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Wednesday, 15 Sep 2021

Written Answers Nos. 126-138

Enterprise Policy

Questions (126)

Brendan Smith

Question:

126. Deputy Brendan Smith asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will report on the North-East Regional Enterprise Plan. [43733/21]

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Written answers

Regional enterprise development and sustainable local job creation is a key policy priority for me and this Government.

My Department is currently overseeing the development of nine new Regional Enterprise Plans to 2024.

These are ‘bottom-up’ plans, developed by regional stakeholders which will identify growth opportunities, recognise vulnerabilities, and enable job creation across the regions including in the North-East region through collaborative regional actions.

The new North-East Plan to 2024 which covers Cavan, Louth and Monaghan will build on the core activities of the IDA, Enterprise Ireland and the LEOs and the wider range of State Bodies involved in supporting enterprise development in the region.

I have the pleasure of driving the delivery of the new Plan in the North-East and I have engaged directly with the North-East Regional Steering Committee made up of regional stakeholders and chaired by Richard Hanlon, Aon Cyber Solutions, throughout 2021.

The regional stakeholders in the North-East region are currently working to finalise focused Strategic Objectives for their region, and actions to deliver on these objectives and intend to sign off on the new North-East Plan in the coming weeks.

Once this has been done it is my Department's intention to publish all these new Plans including for the North-East region, in quarter 4 this year.

Finally, my Department through Enterprise Ireland has made available €0.5 million in Feasibility Funding with grants of up to €50,000 on a 50% match fund basis through the Regional Enterprise Transition Scheme which can be leveraged to develop nascent initiatives emerging from the Regional Enterprise Plans. A closing date of October 1st 2021 applies to this funding.

Question No. 127 answered with Question No. 119.

Brexit Issues

Questions (128)

Matt Carthy

Question:

128. Deputy Matt Carthy asked the Tánaiste and Minister for Enterprise, Trade and Employment the interactions he has had with his EU counterparts regarding the extension of Brexit grace periods. [43526/21]

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Written answers

As the deputy will be aware, the Protocol on Ireland and Northern Ireland forms an integral part of the Withdrawal Agreement, an international agreement jointly signed by the EU and the UK Government. The Protocol is the joint EU-UK solution to mitigate against the disruption Brexit causes for citizens and businesses on the island of Ireland. As such, negotiations in relation to aspects of the implementation of the Protocol, including the extension of grace periods, are a matter for the EU and the UK Government.

EU-UK relations, including the Protocol on Ireland/Northern Ireland, are a regular feature of the Government and individual Ministers engagement with colleagues from other EU Member States.

Our approach, shared by our EU colleagues, continues to be informed by engagements with people and businesses across Northern Ireland, taking on board their genuine concerns, as we seek realistic and pragmatic solutions. We continue to advocate for a calm, responsible, joint EU-UK approach to the implementation of the Protocol.

The various grace periods were only ever intended as temporary, stop-gap measures to facilitate the implementation of the Protocol. They are not permanent solutions. We continue to encourage the UK to work in partnership with the EU in a spirit of positive and constructive engagement in order to identify pragmatic and sustainable solutions to the outstanding issues around the implementation of the Protocol.

Question No. 129 answered with Question No. 60.

Covid-19 Pandemic Supports

Questions (130)

Kieran O'Donnell

Question:

130. Deputy Kieran O'Donnell asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of companies by county that have availed of the Covid-19 credit guarantee scheme since its introduction; the closing date for this scheme; his plans to introduce further schemes to support businesses in the budget; and if he will make a statement on the matter. [43812/21]

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Written answers

It is just over one year since the Covid-19 Credit Guarantee Scheme was launched. During this time the scheme has provided vital access to finance to six thousand, five hundred and ninety-two SME businesses in all parts of the country. The scheme has provided loans of over €431 million, to these businesses, many of which are those sectors most impacted by the pandemic such as the wholesale and retail sector, accommodation and food services, and construction. These three sectors alone, account for forty-seven percent of the value of loans drawn.

The scheme is currently available through a range of lenders with three commercial banks, six non-bank lenders and nineteen credit unions offering products under the scheme. This provides competition in the market and ensures a wide range of loan products are available throughout the regions.

The number of loans drawn on a county basis and value of loans is provided in the table below.

County

Number

Value

Carlow

92

€ 4,684,348

Cavan

70

€ 3,309,221

Clare

208

€ 10,712,102

Cork

805

€ 52,467,034

Donegal

363

€ 20,324,918

Dublin

1423

€ 120,688,220

Galway

549

€ 32,615,610

Kerry

217

€ 11,406,754

Kildare

253

€ 17,700,609

Kilkenny

133

€ 7,492,971

Laois

108

€ 5,170,376

Leitrim

46

€ 2,732,497

Limerick

286

€ 16,806,245

Longford

41

€ 1,678,551

Louth

139

€ 10,367,743

Mayo

340

€ 19,652,248

Meath

295

€ 18,839,515

Monaghan

69

€ 4,298,542

Offaly

98

€ 5,186,010

Roscommon

86

€ 4,400,829

Sligo

103

€ 5,217,666

Tipperary

299

€ 15,347,781

Waterford

139

€ 9,826,431

Westmeath

61

€ 4,602,938

Wexford

139

€ 12,223,672

Wicklow

230

€ 13,429,532

Total

6592

€ 431,182,363

In order to provide the public with relevant data on the performance of the scheme, my Department publishes weekly and monthly reports on its website. These reports provide data on loans drawn under a wide variety of themes and are available at enterprise.gov.ie/en/Publications/COVID-19-Credit-Guarantee-Scheme-Performance-Reports.html

The scheme was developed under the terms of the European Commission’s Temporary Framework on State Aid and is available until 31 December 2021 in line with the Temporary Framework.

I will shortly be announcing the launch of the Brexit Impact Loan Scheme which will make up to €330m in lending available to SMEs and small mid-caps impacted by the UK’s withdrawal from the EU. This scheme is a successor to the Brexit Loan Scheme, which will close to new applications as the new scheme opens. Loans under this scheme will range from €25,000 to €1.5m, and will be for longer terms than under its predecessor: up to six years. These loans will be offered at lower interest rates than other similar lending in the market, and loans of up to €500,000 will be made available unsecured.

I would strongly encourage businesses to avail of the low-cost lending facilities provided under these schemes.

Cybersecurity Policy

Questions (131)

Niamh Smyth

Question:

131. Deputy Niamh Smyth asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to upgrade the IT systems of his Department and bodies under his remit with a view to maximise the protection against cyber criminals. [43845/21]

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Written answers

My Department adopts a defence in depth approach to cyber security. This approach uses multiple layers and disparate systems to deliver security which is not dependent on any single component. Given the heightened level of risk which has pertained in recent months, my Department’s technical staff has adopted a posture of increased vigilance and oversight of systems.

My Department takes advice from its own external security advisers, and monitors advice and guidance coming from the National Cyber Security Centre (NCSC) on any additional steps which should be implemented in the light of current risks. State agencies under the remit of my Department also have access to advice and guidance from the NCSC and evaluate this advice in the context of their own cyber security arrangements.

On foot of increased threat levels from cyber criminals and the advice from the NCSC, my Department has implemented a number of additional controls, and has also reviewed existing controls to ensure that they are still being applied consistently.

An independent review of my Department’s cyber security controls was carried out in 2019. The review was based on the ISO 27001 standard for good practice in an information security management system. Overall, the review found that the Department’s security posture was rated as good and above the standard which is usually seen in its sector. The review has also been used as the basis for an ongoing programme of further improvements to information security standards. Given the current threat levels and the significant resources which cyber criminals are prepared to use to hack into systems, it is important that we are not complacent in our approach to cyber security. Cyber security is an ongoing process in my Department, and we will continue to review the controls we have in place and implement new controls and protections where necessary and as new cyber defence technologies become available.

For operational and security reasons, we are advised by the NCSC not to disclose details of systems and processes which could in any way compromise cyber security measures in place in public bodies. In particular, it is not considered appropriate to disclose information which might assist criminals to identify potential vulnerabilities in departmental cybersecurity arrangements.

Therefore, it is not considered appropriate to disclose particular arrangements in place in relation to cyber security tools and services, and my Department does not comment on operational security matters.

Job Losses

Questions (132)

Aodhán Ó Ríordáin

Question:

132. Deputy Aodhán Ó Ríordáin asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of collective redundancies on a monthly basis have been notified to his Department in July and August and to date in September 2021; and if he will make a statement on the matter. [43751/21]

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Written answers

The Department of Enterprise, Trade & Employment is responsible for ensuring that the legislative requirements for consultation and notification of potential redundancies to the Minister are complied with.

The notifications do not reflect the total number of actual redundancies that take place across the workforce, since not all notified redundancies result in actual redundancies, as employers sometimes successfully negotiate with their workforce to restructure the business and find alternative solutions during the 30-day consultation period.

Employers are obliged to notify collective redundancies where, during any period of 30 consecutive days, the employees being made redundant reach or exceed the following thresholds:

- 5 employees where 21-49 are employed,

- 10 employees where 50-99 are employed,

- 10% of the employees where 100-299 are employed,

- 30 employees where 300 or more are employed.

Other redundancies outside of these parameters are not required to be notified to the Minister.

- In July, four notifications were received for 1,661 potential redundancies,

- In August, two notifications for 130 potential redundancies were received, and

- at 9th September, there was one notification regarding 59 potential redundancies.

These are provisional figures from a small number of companies, which now need to be discussed and agreed between employers, workers and their unions. The Government's plan to rebuild the economy will help get people back to work and create new long-term high quality future jobs.

The Employment Wage Subsidy Scheme stays in place at least until the end of the year. Government backed low cost loans are available. There is a new simplified restructuring procedure for SMEs. We will continue to safeguard as many businesses and jobs as possible during the recovery.

Dublin Airport Authority

Questions (133)

Darren O'Rourke

Question:

133. Deputy Darren O'Rourke asked the Tánaiste and Minister for Enterprise, Trade and Employment if he has had any involvement in the ongoing industrial dispute at the Dublin Airport Authority; and if he will make a statement on the matter. [43843/21]

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Written answers

At the outset, I must emphasise that Ireland’s system of industrial relations is, essentially, voluntary in nature and responsibility for the resolution of industrial disputes between employers and workers, rests with the employer, the workers and their representatives.

For its part, the State provides the industrial relations dispute settlement mechanisms i.e. the Workplace Relations Commission and the Labour Court, to support parties in their efforts to resolve their differences.

These bodies are independent in the delivery of their quasi-judicial functions, in which I as Minister have no role. This approach has served Ireland well over the years and in a large number of high-profile disputes. It would be inappropriate for me to intervene or engage in industrial relations disputes including the dispute mentioned by the Deputy in this question.

I would like to emphasise the need for workers and employers to make every effort to reach a resolution. The dispute handling mechanisms of the State are of course willing, where possible, to assist the parties in coming to a resolution. This will ensure a positive outcome for the employees, the company and the customers of the company

Enterprise Policy

Questions (134)

Christopher O'Sullivan

Question:

134. Deputy Christopher O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will put in place measures to solve the current staffing crisis in the hospitality industry; and if he will make a statement on the matter. [43827/21]

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Written answers

Policy responsibility for the Hospitality Sector is matter for my colleague, the Minister for Tourism, Culture, Arts, Gaeltacht, Sports and Media. The Tourism and Hospitality Careers Oversight Group, under the auspices of Fáilte Ireland, was established in 2019 to coordinate relevant bodies to agree and implement a work programme addressing labour supply and skills requirements in the tourism and hospitality sector.

The State operates a managed employment permits system maximising the benefits of economic migration and minimising the risk of disrupting Ireland’s labour market. The system is intended to act as a conduit for key skills which are required to develop enterprise in the State for the benefit of our economy, while simultaneously protecting the balance of the labour market.

The system is managed through the operation of the Critical Skills and Ineligible Occupations Lists which determine employments that are either in high demand or are ineligible for an employment permit where there is a surplus of those skills in the domestic and EEA labour market.

In order to maintain the relevance of these lists of occupations to the needs of the economy and to ensure the employment permits system is aligned with current labour market intelligence, these lists undergo twice-yearly evidence-based reviews which are guided by research undertaken by the Expert Group on Future Skills Needs (EGFSN), the Skills and the Labour Market Research Unit (SLMRU), SOLAS and involves public/stakeholder consultation. Account is taken of education outputs, sectoral upskilling and training initiatives and known contextual factors such as Brexit and, in the current context, COVID-19 and their impact on the labour market. Consideration is also taken of the views of the Economic Migration Interdepartmental Group, chaired by the Department and of the relevant policy Departments.

A review is currently underway with submissions received, including submissions from the Hospitality sector, under consideration. It is expected that the review will be finalised by the end of September/early October.

Insurance Industry

Questions (135)

Brendan Griffin

Question:

135. Deputy Brendan Griffin asked the Tánaiste and Minister for Enterprise, Trade and Employment the efforts he is making to reduce insurance costs in Ireland; and if he will make a statement on the matter. [43788/21]

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Written answers

Government wants a competitive, stable and consumer-friendly insurance environment. To deliver on insurance reform Government established a Cabinet Committee Subgroup on insurance reform which the Tánaiste chairs. The subgroup published the Action Plan for Insurance Reform in December 2020 which sets out actions across Government that will be taken to reform the insurance market. This is one of the most important programmes of reform that this Government will undertake. Implementation of the Plan is on track with the first six-monthly Implementation Report published in July 2021, showing that work is progressing well to implement the Action Plan, with 34 of the 66 actions completed.

Among the actions completed are the introduction of the Personal Injuries Guidelines which came into effect on the 24th April. These Guidelines apply to all cases assessed by PIAB from that date. Preliminary PIAB data indicates that since the implementation of the Guidelines, the average PIAB award has decreased by approximately 50%. Furthermore, about 80% of PIAB awards are now €15,000 or less, compared to 30% in 2020. The new Guidelines clearly represent a significant shift in the manner in which general damages are awarded in our country and in the level of those damages and should exert downward pressure on insurance costs.

The Criminal Justice (Perjury and Related Offences) Act 2021 was signed into law in June 2021 and commenced on 28 July 2021. The legislation provides a clear definition of perjury and should enable the offence and related offences to be more easily prosecuted in the courts. The establishment of the Insurance Fraud Coordination Office under the Garda National Economic Crime Bureau is also a welcome development. Both will act as effective deterrents to assist in tackling fraudulent claims.

An Office to Promote Competition in the Insurance Market has been established within the Department of Finance, chaired by Minister of State Fleming and supported by my Department. The work of the Office includes engaging with sectoral stakeholders to understand gaps in the insurance market, with a view to expanding the risk appetite of existing insurers. It is also involved in exploring opportunities for new entrants in order to increase the availability of insurance. This Office provides a coordinated Government policy approach to increasing competition in the insurance sector.

As, Minister of State for Trade Promotion, Digital and Company Regulation, I have met regularly with PIAB and a range of representative bodies to assess the role of PIAB and develop proposals to enhance and reform the agency. Heads of a Bill have been developed in consultation with PIAB, which I am considering. I am also progressing legislation to strengthen competition law in Ireland. The legislation will break new ground in this area, giving competition authorities, such as the Competition and Consumer Protection Commission (CCPC), enhanced powers including administrative sanctions and other tools in dealing with anti-competitive practices.

The scope of the National Claims Information Database has been widened to cover Employer Liability and Public Liability with a first report published by the Central Bank in July.

While progress on these actions is welcome, Government is committed to doing more to reduce insurance costs. The Minister for Justice is considering legislative proposals to reform the law in the area of occupier’s liability. Under the Action Plan, the Department of Justice is working on several actions in the area of fraud. We will also enhance the National Claims Information Database. Ministers and I have met regularly with stakeholders to understand the issues they face and to inform our policy making process. This engagement will continue as we deliver meaningful reform of the insurance sector.

Enterprise Policy

Questions (136)

David Stanton

Question:

136. Deputy David Stanton asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress being made by his Department in providing supports to businesses under the Sustaining Enterprise and Accelerated Recovery Fund; and if he will make a statement on the matter. [43382/21]

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Written answers

The Covid-19 outbreak resulted in a serious downturn in the Irish, EU and wider global economy. In response to this, Government introduced measures to assist impacted business. With the assistance of these measures, in 2020, a large number of Covid-19 impacted companies were sustained.

Now, as we cautiously emerge from these necessary public health restrictions and global markets begin to open up again, the Government will continue to help businesses in their next phase of recovery and adaptation.

In August 2021, I announced the launch of €51 million in funding, under the new Sustaining Enterprise and Accelerated Recovery Fund. This fund has two objectives, the first is to sustain enterprise through the provision of liquidity measures thereby assisting companies whose end markets continue to be impacted by Covid-19 restrictions. This offer is an extension of the Sustaining Enterprise Fund or SEF which was administered by our Agency, Enterprise Ireland (EI), on behalf of Government in 2020 and during the first half of 2021 and reflects the recovery needs of business as public health restrictions are lifted and business reopens. Under the SEF, €188 million was approved to 700 companies helping maintain over 28,850 jobs.

The second objective of the fund is to assist companies to make an Accelerated Recovery plan which embraces both digital and climate change transformation which is in line with Government policy and essential for the economic activity of companies after the impact of Covid -19. This is further aided by a Digitalisation Voucher to assist the development of a digitalisation plan.

My Department, working with Enterprise Ireland, is currently promoting this new offer and is working with companies on funding applications. As this offer has only been live for one month, the application pipeline is just commencing. To date, there have been seven approvals totaling €129,000 made to companies under this Fund. Six approvals are for Digitalisation Vouchers while one approval is for the Sustaining Enterprise Fund.

Work Permits

Questions (137)

Bernard Durkan

Question:

137. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he can facilitate the increased number of requests for work permit-related visas having particular regard to the acute shortages of staff in the various sectors; if an urgent evaluation can be undertaken of the waiting times involved; and if he will make a statement on the matter. [43620/21]

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Written answers

The State's employment permit system is designed to supplement Ireland's skills and labour supply over the short to medium term by allowing enterprises to recruit nationals from outside the EEA, where such skills or expertise cannot be sourced from within the EEA at that time. The system is, by design, vacancy led and managed through the operation of the critical skills and ineligible occupation lists. These lists are subject to twice yearly evidence-based review, taking account of labour market research, a public consultation and contextual issues such as Brexit and Covid 19.

Since March 2020, my Department has implemented Covid-19 contingency arrangements moving employment permit operations seamlessly to a totally remote working environment. Feedback received from enterprise across the board has been universally positive. In fact, Ireland was one of the few countries that has managed to keep their employment permit system fully operational throughout the crisis.

From the outset of the crisis, in order to assist the HSE and all other medical providers in the State to respond to, and to assist with, the public health response to the threat of Covid-19, all medical employment permits are expedited with immediate effect.

My Department has seen a significant increase in applications for employment permits this year. To the end of August, some 14,624 applications were received, representing a 35% increase over the same period in 2020 (10,772) and a 19% increase on 2019 (12,276). Some 9,526 employment permits were issued over this period.

Processing times have been impacted by this increase in demand but also because of the HSE cyber-attack. As a result, employment permit applications associated with the July Doctors rotation (which occurs twice yearly in January and July) had to be submitted either manually or through other nonstandard methods. This resulted in a significant additional administrative burden in dealing with these applications, requiring staff to be temporarily reassigned to assist in the process and had a direct impact on wider processing times for other permit applications.

It is important to point out that when set against other international employment permit regimes, Ireland continues to compare extremely favourably, even at current processing times. However, my Department is very conscious of the recent lengthening of timeframes for processing Employment Permit applications and is committed to reducing these further.

My Department is taking a range of measures to reduce the current backlog as quickly as possible and is confident that they will bear fruit over the coming weeks and months. It advises employers to take current timelines into account as part of their recruitment plans.

My Department updates the employment permit processing timelines on its website on a weekly basis and regularly issues updates on relevant employment permit matters to Trusted Partners such as the update on employment permit processing timelines.

National Minimum Wage

Questions (138)

Violet-Anne Wynne

Question:

138. Deputy Violet-Anne Wynne asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will address the fact that 116 workers employed by Shannon Group are currently working below the minimum wage; and if he will make a statement on the matter. [44156/21]

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Written answers

Except for the employment of close relatives and registered industrial apprentices, the National Minimum Wage Act 2000 applies to all individuals engaged under a contract of employment. Failure to pay the national minimum hourly rate of pay is a criminal offence, punishable upon summary conviction, by a fine not exceeding €2,500 or imprisonment not exceeding 6 months or both.

The Workplace Relations Commission (WRC) is an independent statutory office under the aegis of my Department. The WRC is responsible for the enforcement of, inter alia, compliance with minimum rates of remuneration in workplaces.

As part of its functions in this area, WRC Inspectors carry out announced and unannounced inspections at employer premises with a view to determining compliance by employers with employment law in the State and to ensure that employees are receiving their statutory entitlements. In the vast majority of such cases, compliance by the employer is achieved without the need for prosecution.

An individual who considers that they are not being paid in accordance with the National Minimum Wage Act 2000 may refer the matter to the inspectorate of the WRC. Inspectors are authorised to inspect records and to ensure compliance by employers with the provisions of the National Minimum Wage Act 2000.

Separately, an employee not in receipt of the national minimum hourly rate of pay may also refer a complaint for investigation to a WRC Adjudication Officer. The complaint form for referral of a complaint is available on the WRC website www.workplacerelations.ie.

Further information for both employers and employees is available from the WRC Information and Customer Services telephone service (Tel 1890 80 80 90) open 9.30 am to 05.00 pm - Monday to Friday.

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