Written Answers Nos. 23-30
23. Deputy Brendan Smith asked the Minister for Jobs, Enterprise and Innovation the progress that has been made in negotiations with the professional bodies in relation to the provision of advance price quotations; and if he will make a statement on the matter. [3342/13]
Amharc ar fhreagraUnder the 2012 Action Plan on Jobs, with a view to increasing price transparency by encouraging all professionals (accounting, taxation, legal etc.) supplying the business sector and consumers to provide price quotations in advance, the National Consumer Agency was tasked with carrying out the following actions:
- Conducting market research and liaising with business representative groups to compile and prioritise a list of professions where sourcing of fees is currently an issue; and
- Commencing work with representative bodies with a goal to make standard fee lists available for routine services to both consumers and small businesses.
The Agency commissioned independent market research to identify professional services where sourcing quotations was an issue for small businesses. The research also aimed to identify any other issues or difficulties associated with obtaining quotations. One of the main findings of the research was that a significant number of small businesses do not seek quotes in advance when dealing with professions or indeed experience difficulties in obtaining quotes when seeking services from providers in certain professions. Among the professions identified as posing difficulties for small business in obtaining quotations were solicitors, banking, accountants and insurance.
Arising from its research, the Agency apprised the relevant representative business groups of the research findings and in particular the finding that a large number of small businesses do not seek quotes in advance when dealing with professions.
In parallel, but as a separate exercise, the National Consumer Agency has carried out a number of initiatives in the area of price display. Included in these initiatives was an agreement with the Dental Council in relation to a format of price display by dentists by means of a Code of Practice which makes it mandatory for dentists to display their private fees for certain treatments in a place where patients can read it before consultation. A standardised format was agreed in April 2011 and took effect as a regulatory requirement as part of their Code of Practice on June 1st 2011.
As regards the medical profession the Agency engaged with the Irish Medical Council and the Irish Medical Organisation in relation to the display of prices by doctors, following which the IMO issued guidance to its members advising them "to prominently display a price list for a range of standard consultations". The Medical Council has advised that the price list will be considered for inclusion in the revised Guide to Professional Conduct and Ethics for Registered Medical Practitioners.
Following a survey of child care facilities, the Agency engaged with the representative body in that sector to progress a standardised price display format for its members to display in a prominent location on their premises. A format was agreed with the child care body and introduced in October 2012.
As regards legal services, which the NCA’s research found to be the profession in respect of which customers had the highest level of difficulty in accessing quotes, the Agency engaged with the Law Society to explore initiatives which could be undertaken to improve transparency in the solicitor profession in terms of its accessibility by both consumers and SMEs. Among the initiatives discussed with the Society was the introduction of standard templates for consumers seeking a quote for three common services such as making a will, obtaining a grant of probate and a conveyance. The Agency is hoping to conclude the discussions with the Society in relation to the possible introduction of standard templates shortly.
Aside from the foregoing initiatives of the National Consumer Agency, it is also essential that consumers and businesses both embrace their own responsibilities to achieve the best value for money, through for example, actively seeking quotations from service providers. The research carried out by the Agency shows that whilst there is some evidence particularly in relation to consumers being more price conscious and actively shopping around for value, a number of businesses, particularly small businesses, need to embrace their responsibilities in this area much more proactively.
24. Deputy Robert Troy asked the Minister for Jobs, Enterprise and Innovation the uptake to date of the credit guarantee scheme; and if he will make a statement on the matter. [3344/13]
Amharc ar fhreagraThe Credit Guarantee Scheme went live on Wednesday 24th October. At this stage, the number of approved guarantees on Tuesday 22nd January is 10, which amounts to total credit facilities of €1,117,000 being provided to companies who otherwise could not avail of bank credit.
Bank of Ireland, AIB and Ulster Bank are participating in the Scheme. The scheme has been designed to address market failure affecting certain SMEs on the margins of commercial lending decisions, who, because of a lack of collateral or because of the sector they operate in, face difficulties in accessing traditional bank credit.
The Department and the Operator are in regular contact with the participating banks to improve take-up of the scheme; however, the Deputy will be aware that the Scheme will be demand-led. Potential borrowers are being advised to contact the participating banks directly. The Department will of course keep a close eye on developments in respect of the scheme as matters unfold.
In addition to the Credit Guarantee Scheme, the Microfinance Fund, the Innovation Fund Ireland (IFI), Development Capital Schemes and the specialist NPRF funds for the SME sector are helping Irish companies access credit in the current difficult environment.
All of these Schemes form key components in the suite of initiatives aimed at ensuring the flow of credit and other financing to SMEs to sustain employment and create new jobs.
25. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation if he is satisfied that the small and medium enterprise sector is accessing the credit it needs; and if he will make a statement on the matter. [3321/13]
Amharc ar fhreagraI am acutely conscious of the extreme problems which SMEs are experiencing with respect to credit. International surveys show demand in Ireland is largely the same as in other EU countries, but refusal rates are highest in Ireland. The data on new credit from the banks is particularly disappointing. We need a transformation in our banks from the old model based on property and commission earning, to a new one based on genuine relationship banking aligned to the needs of an SME sector seeking to break into new foreign markets.
The Government have set the pillar bank lending targets so that they rise incrementally with expected demand, with targets of €4bn in 2013, increased from €3.5bn in 2012. Both banks met the targets for 2012. To ensure information on the demand side is accurate and up to date, the Department of Finance continues to conduct biannual surveys of SMEs to assess credit demand and loan approval rates.
Work on facilitating access to finance will remain a priority in the context of the forthcoming Action Plan for Jobs 2013. As the Deputy will be aware my Department has recently introduced two targeted schemes to support an additional flow of credit into the economy namely the Microenterprise Loan Fund and the Credit Guarantee Scheme. Other initiatives assisting business in this respect include the Development Capital Fund, Innovation Fund and specialist NPRF funds for the SME sector.
My Department is working closely with the Department of Finance and the Credit Review Office to evaluate evidence on credit availability and to ensure that the amount of credit flowing to the SME sector is maximised to facilitate sustainable job creation and retention.
In October 2012, the Government commissioned a review of the Credit Review Office (CRO), in relation to the current operation, functions and supports provided by the CRO to meet the overall objective of determining whether SMEs are getting the support on bank lending they require. Officials are currently looking at how to implement changes to the CRO regime, in line with the recommendations of the report.
An SME Funding Consultation Committee, chaired by the Department of Finance meets regularly to examine the various issues in relation to SME credit, and to identify further actions that can be taken to address the difficulties. Officials from my Department participate on this Committee, and a work programme for 2013 is currently being finalised.
26. Deputy Dessie Ellis asked the Minister for Jobs, Enterprise and Innovation the views of representatives of the small to medium sized enterprise sector regarding his plans to develop LEOs merged with local authorities. [3241/13]
Amharc ar fhreagraThe micro and small business sector is central to Ireland’s overall economic recovery and future growth. The purpose of restructuring the current model for the delivery of State supports to that sector is to rejuvenate and enhance the national model so as to ensure that the micro and small business sector is properly positioned to be a lead player in relation to job creation and to the economic recovery process.
In conjunction with the launch of the Action Plan for Jobs 2012 a series of seminars were held across the Country at which I met with many representatives of the small business community. I also attended the Advisory Group on Small Business (AGSB), and met subsequently with individual representatives of that Group, all of which afforded me an opportunity to set out my vision for the LEOs and to elicit their views on how the new model should be structured.
In addition, I launched a public consultation process last November to seek as broad a range of views as possible on how the reform the national micro and small business support infrastructure could best be implemented. The closing date for receipt of submissions was originally 19th December 2012 but this was extended to 18th January 2013, because of the level of interest. Over 80 submissions were received and these responses will inform and influence the final shape of the LEOs and the services that the LEOs will provide. While acknowledging that there will be differences of opinion in any fundamental restructuring of Government supports, most submissions received made positive suggestions on how the new infrastructure could best be established. Given the huge response to the consultation it will take some time to review and distil the submissions. All submissions received will be published on my Department’s website in due course.
27. Deputy John McGuinness asked the Minister for Jobs, Enterprise and Innovation the number of indigenous companies that have been approved for support under the development capital scheme; the amount of capital that has so far been drawn down; the number of jobs created by companies in receipt of this capital; and if he will make a statement on the matter. [3336/13]
Amharc ar fhreagraThe Development Capital Scheme is aimed at addressing a funding gap for mid-sized, high-growth, indigenous companies with significant prospects for jobs and export growth. Initially, the Government allocated €50 million of exchequer funding with the intention of leveraging a further €100 million of private sector investment.
In April last year, I launched an 'expression of interest' process inviting Fund Managers to submit proposals to Enterprise Ireland for commitments under the Development Capital Fund Scheme. This expression of interest process closed last Summer. Following an extensive due diligence process, the Board of Enterprise Ireland at its December meeting approved a number of commitments to Fund Managers, in principle. These Fund Managers are now in the process of fund-raising and/or closing their funds, allowing them to commence investing in Irish companies. The timeline for this process is driven by the private sector.
The funds will be managed by private sector fund managers who will make investment decisions in the context of an agreed fund investment strategy. The Scheme was established to create funds that would invest between €2 million and €5 million in medium sized established companies by way of equity, quasi equity and/or debt.
In December 2012, during the Budget debates, I announced that the Government would extend the original scheme and allocate an additional €25 million to the Scheme. This allocation is targeted to leverage a further €50 million from the private sector over the duration of the scheme, making a total of €225 million in funding available to mid-sized indigenous firms with significant prospects for jobs and export growth.
These Funds will be established and announced in the near term, and the fund managers will then commence investment. It is forecast that approximately 50 companies will receive investment to support their growth strategies.
At this point no moneys have been drawn down and it will only be following a period of investments that my Department will be able to assess the impact on job creation.
28. Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation his plans for enhancing trade agreements between the EU and other countries and trade blocs during Ireland's Presidency of the European Council; if there are specific trade agreements under discussion at the moment, and if so, with whom; the expected benefit from concluding such agreements in the next six months; and if he will make a statement on the matter. [1656/13]
Amharc ar fhreagraThe EU is of huge significance in terms of global trade and investment. It is the largest exporter and source and recipient of foreign direct investment. Consequently, under Ireland’s Presidency of the EU, we attach great importance to promoting the EU’s external trade agenda. The overarching theme of the Irish Presidency will be the contribution of trade to growth, jobs and economic recovery. If, as is expected, 90% of economic growth by 2015 will occur outside the EU, we have an imperative to capture the impact of this expansion for EU citizens, workers and business. In 2011 Ireland exported €173 billion in goods and services (€136bn to Q3/2012, an increase of 6.18% on the corresponding figure for 2011), while total trade generated by the economy was just over 130% of GNP – one of the highest ratios in the world. This underlines the importance of trade and exports to both economic recovery and job growth in Ireland and across the EU.
Two of the most significant trade agreements that will be progressed during the Irish Presidency involve the transatlantic economy. Free trade negotiations are underway and well advanced with Canada. Subject to the advice of a specialist group it might be possible to move forward with a free trade agreement between the EU and the U.S.
EU – Canada
The importance to the Irish economy is emphasised by the fact that in 2011, total trade between Canada and Ireland was €2.2 billion. In addition, merchandise exports to November 2012 were €740m, representing an increase of 32% over the corresponding figure for 2011. The EU-Canada Comprehensive Trade Agreement (CETA) negotiations are nearing a conclusion. Throughout the negotiations I have consistently emphasised to the EU Ireland’s primary objectives in any trade agreement with Canada. These include both offers and requests to Canada in the agriculture sector, especially the beef sector, as well as other important areas such as intellectual property, investment, services and public procurement.
EU-US
Discussions are underway about the possibility of opening free trade talks with the U.S. Ireland’s EU Presidency will prioritise these discussions and encourage other Member States to give the Commission a negotiating mandate to start talks.
Improving EU-U.S. trade and investment arrangements in as many ambitious areas as possible, including services and regulatory alignment would be an exciting and worthwhile project from which Ireland stands to benefit significantly. The transatlantic economy generates $5 trillion in total commercial sales a year and employs up to 15 million workers. It is the largest and wealthiest market in the world, accounting for three-quarters of global financial markets and over half of world trade and world GDP.
Other Free Trade Agreements
We will also seek to achieve further progress across a range of Free Trade Agreements (FTAs) currently under negotiation including with India, Malaysia and Vietnam. The trade aspect of an agreement with Singapore has been finalised and we look to advance the agreement’s investment chapter during our Presidency so that the whole trade agreement can be finalised as soon as possible.
We are also seeking to make important progress on FTAs with fast growing markets in Asia such as Vietnam and Malaysia as well as with the countries of the Eastern Neighbourhood (Ukraine, Georgia, Moldova, and Armenia). Talks on these are at various stages of maturity.
Trade talks that have yet to start include those with Japan and Morocco, the latter economy being part of the EU’s Southern Neighbourhood. These are expected to commence shortly and very likely during the Irish Presidency. A trade agreement with Japan would be especially attractive for our exporters as that economy is both prosperous and technologically advanced. In other words an attractive market for our high value added and sophisticated exporters.
We are also seeking progress in developing the EU’s trade and investment relationship with China following its change in leadership later this year. This will include preparatory work on a possible investment agreement with market access provisions. Negotiations on this, however, are unlikely to start for some time yet.
30. Deputy Seán Conlan asked the Minister for Jobs, Enterprise and Innovation if he will set up a task force to tackle the unemployment problem in counties Cavan and Monaghan over the past number of years; if he will evaluate and identify investment opportunities in counties Cavan and Monaghan in view of the lack of investment by the Industrial Development Agency over the past decade; and if he will make a statement on the matter. [3178/13]
Amharc ar fhreagraMy Department and its agencies are working together to address the unemployment problem that is currently experienced in counties Cavan and Monaghan by implementing the Government’s Action Plan for Jobs which aims to create 100,000 net new jobs over the period 2012 to 2016.
IDA Ireland has statutory responsibility to attract Foreign Direct Investment (FDI) to Ireland. At the end of 2012 there were 5 IDA Ireland supported companies in Cavan employing 1,000 people with 6 IDA Ireland supported companies in Monaghan employing 350 people. In accordance with its Horizon 2020 Strategy, IDA Ireland continues to engage with these client companies in order to transform the existing FDI base with a view to developing, retaining and growing employment opportunities.
IDA Ireland has assured me that it will continue to promote Cavan and Monaghan as part of its marketing efforts, in response to specific client queries and also on an opportunistic basis for the purpose of winning FDI projects for the two counties. The Agency has indicated that, in seeking to achieve this objective and the broader goal of securing new FDI projects for Ireland in a very competitive global environment, the concept of scale is crucial. Leading global corporations require access to Metro regions which have a significant population pool, access to qualified talent, world standard physical and digital infrastructure coupled with the availability of sophisticated professional and business support services. Ireland has only one such Metro Region, the Greater Dublin area, so, in order to achieve balanced regional economic development, the Agency prioritises the marketing of its Gateway locations within each Region as the locations of critical mass and highlights the opportunities provided by other locations on an opportunistic basis, which are within commuting distances of these Gateways. With continuing enhancement and improvements in physical and digital infrastructure, an FDI project secured for one Gateway Economic Region has a positive impact on other Gateway Economic Regions and their surrounding areas. Recent announcements by PayPal and Prometric, which will create a total of 1,100 jobs in Dundalk, and by Yapstone to create 120 jobs in Drogheda, will have a positive economic impact, both directly and indirectly, on Counties Cavan and Monaghan.
IDA Ireland has assured me that it will continue to market the North East Region for new inward investment through its Gateway of Dundalk, in line with the Government’s National Spatial Strategy, and to work closely with its 34 client companies in the North East Region that currently employ 3,200 employees. During 2012, as part of its marketing activities, IDA Ireland began an online marketing initiative, “Connect & Invest”, to showcase the unique attributes of individual regions to international clients and this initiative will continue to be implemented in 2013.
Conscious of the current challenging economic circumstances that we must address, IDA Ireland is actively considering opportunities as to how to leverage its property portfolio in order that additional investment and employment opportunities can be realised in the regions, including Cavan and Monaghan.
