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Thursday, 23 Nov 2023

Written Answers Nos. 1-20

Trade Relations

Questions (4)

Gary Gannon

Question:

4. Deputy Gary Gannon asked the Minister for Enterprise, Trade and Employment his views on Irish-Israeli trade relations; and if he will make a statement on the matter. [51394/23]

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Written answers

Ireland’s trade relations with Israel are governed by a Free Trade Agreement as part of an overarching EU-Israel Association Agreement, which came into force in June 2000. The Association Agreement aims to provide an appropriate legal and institutional framework for political dialogue and economic cooperation between the EU and Israel.

It is important to note that the Free Trade Agreement does not recognise Israel’s sovereignty over the occupied territories, namely the Golan Heights, the Gaza Strip and the West Bank, including East Jerusalem. This position was confirmed in an EU ‘Interpretive Notice’ in 2015. Products requiring origin labelling which are produced in Israeli settlements, may not carry the indication ‘product of Israel’, as settlements do not form part of Israeli territory according to international law, and therefore those products do not receive preferential treatment under the EU-Israel Free Trade Agreement when exported to the EU.

In the context of EU–Israel trade, Israel is among the EU’s main trading partners in the Mediterranean area. In respect of bilateral trade between Ireland–Israel, two-way trade in goods amounted to €5.8bn in 2022 with a majority of that two-way trade arising from trade in electrical machinery and appliances.

The overarching Agreement with Israel, established the EU-Israel Association Council as the appropriate forum for raising all matters of mutual interest, including disputes between the EU and Israel. At the Association Council in October 2022, the EU restated its position that all agreements between the State of Israel and the EU do not apply to territory occupied by Israel in 1967. Any action to suspend elements of the Association Agreement would require the support of a qualified majority of EU Member States. Member States cannot act unilaterally in this regard.

The only thing that will end the suffering in Gaza is a ceasefire and that is the focus of our efforts. Last week the Tánaiste visited Egypt, Israel and the occupied Palestinian territory. In his meeting with his Israeli counterpart, he expressed grave concern about the humanitarian situation in Gaza and reiterated calls for an immediate humanitarian ceasefire.

Furthermore, it is my view that any process undertaken which seeks to suspend or upend the application of the EU-Israel Trade Agreement would only serve to undermine EU and Irish government efforts to broker a lasting peace between Israel and the Palestinian territories.

Therefore, our focus at this moment in time, working in the UN, the EU and directly with Israel is to support an immediate humanitarian ceasefire, and a significant scaling up of humanitarian access and supplies to get vital aid to civilians.

Questions Nos. 5 and 6 answered orally.

Business Supports

Questions (7, 66)

Sorca Clarke

Question:

7. Deputy Sorca Clarke asked the Minister for Enterprise, Trade and Employment to provide information on how the increased cost of business scheme announced in Budget 2024 will operate. [51134/23]

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Pádraig O'Sullivan

Question:

66. Deputy Pádraig O'Sullivan asked the Minister for Enterprise, Trade and Employment when the increased cost of business grant will be operational; and if he will make a statement on the matter. [51374/23]

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Written answers

I propose to take Questions Nos. 7 and 66 together.

The Increased Cost of Business Grant (ICOB) was announced as part of Budget 2024 and will be targeted at Small and Medium sized businesses who operate from a rateable premises. Firms who do not have a rateable premises are not within the scope of this scheme. The total allocation for this scheme is €250m.

It is important that I be clear that this scheme is a once-off grant aid provision and not a commercial rates waiver. It will have no bearing on the commercial rates paid by firms. Firms should continue to pay their commercial rates as normal.

The grant is intended to be paid at a rate of up to half the enterprise’s commercial rates bill, subject to a prescribed limit and the grant will be based on the commercial rates that firms were billed in 2023. The grant is intended to aid firms but is not intended to directly compensate for all increases in wages, or other costs, for every business. The grant will be paid through local authorities and will be paid in the first quarter of next year.

My Department will work with the Department of Housing, Local Government and Heritage and the Local Authorities to finalise the details of the grant and I am planning to bring a Memo forward in due course.

Business Supports

Questions (8)

James O'Connor

Question:

8. Deputy James O'Connor asked the Minister for Enterprise, Trade and Employment if his Department will review the flood supports administered through the Red Cross for those affected whose insurance excess restricts them from accessing the current scheme; and if he will make a statement on the matter. [51587/23]

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Written answers

Under the emergency business flooding schemes the Government has made provision to provide up to €100,000 for small businesses, community, voluntary and sporting bodies directly affected by the weather events in Counties Cork, Galway, Waterford, Limerick, Louth, Wexford, and Kilkenny.

These schemes provide urgent assistance to businesses that were unable, through no fault of their own, to get insurance to help with the costs of repairing the damage caused by flooding.

The scheme are intended as an emergency humanitarian assistance contribution only and not as compensation for loss or a replacement for the cover provided by insurance.

For businesses, community, voluntary and sporting bodies the excess on their insurance claims should be a relatively small amount and, depending on their coverage, the cost of the damage incurred as a result of flooding should be covered by their insurance policy.

In addition, financial assistance by way of low-cost loans is immediately available from Microfinance Ireland to businesses with up to 9 employees that cannot get loan financing from other lenders. Loan options include cashflow loans of up to €25,000, which can be used for general business purposes including re stocking and other business costs. Loans for capital expenditure are also available, that could fund the refurbishment of premises, or the replacement of equipment damaged by the floods.

Regional Development

Questions (9)

Barry Cowen

Question:

9. Deputy Barry Cowen asked the Minister for Enterprise, Trade and Employment for an update on progress in the implementation of the Midlands regional enterprise plan; and if he will make a statement on the matter. [51225/23]

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Written answers

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

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

The Midlands Regional Enterprise Plan is overseen and monitored at a regional level by a Steering Committee made up of stakeholders from Counties Laois, Offaly, Longford and Westmeath.

I attended the last meeting of the Midlands Steering Committee on 12 May in Portlaoise. At that meeting an update was provided on each strategic objective and associated actions.

There is a lot of activity in the region in support of the Plan. Under Strategic Objective 1, ‘Transition to a net zero-carbon economy’, much good work is ongoing. Earlier this year, The Cube was officially opened - a Midlands-based national centre of excellence focused on facilitating economic growth, innovation and education in the Low Carbon and Renewables industry. The development of The Cube was supported by the Regional Enterprise Development Fund and Laois County Council.

Under Strategic Objective 2, which seeks to 'build on achievements to date in sectors in which the region has a competitive advantage through Smart Specialisation and Digitalisation', the Midlands ICT Cluster Action Plan was published and which I was delighted to support and launch. The action plan will be implemented under the guidance of the Steering Committee, chaired by industry, and thematic working groups.

I believe good progress is being made in delivering on all the objectives of the Plan. The next meeting of this Steering Committee is scheduled for tomorrow, Friday 24 November in Tullamore.

My Department oversees implementation at the national level and I, together with Ministers Coveney and Richmond, attended the Regional Enterprise Plans National Oversight Group meeting on 26 October.

Regional Enterprise Plan Chairs were in attendance, together with representatives from the enterprise agencies, the Head of the LEO network, the County and City Management Association and other organisations with a focus on regional enterprise development.

A topic for discussion at that meeting was the provision of funding to implement enterprise projects aligned to the Regional Enterprise Plans.

As the Deputy will be aware, my Department has secured up to €145 million in funding to support projects aligned to those Plans. This builds on the €126 million my Department has already allocated in regional enterprise funding.

The first call of €35 million under the Smart Regions Enterprise Innovation Scheme, which is co-funded under the European Regional Development Fund, is now open on the Enterprise Ireland website and will close on 31 March 2024. I expect that there will be up to four calls under this fund over the coming years.

I want to take this opportunity to acknowledge the Chair of the Midlands Regional Enterprise Plan, Dr Anne Cusack, the Programme Manager, Sarah Morgan, and all on the Steering Committee, whose passion for and dedication to the region is evident in the ambition outlined in the Plan. I look forward to seeing innovative enterprise focused projects coming from the Midlands for this funding.

Question No. 10 answered orally.

Trade Missions

Questions (11)

Alan Farrell

Question:

11. Deputy Alan Farrell asked the Minister for Enterprise, Trade and Employment to report on the outcomes of the recent trade mission to South Korea; and if he will make a statement on the matter. [51293/23]

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Written answers

Ireland's inaugural Team Ireland Trade Mission Week took place from the 31st of October to the 4th of November to South Korea, in line with a priority action set out in the Trade and Investment Strategy 2022-26, "Value for Ireland, Values for the World". The aims of the strategy include broadening the reach of Ireland's enterprises, diversifying into global export markets, thereby improving the resilience of Ireland's global supply chains and supporting high-quality and sustainable jobs. This approach also complements the Government's Asia-Pacific strategy to raise the profile of Ireland in this dynamic and innovative economic region.

Team Ireland Trade Mission Week involved the Taoiseach, myself, and Ministers McConalogue and Harris as well as our key agencies. During the course of the week, a contingent of Enterprise Ireland client companies were introduced to potential investors and partners in South Korea and a number of prominent and strategically-important contract signings took place - including, for example, the signing of a joint venture by Irish company and a major Korean corporation, for a joint data centre project running on fuel cell technology - the very first of its kind in Europe. I also visited the new Korean National Institute for Bioprocessing Research and Training, or K-NIBRT, which is the first global partner in Asia of Ireland's own NIBRT and a tremendous example of Irish technological expertise making an impact in key overseas markets.

I also had productive engagements with Korean pharma and tech industries and with senior leaders from Korea's trade representative bodies. Finally, I had a warm and engaging bilateral meeting with the Korean Minister for Trade, Dr. Dukgeun Ahn, where we agreed to strengthen our practical bilateral ties. In summary, the events and meetings provided an opportunity to showcase Ireland's innovative and world-leading businesses and a unique opportunity to directly provide foreign direct investment messaging to senior level executives from major Korean conglomerates.

I am aware that my colleagues the Minister for Agriculture, Food and the Marine used the opportunity to make progress on the important issue of access for Irish beef on the South Korea market, and the Minister for Further and Higher Education, Research, Innovation and Science together with a delegation of Irish university leaders made connections and instituted exchange programmes with counterparts. The Taoiseach met with the President of the Republic of Korea, among other engagements.

The impacts from this inaugural Team Ireland Trade Mission Week are currently being assessed in a structured manner, but initial impressions are the event has been successful in making connections for two-way trade, investment and higher education exchange between Ireland and this dynamic and world-leading economy.

Questions Nos. 12 to 15, inclusive, answered orally.

Business Supports

Questions (16)

Pádraig O'Sullivan

Question:

16. Deputy Pádraig O'Sullivan asked the Minister for Enterprise, Trade and Employment how many businesses in Cork received emergency supports following floods; and if he will make a statement on the matter. [51375/23]

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Written answers

On the 24th of October 2023, the Government activated enhanced emergency business flooding humanitarian schemes that provides support of up to €100,000 to business, community, voluntary and sporting bodies. The Schemes now covers areas impacted by recent severe weather events including Counties Cork, Galway Waterford, Limerick, Louth, Wexford, and Kilkenny.

These schemes provide urgent assistance to businesses that were unable, through no fault of their own, to get insurance to help with the costs of repairing the damage caused by flooding.

The Irish Red Cross are administering and making payments under the Schemes on behalf of my Department. The Red Cross has distributed a total of €636,232 to businesses in Cork as of Friday the 17th of November. This funding has been administered to a total of 44 businesses.

The Red Cross is currently processing applications and the number of applications by businesses community, voluntary and sporting bodies in Cork is expected to rise as the closing date for receipt of applications is Friday the 15th of December 2023.

It is a priority of Government to provide the necessary emergency funding to those affected by these terrible flooding events.

Questions Nos. 17 and 18 answered orally.

Business Supports

Questions (19)

Claire Kerrane

Question:

19. Deputy Claire Kerrane asked the Minister for Enterprise, Trade and Employment the number of applications made under the scheme to assist businesses with the price of kerosene in counties Roscommon and Galway, in tabular form; and if he will make a statement on the matter. [51206/23]

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Written answers

On 6th September this year, I launched the Business Users Support Scheme for Kerosene to provide support to businesses that were impacted by significant increases in the cost of this fuel following the Russian invasion of Ukraine in 2022. The scheme provided eligible businesses with a payment to reimburse them for half of their increased costs in the period from 1st March to 31st December 2022, compared to the equivalent period in 2021.

The implementation of this scheme delivered on a commitment that I made earlier this year to ensure that businesses that rely on kerosene for heating purposes are supported in the same manner as those that have already received support in respect of increased electricity and natural gas costs under the Temporary Business Energy Support Scheme.

The Business Users Support Scheme for Kerosene closed to applications on the 31st October this year.

Although the Scheme is now closed to applications, the approval process is continuing and will be concluded shortly with payments made by the end of the year.

County

Total no. of applications

Galway

49

Roscommon

14

Business Supports

Questions (20)

Richard Bruton

Question:

20. Deputy Richard Bruton asked the Minister for Enterprise, Trade and Employment his plans for strengthening the capacity of the LEO network to give specialist support to enterprises, with varying needs and regional specialisms, within their remit and to the development of regional centres of excellence. [51510/23]

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Written answers

The Local Enterprise Offices (LEOs) play an extremely important role providing their services direct to small businesses and promoting entrepreneurship within towns and communities across the country. They act as a ‘first stop shop’ at a local level providing expert advice and guidance, financial assistance, and offer a ‘signposting’ service for all government supports available to business owners throughout the country.

It is this unique position that makes the LEOs so effective, supporting a diverse range of new and innovative businesses to start and grow in every region, as evidenced by the year-on-year employment growth of LEO client companies.

The existing national assistance enterprise model has allowed the LEO network to deliver effective national programmes consistent with enterprise policy, designed and overseen by Enterprise Ireland’s Centre of Excellence, at a local level.

National campaigns, such as the recently launched ‘All in a Day’s Work’ campaign, focus on how the Lean, Green and Digital products offered by the LEOs can help businesses to save time, money, and energy, while the LEO Mentor Programme provides LEO Clients with the knowledge, skills, insights and entrepreneurial capability of experienced business practitioners.

2024 is the ten-year anniversary of the LEOs. To tie into this, officials in my department have commenced work on the development of a LEO policy statement that will set out the future direction for the LEOs in the coming years while implementing the White paper on Enterprise to further enhance the services available through the LEOs.

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