Written Answers Nos. 1-20
8. Deputy Joe Flaherty asked the Minister for Enterprise, Trade and Employment for an update on progress made to acquire an IDA Ireland purpose built facility in Longford town; and if he will make a statement on the matter. [5508/24]
View answerIDA Ireland’s Regional Property Programme is aimed at supporting economic development and job creation across the country by providing property solutions to its own as well as Enterprise Ireland and LEO clients. In this regard, the provision of property solutions is a key element of IDA’s marketing of the Midlands Region, including Longford and the IDA has committed to build an Advanced Building Solution, or ABS, in Longford to support the winning of new investment and job creation.
While the site selection process is under way and is commercially sensitive, I am advised that IDA Ireland continues to explore all possible options to identify and secure suitable lands aligned with investor needs and is continuing to liaise with Longford County Council and wider stakeholders in this regard. On conclusion of site selection, the design and planning phases will commence.
The specific dates for commencement of construction are wholly dependent on, and subject to, the successful outcome of these processes and there are many factors that impact on timelines for the delivery of construction projects. In addition, the construction industry continues to face challenges in respect of global supply chains and cost inflation and the IDA is using best endeavours to deliver the building in Longford in a timely manner having regard to these market dynamics.
12. Deputy Michael Moynihan asked the Minister for Enterprise, Trade and Employment the number of local enterprise office supported jobs in Cork at the end of 2023; how this compares to 2022, 2021 and 2020 respectively; and if he will make a statement on the matter. [5556/24]
View answerThe Government is committed to backing business and will continue to work closely with small businesses nationwide by supporting their growth, helping them to find new markets, stimulating job creation and helping them digitalise and decarbonise.
The 2023 Local Enterprise Offices Annual Employment Survey results are testament to this commitment. These jobs figures show that in 2023, the LEOs supported a total portfolio of 7,167 small businesses and account for 38,726 jobs across the country. 82% of these jobs are provided by businesses outside of Dublin - which again reflects our ambitions to balanced regional development.
This is the highest recorded number since the formation of the LEOs, with an average of 6% growth across the country. Last year there was growth in every region, representing the 10th year of consecutive jobs increases.
I am pleased to inform the Deputy that in 2023, the three LEOs based in Cork financially assisted 630 local businesses and supported 3,268 jobs across Cork City and County.
The breakdown across the three Cork LEOs over the years in question is:
In 2022, 620 companies employing 3,159 people received grant assistance.
In 2021, 644 companies employing 2,847 people received grant assistance.
In 2020, 667 companies employing 3,027 people received grant assistance.
While these results only represent jobs supported by businesses who were in receipt of LEO grant assistance, many more jobs are created and sustained by enterprises which have received non-financial LEO supports. These include expert advice, one-to-one mentoring and training supports.
The LEOs also provide supports to help businesses address the priorities of exporting, decarbonisation and digitalisation. This is done through schemes such as the Trading Online Voucher, Green for Business, the Energy Efficiency Grant, Exporter Development and Digital for Business.
13. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment his views on the increased level of insolvencies in 2023. [5573/24]
View answerWith low levels of economic growth internationally, and even forecasts of recession in some economies, it can be expected that Ireland will experience increasing levels of company restructuring. While company closures and even business failures are a normal feature of a functioning economy and of an entrepreneurial culture, there has been some suggestion that particular stresses are emerging in some sectors of the economy.
My Department is working with the Department of Social Protection on a report that examines the impact of forthcoming changes to working conditions. This report is supported by evidence received from both employer and trade union perspectives and will be finalised in the coming weeks.
PwC’s latest Insolvency Barometer further reveals that business failures in Ireland, though remaining below 2019 levels, are beginning to revert to pre-pandemic levels. For example, there was a significant increase in the insolvency rate in 2023 - reaching 27 per 10,000 companies compared to 36 per 10,000 in 2019 - but still well below the peak of 109 per 10,000 businesses in 2012. PWC also report that the UK insolvency rate is double that of Ireland.
According to data provided by the Company Registrations Office, incorporations were up 4.4% in 2023 compared to 2022.
My Department is carefully monitoring the situation and is continually developing and adapting its response. Budget 2024 contained a number of measures which will support businesses facing increased costs of doing business.
Ireland has modern and robust legislation which provides a clear restructuring framework for companies, and rights for employees. I wish to highlight in particular the Small Company Administrative Rescue Process which was introduced by this government, to provide for a new dedicated rescue process for small and micro companies. SCARP is an accessible and cost-effective restructuring process for small but viable companies experiencing temporary financial problems, and has been welcomed as a valuable addition to the State’s restructuring toolkit for our small company sector.
My Department has mapped out a strategic direction for developing the enterprise sector through the White Paper on Enterprise which will shape coherent cross-Government encouragement of a resilient enterprise base.
Finally, on Monday 5th February the Minister for Finance also announced significant changes to the Tax Debt Warehousing scheme with a reduction in the interest rate applying to warehoused tax debt to 0%. In addition, Revenue has confirmed that, where a business has already paid warehoused debt, which was subject to interest at 3%, it will get a refund of that interest. This will ensure that all taxpayers are treated fairly.
14. 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. [5741/24]
View answerThe 31 Local Enterprise Offices (LEOs) play an extremely important role providing supports directly to small businesses and promoting entrepreneurship within towns and communities across the country.
They are the ‘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. They support a diverse range of new and innovative businesses to start and grow in every county and region, as evidenced by the year-on-year employment growth of LEO client companies.
I have been fortunate enough to visit many of our LEOs across the country, and I have seen first-hand the impact they have on small businesses and new entrepreneurs.
The existing national 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.
The strength of the current model means that there is a consistency of approach available across the country. All 31 LEOs can draw on the expertise of EI's Centre of Excellence as well as national panels of mentors to provide clients with bespoke and expert advice.
The immediate challenges that small businesses face as well as the long term issues of digitalisation and decarbonisation are best addressed through national expertise and initiatives, rather than through regional centres of excellence.
Furthermore, since the expansion of the LEO mandate to allow them to support businesses with up to 50 employees, there is a greater level of cooperation between the LEOs and the EI Regional Offices.
In addition, small business have access to the sixteen Technology Gateways located around the country which offer innovation support and assistance. Clients are referred to different Technology Gateways depending on their needs and irrespective of what region they are based in. Small businesses also have access to Ireland's four European Digital Innovation Hubs which are also regionally based.
My Department is currently developing a LEO Policy Statement that will set out the future direction and roadmap for the LEOs in the coming years. This will clearly set out how the LEO network will contribute to the implementation of the White Paper on Enterprise. It will be published to coincide the 10-year anniversary of the establishment of the LEOs in May this year.
The capacity of the LEO network will also be strengthened through the development of a new digital client engagement system which Enterprise Ireland are leading on.
In recognition of their importance, as well as their increased work load due to their expanded mandate, the LEOs will receive an additional €9m in funding this year to enhance delivery of all of their services to enterprise.
15. Deputy Richard Boyd Barrett asked the Minister for Enterprise, Trade and Employment what his role is in ensuring full compliance with employment legislation and workers right in the film TV arts and audio visual sectors; and if he will make a statement on the matter. [5801/24]
View answerIreland has a comprehensive body of employment, equality, and industrial relations legislation, in respect of which the Workplace Relations Commission (WRC) is mandated to secure compliance. Ireland’s employment rights legislation protects all employees who are legally employed on an employer-employee basis. All employers, regardless of sector, are responsible for ensuring that their employees receive all protections afforded them under employment legislation. There is no exemption or separate category under Irish employment law for individuals working in the film, TV and audio-visual sectors.
Employment rights legislation, including the National Minimum Wage, Payment of Wages, Organisation of Working Time, Employment Equality Acts, Health and Safety, Terms of Employment (Information) Act and Unfair Dismissals Act (in certain circumstances), apply horizontally across all sectors.
Work in the film, TV and audio visual sectors is often project based. As such, workers are often hired on fixed-term contracts for the duration of a project. The Protection of Employees (Fixed-Term Workers) Act 2003 provides for the improvement of the quality of fixed-term work by ensuring the application of the principle of non-discrimination and provides for the establishment of a framework to prevent abuse arising from the use of successive fixed-term employment contracts. The Act transposes EU Directive 1999/70/EC concerning the Framework Agreement on Fixed-term Work into Irish law.
If an employee has worked on two or more fixed term contracts, the combined duration of the contracts is limited to a maximum four years. After this, if the employer wishes the employee to continue in its employment, the contract will be deemed to be on the basis of a contract of indefinite duration unless the employer has objective grounds for renewing the contract of employment again on a fixed-term basis.
The Workplace Relations Commission is an independent body set up to adjudicate in individual cases. If an employee in the film, TV or audio visual sectors has a query about their employment status or believe they may not be receiving all of the protections they are entitled to, the WRC is there to help, through the provision of information as well as an adjudication service. The WRC also operates a labour inspection service to ensure compliance with employment legislation.
16. Deputy Niamh Smyth asked the Minister for Enterprise, Trade and Employment to review correspondence (details supplied); and what supports are open from his Department to assist struggling SMEs like this. [5551/24]
View answerThis Government has adopted a pro-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.
It is understandable that businesses are concerned about the impact of rising costs, and this Government is continuing to monitor the situation regarding the costs of doing business. While significant support has been provided to enterprise throughout the period of rising costs, it is not possible to insulate every business from the total impact of these costs.
Over the two years prior to Budget 2024, a total of €12 billion was provided in cost of living and business supports, comprising a mix of permanent and one-off measures. The main programme introduced by Government to alleviate cost pressures for small businesses was the Temporary Business Energy Support Scheme (TBESS).
Budget 2024 also contained several measures to support businesses facing increased costs. Among these, was the Increased Cost of Business Grant, targeted at small and medium sized businesses who operate from a rateable premises. This scheme is intended to aid firms who have been most affected by increases in business costs. The total allocation for the ICOB grant is €257 million.
My Department is currently working with the Local Authorities on the administration of the grant, to ensure that support can be provided in early 2024. The grant will be available to up to 143,000 businesses operating from a rateable premises, or 95% of all commercially trading business premises nationwide.
An important consideration facing many firms relates to those tax debts warehoused during the COVID-19 pandemic. The Minister for Finance has announced that Government will make changes to the Tax Debt Warehousing scheme including a reduction in the interest rate applying to warehoused tax debt to 0%.
Over the last number of years this Government has also introduced or progressed several initiatives to improve working conditions in Ireland, including progress towards a living wage, an auto-enrolment retirement savings scheme, the right to request remote work, sick pay legislation and improvements to parent’s leave and parent’s benefit.
An assessment is currently being undertaken by my Department and the Department of Social Protection which will examine the cumulative impact of these measures on enterprise. This assessment has been informed by engagement between officials from my Department and both employer and employee representatives. This report is currently being finalised and will inform public policy in this area.
18. Deputy Martin Browne asked the Minister for Enterprise, Trade and Employment for an update on his engagement with the hospitality sector in 2024. [5673/24]
View answer53. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment for an update on his engagement with the hospitality sector in 2024. [5570/24]
View answer67. Deputy Pauline Tully asked the Minister for Enterprise, Trade and Employment for an update on his engagement with the hospitality sector in 2024; and if he will make a statement on the matter. [5759/24]
View answerI propose to take Questions Nos. 18, 53 and 67 together.
The Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Ms Catherine Martin T.D., and I co-chair the Hospitality and Tourism Forum.
Membership of the Forum is made up of representatives from across the Hospitality and Tourism Sector. It provides a platform for a structured engagement between these sectors and relevant Government Departments, for key issues of relevance to the sectors to be discussed with a view to identifying practical actions which could be taken by government (national or local), or by industry itself, to support the sectors.
The Forum aims to meet quarterly. The last meeting took place on 24 January 2024.
Last month, I also met with representatives from the Restaurant Association of Ireland.
At both meetings, many issues affecting the sector were discussed for the hospitality sector including VAT rates, insurance costs, the increased costs in energy, and the new employment rights legislation and associated costs.
The Government are acutely aware that many businesses in all sectors are concerned about these issues.
With that in mind, as part of the Budget 2024 package, and in order to help businesses with their increasing overheads, the Government announced the introduction of the Increased Cost of Business (ICOB) grant, which is intended to aid firms with the challenge posed by increased costs. Officials in my Department are currently working with the Local Authorities on the administration of the ICOB grant to ensure that support can be provided in early 2024.
It is recognised that elements of the hospitality sector are an important part of the wider tourism ecosystem, hence the ongoing engagement of my Department and Minister Martin’s Department through the Hospitality and Tourism Forum.
Fáilte Ireland delivers varied supports to business which are set out on their website www.failteireland.ie. In particular, Fáilte Ireland continues to focus on the development and enhancement of the food experience for the wider domestic and international visitor audience. As such, food is incorporated into Fáilte Ireland’s overall Corporate Strategy and its Regional Tourism Development Strategies.
Failte Ireland is also engaged in ongoing work involving the outdoor dining capital funding programme, the Digital That Delivers Programme, and involvement with the Nighttime Economy Taskforce.
The Local Enterprise Offices (LEOs), also play an extremely important role as part of a supportive ecosystem, providing their services direct to small businesses and promoting entrepreneurship within towns and communities across the country. They act as a ‘first stop shop’ providing expert advice and guidance, financial assistance, and offer a ‘signposting’ service for all government supports available to business owners throughout the country.
The LEOs provide a suite of productivity and competitiveness supports to small businesses in the areas of Lean, Green and Digital. These include the Trading Online Voucher, Green for Business, and the Energy Efficiency Grant. The ‘All in a Day’s Work’ national campaign emphasises the benefits of these supports for businesses; namely saving them time, energy and money.
My Department, in collaboration with the Department of Social Protection, is also assessing the cumulative impact of forthcoming changes to working conditions. The report is due to be finalised in early 2024 and will inform public policy in this area.
Earlier this week, Minister for Finance, Michael McGrath, announced significant changes to the Tax Debt Warehousing scheme with a reduction in the interest rate applying to warehoused tax debt to 0%. In addition, Revenue has confirmed that, where a business has already paid warehoused debt, which was subject to interest at 3%, it will get a refund of that interest. This will ensure that all taxpayers are treated fairly.
These changes to the scheme have been agreed in recognition of the unique nature of the warehoused debt and in light of the Government intention to support otherwise viable businesses to continue to trade while having the opportunity to reduce their warehoused liabilities in a structured and manageable way.
19. Deputy Darren O'Rourke asked the Minister for Enterprise, Trade and Employment the delayed actions that his Department is leading on as part of the climate action plan 2023; the proportion that are complete and the proportion that are delayed; if any are still outstanding from the 2021 climate action plan; the expected timeline for delivery for all delayed actions; and if he will make a statement on the matter. [5668/24]
View answerActions committed to under the Climate Action Plan 2023 are reported on through progress reports prepared by the Department of the Taoiseach and published quarterly. In 2023, my Department reported on 10 actions in total, and provided final updates on the delivery status of these actions for review in early January.
Pending final confirmation from the Department of the Taoiseach, it is anticipated that the delivery rate of CAP23 commitments for my Department will stand at approximately 50%, with three ‘high-impact’ actions delayed.
I am satisfied that the majority of these outstanding actions are subject to short-term issues and they will not impact on our ability to achieve my Department’s emissions reduction targets.
The delayed high impact actions include the publication of two roadmaps – these are the roadmap for the decarbonisation of industrial heat in manufacturing and the roadmap on the retrofit of commercial buildings.
Drafts of both roadmaps have been produced and are being considered by the relevant Working Groups under the Heat and Built Environment Taskforce. They are expected to be presented to the Taskforce and published in Q1.
A further action, to identify actions to accelerate and drive system wide delivery of industrial heat decarbonisation, will be completed alongside the roadmap for the decarbonisation of industrial heat.
The third high impact action for delivery in Q4 was the completion of a report on ‘Reducing embodied carbon in cement and concrete through public procurement in Ireland’. Final edits are being made and it is expected that this action will also be completed in Q1.
While it is regrettable that a higher proportion of CAP23 actions were not able to be completed before the end of 2023, the four delayed actions are fully drafted, at final stages of negotiation and agreement and will be completed by the end of Q1 2024. One other delayed action assigned to the NSAI, to develop a certification scheme for energy efficient retrofit of dwellings, has been delayed until H2 2024 due to a high demand for construction products certification and an effort to focus on delivery in that area.
For actions under the Climate Action Plan 2021, my Department had a completion rate of 92%, compared to a cross-Government average of 79%. A process was undertaken to determine the future of each incomplete action. Some actions were deemed high impact enough to retain and incorporate into CAP23, while others were merged to increase their impact and included as new actions. Others they were deemed too low impact or represented business as usual for the department and therefore no longer required reporting.
