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Thursday, 15 Jan 2015

Written Answers Nos. 80 - 88

Capital Expenditure Programme

Ceisteanna (80)

Brendan Griffin

Ceist:

80. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform when details of the next capital investment plan will be announced; the level of preparation that has so far been completed; and if he will make a statement on the matter. [1994/15]

Amharc ar fhreagra

Freagraí scríofa

My Department commenced a review of the public capital programme in April of last year in parallel with the Comprehensive Review of Expenditure. The purpose of the review is to assess all areas of public capital investment and to refresh the existing investment strategy and multi-annual envelopes to ensure that they are in line with emerging Government priorities and that our limited resources are focused on the areas that can best support continued, sustainable and equitable growth.

As with the Comprehensive Review of Expenditure, all Departments (and their Agencies) with capital budgets were asked to make submissions to my Department in order to feed into the review process. Specifically, they were asked to outline their capital investment plans for the five year period ahead. My Department also consulted external stakeholders such as the ESRI, the CIF and the Society of Chartered Surveyors Ireland, for their views on what the State's main infrastructure priorities for the period ahead should be. Alongside these consultations, officials within my Department conducted analysis on particular areas and aspects of capital expenditure. It is my intention that the submissions and papers which informed the capital review will be made available on my Department's website once the report on the review is published.

Government has made its decision on the capital allocations for the next three years and these were set out in Budget 2015. The report of the capital review is being finalised and I intend to publish it in the coming weeks. The report will include the three year ceilings announced on Budget Day along with new ceilings for the period 2018 to 2020.

Public Sector Staff Recruitment

Ceisteanna (81, 82)

Catherine Murphy

Ceist:

81. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if his attention has been drawn to the fact that a serious problem exists within the processes of the Public Appointments Service whereby persons who are working short-term contracts with one Department are being offered contracts with different Departments before the completion of their current contract, that, as a consequence of not being in a position to accept such offers, the PAS record this as a rejection of an offer, which carries a number of consequences for the person concerned; the reason it is possible for this error to repeatedly occur; if he will commit to compensate in some fashion those who have been forced into this situation; and if he will make a statement on the matter. [2103/15]

Amharc ar fhreagra

Catherine Murphy

Ceist:

82. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform the reason a person (details supplied) was offered a 12 week contract of employment with the Department of Social Protection even though they were at the time engaged on a 15 week contract with the Department of Foreign Affairs and Trade and had three weeks remaining; the reason, even though they were obviously not in a position to accept the Department of Social Protection's offer, this was recorded as a rejection within the PAS system; the consequences this has had for their future employment opportunities; if he will review this matter; and if he will make a statement on the matter. [2110/15]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 81 and 82 together.

Recruitment to the Civil Service and a range of other public bodies is handled under the Public Service Management (Recruitment and Appointments) Act 2004 which established a central recruitment agency, the Public Appointments Service (PAS), for this purpose. The PAS operates under licence from the Commission for Public Service Appointments and is independent in its operations.

While the Deputy does not stipulate a particular competition, PAS has confirmed that the individual for whom details were supplied was a candidate for the Temporary Clerical Officer (TCO) campaign which is run annually to meet gaps arising on foot of term-time leave, maternity leave and other short-term staff needs.

In 2014, the TCO campaign attracted 13,200 applications. Given the scale of interest in the competition and urgency of temporary assignments, PAS does not have scope to delay if a candidate cannot take up duty promptly. The Information Booklet for the competition is clear in terms of the obligation on candidates to be available to take up duty when required and to see out the contract.

The needs of departments/offices seeking TCO cover are immediate and typically short-term and as such the system must be responsive. Given the size and complexity of the TCO competition with multiple regional panels and a fast moving process, it would not be feasible for PAS to keep track of candidates who are not available when required but may subsequently become available. 

In the specific case raised by the Deputy, the candidate had applied for both the TCO-2013 campaign and the TCO-2014 campaign. He was successfully placed on the panel for Dublin on both occasions. He was  assigned from the TCO-2013 panel in February 2014, which was quite late in the currency of that panel. As he performed better in the TCO-2014 competition and was placed higher on the panel for Dublin he was offered a position from the TCO-2014 panel in April 2014. The juxtaposition of a late offer from TCO-2013 and an early offer from TCO-2014 led to an overlap. However, it should be noted that the 2013 and 2014 TCO recruitment campaigns were entirely separate competitions. Candidates are entitled to apply for any number of concurrent PAS campaigns for permanent or temporary positions, but must ultimately make a decision on which offer to take if offers coincide.

EU Directives

Ceisteanna (83)

Terence Flanagan

Ceist:

83. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation his plans to increase regulation of the auditing profession in view of the financial crisis; and if he will make a statement on the matter. [2022/15]

Amharc ar fhreagra

Freagraí scríofa

In the wake of the international financial crisis the European Commission brought forward an extensive set of proposals for an Audit Regulation and a Directive in December 2011, inter alia, to provide for a strengthened and more coordinated approach to the supervision of auditors in the EU and to enhance the independence of auditors.

Following intensive negotiations at Council Working Party level, the Audit Directive (2014/56/EU), amending Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts, and the Audit Regulation (EU) No. 537/2014 on specific requirements regarding the statutory audit of public-interest entities, were adopted on 16 April, 2014.

The Audit Regulation introduces stricter requirements on the statutory audits of public-interest entities, such as listed companies, credit institutions, and insurance undertakings.

My Department is currently in the process of transposing the Audit measures into national law. In that connection, a public consultation was undertaken by my Department towards the end of last year which will help to inform the process of transposing these Audit measures into Irish law.

The Audit measures are required to be given effect by 17 June 2016.

Legislative Measures

Ceisteanna (84)

Peadar Tóibín

Ceist:

84. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if advertisements have been placed for the panel of adjudicators as required under the Construction Contracts Act; when the appointments will be made to include the chairperson; and when drafting of the code of practice for the conduct of adjudications will be complete. [1921/15]

Amharc ar fhreagra

Freagraí scríofa

The Government approved the delegation of responsibility for implementation of the Construction Contracts Act, 2013 to my colleague, the Minister of State for Business and Employment, Deputy Gerald Nash, in November. Work is continuing on the preparations for the full implementation of the Act in the Spring. This will include the selection of a panel of adjudicators through an open competitive process to be run by the Public Appointments Service, which will commence at the earliest opportunity and will be advertised accordingly. While matters are progressing, it is not yet possible to definitively state when the appointments envisaged under the Act will be made.

The drafting of a code of practice for the conduct of adjudications, which will be binding on all adjudicators operating under the Act not just those appointed to cases by the Chair of the adjudication panel, is at an advanced stage and will be finalised after consultations have concluded with the construction industry stakeholders.

IDA Site Visits

Ceisteanna (85, 86)

Brendan Griffin

Ceist:

85. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation the number of Industrial Development Agency sponsored visits to County Kerry by potential investors in 2014; a monthly breakdown of visits; his views on a positive outcome from any of these visits; if he envisages an increased level of visitation activity in 2015; and if he will make a statement on the matter. [1967/15]

Amharc ar fhreagra

Brendan Griffin

Ceist:

86. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation if he will prioritise County Kerry for special attention from the Industrial Development Agency in 2015, in view of the lack of success in recent years in attracting foreign direct investment for Kerry; and if he will make a statement on the matter. [1968/15]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 85 and 86 together.

I am informed by IDA Ireland that there were 3 IDA Ireland sponsored site visits by potential investors to County Kerry in 2014, one by the end of the first half of the year and two further visits in the second half of the year. Due to client confidentiality and commercial sensitivity, IDA Ireland does not comment on upcoming visits by clients.

At the end of 2014 there were 12 IDA Ireland supported companies in Kerry employing 1,874 people. IDA Ireland has strong relationships with all these companies and works closely with them to ensure their long term sustainability and to encourage their growth, development and continuing re-investment in their sites. The primary opportunity for regional locations is in respect of the existing client base and potential further investment opportunities from same. Approximately 70% of all FDI investments won by IDA Ireland is from the existing client base. IDA Ireland works closely with third level educational institutions in the region so that the skill-sets necessary to attract high value added employment to the Region are being developed. When marketing Kerry for new inward investment IDA Ireland focuses on the ICT (incl. software), International Financial Services and Globally Traded Business sectors.

2014 marks the end of IDA Ireland’s 5 year Strategy “Horizon 2020”. The Agency is currently finalising its new Strategy for the coming 5 years. I look forward to launching the new strategy, detailing goals and the broad direction IDA Ireland will take to accomplish them over the next five years.

I have been working with my Department on the development of a framework for the formulation of Regional Enterprise Strategies that will enable us to identify the sustainable competitive strengths of each region and to better integrate the efforts of the enterprise development agencies and other regional stakeholders in supporting enterprise growth and jobs in areas of potential. A key element of this process is the Regional Enterprise Forum, which I chaired in Athlone on 19th December last. I hope to publish the framework strategy shortly. The Regional strategy will be rolled out firstly in the Midlands before being rolled out in other regions and will include specific actions and targets on the part of my Department, the enterprise development agencies and other public bodies to promote enterprise growth and job creation in the region.

Regional Aid

Ceisteanna (87)

Brendan Griffin

Ceist:

87. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation if any company has availed of Kerry’s improved investment aid status since 1 July 2014; if so, if he will provide details regarding the amount of investment involved and the number of jobs created as a result; and if he will make a statement on the matter. [1969/15]

Amharc ar fhreagra

Freagraí scríofa

The Regional Aid Guidelines enable the State to grant State Aid, at enhanced rates, to businesses in order to support new investment and new employment in productive projects in Ireland's most disadvantaged regions. This helps the convergence of these regions with the more advantaged regions of the Union. Regional Aid is also provided under Schemes for tourism grants, marine tourism, urban and rural renewal and other tax-based development schemes. All such aid come from the Exchequer, i.e. there is no EU or other external funding. The 2014-2020 Regional Aid Guidelines entered into force on 1 July 2014. Areas accounting for 51.28% of Ireland’s population are now eligible for assistance under the Regional Aid Guidelines. This represents a substantial increase from the 25% originally proposed by the Commission, and an increase from the 50% under the 2007-2013 Map. This means that the full range of Regional Aid assistance options are now available in Kerry.

The Guidelines specify the grant aid rates for Regional Aid projects. The Deputy is correct in acknowledging an improvement in the aid rate applicable for eligible projects in Kerry. This specifically relates to the aid rate for large companies, which has increased from 0% to 10% for the period 2014-2020. The Regional aid rates for Kerry and other areas designated under the 2014-2020 Regional Aid Guidelines are a maximum of 30% for small and micro enterprises, 20% for medium-sized enterprises and 10% for large enterprises.

Since 1 July 2014, Enterprise Ireland has not to date, approved Regional Aid to any large company in Kerry. However the Agency is working proactively with large clients as well as SME clients in Kerry to identify suitable growth projects for investment. In the six months since 1 July 2014, Enterprise Ireland approved more than €5.7 million to companies in Kerry for start-up, research and development, and expansion projects. All projects are subject to assessment in terms of commercial, technical and market due diligence and should represent value for money in terms of the State’s investment.

During 2014, there were no public investment announcements of IDA Ireland projects for County Kerry. However, it should be noted that not all companies agree to announce their investments and as a result, this does not truly reflect the level of investments won or the performance of FDI in a county in a particular year. In this respect, IDA Ireland clients had a very positive employment performance in County Kerry with a net increase of 236 jobs in 2014, compared with 2013.

Kerry Local Enterprise Office continues to work with its micro enterprise client base in Kerry.

Jobs Data

Ceisteanna (88)

Clare Daly

Ceist:

88. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation the jobs lost and created in IDA supported employment for each of the years 2008 to 2014. [1996/15]

Amharc ar fhreagra

Freagraí scríofa

In the 7 year period from 2008 to 2014, the total numbers employed in IDA Ireland client companies rose by almost 15,000, from 159,556 in 2008 to 174,488 in 2014, the highest level in the history of IDA Ireland. Details of the number of jobs created and lost in each of those years is set out in the following tabular statement. This strong job-creation performance took place against a particularly challenging European economic environment and changing corporate taxation landscape. FDI is a key stimulator and driver of the Irish economy through its contribution to Exchequer finances. The high calibre jobs created in IDA Ireland client companies and the indirect employment spin offs they generate in the Irish economy are making a vital contribution to this Government’s ambition to have 100,000 people in work by 2016.

2014 marks the end of IDA Ireland’s 5-year strategy “Horizon 2020” and I am glad to be able to inform the Deputy that the Agency exceeded the jobs and investment targets it set itself under that strategy. The Agency is currently finalising its new strategy for the coming five years. I look forward in the next few weeks to launching the new strategy, detailing the goals and broad direction IDA Ireland will take to accomplish them over the next five years.

Table showing total number of jobs in IDA Ireland client companies together with the number of new Jobs created and lost in each year from 2008 to 2014.

Year

2008

2009

2010

2011

2012

2013

2014

Total Jobs

159,556

144,612

146,628

152,223

159,191

167,357

174,488

New Jobs Created (Gross Gains)

10,943

6,265

14,308

14,432

15,215

15,104

15,012

Gross Losses

-14,263

-21,209

-12,292

-8,837

-8,247

-6,938

-7,881

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