Vol. 1063 No. 3
6. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment to report on the progress of the business and human rights stakeholder forum; the number of times and dates on which the forum has met; if the action plan is now in place; and if he will make a statement on the matter. [6376/25]
My question specifically relates to the UN guiding principles on business and human rights. Unfortunately, the first action plan we had, from 2017 to 2020, has now been out of date for five years. I ask specifically about the stakeholder forum that was set up. I know how often it met. When will we have the plan? It is to follow on the guiding principles that were accepted by the UN in 2011. Now, more than ever, in today's world, we need to embed human rights.
I thank Deputy Connolly for her question. The Department of Foreign Affairs and my Department established a dedicated business and human rights stakeholder forum with the participation of individuals with relevant expertise and responsibilities from key organisations across business, civil society, trade unions and academia to assist with the development of a second national action plan on business and human rights. The stakeholder forum has met on two occasions so far. The first meeting took place on 14 December 2023. Following this meeting, the two Departments presented a set of draft action points forming the basis of the new national plan. Stakeholders and members provided written feedback to be considered on 6 June. This feedback continues to be reviewed across all relevant Departments to ensure the actions are deliverable during the lifetime of the plan. I understand that officials from my Department met Deputy Connolly last July to discuss the plan and create a channel of communication for inputs. As many of the suggested actions relate to the work of other Departments, it is important that their feedback is received to understand their respective positions and to put in place a set of actions that are feasible, actionable and specific.
Officials from my Department and the Department of Foreign Affairs continue to liaise with relevant officials right across government. It is taking time to work through the suggested updated actions with these officials as some of the updates are technical in nature. The work is ongoing and we are nearing completion. While it is taking a bit longer than would be expected to complete this work, I believe it is important that time has been taken to ensure we can present an ambitious plan with clear deliverable actions. The updated actions will be presented to a third stakeholder forum, which is expected to take place in the coming months. The finalised plan will cover a multiannual timeframe and will reflect new developments in the international understanding of business and human rights, including new EU instruments. It will have key performance indicators attached to it, which will have assigned responsibilities and timelines to adhere to. I expect to bring human rights to the forefront of the minds of Irish businesses so they can demonstrate their conscientious performance as required by the public.
I thank the Minister. I appreciate that the Department met me. It was a very helpful meeting and it is a way to work. There is, however, no progress in relation to the plan and we are into our fifth year. Trinity College did a report that was a snapshot of large firms operating in Ireland. The embedding of human rights principles received the lowest score. Embedding respect for human rights and conducting human rights due diligence was the theme on which companies, on average, scored the lowest. While some of the actions the Minister reports have been implemented from the last plan, no specific goals were delivered. There is an urgent need to publish this report based on human rights. We know that. I know from meeting personnel in the Minister's Department that they are absolutely doing their best. They are certainly committed to bringing this plan forward but where is the delay? The Minister is talking about a meeting of the stakeholders in a few months and yet he is talking about a plan that will be published soon. Will the Minister clarify that for me?
I thank Deputy Connolly for her intervention. A lot of the new EU instruments that are coming into context, and which this plan will have to respond to, are very technical in nature and we are trying to work these and bring them into the action plan. A significant number of the actions contained in this plan are under the purview of other Departments so obviously we are trying to work and liaise with them to ensure we have key deliverable actions agreed right across government. We are taking this very seriously. We know our obligations in terms of the UN to ensure we have the highest level of standards in human rights right at the heart of business. I assure the Deputy that we are taking it very seriously. I had a very significant discussion with officials yesterday on foot of the Deputy tabling this question for this morning. I will ensure that the action plan is published as quickly as possible, that key performance indicators are attached to it, that there are deliverables, and that it is monitored. We need to get it right to ensure we can deliver it in a timely manner.
I thank the Minister. I would love it if the Minister could give me a date on that. Why? It is because we are talking about embedding respect for human rights, and protecting, respecting and remedying human rights. While we fail to do that, this is the report from Trinity College, which is now dated, in relation to failure to embed human rights. I could cite various examples. As I understand it, the ESB is still importing coal from north-east Colombia - I will not insult anyone by attempting to pronounce the names of the mines - despite well-documented human rights abuses associated with the actions of that business. We are importing that. Airbnb Ireland allows tourism-related businesses based in illegal Israeli settlements to use its platform to advertise their services. Front Line Defenders, a very respected organisation, has reported 401 killings of human rights defenders in 2022 compared with 358 in 2021. Imagine that we are comparing the numbers of deaths of human rights defenders while there is no plan of action.
It is this Government that brought forward the idea in the programme for Government to deliver on this because we take our human rights obligations very seriously. One can see that from all our actions in multilateral forums, particularly the UN. I met Volker Türk, the head of UN human rights, on many occasions in my last brief. We take very seriously our obligations.
With regard to the report, some of the areas are very technical in nature because new EU instruments have come on board that we have to respond to. Secondly, it is always very dangerous for a politician to come in and give a date when some of the actions are not under the purview of my Department. I cannot force other Departments to respond immediately.
The Minister might forward them-----
I will endeavour to come back to the Deputy with a timeline as soon as I can get a clear line of sight across government as to when we can deliver it. I do not want to come forward with a plan that I cannot deliver, or which does not have actionable points or delivery dates on it. That is the most important point that I want to have as a stamp of my Ministry.
7. Deputy Eamon Scanlon asked the Minister for Enterprise, Trade and Employment the number of jobs supported by Enterprise Ireland in Sligo and Leitrim in 2024; how this compares to the end of 2020 for each county; and if he will make a statement on the matter. [6671/25]
I congratulate the Minister, Deputy Burke, on his appointment, and his Ministers of State, and wish them the very best of luck for the future. I would like to ask the Minister about employment in our regions, and specifically if he will provide the details on how many jobs were supported by Enterprise Ireland in Sligo and Leitrim in 2024. Additionally, how does this figure compare to the end of 2020 for each of these counties?
I thank Deputy Scanlon for his kind wishes on behalf of myself and my Ministers of State, Deputies Smyth and Dillon. The number of jobs in Enterprise Ireland-supported companies in County Leitrim has increased by 67% since 2020, with 978 people now employed in the county by these companies. In 2024 there were 110 new jobs created in the county by Enterprise Ireland-supported clients, helping the county achieve 11% growth in 2024. In County Sligo, we have seen an increase of 19% in employment among Enterprise Ireland-supported companies since 2024. Employment now stands at 2,377 people among Enterprise Ireland-supported companies. There were 246 jobs created in Sligo in 2024 by these companies, which contributed towards 3% growth in the county during 2024. This growth was in line with the national average for Enterprise Ireland-supported companies where employment grew on average by 3% also.
I continue to emphasise the importance of regional development and the role of Enterprise Ireland in driving economic growth right across Sligo and Leitrim. I want to highlight the agency's efforts to provide businesses with the resources and the support they need to thrive, particularly in the areas outside the capital. By focusing on innovation, collaboration and sustainability, Enterprise Ireland aims to create a more resilient and competitive business environment in the north-west region. These initiatives reflect the broader commitment to fostering balanced economic growth right across Ireland, ensuring that all regions can contribute and benefit from the nation's prosperity.
I thank Deputy Scanlon for his question and assure him that we are doing everything right across government to ensure balanced regional development and make sure our regions grow; for example by supporting tertiary education, which is key in the north west, and by having many partnerships with industry to give the region the opportunity to grow and prosper.
I thank the Minister for his detailed response regarding the job support figures for Enterprise Ireland for Sligo and Leitrim. It is encouraging to hear about the growth in job numbers and the positive impact that targeted initiatives have had on our local economy since 2020. We know the economic landscape has undergone significant changes over the past few years and the support provided by Enterprise Ireland has been pivotal in fostering job creation and retention.
I appreciate the job growth figures the Minister has presented. Will the Minister elaborate on the specific initiatives or programmes being implemented by Enterprise Ireland to further support job creation in Sligo and Leitrim, especially considering the unique challenges faced by businesses in these regions?
I thank the Deputy for his question and for his advocacy on behalf of his constituency. Enterprise Ireland has established the advanced manufacturing unit in Sligo, which is very important. It is an innovation that is a key support to industry working in partnership. It is a huge advantage in terms of doing things that in many instances industry cannot.
On Enterprise Ireland and its wider strategy, last year we had over 67% growth in the regions. This is outside of the capital, which is very important. We are looking at key areas in sustainability and in artificial intelligence - there is a huge amount of opportunity contained in that area. We are working with the indigenous sector to enhance exports. We have seen a very significant growth in exports over recent years. We want to continue that growth through Enterprise Ireland and by working with so many good and valued companies in Sligo and Leitrim.
While the statistics are promising, will the Minister elaborate on the strategies being implemented to ensure this growth is sustainable and part of a long-term vision for economic development in our region? His insights into these matters will greatly aid us in understanding how we can further enhance support for Sligo-Leitrim's economic potential.
I would be happy to. We see four growth areas at this time. First is digital. We are trying, in line with the White Paper on enterprise, to get to 90% digital intensity by 2030. In healthcare, cell and gene therapy is a huge growth area, as well as other healthcare mechanisms. We hope to bring AI into that sphere, which will be key. In sustainability, we have had about 93 investments through IDA in its last strategy. That will be key to reducing our emissions by 35% by 2030. Customers of significant employers demand that. We see in the CSRD and other reporting requirements how important that will be. On semi-conductor activity, we are looking at establishing three large-scale sites to attract investment. The north west is a key area we will be looking at regarding the next Intel for Ireland. We need utility-rich strong sites that can reduce lead times and provide certainty for big employers and investors looking at our country.
8. Deputy Séamus McGrath asked the Minister for Enterprise, Trade and Employment the discussions that have taken place between the IDA and Cork County Council with regard to increasing the land available to the agency; and if he will make a statement on the matter. [6500/25]
I congratulate the Minister and Ministers of State on their appointments and wish them every success in the new roles. I will focus on the availability of land in Cork and the opportunity to develop enterprise there. Will the Minister outline the discussions between the council, the Department and the IDA to ensure there are adequate opportunities, land and sites available for growing enterprises in Cork?
I thank the Deputy for his warm remarks and his important question on Cork County Council. The ongoing replenishment of stock is essential to ensuring the portfolio remains fit-for-purpose and meets the evolving needs of the FDI, Enterprise Ireland and LEO client base. A ready supply of appropriately zoned land for development is required for IDA to fulfil its remit and continued success in attracting FDI to Ireland. IDA, therefore, maintains a focus on land banks to future-proof the ability of its property portfolio to support the project pipeline, most notably large-scale, capital-intensive projects which have significant regional and national economic impact.
IDA Ireland continually engages with key stakeholders and service providers, including Cork County Council, to ensure an understanding of IDA's land requirements and the availability of suitable lands for client investment across all activities and sectors as they arise. In this connection, the IDA has an extensive property footprint in many towns across County Cork, and there are currently 219 IDA client companies directly employing almost 50,000 employees in the city and county.
Given the importance of property availability to winning investments into regional locations, and owing to ongoing market challenges, IDA’s continued intervention in delivering and maintaining a portfolio of advanced property solutions across our regions to support investments remains paramount and is reflected in the new IDA strategy, which we launched yesterday. We are looking at having 23 new regional advance factory units, which will be very important, and three large-scale sites to attract investment. We are liaising strongly with Cork city and county councils to ensure we can have significant land banks to attract this investment.
It sounds like there is a great deal of background work going on. I will focus on one sector of enterprise. Cork County Council has had successful sites in which it supported smaller enterprises: Macroom E, for example, and a number of others across the county. As these smaller enterprises grow, they need additional space to expand. Enterprise Ireland and IDA's focus is international and large scale, so this group of businesses falls between two stools. They are not big enough for IDA or Enterprise Ireland and they have outgrown their facility in Cork County Council. A focus should be on these often indigenous organisations, whether they trade locally, nationally or internationally, to ensure there is a space for them. IDA should recognise that.
The Deputy raises a valid point and that is why we are launching in the coming weeks Enterprise Ireland's new strategy for the next five years. We need a stronger relationship with Enterprise Ireland and the IDA to make sites available to smaller indigenous enterprises which have grown significantly in recent years. I have raised this with the Department and my fellow Ministers. It is an area we will zone in on because there are significant smaller enterprises which have a land requirement, particularly in the light manufacturing sector. We will be doing work on that. IDA has assured me it is working with Enterprise Ireland to make land available should it be required. We have to do more in that space. It is important we focus heavily on our regions in the next Enterprise Ireland strategy, just as the IDA has. We will have a significant target in our indigenous base for Enterprise Ireland, building on the 67% of regional investments we have seen in growth in the past five years.
Tá sé fíorthábhachtach go ndíreofaí isteach ar riachtanaisí phobal na Gaeltachta agus comhlachtaí Údarás na Gaeltachta chomh maith. Tá an cheist cheannann chéanna le réiteach. Tá an t-údarás dírithe ar Gteic units i mBaile Bhuirne, i gColáiste Iosagáin agus mar shampla, i mBéal Átha an Ghaorthaidh. A similar situation arises in the Gaeltacht area with Údarás na Gaeltachta and the smaller enterprises it has supported in its gteic units. It does that in Gaeltacht areas across the country. Has a similar conversation been taking place with Údarás na Gaeltachta to ensure adequate lands are available for companies who outgrow the gteic units and similar situations?
I wish the Ministers well in the term ahead. I echo the sentiments of Deputy Moynihan in relation to IDA land in Offaly. We have suffered redundancies at Nelipac and Cardinal Health and it is pertinent to see acquisition of land to attract further IDA company investment to the county. There were three visits in 2023 and five in 2024. We need now to secure land in order to secure investment. I invite the Minister to the county to discuss with our local authorities progressing this further.
I would be happy to facilitate a meeting with Deputy Moynihan and to work on the land banks that need to be made available through Údarás na Gaeltachta or Enterprise Ireland for smaller agencies. It is something we need to improve upon. I would be happy to work with the Deputy in that regard. I do not have specific figures on the work carried out with Údarás but I will come back to the Deputy.
I worked hard with Deputy Clendennen to deliver a significant land bank in County Offaly. These issues are commercially sensitive, given the ongoing negotiations with IDA. I am acutely aware of the work the Deputy has done on Cardinal Health and the big challenge we have there. As a midlands Minister, I will be to the forefront in working with the Deputy on delivering high value jobs to the regions, building on the 54% outside of our capital city we saw IDA deliver last year - the figure was 67% for Enterprise Ireland. The future is bright with all the good work we will be doing.
9. Deputy Cathy Bennett asked the Minister for Enterprise, Trade and Employment the number of and value related to dual-use export licences granted to end users based in Israel, by quarter, since Q3 2023; and his engagements with Cabinet colleagues in relation to such. [6708/25]
I would also like to congratulate the new Ministers, especially the Minister of State, Niamh Smyth, from my constituency. Well done and congratulations to you all.
Will the Minister outline the total number and value of goods and services with military applications that have been sanctioned with Israel since the onset of its genocide in Palestine?
I congratulate Deputy Bennett. It is lovely to say "Deputy Bennett", having worked with her and known her well in Monaghan County Council. I am sure they are all incredibly proud of her down there. Well done.
My Department is the national competent authority with responsibility for export controls, including controls on defence-related exports and export of dual-use goods. Controls on the export of dual-use items are administered by my Department in accordance with Regulation (EU) 2021/821 of the European Parliament and of the Council setting up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items.
In 2023, there were seven licences issued with an end destination of Israel with a total maximum value of €1.14 million in quarter three and three licences were issued with a total value of €31.24 million in quarter four. In 2024, there were seven licences issued with a total value of €1.18 million in quarter one, ten licences with a total value of €20.59 million issued in quarter two, six licences issued with a total value of €8.57 million in quarter three and six licences issued with a total value of €33.93 million in quarter four.
So far in quarter one 2025, three licences have been issued with a total value of just under €427,000. The bulk of dual-use exports from Ireland, including those to Israel, are mainstream business ICT products, both hardware and software, such as networking, data storage and cybersecurity, etc. They are categorised as dual-use items as a consequence of the fact that they incorporate strong encryption for ICT security purposes.
My officials carry out an assessment of all applications, 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 will not be used for illegal purposes.
I understand the Department's position is that the officials provide a thorough risk-assessment to ensure that, in the Minister of State's own words, as far as possible, items are only used for their stated purpose. The Government has intervened in a case before the International Court of Justice where Israel is on trial for the crime of genocide. The Tánaiste and Minister for Foreign Affairs, the Fine Gael Party leader, has referenced revenge, deliberate starvation and war crimes committed by Israel. Does the Minister of State not believe it would be prudent for her to have responsibility for ensuring Ireland is certain we do not export any component that could be used in committing war crimes against Palestinian civilians?
At this time, when the House has rightly named Israel's actions in Gaza as genocide, and when the Tánaiste and Minister for Foreign Affairs speaks of Israeli war crimes, does the Minister of State, with certainty within her powers, believe "as far as possible" is an acceptable standard?
I assure the Deputy, even though I am only in the Department for a couple of weeks, that, working with the Minister, Deputy Burke, we are sure and we have very strong controls in place. As part of their assessment, my officials seek the views of the Department of Foreign Affairs in respect of all applications for export licences, including those with the end destination of Israel. Both my Department and the Department of Foreign Affairs review all dual-use export licence applications against the eight assessment criteria set out in the Council common position.
If there are any concerns that the goods exported will not be used for the end use or by the specified end user as detailed in the application or if the exporter does not provide enough information on the intended end-use for my officials to make an informed decision, the application for a licence is denied. In applying any export controls in a robust and transparent way, my Department ensures that legitimate business transactions by reputable Irish traders are not damaged in any way while also ensuring that exports of controlled goods are thoroughly risk-assessed in that context of ongoing conflicts, diversion of goods and humanitarian considerations.
In 2022, Ireland's dual-use exports to Israel amounted to €10.7 million, yet in the first eight months of the genocide, those exports ballooned to €32.1 million. Now, the Minister of State tells us that over the period of the genocide, seven licences have been approved from Ireland. At a time when Israel's economy is struggling, does the Minister of State not find this in any way suspect? What evaluations were carried out on risk of diversion or undesirable use of these exports and what were the findings? How many licences has the Department of Foreign Affairs expressed reservations on? How many have been refused?
I tabled a very similar question that is further down the Question Paper. I was taken unawares as the questions were not grouped. That is the Department's decision, but the two questions are on the exact same issue.
I have the most serious concerns about the increase, with seven times the amount of exports within a year. Could we get some explanation for that? How are the decisions made? Which licenses were refused? On what basis were they refused? Were licences refused in respect of exports to Israel? We are told about the ones that were given and we know they have increased exponentially, but what is the breakdown? How are the decisions made?
We are reassured that the decision is made in a robust manner. I have been here since 2016; I do not take reassurances. I certainly do not take them at face value when it comes to what Israel is doing in Palestine. The time of reassurance has gone. We need to know exactly how the decisions are made and how they are refused.
I thank the Deputies for their questions. They are very legitimate questions to ask. I am assured by the Departments - our own Department and the Department of Foreign Affairs - that they do a really robust risk assessment around those applications. If the officials are not confident or have any question marks over them, they refuse those licences.
Does the Minister of State have details on how many have been refused?
I do not but I will get that for the Deputy. I will get a detailed written reply on the issues the Deputies have raised. In fact, I might ask the Department to have a conversation with the Deputies on the legitimate questions they have raised today.
10. Deputy Shay Brennan asked the Minister for Enterprise, Trade and Employment the number of small and medium enterprises, SMEs, that have successfully applied for and received funding through the digital transition fund since its inception; the total amount disbursed to date; the steps his Department is taking to raise awareness about these digital support programmes among SMEs, particularly those that may be less digitally savvy; and given the goal of achieving 90% of SMEs at basic digital intensity by 2030, what additional measures his Department is considering to accelerate digital adoption among Irish businesses. [6682/25]
How many SMEs have successfully applied for and received funding through the digtital transition fund since its inception? What is the total amount disbursed so far? What steps is the Department taking to raise awareness of these digital support programmes amount SMEs, particularly those that may be less digitally savvy? In light of the goal of achieving 90% of SMEs at basic digital intensity by 2030, what additional measures is the Department considering to accelerate digital adoption among Irish businesses?
My Department established the digital transition fund as part of Ireland's national recovery and resilience plan with the objective of driving the digital transformation of enterprise in Ireland. The Minister, Deputy Burke, spoke earlier about the drive that is being made by the Department to ensure all businesses across Ireland reach those targets. The fund was specifically designed to aid the achievement of the high-level workstreams of Ireland’s national digital strategy, Harnessing Digital, and Ireland’s contribution to the EU digital decade targets as they relate to digitalisation of enterprise.
The target set out in the national digital strategy is that at least 800 businesses will be supported by 2026 under the digital transition fund. Good progress has been made towards achieving this target and, as of the end of 2024, a total of 539 companies have been approved for €45.2 million in funding for direct grant supports under the digital transition fund, of which 504 are SMEs. A total of 195 companies, of which 189 are SMEs, have already received funding to the value of €12.9 million.
My Department, together with the enterprise agencies, continues to make concerted efforts to raise awareness amongst businesses of the opportunities arising from digitalisation and the help that is available to them to assist them in digitalising their businesses. This was the rationale for the development of the grow digital portal, which my Department launched last summer. The portal provides businesses with a toolkit to help identify the opportunities that digitalisation offers them and points to the supports available to them. It has a case study catalogue with digital success stories showcasing examples of how traditional and locally trading businesses have embraced digital solutions to boost their operations. This is particularly important to help those less digitally savvy businesses.
Gabhaim buíochas leis an Aire Stáit, agus déanaim comhghairdeas léi on her recent appointment. I thank her for the very informative, worthwhile and important debate we had yesterday on this area, particularly around artificial intelligence.
What specific metrics is the Department using to measure the impact of the digital transition fund on SMEs, particularly in respect of their digital competitiveness? As we know, technology is moving very quickly. As we discussed yesterday, a lot of this is due to changes in AI and changes brought about by AI. Clearly, the fund is strategically very important and I hope there are plans to extend it beyond its expiry date in 2026. Will the Minister confirm whether this fund will continue beyond that date?
I thank the Deputy very much for his kind wishes and also for his important question. There is a range of supports to help businesses in digitalisation available under the digital transition fund through Enterprise Ireland, IDA Ireland and Údarás na Gaeltachta. In addition, the LEOs offer digitalisation supports for eligible businesses, including the digital for business initiative and the grow digital voucher. These direct-to-company supports are complemented by Ireland’s four European digital innovation hubs. These hubs serve as one-stop shops for businesses, providing access to technical expertise, innovation services and skills development.
Ireland is one of the most advanced EU member states in terms of digitalisation of enterprise and I am determined to maintain this leadership position. I believe we have the required range of supports in place to help our SME base to digitalise. However, awareness-raising and demystification of digital adoption is an ongoing task that is essential if we are to meet our 2030 target of 90% of SMEs at basic digital intensity.
I thank the Minister of State and very much welcome her commitment to the digitalisation of SMEs. I note that the fund is linked to the EU recovery and resilience facility and that this facility is not planned to be continued beyond 2026. It is vital that we in some way delink ourselves from that facility and that we continue to fund the vital growth of digitalisation within Irish SMEs. As we discussed yesterday during the very useful debate on AI, Ireland can and very much should be a leader in this space. It can only really achieve that status if we fund it correctly and give it the status it deserves.
I thank Deputy Brennan for his remarks. I take on board everything he said. As he pointed out, we had a very robust discussion yesterday on AI and how that is impacting businesses globally, not just nationally. I take his point on board. As the Minister, Deputy Burke, stated, there is a drive to bring all businesses into the digitalisation era and a commitment to have 90% of SMEs there by 2030. It is a big task but the Department and the Minister have put so many measures in place that it is hoped we can reach that target.
11. Deputy Paul Murphy asked the Minister for Enterprise, Trade and Employment if he will abolish subminimum wages for young workers; and if he will make a statement on the matter. [6496/25]
Will the Minister finally abolish the legalised discrimination and super-exploitation of young people in this country who are currently legally paid as little as €9.50 an hour, purely on the basis of their age? Will he abolish these subminimum wage rates whereby those under 18 can legally be paid less than the minimum wage? The can has been kicked down the road for years now. It is time to abolish these rates.
I thank Deputy Murphy for raising this really important matter. As he will be aware, the Low Pay Commission recommended the abolition of the subminimum rates in March 2024. The Low Pay Commission highlighted in its report that this is a complex issue. It stated that the Government will need to give the findings and recommendations detailed consideration and deliberation, and highlighted the need for the Government to take its own legal advice on this really important matter. I agree with the commission that this is a complex issue. Our Department is giving these findings and recommendations its full consideration. Our Department has commissioned an economic impact assessment of the commission’s recommendations. These recommendations were accompanied by a research report by the ESRI. While the study provides valuable information on the incidence and characteristics of subminimum employment in Ireland during 2022, it stops short of modelling the impact of making changes to youth rates in the here and now.
Recent significant increases in the minimum wage show the Government’s commitment to fair wages for low-paid workers in our economy, but it is also important to acknowledge the challenges being faced by the small and medium enterprise sector in recent years. We know the use of subminimum youth rates is largely concentrated in the accommodation, food and retail sectors and that these sectors have reported considerable cost pressures in recent times. It is important we give this issue the full care and the deliberation it requires, rather than rushing into a decision that could have unintended consequences for young people and employers. The Government will make a decision on these rates after the economic impact assessment has been completed and any required legal advice is available to us.
The Minister of State says we should not rush into a decision. It is two years since this Dáil passed a Bill that I brought forward to abolish these rates. The Government brought in a timed amendment to delay it for a year so the Low Pay Commission could report. The Low Pay Commission studied it with the ESRI study, as the Minister of State said, and it came out with clear recommendations. The Minister of State says he agrees with the commission that the Government needs to consider it. Does he agree with the commission's very clear recommendation that subminimum wage rates for employees of 18 and 19 years of age should be abolished no sooner than 1 January 2025? Similarly, the rates for those under 18 should also be abolished. The recommendation is absolutely clear. Is the Minister of State saying business costs are a consideration here? If he is, he is going against the recommendations of the Low Pay Commission, which make clear that would not stand up under EU law. The EU law on adequate minimum wages states that any exceptions need to have objective justification. Business costs and the Minister looking after low-paying employers does not count as an objective justification. He may well be in breach of the EU directive.
Gabhaim buíochas leis an Teachta. Certainly, it is a more nuanced issue than he is suggesting. It is really important that our Department compiles the economic impact assessment which will provide more up-to-date data. The previous Low Pay Commission and ESRI reports on the use of subminimum rates were back in 2022. We want to independently evaluate the economic impact. We also want to model the impact on making the changes to the youth rates on firms of different sizes and in different sectors, such as accommodation, hospitality and retail, and also within the regions. We also want to examine any potential unintended impact from making changes, such as an increase in unemployment of youth workers and also the possibility of young people exiting formal education in favour of entering the workforce. It is complex. It has been referred to the issues we need to assess. We have made substantial support available and given a commitment to support workers. We have a very strong record of introducing new workers' rights and we have also seen the introduction of many measures relating to the minimum wage, requests for remote working and statutory sick leave, as well as tips and gratuities which was a recent progressive initiative undertaken by the Government.
Where is the nuance? Will the Minister of State tell me why 18-year-olds should be legally paid 80% of the minimum wage? They cannot tell their landlord they will only pay 80% of the rent. They cannot give a supermarket 80% of the cost of their groceries. What is the objective justification for paying a young person less than the minimum wage purely on the basis of his or her age?
When is the economic impact assessment going to happen? The Department officials came before the committee in September and said they had started it - it was another exercise in kicking the can down the road - and it would be ready in six to nine months. Six months have now passed. When is it going to be ready? It is time to stop kicking the can down the road. The issue is not enormously complex. It is clear we now have an obligation under the EU directive on minimum wages to get rid of this because there is no objective justification for it. That is what the Low Pay Commission is saying. Instead, the Department is allowing itself to just represent the interests of some of the lowest-paying employers in the country - people who want to employ workers on less than the minimum wage. There is no objective justification for that. It is fundamentally unjust.
Go raibh maith agat. It is an issue I have raised with the Department in preparation for today's Oral Questions. We do want this economic impact assessment to be provided, evaluated and reviewed. As I said, we have made substantial increases in the national minimum wage. The current system for youth rates is a percentage of the full minimum wage. They have also seen an increase in recent times. We have also made progressive changes in policies impacting all workers across all ranges, including banning zero-hour contracts, enacting the tips legislation and learning from the pandemic around statutory sick pay. We have, therefore, undertaken substantial measures. However, we must also consider the real impact, cost and competitive pressures on certain sectors, such as in hospitality, retail and accommodation. This aspect needs to be factored in before we make any decision concerning the implementation or abolition of the subminimum youth rates. We will take this in the context of moving forward in the months to come.
12. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment for the up-to-date position on the implementation of the new AI strategy; whether this new AI strategy will reflect the fast moving pace of AI technology; and if he will make a statement on the matter. [6757/25]
Ar an gcéad dul síos, déanaim comhghairdeas leis an Aire Stáit. Many congratulations to the Minister of State on her appointment. I am delighted for her and wish her every success with the new role. AI is very much part of the present and future and the programme for Government commits to upgrading the national digital strategy to take into account the situation around AI and its possible future uses. Can the Minister of State give an outline of the up-to-date situation concerning the development of the strategy for dealing with artificial intelligence?
I thank Deputy Moynihan for the question and for his very kind comments. A refresh of Ireland's national AI strategy was published in November 2024. It takes account of the significant developments in AI technology and regulation that have happened since the 2021 strategy. The national AI strategy sets out a whole-of-government approach to putting the necessary enablers in place to underpin AI adoption in enterprise and public services, including a supportive innovation ecosystem, a secure data and connectivity infrastructure and policies to ensure the workforce is prepared for the impact of Al. My Department has a particular focus on delivering on the actions that relate to enterprise digitalisation and AI adoption, guardrails and building public trust. We are focused on driving AI adoption in small businesses with targeted supports through our agencies. Issues such as privacy, security and job displacement are just a few of the challenges that come with the increasing use of AI. It is crucial that we address these concerns proactively and work to ensure that AI is used for the betterment of society. That is why building public trust and putting the appropriate guardrails in place is a priority focus. I note in particular the aggressive timeline for implementation of the EU AI Act, which we are prioritising. We met the first deadlines on identifying national public authorities which supervise or enforce the respect of obligations under Union law protecting fundamental rights, including the right to non-discrimination in relation to certain high-risk uses of AI systems specified in the Act. As Al is a rapidly evolving technology, we will continue to review and refresh the strategy on a periodic basis.
I thank the Minister of State. Very often a whole swathe of concerns is expressed by people in the context of the debate around AI. These include from an ethical point of view, climate change concerns and a whole broad range. Equally, though, there is excitement regarding the opportunities existing here. One area I would like to focus on is ensuring another generation is empowered and in a position to know how to use artificial intelligence and make the best use of it. What level of engagement is there with the education system to empower people regarding the use of AI? Similarly, regarding businesses, very often there were previously trading online vouchers to encourage them to have an online presence. Will there be a similar situation to aid businesses to educate, train and empower their employees in the use of AI?
I again thank the Deputy for his interest in this area. We had a very good and robust debate last night on AI and its positives. We must always be cautious about the introduction of something like this technology. It is like the revolution of the Internet. We got that first and we were able to do it. This new technology, though, is going to be completely different because I think it is going to impact every aspect of our lives, from public transport to healthcare to education. Every walk of life will be impacted in some way. The Department itself is doing a great deal of work in terms of the schemes it is running. When I say that, I think about the CeADAR centre, which is out in UCD. It is a source of skills where a type of induction training can be provided to AI and apps to give people an insight into those areas. I am going to see if we could bring some of that into the Oireachtas to give our Members an opportunity to see how we could perhaps do a better job using AI in our constituency offices and things like that. There are many benefits to AI, but we are also conscious of the negatives to the technology. It is a balancing act, but the Department is doing everything it can to bring the population with it in terms of the introduction of AI.
The debate last night was very useful and a huge range of topics were discussed. One area I would like to focus on is the AI advisory council established last month with a view to providing independent expert advice to the Government. Can the Minister of State give an outline concerning the advisory council, how often its members have met and who they are meeting with? I ask this to get a flavour of their direction of travel. Are they, for example, meeting with education bodies to ensure that any advice and emphasis is also there from that perspective to empower a new generation?
I thank the Minister of State for the debate yesterday as well. Specifically, how many AI experts are employed in Government now? What efforts are being made in this regard on an all-island basis? We must very much have congruence between North and South in terms of regulation and how we go about maximising the potential of AI technology and where we are now.
We had an extensive conversation concerning the obvious dangers of AI but more so the positives, the innovation and productivity of the technology and its absolute necessity from an enterprise point of view. We also spoke about the fact that digital literacy is an issue. I agree with the last two speakers. It is very important that the advisory council is fit for purpose and the Government has in-house AI capacity. Beyond that, would the Minister of State also support having a special Oireachtas committee to deal with this issue? We must get to grips with AI and I am not sure we have all the capacity in this House necessary now. More needs to be done.
Would the Minister of State agree there is an extremely important role that can be played by local authorities and local enterprise offices, LEOs, in terms of accelerating the digital agenda? They have a relationship with their SMEs on the ground. I am conscious that many small SMEs do not have the requisite capacity and could benefit greatly from better engagement with local authorities and local enterprise offices.
Sin é. Glaoim ar an Aire Stáit.
I thank the Deputies for the broad range of those questions. The number of supplementary questions just goes to demonstrate the interest there is in AI and how it is going to revolutionise everything we do. The advisory council was raised by colleagues. It was established in January 2024. I had the pleasure of meeting its members and their leader, Dr. Patricia Scanlon, last week. All those council members are experts in their fields. Different industries are represented in the council, from legal to healthcare to technology to education and all of that. It is important to take a moment to thank those members of the advisory council for their work. It is completely voluntary and is to advise the Department and the Government. They are all experts in their fields. I thank them all very much.
Turning to the question about our LEOs, they could of course do a great deal in tapping into our SME business sector. All those working in those small and medium businesses are totally immersed in and committed to the job they are doing and generally do not have time or the capacity to focus on a new departure.
Our local authorities will work with LEOs along with the Department, which is currently giving lots of grants and vouchers for digital growth to try to support businesses to do that.
On the question about the committee, it is a very good idea to have a committee set up around this. Maybe it could be part of one of the other committees, but AI will be a very important issue in this Dáil term.
15. Deputy Thomas Gould asked the Minister for Enterprise, Trade and Employment the number of businesses in Cork that received the power up grant; the number of businesses that received the increased cost of business grant, ICOB, 1; and the number of businesses that wrote to him or his Department requesting assistance because of a mistake on their initial ICOB application preventing access to the Power Up grant. [6547/25]
19. Deputy James Geoghegan asked the Minister for Enterprise, Trade and Employment if he will provide an update on the roll-out of the power up grant to businesses that have not been able to avail of the support because of administrative issues; the number of businesses in Dublin 2, Dublin 4, and Dublin 6 that have availed of the grant to date; the total value of this uptake; and if he will make a statement on the matter. [6806/25]
20. Deputy Ryan O'Meara asked the Minister for Enterprise, Trade and Employment the number of businesses in Tipperary that applied for the power up grant; the number of the applications that were successful; the total value of the grants approved; and if he will make a statement on the matter. [6716/25]
What is the number of businesses in Cork that received the power up grant; the number of businesses that received the increased cost of business grant, ICOB 1; and the number of businesses that wrote to the Department requesting assistance because of a mistake that was made in the initial ICOB application, which then prevented access later on to the power up grant?
I thank the Deputy. I propose to take Questions Nos. 15 , 19 and 20 together.
In total, the increased cost of business and power up grant schemes paid out a very significant sum, totalling more than €400 million, to support SMEs throughout the country. This total of €400 million included €154 million in the first phase of ICOB, €90 million in the second phase of ICOB and €158 million through the power up scheme. The take-up rate for ICOB was very significant, with 68% of eligible businesses registering for the grant. To get payments to businesses before the end of 2024, the power up grant was aligned with the increased cost of business scheme. A business must have received the second ICOB grant and be in the hospitality, retail and beauty sectors to receive the power up grant.
The Deputies asked about three specific areas: Cork, Tipperary and Dublin city. In Cork, the first ICOB payment Cork City Council paid out was €9.2 million to 3,602 businesses. Cork County Council paid out €9.8 million under the first phase of the scheme to 5,533 businesses. On the power up grant, Cork City Council approved 1,773 businesses to the value of €7 million and Cork County Council approved 2,804 applications to the value of €11.2 million under the scheme. In Tipperary, 1,847 businesses registered for the power up grant and 1,803 businesses were approved for the second value of €7.2 million. In Dublin 2, 4 and 6, which fall under the remit of Dublin City Council, 3,845 businesses received power up grants to a total value of €15.4 million.
What has happened is that it seems a number of businesses made a mistake when they applied for the ICOB 1 grant. Due to that, some of them did not follow up for the second ICOB. When they went for the third grant, even though they were eligible for the power up grant, because they made a mistake at the start, they did not get it. Is there any chance the Minister will reopen that grant for people who qualified for it but made an initial mistake? I have contacted his office, as has Deputy Louise O'Reilly, who is our spokesperson on this. These are genuine businesses that need that money-----
We are way over time. Quickly.
----- and which fill the criteria. Will the Minister show a little common sense and maybe help them, because he has the ability to do so? These businesses need that support.
It is obviously critical that businesses get the support that they need and qualify for. We are working with the Department of public expenditure and reform on rectifying the issue relating to the misclassification. It is critical to demonstrate how much this Government is supporting our SME sector. The forthcoming programme for Government outlines changes we will be implementing in VAT and PRSI to support businesses trading through very significant challenges in terms of the regulatory burden that has been placed on them over recent years. We are there to support them. We will continue to grow our economy and employment numbers. Critically, and we launched the IDA strategy yesterday, we will see 550 new investments into regional Ireland over the next five years.
Will you reopen it for those who made an initial error?
We are working on the reclassification issue.
