Skip to main content
Normal View

Thursday, 29 Jun 2023

Written Answers Nos. 51-70

Work Permits

Questions (51)

Catherine Connolly

Question:

51. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 80 of 11 May 2023, the number of employment permits issued in respect of non-EEA home care workers since the start of January 2023; the number of applications refused; the number of applications pending; and if he will make a statement on the matter. [31545/23]

View answer

Written answers

Changes to the employment permits system for workers from outside the European Economic Area (EEA) to address skills shortages in Ireland’s Home Care sector were announced on 16 December 2022.

This followed constructive engagement with the Home Care Sector. In March 2022, a cross-departmental Strategic Workforce Advisory Group (SWAG) was established by the D/Health to examine the strategic workforce challenges in publicly and privately provided frontline carer roles in home-care and long-term residential care for older people. The report from this group contained 16 recommendations spanning areas of recruitment, pay and conditions, barriers to employment, training and professional development and sectoral reform. The report of this group recommended that the Government enable the employment of non-EU/EEA care workers in Ireland for roles in the sector.

In line with this recommendation,  the Department of Enterprise, Trade and Employment introduced an amendment that established a quota of 1,000 General Employment Permits for care workers and home carers, as defined in Standard Occupational Classification code 6145.

Since the introduction of this quota, 138 permits have been granted, and 13 applications have been refused. A monthly breakdown is set out in the table below.

The precise number of applications awaiting processing in this category cannot be determined as these applications have yet to be processed and assigned an appropriate SOC (Standard Occupational Classification) - however it is estimated that there are approximately 15 applications awaiting processing.

Year 2023

Issued

Refused

January

 

3

February

14

1

March

34

5

April

11

 

May

45

 

June

34

3

Grand Total

138

12

 

Human Rights

Questions (52)

Catherine Connolly

Question:

52. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 91 of 11 May 2023, the status of his Department’s engagement with the Department of Foreign Affairs with a view to developing a new action plan on business and human rights; the status of plans to reconvene the Business and Human Rights Stakeholder Forum; and if he will make a statement on the matter. [31544/23]

View answer

Written answers

I recognise the importance of businesses having a focus on human rights. Society is expecting companies to consider the impact on human rights in the way they do their business. Companies have reacted well since Ireland launched the National Plan on Business and Human Rights (2017 -2020) towards the end of 2017. Ireland became the 19th state in the world to develop a National Plan. In December 2021, a review of the implementation of the Plan was brought to government. It found that over 91% of commitments under the Plan were achieved, with plans to implement the remainder.

My department is liaising frequently with the Department of Foreign Affairs with a view to supporting plans to re-convene a Business and Human Rights stakeholder forum, involving representatives of Government, civil society and business, including from my own Department.

Scoping and mapping exercises are well progressed, setting out what initiatives are underway, significant upcoming actions and identifying any gaps or areas that need greater input and scrutiny. It is intended that a paper will be produced, outlining the variety of instruments being developed and enacted within government departments for this multi-stakeholder group. This will then set the basis for stakeholder consultation for a new Business and Human Rights plan and implementation body. The group will convene in H2 of this year and the plan is expected to cover a multi-annual timeframe as was covered in the first plan.

Energy Policy

Questions (53)

Alan Dillon

Question:

53. Deputy Alan Dillon asked the Minister for Enterprise, Trade and Employment if he intends to support Irish-based companies to continue to supply indigenous gas; and if he will make a statement on the matter. [31644/23]

View answer

Written answers

As Minister for Enterprise; Trade and Employment I do not have a designated function related to indigenous energy extraction, supply or regulation. Those functions sit primarily with the Minister for the Environment, Climate and Communications, as well as the appropriate independent regulatory bodies. 

Natural gas plays a significant role in providing energy in our economy, power system and manufacturing base. That role will continue over the medium term, even as we transition to renewable energy sources to provide an ever greater share of our electricity, and, through electrification, power more of our heating and transport requirements. My Department and I are focussed on ensuring that Irish businesses can access a reliable, cost-competitive source of energy.  Additionally, I want businesses to be actively considering and investing in decarbonising their energy use over time in line with our climate action objectives. 

In future, I expect we will be using a greater portion of renewable gas. In this regard, a dedicated Biomethane Working Group, chaired by the Department of Agriculture, Food and Marine, has been established. Its purpose is to oversee an all-of-Government approach to developing a National Biomethane Strategy, which aims to deliver up to the 5.7TWh of indigenously produced biomethane by 2030. Further into the future, I anticipate that Green hydrogen will play a crucial role in decarbonising our energy system.  The Government is currently developing a National Hydrogen Strategy, which is due to be finalised shortly. This strategy will set out our vision for how hydrogen will be produced and used in Ireland, providing certainty to investors and industry as to how hydrogen will be deployed in the Irish energy system.

As the Deputy may be aware, the Programme for Government contains a commitment to end the issuing of new licences for the exploration and extraction of gas on the same basis as the decision taken in 2019 by the previous Government in relation to oil exploration and extraction. As outlined in the Policy Statement on Petroleum Exploration and Production, published in August 2022, this commitment states that no new authorisations for petroleum exploration will be granted, while applications that are already connected to existing authorisations can continue to apply to progress through the standard licensing lifecycle stages towards a natural conclusion, which may include expiry, relinquishment, production or rejection. All applications relating to existing authorisations will continue to be assessed against a number of criteria in accordance with Section 9A of the Petroleum and Other Minerals Development Act, 1960, as amended, and Section 3 of the Licensing Terms for Offshore Oil and Gas Exploration, Development and Production. This includes assessment of the technical competence of the applicant and the financial resources available to it in order to undertake the work programme and any other commitments pursuant to the relevant petroleum authorisation.

Employment Rights

Questions (54)

Bríd Smith

Question:

54. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment if he will bring forward or support new legislation in view of events at a company (details supplied) recently that will protect workers; his views on whether current legislation is sufficient to prevent abuses of workers in cases of examinership and so on; if his Department is investigating the actions of management at the company; and if he will make a statement on the matter. [31602/23]

View answer

Written answers

Firstly, I want to say my thoughts are with the employees of Iceland (Ireland). I appreciate that this is an incredibly stressful time for them and their families, with huge uncertainty.

Ireland has an existing strong legislative restructuring framework for companies and there is a suite of employment rights legislation in place to protect impacted workers. 

I and my colleagues in Government absolutely expect every employer to comply with their legal and statutory obligations in this regard.

The main corporate recovery process for companies in Ireland is the long-standing and internationally recognised examinership framework. This court-supervised process is available to insolvent companies that have a reasonable prospect of survival.

The examiner’s role is to assess a company’s viability, attempt to secure investment and formulate proposals for restructuring during a protection period, which can last up to 100 days..

Where it appears to the court that there is evidence of irregularities in respect of a company’s affairs, the Court will hold a hearing to consider that evidence. The examiner is required to report to the court on the outcome of the process and must also deliver a copy of the examiner’s report to the Corporate Enforcement Authority (CEA)

The CEA, which is statutorily independent in the performance of its functions, has responsibilities under company law in assessing directors’ conduct. Alleged breaches of company law can be brought to the attention of the CEA by any party. Where a breach of company law has been clearly established, the CEA will take action as appropriate. The CEA operates under a statutory duty of confidentiality and, as such, does not comment on individual matters.

As examinership is overseen by the court, it is important not to prejudge the outcome of the examinership and it would be inappropriate for me to comment on this specific case.

However, I want to emphasise that workers have statutory rights under a broad range of employment rights legislation. Where employees believe their employment rights have been breached, they have the right to refer complaints to the Workplace Relations Commission (WRC) for an adjudication and possible redress. The WRC is independent in the performance of its functions.

Where Government plays a role is by ensuring that there is a framework of legislative protections for workers and a mechanism for them to seek redress if needed.

I understand from media reports that some employees may have made complaints to the WRC. I must respect the independence of the WRC in making its determination in these cases so I cannot comment further.

Information and Communications Technology

Questions (55)

Michael Moynihan

Question:

55. Deputy Michael Moynihan asked the Minister for Enterprise, Trade and Employment for an update on the Working Group on Trustworthy AI Principles and Guidelines; and if he will make a statement on the matter. [31441/23]

View answer

Written answers

The National AI Strategy, AI – Here for Good, sets out how Ireland can be an international leader in the use of Artificial Intelligence to benefit our economy and society. The Strategy takes a people-centred, ethical approach to the development, adoption and use of AI. My Department is leading on the implementation of the Strategy and is responsible for driving the adoption of AI by businesses.

The Strategy outlines the need for a robust governance framework to safeguard against risk and to underpin public trust in AI, and in  this context, my Department and the Office of the Government Chief Information Officer established and jointly chair a Working Group on Trustworthy AI Principles and Guidelines. The Working Group is tasked with developing Principles and Guidelines for the ethical and human-centric use of AI in the public sector. 

The Working Group consists of a number of AI experts and representatives of Government Departments which may have the capacity to use AI tools in their functions. Work on the principles is almost complete, and an expert ‘researcher in residence’ within the OGCIO on an SFI Fellowship programme will be tasked to work with this group to further develop the principles in order to promulgate ethical and human-centric AI in the public sector.

The Working Group has met twice and a draft document has been developed which was considered by the Working Group in March 2023.  Work will continue to progress this document.  The recommendations of the Group to be brought to Government for consideration as soon as possible and, subject to Government approval, these principles will be part of the decision-making process for the adoption and use of AI in the Public Service.

Trade Relations

Questions (56)

Alan Farrell

Question:

56. Deputy Alan Farrell asked the Minister for Enterprise, Trade and Employment to detail what efforts are being made by his Department to enhance trade links with Asia; and if he will make a statement on the matter. [31674/23]

View answer

Written answers

My Department works closely with Enterprise Ireland and IDA Ireland to identify opportunities to help Irish companies access new markets and increase the levels of foreign direct investment into Ireland.

Each year the two agencies prepare a programme of trade missions and events which support the goal of securing high-level market access for companies based in Ireland who are aiming to grow business overseas and increase domestic employment, and showcasing opportunities for foreign direct investment in support of high-quality jobs and regional development throughout Ireland.

Asia Pacific is a key focus of Ministerial-led trade missions, along with the Eurozone and North America,  representing as they do the strongest growth opportunities for Irish companies.  A priority for these missions is promoting the innovative capabilities and competitive offerings of Irish companies to international buyers in a range of sectors including internationally traded services, fintech, high-tech construction, engineering, ICT and life sciences.

The Ministerial-led trade mission programme for 2023 commenced with the Arab Health Expo in Dubai at the end of January.  My Department will continue to work closely with its agencies in relation to the programme of trade missions and visits for the second half of 2023, and opportunities in the Asia Pacific region will be considered in that context.

Employment Rights

Questions (57)

Paul Murphy

Question:

57. Deputy Paul Murphy asked the Minister for Enterprise, Trade and Employment if, in light of proposed redundancies at a company (details supplied), he will review current legislation around redundancies and notice periods in order to enhance current protection for workers; if he or his Department will meet with representatives of the company’s workers to hear their concerns at the limitations of the current legislation and the process undertaken by their employer; and if he will make a statement on the matter. [25165/23]

View answer

Written answers

Firstly, I want to say that I fully understand how difficult and stressful this time is for the workers at Indeed, as well as their family members.

Ireland has a robust suite of employment rights legislation to protect and support workers in collective redundancy situations. The Protection of Employment Act 1977 imposes certain legal obligations on employers proposing collective redundancies. These obligations include engaging in an information and consultation process of at least 30 days with employees’ representatives, and notifying the Minister for Enterprise, Trade & Employment of the proposals at least 30 days before the first dismissal takes place. A collective redundancy notification was received from the company on 29 March 2023.

The consultation with employees’ representatives should include the possibility of avoiding the proposed redundancies, reducing the number of employees effected or mitigating their consequences.

While I strongly encourage parties to engage in the consultation process in a constructive manner with a view to finding a mutually acceptable solution, the ultimate responsibility for the resolution of any issues arising rests with employers, the workers and their representatives.

It is the employer’s responsibility to comply with the legal obligations under the 1977 Act and employers who fail to comply are guilty of an offence and may be liable on conviction to fines ranging from €5,000 up to a maximum of €250,000. The Workplace Relations Commission (WRC) is the statutory agency responsible for bringing such prosecutions.

The WRC is also the organisation which is mandated to secure compliance with employment rights legislation. Employees have the right to refer complaints to the WRC on a wide range of employment law breaches for an adjudication and compensation where appropriate. This includes the right to refer a complaint under the Protection of Employment Act 1977 should an employer fail to consult or provide certain information to employees. The WRC is independent in the performance of its functions.

In May, Government approved the priority drafting of the Plan of Action on Collective Redundancies following Insolvency Bill. This Bill will, inter alia, make certain changes to the Protection of Employment Act 1977. One change proposed is to allow employees to make a complaint to the WRC where an employer dismisses them before the expiry of the 30-day period following notification of the collective redundancies to the Minister. This change will apply to all collective redundancies.

Exports Growth

Questions (58)

Michael Moynihan

Question:

58. Deputy Michael Moynihan asked the Minister for Enterprise, Trade and Employment if he will consider introducing an export credit guarantee scheme to support companies looking to increase their international trading opportunities; and if he will make a statement on the matter. [31440/23]

View answer

Written answers

My Department regularly explores ways to assist businesses and to create an environment that stimulates their growth. However, it is important that Government intervention is focused on those areas where there is there is a market failure.

My Department, working with Enterprise Ireland currently offers a range of supports for exporting businesses, such as training, in-market support, and trade missions. There are also a number of schemes which my Department has developed, working through SBCI, which provide financing support for businesses, including exporting businesses, including the Ukraine Guarantee Scheme and the Sustainability and Growth Loan Scheme, which will be launched next month.

Export credit insurance is available from the private market. In early 2020, in the context of the major disruptions to global trade and supply chains in the early stages of the spread of the coronavirus, my Department competed an assessment of the need for state supported export credit insurance. The assessment found that Irish insurers, as subsidiaries or branches of international insurer groups, are financially strong, and did not need to be financially supported by a Government intervention during the pandemic.

My Department has continued to monitor the export credit insurance market and in 2021, with the assistance of an external export credit insurance expert, conducted an internal review to assess the potential need for a state-backed export credit insurance scheme. This review involved engagement with trade credit insurers, industry and other relevant stakeholders such as Enterprise Ireland and IDA Ireland. Following these consultations and on reviewing Ireland's strong trade export statistics over the last ten years, it was again found that there was no clear demand or need for State intervention in terms of export credit insurance.

Exports and international trade will remain central to Ireland’s growth model and economic strategy in the years to come.

As outlined in the White Paper on Enterprise, we have set the ambition of expanding our exporting base with 2000 additional exporting companies, and 50% more large Irish exporting companies, by 2030. To accomplish this, we will focus on enhancing productivity and developing an integrated system-wide approach to accelerating start-up growth and scaling.

In addition, the extension of the LEO mandate to work with prospective exporters, that have grown to between 10 and 50 employees, will bridge an existing gap and better integrate micro enterprises into the scaling loop.

Labour Market

Questions (59)

Pádraig O'Sullivan

Question:

59. Deputy Pádraig O'Sullivan asked the Minister for Enterprise, Trade and Employment the steps he has taken to ensure that employers have access to qualified employees to meet the requirements of the labour market; when the next review of the critical skills occupation list will take place; what measures he is taking to stream-line the work permit application process; and if he will make a statement on the matter. [31203/23]

View answer

Written answers

Ireland’s economic migration policy facilitates the entry, in the short to medium term, of non-EEA nationals to fill skills gaps in economically strategic sectors. In framing policy, consideration is given to other instruments that are also available in meeting skills shortages challenges, such as upskilling and activating the unemployed. 

My Department reviews the employment permits system regularly, working with other Government departments to promote an integrated approach to address labour and skills shortages in the longer term.  However, economic migration alone is not a sustainable long-term solution to labour shortages. Government policy continues to focus on approaches that educate and upskill the population in response to the ever-changing needs of business and society and as a general principle, our labour market policy should aim to ensure that most labour and skills needs are met from within the domestic and EEA workforce. 

The Government operates an employment permits system which is highly responsive to areas of identified skills needs and labour shortages across the economy. The system is, by design, vacancy led and driven by the changing needs of the labour market. EURES Ireland, which is managed by the Department of Social Protection, is also working with a range of sectors to support their recruitment needs through the attraction of workers from within the EEA.

The Department actively responds to concerns raised by various sectors about skills supply shortages, highlighted through a number of amendments to the Employment Permits Regulations over recent years, whereby sectors most impacted by skills shortages were provided with access to employment permits, such as the aged care, agri-food, hospitality and transport sectors. 

I have this week announced the launch of the public consultation on a review of the occupations on the ineligible and the critical skills employment permits lists. The review process will take into account stakeholder submissions and will also be informed by research undertaken by labour market policy research bodies such as the Expert Group on Future Skills Needs (EGFSN) and SOLAS. The views of the Economic Migration Interdepartmental Group and key Government departments, which is chaired by this Department, will also be considered.

The Employment Permits Unit has reduced the number of applications awaiting processing from approximately 11,000 in January 2022 to 1,600 as of 21 June 2023.  Processing times have fallen from a high of 21 weeks to currently stand at 9-11 business days. The Department plans to maintain processing times for all applications at this level, or reduce them even further, on the assumption that estimated demand remains at current levels for 2023.

The Employment Permits Unit has introduced a range of measures to assist individuals in submitting applications including;

• video user guides helping applicants through the steps in completing and submitting an general employment permit application including undertaking the labour market needs test;

• dedicated checklists setting out the requirements for the various types of employment permits are published on the Departments website;

• a new system to refund fees electronically directly to the credit/debit card used resulting in refunds being made within days;

• pre-processing screening of all General Employment Permit applications across a small number of key mandatory criteria to ensure compliance with the requirements of this permit type to provide early notification of failed applications while also ensuring that valid applications are processed in a speedy and efficient manner.

In addition, the Department has contracted IT systems specialists to undertake the design and implementation of a new online Employment Permits system with the aim of delivering further efficiencies and an improved customer experience.

An efficient and responsive Employment Permit system is a critical component to ensure that talent is attracted to Ireland from non-EEA countries.  I am committed to improving the efficiency of administrative processes and making services more customer friendly to the benefit of both employers and potential employees.

Inflation Rate

Questions (60)

Bernard Durkan

Question:

60. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he and his Department continue to monitor any issues likely to be a cause of inflation throughout the business and commercial sectors; if research continues to be carried out to identify the possible causes of price increases leading to operation costs for businesses throughout the manufacturing and services sectors; if he remains satisfied that opportunistic price increases are not affecting consumer confidence; and if he will make a statement on the matter. [31612/23]

View answer

Written answers

My Department continues to monitor the areas which are generating high headline inflation, in particular, it is monitoring developments in the Wholesale Price Index, Services Producer Price Index and Consumer Price Index published by the Central Statistics Office.

As a small, open trading economy Ireland is exposed to global inflationary pressures, including fluctuations on international markets for energy, commodities and food. Ireland is effectively a price taker on most international markets, and many of the drivers of Irish inflation are outside our control.

As a result of these inflationary pressures, input costs have gone up for many businesses. However, wholesale price inflation has levelled off across a number of areas in recent months, with wholesale electricity prices 26% lower in May 2023 than 12 months previously. While wholesale prices for construction products rose by 9.1%, overall, manufacturing producer prices (the price for goods produced by manufacturers for their consumers – including other businesses) 1.1% lower in May 2023 than May 2022.

Despite some volatility, Irish (consumer price) inflation has been trending down in recent months and reached 5.4% in May – in line with the broader Euro Area. In addition, consumer confidence reached a 14-month high in May (as measured by the Credit Union Consumer Sentiment Index), at 62.4.

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 – across both 2021 and 2022, at 5 per cent per annum. This compares to an average contribution from profits to inflation of 1.7 per cent per annum from 2001 to 2020.  I note that since the onset of the pandemic in 2020, the contribution of labour costs to this measure of inflation has been relatively flat, declining marginally from 1.3 per cent in 2020 to an estimated 0.8 per cent in 2022. 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.

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 be 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.

Regional Development

Questions (61, 63)

Catherine Connolly

Question:

61. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 107 of 11 May 2023, for an update on the implementation of the West Regional Enterprise Plan to 2024; and if he will make a statement on the matter. [31543/23]

View answer

Alan Dillon

Question:

63. Deputy Alan Dillon asked the Minister for Enterprise, Trade and Employment to provide an update on the Western Enterprise Plan; and if he will make a statement on the matter. [31643/23]

View answer

Written answers

I propose to take Questions Nos. 61 and 63 together.

Balanced regional enterprise development continues to be a key policy for me and this Government, and is reaffirmed in the Department’s White Paper on Enterprise.

The Department contributes to this agenda in several ways, including through the development, implementation and oversight of nine Regional Enterprise Plans.

The West Regional Enterprise Plan covers Galway, Mayo and Roscommon and was launched in Castlebar on 4 March last year.

Each Regional Enterprise Plan is overseen and monitored by a Steering Committee made up of regional stakeholders and chaired by a senior level private sector businessperson.

I attended the most recent meeting of the West Steering Committee on 20 June in the BIA Innovator Campus in Athenry. At the meeting, an update was provided on the progress being made on the construction of the Campus, which will be an invaluable asset to food innovation and incubation in the West. In addition, I also heard from CREW (Creative Enterprise West) about their ongoing work in the digital creative sector in ATU Galway. The Regional Enterprise Plan Programme Manager also provided details on recent funding successes. I believe good progress is being made in delivering on the strategic objectives of the Plan.

With regard to funding, I can advise that my Department has secured up to €145 million from the European Regional Development Fund to drive implementation of the Regional Enterprise Plans.  This funding will support innovative enterprise focused projects aligned to the Plans. I expect the first call of €35 million to be announced in the coming months.

Finally, the Department is holding nine ‘Building Better Business’ conferences around the country throughout 2023. These focus on the opportunities and challenges of the digital transformation and the transition to a low-carbon economy, as well as showcasing the government and agency supports available to small and medium enterprises. Regional Enterprise Plan Chairs also have the opportunity to address attendees about the progress being made in the implementation of their Plan.

The most recent conference focused on the Mid-East region and was held last Friday in Naas. The next event will focus on the South-East region and take place on 14 July in the South-East Technical University (SETU) Arena in Waterford. The West event is scheduled for October.

I believe the conferences demonstrate the firm commitment of this Government to balanced regional enterprise development for all regions of Ireland, including the West.

Cost of Living Issues

Questions (62)

Fergus O'Dowd

Question:

62. Deputy Fergus O'Dowd asked the Minister for Enterprise, Trade and Employment how he and the Government will take action to address the most recent European Commission report indicating that Ireland is now the most expensive country in Europe for household expenditure on goods and services last year, at 46% above the EU average; and if he will make a statement on the matter. [31633/23]

View answer

Written answers

It is important to examine the European Commission data in context.

In several categories, Ireland performs better than, or on par with, other small and open EU economies. For example, when it comes to the price of food and non-alcoholic beverages, Ireland outperforms economies such as Norway, Denmark, Luxembourg, and Malta, and EEA members, Switzerland and Iceland.  We also outperform in terms of clothing and furniture, for which we fall below the Euro Area average. Ireland has introduced minimum unit pricing for alcohol, and we have relatively high rates of tobacco taxation – these policies inflate the price of affected products, but are part of a considered national public health strategy.

Despite our high price position, Ireland remains a competitive economy. Last week, Ireland was ranked as the second most competitive economy in the globe under the IMD World Competitiveness Rankings.

This follows the publication of Ireland’s Competitiveness Scorecard 2023, by the National Competitiveness and Productivity Council. The evidence in the report suggests that Ireland remains a competitive economy, however, the Council highlighted that as an open economy, Ireland is effectively a price taker on most international markets, and many of the drivers of Irish inflation are outside our control. As a small island nation, there will be additional costs associated with transport and our small market size, and we are a significant importer of energy and food produce.

Inflation in Ireland – although elevated at 5.4 per cent in May – is declining, and is down from 9.4 per cent in October. This is also below the EU average of 7.1 per cent and the Euro Area average of 6.1 per cent.

The impact of rising prices over the last year is not unique to Ireland, but an issue facing major economies including the UK, Germany, France and the US, as the effects of the pandemic unwind with the rapid resumption of economic activity, and geopolitical uncertainty following Russia’s invasion of Ukraine. These tensions are disrupting supply chains and leading to large rises in international prices for energy, food and other commodities. As a significant importer of energy and food produce, Ireland is exposed to these global inflationary pressures.

However, inflation is expected to ease through this year and next. The most recent forecast from the Central Bank of Ireland predicts HICP inflation of 5% for 2023, down from 8.1%.

The Government has been proactive in limiting the fallout from inflation. A total of €12 billion – 4½ per cent of national income – has been provided in direct relief to absorb some of the impact and ease the burden on households and businesses. These measures are intended to increase the value of people’s wages, in the face of cost-of-living pressures.

Question No. 63 taken with No. 61.

Work Permits

Questions (64)

Brendan Griffin

Question:

64. Deputy Brendan Griffin asked the Minister for Enterprise, Trade and Employment how many applications for work permits for transmission line workers have been refused by his Department in 2022 and to date in 2023; if he is aware of the implications for enterprise and wider infrastructural development of these refusals; if he will intervene to address the issue; and if he will make a statement on the matter. [31625/23]

View answer

Written answers

My Department informs me that in 2022, 9 applications for employment permits were refused for the occupation “Overhead Lineman” and to date in 2023, 7 applications have been refused for the occupation “Line Worker”.

Officials of my Department have been engaging with the Department of Environment, Climate and Communications over the last number of weeks with regard to the role of overhead linesman which has been identified as a key role in short supply across the EU in the energy and supply services sector and a submission has been received recently from the sector. The submission is under active consideration at present.

The Critical Skills Occupations List and the Ineligible Occupations List submissions opened on the 26th June 2023 and will remain open for 8 weeks. The Review will take into account the submissions made through the stakeholder consultation process and will also be informed by research undertaken by labour market policy research bodies such as the Expert Group on Future Skills Needs (EGFSN) and SOLAS. The views of the Economic Migration Interdepartmental Group, chaired by this Department, which includes representatives of the Department of Environment, Climate and Communications as the policy department for the sector will also be considered. 

 

My Department actively responds to the concerns raised by various sectors of the economy 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, with many sectors provided with access to employment permits.

Consumer Protection

Questions (65)

Paul Murphy

Question:

65. Deputy Paul Murphy asked the Minister for Enterprise, Trade and Employment how he can reconcile the finding of the CCPC that there is no excessive pricing in the grocery sector with the fact that Irish prices are 46% higher than the EU average; and if he will make a statement on the matter. [31660/23]

View answer

Written answers

Firstly, it is important to examine the Eurostat data on prices in context.

In several categories, Ireland performs better than, or on par with, other small and open EU economies. For example, when it comes to the price of food and non-alcoholic beverages, Ireland outperforms economies such as Norway, Denmark, Luxembourg, and Malta, and EEA members, Switzerland and Iceland.  

Ireland has also introduced minimum unit pricing for alcohol, and also has relatively high rates of tobacco taxation – these policies do inflate the price of affected products, but are part of a considered national public health strategy.

The CCPC report focuses on the grocery retail sector and assesses: (1) market concentration and market development over time; (2) trends in national and international food prices; (3) publicly available data relating to the profit margins of major grocery retailers; and (4) issues relating to transparency and market interventions. The CCPC establishes that retail is a high volume, low margin industry – with profit margins typically between 1 per cent to 4 per cent and finds no evidence of excessive pricing in the grocery sector.

The CCPC report sets out that Irish consumers have historically experienced relatively high grocery prices due in part to several structural factors. These include our remote geographic location, which results in higher-than-average costs for Irish importers, our relatively small population size, which means less economies of scale can be achieved, and higher costs associated with construction, legal services, and insurance. 

High grocery prices must also be considered in the context of Ireland’s economic position. As set out in the CCPC report, Ireland has the 3rd highest average annual adjusted full-time salary across the EU. Ireland also reported the lowest level of household expenditure on food and non-alcoholic beverages (as a percentage of total consumption) in the EU in 2021, and has experienced the lowest level of food inflation in the EU since 2015.

 The findings of the CCPC report that there is no excessive pricing in the grocery sector can be reconciled with Ireland’s high price position, when one considers these factors.

 It is also worth noting that inflation in Ireland – while still elevated at 5.4 per cent in May – is declining and is down from 9.4 per cent in October. This is also below the EU average of 7.1 per cent and the Euro Area average of 6.1 per cent.

Mining Industry

Questions (66)

Peadar Tóibín

Question:

66. Deputy Peadar Tóibín asked the Minister for Enterprise, Trade and Employment if he has sought to develop a solution, in partnership with the management of a company (details supplied) for the continuation of the mines; and if he will make a statement on the matter. [30825/23]

View answer

Written answers

Both my Department, the Department of Social Protection and other relevant Government Agencies will support the company and the employees in any way we can including through any income supports that are available through the Department of Social Protection.

My Department and I were first informed of the decision of the Boliden Tara Mines Board to put the company into care and maintenance on 13 June. I subsequently met with the company management and union representatives, together with my officials, on 15 June.

The company informed me that the decision to temporarily suspend operations and place the mine into care and maintenance had been taken to safeguard the long-term future of the company.

The company said they were in a very difficult financial position due to a number of factors including a decline in the price of zinc, high energy prices, general cost inflation as well as some other operating challenges.

Officials from my Department and Enterprise Ireland met again with the company earlier this week to explore options for securing the long-term future of the mine and employment.

I understand that discussions between the company and the Unions are proceeding on an ongoing basis and that so far these discussions have been constructive. I am also aware that this dialogue is to continue.

Meanwhile my Department will continue to explore together with Enterprise Ireland the scope for assisting the company through available cost saving and other supports within the existing state aid parameters.

Equality Issues

Questions (67)

Thomas Gould

Question:

67. Deputy Thomas Gould asked the Minister for Enterprise, Trade and Employment the funding available through Enterprise Ireland for people with disabilities seeking to establish their own business. [31626/23]

View answer

Written answers

The Local Enterprise Offices are the ‘first-stop-shop’ for advice and guidance, financial assistance and other supports for anyone, including people with disabilities, intending to start or grow a business. In that regard, the LEOs provide a ‘signposting’ service in relation to all relevant State supports available through agencies such as the Department of Social Protection, Department of Children, Equality, Disability, Integration and Youth, the Revenue Commissioners, Education and Training Boards, the Credit Review Office and Microfinance Ireland.

The Local Enterprise Office grant supports are available to all entrepreneurs provided their business meets the eligibility criteria of the support they are applying for. Direct financial grant aid such as the Priming Grant and the Business Expansion Grant are intended for businesses in the manufacturing and internationally traded services that can demonstrate growth potential and include salary costs for additional staff as an eligible expense.

In addition, all entrepreneurs can avail of Local Enterprise Office training, mentoring and management development programmes. Furthermore, Local Enterprise Offices can provide additional support to entrepreneurs such as one to one mentoring or accommodations to assist with the completion of grant application forms or to complete training courses such as Start Your Own Business.

Enterprise Ireland is focused on ensuring that supports for entrepreneurs and enterprise are accessible to all, including people with disabilities. Enterprise Ireland continues to invest in additional content, available on the eiLearn platform and are working in conjunction with stakeholders in the LEOs and third level colleges to develop new programmes and initiatives. One such initiative is a course delivered by TU Dublin in conjunction with LEO mentors. This course is open to people with disabilities and who have a business idea that they wish to pursue as a sustainable enterprise.

In addition to the above, the Department of Social Protection provides grants to individuals with disabilities to assist them in their employment. This includes the Reasonable Accommodation Fund which consists of the Workplace Equipment and Adaptation Grant, the Job Interview Interpreter Grant, the Personal Reader Grant and the Employee Retention Grant.

Work Permits

Questions (68)

Brendan Griffin

Question:

68. Deputy Brendan Griffin asked the Minister for Enterprise, Trade and Employment if the critical skills list review will be carried out sooner than scheduled by his Department in view of the enormous resourcing pressures presently paralysing enterprises; if he is aware in particular of the shortage of transmission line workers and the refusal of work permits for such workers despite their unavailability in the Irish market; the reason his Department is waiting until autumn to initiate work to address this pressing problem; and if he will make a statement on the matter. [31624/23]

View answer

Written answers

This week a public consultation was announced which commences a review of the occupations on the ineligible and the critical skills employment permits lists. This review invites submissions from users of the employment permits system and interested parties and provides a window of eight weeks for the preparation of evidence from sectors.

The review process will take into account stakeholder submissions and will also be informed by research undertaken by labour market policy research bodies such as the Expert Group on Future Skills Needs (EGFSN) and SOLAS. The views of the Economic Migration Interdepartmental Group, chaired by this Department, which includes representatives of the Department of Environment, Climate and Communications as the lead policy department for the energy supply and service sector, will also be considered.

Officials of my Department have been engaging with the Department of Environment, Climate and Communications over the last number of weeks with regard to the role of overhead linesman which has been identified as a key role in short supply across the EU in the energy and supply services sector and a submission has been received recently from the sector. The submission is under active consideration at present.

My Department reviews the employment permits system regularly, working with other Government departments to promote an integrated approach to address skills shortages in the longer term.  However, economic migration alone is not a sustainable long-term solution to labour shortages. Government policy continues to focus on approaches that educate and upskill the population in response to the ever-changing needs of business, and as a general principle our labour market policy should aim to ensure that most labour and skills needs are met from within the domestic and EEA workforce.

My Department actively responds to the concerns raised by various sectors of the economy with regard to the 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, with many sectors provided with access to employment permits.

An efficient and responsive Employment Permit system is a critical component to ensure that talent is attracted to Ireland from non-EEA countries.  I am committed to improving the efficiency of administrative processes and making services more customer friendly to the benefit of both employers and potential employees.

Co-operative Sector

Questions (69)

Maurice Quinlivan

Question:

69. Deputy Maurice Quinlivan asked the Minister for Enterprise, Trade and Employment if he has considered the re-establishment of the co-operative development unit within his Department to provide training support and advice to co-operatives. [31488/23]

View answer

Written answers

The issue as to whether the Department would re-establish the co-operative development unit is part of the bigger issue regarding potential supports for the co-operative sector. There are a number of aspects to this issue. One of the most significant forms of assistance for the sector will be the introduction of a modern legal framework which will place the co-operative model on a more favourable and clear legal basis. This will encourage the consideration of the co-operative model as an attractive formation option for entrepreneurs and also for social and community activities. A modern legislative basis, including strong corporate governance requirements, will also provide confidence to stakeholders and help to encourage investment in co-operatives.

The Department will continue to engage widely with key stakeholders to raise awareness of the proposed legislation and the potential for those who wish to follow the co-operative ethos to grow and prosper under the modernised co-operative regime. This will include liaison with the co-operative sector and their representative bodies; the enterprise development agencies within the remit of the Department; other relevant Government Departments; professional advisors and direct communication by the Registrar with individual societies.

Supports to enterprises through the enterprise development agencies are not based on the model of business formation. It is considered that the most appropriate way to raise awareness of the potential benefits of the co-operative model is through existing channels and structures. However, this Department will keep matters under review in the context of preparations for the forthcoming legislation. The co-operative model is one of a number of options available to those considering establishing themselves in business. The forthcoming legislation will complement the already modernised and consolidated regime applying to companies.  However, the choice of corporate model is a matter for the founders of any business and this Department does not promote any corporate structure over any other.

Tourism Policy

Questions (70)

Cathal Crowe

Question:

70. Deputy Cathal Crowe asked the Minister for Enterprise, Trade and Employment if he will consider developing four regional hubs to support seedbed and fledgling tourism businesses; and if he will make a statement on the matter. [31311/23]

View answer

Written answers

The Deputy will be aware that the Local Enterprise Offices are units within each of the 31 Local Authorities nationwide and act as a ‘first-stop-shop’ for providing advice and guidance, and other supports to those wishing to start or grow their own business.

 The LEOs provide a wide range of high-quality business and management development programmes, and productivity 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.

A key feature and strength of my Department’s Regional Enterprise Plans (REPs) is that they are developed using a ‘bottom-up’ approach, developed by regional stakeholders, who are keenly aware of the growth opportunities and vulnerabilities in their region, and of the benefits of working collaboratively to enhance their enterprise ecosystem. Each Plan includes a number of strategic objectives and actions which are driven by Regional Steering Committees. Fáilte Ireland are leading on several actions in the REPs to support tourism development. Implementation of the Regional Enterprise Plans is progressing in each of the nine regions.

The Deputy may wish to note that my Department has secured up to €145m in funding from the European Regional Development Fund which will support projects aligned to the Regional Enterprise Plans. Projects, such as the development of new hubs, will have the opportunity to apply for this funding when the first call is announced in the coming months.

My Department and the Department of Rural and Community Development are leading on the development of a National Hub Strategy which will be based around the themes of enterprise, employment and non-commercial community activities. 

The enterprise theme will be led by my Department and look at the current and future role enterprise centres and hubs play in supporting start-ups and entrepreneurs as well as the sustainability of enterprise centres and hubs.

It is expected that the Strategy will set out time-bound actions, assigned to Government Departments and state agencies, to ensure that the hub sector remains relevant, accessible and sustainable.

Top
Share