Paul Murphy
Question:6. Deputy Paul Murphy asked the Minister for Enterprise, Trade and Employment if he supports sub-minimum rates of pay for young workers; and if he will make a statement on the matter. [31661/23]
View answerNational Minimum Wage
Questions (6)
Written answers
I want to thank Deputy Murphy for raising this with me today, I know we had a good engagement on this issue just a few weeks ago and I’m happy to continue this today.
Before I start I would like to put this discussion into context. In 2011, the minimum wage was €7.65 per hour. Today the full rate stands at €11.30, and we saw a 7.8% increase this year alone.
This work is happening alongside the commitment made by the now Taoiseach as Minister for Enterprise to move towards the introduction of a living wage by 2026.
As you will be aware, this in practice means a wage of 60% of hourly median wages. This is in line with the recommendations of the Low Pay Commission.
We are fully committed to ensuring that work pays, for every worker, and I think we have proven ourselves in this regard. Not only have we increased the minimum wage, we also adjusted the Universal Social Charge to ensure that the rise in the minimum wage was actually felt by these workers.
The Low Pay Commission is the independent body composed of employee, employer and independent members, which advises the Government on the setting of a minimum wage that is fair and sustainable and which will not have significant negative consequences on employment and competitiveness.
The Low Pay Commission previously undertook a review of the sub-minimum, or youth rates, as part of its work programme in 2017. At that time, it recommended abolishing the training rates that then existed and simplifying the youth rates by moving to age-related, as opposed to experience-based rates.
The LPC recommendations were accepted by the Government and introduced as part of the Employment (Miscellaneous Provisions) Act 2018. The LPC commissioned its own research, carried out by the Economic and Social Research Institute, and consulted widely on this matter before making its recommendations.
As some time has passed and we want to ensure that our legislation is fit for purpose in the context of significant changes in the labour market and the economy, last year the then Tánaiste and Minister for Enterprise, Trade and Employment requested the Low Pay Commission to again examine the issues relating to retaining or removing the youth rates and to make recommendations on the subject.
To inform its work, the Commission has again asked the ESRI to conduct background research on the issue. The Commission has also recently launched a targeted stakeholder consultation on the subminimum rates issue, which will also inform this work.
The Low Pay Commission’s report and recommendations on sub-minimum rates are expected later this year. The Government does not want to pre-empt its work or suggest a course of follow up action pending receipt of the Commission’s report and recommendations.
While the issue of sub-minimum youth rates is being considered, the Government will continue to be guided by the recommendations of the Low Pay Commission, with regard to any changes to the National Minimum Wage.
Business Regulation
Questions (7)
Seán Haughey
Question:7. Deputy Seán Haughey asked the Minister for Enterprise, Trade and Employment his plans for regulation of technology in business; and if he will make a statement on the matter. [31432/23]
View answerWritten answers
Technologies and their applications continue to advance at pace and it is a challenge globally to develop regulation that is flexible and adaptable to future progression.
My Department is active in the negotiations of digital regulation at EU level, and continues to make the case in Europe for the need to strike a balance between measures necessary to secure the digital economy without impeding innovation and growth. My Department also continues to be a strong voice in Europe for protection of the country-of-origin principle.
Specifically, my Department is currently leading on several recent and forthcoming digital regulations. It is responsible for the implementation in Irish law of the EU Digital Services Act, which is a regulation that came into force in EU law in November 2022 and will fully apply in Member States from 17 February 2024. This regulation imposes due diligence obligations on online intermediary service providers with the aims of providing better protection to consumers and their fundamental rights online, establishing powerful transparency and clear accountability frameworks for online platforms, and fostering innovation, growth and competitiveness within the single market.
In March this year, Government approved the General Scheme for the Digital Services Bill. 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. Pre-legislative scrutiny of the General Scheme was completed in June and officials in my Department are now working with the Office of the Parliamentary Council to draft the Bill.
Officials in my Department are also working on identifying provisions in the EU’s Digital Markets Act that require national implementing measures. The Digital Markets Act is an EU regulation that aims to ensure that large online platforms that act as so called "gatekeepers" in digital markets behave in a fair way online. Gatekeepers will have need to comply with the DMA by March 2024 at latest.
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 be implemented coherently, with functions being assigned to appropriate bodies. The incoming Spanish Presidency has indicated that it is prioritising this file and it is expected that this Regulation will be agreed by the end of 2023 or early 2024.
In addition, my Department is 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.
I fully appreciate that the volume and pace of new digital regulation emerging will present challenges to many businesses. As these regulations come into effect, Government will continue to review resources, to ensure our regulators have the right skills to implement well and the appropriate numbers of staff to actively coordinate their efforts to ensure a coherent digital regulatory framework is available for businesses.
Questions Nos. 8 to 12, inclusive, answered orally.
Inflation Rate
Questions (13)
Louise O'Reilly
Question:13. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment his views on European Central Bank data that corporate profiteering is contributing more to inflation than wages, and similar data from the Central Bank of Ireland’s quarterly report that profits have contributed more to domestic inflation than wages; and if he believes that profit restraint will have a key role in reducing inflation. [31540/23]
View answerWritten answers
In my view, profit restraint on the part of firms has an important role to play in reducing headline inflation in the coming years. Recent analysis from the Central Bank of Ireland suggests that profits have contributed significantly to ‘Gross Value Added inflation’ – which is an alternative measure of inflation - in both 2021 and 2022, compared to a lower average contribution from profits to inflation over the longer period from 2001 to 2020. I also note that since the onset of the pandemic in 2020, the contribution of labour costs to this measure of inflation has been relatively flat.
The analysis from the Central Bank of Ireland would suggest substantial pass-through of increased input costs to consumers, in the form of higher prices. With the Central Bank of Ireland forecasting a slowing in the pace of inflation, the price increases passed on to customers to date should provide a buffer for firms to absorb wage increases without the need to further increase output prices. The Central Bank also forecast real wage growth of 0.7 per cent in 2023 and 2.4 per cent in 2024. Alongside the prevailing tight labour market conditions in Ireland currently, this will mean that for Ireland to see lower levels of inflation in the coming years then profit restraint will need to be a part of this.
In a separate analysis, the Central Bank finds that Gross Value Added inflation has a significant, but not dominant, role in determining headline consumer inflation in Ireland. However, looking ahead, their view is that the pace of growth in headline consumer inflation will likely be dominated by developments in externally-determined energy prices.
Government has supported enterprise though a period of excessive energy cost inflation, in order to minimise the impact on firms and ultimately minimise the impact on consumers. While I acknowledge that the impact of energy price increases varies significantly by sector, and that firms in increasing their prices, may be acting in a precautionary way in order to offset future cost increase, I believe it is important that firms act sensibly in their pricing to reduce risks of a wage-price spiral which would have lasting effects on inflation.
Ireland was recently ranked the second most competitive economy in the world in the IMD World Competitiveness Rankings. Despite this high ranking, we performed poorly in the area of prices. In order to maintain our international competitiveness in future, it is important to make progress on price levels in order to improve our cost competitiveness. Profit restraint can contribute to this.
Industrial Development
Questions (14)
Neasa Hourigan
Question:14. Deputy Neasa Hourigan asked the Minister for Enterprise, Trade and Employment if he will provide an update on the work of his Department and Enterprise Ireland on the CIRCULÉIRE Programme; the expected outputs of the programme for 2023; and if he will make a statement on the matter. [31160/23]
View answerWritten answers
CIRCULÉIRE is the first cross-sectoral industry-led innovation network dedicated to closing the circular innovation gap and accelerating the net-zero carbon circular economy in Ireland. CIRCULÉIRE was launched in 2020 by Irish Manufacturing Research (IMR), an Enterprise Ireland and IDA Ireland supported Technology Centre, in partnership with the Department of the Environment, Climate and Communications, the Environmental Protection Agency, the European Institute of Innovation and Technology, and 25 cross-sectoral Founding Industry Members.
Between 2020 and 2023, CIRCULÉIRE has taken manufacturers and their supply-chains on a journey from linear to circular business models through baselining, assessments, business case development, innovation projects and thematic working groups raising industry awareness of circular practices and supporting its’ members to contribute to their voluntary commitment to reduce their collective CO2 emissions and waste.
One key outcome of CIRCULÉIRE is the growth of the cross-sectoral industry membership engagement which has seen a doubling in membership engagement in the programme with over 50 cross-sectoral members now participating. In 2023, cross-sectoral knowledge sharing was further improved through the establishment of quarterly network and member meetings which also includes site visits to Industry members. CIRCULÉIRE have also organised funding access support clinics this year to continue to build capacity within CIRCULÉIRE's network members to leverage national and EU grant funding to pilot or scale-up circular economy implementation.
A total of 10 pilots have been funded under the €1.5 million Circular Economy Innovation Demonstration Fund, with €300,000 of direct contributions from industry grant recipients. The network innovation fund is dedicated to funding large-scale systems-level innovation. One recent applicant under this fund is the Design & Crafts Council Ireland that is partly funded by my Department and in collaboration with colleagues in NCAD and Creative Futures Academy jointly applied for funding for their programme titled Circular by Design. Circular by Design is a first-of-a-kind training programme that supports textile and fashion designers, brands and manufacturers to make the transition to circular practices in every step of their design practice, value chain and business model. In its pilot year, the programme trained 11 textile brands and aims to expand this to train an additional 50 Irish textile designers, brands and manufacturers in the coming years.
In November 2022, in recognition of the noteworthy progress made by CIRCULÉIRE, the Department of the Environment, Climate and Communications announced a €1.5 million continuation funding for the initiative in 2023 to build on the momentum to date and maintain critical industry engagement.
CIRCULÉIRE’s Circular Venture Programme was also relaunched for 2023. It is the first of its kind in Ireland targeting circular ventures seeking to scale. The programme is a combination of non-equity funding and mentoring that supports circular entrepreneurs who are demonstrating or enabling circular models to impact Ireland’s consumer behaviour, the economy, and accelerate the national transition to a circular economy.
In 2023 CIRCULÉIRE was also involved as a Co-designer of the International Circular Economy Hotspot Dublin. This event explored, showcased, and celebrated ground-breaking Irish and international circular economic initiatives, inspired by the very best in sustainability. Ireland has made significant strides in embracing circularity, and this event and the wider CIRCULÉIRE programme will further accelerate our progress in closing the circularity gap.
Question No. 15 answered orally.
Work Permits
Questions (16)
Colm Burke
Question:16. Deputy Colm Burke asked the Minister for Enterprise, Trade and Employment how often his Department carries out a review of the employment permits lists; how long these review take before the lists are updated; how stakeholders and interested parties have been made aware of these reviews in order to part-take in same; and if he will make a statement on the matter. [31604/23]
View answerWritten answers
The employment permits occupations lists are usually reviewed once or twice a year, depending on other economic migration policy priorities, such as the new Employment Permits Bill. The reviews incorporate a public consultation, seek the views of lead policy departments and consider relevant research. The process from opening the consultation to making amendments to Regulations can take a number of months, depending on the volume and complexity of the submissions received.
Submissions are invited via an announcement launching a review on my Department’s website and announced through various media, including social media. In addition, interested parties may register their interest in the opening of any future public consultation through a link on my Department’s website. Those registered will receive an email bulletin advising that the review process has opened.
On 26th June a consultation period for a new review was opened, which is scheduled to last for 8 weeks, providing ample time for sector representatives and employers to gather their evidence to seek changes to be made to a range of occupations.
My Department keeps the employment permits system under review in light of changing labour market circumstances and outside of the full review process the Department continues to be in contact with relevant policy departments and other stakeholders to address particular challenges as they arise.
My Department actively responds to the concerns raised by various sectors with regard to the critical short supply of skills in a number of roles and this has been highlighted by the number of amendments made to the Employment Permits Regulations over the last two years.
European Parliament
Questions (17)
Jim O'Callaghan
Question:17. Deputy Jim O'Callaghan asked the Minister for Enterprise, Trade and Employment his views on the negotiating position adopted by the European Parliament in relation to its discussions with the European Council on the proposed Artificial Intelligence (AI) Act; and if he will make a statement on the matter. [31382/23]
View answerWritten answers
The draft EU Artificial Intelligence Act (AIA) sets out harmonised rules for the design, development, placement on the market and use of AI systems in the Union. The Regulation aims to ensure the protection of fundamental rights and user safety, as well as to build trust in the development and uptake of AI, thereby enhancing EU investment and innovation. The proposal aims to address the risks generated by specific uses of AI through a set of complementary, proportionate, and flexible rules.
Ireland very much welcomes the development of the AIA and the progress that has been made both at Council and at the European Parliament to advance this important file. Given that AI has evolved significantly in the last months, it is important that this regulation is flexible and future proofed to ensure that it continues to protect the safety and fundamental rights of the individual while at the same time, ensuring that innovation for good continues in this area.
The European Parliament agreed its approach by plenary vote on 14th June 2023. My officials are currently examining the text and consulting with relevant stakeholders to refine Ireland’s position on the text. We are supportive of measures that provide clarity and reassurance to all stakeholders engaged in this complex and evolving area, and particularly measures which help to ensure a level playing field in Europe.
We are aware there that there are still some matters that will require more detailed discussion, and this will be a priority for my Department over the coming weeks and months. It is already clear from the first Trilogue meeting that some issues like an agreed definition of AI will be more difficult to resolve than others. However, given how quickly this technology has evolved over the last months, it is clear that there is a willingness amongst all parties to move forward and to reach an agreement on this regulation by the end of 2023 or very early into 2024.
Regional Development
Questions (18)
Robert Troy
Question:18. Deputy Robert Troy asked the Minister for Enterprise, Trade and Employment when the regional enterprise development fund will be open for new applications; and if he will make a statement on the matter. [31325/23]
View answerWritten answers
The Government has provided substantial funding to assist regions to support enterprise activity, promote regional growth and create jobs.
The Deputy will be aware that my Department has secured up to €145 million to 2027 from the European Regional Development Fund which will support projects aligned to my Department’s Regional Enterprise Plans.
The draft Scheme, the ‘Smart Regional Enterprise Innovation Scheme', will be aimed at accelerating economic growth in all regions of the country by delivering on the potential of local and regional enterprise strengths.
The draft Scheme will build on initiatives previously funded under the Regional Enterprise Development Fund and Border Enterprise Development Fund and support new collaborative and innovative regional projects. This activity will align with the outcomes of the nine Regional Enterprise Plans and Ireland’s Smart Specialisation Strategy around digitalisation and green transformation goals for industry.
The draft Scheme also builds on lessons learned from previous regional funding schemes and will include different streams to support different types of project; it is proposed to include streams on large strategic change projects, expansion of existing projects, clustering initiatives and feasibility/priming funding.
Before the first call under the Fund can be launched, a number of approvals must be secured, namely from the European Commission, the Regional Assemblies, who are the Managing Authorities of the ERDF, and the Department of Public Expenditure, NDP Delivery and Reform.
Enterprise Ireland has been engaging with the Regional Assemblies and the European Commission for a number of months on the eligibility and Scheme content. While discussions are taking longer than anticipated, for example to consider the Scheme content, these discussions are nearing conclusion.
I can assure the Deputy that I am keen to announce the first call of €35m under the ERDF and get the funding out to the regions as soon as possible, and I hope that we can announce the new call in the coming months.
Work Permits
Questions (19)
James O'Connor
Question:19. Deputy James O'Connor asked the Minister for Enterprise, Trade and Employment when he expects proposed changes to employment permit law to take effect; and if he will make a statement on the matter. [31651/23]
View answerWritten answers
The new Employment Permits Bill is continuing its legislative process in the Houses of the Oireachtas. The Bill has been drafted to respond to the need to consolidate existing employment permits legislation, to modernise some provisions, to increase the agility and responsiveness of the system, and facilitate a more streamlined and flexible approach to the employment permits system in Ireland.
The principal features of the Employment Permits Bill include the introduction of a Seasonal Employment Permit to cater for short term and recurrent employment situations in appropriate sectors. The introduction of the option for certain permit holders to transfer from one employer to another within the same sector. The Bill will also move operational detail to Regulations in order to allow for easier modification and adaptation to the changing needs of the labour market.
For increased efficiency there will be amendments to the Labour Market Needs Test, which requires that a role be advertised across the EEA prior to a permit being sought. These amendments will reflect modern advertising practices more accurately, and greater flexibility to amend the periods for which an employment permit can be granted, which can help to reduce the number of applications received and mitigate against the kind of processing delays we have recently experienced.
The Bill includes the addition of new conditionalities attaching to the grant of an employment permit which would increase apprenticeship and training opportunities and, hence, reduce future reliance on the employment permit system. There is also a provision for the automatic indexation of salary thresholds to ensure that the minimum remuneration levels required for each permit type keeps pace with wage growth.
Following Government approval last month, my Department is engaging with the Office of the Parliamentary Counsel on drafting the amendments to the Bill to provide for provisions under the Seasonal Employment Permit, and to allow General Employment Permit and Critical Skills Employment Permit holders transfer employer after a prescribed period has passed from the start of their first employment in the State. The amendment will allow these permit holders to transfer employer without the requirement to apply for a new employment permit. The initial period prescribed will be nine months.
Report stage for the Employment Permits Bill 2022 is being scheduled, subject to the completion of the draft text of these amendments. Report Stage is expected during the first weeks after the Dáil summer recess. The Bill will then pass through the Seanad stages in the autumn, with enactment expected towards the end of the year or early next year.
Enterprise Policy
Questions (20)
Maurice Quinlivan
Question:20. Deputy Maurice Quinlivan asked the Minister for Enterprise, Trade and Employment if he will discuss the White Paper on Enterprise 2022-2030; and what steps are being taken to ensure improved funding for local enterprise offices. [31489/23]
View answerWritten answers
The White Paper on Enterprise was published in December 2022 and sets out the Government’s approach to enterprise policy for the period to 2030. The vision set out in the White Paper is for Irish-based enterprise to succeed through competitive advantage founded on sustainability, innovation and productivity, delivering rewarding jobs and livelihoods.
The White Paper includes key targets for employment and the seven priority enterprise policy objectives identified in the White Paper:
• 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.
Additionally, the White Paper focuses on ensuring the correct framework conditions are in place to enable enterprise to thrive, including in key areas like access to finance, skills, and infrastructure.
Last month, I published the White Paper Implementation Plan 2023-24, which is the first in a planned series of consecutive two-year implementation plans setting out the steps Government is taking to realise our vision for enterprise. This first implementation plan identifies a portfolio of 40 key initiatives across all seven policy priorities that, while not exhaustive, reflect the range and depth of activities planned and underway in my Department, our enterprise agencies, and across Government.
The White Paper notes the significant role that Local Enterprise Offices (LEOs) will play in strengthening the enterprise ecosystem across Ireland and supporting microbusinesses and SMEs to prosper in all regions. This includes both increasing the scope of firms eligible for LEO supports, as well as increasing the depth of existing services provided to ensure that the appropriate skills programmes, enterprise supports and business advisory services are made available to assist Irish businesses.
Since the establishment of the LEOs in 2014, the capital programme budget for the network has almost doubled from €18.5 million to €35.8 million in 2023.
In 2023, funding for the LEOs was increased by €4m to provide for the introduction of new schemes, including the extension of the LEO mandate to engage with businesses employing up to 50 employees. The pilot for this received an allocation of €2m in Budget 2023. The recently announced Energy Efficiency Grant, which has been introduced on a pilot basis to assist businesses in undertaking an energy saving project, also received €2m in funding this year. These measures have been introduced alongside other interventions, such as Green for Micro and Digital start, to address the evolving enterprise agenda and meet recognised needs within the SME sector.
Business Supports
Questions (21)
Jennifer Murnane O'Connor
Question:21. Deputy Jennifer Murnane O'Connor asked the Minister for Enterprise, Trade and Employment for an update on the action being taken by the IDA and Enterprise Ireland to support new businesses and jobs to Carlow; and if he will make a statement on the matter. [31391/23]
View answerWritten answers
Performance has been strong in the first half of the IDA strategy 2021-2024 despite the difficult global economic environment. Total employment in IDA client companies reached 301,475 in 2022 - a 9% increase on 2021 - with over 24,000 net new jobs created. Furthermore, 260 investments of the 400 targeted over the lifetime of the Strategy for regional locations have been won.
Employment in IDA client companies in the South-East region grew by 3% and regional employment now stands at 163,653 an increase of 7% on the previous year. There are 86 IDA client companies employing 15,520 people in the region of which 4 are in Carlow employing approximately 1,500 people. Moreover, the IDA’s Regional Property Programme will deliver 19 Advanced Building Solutions in 15 regional locations over the lifetime of their current strategy and this includes the 'Advanced Building Solution' in Carlow which is completed and included as part of IDA marketing material for FDI and Enterprise Ireland clients alike.
Enterprise Ireland has approximately 68 client companies in County Carlow, employing 3,815 people across a broad number of sectors. In 2022, the South-East Region, including Carlow, witnessed positive developments in terms of support for new businesses and job creation. Enterprise Ireland played a significant role in this endeavour, with, for example, six start-ups from the South-East Region securing High Potential Start-Up investments totalling over €1million from Enterprise Ireland.
I can assure the Deputy that both Agencies will continue their efforts in support of further employment opportunities for Carlow and the South-East Region.
Industrial Development
Questions (22)
Aindrias Moynihan
Question:22. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment what measures are being taken to improve on Ireland's current position in innovation; and if he will make a statement on the matter. [31663/23]
View answerWritten answers
For an advanced economy like Ireland, innovation is the best way to generate sustainable, long-term productivity growth. Investment in research, development and innovation (RD&I) by companies and enterprises is critical to ensuring we have a strong competitive economy.
This underlines the importance of sustaining the 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 Enterprise White Paper aims to achieve a doubling of business expenditure on R&D (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. Further investment commitments under the €500 million Disruptive Technologies Innovation Fund (DTIF), currently on its sixth call, will enable more Irish-based firms and research performing organisations to become leaders in research and deep-tech applications.
My Department has developed the National Smart Specialisation Strategy for Innovation 2022-2027 to ensure Ireland’s investments in RD&I are aligned with Ireland’s sectoral strengths and opportunities at national and regional level, and support the twin digital and green transition. The Strategy is underpinned by ERDF regional investment funding of just under €400 million under Programme Objective One – a Smarter Europe. This includes three Enterprise Ireland ERDF supported RD&I funding schemes supported by my Department with €15.6 million in funding made available for 2023: Knowledge Transfer Boost, the Technology Gateways programme and the Innovators’ Initiative.
The Enterprise Ireland 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.
IDA Ireland partners with clients to support FDI investment in RD&I which underpins growth opportunities and enhances the reputation of Irish operations at corporate level, along with their ongoing resilience including sustaining high-paying jobs.
Question No. 23 answered orally.
EU Regulations
Questions (24)
Seán Haughey
Question:24. Deputy Seán Haughey asked the Minister for Enterprise, Trade and Employment what discussions he has had with his EU colleagues in relation to harmonised rules for the development, placement on the market, and use of AI systems in the EU. [31433/23]
View answerWritten answers
Officials from my Department have been engaged in the negotiations on the EU Artificial Intelligence Act (AIA) since the proposal was published by the Commission in April 2021. The Act will put in place a horizontal EU regulatory framework which will apply to AI designed, developed or used in the EU, addressing the risks generated by specific use cases through a set of complementary, proportionate and flexible rules.
The Commission’s proposed text was discussed and negotiated at Council Working Party meetings over the course of 2021 and 2022, with negotiations on Ireland's position led by Officials in my Department. The Council reached an agreed approach in December 2022. Separately, the European Parliament (EP) negotiated a compromise text, also based on the Commission’s original draft. The EP voted in favour of its approach on 14th June 2023.
Trilogues negotiations (Council, Parliament and Commission) have commenced with the first Trilogue having taken place on the evening of 14th June. The Presidency has now delegated work to the Technical Committee and has set dates for the next three Trilogue meetings (18th July, 26th September and 26th October).
Negotiations will continue to be led by officials in my Department who are currently examining the EP’s compromise text against the Council agreed text and are consulting with relevant stakeholders in order to further develop Ireland's position on the Act.
The incoming Spanish Presidency has indicated that it wishes to conclude the negotiations by the end of December 2023. Given that AI has evolved significantly in recent months, it is important that we all work to reach an agreed approach as quickly as possible. At the same time, we must ensure that the regulation is flexible and future proofed and continues to protect the safety and fundamental rights of the individual while also ensuring that innovation for good continues in this area.
Flexible Work Practices
Questions (25)
Louise O'Reilly
Question:25. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment if he can provide an update as to when the WRC Code of Conduct for remote working will be published. [31536/23]
View answerWritten answers
Work on the development of the Code of Practice on the right to request remote work is ongoing. The Workplace Relations Commission (WRC) have recently held a public consultation, which was receiving submissions up until 9 June.
In total, the WRC received 50 submissions of foot of the public consultation, which are now being considered.
This Code, which will be developed in consultation with trade unions and employer representative bodies and the Irish Human Rights and Equality Commission, will set out practical guidance for both workers and employers on how to treat applications remote working arrangements made under the Act.
The WRC will commence work on a draft Code in due course and will be consulting with representatives of employers and employees once that draft is prepared as required under legislation, to finalise the Code.
The right to request remote or flexible working provisions of the legislation will come into force as soon as practicable following the completion of this Code.
Consumer Protection
Questions (26)
Gary Gannon
Question:26. Deputy Gary Gannon asked the Minister for Enterprise, Trade and Employment if he will introduce a new statutory consumer advocacy agency; and if there are existing plans within his Department in relation to its creation. [24645/23]
View answerWritten answers
The Competition and Consumer Protection Commission (CCPC) is the statutory body responsible for promoting compliance with, and enforcing, competition and consumer protection law in Ireland and its mission is to make markets work better for consumers and businesses. The CCPC aims to improve consumer welfare across the economy by enforcing over 40 legislative instruments, including product safety legislation.
The CCPC’s aim is to make markets work better for consumers by influencing public debate and policy development, growing public understanding of the importance of open and competitive markets, promoting competition and highlighting the interests of consumers. It is an independent investigative and enforcement body, and the Minister and Department are statutorily restricted from directing it especially in the area of competition law.
The CCPC provides information to consumers about their rights, personal finance and product safety, through a consumer helpline, a dedicated section of their website, public awareness campaigns and through various financial education initiatives.
The CCPC is growing as additional functions are ascribed to it. It is gaining responsibilities under the Competition Act and Consumer Rights Act, which consolidated and modernised consumer rights legislation in Ireland. Its annual funding and sanctioned staffing levels have grown in recent years on account of these additional roles. Under this Government the CCPC has seen its Exchequer funding increase by approximately 70%. In 2019 it received €10.6 million and in 2023 it will receive just over €19 million.
The CCPC play an active role in respect of mergers and acquisition, in this regard the CCPC has a statutory obligation to form a view as to whether the result of the merger or acquisition would be to substantially lessen competition in markets for goods or services in the State, i.e., likely to result in substantial reduction in competition leading to higher prices or low quality or reduced innovation. This involves obtaining, verifying, and analysing different types of information from various sources. The CCPC approach in reviewing and deciding mergers is in line with international best practice.
The CCPC have been active in protecting consumer interests in digital markets, with work on influencers, manipulative interface design and protection of children from inappropriate advertising, amongst others.
Currently, and mindful of cost-of-living increases, the CCPC continue to prioritise action against unlawful practices that have a direct effect on increasing consumer prices, or which exploit a more inflationary environment. The CCPC are further developing its online Money Tools system to ensure it continues to meet the needs of consumers and reflect current industry offerings. The Department welcomes this more visible and active role by the CCPC in reminding consumers of their rights, and businesses of their consumer and competition obligations.
Food Prices
Questions (27)
Thomas Gould
Question:27. Deputy Thomas Gould asked the Minister for Enterprise, Trade and Employment if he will provide an update on his engagement with the retail forum regarding food prices. [31627/23]
View answerWritten answers
I met with grocery retailers in May when I outlined that grocery prices in Ireland are too high and are putting some households under serious pressure. I was assured by the retailers that they will continue to pass the impact of any reductions in input costs on product prices to their customers.
I met grocery retailers again on 21 June seeking an update on what progress has been made.
They advised me that they have reduced the cost of quite a number of products and they will continue to monitor this.
Minister Simon Coveney met with the Competition and Consumer Protection Commission (CCPC) on 24 May to discuss the ongoing issue of food prices and the costs incurred by consumers on that front.
Following this meeting, he wrote to the CCPC to request that they provide their views on the grocery retail market, including on areas such as the level of profitability in the sector, international practices and sectoral trends of pricing practices.
On the 20 June 2023, Minister Coveney published the Consumer and Competition Protection Commission’s (CCPC) report, A High-level Analysis of the Irish Grocery Retail Sector on the 20 June 2023.
The Report found that food inflation in Ireland has been the lowest in the EU in recent years and that changes in input costs may take time to be passed on to consumers.
Minister Coveney and I will continue to engage on this and I will contact food retailers in August to seek an update on their progress. A meeting of the Retail Forum is scheduled for September.
Industrial Relations
Questions (28)
Bríd Smith
Question:28. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment if he will detail any proposals or plans to deal with the issues regarding the representative rights of retired workers; if he will support the passage to Committee stage of the Industrial Relations (Provisions in Respect of Pension Entitlements of Retired Workers) Bill 2021; and if he will make a statement on the matter. [31601/23]
View answerWritten answers
As the Deputy is aware, the Joint Committee on Enterprise, Trade and Employment met in public session on the 25 January 2023 to discuss detailed scrutiny of the Industrial Relations (Provisions in Respect of Pension Entitlements of Retired Workers) Bill 2021. Following this meeting, my Department issued a detailed brief to the Joint Committee to assist with their detailed scrutiny of the Bill.
At the Second Stage debate on the Bill, the former Minister of State for Business, Employment and Retail outlined my Department's concerns in relation to the proposed Bill and these serious concerns remain.
As the Deputy will be aware, Minister Coveney and I met with a groups of representatives advocating for this Bill on 19 April. We heard the various concerns and undertook to examine what protections defined pensions schemes have in the UK. The Minister also undertook to engage with the group before the summer recess.
Enterprise Policy
Questions (29)
Neasa Hourigan
Question:29. Deputy Neasa Hourigan asked the Minister for Enterprise, Trade and Employment if he will outline any work or reviews undertaken by his Department on the carbon emissions impact of strengthening the Irish export sector as outlined in his Department's White Paper on Enterprise 2022-2030; and if he will make a statement on the matter. [31159/23]
View answerWritten answers
The White Paper on Enterprise, published last December, articulates the direction of enterprise policy over the next decade. One of the key priorities set out in the White Paper , is integrating decarbonisation and net zero commitments with enterprise policy. This will include incorporation of carbon abatement as an objective for the Department’s enterprise Agencies, equal to and alongside employment and value-added. This will require the adoption of carbon budgeting in our enterprise development agencies and the introduction of carbon assessment as standard in project and grant evaluation.
Under the Programme for Government, Ireland has committed to reducing emissions by 51% across all sectors of the economy by 2030 and to become net zero by 2050. These commitments are enshrined in law under the Climate Action and Low Carbon Development (Amendment) Act 2021. Accordingly, all sectors of the economy must remain within defined five-year Carbon Budgets which align with our climate ambitions outlined above. In particular, I have responsibility to reduce industrial on-site emissions by 35% by 2030 arising in our manufacturing sector, the majority of which would comprise of exporters.
Carbon abatement will become a core objective for our enterprise agencies and new industrial development will be need to be less reliant on fossil fuels. Enterprise policy will help Irish-based firms fully realise the potential of the global green economy, supporting them to become leaders in related innovation.
During 2022, my Department implemented a pilot Climate Appraisal Model, which factored the cost of carbon emissions into the assessment of enterprise agency investment projects. My Department is currently evaluating the pilot in advance of implementing the Model on a permanent basis for all relevant projects. This evaluation process will also apply to new greenfield investments, requiring the pipeline of new developments in Ireland to take account of the carbon budgeting processes of the relevant agency. We will ensure that we are attracting the quality and diversity of new foreign investments that supports our national climate action ambitions. The implementation of the Climate Appraisal Model will be overseen by my Department and the enterprise agencies, with appropriate data collection and reporting identified to drive the required reforms.
Crucially, Enterprise Ireland and IDA Ireland will work with their existing clients to decarbonise their operations, while continuing to facilitate growth. They will also seek to develop and support new clients in low-carbon sectors. We will ensure that decarbonisation commitments are integrated into existing monitoring and reporting, alongside established criteria on employment creation and economic value added.
As part of the implementation of the White Paper, my Department will lead a process to translate national carbon budgets and the sectorial emissions ceilings into operational carbon budgets for the enterprise development agencies. My Department will map emissions inventory data to the existing client base of each agency. Both agencies have commenced implementing actions to measure and track the carbon impact of clients with a view to ensuring legally binding emissions targets are met.
The ambition to decarbonise our economy is transformative and will require significant investment and adoption of low and no carbon technologies across all sectors. Government will support investments contributing to the green and sustainable transformation of the Irish economy through a number of instruments. The Green Transition Fund is part of Ireland’s National Recovery and Resilience Plan (NRRP). The total budget for the fund is split into two streams, the Enterprise Emissions Reduction Investment Fund (€30m) and the Climate Planning Fund for Business (€25m). These were launched in 2022 and will run to 2025. The Enterprise Emissions Reduction Investment Fund targets export manufacturing companies using fossil fuels and incentivises them to adopt CO2 abatement technologies in their processes. The Climate Planning Fund for Business is targeted at companies of different sizes and at different stages of engagement, to support companies to accelerate their awareness of CO2 abatement opportunities, build decarbonisation capabilities and put in place sustainability plans. Individual project funding under the Green Transition Fund is capped at €1 million, and therefore for large projects where sizeable abatement can be achieved, Enterprise Ireland and IDA Ireland will also have recourse to the Environmental Aid Scheme to support such investments.
Island Communities
Questions (30)
Catherine Connolly
Question:30. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment the status of his Department’s commitment to increase engagement with islands in the Regional Enterprise Plans, as promised in the recently published Our Living Islands action plan; and if he will make a statement on the matter. [31541/23]
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The Deputy will be aware that Our Living Islands Policy and associated Action Plan were published on Árainn Mhór island off the coast of Donegal on 7 June 2023 by my colleague Heather Humphreys TD, Minister for Rural and Community Development.
Balanced regional enterprise development is a key policy of mine and this Government and is reaffirmed in the White Paper on Enterprise. My Department contributes to this agenda in a number of ways, including through oversight of development and implementation of nine Regional Enterprise Plans to 2024.
Regional Enterprise Plans (REPs) are bottom-up plans which facilitate stakeholders to work collaboratively to identify growth opportunities, recognise vulnerabilities, and in response strengthen the regional enterprise ecosystem.
Each REP is unique and is underpinned by an understanding the local strengths and assets in each region.
At a regional level, implementation of the REPs is overseen and monitored by a regional Steering Committee which is chaired by a senior level private sector business-person. The Steering Committee includes the Local Authorities, the enterprise agencies, local enterprise offices, regional skills forum and education and training institutes in each region.
Following the recent launch of the Our Living Islands Policy and Action Plan, my officials will engage with the REP Programme Managers for the North-West, West and South-West regions on this matter.
Given each REP has a unique focus, each region will be asked to consider the most effective way of increasing engagement with the Island enterprise communities to deliver the REP objectives through to the end of 2024.
The Deputy may wish to note that the Islands Action Plan contains a number of actions under the remit of my Department.
The Design and Crafts Council of Ireland has committed to deeper engagement with island craft enterprises through the establishment of an Island Guild and highlighting island crafts as part of their annual August craft month.
The Local Enterprise Offices, together with Údarás na Gaeltachta, and supported by Enterprise Ireland, are also committed to ensuring island enterprises have access to the range of businesses supports on offer.
I understand the Department of Rural and Community Development is in the process of establishing an official monitoring committee for the Islands Policy and Action Plan. Officials from my Department are available to participate as required.