Written Answers Nos. 41-60
41. Deputy Brendan Griffin asked the Tánaiste and Minister for Enterprise, Trade and Employment his views on the best way in which to attract further foreign direct investment jobs for County Kerry; and if he will make a statement on the matter. [34933/20]
View answerAs Tánaiste and Minister for Enterprise, Trade and Employment, my focus is to lead our country through the economic crisis that has been caused by the COVID-19 pandemic. My Department, and the enterprise agencies under my remit, are doing everything possible to sustain businesses and get our people safely back to work in all parts of our country.
I believe the best way to attract further foreign direct investment to Kerry is to continue assisting IDA Ireland in their efforts to generate new investments and jobs to the County. I am pleased to say that FDI levels in Kerry have improved significantly in recent years. There are 18 IDA client companies in County Kerry employing approximately 2,200 people. Since 2012, Kerry has witnessed a 34% increase in employment in overseas companies. The County has maintained a strong reputation as a successful home to firms from the Pharmaceutical and Business Services sectors. Companies like Central Pharma, Sigmar Recruitment and Astellas are all located there and continue to perform well.
In terms of recent investments, JRI America announced in May 2019 that it is to expand its technology centre in Tralee, which will create up to 100 new jobs. Central Pharma is also in the process of expanding in Tralee following its announcement in December 2018 that it will create 100 new positions by establishing a contract packaging and supply centre at the IDA’s Advanced Technology Building in Tralee.
These projects are significant investments for County Kerry which will create a substantial number of jobs. The IDA will continue to draw the attention of multinational firms looking to invest or expand in Kerry and the South-West region. The Agency also owns marketable lands in Tralee and Killarney and these sites are being actively marketed by the IDA through its network of offices in Ireland and overseas.
Notwithstanding these positive developments, I appreciate that these are still difficult times. BorgWarner’s decision to close its facility in Tralee is very disappointing. Since the closure announcement, IDA Ireland has fully engaged with the company both in Tralee and its Corporate Headquarters to explore options to market the facility and its skilled workforce and to highlight the range of supports available to impacted employees. As difficult as it may be to appreciate right now, we have reason to be confident that we will find new investment and new opportunities for the employees of BorgWarner and for Tralee.
COVID-19 and the introduction of travel restrictions has disrupted the typical way that IDA engages with investors. The IDA are working on alternative approaches and their new strategy, due shortly, will focus on how FDI can have greatest impact on our economic recovery. My Department is also focused on regional development and how we ensure FDI can grow in a sustainable and inclusive way. Strengthening FDI and indigenous enterprises will feature strongly in the forthcoming National Economic Plan.
42. Deputy Denis Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment the discussions his officials have had with IDA Ireland with regard to the development of data centres in line with the policy of locating them in areas with grid capacity and only in cases in which there is an employment dividend associated with their development; if an evaluation has been conducted by his Department of the estimated impact of all 55 current data centres and the over 30 planned data centres on the cost of electricity to other commercial and industrial users; and if he will make a statement on the matter. [34991/20]
View answerData centres are an increasingly important part of the digital and communications sectors and a core infrastructure for remote working.
Since the publication of the ‘Government Statement on the Role of Data Centres in Ireland’s Enterprise Policy’, in June 2018, IDA Ireland has been promoting regional options for data centre investments. It has identified sites throughout Ireland suitable for accommodating data centre projects. This site assessment includes proximity to energy and other infrastructures, subject to the planning and environmental oversight required. IDA Ireland only facilitates investment in projects that are deemed likely to deliver real economic benefits. It does not provide financial supports for data centres in the Dublin region. Officials in my Department liaise regularly with IDA Ireland in relation to enterprise policy, including data centres.
Data centres are energy intensive and I am aware that in the Dublin region there are constraints on the electricity grid capacity. While no research of the nature described by the Deputy has been conducted by my Department, Eirgrid has done analysis on future electricity grid requirements and the impacts of data centres in its 'Tomorrow's Energy Scenarios' process.
Like all electricity customers, data centres are required to contribute toward the costs of developing and maintaining the electricity grid as part of their electricity bills. Data centres, and all electricity customers, also contribute towards the Public Service Obligation (PSO) levy which is used to subsidise the increased generation of renewable electricity, such as solar and wind.
My Department has and will continue to engage with the Commission for Regulation of Utilities (CRU) to ensure that grid costs are recovered fairly from all electricity customers – including large energy users. The CRU is mandated to ensure that significant energy users are paying an equitable, cost-reflective and appropriate portion of the cost of required grid investments.
My officials have engaged with the Sustainable Energy Authority of Ireland in its research on policy options to promote Corporate Power Purchase Agreements which some data centre operators have already purchased in the Irish market. This ensures that they play their part in sustainably meeting the additional energy demand they bring to the system. I hope we can encourage more, in order to spread the cost of increasing our proportion of renewable electricity.
43. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he remains satisfied that the Covid-19 related supports provided are adequately addressing the negative aspects of Covid-19 on the economy and its ability to recover in the short to medium-term; and if he will make a statement on the matter. [35094/20]
View answerBudget 2021 provides a significant package of tax and fiscal measures to build the resilience of the economy and to help businesses across all sectors. It is unprecedented in terms of its scale at almost €90 billion. This is in addition to the July Stimulus, which was worth more than €5 billion, including €2 billion in loan guarantees for the new Credit Guarantee Scheme.
The new payment structure for the Pandemic Unemployment Payment includes an increase in the top rate to €350 for those who were earning in excess of €400 per week.
The Employment Wage Subsidy Scheme is also being aligned with the amendment to the Pandemic Unemployment Payment, with the top payment increasing to €350 for those earning over €400.
The Covid Restrictions Support Scheme, known as CRSS, is now operational through the Revenue Commissioners. It offers a targeted, timely and temporary financial aid to businesses forced to close or trade at significantly reduced levels due to COVID. This can be up to €5,000 per week.
My Department is providing a wide range of grants, loans and advisory services to affected businesses. This includes more and cheaper loan finance through MicroFinance Ireland, SBCI and the new €2bn Credit Guarantee Scheme.
We have also announced a six-month reduction in VAT rates, down from 23% to 21%, and a reduction in the 13.5% rate to 9%, together with a range of additional public capital investment measures to support the domestic economy.
Government will continue to work to address suitable enterprise measures in the context of the evolving COVID-19 and Brexit challenges to our economy and our people.
44. Deputy Bríd Smith asked the Tánaiste and Minister for Enterprise, Trade and Employment his engagement with the liquidators appointed to a company (details supplied); his plans to ensure the workers currently in dispute with the company will receive a just redundancy package; and if he will make a statement on the matter. [35083/20]
View answerI extend my sympathies to the workers in Debenhams who have lost their jobs. I fully appreciate how difficult the situation is for those involved and their families. Many have been striking for over 200 days.
It is disappointing that talks facilitated by the Workplace Relations Commission facilitated last week did not succeed in agreeing a way forward between the parties. I can only urge both sides to re-engage in a constructive manner with a view to finding a mutually acceptable resolution.
Recently, I, along with the Taoiseach, Tánaiste, and Minister Troy, have met at various times with Debenhams employees and their union, Mandate to hear their views and concerns about the liquidation of Debenhams Ireland. The Government is supportive of the best outcome that is possible for the workers, within the legal framework available. However negotiations, on enhanced redundancy are a voluntary matter between a company and its employees. In a liquidation scenario, this is a matter for liquidator and former employees, taking into account the statutory duty to realise and distribute the assets of an insolvent company in the order prescribed by law.
Debenhams is insolvent and the liquidation is proceeding under the supervision of the High Court. The Government cannot intervene with a liquidator, who has a statutory duty to realise assets and distribute to creditors in accordance with the law. Equally the Government has no statutory power to intervene in a court-supervised liquidation, that is subject to oversight of the High Court.
The State guarantees statutory employment rights to workers, including statutory redundancy.
45. Deputy Michael Moynihan asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to support the food processing industry post-Brexit; and if he will make a statement on the matter. [34985/20]
View answerI am fully aware of the significant exposure of our exporting Food & Drinks sector to Brexit. Enterprise Ireland is working intensively with companies in this sector to enable them respond to the challenges they may face when the UK leaves the EU Single Market and Customs Union from 1st January 2021. Since 2016, the effectiveness of these measures by Enterprise Ireland, and in cooperation with Bord Bia in the food and drink sector, has reduced overall indigenous exports to the UK from 35% to 31% in 2019, all the while increasing the overall value of these exports.
Brexit specific assistance will continue to be made available to impacted firms, alongside our focus on innovation and competitiveness. Enterprise Ireland is providing a range of grant and advisory assistance to firms in the food and drink sector, including through its Agile Innovation Fund, R&D Fund, Lean Transform Fund and Operational Excellence Schemes, to help enterprises to diversify their product offering and to reach new markets.
Budget 2021 includes €100 million for my Department to help businesses to adapt to Brexit. Specifically, Specifically €7 million will be provided as part of a targeted fund to help the food processing industry to adapt to the post-Brexit trading environment.
In addition, Ireland has secured approval for a €200m multi-annual scheme from the EU Commission for capital investment in the processing of agricultural products. The objective of this scheme is to strengthen and improve the resilience of primary food processing companies by focusing on long term transformative capital investment and achieving higher value added through implementing new product and/or market diversification strategies.
I am confident that, with the support of our Agencies, our food sector will remain resilient to meet the challenges of any future trading relationship between the EU and the UK.
46. Deputy Barry Cowen asked the Tánaiste and Minister for Enterprise, Trade and Employment if budget 2021 has provided further support for local enterprise offices; and if he will make a statement on the matter. [35041/20]
View answerThe Tanaiste and I are committed to ensuring that the 31 Local Enterprise Offices, as the first stop shop for local businesses, are sufficiently resourced to tackle the dual challenges of Brexit and COVID–19. In pursuit of that objective, additional capital funding of €11 million for the Local Enterprise Offices was announced in Budget 2021. This additional funding will provide for an expected increase in demand for financial assistance and tailored training programmes for small and micro enterprises impacted by both Brexit and COVID-19.
The Local Enterprise Offices are at the forefront in helping enterprises during the current crisis and delivering key initiatives such as the Business Continuity Vouchers, Trading Online Vouchers, the Micro-Enterprise Assistance Fund, and MicroFinance Ireland loans. They have also continued to deliver on their core business supports such as feasibility, priming and business expansion grants and ongoing mentoring and training modules which where moved to an online platform to accommodate COVID-19 Restrictions.
The additional resources in Budget 2021 will be used to advance programmes and initiatives in furtherance of key enterprise policy objectives of supporting green enterprise, digitisation and financial capability in small enterprises.
The Local Enterprise Offices will increase one to one engagement with clients to identify innovation and technology challenges delivering appropriate solutions. A core focus is to support owner manager capability and development. Developing the confidence and driving the ambition of local firms to scale and compete will continue to be a priority in the coming year.
47. Deputy Thomas Gould asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans he has to fulfil the commitment in the programme for Government of building County Cork as a viable alternative to Dublin and bringing more employment to the city. [35077/20]
View answerDelivering balanced regional growth through a coherent policy approach to the enterprise needs of every part of Ireland is a stated objective within the Programme for Government.
My Department’s Regional Enterprise Plans are focused on region-specific enterprise development challenges and opportunities and provide a mechanism for joined up responses at the regional level, involving the enterprise agencies, LEOs, local authorities, higher and further education bodies, private sector, and others.
The Regional Enterprise Plan for the South West which includes Co. Cork concludes its 2 year programme at the end of 2020. My intention is to refresh the strategic agenda in the South West and in the other regions over coming months, in consultation with regional stakeholders, including in County Cork.
My Department’s Regional Enterprise Development Fund administered by Enterprise Ireland, is aimed at enhancing the conditions for regional business growth. To date Cork and Kerry have secured over €18.2 million across fifteen projects. An additional €30m in regional funding is contained in Budget 2021.
Enterprise Ireland’s Strategy ‘Powering the Regions’ includes a focus on the South West. In 2019/20 EI companies such as EDPAC International, Poppulo, Cosmetic Creation, Global Shares and Workvivo announced the creation 485 new jobs in Cork.
The three Local Enterprise Offices (LEOs) in Co. Cork supported an additional 342 net new jobs in start-ups and micro companies in 2019.
The IDA is doing everything it can to encourage investors to locate in regional areas including the Cork region. Cork has been a strong performer in terms of FDI, with 184 IDA client companies, employing c. 40,671 people. Cork has seen an increase of almost 4% or 1,434 new jobs (net) in IDA client companies last year.
Working with colleagues across Government to deliver the National Planning Framework, my Department is committed to delivering balanced regional growth and to ensuring that Cork continues to enjoy a steady increase in employment. Balanced regional growth will also feature as part of the forthcoming National Economic Plan.
48. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will be bringing forward legislation to ensure workers have a right to disconnect from their work outside of office and work hours further to the publication of Guidance for Working Remotely by his Department. [34917/20]
View answerThe Covid-19 pandemic has highlighted the importance of electronic communications to the success of many businesses and organisations. The use of mobile technology has enabled many workers to remain connected and in employment, and those who can work from home have been encouraged to do so.
However, a long-acknowledged, potential downside to the use of mobile and other electronic communication devices is the expectation that workers are always ‘switched on’.
Ireland already has a comprehensive body of employment legislation, including the Organisation of Working Time Act 1997, which sets out maximum working time and minimum rest periods for employees. Apart from a few limited exceptions, the terms of the Act apply to all employees, regardless of whether they are based in an office or working remotely. The Act places an obligation on employers to ensure that their employees take regular rest breaks and do not work excessive hours. Under Section 25 of the Act an employer is required to keep records of the working time of their employees. These records are subject to inspection by the Workplace Relations Commission (WRC).
The Government wants remote working to become part of the new normal. If done right, the benefits will be huge, however it is vitally important that the existing rights and entitlements that employees enjoy are maintained and that an appropriate work-life balance is struck.
As a response to Covid-19, a new web page was launched on my Department's website dedicated to providing a central access point for all guidance for working remotely. It allows employers and employees to navigate the existing guidance and legislation relevant to remote working and provides information for people working from home.
The insights garnered from the recent public consultation on remote working will be used to enhance and further refine the current remote working guidance and the Remote Work Strategy, which will be published before the end of the year. The Remote Work Strategy will consider what legislation might be required. An Interdepartmental Strategy Group on Remote Working was convened by my Department in September 2020 and its work is progressing.
To complement the work of the new Interdepartmental Strategy Group, and in line with the Programme for Government commitment, I will be asking the WRC to consider what can be done through the development of a new Code of Practice or set of guidelines to ensure that both employers and employees are aware of their existing requirements and entitlements, and understand them, as they relate to a right to disconnect, including in a remote work scenario.
49. Deputy Michael Moynihan asked the Tánaiste and Minister for Enterprise, Trade and Employment the support he is providing for digital hubs; and if he will make a statement on the matter. [34986/20]
View answerMy Department has invested in the development of enterprise/co-working hubs in every region through the Regional Enterprise Development Fund and the recent Border Fund. Based on Enterprise Ireland’s analysis, approximately 3,200 co-working/enterprise spaces are being developed across 45 of the 117 projects supported under these Funds.
In August this year I announced a €12 million Enterprise Centre Fund, administered by Enterprise Ireland, to provide financial support to eligible centres who have been impacted by COVID-19.
There are a broad range of digital/enterprise/community hubs currently operating across the country, both publicly and privately funded, including social enterprises. The Western Development Commission has mapped over 100 remote working hubs within the Atlantic Economic Corridor (AEC) region alone.
The Deputy may also wish to note that €5 million has been allocated to the Department of Rural and Community Development in Budget 2021 to further develop a national network of remote working hubs and upgrading of existing facilities. An Interdepartmental Working Group has been established to progress this project, and includes my Department.
As part of the Digital Europe Programme (DEP), the European Commission and EU Member States will establish and fund a network of European Digital Innovation Hubs (EDIHs). In the recent Budget, €3 million was allocated to support Ireland’s participation in this network. These hubs will support digital transformation in SMEs and public sector organisations by encouraging the adoption of the latest advances in the three key DEP technologies of Cybersecurity, Artificial Intelligence and High-Performance Computing. EDIHs will serve as “one-stop-shops” with a research and technology organisation or university lab at the core, providing access to technical expertise and experimentation, as well as innovation services, and the training and skills development necessary for successful digital transformation.
My Department, in conjunction with Enterprise Ireland, intends to hold an expression of interest process for interested research performing organisations, with the intention that two such EDI hubs can be supported in Ireland.
Finally, my Department is expecting to finalise a Remote Working Strategy before the end of the year.
50. Deputy Éamon Ó Cuív asked the Tánaiste and Minister for Enterprise, Trade and Employment the preparations that have been made to protect Irish businesses in the case that there is no agreement on Brexit between the EU and the UK; and if he will make a statement on the matter. [34993/20]
View answerThe Government’s Brexit Readiness Action Plan sets out a broad range of changes that will occur from 31 December 2020, regardless of the outcome of ongoing EU-UK negotiations. It provides clear and concise advice on steps to be taken now by businesses and individuals in order to prepare for the end of the Transition Period. Enterprise measures in place include a €20 million ‘Ready for Customs’ support scheme (part of the Government’s €5 billion July Stimulus package). Enterprise Ireland's ‘Ready for Customs’ scheme is available to help businesses recruit and build staff expertise in customs declarations and provide for related investment in relevant ICT. This financial incentive of up to €9,000 will help businesses meet the challenge that will become very real on 1st January next.
Enterprise Ireland are running an on-line Customs Insights course and also a new Brexit Readiness Checker to produce a report assessing a company’s readiness for Brexit.
Skillnet Ireland offers a free online customs training programme, ‘Clear Customs’, to support the customs intermediary sector and businesses that moves goods frequently to, from, or through Great Britain.
The Local Enterprise Offices are running one-to-one Brexit mentoring and training “Prepare Your Business for Customs” workshops, and will continue to offer their grants to business responding to Brexit challenges including the Technical Assistance for Micro Exporters grant of €2,500 and LEAN for Micro grants to assist productivity improvements.
The €2 billion Credit Guarantee Scheme, launched recently, is the largest guarantee scheme that has ever been provided for Irish businesses to date to ensure there is financing available for Irish businesses as they reboot and rebuild both through Covid-19 and Brexit.
We have provided further funding to MFI to ensure it can meet the needs of microenterprises that can not avail of bank funding over the coming period.
We have expanded the SBCI Future Growth Loan Scheme up to €800m in lending.
Information is also available from the National Standards Authority of Ireland, the Health and Safety Authority, IDA Ireland, Revenue, Skillnet Ireland, the Strategic Banking Corporation of Ireland, Bord Bia and Fáilte Ireland and full details on the wide range of Brexit supports are available at:
https://dbei.gov.ie/en/What-We-Do/EU-Internal-Market/Brexit/Getting-Brexit-Ready/ .
51. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will provide grants and supports to the self-employed and sole traders that work as taxi drivers that continue to have work related overheads despite having little or no work; and if he will make a statement on the matter. [35170/20]
View answerAs part of Budget 2021, my colleague the Minister for the Environment, Climate and Communications, and Transport Eamon Ryan TD is introducing specific measures for taxi and hackney businesses. The Minister is providing funding to the National Transport Authority to enable it to waive annual vehicle licence renewal fees for 2021.
In addition, Minister Ryan is allocating €15 million to support up to 750 taxi and hackney drivers in scrapping older vehicles and replacing them with zero-emission capable electric alternatives. Up to €20,000 will be made available for eligible drivers switching to a new all-electric vehicle and up to €32,500 for those moving to a wheel chair accessible full electric vehicle.
Budget 2021 also provides a significant package of tax and expenditure measures to build the resilience of the economy and to help self-employed and vulnerable but viable businesses across all sectors. We are providing for an extension of the tax warehousing scheme to include repayments of Temporary Wage Subsidy Scheme funds owed by employers and preliminary tax obligations for the adversely affected self-employed.
So as to ensure that all self-employed taxpayers can benefit from the losses provision introduced in the July Stimulus, we are also providing that debt warehousing provisions be extended to include the 2019 balance and 2020 preliminary tax to allow such taxpayers to defer payment for a period of a year with no interest applying.
The Minister for Finance is also delivering on the Programme for Government commitment to equalise the Earned Income Credit with the PAYE credit by raising it by €150 to €1,650.
These measures are in addition to the July Stimulus €7bn package of enterprise measures, which includes the Wage Subsidy Scheme extended through 2021, the Pandemic Unemployment Payment, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst self-employed.
COVID-19 Business Loans up to €25,000 are available through Microfinance Ireland. The loans can range from €5,000 to €25,000.
My colleague, Heather Humphreys, TD, Minister for Social Protection, recently opened applications for the newly revamped Enterprise Support Grant of up to €1,000 for self-employed recipientsexiting the Pandemic Unemployment Payment, as they get back on their feet following COVID-19. This grant is aimed at sole traders such as plumbers, electricians, carpenters, taxi drivers and so on, who do not pay commercial rates.
52. Deputy Aodhán Ó Ríordáin asked the Tánaiste and Minister for Enterprise, Trade and Employment if research has been carried out or is planned on the comparative effects of different levels of lockdown has had on small businesses and microenterprises. [35098/20]
View answer87. Deputy Aodhán Ó Ríordáin asked the Tánaiste and Minister for Enterprise, Trade and Employment if his attention has been drawn to the fact that for many businesses level 3 restrictions are as financially detrimental as at level 5 restriction; his plans to protect small businesses and microenterprises in 2021 from the strategy of ongoing lifting and imposition of restrictions; and the research carried out or planned by his or another Department or agency on quantifying and segmenting the future risk to enterprises posed by continued intermittent restrictions in 2021. [35099/20]
View answerI propose to take Questions Nos. 52 and 87 together.
The COVID-19 pandemic has had an unparalleled impact on businesses across the economy although it is evident that the impacts have not been felt uniformly across all sectors or cohorts.
The PUP data which is released on a weekly basis can assist in analysing the impact of restrictions on employment and, by proxy, business. A review of changes in PUP claimants following movements between restriction levels indicates that the move from level 3 to higher levels is a significant inflection point in terms of employment changes. Less differential in the impacts on business is expected in moves between Level 5 and Level 4.
Three sectors, Accommodation and Food Services, Wholesale and Retail Trade and Administrative and Support Services, accounted for 54% of the almost 333,000 PUP claimants as of November 3rd. The impact of the move to level 5 is particularly high in the Accommodation and Food Services and Wholesale and Retail Trade sectors, with increases of 115% and 68% respectively.
Employment Wage Subsidy Scheme (EWSS) data also shows the high impact on the accommodation and food services and wholesale and retail sectors, with 30% and 11% respectively of the 341,000 employments supported by the scheme coming from those two sectors.
It is also evident that the pandemic has had a disproportionate impact on small business. Almost 95% of the 32,700 employers availing of the EWSS in September were small and micro enterprises. Small businesses and micro enterprises accounted for almost 57% of the €254m payments processed by Revenue for September. 67% have less than 10 employees and accounted for almost 20% of the subsidy paid.
A systemic approach to sustaining and growing the domestic SME sector, improving SME productivity, and building resilience in SMEs will be a key part of our forthcoming National Economic Plan delivered through an ambitious SME Growth Plan currently being developed by the SME Growth Taskforce that I chair.
53. Deputy Denis Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment the discussions his officials have had with IDA Ireland with regard to the development of data centres; and if he will make a statement on the matter. [34990/20]
View answerOfficials in my Department liaise regularly with IDA Ireland in relation to enterprise policy, including data centres.
Since the publication of the ‘Government Statement on the Role of Data Centres in Ireland’s Enterprise Policy’, in June 2018, IDA Ireland has been promoting regional options for data centre investments. It has identified sites throughout Ireland suitable for accommodating data centre projects. This site assessment includes proximity to energy and other infrastructures, subject to the planning and environmental oversight required. IDA Ireland only facilitates investment in projects that are deemed likely to deliver real economic benefits. It is important to note that IDA can not determine the eventual location of data centres.
Almost all data centre developments to date have been in the Dublin region and, as required under state-aid restrictions, have received no financial support from IDA. However, other factors make Ireland an attractive location for this type of investment, including a stable energy grid, temperate climate and our available skills.
Data centres are an important part of the modern global economy and support the growing digital and data-based characteristics of many businesses, including manufacturing, global business services, retail and financial services. Data centres are a key infrastructure component of the country’s FDI technology sector, a sector that currently employs over 100,000 people in high quality jobs. Companies in this Sector are world leading and regard data centres as foundational to their growth and development.
54. Deputy James Lawless asked the Tánaiste and Minister for Enterprise, Trade and Employment the engagement he has had with pharmaceutical and healthcare companies in the context of Covid-19; and if he will make a statement on the matter. [35052/20]
View answerIt is well known that Ireland is internationally recognised as a centre of excellence in the pharmaceutical sector and in the broader life sciences sector.
In recognition of critical work of those Irish-based companies, in early October I convened a series of short meetings with several of IDA Ireland’s biopharmaceutical client companies to hear about the crucial role they are playing in the public health response to the COVID-19 pandemic and particularly on the work being done in Ireland to assist in the global efforts to combat COVID-19.
I was encouraged to hear those companies explain how important their Irish operations are in global efforts to develop COVID-19 treatments and vaccines. As I’ve expressed previously, it was made very clear to me during the course of those meetings, that our highly-qualified and talented workforce is a key factor in those company’s decisions to locate in Ireland and in their ongoing success once operational here.
Prior to that, in September I met with several of the leading pharmaceutical companies at a broader event focused on foreign direct investment and I have also recently visited the Pfizer campus in Grange Castle.
I am very happy to continue engaging with pharmaceutical and life science companies so that I can reinforce our strong and ongoing commitment to this critical sector. I am very conscious of the importance of supporting innovative companies that are taking the lead in developing the new products and processes that will further develop the industry here in Ireland, and help us, in the longer term, in the fight against COVID-19.
This is further underpinned by the introduction of the COVID Life Sciences Scheme. The scheme allows for up to €200m in targeted State support to aid the research, development and production of medicinal products in Ireland that are used in the fight against COVID-19. Grant aid under the scheme is available to eligible companies and projects through IDA Ireland and Enterprise Ireland.
55. Deputy Johnny Guirke asked the Tánaiste and Minister for Enterprise, Trade and Employment if investment in County Meath through IDA sponsored enterprises will be increased ensuring more IDA backed investor visits to the county; and if he will make a statement on the matter. [34984/20]
View answer76. Deputy Johnny Guirke asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of IDA visits to counties Meath and Westmeath, respectively over the past five years; and if he will make a statement on the matter. [35064/20]
View answerI propose to take Questions Nos. 55 and 76 together.
Counties Meath and Westmeath continue to be strong performers in terms of attracting foreign direct investment (FDI). From 2015 to 2019, the number of IDA client companies based in County Meath increased from 16 to 19 with over 350 net new jobs added during this period.
In County Westmeath, the number of multinational firms increased from 18 companies in 2015, to 22 companies at the end of last year. IDA client companies in County Westmeath also reported a net increase of over 960 net new jobs from 2015 to 2019. There have also been a number of high-profile investments from FDI firms during this period including Neueda Technologies, Teleflex Medical and Aerie Pharmaceuticals.
County Meath is part of the Mid-East region which hosts a number of investments of significant scale in the Technology and Pharmaceutical sectors. Meath specifically is home to successful companies such as PCI Pharma Services and MSD, who recently announced it has acquired the Takeda biologics facility in Dunboyne, Co. Meath.
Westmeath is part of the Midlands region and has been successful over several years in mobilising inward FDI, with employment levels in IDA client companies increasing every year since 2012. The Midlands offers an attractive cluster of LifeSciences and Global Business Services companies, excellent connectivity to major cities and Dublin airport and world class collaboration between academia and industry.
From 2015 to 2019 Meath has hosted 28 site visits. There have been a further 2 in-person site visits to Meath as of the second quarter of this year. From 2015 to 2019 Westmeath has hosted 150 site visits. A further five in-person visits and three E-visits have taken place as of the second quarter of this year.
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 counties Meath and the Westmeath. As an alternative to site visits, the IDA has migrated many of its business development and client engagement activities to digital platforms. The Agency has developed new digital content and has also put in place an E-Site Visit experience for potential investors.
Notwithstanding the difficulties presented by the pandemic, site visits do remain an important means by which the IDA can showcase regional locations – including Meath and Westmeath– 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 – 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 recently, reflect the resilience of the FDI base here and I will be doing everything I can to support its further growth and development, across Ireland.
The table below sets out the total number of in-person and E-site visits to Counties Meath and Westmeath from 2015 to the second quarter of 2020.
|
2015 |
2016 |
2017 |
2018 |
2019 |
Q1-Q2 2020 In-person visits |
Q1-Q2 2020 E-visits |
|
35 |
44 |
45 |
28 |
26 |
7 |
3 |
56. Deputy Peadar Tóibín asked the Tánaiste and Minister for Enterprise, Trade and Employment the details of each of the funding supports available to small and medium businesses and enterprises; and the amount each fund has drawn down to date. [34716/20]
View answerDetails of the enterprise measure approvals made as part of the COVID -19 and Brexit supports available are updated weekly on my Department’s website at https://dbei.gov.ie/en/Publications/Take-up-of-COVID-19-and-Brexit-Business-Supports.html
Budget 2021 provides a significant package of tax and expenditure measures to build the resilience of the economy and to help vulnerable but viable businesses across all sectors. The measures in the Budget are in addition to those announced in the July Stimulus, including the Employment Wage Subsidy Scheme, cash for businesses, low cost loans, commercial rates waivers and deferred tax liabilities. Details of the wide range of COVID-19 schemes are available on my Department’s website.
As a result of the fact that businesses have to close, we are making changes to the Pandemic Unemployment Payment and the EWSS. The new payment structure for the PUP includes the increase in the top rate to €350 for those who were earning in excess of €400 per week. This change to payment rates will apply in respect of all existing and new applicants. The EWSS is also being amended to align with the amendment to PUP, with the top payment increasing to €350 for those earning over €400.
A new COVID Restrictions Support Scheme, became operational from 13th October through Revenue and offers a targeted, timely and temporary sector-specific support to businesses forced to close or trade at significantly reduced levels due to COVID of up to €5,000 per week.
We are providing more and cheaper loan finance through MicroFinance Ireland, SBCI and the new €2bn Credit Guarantee Scheme.
We have also announced a six-month reduction in the VAT, going down from 23% to 21%, a reduction in the 13.5% VAT rate to 9%.
I am keenly aware that businesses are making a massive sacrifice to protect their communities and I am working with my colleagues across Government to assist businesses impacted by COVID-19 with the goal of of supporting the lives and livelihoods of our people.
57. Deputy Violet-Anne Wynne asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans for creating jobs in County Clare in view of the recent job losses in the county due to plants such as a company (details supplied) closing and recent redundancies in some State bodies particularly in the west of the county; and if he will make a statement on the matter. [35179/20]
View answerI am acutely aware of the loss and uncertainty that is felt by individuals, their families, and whole communities associated with business closure, downsizing and job losses.
In the case of Roche, the remaining 125 employees departed the site in Clarecastle in March 2020. The company provided significant assistance to employees in respect to sourcing alternative employment and many have gained employment in the Life Sciences sector locally. IDA is actively marketing the site through its extensive overseas network to both existing and new investors.
Delivering balanced regional growth through a coherent policy approach to the enterprise needs of every part of Ireland is a stated objective within the Programme for Government and will feature in the forthcoming National Economic Plan.
My Department’s Regional Enterprise Plans are focused on region-specific enterprise development challenges and opportunities and provide a mechanism for joined up actions at the regional level, involving the enterprise agencies, LEOs, local authorities, higher and further education bodies, private sector, and others.
The Regional Enterprise Plan for the Mid West which includes Co. Clare, concludes its 2 year programme at the end of 2020. My intention is to refresh the strategic agenda in the Mid West and in the other regions over coming months, in consultation with regional stakeholders, including in County Clare.
My Department’s Regional Enterprise Development Fund administered by Enterprise Ireland, is aimed at enhancing the conditions for regional business growth. To date the Mid West which includes Clare has secured over €14.4 million across eight projects. An additional €30m in regional funding is contained in Budget 2021.
Enterprise Ireland’s Strategy ‘Powering the Regions’ includes a focus on the Mid West. In 2019 there were 179 net new jobs created in EI companies in Clare.
The Local Enterprise Office (LEOs) in Co. Clare supported an additional 120 net new jobs in start-ups and micro companies in 2019.
The IDA is doing everything it can to encourage investors to locate in regional areas including Co. Clare and the wider Mid-West region. Co. Clare currently hosts 67 IDA client companies, employing c. 7,146 people and saw an increase of almost 3% or 222 new jobs (net) in IDA client companies last year.
58. Deputy Catherine Connolly asked the Tánaiste and Minister for Enterprise, Trade and Employment the status of the national SME growth plan; and if he will make a statement on the matter. [35116/20]
View answerThe Programme for Government – Our Shared Future identifies a number of groups which will be led by Government in shaping the engagement of enterprise and SMEs in the formulation of the policy responses at the different stages of the recovery.
The groups envisaged by the Programme for Government include an SME Growth Taskforce, to design a National SME Growth Plan that will map out an ambitious long-term strategic blueprint beyond COVID-19 and Brexit. I appointed the members of this Taskforce in September, which includes over 20 entrepreneurs and business leaders contributing expertise from a broad range of sectors.
The Taskforce is served by four focused sub-groups with the capacity and expertise to develop specific actions in thematic areas, drawing from the recent OECD Review of SME and Entrepreneurship Policy in Ireland. These sub-groups are focused on Entrepreneurship; Productivity, Digitalisation and Competitiveness; Internationalisation; and Clustering and Networks.
The proposals being developed will include measures to help SMEs to start up, scale up and access foreign markets, as well as recommendations aimed at helping SMEs to become more productive and ready for the transition to a digital, green economy. They will also focus on creating and growing local business networks and clusters, which are an important driver of regional development.
I will chair the third meeting of the SME Growth Taskforce on Wednesday 11 November, when an advanced draft of the SME Growth Plan will be presented to the Taskforce for its consideration. Once finalised, I will bring the SME Growth Plan to Government for approval, with a view to its publication later this year.
59. Deputy Catherine Connolly asked the Tánaiste and Minister for Enterprise, Trade and Employment the details of his plans for the resolution of an industrial dispute (details supplied) in view of the recent breakdown in talks at the Workplace Relations Commission; and if he will make a statement on the matter. [35114/20]
View answer75. Deputy John Lahart asked the Tánaiste and Minister for Enterprise, Trade and Employment the further engagement his Department has had with the workers of a company (details supplied); and if he will make a statement on the matter. [35042/20]
View answer88. Deputy Thomas Gould asked the Tánaiste and Minister for Enterprise, Trade and Employment if his attention has been drawn to the deal offered in relation to a company (details supplied); and if he will intervene given this clear indication that the liquidator is unwilling to enter negotiations in good faith. [35076/20]
View answer92. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will engage with the liquidators of a company (details supplied) to encourage them to negotiate a mutually agreed settlement with the workers given the recent failure of the liquidator to engage in a commensurate reciprocal approach with the workers and their trade union. [34916/20]
View answerI propose to take Questions Nos. 59, 75, 88 and 92 together.
I extend my sympathies to the workers in Debenhams who have lost their jobs. I fully appreciate how difficult the situation is for those involved and their families. Many have been striking for over 200 days.
Recently I, along with the Taoiseach and Ministers Troy and English have met with Debenhams employees and their union, Mandate to hear their views and concerns about the liquidation of Debenhams Ireland.
The Government is supportive of the best outcome that is possible for the workers, within the legal framework available.
Debenhams is insolvent and the liquidation is proceeding under the supervision of the High Court. The Government cannot intervene with a liquidator, who has a statutory duty to realise assets and distribute to creditors in accordance with the law. Equally the Government has no statutory power to intervene in a court-supervised liquidation, that is subject to oversight of the High Court.
It is disappointing that the Workplace Relations Commission (WRC) facilitated talks last week did not succeed in agreeing a way forward between the parties. I would urge both sides to re-engage in a constructive manner with a view to finding a mutually acceptable resolution.
The State guarantees statutory employment rights to workers, including statutory redundancy.
60. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment if his attention has been drawn to the industrial relations dispute between assisted driving instructors and the Road Safety Authority over the failure to allow the use of toilet and waiting facilities when learner drivers are undertaking their driving test; and if he will engage with the trade union (details supplied) of the instructors in order to find a resolution to this industrial relations matter. [34918/20]
View answerI am aware that a number of Driving instructors recently took part in protests in Dublin and Sligo as a result of the impact of Covid-19 on instructors which restricts access to Road Safety Authority centres while students sit driving tests.
While I understand the inconvenience this causes for individuals, I must emphasise that Ireland’s system of industrial relations is essentially voluntary in nature and that responsibility for the resolution of industrial disputes between employers and workers rests in the first instance with the employer, the workers and their representatives. I would like to reiterate that the WRC is available to any interested parties who may require it. As part of its functions the WRC provides information relating to employment entitlements and obligations, equality and industrial relations matters by means of their telephone service. This service is manned by experienced Information Officers.
Any discussions entered into voluntarily by the workers and employers with one of the State’s industrial relations bodies, the WRC or the Labour Court, are confidential to the parties and I, as Minister, have no role in, or knowledge of, these discussions.
I encourage all sides to make every effort to reach a pragmatic resolution by agreement between companies and workers with the help of the industrial relations machinery of the State.
