Vol. 927 No. 2
1. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation her views on whether there are sufficient supports in place to safeguard Irish jobs and exports following the recent Brexit referendum; the actions being taken to increase Irish business competitiveness with the UK; and if she will make a statement on the matter. [33222/16]
Does the Minister believe sufficient supports are in place to safeguard Irish jobs and exports following the result of the recent Brexit referendum, about which we know all too well in this House and beyond? What actions are being taken to increase the competitiveness of Irish business in the UK arising from the referendum?
I am deeply engaged with the enterprise agencies - Enterprise Ireland and IDA Ireland - to ensure sufficient supports are in place to safeguard Irish jobs and exports following the Brexit referendum. I am in ongoing communication with these agencies through my chairing of the Department of Jobs, Enterprise and Innovation's Brexit co-ordination group, which includes the chief executives of the agencies and senior officials in the Department. I have met representatives of companies and other stakeholders from throughout the country to help to inform our response.
In particular, Enterprise Ireland is working with its 1,500 clients that export to the UK to examine the individual challenges faced by companies in every county in Ireland. It is also working on a sectoral level. Enterprise Ireland is working to assist companies to maintain and increase their UK exports and to extend their international reach by reorienting towards North America, Canada, Asia and the Middle East. Enterprise Ireland is particularly working with the companies that are most exposed to the UK in areas like engineering, food, construction and timber. Enterprise Ireland is working to support companies in enhancing their competitiveness in order that Irish exports and jobs can be protected and can grow. Enterprise Ireland is assisting its clients to improve their processes, drive efficiencies and cost reductions and undertake research and development and innovation with a view to improving existing products and processes or developing new ones.
My Department's 2017 budget contains many measures to help Irish businesses to become more competitive and cope with the impact of Brexit. It includes an extra €52 million in capital funding to support the enterprise sector. Additional current moneys have also been secured to provide up to 50 extra staff for my Department and its enterprise agencies.
I attended yesterday's all-Ireland civic dialogue at the Royal Hospital in Kilmainham, at which many speakers echoed the sentiment that Brexit is one of the biggest threats to Irish exports and jobs since the foundation of the State. We have seen a significant weakening of sterling since the Brexit referendum. We need to do whatever we can to lessen the impact of Brexit on Irish business and to boost our competitiveness. We were told the budget would contain a significant Brexit package, but that did not happen. I will explain why.
As I have said on a number of occasions, our capital gains tax relief rate is simply not up to standard. The Irish Exporters Association has suggested that the current rate does not bring us onto the racetrack. The Dublin Chamber of Commerce has said the recent changes will do little to stem the flow of start-up businesses and companies moving to the UK from Ireland.
The Minister has indicated that on the spending side, €3 million has been allocated for additional staff. It is clear from what was said yesterday at the forum in Kilmainham and what we have been told at the hearings being conducted by the Joint Committee on Jobs, Enterprise and Innovation that there is agreement on the need to promote market diversification. Why was an expert fund not put in place in the budget to support companies in maintaining the UK export business and diversifying into new markets? I have been told by people involved in business that no fund is available to help them to achieve diversification, which is the word on everybody's lips. Will the Minister outline the total number of new staff who will be employed in the agencies in 2017 as a result of Brexit?
The €3 million mentioned by the Deputy will be used by the enterprise agencies to employ approximately 50 people. It is not the case that this is the only money we have secured. As I said in my answer, we got an extra 10% in the budget. That money will be of assistance in the context of Brexit. I am fully aware of the challenges for the Irish small and medium-sized enterprise sector in regard to the euro-sterling currency fluctuations. As Minister, I have responsibility for supporting small and medium-sized enterprises throughout the country. That is why I am making sure I am armed with the detail of how Brexit will affect each sector and each type of company, including small and medium-sized enterprises, microenterprises and large companies, before I finalise my proposals or make any announcements about specific funds or other measures.
I would like to tie the Minister down on what she has said about what she intends to do before she makes any specific announcements on funding. I asked specifically about the establishment of an exporters' fund. Will the Minister give us some detail about what will be done to help exporters? I emphasise that Irish competitiveness is under huge pressure. I am sure the Minister will mention some positive markers on competitiveness. I remind the House that our position in the World Bank's competitiveness ranking has dropped. We are now in 18th place out of 189 economies, having been much higher at one point. As I said when I spoke on the Companies (Accounting) Bill 2016, the Taoiseach wanted Ireland to be the best small country in the world in which to do business by 2016. It is clear that we are missing that target. There is silence on competitiveness. Will the Minister outline what exactly she will do to create a fund? How much will be provided in that fund? When will we see it? Where and when can companies make applications under such a fund?
When I was in the UK yesterday, I met a number of people who are negotiating the Brexit deal for the UK. I wish to tell the Deputy that they do not know what they are doing and they do not know when they will be invoking Article 50. That is the first thing. It would be very irresponsible of me to give the Deputy chapter and verse about some fund today when it might be out of date tomorrow. However, I assure him that my Department is scoping out various possible responses to the short-term currency challenge and I expect to be in a position to announce more detail to help companies based on their actual needs. However, any new proposals will be based on evidence.
I recently met representatives of the Irish Small and Medium Enterprises Association, the Small Firms Association, the Irish Exporters Association and the Irish Business and Employers Confederation to scope out the issues they believe their companies are facing. They have agreed to help the Department of Jobs, Enterprise and Innovation to get a clear picture of the various things the companies are asking for. Some companies are asking for low-cost loans and others are looking for export guarantees. We will have to scope out exactly what they want and make sure we provide a proper, tailor-made fund that will respond to the needs of exporters.
2. Deputy Maurice Quinlivan asked the Minister for Jobs, Enterprise and Innovation her views on the relevance of the eight regional action plans for jobs in view of Brexit; the specific details of meetings her Department has held with the Department of Housing, Planning, Community and Local Government concerning the former's input into the national spatial strategy; and if she will make a statement on the matter. [33200/16]
This question relates to whether the regional action plans are fit for purpose in light of Brexit. Will the Minister give me details of any meetings that have taken place between officials in her Department and their counterparts in the Department of Housing, Planning, Community and Local Government concerning the national planning framework?
I thank Deputy Quinlivan for his question. Sustaining and increasing employment and economic opportunity in the regions remains a key priority, especially in light of the Brexit vote.
As Minister with responsibility for jobs and enterprise, I wish to assure Deputy Quinlivan that I have placed Brexit at the top of the agenda for my Department and the agenda of the enterprise development agencies. We have yet to see the full implications of Brexit on the Irish economy. Clearly, it will present opportunities and challenges. Of particular concern to me at present are the immediate challenges facing small and medium-sized enterprises due to a weakened sterling. Many of the sectors particularly exposed, including food, construction, retail, tourism and traditional manufacturing, have deep roots throughout the regions and they provide significant employment in rural and regional Ireland.
The implications of the Brexit vote on Irish enterprises will continue to be an important item on the agenda of meetings of the regional implementation committees charged with overseeing and monitoring the regional plans. I have attended many regional implementation meetings. As the situation evolves, we will monitor the potential and real impacts of Brexit on each region.
The value of the regional plans stems from the involvement of all the key stakeholders. The plans mean that, more than ever, we have a finger on the pulse of each region. I am working across the Government to ensure that, as Minister for Jobs, Enterprise and Innovation, any actions taken in response to Brexit are tailored, targeted and evidence-based.
I recently secured an increase in the Department's current and capital budgets for 2017. This increase will be used to fund additional measures to support companies impacted by Brexit.
The Minister says Brexit is top of her agenda but then goes on to say that Article 50 has not been invoked yet and that she is waiting to see what will happen.
This morning, an article in a newspaper includes a quote from a mushroom farmer from Tipperary, Lavinia Walsh. Basically, she says the impact has developed into a catastrophe for them. She has survived thus far but four of her neighbours, who are also mushroom farmers, have not survived. This must be the first priority.
I am concerned about the response of the Department of Jobs, Enterprise and Innovation to Brexit to date. In the weeks and months since the referendum, the Department has had ample time and opportunity to co-ordinate a strategic response. To date, I do not see evidence of this.
The Irish economy, North and South, is facing into what is perhaps the most tumultuous and challenging period since the foundation of the State. Frankly, the best the Minister has to offer, I believe, are her aid plans, which are probably out of date now because of Brexit. The Minister has referred to how €3 million has been allocated. That is peanuts in the context of what we are dealing with. I am keen to hear the Minister's response.
Deputy Quinlivan keeps talking about €3 million. Actually, the relevant figures are €52 million and €3 million. The €3 million figure is a current allocation and the €52 million figure is a capital allocation. The allocations are to help IDA Ireland, Enterprise Ireland and Science Foundation Ireland to deal with Brexit. I am keen to clear that up.
Is that all there is to deal with Brexit?
Deputy, you will have another opportunity.
The allocation is for IDA Ireland, Enterprise Ireland and Science Foundation Ireland to help them to deal with Brexit and save jobs in this country as well as to explore opportunities that are available.
Deputy Quinlivan asked about meetings with the Department of Housing, Planning, Community and Local Government. My Department is represented on the national planning framework steering committee and has attended the three meetings held to date. The Department has also contributed written submissions to inform ongoing deliberations. My Department participates on the econometric and demographic technical working group. I participated in a discussion of the national planning framework with the Minister for Housing, Planning, Community and Local Government and his officials at the Cabinet sub-committee for infrastructure.
Have I another 15 seconds?
You are over by 20 seconds. You might have an opportunity in the next minute.
Basically, there is a real possibility that North-South trade could be seriously damaged as a result of Brexit. The potential for the negative impacts of a hard Brexit on cross-border trade and business development has been highlighted by ESRI, IBEC, ISME, Teagasc, Irish Congress of Trade Unions and others.
I am dissatisfied with the Minister's response. We are heading into a crisis that is characterised by great uncertainty. Such a crisis requires an appropriate response. Thus far, I do not believe the Minister has been forthcoming in this regard.
The Minister has referred to additional moneys but she has not actually told us what money will specifically target Brexit. Brexit is causing the loss of jobs in this country as we speak. People are telling us that they have lost their jobs.
InterTradeIreland is desperately in need of additional funding, but no additional allocation has been made to the company under budget 2017. The Minister should be going to Cabinet and specifically asking for InterTradeIreland to be given additional funding. Before the Minister retorts with the line that the people in the North have not contributed their part, it is a fact that the Government can give whatever it wants to InterTradeIreland as long as it is spent in this State. The Minister might come back to me on that point.
I am not going to repeat it. The relevant figures are €3 million and €52 million to help towards Brexit and to help the enterprise companies. This is the first time that we have secured a 10% increase in the budget in the past 15 years. I cannot spell it out in a stronger way.
Deputy Quinlivan referred to InterTradeIreland. Obviously, the company has a major role in North-South relations. I absolutely take on board the point that North-South trade and business could be impacted in many ways by the UK withdrawal from the EU.
Already, InterTradeIreland has published a fact sheet for companies providing helpful information on this issue. InterTradeIreland will review and adjust its supports, if necessary. A series of information sessions for companies are being organised by InterTradeIreland at present. It will also monitor business needs and challenges through the business monitor survey process. In the first half of 2016, InterTradeIreland had the following activity highlights: the job creation impact figure was 739, with a full-year target of 1,100; the first-time innovative companies figure was 32, from a full-year target of 56; and the figure for first-time exporter companies was 40 from a full-year target of 50.
3. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation to outline her views on the current regional spread of jobs and IDA Ireland site visits; and if she will make a statement on the matter. [33223/16]
I call on the Minister to comment on the current regional spread of jobs and IDA Ireland site visits given that the county-by-county analysis tells a completely different story.
I have a question before me which was sent in formally by Deputy Niall Collins and I will answer it. Regional development is a priority of mine and a priority of this Government. Growing and sustaining foreign direct investment outside the country's main urban areas is a key part of our efforts in this context. To achieve this, we are continuing to make the case to prospective investors that regional Ireland can be and is a suitable location for their businesses.
IDA Ireland fully understands and is committed to growing foreign direct investment in every county. This is demonstrated by the agency strategy for 2015-19. Under the strategy, an increase in investment of at least 30%-40% in each region outside Dublin is targeted.
Real progress is already being made towards these goals. This is partly reflected by the growing number of site visits by investors to regional locations. In 2015, 57% of site visits were to locations outside Dublin, up from 43% in 2014. The figures for 2016 thus far show that the trend is continuing, with 58% of visits conducted this year outside Dublin.
We should remember, however, that a company's ultimate choice of location can be influenced by a number of factors. These include talent, proximity to transport hubs and the supply of suitable property. IDA Ireland actively tries to encourage client companies to locate outside Dublin, but the final decision of where to situate always rests with the company itself.
Not even the Minister could deny that there is a two-tier recovery afoot. The quarterly national household survey shows that 63% of all employment gains in the 12 months to the end of the second quarter of 2016 were in the greater Dublin area. A breakdown of the figures shows that in the midland region there was a gain of 1.07%, in the west, 3.02%, in the south west, 4.27%, and in the mid west, 9.3%. They are quite small. In addition, 43% of all Industrial Development Authority, IDA Ireland, site visits in the first six months of 2016 were in the capital. Ten counties had two or fewer site visits in the first six months of this year whereas Dublin had 145 site visits. How does the Minister intend to achieve the 2020 regional jobs target of 135,000 new jobs outside the greater Dublin area?
I hear the Deputy very clearly but it is not all about site visits. Many of the foreign direct investment, FDI, companies already here decide themselves, with the help and support of the IDA, to increase the workforce and there will not be a site visit. I made the point very strongly that the FDI companies decide where they want to go. I was on a trade mission recently in the west coast of the United States and it was very obvious when I visited companies with the IDA that the IDA’s intention is to win trade, to land the company in Ireland. When it gets buy-in from the company it will talk to the company which will be informed of the supports available. There are many more supports available in the regions and in rural Ireland than in Dublin but the company ultimately decides.
Site visits are not everything but they are a big part of the process. Competitiveness and connectivity are also a big part of the location. The Minister has been to Limerick on several occasions recently and she will be welcome to come again and we welcome the announcements made.
What has the Minister done to prioritise the building of the motorway between the mid-west capital, Limerick, and Cork? It is not a priority in the Government’s capital programme but it is badly needed. The main connection between the second largest city, Cork and the third largest, Limerick puts the mid-west region at a severe disadvantage. Has the Minister spoken to the Minister for Transport, Tourism and Sport about the connection between Limerick and the port at Rosslare Harbour, the N24? Why is that not a Government priority? The proceeds from the State’s sale of its shareholding in Aer Lingus were put into the connectivity fund under the remit of the Department of Finance. There have been only two applications to it which have been grant-aided. Why has the Minister’s Department not been pushing the agencies in Limerick and around the country to avail of the €335 million in the connectivity fund, to boost connectivity and help competitiveness of the regions, particularly the mid west, the M20 Cork to Limerick road and the N24 Limerick to Waterford road?
There were 40 site visits to Limerick by 40 different companies. That does not take into account the companies that are there already that might be thinking of expanding. To date, in 2016 up to the end of the third quarter, there have been 39 site visits. That is a huge improvement. Deputy Quinlivan, who is in the Chamber, has attended many of the job announcements there. Limerick is a very favoured area and a favoured city.
That is good to hear.
Companies talk to us about the airport, the Limerick Institute of Technology, the University of Limerick and the wonderful talent pool in the area. I have spoken to the Minister for Transport, Tourism and Sport about those roads. I will check out the question of the Aer Lingus connectivity fund. I assure the Deputy Limerick is doing pretty well and there seem to be more job announcements in the pipeline. The Deputy can look forward to that towards the end of this year.
5. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the progress of her Department in Brexit preparations to ensure that Irish jobs are protected, promoted and preserved; the additional funding which is being allocated to agencies under the remit of her Department for this purpose in 2017; and if she will make a statement on the matter. [33151/16]
The news from the High Court in London this morning, if it is upheld by the Supreme Court, may give the Minister and this House a bit more time to prepare for the enormous challenge of Brexit. I followed the Minister’s earlier response to Deputy Collins and I wonder if the extra €52 million on the capital side, and €3 million on the current side, and the additional 50 posts, are enough across the many agencies the Minister supervises to address this huge challenge, one of the biggest we have faced since 1922.
I am engaged strongly with Enterprise Ireland, EI, and IDA Ireland to ensure that Irish jobs are protected, promoted and preserved. I am in ongoing communication with these agencies, and chair my Department’s Brexit co-ordination group which includes the chief executive officers, CEOs, of the agencies. Enterprise Ireland is working with its 1,500 clients who export to the UK studying the individual challenges faced by companies in every county in Ireland and also on a sectoral level.
From a strategic perspective Enterprise Ireland has a two pronged approach. It is working to assist companies to maintain and grow UK exports and extend their international reach, to diversify. It is also supporting companies in enhancing their competitiveness to protect and grow Irish exports and jobs. In this regard, EI is assisting clients in improving their processes to drive efficiencies and cost reductions and undertake research and development and innovation with a view to improving existing products and processes or developing new ones.
The Department has secured an additional €52 million, which is a 10% increase in capital funding for 2017, the largest increase in the past 15 years to support the enterprise sector and assist the agencies in their Brexit response, and on the current side I have secured an additional €3 million with a view to facilitating up to an additional 50 posts across my Department and the enterprise agencies.
It is good to hear that the Brexit co-ordination group is in place. How often does that meet and does the Minister intend to publish the minutes or to give us general reports? The Minister told Deputy Niall Collins that she could be making further announcements. Would we hear them before the end of the year or before the British Government triggers Article 50? Will the Minister be making further announcements of supports for our exporters and other businesses? InterTradeIreland's quarterly business monitor Q2, which the Minister has, showed that 97% of our businesses were not ready for the challenge posed by Brexit. We have seen disturbing trends in tourism even in the Dublin region as well as the threat to Border counties such as Donegal, and to the retail trade in Cavan, Monaghan and Louth. There are enormous challenges. I know the Minister met the British Secretary of State, Liam Fox yesterday. Does she intend to meet him again? The Secretary of State, David Davis, was here previously. Did the Minister talk about the common travel area and the Single Market?
I have only one minute and five questions to reply to so I will talk to the Deputy later. First, I met Minister Fox and Minister Davis, and I intend to meet them again. I invited them to Ireland and they cordially accepted.
The Deputy also asked about job announcements. That is up to the companies. They decide that in their boardrooms outside this country. IDA Ireland would be very respectful of the companies' wishes.
The Deputy was making statements rather than asking questions but he asked about-----
I asked about the committee.
We meet once a fortnight, the minutes of the meeting are taken and we work on the action points that come out of the meeting. We are coming close to a point where we will be able to discuss exactly what we need to do. In terms of the targeted response, Enterprise Ireland, together with the other stakeholders I mentioned, namely, the Small Firms Association and the Irish Exporters Association, will work with their client companies to find out exactly what they need.
Was the Minister taken aback by the comments made by the Northern Ireland First Minister, Arlene Foster, when she seemed to complain that agencies under the aegis of her Department, such as IDA Ireland and so on, are poaching jobs from the North? Why would Ms Foster say that? Given the special status of Northern Ireland and its critical importance to this country, we have to ensure that the position of its economy is protected in the Brexit negotiations. Will the Minister comment on that? In the first debate we had on that issue, I called for the appointment of a Brexit Minister who would have responsibility for all the relevant issues across Government. The Minister has a plethora of critical organisations in job creation, job protection and so on but I refer also to the Departments of Agriculture, Food and the Marine, Communications, Climate Action and Environment and a range of others. We spoke recently about what will happen in terms of the Common Fisheries Policy. We always believed we got a terrible deal in that area in 1973. What is the Minister's opinion? Does she believe we should have a Brexit Minister? She is handling a good deal of it - and I commend her on that - but will that be necessary when Article 50 is triggered?
IDA Ireland co-operates with Invest Northern Ireland, INI - the equivalent body in Northern Ireland - in the context of regional and all-island economic development, recognising appropriate opportunities to pursue mutually beneficial cross-Border co-operation. Where appropriate, IDA Ireland and INI co-operate on company visits where both jurisdictions are being considered by foreign companies. These visits are usually initiated by IDA Ireland's network of overseas offices. However, the Deputy should be aware that IDA Ireland competes with INI for inward investment in certain areas.
The economies of Northern Ireland and the Republic of Ireland have highly educated workforces. To that end, the skills pools available north and south of the Border are presented to potential investors as a key competitive advantage for investing in the Border regions on the island of Ireland. For example, PayPal, now located in Dundalk, made the decision to invest in that location based on the pool of skilled staff it could recruit from the large catchment area on both sides of the Border.
