Matt Carthy
Question:82. Deputy Matt Carthy asked the Minister for Enterprise, Trade and Employment the targeted number of new IDA-supported jobs to be delivered in County Monaghan in 2023. [22038/23]
View answerJob Creation
Questions (82)
Written answers
2022 was a record-breaking year for Foreign Direct Investment (FDI) employment, with total employment in IDA client companies now standing at 301,475 up over 26,000 on 2021. Growth in the regions was particularly buoyant, with 52% or 127 projects of the 242 investments won by IDA going to regional locations. Employment growth was recorded in every region of the country.
The FDI performance in the Border region has been strong over the past five years with employment among IDA clients increasing by 21% as traditional strengths in sectors such as Engineering & Industrial Technologies and Medical Technologies were complemented by new investments from the Technology, International Financial Services and Life Sciences sectors.
Monaghan is marketed by the IDA as part of the wider Border Region, made up of the counties Donegal, Sligo, Leitrim and Cavan, as well as Monaghan. There are 73 IDA companies in this region who collectively directly employ 8,885 people. There are currently 8 IDA supported companies in Monaghan, employing 428 people.
The IDA does not set individual county job targets in any given year, rather they set regional targets. In that regard, the IDA is targeting 25 investments for the Border region in the period 2021 to 2024. The IDA will build on the strengths and competencies of the region with a focus on opportunities arising in the sectors of Life Sciences, Technology and Services and take advantage of emerging technologies and business models, including home and hub working.
As the Deputy will be aware, IDA Ireland has recently completed the construction of an Advance Building Solution in Monaghan which it is currently actively marketing to potential FDI clients. Key to success in this respect is strategic collaboration with national and local stakeholders on the enhancement of the regional value proposition for FDI. In this regard, IDA Ireland welcomes the significant funding that both Cavan and Monaghan have received under the Urban Regeneration Development Fund (URDF) to date which will further enhance the attractiveness of both counties for FDI.
Finally, the existing FDI base of companies in Monaghan enjoys strong collaborative links with several third level colleges including Dundalk Institute of Technology as well as the Technological University of the Shannon (TUS) and the Atlantic Technological University (ATU), which is a further positive dynamic for attracting FDI projects to the Region and County.
Enterprise Policy
Questions (83)
Catherine Connolly
Question:83. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 74 of 23 February 2023, the status of the first implementation plan for the White Paper on Enterprise; when the plan will be published; and if he will make a statement on the matter. [22147/23]
View answerWritten answers
My Department is responsible for the development of consecutive two-year Implementation Plans of cross-government activity to implement the policy direction set out in the White Paper. The Implementation Plans will focus on delivery of key initiatives or projects under each of the seven priority objectives identified in the White Paper. These priorities are:
- Integrating decarbonisation and net zero commitments;
- Placing Digital transformation at the heart of enterprise policy;
- Advancing Ireland’s FDI and trade value proposition;
- Strengthening the Irish-owned exporting sector;
- Enabling locally trading sectors to thrive;
- Stepping up enterprise innovation; and
- Building on strengths and opportunities.
I will bring the First Implementation Plan, covering the period to the end of 2024, to Cabinet later this month and it will be published shortly after it has been approved.
A key aim of the first plan is to ensure a clear pathway to achieving the White Paper vision is agreed by all relevant stakeholders and that considerable progress towards this vision is achieved by Q4 2024.
Officials in my Department have been working closely with the enterprise agencies and other Government Departments to finalise the first Implementation Plan. The portfolio of initiatives and projects to be included in the Plan will be reflective of the efforts underway to align enterprise policy interventions with the vision and ambition set out in the White Paper.
The programme of work called out in the Implementation Plan will be driven by my Department and the enterprise agencies, with other relevant Government Departments and public bodies responsible for a number of key deliverables.
Progress is already being made on many of the elements that will be included in the Implementation Plan. For example, work is underway to integrate the cost of carbon into enterprise agency evaluation models, to drive the take-up of artificial intelligence tools by business and to develop a National Clustering Programme.
Progress on the Implementation Plan will be reported on every six months to the Cabinet Committee on Economy and Investment with the first update report scheduled for Q3 of this year.
In addition to updates on the initiatives included in the Plan, the biannual reports will track progress towards the 15 targets set out in the White Paper, with new data under each of the measures included as it becomes available from the relevant sources.
Site Acquisitions
Questions (84)
Alan Dillon
Question:84. Deputy Alan Dillon asked the Minister for Enterprise, Trade and Employment if he will outline the current position of the IDA on the strategic land bank acquisition in Castlebar that has been ongoing for the past 12 months; and if he will make a statement on the matter. [21431/23]
View answerWritten answers
As the Deputy is aware, IDA Ireland’s property investment programme is aimed at supporting economic development and job creation across the IDA, Enterprise Ireland and Local Enterprise offices client base. The provision of property solutions is a key element in IDA’s marketing of Mayo and the West Region. In that regard, IDA keeps its landholdings under constant review, including in the West Region, with a view to future-proofing its property offering.
IDA, as part of the Regional Property Programme, has delivered an advance technology building to Castlebar which has been occupied by Meissner Filtration Products, having announced 150 jobs in 2019, with a second advance building solution due to be delivered. The site selection process for the new building is well under way and on conclusion of site selection, the design and planning phases will commence. The specific dates for commencement of construction are wholly dependent on, and subject to, the successful outcome of these processes. IDA will use its best endeavours to deliver the building in a timely manner. Furthermore, IDA Ireland has had regular engagement with Mayo County Council on its plans and the IDA continues to work with regional stakeholders and the private sector on opportunities to add to the supply of competitive property solutions in regional locations.
Departmental Policies
Questions (85)
Seán Haughey
Question:85. Deputy Seán Haughey asked the Minister for Enterprise, Trade and Employment what part his Department is playing in providing a modern, cohesive and well-resourced regulatory framework for digital; and if he will make a statement on the matter. [22085/23]
View answerWritten answers
The National Digital Strategy was launched in February 2022 and restates the Government’s commitment to a well-resourced, modern and coherent regulatory framework for digital.
Advances have been made right across Government on this front, as was confirmed in the Progress Report on this strategy published in December last year.
Key to implementation has been the establishment of cross-government coordination structures, such as the Senior Officials Group on Digital Issues, which reports to the Cabinet Committee on Economic Recovery and Investment. My Department has a central role on that Group. There is also regular engagement between that Senior Officials Group and the four main digital regulators (the Digital Regulators' Group).
As well as that leading cross-government role, my Department leads on several recent and forthcoming digital regulations.
It is responsible for the implementation of the EU Digital Services Act in Ireland. To that end, Government approved the General Scheme for the Digital Services Bill in March this year. This Bill will give effect to those elements of the Digital Services Act that require national implementing measures, in particular designating Coimisiún na Meán as the lead competent authority, known as the Digital Services Coordinator. Effective coordination and cooperation will be essential to the successful implementation of the Digital Services Act, so the General Scheme includes provisions that are designed to support joined up working across regulators, both in Ireland and across the EU, with measures for exchange of information and cooperation agreements which will promote coherence and maximise resources.
As the Government made an early decision as to the identity of its Digital Services Coordinator, my Department was in a position to begin discussions on resources as early as last year, before the Digital Services Act was finally adopted into EU law. Those discussions resulted in an allocation of €2.7 million for my Department towards funding of Coimisiún na Meán in 2023, to fund recruitment and other preparations over the course of this year, so that it is ready to discharge its new functions come 17 February 2024. Work is beginning now to identify what resources will be needed after the 17 February 2024, when the Digital Services Act’s full enforcement network is up and running.
My Department also has responsibility for negotiations at EU level on the proposed Artificial Intelligence Act and proposed Data Act. Officials are currently undertaking Regulatory Impact Assessments for the implementation and enforcement frameworks for these Acts with a view to ensuring that these forthcoming regulations will also be implemented coherently, with functions being assigned to appropriate bodies.
My Department is also engaged in parallel negotiations on the AI Liability Directive and the Council of Europe Convention to ensure coherence and legal certainty for business and consumers alike in regulating this rapidly evolving sector.
As we move to give effect to these various regulations, ensuring that the oversight framework is well connected, properly resourced and effectively coordinated will be to the fore of our planning and implementation.
Work Permits
Questions (86)
Alan Farrell
Question:86. Deputy Alan Farrell asked the Minister for Enterprise, Trade and Employment the measures being taken to improve the efficiency of the work permit system; and if he will make a statement on the matter. [22168/23]
View answerWritten answers
The number of employment permit applications submitted to my Department increased significantly from 16,449 in 2020, to 27,719 in 2021 and further to 35,606 in 2022 which resulted in a backlog in applications.
The Department developed a plan of action to reduce this backlog and employment permit processing times. Following the successful implementation of the plan, the Employment Permits Unit has reduced the number of applications awaiting processing from approximately 11,000 in January 2022 to 1,686 as of 5th May 2023. This was achieved despite further strong demand. Processing times have fallen from a high of 21 weeks to currently stand at 12-13 business days. The Department plans to maintain processing times for all applications at this level, or reduce them even further, on the assumption that estimated demand remains at current levels for 2023.
The Employment Permits Unit has also introduced a range of measures to assist individuals in submitting applications. Video user guides have been developed guiding applicants through the steps involved in completing and submitting an general employment permit application including undertaking the labour market needs test. Dedicated checklists setting out the requirements for the various types of employment permits have been published on the Departments website.
From October 2022 the Department introduced a new system to refund fees electronically directly to the credit/debit card used to pay for the application. This has resulted in refunds being made within days, as opposed to the multiple weeks this process would have previously taken.
From 16 January 2023 the Department commenced screening all General Employment Permit applications across a small number of key mandatory criteria to ensure compliance with the requirements of this permit type. Should the application fail to provide the required valid information it will be returned with a comprehensive explanation and a full refund. This new process will provide early notification of failed applications while also ensuring that valid applications are processed in a speedy and efficient manner.
In addition, the Department has recently appointed IT systems specialists to undertake the design and implementation of a new online Employment Permits system with the aim of delivering further efficiencies and an improved customer experience.
An efficient and responsive Employment Permit system is a critical component to ensure that talent is attracted to Ireland from non-EEA countries. I am committed to improving the efficiency of administrative processes and making services more customer friendly to the benefit of both employers and potential employees.
Foreign Direct Investment
Questions (87)
Ruairí Ó Murchú
Question:87. Deputy Ruairí Ó Murchú asked the Minister for Enterprise, Trade and Employment if he will outline the work being carried out in his Department to promote the Border counties North and South as a destination for foreign direct investment; and if he will make a statement on the matter. [21790/23]
View answerWritten answers
Foreign Direct Investment plays a significant role in Ireland’s economy and the flow of FDI into the country is strong. Numbers directly employed in the multinational sector in Ireland reached 301,475 at the end of 2022, the highest FDI employment level ever, and a 9% increase on 2021 with employment growth seen throughout the country. in 2022, 242 investments were won and 103 of these were new name investments. Of the new investments, 52% went to regional locations. These record results demonstrate not only the resilience of the FDI sector in Ireland, but also the strength of Ireland’s value proposition and attractive business environment, which enables global companies to successfully invest and expand in Ireland. As we face a challenging and competitive global environment, Ireland will continue to strengthen its attractiveness for FDI, grounded in the policies articulated in the White Paper on Enterprise published by Government last December. This, of course, includes the Border region, which saw a 6% rise in FDI employment and several new investments last year.One key element in winning, sustaining, and supporting FDI is a proactive, functional property and infrastructural ecosystem. IDA Ireland’s current strategy, Driving Recovery And Sustainable Growth 2021-2024, contains a commitment to deliver 19 Advanced Building Solutions in 15 regional locations throughout Ireland. The Regional Building programme is progressing well with the completion of 8 of the 19 properties as of Q2 2023. Included among these are several locations in border counties, including Monaghan, Sligo and Dundalk. The importance of promoting FDI across our island is reflected in the White Paper on Enterprise, which includes regional targets seeking to ensure that unemployment does not exceed one percentage point of the national unemployment rate in any region. Key targets include delivering at least half of all new FDI investments from 2021-2024 outside of Dublin, and for over two thirds of new jobs created in Enterprise Ireland supported firms to be located outside of Dublin. Finally, as part of Government’s Shared Island initiative, opportunities for North/South cooperation to enhance the investment proposition of the island as a whole, and in border regions, will continue to be pursued, including on research and innovation, skills, transport connectivity, renewable energy, and the development of sectoral ecosystems across both jurisdictions.
Exports Growth
Questions (88)
Louise O'Reilly
Question:88. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment if he will outline the priority areas for his Department to increase the number of small and medium enterprises that export, with specific attention given to SMEs exporting to continental Europe and North America.; and if he will make a statement on the matter. [22020/23]
View answerWritten answers
Ireland’s position as a small economy means that it is essential for our economic resilience that Irish enterprises realise opportunities in global markets. As an agency of my Department, Enterprise Ireland (EI) is responsible for helping prospective and emerging exporters to build company scale and expand their reach.
In line with the Government’s White Paper on enterprise, EI's Strategy 2022-2024 sets out a number of initiatives to create resilient, internationally focused Irish enterprises and ambitious targets are set for export growth and market diversification of the EI client base. This includes growing the total value of exports reported by EI client companies on an annual basis and driving diversification with 70% of their exports going to destinations outside of the UK market.
The Agency assists firms to build their capabilities in the areas of sales and marketing, pricing, market intelligence, talent attraction and in-market advice.
EI's international office network plays a crucial role in delivering in-market supports by assisting companies with market and competitor intelligence, identification of new opportunities, providing introductions to key industry and sectoral decision makers, support for building key customer relationships and advice on partnering strategies.
Work is ongoing to build digital sales and marketing capability in enterprises, to maximise growth in sales via global online marketplaces, embracing digital opportunities as a key export growth enabler for Irish enterprise.
The Agency’s Market Discovery Fund, part of its suite of Sales and Marketing supports, provides support for companies to take their first steps into new markets, providing funding for research, trade show attendance and market development. EI is also supporting new exporters to the Eurozone region under the ‘Enter the Eurozone’ programme, and through identification and realisation of future market opportunities. To accelerate diversification into new markets, the Agency has recently launched the Post-Brexit: Market Growth & Diversification Grant, the aim of which is to help clients that are impacted by Brexit to identify new market opportunities, develop a market entry plan and grow exports in markets outside of the UK including North America and Europe.
EI's international trade promotion, sector marketing and international trade events programme continues to provide an opportunity for companies to build their export journey. Working with Team Ireland, my Department through EI will co-ordinate and promote over 100 trade events and missions in significant international and local markets annually in 2023 and 2024 providing an opportunity for companies to start and scale their export growth.
Flexible Work Practices
Questions (89)
Ruairí Ó Murchú
Question:89. Deputy Ruairí Ó Murchú asked the Minister for Enterprise, Trade and Employment if he will outline any engagement his Department has had with other Departments in relation to the tax implications for workers who live in the North and wish to work remotely for Southern-based companies and the tax implications for the firms who wish to recruit them; and if he will make a statement on the matter. [21791/23]
View answerWritten answers
My Department is fully supportive of facilitating remote and flexible working practices, this commitment has been set out in the 2021 publication Making Remote Work: National Remote Work Strategy. An interdepartmental group within my Department has been responsible for implementation of the Strategy’s actions, including movements to incorporate the Right to Request remote work into legislation.
However, the taxation of cross-border workers is a much deeper issue and not only affects Ireland but has potential tax implications on an international level. It is a very complex matter, and the State cannot move unilaterally. Therefore, consideration must be given to International Tax Law, Double Taxation agreements and ongoing negotiations that are taking place between respective countries. It is important to clarify that my Department cannot make a final decision in such matters and ultimate responsibility lies with The Department of Finance and The Department of Foreign Affairs.
The current position does not preclude workers who reside in Northern Ireland and work for ROI based companies from availing of remote working. The availability of remote working is primarily a matter between the employer and the employee. A private sector employer, based in the ROI, may allow an employee to work remotely in Northern Ireland, however, such arrangements may result in implications for the employer from a UK tax perspective.
As a first step, my Department is committed to engaging with the Department of Finance and other relevant stakeholders on the following issues:
1. Obtain Better Data – there is a general acceptance that data in relation to the nature and extent of cross-border working could be improved. The ESRI has been commissioned to undertake a research project in this area. It is understood that this work is in progress by the ESRI.
2. Minimise Administrative Burden – Revenue are currently looking at ways to minimise and simplify the administrative burden insofar as possible.
3. International Discussions – the Department of Finance is actively engaging in any international discussions on the policy implications of cross-border working. The Department will also engage bilaterally with other jurisdictions as appropriate to the circumstances.
Discussions in this space are still in its preliminary stages, we expect that further engagements with the Department of Finance will commence following a more detailed examination of the above 3 issues by the various government Departments.
Trade Agreements
Questions (90)
Matt Carthy
Question:90. Deputy Matt Carthy asked the Minister for Enterprise, Trade and Employment the current position in respect of the EU-Mercosur Trade Agreement; and if he will report on any engagements he has had with EU member state Ministers or the European Commission in this regard. [22037/23]
View answerWritten answers
The Mercosur Agreement is designed to cement the close political and economic relations between the EU and Mercosur countries and represents a commitment to rules-based international trade. Since formal negotiations concluded, the global trade policy landscape has changed considerably. The rise in trade nationalism, the economic impacts of COVID-19, the war in Ukraine and the accompanying impacts on global supply chains have demonstrated the importance of diversifying our import and export markets by securing robust and comprehensive trade deals with global partners. The Mercosur Agreement, if ratified, will support that objective.
However, Ireland and other EU Member States have raised concerns regarding the strength of the trade and sustainability commitments in the Agreement. As a response to those concerns, the European Commission commenced a process with the Mercosur region on reaffirming the Agreement’s binding commitments. To that end, the Commission devised a draft interpretative legal instrument addressing sustainability commitments. This interpretative text will have the same legal status as the existing text within the Agreement itself.
In discussions with the Commission and other EU Member States, Ireland has emphasised the need for the Instrument to be comprehensive in its scope and to include binding commitments on climate change, biodiversity, forests, labour rights and other sustainability criteria.
Commission officials are currently engaging with their Mercosur counterparts on the text of the new instrument. I wish to assure the Deputy that my officials and I will continue to monitor developments regarding the instrument proposed as it is in our collective interests that commitments relating to the environment, biodiversity and sustainability remain central to the overall trade agreement reached with Mercosur.
Human Rights
Questions (91)
Catherine Connolly
Question:91. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 147 of 23 February 2023, the status of his Department’s engagement with the Department of Foreign Affairs with a view to developing a new action plan on business and human rights; and if he will make a statement on the matter. [22149/23]
View answerWritten answers
Following an extensive consultation process, Ireland launched the National Plan on Business and Human Rights (2017 -2020) towards the end of 2017. Ireland became the 19th state in the world to develop a National Plan. In December 2021, a review of the implementation of the Plan was brought to government. It found that over 91% of commitments under the Plan were achieved, with plans to implement the remainder.
My Department has been liaising closely with the Department of Foreign Affairs with a view to supporting plans to re-convene a Business and Human Rights stakeholder forum, involving representatives of Government, civil society and business, including from my own Department.
Scoping and mapping exercises are currently underway to set out what initiatives in this area are underway, significant actions coming in the near future and to identify any gaps or areas that need greater input and scrutiny. This exercise will help to inform the work of the stakeholder forum, which I understand is anticipated to be convened in the second half of this year.
Departmental Strategies
Questions (92)
Catherine Connolly
Question:92. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment the status of the development of his Department’s new Statement of Strategy to cover the period 2023-2025; the measures planned to ensure sustainable and balanced regional development in Ireland, particularly with regard to the northern and western region which has been classified by EU bodies as a region in transition and a lagging region; and if he will make a statement on the matter. [22150/23]
View answerWritten answers
I am currently finalising my Department's new Statement of Strategy for 2023-2025. This Strategy will guide the delivery of an ambitious programme of work over the coming years, with an aim to make Ireland the best place to succeed in business across all parts of our country, with vibrant enterprises, more high-quality employment, growing trade, fair workplaces and higher productivity.
Sustainable, balanced regional development continues to be a key policy of my Department and this Government, and the Statement of Strategy will draw on the ambitions and objectives of the White Paper on Enterprise, Regional Enterprise Plans, National Smart Specialisation Strategy, and will align with the objectives of the National Planning Framework, to ensure balanced economic development in all parts of the country, including regions that may be experiencing specific development challenges.
For the funding period 2021 to 2027, the European Commission has classified the Northern and Western Region (NWR) as a ‘transition region’. Given the NWR’s rural structure, along with its relatively peripheral and border location, particular challenges must be overcome. In that context, it is critical that the potential for economic growth in the NWR is realised to ensure an overall lift in its economic performance relative to the EU average, which, with sustainable job creation, would restore the region to the status of a ‘more developed region’.
Accordingly, Ireland’s National Smart Specialisation Strategy for Innovation 2022-2027 and programmes under the European Regional Development Fund (ERDF) are aimed at addressing these regional disparities. Last November, the European Commission adopted the two ERDF programmes for Ireland confirming a regional investment strategy of €853 million, of which €396 million is financed by the EU. The ERDF will drive the application of Smart Specialisation and has targeted funding at regional innovation ecosystem strengthening initiatives, including improving the research capacities of the technological universities, developing clustering, and creating smart hubs for entrepreneurial research and innovation.
Enterprise Ireland, working with my Department and the Managing Authorities, launched three innovation-focused ERDF based programme calls over the past few months with awards to be announced later this year. In addition, €145m of ERDF has been secured over the coming years to finance projects aligned with the nine Regional Enterprise Plans. The West and North-West Regional Enterprise Plans in particular play a central role in supporting the delivery of balanced regional enterprise development in both regions by identifying growth opportunities, recognising vulnerabilities, and in response, strengthening the regional enterprise ecosystem to enable job creation. The first call under this fund will be announced shortly.
Industrial Development
Questions (93)
Brendan Griffin
Question:93. Deputy Brendan Griffin asked the Minister for Enterprise, Trade and Employment if the site selection process for a new advance technology building in Kerry Technology Park will be accelerated by the IDA in view of the disappointing recent jobs figures pertaining to IDA supported companies in Kerry; the number of IDA-sponsored site visits to Kerry to date in 2023; and if he will make a statement on the matter. [22069/23]
View answerWritten answers
IDA Ireland is committed to winning opportunities for Kerry. IDA Ireland’s Strategy Driving Recovery and Sustainable Growth 2021-2024 launched in January 2021 commits the organisation to winning new investments for every region of Ireland. The Strategy includes a target of 800 investments for Ireland over the period, 400 of which will be outside Dublin.
In addition, each region has its own investment target over period of the strategy with the South-West Region of Kerry & Cork having the largest target of any region outside Dublin of 118 investments.
In 2022 the strong growth in regions continued with 127, or 52% of the investments won going to regional locations. Employment growth was recorded in every region of the country with the South-West region up 7.5% to 52,228. Over the past 9 years there has been a 21% growth in the number of people employed by IDA client companies in Co. Kerry.
In addition to the growth in employment, IDA has committed in its current strategy to building a new, second, Advanced Technology Building in Tralee. On the 6th of July 2022, IDA Ireland announced that it signed Heads of Terms with Shannon Commercial Enterprises DAC to progress with the acquisition of the remaining lands at Kerry Technology Park, Tralee.
IDA Ireland is proposing to identify a site within the land bank to accommodate the construction of an Advance Building Solution as announced as part of the IDA Strategy "Driving Recovery & Sustainable Growth 2021–2024". Securing planning permission and the construction of the building will take time and is subject to a number of complex design, planning and procurement processes. The IDA’s property investment in the regions is aimed at supporting economic development and job creation across IDA Ireland, Enterprise Ireland and local LEO’s respective client base. It is crucial that the South-West region has a competitive, sustainable property offering to enable the attraction and retention of investment and jobs.
The significant investment by IDA Ireland in the South-West Region aims to future-proof the property offering to attract Foreign Direct Investment (FDI) to the region and to Kerry in particular.
All of this activity has seen members of the IDA Ireland regional, property and other sectoral operations teams in IDA Ireland spend time in Kerry and Tralee in particular and this will continue.
IDA Ireland continues to engage with new and existing companies on promoting Ireland as a location for their business and the Agency will continue to position County Kerry for virtual and in-person site visits to prospective companies in 2023 and beyond. In 2023 to date there has been one in-person site visit to Kerry.
Food Industry
Questions (94)
Aindrias Moynihan
Question:94. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment if he is aware of the impact of the falling birth-rate in China and the impact of this on the infant milk formula industry in Ireland; and if he will make a statement on the matter. [22028/23]
View answerWritten answers
Deputy my officials have informed me that China reported in January 2023 that its population had fallen for the first time in 60 years. The country's strict one-child policy which was implemented from 1980 to 2015 to respond to high levels of population growth has been indicated as a reason for the decline.
The decline in birth rate whilst significant is only one factor impacting on the supply of international infant formula brands into China. The introduction of complex national operating standards coupled with intense competition from domestic Chinese infant formula manufacturers who have regained consumers’ trust, have significantly inhibited international companies to service this market.
According to Euromonitor, Chinese brands have rapidly gained market share in recent years, with Feihe taking 20%, up from 12% in 2019, of the market based on retail sales and Yili the other leading local brand taking 14% in 2022. This compares to a substantial fall in market share for imported brands such as Danone, Nestle and Abbott.
An analysis of the market by Bord Bia in 2022 concluded that there remains a strong market for premium grade infant formula in China for Irish suppliers, both as an ingredient as well as finished product. However, manufacturers will need more in-depth customer engagement with stronger scientific proof points to serve a changing and more informed customer segment.
Foreign Direct Investment
Questions (95)
Peadar Tóibín
Question:95. Deputy Peadar Tóibín asked the Minister for Enterprise, Trade and Employment if he will list the foreign direct investment companies which have issued early warning reports to his Department in the each of the past five years. [21604/23]
View answerWritten answers
My Department operates an early warning system, known as EWRs, through which the enterprise agencies - including IDA Ireland - notify the Department when they become aware of any significant issue arising for client companies that could impact their business in Ireland. While there is no obligation on companies to provide EWRs to the enterprise agencies, employers are legally obliged to notify the Minister of Enterprise, Trade and Employment of proposed collective redundancies. Additionally, our enterprise development agencies work hard to maintain close working relationships and strong channels of communication with their client companies which facilitates the operation of this system.It is important to note that not all EWRs translate to job losses, and in some cases, the proposed number of job losses may be revised downward following statutory employee consultation periods.Because of the close relationship that IDA has with its portfolio of clients, which now stands at 1,796 companies employing 301,475 people, these clients share sensitive information with the Agency on a confidential basis. These Early Warning Report notifications from IDA are highly confidential and highly sensitive, and as there are situations where, ultimately, there is no negative impact on Irish operations, it would be highly inappropriate for the names of clients to be publicly shared.
Environmental Policy
Questions (96)
Marc Ó Cathasaigh
Question:96. Deputy Marc Ó Cathasaigh asked the Minister for Enterprise, Trade and Employment the take-up of the Green Transition Fund incentives to decarbonise industrial heating; and if he will make a statement on the matter. [21385/23]
View answerWritten answers
My Department is actively pursuing opportunities for decarbonisation across the enterprise base and integrating climate action into all aspects of the Department and its agencies’ activities. We will foster strong, resilient businesses, that are successful and sustainable, while meeting our sector’s climate targets.
The Green Transition Fund was launched in June 2022. It is designed to specifically to address manufacturing combustion emissions from our industrial sector, to accelerate the uptake of carbon-neutral heating in manufacturing businesses. It provides manufacturing businesses the foundation they need to begin their transition to low carbon production processes and through investment in carbon abating capital equipment and technologies.
In Budget 2022, Government announced that €55 million would be made available under the National Recovery & Resilience Plan for this Green Transition Fund. The budget is split into two streams, the Enterprise Emissions Reduction Investment Fund (€30m) and the Climate Planning Fund for Business (€25m) which will both run from 2022 and 2025.
The Climate Planning Fund for Business provides businesses support to develop a plan to identify how best to remove reliance on fossil fuels in their business. The offers being provided under the CPFB will support companies to accelerate their awareness of CO2 abatement opportunities, build capability and put in place sustainability plans.
The Enterprise Emissions Reduction Investment Fund provides funding to manufacturing businesses to invest in carbon neutral heating processes, smart metering and energy monitoring, and research and development. Up to €1 million is available for businesses to upgrade their processes through this stream.
The table below outlines the funding approved to companies up to 5th May 2023 through the Green Transition Fund. This is a new relatively new fund it is expecting that the level of demand grow significantly throughout 2023.
For larger projects that are supported through this fund, it is anticipated that expenditure will be mainly incurred during the second half of the period. These are large capital projects, with drawdown of funding likely to be a year or more after project approval.
|
Total Approvals as of 5 May 2023 |
Approvals € |
|
|
Energy Measurement & Tracking Systems |
8 |
€185,105 |
|
Capital for Decarbonisation Processes |
4 |
€1,723,662 |
|
Exploring Innovation |
3 |
€360,940 |
|
Research & Development |
4 |
€781,454 |
|
Climate Action Voucher |
47 |
€84,600 |
|
Green Start |
62 |
€310,000 |
|
Green Plus |
13 |
€502,093 |
|
Strategic Consultancy |
5 |
€98,238 |
|
Total |
146 |
€4,046,092 |
Industrial Development
Questions (97)
Joe Flaherty
Question:97. Deputy Joe Flaherty asked the Minister for Enterprise, Trade and Employment if he will provide an update on the IDA commitment to deliver an advanced building solution in Longford town; and if he will make a statement on the matter. [21902/23]
View answerWritten answers
IDA Ireland is fully committed to delivering an Advanced Building Solution - or ABS - in Longford. IDA Ireland is continuing to liaise with Longford County Council and with wider stakeholders to identify a suitable site for the proposed ABS and the site selection process is currently ongoing.
Longford is already home to 7 IDA Ireland client companies directly employing more than 1,620 people and has an impressive range of companies across all industry sectors. This portfolio of multinational companies is hugely significant to the region and today the Midlands has become a key strategic base for global companies of scale. Global leaders who have invested in the Region include Technimark, Avery Dennison and Abbott in Longford, as well as others such Greenfield Global (Laois), N’Ware (Laois), Zoetis (Offaly), Medtronic (Westmeath), and Ericsson (Westmeath).
FDI employment in the Midlands region has increased by 43% in the past 5 years. FDI has a significant impact on the Midlands Region from an economic impact perspective, with an estimated €402 million spent by MNC’s on payroll during 2020; €126 million was spent on Services and Materials; and €92 million was spent on in-house R&D.
Regional development is at the centre of IDA Ireland's current strategy “Driving Recovery & Sustainable Growth 2021-2024”. Under this Strategy, the IDA is targeting half of all investments to regional locations which aligns with the objectives of the Programme for Government. Specifically, IDA Ireland is targeting 25 investments for the Midlands region during this period.
In December, Technimark, a global manufacturing leader for the healthcare market, announced it will create 80 new highly skilled roles over the next two years as it expands its operations in Longford, with a 50,000-square-foot addition, doubling the size of its existing plant. Technimark will be investing €26 million to expand the facility's capacity in medical manufacturing, including precision injection molding, value-added assembly, finished device assembly and contract manufacturing.
Departmental Strategies
Questions (98)
Michael Moynihan
Question:98. Deputy Michael Moynihan asked the Minister for Enterprise, Trade and Employment if he will report on the implementation of the National AI Strategy; and if he will make a statement on the matter. [22082/23]
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AI is a powerful and fast evolving technology that is and will continue to have huge impacts on our economy and society.
The Government has been attentive to the potential of AI for a significant period of time. That is why we developed the National AI Strategy “AI – Here for Good” which was published in July 2021 and my Department is leading on cross Government implementation of the strategy.
Underpinning our Strategy are three core principles to best embrace the opportunities of AI:
1. adopting a human-centric approach to the application of AI;
2. staying open and adaptable to new innovations; and
3. ensuring good governance to build trust and confidence for innovation to flourish.
Substantial progress has been made on its implementation across various parts of Government in the two years since its launch and my officials are finalising an implementation report which will be published shortly.
While the strategy cuts across a number of Departments, for the benefit of the Deputy, there are a number of significant achievements in my own Department including:
• Appointing Dr Patricia Scanlon as Ireland’s first AI Ambassador
• Establishing the Enterprise Digital Advisory Forum to advise on the adoption of AI and other digital technologies.
• Creating an €85 million multi annual Transition Fund to support businesses in adopting AI and other digital technologies.
• Supporting the development of a Report from the Expert Group on Future Skills Needs on the Skills Requirements of AI.
• Convening a National Youth Assembly on AI
• Joining the Global Partnership on AI (GPAI)
• Leading on negotiations at the EU and the Council of Europe on AI regulation
Ireland’s approach to AI recognises the potential for the technology to enhance our socio-economic wellbeing as well as presenting great benefits for businesses in terms of productivity and innovation. It is clear is that we can already see the benefits of AI in a range of fields including in healthcare settings, climate action and education.
We are also mindful of the concerns and questions that the public has in relation to AI. Crucially, work is well progressed on a horizontal EU regulatory framework which will underpin trustworthy use of AI in the EU, and Ireland is actively engaged in this. We are also developing guidance on the trustworthy and ethical use of AI in the public service to ensure that Government can safely harness the power of AI to tackle big challenges.