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Thursday, 14 Jul 2022

Written Answers Nos. 161-180

Youth Unemployment

Questions (161)

David Stanton

Question:

161. Deputy David Stanton asked the Minister for Social Protection the current rate of youth unemployment; the measures that her Department is taking to assist young people to enter the workforce; and if she will make a statement on the matter. [34904/22]

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Written answers

Young people in the labour market (those under 25 years of age) can be particularly affected by labour market disruptions. Prior to the COVID-19 pandemic, the seasonally adjusted youth unemployment rate for 2019 averaged approximately 12.5 percent. However, after the onset of the pandemic, the CSO’s ‘COVID-19 adjusted’ monthly youth unemployment rate – which included all those in receipt of the PUP – increased dramatically, peaking at almost 70 percent in May 2020.

Following the reopening of the economy most young people closed their PUP claims and returned to work, resulting in a strong decline in youth unemployment. As of June 2022, the youth unemployment rate stood at 5.4 percent.

While it is welcome that the youth unemployment rate has declined so rapidly, it is critical to continue to minimise potential scarring effects amongst young people who permanently lost their jobs during the pandemic, and to support young people who face difficulties or higher barriers to entry to the labour market.

Accordingly, Pathways to Work 2021-2025, the Government’s employment services strategy, includes a number of measures to support disadvantaged young people. These include expanding the JobsPlus recruitment subsidy scheme and enhancing the incentive to recruit young jobseekers by increasing the youth age limit from 25 to 30 years; and ring-fencing places for eligible young people on a range of employment support schemes such as the Work Placement Experience Programme, Community Employment and Tús.

My Department also works closely with the Further Education and Training sector to provide access to training and upskilling opportunities. As committed in Pathways to Work 2021-2025, the Department of Further and Higher Education, Research, Innovation and Science are providing an additional 50,000 further education and training places to help more people to have the opportunity to upskill for employment. These training and upskilling opportunities are likely to be of particular relevance to young people seeking to enter the labour market for the first time.

Food Poverty

Questions (162)

Pádraig O'Sullivan

Question:

162. Deputy Pádraig O'Sullivan asked the Minister for Social Protection the progress of the food poverty working group; and if she will make a statement on the matter. [37779/22]

View answer

Written answers

The Roadmap for Social Inclusion 2020 – 2025, which was adopted by Government and published in January 2020, includes a commitment to ‘Develop a comprehensive programme of work to further explore the drivers of food poverty and to identify mitigating actions’ (Commitment 61).

The Food Poverty Working Group, which I chair, was established in April 2021 and aims to tackle the issue of food poverty in accordance with this commitment. The group met on four occasions in 2021 and has met twice this year to date. The group has focused on two pieces of work to date. The first is a high-level mapping exercise of programmes, services and supports across Government that address food poverty and provide supports in this area. Data gathering is complete, and a report expected to be published in the coming weeks.

The second piece of work is a research project to analyse the prevalence of food poverty in two selected case study areas: one urban and one rural. Broadly speaking, there are a range of known drivers of food poverty including: affordability; accessibility; sufficiency; and quality. However, this research aims to identify the drivers of food poverty in each case study area and examine the range of service providers and actors relating to food poverty in each area. It should also identify any gaps and overlaps in service provision. The findings from this research should further inform the delivery of commitment 61 of the Roadmap for Social Inclusion.

I trust this clarifies matters for the Deputy.

Community Employment Schemes

Questions (163)

Marc Ó Cathasaigh

Question:

163. Deputy Marc Ó Cathasaigh asked the Minister for Social Protection the proposals to improve access to community employment schemes including the six-year rule for the rural social scheme; if the expansion of farm assist is expected to see increased uptake in the rural social scheme; and if she will make a statement on the matter. [34876/22]

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Written answers

The Department of Social Protection provides activation support programmes for long-term unemployed jobseekers and those most distant from the labour market. The aim of the CE and Tús programmes are to enhance the employability of disadvantaged and long term unemployed people by providing work experience and training opportunities within their communities.

In addition, RSS is an income support initiative providing part-time employment opportunities for farmers or fishermen in receipt of certain social welfare payments, and underemployed in their primary occupation, within their local area in community and voluntary organisations.

In order to further assist all three schemes in the current tight labour market and as COVID emergency supports are phased out, Minister Humphreys and I recently announced a number of measures to CE, Tús and RSS. These will improve recruitment, remove the six year time limit on RSS for all participants, while continuing the practice whereby placements can be extended until suitable replacements are available to fill vacancies. These reforms will ensure that schemes can maintain services to local communities, all RSS participants can remain on the scheme until they reach State pension age and will improve access to schemes.

Government made a commitment in the Programme for Government and in the Rural Development Policy 2021-2025 to review the means assessment disregards for the Farm Assist. As part of this review process, it was recommended to provide for an extensive expansion to the list of Agri-Environmental schemes which qualifies towards income disregards. These measures have now been implemented from June 2022. While it is not possible to quantify the number of people who may benefit from these changes, it is hoped that they will have an added benefit of increasing the number of people who could potentially apply for the RSS scheme, through being in receipt of Farm Assist.

It will take some time to measure the impact of this change and the increased number of potential RSS participants. It should be noted that RSS Implementing Bodies (IBs) are encouraged by the Department to promote and publicise the RSS, to increase public awareness of the scheme and encourage take-up and participation in their area. I would strongly encourage persons interested in participating on the scheme to contact their local IB to take up these available places.

The Department is fully committed to the future of employment support programmes and will continue to support and improve them for the benefit of the supervisors, team leaders and participants, given the valuable contribution being made to local communities through the provision of services.

I trust this clarifies the matter for the Deputy.

Social Welfare Payments

Questions (164)

Jennifer Carroll MacNeill

Question:

164. Deputy Jennifer Carroll MacNeill asked the Minister for Social Protection the number of applications that were made for the exceptional needs' payment by constituency or county to date in 2022; if there is information or details relating to the reason that each application was made, for example to cover fuel costs; and if she will make a statement on the matter. [34028/22]

View answer

Written answers

My Department provides individuals who have an urgent or exceptional income need which they cannot meet from their own resources or where an alternative is not available at that time with access to the Additional Needs Payment. The Additional Needs Payment covers both Urgent Needs and Exception Needs payments.

Table 1 shows the breakdown of closed applications for Additional Needs Payment in 2022 by county up to 30th June. Table 2 shows the total number of Additional Needs Payments applications received/awarded/disallowed in 2022 up to 30th June.

Additional Payment Needs

Question No. 165 answered with Question No. 120.

Social Welfare Eligibility

Questions (166)

Richard Bruton

Question:

166. Deputy Richard Bruton asked the Minister for Social Protection if the criteria for assessment of savings needs to be updated; and if she will make a statement on the matter. [34937/22]

View answer

Written answers

Social welfare legislation provides that means tests take account of the income and assets of the person (and their spouse or partner, if applicable) applying for the relevant scheme. Income and assets include income from employment, self-employment, occupational pensions, maintenance payments as well as property owned (other than the family home) and capital such as savings, shares, and other investments.

The assessment of capital reflects an expectation that people with reasonable amounts of capital and property are in a position to use that capital, or to realise the value of the property, to support themselves without having to rely solely on a means-tested welfare payment.

While savings are assessed in the means test, most social protection schemes have a general capital disregard meaning the full amount of the capital is not assessed.

The standard formula for assessing the value of capital for most social welfare payments is as follows: the first €20,000 is fully disregarded; the next €10,000 is assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.

As part of Budget 2022, the capital disregard for Carer’s Allowance was increased to €50,000, bringing it into line with the capital disregard for Disability Allowance. The new formula is as follows: the first €50,000 is fully disregarded; the next €10,000 is assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.

The capital assessment formula is not designed to reflect interest or annuity rates available to investors and no account is taken of interest or dividend payments received in the means assessment.

Any changes to the means assessment formula for social assistance schemes would have to be considered in the overall policy and budgetary context.

I trust this clarifies the position for the Deputy.

Social Welfare Payments

Questions (167)

Mick Barry

Question:

167. Deputy Mick Barry asked the Minister for Social Protection if she will consider a sizeable increase in the back-to-school allowances given the extra pressures on household due to the increases in the cost-of-living; and if she will make a statement on the matter. [34946/22]

View answer

Written answers

The Back to School Clothing and Footwear Allowance scheme provides a once-off payment to eligible families to assist with the costs of clothing and footwear when children start school each autumn.

To qualify for the Back to School Clothing and Footwear Allowance, a person must be in receipt of certain social protection payments or taking part in training, employment or adult education schemes.

The scheme is open for applications from June to September.

In 2021, 137,168 families, in respect of 252,423 children, benefited from the scheme at a cost of €51.74 million.

In 2022 I have increased the rates of payment for each eligible child by €100. This is on top of a budget increase this year of €10 per child, to €260 for children aged 4 to 11 and to €385 for children aged 12 years and over in second level education. The income limits for one parent families were also increased this year to bring them in line with the income limits for two parent families. This has widened the eligibility for that group of customers. I am pleased to have secured €84 million for the scheme this year.

The majority of payments will be paid automatically with no application required by the claimant, these payment will be made to some 120,000 families in respect of approximately 212,000 children during the week beginning 11 July to allow families sufficient time to prepare for back to school.

Families who have not received notification from the Department of an automated payment should make an application online on www.mywelfare.ie if they received a payment last year. The online application is currently opened and the closing date to apply is 30 September 2022.

Applicants outside the normal rules of the scheme may be considered for additional needs payments under the supplementary welfare allowance scheme administered by the community welfare service.

Ukraine War

Questions (168)

Christopher O'Sullivan

Question:

168. Deputy Christopher O'Sullivan asked the Minister for Social Protection if she will consider issuing refugees with a post office account so that they can access their social welfare payment from their local post office regardless of which town or area they are housed; and if she will make a statement on the matter. [27659/22]

View answer

Written answers

In accordance with the Temporary Protection Directive implemented in March 2022, people fleeing the war in Ukraine have been granted status to avail of the supports and services provided by my Department.

In engaging with people arriving from Ukraine, the Department's initial priority is the allocation of PPSNs and the provision of immediate financial supports. A fast-track approach in processing these supports includes a simplified decision-making process and quick processing of PPSNs to allow access to public services and income supports.

To allow payments to be made as quickly as possible, all applications for income support were initially set up to be paid in cash at post offices. Cash payments at post offices are one of the two main payment method options provided by my Department. People can also be paid directly into their account in either a bank, in An Post or in a credit union. The Department’s policy is, where possible, to offer people the choice of being paid in cash at the post office or directly into an account in a financial institution of their choosing.

Given the temporary and transient nature of accommodation for many of the people fleeing the war in Ukraine, it has proven to be more practical for many Temporary Protection recipients to be paid directly into an account by Electronic Fund Transfer (EFT).

My Department is working alongside other relevant Government Departments and Bodies, as well as with An Post and the Banking Payments Federation of Ireland (BPFI), in order to assist Ukrainians in obtaining payments and setting up accounts in financial institutions.

It would not be appropriate for my Department to give preferential treatment to one financial institution over another. By restricting payments to accounts in An Post, my Department would be in breach of EU Regulation 260/2012 (the ‘SEPA’ Regulation).

This regulation forbids restricting payments to a specific financial institution within the Single Euro Payments Area (SEPA). Therefore, it is not possible to favour An Post over any other financial institution licenced by the Central Bank of Ireland nor indeed to favour any Irish institution over one in another European Union member state or within the wider SEPA zone.

In Ireland, the Central Bank is the competent authority to ensure compliance with Regulation 260/2012. This regulation came into effect in Ireland in 2014. As the competent authority, the Central Bank of Ireland has the power to impose penalties on any Government Department for non-compliance with the Regulation.

My Department will continue to provide financial support to those people arriving from Ukraine, under the EU’s Temporary Protection Directive and in compliance with the SEPA Regulation.

I trust this clarifies matters for the Deputy.

Question No. 169 answered with Question No. 120.

Social Welfare Payments

Questions (170)

Peadar Tóibín

Question:

170. Deputy Peadar Tóibín asked the Minister for Social Protection the number of times that the fuel allowance has been increased since her Department was established; and if she will make a statement on the matter. [38778/22]

View answer

Written answers

The Fuel Allowance is a payment of €33 per week for 28 weeks (a total of €924 each year) from late September to April, which is supporting over 370,000 households in 2022, at an estimated cost of €366 million. The purpose of this payment is to assist these households with their energy costs.

The weekly rate of the Fuel Allowance payment has increased 8 times since its inception in 1988. This figure does not include temporary rate increases due to exceptional events such as adverse weather or Covid 19. The rate changes are as follows: -

Year

Rate

1988 - January 2001

£5

January 2002 - December 2005

€9

January 2006 - April 2007

€14

January 2007 - December 2008

€18

January 2009 - December 2015

€20

January 2016 - December 2019

€22.50

January 2020 - December 2020

€24.50

January 2021 - Oct 2021

€28.00

11th October 2021 - to date

€33.00

The duration of the scheme has increased 6 times since the establishment of the scheme (although the duration was reduced by six weeks in 2012). This figure does not include temporary duration increases due to exceptional events such as adverse weather or Covid 19.

Year

Duration

1988 - December 2000

26 weeks

January 2001 - December 2001

28 weeks

January 2002 - December 2007

29 weeks

January 2008 - December 2008

30 weeks

January 2009 to December 2011

32 weeks

January 2012 to December 2017

Duration reduced to 26 weeks

January 2018 to December 2018

27 weeks

January 2019 to Date

28 weeks

While the Department's schemes are reviewed on an ongoing basis, any further expansions to the Fuel Allowance scheme would have cost implications and could only be considered while taking account of the overall budgetary context and the availability of financial resources.

I hope this clarifies the matter for the Deputy.

Question No. 171 answered with Question No. 121.

Legislative Measures

Questions (172)

Ruairí Ó Murchú

Question:

172. Deputy Ruairí Ó Murchú asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans to implement the aspects of the EU Digital Services Act not included in the Online Safety and Media Regulation Bill 2022; and if he will make a statement on the matter. [39232/22]

View answer

Written answers

The Digital Services Act is expected to be adopted into EU law in October of this year. If so, it will apply in Ireland from mid 2023 for the very large online platforms and from 1 January 2024 for all other internet service providers that are in scope.

As the Digital Services Act is an EU Regulation, it will have direct effect in Ireland. That said, there may be some provisions that will need national measures in order to be operative here. Accordingly, my Department is assessing the DSA's text with a view to identifying which provisions will need supporting measures in national law, taking into account existing law as well as the Online Safety and Media Regulation Bill 2022.

The DSA includes an obligation on the State to designate a competent authority for implementing and enforcing the DSA in Ireland, known as the Digital Services Coordinator. The Government decided on 1 March 2022 that the new Media Commission, which will be established on a statutory basis by the Online Safety and Media Regulation Bill 2022, will be the Digital Services Coordinator. National legislation will be needed to give effect to that designation. My Department is preparing draft legislation with a view to having the Digital Services Coordinator in place by the time the DSA applies here.

Energy Prices

Questions (173, 174, 190)

Catherine Murphy

Question:

173. Deputy Catherine Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment if his attention has been drawn to the huge increase in energy bills for the restaurant and hospitality sector (details supplied); and the steps that he will take provide assistance and or relief in this sector. [39276/22]

View answer

Catherine Murphy

Question:

174. Deputy Catherine Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment if his attention has been drawn to the impact of rising energy costs for the restaurant and hospitality sector (details supplied); and his plans to address this in Budget 2023. [39422/22]

View answer

Catherine Murphy

Question:

190. Deputy Catherine Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment if he has engaged with the Minster for the Environment, Climate and Communications in respect of energy costs for restaurants and hospitality service providers; his plans to provide assistance to those businesses impacted; and if his attention has been drawn to the upsurge in energy costs for restaurants and hotels (details supplied). [39275/22]

View answer

Written answers

I propose to take Questions Nos. 173, 174 and 190 together.

I wish to assure the deputy that the Government is very conscious of what the rise in global energy costs means for Irish businesses, particularly small enterprises and those with tight margins, including those in the hospitality sector.

While electricity policy nationally is broadly the remit of the Minister for the Environment, Climate and Communications, our Departments have been engaging on this pressing issue. Energy costs are one of the prime factors in the increase in business costs to which the deputy refers, and we have already implemented several measures to help ease the impact on enterprises of energy price increases including reductions in VAT and excise on some fuels, as well as a temporary grant scheme to hauliers in the supply chain.

Minister Donohoe recently announced the extension of the 9% Value Added Tax (VAT) rate for the tourism and hospitality industry for a further six months; a measure for which €250 million is the estimated cost to the exchequer.

Government Departments have been consulting with stakeholders on specific measures that could be considered to ameliorate the short to medium term challenges to energy security. The Energy Supply Emergency Group is an inter-departmental and inter-agency group with responsibility for informing the Government response to the impact of rising energy costs on business, security of energy supply more generally, and a longer-term reduction in Ireland’s dependency on imported oil and gas.

Under the aegis of this Group, my Department has established the Business Energy Users Sub-Group to lead on consultations with business and industry to learn about the specific impacts on Irish businesses, and to hear their concerns and perspectives on the appropriate and most effective tools for policy action. The work of this sub-group, as part of the wider Energy Supply Emergency Group has informed the National Energy Security Framework which was launched by the Government on 13th April 2022.

Furthermore, my Department is discussing competitiveness and price inflation for enterprises with the Department of the Environment, Climate and Communications. To deliver price competitiveness over the medium-term, Government is determined to deliver a diversified energy system, with significant support for energy efficiency and renewables, alongside independent regulation that protects consumers and delivers efficient, competitive energy retail and wholesale markets.

At present, a range of supports are available to households and businesses ranging from practical advice to financial supports. These can be viewed on my Department’s website at enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/Energy-supports/Energy-supports-for-business.html.

Practical advice includes the Climate Toolkit 4 Business, launched late last year by my Department and the Department of the Environment, Climate and Communications. This allows SMEs to input simple information to get an estimate of their carbon footprint and a personalised action plan to reduce it.

From the Local Enterprise Offices, the Green for Micro initiative offers mentoring to micro-enterprises looking to become greener. Additionally, the Lean for Micro scheme works with clients of the Local Enterprise Offices to help build resilience.

The Sustainable Energy Authority of Ireland (SEAI) provides direct grants such as the support scheme for renewable heat, project assistance grants, the EXEED grant scheme, tax incentives available through the Accelerated Capital Allowance, and funding for energy audits. Further training is available via the SEAI’s Energy Academy.

Finally, there are loans available for businesses absorbing the numerous economic shocks of recent years. The Strategic Banking Corporation of Ireland offers the Brexit Impact Loan Scheme, offering loans from €25,000 to €1.5m, and the Credit Guarantee Scheme for businesses responding to the impact of COVID-19. These loan facilities may also be helpful to businesses struggling with increased energy costs. Microenterprises can also avail of loans of up to €25k from Microfinance Ireland which they may not be able to avail of from commercial lenders.

Question No. 174 answered with Question No. 173.

Enterprise Policy

Questions (175, 193)

Pádraig O'Sullivan

Question:

175. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment if there will be any grants or supports offered to businesses that are struggling with inflation costs (details supplied); and if he will make a statement on the matter. [38871/22]

View answer

Pádraig O'Sullivan

Question:

193. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment if any supports will be provided to food retailers (details supplied); and if he will make a statement on the matter. [39566/22]

View answer

Written answers

I propose to take Questions Nos. 175 and 193 together.

The Government is very aware of the impact of rising prices on Irish businesses.

As Chair of the Retail Forum, I have heard first-hand about the challenges which retail businesses, including food retailers, are facing.

Energy costs are one of the prime factors in the increase in business costs. Given that Ireland is a price taker on international energy markets, the Government has no statutory function in the monitoring or setting of these prices. However, Government has put in place a suite of targeted measures aimed at reducing the burden of these cost pressures, both for businesses and households. Given the volatility of fuel prices, it is important that measures are sustainable and targeted.

The Government has implemented several measures to help ease the impact on enterprises of energy price increases including:

- a reduction in the rate of VAT on gas and electricity from 13.5% to 9% until the 31st of October;

- a temporary reduction in the excise duties charged by 20 cent per litre of petrol, 15 cent per litre of diesel, and 2 cent in the excise duty charged on marked gas oil;

A range of cross-sectoral supports and grants to mitigate the effects of rising energy costs on households and businesses are available.

Businesses can view the supports on my Department’s website at enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/Energy-supports/Energy-supports-for-business.html

Loans are available for businesses absorbing the numerous economic shocks of recent years. The Strategic Banking Corporation of Ireland offers the Brexit Impact Loan Scheme, offering loans from €25,000 to €1.5m, and the Credit Guarantee Scheme for businesses responding to the impact of COVID-19. These loan facilities may also be helpful to businesses struggling with increased energy costs.

Microenterprises can also avail of loans of up to €25k from Microfinance Ireland which they may not be able to avail of from commercial lenders.

Separately, my Department is encouraging and supporting firms to make investments in increased energy efficiency and a reduced carbon footprint, through a number of measures available through SEAI, including direct grants such as the support scheme for renewable heat, project assistance grants, the EXEED grant scheme, tax incentives available through the Accelerated Capital Allowance, and funding for energy audits. As an energy intensive sector, engaging with these supports is vital for retail for now and for the future.

Earlier this year, I established a Working Group on the Green Transition under the Retail Forum to work with the sector to support its transition to become a sustainable sector. As a first step, I would encourage all retailers to complete the Climatetoolkit4business to assess their carbon emissions and access supports to reduce their carbon footprint. The toolkit is available on my Department’s website.

Through our Local Enterprise Offices the Green for Micro initiative offers mentoring to micro-enterprises looking to become greener. It offers green transition advice and technical support to a wide range of micro-enterprises with 10 or fewer employees, including those operating in the retail sector. This support is free of charge for eligible enterprises and represents the potential for increased efficiencies within companies that adopt these principles.

Additionally, the main purpose of this year’s budget will be to address the rising cost of living in the country. Budget 2023 will provide an overall package of €6.7 billion, representing additional public spending of €5.65 billion and taxation measures amounting to €1.05 billion (an increase of €2.2 billion against what was originally budgeted).

I will forward a copy of this correspondence to the Department of Finance also in relation to items raised which fall under the responsibility of that Department.

Industrial Development

Questions (176)

Alan Dillon

Question:

176. Deputy Alan Dillon asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will provide an update on a project (details supplied); and if he will make a statement on the matter. [38878/22]

View answer

Written answers

As the Deputy is aware, the timely provision of appropriate and cost-effective property and infrastructure solutions to meet the needs of multinational companies is essential to winning Foreign Direct Investment. Over the past 5 years, the IDA’s Regional Property Programme has enabled the winning of capital-intensive projects of significant scale to regional locations. There are now 94 IDA supported companies in Galway City and County, employing a total of 22,801 people.

IDA Ireland actively promotes available buildings and land in IDA Business Parks and high-quality buildings in private ownership through its network of overseas offices. In Galway, IDA has invested significantly in the provision of world-class property solutions. I have been advised that IDA Ireland do not currently have plans to purchase additional lands while the Agency is marketing the available lands to potential investors.

Ballinasloe is marketed as part of the West Region. This provides scale and scope, which gives confidence to the investor that they will be able to establish themselves outside of a main city area and manage to secure talent and services to make their business work. IDA markets the West Region to the Life Sciences, Technology and Global Business Services sectors.

IDA continues to market the available lands (c.21.94 acres) on the IDA business and technology park in Ballinasloe to potential investors, including the advanced planning permission for an Advanced Technology Unit on these lands. IDA and Ballinasloe Area Community Development recently completed a joint venture to secure planning for an Advance Technology Unit, which IDA Ireland is marketing as a potential flexible property solution for the region.

Departmental Expenditure

Questions (177)

Louise O'Reilly

Question:

177. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment further to Parliamentary Question No.163 of 14 June 2022, the estimated cost to the Exchequer of enacting an additional bank holiday. [38909/22]

View answer

Written answers

From next year the Government is introducing a new permanent public holiday in celebration of Imbolc/St. Brigid’s day. This will be the first Monday in every February, except where St. Brigid’s day, the 1st day of February, happens to fall on a Friday, in which case that Friday 1st February will be a public holiday. The Government wants to ensure that the public holiday provides for a long weekend. The first St. Brigid’s day public holiday will be Monday 6th February 2023.

An additional public holiday may impact in terms of cost to the Exchequer broadly in two ways. First, it might result in lower tax receipts due to any associated reduction in economic activity. Second, there would be a notional cost in terms of lost labour hours.

Due to lack of data, it is not possible to generate a historical estimate for the impact of a one-off public holiday using Irish data. Previous analysis by the UK Office for National Statistics estimated the economic impact of an additional one-off public holiday would reduce annual gross national income by between 0.3% and 0.4%. Assuming that this reduction in economic activity is passed through in terms of reduced tax revenue on a pro rate basis – which may not be the case – this would indicate a cost to the Exchequer of between €220 million and €300 million. This estimate is based on forecast tax revenue for 2022 of €75.8 billion, from the Department of Finance’s spring economic forecasts as set out in the Stability Programme Updae.

The second cost to the Exchequer would be in terms of lost work hours resulting from the public holiday. While, in practice, a sizeable portion of the public service will continue to work on a public holiday, there will be additional entitlements to time off in lieu. The Revised Estimates for Public Services 2022 estimates an Exchequer pay bill of €21.9 billion for 2022, or just over €60 million per day – which provides an estimate of the cost to the Exchequer of a public holiday. It is emphasised that these costs are notional in the main and will not lead to additional expenditure for the Exchequer. A large part of the public service is salaried, and so their pay and subsequently the cost to the Exchequer will be the same irrespective of a public holiday. These numbers only provide an indicative estimate of the potential economic cost of an additional public holiday to the Exchequer and do not capture positive aspects including benefits of leisure from an additional day off for many, as well as any further community and societal benefits.

Departmental Bodies

Questions (178)

Louise O'Reilly

Question:

178. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will provide a list of the agencies under the auspices of his Department with underspends for each of the years 2021 and to date in 2022, in tabular form. [38910/22]

View answer

Written answers

The table below sets out the list of underspends incurred by the Agencies under the auspices of this Department at the end of 2021 and against profile to the end of May 2022.

Agency name

Underspend end 2021

Underspend against profile end May 2022

€,000

€,000

InterTrade Ireland

-11

n/a

IDA Ireland

-33,600

-10,000

National Standards Authority of Ireland

-1,973

-190

Enterprise Ireland*

-121,838

-14,832

Local Enterprise Office

-9,662

n/a

Health and Safety Authority

-2,333

-180

Competition and Consumer Protection Commission

-2,713

-633

Personal Injuries Assessment Board

-54

n/a

Irish Auditing and Accounting Supervisory Authority

-540

-22

Total

172,724

25,857

*Includes Subheads A7 and B4, which span general supports to indigenous firms and for research and development/innovation supports. Also included are Subheads A15, A17 and B8 which are administered through Enterprise Ireland.

The underspends by the aforementioned Agencies of my Department were mainly in the area of capital expenditure. In this regard my Department was allocated significant additional non-core capital funding in 2021 to assist it and the Agencies concerned in the battle against Covid-19. One of the primary factors giving rise to the underspend in 2021 was the progress made in reopening the economy, which meant that less of the additional non-core funding was required to be expended by the Agencies concerned.

Insofar as 2022 is concerned, whilst expenditure of a number of the Department’s Agencies is behind profile as at the end of May, this is not necessarily an indicator of an underspend at year-end. The timing of drawdowns of capital monies can vary for many reasons resulting in an under or overspend against profile at a particular point in time.

Public Sector Pensions

Questions (179)

Dara Calleary

Question:

179. Deputy Dara Calleary asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of staff who are abated under his Department in accordance with the Public Service Pensions (Single Scheme and Other Provisions) Act 2012, in tabular form.; and if he will make a statement on the matter. [38949/22]

View answer

Written answers

According to our records, we do not currently have any member of staff subject to abatement pursuant to the Public Service Pensions (Single Scheme and Other Provisions) Act 2012. We issue new entrants with a declaration regarding any previous service that they may have in the public/civil service and request that they declare any applicable pension in payment. We are currently evaluating one new entrant in the Department for abatement purposes.

Industrial Development

Questions (180, 181, 183)

Claire Kerrane

Question:

180. Deputy Claire Kerrane asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of visits made by the IDA to County Roscommon and each location visited in 2020, 2021, and to date in 2022. [39050/22]

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Claire Kerrane

Question:

181. Deputy Claire Kerrane asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of visits made by the IDA to County Galway and each location visited in 2020, 2021, and to date in 2022. [39051/22]

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Claire Kerrane

Question:

183. Deputy Claire Kerrane asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of visits to a site (details supplied) by the IDA; the level of interest in same site; and if he will make a statement on the matter. [39053/22]

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Written answers

I propose to take Questions Nos. 180, 181 and 183 together.

2021 was a record-breaking year for Foreign Direct Investment (FDI) employment, with total employment in IDA client companies now standing at 275,384, up over 29,000 on 2020. Growth in the regions was particularly buoyant with 53%, that is 133 projects of the 249 investments won going to regional locations and employment growth was recorded in every region of the country.

Galway and Roscommon, along with Mayo, make up IDA's West Region, which showed 6% growth on the previous year. There are 120 IDA client companies employing 29,419 people directly in this region.

The strong growth in regional investment throughout 2021 and to date in 2022 is supported by IDA Ireland’s Regionl Property Programme. A robust property and infrastructure ecosystem can be the key differentiator in winning FDI projects.

IDA Ireland continues to engage with new companies on promoting Ireland as a location for their business utilising virtual site visits as well as physically visiting the county. Site visit details are recorded on a county basis, and I am advised that the verified figures for Q2 will be available next month. The numbers of site visits to both Galway and Roscommon for 2020, 2021 and to Q1 2022 are shown in the table below:

-

2022 Q1

2021

2020

Galway

4

4

6

Roscommon

2

0

0

Ballinasloe is marketed as part of the West Region. This provides scale and scope, which gives confidence to the investor that they will be able to establish themselves outside of a main city area and manage to secure talent and services to make their business work. IDA markets the West Region to the Life Sciences, Technology and Global Business Services sectors.

IDA continues to market the available lands on the IDA business and technology park in Ballinasloe to potential investors, including the advanced planning permission for an Advanced Technology Unit on these lands.

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