Written Answers Nos. 212-225
212. Deputy Paul Murphy asked the Minister for Enterprise, Trade and Employment if he will amend the current Workplace Relations Act 2015 that changes the way cases under the Equal Status Acts 2000-2018 are heard and dealt with. [31765/23]
View answerWorkplace Relations (Miscellaneous Provisions) Act 2021 (No 29 of 2021) gave effect to the policy changes that were required concerning the proper administration of justice as per the Supreme Court's judgment in Zalewski. The act amended, inter alia, the equal status acts.
213. Deputy Carol Nolan asked the Minister for Enterprise, Trade and Employment the cost of enamel "Pride" badges which were produced in 2023 bearing the logo of his Department (details supplied); the total number of such badges produced; the cost of similar badges; and if he will make a statement on the matter. [31801/23]
View answerMy Department purchased 100 enamel "Pride" badges at a total cost of €528.90. This cost included an amount of €141.45 relating to the design and manufacture of a mould used to make the bespoke badge. The creation of this mould will avoid incurring similar costs in the future, as the mould can be re-used without incurring any charge. The Department of the Environment, Climate and Communications contributed a similar amount towards the costs incurred for the badge mould.
The badges were distributed to Departmental staff at a Pride coffee morning which was held in the Department’s Offices on Kildare Street on 21st June and also to those who took part in the Dublin Pride Parade on 24th June. My Department has not purchased similar badges for any other events in recent times.
214. Deputy Carol Nolan asked the Minister for Enterprise, Trade and Employment if his Department purchased or produced any memorabilia such as pens, stationery, pins, badges, mugs or other types of souvenirs to mark or celebrate Pride 2023; if so, the costs incurred; and if he will make a statement on the matter. [31807/23]
View answerThe costs incurred by my Department on memorabilia to mark Pride 2023 amounted to €1,488.34. These costs included the purchase of enamel badges, t-shirts, flags and a large banner.
My Department has a proud record of actively supporting Pride and this support was demonstrated again in 2023. The large banner purchased was used for staff of the Irish Civil and Public Service to walk behind during the Dublin Pride 2023 parade. The Department will retain ownership of the banner but will make it available to be used in other Pride marches and events by other Civil Service organisations.
215. Deputy Jim O'Callaghan asked the Minister for Enterprise, Trade and Employment the actions taken to boost jobs and businesses since 27 June 2020. [31851/23]
View answer216. Deputy Cathal Crowe asked the Minister for Enterprise, Trade and Employment the main policy achievements of his Department since 27 June 2020; and if he will make a statement on the matter. [31859/23]
View answerI propose to take Questions Nos. 215 and 216 together.
Since June 2020, my Department has been working to achieve the commitments and priorities set out in the Programme for Government: Our Shared Future. We implemented our 2021-2023 Statement of Strategy and delivered on our remit to drive the productive capacity of the economy, create and maintain high-value jobs, promote fair competition in the marketplace, protect consumers and safeguard workers during a period when the COVID-19 pandemic, the United Kingdom’s withdrawal from the EU and the impacts of the war in Ukraine were creating unprecedented challenges for the business community in Ireland.
The main policy achievements and actions taken by my Department to boost jobs and business between June 2020 and December 2022 are set out in our Statement of Strategy Report on Delivery, which is available on our website at www.enterprise.gov.ie. This report sets out details of the objectives realised under each of the department’s strategic goals.
Since January 2023, my Department has continued to deliver on its ambitious agenda to lead on sustainable economic development through the creation and maintenance of high-quality employment across all regions with key achievements listed below.
Enterprise Development and Innovation
• The Ukraine Credit Guarantee Scheme got underway with the first lender to the market announced in January. The scheme will provide loans at reduced rates and without the need for collateral on loans up to €250k, to SMEs including farmers and fishers, for purposes of working capital and medium-term investment.
• Extension and expansion of the €200 million Ukraine Enterprise Crisis Scheme to assist viable but vulnerable firms of all sizes in the manufacturing and internationally traded services sectors. The scheme assists firms suffering liquidity and supply chain issues as a result of Russia’s war on Ukraine and helps those impacted by severe rises in energy costs.
• The pilot framework to extend the LEO mandate was launched in January 2023. The framework will allow for the provision of direct grant aid to companies with over 10 employees in the manufacturing and internationally traded services sectors with export ambition.
• In February, DETE hosted a construction industry outreach event, ‘Collaborate to Innovate,’ to examine how best to promote innovation in the sector and accelerate the adoption of modern methods of construction (MMC) in the delivery of housing. DETE and EI also agreed a range of Housing for All related research projects for inclusion in the Construction Technology Centre ‘Construct Innovate’s’ work programme.
• The first of the ‘Building Better Business’ Conferences was held in Letterkenny in March, followed by Portlaoise in April, then Limerick and most recently Naas in June. There will be a further five Conferences this year, each of which will aim to highlight the Regional Enterprise Plans and the twin challenges of digitalisation and the transition to a low-carbon economy.
• New call under the Online Retail Scheme launched in March to help small business sell their products online.
• A dedicated webpage for retail specific information from across the Government system went live in March. “Retail sector in Ireland” is a resource for retail specific information that is available in one single online space in an accessible and user-friendly format.
• In March a sixth call of the Disruptive Technologies Innovation Fund (DTIF) was launched. This call is encouraging projects that complement our policy objectives on digital transformation, integrating decarbonisation, and meeting our net zero commitments. In April Funding of €17.6m was announced for a further five projects under Calls 4 and 5.
• The new Energy Efficiency Grant for small businesses was launched in May. The objective of the scheme is to support capital investment by businesses to reduce carbon emissions and overall energy costs by accelerating the adoption of low carbon technologies or processes.
• Three new innovation programmes were developed and launched through the European Regional Development Fund. These will, in the main, enhance knowledge transfer between industry and higher education, and provide innovation training.
• On the 31st May Enterprise Ireland hosted the inaugural Food Innovation Summit in Cork.
• In June the first allocation of funding under Irish Innovation Seed Fund (IISF) was made.
• NSAI has restructured their construction team to support Agrément, a certification process for innovative building products and systems, and anticipated future demand for on-site inspections. Recruitment is underway for additional staff funded by the Housing for All Implementation Fund, while a new head of MMC has been identified and will commence with the NSAI on 29th May. In June a new collection of standard recommendations was launched to guide the efforts of professionals in the retrofitting sector to deliver high-quality, sustainable, and efficient building upgrades.
Employment Rights And Workplace Relations
• On the first of January, the National Minimum Wage increased by 80 cents, from €10.50 to €11.30. This increase can be considered the first year of the proposed four-year path towards reaching the living wage of 60% of the median wage.
• European Commission workshops with the expert group on the transposition of the EU Directive on Adequate Minimum Wages commenced in March.
• In January, my Department completed the ratification process of International Labour Organisation (ILO) Convention 190 on the elimination of violence and harassment in the workplace. This is a legal instrument which recognises the right of everyone to a world of work free from violence and harassment, including gender-based violence and harassment.
• An Interdepartmental Working Group has concluded its high-level considerations of the changes required in order to fully transpose Article 2(1) of Directive 2008/94/EC which provides protections for employees in the event of their employers’ insolvency. A report of the group’s recommendations was finalised in March.
• Work commenced with contractors on the development of the new ICT processing system for employment permits with the aim of driving further efficiencies in processing and delivering increased productivity, while at the same time improving the overall user experience.
Policy Development
• The SME and Entrepreneurship Taskforce reconvened in January to continue progressing priorities under the SME and Entrepreneurship Growth Plan.
• The Department’s Enterprise Forum meets quarterly to discuss enterprise policy implications arising from emerging national and international challenges.
• Implementation of the Regional Enterprise Plans continues, with several Steering Committee meetings taking place during H1 2023.
• The Industrial Heat Roadmap Working Group was established and first meeting held. A key output of this Working Group will be the development of a roadmap for decarbonising industrial heat. This roadmap will be published in Q4 of this year and will clearly set out the pathway to decarbonisation of industry.
• Progress on the implementation of the actions in the 2022/23 Retail Forum Work Programme is continuing and is driven by the members of the three Retail Forum Working Groups - Town Centre First/Night-time Economy, Green Transition and Digitalisation and Skills. A special meeting of the Retail Forum and the wider grocery sector was held on 10 May to discuss the factors driving inflation for grocery goods which is higher than the general rate of inflation.
• A Working Group on the development of principles and guidelines on the ethical and trustworthy use of AI in the public service has met twice and developed a draft document, which they are continuing to progress. The recommendations of the Group will be brought to Government for consideration as soon as possible.
• In February 2023, I attended the OECD’s first ever Ministerial on Responsible Business Conduct (RBC) highlighting the growing importance of the area. To ensure the Department responds coherently and consistently with messaging on the various Responsible Business initiatives across different Divisions, a Responsible Business contact group has been convened bringing officials together to clearly drive this agenda forward.
• The Enterprise Digital Advisory Forum met in February and agreed its 2023 work programme.
• In March the Commercial Built Environment Roadmap Working Group was established and first meeting held. This Working Group is tasked with supporting enterprises in ensuring that the commercial built environment achieves its climate change targets through the development and publication of a Commercial Built Environment Roadmap by Q3 this year.
• In June the Consumer and Competition Protection Commission (CCPC) published their report, ‘A High-level Analysis of the Irish Grocery Retail Sector’ .
• Following publication of the White Paper on Enterprise 2022-2030 in December of 2022, the first of a series of consecutive two-year Implementation Plans was developed by the Department and published on the 31st of May. The Implementation Plan captures progress made against commitments, through bi-annual update reports, the first of which is due in Q3 2023.
• Following the review of TBESS changes have been made to the scheme in order to ensure more businesses are eligible to apply, the Finance Act which gave effect to these changes was commenced in mid-May.
• A review of the occupations on the Critical Skills Occupation List and Ineligible Occupations List for employment permits was launched in June.
Legislation
• The Representative Actions for the Protection of the Collective Interests of Consumers Bill 2023 was published in March. Final and Report stage took place in the Dáil on 21 June.
• The General Scheme of Plan of Action on Collective Redundancies following Insolvency Bill 2023 was approved by Government on 4 May. The General Scheme of the Bill underwent pre-legislative scrutiny at the JCETE on 31 May.
• The EU (Cross-Border Conversions, Mergers and Divisions) Regulations 2023 were signed on 24th May. The regulations make it easier for companies to restructure across jurisdictions within the EU.
• Control of Exports Bill 2023 was published on 4 May, with Committee Stage on 28th June.
• Phase one of the Personal Injuries Resolution Board Act 2022, to reform and enhance the Personal Injuries Assessment Board (PIAB) commenced with effect from 13 February. Phase one included legislative provisions regarding the retention of additional claims by the Board and the Court treatment of costs. Phase two will commence in September.
• Amendments to the Employment Permits Bill to provide for the Seasonal Employment Permit and a new option to transfer employer without needing a new permit have been approved by Cabinet on 23rd May.
• The Screening of Third Country Transactions Bill was considered by the Select Committee on Enterprise, Trade and Employment on 25th January. A number of amendments were agreed and the Bill will progress to report stage in Autumn.
• Government approved the priority drafting of the General Scheme of the Digital Services Bill 2023 in March and the Pre-Legislative Scrutiny report was received in June. Drafting is underway.
• On the 20th of June, Government approved the drafting of the Microenterprise Loan Fund (Amendment) Bill in accordance with the General Scheme.
• A public consultation and webinar, with over 500 participants in attendance, was held on the Corporate Sustainability Reporting Directive. A further webinar will take place on 4 July 2023. Stakeholder engagement will inform the ongoing transposition project.
• In addition, my Department has published a new Statement of Strategy for 2023 to 2025 which reflects the medium-term priorities for this Department. It sets out our mission to lead on sustainable economic development through the creation and maintenance of high quality employment across all parts of our country by: championing enterprise; ensuring a competitive business base to incentivise work, sustainable enterprise, innovation and investment; strengthening global connections and trade; promoting fair and competitive markets and responsible business practices; as well as safe, flexible and decent workplaces through the regulatory and enforcement work of the Department, its Offices and its Agencies.
217. Deputy Mairéad Farrell asked the Minister for Enterprise, Trade and Employment if there are rules in relation to online businesses which hold an Irish web domain address and market themselves as Irish, but yet are not registered for VAT, are not registered with the CRO and do not have a working phone number. [31907/23]
View answerMy Department has no role in the registering of Irish domain addresses. The Commission for Communication Regulation (ComReg) is the statutory body responsible for the regulation of the electronic communications sector in the State. The Electronic Commerce Act 2000 (as amended by the Communication Regulation (Amendment) Act 2007), provides that ComReg is responsible for the regulation of the .ie domain name. In 2009, ComReg announced the appointment .ie Domain Registry (IEDR) as the authority authorised to register .ie domain names.
The IEDR "Registration and Naming in the .ie Namespace Policy" provides information on the registration requirements for .ie domains and how they are managed after registration. The policy states that .ie domain names are only available to those based in the island of Ireland or those with a real and substantive connection to Ireland that must be proven. According to the IEDR Policy, evidence of this includes:
• an Irish CRO number (including N. Ireland equivalent), Revenue VAT number or Registered Business Number;
• evidence from a sole trader/partnership could be an Irish VAT number in their own name(s), or proof of their business or Irish income tax registration;
• evidence from a trademark holder that it holds a trademark that is enforceable in Ireland;
• evidence from an individual could be a digital copy of an Irish driver’s license or Irish passport.
The IEDR Policy also states when applying for a .ie domain name, a future registrant based outside the island of Ireland must show that they trade with, or clearly intend to trade with, consumers or businesses on the island of Ireland. Acceptable evidence of this connection to the island of Ireland includes invoices, press releases, promotional material, or even a screenshot of the registrant’s e-commerce store that shows that consumers or businesses can select anywhere in the island of Ireland as their location for delivery. Proof of the future registrant’s corporate or commercial identity must also be provided.
In respect of my Department I wish to advise that if a business is registered within Ireland or the EU they must comply with national and EU competition and consumer protection law. This includes under consumer protection law, the requirement to display information such as the businesses’ location, registered address and phone number. Businesses based outside of the EU who market and sell goods to consumers within the EU must also comply with EU laws. However, in practical terms, it may be very difficult for a consumer to get redress if they experience issues with goods or services purchased from companies outside of the EU.
The CCPC through their ongoing consumer awareness campaigns regularly advises consumers that a ‘.ie’ domain is not a guarantee of an Irish-based business and encourages consumers to check the details of a business before making an online purchase.
218. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the most commonly placed obstacles for manufacturing and services sector, with particular reference to the need to compete with imports and the equal need for our exports to compete on foreign markets; and if he will make a statement on the matter. [31950/23]
View answerMy department recognises that the manufacturing and services sectors face various challenges when it comes to competing with imports and ensuring the competitiveness of Irish exports in foreign markets such as cost competitiveness, technological innovation, global market access, skills and talent and supply chain resilience.
In that regard, Enterprise Ireland collaborates closely with Irish companies operating in the manufacturing and services sectors to tackle these challenges. EI offers assistance in the form of funding access, innovation programmes, mentorship, market intelligence, and opportunities for international networking. By capitalising on these resources, Irish businesses can boost their competitiveness, surmount obstacles, and achieve success in both domestic and international markets.
Irish business faced another challenging year in 2022, with energy costs, inflation and supply chain disruption impacting the trading environment. However, with a record €32 billion in export sales by Enterprise Ireland client companies, Irish business has demonstrated its ability to absorb global economic disruption and continue to compete and win in international markets.
219. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which Irish-manufactured products continue to compete on world markets; and if he will make a statement on the matter. [31951/23]
View answerMy Department’s White Paper on Enterprise to 2030 sets out an ambitious vision for Ireland’s enterprise policy, to protect Ireland’s strong economic position, and respond to challenges and opportunities that have emerged because of the pandemic, wider economic and geo-political developments, digitalisation, and an increased urgency to decarbonise industry. It provides for a sustainable, innovative and high-productivity economy, with rewarding jobs and livelihoods in the period ahead.
Irish-manufactured products continue to compete very well on world markets. With continued funding and assistance from my Department and, despite the challenges of the pandemic, inflation, the illegal war in Ukraine, and global supply chain disruption, 2022 was a record year for Irish-owned business in terms of international sales. Companies supported by Enterprise Ireland (EI) achieved export sales of €32.1 billion, an increase of 19% on the previous year, and growth occurred across all overseas regions and in individual industry sectors. Exports to the UK increased by 13% and the Eurozone increased by 28%. The Eurozone now accounts for 25% of all exports by EI client companies to a value of €7.9 billion.
In the UK, which is and will remain EI clients’ largest market, exports increased to €9.2 billion or 29% of total exports despite the continued challenges of volatility and uncertainty. The North American Market remained strong during the year with a growth rate of 13% of exports and now accounts for €5.5 billion or 17% of total exports. Food and Sustainability, Technology and Services, and Industrial and Lifesciences were the fastest growing sectors, increasing by 22% to €16.258 billion, 18% to €7.397 billion and 14% to €8.525 billion respectively.
Total sales by companies supported by EI (domestic and export sales) totalled €62.4 billion, with total spend in the Irish economy by EI backed companies exceeding €30 billion.
These are significant exports results and reflect the incredible innovation and ambition of the Irish enterprise sector. While the record 19% year-on-year increase in exports is influenced by inflation in certain sectors, most notably in the dairy industry, the results demonstrate the continued strength of Irish products and services in international markets. This is due to Ireland’s hard-won reputation for quality, service and innovation.
220. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which work permit-related visas continue to be issued in line with the requirements of those seeking such visas; if a quick turnaround can be managed; and if he will make a statement on the matter. [31952/23]
View answerThe Employment Permits Section of my Department informs me that all applications for employment permits are dealt with in date order. Processing times currently stand at 11-12 business days in respect of new permits for Standard Employers and 9-10 business days in respect of new Trusted Partner Employment Permits.
Applications in respect of Standard Critical Skills Employment Permits are processed in 10-11 business days and Trusted Partner Critical Skills Employment Permits are processed in 6-7 business days.
The Department plans to maintain processing times for all applications at this level, on the assumption that estimated demand remains at current levels for 2023.
The Employment Permits processing times are updated on a weekly basis at the following link: enterprise.gov.ie/en/What-We-Do/Workplace-and-Skills/Employment-Permits/Current-Application-Processing-Dates/.
221. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which any changes in foreign direct investment have been affected by international issues; and if he will make a statement on the matter. [31953/23]
View answerThere have been a number of international issues over recent months and years which may potentially impact FDI investors’ decision making, including the COVID-19 pandemic, Russia’s war against Ukraine and Brexit, as well as various geopolitical developments. While these global challenges persist, Ireland continues to be a location of choice for new investors and long-established companies alike.
Notwithstanding the foregoing challenges, IDA Ireland’s record annual results for 2022 demonstrate a strong flow of FDI into Ireland, with 242 investments won last year. The number of people employed by IDA multinational clients in Ireland reached 301,475 last year, the highest FDI employment level ever. Furthermore, Ireland has continued to perform at a high level into this year, with national employment reaching an all-time high of 2.6 million in Q1 2023.
It is noteworthy that these results were all achieved within a challenging economic and geopolitical environment including international factors such as rising energy costs, climate change, rising inflation, and increased international competition for FDI. These achievements, therefore, demonstrate not only the resilience of Ireland’s FDI sector amid global uncertainty, but also Ireland’s stable and attractive business environment, which enables global companies to successfully scale and grow from Ireland. Half of the multinationals located in Ireland have been here for 10 years or more, while one-third have been in Ireland for 20 years or more, another useful metric of how competitive Ireland is for FDI.
To ensure that Ireland continues to thrive in this uncertain global environment, my Department will continue to work alongside IDA Ireland to strengthen Ireland’s business environment and FDI value proposition. In that regard, the White Paper on Enterprise, which we launched last December, sets the strategic direction for job-creation and enterprise growth for the years ahead. The White Paper addresses changes in the international trading environment, vulnerabilities in our enterprise sector, and the need to integrate climate change commitments and the digital transition into enterprise policy for the decade ahead. It is under this framework that my Department will continue to address and respond to the challenges and obstacles emerging from our changing global environment.
222. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the incentives currently available for small start-up enterprises; and if he will make a statement on the matter. [31954/23]
View answerThe Local Enterprise Offices are a ‘first-stop-shop’ for providing advice and guidance, financial assistance and other supports to those wishing to start or grow their own business and act as a ‘signposting’ service for all government supports available to the SME sector and can provide information/referrals to other relevant bodies under agreed protocols e.g. Revenue, Micro Finance Ireland, Fáilte Ireland, LEADER, and Enterprise Ireland.
The LEOs offer direct grant assistance to small businesses operating in the manufacturing and internationally traded services sector. Subject to certain eligibility criteria, the LEOs can provide financial assistance within four main categories; Feasibility Grants to help with the cost of researching a proposed business idea to determine if it could be viable and sustainable. Priming Grants for businesses trading less than 18 months to help with the associated costs of start-up. Business Expansion Grants, designed to assist businesses in their growth phase and Technical Assistance for Micro Exporters (TAME) which assists small businesses to explore and develop new export market opportunities, including contributing to the costs of attendance at trade shows overseas.
The Local Enterprise Offices provide a wide range of high-quality business and management development programmes, and a suite of productivity and competitiveness supports that are tailored to meet specific business requirements. Whether it is a new start up or growing an existing business there is something suitable for anyone exploring self-employment as an option or for those who are currently operating a business.
I would particularly recommend that any new business owner enquire about the Start Your Own Business (SYOB) Programme, which assists participants in assessing their business idea, its viability and then making an informed decision on whether to proceed or take a step back. The programme is designed to guide participants through the various aspects of business and business planning with no prior business knowledge necessary.
I would also suggest availing of the LEO Mentor Programme, where business owners can seek the advice of an experienced mentor to help identify solutions to areas of exposure within their business. With advice and guidance from their mentor, clients can develop strategies that are more robust, which address issues and maximise potential opportunities.
223. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which Ireland’s trade with Europe and the UK has been affected by Brexit; and if he will make a statement on the matter. [31955/23]
View answerThe Central Statistics Office compiles statistical data in relation to goods exports and imports. According to CSO data, goods trade with both the UK and the EU27 in 2022 reached the highest level on record. With data now available for the period January to April 2023, it can be seen that the increase in trade with the UK and the EU27 has continued into 2023.
In 2022 Ireland’s goods exports to the UK were valued at €22 billion, a 22% increase over 2021. The value of goods imports from the UK was €29 billion, 50% higher than 2021.
In 2022 Ireland’s goods exports to the EU27 were valued at €80 billion, a 30% increase over 2021. The value of goods imports from the EU27 was €43 billion, 24% higher than the previous year.
Enterprise Ireland reported record exports by its client companies in 2022, which included a 13% increase in exports to the UK, reaching €9.2 billion, and a 28% increase in exports to the Eurozone, to €7.9 billion.
The Department and its agencies work together to assist companies to access new opportunities in overseas markets. This includes the new Post-Brexit Market Growth and Diversification Grant to help Irish companies impacted by Brexit to explore international growth opportunities. This initiative complements the other Brexit supports available through Enterprise Ireland’s Brexit Adjustment Initiative, which provides practical, expert support on issues, including strategic planning, marketing, innovation and competitiveness.
224. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the countries from whence he sees the greatest competition for Ireland over the next five years in respect of the manufacturing and services sectors; and if he will make a statement on the matter. [31956/23]
View answerTogether, the manufacturing and services sectors comprise the vast majority of economic activity in Ireland.
Enterprise Ireland (EI), the state agency responsible for supporting the development of manufacturing and internationally traded services companies, acknowledges that the global landscape for the manufacturing and services sectors is highly dynamic and subject to evolving market conditions. While it is difficult to predict the greatest competition for Ireland in the next five years, several factors influence competitiveness in these sectors. It is important to note that competition can arise from unexpected sources as global dynamics and economic conditions evolve.
EI works closely with Irish businesses to identify market opportunities, enhance competitiveness, and develop strategic advantages in various sectors. Furthermore, EI provide support through market research, business development initiatives, innovation programs, and international networking opportunities, helping Irish companies navigate global competition effectively.
This is a period of change in the global trading environment, with a slowdown in the process of globalisation and moves toward open strategic autonomy in the EU. We must remain vigilant as we navigate these challenges. However, there are opportunities too, particularly as we work towards the twin green and digital transitions.
Earlier this month, the Institute for Management Development (IMD) published its World Competitiveness Yearbook 2023. The IMD Competitiveness Yearbook assesses and ranks 64 economies around the world based on their ability to create and maintain a competitive business environment. The rankings are based on more than 336 indicators grouped across four pillars: Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure.
This year’s report ranks Ireland as the most competitive country in the Euro Area and the 2nd most competitive economy in the world. This is an improvement from 11th position last year. Ireland’s performance reflects steady progress across specific sub-factors over a number of years – such as under ‘Government Efficiency’, alongside strong economic results which have boosted its ranking under ‘Economic Performance’.
In their assessment, the IMD note that the top four countries are small, advanced economies which make good use of their access to markets and trading partners. Ireland places second to Denmark, with Switzerland, Singapore and the Netherlands rounding out the rest of the top five.
Earlier this year, the National Competitiveness and Productivity Council (NCPC) published Ireland’s Competitiveness Scorecard 2023, which benchmarks the competitiveness of Ireland’s economy against international peer countries. The Scorecard gathers a wide range of indicators on Ireland’s relative strengths and weaknesses, that influence our competitiveness position, and flags areas that are negatively impacting on competitiveness and where Ireland’s relative position is not keeping pace with its competitors.
The data in the Scorecard show that, overall, the Irish economy remains internationally competitive. However, there are still several critical areas where Ireland currently falls behind the countries against which we benchmark ourselves, most particularly in relation to energy, infrastructure, spending on R&D and venture capital, and interest costs to businesses.
Later this year, the NCPC will release its flagship annual publication, Ireland’s Competitiveness Challenge 2023 . This comprehensive report will make recommendations to Government on the best ways to drive productivity, improve Ireland’s competitiveness and achieve sustainable and inclusive growth in the Irish economy.
225. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which innovation and technology is likely to feature in the creation of indigenous jobs throughout the country in the next five years; and if he will make a statement on the matter. [31957/23]
View answerThe Government recognises the need for sustained funding for programmes aimed at driving innovation within Irish-based firms, building exports and creating jobs. Funding to support industry investment in innovation is essential to maintain an enterprising and productive economy. This innovation is core to creating and maintaining high-value jobs, helping to attract investment and develop business in Ireland.
Investment in research, development and innovation (RD&I) by our indigenous companies is critical to ensuring that we have a strong competitive economy which translates into improved job creation and enterprise performance. Companies which invest in RD&I often achieve greater levels of growth, delivery and drive societal benefits, and produce solutions to global challenges such as climate change, sustainability and digital transformation, as well as the creation and maintenance of high-value jobs.
Over 25 years, Ireland has gone from a base of 800 RD&I active firms with a research spend of €300 million to almost 1,800 RD&I active enterprises spending of €3.88 billion in 2021. Enterprises in Ireland reported a 19% increase in research and development (R&D) expenditure to €3.88 billion in 2021, compared to €3.26 billion in 2019. Labour costs accounted for the largest proportion of R&D expenditure, rising to €2.05 billion in 2021 from €1.7 billion in 2019. This reflected a growth in employment of R&D staff to 32,961 in 2021 from 27,755 in 2019.
Irish-owned enterprises reported a 22% increase in R&D spend between 2019 and 2021, up from €963 million to €1.18 billion. In 2021, there were 32,961 persons engaged in R&D in Ireland. Of this total, 50.8%, or 16,739 persons, were employed as researchers, of which 2,491 were PhD qualified researchers. In addition, there were 8,690 (26.4%) technicians and 7,532 (22.9%) support staff.
The number of R&D personnel engaged in small enterprises in 2021 was 9,338, accounting for 28.3% of all R&D personnel. Medium enterprises had 8,659 persons engaged, accounting for 26.3% of all R&D personnel, compared with 14,964 persons or 45.4% of R&D personnel engaged in large enterprises.
From Eurostat’s R&D intensity rate survey in 2019, Ireland ranked 13th in the EU 27. Ireland is also identified as a ‘Strong Innovator’ in the European Commission’s European Innovation Scoreboard for 2022. This underlies the need for sustained and ambitious RD&I investment programmes that my Department and its agencies are rolling out to deepen innovation capability across the enterprise sector, in particular the innovation performance of our SMEs.
The policy framework set up by my Department supports a key role for innovation and SMEs in economic policy. The Enterprise White Paper, published in December 2022, provides a fresh impetus for progress in indigenous job creation. It sets a vision for enterprise to succeed through competitive advantage founded on sustainability, innovation and productivity, as well as delivering rewarding jobs and livelihoods.
To this end, the Enterprise White Paper will step up enterprise innovation with ambitious targets, including achieving a doubling of business expenditure on research and development (BERD) and a doubling of the number of High-Potential Start-Ups (HPSUs) from research. To maintain and build on Ireland as a strong innovator, core enterprise innovation initiatives for 2023-2024 will bolster in-house research, development and innovation activity, industry-academic collaboration, research commercialisation and deliver an increased number of spin-outs. We will also work to ensure the range of advisory and financial supports offered, including the new measures being introduced as part of the European Regional Development Fund (ERDF) funding programmes, are targeted and optimised to best help businesses at every stage of their innovation journey.
My Department published the National Smart Specialisation Strategy for Innovation in June 2022. Its overall objective is to ensure that Ireland’s innovation ecosystem at national and regional level is fit for purpose, particularly given our strategic priorities around the twin digital and green transition, as well as the need to address regional economic imbalances. Smart specialisation will be deployed to address ecosystem gaps and improve performance across all regions, building on place-based strengths. The strategy is focused on driving growth based sectoral strengths and emerging opportunity areas. It is also central to ensuring effective connections between the Regional Enterprise Plans, national level innovation policy implementation and the Regional Assemblies.
Smart Specialisation is supported by almost €400 million in ERDF plus national co-funding over the period 2022 to 2027, aimed at scaling the existing network of national R&D facilities and clusters, as well as increasing the intensity of business R&D across all regions through strengthening industry-academic collaborations. This includes strengthening the technological universities capacity to help with research and technology transfers between SMEs and higher education institutions.
The implementation of smart specialisation on a cross-departmental and cross-agency basis will ensure policy alignment across national and regional enterprise development initiatives, including through Regional Enterprise Plans and the forthcoming national clustering programme, along with activating international collaborative opportunities on regional enterprise innovation, including through EU initiatives such as Regional Innovation Valleys.
Enterprise Ireland (EI) plays a particularly important role in supporting indigenous job creation in Ireland. In 2022, EI created 19,660 new jobs, growing net employment by 5%. Support for innovation and technology through investment in RD&I played a crucial role in delivering this result. To this end, EI’s RD&I programme budget was increased to €136 million for 2023. Up to €132 million will be spent by EI on RD&I activities such as direct firm level R&D grants and equity; collaborative measures such as Innovation Vouchers, Innovation Partnerships and commercialisation of research. In addition, my Department is supporting the establishment of four new European Digital Innovation Hubs with an allocation of €27 million until 2026. The hubs have been designated by the European Commission as part of a European wide network to act as one-stop-shops for SMEs to strengthen their digital capabilities.
My Department has secured additional funding for research development and innovation of €117 million over the seven years of the ERDF. EI, working with my Department and the Managing Authorities, is using the ERDF funding for the following three innovation programmes -
• Knowledge Transfer Boost programme – to bridge the knowledge transfer gap between industry and academia by funding Tech Transfer specialists in the university system across Ireland.
• Technology Gateways programme – to provide each Technological University (TU) with an industry gateway. It will provide dedicated staff to work with industry to articulate company problems in a manner that can be addressed by the expertise in each TU.
• Innovators’ Initiative programme - to build on existing international and national best practice in immersive-based, needs-led innovation training programmes connecting with industry sector clusters in a particular region.
On 30 May, I announced the successful 17 applications for the Technology Gateway Programme. Calls issued for the other two programmes, Knowledge Transfer Boost and the Innovators’ Initiative, in February this year and the applications are currently being assessed.
Other supports available include the Disruptive Technologies Innovation Fund (DTIF), which is a €500 million challenge-based fund established under Project Ireland 2040 and set up under the National Development Plan (NDP) 2018-2027 for investment in the development and deployment of disruptive technologies and applications on a commercial basis. DTIF encourages enterprises in Ireland to collaborate and exploit the business opportunities associated with disruptive technologies by de-risking projects; build on research undertaken to support the delivery and exploitation of new technology-based solutions from that research; and foster deeper and wider RD&I collaborations between the public and private sectors in key technology areas. This year, and through to 2027, competitive call No. 6 seeks applications from innovative consortia with projects across six national research priority areas. Applications are encouraged for projects which complement the priority areas set out in the White Paper on Enterprise, including digital transformation and integrating decarbonisation and net zero commitments.
