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Thursday, 23 Nov 2023

Written Answers Nos. 41-60

Small and Medium Enterprises

Questions (41, 63, 70)

Cathal Crowe

Question:

41. Deputy Cathal Crowe asked the Minister for Enterprise, Trade and Employment his plans to introduce mitigating measures to ensure that small and medium-sized businesses are able to bear the additional costs they are facing in terms of increased wage bills, additional bank holiday payment rates and increased commercial rates. [51128/23]

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Paul McAuliffe

Question:

63. Deputy Paul McAuliffe asked the Minister for Enterprise, Trade and Employment for an update on plans to assist businesses struggling to meet the increased minimum wage with a view to introducing a living wage. [51533/23]

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Barry Cowen

Question:

70. Deputy Barry Cowen asked the Minister for Enterprise, Trade and Employment what action he is taking assist SMEs with the cost of doing business; and if he will make a statement on the matter. [51226/23]

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Written answers

I propose to take Questions Nos. 41, 63 and 70 together.

It is understandable that businesses are concerned about the impact of rising costs.

Inflation in Ireland – although still elevated at 5.1 per cent in October – is generally declining. Recent forecasts from the Central Bank of Ireland indicate that inflation will continue to moderate to 3.2 and 2.3 per cent in 2024 and 2025, respectively. Wholesale price inflation has also been levelling off in recent months.

The Government has provided significant support to business throughout the period of increasing costs and has been proactive in limiting the fallout from higher rates of inflation in input costs and prices. However, it is not possible to insulate every business from the total impact of these costs.

Over the two-year period prior to Budget 2024 a total of €12 billion – 4½ per cent of national income – was provided in cost of living and doing business supports, comprising a mix of permanent and one-off measures, to ease the burden of inflation on households and businesses. The main programme introduced by Government to alleviate cost pressures for small businesses was the €1.3 billion Temporary Business Energy Support Scheme.

Budget 2024 also contained several measures which will support businesses facing increased costs. For example:

• The 9% VAT reduction for gas and electricity was extended for an additional 12 months, until the 31st of October 2024;

• The temporary excise rate reductions applying to auto diesel, petrol and marked gas oil were extended until the 31st of March 2024; and,

• There was an increase in VAT registration thresholds for SMEs, to €40,000 for services and €80,000 for goods.

The Increased Cost of Business Grant was also announced and will be targeted at small and medium sized businesses who operate from a rateable premises. This scheme is a once-off grant and not a commercial rates waiver. This grant is intended to aid firms but is not intended to directly compensate for all cost increases for every business.

My Department, in collaboration with the Department of Social Protection, is also assessing the cumulative impact of forthcoming changes to working conditions, including Pension Auto-Enrolment, Parent’s Leave and Benefit, Statutory Sick Pay, the Additional Public Holiday, the Living Wage, and Remote Working. This follows a recommendation by the National Competitiveness and Productivity Council that a cumulative impact assessment be undertaken. The report is due for publication later in Q4 2023 and will inform public policy in this area.

This Government has adopted an active approach in supporting Irish businesses across multiple crises over the last number of years, including the introduction of unemployment supports during the COVID -19 pandemic, the provision of financial supports to firms facing the implications of Brexit, and more recently, through the period of increasing overhead costs. My Department is fully committed to serving the SME sector and the measures included in Budget 2024 reflect this.

The Government is continuing to monitor the situation regarding the costs of doing business, however no new measures are currently under consideration.

Pension Provisions

Questions (42)

Bríd Smith

Question:

42. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment if he plans to bring forward any proposals that address the rights of retired workers in relation to having representation rights concerning their occupational pensions in light of his recent rejection of the proposal to grant retired workers the right to take cases to the WRC in relation to same; and if he will make a statement on the matter. [51599/23]

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Written answers

This question relates to the 2021 Private Members Bill on Industrial Relations (Provisions in Respect of Pension Entitlements of Retired Workers) sponsored by the Deputy (and Deputies Paul Murphy, Richard Boyd Barrett and Gino Kenny). It is a matter for the Deputies to progress the Bill.

At the Second Stage debate on the Bill, the former Minister of State for Business, Employment and Retail, Damien English, clearly outlined the Department's difficulties and concerns in relation to the proposed Bill as it was then drafted, and why it could not be supported by the Government.

The Joint Committee on Enterprise Trade and Employment met in public session on the 25 January 2023 to discuss detailed scrutiny of the Bill. Following this meeting, my Department issued a detailed brief to the Committee as requested and no further correspondence has been received by the Committee.

Industrial relations revolves around the relationship between workers and their employers. Access to the industrial relations machinery of the State is governed by the definition of “worker” in Section 23 of the Industrial Relations Act 1990. This provides, that a “worker” means any person aged 15 years or more who has entered into or works under a contract with an employer.

Where a pension scheme has an Internal Dispute Resolution (IDR) procedure this provides for a formal structure through which beneficiaries or potential beneficiaries can raise complaints or disputes and engage directly with the pension provider concerned. If an individual is dissatisfied with the outcome of an IDR process, he/she may advance a complaint to the Financial Services and Pensions Ombudsman, who is an independent and impartial statutory officer responsible for investigating and ruling on complaints from active members, deferred members and beneficiaries of occupational pension schemes.

Trade Data

Questions (43)

Bríd Smith

Question:

43. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment if he can detail the total volume and value in euro of Ireland's exports to and imports from the state of Israel; the categories of products exported and imported; and if he will make a statement on the matter. [51602/23]

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Written answers

The Central Statistics Office (CSO) compiles statistical data in relation to Goods Exports and Imports.

According to the CSO, the value of our goods exports to Israel was €821 million in 2021 and €1,049 million in 2022. The value of our goods imports from Israel was €2,439 million in 2021; and €4,836 million in 2022.

The value of our services exports to Israel was €4,352 million in 2021. The value of services imports from Israel was €1,415 million in 2021. The CSO does not yet have data for our services imports from, and services exports to, Israel for 2022.

CSO statistics show that Ireland’s main goods exports to Israel by statistical category are Electronic Components & Integrated circuits; Medical & pharmaceutical products; and Soft Drink Concentrate, Cosmetic & Dental Preps. Ireland’s main goods imports from Israel by statistical category are Electronic Components & integrated circuits; Medical Devices; and Specialised industrial & agricultural machinery.

Trade Agreements

Questions (44)

Rose Conway-Walsh

Question:

44. Deputy Rose Conway-Walsh asked the Minister for Enterprise, Trade and Employment the procedure for triggering the human rights clauses in EU trade agreements; and if he will make a statement on the matter. [50157/23]

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Written answers

As the Deputy will be aware, under the EU treaties, trade policy is an exclusive competence of the EU which acts on behalf of Member States in relation to international trade policy including the negotiation and establishment of free trade agreements with third countries.

The obligation to respect human rights is, in principle, established as an essential element in agreements the EU has concluded with third countries. The specific steps required for triggering such a clause have to be considered with regard to the specific terms of each agreement concerned.

In general, a violation of an essential elements clause allows a Party to suspend an Agreement wholly or partially, following a notification with the other Party and possibly consultations within a joint body established under the agreement.

Any proposal to trigger a human rights clause with the view to suspending an Agreement would need to be supported by a qualified majority of Member States, at Council. Individual Member States cannot act unilaterally in this regard.

Departmental Priorities

Questions (45)

Catherine Connolly

Question:

45. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 14 of 12 October 2023, the status update on his Department’s engagement with the Department of Foreign Affairs with a view to developing a new business and human rights action plan and implementation body; the status of the business and human rights stakeholder forum, and if it has been re-convened to date; and if he will make a statement on the matter. [51389/23]

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Written answers

As I have previously indicated, I recognise the importance of businesses having due regard to how their operations can impact on human rights. This is a moral and ethical requirement that is very much in line with societal and stakeholder expectations. Businesses in Ireland have responded well since Ireland launched its first National Plan on Business and Human Rights (2017 - 2020) in late 2017.

Ireland was 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 in place to implement the remainder.

Stakeholder engagement is an important part of developing the second National Plan. In advance of initiating the new forum, a public consultation took place seeking the opinions of interested stakeholders to inform the development of the second Plan. Eleven submissions, from business representatives, trade unions, human rights organisations and academia were received as part of a public consultation process which took place over the summer. My Department and the Department of Foreign Affairs have reviewed these submissions, which include a range of recommendations on the scope of the plan and monitoring and implementation structures.

Both Departments are now working closely together to re-convene a Business and Human Rights stakeholder forum, involving representatives of Government, civil society and business, including officials from both Departments. Both Departments have identified participants for this group, which will include business representatives. The stakeholder group will convene a meeting shortly to discuss common themes emerging from the submissions and determine a viable pathway forward for the development and implementation of a second Plan.

The new Plan is expected to cover a multi-annual timeframe as was covered in the first Plan. The new National Plan is intended to build on the achievements of the first National Plan, while reflecting new developments in the international understanding of business and human rights, including new EU instruments. It will also align with the commitment in the Programme for Government to ‘ensure that the Action Plan on Business and Human Rights is further developed to review whether there is a need for greater emphasis on mandatory due diligence’.

Trade Agreements

Questions (46)

Marian Harkin

Question:

46. Deputy Marian Harkin asked the Minister for Enterprise, Trade and Employment if he will request the European Commission to start the process of suspending the EU-Israel Trade Agreement. [51090/23]

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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.

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.

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.

Trade Relations

Questions (47)

Bríd Smith

Question:

47. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment his views on proposals to restrict and ban goods originating from illegal settlements in the West Bank; if his Department can provide any figures for the volume of such goods and their value of same; and if he will make a statement on the matter. [51603/23]

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Written answers

As the Deputy may know, issues related to the Occupied Territories Bill are led by colleagues in the Department of Foreign Affairs.

Ireland applies a whole of Government approach to the policy of differentiation between the territories of Israel and the Occupied Palestinian Territories. Furthermore, the Government’s position on the illegality of Israeli settlements in the occupied Palestinian territory informs our engagement with Israel across a range of bilateral issues, including the Tánaiste's recent meetings with political counterparts during his recent visit to Israel.

However, as has been stated on several occasions, the Occupied Territories Bill would not be compatible with EU law. The Government will therefore not be taking it forward.

Ireland’s resolute opposition to illegal Israeli settlements is firmly grounded in international law. To adopt a unilateral approach, as outlined in the Occupied Territories Bill, runs contrary to legal advice and would undermine Ireland’s clear and principled stance on this issue, as well as our broader promotion of compliance with international law at the UN and other international organisations.

In terms of trade from the occupied territories, I can only comment on the figures recorded by the Central Statistics Office on trade between Ireland and the Occupied Palestinian Territory, which includes the West Bank, including East Jerusalem and Gaza.

In 2022, Ireland imported €200,000 of goods from the region, mainly vegetables and fruit. Ireland exported approximately €2.4m of goods to the region, much of those exports comprised of medical and pharmaceutical products.

Business Supports

Questions (48)

Denis Naughten

Question:

48. Deputy Denis Naughten asked the Minister for Enterprise, Trade and Employment if he will outline the work his Department is undertaking to fully utilise broadband connectivity in increasing sustainable employment, given that Ireland is set to become one of the most connected countries in Europe for fibre broadband; and if he will make a statement on the matter. [51520/23]

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Written answers

The adoption of digital technologies by all businesses, in particular SMEs, is vital for our economic development and social well-being, and to ensure balanced regional development. Digitalisation can deliver a multitude of benefits including reduced costs and increased productivity, better products and services, market expansion and diversification, as well as enabling businesses to reduce their climate impact.

Ireland ranks the highest in the EU in the European Commission's 2023 State of the Digital Decade report for mobile broadband take-up, at 98% compared to an EU average of 87%. The availability of high speed, reliable, secure and sustainable digital connectivity will help us to work towards our economic and social ambitions, leading to more balanced regional development, ensuring that no one is left behind in the digital transition, and supporting the green transition.

As outlined in the White Paper on Enterprise, sustained investment in digital infrastructure, including connectivity and cybersecurity, provide the foundations for the digital economy. It's clear that connectivity will be vital in achieving the targets for my own Department, namely 75% enterprise take-up of cloud, big data, and AI by 2030; and 90% of SMEs achieving a basic level of digital intensity by 2030.

To help businesses work towards digitalisation, my Department launched the Digital Transition Fund in 2022 as part of Ireland’s National Recovery and Resilience Plan. The Fund has been allocated €85 million over the period to 2026. Administered by Enterprise Ireland, IDA Ireland and Údarás na Gaeltachta through a variety of schemes, this fund is helping companies at all stages of their digitalisation journey, particularly SMEs.

The Department, Enterprise Ireland, and the LEO Centre of Excellence are working to examine how to broaden eligibility for digital funding schemes to increase access for businesses which are currently not eligible.

Digital Infrastructure is one of the four dimensions of the Government's National Digital Strategy, launched in February 2022. It is clear that a robust broadband infrastructure will be vital in reaching our National Digital Strategy targets, by enabling businesses across the country to take advantage of digital technologies and to increase sustainable employment.

The Department of Environment, Climate and Communications published its Digital Connectivity Strategy in December 2022, which set out the targets that will be achieved by the telecommunications sector in providing digital connectivity across the State. It also identified the key enablers that will be implemented to ensure these targets are met.

We are making steady progress towards the EU's 2030 target of 100% fixed Fixed Very High Capacity Network (VHCN) coverage, which we hope to meet two years early in 2028, and 5G coverage in all populated areas.

As part of the Digital Europe Programme, work is ongoing on Ireland’s network of European Digital Innovation Hubs (EDIHs). These hubs will support digital transformation for SMEs by encouraging the adoption of the latest advances in three key digital technologies: Cybersecurity, Artificial Intelligence, and High-Performance Computing. There are four operational hubs in Ireland. These are CeADAR, FactoryxChange (FxC), DATA2SUSTAIN, and ENTIRE.

Work is also underway on the development of a new Digital Portal to help businesses to self-assess their digital needs as well as signposting to training, resources, and funding options. The Digital Portal will demystify digital and will assist businesses on the digital adoption journey.

In addition to facilitating the uptake of digital technologies, broadband connectivity facilitates remote working for employees. Government has also supported the creation of remote working hubs in locations throughout the country. In May 2021, the Department of Rural and Community Development (DRCD) launched the National Hub Network and ConnectedHubs.ie platform. To date, the Government has invested over €150 million to support the establishment, improvement and sustainability of hubs and co-working facilities nationwide. Connected Hubs will ultimately link over 400 hubs and co-working facilities throughout the country by 2025, and to date 330 co-working hubs are up and running.

Digital connectivity will also enable the Government's policy priority of regional enterprise development. We now have nine new Regional Enterprise Plans in place, which will encourage collaboration among stakeholders to strengthen the regional offering for enterprise and therefore create an environment for successful economic development, sustainable employment and growth across the country.

Artificial Intelligence

Questions (49)

James Lawless

Question:

49. Deputy James Lawless asked the Minister for Enterprise, Trade and Employment for a report on his attendance at the AI Safety Summit; and if he will make a statement on the matter. [51221/23]

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Written answers

I attended the AI Safety Summit which took place in Bletchley Park on 1/2 November, on the invitation of the UK Secretary of State for Science, Innovation and Technology, Michelle Donelan.

Countries attending agreed to the Bletchley Declaration on AI safety, which recognises a shared consensus on the opportunities and risks of particular uses of AI, and the need for collaborative action on frontier AI safety.

Ireland’s engagement on AI development, in particular in negotiating the EU AI Act, but also in other international fora looking at AI governance, emphasise the importance of ethical, person centred development and deployment of AI, and an inclusive, multi-stakeholder approach.

During the Summit, I participated in such broad and inclusive discussions, involving representatives from across sectors and reflecting on the urgent need for a shared international understanding. I participated in a Roundtable Discussion on the risks from the Integration of frontier AI into society. I also participated another Roundtable Discussion focussed on the theme of what the international community should do in relation to the risks and opportunities of AI. This session discussed where international collaboration is most needed to both manage risks and realise opportunities from frontier AI, including areas for international research collaborations.

During the Summit, I had the opportunity to have a bilateral meeting with my Indian counterpart, Minister of State at the Ministry of Electronics and Information Technology, Rajeev Chandrasekhar, whose country will be hosting the Global Partnership on AI meeting as well as a G20 meeting in December. I also engaged with my Spanish counterpart, the Secretary of State for Digitisation, Carme Artigas and the UK Minister of State for Science, Research and Innovation George Freeman.

The Summit provided the opportunity for informal engagements across all of the sectors whose active participation will be required for both the economy and society to fully realise the enormous opportunities and mitigate any risks presented by deployment of AI, including governments, industry, academia and civil society leaders.

The next in-person AI Safety Summit will be hosted by France in 1 year’s time.

Enterprise Support Services

Questions (50)

Brendan Smith

Question:

50. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment the proposals he has and the measures that will be introduced to assist in the provision of enterprise centres which are essential to provide workspace for start-up companies and small enterprises; and if he will make a statement on the matter. [51479/23]

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Written answers

Balanced regional enterprise development continues to be a key priority for me and this Government as clearly reflected 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. Each of the Plans includes strategic objectives and actions designed to maximise the potential of enterprise hubs around the country.

Enterprise hubs are vital enterprise infrastructure in each region; they play an important role in supporting the enterprise ecosystem through the provision of accommodation and facilities, as well as offering supports to entrepreneurs, start-ups, microenterprises and SMEs. My Department has already provided over €200m in funding to support the establishment of some 270 enterprise hubs throughout the country through various regional enterprise funds.

The Deputy will be aware that I recently announced that my Department has secured €145m in funding for the Smart Regions Enterprise Innovation Scheme, co-funded under the European Regional Development Fund. This Scheme will support projects aligned to the Regional Enterprise Plans, including development of new enterprise hubs and centres and expansion of existing facilities. The first call of €35m is now open and there will be further calls in the coming years. Full information is available on Enterprise Ireland’s website.

The Deputy may also wish to note that my Department and the Department of Rural and Community Development are developing a National Hub Strategy, which will be based around the themes of enterprise, employment and non-commercial community activities.

Development of the enterprise theme is being led by my Department and will look at the current and future role enterprise hubs play in supporting start-ups and entrepreneurs as well as their sustainability.

The Strategy, due to be published in Q1 2024, will provide a strategic direction for the future of the national hub network and I expect it will include time-bound actions to ensure that the hub sector remains relevant, accessible and sustainable.

Industrial Development

Questions (51)

David Stanton

Question:

51. Deputy David Stanton asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No.76 of 23 February 2023, to outline his plans, if any, for the development of the IDA site at Ballyadam, Carrigtwohill, County Cork; and if he will make a statement on the matter. [51304/23]

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Written answers

IDA’s regional property programme ensures the continued supply of land, buildings and infrastructure in regional locations to meet the needs of current and prospective clients of IDA, Enterprise Ireland and the Local Enterprise Offices. The timely provision of appropriate, cost-effective property and infrastructure solutions to meet the needs of Multi-National Companies (MNCs) remains essential to winning Foreign Direct Investment (FDI). The 56-hectare site in Ballyadam, Carrigtwohill is part of IDA’s overall strategic land bank portfolio in Cork and is available to support FDI clients.

The site was historically designated as a strategic site for development of a large scale stand-alone industrial enterprise and was reserved for this purpose in the previous Local Area Plan. IDA Ireland acknowledged that this represented a constraint which precluded the consideration of any industrial or other employment generating development project on the lands at Ballyadam unless it was a stand-alone high quality industrial development which would occupy the entire site. Accordingly, the IDA made a formal submission in relation to an amendment to the Cobh Municipal District Draft Local Area Plan in the past to enable future flexible development of the lands. IDA Ireland supported the deletion of that restriction and the adoption of a more flexible specific objective for the subject lands at Ballyadam.

The site is adjacent to the N25 National Primary Route. The proximity of the site to the N25 and the planned provision of the Interchange are significant factors in enhancing the attractiveness of the site as a location for FDI projects.

I am assured that IDA Ireland is committed to the promotion of the lands at Ballyadam for development for employment generating uses consistent with its development brief. The amendment to the Local Area Plan affecting these lands with the omission of the constraint limiting their development to a stand-alone industrial user and the planned provision of the grade separated interchange on the N25 adjacent to/within the subject lands will serve to enhance the prospects of the realisation of that objective.

There has been significant property activity involving the site over recent years, which has included land discussions with Eirgrid to support the Celtic Interconnector project, engagement with Cork County Council on the proposed M25 upgrade and the associated potential land requirement to facilitate same. IDA Ireland has also been engaged on future proofing the land bank for development which included planning permission and completion of a new interim vehicular access to the site and internal road network within the site to support potential investment in advance of any upgrade to the N25 road network. This project included extensive consultation with all relevant stakeholders including Cork County Council and various utility providers and is now complete.

Employment Rights

Questions (52)

Louise O'Reilly

Question:

52. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment if it is his intention to set out in primary legislation how a workers’ employment status will now be determined following the recent Supreme Court ruling in a case (details supplied). [51437/23]

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Written answers

The Government welcomes the ruling of the Supreme Court in the Domino’s Pizza case (Revenue Commissioners v. Karshan (Midlands) Ltd. T/A Domino’s Pizza). Although the decision centres on tax legislation, my Department is considering the judgment in the context of our employment rights remit. This has been a focus for Government in recent years with a number of important steps taken to improve working conditions whilst supporting sustainable growth.

Ireland has robust mechanisms for the determination of the employment status and the Government is committed to tackling false self-employment wherever it occurs. An updated ‘Code of Practice on Determining Employment Status’ was published in July 2021. The Code is the key guidance document for employers and workers and others in relation to deciding the employment status of a worker and was revised to take account of newer labour market developments.

Where an issue arises in relation to the employment status of an individual, cases are forwarded, for investigation, to the Revenue Commissioners regarding tax treatment and/or the Scope Section of the Department of Social Protection, regarding the appropriate class of PRSI. This may be undertaken either solely by the recipient, or jointly with the Labour Inspectorate of the Workplace Relations Commission.

In addition, at EU level, a Directive has been proposed on improving working conditions in platform work. A key element of this proposal is that it will help determine the correct employment status of people working for digital platforms.

More generally, work is ongoing in my Department to establish the Employment Law Review Group (ELRG) on a statutory basis through the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Bill 2023. Once established, the ELRG will be a valuable asset in considering complex employment law questions.

Business Supports

Questions (53, 76)

James O'Connor

Question:

53. Deputy James O'Connor asked the Minister for Enterprise, Trade and Employment if he will provide the current up-to-date numbers of how much funding has been administered through the Red Cross scheme for flood victims in the east Cork area; and if he will make a statement on the matter. [51588/23]

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David Stanton

Question:

76. Deputy David Stanton asked the Minister for Enterprise, Trade and Employment the way his Department is assisting businesses that were adversely impacted by the recent flood events in Midleton, County Cork and elsewhere in the country; and if he will make a statement on the matter. [51303/23]

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Written answers

I propose to take Questions Nos. 53 and 76 together.

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 number of applications by businesses in Cork is expected to rise as the closing date for receipt of applications has been extended to Friday the 15th of December 2023.

In addition to the flooding schemes, financial assistance by way of low-cost loans is immediately available from Microfinance Ireland to small businesses 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 which could fund the refurbishment of premises or the replacement of equipment.

Trade Relations

Questions (54)

Catherine Connolly

Question:

54. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment the details of any engagement he has had with the Minister for Foreign Affairs regarding the human rights considerations that may arise from the issuing of dual-use export licences in respect of end-users in Israel, particularly in light of Israel’s actions in Gaza since 7 October 2023; and if he will make a statement on the matter. [51392/23]

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Written answers

My Department is responsible for administering controls on the export of Dual-use goods in accordance with Regulation (EU) 2021/821 of the European Parliament and of the Council setting up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items.

The Regulation sets out that when assessing applications for dual-use exports, consideration must be given to the European Council Common Position 2008/944/CFSP defining common rules governing control of exports of military technology and equipment. The Council Common Position sets out eight criteria under which all applications must be assessed including consideration of international obligations and commitments under export control arrangements and international treaties as well as considerations about intended end-use and the risk of diversion.

Criterion two specifically sets out a requirement that when assessing an application, my officials must consider the human rights situation in the country of final destination as well as respect by that country for international humanitarian law.

To take account of the constantly changing international geopolitical landscape, my Department consults with the Department of Foreign Affairs on all applications in respect of dual-use exports on a case by case basis. My officials seek observations from the Department on foreign policy concerns, including human rights considerations, that may arise in relation to proposed exports to end users in Israel and elsewhere.

Cross-Border Co-operation

Questions (55)

Paul McAuliffe

Question:

55. Deputy Paul McAuliffe asked the Minister for Enterprise, Trade and Employment if the Government has reviewed the recommendations by the European Commission on developing social economy framework conditions in order to ease barriers to cross-border philanthropy. [51534/23]

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Written answers

Cross-border philanthropy has the potential to play a significant role in providing alternative sources of funding for our entrepreneurs and SMEs. My Department is supportive of any initiatives in this area.

However, the implementation of the recommendations set out in the social economy framework conditions falls under the remit of the Minister for Community and Rural Development.

Funding allocation for the implementation of relevant recommendations falls under the remit of the Minister for Finance.

Business Supports

Questions (56)

Jim O'Callaghan

Question:

56. Deputy Jim O'Callaghan asked the Minister for Enterprise, Trade and Employment the number of successful applications for support under thebusiness user support scheme for kerosene in each county; and the total value of the support provided in each county under the scheme, in tabular form. [50973/23]

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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.

The statistics outlined below in reply to your question are broken down by county and value up to November 17th. While the scheme is closed to applications, the approval process is continuing and will be concluded by the end of the year, so the figures below do not represent the final approval figures for the Scheme.

County

Total number of approved applications by county to Nov 17th 2023

Total Amount Approved by county to Nov 17th 2023

Monaghan

4

€ 6,928.00

Louth

6

€ 3,124.00

Mayo

9

€ 7,614.00

Sligo

2

€ 3,343.00

Donegal

13

€ 22,700.00

Clare

7

€ 7,602.00

Galway

7

€ 15,984.00

Longford

2

€ 1,000.00

Westmeath

5

€ 30,420.00

Cork

9

€ 13,558.00

Offaly

7

€ 26,150.00

Wicklow

2

€ 1,372.00

Wexford

2

€ 973.00

Meath

2

€ 1,624.00

Tipperary

4

€ 2,593.00

Roscommon

1

€ 12,509.00

Cavan

2

€ 778.00

Dublin

2

€ 1,116.00

Leitrim

1

€ 1,199.00

Laois

1

€ 1,154.00

Kildare

2

€ 1,085.00

Kerry

6

€ 6,116.00

Limerick

3

€ 1,544.00

Waterford

3

€ 1,457.00

102

€ 171,943.00

Enterprise Policy

Questions (57, 60)

Bernard Durkan

Question:

57. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he continues to remain satisfied that any threats to enterprise, trade and employment continue to be adequately monitored in order to ensure provision is made insofar as is possible for both foreseen and unforeseen eventualities; and if he will make a statement on the matter. [51469/23]

View answer

Bernard Durkan

Question:

60. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which any potential threats to employment in the context of the manufacturing, services and retail sectors have been identified or are identifiable, whether budgetary provisions are sufficient to meet any or all threats in this area; if he expects that all or most contingencies in respect of threats to either sector are adequately catered for; and if he will make a statement on the matter. [51470/23]

View answer

Written answers

I propose to take Questions Nos. 57 and 60 together.

As set out in Budget 2024, risks to the near-term outlook are tilted to the downside. The rise in interest rates, which the ECB does not expect to cut before Summer 2024, would be expected to dampen international economic growth rates. Given the open nature of the Irish economy, a slowdown in international growth may lead to more moderate rates of growth domestically. Cyclicality in demand can also have implications for sectoral economic growth - such as demand for pharmaceutical products which had seen significant growth during the COVID-19 pandemic and bolstered Irish exports during that period. As an open economy we are also aware of the risk which any rise in protectionism internationally presents.

Despite these risks Ireland’s economy has demonstrated substantial resilience over the past number of years and into 2023, reaching full employment during a challenging period for the global economy. With an unemployment rate of 4.8% in September, the Irish economy has been operating at a level close to full employment for quite some time. Irish GDP grew by 13.6% in 2021, and 9.4% in 2022, therefore, a moderation in economic growth might naturally be expected. A moderation in growth is also forecast in the Economic and Fiscal Outlook published as part of Budget 2024, which projects Real GDP growth of 4.5% for both 2024 and 2025.

Over the two-year period prior to Budget 2024 a total of €12 billion – 4½ per cent of national income – was provided in cost of living and doing business supports, comprising a mix of permanent and one-off measures, to absorb some of the impact and ease the burden of inflation on households and businesses. Budget 2024 contained a number of measures which will support businesses facing increased costs of doing business, including the Increased Cost of Business Grant will be targeted at Small and Medium sized businesses who operate from a rateable premises, with a total allocation of €250m and an extension of the 9% VAT reduction for gas and electricity until 31st October 2024, among other measures.

My Department continues to monitor sectoral economic activity and risks to this activity. However, no new measures are currently under consideration beyond what has already been announced. As with the supports which were provided to help businesses with rising inflation, there is a limit to how much direct support Government can offer firms to shelter them from international economic developments and associated risks.

The Government’s approach to enterprise policy continues to be guided by the priorities set out in the White Paper on Enterprise 2022-2030 – published in December last year. This review of Enterprise Policy was the first since 2018 and was motivated by an awareness of a changing enterprise landscape posing new challenges, including shifting patterns of globalisation driven by geopolitical change, disruptive technological innovation, and lagging productivity in parts of the indigenous sector of the economy.

Trade Relations

Questions (58)

Matt Carthy

Question:

58. Deputy Matt Carthy asked the Minister for Enterprise, Trade and Employment the value of dual-use items or military goods approved for export to Israel in each of the years 2019 to date; and if he will direct the trade licensing and control unit within his Department to refuse export licence applications for dual-use items and military goods to Israel, given the ongoing breaches of international humanitiarian law and ongoing war crimes committed by Israel. [51442/23]

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Written answers

Ireland supports the pursuit of open, free and responsible trade rooted in the multilateral, rules-based system, while also recognising the vital importance of global security and humanitarian considerations in trade.

My Department is the National Competent Authority for EU Export Controls in respect of a range of sensitive goods, principally, 'Dual-use' items and defence-related equipment.

‘Dual-use’ items are products and components, including software and technology, that can be used for both civil and military applications. The ‘Dual-use’ exports from Ireland are predominantly mainstream business ICT products, both hardware and software, (networking, data storage, cybersecurity). They are categorised as ‘Dual-use’ items as a consequence of the fact that they make use of strong encryption for data protection purposes.

The value of individual 'Dual-Use' export authorisations issued in respect end users in Israel from 2019 to date is as follows: 4.7 million euros in 2019, 7 million euros in 2020, 10.4 million euros in 2021, 10.7 million euros in 2022 and 66.5 million euros in 2023.

Controls on the export of defence-related equipment are administered in accordance with the Control of Exports Act 2008. The list of equipment subject to these controls is set out in the Common Military List of the EU. No authorisations for exports of defence-related goods were issued in the period from 2019 to date.

My Department operates a robust and transparent system of export controls that requires balancing legitimate trade by Irish exporters with reputable end users against the possibility that goods could be diverted to an undesirable end use.

When assessing applications for exports of controlled goods my officials consider the eight criteria set out in the European Council Common Position 2008/944/CFSP defining common rules governing control of exports of military technology and equipment. The criteria include: international obligations and export control commitments; respect for human rights in the end user country; preservation of peace, security and stability and the risk that the goods or technology may be diverted.

As a matter of policy and practice my Department consults with the Department of Foreign Affairs on all applications for ‘Dual-use’ and defence related exports in respect of foreign policy concerns, including human rights considerations, that may arise with a proposed export. This advice is an integral part of the decision making process and is particularly important in relation to sensitive destinations, where the geopolitical situation is constantly evolving.

Business Supports

Questions (59)

Marc Ó Cathasaigh

Question:

59. Deputy Marc Ó Cathasaigh asked the Minister for Enterprise, Trade and Employment the take-up of the green for business programme for small businesses, broken down by LEO offices; and if he will make a statement on the matter. [51401/23]

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Written answers

The Local Enterprise Offices (LEOs) Green for Business programme, formerly named Green for Micro, was launched in March 2021 to assist businesses in lowering their carbon footprint, reducing costs, and improving the environmental profile of the business in the marketplace.

Green for Business is open to all small businesses who are neither Enterprise Ireland or IDA clients and allows them to avail of technical and/or advisory supports from external experts across a broad range of activities ranging from resource efficiency to understanding their carbon footprint, to implementing an environmental management system.

The grant offers 50%, up to a maximum of €5,000, of the cost of a project identified through participation in Green for Business, Greenstart or an SEAI energy audit.

Green for Business forms part of a suite of Lean, Green and Digital products offered by the LEOs, focusing on helping businesses to save time, money, and energy and are promoted through the LEO ‘All in a day’s work’ campaign which aims to draw attention to the benefits of making a business more efficient, productive, and sustainable.

The table below shows the uptake of Green for Business to date, in 2023:

Name of Support

Agency through which support is accessed

No of applications

No. of approvals /training attendance /completed online assessments

Green for Micro/ Green for Business*

LEOs

472

472

And below broken down by County:

LEO

No. Clients Applications*

No. Clients Approved *

Carlow

44

39

Cavan

12

12

Clare

10

11

Cork City

17

17

Cork North & West

7

12

Cork South

19

21

Donegal

20

20

Dublin City

25

21

Dublin Dun Laoghaire/Rathdown

20

21

Dublin Fingal

25

26

Dublin South

22

18

Galway County/City

13

15

Kerry

16

17

Kildare

39

42

Kilkenny

11

7

Laois

15

13

Leitrim

4

6

Limerick

12

13

Longford

11

11

Louth

9

10

Mayo

7

6

Meath

16

15

Monaghan

13

14

Offaly

5

5

Roscommon

16

17

Sligo

9

9

Tipperary

11

11

Waterford

14

14

WestMeath

16

17

Wexford

9

7

Wicklow

5

5

Total

472

472

Question No. 60 answered with Question No. 57.
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