Louise O'Reilly
Ceist:49. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment what his Department intends to do to increase the number of Irish businesses using big data, the cloud, and AI. [23124/24]
Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions
Departmental Programmes
My question relates to the number of Irish businesses using big data. I want to ask the Minister of State about the digital intensity of Irish businesses, specifically SMEs. While I appreciate some businesses cannot be any more digitally intensified, there is scope there. We know digitisation is one of the twin challenges facing our economy now and into the future. I ask for an update on the number of businesses using big data and engaging with the cloud and artificial intelligence, and how this compares with the targets set in the harnessing digital 2030 document.
I thank the Deputy. Our Department is taking action on three fronts to increase the number of Irish businesses using big data, the cloud and AI. First, we are engaging with experts. I chair the newly refreshed enterprise digital advisory forum, which comprises industry and expert representatives and provides valuable advice and perspectives on how we can best help businesses to digitalise and adopt advanced digital tools, such as AI, data analytics and the cloud.
Second is access to funding and support. Funding for digitalisation is available through the €58 million digital transition fund. To date, almost 300 companies have been approved under this fund. Other digitalisation support, including advice, consultancy and grants, is available through local enterprise offices and the SME support package, which was launched last week. That package expanded eligibility for the trading online voucher to all sectors of up to 50 employees. We also expanded the eligible expenditure to €50,000.
I draw particular attention to CeADAR, Ireland's Centre for Applied AI, which was established by Government to act as the bridge between the worlds of applied research in AI and data and commercial deployment by business. CeADAR is playing a crucial role in helping businesses to adapt AI. We have also established four European digital innovation hubs to help businesses and SMEs, in particular, to adapt digital tools for their use. The hubs are one-stop shops, with research organisations at the core in turn providing access to technical expertise and facilities for experimentation, as well as innovation services and the training and skills development necessary for the successful digital transformation of each business.
We will launch a new digital portal, grow digital, shortly. It will help every business, small, medium and large, to self-assess their digital readiness. It will identify recommendations and supports to facilitate the next step towards their journey to digital transformation.
I thank the Minister of State for the response. In his follow-up response, he might address how we compare with the targets set in harnessing digital 2030. The four Ds of demographics, decarbonisation, digitalisation and de-globalisation are key trends likely to transform our economy over the next decade. Increasing digitisation is foundational in terms of putting the economy on the front foot for the coming decades. As the Minister of State said, this is about future-proofing. Investing in digitisation is key to building a robust economy that is high wage, high growth and high productivity. The State has to accelerate and enhance digital adoption to ensure Ireland becomes an international economic digital leader. To do that, it is not enough to set targets. The Minister of State outlined some of the steps that have been taken. The targets need to be monitored and we need progress reports on how those targets are being met. If they are not being met, we perhaps an need explanation as to why or how the Minister of State intends to meet them into the future.
I agree with the Deputy. We tend to monitor them. We work with the EU so that there is independent monitoring. We are one of the most advanced EU member states in that context. The EU digital economic and society index, known as DESI, published as part of the report on the digital decade, shows that Ireland has a leading position in the EU in terms of SMEs, with a basic level of digital intensity at 85% compared with our target of 90%.
Regarding the digitisation of businesses, 22.7% of businesses with more than ten employees are using big data, which places us fifth in the EU. The EU average is 14.2%. A total of 47.4% of businesses are using cloud, which puts us at eighth in the EU. The EU average is 34%. A total of 7.9% are using AI, which puts us at 13th in the EU and right on the EU average.
I am not happy with any of those figures. I want to see them grow. For them to grow, we have to grow confidence in businesses to adopt the technology. That is why we are enabling the digital portal which will allow each business to find its own space. The work of CeADAR and the European digital innovation hubs will perhaps simplify the journey and put the language involved in this journey in more accessible terms.
It is a brave Minister who would mention the portal in the current climate, so fair play to you. The Minister referenced 22.7% of business using big data, which is a small figure. I appreciate he said the figures are not where he would like them to be. Of the 75% not using big data, a substantial portion could and should be using it. I would like a bigger focus on encouraging that.
We must invest to grow indigenous digital enterprises and increase the attractiveness of Ireland as a location for leading digital enterprises. This has to be the focus and a growth area for the future. There is no reason we cannot become an international economic leader in cutting-edge digital technologies. We already have a significant strategic advantage due to the network of multinational and indigenous tech companies, as well as third-level research institutions focused on digital tech. With smart and strategic investment, Ireland can leverage these advantages and ensure we become a world leading digital society and economy. That is what the ambition needs to be.
Absolutely, but we already are a world leading digital economy. I want us to stay there and grow that in our indigenous enterprise space. We are there because of policy decisions taken by successive governments to invest in this space. We want to grow it by expanding the confidence of businesses to take the journey. That is why we expanded the trading online voucher and are investing in the portal so that businesses can compare themselves safely to where they need to be on their journey. That is why we are working through the LEO structure throughout the country. Confident and trusted sources will bring businesses on that journey. The most important thing for any business that needs to digitalise is that it has confidence and trust in the person guiding it on that journey. That is why we are putting investment of €58 million into the digital fund.
Small and Medium Enterprises
Matt Shanahan
Ceist:50. Deputy Matt Shanahan asked the Minister for Enterprise, Trade and Employment the main supports to the SME sector his Department is proposing, including additions to the increased cost of business scheme; and if he will make a statement on the matter. [23223/24]
It is refreshing to see three Ministers from the Department taking questions. It shows the importance of the Department. My question relates to the main supports for the SME sector the Department is proposing, including additions to the increased cost of business scheme.
I thank Deputy Shanahan for posing this important question. The Government has adopted a proactive approach in supporting the Irish SME sector across multiple crises over recent years. Over the two-year period to budget 2024, a total of €12 billion was provided in cost-of-living and doing business supports, comprising a mix of permanent and one-off measures, most significantly the temporary emergency support scheme.
Budget 2024 also continued several measures which will support businesses, like the €257 million in support announced through the increased cost of business grant; the 9% VAT reduction for gas and electricity which was extended for an additional 12 months until 31 October 2024; the temporary excise rate reduction applying to auto diesel, petrol and marked gas oil which was extended until 31 March 2024; and an increase in VAT registration thresholds for the SME sector.
I recognise that costs are impacting firms and this motivated the recent introduction of a range of additional measures aimed at reducing costs for small and medium-sized businesses. These include ensuring the employer PRSI threshold is explicitly considered as part of the Low Pay Commission deliberations and is reviewed on each occasion that the minimum wage is increased; increasing the employer PRSI threshold from €441 to €496 with effect from 1 October 2024; reopening the increased cost of business scheme for another 14 days and launching a second phase of the scheme targeted at businesses in the retail and hospitality sector; doubling the innovation grant voucher from €5,000 to €10,000; increasing the maximum amount available under the energy efficiency grant scheme to €10,000 and reducing the business contribution rate from 50% to 25%; widening the eligibility for the trading online voucher and doubling the grant to €5,000; increasing the lending limit for Microfinance Ireland loans to €50,000 from €25,000; widening the eligibility for the digital for business consultancy scheme; launching a new Ireland’s best entrepreneur programme to encourage entrepreneurship; and launching a new online national enterprise hub for SMEs to access information on the wide range of Government supports.
I welcome the extension of the increased cost of business, ICOB, scheme and the changes to the PRSI and VAT thresholds, which is something I and my colleagues in the Regional Group brought to Government some weeks back in a Private Member's motion. I wish to ask about the participation rate. How many businesses are accessing ICOB? What consideration has been given to those businesses that are not paying rates because their rates are bundled up with their rent, specifically those whose landlords cannot apply either, which means they cannot access to the scheme? How are those businesses to be supported?
Has the Government looked at other businesses that are very exposed because they are in labour-intensive sectors? These businesses face increases in associated employment costs, particularly in the areas of childcare, grooming, leisure and homes industries. Some of these businesses are really suffering, and while the ICOB scheme and some of the other initiatives the Minister announced are welcome, they are not going to fundamentally change the cost perspective for these businesses.
When the scheme closed a week ago, we had about 76,000 registrations. That was roughly 60% of all businesses that qualified for the increased cost of business grant. A decision was then taken to open the scheme for a further two weeks and to run a very strong and robust advertising campaign, which we hope will encourage additional uptake in the run down to next Wednesday. I appeal to businesses to apply because this money is there for them.
Regarding businesses that do not qualify because they are over the €30,000 threshold, there are other supports contained in my package, working with Ministers of State, Deputies Calleary and Higgins, that will meet their requirements. These include the PRSI change Deputy Shanahan referenced and the supports for energy efficiency, which can reduce their monthly bills by more than €1,000 with simple measures like changing their LED lighting and refrigeration and helping with other capital costs, which will assist businesses into the future. This is a strong package, working under the budgetary framework. I have met with a number of business groups and am working with them to develop a very strong package in the next budget.
As the Minister knows, some of the burden in costs is due to the environment of increased costs inflation, but a large part has been brought about by the progressive costs introduced by the Government. I have advocated for quite some time to Deputy Varadkar, when he was Taoiseach, and to Deputy Coveney, when he was Minister, and now I am saying it to Deputy Burke as Minister, as I have said it to the Minister of State, Deputy Calleary, about the importance of having a proper consultation on the labour employer economic forum, LEEF. I ask the Minister to assist in bringing ISME onto the labour employer economic forum so that we have a proper discussion on costs and we do not go off on a solo run, as we did the last time, in terms of adding costs of employment onto businesses. The SME sector has to be considered in those negotiations.
The most obvious thing in terms of the food and hospitality sector is a return to the 9% VAT rate. It is absolutely critical in that sector. The Minister has outlined that some costs are going to be deferred for a number of months, such as excise and so on, but does he have any concerns about the four months of declining consumer confidence? This is being seen in footfall, especially in the food and hospitality sector and most notably in small café sector. The Minister is going to have to look again and I ask him again for a return to the 9% VAT rate.
Again, I thank the Deputy for his question. We have worked with all sectors. I met ISME yesterday, along with another number of business sectoral groups. We are working with them to progressively keep improving the business environment in which they operate. I point out that inflation has halved since November 2022. That demonstrates that Government policies are working. We really did tackle it in the best way we could by mitigating the pressure on vulnerable people and by introducing strong business packages of €12 billion over the previous two budgets. We will continue to work closely with businesses. I also point out that other robust evidence we have seen is that we have approximately 2.8 million people employed and that, for every ten businesses opening in our economy, only one is closing. It is very important to look at the evidence.
However, I am absolutely aware there are pressure points. We are very much aware that 60% of our national minimum wage workers rely on the retail and hospitality sectors for their employment. We will be working closely with those sectors in the horizon up to the next budget. That will give us a chance, as three Ministers, to put down a strong mark that we are really listening to businesses. We have done it with the package we introduced in the past week and I am happy to say it has received a good welcome from businesses, notwithstanding it is modest, and we have to be honest about that. It shows, however, that we as a Government are listening and are doing our very best to support businesses at a time when consumer and discretionary incomes are under pressure, and we accept that.
Employment Rights
Louise O'Reilly
Ceist:51. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment when he will have conducted his review of the ESRI research on the impact of statutory sick leave; the reasons he has taken this approach; and the reason he is deviating from the Government's initial timeline. [23125/24]
My question relates to the review of the ESRI research into the impact of statutory sick leave. I want to understand why the Government is taking its current approach and why it is deviating from its own initial timeline. When will the review be concluded?
As the Deputy is aware, the Sick Leave Act 2022 introduced employer-paid, medically certified, statutory sick leave for the first time in Ireland. From 1 January 2023, the initial statutory entitlement was up to thee days' sick leave, which increased to five days on 1 January 2024.
As the Deputy will be aware, statutory sick leave, and its phased roll-out, was designed in consultation with the Minister for Social Protection and the social partners. A ministerial decision will be required by the end of this year on the third phase of this plan, including whether to increase the entitlement to seven days next year. To make this decision and in line with section 6 of the Sick Leave Act, the Minister must have regard to several key factors, including:
the state of the economy generally, the business environment and national competitiveness ... the state of society generally, the public interest and employee well-being ... the potential impact [of] ... making an order [to vary the number of days] ... data on earnings and labour costs as published by the ... [CSO] ... the views of [employee and] employer representative bodies ... [and any] other matters ... consider[ed] relevant.
I am aware that members of the business community have raised concerns about the overall impact of increased labour regulation on the cost of doing business. Therefore, to consider the impact of any potential further increases to sick leave, my departmental officials are currently exploring with the Economic and Social Research Institute, ESRI, the possibility of capturing more detail on the impact of the changes to statutory sick leave, which, I understand, could include further analysis of existing CSO data sets, as well as potentially gathering new data. As this work is at an early stage, it would not be appropriate to speculate on potential outcomes at this point. However, it is important to note that a decision on this will be required by the end of the year.
Is the Minister of State saying the report will be published before the end of the year? Will we have a chance to debate it here on the floor of the Dáil? I hope we will and I can tell the Minister of State that I will definitely be looking for that debate if it is not offered by the Government because it is important. I saw the Minister of State's little video. I do not follow her party on social media but it was sent to me by several workers who are very concerned because they see what the Government is doing, which is pitting workers against business. It is a fairly brazen and blatant attempt to do so. I saw her colleague write "Stick Sick Pay" onto her little flip chart and then say that some measures would have to be paused.
Just so that the Minister of State knows, workers got that message. They see what she is doing; I see it as well. What the Minister of State can do is help businesses and support workers at the same time. It is entirely possible to do that.
We absolutely recognise that there is a cost of doing business crisis, but that is not the fault of workers, many of whom are on very low wages. The Government's sick pay scheme was already structured in a way that made it very difficult and tough for people to access it as they have to have a doctor's certificate, which will cost people €65 to €70, which is a phenomenal amount of money if you are a low-income worker. Will the Minister of State give me something about the timeline and confirmation that we will have a chance to debate that report on the floor of the Dáil?
I thank the Deputy. Her suggestion of supporting workers and businesses at the same time is actually something we are already doing in this Government. Only last week, the Minister, Peter Burke, and our team announced additional measures to support businesses, and under this Government, we placed significant emphasis on workers' rights. We put sick pay on a statutory footing for the first time ever. We substantially increased the national minimum wage in January. We introduced the right to request to work from home, the right to disconnect and legislation on tips and we have brought in record investment when it comes to supporting workers. Last week, as I said, the Minister, Peter Burke, brought in additional supports for businesses. That is exactly what the Government wants to do. We want to support both businesses and workers. In the past two years in particular, the Government has been highly productive and proactive when it comes to enhancing employment rights, offering additional protections, creating better employment conditions and continuing to foster entrepreneurship.
What it looks like to me is that the Government is punishing workers to compensate for another one of its failed business support schemes. When the ICOB scheme first closed, less than half of qualifying businesses had applied. I appreciate that figure is slightly higher now, but as of last Wednesday, only 10.7 % of applicants have had grant money paid to them. This is a shocking situation. The scheme was announced six months ago, so a little bit more should have been paid out. If the Government is serious about doing both, and the Minister of State says it is, that means delivering for businesses as well as not threatening to punish workers.
Sick pay is a very important instrument of public health. We saw this during the pandemic. There was broad agreement that sick pay during a pandemic, or indeed outside that time, is a very important instrument of public health and is very important for workers, especially those on low incomes. I will say again, because nothing in the Minister of State's answer convinced me otherwise, that the Government is trying to pit workers against small businesses and it is disgraceful.
Absolutely not. We are supporting both workers and businesses. We have a legal requirement to have regard to the potential impact of making an order to vary the number of sick days. For that reason, the Minister, Peter Burke, the Minister of State, Dara Calleary, and I have asked the ESRI to provide data so we can make an evidence-based, informed decision because that is what responsible decision-making looks like.
We know businesses are struggling and that is why last week we announced a new package of measures. Grants are being paid out, and they are being paid out even today as we sit here. As I already outlined, we have invested hugely in workers' rights, especially in the past two years, by introducing statutory sick pay, increasing the national minimum wage and introducing the right to request to work from home, which is only possible because of the broadband plan Sinn Féin voted against, and the right to disconnect. We have invested hugely in employers because we know they are the people who provide jobs for workers and we need workers to have good, fair, transparent working conditions. That is what we are delivering.
Business Supports
Mattie McGrath
Ceist:53. Deputy Mattie McGrath asked the Minister for Enterprise, Trade and Employment if he will reconsider the qualifying criteria of the ICOB grant to allow tenants qualify as it is tenants who are struggling with the increased cost of business; and if he will make a statement on the matter. [23168/24]
I thank Deputy Verona Murphy for allowing me to go first as I have a Business Committee meeting. I congratulate the Minister and Minister of State on their new roles.
I appeal to the Minister to re-examine the ICOB supports. It is a good scheme. Council officials and everyone worked hard on it, but it disqualifies people who rent a business premises. The owner pays the rates and therefore the businesspeople operating their businesses from there cannot apply to the scheme. It needs to be tweaked badly. Will the Minister please elaborate?
As the Deputy will be aware, I announced the reopening of the ICOB grant scheme from 15 May to 29 May. This is to ensure those business owners who missed the deadline can now register. They should do so without delay, and the sooner they register, the sooner the local authority can verify the information and make a payment to the businesses. I have also made a change to the scheme that allows for a second payment to be made to businesses in the hospitality and retail sectors or a double payment for businesses in those sectors that are now registering.
An important aspect of the increased cost of business grant scheme has been to directly involve the local authorities in the authorisation and payment processes, as they are closest to the commercial life in their cities and counties and work in the provision of supports to smaller enterprises via the local enterprise offices. This is the one reason eligibility is, in part, determined by the rates system, which is a good proxy for determining the scale and size of a business.
Businesses that are tenants can register as long as they are ratepayers. It has been brought to my attention that some businesses have entered into arrangements with their landlords whereby the rent payable includes an amount towards rates and their rates bill is in turn satisfied by the landlord. The legal position under section 4 of the Local Government Rates and Other Matters Act 2019 as well as the amendments introduced through the Historic and Archaeological Heritage and Miscellaneous Provisions Act 2023 is that tenants whose rent incorporates their rates obligation, which is remitted by the landlord, cannot be deemed to be ratepayers. The Deputy will appreciate that it would be inappropriate and possibly counterproductive for me to attempt to interfere with existing commercial arrangements between small businesses and their landlords in the context of the increased cost of business scheme.
The priority has been to ensure that as many businesses as possible receive the funding as quickly as possible. For those who cannot access the scheme, if there is an issue with the landlord or the way they have structured the payment of rates, there are other parts of the scheme they can access. When the scheme has concluded, we will look at what money is left over or has not been drawn down from the quarter of a billion euro. My job now is speed, to get as much money out to the SME sector as quickly as possible and not get dragged into putting additional conditions on those paying the money.
I thank the Minister for his reply and the officials in Tipperary County Council and the Department who are dealing with the scheme. The Minister gave the reasons he cannot. He wants to spend the money and get it into the pockets of businesspeople who are struggling to keep the doors open. However, there is a considerable cohort that have an arrangement to pay rates as part of their rent. I do not know how we will tweak it, but it needs to be tweaked in some way because those people are very valuable in our towns and villages where they are paying for rateable premises. They need the supports and they are not getting them. The premises owners cannot get them either because they are not operating the businesses. It needs to be tweaked. Leaving it to the leftover fund before sharing or devising some scheme is not good enough. The scheme is more than a year old. I welcome the extension to 29 May and encourage all businesses to apply or to try to in any case. However, we must sort out this anomaly. We cannot leave it to the chance that money will be left over and we might tweak it then. It has to be tweaked. As the Minister will be aware, there are numerous businesses in his constituency and mine that rent premises, operate their businesses on that basis and the owners pay the rates. We need to tweak it immediately.
We all know commercial arrangements in how businesses operate with their landlords are different from business to business. It is difficult to put conditions in place to assess every single one. The best metric I have at the moment to get money out to vulnerable businesses as quickly as possible is linked directly to their rates. If I put more conditions in place right now or try to pave the way for opening the scheme to wider priorities, it will be difficult to get the money out quickly. I will assess it when the scheme concludes. Businesses benefit from a number of the other measures we have brought in, such as the accelerated grant for capital expenditure and the changes to PRSI and Microfinance Ireland. There have been a number of changes that benefit them.
The critical point is that this scheme is not a year old. People need to realise that after a measure is announced in the budget, legislation is needed, it has to be designed and it takes time for a scheme to be operational. We have been clear with businesses. We are marketing strongly now and asking them to please register for the scheme. It is a key cash injection into their bank accounts to recognise there are increased costs to doing business. We will continue to support businesses in the next budget, which will be important to demonstrate clearly that we are listening to the SME sector and we value the employment they provide which accounts for 70% of all jobs.
I do not know if the Minister does value them. He says that, but the scheme has to be tweaked because there is a big cohort of people in this situation.
The Minister said it takes time from an announcement made in the budget. The budget speech is hardly over before his colleagues go around the country saying this or that scheme has been announced before any legislation is in place to deal with it. The Government cannot have it every way. It cannot advertise that everything is rosy. Everything is not rosy in business. The Government has added a huge cost to that with the carbon and fuel taxes, putting back in place the rebates that had been given back, as well as the additional sick days, bank holidays and parental leave days. It is not that they are not lovely announcements but they are crippling small businesses.
The Minister knows that better than I do. He is living in the real world. I appreciate he is a man on the ground. It is fine to make these announcements on the minimum wage but it all adds to the pressure at a time of severe crisis in business. There are severe issues with costs, including injury costs, electricity and everything else. We need to be more understanding with a scheme like this. There will always be issues that need to be tweaked. There should be a review after three months, rather than waiting a year or a year and a month or two months to look back on it. We need to look at these schemes and have some sort of a review after three months to see how they are bedding in and whether there are too many roadblocks for the small businesses that need the supports.
I would robustly point out that the Government is listening to the SME sector. That is demonstrated by our warehousing of debt at 0% for those who experienced difficulties over the Covid period. Some €20 billion has been put in towards Covid and Brexit, with €12 billion put in through the past two budgets. We have halved inflation, which is a key metric of business. Energy costs are coming down substantially. We want to see that being passed on to businesses, and indeed consumers. The 9% VAT rate relating to the energy sector is hitting businesses right now and there are 15 interventions that we have done through the SME package which was brought forward and approved by the Government last week. It clearly demonstrates that this Government, through every step of uncertainty in the past four years, has been front and centre in supporting businesses. In some cases, we put them on life support and ensured they were able to survive and, when restrictions were lifted, we took out the jump leads to restart them. Our economy took off like a rocket. We have 2.8 million people employed in this economy. We are here to protect and grow that and to ensure that businesses can survive, grow and prosper into the future.
Work Permits
Verona Murphy
Ceist:52. Deputy Verona Murphy asked the Minister for Enterprise, Trade and Employment the number of employment work permits that have been applied for to date in 2024; the number of permits that have been granted; and if he will make a statement on the matter. [23462/24]
I am asking about the number of employment permits that have been applied for to date in 2024 and the number that have been granted.
Ireland operates a managed employment permits system which maximises the benefits of economic migration and minimises disruption to Ireland’s labour market. The State's employment permit system is designed to supplement Ireland's skills and labour supply over the short to medium term by allowing enterprises to recruit nationals from outside the European Economic Area, EEA, where such skills or expertise cannot be sourced from within the EEA at that time.
There has been a significant increase in demand for employment permits in recent years. Some 38,469 employment permit applications were received in 2023. That was an increase of 8% on the previous year. The employment permits section of my Department informs me that for the period from January 2024 to date in May, a total of 19,324 employment permits have been applied for and a total of 15,124 employment permits have been granted.
My Department has allocated additional resources to manage increased demand and ensure processing times remain stable. My officials have also undertaken a range of activities to improve efficiency of the permits system. Processing times for new permits are currently at 11 business days for trusted partner firms, and 21 days for others. These employment permits processing times are updated weekly and are publicly available on my Department's website.
I know the Minister of State recently had a meeting with the Irish Road Haulage Association on the new pay scales that were introduced last year for the work permits and the general work permit. As an island nation, we must understand that there are certain sectors that require a different train of thought to keep us competitive, if nothing else. We have a HGV sector that primarily deals with taking goods from Ireland to continental Europe. For that, there is a subsistence arrangement in place for drivers. We are now at a base level, with a huge increase on what it previously was, but those roles are more of a critical skills nature than general work permits. If we cannot get our produce out of the country, we cannot trade. If we cannot do so competitively, nobody will trade with us because we will be too expensive. That is something the Minister of State has to consider along with her colleagues in the Department of Enterprise, Trade and Employment. It is not just a work permit issue; it is about keeping us competitive.
In the past year, following a review, my Department has implemented changes to the critical skills occupation list, ineligible list of occupants and current salary thresholds for both the general employment permits and the critical skills employment permits. The employment permit section of my Department is also undertaking a range of activities to improve efficiency. That includes the introduction of pre-screening for the general employment permit applications across a small number of key mandatory criteria to ensure compliance with the requirements. The introduction of video guides for applicants and a new system to refund fees electronically are among the measures introduced. The Department will soon introduce a new online employment permit system with the aim of delivering further efficiencies and an improved customer experience. This will benefit hauliers and the people about whom the Deputy is speaking today.
I did meet with the Irish Road Haulage Association last week or the week before. We had a very constructive engagement. I have asked it to follow up in detail in writing to me.
I probably should have said at the outset that I wish the Minister of State well in her position. I understand those answers were prepared for her but what I really need an answer on is the competitive nature by which the work permit is structured. It is not competitive. It is anything but that. It is anti-competitive. We need to address this in the context of the particular sector we are discussing. We are probably the only island nation that is affected in this way. We are not connected to mainland Europe other than through a very expensive shipping route. This is as much about Ireland Inc. as it is about its workforce. Nobody is taking advantage and nobody wants to pay less but the unfortunate reality is that because we are that step away from mainland Europe we have significant issues to consider in the competitive sphere. I know that both of the Minister of State’s colleagues will have addressed this before but really serious consideration needs to be given to that meeting and what was brought to her at it. From our perspective, it is more difficult to recruit work permit drivers simply because of the countries we were given, including South Africa, Japan and Korea. None of them are advantageous. Another thing that needs to be addressed is that if people who come here on a work permit should not be able to swap and change companies. The time they are here should be spent with the company that they are recruited for. There must be some structure to prevent that practice.
The Deputy is right. Competitiveness is a key issue here. It is important from a business perspective and, in the context of the labour market, it is important that we are paying competitive rates to employees. The Deputy will be aware that one of the things we are piloting is a new seasonal employment permit. That pilot programme was announced and will be happening and we will look at following it through for different sectors. I am aware of issues with the countries which the Deputy named, as well as with Georgia. I think there will be movement on that shortly. I had a very constructive engagement with the Irish Road Haulage Association. It has a particular viewpoint. I have asked it to provide information, case studies and data to back it up. Once I have that information, I can then make an informed decision on what it is putting forward.
Business Supports
Brendan Smith
Ceist:54. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment the number of businesses in each of Cavan, Monaghan, Donegal, Leitrim, Sligo, Roscommon, Galway and Mayo that registered for the increased cost of business grant before 1 May 2024; how many more in each county have registered since the application process reopened last week; and if he will make a statement on the matter. [23086/24]
Jackie Cahill
Ceist:58. Deputy Jackie Cahill asked the Minister for Enterprise, Trade and Employment the number of businesses in counties Tipperary, Limerick and Clare, respectively, that registered for the increased cost of business grant before 1 May 2024; how many more in each county have registered since the application process reopened recently; and if he will make a statement on the matter. [23064/24]
Joe Flaherty
Ceist:63. Deputy Joe Flaherty asked the Minister for Enterprise, Trade and Employment the number of businesses in counties Longford, Westmeath, Laois and Offaly registered for the increased cost of business grant before 1 May 2024; how many more in each county have registered since the application process reopened recently; and if he will make a statement on the matter. [23101/24]
I congratulate the Minister, Deputy Burke, and the Minister of State, Deputy Higgins, on their appointments and wish them, along with the Minister of State, Deputy Calleary, every success in their work in the Department.
I welcome the Government’s decision to reopen the increased cost of business scheme. I heard the Minister and the Minister of State, Deputy Calleary, in different forums encouraging companies to apply. There is a rather simple application process. I sincerely hope that message can be got out and that eligible companies will apply and gain this much-needed assistance towards the increased costs facing the small-scale manufacturing, hospitality and retail sectors in particular.
I thank Deputy Smith for his kind wishes. I propose to take questions Nos 54, 58 and 63 together. The Government is very aware that SMEs have faced a number of economic shocks in recent years which have resulted in cost increases. On 15 May, I, along with my Government colleagues, announced a substantial range of measures to reduce costs for small and medium sized businesses. Included in these measures was the reopening of the increased cost of business, ICOB, portal from 15 May to 29 May in order to allow rate-paying business owners who have not registered to do so.
We have also received feedback that the process of registering is simple and quick. As part of the reopening of the ICOB scheme and given the greater impact the increased costs are having on the hospitality and retail sector, as Deputy Brendan Smith has quite rightly pointed out, there was an impact assessment report by my Department and the Department of Social Protection. The Government has agreed that businesses that operate in these sectors will receive a second payment from approved businesses or a double payment for new registrations under the scheme.
The up-to-date figures the Deputy requested, as at 3 p.m. on 22 May, are as follows. In Cavan, 1,118 were registered before 1 May and there were 12 additional registrations in the past week. In Monaghan, 1,198 were registered before 1 May and eight were registered since the scheme reopened. I call on everyone to push those figures up because this money is here to support them. In Donegal, 2,300 registered before 1 May and 67 were registered since the scheme reopened. In Leitrim, 468 were registered before 1 May, with three registered since the scheme reopened. In Sligo, 997 were registered before 1 May and three since the scheme reopened. In Roscommon, 952 were registered and 21 since it reopened. In Galway city, 1,878 registered before 1 May and 23 since the scheme reopened. In Galway county, 1,832 were registered before 1 May and 36 since the scheme reopened. In Mayo, 2,456 registered before 1 May and 42 since the scheme reopened. In Tipperary, 2,361 registered before 1 May and 35 since the scheme reopened. In Limerick, 2,727 were registered before 1 May and 82 since the scheme reopened. In Clare, 1,837 were registered before 1 May and 44 since the scheme reopened. In Longford, 753 were registered before 1 May and 14 since the scheme reopened. In Westmeath, 1,367 were registered before 1 May and 60 since the scheme reopened. In Laois, 909 were registered before 1 May and eight since it reopened. In Offaly, 949 were registered before 1 May and 21 since it reopened.
I call on everyone to work together to highlight the importance of the scheme. It is there and it is simple to use. I point out that there is a double payment for vulnerable sectors, such as the hospitality sector, as Deputy Smith referenced, and also the retail sector. I also call on all the local authorities to get this money paid, which is important. There is a huge disparity within the local authority network in respect of payments. Some of the local authorities are well over 70% or 80% in approvals for payments. We are at approximately 63% or 64% that have registered and we will try to increase that percentage in the two weeks. A very strong advertising campaign is now under way that is trying to penetrate down to local businesses and local shops, because this grant is really substantial and will help them. Many of them will get an average payment of €3,000 or €4,000 under each round. This could mean €6,000 or €7,000 for some businesses, which will help them with cash flow.
I point out that this is part of the wider package. We need to be sustainable. It is important that we have the capital grant funding in place to help them with their energy efficiency grants and trying to transform their methodology by upgrading LED lighting or refrigeration. This can help with their bills by €1,000 per month. There is also the PRSI change, which will take effect from 1 October. It is important that we keep our economy competitive and make it as easy as possible for employers to employ in a growing market that is very competitive. Members will have heard the Minister of State, Deputy Higgins, speaking about how we are trying to respond to many challenges in the permit system.
The bottom line is that registration is open. It can be done in two minutes. You can do it on your mobile phone. You are only asked to populate the letter received from the local authority, which will include a personal identification number. You are asked to put in your tax clearance certificate details and press send. That will ensure that the local authority is able to give authorisation and the payments will follow right into the bank account of the business. That is very important to ensure that we are listening to businesses. I have met with representatives of a number of business sectors, such as the Restaurants Association of Ireland, IBEC and the Irish Small and Medium Enterprises Association, ISME. Many of the representatives are trying to get the message out to businesses that this is here to support them and it is important that they draw it down.
We have €250 million in place. As we go forward to the next budget, it is important for that money to be utilised by our SME sector. If it is not used, that will weaken my hand going into budget negotiations this year. It is very easy to say that €250 million was available but was not drawn down. I appeal to people to get the message out that this money is there for businesses and it should be used. It is there to help them. I am doing everything I can, working with Deputies in the House, to articulate that to them and get the message out. I spoke to the chairperson of the finance committee in the County and City Management Association, CCMA, last night to get the word out to local authorities. I wrote to all the chief executives in the local authority network this morning to outline where their local authority features in the report in terms of what is registered, what is approved and, critically, what is paid out and in their bank accounts. I will be following up on that with the Minister of State, Deputy Calleary, and the Minister of State, Deputy Higgins, over the next few days. We are all working well together to get this money in as quickly as possible.
I thank the Minister for his detailed reply. I again acknowledge the efforts he and his ministerial colleagues have made in getting the message out that this money is available and there is a simple and speedy application process. Quite rightly, the areas of retail and hospitality were identified for particular assistance. I have recently been engaging considerably with small-scale manufacturing, which is facing particular challenges as well. I am sure the Minister will engage with industry, particularly the smaller-scale enterprises. I spoke to the Minister of State, Deputy Calleary, about this and he is very conscious of the need to ensure that it gets adequate support as well. I recently spoke to an employer who has approximately 30 employees. The biggest problems facing her at the moment are the cost of sick pay and pensions, and access to finance and credit. She says that access to credit is a real problem for small-scale manufacturing. I refer to businesses that are showing little or no annual profit and have been struggling in recent years through no fault of their own, but because of the various challenges that arose with the increased cost of business, market disruption, the Covid pandemic, the Russian invasion of Ukraine and the increased energy costs. I would like particular emphasis to be placed on small-scale manufacturing, as the Minister has quite rightly done in respect of small-scale hospitality and retail. Even with the assistance that the Government is giving, many of those firms still face particular challenges in trying to survive and make their businesses viable.
I again thank the Deputy for outlining his concerns on the sectors. As it happens, the Minister of State, Deputy Calleary, the Minister of State, Deputy Higgins, and I were discussing the issue of manufacturing yesterday at one of our meetings. The Deputy is quite right. There is a varied number of issues that we are trying to respond to in that area. I have travelled around the country a lot since my appointment and I have found that one of the key areas is space. Many manufacturing or engineering companies throughout the country and the local authority network need quality units where they can do their work. With Enterprise Ireland, we will have a look at what we can achieve in that space.
Deputy Smith pointed out the various issues and costs. Due to the policies he has supported and the Government has implemented, inflation has halved since November 2022. That shows that Government policies are working. They are rapidly reducing the rate at which prices are increasing. In the energy market, the wholesale price of energy has reduced by 40%. We need that to be passed on to businesses and consumers and we have to work hard to achieve that. While those costs are there, we also have a strong package to meet them.
I also point out that the 9% VAT rate on gas and electricity remains in place until the end of the current budget period on 31 October. There are also the energy efficiency grants of up to €10,000, where the employer only has to put up 25%. I have been in shops on the main street in Cashel. I was in the SuperValu and they told me there that by changing their refrigeration and installing LED lighting, they can reduce their energy bill every month by more than €1,000. That improves cash flow. It leaves cash we do not want to see leaving the businesses with the businesses. We will keep working on that trajectory and in the areas that the Deputy rightly identifies as vulnerable. We will never take for granted the 2.8 million people who are employed in this country. Ten times as many new businesses are opening in the wider economy compared with the number of companies and corporations that are going into liquidation.
I thank the Minister. I repeat my request that he make a particular appeal to the finance houses to support small and medium sized enterprises, because they are not doing so adequately at the moment. I am very glad that the Minister mentioned workspaces and enterprise centres. For years, I have been tabling parliamentary questions to the Minister’s predecessors in regard to the need to adequately support local authorities or voluntary organisations in developing workspaces. In the two counties I represent, we have seen the growth of firms that went into a small workspace in the enterprise sector. Some of them are multinational firms today. Adequate supports should be provided to local authorities to at least acquire sites, develop them and put the accommodation in place.
There is a great return for the Exchequer on such an investment. Local authorities, like those in Cavan and Monaghan, have a fairly small rates base. They do not have the funding to support all the enterprises that we would wish to support as local authorities and public representatives.
The schemes that are in place at present, supported by Enterprise Ireland and other agencies, are not adequate to ensure that we develop more workspace and enterprise centres in our towns and villages. There is a demand for that workspace. I have received a number of inquiries in my county town of Cavan where there are small enterprises that need larger spaces but cannot afford to develop the space themselves. There is no space available, unfortunately. It is an area that I would like to see addressed.
Deputy Smith is right to point out the pressure that small manufacturing and engineering businesses, particularly start-ups, are under with regard to access to finance. It is very important that they get finance at competitive rates.
With regard to helping existing SMEs with their working capital, the new Microfinance Ireland thresholds are increasing from €25,000 to €50,000. The Minister of State, Deputy Calleary, is taking that Bill through the Oireachtas at present and it will be important to try to provide working capital for SMEs in that sector at low, competitive rates. Some 14 credit unions have embarked as agents of that fund, which is very important and has over €1 billion available. These are measures targeted at start-ups, which are the multinationals of the future. The Deputy is right that local authorities do not have the capacity in many instances to deliver high-quality space for them, and that is where agencies like Enterprise Ireland come into play. We will work with those agencies in the future to ensure we are prioritising this.
We can never take our eye off the ball with regard to innovation. High-quality start-ups are businesses that we have to support. I have been at many events and we have just celebrated the tenth anniversary of the local enterprise offices, LEOs, for which the new strategy is being launched today. It will be an exciting time for us to reprioritise in order to ensure we are achieving that fertile ground for innovation to grow and ensure we are creating the multinationals of the future. We could argue that the most important point is access to finance, which is the lifeblood and is critical for them. We will do all we can to improve those conditions in the future.
Industrial Development
Bernard Durkan
Ceist:55. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which his Department continues to ensure the competitiveness of this country’s trade and industry sectors in an increasingly competitive world market; and if he will make a statement on the matter. [23229/24]
This question is on the same theme of competitiveness, the health of the trade and industry sectors and the degree to which they can remain competitive in an increasingly competitive and challenging marketplace.
I thank Deputy Durkan for his very important question. Ireland is recognised as one of the most competitive economies in the world and performs well in international rankings of competitiveness. In June 2023, Ireland was ranked as the second most competitive country in the world in the IMD world competitiveness rankings. The 2024 iteration of these rankings is due to be published in the coming weeks.
The Government receives advice on issues relating to Ireland's international competitiveness from the National Competitiveness and Productivity Council. In May 2023, the NCPC published its triennial report, Ireland's Competitiveness Scorecard, which provides an analysis of Ireland's competitiveness performance based on internationally comparable data and the latest international rankings. The NCPC made a number of positive findings regarding Ireland's competitiveness performance. The essential conditions underpinning Ireland's competitiveness position are relatively robust. Ireland has a strong and stable fiscal position, with sound institutions, a supportive business environment and strong demographic endowments. Ireland is recognised as a highly open economy, with net trade contributing significantly towards annual growth. Ireland's international competitiveness is also reflected in the continued resilience of the economy at a challenging time for the global economy, and in the strong productivity growth in the highly globalised foreign-dominated sectors.
There are, however, a number of areas where Ireland could seek to improve its performance and competitiveness position. These are outlined in the NCPC's most recent annual report, Ireland's Competitiveness Challenge, published in September 2023. This report includes 19 recommendations for Government concerning the following: the cost of doing business; infrastructure delivery; energy generation and consumption; and research, development and innovation. These are all critical aspects of our current and future competitiveness. My Department has lead responsibility for four of the council's recommendations. The Government has issued a formal response to this report which sets out plans to address these recommendations.
My Department continues to pursue pro-enterprise and pro-competitive policies. Published in December 2022, the White Paper on Enterprise 2022-2030 sets out Ireland's industrial policy for the medium to long term, building on Ireland's strengths of an open economy with strong trade and foreign investment, a vibrant innovation hub and a resilient labour market.
I thank the Minister for his comprehensive reply. In passing, I congratulate him and his colleagues on their elevation or their retention of their very important positions.
The points the Minister has raised in regard to the contributory factors that might challenge the competitiveness of trade and industry are the issues I would like to concentrate on. All sectors of industry know the issues that impact on them most and that are not of benefit to them. The extent to which we can at this stage identify the cause or causes of challenges that may affect industry in retaining that competitive edge needs to be looked at, particularly at this moment. I ask that the issues the Minister has raised during previous questions be examined with greater intensity to ensure that all of those who might feel in any way threatened will have their case heard.
I concur with the Deputy that we can never take our eye off the ball when we have an open and strong economy like Ireland's. We have to continue to work. It is very important that we have a pipeline of €165 billion for the next decade for capital infrastructure because infrastructure improvements will attract new businesses and keep our economy competitive. We have seen in the national broadband plan how important it is to have high-speed, high-quality broadband in the most rural parts of the country so they can compete with the centre of Manhattan. With regard to improving housing, the figures we have seen in the first quarter are eye-watering, with a 60% increase in commencements. This record level shows how we can be competitive again by having high-quality housing for all of our people.
A further critical point is in regard to the reduction in emissions by 2% since 2021. This challenges our economists. It shows that we can grow our economy and reduce our carbon footprint in tandem. The emissions are going down while the economy is growing. This is important for us as a country. It leaves us as a strong competitor internationally and shows we are meeting our obligations, investing in the future, investing in infrastructure and keeping competitive.
With regard to the climate issues that the Minister raised, it is important that we retain our competitiveness in that area and do not become a world leader and, as a result, have to pay higher costs than many of our competitors. This is a very competitive market. We must try to maintain capacity. Any diminution at all will very quickly accelerate, with obvious consequences for employers and employees. I would like to know the extent to which the threats that are most obvious to competitiveness in the home market and the international market are being identified and challenged at this time.
They are valid points. The Deputy raised the issue of climate. It is critical that we remain competitive. When we see a company like Diageo, the home of the black stuff, spending €100 million to decarbonise its processes over the next five or six years, when we have world leaders like that based here in Ireland and leading by example, it shows the change that is under way. We have to work with the wider economy to ensure we are supporting them. We are the listening voice that articulates and works with businesses to ensure we are supporting them in every way possible. The key message is that we have €165 billion over the next ten years to transform our communities and continue to make our country a leader in competitiveness. It will be important to ensure that this money is spent and those projects are delivered so we are in a prime position to continue to attract investment from across the globe at the rate we currently do.
Export Controls
Matt Carthy
Ceist:56. Deputy Matt Carthy asked the Minister for Enterprise, Trade and Employment if he will report on his efforts to ensure that dual-use items exported to Israel are not used in military applications. [23276/24]
As the Minister knows, dual-use items are items that can have either a civilian or, importantly in this case, a military use or capability. Over recent years, the Government and the Department have been signing off on an increasing number of licences for dual-use items to be exported to Israel from Ireland. Can the Minister assure the House that not a single one of those items is being used by Israeli military forces or their proxies in their ongoing genocide against the people of Palestine?
Gabhaim buíochas leis an Teachta as an gceist.
Our Department is the national competent authority with responsibility for export controls, including those relating to defence-related exports and the export of dual-use goods. Controls on the export of dual-use items are administered by my Department in accordance with Regulation No. 2021/821 of the European Parliament and of the Council, which set up an EU regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items. As the Deputy said, dual-use items are products and components, including software and technology, that can be used for both civil and military applications. The bulk of dual-use exports from Ireland to Israel are mainstream business ICT products, predominantly software, that are categorised as dual-use items specifically as a consequence of the fact that they incorporate strong encryption for ICT security purposes.
Each export licence application, including those indicating an end destination in Israel, is carefully considered by my officials in accordance with criteria set out within the relevant dual-use and military EU and national regulations and with Ireland's international obligations and responsibilities as members of non-proliferation regimes and export control arrangements.
Any exporter intending to export a dual-use item outside the EU must engage with our Department, which will consider the exporter's internal compliance procedures to ensure they meet the requirements set out in the dual use regulation. On receipt of an application for an export licence, my officials carry out a considered assessment which includes a series of checks to ensure, as far as possible, that the item to be exported will be used by the stated end user for the stated end use and not for illicit purposes.
As part of the assessment, our officials seek the views of the Department of Foreign Affairs in respect of all applications for export licences, including those destined for Israeli end users. Both our Department and the Department of Foreign Affairs review all dual-use export licence applications against the eight assessment criteria set out in Council common position. Investigations are carried out into the end user and the type of business in which they are engaged. As part of the application, the exporter must provide an end user certificate, which is a declaration from the end user that the goods will be used for the intended purpose. My officials are furnished with up-to-date information that they take into account in the final risk assessment. The Department will deny a licence application if there are concerns that the goods being exported will be used for a military end use or if the exporter has not provided sufficient information on the intended end use.
Those words would count for more if there were a single instance where the Department had refused a licence. There is a big question mark over the rationale and the reason the number of dual-licence products - these are products that can be used by military forces - has actually been increasing in recent years. The value of these products from Ireland to Israel was €4.7 million in 2019; it was €70.37 million last year. Every licence application has been approved by the Department. To put this in context, medical scissors going into Gaza are denied by Israel precisely because they are dual-use products. How sick is that? Yet we are sending increasing amounts of software and other products that do have the capacity to be used by the Israeli military and we are approving every single licence. I do not believe there has been a substantial increase in demand for software payroll technology from Israel over the past seven or eight months. What we do know is that there has been an increased demand from within its military forces and their proxy organisations. I ask the Minister of State not to just use the standard processes in respect of dual-use licences as regards this issue because this is Israel. We should be applying a much more stringent level of rules because the capacity of that state to unleash unholy terror on the people of Palestine is unfolding before our eyes and we have to be crystal clear that nothing we are doing is supporting those attacks.
I agree with the Deputy. We are crystal clear that nothing we do will support the war that is under way. That is why we have such rigorous criteria. If the Deputy believes that those criteria have let things slip through, he should let me know and I will absolutely follow up on the matter. Applications for dual-use licences in respect of exports to Israel are assessed rigorously on a case-by-case basis. In addition, the officials in our Department seek real-time geopolitical observations from the Department of Foreign Affairs in respect of all applications. They use that real-time information in the final decision to grant or deny a licence. Our ICT exports have increased right across the world, particularly in the post-Covid environment. The goods going to Israel include medicines and industrial pumps. The majority of goods are in respect of standard business ICT software. If the Deputy has an example or a concern about a particular product, I encourage him to bring it to me and I will absolutely ensure we assess it and examine that concern.
With due respect to the Minister of State, he is asking me to do his job for him. He talks about the interactions with the Department of Foreign Affairs. That Department is obliged under its own criteria to consider "Respect for human rights in the country of final destination as well as respect by that country of international humanitarian law". How the hell can we be allowing any licence for exports going to Israel to be approved, considering that it is the official position of this House and this Government that Israel is involved in de facto annexation in the West Bank, when the Government has finally agreed to intervene in the International Court of Justice case in respect of a charge of genocide against Israel, when we have asked the EU to consider the human rights clauses within the EU-Israel trade association agreement and when a former Taoiseach described Israel's onslaught on Gaza as approaching revenge? Does the Minister of State not agree, considering the criteria in respect of human rights and the adherence to international humanitarian law, that we should not be sending a single product that could have a military use to the State of Israel while it continues to be in gross violation of international law?
I assure the Deputy I am not asking him to do my job, nor will I do so. We have a rigorous process. The Deputy is insinuating that said process is allowing things to slip through. If he has backup to that insinuation, he should provide it to us and I will be able to give him relevant and accurate information. We have a rigorous process that involves our Department and the Department of Foreign Affairs in respect of not only Israel but also every market that concerns dual-use exports. A great deal of work goes into ensuring that the process is rigorous and independent.
Not a single licence has ever been refused.
I am confident in standing over that process. As Ministers in the Department, Deputies Burke and Higgins and I regularly challenge our officials to make sure it is rigorous, particularly in respect of Israel.
Industrial Development
David Stanton
Ceist:57. Deputy David Stanton asked the Minister for Enterprise, Trade and Employment to report on his Department's Powering Prosperity: Ireland's Offshore Wind Industrial Strategy, which was published in March; and if he will make a statement on the matter. [23263/24]
I ask the Minister if he agrees with the implication in Powering Prosperity: Ireland's Offshore Wind Industrial Strategy, published by his Department, that there are thousands of potential jobs, maybe hundreds of thousands of potential jobs, in this whole area from the point of view of assembling and maintaining the turbine infrastructure, having the upstream and downstream maintenance, manufacturing, supply chains and so on. It is a huge potential from a jobs point of view. Will the Minister expand on how he sees this developing?
I thank the Deputy for his question. I absolutely agree with its premise and his ambition. It is the core ambition of Powering Prosperity: Ireland's Offshore Wind Industrial Strategy, published by our Department last March. The strategy ensures that Ireland maximises the economic benefits associated with our climate and offshore renewable energy, ORE, targets. I commend Deputy Coveney, who led on the strategy as Minister in our Department. The strategy includes 40 targeted actions for implementation in 2024 and 2025 to support our offshore wind industry to rapidly deliver offshore wind projects of scale. It also maintains a focus on the sustainable development of Ireland's industry to ensure that our long-term goal of at least 37 GW by 2050 is met.
The strategy aims to build a strong and resilient offshore wind supply chain here, as well as exploring opportunities for Irish companies to play a major role in the development of offshore wind projects at home and abroad. It also explores opportunities to leverage Ireland’s existing strengths in research, development and innovation, RDI, to support the sector to reach the cutting edge of future developments in offshore wind. For the longer term, the strategy will consider routes to market for our abundant clean renewable energy, as well as assessing regional development opportunities, such as those referred to by Deputy Stanton, in areas central to the production of offshore wind energy.
Work is under way on the implementation of Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy and my Department will oversee the implementation of the 40 actions. We will maintain close contact with action owners across Departments and agencies through our offshore wind industrial forum, through the interdepartmental group, the RDI working group and through membership of the offshore wind delivery task force.
Our officials continue to lead workstream 7 of the offshore wind delivery task force, which involves a detailed reporting mechanism and register for risks to delivery. This, in turn, will ensure the timely and effective implementation of each of the actions contained in the strategy.
I thank the Minister for his response. Obviously, there is enormous potential here from the point of view having an almost unlimited supply of energy - and renewable energy at that - for the country. That energy is badly needed. Also, there is the potential relating to job creation and the economy.
Is the Minister of State aware that we need to have a place where the work relating to this matter can be done? I refer to the assembly of turbines, the carrying out of maintenance so on. At the moment, there is no such place available in the Republic. The Minister of State will be aware that the Doyle Shipping Group in Cork has pulled out of this arrangement. It has a dockyard in Cork and it was going to assemble some of the material needed. There is planning permission in place in respect of the Port of Cork, but the latter does not have the finance to allow it to expand. This has come up at the interdepartmental working group. I put it to the Minister that all of the ambition, which is laudable and praiseworthy, outlined in Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy cannot come to fruition unless we have a physical base at which it can happen. Without that, we will be towing turbines in from abroad. In addition, all of the jobs involved could go to the other side of the Irish Sea or across to France.
We are very aware of the need for physical infrastructure. We have outlined in the strategy that will be a demonstrator site as well as an offshore wind centre of excellence. There are three marine test centres currently in Ireland, namely the Lir National Ocean Test Facility in Cork, the SmartBay Test Site for marine and renewable energy in Galway and the Atlantic Marine Energy Test Site, which is currently under development in our own county of Mayo. We will put the business case in place for a demonstrator site that will include: the deployment of pre-commercial or commercial floating offshore wind technologies; an assessment of the performance of floating offshore wind, including in the context of the financial and technical performance necessary to facilitate operations in Irish conditions; seeking to understand the installation, operation and maintenance of floating offshore facilities specifically in Irish waters; and procuring the complementary technologies relating to digital, including remote monitoring and other technologies. All of the latter will be specific to the conditions that obtain in Irish waters and to the facilities we already have.
Am I correct in saying that these demonstrator sites will all be offshore? I am speaking about an onshore centre, such as in the Port of Cork. At present, the latter is not able to operate as an onshore centre. It is not big enough. It needs to expand, and the planning permission is about to run out. The Minister of State might bring that up at the interdepartmental working group the next time it meets. Otherwise, all of the other work to which he referred cannot happen.
Would the Minister of State be supportive of IDA Ireland-owned land being made available to the Port of Cork to enable it to expand? There is a parcel of such land adjacent to the port that is not being used, as far as I understand, and that cannot be used. Would the Minister of State look into that matter and perhaps support a request that the land be made available to the Port of Cork in order that it can get to first base with respect to this offshore renewable energy industry? This is serious. We do not have an onshore base. As far as I am aware, the project at the Port of Cork in respect of which there is planning permission is the only one of its kind in the Republic. Without it, all of this laudable ambition cannot and will not be realised. Others will get ahead of us.
I commend the Minister of State on what he and the Department are doing, but I ask him for to put in place all-of-government approach, which is what is needed, because, otherwise, we will be left on the back foot.
I absolutely agree with the Deputy that we need an all-of-government approach. The Minister of State, Deputy Burke, has made that very clear since he came to the Department. If a request is made by the Port of Cork to IDA Ireland, I would ask it to engage with the latter directly. Anything we can do to support the development of offshore wind energy, not just in Cork - I am conscious that Deputy Stanton is here with Deputies O'Connor and Pádraig O'Sullivan - but also across the island, we will do. State lands should be used to facilitate that. There is also a need for a strategy to enable us to get the skills side of things absolutely right. We also need an apprenticeship strategy in order to get young people working in that space now. We have done a great deal of work in the past year in participating at WindEurope and in participating at wind conferences around the world showing our conditions. There is also some amazing work under way. I visited the facility of a company called XOCEAN in Louth last year to see the work it is doing worldwide in this space.
If Deputy Stanton drops me a note on the parcel of land in question, I would be happy to pursue the matter with IDA Ireland and the Port of Cork.
Question No. 58 taken with Written answers.
Business Supports
James O'Connor
Ceist:59. Deputy James O'Connor asked the Minister for Enterprise, Trade and Employment when the payments for the increased cost of business grants will be paid to businesses in Cork; the number of businesses that have and have not applied for the grant; how many of those businesses are in the hospitality sector; and if he will make a statement on the matter. [23311/24]
I thank the Ministers for being here. I congratulate them on their new roles. I thank especially the Minister of State, Deputy Calleary, for remaining in his current role.
I ask this question around the increased cost of business, ICOB, grants which were made available, about their uptake, particularly in the area of County Cork, and if this information can be provided to the House, please?
I thank Deputy O'Connor for his very important question. On 15 May, I and my Government colleagues announced a substantial range of measures to reduce costs for small and medium-sized businesses. Included in these measures was the reopening of the ICOB portal from 15 May to 29 May to allow rate-paying business owners who have not registered to do so. We have received feedback that the process of registering is simple and quick. I urge those business owners who have not applied to do so now and as soon as possible. As part of reopening of the ICOB scheme and in light of the great impact the increased costs are having on the hospitality and retail sectors, as noted in the joint report produced by our Department and the Department of Social Protection, namely An Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland, it has been agreed that business operating in these sectors will receive a second payment for approved businesses or a double payment for new registrations.
As the Deputy is aware, local authorities are administering the ICOB scheme on behalf of our Department and have started to pay out grants to eligible businesses. As of yesterday evening, 1,793 businesses in Cork city and county have received €4.62 million. In Cork City Council, of the 9,333 potentially eligible businesses, 3,913 businesses registered for the scheme representing 4,231 properties. Of those that have registered, 578 are in the hospitality sector, representing 628 businesses. In Cork County Council, of the 6,404 potentially eligible businesses, 4,849 businesses registered for the scheme representing 5,248 properties. Of those that have registered, 568 are in the hospitality sector, representing 595 businesses.
I thank the Minister for that information. These, along with other measures, are extremely welcome. The costs on businesses are of great significance. When it comes to energy prices, that is something which needs to be urgently tackled because we are out of sync with the rest of Europe when it comes to the cost of energy per unit price. When one also looks at the profits which are being made within those utility firms, this is something which needs to be taken up by the consumer protection agencies we have here.
Could I just get some subsequent information on how much money is being paid out in County Cork? I heard of the work which is being done in Cork City Council, but can I get clarification on how much has been paid out? I heard of the number of applications and it is great to see that people are interested in it and taking up this scheme but what was the pay out in County Cork as of today?
I thank the Deputy again for his question. Unfortunately, we are a price taker in the energy market and we have so much to do in that regard. It is good to note the reduction of about 40% in the wholesale cost of energy but that needs to be passed on to businesses and indeed on to the consumer to make us more competitive.
On the Deputy's question in respect of Cork County Council, as I understand, it in the past half an hour €114,000 has been paid out. Another payment run will be happening this week. That is exceptionally low. I spoke with the chairperson of the County and City Management Association, CCMA, finance committee last night and I have written to all local authorities this morning. It is important to note that some local authorities have paid out over 90% and some are trailing.
We need to work hard over the next week to ensure that this money is paid into the bank accounts of businesses. I would welcome the Deputy's support in engaging with Cork County Council to ensure that is the case. I will be doing everything along with the Ministers of State, Deputies Calleary and Higgins, and working hands-on with the chief executives to get this money into the bank accounts of businesses. The critical thing is they have the money. Some 50% of this total allocation has been paid out and is now in the bank accounts of all the local authorities. We need it to be transferred into the bank accounts of the businesses.
Members of Cork County Council are well able to fire a torpedo up here to give out about Oireachtas Members and Ministers when they are not happy but that level of money being paid out is entirely unacceptable. It is not the fault of the Minister or the Department officials when other local authorities seem to be doing this without any concern or issue. It needs to be on the record of the House here that this is not acceptable and needs to be addressed as a matter of urgency. Businesses are closing on main streets all over Cork county. The impact that has on the rates income for the council is very significant. There is an urgent need for the financial support that has been put in place by the work of the Department officials and the Ministers of State. The fact that there is such a little amount of money for a county the size of Cork is deeply concerning. That is something that should be taken away from today. I understand that the Minister was doing communications this morning with the council. It is astonishing how little has been paid out to a county of that size, considering the circumstances we find ourselves in, including high energy costs and other issues. It is astonishing that this has been allowed to persist.
I appreciate the figures the Minister has outlined to us and I want to recognise the work of Minister of State, Deputy Calleary, in keeping our own parliamentary party informed every week and trying to get us to encourage businesses to apply for it in the first place. As the Minister has laid out with the figures, the disparity between Cork county and Cork city has flummoxed me over the last couple of weeks. Businesses in Cork county have applied at a relatively high level, albeit there is an issue, as has just been discussed in relation to the actual payout. On the other hand, the number of businesses applying for it in Cork city is much lower. Are there any further plans to advertise the scheme? Is it worthwhile for local authorities to contact businesses again directly? I am not quite sure what else they can do at this point. I ask the Minister to outline any further plans for getting that scheme out among people.
What kind of turnaround time does the Department envisage? If a good proportion of that money is with local authorities what is the typical turnaround? Is it a two-, three- or four-week turnaround or what was initially envisaged?
I have spoken about this issue several times here in the Chamber. The grant has been extended for two weeks. My understanding is that the deadline is now Wednesday, 29 May, but there is huge confusion about this. Sorry, I will wait until the Minister has finished speaking to the Minister of State.
It is okay, I can multitask.
That is good. This is really important and I have been on about this grant for the last few weeks. The deadline is next week, 29 May. It needs to be extended more. I see the Minister of State shake her head but the uptake in Carlow is not good. I know this because I have been speaking with all the businesses. I contacted the Chamber of Commerce and some businesses myself because of the uptake. I feel we need to do more. The worrying thing for the Department is why the uptake is so low in most areas. Carlow County Council has written to the businesses. What do we need to do? We need to give them some more time. The money that the businesses need is there. It is our duty of care to make sure the businesses get it.
I thank all the Deputies for their contributions. I agree with Deputy O'Connor. Cork County Council is the largest local authority in the country and it has the money. We do need to see action now and I will be demanding it over the next few days. As I said, I spoke with the head of the CCMA finance committee. I have written to all chief executives this morning on foot of the change last week. In the coming days, I will be working to ensure that this is paid out. There should not be a timelag. It is very simple, it is not a complicated scheme and they have the finance. It is a matter of putting resources on it and getting the money deployed into the bank accounts of businesses.
Regarding extending the payment, well in excess of 70% of businesses have registered in many counties. We have another week so it is important that we also do our job and get the message out there that this application can be done in two minutes on a phone. It is very easy to do. We are putting all the resources behind it and we will be doing another round of advertising in the last week on rural and provincial radio stations and going through the national media, trying to highlight that the scheme is ready and open for business. I appeal to businesses to register. The Government is putting a quarter of a billion euro on the table to try to assist with the increased cost of business. We want businesses to get that money and will be ensuring that local authorities do their bit as part of the jigsaw. We do value their work. I know we get frustrated by local authorities at times, but I want to work with them. We are working together to get this money into the bank accounts of businesses. It is there to support them.
Renewable Energy Generation
Darren O'Rourke
Ceist:60. Deputy Darren O'Rourke asked the Minister for Enterprise, Trade and Employment to report on the measures his Department is taking to implement the recommendations of a report (details supplied); and if he will make a statement on the matter. [23297/24]
I ask the Minister to report on the measures his Department is taking to implement the recommendations of the report from the Oireachtas committee on renewables and offshore wind and if he will make a statement on the matter.
The Joint Oireachtas Committee on Enterprise, Trade and Employment Report on Offshore Renewable Energy is comprehensive and forward-thinking. I thank the Chair, the members and the secretariat for their work on it. We had a very good and comprehensive debate on it some weeks ago in the Chamber. I will briefly respond to the recommendations set out in the report.
On recommendation 1, the publication of the draft south coast designated maritime area plan, SC-DMAP, by the Department of the Environment, Climate and Communications earlier this month, alongside the future framework for offshore renewable energy, ORE, sets out the Government’s plan-led approach to the development of ORE going forward. Powering Prosperity - Ireland’s Offshore Wind Industrial Strategy recognises the important role that floating offshore wind technology will play in delivering offshore energy at scale in the medium term. As I said to Deputy Stanton earlier, work will begin in 2024 to examine the possible development of a new floating offshore wind demonstrator. This will be led by the Department of Environment, Climate and Communications with close input from my Department.
Much work is being undertaken in relation to public data collection and research as set out in recommendation 3 of the joint committee report. Research, development and innovation is one of the four core pillars within Powering Prosperity. We want Ireland to be seen as having a competitive advantage in developing cutting-edge new technologies and we want to develop know-how across the sector.
Recommendation 4 notes the need for a much more integrated approach to monitoring and development of renewable energy. This work is primarily being led by the Department of Environment, Climate and Communications.
The committee recommended active education, training and recruitment initiatives to increase the supply of essential skills in this industry. My officials are engaged with the Department of Further and Higher Education, Research, Innovation and Science on such initiatives. We are also working with the officials on recommendation 8.
Regarding recommendation 6, several of the nine regional enterprise plan steering committees - which the Minister, the Minister of State, Deputy Higgins, and I sit on - have established subgroups focused on offshore renewable energy. Our officials are engaging with these groups as they begin their work.
Additional information not given on the floor of the House
The offshore wind delivery taskforce, OWDT, chaired by the Minister for the Environment, Climate and Communications, Deputy Eamon Ryan, plays an important role in bringing all the relevant stakeholders from across Departments, offices and agencies together to accelerate and drive the development of offshore renewables in Ireland. Officials from our Department are members of the OWDT and lead on workstream 7, which focused on realising a successful supply chain.
Aligned with recommendation 9, another of the core pillars in Powering Prosperity focuses on building capacity and capability along the offshore wind supply chain. By developing a domestic supply chain, supporting Irish companies exporting globally and attracting new foreign direct investment, FDI, in this space, it is expected that new or additional jobs will be created, as well as other economic benefits.
I want to ask specifically about recommendation 8. It refers to Wind Energy Ireland and the Skills for Zero Carbon report. Regarding ports specifically, there is a recommendation for investment in our ports. This is an issue that comes up consistently. I hear the response from Government regarding applications for European funding but we have seen in the past that our ports have been unsuccessful in applications for European funding. We also see in France and elsewhere where the state has found a way to directly intervene and support ports to ensure that they are fit for purpose and ready to deliver on the potential of offshore renewables.
Regarding the first part of the question, we are engaging with Foras on that at the moment. On the issue of the ports, the Department of Transport, as the Deputy is probably aware, is currently awaiting the results of the 2003 connecting Europe facility funding call. We expect to have those results by July of this year. The Department of Transport, along with the Irish Maritime Development Office, assisted ports that made applications under that funding call. We are aware that multiple ports have submitted applications. The Department has also signed an advisory agreement with the European Investment Bank, EIB. This bank is undertaking analysis on demand, capacity and finance options that relate to Irish ports' offshore renewable energy plans. The Department is also overseeing reviews of each business case that has been submitted by Irish ports in relation to offshore renewable energy.
The offshore renewable energy ports facilitation division has communicated feedback to the relevant ports based on their initial reviews. Once a formal evaluation of those projects has been carried out and the advisory work of the European Investment Bank is completed, the Department will be able to make an informed decision on the financing of those projects.
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