Written Answers Nos. 76-100
76. Deputy John McGuinness asked the Tánaiste and Minister for Enterprise, Trade and Employment the details of the Sustaining Enterprise and Accelerated Recovery Fund; and if he will make a statement on the matter. [43830/21]
View answerThe 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, the Tánaiste 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 also encompasses a Digitalisation Voucher to assist the development of a digitalisation plan.
Full details of the fund and eligibility can be found on the Enterprise Ireland website: www.enterprise-ireland.com/recover.
My Department working with Enterprise Ireland are currently promoting this new offer and is working with companies on funding applications.
77. Deputy Pa Daly asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will consider additional supports for indoor leisure businesses that have had to remain closed but due to the size of their premises have borne significant overheads for rent, mortgages and utilities to keep their business intact during the pandemic. [43476/21]
View answerAs the Deputy is aware, the Government have provided a significant package to help businesses and workers during the pandemic.
Under the new Economic Recovery Plan, a stimulus to fuel the economy of €4 billion was announced, this is intended to aid businesses and the economy to recover and rebuild.
The Plan outlined changes to several of the current financial supports, the EWSS is extended until the end of 2021, the commercial rates waiver will continue until 30 September 2021, the 9% VAT rate was extended until the 1 September 2022, tax debt warehousing scheme is extended until the end of the year and will be interest free in 2022 and the CRSS will remain in place for businesses that have to stay closed.
The new Business Resumption Support Scheme (BRSS) supports businesses that were substantially impacted during the pandemic even during periods when restrictions were eased. This support with a maximum payment of up to €15,000, is available to businesses that can demonstrate a significant reduction in trade. The scheme is administered by Revenue with eligible businesses making a claim for an Advance Credit for Trading Expense (ACTE). The BRSS is now open for registration on the Revenue Online Service (ROS). I would urge businesses to ensure that they are aware of what supports are available to them.
I remain committed to working with my colleagues across Government to assist businesses and to address suitable enterprise measures in the context of the challenges presented by COVID-19 to our economy and our people.
I would also urge businesses to contact their Local Enterprise Offices for advice on other non-financial services such as mentoring or online courses that may be available to them.
78. Deputy Mick Barry asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures he is taking to safeguard jobs in the retail sector; and if he will make a statement on the matter. [43774/21]
View answerI am keenly aware of the critical role that the retail sector plays in contributing to the Irish economy. As the largest private sector employer, and a key element in providing for the needs of society and indeed other sectors of the economy, it is vital that retail continues to develop capability and remains competitive.
The past year has been a difficult year for most businesses, including those in the Irish retail sector. The impact of both the COVID-19 pandemic and Brexit have posed significant challenges for businesses and it is vital that all businesses continue to develop their resilience in the face of these and future challenges.
It is important that there is a strong, diverse, and balanced retail business presence across the country which sustains the local and domestic economy and contributes to the export economy, both online and offline.
A long-term goal for the overall retail sector prior to the pandemic was to scale up online offerings to complement physical outlets.
This goal has been accelerated due to the pandemic, and I want to see this digital development of the sector continue. Indeed, my Department has provided specific funding though the COVID-19 Online Retail Scheme and the Trading Online Vouchers Scheme to assist the retail sector in their efforts.
For many retailers, developing their digital capability and enhancing their physical retail offering with a strong online presence will support them to become more resilient. I am determined to support that ambition and assist retail to increase their digital presence and boost online sales allowing them to target new and existing customers and shoppers in the online space.
Having an evidence-based foundation for ongoing engagement with retail sector stakeholders is important and in this regard my Department has commenced a major review of the retail sector to identify and analyse the factors impacting on retailers and their employees, and the likely future trends, opportunities and challenges facing the retail sector. This review will identify retail sector policy options for consideration by my Department, other relevant Departments for Government. This review is expected to be completed by the end of this year.
The Study will also support the work of the Retail Forum, which I chair and will support the ongoing engagement with the representative bodies of the workers and businesses in the retail sector.
I want the retail sector to continue to develop and to become one of our most innovative and resilient sectors, so that those working in retail can be confident about building a long-term career in retail.
79. Deputy Kieran O'Donnell asked the Tánaiste and Minister for Enterprise, Trade and Employment the status of the work to reform insurance with a view to reducing the cost on individual consumers and businesses; and if he will make a statement on the matter. [43811/21]
View answerGovernment wants a competitive, stable and consumer-friendly insurance environment. To deliver on insurance reform Government established a Cabinet Committee Subgroup on insurance reform which is chaired by the Tánaiste and of which I am a member. 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.
80. Deputy Catherine Connolly asked the Tánaiste and Minister for Enterprise, Trade and Employment the status of the development of the regional enterprise plan to 2024 for the west of Ireland; when the plan will be completed and published; the analysis his Department carried out in the preparation of the plan into the potential of community-focused, indigenous industries in providing sustainable employment opportunities in the future particularly in view of job losses due to Covid-19; and if he will make a statement on the matter. [43796/21]
View answerRegional enterprise development and sustainable local job creation is a key policy priority of mine 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 working together to identify growth opportunities, recognise vulnerabilities, and to address ecosystem gaps, so as to enable job creation in businesses, including indigenous businesses, across the regions, through collaborative regional actions.
The new West Regional Enterprise Plan to 2024 which covers Galway, Mayo and Roscommon 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, with a focus on creating sustainable employment opportunities.
I have the pleasure of driving the delivery of the new Plan in the West and I have engaged directly with the West Regional Steering Committee made up of regional stakeholders and chaired by Evelyn O’Toole, Founder CEO of Complete Laboratory Solutions (CLS), throughout 2021.
The regional stakeholders in the West 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 West 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 West 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.
81. Deputy Jennifer Carroll MacNeill asked the Tánaiste and Minister for Enterprise, Trade and Employment the status of non-EEA employment permits for the homecare sector; and if he will make a statement on the matter. [43655/21]
View answerThe 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, in this case the Department of Health.
The most recent review did not recommend removal of the occupation of care worker/home carers from the Ineligible Occupations List as the evidence suggests that other factors, such as the contracts of employment on offer and employment terms and conditions being offered are a factor in the recruitment challenges faced by the sector, rather than a demonstrable labour market shortage. The sector has also previously been advised that a more systematic and structured engagement with the Department of Social Protection needs to be demonstrated.
If a sector wishes to propose a change to the occupations lists, they need to submit a detailed evidence-based business case to substantiate their request.
A review is currently underway, with submissions received, including submissions from the Home Care sector, under consideration. It is expected that the review will be finalised by the end of September/early October.
82. Deputy John Lahart asked the Tánaiste and Minister for Enterprise, Trade and Employment the initiatives his Department is taking to promote social enterprise. [43610/21]
View answerThe responsibility for the development of policy and the promotion of social enterprises lies with my colleague the Minister for Rural and Community Development, Heather Humphreys, T.D. and is set out in the Department of Rural and Community Development’s National Social Enterprise Policy for Ireland (2019-2022). This strategy is focused on three key objectives, to build awareness of social enterprises, to grow and strengthen social enterprises and to achieving better policy alignment across government.
Social enterprises operate right across society and the economy, addressing social, economic and environmental challenges. Many social enterprises interact with a wide range of government funding schemes and programmes, in areas such as labour market policy, rural and community development, childcare, health, social inclusion and environmental policy.
In this respect, representatives of my Department and the agencies have engaged with their counterparts in the Department of Rural and Community Development. They have communicated their understanding that social enterprises that meet with the eligibility criteria of the grant aid schemes on offer through Enterprise Ireland and the Local Enterprise Offices would not be precluded from applying for these programmes. Furthermore, the Local Enterprise Offices offer a wide range of high-quality business and management development programmes to any small business, including those that would be considered social enterprises. This policy position has been communicated to the Local Enterprise Offices via the Enterprise Ireland Centre of Excellence.
83. Deputy Alan Farrell asked the Tánaiste and Minister for Enterprise, Trade and Employment the detail of the progress of the Sustaining Enterprise and Accelerated Recovery Fund since its launch; and if he will make a statement on the matter. [43422/21]
View answerThe 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 are 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 totalling €129,000 made to companies under this Fund. Six approvals are for Digitalisation Vouchers while one approval is for the Sustaining Enterprise Fund.
84. Deputy Richard Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the status of the introduction of the small company administrative rescue process which is aiming to be a simplified, timely and cost-effective restructuring process for viable small companies. [43532/21]
View answerThe Companies (Rescue Process for Small and Micro Companies) Act 2021 provides for a streamlined, workable and practical procedure that will allow viable small and micro companies to restructure and continue trading. Its delivery in advance of the summer recess was an ambitious task but one that was achieved when the Act was signed into law on 22 July.
As a result of the timely passage of this Act, officials from my Department were in a position to commence work immediately on the necessary regulations and forms, and to engage with the Courts Service on the required Rules of Court, ensuring that the process will be made available to viable small and micro companies at the earliest possible opportunity. In parallel, insolvency practitioners have had the opportunity to familiarise themselves on the provisions of the legislation so that they are ready to advise clients accordingly when the Process is put in place.
My officials anticipate its work will be completed in October at which point I will make a formal announcement on the commencement date for the Act.
85. Deputy Marc MacSharry asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of businesses in counties Sligo, Leitrim and Donegal that have applied to the small business assistance scheme; the number of same that have received funding; and if he will make a statement on the matter. [43806/21]
View answerThe Government recognises the sacrifices business owners, employees and their families have made over the past 18 months in order to protect their community from COVID-19. As you are aware, the Government put in place a comprehensive package to help businesses and workers during the pandemic. The Small Business Assistance Scheme for Covid-19 (SBASC), which is administered by the 31 local authorities in every county is in addition to the Government's range of advisory and funding initiatives for business including the Employment Wage Subsidy Scheme (EWSS), the Pandemic Unemployment Payment (PUP), the COVID-19 Restrictions Support Scheme (CRSS), low-cost loans, the deferral and warehousing of tax liabilities and the waiver of commercial rates.
While these range of measures supported thousands of businesses, we were aware that a small number of businesses needed additional assistance and I pleased that SBASC provided additional help for those that needed it. The total number of Small Business Assistance Scheme for COVID (SBASC) applications for County Sligo is 72 and 67 have been approved for payment. The total number of Small Business Assistance Scheme for COVID (SBASC) applications for County Leitrim is 57, with 23 approved for funding. In relation to County Donegal, the total number of Small Business Assistance Scheme for COVID (SBASC) applications is 288, with 163 approved for funding.
There are a number of reasons why some applicants were not approved for funding by their local authority including businesses not meeting the criteria for reduction in turnover, incomplete application forms or the businesses being in receipt of CRSS or another sectoral scheme.
The Small Business Assistance Scheme for COVID (SBASC) is now closed and eligible business can now apply for the Government's new Business Resumption Support Scheme (BRSS).
My colleague, the Minister for Finance Paschal Donohoe TD on 6th September last announced the launch of the BRSS as a new support scheme for businesses with reduced turnover as a result of public health restrictions, with a maximum payment of €15,000. The BRSS is a general scheme and is open to any businesses whose turnover remains impacted as a result of public health restrictions. Businesses who previously availed of other schemes such and SBASC, the Tourism Business Continuity Scheme and CRSS will be eligible to apply provided they meet the qualifying criteria.
Details of the wide range of COVID-19 schemes are available on my Department’s website at https://enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/ .
I would also encourage business owners in Sligo, Leitrim and Donegal to talk to their Local Enterprises Offices who offer advice and guidance in relation to the supports available to businesses.
88. Deputy Michael Moynihan asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of businesses in County Cork that have availed of the Covid-19 credit guarantee scheme; and if he will make a statement on the matter. [43824/21]
View answerIt is just over one year since the Covid-19 Credit Guarantee Scheme (CCGS) was launched. During this time the scheme has provided vital access to finance to 6,592 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.
As at 2 September, 805 loans with a value of €52,467,034 have been drawn under the CCGS by businesses in County Cork.
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 https://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 would strongly encourage businesses to avail of the low-cost lending facilities in the remaining months of the scheme.
89. Deputy Catherine Connolly asked the Tánaiste and Minister for Enterprise, Trade and Employment the details of any ongoing engagement between the indigenous enterprise, SMEs and entrepreneurship division of his Department and other Departments and agencies with regard to the promotion of indigenous industries in Ireland particularly in view of the lessons learned from the Covid-19 pandemic; and if he will make a statement on the matter. [43794/21]
View answerAs Tánaiste and Minister for Enterprise, Trade and Employment I can assure the Deputy of the value that this Government and my Department places on helping entrepreneurs, indigenous SMEs and micro-enterprises as creators of employment all over Ireland to grow and thrive in our economy. Ensuring we have the best business environment for all businesses to grow and proposer requires a whole of Government approach so we can underpin the longer-term resilience of our enterprise sector to deal with future shocks. That is why engagement and coordination with other Departments and agencies is so important to delivering on our indigenous enterprise development priorities, including through Cabinet Committees, Senior Officials Groups and other enterprise stakeholder groups and fora which I and my officials actively lead and are involved with.
A central focus for my Department and the Indigenous Enterprise Division over the last two years in particular is assisting businesses across all sectors to prepare for Brexit and to respond to the impacts of the COVID-19 pandemic. This included the development of business continuity checklists, toolkits, grants and awareness campaigns, online grant schemes, schemes for recruiting staff to deal with customs, a range of loan and finance schemes including the €800m Future Growth Loan Scheme and the €2bn Credit Guarantee Scheme developed with the Department of Agriculture, Food and Marine, the design and delivery of the €650m Restart Grant Scheme and top-ups in 2020 and the Small Business Assistance Scheme for COVID (SBASC) this year. The Division also has liaison responsibility for Enterprise Ireland, the 31 Local Enterprise Offices and the Design and Crafts Council of Ireland and each of these agencies have implemented a range of new grant and advisory schemes to help indigenous businesses on behalf of the Department., which have helped thousands of indigenous businesses through the COVID-19 crisis.
A key priority in the Programme for Government: Our Shared Future was the establishment of the SME Growth Taskforce, which I Chaired in the latter half of 2020 and was a follow-up on the recommendations in the 2019 OECD on SME and Entrepreneurship Policy commissioned by my Department. The Taskforce membership included entrepreneurs, business leaders, unions and other stakeholders to fulfil the commitment made in the Programme for Government to draw up a long-term strategic blueprint for SMEs and entrepreneurs beyond COVID-19. The research and work of the Taskforce included engagement with a range of government departments and agencies on the key development issues for indigenous enterprise. The resulting report 'SME and Entrepreneurship Growth Plan’, sets out a wide range of recommendations with long-term strategic relevance for SMEs and entrepreneurs. The recommendations include measures to help SMEs and entrepreneurs 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.
Following the publication of the Report, a Ministerial-led 'SME & Entrepreneurship Implementation Group' was formed to take forward these proposals in conjunction with appropriate Government Departments, Agencies and other stakeholders. To-date the Implementation Group, which is led by my colleagues Minister English and Minister Troy and the Indigenous Enterprise Division have met on five occasions and have held sessions to discuss progress on thematic areas such as insurance costs, access to finance, entrepreneurship and internationalisation, digitalisation, clustering and networking. The Taskforce is meeting in plenary tomorrow to review progress on the recommendations and to consider any additional measures needed to help our indigenous sector as the economy reopens.
In addition to the commitment to establish the SME and Entrepreneurship TaskForce, the Division also led on the commitment in the Programme for Government to establish a SME State Bodies Group, to consider access to finance issues for indigenous enterprise. I chair this Group, together with my Ministerial colleagues the Minister for Finance, Paschal Donohoe, T.D. and Minister for Public Expenditure and Reform Michael McGrath, T.D. The Group was a particularly helpful forum for assessing the financing needs of SMEs as the COVID-19 crisis unfolded and as the Indigenous Enterprise Division worked on the design of the COVID Credit Guarantee Scheme. To date over €500m has been drawn down by over 7,000 indigenous businesses. Similarly, the Division worked with Department of Finance and the Department of Agriculture on the development of the new €330m Brexit Impact Loan Scheme, the enabling legislation for which was passed by the Oireachtas earlier this year. In addition, for the agri-food sector, my officials in the Indigenous Enterprise Division have worked closely also with DAFM colleagues on the design and implementation of the €75m Agri-Food Competitiveness and Market Diversification Fund I launched earlier this year to help impacted businesses in the sector respond to the twin challenges of COVID and Brexit.
More generally, we are working to increase the range businesses eligible for assistance and the 31 Local Enterprise Offices have already started on this road with the Productivity Fund and Business Continuity Vouchers, which targeted an expanded cohort of enterprises that is firms with up to 50 employees which would customarily not have qualified for funding. Enterprise Ireland is also working with a broader base of non-exporting SMEs, with the Retail On-line scheme and the COVID-19 Sustaining Enterprise Fund and the Sustaining Enterprise and Accelerated Recovery Fund. We are also providing more and cheaper loan finance through MicroFinance Ireland, SBCI and the €2bn Credit Guarantee Scheme. We have also launched a number of new climate change advisory and grants schemes this year and I am pleased that the LEOs' Green for Micro scheme is progressing well.
In response to the on-going issues arising from COVID-19, my Department continued to virtually engage with indigenous enterprise through the 31 Local Enterprise Offices (LEO). Many of the ongoing schemes and initiatives were moved to online platforms to allow for continued engagement with client companies.
The Look for Local campaign launched earlier this summer by the LEOs, is funded by my Department and supported by Enterprise Ireland (EI) and the Local Authorities. The Look for Local campaign was an opportunity for the LEOs to show support for all those small businesses as they reopened and encouraged Irish consumers to do the same.
My colleague Damien English T.D., Minister of State for Business, Employment and Retail chairs the Retail Forum. The Retail Forum was established by my Department in June 2014 and provides a platform for structured engagement between retail representative bodies, retailers and the public sector on key concerns for the retail sector. The agenda is driven by Forum Members with key issues discussed at Forum level and also progressed through Working Groups.
In addition to the Retail Forum, Minister of State English has engaged directly with the retail, grocery and distribution sector during the pandemic and Brexit. The Forum will meet later this week to consider the progress on a major review of the future of the retail sector and also progress on the Online Retail Scheme, for which over €19m has been awarded to retail businesses to date.
in relation to the indigenous personal services sectors, Minister English, along with colleagues from the Indigenous Enterprise, SMEs and Entrepreneurship Division have formally held a number of meetings with representatives from the Hair and Beauty sector to discuss issues arising from COVID as well as other concerns and needs the sector has to become more resilient, sustainable and competitive in attracting and retaining employees and this engagement will continue.
My Department is also in regular contact with these representatives to keep them informed on subjects such as education and training, while responding to any queries they may have, e.g. VAT rates, statutory sick pay, etc. As a result, my Department have engaged with colleagues from the Department of Further and Higher Education, Research, Innovation and Science; the Revenue Commissioners and the Department of Social Protection on a range of topics pertinent to that Sector.
Regional enterprise development and sustainable local job creation is a key policy priority of mine and this Government. My Department is overseeing the development of nine new Regional Enterprise Plans to 2024, including for each region. These are bottom-up plans, developed by regional stakeholders including the Local Authorities, the enterprise agencies, local enterprise offices, regional skills forum and education and training institutes in each region.
The Plans aim to identify growth opportunities, recognise vulnerabilities, and in response, strengthen the regional enterprise ecosystem to enable job creation in the regions and are additional to the ongoing work of the various bodies such as the IDA, Enterprise Ireland, and others focusing on collaborative initiatives aimed at job creation in the regions.
Each Plan is overseen and monitored by a Regional Steering Committee made up of regional stakeholders and chaired by a senior level private sector businessperson. My Departmental colleagues, Minister Robert Troy and Minister Damien English are driving the delivery of the new Plans and chair a national oversight group which enables sharing of best practice and collaboration opportunities across the regions.
In relation to the tourism and hospitality sectors, which are significant indigenous employers, I established and chair the Hospitality Forum with my colleague the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Catherine Martin T.D., who has lead policy responsibility and Tourism Ireland and Fáilte Ireland are agencies of her Department. My Department and the Indigenous Enterprise Division continue to work closely with colleagues across government departments and agencies on measures and funding schemes to assist the hospitality, live events and exhibition sectors and most recently were central to the recent reopening of indoor hospitality in July.
While the last year has been challenging for indigenous enterprise, we have a strong and resilient base of businesses that we are committed to ensuring can sustain and grow their employment and sales into the future. I was pleased last week to lead the first in-person trade mission of indigenous enterprise since last March 2020 to the UK, France and Germany, to promote Irish innovation and secure additional contracts. I and my Department will continue to work with government departments and sectoral agencies as appropriate to ensure that we have the most conducive and competitive environment and to strengthen the close working with sectoral policy departments and sectoral agencies.
90. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment if, in advance of a phased return to office-based working from 22 September 2021, he and his Department will publicly state that the preferred option of Government is for employers and managers to agree for a blended working model with workers and their trade unions which takes into account the health and safety of workers; and if he will make a statement on the matter. [43731/21]
View answerOn 31 August 2021, the Government published Reframing the Challenge: Continuing our Recovery and Reconnecting, setting out the proposed process for the further gradual of society and the economy.
From the 20 September onwards, attendance at the workplace for specific business requirements may commence on a phased and staggered basis. In this regard employers should plan and prepare for this return to the workplace and, in particular, employers should pro-actively engage with their workers to determine how in-person work attendance can safely take place.
The Labour Employer Economic Forum (LEEF), which is the forum for high-level dialogue between Government, Trade Union and Employer representatives on matters related to the labour force, has published an additional guidance note on the gov.ie website, to assist employers and employers with the planned return from 20 September.
An update of the Work Safely Protocol will also take place. However, the current Protocol remains a robust document containing advice on a wide range of COVID-19 public health measures applicable to every workplace. All employers and business managers should familiarise themselves with the Protocol.
The Health and Safety Authority (HSA) has also produced supporting checklists and templates, available at www.hsa.ie covering infection prevention control measures, ventilation, rapid antigen testing to help employers to get their business up and running again and to inform workers on practical measures prevent the spread of COVID-19.
The Government is also calling on employers, in consultation with their workers, to develop longer-term arrangements for blended or remote working having regard to their operational requirements. In this regard, my Department published, earlier this year, the “Making Remote Work – National Remote Working Strategy” which outlines the vision for the future of remote working in Ireland.
91. Deputy Niamh Smyth asked the Tánaiste and Minister for Enterprise, Trade and Employment if the new Brexit impact loan scheme will reopen for applications. [43846/21]
View answerThe Brexit Impact Loan Scheme 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.
The Brexit Impact Loan Scheme has been developed in cooperation between my Department and the Department of Agriculture, Food and the Marine. It will be operated by the Strategic Banking Corporation of Ireland (SBCI) and delivered through participating lenders. The scheme is supported by a guarantee through the European Guarantee Fund (EGF), which is being implemented by the European Investment Fund [EIF] on behalf of the European Commission.
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. These loans can be used for liquidity or investment purposes.
The terms of the new scheme are comparable to those offered under the COVID-19 Credit Guarantee Scheme, which has seen significant uptake since its launch in September 2020. To date, 6,592 loans have been provided by the COVID-19 Credit Guarantee Scheme, to a total value of more than €431 million.
The Brexit Impact Loan Scheme is expected to open to new applications later this month.
92. Deputy Joe Flaherty asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will report on the Midlands Regional Enterprise Plan. [43825/21]
View answerRegional enterprise development and sustainable local job creation is a key policy priority of mine 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 Midlands region through collaborative regional actions.
The new Midlands Plan to 2024 which covers Laois, Longford, Offaly and Westmeath 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 am driving the delivery of the new Plan in the Midlands and I have engaged directly with the Midlands Regional Steering Committee made up of regional stakeholders and chaired by Dr. Anne Cusack, Managing Director of Critical Healthcare throughout 2021.
The regional stakeholders in the Midlands 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 Midlands 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 Midlands 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.
93. Deputy Aindrias Moynihan asked the Tánaiste and Minister for Enterprise, Trade and Employment if training and financial supports available to businesses setting up online can be increased to meet the support needs arising from the growth of e-commerce due to the Covid-19 pandemic; and if he will make a statement on the matter. [43847/21]
View answerMy Department recognises the importance of developing the e-commerce capability and digitalisation of our indigenous enterprises and this need was brought into sharp focus during the restrictions introduced during the COVID-19 pandemic. The agencies under the remit of my Department have developed digitalisation programmes to assist businesses to not only commence trading online but also encourage those already trading online to further develop their e-commerce capability.
The Online Retail Scheme was used in response to the Covid-19 crisis and the continuing urgent need for retail companies to achieve a step change in online capability. The purpose of this fund is to enable Irish-owned retailers to enhance their digital capability and to develop a more competitive online offer that will enable an increase in their customer base and build a more resilient business in the domestic and global marketplace, both online and offline.
The Trading Online Voucher Scheme, administered by the Local Enterprise Offices on behalf of my Department, offers a voucher of up to €2,500 (50% co- funded by the applicant) to help businesses develop their online trading capability and includes training sessions that cover various topics, including developing a website, digital marketing, social media for business and search engine optimisation.
In response to the COVID-19 Pandemic, the opportunity to apply for a second voucher was introduced. When this scheme transferred into my department in January this year, a decision was made to retain this provision as it was identified as a key tool in assisting Micro-Enterprises in further developing their E-commerce capability.
Furthermore, my Department, in conjunction with their colleagues in the Local Enterprise Office Centre of Excellence in Shannon, have commenced a process of evaluation of this scheme. The aim of this evaluation to determine, among other things, the impact of the scheme pre-pandemic, during the pandemic, how it might look in the future and what level of funding is required to deliver the scheme going forward. This process is ongoing, and will help inform any future policy considerations arising therefrom.
94. Deputy Ruairí Ó Murchú asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans in relation to the continuity of Covid-19 business supports as business reopen; and if he will make a statement on the matter. [43798/21]
View answerAs the Deputy is aware, the Government have provided a significant package to help businesses and workers during the pandemic. Under the new Economic Recovery Plan, a stimulus to fuel the economy of €4 billion was announced, this is intended to aid businesses and the economy to recover and rebuild.
The Plan outlined changes to several of the current financial supports, the EWSS is extended until the end of 2021, the commercial rates waiver will continue until 30 September 2021, the 9% VAT rate was extended until the 1 September 2022, tax debt warehousing scheme is extended until the end of the year and will be interest free in 2022 and the CRSS will remain in place for businesses that have to stay closed.
The new Business Resumption Support Scheme (BRSS), announced by the Minister for Finance on the 6th of September, supports businesses which were substantially impacted during the pandemic even during periods when restrictions were eased. This support is available to businesses that can demonstrate a significant reduction in trade. The scheme is administered by Revenue with eligible businesses making a claim for an Advance Credit for Trading Expense (ACTE). The BRSS is now open for registration on the Revenue Online Service (ROS). I would urge businesses to ensure that they are aware of what supports are available to them.
I remain committed to working with my colleagues across Government to assist businesses and to address suitable enterprise measures in the context of the challenges presented by COVID-19 to our economy and our people.
I would also urge businesses to contact their Local Enterprise Offices for advice on other non-financial services such as mentoring or online courses that may be available to them.
96. Deputy Fergus O'Dowd asked the Tánaiste and Minister for Enterprise, Trade and Employment the status of the recent purchase by the IDA of two land banks in County Louth; the plans for these sites; if any other associated details in relation to same will be provided; and if he will make a statement on the matter. [43372/21]
View answerRegional development is at the centre of IDA Ireland's new strategy. The national context for IDA’s approach to winning investment for the regions is set by Project Ireland 2040 and the associated National Planning Framework (NPF), National Development Plan and Regional Spatial and Economic Strategies. The IDA’s Regions pillar also aligns with the objectives of the Programme for Government in relation to regional development. IDA intends to win investment for the main regional cities and the regional growth centres identified in the NPF.
Specifically, the IDA will target 40 investments for the Mid-East region in the period 2021 to 2024. In addition to Louth, the Mid-East includes the the counties of Meath, Kildare and Wicklow.
There are 97 IDA client companies in the Mid-East region, directly employing 18,396 people. Co. Louth is home to 30 IDA Ireland client companies directly employing more than 4,372 people and includes the regional growth centres of Drogheda and Dundalk. The FDI performance in the region has been consistent over the past five years with employment among IDA clients increasing by 6%.
The timely provision of appropriate, cost-effective property and infrastructure solutions to meet the needs of multinational companies remains essential to winning FDI. IDA’s regional property programme ensures the continued supply of land, buildings and infrastructure in regional locations to meet the needs of current and prospective clients. A robust property and infrastructure ecosystem can be the key differentiator in winning FDI projects.
In June 2021, IDA Ireland acquired two landbanks in Co Louth. These land acquisitions, with a combined total of 149 acres are situated in Dundalk and in Drogheda and form part of IDA’s long term strategic plan to position Louth and the wider region to compete for FDI investment. The acquisition of these landbanks is part of IDA Ireland’s overall property programme.
Over the course of IDA Ireland’s strategy, "Driving Recovery & Sustainable Growth 2021-2024", IDA will deliver 19 Advanced Building Solutions across the country, including in Drogheda and Dundalk.
97. Deputy Paul Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment his views on whether adequate resources have been allocated to the Health and Safety Authority; and if he will make a statement on the matter. [43833/21]
View answerIn the 2021 budget the Health and Safety Authority was given an additional pay allocation of €4.2m, primarily to increase the staff available to it, enabling the Authority to deliver further on its mandate including the establishment of an occupational health division but also to cover additional resources for Brexit and COVID-19.
The Health and Safety Authority has a full staff complement of 203 which is made up of staff in administration and inspector grades. The inspector grades comprise of Grade I (senior inspectors) as well as GII and GIII inspectors. Inspectors operate across all our mandates – occupational health and safety, market surveillance of products and chemicals. They may also be involved in either general inspection, specialist inspection or policy implementation at national, European and international level.
98. Deputy Thomas Gould asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to progress a living wage. [43800/21]
View answerThe current Programme for Government makes the commitment to “progress to a living wage over the lifetime of the Government”.
Earlier this year I asked the Low Pay Commission to examine this commitment and to make recommendations on the best approach to achieving it within the lifetime of the Government.
The Low Pay Commission has commissioned supporting research on the living wage. Terms of Reference for this research were noted by Cabinet earlier this year. The Commission intends to provide a report to me on the issues surrounding the progression to a living wage later this year.
The report will consider the policy, social and economic implications of a move to a living wage and the process by which Ireland could progress towards a living wage.
It will do this by looking at international evidence on living wages, examining different calculation methods and examining the policy implications of moving to a living wage in Ireland.
The paper will conclude by outlining options for how Ireland can progress towards a living wage.
I look forward to receiving the Low Pay Commission’s report later this year. Their report will inform Government on the best practical approach to progress to a living wage in Ireland.
The current Programme for Government also commits to the Government continuing to be guided by the recommendations of the Low Pay Commission with regard to any future changes in the minimum wage. We will continue to do this while the living wage initiative is being considered.
The minimum wage was established in 2000 at £4.40 (€5.58). Since then it has risen to €10.20.
In every year since its founding in 2015, the Low Pay Commission has recommended an increase in the minimum wage and these recommendations have always been accepted and implemented by the Government.
99. Deputy Verona Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to deal with the recruitment crisis presently facing all trade and retail sectors; the incentives his Department will be introducing to encourage persons to return to the workplace; and if he will make a statement on the matter. [43836/21]
View answerThe Government is committed to creating the right environment for a jobs-led recovery and to getting people back to work as quickly as possible. Our Economic Recovery Plan outlines ongoing support for people and businesses to make a full return to work and sets out medium term policies to promote sustainable and balanced growth, as well as signalling the gradual phasing out of the Pandemic Unemployment Payment. The overarching ambition in our Economic Recovery Plan is to have 2.5 million people in work by 2024, exceeding pre-pandemic levels.
The past year has been a difficult year for most businesses, including those in the retail sector. As the largest private sector employer, the retail sector plays a critical role in contributing to the Irish economy and in providing for the needs of society. It is vital that our retail sector continues to develop capability and remains competitive.
The number of PUP recipients in the Wholesale and Retail Sector has been falling since outlets reopened. The sector has seen PUP claimants fall to 22,434 currently, down from the sector’s 2021 peak of 76,606 in February.
Prior to the pandemic the sector was facing challenges with upward cost pressures and the increasing impact of technology. COVID-19 has accelerated structural changes, particularly the shift to digital and online with ripple effects in local economies. My Department has provided specific funding through the COVID-19 Online Retail Scheme and the Trading Online Vouchers Scheme to assist the retail sector to make this transition.
I want the sector to continue to develop and to become one of our most innovative and resilient sectors, so that people can be confident about building a long-term career in retail. My Department will continue to engage with the sector through the Retail Forum, currently chaired by my colleague Damien English, TD, Minister of State for Business and Employment. The forum provides a platform for structured engagement between retail representative bodies, retailers, and the public sector, on key issues for the sector.
Our Economic Recovery Plan also commits to further strengthen Ireland’s Skills Framework to ensure people are supported to secure and remain in sustainable and quality employment. This will be achieved through a combination of upskilling and reskilling with substantially accelerated training and skills opportunities and increased activation capacity through Pathways to Work 2021-2025. The Action Plan for Apprenticeship 2021-2025, which targets 10,000 apprenticeship registrations per annum by 2025, is another important mechanism to address skills shortages. Retail Ireland’s Skillnet Apprenticeship in Retail Supervision and the National Hairdressing Apprenticeship are good examples of programmes providing job-ready qualified professionals. My colleagues, Simon Harris, TD, Minister for Further and Higher Education, Research, Innovation and Science, and Niall Collins, TD, Minister of State for Skills and Further Education, recently announced a further extension of the Apprenticeship Incentivisation Scheme until the end of December 2021 which provides financial support for employers who register apprentices to a national apprenticeship.
We want people to feel safe and be safe as we work through the progressive reopening of our economy and the return to the workplace. My Department, with the Health and Safety Authority, the Department of Health and the HSE developed a Work Safely Protocol which provides a framework for all businesses to operate safely in the context of the COVID-19 pandemic. As businesses continue to re-open in accordance with the Government’s latest roadmap, they must do so in accordance with the public health advice and with the COVID-19 mitigation measures set out in the Protocol. The ultimate aim is to keep employers and employees in all sectors safe while also helping businesses to re-open and, more importantly, to remain open and productive.
100. Deputy Richard Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the detail of the overall trends in import and export trade, trade between Ireland and both Great Britain and Northern Ireland, distinguishing overall volumes of exports and those supported by Enterprise Ireland; and the policy challenges which they raise. [43533/21]
View answerThe performance of the import and export sectors has been significantly impacted over the last three years by both Brexit and the ongoing COVID-19 pandemic. 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. My Department has invested to help businesses overcome these challenges, so that they can emerge from this difficult period, resilient and ready for future success.
As outlined in the table below the 2020 export data indicates that client companies of Enterprise Ireland performed better than the national cohort of exporting companies measured by the CSO.
|
Value in €'000 |
2019 Exports CSO €'000 |
2020 Exports CSO €'000 |
2019/'20 Change in Exports CSO |
2019 Exports Enterprise Ireland €'000 |
2020 Exports Enterprise Ireland €'000 |
2019/'20 Change in Exports Enterprise Ireland |
|
Great Britain |
13,581,644 |
12,399,054 |
-8.70% |
6,564,517 |
6,265,271 |
-4.60% |
|
Northern Ireland |
2,207,816 |
2,098,919 |
-4.90% |
1,240,642 |
1,244,554 |
0.30% |
|
United Kingdom |
15,789,459 |
14,497,973 |
-8.20% |
7,805,158 |
7,509,825 |
-3.80% |
Last week, the Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar led the first in-person Trade Mission following the EU-UK Trade and Cooperation Agreement and since the onset of Covid-19, to London, Paris and Berlin to assist the accelerated export-led recovery of Irish businesses in the UK and Eurozone, Ireland’s closest markets. The UK, France and Germany combined represent 39% of total Enterprise Ireland client exports in 2020, with over 2,300 Enterprise Ireland client companies exporting to these three markets. This mission offered the opportunity to build relationships and increase awareness of Ireland’s offering and why it is an attractive place to invest.
As well as the global efforts driven by our agencies, key to our success in growing exports has been our commitment to trade liberalisation in order to establish new markets for our indigenous sectors. 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 help the EU’s ambitious programme of negotiating new Free Trade Agreements, opening new markets for Irish companies and increasing export and investment opportunities.
