Written Answers Nos. 285-293
285. Deputy Eoghan Murphy asked the Minister for Jobs, Enterprise and Innovation his concerns relating to accountancy firms which are able to operate outside the supervision of the Irish Auditing and Accounting Supervisory Authority, as detailed in a recent article published by Chartered Accountants Ireland on 4 December 2013 (details supplied). [1080/14]
Amharc ar fhreagraOnly a minority of Member States of the European Union regulate all accountants by means of legislation. The majority of Member States regulate more specialist roles within the accountancy profession as is currently the case in Ireland and the UK.
Regulation of a profession or professional activity is subject to European regulations concerning mutual recognition. The future Professional Qualifications Directive (expected to enter into force this year) will require Member States to provide justification for the reasons for each regulated profession in the country.
There are varying perspectives on both sides of the debate regarding the regulation of the term “Accountant”. In view of this, I have asked my officials to re-examine the issues involved and a public consultation on this matter will take place over the coming months.
I am aware that other unregulated professions dealt with the same issue by actively advertising to consumers the benefits of dealing with members of professional bodies only. The professional bodies may wish to consider raising public awareness through media advertising or through the contacts, websites and professional networks of their large membership base.
286. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to a legal opinion produced by a person (details supplied) this year which confirms that efforts by the IASB to drop prudence, the safeguard against overvaluing bank loans, from the accounting framework was not endorsed by the EU and is, therefore, contrary to EU company law; and if he will make a statement on the matter. [1710/14]
Amharc ar fhreagra287. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation if he is satisfied that under Irish company law, banks must not overstate the value of loans in their published accounts; and his views on the practice of Irish banks which claim they are not allowed under IASB rules to recognise expected losses on certain loans. [1711/14]
Amharc ar fhreagraI propose to take Questions Nos. 286 and 287 together.
I am aware of the legal opinion to which the Deputy refers. The application of international accounting standards is provided for in the circumstances set out in Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 (the “IAS Regulation”). The IAS Regulation which sets out the adoption procedure for these international accounting standards does not provide for any adoption procedure as regards the Conceptual Framework, and, accordingly, this does not form part of EU law. The issue, therefore, of the omission of prudence from the IASB Conceptual Framework being contrary to EU company law does not appear to arise. However, ultimately it is for the courts to determine if a matter is contrary to the law.
International Accounting Standard 39 (IAS 39) “Financial Instruments: Recognition and Measurement”, as adopted by the EU requires an “incurred loss” approach to what it terms the “impairment and uncollectability of financial assets measured at amortised cost”. Paragraph 59 includes the explicit statement that “Losses expected as a result of future events, no matter how likely, are not recognised”.
International Accounting Standards adopted under Regulation (EC) No 1606/2002 which are published as Commission Regulations, constitute EU law directly applicable to the companies concerned as regards the circumstances set out in the Regulation. The domestic law of a Member State cannot alter their content.
The IASB is in the course of developing a replacement standard, which it is understood will require the use of an “expected loss” approach.
288. Deputy Gerry Adams asked the Minister for Jobs, Enterprise and Innovation his strategy to tackle emigration. [55211/13]
Amharc ar fhreagra289. Deputy Gerry Adams asked the Minister for Jobs, Enterprise and Innovation his strategy to enable Irish emigrants to return to Ireland. [55212/13]
Amharc ar fhreagra291. Deputy Gerry Adams asked the Minister for Jobs, Enterprise and Innovation if he has examined the report Irish Emigration in an Age of Austerity produced by UCC’s EMIGRE Project earlier this year. [55214/13]
Amharc ar fhreagra292. Deputy Gerry Adams asked the Minister for Jobs, Enterprise and Innovation if he has met the authors of the report Irish Emigration in an Age of Austerity produced by UCC’s EMIGRE Project to discuss its findings. [55215/13]
Amharc ar fhreagraI propose to take Questions Nos. 288, 289, 291 and 292 together.
Lack of employment opportunities during the recession has, no doubt, contributed to emigration in recent years. However, even during the so-called “Celtic Tiger” years, Irish people chose to emigrate for career or personal reasons. It is also a factor that, where a person employed in a multinational company in Ireland undergoes an intra-company transfer to a different country, this is also classified as emigration in the CSO statistics.
The number of Irish emigrants who have returned to Ireland in the past two years is estimated at 36,000. Many of them are coming home having gained skills and expertise abroad that we can now capture to strengthen the operation and management of companies based here.
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. This Department’s focus is primarily on employment creation in the Enterprise Sector. We are doing this through the Action Plan for Jobs and have already seen the positive results of the action being taken across the whole of Government to support the enterprise sector to sustain existing jobs and create new ones.
Recent figures published by the CSO indicate that the number of people employed in Ireland increased by 58,000 in the year to Quarter 3 2013, which is a reversal of the situation which faced the Government coming into office. That increase in employment is made up of a mix of people; some leaving the Live Register, some entering the Labour Market for the first time and some returning emigrants.
There are many initiatives from other Departments that seek to provide alternative routes for those who might be considering emigration – JobBridge, Springboard, Momentum and JobPlus are all new initiatives supplementing existing programmes in FÁS and the Department of Social Protection.
I am aware of the UCC report from last September and its findings, which showed that 47% of Irish emigrants had full time jobs when they emigrated, while just under 40% wanted to travel and experience other cultures. Others will have moved within their company to postings in other countries as part of a career development or global mobility plan. Many of these emigrants will gain important skills and insights from working overseas, but may well return to Ireland in the future.
I am clearly concerned that emigration is impacting on so many households, especially in rural areas, but I have noted the finding that a sizeable proportion of emigrants are leaving for reasons other than being unemployed.
While the private sector has been adding on average 1,200 jobs per week for the past year is a very encouraging sign for the economy, we must continue to build on this progress and support further job creation. I am currently preparing the 2014 Action Plan on behalf of the Government and we will continue, through that process, to build on the success of the actions we have taken over the last two years.
290. Deputy Gerry Adams asked the Minister for Jobs, Enterprise and Innovation the engagements he or his Department has had with Irish emigrants or their representatives since he took office. [55213/13]
Amharc ar fhreagraAs far as possible when leading trade missions to support Irish exports, I try to connect with as many members of the Irish business diaspora as possible. These can be an invaluable resource in making business and other connections to help exporters.
Irish residents in countries where I lead trade missions would be invited to specific networking events or receptions arranged by the enterprise development agencies or the local embassy.
The following is a list of official engagements during which specific events were arranged that involved Irish people living abroad. Other members of the local Irish community would have been involved with the wide range of events such as receptions, company visits, office openings etc., that are frequently part of trade missions.
|
9th March – December 2011 |
Official Engagement |
Mission/ Location |
Minister |
|
17 - 18 March |
Embassy Reception. Tourism Ireland event. Meeting with Irish Business Network. St. Patrick’s Day reception hosted by Consul-General. |
Trade Event / Promotion Germany |
Minister Bruton |
|
14 - 15 April |
Irish Business Networks Event. UK Software & Services Reception. |
Trade Event / Promotion United Kingdom |
Minister Bruton |
|
17 – 19 April |
Embassy Dinner for India based Irish company representatives. Mission Reception. Lunch with Indian based Representatives of Irish companies and launch of the Ireland India Business Association (IIBA). |
Trade Event / Promotion India |
Minister Bruton |
|
19 - 20 April |
Business Networking reception |
Trade Event / Promotion Saudi Arabia |
Minister Bruton |
|
11 -16 September |
Reception with senior Irish/Australian business representatives. Australian Ireland Fund – Young Leaders Event. Lunch with Emigrant Support Programme Recipients. Reception for “Irish in IT” Diaspora. |
Trade Event / Promotion Australia |
Minister Perry |
|
18 - 22 September |
Dinner with Global Irish Network members. Enterprise Ireland/Irish Chamber business networking event. |
Trade Event / Promotion USA |
Minister Bruton |
|
19 October |
British Irish Business Dinner |
Trade Event / Promotion London |
Minister Bruton |
|
10 November |
Financial Services Networking Dinner |
Trade Event / Promotion London |
Minister Bruton |
|
2012 |
Official Engagement |
Mission/ Location |
Minister |
|
6 March |
Houston All Agency lunch/Irish network |
Investment Trade Mission |
Minister Bruton |
|
6 March |
Irish studies programme St. John’s University Houston |
Investment Trade Mission |
Minister Bruton |
|
7 March |
Washington all agency lunch/Irish network |
Investment Trade Mission |
Minister Bruton |
|
7 – 9 November |
Financial Services Networking Event. Ireland Canada Chamber of Commerce, Networking event |
Trade Event / Promotion Canada |
Minister Bruton |
|
15 November |
Financial Services Networking Event |
Trade Event / Promotion United Kingdom |
Minister Bruton |
|
2013 |
Official Engagement |
Mission/ Location |
Minister |
|
21 February |
UK Networking Reception |
Trade Event / Promotion United Kingdom |
Minister Sherlock |
|
26 - 27 February |
Medtec Europe Trade Fair Networking Dinner |
Trade Event / Promotion Germany |
Minister Sherlock |
|
5 - 9 March |
Meeting with members of the Global Irish Network |
Trade Event / Promotion USA |
Minister Bruton |
|
8 March |
Washington all agency lunch/Irish network |
Investment Trade Mission |
Minister Bruton |
|
18 March |
Cologne St. Patrick’s Day reception Embassy event and Dinner with Honorary Consul |
Investment Trade Mission |
Minister Bruton |
|
21 - 24 July |
Meeting with members of the Global Irish Network |
Trade Event / Promotion China |
Minister Bruton |
|
24 - 27 July |
Ireland Japan Chamber of Commerce Reception |
Trade Event / Promotion Japan |
Minister Bruton |
|
30 October |
New York Dinner Irish US Council |
Investment Trade Mission |
Minister Bruton |
293. Deputy Lucinda Creighton asked the Minister for Jobs, Enterprise and Innovation the positions of the Industrial Development Authority and Enterprise Ireland regarding plans to either create a local court or participate in a regional unified patent court in the UK as part of the EU-wide patent system; if he supports the creation of a local unified patent court in Ireland; the extent of interdepartmental consultation between his Department and the Department of Justice and Equality regarding the creation of a local unified patent court; if any cost assessment has been conducted on the amount the creation of a new local court would be if it were created in Ireland versus the amount the State would have to pay the UK to facilitate access to the UK regional patent court; and if he will make a statement on the matter. [55251/13]
Amharc ar fhreagraThe options available under the Agreement setting up the Unified Patent Court (UPC) signed in February 2013 by 25 EU Member States are: to confer jurisdiction on the central division alone, to set up a local division of the Court or, to participate in a regional division of the Court with one or more Member States.
My Department is currently examining the options for Ireland’s participation in the Unified Patent Court (UPC), and the implications of each policy option, including cost considerations arising. Key to this process is engagement with key stakeholders who are being consulted in order to better inform the policy choices to maximise Ireland’s participation in the patent court. This includes the enterprise agencies under my Department’s own remit as well as representative business organisations to ensure that the views of a broad client base will form an important part of the overall consideration of this issue.
In addition, given that responsibility overall for the administration of the Courts in Ireland comes within the remit of the Minister for Justice and Equality, contact and active engagement between my Department and the Department of Justice and Equality and the Courts Service in relation to the policy options, including cost implications, for Irish participation in the patent court is ongoing.
The outcome of this process will ultimately inform a recommendation to Government in terms of the policy option to adopt in relation to the Court and I expect to be in a position to bring this issue to Government within the next few months. This process is running in parallel with intergovernmental level negotiations among the contracting parties that signed the UPC Agreement in February 2013.
Under this intergovernmental framework, a number of working groups have been set up to establish the working methods and modalities of the Court including issues such as the legal Rules of Procedure of the Court, budget and financing of the Court, IT systems as well as the training and remuneration of Judges to be appointed to the Court. This involves a very significant agenda of work which will very likely extend into this year and possibly into the early part of 2015.
As the international agreement on the Unified Patent Court entails a transfer of jurisdiction from the Irish courts to an international court, an amendment to the Constitution, requiring the carrying of a referendum, is necessary before Ireland can ratify the Agreement. The timing of this referendum will be a matter for Government to decide.
