Written Answers Nos. 28 - 35
28. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which job creation through foreign direct investment and/or indigenous sources are in line with or ahead of projections in each of the past three years to date in 2013; if he expects to continue to meet the ambitious targets required in this regard to facilitate economic recovery; and if he will make a statement on the matter. [24385/13]
Amharc ar fhreagra2012 was a particularly good year for job creation in Agency-supported companies, with IDA client companies creating a total of 12,722 gross new full time jobs (6,750 net new jobs). The IDA client base in Ireland now employs 152,785 people, a level last recorded before the global financial crisis began in 2008. Meanwhile, clients of Enterprise Ireland (EI) created 12,861 gross new jobs (3,338 net new jobs - the highest net gain for Irish companies since 2006).
IDA Ireland’s concentration on attracting employment intensive services to Ireland is leading to the speedy creation of jobs. A significant proportion of investments in 2012 occurred in the area of services operations, particularly serving the Europe, Middle East and Asia Market. A notable feature of 2012 was the wide range of green field investments coming to Ireland. In total, there were 145 individual investments, of which 66 (over 40%) were from companies coming to Ireland for the first time.IDA Ireland has also completed the third year of its five-year “Horizon 2020” strategy and the latest results put the organisation ahead of target in meeting its goal of creating 62,000 direct jobs by 2014 from 640 new investments. Over the course of the first three years (2010-2012) IDA has secured 419 investments and has delivered gross job gains of over 36,000. IDA will continue to work towards achieving its target of creating a further 12,000 jobs this year as set out in the Action Plan for Jobs 2013.
The increase in terms of net job creation for Enterprise Ireland clients was primarily due to the strong export performance of Enterprise Ireland client companies which exceeded €16bn for the first time. In addition, more than 7,000 new job commitments were made by Enterprise Ireland clients in 2012, exceeding the target of 6,250 for the year. Enterprise Ireland is working with its clients to build on this success in 2013.
The Government is also building on this progress through the Action Plan for Jobs 2013 which includes 333 actions for delivery across all Government Departments and 46 Agencies and Offices. The Plan also includes seven landmark projects, or Disruptive Reforms, that the Government has identified as having potential to impact significantly on job creation. As with 2012, employment retention and creation will continue to be our primary objective in 2013. I am confident that we now have a structure in place that can deliver the type of actions needed to continue supporting the transition underway in our economy.
The number of jobs created and total employment in companies supported by Enterprise Ireland, IDA Ireland and the County and City Enterprise Boards (CEBs) for each year since 2010 is set out in Tables 1 to 3 accompanying this reply.
Table 1 showing total employment and new jobs created in IDA Ireland Client Companies in each of the years from 2010 to 2012
|
Employment Data |
2010 |
2011 |
2012 |
|
Total Employment |
140,281 |
146,215 |
152,785 |
|
New Jobs Created |
12,178 |
13,381 |
12,722 |
Table 2 showing the total employment and new jobs created in Enterprise Ireland Client Companies in each of the years from 2010 to 2012
|
Employment Data |
2010 |
2011 |
2012 |
|
Total Employment |
159,808 |
166,359 |
169,451 |
|
New Jobs Created |
10,987 |
14,023 |
12,861 |
Table 3 showing the total employment and new jobs created in CEB-Supported Companies in each of the years from 2010 to 2012
|
Employment Data |
2010 |
2011 |
2012 |
|
Total Employment |
32,994 |
32,614 |
33,430 |
|
New Jobs Created |
4,510 |
5,331 |
4,858 |
29. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the progress made to date on protecting employment of staff working on the UK loan book at Bank of America, Carrick-on-Shannon; and if he will make a statement on the matter. [24300/13]
Amharc ar fhreagraThe process regarding the sale of Bank of America’s (BOA’s) UK credit card businesses remains ongoing. The former MBNA Credit Card Processing facility in Carrick-on-Shannon now comprises of two operations. The first business, following the purchase by global management company Apollo of the part of BOA’s Credit Card portfolio which services the Irish Card customers, is a new operation called AvantCard, which employs approximately 250 staff, who transferred from BOA to AvantCard (Apollo) under TUPE regulations on March 13 2013. The second operation, servicing the UK card holders, remains in the ownership of BOA and employs approximately 250 people.
Apollo acquired the entire building in Carrick and leased back office space to BOA. BOA continues to look for a buyer for the remainder of the Credit Card book but none have materialised to date. IDA remains in contact both locally and at headquarters level with both BOA and Apollo/AvantCard, to monitor progress and provide assistance, as appropriate, with respect to reconfiguring the Carrick facility. My Department and IDA Ireland will continue to keep in close touch with the issue and will provide whatever assistance they can to seek to ensure a satisfactory outcome.
30. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation if he will detail for each various credit initiative developed by his Department, if each scheme offers a rate of credit above, below or equal to the commercial rate. [24445/13]
Amharc ar fhreagraI have established two targeted initiatives to support an additional flow of credit into the economy by filling gaps where specific market failures in the supply of credit to SMEs exists, namely: the Microenterprise Loan Fund and the Credit Guarantee Scheme.
Microfinance Ireland (MFI) was established as a private limited company with a Board of Directors, to administer the Microenterprise Loan Fund. The Directors set the interest rate to be charged on loans under the Scheme at 8.8% taking into account a number of factors including: prevailing market interest rates, the economic environment, specific risk factors and administrative overheads. The Deputy will know that lending to microenterprises is high risk due to the high failure rates with business start-ups, little or no track record, and no security available. Therefore, pricing of loans strikes a balance between the support of new start-ups and the erosion of the taxpayers’ investment in the Scheme.
The Credit Guarantee Scheme is administered through participating lenders (AIB, Bank of Ireland and Ulster Bank). The interest rate charged and any other fees and charges applied to any facilities are a commercial matter for the participating lenders. Their decisions are based on their own assessments of the risks. A Premium Rate of 2% is payable by the borrower to the State in return for the 75% guarantee. A rate of this nature had to be set to ensure the Scheme complied with EU State Aid rules and it was set at the lower end of the potential pricing spectrum.
31. Deputy Timmy Dooley asked the Minister for Jobs, Enterprise and Innovation if payment times by State agencies will be reduced in a way that improves cash flow to businesses; and if he will make a statement on the matter. [24413/13]
Amharc ar fhreagraPrompt payment for goods and services rendered is critical to the effective working of any economy and is an issue to which this Government is committed. The reduction in the number of late payments in commercial transactions is of vital importance to business, particularly SMEs and is one of the ten principles cited in the Small Business Act for Europe as a means to help SMEs to deal with the difficult market conditions currently being experienced. It is a principle to which this Government is also fully committed.
The Late Payment Directive which established EU law in the area of prompt payments was originally introduced in 2000 and was recast in 2011 to modernise the law in this area. The Recast Directive (2011/7/EU) came into effect across the EU on 16 March 2013. The issue of prompt payment is now covered in Irish law by the European Communities (Late Payment in Commercial Transactions) Regulations 2012 (S.I. No. 580 of 2012). My Department continuously promotes improved payment practices and monitors the operation of the Prompt Payment of Accounts Act, 1997 and the Late Payment in Commercial Transactions Regulations, 2012.
Under these Regulations, it is an implied term of every commercial transaction that where a purchaser does not pay for goods or services by the relevant payment date, the supplier shall be entitled to interest (late payment interest) on the amount outstanding. This legislation acts as a deterrent to late payment and as a driver for payment on time by establishing a clear expectation in law that payment will be made according to agreed terms.
In addition to legislating for prompt payments, since 2009, Central Government Departments have been improving their respective payment times and are now obliged to pay their suppliers within 15 days of receipt of a valid invoice. This 15 day prompt payment rule was introduced by the Government on an administrative basis and Departments are required to report Quarterly to my Department on their performance in meeting this target. The last full year report shows that in 2012, 93% of payments made by Government Departments, valued at €3.32bn, were paid to suppliers within 15 days.
On 2 March 2011, the 15 day prompt payment rule was extended beyond central Government Departments and rolled out to the Health Service Executive, the Local Authorities, State Agencies, and all other Public Sector Bodies, (excluding Commercial Semi-State bodies), in respect of valid invoices received, on or after, 1 July 2011. As part of this new extended arrangement, parent Departments are required to publish on their respective websites Quarterly composite reports covering those bodies under their aegis. The individual bodies covered by this arrangement are also required to publish their own Quarterly reports on their respective websites. These new reporting arrangements will ensure that Ministers will be able to monitor the performance of the bodies under their aegis and will enable them to address any issues with those bodies who are not meeting obligations in respect of prompt payments.
This Government continues to pursue work in this area which is critically important to the cash requirements of business. The Action Plan for Jobs 2013 is a key element in the Government's policy approach to rebuilding the economy and getting people back to work. It builds on recent achievements by driving the 15 day payment period across the public sector and enhances the ability for business to attach officially new payment requirements to relevant invoices. It will also deliver on enhanced working relationships with representative bodies to ensure that business is fully aware of developments in this area.
The Government has decided not to stop there and the Action Plan for Jobs 2013 contains commitments in respect of a Code of Conduct on Prompt Payments to improve cash flow for business and to take steps to enhance awareness of the need for prompt payments by all elements of business. These commitments are for delivery in the latter part of 2013.
32. Deputy Seamus Kirk asked the Minister for Jobs, Enterprise and Innovation if a shortage of appropriately skilled workers is causing vacancies to be remain unfilled in the informational technology sector; the way he believes this can be addressed; and if he will make a statement on the matter. [24410/13]
Amharc ar fhreagraThe ICT sector is of strategic importance to the Irish economy, in terms of both its contribution to exports and the number of high-skilled professionals employed. There is a growing demand for ICT skills, with employment in the Irish ICT sector increasing by around 7% in 2012. While new job creation is a contributor to demand for IT professionals, many vacancies continue to arise as a result of turnover and replacement, rather than expansion of demand.
Vacancies in the sector that are considered difficult to fill are estimated at about 1,800 positions. These positions are mainly for ICT professionals with several years’ experience. They include computing professionals, ICT networking specialists, ICT security professionals, telecommunications engineers, ICT project managers, ICT skills combined with Sales & Marketing skills and ICT Technical skills combined with foreign language proficiency. There is strong global demand for such skills. Such positions, which may be filled from domestic supply and inward migration, are taking longer to fill than they should.
Last year my colleague the Minister for Education and Skills and I launched the Joint Government - Industry ICT Action Plan: Meeting the High Level ICT Skills Needs of Enterprise in Ireland. This is a collaborative system-wide response across Government, state agencies, education and enterprise sectors aimed at building a pipeline of talented ICT graduates to sustain expansion and development of the sector and to support innovation and growth across all other sectors of the economy.
As part of the ICT Action Plan almost 1,500 places have been provided under two rounds of the ICT graduate Skills Conversion Programme since 2012. These programmes, which are designed and delivered in partnership with industry, are targeted at graduate jobseekers who wish to acquire honours degree level programming skills for employment opportunities in ICT.
More than 400 people have already graduated from the programmes and a further 300 are due to graduate before the end of 2013. In addition, almost 900 people graduated from ICT upskilling programmes in 2012 under the Springboard initiative and a further 600 are expected to graduate during 2013. The ICT Action Plan has helped raise awareness of employment opportunities in ICT generally and there have been further increases in demand for STEM (Science, Technology, Engineering and Maths) courses at full time undergraduate level.
Technology courses accounted for 20% of all honours degree level first preference applications through the CAO this year. The increase in demand from students for technology courses, including a 50% increase in first preference applications for computing over the past 5 years, is a very positive step in building the future supply of ICT graduates.
While increasing the supply of high-level skills from domestic sources is vital, there continues to be a need to supplement Ireland’s skills stock through Employment Permits. The number of permits issued to persons in the ICT sector continues to grow, accounting for 46% of all new permits issued in 2012. In terms of occupations, professionals accounted for almost 60% of all new permits and of these the majority were for IT roles.
The 2013 Action Plan for Jobs includes significant refinements to the employment permits system including new policies and changes. These are designed to attract the skills we require to complement initiatives in the education and training sectors so that Ireland can build its supply of high-level ICT skills and enhance its reputation as a location with a secure supply of skills and talent. The demand for ICT skills is expected to remain strong based on recent announcements by both foreign-owned multinationals and indigenous companies in the ICT sector and across other sectors of the economy.
33. Deputy Caoimhghín Ó Caoláin asked the Minister for Jobs, Enterprise and Innovation if he will confirm that all sites under the management of Enterprise Ireland and the county enterprise boards have access to affordable high speed broadband at rates in excess of 100mb. [24455/13]
Amharc ar fhreagraThere are 10 sites in Ireland directly managed by Enterprise Ireland. The Agency’s offices in Dublin and Shannon are currently connected to broadband in excess of 100Mb. The eight other regional offices are currently connected to broadband at a speed of 10Mb. All Enterprise Ireland sites in Ireland have the capability of being connected to broadband in excess of 100Mb and up to a maximum of 1000Mb. The current arrangements are sufficient for the agency's business needs.
The 35 County and City Enterprise Boards (CEBs) are autonomous bodies, established by statute under company law. Accordingly, CEBs make their own individual decisions on the level of broadband speed necessary to deliver their services to their clients, taking account of the availability and cost of broadband services in the locality, and the business needs of their clients. As with other service contracts, the provision of broadband services are subject to public procurement procedures aimed at maximising value for money.
34. Deputy Pádraig Mac Lochlainn asked the Minister for Jobs, Enterprise and Innovation if he will detail the way he intends to fund LEO’s to ensure that areas with the greatest need for job creation receive the greatest support and resources. [24447/13]
Amharc ar fhreagraMy vision, and my clear intention in rolling out the new Local Enterprise Office infrastructure, is to ensure that the operating environment in which State support is delivered to the micro and small business sector facilitates and promotes the creation and maintenance of employment across the regions. A key element of this new structure will be the consistent application of policy across all Local Enterprise Offices (LEOs) from the evaluation of applications to the spending of budgets allocated. The LEOs will be underpinned by a robust Service Level Agreement (SLA) agreed between Enterprise Ireland (EI) and each Local Authority (LA) which sets out protocols relating to budgets and project evaluation and approval. I published the SLA on Monday last and it is available on my Department’s website at http://www.djei.ie.
Upon the dissolution of the CEBs, exchequer funding will continue to be secured by my Department. The allocation will be delivered by the LEOs within the Local Authority, on my behalf, overseen by Enterprise Ireland. Budgets will be allocated on an annual basis under the existing Measure 1, Measure 2 and administration (pay and non-pay) headings, and the funding will be monitored using the agreed SLA in each Local Authority. The on-going drawdown of budgets by LEOs will be contingent on reaching agreed targets.
Enterprise Ireland, through its Centre of Excellence, will have a key role in enhancing the LEO’s services and supports, and its functions include the development of standardised financial and non-financial support instruments. The highest level of corporate governance will be applied and in order to ensure that LEOs are delivering best practice supports for entrepreneurship, research into international programmes will be carried out in conjunction with the evaluation of programmes run by LEOs.
A series of metrics have been developed in conjunction with the County Enterprise Board Network (CEBN) and the City and County Managers Association (CCMA) and form part of the Framework SLA which I published on Monday last. These metrics will be tailored to suit the particular needs of each LEO, and will be included in a separate local Enterprise Development Plan. This local plan will addresses the development needs of the small and micro-enterprises in each local area.
Over time, the funding allocation and the allocation methodology will be reviewed by my Department and EI to ensure that opportunities for business development and job creation are maximised and that value for money is being secured across the LEOs. Such reviews will be primarily informed by the achievement of targets and performance metrics that meet local needs. It is envisaged that a competitive element to budgetary allocation will be developed and introduced over time.
I am confident that this reform will bring about a new level of engagement and interaction at both national and local level in relation to enterprise support and economic recovery and growth, and will result in an enhanced, more consistent and coherent set of enterprise supports with positive effects in terms of start-up numbers and increased employment.
35. Deputy Luke 'Ming' Flanagan asked the Minister for Jobs, Enterprise and Innovation the way the proposed maximum financial award for the new structures being reduced by half to €40,000 reduces red tape and increases competitive advantage; the way the proposed maximum award at local level of €40,000 will improve access to funding for start up and indigenous enterprises in view of the fact that these awards are no longer locally based which essentially creates the same delays being faced by small and medium enterprises in accessing bank finance as all decisions are made nationally; and if he will make a statement on the matter. [24361/13]
Amharc ar fhreagraI wish to reassure the Deputy that there will be no reduction in the maximum grant of €80,000 for financial assistance to projects. The ultimate aim of the reform of the existing micro and small enterprise support structures is to create an enhanced and integrated national micro-enterprise support model designed to deliver tailored supports to the highest standards, benchmarked by Enterprise Ireland and delivered in partnership with the Local Authorities. With enabling legislation, Enterprise Ireland (EI) will be given responsibility to deliver a high quality local enterprise support system through Local Enterprise Offices (LEOs) in Local Authorities areas.
All projects being considered for financial support will be evaluated by a locally appointed Evaluation and Approvals Committee, and all projects under €40,000 may be approved by this Committee in line with overall Government policy for supporting enterprise development. All projects over €40,000 will be evaluated and, if endorsed by the local Evaluations and Approvals Committee, will be referred to the Enterprise Ireland Jobs Expansion Fund Committee for final approval. Projects seeking approval in excess of a cumulative €80,000 over a 3 year period will also be approved by Enterprise Ireland in the same manner.
Only a very small number of projects per annum exceed the €40,000 threshold. These are likely to be the kind of projects which are considered to have high growth and export potential and fall into the progression pathway for companies seeking further support measures from Enterprise Ireland.
I believe that the €40,000 threshold for local approval is seen as an appropriate tiering of the State’s financial support instruments, and simultaneously ensures that clear progression pathways for support are established for businesses, as outlined in the Government decision to establish the LEO Network. Finally, in line with the terms of the Framework SLA, the approvals threshold will be reviewed in July 2014.
