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Tuesday, 14 Jul 2020

Written Answers Nos. 1-30

IDA Ireland

Questions (21)

Matt Shanahan

Question:

21. Deputy Matt Shanahan asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of IDA visits to Waterford city and county in the past two years; and if he will make a statement on the matter. [15822/20]

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Written answers

There has been a significant increase in foreign direct investment (FDI) in County Waterford in recent years. Since 2012, employment at overseas companies in Waterford has risen by 40%, with over 120 net new jobs created in 2019. There are now over 7,000 people employed across 36 IDA client companies in the County. I am determined, together with IDA Ireland, to increase these numbers further as best we can.

An important strength for Waterford is its hard-earned reputation as a successful home to firms from the MedTech and Pharmaceuticals sectors. Companies such as GlaxoSmithKline, Sanofi and EirGen Pharma are all located there and continue to perform well. There have also been promising new investments in the County in the last 12 months – from companies such as the Emerald Contact Centre and The Agora Companies – which reflect Waterford’s wider potential across other FDI areas. This increasing diversity of profile of overseas companies there bodes well for future investment and reflects the potential of the County.

County Waterford hosted 18 site visits in 2019 and 21 site visits in 2018. There have been three site visits to Waterford as of the first quarter of this year. Information is not available on the number of visits to Waterford City as the IDA compiles such data on a county-by-county basis only.

The reduced number of site visits in 2020, as the Deputy will appreciate, is mainly attributable to the introduction of international travel restrictions related to Covid-19. Those restrictions have, amongst other things, led to the cancellation or postponement of scheduled IDA site visits and client meetings in every region of the country, including Waterford and the South-East.

Notwithstanding the difficulties presented by the pandemic, site visits do remain an important means by which the IDA can showcase regional locations – including Waterford – to prospective investors. At the same time, we must recognise that the final decision as to where to invest always rests with the overseas company concerned. It is also the case, no matter what efforts we make to underline the undoubted benefits of regional locations, that certain firms will only consider investing in large urban areas for various commercial or operational reasons.

More broadly, it’s clear the FDI will have an important role to play – both in Waterford and across Ireland – as we seek to recover from the damage caused by Covid-19. Ireland remains highly attractive to international investors and we need to continue securing new FDI projects that can create jobs and stimulate other economic activity. The IDA’s positive mid-year results, which I announced last week, reflect the resilience of the FDI base here and I will be doing everything I can to support its further growth and development, including in the South-East.

Question No. 22 answered orally.
Question No. 23 withdrawn.
Questions Nos. 24 to 27, inclusive, answered orally.

Business Regulation

Questions (28)

James Lawless

Question:

28. Deputy James Lawless asked the Tánaiste and Minister for Business, Enterprise and Innovation his plans to review regulations on business. [15820/20]

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Written answers

My understanding is that the Deputy’s question relates primarily to the regulations in place for the hospitality sector and licensed premises with regard to the re-opening of those businesses. These regulations are not within the remit of my Department but are, mainly, within the remit of the Department of Transport, Tourism and Sport with most regulation of licensed premises resting with the Department of Justice.

I understand that the Deputy is also enquiring about the giving of refunds for flights and package holidays. While legislation on these matters also falls within the remit of the Department of Transport, Tourism and Sport, I can provide the Deputy with the following information.

In relation to airline refunds the legal position is that air passenger rights are protected by Regulation (EC) No. 261/2004, which covers the rights of passenger in instances of cancellations. However, if a flight goes ahead and a customer either cancels or does not use their ticket, they are not entitled to a refund under this EU law. That said, I understand that the main Irish airlines are currently allowing customers who are booked to travel over the summer months to move their flights with zero change fee. Where flights are cancelled by the airlines, people are entitled to a full cash refund.

Similarly, the Package Travel market is regulated at EU level – the Package Travel Directive provides important consumer protections including the right to cancel a package holiday and receive a refund. The COVID-19 crisis has severely disrupted the travel plans of many, with many opting to follow Government advice not to undertake non-essential travel. As a result, Irish licensed tour operators and travel agents have seen an unprecedented demand for refund of package holidays - the Directive obligates them to refund even if flights go ahead.

Clearly the existing consumer protections and legal obligations on airlines and the broader travel sector did not envisage the current circumstances of mass cancellations and stringent travel restrictions across the globe. That has, not surprisingly, put the entire system under immense pressure and it is causing real difficulties for people and businesses.

The Minister for Transport has approved regulations to provide a State-guarantee for credit notes issued by Irish-licensed travel agents and tour operators, known as Refund Credit Notes. Where a customer agrees to accept a Refund Credit Note instead of cash, the cash value of the refund credit note is guaranteed, until such time as the customer decides to cash it or use it against a rebooked holiday. This will help support viable, Irish businesses through these unprecedented times.

My colleague Eamonn Ryan, Minister for Climate Action, Communications Networks and Transport, is also aware that the options put forward by airlines may not be fair or workable for customers in all instances, and he will be raising this with the industry at the first available opportunity.

Legislative Measures

Questions (29)

Gino Kenny

Question:

29. Deputy Gino Kenny asked the Tánaiste and Minister for Business, Enterprise and Innovation his priority legislation in the area of workers’ rights and employment legislation; if the Employment Permits Act will be amended for migrant workers to make it possible to access the Workplace Relations Commission and Labour Court; if legislation regarding SEOs and collective agreements will be strengthened; and if he will make a statement on the matter. [15814/20]

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Written answers

While employments rights policy is currently the responsibility of my colleague Minister Heather Humphreys T.D. in the Department of Employment Affairs and Social Protection, it will soon be transferring to my Department. I understand that there is no pending priority legislation in the area of employment rights at this time.

I am concerned that there appears to be a mistaken belief out there that migrant workers – and by this term I mean workers who are from outside the European Economic Area who rely on employment permits to access the Irish Labour market – are somehow outside the protections that the State guarantees for all workers. Irish employment law does not discriminate. All workers in Ireland are entitled to refer employment rights complaints to the Workplace Relations Commission and the Labour Court. Migrant workers enjoy the same protections under the Payment of Wages Act, Organisation of Working Time Act, Employment Equality Acts, and so on, as any Irish worker.

The Workplace Relations Commission provides information booklets on employment rights in 15 languages, including Irish. These are available on the WRC's website.

I have clarified my position concerning the Sectoral Employment Orders already today. We will appeal the High Court decision. I am committed to the sectoral employment orders and will be taking any action necessary to ensure stability in the sectors concerned.

Covid-19 Pandemic Supports

Questions (30)

Marc MacSharry

Question:

30. Deputy Marc MacSharry asked the Tánaiste and Minister for Business, Enterprise and Innovation the consideration his Department is giving to additional measures that may be needed to support the hospitality, retail, entertainment, arts and leisure sectors. [15801/20]

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Written answers

As the Deputy will know, many of the sectors referred to in the question relate to policy responsibilities of other Ministers but I am happy to outline my position on how best to assist enterprises in the current circumstances and into the future.

Firstly, I would remind the Deputy that much has already been done. Some of the supports already available include:

- the Temporary Wage Subsidy Scheme - under which the Government has invested almost €2 billion in supporting the maintenance of employment across the enterprise sector;

- the €250 million Restart Fund to help small businesses to reopen their doors and get back on their feet;

- a €2 billion Pandemic Stabilisation and Recovery Fund within the Ireland Strategic Investment Fund which is making capital available to medium and large enterprises;

- the 'warehousing' of tax liabilities for a period of twelve months after recommencement of trading during which time there will be no debt enforcement action taken by Revenue;

- relief on rates for three months for businesses that were closed;

- a €450m Working Capital scheme from the Strategic Banking Corporation of Ireland (SBCI); and

- an additional €200m Future Growth Loan Scheme (SBCI) to be released in tranches, providing longer-term loans to COVID-19 impacted businesses.

The full list of the business supports is available on my Department’s website.

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 further for the Government’s consideration of an ambitious stimulus package which will be announced soon.

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, our emphasis is to protect jobs insofar as we can.

It would be inappropriate to set out now the details of the proposals, but I can assure the Deputy that the Government will not be found wanting. Not only must we overcome the current challenges but we must also look ahead.

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 needs to help firms meet the fixed, non-wage costs incurred during lockdown and in re-opening.

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