Written Answers Nos. 141-160
142. Deputy Paul Murphy asked the Minister for Rural and Community Development the increase in funding that she will provide for services and supports for community and voluntary organisations to enable them to address the recruitment and retention crisis in the sector; and if she will make a statement on the matter. [45132/22]
View answerThe Government's five-year strategy to support the community and voluntary sector, Sustainable, Inclusive and Empowered Communities, was published in 2019. This is a whole of government strategy led out by my Department, which is implemented collaboratively with the sector through the Cross Sector Group on Local and Community Development.
This Strategy is important in seeking to strengthen the community development, local development and community and voluntary sectors generally. It reaffirms the Government’s commitment to supporting the sector, whilst also recognising the reality of finite resources and the need to ensure that available resources are focused on providing effective services.
The strategy sets out a long-term vision for the sector and implementation will require an incremental building of supports over the strategy period and beyond.
Significant work is already underway, with the launch of the National Volunteering Strategy in December 2020, the introduction of a pilot Community Development Programme and the agreement of a set of Values and Principles for Collaboration and Partnership Working with the Community & Voluntary Sector, to name just a few.
Another key action in the strategy is the establishment of a Civic Forum for formal dialogue between the sector and local and central government. My Department is working on the design of this Forum, which will take place later this year. The Forum will be developed in collaboration with the community and voluntary stakeholders and its work will be underpinned by the recently agreed values and principles.
My Department’s Community Services Programme, or CSP, currently supports over 430 community organisations to provide employment opportunities and the delivery of a diverse range of local services, through a social enterprise model.
The CSP contribution is not aligned to the minimum wage and does not meet the full salary cost of supported posts, rather it is a fixed annual contribution towards the overall cost of the employees with funding of €19,033 currently provided for each full time equivalent (FTE) position and €32,000 for a manager, where warranted.
The CSP contribution must be co-funded by the organisation concerned from other sources, for example, from income received from the public use of their facilities and services.
Following an independent review of the CSP, the programme is currently being redesigned. As part of the restructuring process, I have recently approved a new funding rate allocation model for the CSP based on three weighted criteria, as an alternative to the current flat rate payment model. This will provide a sustainable funding model for the CSP Programme, taking account of the earning potential of the funded organisations.
The revised funding rates to apply from January 2023 under the restructured programme have not yet been finalised. It is anticipated that all existing organisations will transition to the new programme in January 2023 following an application process which will open in the coming weeks.
My Department is one of many Departments and public agencies that provide funding which supports the employment of staff within the community and voluntary sector.
143. Deputy Holly Cairns asked the Minister for Rural and Community Development her views on increasing the annual funding for the Leader programme. [44967/22]
View answerThe LEADER programme is a key intervention implemented by my Department, which will help to underpin the Government's rural development goals as outlined in Our Rural Future.
Funding is provided for the duration of the period rather than on an annual basis to allow more flexibility to the Local Action Groups to manage the programme budget in their areas of operation.
€250m has been made available for LEADER for the period 2021 to 2027. This is comprised of €70 million for the transitional period 2021 to 2022 which came into effect on 1 April 2021 and an additional €180 million from 2023 to 2027. This level of funding is evidence of the Government’s continued support for the LEADER programme.
It is important to recognise that LEADER is a multi-annual programme and that payments in respect of projects which are approved in any given year are generally not drawn down until subsequent years, as projects are completed and payment claims are submitted. Therefore, costs related to projects approved and completed are met from the provision in my Department’s Vote on an annual basis.
I have also previously provided additional Exchequer funding for LEADER Groups administration in 2022 where they have exhausted their original funding, and I have recently confirmed that this funding will be made available again in 2023 as required.
I am confident that the level of funding allocated for the 2021-2027 programming period is sufficient to meet the demand for grant funding from rural communities and businesses and to continue the effective operation of the LEADER programme.
144. Deputy Peadar Tóibín asked the Minister for Rural and Community Development if she will provide an update on the streetscape enhancement initiative. [44619/22]
View answerLast year I introduced the Streetscape Enhancement Measure, which is a measure as part of the wider Town and Village Renewal Scheme. The measure is administered on behalf of my Department by the local authorities. It is targeted at towns or villages with populations of up to 15,000 people.
The improvement of the visual appearance of our streetscapes, increases pride and confidence in our towns and villages, making them more attractive places to live, work and do business.
The Streetscape Enhancement Measure provides support for project proposal for one town or village per eligible local authority which may include activity such as painting (including murals), signage replacement, shopfront improvement, lighting, and canopies.
I allocated €2.6 million this year under the Measure and on the 30th August I announced the successful nominated towns for 2022. Local authorities must now finalise the project proposals in these towns. In order to allow sufficient time for local authorities to engage with stakeholders and prepare the proposals the deadline for submission is Friday, 7th October 2022 . Local authorities have until 30th September 2023 to complete the approved works.
145. Deputy Claire Kerrane asked the Minister for Rural and Community Development if she will provide an update the Islands Strategy; when the strategy will be published; and if she will make a statement on the matter. [44714/22]
View answerAs the Deputy will be aware, the Government is committed to publishing a 10 year policy on island development with associated three year action plans.
In December 2019, the Government launched a consultation paper with input from the participating Departments to act as a basis to advance the development of an island policy. The Government’s ambition in a national policy and action plan for the islands was set out in chapter 10 of Our Rural Future, the Action Plan for Rural Development 2021-2025, published in 2021.
The most recent meeting of the Interdepartmental Committee for the Islands was held on 22 June 2022, where it was agreed that committee members would review their own Department’s draft input and revert with revised actions where appropriate.
The next meeting of the Inter-Departmental Committee is scheduled for early October, where it is expected Committee members will be able to share their feedback, observations and recommendations regarding the initial draft of the policy.
My Department is continuing to engage with relevant Government Departments and State bodies to assess how they might help address the various issues raised by island communities during this consultation process.
An initial draft of the policy is nearing completion. It sets out the context for the policy, provides a high-level analysis of the current opportunities and challenges and defines strategic objectives.
The policy and action plan is due to be completed in the coming months and it is my intention to have it published by the end of the year.
146. Deputy Paul Donnelly asked the Minister for Rural and Community Development when the new legislation in relation to the Charities (Amendment) Bill 2022 will come before the House of the Oireachtas for debate. [44556/22]
View answerMy colleague Minister Humphreys published the Charities (Amendment) Bill on 29 April 2022.
The Bill proposes to update existing charity law to improve the ability of the Charities Regulator to conduct its statutory functions and ensure greater public trust and confidence in the sector. It is important that we strike the right balance between necessary regulation and proportionate governance, ensuring that a reasonable and fair approach is at its core.
The Bill is currently under consideration by the Joint Committee on Social Protection, Community and Rural Development and the Islands. I look forward to working with members of both Houses of the Oireachtas to enable the passage and enactment of this Bill, as speedily as possible.
147. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he continues to examine the possibility of further enhancement to the role of local enterprise offices; and if he will make a statement on the matter. [45370/22]
View answerThe Programme for Government committed to examining the role of the Local Enterprise Offices in these specific areas:
- Expand the role of the Local Enterprise Offices, so they can go further in supporting local job creation and allow them to provide direct grant support to businesses with more than 10 employees.
- Put in place the structures to enable a seamless transition from the Local Enterprise Offices to Enterprise Ireland, so that ambitious and high-performing companies, regardless of size, are supported in scaling and achieving their potential.
- streamline the process when applying for Local Enterprise Office or Enterprise Ireland support, so that SMEs have a clear roadmap of progression
In response to this Commitment, my Department is ensuring comprehensive and joined up agency support for SMEs. Earlier this year, the Enterprise Ireland strategy 2022-2024 set out a commitment to ensure a continuation of support for enterprises that have grown to ten or more employees, as appropriate to their stage of development and growth ambition. In particular, Enterprise Ireland working with the Local Enterprise Offices, will ensure that companies of all sizes are assisted on their development journey, maximising their growth and job creation potential.
Enterprise Ireland and the Local Enterprise Offices are currently developing a framework to extend financial supports to clients who are manufacturing and internationally traded services companies, employing more than 10 full time employees and are focused on internationalising their products or services.
Building on the existing linkages, work has already begun on putting in place the structures to enable a seamless transition from LEO to Enterprise Ireland and to provide enterprise supports to businesses that have grown to ten or more employees.
Furthermore, GreenStart, introduced under the Climate Enterprise Action Fund, will be offered by the Local Enterprise Offices to two categories of businesses in 2022.
- Businesses with over 10 employees in the manufacturing and internationally traded services sector, who are not EI clients
- Businesses with fewer than 10 employees in the manufacturing and internationally traded services sector who have already had a GreenforMicro – Green Start will be a follow-on intervention to allow for a deeper dive
It will provide 80% grant support, up to a maximum of €5,000, towards the cost of hiring a Green Service Provider for seven days to undertake an in-company assignment.
DigitalStart is a programme for LEO clients that is also now open to businesses in the manufacturing and internationally traded services sectors with up to 50 employees in consultation with the LEO. The objective of Digital Start, is to help businesses prepare and implement a plan for the adoption of digital tools and techniques across the business. Digital Start will provide strategic intervention for businesses to work with third party consultants to:
- assist them with identifying where they are on their digital business journey,
- develop a digital adaptation plan based on their identified need,
- implement their digital adaptation plan.
148. Deputy Paul McAuliffe asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of jobs created in financial services over the past two years; and if he will make a statement on the matter. [29751/22]
View answerMy Department compiles official statistics on clients of the enterprise development agencies only. For enterprise agency client companies (Enterprise Ireland, IDA Ireland and Údarás na Gaeltachta clients) there was a net increase of 2,815 jobs in the Financial Services Sector between 2019 and 2021. This represents a percentage increase of 8.3% in the two years to 2021. The total number employed in Financial Services in agency client companies in 2021 was 36,829. This number is based on a methodology agreed with the CSO. Table 1 sets out the relevant data.
Table 1: Financial Services employment, enterprise agency clients firms, 2019-2021
|
- |
2019 |
2020 |
2021 |
Net Change 2019-2021 |
% Change 2019-2021 |
|
Permanent Full Time Jobs |
30,834 |
31,903 |
34,013 |
3,179 |
10.30% |
|
Other Jobs |
3,180 |
3,063 |
2,816 |
- 364 |
-11.40% |
|
Total Jobs |
34,014 |
34,966 |
36,829 |
2,815 |
8.30% |
Source: DETE, Annual Employment Survey
Note the Department of Finance Ireland for Finance Action Plan 2022 reports a higher figure for employment in Financial Services in Ireland of 52,800 in 2021. The difference arises because there are enterprise agency clients who undertake activities in other NACE sectors such as Business Services, Computer Consultancy and Information and Communications Technology that are classified as financial services and so these figures are counted as Financial Services jobs.
149. Deputy Mark Ward asked the Tánaiste and Minister for Enterprise, Trade and Employment the supports that are in place for workers to combat the cost-of-living increases and additional expenses that workers have accrued. [45194/22]
View answerIt is understandable that workers are concerned about the rising costs they are seeing and experiencing currently. The impact of rising prices is not unique to Ireland, and is facing all major economies around the world.
The Government has been proactive in limiting the fallout from higher rates of inflation. Budget 2022 contained a large range of measures to protect households from the rising cost of living, including a personal income tax package worth €520 million and a social welfare package of over €550 million.
This has included:
- Fuel Allowance has been increased by €5 per week;
- There were increases in the allocation of Early Learning and Care and School-Age Childcare to ensure childcare prices do not rise;
- Temporary 20% reduction in public transport fares applicable from April until the end of the year;
- A reduction of the drug payment scheme to €80;
- The working family payment increase announced on Budget Day was brought forward from 1 June to 1 April;
- Most recently, the Government’s focus has been on providing supports to households to reduce the impact of rising energy costs. This has included: reduction in the rate of VAT on gas and electricity from 13.5% to 9% until the 31st of October,
- A €200 credit to every domestic electricity account between April and June 2022
- 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.
Yesterday, we announced a significant increase in the minimum wage from next January. Further measures are being considered for introduction as part of Budget 2023.
151. Deputy Denis Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of persons within his Department who received the special leave with pay for Covid-19 up to 1 July 2022; the number of workers who have availed of this payment for an extended period of 12 weeks or more; the number of persons who availed of the special leave with pay for COVID-19 since 1 July 2022; the number of such persons who have been in receipt of this payment in excess of 14 days; and if he will make a statement on the matter. [45315/22]
View answerThe number of instances associated with persons within my Department that received special leave with pay for COVID-19, set out in the categories requested by the Deputy is as follows:
|
Numbers up to 1 July 2022 |
291 |
|
Numbers for an extended period of 12 weeks or more |
1 |
|
Numbers since 1 July 2022 |
37 |
|
Numbers in receipt of the payment for a period in excess of 14 days |
22 |
152. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which work permits continue to be processed in line with the demand with particular reference to such areas as health and other posts; and if he will make a statement on the matter. [45377/22]
View answerThe employment permits system is designed to facilitate the entry of appropriately skilled non-EEA nationals to fill skills and/or labour shortages, in circumstances where there are no suitably qualified Irish/EEA nationals available to undertake the work and that the shortage is a genuine one. The system is managed through the use of lists designating highly skilled and ineligible occupations.
Changes I announced in June last year were aimed at addressing the shortages being experienced in private and voluntary nursing home establishments and hospital settings by providing access to the employment permits system. These employers can apply for the General Employment Permit for non-EEA nationals wishing to take up employment in the State as a Nursing Auxiliary or Assistant (Health Care Assistant ). From the start of January to date the Department has issued 1,873 employment permits to Health Care Assistants (HCA), of this figure 1,781 were issued to HCAs in a Nursing Home setting. These roles were distributed across 193 Nursing Homes throughout the State.
In addition, to help alleviate some of the ongoing skills shortages I announced further changes in June this year to enhance access to employment permits for other key professional roles in the health sector such as Occupational Therapist, Physiotherapist, Podiatrist and Chiropodist. Employment in these occupations is now eligible for the Critical Skills Employment Permit which is the employment permit type used to attract highly skilled professionals into the State to reside and take up employment in key occupations.
It is important to point out that from the outset of the Covid-19 pandemic all employment permit applications for medical personnel have been expedited in order to assist the State to respond to the threat of Covid-19.
The Department experienced a significant increase in applications for employment permits in the past year and a half, which impacted on processing times. From the start of January to the end of December 2021, some 27,666 applications were received, representing a 69% increase over the same period in 2020 (16,293) and a 47% increase on 2019 (18,811), which itself represented an 11 year high in applications. 16,275 employment permits were issued in 2021, and a total of 17,968 applications processed, which represents a significant volume of activity. This increased demand was also driven by the extension of categories of employment permits following the Review of the Occupational Lists in October 2021.
In total over 6,800 employment permits have been issued for roles in the healthcare sector since the start of the year.
The Department and I recognised the impact delays in the processing times for employment permits has had for businesses and their workers. Therefore, an internal plan of action was implemented which has increased resources and introduced more efficient methods of processing applications in the permits system. The processing team has trebled in size and daily output has more than tripled compared to 2021 levels.
Since the implementation of this plan, the Employment Permits Unit has made positive progress by reducing the number of applications awaiting processing from c. 11,000 in January 2022 to under 2,500 today, despite further strong growth in demand during 2022.
Processing times for all Critical Skills applications are at 3 weeks. General Employment Permit applications for Trusted Partners are currently taking 3 weeks while standard applications stand at 4 weeks.
153. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which full restoration and availability of jobs lost through Covid-19 is being achieved at present; if there are still issues outstanding that can be helpful to employees and employers; and if he will make a statement on the matter. [45378/22]
View answer159. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which staff remain available to return to their respective employment post-Covid; if any specific challenges have arisen in this regard; and if he will make a statement on the matter. [45384/22]
View answerI propose to take Questions Nos. 153 and 159 together.
When we launched the Economic Recovery Plan last year, we set a goal of achieving 2.5 million people in employment by 2024. The Plan not only aimed to recover employment lost during the pandemic but to promote new employment opportunities through increased labour market activation and by accelerating the provision of training, reskilling and upskilling opportunities.
According to the latest available national figures, from the Central Statistics Office’s Labour Force Survey, employment levels reached 2.55 million in Q2 2022. We now have more people employed in our country than ever before, while the quarterly unemployment rate stands at 4.4% - levels not seen since 2005. These results are a testament to the hard work and resilience of the Irish people and enterprise. The rate of growth since the beginning of 2021 has been remarkable. Since Q1 2021, the number of people in employment has grown by 324,000 (14.5%).
It has been especially welcome to see a strong recovery in the Accommodation and Food Service sector, with employment in this sector increasing by 68% since the start of 2021. The impact of the pandemic was not equal across sectors, and those in the Hospitality sector were significantly affected. Our strong policy interventions during the pandemic – rapidly rolling out the Employment Wage Subsidy Scheme and Pandemic Unemployment Payment – appear to have minimised any long-term labour market scarring in the sector.
Much of the recent increase in employment has been driven by record levels of female labour market participation. There is currently a record-high 1.19 million women in employment – an increase of 164,400 since the start of 2021. As well as continued funding increases for early learning and childcare, interventions through Making Remote Work, our national Remote Work Strategy and Pathways to Work 2021-2025, have assisted in addressing obstacles to labour market inclusion for women.
As we approach full employment, one challenge for businesses will be recruiting talent with the right skills - this is particularly important in the context of the dual green and digital transitions. As set out in the Economic Recovery Plan , the Government continues to roll-out thousands of additional re-skilling and upskilling opportunities to steer employees and employers through employment transitions, while my Department also operates an employment permit system which is highly responsive to areas of identified skills needs and labour shortages across the economy.
I recognise that these employment figures do not tell the lived experience for some, and many people are struggling and worried about the future. My Department have been making huge improvements to workers’ rights this year, including introducing statutory sick pay, the right to request remote working and, starting next year, moving to a living wage, all of which will enhance employment security, flexibility and make sure work pays. These rights, coupled with new cost-of-living measures due to be announced in Budget 2023, will help with what will be a difficult winter ahead.
154. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which a full evaluation has been done of the needs of small and medium enterprises with a view to offering the maximum support possible in order to combat the problem of rising costs; and if he will make a statement on the matter. [45379/22]
View answerThe Government is very aware of the economic challenge of escalating prices, in particular energy prices, and has put in place measures to assist businesses, including small and medium enterprises. I and my Department are working with Minister Ryan, the Department of the Environment, Climate and Communications, and across Government, to manage our response to the energy situation as it develops.
In June 2022, my Department undertook an analysis of sectoral energy consumption and each sector’s mix of energy types, in order to identify those sectors with a higher exposure to rising energy costs. This analysis did not examine exposure to energy costs on the basis of firm size, however I have engaged with representatives of smaller and medium sized businesses on rising energy costs through multiple fora to ensure that their views are raised in formation of our policy response.
My Department convenes the Business Energy Users Sub-group which was set up to assess the impacts of rising energy costs on businesses and to help inform the Government response. This includes business representative groups, as well as officials from my Department and the Department of Environment, Climate and Communications, Enterprise Ireland, and IDA Ireland. The group has met on three occasions to date and most recently met on the 8th of September to update members on the response so far and hear views of members.
Other fora where the cost of doing business and energy costs in particular were discussed with the business community include the:
- Labour Employer Economic Forum on the 7th of September which I attended along with the Taoiseach;
- SME and State Bodies Group on the 13th of July which I chaired with the Minister for Finance;
- Enterprise Forum which I chaired on the 29th of June;
- Retail Forum chaired by Minister of State for Business, Employment and Retail, Damien English on the 8th of June;
- Hospitality and Tourism Forum chaired by myself and Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Catherine Martin TD on the 12th of September.
My Department continues to engage with other Departments and Agencies to identify the scale and impact of energy price increases on firms, including small and medium enterprises. Measures are also being actively explored at a European level to tackle the costs of energy to business, while further actions are being considered for introduction under Budget 2023.
155. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the degree to which any evaluation has taken place on foot of price increases that put in the economy and jobs in jeopardy; and if he will make a statement on the matter. [45380/22]
View answerThe top competitiveness challenge facing enterprise today is the high inflation environment and rising input prices. Many small and medium businesses around the country are seeing their margins squeezed by the rising costs of doing business, and in particular the significant increases in energy costs. The Wholesale Price Index for energy products rose by almost 78 per cent in the year to July 2022, and this spike is becoming apparent in the costs of energy intensive businesses. This is not unique to Ireland and is an issue facing all major economies around the world.
Analysis from my Department suggests that 120,000 people are directly employed in gas-intensive manufacturing sectors, with a further 275,000 employed in oil-intensive sectors. That is where gas or oil is used to meet 40 per cent, or more, of that sector’s energy requirement. Exposure to electricity price increases is more broad-based across all economic sectors. As wholesale gas prices drive changes in electricity costs to a significant degree, there is a wider range of sectors with an indirect exposure to changes in gas prices.
While it is useful to consider the numbers employed and the energy intensity of the economic sectors to gain a broad understanding of sectoral exposure to energy, it would be incorrect to imply that all jobs in energy intense sectors are at risk. Any potential employment impacts would depend on decisions taken at the firm level and are, therefore, very difficult to predict given the individual nature of each firm’s cost base.
Ireland imports over 70 per cent of our energy needs and the Government cannot fully insulate businesses from price developments in international energy markets that are mostly outside of our control. However, measures have included a reduction in the rate of VAT on gas and electricity from 13.5 per cent to 9 per cent until the 31st of October; and 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. Measures are also being actively explored at a European level to tackle the costs of energy to households and business, while further actions are being considered for introduction under Budget 2023.
My Department continues to engage with other Departments and Agencies to identify the scale and impact of energy price increases on firms, including small and medium enterprises. Measures are also being actively explored at a European level to tackle the costs of energy to business, while further actions are being considered for introduction under Budget 2023.
156. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the action that can be taken to ensure that multiple price increases leading to severe costs of living issues are in any way challenged as to their reasons for such increases; and if he will make a statement on the matter. [45381/22]
View answerIn relation to the remit of my Department which includes responsibility for competition and consumer rights law, the Competition and Consumer Protection Commission (CCPC) is the independent statutory body responsible for promoting compliance with, and enforcing, competition and consumer protection law in Ireland.
In relation to the CCPC’s mandate in this area, their role is to ensure that prices are set independently by competing businesses, and those prices are then prominently displayed at the point of sale thereby enabling consumers to make informed choices about which supplier offers the best value. The CCPC do not tell businesses what prices to charge. Generally, traders in Ireland are free to set and change their prices for goods and services. Lower prices play a key role in attracting consumers, and traders compete to keep their prices low enough to attract consumers.
When the CCPC receive complaints on pricing, they assess them to see if they indicate a possible breach of one of the areas of competition or consumer protection law that the CCPC is tasked with enforcing. They take action on their own initiative when they suspect there may have been a breach. However, they cannot investigate behaviour which a consumer regards as unfair unless the behaviour may breach the law.
In a market economy like ours, businesses are free to set prices in line with market conditions, provided they are not in a dominant position in the market, and provided they do this without colluding with competitors. Excessive pricing may be illegal if a business is in a dominant position, where it faces little competition, and its customers have little bargaining power. When a business is dominant, it is not allowed to abuse its position. Businesses and their pricing decisions are constrained by the need to compete rather than by any legal obligation.
It is illegal for competing businesses to form a cartel - that is, an agreement to fix prices - or to agree a common pricing policy or to carve up a market in order that they do not have to compete. It is also illegal for businesses to share information about their future pricing intentions. Wholesalers may not dictate the retail prices charged for their products by independent retailers. As long as businesses do not collude, however, they are free to set their own prices and may observe their competitors' prices and adjust their own prices accordingly.
When the CCPC receives complaints about pricing it assesses them to see if they indicate a possible breach of competition or consumer protection law. The CCPC can take enforcement action if an investigation uncovers sufficient evidence of a breach. The nature of enforcement action depends on the type of the breach and the nature of the evidence but can include referral to the Director of Public Prosecutions for a criminal prosecution.
Certain sectors due to their nature and their systemic importance (for example, energy) are regulated by specific sectoral regulators who can influence the pricing decisions of providers in that regulated sector.
Turning to my Department's remit, we have been to the fore in updating and expanding our laws on consumer rights and competition.
The Competition (Amendment) Act 2022 gives our competition authorities the necessary powers to crack down on rogue operators that are found to be breaching competition law. Cartels, where they exist, will be broken up and companies abusing a dominant position can be suitably punished with heavy fines of up to 10% of global turnover. These new powers will act as a big disincentive for those taking part in anti-competitive practices, which drive up costs, freeze out start-ups and smaller businesses and lead to bad quality products and poor services.
The Consumer Rights Bill 2022, which will enter the Seanad shortly, is the largest reform of consumer rights legislation in 40 years. The new law consolidates and modernises consumer law and gives consumers new protections.
157. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the degree to which enterprise and trade in general is challenged by numerous price increases by various suppliers of goods and services; if such issues can in any way be alleviated to ensure the safeguarding of small and medium enterprises; and if he will make a statement on the matter. [45382/22]
View answerThe top competitiveness challenge facing enterprise today is the high inflation environment and rising input prices. Many small and medium businesses around the country are seeing their margins squeezed by the rising costs of doing business, and in particular the significant increases in energy costs. The Wholesale Price Index for energy products rose by almost 78 per cent in the year to July 2022, and this spike is becoming apparent in the costs of energy intensive businesses. This is not unique to Ireland and is an issue facing all major economies around the world.
Ireland imports over 70 per cent of our energy needs and the Government cannot fully insulate businesses from price developments in international energy markets that are mostly outside of our control. The Government is very aware of the economic challenge of escalating energy prices and has put in place measures to assist businesses, including small and medium enterprises. Measures have included a reduction in the rate of VAT on gas and electricity from 13.5 per cent to 9 per cent until the 31st of October; and 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. Measures are also being actively explored at a European level to tackle the costs of energy to business, while further actions are being considered for introduction under Budget 2023.
In the short term, we are constrained in how quickly we can shift our energy consumption patterns. Government has introduced a suite of measures which are aimed improving energy efficiency of firms and reducing reliance on fossil fuels such as the €25 million in funding under the Climate Planning Fund for Business, and €30 million under the Enterprise Emissions Reduction Investment Fund as well as a range of grants available from the Sustainable Energy Authority of Ireland.
In the longer term, this energy shock will require a deep structural adjustment, which will have to take place at the same time as the green and digital transitions.
The Government will keep the energy situation under close and active review and will continue to examine what measures are possible to manage the impact of rising prices for enterprises.
158. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the degree to which retail and other trades, affected by recent multiple price increases such as energy-related costs and insurance, can be protected over the next twelve months; and if he will make a statement on the matter. [45383/22]
View answerThe Government worked hard with the business community in Ireland on the difficulties they faced in trading over the last few years - especially with supports made available related to Brexit and the Covid-19 pandemic restrictions they faced. We will continue to work with and support businesses, including those in the retail sector, as they look to get through the next challenges they face, especially with the increased cost of living and in particular the energy costs they face.
The Government has already implemented measures to help ease the impact on enterprises of rising energy costs, such as the 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.
There are over 20 other government grants, vouchers and training supports available to help enterprises reduce their energy bills by reducing their use and becoming more energy efficient. Details of these are available on gov.ie and are communicated with the retail sector through the Retail Forum which I chair.
Government are committed to helping protect viable businesses and are very conscious that we need to do more to assist our local businesses. We need a mix of broad based measures that will help all business and we also need targeted interventions for those most impacted.
My Department is working with the European Commission to allow us to grant state aid to certain businesses to help them with additional costs (both liquidity and energy costs) due to the Russian war on Ukraine. This is under the Ukraine Temporary Crisis Framework introduced by the European Commission earlier this year. Some of these interventions will be targeted at those firms that trade internationally or are impacted by global trade but we will also put in place a more broad based loan scheme which will be open to most other business in Ireland.
The Emergency Response Credit Guarantee Scheme will be a loan guarantee scheme similar to the Covid-19 Credit Guarantee Scheme. This loan scheme would be open to small and medium enterprises, primary producers and small mid-caps, whose costs have been affected by the Ukraine crisis. Once details have been agreed, Ireland will submit this scheme for approval by the Commission. Assuming all approvals are granted, I would hope this scheme would be available by year end.
Under the Covid-19 Credit Guarantee Scheme, 1,652 businesses in Wholesale and Retail Trade; Retail of Motors Vehicles and Motorcycles received loans to the total value of €127,520,239, which equated to 18.08% of the overall total loan value issued under the scheme. Please see attached table for further sectoral uptake of this scheme.
|
- |
Covid-19 Credit Guarantee Scheme per Sector |
|||
|
INDUSTRY SECTOR |
NUMBER |
% NUMBER |
VALUE |
% VALUE |
|
ACCOMMODATION AND FOOD SERVICE ACTIVITIES |
1,253 |
12.72% |
€ 95,861,604 |
13.60% |
|
ACTIVITIES OF EXTRATERRITORIAL ORGANISATIONS AND BODIES |
2 |
0.02% |
€ 52,500 |
0.01% |
|
ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES |
391 |
3.97% |
€ 35,320,510 |
5.01% |
|
AGRICULTURE, FORESTRY AND FISHING |
1,682 |
17.08% |
€ 83,932,922 |
11.90% |
|
ARTS, ENTERTAINMENT AND RECREATION |
305 |
3.10% |
€ 21,125,412 |
3.00% |
|
CONSTRUCTION |
1,264 |
12.84% |
€ 92,579,968 |
13.13% |
|
EDUCATION |
132 |
1.34% |
€ 9,613,185 |
1.36% |
|
ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY |
37 |
0.38% |
€ 4,075,247 |
0.58% |
|
FINANCIAL AND INSURANCE ACTIVITIES |
64 |
0.65% |
€ 4,701,262 |
0.67% |
|
HUMAN HEALTH AND SOCIAL WORK ACTIVITIES |
240 |
2.44% |
€ 16,664,329 |
2.36% |
|
INFORMATION AND COMMUNICATION |
286 |
2.90% |
€ 26,018,616 |
3.69% |
|
MANUFACTURING |
794 |
8.06% |
€ 69,119,631 |
9.80% |
|
MINING AND QUARRYING |
35 |
0.36% |
€ 4,892,714 |
0.69% |
|
OTHER SERVICE ACTIVITIES |
650 |
6.60% |
€ 33,148,298 |
4.70% |
|
PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES |
504 |
5.12% |
€ 42,015,157 |
5.96% |
|
PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY |
6 |
0.06% |
€ 390,465 |
0.06% |
|
REAL ESTATE ACTIVITIES |
34 |
0.35% |
€ 4,708,955 |
0.67% |
|
TRANSPORTATION AND STORAGE |
491 |
4.99% |
€ 29,990,359 |
4.25% |
|
WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES |
25 |
0.25% |
€ 3,387,006 |
0.48% |
|
WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES |
1,652 |
16.78% |
€ 127,520,239 |
18.08% |
|
Total |
9,847 |
100.00% |
€ 705,118,379 |
100.00% |
With regard to insurance, the Tánaiste chaired a meeting of the Subgroup on Insurance Reform in July 2022 to consider progress on implementation of the Action Plan for Insurance Reform. Approximately 80% of actions in the Plan are now being delivered. While progress on these actions is welcome, Government is committed to doing more to reduce insurance costs. We are confident that through the implementation of the actions set out in the Action Plan we are delivering meaningful reform of the insurance market and creating the conditions for the provision of affordable insurance for consumers and business.
The Government is acutely aware that we need to do more to help business particularly over coming months but also into next year as energy prices escalate and the cost of living increases. This will be central to our budget discussions and new measures will be announced on Budget Day. My officials are working with officials in the Departments of Public Expenditure and Reform, Finance and Environment, Climate and Communications and other relevant departments to develop proposals to assist all business. A priority is to deliver that assistance as effectively and efficiently as possible.
160. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if any particular incentives continue to be considered to encourage the entrepreneurial skills of young people throughout the country particularly in the aftermath of Covid-19 and Brexit; and if he will make a statement on the matter. [45385/22]
View answerThe 31 Local Enterprise Offices nationwide act as a ‘first-stop-shop’ providing advice and guidance, financial assistance, and other supports to those wishing to start or grow their own business. Their business advisors and mentors offer signposting to the programmes and supports that will help and encourage new entrepreneurs start and successfully run their own businesses.
The LEOs continue to provide advice and support to entrepreneurs to pursue their business ideas and look for opportunities to start up new businesses, including a broad range of training programmes. These include the Start Your Own Business Programme and the Mentor Programme.
Encouraging and promoting an enterprise culture is an important area of activity for Local Enterprise Offices. The LEOs continue to support entrepreneurship training in the education system as a critical element in the future development of small business in Ireland.
EI via the LEO Centre of Excellence provide ‘Entrepreneurial Education Programmes’ to primary schools across Ireland, who have opted in. These programmes aim to complement the school curriculum by introducing entrepreneurial skills to primary school pupils from an early age. A critical component in the delivery is to teach young pupils entrepreneurial skills through practical hands-on experience.
The Student Enterprise Programme, an initiative run by the network of Local Enterprise Offices, is Ireland’s largest and most successful student enterprise programme with over 26,000 second level students taking part each year. Students from 1st to 6th year get to do everything a ‘real-life’ entrepreneur would do, from coming up with the business idea to marketing, sales and preparing a business plan/business poster. The National Final for the ‘Student Enterprise of the Year’ award is held in May of each year
Enterprise Ireland also has a number of start-up supports for entrepreneurs, including young entrepreneurs, such as:
New Frontiers is the National Programme designed to develop entrepreneurs delivered by Institutes of Technology and Universities nationwide. The programme takes place over three phases and consists of practical and interactive workshops, personalised one-to-one mentoring, financial support and co-working space.
Competitive Start Fund: €50,000 equity investment designed to accelerate the development of high potential start-up companies by supporting them to achieve commercial and technical milestones such as evaluating international market opportunities or building a prototype.
Student Entrepreneur Awards: An annual event led and managed by Enterprise Ireland. The competition is open to full time registered third level students attending college on the island of Ireland. Students get the opportunity to turn their entrepreneurial ideas into commercial businesses. These winners are also given access to mentoring supports from Enterprise Ireland and the programme sponsors.
