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Wednesday, 17 Apr 2013

Written Answers Nos. 131-139

Legislative Programme

Ceisteanna (131)

Patrick O'Donovan

Ceist:

131. Deputy Patrick O'Donovan asked the Minister for Public Expenditure and Reform further to his reply of 20 February 2013 in relation to the Construction Contracts Bill, if he will consider the inclusion of a provision of project specific bank accounts as part of amendments which his Department are preparing; and if he will make a statement on the matter. [17947/13]

Amharc ar fhreagra

Freagraí scríofa

As noted in my replies of 20th February 2013 and also 27th February 2013 to PQs 9199/13 and 10194/13 tabled by Deputy O’Donovan, a range of security of payment options, including Project Bank Accounts were considered in the initial drafts of the Construction Contracts Bill and provision was made for devices such as bonds as part of the first draft of the Bill that was introduced to the Seanad by Senator Feargal Quinn. However such mechanisms were omitted from the current draft of the Bill in order to reduce the administrative and cost burden to the small businesses that make up a large proportion of our construction industry.

The key objective of the Construction Contracts Bill is to ensure that cash flows down the supply chain on all construction contracts. This is achieved by providing a statutory schedule of payments, prohibiting the use of ‘pay when paid’ clauses in construction contracts and, most importantly, it provides the means for subcontractors to enforce these rights; by suspending their labour and the provision of statutory adjudication. Given these provisions the requirement for security of payment reduces since the exposure of a subcontractor to non-payment is greatly reduced.

The Government Contracts Committee for Construction is currently reviewing the use of Project Bank Accounts in relation to the public works contracts and is expected to conclude that process shortly and report back to me on the matter.

EU Funding

Ceisteanna (132)

Barry Cowen

Ceist:

132. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the long-term funding implications of the change to the status of BMW regions in the February MMF agreement; and if he will make a statement on the matter. [12678/13]

Amharc ar fhreagra

Freagraí scríofa

On 8 February 2013 the European Council reached agreement on the EU’s budget for 2014-2020. The budget has to be agreed with the European Parliament and discussions are now taking place with the Parliament under the aegis of the Irish Presidency.

Despite an increase in Ireland’s overall Structural Funds allocation from the €901 million we receive under the current round to €979 million in the 2014 – 2020 round, the allocation for the Border, Midland and Western (BMW) Region was reduced. This is because the region no longer qualified as a transition region since its GDP per capita exceeded 90% of the EU average in 2007 – 2009 - the period used to determine the status of regions across the EU for the purposes of the Multi-annual Financial Framework (MFF) 2014 – 2020. This meant that the status of the BMW Region has changed from that of a “transition region” to that of a “more developed region” relative to other regions throughout the EU 27 Member States.

The Government was concerned that this change in status was likely to lead to a reduction in the BMW Region’s allocation from Brussels. In recognition of the special position of the region, the Government, in the recent MFF negotiations in February, was successful in securing for the region an additional €100 million and additional special allocations under PEACE IV and the Youth Employment Initiative. The focus on youth unemployment is something the Irish Government had been pressing for.

Work in my Department, in conjunction with the Regional Assemblies, has already commenced on the preparation of a new Operational Programme 2014-2020 for the BMW region, which will be submitted to the European Commission for approval later this year.

Croke Park Agreement Issues

Ceisteanna (133)

Micheál Martin

Ceist:

133. Deputy Micheál Martin asked the Minister for Public Expenditure and Reform if he will report on his role and that of his Department in the recent Croke Park negotiations; and if he will make a statement on the matter. [13595/13]

Amharc ar fhreagra

Freagraí scríofa

In December of last year, acting on behalf of Government, I extended an invitation to the members of the Public Services Committee of the Irish Congress of Trade Unions to enter discussions with public service management on a new agenda for reductions in the cost of delivery public services and substantial longer term productivity improvements and workplace reforms. The objective of these discussions was to secure agreement on measures to deliver savings of €1bn in the pay and pensions bill by 2016.

These discussions took place between public service management, which were led by senior officials from my Department, and representatives of the various relevant public service trade unions. The talks were facilitated by the Labour Relations Commission.

Throughout the negotiation process, I was regularly briefed by my officials and on 25th February last, I attended a plenary meeting with the parties to the discussions, at which the Labour Relations Commission tabled proposals for a draft Agreement.

The proposals have been the subject of consideration by the public service trade unions and their members over recent weeks and an outcome to that process is expected shortly.

Public Sector Staff Recruitment

Ceisteanna (134)

Micheál Martin

Ceist:

134. Deputy Micheál Martin asked the Minister for Public Expenditure and Reform the progress that has been made on the commitment in the programme for Government on opening principal officer appointments to external applicants; and if he will make a statement on the matter. [12333/13]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy is aware, there is a recruitment and promotion moratorium in place in the civil service, local authorities, non-commercial state bodies, the Garda Síochána and the Permanent Defence Forces.

Decisions in respect of recruitment are taken by reference to the business needs of the relevant organisation, the moratorium on recruitment and promotion, and any redeployment arrangements in place for the civil and public service.

The current situation is that appointments at senior level are already open to external applicants. It is already the case that for some grades, more than one third of appointments are offered to external candidates.

Proposed Legislation

Ceisteanna (135)

Micheál Martin

Ceist:

135. Deputy Micheál Martin asked the Minister for Public Expenditure and Reform if he will provide an update on the commitment in the Programme for Government to legislate for a reformulated code of laws, replacing both the Ministers and Secretaries Acts and the Public Service Management Act; and if he will make a statement on the matter. [12335/13]

Amharc ar fhreagra

Freagraí scríofa

In line with the Programme for Government commitment referred in the Deputy’s question, I am committed to bringing forward the necessary legislative changes or other reforms to meet the objective of ensuring greater clarity and certainty regarding the legal relationship between Ministers and their civil servants and the appropriate accountabilities that apply in each case.

I have asked the Government Reform Unit in my Department to carry out a review of the current accountability framework for ministers and civil servants set out in the Ministers and Secretaries Acts and the Public Service Management Act, 1997.

Work is now at a very advanced stage in my Department in finalising a consultation paper based on the outcome of that review. The paper examines the current legislative framework underpinning civil service accountability in these statutes, as well as the current administrative and organisational accountability arrangements in place. It also explores the international practice and developments in this area. The development of the consultation paper was also informed by discussions held in 2012 with a number of international and national experts as well as by discussions with senior officials at a small number of round table meetings.

I expect to bring this paper to Government shortly to seek approval for the publication of the consultation paper. It is intended that the paper should act as a basis for a process of wider consultation on the proposed reform options.

I look forward to hearing the views of the Deputy and other members of this House in the course of this consultation.

Public Sector Staff Recruitment

Ceisteanna (136)

Micheál Martin

Ceist:

136. Deputy Micheál Martin asked the Minister for Public Expenditure and Reform if he is satisfied that TLAC has been overhauled to include the majority of members drawn from outside the public sector as per the programme for Government; and if he will make a statement on the matter. [12334/13]

Amharc ar fhreagra

Freagraí scríofa

The Deputy will be aware of the extensive changes which I introduced in July 2011 in relation to the composition of the Top Level Appointments Committee (TLAC). There is now a majority of external members on the Committee, as well as an external Chairperson.

These changes are in line with our commitment under the Programme for Government. The appointees have been selected not only for their expertise in management and HR, but also for the new perspective they bring from outside the public service.

I am completely satisfied that overhauling TLAC to include the majority of members from outside the public service has been extremely successful.

Job Creation

Ceisteanna (137)

Seán Kyne

Ceist:

137. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation his plans to support companies based here in attracting Irish emigrants back to Ireland on account of the particular skills set such persons have acquired abroad which can be vital in assisting in the development of new divisions-units of companies here with a corresponding positive effect for job creation. [17983/13]

Amharc ar fhreagra

Freagraí scríofa

At a macro level the Government’s strategy is to re-build the economy and accelerate the transition to a sustainable, jobs-rich economy based on enterprise, innovation and exports. It is in this way that we will create the environment in which sustainable jobs will be created, living standards will be raised and Ireland will be regarded as an attractive location in which to live and work.

More specifically, engaging with the Diaspora to strengthen and form new relationships is a particular Government priority underpinned by the Global Economic Forum. For example, Enterprise Ireland and IDA Ireland’s Senior Management team are focusing on the roll-out of a number of joint initiatives, including marketing and events aimed at attracting entrepreneurs and start-ups to Ireland.

IDA Ireland engages with the Irish Diaspora working in multinational companies in its role to attract new Foreign Direct Investment (FDI) to Ireland and to build on the existing FDI base to support Irish management to win new business. The ability of the investor to source the very best quality people, with appropriate levels of training and experience, is a prime consideration and a real location differentiator. Attracting skilled Irish emigrants back to Ireland is an important component in creating this skill base. The “Succeed in Ireland” initiative to attract greater numbers of inward investors to Ireland provides direct financial incentives to people around the world to create employment in Ireland by making payments to people responsible for bringing sustainable jobs to Ireland.

Enterprise Ireland (EI) also plays a significant role in forging linkages with Ireland’s Diaspora. Under the Action Plan for Jobs 2012, EI initiatives include:

- A Global Irish Network of advocates was established to maximise the opportunities from Diaspora interest in Ireland and secure greater investment in Ireland.

- A €10m International Start-up Fund was established in 2012 and was complimented by a targeted marketing campaign, making greater use of existing networks in the IDA and the wider Diaspora. An Enterprise Ireland team has been extensively marketing this initiative. In 2012, twelve entrepreneurs were supported by Enterprise Ireland to establish their companies here. This campaign is continuing in 2013.

EI is also involved, in the establishment of www.itshappeninghere.ie, a website which features opportunities in Irish SMEs in the wider ICT sector and allows our Diaspora a full view of the potential opportunities for employment and advancement. The website brands the Irish indigenous ICT sector as innovative, dynamic and a great place to build an exciting career. In addition, EI sponsors/supports conferences to showcase particular sectors with opportunities. Such an example is the IN3 Medical Device 360o Conference which is taking place in Dublin this week. This is an international networking conference aimed specifically at promoting the Irish Medical Devices sector internationally.

The Action Plan for Jobs 2013 includes a number of actions which will build on the initiatives already underway under the Action Plan for Jobs 2012.

Business Regulation

Ceisteanna (138)

Seán Kyne

Ceist:

138. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation the supports available to small to medium sized enterprises in complying with regulatory issues and in acquiring finance in view of the fact that the provision of such support will enable such persons to concentrate on developing and expanding their business with a view to protecting existing jobs and creating new ones. [17988/13]

Amharc ar fhreagra

Freagraí scríofa

The Government recognises that small and medium sized companies are a key component of the Irish economy and the backbone of employment in Ireland. My Department and its agencies has already achieved a 25% reduction in administrative burdens on business, and continues to seek avenues to reduce burdens even further.

The High Level Group on Business Regulation, which is chaired by my colleague John Perry, T.D. Minister for Small Business, engages with business directly and hears first-hand about the issues affecting the Irish economy. The Group is currently progressing a number of priority of issues as part of its 2013 Work Programme.

An initiative which I believe has proven to be useful to business is the businessregulation.ie portal which was launched in June 2012. This portal arose from the need to communicate better with business. Its purpose is to help business, especially SMEs, identify the main regulations which affect their activities, to assist them in navigating through the complex regulatory landscape and to provide a centralised place for links to the relevant agencies and their guidance, tools and contact points. The portal has already had over 75,000 pageviews and more than 13,000 unique visitors, since launch, and publicity and awareness work is continuing during 2013, including by means of joint business events organised with the regulators and agencies included on the portal.

The Government is also currently working on an integrated licensing system to help SME retailers apply for all of their annual licencing requirements at a single time via a single portal. The new Integrated Licensing Application Portal for retailers will provide significant savings in terms of time and costs for businesses and entrepreneurs across Ireland through the simplification of the process for applying for multiple licences. This will help business competitiveness and will ultimately protect and create more jobs. The new licensing system will be developed for the retail sector in the first instance by the end of 2013 and rolled out to other sectors of the economy thereafter. It is one of the Government’s Disruptive Reforms in the Action Plan for Jobs 2013.

In relation to SMEs acquiring finance, one of the actions contained in the Action Plan for Jobs 2013 is to “promote awareness and understanding of the full range of Government supported funding programmes and incentives in place to meet the financing needs of the SME sector, including through online resources….”. To this end, the Department of Finance has produced a table of State financial supports. This table includes the Government body responsible for the financial support, a description of the support and a link to the relevant webpage. This table will be reviewed on an on-going basis and is available at http://banking.finance.gov.ie/wp-content/uploads/State-Financial-Support-for-SMEs.pdf.

The Government has set the pillar banks’ 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 bi-annual surveys of SMEs to assess credit demand and loan approval rates.

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.

Jobseeker's Allowance Payments

Ceisteanna (139)

Finian McGrath

Ceist:

139. Deputy Finian McGrath asked the Minister for Social Protection if she will support the case of a person (details supplied) in Dublin 9. [17783/13]

Amharc ar fhreagra

Freagraí scríofa

The person concerned met with her Case Officer on Friday 12th April 2013 and re-engaged in the Pathways to Work Programme. As a result, payment of full-rate jobseeker’s benefit has been restored from Monday 15th April 2013.

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