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Tuesday, 14 Jul 2020

Written Answers Nos. 92-111

Trade Relations

Questions (92, 95)

Bernard Durkan

Question:

92. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which alternative markets continue to be found for Irish products in view of the impact of Brexit; and if he will make a statement on the matter. [16008/20]

View answer

Bernard Durkan

Question:

95. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the degree to which efforts continue to be made to identify new markets throughout the European Union and globally for Irish exports; and if he will make a statement on the matter. [16011/20]

View answer

Written answers

I propose to take Questions Nos. 92 and 95 together.

Ireland's overall export performance over the last 10 years has been marked by year-on-year growth with total exports of goods and services reaching further record levels of €366Bn in 2019.

While the UK is and will remain a major market for Irish companies, expanding the Irish export footprint in markets beyond the UK is a key priority. In that context, Enterprise Ireland’s strategy is to support Irish exporters to be more innovative, competitive and market diversified.

The Irish exporting landscape has been strong and companies in Ireland have been succeeding in winning business worldwide for their products and services. Enterprise Ireland client companies achieved record levels of exports in 2018 (latest year for which figures are available) of €23.8bn, against the backdrop of Brexit uncertainty. In 2018, the Eurozone region, which is a key focus of Enterprise Ireland’s diversification strategy, saw growth of 7.6% to €4.8bn, with Germany, France and the Netherlands each exceeding €1bn in exports. Exports to North America increased from €3.87bn in 2017 to €4.08bn in 2018, an increase of 5.5%. Our Enterprise agencies are now opening new offices around the world to support our companies in competing and thriving in global markets.

Ministerial-led Trade Missions have supported the Government's major drive towards market diversification. The majority of trade missions in recent years have taken place to the Eurozone, North America and Asia Pacific, which represented the strongest growth opportunities for Irish companies. These Trade Missions focused on promoting the innovative capabilities and competitive offerings of Irish companies to international buyers in sectors including internationally traded services, fintech, high-tech construction, engineering, ICT and lifesciences. Trade Missions will resume as soon as is practicable. In the meantime, promotion of our companies abroad will continue through the work of our State agencies, and in particular their offices located on the ground internationally.

As well as the global efforts supported by our agencies, key to our success has been our commitment to trade liberalisation in order to open new markets for our indigenous sectors. The EU has successfully concluded a number of important trade agreements with trading partners and is in the process of negotiating or upgrading its agreements with many more. The existing suite of EU Free Trade Agreements and new trade deals will continue to be very important for Ireland. With a small domestic market, further expansion in other markets is essential to our continued economic growth and, in this regard, Ireland will continue to support the EU’s ambitious programme of negotiating new Free Trade Agreements, opening new markets for Irish companies and increasing export and investment opportunities.

Microenterprise Loan Fund

Questions (93)

Bernard Durkan

Question:

93. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the degree to which he is of the view that the available funding under the microenterprise loan scheme can be made available to a vastly increased number of applicants thereby increasing their chances of recovery and progress in the aftermath of Covid-19; and if he will make a statement on the matter. [16009/20]

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Written answers

The COVID-19 Loan, available from Microfinance Ireland (MFI), was introduced as a support to microenterprises to help them access funding arising from the COVID-19 crisis. These loans are available for eligible microenterprises responding to Covid-19-related difficulties, the negative impact of which must be a minimum of 15% of actual or projected income or profit. Loans up to €50,000 are available with terms that include a six months interest free and repayment free moratorium, with the loan to then be repaid over the remaining 30 months of the 36-month loan period. Interest rates of between 4.5% and 5.5% are available.

MFI provides an essential support for very small regional businesses who are hoping to reboot their economic activity over the coming weeks and months.

There has already been a very significant increase in both the value of loans approved and the number of loans approved as this scheme has seen unprecedented levels of interest. As of July 10th, loans of €17.1 million have been approved since the commencement of the Scheme in March, compared to a total loan value approved in 2019 of €6 million. The number of loans approved has also shown a very significant increase with 629 loans approved since the commencement of the scheme compared to 452 loans approved in total in 2019.

Due to this unprecedented demand, lending through this scheme has currently been paused as legislation is required to increase the funding of MFI which is currently at capacity. This legislation passed through the Houses of the Oireachtas on the 8th and 9th of July and signed by the President on the 10th July last. Microfinance Ireland and officials from my Department will work together to reopen this Loan Fund as soon as possible.

Industrial Development

Questions (94)

Bernard Durkan

Question:

94. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which efforts continue to be made to invest in modern industry throughout the island of Ireland with a view to ensuring the maximum positive impact on international markets for products originating throughout the island ; and if he will make a statement on the matter. [16010/20]

View answer

Written answers

My Department through its agencies, Enterprise Ireland and IDA Ireland, is working with manufacturing and internationally traded services companies across Ireland to build scale, innovate and expand reach - key attributes required to be resilient to economic shocks such as Brexit and COVID-19.

At the start of 2020 as the Enterprise Ireland entered the final year of its strategy, client companies were performing strongly and were preparing for the challenges and opportunities presented by Brexit. The agency had delivered a range of new supports to mitigate market shocks associated with Brexit and a contingency plan was in place for activation if required.

In 2019, Enterprise Ireland supported 2,000 Brexit exposed companies and administered €125 million in supports to companies over a 2-year period. These preparations will stand to Irish enterprise as they seek to stabilise their businesses during the COVID-19 pandemic period and then position their companies to recover and grow once markets re-open.

To assist businesses to address the challenges posed by the COVID-19 pandemic, my Department with Enterprise Ireland, IDA Ireland and the Local Enterprise Offices has put in place a comprehensive suite of supports addressing stabilisation of business and access to finance to implement a business sustainment plan. In addition to this Enterprise Ireland remains committed to supporting companies build scale, innovate and expand reach. For example:

- Enterprise Ireland continues to engage with clients on a one-to-one basis to establish company need and will tailor a support package utilising the full suite of supports offered by the agency to address this need.

- The agency’s global network of 40 offices continues to support this activity via providing market intelligence to inform companies’ internationalisation strategies.

- Enterprise Ireland’s client management development programmes, including the delivery of mentoring services to companies, are now being delivered online to companies to support leadership and strategy development in client companies.

- Enterprise Ireland is delivering trade events between Irish companies and overseas buyers online. This are key events for winning business overseas.

- Funding to support regions build increased enterprise capability continues to be delivered. In June, €17 million was awarded under the Border Enterprise Development Fund by the agency to 11 projects in the region.

- In July an ‘All Sectors’ and ‘Women Entrepreneurs’ Competitive Start Fund was opened. The purpose of this fund is to accelerate the growth of start-up companies that have the capacity to succeed in global markets.

- Enterprise Ireland continues to provide equity investment of up to €800,000 on a co-funded basis, to innovation-led high potential start-ups that are developing and commercialising new or substantially improved technologies, products or services.

- Enterprise Ireland is currently engaged in the second call of its Seed and Venture Capital Scheme (2019-2024), targeting funds investing into companies emerging from the third-level research organisations (Spin Outs).

The impact of COVID-19 on Enterprise Ireland clients is unprecedented. How and when the economies of domestic and international markets recover remains unclear. In addition, challenges such as Brexit and changes to the global trading outlook will challenge Irish enterprise in the months ahead.

I can assure the Deputy that my Department and its agencies will monitor the needs of sectors and companies as the situation evolves and provide new supports to meet changing company needs, as required. Indigenous Irish companies are the backbone of the economy and the agency is committed to helping these companies sustain their businesses.

Question No. 95 answered with Question No. 92.

Industrial Development

Questions (96)

Bernard Durkan

Question:

96. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the degree to which he 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 throughout the regions; and if he will make a statement on the matter. [16012/20]

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Written answers

My Department is committed to creating the environment which supports the creation of new enterprises throughout the country and thereby generating employment in every region.

The Programme for Government commits to the delivery of a National SME Growth Plan that will map out an ambitious long-term strategic blueprint beyond COVID-19. In that regard, I will soon be announcing the membership of an SME Growth Taskforce, which will have the capacity and expertise to progress work on thematic areas arising from recommendations by the OECD and to respond to the challenges presented by the COVID-19 Pandemic. This will cover themes including as entrepreneurship, productivity, digitalisation, competitiveness, internationalisation, clustering and networks. The Growth Plan will align with and build on existing national SME policy initiatives. It will also be informed by the European Commission’s very recent SME Strategy for a Sustainable and Digital Europe.

At programmatic level, my Department officials and our agencies are continually working towards driving the creation of new enterprises in the indigenous sector. Last week, for example, Enterprise Ireland launched a €2m Competitive Start Fund open to applicants for two competitions in the ‘All Sectors’ and ‘Women Entrepreneurs’ category. Each of the two €1,000,000 funds will provide up to €50,000 in equity funding to successful projects and may deliver the boost needed to scale up and bring their business to the next level.

These competitive funds are part of Enterprise Ireland’s strategy for increasing the number of diverse High Potential Start-Up companies (HPSUs) that have the qualities to achieve key commercial and technical milestones, including evaluating overseas market opportunities, building prototypes, developing market entry plans and securing third party investment.

In addition, the Local Enterprise Offices (LEOs) provide advice, information and support to businesses in starting up or growing their business. With 31 dedicated teams across the Local Authority network in Ireland, the LEOs offer a wide range of experience, skills and services. The full range of LEO advisory supports continue to be available throughout the regions to eligible firms to help with strategies to access finance, commence or ramp-up online trading activity, reconfigure business models, cut costs, innovate, diversify markets and supply chains and to improve competitiveness.

My Department has developed a range of proposals which I have brought to the Cabinet Committee on Economic Recovery and Investment for consideration. These proposals, along with others from Ministerial colleagues, will be developed and adjusted further for the Government’s consideration of an ambitious stimulus package which will be announced soon.

Importantly, the July Initiative will aim to strategically position our economy and firms to meet future challenges.

I look forward to announcing the details shortly.

Foreign Direct Investment

Questions (97)

Bernard Durkan

Question:

97. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the degree to which he remains confident that Ireland continues to have the ability to attract foreign direct investment at a level required meet the economic needs of the country; and if he will make a statement on the matter. [16125/20]

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Written answers

COVID-19 has presented undeniable challenges to our ongoing efforts to sustain and grow foreign direct investment (FDI) in Ireland. The introduction of travel restrictions around the world is already, for example, disrupting the typical way in which the IDA engages with investors, resulting in fewer numbers of site visits and client meetings. The pandemic has also impacted investor confidence and has likely caused some investment decisions to be delayed or postponed.

Notwithstanding these challenges, which are also faced by our competitor countries, IDA Ireland's results for the first six months of this year have demonstrated the resilience of our FDI base. The Agency has secured over 130 investments to date in 2020, which have the potential to create almost 10,000 jobs. Almost half of these new projects were secured for locations outside Dublin, with 53 investments from companies investing in Ireland for the first time.

I believe that these 2020 investments reflect our continuing attractiveness to overseas firms. Overseas companies continue, the evidence would suggest, to value our FDI strengths. These include our talented and flexible work-force, a track record as a successful home to global businesses and a hard-won reputation as a pro-enterprise jurisdiction. Our continued commitment to the European Union, the single market and Eurozone, as well as to free trade and multilateralism, are other key selling points that help us convince multinational companies to establish operations and create jobs here.

At the same time, we do recognise that the global competition for FDI is intensifying and we are under no illusions that the time ahead will prove more challenging. We will have to fight, harder than ever before, for new investment projects and the jobs that go with them. I look forward, as Tánaiste and Minister for Enterprise, Trade and Employment, to taking on that challenge. This will include working with the IDA on the formulation of a new strategy that will guide the Agency's work in the time ahead.

Departmental Schemes

Questions (98)

David Stanton

Question:

98. Deputy David Stanton asked the Tánaiste and Minister for Business, Enterprise and Innovation the range of supports that will be put in place to support remote working; and if he will make a statement on the matter. [16126/20]

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Written answers

As our country approaches a new normal, remote work is more important than ever. If implemented correctly, it can stimulate regional growth, support the transition to a greener economy, reduce business costs and improve employees’ work-life balance.

However, for this to be possible, the necessary supports must be in place for business and employees to reap its benefits. This is reflected in research undertaken by my Department on Remote Work in Ireland in December 2019. This report outlined the prevalence and types of remote working in Ireland. It also identified the influencing factors for both employers and employees.

A key outcome identified in the Remote Work in Ireland report was the need for official guidance for employers and employees on a variety of different topics, such as equality, health and safety, employment conditions and the right to disconnect, data protection and training. My Department is now working to deliver this guidance with a dedicated Interdepartmental Group comprising of all relevant Departments and Agencies.

While this work is under way, my Department has a webpage which allows employers and employees to easily navigate the existing guidance on remote working. This webpage is a central access point for all of the Government guidance currently available on remote working.

Amid the COVID19 pandemic, many of us have had to adjust to working remotely with minimal preparation. To gain insights from employers and employees on their key areas of concern, my Department has launched a public consultation on remote working guidance. The submissions will allow us to identify areas where further guidance can be provided and will also shape future remote working policy. I encourage all interested parties to take part in this consultation, the full details of which can be found on my Department’s website.

Following the results of this consultation, my Department will use the insights and feedback arising from the submissions to further refine the current remote working guidance. This work will be completed before the end of 2020.

Covid-19 Pandemic Supports

Questions (99)

David Stanton

Question:

99. Deputy David Stanton asked the Tánaiste and Minister for Business, Enterprise and Innovation the measures being put in place to help business move online during the Covid-19 crisis; and if he will make a statement on the matter. [16127/20]

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Written answers

The Trading Online Voucher Scheme (TOV) is a scheme which forms an integral part of the National Digital Strategy. In that context, my colleague, Minister Eamonn Ryan, Minister for Communications has responsibility for policy matters related to the scheme including the eligibility criteria and funding.

Nevertheless, in recognition of the increased demand for the scheme as a result of the COVID-19 crisis, my Department has recently contributed €7 million towards the Scheme to ensure that the scheme is adequately capitalised to meet the surge in demand from eligible applicant companies.

The TOV scheme assists small business owners to move to an online trading platform where they could potentially increase domestic sales and their export capability. The Scheme offers skills training, mentoring and financial support of up to €2,500 to help small and micro-businesses to develop their ecommerce capability.

In recognition of the increased demand for the scheme and as a further assistance to microenterprises, the scope of the TOVs scheme was expanded to offer financial assistance of up to €2,500 with a reduced co-funding contribution from businesses from 90% to 10%. The Scheme also contains a training and advice module for potential applicants.

On the 8th of June the Government announced additional funding of €14.2m for the Scheme bringing the total funding allocation in 2020 to €19.8m. This additional funding allowed LEOs to meet current demands for the Scheme. In addition, new flexibilities to the Scheme were introduced in April including allowing businesses to apply for a second voucher of up to €2,500 where they have successfully utilised their first one. To date over 7,000 applications have been received for the vouchers.

For enterprises with over 10 employees, Enterprise Ireland administers the COVID-19 Online Retail Scheme. The objective of the scheme is to support companies in the indigenous retail sector which have started an online journey which will have the most immediate impact enabling them to respond to both the domestic and international consumer demand with a competitive online offer.

On 2nd July, I announced the successful applicants approved for funding through the COVID-19 Online Retail Scheme. 183 retailers have been approved for €6.5 million in funding as part of the scheme, almost three quarters of the successful applicants are located outside Dublin with 130 retailers from the regions approved for funding.

The value of the scheme, which received 373 applications, was increased from €2 million to €6.5 million due to the high level of demand amongst retailers and the high quality of the proposals received. The Scheme helps Irish-owned retailers to strategically enhance their online sales capabilities, so they can be more competitive, sustain jobs and subsequently scale their businesses in international markets.

Under this COVID-19 competitive call, the successful applicants will receive funding ranging from €16,000 to €40,000 to strengthen their online offering. The average grant value is €35,500. Enterprise Ireland will be opening a 2nd Call under the COVID-19 Online Retail Scheme in the coming weeks.

Enterprise Support Services

Questions (100)

Neale Richmond

Question:

100. Deputy Neale Richmond asked the Tánaiste and Minister for Business, Enterprise and Innovation the specific measures being considered to protect businesses facing into the Covid-19 recovery, which will affect businesses long after 1 January 2021, and a potential no-trade deal Brexit simultaneously; and if he will make a statement on the matter. [16128/20]

View answer

Written answers

The Government has already introduced a €12bn package of supports for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment for the self-employed, grants, low-cost loans, repayable advances, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.

As Tánaiste and Minister for Enterprise, Trade and Employment I am leading on the development of an ambitious range of proposals for the July stimulus to further assist businesses to open and to sustain employment. These proposals, along with others from Ministerial colleagues, will be developed and adjusted further for the Government’s consideration, which will be announced soon.

The range of supports available from my Department and across Government are designed to build confidence, to further assist businesses in terms of the management of their companies and to allow them to begin looking to the future and start charting a path forward for the weeks and months ahead.

There are some welcome signs of improvement in business activity and the economy. However, sectors that employ a lot of people, such as tourism and hospitality, arts and entertainment and other services that rely on social interaction, remain in serious difficulty and their recovery prospects are highly uncertain. While we can’t keep every firm and job alive, I believe our emphasis should still be to preserve these insofar as we can.

The July stimulus package to be announced shortly, will be radical, of scale and far-reaching. In considering the analyses, I see five areas in which we should focus on in helping our enterprises in the future.

1. Income supports for workers

2. Direct grants for businesses

3. Cheaper finance

4. New opportunities for future jobs

5. Support for the hardest hit sectors

The July Stimulus is aimed at helping firms meet the fixed, non-wage costs incurred during lockdown and in re-opening. Our current Restart Grant is a significant help but it could be improved to widen and deepen the impact for businesses that are reopening and taking back employees. That is why we are examining all dimensions of the Restart Grant as set out in the Programme for Government.

In improving access to finance, there is a need to not only guarantee credit but do so in a way which does not add costs to businesses unduly. As well as this, and looking to the long-term, the important area of seed and venture capital needs strengthening.

While I have emphasised the importance of preserving existing firms and jobs, the July package should also have an eye to exploiting emerging opportunities and attract high value projects with significant economic benefits. Importantly, the July Initiative must position our economy and firms to meet future challenges. In the near-term, this includes helping companies further in overcoming the challenges of Brexit, but we also need to include measures that build enterprise resilience and help them transition to a low carbon future.

The full range of Enterprise Ireland, Local Enterprise Office (LEO) and Údarás na Gaeltachta grant and advisory supports continue to be available to eligible firms to help with strategies to access finance, commence or ramp-up online trading activity, reconfigure business models, cut costs, innovate, diversify markets and supply chains and to improve competitiveness.

Enterprise Ireland is also working with client companies to support the stabilisation of their business such as the Lean Business Continuity Support and the Business Financial Planning Grant so that they can undertake a developmental programme focused on recovery and growth.

In addition to the immediate COVID-19 response, Enterprise Ireland continues to strongly focus on supporting companies to invest in innovation, competitiveness and market diversification. This will be vital for recovery from the impact of COVID-19 and to meet the challenges and opportunities presented by Brexit.

The Regional Enterprise Development Fund (REDF), which is administered by Enterprise Ireland on behalf of my Department, was introduced to support the development and implementation of collaborative and innovative projects that can sustain and add to employment at county, regional and national level. The REDF has been an effective instrument of policy particularly as a complement to the Regional Enterprise Plans where it has served as an enabler for projects emerging from that regional collaborative process.

My Department’s Border Enterprise Development Fund (BEDF), which is administered by Enterprise Ireland, was launched earlier this year and will provide support for collaborative, enterprise capability building projects, to advance entrepreneurship, productivity and innovation in the Border Region. The aim of the fund is to improve the international competitiveness of enterprise in the Border Region in the context of Brexit and other market challenges, which now also include COVID-19.

I can assure the Deputy that I will continue to work with my colleagues across Government and with all stakeholders, to examine all such appropriate business supports to assist all businesses impacted by COVID-19 and a possible no deal Brexit.

Brexit Supports

Questions (101)

Neale Richmond

Question:

101. Deputy Neale Richmond asked the Tánaiste and Minister for Business, Enterprise and Innovation the measures that will be put in place to protect vulnerable industries, particularly the agrifoods industry, post Brexit in view of the fact no trade deal will be better than the UK and Ireland both trading within the EU single market (details supplied); and if he will make a statement on the matter. [16129/20]

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Written answers

Brexit, in whatever shape it finally takes, will have a significant impact on the Irish economy and fundamentally change the trading environment for businesses trading with the UK.

My Department undertook a 2018 report entitled "Strategic Implications for Ireland arising from changing EU-UK trading relations" which examined the implications of Brexit for the Irish economy and trade.

While tariffs often spring to mind as a significant cost factor, it is in fact the cost of non-tariff barriers due to regulatory divergence that will have a greater impact on businesses trading with the UK.

In January this year, my Department published a further study on Brexit impacts based on the Withdrawal Agreement and the Revised Political Declaration (RPD) agreed between the EU and the UK. The findings suggest a reduction in Irish GDP of between 3.2% and 3.9% by 2030 compared with a baseline where the UK remains a member of the EU. This compares with a negative impact of 7% in the no deal (WTO basis) modelled in the 2018 study.

Of course, both Brexit studies predated COVID-19 which has had a severe impact on Irish GDP with recent forecasts for negative GDP growth in 2020 of around 10%.

Government has taken extensive action to mitigate the worst effects of Brexit and in each of the last three budgets provision was made to assist businesses to prepare for Brexit. This includes a wide variety of soft and harder enterprise and financial interventions delivered mainly through the enterprise agencies. At entry level, training, mentoring and consultancy advice has been provided leading to financial assistance by means of vouchers, grants, short term liquidity loans and longer-term loans to assist businesses restructure and diversify into new markets outside the UK.

Customs is another area that we have been actively working on putting in place training programmes as well as the Clear Customs Initiative designed to build sufficient capacity to deal with the new checks, controls and documentation that businesses will need post Brexit.

Furthermore, earlier this year my Department brought forward a €28 million economic stimulus package for the border region since border counties are heavily exposed to Brexit.

My Department, through the regulatory agencies under my remit, also has ongoing engagement in important regulatory areas such as product certification and standardisation, market surveillance and on consumer and competition issues.

Budget 2020 recognised the potentially disastrous effects of a No Deal Brexit. While we hope the ongoing discussions will be successful, the possibility of no trade deal cannot be ruled out. Budget 2020 made provision for a Contingency Fund to be made available in the event of a No Deal Brexit to help enterprises and sectors most affected. This contingency may well be required in the event that no deal is possible between the EU and the UK and further consideration will need to be given to this in the remaining months of this year.

While Brexit presents an economy wide challenge, several exporting sectors are highly exposed to Brexit, including the Food & Drinks sector. In 2019, approximately 200 Food & Drinks client companies reported exports into the UK. Of this, approximately 50% are highly exposed to Brexit. Enterprise Ireland is working intensively with this group to ensure that sustainability and growth plans are in place as we approach end of the transition period on 31st December.

Over the past four years, Enterprise Ireland has rolled out a range of supports to help companies to prepare for Brexit including the Brexit Scorecard, Be Prepared Grant, Advisory Clinics, Online Customs Training, and Act On Consultancy. These supports have been effective in ensuring our Food & Drinks clients have access to all the available information and expertise in order to develop robust Brexit plans.

The momentous structural shift that Brexit represents will bring additional challenges for our Food and Drink companies around competitiveness, innovation and market diversification.

Cost competitiveness is key and Irish companies will face increased competition not only in the UK market but also in the domestic market.

Closely related to staying competitive is the real need for companies to invest more in innovation which is a critical component of competitiveness and is also an enabler for companies to diversify into new products and in turn, new markets.

Working closely with Bord Bia, Enterprise Ireland continues to support all Food & Drinks client companies to innovate, compete and diversify their exports in order to support companies to navigate the challenges and opportunities posed by Brexit. Enterprise Ireland’s Brexit specific supports will continue to be utilised alongside supports focused on innovation and competitiveness such as their Agile Innovation Fund, R&D Fund, Lean Transform Fund and Operational Excellence grants to position companies to diversify their product offering and to reach new markets.

It is intended also that the LEOs will continue to offer Brexit measures focused on winning export customers and improving competitiveness through existing measures such as the Technical Assistance for Micro Exporter Grants, the Lean4Micro and Productivity Challenges initiatives.

The July Stimulus Package will also aid our economy to recovery from the shock of the pandemic and restore confidence and prosperity. I have already said that the Package will be radical, far-reaching aimed at setting our economy on the right course for the foreseeable future.

I am confident that the actions we take now, followed by those outlined in the national recovery plan and Budget 2021 in October, will put our economy on the right track to deal with Brexit regardless of the nature of the future trading relationship between the EU and the UK.

Company Law

Questions (102)

Alan Farrell

Question:

102. Deputy Alan Farrell asked the Tánaiste and Minister for Business, Enterprise and Innovation the measures that will be put in place to reform company law in view of Covid-19; and if he will make a statement on the matter. [16130/20]

View answer

Written answers

I brought proposals to Cabinet yesterday, which were approved by Government, for the priority drafting of proposed amendments to the Companies Act 2014 to take account of the continuing impact of Covid-19 on our economy.

The proposed amendments to the Companies Act follow extensive engagement by my Department with the Company Law Review Group (CLRG) and are designed to help companies mitigate the impact Covid-19 continues to have on the normal operation of business while maintaining the appropriate safeguards for the protection of employees and creditors.

On 25 June, the CLRG recommended a number of amendments to address areas of concern in respect of operational matters in relation to compliance under the Act such as the requirement to hold an Annual General Meeting (AGM), and protective measures designed to pre-empt certain impacts the crisis may have on a company’s solvency with a view to protecting viable businesses, retaining employment and supporting economic recovery post-crisis. The CLRG recommended that amendments be temporary in nature and operational until 31 December 2020, with the potential for extension.

The proposed amendments to the Companies Act that I am bringing forward on this basis are to:

- Provide for virtual general and creditors’ meetings. This is to allow companies to comply with their obligations under the Companies Act while also ensuring they act in accordance with the latest Government health advice.

- Allow companies to postpone an AGM until 31 December 2020.

- Allow documents which are required to be executed under seal to be signed in separate counterparts. This is to address the situation where a company seal and its directors and secretary are in separate locations due to remote working. It is a small amendment but one with a practical impact that will reduce the administrative burden on companies;

- Increase the amount at which a creditor can issue a statutory demand from €10,000 for a single creditor and €20,000 in the aggregate to €50,000. This amendment is intended to support viable businesses and ensure they are not wound up by the Court for relatively low levels of debt.

- Extend the examinership process to a total of 150 days. The amendment seeks to provide businesses in examinership with additional breathing space as they attempt to restructure and trade through the pandemic. This extension is subject to court approval and in making its determination the court will consider the impact of Covid-19 and the impact any extension will have to the survival of the company and preservation of employment.

- Codify a directors’ duty to creditors as a company approaches insolvency. This amendment is based on a recommendation of the Company Law Review Group in its 2017 Report on the Protection of Employees and Unsecured Creditors. It would put the duty owed to creditors on a statutory footing, in line with other fiduciary duties.

These amendments are considered necessary in the immediate term to address the instant impacts of the crisis.

The General Scheme of a Bill to provide for these proposed amendments to the Companies Act 2014 is being published on my Department’s website today.

As the country moves forward from the immediate impacts of the Covid-19 crisis, it will also be essential that we consider stabilisation measures required in the medium term. In this regard, I have requested the Company Law Review Group examine as a priority the issue of corporate rescue for SMEs and micro-enterprise, given the vital part that such businesses will play in our country’s economic recovery.

Covid-19 Pandemic Supports

Questions (103)

Alan Farrell

Question:

103. Deputy Alan Farrell asked the Tánaiste and Minister for Business, Enterprise and Innovation if the business restart grant will be reviewed; if further grant supports for SMEs will be considered in view of Covid-19; and if he will make a statement on the matter. [16131/20]

View answer

Written answers

As stated in the Programme for Government, we will bring forward a Jobs Stimulus this month to boost our economy and help restore employment. Helping our SMEs is central to this, given their pivotal role in the economy and employment. This July Stimulus will extend, enhance and add to the existing measures totalling €12 billion in supports for COVID-19 impacted businesses already announced.

The Restart Grant was launched on 22 May 2020 and is a critically important tool to support small businesses to reopen their doors and get back on their feet. Grant payments available range from a minimum of €2,000 up to €10,000 available. The scheme was devised in recognition of the fact that micro and small businesses were and are particularly vulnerable to the economic effects of COVID-19.

Using funding allocated by my Department to Enterprise Ireland for the Scheme, the Local Authorities are the granting authority in each of their respective areas. The Local Authorities make grant payments to the bank account of qualifying businesses, in accordance with the scheme.

As of 10 July 2020, 40,506 businesses have applied for €141.7m in grants. A total sum of €94,795,136 in grants has been disbursed to businesses by local authorities to date, in respect of 23,326 applications.

A further sum of €15,044,550 is due to be paid in respect of applications which have recently been approved.

The Restart Grant is, however, just one part of a wider assistance package for business and for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment for the self-employed, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs. Within the funding available so far, the priority has been to assist those who have suffered most, including closure of the business, but whom will still have incurred ongoing costs.

Although the Restart grant scheme has been broadly welcomed by those businesses which have benefitted, I am examining how it can be improved to widen and deepen the impact for businesses that are reopening and taking back employees. My officials are examining all dimensions of the Restart Grant as set out in the Programme for Government.

Electric Vehicles

Questions (104)

Neale Richmond

Question:

104. Deputy Neale Richmond asked the Minister for Communications, Climate Action and Environment the mechanisms in place for persons residing in private apartment complexes to install electric car chargers at their own cost in their parking spaces or to encourage management companies to allow residents to do so as in the case of residents in a location (details supplied); and if he will make a statement on the matter. [14793/20]

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Written answers

Home charging accounts for around 80% of electric vehicle (EV) charging in Ireland and it is best practice, internationally, to promote home charging as the most common and cheapest form of charging. Government policy is to promote home charging and to maintain the current high level of home charging.

The Sustainable Energy Authority of Ireland (SEAI) administers an EV Home Charger Grant of up to €600 towards the purchase and installation of an EV home charger unit for those with access to an off-street parking space which can be connected to their domestic supply.

The SEAI also administers an EV Public Charge Point Grant to Local Authorities to install charge points on public streets or public car parks which provide overnight car parking for local residents. A total of 75% of the capital costs is provided through the grant, up to a maximum of €5,000 per charge point.

The Climate Action Plan set out a number of steps necessary to develop the EV charging network and work is being progressed to expand the EV Home Charger Grant to include shared parking (i.e. in apartment blocks). However, there is a number of complex planning and legal issues to address before it will be possible to expand this grant. My Department and the SEAI are working to address the issues involved.

Crime Prevention

Questions (105)

Paul McAuliffe

Question:

105. Deputy Paul McAuliffe asked the Minister for Communications, Climate Action and Environment if he has considered measures to reduce thefts of catalytic converters such as requiring proof of vehicle ownership before catalytic converters can be sold on the market. [14832/20]

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Written answers

Issues concerning the theft and handling of stolen property are matters for the Minister for Justice and Equality. Under the Criminal Justice (Theft and Fraud Offences) Act 2001, maximum sentences of 10 years are provided for in the case of offences of theft and handling of stolen property; while maximum sentences of 5 years are provided for the offence of possession of stolen property.

While regulation of the scrap metal industry including second hand car parts is not a matter within the remit of my Department, the regulation of waste activities is, of course, relevant to the industry. In order to improve traceability of waste received and to counter the trade in stolen metal, an amendment to the Waste Management (Facility Permit and Registration) Regulations 2007 was introduced to require the following at all permitted facilities receiving/purchasing waste:

- the production of proof of identity and current address of the person supplying the material,

- records to be kept of the registration number and waste collection permit number of the delivery vehicle,

- that records be kept describing the materials, time and date of sale, weight and amount paid, and

- a signed statement by the person supplying the material that they are the lawful owner of the material.

Under the National Waste Enforcement Priorities 2020, local authorities have been instructed to undertake appropriate inspections to ensure compliance by waste facility operators with these enhanced traceability requirements. In addition officials from my Department continue to be actively involved in the Metal Theft Forum, which is a collaborative working group between State stakeholders and industry representatives to improve information sharing around the issue of metal theft.

In line with the commitment set out in the Programme for Government - Our Shared Future - I will shortly be publishing an ambitious Waste Action Plan for a Circular Economy which will contain further actions to strengthen waste enforcement at national, regional and local levels.

Ministerial Responsibilities

Questions (106)

Alan Kelly

Question:

106. Deputy Alan Kelly asked the Minister for Communications, Climate Action and Environment the Minister that has responsibility for the environment. [14904/20]

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Written answers

Environmental functions constitute a significant proportion of my Department's area of responsibility, and include those in relation to climate action, waste and resource efficiency, sustainable development, and air quality, as well as the governance and oversight of the Environmental Protection Agency.

Other Government Departments also have responsibility for what could be broadly classified as "environmental functions". For example, the Department of Housing, Planning and Heritage will have responsibility for water quality, marine spatial planning and biodiversity issues.

The Programme for Government provides for the establishment of a Cabinet Committee on Environment and Climate Change which will consider all of Government environmental and biodiversity issues.

Ministerial Responsibilities

Questions (107)

Seán Sherlock

Question:

107. Deputy Sean Sherlock asked the Minister for Communications, Climate Action and Environment the Minister that has responsibility for waste management. [15069/20]

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Written answers

As Minister for Communications, Climate Action and Environment, my role with regard to waste management is to provide a comprehensive legislative and waste policy framework through which the relevant environmental regulatory bodies, including local authorities and the Environmental Protection Agency, operate.

In this context I will soon be bringing forward an ambitious new waste policy which will include a range of measures to reform and strengthen how we manage our waste with a greater focus on prevention through product design and consumer choice.

Energy Efficiency

Questions (108)

Francis Noel Duffy

Question:

108. Deputy Francis Noel Duffy asked the Minister for Communications, Climate Action and Environment the details of the national retrofit plan; if the pilot scheme that was cancelled in 2019 will be rerun; the details of future undertakings of the pilot scheme; and if he will make a statement on the matter. [15943/20]

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Written answers

The Programme for Government and the Climate Action Plan set highly ambitious targets for the number and depth of residential retrofits to be completed by 2030. The targets are to retrofit 500,000 homes to a Building Energy Rating of B2/cost optimal equivalent and to install 400,000 heat pumps in existing buildings over the next 10 years. Retrofitting has the ability to contribute to a number of important goals including - decarbonisation; warmer, more comfortable homes; and job creation and retention.

A cross-Departmental Retrofit Taskforce has been established to develop a new retrofit delivery model capable of achieving these targets. This process has been informed by experience from existing schemes in Ireland such as the Deep Retrofit Pilot Scheme referred to by the Deputy, consultation with stakeholders and an analysis of relevant international experience. The model is designed to address barriers to energy efficiency investments in four key areas: customer proposition and demand generation, financing and affordability, supplier capacity, and delivery structure. The Climate Action Plan, as part of this process, commits to reviewing and redesigning the existing grant schemes to ensure alignment with Government climate objectives and value for money.

The Retrofit Taskforce report is to be published in Q3 2020 which will inform the future design or retrofit schemes to deliver the ambitious targets as set out in the program for government.

Trading Online Voucher Scheme

Questions (109)

Cormac Devlin

Question:

109. Deputy Cormac Devlin asked the Minister for Communications, Climate Action and Environment if additional funding will be available to local authorities that have exhausted their trading online voucher allowances for 2020; and if he will make a statement on the matter. [16095/20]

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Written answers

The Trading Online Voucher Scheme is managed by my Department and delivered nationwide in partnership with the Department of Enterprise, Trade and Employment, the Department of Media, Tourism, Arts, Culture, Sport and the Gaeltacht, Enterprise Ireland, the 31 Local Enterprise Offices and Údarás na Gaeltachta. The Scheme offers skills training, mentoring and a grant of up to €2,500 to help small and micro-businesses to develop their ecommerce capability.

The Scheme was launched nationally in mid-2014. By end 2019, some 6,400 small and micro businesses had completed, or were in the process of completing their trading online projects. In addition, 19,000 or so business owners-managers had benefitted from advice and peer-to-peer support through their participation in the information seminars delivered by the Local Enterprise Offices under the Scheme.

In response to Covid-19, funding for the Scheme in 2020 was increased from €2.3m to €19.8m, and new flexibilities were introduced including reducing the requirement for co-funding from 50% to 10% and allowing businesses to apply for a second voucher of up to €2,500 where they have successfully utilised their first one.

There has been continuing high demand for the Scheme and my Department in liaison with the Department of Enterprise, Trade and Employment and Enterprise Ireland is working with the LEO network to address that demand. Funding for the Scheme is kept under review.

National Broadband Plan

Questions (110, 129)

Pearse Doherty

Question:

110. Deputy Pearse Doherty asked the Minister for Communications, Climate Action and Environment if fibre broadband will be put in place for a person (details supplied); and if he will make a statement on the matter. [14678/20]

View answer

Emer Higgins

Question:

129. Deputy Emer Higgins asked the Minister for Communications, Climate Action and Environment when broadband will be available at a house (details supplied); the steps the owner can take to accelerate the process; and if he will make a statement on the matter. [15692/20]

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Written answers

I propose to take Questions Nos. 110 and 129 together.

The Questions refer to premises which are located in the AMBER area on the NBP High Speed Broadband Map which is available on my Department's website at www.broadband.gov.ie. The AMBER area represents the area to be served by the network to be deployed under the NBP State led Intervention, the contract for which was signed in November last with National Broadband Ireland (NBI).

The NBP network will offer users a high speed broadband service with a minimum download speed of 150Mbps from the outset. By the end of next year, NBI plans to pass in the region of 115,000 premises, with 70,000 - 100,000 passed each year thereafter until rollout is completed. All counties will see premises passed in the first 2 years and over 90% of premises in the State will have access to high speed broadband within the next four years. The Government is committed to delivering high speed broadband to every home, farm, business and school in Ireland and my Department continues to engage with NBI to explore the feasibility of accelerating aspects of this rollout to establish the possibility of bringing forward premises which are currently scheduled in years 6 and 7 of the current plan to an earlier date. Further information on deployment activities associated with the rollout can be found on the NBI website http://www.nbi.ie.

To support remote working and connected communities, approximately 300 Broadband Connections Points (BCPs) were identified by Local Authorities to be connected to high speed broadband this year. This will assist communities to quickly get free public access to high speed broadband in advance of the main deployment under the National Broadband Plan (NBP). The planned BCP locations, including schools, library hubs, local sports facilities and other public places are available to view on the High Speed Broadband Map on the Department’s website www.broadband.gov.ie.

The BCP delivery project is well underway and connectivity is being provided to each of the sites by National Broadband Ireland (NBI). Subsequent to this, the sites, other than schools, are being Wi-Fi enabled by Vodafone under a contract with the Department of Rural and Community Development. This work also involves the local authorities and site owners determining the services that will be provided for end-users at each site. For the 75 schools that are also part of this project, enabling these schools with Wi-Fi is being led by the Department of Education subsequent to NBI providing the connectivity to the schools.

Bringing connectivity to remote rural locations is central to promoting regional development and BCPs represent an important delivery in the early stages of the National Broadband Plan.

National Broadband Plan

Questions (111)

Michael Lowry

Question:

111. Deputy Michael Lowry asked the Minister for Communications, Climate Action and Environment the status of broadband for Muckloonmodderee, Cornamult and the Terryglass areas of County Tipperary; when the areas will receive fibre broadband through State intervention and the national broadband plan, NBP, in view of the fact the area was brought into the amber region following the 2019 NBP mapping consultation review; and if he will make a statement on the matter. [14717/20]

View answer

Written answers

The Question refers to areas which are located in the AMBER area on the NBP High Speed Broadband Map which is available on my Department's website at www.broadband.gov.ie.

The AMBER area represents the area to be served by the network to be deployed under the NBP State led Intervention, the contract for which was signed in November last with National Broadband Ireland (NBI). The NBP network will offer users a high speed broadband service with a minimum download speed of 150Mbps from the outset. By the end of next year, NBI plans to pass in the region of 115,000 premises, with 70,000 - 100,000 passed each year thereafter until rollout is completed. All counties will see premises passed in the first 2 years and over 90% of premises in the State will have access to high speed broadband within the next four years. Design work is complete or ongoing in target townlands across 14 counties, including Tipperary.

The Government is committed to delivering high speed broadband to every home, farm, business and school in Ireland and my Department continues to engage with NBI to explore the feasibility of accelerating aspects of this rollout to establish the possibility of bringing forward premises which are currently scheduled in years 6 and 7 of the current plan to an earlier date. Further information on deployment activities associated with the rollout can be found on the NBI website http://www.nbi.ie.

To support remote working and connected communities, approximately 300 Broadband Connections Points (BCPs) were identified by Local Authorities to be connected to high speed broadband this year. I understand that a BCP location is planned near the areas referenced, at Aglish Community Hall, which will assist the local community to quickly get free public access to high speed broadband in advance of the main deployment under the National Broadband Plan (NBP). The planned BCP locations, including schools, library hubs, local sports facilities and other public places are available to view on the High Speed Broadband Map on the Department’s website www.broadband.gov.ie.

The BCP delivery project is well underway and connectivity is being provided to each of the sites by National Broadband Ireland (NBI). Subsequent to this, the sites, other than schools, are being Wi-Fi enabled by Vodafone under a contract with the Department of Rural and Community Development. This work also involves the local authorities and site owners determining the services that will be provided for end-users at each site.

For the 75 schools that are also part of this project, enabling these schools with Wi-Fi is being led by the Department of Education subsequent to NBI providing the connectivity to the schools.

Bringing connectivity to remote rural locations is central to promoting regional development and BCPs represent an important delivery in the early stages of the National Broadband Plan.

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