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Tuesday, 14 May 2019

Written Answers Nos. 244-261

Industrial Relations

Questions (244)

Bríd Smith

Question:

244. Deputy Bríd Smith asked the Minister for Business, Enterprise and Innovation her plans to amend the Industrial Relations Act 1990 to ensure retired workers have representation at State arbitration services, especially in situations in which their pension schemes are affected by decisions taken by negotiations between employers and employees; and if she will make a statement on the matter. [15649/19]

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Written answers

Access to the industrial relations machinery of the State is governed by the definition of “worker” in Section 23 of the Industrial Relations Act 1990, which provides, inter alia, that a “worker” means any person aged 15 years or more who has entered into or works under a contract with an employer.

In addition, Section 3 of the Industrial Relations Act 1946 provides that a dispute between a worker and an employer only arises if it is connected with the employment, non-employment or the terms of the employment or with the conditions of employment of any person.

Where a person is retired they cannot have a dispute concerning their employment or non-employment. However, a matter which arose prior to an individual’s retirement and which was referred to the Workplace Relations Commission or Labour Court prior to the individual’s retirement can be investigated.

Access of individual former employees to the industrial relations machinery of the State under the Industrial Relations Acts, where they have not referred their claim prior to their retirement, was extended by the Industrial Relations (Amendment) Act 2015. This was done by means of an amendment to Section 26 of the Industrial Relations Act 1990. Such access is limited to 6 months from the date employment ceased. This may be extended to a further 6 months if reasonable cause is shown.

No case can be referred to the workplace relations bodies that comes within the remit of the Pension Ombudsman. The role of the Pensions Ombudsman is to act by independent and impartial means of resolving complaints alleging financial loss occasioned by an act of maladministration and disputes of fact or law in relation to occupational pensions schemes and Personal Retirement Savings Accounts.

At this time, I have no plans to amend the Industrial Relations legislation in so far as it relates to retired persons.

IDA Ireland Site Visits

Questions (245)

Aindrias Moynihan

Question:

245. Deputy Aindrias Moynihan asked the Minister for Business, Enterprise and Innovation the number of site visits by the IDA to County Cork in 2018; the steps she is taking to increase the number of visits to the county; and if she will make a statement on the matter. [20614/19]

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Written answers

Cork continues to be an extremely strong performer in terms of foreign direct investment (FDI). This trend is continuing, with a steady and positive increase in employment numbers in IDA Ireland client companies in the County over the past number of years. There are currently 169 IDA client companies in Cork, employing approximately 39,000 people. 

In terms of recent growth, from 2017 to 2018 employment in IDA client companies there increased by over 5%, with 2,087 net new FDI-supported jobs added in the County. There have also been a number of particularly significant job announcements by IDA clients in Cork, including 400 jobs at VoxPro, 200 positions at Deutsche Borse Group and 100 new jobs at Forcepoint.

With regards to site visits, Cork has hosted 17 site visits as of the first quarter of 2019. Last year, the County hosted a total of 61 site visits, compared to 51 visits that took place in 2017. The Agency also owns a number of properties and sites in County Cork which are being actively marketed to clients through its network of offices in Ireland and overseas.

It is clear that FDI levels in Cork are trending in the right direction. The County continues to maintain a significant enterprise base and remains a dynamic and attractive destination for overseas companies. Work will nevertheless continue, by both the enterprise agencies and the Government, to help ensure it continues to attract further investment.

Brexit Supports

Questions (246)

Aindrias Moynihan

Question:

246. Deputy Aindrias Moynihan asked the Minister for Business, Enterprise and Innovation the uptake in the number of schemes in support of businesses preparing for Brexit; and if she will make a statement on the matter. [20615/19]

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Written answers

Brexit represents a significant challenge for businesses in Ireland, which cannot be underestimated. That is why my Department started developing supports for businesses from the time when Brexit first became a possibility. Government’s priority is to ensure that businesses around the country can manage risks and avail of any opportunities. This has informed the range of advisory and financial supports that are in place.

I have allocated an additional €5 million capital funding to the Local Enterprise Offices, an increase of 22% for 2019, and a further €1 million allocated to InterTradeIreland to help SMEs prepare for the challenges associated with Brexit.

The Local Enterprise Offices [LEOs] are the first-stop-shop for anyone seeking guidance and support on starting or growing their business. The LEOs have organised various events to enable companies to learn about the potential impacts and opportunities of Brexit.

In addition, over 590 LEO clients have received one-to-one mentoring solely focused on Brexit. Technical Assistance Grants for Micro Export are offered as an incentive for LEO clients to explore and develop new market opportunities. 651 LEO clients have been approved for the Technical Assistance Grant.

As of February 2019, the LEOs are also offering customs training workshops to support in businesses trading with third countries in advance of the UK’s withdrawal from the EU. 199 Participants have attended Customs Training.

InterTradeIreland also plays a major role as part of Ireland’s Brexit response and offers Brexit-related advisory services to eligible businesses. To date, more than 7,000 SMEs have directly engaged with the Brexit Advisory Service.

ITI offers a Brexit Start to Plan voucher scheme, which enables businesses to get professional advice on how best to plan and prepare for the UK's withdrawal from the European Union. This support helps businesses obtain advice on specific areas such as tariffs, currency management, regulatory and customs issues and movement of labour, goods and services. ITI vouchers are worth up to €2,250 (inclusive of VAT) each. 1,476 businesses have applied for a Brexit Start to Plan voucher, of which 1,310 have been approved.

The Brexit Loan Scheme, launched in March of 2018, provides relatively short-term working capital, 1 to 3 years, to eligible businesses with up to 499 employees to help them to innovate, change or adapt to mitigate their Brexit challenges. Businesses can confirm their eligibility with the Strategic Banking Corporation of Ireland (SBCI) and, if deemed eligible, can apply to one of the participating finance providers for a loan under the scheme.

As at 10th May, there have been 614 applications for eligibility under the scheme, of which 557 have been approved to date by SBCI. 124 of those applications have progressed to sanction at bank value, to a total value of €27.77m.

The Future Growth Loan Scheme was launched on the 17 April, and provides a longer-term facility, 8 to 10 years, of up to €300m to support strategic capital investment for a post-Brexit environment by business at competitive rates. The Scheme is currently accepting eligibility applications. Since the 17 of April 115 applications have been received, 108 of which have so far been deemed eligible.

Enterprise Ireland has established a Prepare for Brexit online portal and communications campaign, as well as an online “Brexit SME Scorecard” to help Irish businesses self-assess their exposure to Brexit and a “Be Prepared Grant” to support SME clients in planning to mitigate risks arising from Brexit. It has also launched a new Eurozone Strategy to help SMEs broaden their export footprint beyond the UK.

Over 5,100 business have used Enterprise Ireland’s Brexit Scorecard to date and 85% of EI client firms are now taking actions, while 194 applications for the Be Prepared grant have been approved. 233 EI clients have received funding under its “Act On” programme, which supports the engagement of a consultant to help clients identify weaknesses and improve resilience. EI has also hosted 16 Brexit Advisory Clinics.

EI also launched a Customs Insights Online course at the beginning of the year. This is a new online training support to help all businesses understand how customs work including the documentation and process required to operate and succeed post Brexit. The Customs Insights course explains in clear and simple terms the main customs rules and included the key actions companies can take to prepare for customs after Brexit and the options from Revenue that are available to make the customs process more efficient. This will be available for any company to use whether they are importers or exporters and also whether they are agency clients or not. There have been over 1,200 Customs Insights Course participants.

While I have seen a very positive uptake of the supports available, I am conscious that the delays to Brexit may have led businesses to defer their immediate planning. However, the UK’s exit from the EU will mean changes for Irish businesses. I want businesses to know that my Department and its agencies are here to help. The existing supports, schemes and advice are in place to ensure that businesses are prepared for any Brexit scenario.

Brexit preparedness supports - uptake of available schemes

Scheme

Uptake (08 May 2019)

Brexit Loan Scheme

614 applications received, 557 approved by SBCI, 124 Loans progressed to sanction at bank level to a value of €27.768 million.

(Uptake as of 10 May 2019)

Enterprise Ireland Brexit Scorecard - online platform for Irish companies to self-assess their exposure to Brexit

5,194 Brexit Scorecards have been completed. 1015 LEO clients have completed the scorecard.

Enterprise Ireland Be Prepared Grant

194 Be Prepared Grants have been approved

Enterprise Ireland Market Discovery Fund - A support to EI clients to research new markets

149 projects have been approved under this initiative[1]

Enterprise Ireland Prepare to Export Scorecard

3,332 Prepare to Export Scorecards have been completed

Enterprise Ireland Customs Insights Online Course

1,214 Customs Insights Course participants

Enterprise Ireland Agile Innovation Fund - Gives rapid fast-track access to innovation funding

47 Agile Innovation projects have been approved

Enterprise Ireland Brexit Advisory Clinics

16 Brexit Advisory Clinics have been run with over 1,200 in attendance

Enterprise Ireland Brexit “Act On Programme” – A support funding the engagement of a consultant to devise report with recommendations to help clients address weaknesses and improve resilience

233 “Act on” Plans have been completed

Enterprise Ireland Strategic Consultancy Grant – A grant to assist EI clients to hire a strategic consultant for a set period

1,062 Strategic Consultancy Grants have been approved[2]

Local Enterprise Office Technical Assistance Grant for Micro Export - an incentive for LEO clients to explore and develop new market opportunities

651 clients were approved assistance under the Technical Assistance Grant (end March 2019)

Local Enterprise Office LEAN for Micro - The LEO Lean4Micro offer was developed in collaboration between the EI Lean department and the LEOs to tailor the EI Lean offer for LEO micro enterprise clients

308 LEO clients have participated in the programme (end March 2019)

Local Enterprise Office Mentoring

593 mentoring participants solely focused on Brexit (end March 2019)

Local Enterprise Office Brexit Seminars/Events

4,300 Participants at the Brexit Information events (end March 2019)

Customs Training Participants

199 Participants attended Customs Training

InterTradeIreland Brexit Advisory Service

2,930 SMEs have directly engaged with the Brexit Advisory Service in 2019. This is in addition to the 4,175 engagements in 2018.

InterTradeIreland Brexit Start to Plan Vouchers

There have been 1,476 applications, with 1,310 approved and 23 still pending assessment.

Pilot Online Retail Scheme administered by Enterprise Ireland

11 retailers were awarded funding in February 2019. There will also be a second call in 2019

[1] The Market Discovery Fund figure listed at 140 is lower than that of the end of February document figure of 251. The 133 figure refers to the number of businesses approved, while the earlier number of 251 referred to the number of projects approved. This is now how it is reported to the Board, where projects was used previously.

[2] Please note, since the last update, a project under the Strategic Consultancy Grant has been cancelled.

Local Enterprise Offices

Questions (247)

Peter Burke

Question:

247. Deputy Peter Burke asked the Minister for Business, Enterprise and Innovation her plans for the further development of the local enterprise offices into the future; and if she will make a statement on the matter. [20532/19]

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Written answers

The Local Enterprise Offices (LEO)s play a critical role in supporting microenterprises in the start-up and expansion phases throughout the country.

The (LEOs) are the ‘first-stop-shop’ for providing advice and guidance, financial assistance and ‘soft’ supports in the form of training and mentoring to anyone wishing to start or grow a business.

The LEOs provide a ‘signposting’ service in relation to all relevant state supports available through agencies such as Revenue, the Department of Social Protection, Education and Training Boards, Credit Review Office, Microfinance Ireland.

The LEOs can offer direct grant aid to microenterprises (10 employees or fewer) in the manufacturing and internationally traded services sector which, over time, have the potential to develop into strong exporting businesses. Subject to certain eligibility criteria, the LEOs can provide financial assistance within three main categories, i.e., Feasibility Grants (investigating the potential of a business idea) Priming Grants (to part-fund a start-up) and Business Development Grants for existing businesses that want to expand.

This year the Capital allocation I have made available to the 31 LEOs is €27.5m, an increase of €5m on last year, which is being used to fund LEO clients by way of financial assistance and a range of soft supports such as training and mentoring.

Through targeted and seamless support, including the identification of any gaps in such support, especially in emerging sectors and start-ups, the LEOs can help to ensure a more diverse enterprise base. This is done through complementary advisory and support services such as financial incentives and soft supports provided by the LEOs. Increasing the availability of long-term equity to encourage the scaling up of SMEs.

Under the Future Jobs Ireland 2019 strategy, the Government is tackling lower productivity levels in indigenous firms in order to achieve sustainable wage growth. The LEOs can play their part in this strategy by promoting indigenous entrepreneurship, especially in the regions; in encouraging clustering and stronger links between domestic and foreign owned firms; and help in assisting businesses to move up the value chain. I am currently examining the further development potential of the LEOs as set out in Future Jobs 2019. My ambition is to further strengthen and develop the capacity of the Local Enterprise Offices, in collaboration with Enterprise Ireland, to provide a comprehensive and seamless range of supports for ambitious and growth-oriented firms, so as to achieve a step-change in enterprise productivity, innovation and resilience.

Office of the Director of Corporate Enforcement Funding

Questions (248)

Clare Daly

Question:

248. Deputy Clare Daly asked the Minister for Business, Enterprise and Innovation the estimated cost in a full year if the budget for the Office of the Director of Corporate Enforcement increased by 30%. [20690/19]

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Written answers

The distribution of the funding allocations across my Department’s Vote, including that of the Office of the Director of Corporate Enforcement, is determined through the annual Revised Estimates Volume (REV) process.

An additional €1m was provided for the ODCE in 2019 to reflect the likely costs associated with the transition of the ODCE into a stand-alone Agency. A funding allocation of €6.057m has been provided for the ODCE for 2019.

The estimated full year cost of a 30% increase in the ODCE’s 2019 funding allocation is €1,817,100, which would result in an allocation of €7,874,100.

IDA Ireland Data

Questions (249)

Niamh Smyth

Question:

249. Deputy Niamh Smyth asked the Minister for Business, Enterprise and Innovation the most recent occasion on which the IDA visited counties Cavan, Monaghan and Meath; the number of new jobs that have been created by the IDA in the past 12 months; the steps it is taking to attract companies to the counties; the success it has had with the strategy for the counties; and if she will make a statement on the matter. [20711/19]

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Written answers

The IDA's performance in 2018 reflects the joint emphasis the Agency and the Government have placed on increasing foreign direct investment (FDI) into regional locations. Last year, for example, 56% of all net new jobs created by IDA client firms were in locations outside Dublin. Similarly, every region in Ireland, including the Border Region, experienced FDI-supported employment growth. There are now over 132,000 people employed across 681 firms in IDA client companies outside the capital. This amounts to 58% of all IDA-supported employment and represents the highest number of people ever employed in the regions by Agency client companies.

While there were no new FDI-supported jobs created in Cavan in 2018, Monaghan experienced an 8% increase, with 12 jobs added by companies in the County. Similarly, Meath saw a 4.5% increase, with the creation of 67 new jobs last year.

With regard to site visits in 2019, data is currently only available for the first three months of this year. Over that period, Counties Cavan, Monaghan and Meath each hosted one site visit. Information on site visits for the second quarter of 2019 will be available later this year. While the IDA will continue to promote and showcase locations in these Counties to prospective investors, it is important to remember that the decision as to where to invest is always taken by the companies themselves.

As the Deputy will be aware, as part of Budget 2019 I allocated an additional €10 million for the next phase of the IDA’s Regional Property Programme (RPP). This includes plans for an Advanced Technology Unit (ATU) at Knockaconny, County Monaghan. These facilities can help to encourage overseas investors to consider regional areas and I am confident that the ATU in Knockaconny, once complete, will lead to further investment and job creation.

In addition to the RPP, the IDA targets further investment for the wider area through its office in the Cavan Innovation and Technology Centre. The Agency has also recently appointed a new Regional Business Development Manager for the North-East Region. As part of its strategy to promote the area, the IDA is focusing on specific sectors including agri-food, manufacturing, tourism and internationally traded services. The Agency's staff regularly engage with key stakeholders on the ground in Cavan and Monaghan, including with local authorities, public bodies, the education sector and companies from both its own client base but also from the indigenous sector. County Meath, meanwhile, is being actively marketed by the IDA as a location for second sites for multinationals in the Dublin region, with a focus on building clusters in existing sectors like high-value manufacturing and international services.

In addition to the work of the IDA, my Department’s €60 million Regional Enterprise Development Fund (REDF) has supported five projects within the Meath, Cavan and Monaghan area, with a total investment of €8.2 million. These include: the Boyne Valley Food Innovation District in Meath; a food centre of excellence in Ballybay; a networked digital and innovation hub in Cavan (with others located in Leitrim and Longford); an engineering business network across the North East region; and an investment of €4.9 million in a nationally significant bioeconomy innovation centre located in Monaghan. These projects demonstrate good collaboration and innovation in the region, qualities that make it even more attractive as a destination for new investment.

The Government remains determined to further unlock and develop the economic potential of all Counties including those in the Border region. The Enterprise Agencies under my remit will continue to engage with their clients, and with one another, to create more jobs and source new investment in 2019.

Science, Technology and Innovation Strategy

Questions (250)

Bernard Durkan

Question:

250. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which she has identified that science and technology will remain an integral part of business promotion and job creation in the short and medium terms; and if she will make a statement on the matter. [20888/19]

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Written answers

Investment in innovation is an essential component in developing the economic and social infrastructure necessary to ensure a resilient and competitive enterprise base and in addressing many societal challenges.

The key mission of Enterprise Ireland, our indigenous enterprise development agency, is to assist growth in exports from Irish owned companies which in turn results in the growth of the Irish economy and job creation.

Research, Development and Innovation (RDI) is an integral part of any business that has an ambition to grow and expand. Investing in RDI enables companies improve their competitiveness by developing new processes, products or services, maintain a competitive edge in the market and increase output.

Enterprise Ireland supports and de-risks research, development and innovation primarily through supporting companies to carry out RDI in-house. These supports help companies develop new and improved products and services which serve as the basis for sustainable economic growth.

It is estimated that investment in RDI by business accounted for over 70% of Ireland’s gross expenditure on RDI in 2017. A very significant part of public policy has been to align our efforts in a manner that maximises the capacity to leverage RDI activity in the enterprise sectors. We are frequently cited as one of the most R&D-effective countries in the EU, maximising innovation output per euro of public funding.

My Department and my colleagues across Government are committed to investment in RDI in order to ensure sustainable economic growth, resilient businesses and the creation of high value jobs. This is demonstrated in all recent Government policies, including Innovation 2020, Enterprise 2025 Renewed and the National Development Plan under Project 2040.

In the Government's most recent policy document, Future Jobs Ireland 2019 (FJI), embracing innovation and technological change is one of the five key pillars to ensure that we are resilient and prepared for future challenges and opportunities.

We must prepare now so that our enterprises and people are ready to exploit opportunities. Through FJI, we will encourage greater investment by enterprises in RDI. We want Ireland to be at the frontier of technological developments by rapidly adopting new technologies to boost productivity and ensure that Ireland continues to be competitive internationally. To do this we must enable and encourage innovation across sectors and firms. Work must also be done to increase the absorptive capacity and new ways of working across all types of business, and particularly within Small and Medium Enterprises (SMEs).

Some of the ways we will deliver on the ambitions for embracing innovation and technological change in FJI include:

- implementing the projects awarded funding under the first call of the Disruptive Technologies Innovation Fund and issuing a further call for Expressions of Interest;

- implementing an Industry 4.0 strategy and developing a National Digital Strategy and a National Artificial Intelligence Strategy;

- assisting SMEs through the temporary injection of expertise through RD&I placement programmes;

- supporting businesses to invest in and exploit new and existing technologies and business process improvements; and

- strengthening linkages between indigenous SMEs, multi national enterprises and higher education institutes to support knowledge spillovers, collaborative working and information sharing.

Science and technology are also key considerations throughout the skills and talent pillar of FJI, which focuses on enabling all of Ireland’s workers to upskill and to participate in lifelong learning to enhance and maintain productivity and to prepare for technological disruption. It also ensures that relevant and up-to-date courses, particularly in emerging technologies, are offered by Ireland’s education and training providers to meet the needs of enterprises and workers.

Enterprise Support Schemes

Questions (251)

Bernard Durkan

Question:

251. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the degree to which she continues to support and drive the creation of new enterprises in the indigenous sector nationally with particular reference on the need to encourage the generation of employment in all regions; and if she will make a statement on the matter. [20889/19]

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Written answers

The 31 Local Enterprise Offices (LEOs) are located throughout the country and provide a range of supports for the micro and small business sector. The LEOs act as the “first-stop-shop” for providing advice and guidance, financial assistance and other supports to those wishing to start or grow their own business.

My Department and I have a clear focus on regional jobs and investment and the LEOs play a crucial role in this effort. This Government has backed the Local Enterprise Offices with resources and additional funding in 2019 and the LEOs are responding with impressive jobs growth and initiatives to stimulate new ideas and new ventures locally.

It is my priority as Minister for Business, Enterprise and Innovation to see more jobs created in the regions. Regional development is a key priority for this Government and it is important that the value of collaboration and the work by the development agencies, which has yielded strong jobs results in recent years, must be complimented by a bottom-up approach in providing critical business supports and advice. In that regard, the LEOs, acting as a “first-stop-shop” provide an important role in the provision of advice, guidance, financial assistance and other supports to those wishing to start or grow a business at the local and regional levels.

Details of the number of jobs created by companies supported by the LEOs are obtained by way of an Annual Employment Survey (AES) of LEO clients. The results of the survey for 2018 show the following:

- a total of 8,007 new jobs were created in gross terms;

- a net increase of 3,656 across all jobs;

- overall at the end of 2018, total direct employment among the 7,164 LEO client companies stood at 36,666.

Enterprise Ireland’s results for 2018 show the progress that the Agency have been making in supporting and driving the creation of new enterprises in the indigenous sector at a national and regional level. Client companies assisted by Enterprise Ireland created 18,846 jobs in 2018 and 64% of the jobs created were outside Dublin, with all regions recording increases in employment. There were 215,207 people employed by Enterprise Ireland supported companies in 2018, the highest total employment in the history of the agency. Last year, Enterprise Ireland supported 82 high potential start-ups and 50 competitive start fund approvals as well as 245 client investments of over €500k.

The Government’s €60 million Regional Enterprise Development Fund, administered by Enterprise Ireland, has the objective of supporting every region to build on its unique strengths and ultimately create sustainable jobs. Administered via two competitive calls, 42 projects were approved funding totalling €59.5 million. The budget for this fund is part of Enterprise Ireland’s budget to support enterprise development in the regions.

The nine Regional Enterprise Plans which I launched earlier this year, also provide a perspective and ideas from the ‘ground-up’. They are informed by an understanding of unique local strengths and assets and have the potential to enable more effective translation of national policy into regional and local impact. They focus on leveraging the added value from regional and local actors working collaboratively, and in so doing, they aim to complement and build on the existing activities being undertaken by the Enterprise Agencies, the LEOs and the wider range of State Bodies directly involved in supporting enterprise development in the regions. These Plans will play an important role in building resilience in enterprises and in regions and realise future growth potential.

Economic Competitiveness

Questions (252)

Bernard Durkan

Question:

252. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the measures she continues to take to develop and improve the competitiveness of Irish goods and services on world markets; and if she will make a statement on the matter. [20890/19]

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Written answers

Competitiveness is integral to exports, jobs growth and as a means of achieving sustainable improvements in living standards. Improving competitiveness performance is a core focus of the work of my Department and wider Government policy and is particularly vital in these volatile Global economic environments.

Ireland is a competitive economy, as reflected in strong employment growth across sectors and regions. The strong performance of clients supported by the enterprise agencies in winning exports, market share and job creation in the face of intense global competition is to be commended and reflects the competitiveness of the environment in which to do business in Ireland.

However, this strong competitiveness position cannot be taken for granted – and there is no room for complacency – which is why improving Ireland’s competitiveness position is a key priority for this Government, and my Department.

Recent reports by the National Competitiveness Council have highlighted the need to continually enhance competitiveness performance. I share the Council’s view that to further improve competitiveness we must preserve fiscal sustainability, maximise investment in infrastructure and talent, maintain cost competitiveness, and drive innovation and productivity across all economic sectors.

Future Jobs 2019, launched in March, is a whole of Government framework designed to improve our economy’s resilience in the face of emerging and future challenges. It sets out 26 ‘ambitions’ to 2025 across five pillars in the areas of innovation; productivity; skills and talent; participation; and transitioning to a low carbon economy.

Along with Project Ireland 2040, Global Ireland 2025 and the Government’s forthcoming All of Government Climate Plan, Future Jobs represents an integrated approach to prepare for the opportunities and challenge of the future economy.

A range of specific deliverables in Future Jobs Ireland 2019 aim to enhance the business environment and improve competitiveness, as well as other factors, that contribute to specific sectoral cost challenges. For example:

- On credit and financial costs, the Future Growth Loan Scheme will provide long term debt financing for strategic investments. This scheme will offer loans to SMEs for a period of 8 to 10 years with an interest rate of 4.5% for loans up to €249,000 and 3.5% and less for loans greater than or equal to €250,000. It will provide affordable financing to Irish businesses and the primary agriculture and seafood sectors to support strategic long-term investment in a post-Brexit environment;

- On legal services, new business models for legal services will be introduced, including new legal partnerships and limited liability partnerships;

- On construction, an implementation plan for actions to stimulate construction sector productivity will be delivered, including greater deployment of Building Information Modelling.

As a small open economy, we must never underestimate the importance of maintaining competitiveness, and ensuring that the cost of doing business does not impede this. This requires us to have mutually supporting policies in place. In this regard, Future Jobs Ireland is an integral component of the Government’s over-arching plan for the future of the Irish economy.

Foreign Direct Investment

Questions (253, 259)

Bernard Durkan

Question:

253. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the degree to which the development programme of the IDA continues to develop to maximise advantages for job creation and economic competitiveness on international markets; and if she will make a statement on the matter. [20891/19]

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Bernard Durkan

Question:

259. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which she continues to promote Ireland as an attractive location for foreign direct investment, with particular reference to the ability of the State to compete effectively with all other countries in the EU and outside in which the greatest competition is likely to come from; if particular advantages and disadvantages have been identified from an Irish perspective; and if she will make a statement on the matter. [20897/19]

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Written answers

I propose to take Questions Nos. 253 and 259 together.

Retaining and strengthening Ireland’s reputation as a first-class destination for foreign direct investment (FDI) remains fundamentally important to our economic model. That is why the Government and IDA Ireland work hard to promote the country abroad for FDI, particularly in the face of increasing international competition for high-value investment projects.

Ireland has a number of key strengths that continue to make us a highly attractive destination for FDI. These include our highly skilled workers, excellent education system and positive demographics. Our membership of the EU and Eurozone, pro-enterprise policy environment, and competitive corporation tax regime are other significant selling points. These strengths help the IDA provide a strong case to investors considering investing in Ireland. They also help to explain our strong national performance in terms of FDI-driven investment and job creation, with over 230,000 people now employed here by IDA client firms.

The Government is equally conscious of the areas in which we need to improve in terms of attracting FDI. This includes increasing the availability of certain labour market skills, investing further in infrastructure and enhancing our economy’s overall competitiveness. Work is ongoing in those areas to ensure that our economy continues to attract job-rich investment from overseas firms.

Regional Enterprise Development Fund

Questions (254)

Bernard Durkan

Question:

254. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the way in which she continues to liaise with the business sector throughout the regions with a view to the maximisation of investment in such a way as to enhance the opportunities for expansion in the future; and if she will make a statement on the matter. [20892/19]

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Written answers

Since I have become Minister for Business, Enterprise and Innovation, I have made regional enterprise development my top priority.

In February and March of this year I launched nine new Regional Enterprise Plans to 2020. These new Plans build on the very strong progress made on employment creation under the Regional Action Plan for Jobs 2015-2017.

Shaped from the ‘bottom-up’ by regional stakeholders, and overseen by my Department, the new Regional Enterprise Plans to 2020 complement national level policies and programmes emanating from the ‘top-down’ and, there is strong alignment with Ireland’s national enterprise policy, Enterprise 2025 Renewed and the Future Jobs Ireland initiative.

They are two-year, focused Plans, which set out a series of prioritised ‘Strategic Objectives’ that will help to drive business development and expansion in all of the regions. The Plans are also ‘live’ documents, so new initiatives can be adopted during their operation by the regional stakeholders working together. These stakeholders include: Local Authorities, the LEOs, the enterprise agencies, the Regional Skills Forum, tourism bodies, private sector ‘enterprise champions’, and others.

The principle behind the Regional Enterprise Plans is collaboration between regional stakeholders on initiatives that can help to realise the region’s enterprise development potential and add value to the ongoing core work of the enterprise agencies and other bodies.

The Regional Enterprise Plans enable continued dialogue with the enterprise sector in the regions. Each of the Regional Steering Committees established to oversee the implementation of the Plans is chaired by a representative from the business sector, which ensures that the enterprise perspective is at the forefront of the Committee’s work. The Committees also include a number of ‘enterprise champions’ and business representative organisations, such as the Chambers and Ibec, who are involved in driving implementation of many of the actions.

Alongside the collaborative structures that I have put in place through the Regional Enterprise Plans, the enterprise agencies and the LEOs continue to work directly with businesses on the ground in 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 the economic growth across all regions. In 2018, two-thirds (64 percent) of new Enterprise Ireland jobs were created outside of Dublin.

The Local Enterprise Offices (LEOs) in every county are the ‘first-stop-shop’ for providing advice and guidance, financial assistance and other supports to those wishing to start or grow their own businesses. In February I announced very good results from the LEOs Offices around the country. Overall, they supported the creation of 3,656 new jobs (net) in 2018.

IDA meanwhile will continue to target a minimum increase in investment of 30% to 40% in each region outside Dublin to 2019. These investments are a combination of new name investments, expansions from existing overseas companies in Ireland and R&D investments. Over 2018, all regions saw increases in IDA employment, with the Midlands region experiencing the highest growth at 14 percent.

Finally, it is important to note that the Government has put several funding streams in place to support enterprise and regional development, including my Department’s €60 million Regional Enterprise Development Fund, and the Project Ireland 2040, that include in particular, the Disruptive Technologies Innovation Fund and the Rural and Urban Regeneration and Development Funds.

Guided by the new Regional Enterprise Plans, the regions are well positioned to build on successes to date and to continue to see the benefits and results of collaborative and innovative initiatives that can make a significant impact on enterprise development in the regions.

Innovation Fund Ireland

Questions (255)

Bernard Durkan

Question:

255. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which innovation continues to be a feature of enterprise and investment here; if she remains satisfied that new enterprises have adequate access to innovation technology and-or appropriate assistance from the European Union; and if she will make a statement on the matter. [20893/19]

View answer

Written answers

Innovation 2020, Ireland's strategy for research and development, science and technology, was launched in December 2015 and articulates Ireland’s ambition to become a Global Innovation Leader. The strategy aims to build on the significant successes which have seen Ireland dramatically improve its innovation performance globally.

Research, Development and Innovation (RDI) is globally recognised as the key economic differentiator and, as such, a very important feature of enterprise and investment in Ireland.

RDI enables Irish companies to make innovative products and services that are competitive and more novel than those in global markets. However, for an SME investment in RDI can be costly in terms of time, personnel and budget. It also requires a focus beyond the day to day challenges of running a business with limited resources.

Enterprise Ireland (EI) has a role in this regard to de-risk such RDI so that companies will develop new and improved products and services and achieve the required exports to allow economic growth. This is done either by supporting companies to do RDI within the company, or by collaborating with Higher Education Institutions (HEIs) or by sourcing / licensing new technologies from HEIs which can provide a step change in their innovative capabilities. These supports all help companies to develop new and improved products and services which serve as the basis for sustainable economic growth.

SMEs qualify for all of EI’s funding programmes and a limited number of these programmes are also open to FDI companies. These supports all help companies develop new and improved products and services which serve as the basis for sustainable economic growth and are detailed below:

- In-Company RDI - supporting the development of new or substantially improved products, services or processes which will have a competitive advantage in their target market. This enables companies to increase employment through sustainable and substantially increased sales;

- The Agile Innovation Fund - this Fund allows up to 50% in support for projects to a maximum total cost of €300,000 and has fast track approval;

- Innovation Vouchers - providing vouchers worth €5,000 aims to introduce them to innovation, linking them with a network of knowledge providers, North and South of the border;

- Innovation Partnerships - helping industry to engage in collaborative research projects with Irish universities and Institutes of Technology to develop new products and services;

- Technology Gateways - providing Business Development resources to the Institutes of Technology and other firms to help them interact with industry on a local, regional and national basis;

- Technology Centres - a partnership between EI and IDA Ireland, are organised to respond rapidly to industry defined needs and conduct market-relevant RDI in partnership with collaborating groups of companies. Participating companies propose areas and themes of greatest relevance to them over a 3-5 year period. In response, the researchers develop solutions that respond to these needs, often exploring avenues that can lead to new licensable intellectual property;

- Campus Incubators – such facilities are internationally recognised as an important element of public assistance for technology-intensive start-ups. Incubators now exist on every university and Institute of technology Campus in the country.;

- The Business Innovation Initiative (BII) is aimed at driving innovation beyond selling products based on technical innovations; in turn providing more customer focussed process and service solutions;

- The Small Business Innovation Research (SBIR) Initiative is a cross-government process that allows public bodies to use public procurement to source RDI and innovative solutions to solve ‘identified challenges’ with solutions that are not currently commercially available. This provides significant business opportunities for innovation focused companies.

High Potential Start Up (HPSU) support is EI’s most significant and relevant support available for new start-ups. HPSUs are start-up businesses with the potential to develop an innovative product or service for sale on international markets and the potential to create 10 jobs and €1m in sales within 3 to 4 years of starting up. A range of supports are available under the HPSU offer such as the:

- Innovative HPSU Fund - providing support to early stage companies considered to have an innovative product, service or technology with the potential to achieve international sales and create employment. It is an equity investment into HPSU clients on a co-funded basis to support the company’s business plan. This offer also leverages private investments to help the company grow and succeed in the implementation of their business plans;

- New Frontiers Programme - a national entrepreneur development programme delivered locally through the Institutes of Technology (IoTs) and funded by EI.

- Competitive Start Fund (CSF) – aimed at accelerating the growth of start-up companies that have the capability to become HPSU companies.

The Local Enterprise Offices (LEOs) are placing a strong focus on innovation as a central platform for micro enterprise development through access to the following supports:

- Agile RD&I

- Innovation Partnerships

- Innovation Vouchers

- Innovation Mentors/Advocates

Under the Future Jobs Ireland strategy, the Government is tackling lower productivity levels in indigenous firms in order to achieve sustainable wage growth. LEOs can play their part in this strategy by promoting indigenous entrepreneurship, especially in the regions; in encouraging clustering and stronger links between domestic and foreign owned firms; and help in assisting businesses to move up the value chain.

Assistance from the European Union continues to play a vital role in supporting innovation in enterprises operating in Ireland, both indigenous SMEs and foreign-owned multinational companies. EI also has supports in place to help companies maximise the funding they can receive from the European Union.

Horizon 2020 is the instrument which supports collaborative R&D in Europe and provides an important source of non-exchequer funding for companies. It enables us to amplify the impact of domestic public investment by leveraging complementary funding from the EU.

Horizon 2020 has a budget of €75 billion and runs from 2014 to 2020. A budget of €30 billion has been allocated to the final three years of Horizon 2020, which will provide significant funding opportunities for companies in Ireland that participate in the programme over the period 2018-2020. Ireland has won €709.5 million from 2014 to April 2019 in competitive EU funding from Horizon 2020. Higher Education Institutions accounted for €390.4 million of the total and companies, €237.4 million. The funding for companies included €147.1 million awarded to SMEs.

Under Horizon 2020, the SME Instrument is available and is specifically targeted at individual or groups of highly innovative SMEs with international ambitions, determined to turn strong, innovative business ideas into winners on the market. The instrument provides full-cycle business innovation supports ranging from business idea conception and planning, to business plan execution and demonstration and also to commercialisation.

Results from the 2017-2018 Business Expenditure on Research and Development survey, recently released by the CSO, show that almost €2.8bn was spent on research and development activities by enterprises in Ireland in 2017. This represents an increase of 24% compared with actual expenditure in 2015 and is the largest biennial increase in the last 10 years.

Skills Development

Questions (256)

Bernard Durkan

Question:

256. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which she has continued to monitor the availability of the requisite skills in the workplace, having particular regard to the skills requirements of the high-tech industry; and if she will make a statement on the matter. [20894/19]

View answer

Written answers

My Department and I are aware that it is essential that Irish enterprise has access to high quality, adaptable and flexible talent. In order to meet this demand, the Government is committed to building and retaining a highly skilled indigenous workforce to serve the needs of the economy.

The Government is seeking to advance this goal under the framework of two overarching skills development strategies:

- Ireland's National Skills Strategy 2025, which sets out a vision of how Ireland can continue to develop relevant skills and ensure that the supply of skills is activated and effectively used; and

- The Action Plan for Education 2019, the annual implementation plan for this vision.

The enhancement of skills and the development and attraction of talent also forms a key pillar of Future Jobs Ireland, the new whole of Government strategy for driving Ireland's development as a resilient, innovative, and globally connected economy, capable of coping with technological and other transformational changes.

Ireland's sophisticated skills architecture is key to identifying and responding to skills gaps as identified by enterprise and education and training providers, and therefore supporting the objectives set out in these strategies. It is made up of the following fora, all of which include representation either from my Department or its enterprise and research and innovation agencies:

- National Skills Council (NSC): The NSC was established in 2017. It provides a mechanism for mediating demands on resources in a manner that facilitates the prioritisation of identified skills needs, while also enhancing the response to and delivery of these needs by education and training providers. The Council draws on the work of the Expert Group on Future Skills Needs (EGFSN), the Skills and Labour Market Research Unit in SOLAS, and the network of Regional Skills Fora.

- Regional Skills Fora: A network of 9 Regional Skills Fora foster close co-operation at regional level between education and training providers and regional enterprise. The Fora provide a cohesive education led structure for employers and the further education and higher education system to work together in addressing the skills needs of their regions.

- Expert Group on Future Skills Needs (EGFSN): The EGFSN is an independent, non-statutory body, which includes representatives from the business and trade union communities, relevant Government Departments, enterprise agencies, and education and training agencies. It identifies the skills required by enterprise across occupations and sectors, as well as providing information to education and training providers to allow them to support the alignment of programmes with employer needs. My Department provides the EGFSN with research and secretariat support.

High level ICT skills have been a key concern for the EGFSN over the past decade, in particular through the undertaking of skills demand forecast studies that have helped inform the various ICT Skills Action Plans published since 2012. The EGFSN recently published the latest of these studies, Forecasting the Future Demand for High Level ICT Skills in Ireland, 2017-2022.

This research- a qualitative and quantitative overview of the market and demand for high level ICT skills in Ireland over the coming years- helped inform the strategic direction and scale of the third ICT Skills Action Plan, Technology Skills 2022, which I launched along with the Minister for Education and Skills earlier this year.

The new plan sets out the supply measures the Government and wider ICT skills stakeholder community have committed to in the years to 2022, in order to meet the scale of demand identified by the EGFSN. At official level, my Department is involved in the High Level Steering Group responsible for monitoring the implementation of Technology Skills 2022.

Through the skills architecture and implementation of the strategies mentioned above, my Department and the Department of Education and Skills will continue to ensure that an adequate and appropriately skilled workforce remains available to meet the requirements of the high tech industry.

Enterprise Support Services Provision

Questions (257)

Bernard Durkan

Question:

257. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the degree to which she continues to encourage start-up enterprises in all regions nationally; the issues to date identified as being likely to impede progress; and if she will make a statement on the matter. [20895/19]

View answer

Written answers

My Department has a strong focus of developing indigenous businesses. I am consistently engaging and listening to the needs of start-ups and established small businesses. I am aware of their importance as SMEs account for 99.8% of all enterprises in the State and are predominantly indigenous. We provide, principally through our Agencies, a range of tailored supports for start-up enterprises throughout every region in Ireland. Supports include access to finance, management development, mentoring supports, business development programmes, market supports and trade promotion.

The 31 Local Enterprise Offices located nationwide offer a range of financial supports to assist with the establishment and growth of micro-enterprises. The LEOs also offer soft supports in the form of training (e.g. a Start Your Own Business course); provide a mentor to work with the business proposer; support micro enterprises in their loan applications to Micro Finance Ireland; and promote the Trading Online Voucher Scheme. The Local Enterprise Offices are present in every single county in Ireland and provide crucial supports for SMEs and startups throughout the country. This year I allocated an additional €5m which is an increase of 22% on 2018. This extra funding will help deliver supports to more SMEs, particularly in the current changing landscape.

My Department has also published an information guide to raise awareness of supports and finance related to Brexit issues among SMEs. It provides information on the practical steps you can take to deal with issues including: Customs, tariffs and duties, currency, imports, certification, working capital, and financing. This Quick Brexit Guide for Business is available on the department website https://dbei.gov.ie/en/Publications/Publication-files/Quick-Brexit-Guide-for-Business.pdf.

In addition, my Department is currently updating the Supportingsmes.gov.ie website, directing small businesses to their most relevant out of a possible 170 Government supports. It has a latest news page and events calendar for SME related events.

The National Policy Statement on Entrepreneurship was launched in 2014, was a five-year plan developed to foster and promote an entrepreneurial spirit in the SME and Entrepreneurship ecosystem. The 96 actions laid out within, were reviewed for progress in late 2018, my Department has confirmed all actions are either completed or ongoing in nature. A final report of overall findings will begin being compiled later this year. These actions have been central to making Ireland a very attractive country in which to start a business.

To further underpin my commitment to our SME and Entrepreneurship sector, my Department in conjunction with the OECD early last year, commenced a Review of SME and Entrepreneurship issues and policies in Ireland. This is an 18-month project and it aims to provide in-depth analysis and recommendations to DBEI and the Irish 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.

The first draft report received in October 2018, identified the need for an SME and Entrepreneurship policy working group. As part of my Department’s commitment to progressive and sustainable dialogue with key stakeholders, my colleague Minister of State for Trade, Employment, Business and EU Digital Single Market and Data Protection, Pat Breen TD convened the inaugural meeting of the SME and Entrepreneurship Consultation Group on March 27th this year.

Subsuming the previous Advisory Group on Small Business, the membership is made up from sectors of strategic importance to Ireland’s small business ecosystem and will provide regular, high-level advice to the Minister.

The final report and the SME and Entrepreneurship Strategy Roadmap are due for publication in late 2019. Through my Department, the ensuing SME Strategy will inform Government’s Future Jobs Initiative on how best to support and foster our business ecosystem into the future.

I am keenly aware that access to finance is a major issue for start-ups and established SMEs. As part of Budget 2019, I announced a longer-term loan facility; the Future Growth Scheme, for loans of up to 10 years, as a means of addressing a lack of availability of long term loans in the marketplace with terms of over 7 years. Loans will range from €100,000 to a maximum of €3m, with unsecured loans of up to €500,000 with terms of 8-10 years. The initial maximum interest rate is capped at 4.5% for loans up to €249,999 and 3.5% for loans more than or equal to €250,000 for the first six months. On April 17th, the Scheme opened for eligibility applications through the SBCI website.

This Brexit Loan Scheme, which was launched in March 2018, provides affordable working capital finance to eligible businesses that are either currently impacted by Brexit or which will be in the future. The loans are available through AIB, Bank of Ireland and Ulster Bank. Approval of loans are subject to the banks own credit policies and procedures.

The scheme makes a fund of up to €300m available to eligible businesses with up to 499 employees to help them innovate, change or adapt to overcome their Brexit challenge. The maximum interest rate is 4%. Loans range from €25,000 to €1.5m, with unsecured loans of up to €500,000 and terms ranging from 1-3 years. I have provided details below of the uptake to date in 2019.

I have put indigenous start-ups and established businesses at the centre of our support systems. My Department will continue to work across Government to ensure the needs of start-ups and SMEs are considered in the execution of national policy.

Brexit Preparations

Questions (258)

Bernard Durkan

Question:

258. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which she continues to engage with investment and job creation interests in Northern Ireland with a view to maintaining the best possible relationship of a mutually beneficial nature with Northern Ireland and the EU in the aftermath of Brexit; and if she will make a statement on the matter. [20896/19]

View answer

Written answers

The Government is determined to maintain the closest possible North-South trading relationship on the island of Ireland after Brexit. Cross-border trade is now at an all-time high and my Department and its Agencies are working to protect and sustain that two-way enterprise relationship as best we can.

Important work in that context continues to be undertaken by InterTradeIreland (ITI), one of the six North-South Implementation Bodies established under the Good Friday Agreement. ITI, which is jointly funded by my Department and its counterpart in Northern Ireland, the Department for the Economy (DfE), has a mandate to develop and support North-South trade. It is therefore particularly well-placed to assist businesses in preparing for the commercial challenges associated with Brexit. Officials in my Department are in regular contact with their DfE counterparts to ensure the body is supported and equipped to carry out this important work. My Department provided an additional €1 million to ITI this year which has enabled the body to engage with more companies seeking support through its Brexit Advisory Service, as well as meeting demand for existing programmes which are all designed to promote and support cross-border trade.

Enterprise Ireland, meanwhile, has a longstanding collaboration with Invest Northern Ireland (INI). There is regular contact between the two agencies on a range of policies and initiatives that support business and employment in the two jurisdictions. Over the past two years there has been more specific contact and cooperation on Brexit supports. In addition, EI, INI and ITI meet regularly to facilitate inter-agency coordination and cooperation.

Minimising the impact of Brexit on cross-border trade and employment will remain a key priority for the Government. We continue to work towards an outcome that will maintain the closest and most positive possible trading relationship between the UK and Ireland following Brexit.

Question No. 259 answered with Question No. 253.

Departmental Advertising Expenditure

Questions (260)

Michael McGrath

Question:

260. Deputy Michael McGrath asked the Minister for Business, Enterprise and Innovation the costs incurred by her Department in respect of advertising in all forms to date in 2019, in tabular form; and if she will make a statement on the matter. [21117/19]

View answer

Written answers

Details of expenditure incurred by my Department and its Offices on advertising to date in 2019 are set out in the table below. In engaging service providers, the Department and its Offices are mindful of the need to secure value for money and, accordingly, strive to keep costs to the minimum.

Advertisement Type

Purpose

Cost

Iris Oifigiúil Advertising

Various official notices in the Government Publication, Iris Oifigiúil

898.00

Newspaper Advertising

Advertising for competition for Chair of the Board of Science Foundation Ireland

3,684.84

Video Production

Future Jobs Ireland Conference

3,843.75

Video Production

Launch of Regional Enterprise Plans

10,165.95

Radio Advertising

Brexit Advertising Campaign

21,913.68

National and Regional Newspaper Advertising

Brexit Advertising Campaign

69,792.70

Iris Oifigiúil

Labour Court - Notification of intention to conduct an examination into the T&C in the construction and electrical contracting sectors

465.00

Newspaper Advertising

Labour Court - Notification of intention to conduct an examination into the T&C in the construction and electrical contracting sectors

8,280.46

Total

119,044.38

Hospital Appointments Status

Questions (261)

Peter Burke

Question:

261. Deputy Peter Burke asked the Minister for Health the status of a hospital appointment for a person (details supplied). [20310/19]

View answer

Written answers

Under the Health Act 2004, the Health Service Executive (HSE) is required to manage and deliver, or arrange to be delivered on its behalf, health and personal social services. Section 6 of the HSE Governance Act 2013 bars the Minister for Health from directing the HSE to provide a treatment or a personal service to any individual or to confer eligibility on any individual.

The National Waiting List Management Policy, a standardised approach to managing scheduled care treatment for in-patient, day case and planned procedures, since January 2014, has been developed to ensure that all administrative, managerial and clinical staff follow an agreed national minimum standard for the management and administration of waiting lists for scheduled care. This policy, which has been adopted by the HSE, sets out the processes that hospitals are to implement to manage waiting lists.

In relation to the particular query raised, as this is a service matter, I have asked the HSE to respond to the Deputy directly.

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