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Thursday, 26 Nov 2015

Written Answers Nos. 21 - 29

Company Closures

Ceisteanna (21)

Peadar Tóibín

Ceist:

21. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he has met with Natrium Limited on the future of the Clerys Store. [41752/15]

Amharc ar fhreagra

Freagraí scríofa

Neither I nor Minister Bruton have met Natrium Limited. However, in the context of preparing my Report to Government on the sale and liquidation of Clerys, I wrote to Natrium Limited on three occasions requesting a meeting to discuss the situation regarding the unexpected liquidation of OCS Operations, the subsequent redundancy of Clery's workers and its plans for the future of the Clery's site. I considered that it was important to have the benefit of hearing the views of Natrium Limited before I finalised my Report. It is regrettable that Natrium Limited was not in a position to meet me within the timeframe available for the preparation of my Report and its submission to Government. Copies of the correspondence with Natrium Limited are available on my Department's website at: https://www.djei.ie/en/Publications/Publication-files/Correspondence-Natrium-and-Minister-Nash.pdf.

Employment Rights

Ceisteanna (22)

Peadar Tóibín

Ceist:

22. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if legislation will be brought before the Dáil prior to the next general election to end the practice of zero-hour contracts, and to ensure that contracted hours reflect the hours that are actually worked by staff. [41751/15]

Amharc ar fhreagra

Freagraí scríofa

I am currently engaged in a public consultation on the University of Limerick’s study on the prevalence of zero hours contracts among employers in Ireland. The consultation process commenced on 9th November and will run over an eight week period to 4th January 2016. My Department has published on its website a Consultation Document designed to assist interested parties in making a written submission in response to the study. In addition to seeking written submissions from all interested parties, I met earlier this week with employer representative bodies, worker representative bodies and non-Governmental organisations to hear their views first hand.

It is important to point out that this is an independent study and the conclusions being drawn and the recommendations being made in the study are those of the University of Limerick. Therefore, it is essential that the various stakeholders who contributed to the study and indeed other interested parties who may not have had an opportunity to engage with the University of Limerick (UL), are given an opportunity to consider and respond to the findings and recommendations in the UL report. This will allow me to be more fully informed before formulating my own views on the policy recommendations that I should bring to Government arising from the study.

Job Losses

Ceisteanna (23)

Denis Naughten

Ceist:

23. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the steps he will take to replace jobs lost at Bank of America and AvantCard in Carrick-on-Shannon, County Leitrim; and if he will make a statement on the matter. [41424/15]

Amharc ar fhreagra

Freagraí scríofa

I share the Deputy’s concerns regarding job losses in the Carrick-on-Shannon area. However I am heartened by the latest CSO data which shows that broadly speaking the unemployment rate has halved, with 22,700 less people unemployed in the Border and Midland regions since 2012. The details are that unemployment in the Border Region (which includes Leitrim) has fallen from 17.7% to 9.3% and in the Midland Region (which includes Roscommon) it has fallen from 18.3% to 12.4%. While the current unemployment rates are still too high, this reduction has been a considerable achievement for this Government.

The banking industry has seen many changes in recent years and is constantly evolving, mainly due to different customer practices, especially the growth of online banking from mobile phones. Call volumes to call centres such as this one have been greatly reduced and this has led to a lower demand for activity there. Avant Card have therefore made a strategic decision to reduce their workforce, in order to ensure the future development of the business. I understand that Avant Card have stated that they expect these to be the final layoffs in their adjustment process.

As part of the ongoing work to secure new jobs to replace those lost at various stages over recent years in the former MBNA facility, both Enterprise Ireland and IDA Ireland continue to fully engage with their existing client companies and, in the case of the IDA, with prospective new international investors, to market the facility and especially to make them aware of the skilled pool of former staff. The State Agencies have a strong record of sourcing alternative employment in many cases such as this and their efforts will continue.

We in Government are only too well aware of the discrepancy in growth between the capital and the regions and, as a result, I set about introducing an initiative for Regional Action Plans for Jobs. The purpose of this initiative is to identify a range of actions over the period 2015 - 2017 aimed at facilitating each region to achieve its economic potential and raise employment levels. The Border Region Action Plan which includes County Leitrim, will be published very shortly. Just last week the Taoiseach and I launched the Western Region Action Plan for Jobs, which embraces County Roscommon. Both of these strategies have a comprehensive set of proposals to drive job creation in those regions in the years ahead.

Job Creation Data

Ceisteanna (24)

Charlie McConalogue

Ceist:

24. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation if County Donegal has fallen behind other parts of the country in terms of job creation; if poor road and broadband infrastructure in the county is a contributing factor to the lack of new inward investment in the county in the past five years; and if he will make a statement on the matter. [41747/15]

Amharc ar fhreagra

Freagraí scríofa

The number of IDA Ireland supported jobs in Donegal in 2014 was 2,612. This represents a net increase of 758, or 41%, over the 2010 figures of 1,854. When evaluating inward investment it is important to note that approximately 70% of all FDI investment won by IDA Ireland comes from its existing client base. Therefore, working with stakeholders is exceptionally important in positioning any regional location to attract FDI and IDA Ireland continues to do so, as well as working with existing clients in all regional locations. Given the global economic operating environment in recent years, the existing client base has performed well in not only retaining their presence in Donegal, but expanding the number of employees. The most recent example of this was the announcement in July of this year by Pramerica of the expansion of its facility in Donegal by 330 jobs.

Planning and provision of road and broadband infrastructure in County Donegal is outside of the remit of my Department, however, IDA Ireland works closely with the Local Authorities through established forums to ensure the North West continues to enhance its offering for prospective multinational companies. IDA Ireland supports the development of infrastructure that makes the North West a more accessible place to do business and works with stakeholders to see how all aspects of the North West can become more attractive from a client’s perspective.

Infrastructure plays a key part in enterprise development and collaboration and commitment across government agencies, local authorities and local businesses is vital. In February, the Government announced details of the Action Plan for Jobs: Regional initiative which seeks to capitalise on the strengths and assets of each region to maximise enterprise growth and job creation. The initiative will build on the success of the National Action Plan for Jobs, and encourage regional stakeholders - including enterprise agencies, local authorities, higher education institutions, other public bodies and the private sector - to come forward with innovative ideas to boost job creation in their own region. The goal is to increase employment levels by a further 10 to 15 per cent in each region by 2020 and to ensure the unemployment rate is within 1% of the State average. The Action plan for the Border Region covering Counties Donegal, Sligo, Leitrim, Cavan, Monaghan and Louth will be published by the end of November.

Action Plan for Jobs

Ceisteanna (25)

Terence Flanagan

Ceist:

25. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation the initiatives he has to deal with youth employment; and if he will make a statement on the matter. [41426/15]

Amharc ar fhreagra

Freagraí scríofa

A key objective of the Action Plan for Jobs process, which this Government commenced in 2012, was to rebuild our economy based on enterprise and entrepreneurship, talent, innovation and exports, in order to provide a solid foundation for future growth and to provide employment opportunities for all age cohorts. The goal of this Government has been to replace all of the jobs lost during the economic crisis and deliver sustainable full employment by the end of 2018. The Action Plan for Jobs is having a positive impact on employment in the economy, since the first Plan was launched in early 2012. Since Q1 2012, 135,800 additional people are at work. The unemployment rate has fallen below nine per cent for the first time since 2008, down from a high of 15.1 per cent in early 2012 and we are making progress on reducing the numbers of youth and long-term unemployed.

The progress made by Government in supporting youth employment is impressive. The number of unemployed young people has fallen significantly from 74,000 in Q3 2012 to 42,000 in Q3 2015. This progress must be sustained.

Economic recovery will underpin jobs growth and the availability of productive employment for young people. The Action Plan for Jobs complements the Government’s Pathways to Work, developed by the Department of Social Protection, which sets out specific measures for young people, under the Youth Guarantee and Youth Activation charter, to help them access the labour market and new job opportunities.

We will continue to focus on improvements in skills provision through the provision of programmes for a diverse range of individuals including young unemployed people through the Education and Training Boards in the implementation of the Further Education and Training Strategy 2014-18, the Momentum and Springboard programmes, employment incentive programmes such as the new Youth JobsPlus initiative, and doubling of high end skills as part of the second ICT Skills Action Plan. The new apprenticeships programme provides further opportunities for young people to find rewarding careers for the future. The first phase, comprising 25 new apprenticeship proposals across a wide range of sectors, was announced in July of this year.

The HEA will also support the use of third level facilities out of term to promote greater awareness and interest in technology, science and engineering among young people. In the areas of entrepreneurship, Local Enterprise Offices provide a first stop shop for young entrepreneurs with an idea of interested in starting a business and we will build on the success of “Ireland’s Best Young Entrepreneur” competition.

My Department is currently developing the 2016 Plan and is engaging bilaterally with Government Departments to identify actions to ensure that the 2016 Plan is as ambitious and impactful as possible and keeps us on track to achieve our goal to have 2.1 million people in employment by 2018. The Tánaiste, and Minister for Social Protection, is also developing a new Pathways to Work Strategy for the period 2016 to 2020.

Our Departments will continue to build on the progress to date through the Action Plan for Jobs and Pathways to Work to ensure that more employment opportunities are available to young people who are seeking work.

Export Controls

Ceisteanna (26)

Clare Daly

Ceist:

26. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation further to Parliamentary Question No. 20 of 4 November 2015, the criteria used in the assessment of applications for licences for the export of military or dual-use goods, technology, or the components thereof, including the criteria used to assess the end-use and end-user of such goods, technology or components thereof. [41422/15]

Amharc ar fhreagra

Freagraí scríofa

My Department is responsible for controls on the export of military items from Ireland. Under Irish law, military export licences must be sought in respect of the goods and technology, and any components thereof, listed in the Annex to the Control of Exports (Goods and Technology) Order, SI.216 of 2012 which reflects the EU Common Military List. My Department is also responsible for licensing those dual-use items controlled pursuant to Council Regulation (EC) No. 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items.

The key consideration in dealing with all export licences applications is to establish whether there are any concerns regarding the end-user. This process may include consultation with other export control authorities, both within and outside of the EU. Through these consultations, my Department has access to a wide range of information on proposed end-users. This consultation process is a fundamental aspect of making a determination on the granting of a licence.

My Department consults with the Department of Foreign Affairs and Trade on all military licence applications and on all sensitive dual-use export licence applications. That Department is able to draw on a wide range of resources which it can access when considering an export licence application.

In addition, end-user certificates are always required as a further control measure in sensitive cases. End-user certificates provide information on the proposed transaction, certify that the company will be the final recipient of the goods being exported and include an undertaking that the goods will not be used in connection with Weapons of Mass Destruction (WMD).

The considerations to be taken into account when deciding whether or not to grant an individual or global dual-use export licence are set out in Article 12 of Regulation 428/2009. It provides that Member States shall take into account “all relevant considerations including”:

(a) the obligations and commitments they have each accepted as members of the relevant international non-proliferation regimes and export control arrangements, or by ratification of relevant international treaties;

(b) their obligations under sanctions imposed by a common position or a joint action adopted by the Council or by a decision of the Organisation for Security and Co-operation in Europe (OSCE) or by a binding resolution of the Security Council of the United Nations;

(c) considerations of national foreign and security policy, including those covered by Council Common Position 2008/944/CFSP of 8 December 2008 defining common rules governing control of exports of military technology and equipment;

(d) considerations about intended end-use and the risk of diversion.

The Common Position referred to at point (c) above sets out common criteria against which applications for exports of military goods should be assessed. These are as follows:

Criterion One: Respect for the international obligations and commitments of Member States, in particular the sanctions adopted by the UN Security Council or the European Union, agreements on non-proliferation and other subjects, as well as other international obligations.

Criterion Two: Respect for human rights in the country of final destination as well as respect by that country of international humanitarian law.

Criterion Three: Internal situation in the country of final destination, as a function of the existence of tensions or armed conflicts.

Criterion Four: Preservation of regional peace, security and stability.

Criterion Five: National security of the Member States and of territories whose external relations are the responsibility of a Member State, as well as that of friendly and allied countries.

Criterion Six: Behaviour of the buyer country with regard to the international community, as regards in particular its attitude to terrorism, the nature of its alliances and respect for international law.

Criterion Seven: Existence of a risk that the military technology or equipment will be diverted within the buyer country or re-exported under undesirable conditions.

Criterion Eight: Compatibility of the exports of the military technology or equipment with the technical and economic capacity of the recipient country, taking into account the desirability that states should meet their legitimate security and defence needs with the least diversion of human and economic resources for armaments.

Microenterprise Loan Fund Applications Data

Ceisteanna (27)

Anthony Lawlor

Ceist:

27. Deputy Anthony Lawlor asked the Minister for Jobs, Enterprise and Innovation the number of entrepreneurs under 25 years of age who have accessed the microfinance fund; the additional measures that are in place to encourage a greater number of younger persons to establish their own business; and if he will make a statement on the matter. [41421/15]

Amharc ar fhreagra

Freagraí scríofa

Microfinance Ireland (MFI) has informed me that as at 30th September, 2015, 12 Young Entrepreneurs under the age of 25 have obtained loans from MFI. MFI has had meaningful engagement with young entrepreneurs following on from the publication of the Review of MFI which was published earlier this year. This has included extending the availability of a specific customised loan product which is particularly aimed at participants in Ireland’s Best Young Entrepreneur (IBYE) initiative being run by the Local Enterprise Offices (LEOs). In addition MFI is at early stage discussions with Youth Business International in relation to the possibility of introducing a National Youth Loan Scheme. The LEOs have also been invited to participate in this scheme. MFI has also had engagement with the GAA and Foroige in terms of encouraging young entrepreneurs and potential young entrepreneurs to access its products.

The Irish Best Young Entrepreneur initiative is a €2 million competition aimed at finding Ireland’s Best Young Entrepreneur 2015. The aim of the initiative is to support a culture of entrepreneurship amongst young people and promote entrepreneurship as a career choice and encourage young people to set up business and ultimately create jobs.

The competition is open to people aged between 18-30 and a €50,000 investment fund has been made available to the individual 31 Local Enterprise Offices (LEOs) to run the competition in their area. A new element of this years competition was to actively seek the participation of young Irish people who have emigrated from Ireland in recent times. 40 of our emigrant young entrepreneurs applied for the competition with a view to setting up business in Ireland and 2 of these have progressed to the final.

Those that entered the competition either completed intensive business bootcamp or were offered other enterprise supports offered through their LEO including business advice meetings or training. 24 Young entrepreneurs have now progressed to the National Final with the Judging Day being yesterday, Wednesday, 25th November, 2015. The winner will be announced on the 6th December with a total of €100,000 in prize funds on offer.

The LEOs are also active in promoting youth entrepreneurship through the Student Enterprise Awards. These Awards are part of the flagship enterprise programme at second level with 17,000 students from all areas of the country involved each year.

The programme aims to give students practical, real life experience of setting up and running their own business and encourage young students to think about entrepreneurship and self-employment as a viable career choice. The programme also aims to enhance the teaching of business and entrepreneurship in schools by combining class room learning with real life experience. The 2016 final of this competition is due to take place in April 2016.

Employment Rights

Ceisteanna (28)

Dara Calleary

Ceist:

28. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his views on "if and when" contracts, as they are described in the recent University of Limerick study on short-hour and zero-hours contracts; and if he will make a statement on the matter. [41759/15]

Amharc ar fhreagra

Freagraí scríofa

I am currently engaged in a public consultation on the University of Limerick’s study on the prevalence of zero hours contracts among employers in Ireland. The consultation process commenced on 9th November and will run over an eight week period to 4th January 2016. My Department has published on its website a Consultation Document designed to assist interested parties in making a written submission in response to the study. In addition to seeking written submissions from all interested parties, I met earlier this week with employer representative bodies, worker representative bodies and non-Governmental organisations to hear their views first hand.

It is important to point out that this is an independent study and the conclusions being drawn and the recommendations being made in the study are those of the University of Limerick. Therefore, it is essential that the various stakeholders who contributed to the study and indeed other interested parties who may not have had an opportunity to engage with the University of Limerick (UL), are given an opportunity to consider and respond to the findings and recommendations in the UL report. This will allow me to be more fully informed before formulating my own views on the policy recommendations that I should bring to Government arising from the study.

Job Losses

Ceisteanna (29)

Richard Boyd Barrett

Ceist:

29. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation when he will implement changes to ensure that no other workers lose their jobs in the manner in which the Clerys workers lost their jobs; and if he will make a statement on the matter. [41745/15]

Amharc ar fhreagra

Freagraí scríofa

The liquidation of OCS Operations Limited is currently in the hands of liquidators under the supervision of the High Court. The High Court was informed at the hearing on 6 July that the liquidators have identified a number of matters which they intend to investigate as part of the liquidation process. It is only when all the facts and events leading up to the winding up of the company are known, and any potential legal challenges are raised, that an informed decision can be made on whether legislative change should be made. The liquidators have important duties under Company Law. They include:

- An obligation to provide within 6 months of their appointment a report on the conduct of directors to the Director of Corporate Enforcement

- A requirement to make an application to the High Court for the restriction of directors unless the Director of Corporate Enforcement has relieved the liquidator of this requirement.

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