food and the Marine, and the Department of Finance together with the Strategic Banking Corporation of Ireland.

This Scheme is crucial as it will provide businesses the opportunity to borrow for up to ten years to support capital investment. It addresses the lack of availability of loans in the marketplace for loan-terms of longer than five-to-seven years.

Earlier this year I asked the Regional Action Plan for Jobs (RAPJ) Implementation Committees, including in the North-West and North-East, to refresh and refocus their plans so as to ensure their relevance and impact out to 2020, especially in the face of current challenges, including Brexit. This work is ongoing and is expected to conclude by year end.

On Monday, under the second call of the Regional Enterprise Development Fund (REDF), I announced an allocation of just over €29 million in funding that will support regions throughout the country to deliver on their economic and enterprise development potential.

21 projects from all over the country received funding. This is in addition to the €30 million in funding under Call 1 of the REDF that I announced in December 2017 that also funded 21 projects. The REDF is being rolled out by my Department, through Enterprise Ireland.

Over the first and second calls under the REDF, the North-East/North-West Region secured funding of over €10.6 million across seven projects.

The projects I announced under Call 2 on Monday were:

1. €953,640 for Leitrim Food Enterprise Zone: at Drumshanbo, Co. Leitrim.

2. €1.9 million for a digital/tech enterprise hub in Sligo for entrepreneurs in digital gaming and associated tech sectors providing holistic support for start-up, innovation and growth.

3. €4.9 million for a 'Bioconnect' Biotechnology Innovation Centre: for cutting edge biotechnology research in Monaghan and the wider Region.

4. €250,000 to establish an Engineering Network of companies and local stakeholders in the North-East to safeguard and future develop the engineering sector.

These projects are in addition to the funding received under Call 1 which I announced last year, including:

€1.2 million for the development of a network of three Digital and Innovation Hubs in Counties Leitrim, Cavan and Longford; €1.1 million for the creation of an innovation ecosystem in Inishowen, Co Donegal; and €202,800 for the development of a Regional Food Centre of Excellence in Monaghan.

These initiatives will support Border region to deliver on its economic and enterprise development potential.

Brexit Supports

Questions (75)

Tony McLoughlin

Question:

75. Deputy Tony McLoughlin asked the Minister for Business, Enterprise and Innovation her views on the role InterTradeIreland can play in supporting businesses in Border counties through the challenges of Brexit; and if she will make a statement on the matter. [50521/18]

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Written answers

My Department and its agencies are providing extensive supports to help businesses prepare for Brexit.

InterTrade Ireland (ITI) works with SMEs on an all-island basis and is especially well-positioned, given its remit to develop cross-border trade, to help SMEs prepare for the particular North-South challenges associated with Brexit. This has been a key priority for the body since the decision by the UK to leave the European Union in June 2016.

One of the principal means through which ITI is assisting businesses in preparing for the UK’s withdrawal from the European Union is the body’s Brexit Advisory Service. Established in May 2017, it provides a focal point for SMEs working to navigate any changes in cross-border trading relationships that may arise. As part of the service, ITI has organised a series of awareness events focused on improving knowledge of customs processes and procedures and identifying actions that can be taken in areas such as logistics and supply chain management. ITI also offers a "Start to Plan" voucher, worth up to €2250 each, which helps companies to get professional advice on how best to plan and prepare for Brexit. To date, over 600 vouchers have been approved for companies and there have been over 750 enquiries to the Brexit Advisory Service.

ITI are planning to expand its range of Brexit supports in 2019. The new initiatives will include a ‘‘Start to Act’ voucher, valued at €5,000. The Brexit Advisory Service will also increase its digital learning delivery, making content available in an online training environment that can be conveniently accessed by SMEs.

To support this important work, my Department will provide an additional €1 million in capital funding to ITI in 2019. This funding will enable the body to engage with more of the companies that are seeking its support through the Brexit Advisory Service, as well as meeting demand for existing programmes which are all designed to promote and support cross-border trade.

As regards our wider efforts to help enterprise prepare for Brexit, significant additional financial resources have been provided to the enterprise agencies and regulatory bodies under my Department for 2019. This includes €5 million in further funding for the local enterprise offices to increase their Brexit supports to businesses in every county.

I want to emphasise that our preparations for Brexit remain an absolute priority for my Department. I know how important it is that businesses, across the country, are as best equipped as possible for the challenges that Brexit will present. All the agencies and bodies under my Department will continue to focus on this work into 2019 and beyond.

Proposed Legislation

Questions (76)

Peter Burke

Question:

76. Deputy Peter Burke asked the Minister for Business, Enterprise and Innovation the status of the proposed legislation to tackle the issue of expiration dates on gift vouchers; if the legislation will be published before Christmas; and if she will make a statement on the matter. [50525/18]

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Written answers

On 12 June 2018, the Government approved the drafting of the Unfair Contract Terms (Gift Vouchers) Bill 2018. The Bill provides, first, that gift vouchers must be valid for a minimum term of five years and, secondly, that the Minister for Business, Enterprise and Innovation, would have power to set fees for the issue and replacement of gift vouchers and for inactive balances on gift vouchers (commonly referred to as dormancy or maintenance fees).

Officials of my Department are currently working on the text of the Bill with the Office of the Parliamentary Counsel with a view to finalising the drafting in the coming weeks.

Export Controls

Questions (77)

Maureen O'Sullivan

Question:

77. Deputy Maureen O'Sullivan asked the Minister for Business, Enterprise and Innovation the rationale for Ireland opposing the EU export controls on surveillance software; and if she will make a statement on the matter. [48082/18]

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Written answers

Ireland is not opposing EU export controls on surveillance software. On the contrary, Ireland fully supports and implements all EU controls on the export of surveillance software to countries outside of the EU.

The EU operates an export control regime designed to counter the proliferation of weapons of mass destruction, to support regional stability and to protect human rights. My Department is the national competent authority with responsibility for implementing Council Regulation 4028/2009 setting up a Union regime for the control of exports, transfer, brokering and transit of dual-use items.

Dual-use items are goods and technology that have both civil and military applications. A range of cyber-surveillance technologies fall within the scope of this regulation, including Internet Protocol (IP) network communications surveillance systems or equipment; Telecommunications interception and monitoring equipment; and Intrusion Software. In particular, an export licence is required before these items can be exported to countries outside of the EU.

When assessing a licence application, my Department takes into consideration a number of criteria as set out in the Dual-use regulation, including human rights in the destination country. My Department consults with the Department of Foreign Affairs and Trade in this regard.

The EU implements over thirty sanctions regimes targeting specific countries and entities as part of the Common Foreign and Security Policy. A key objective of EU sanctions regimes is to support democracy and human rights around the world. My Department is responsible for implementing trade-related sanctions and a number of these include prohibitions on the export of cyber-surveillance technologies to the targeted countries.

Ireland is strongly committed to the protection of human rights; it is a cornerstone of our Foreign Policy. Ireland has long been at the forefront of global efforts to promote Human Rights. Ireland is strongly committed to the universality, indivisibility and inter-relatedness of all Human Rights, as set out in the corpus of UN and EU treaties, covenants and protocols. Ireland is actively working with the UN, NGOs and through its overseas development programme, Irish Aid, to promote and protect Human Rights.

In September 2016 the European Commission published its proposal for a revision of the 2009 Dual-use regulation. The proposal incorporates additional EU controls on the export of cyber-surveillance technologies. This is a complex document with potentially far-reaching implications. In January 2018 the European Parliament put forward 98 amendments to the Commission's proposal. The Commission's proposal and the Parliament's amendments are currently under consideration in the European Council's Working Party on Dual-use Goods. Ireland is cooperating with other Member States to ensure that the revised regulation will be effective and proportionate.

Rural Regeneration and Development Fund

Questions (78)

Jan O'Sullivan

Question:

78. Deputy Jan O'Sullivan asked the Minister for Business, Enterprise and Innovation if she had an input into the criteria for qualification for the rural regeneration and the urban regeneration funds; if so, the extent to which job creation is a priority in the allocation of funds; if the successful projects will be monitored to ensure that objectives relevant to her Department will be achieved; and if she will make a statement on the matter. [50418/18]

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Written answers

The Urban Regeneration and Development Fund and the Rural Regeneration and Development Fund form part of Project Ireland 2040, and will help in delivering the Government's ambition to transform communities of all sizes through imaginative regeneration bringing life back into cities, towns and villages. It should be noted that the Minister for Housing, Planning and Local Government has responsibility for the Urban Regeneration and Development Fund while the Minister for Rural and Community Development has responsibility for the Rural Regeneration and Development Fund.

The Rural and Urban Funds complement well the €60m Regional Enterprise Development Fund (REDF), which I, as Minister for Business, Enterprise and Innovation, am leading in my Department. I announced the second round of successful applicants for the REDF yesterday, 3rd December, which are in addition to the 21 successful projects I announced in December 2017 under the first REDF call for proposals.

I understand that the qualification criteria and programme monitoring arrangements for each of the Rural and Urban funds have been developed by the respective Departments, in order to align with the National Strategic Objectives as set out in Project Ireland 2040. Details of the qualification criteria for the two funds are set out on the relevant websites (https://drcd.gov.ie/about/rural/rural-regeneration-development-fund and http://npf.ie/urdf ). The Department of Housing, Planning and Local Government and the Department of Rural and Community Development have oversight of the funds and have established the financial governance and project reporting requirements for applicants.

My Department is represented on the Project Ireland 2040 Delivery Board, which oversees the implementation of Project Ireland 2040. The Project Ireland 2040 Delivery Board has a high-level oversight role and is not responsible for individual funding decisions. Furthermore, my Department was represented on a 'Project Advisory Board' for both funds, which were established to assist the relevant Departments in assessing proposals received against the criteria outlined in the funds' supporting information documents.

I welcome both of these initiatives and am encouraged by the quality of the projects announced so far. From my Department's perspective, Enterprise 2025 Renewed - Ireland's National Enterprise Policy highlights the strong interdependence between the development of attractive urban and rural environments and where companies choose to establish, invest and create jobs. Such 'place-making' is a key element to ensuring communities across Ireland are attractive for Irish and foreign-owned businesses to invest in, and for people to live in. Both the Urban Regeneration and Development Fund and the Rural Regeneration and Development Fund will provide valuable contributions towards achieving this goal.

IDA Ireland Data

Questions (79)

Eugene Murphy

Question:

79. Deputy Eugene Murphy asked the Minister for Business, Enterprise and Innovation the level of IDA funding, job creation and employment gains in counties Galway and Roscommon from 2015 to 2017 and to date in 2018, by county, in tabular form; and if she will make a statement on the matter. [50332/18]

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Written answers

My Department and its agencies are working towards ambitious targets to ensure that employment and investment are distributed as evenly as possible across the country. This includes Counties Galway and Roscommon, which the IDA markets as part of the West region.

There are approximately 19,000 people employed in 85 foreign direct investment companies across Galway and Roscommon. From 2015 to 2017, FDI employment in Galway increased by 15% with 2,329 net new jobs added. In Roscommon meanwhile, FDI employment increased by 13% with 134 new jobs added by IDA client companies in the same period. Information on the number of jobs created in 2018 will not be available until my Department carries out its Annual Employment Survey (AES) at the end of this year.

The IDA is authorised by my Department to provide a range of financial supports to its client companies in the form of employment, capital, research and development, environmental and training grants. These grants are an important means of encouraging companies to invest in Ireland, particularly in regional locations. From 2015 to 2017, IDA Ireland paid a total of €39,650,095 to its client companies in Galway and €918,500 to its clients in Roscommon. Grant payment figures are released on an annual basis and information on the total paid to IDA client companies in 2018 will be made available once they have been audited by the Comptroller and Auditor General.

The IDA continues to promote Galway and Roscommon to a range of potential investors in order to encourage further investment and job creation. As part of that effort, the IDA regularly engages with key stakeholders on the ground in both counties, including with local authorities, public bodies, the education sector and companies from both its own client base but also from the indigenous sector.

While we have made progress in helping to generate new economic opportunities in Galway and Roscommon, we are determined to achieve more. That is why we are working hard, across Government, to further unlock the economic potential of the region. The Enterprise Agencies remain pivotal to this and they continue to engage with their clients, and with one another, to create jobs and source new investment for the area.

The following tables provide a breakdown of grants paid by IDA Ireland to its client companies in both counties and employment figures there for the period between 2015-2017.

Table A - IDA Ireland Grants Paid to Client Companies in Galway and Roscommon 2015-2017

County

2015

2016

2017

TOTAL

Galway

€18,357,383

€13,611,022

€7,681,690

€39,650,095

Roscommon

€733,000

€0

€185,500

€918,500

Table B - Total IDA Ireland Employment Data in Galway and Roscommon 2015-2017

County

2015

2016

2017

Galway

15,367

16,932

17,696

Roscommon

994

985

1,128

Regional Development Initiatives

Questions (80)

Eugene Murphy

Question:

80. Deputy Eugene Murphy asked the Minister for Business, Enterprise and Innovation the steps being taken to address the imbalance in regional development and job creation in view of recent CSO figures (details supplied); and if she will make a statement on the matter. [50333/18]

View answer

Written answers

I note the release of the results of the Labour Force Survey for Q3 2018 as issued by the CSO Tuesday November 20th.

Overall the release is very positive. Figures show that employment continues to grow strongly with 66,700 jobs created in the year from Q3 2017 to Q3 2018. This brings total employment to 2,273,200.

The number of people in employment has increased in six of the eight regions in the year from Q3 2017 to Q3 2018. The exception to this is the Mid-West (which has remained static) and the Border region.

In the West Region, in the year to Q3 2018, an extra 5,100 people were in employment. In the same period, there were 1,100 fewer people unemployed in the Region.

Since 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.

We want to have a situation where all regions are enabled to realise their potential as contributors to economic recovery and growth, and thereby reduce regional disparities.

Under the Regional Action Plan for Jobs (RAPJ) we committed to achieving an overall jobs uplift of between 10 and 15 percent in each region by 2020 and to bring and/or maintain unemployment levels in each region to within at least one percentage point of the State average.

Since the launch of the RAPJ there has been an increase of 258,800 people in employment across the State since Q1 2015 to Q3 2018, with 163,500 people in the regions outside Dublin entering employment in that period.

That is over 63% - or 3 out of every 5 jobs created – for regions outside of Co. Dublin (Q1 2015 – Q3 2018).

In the year from Q3 2017 – Q3 2018, just over half (51%) of the jobs created were outside of Co. Dublin.

The West has seen good progress under the RAPJ, with employment in the region increasing by 15.7% from Q1 2015 to Q3 2018. There are 28,400 more people in employment in the region from Q1 2015 to Q3 2018.

Live Register numbers have fallen in all three counties in the West Region in the past 12 months.

CSO figures show that the unemployment rate in the West Region is currently at 6.6% (Q3 2018), which is slightly higher than the State average but is within one percentage point of the State average.

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.

In 2017, both Enterprise Ireland and IDA reported job increases in the West of 7% and 5% respectively. Through partnership between Enterprise Ireland and the Local Authorities, the Local Enterprise Offices (LEOs) in 2017, had 628 client companies in the West employing 3,057 people. This is an increase of 152 jobs from 2016.

IDA meanwhile will continue to target a minimum increase in investment of 30% to 40% in each region outside Dublin to 2019.

The West Region 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 West Region Plan, to ensure their effectiveness, relevance and impact out to 2020, particularly in light of Brexit. This work is ongoing at present and the Plans are due to be completed by the end of the year.

On Monday, under the second call of the Regional Enterprise Development Fund (REDF), I announced an allocation of just over €29 million in funding that will support regions throughout the country to deliver on their economic and enterprise development potential.

21 projects from all over the country received funding. This is in addition to the €30 million in funding under Call 1 of the REDF that I announced in December 2017 that also funded 21 projects. The REDF is being rolled out by my Department, through Enterprise Ireland.

Over the first and seconds calls under the REDF, the West Region secured funding of over €7.1 million across four projects.

Under Call 2 of the REDF I announced:

- €2.4 million for Galway City Innovation District to provide coworking space, private office space and event space for scaleup companies and a landing site for FDI companies.

- €2 million for the development of a market-focused Marine Innovation and Development Centre at Midc Páirc Na Mara.

- €182,786 for the Burren Lowlands project that will create a focus point for the development of activities to create and attract additional jobs to this area.

These three projects are in addition to the funding received by the BIA Innovator Campus under the first call, which will support food entrepreneurship in the West.

The National Planning Framework (NPF), as part of Project Ireland 2040, aims to guide the future development of Ireland over the next 20+ years, and to influence the spatial patterns of a projected 1 million increase in our population. The NPF and the 10-year National Development Plan have been developed in alignment with each other in order to explicitly link spatial planning policy and infrastructure capital investment. Taken together, will help unlock the potential in the regions.

The Government is focused on unlocking the potential in the regions. Co-ordinated delivery of infrastructure, at the same time as enabling regional enterprise development under Project Ireland 2040, should help to better distribute our future anticipated population growth across the whole country – while also tackling congestion and quality of life issues.

The next step in the delivery of the National Planning Framework involves the development of Regional Spatial and Economic Strategies (RSESs) for each of three regions (Eastern-Midlands, Southern, North-Western). These will provide a statement of regional ambition and articulate the unique characteristics of each region, with a focus on the interaction between spatial policy and enterprise opportunities.

My Department, and the enterprise development agencies, have been engaging pro-actively with each of the Regional Assemblies to ensure that national enterprise and innovation policies are reflected in the draft strategies. It is our view that the RSESs should have a focus on ‘place-making’ to facilitate the creation of concentrated settlements, in which people can live and work in a vibrant environment, and public services can be efficiently provided as envisaged by the Ireland 2040 plan. We know that there is a strong interdependence between the planning and development of attractive places and where companies will choose to establish, invest and create jobs.

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