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Wednesday, 20 Jul 2016

Written Answers Nos 31-52

Action Plan for Jobs

Ceisteanna (37)

Eamon Scanlon

Ceist:

37. Deputy Eamon Scanlon asked the Minister for Jobs, Enterprise and Innovation her plans in place to tackle unemployment in rural Ireland in view of the delay in awarding contracts under the national broadband plan. [22536/16]

Amharc ar fhreagra

Freagraí scríofa

The Regional Action Plans for Jobs developed by my Department place a strong emphasis on the importance of access to high speed broadband. Broadband communications is an essential underpinning for entrepreneurship, for trade and for attracting investment in the digital economy.

The Programme for a Partnership Government commits to the delivery of the National Broadband Plan (NBP) so that every city, town, village and individual premises in Ireland has access to high speed services. The Government has moved quickly on the procurement process. The current schedule envisages contract(s) awarding in June 2017.

My Department, agencies and the Local Enterprise Offices will continue to work with other Departments and stakeholders to ensure that the full potential of high speed broadband can be realised for job creation in all parts of the country. Through the LEOs we will continue to support entrepreneurship and business growth in all areas of the country. We will also continue to promote the On-line Vouchers which are available to businesses to develop their ICT and ecommerce capabilities. My Department is also working with the Department of Education and Skills on a review of the ICT Skills Action Plan. The ICT Action Plan has placed a strong focus on providing training for the unemployed to take advantage of job openings in ICT related areas throughout the country.

Questions Nos. 38 to 43, inclusive, answered orally.

Low Pay

Ceisteanna (44)

Maurice Quinlivan

Ceist:

44. Deputy Maurice Quinlivan asked the Minister for Jobs, Enterprise and Innovation her views on the assertion on page 3 of the summer economic statement that the Government will improve the take-home pay of families on low incomes; and if she will make a statement on the matter. [22824/16]

Amharc ar fhreagra

Freagraí scríofa

This Government is committed to ensuring that the fruits of economic recovery will be used to reduce inequality and poverty, to a just and fair society and a more inclusive prosperity. The amount a worker is paid will go a long way towards achieving this. In that regard the Low Pay Commission has been tasked with, on an annual basis, examining and making recommendations on the national minimum wage. The national minimum hourly rate of pay increased to €9.15 per hour on January 1 this year following Government acceptance of the Low Pay Commission recommendation of July 2015 to increase the rate from €8.65 per hour.

The Commission’s second report on the national minimum wage was submitted to Government yesterday and the recommendation made by the Commission that the national minimum hourly rate be increased by 10 cents to €9.25 will be considered by Government in the context of Budget 2017.

The Programme for Partnership Government contains a commitment to develop a new Working Family Payment targeted at low-income families. I am informed that over the course of the next six months, my colleague the Minister for Social Protection will develop proposals for this new payment.

I am also informed that in doing so, the Minister will be guided by two principles. Firstly, that the payment should ensure that work pays and that no family is better off on welfare than at work, and secondly, and of equal importance, that the payment has a positive effect on child poverty.

As the deputy will appreciate, changes to the tax system can also have a significant impact on take home pay but these are a matter for my colleague the Minister for Finance.

Workplace Relations Services Staff

Ceisteanna (45)

Bríd Smith

Ceist:

45. Deputy Bríd Smith asked the Minister for Jobs, Enterprise and Innovation to ensure that the appropriate State bodies tasked with safeguarding the rights of workers are appropriately staffed and resourced to combat attempts by employers to break labour laws that seek to provide workers with basic protections. [22763/16]

Amharc ar fhreagra

Freagraí scríofa

The Workplace Relations Commission (WRC) was established on 1 October 2015 under the Workplace Relations Act 2015, and has responsibility for information provision, workplace advice, mediation, conciliation, adjudication, inspection and enforcement in relation to employment rights, equality and equal status matters and industrial relations.

The WRC assumed the roles and functions previously carried out by the National Employment Rights Authority (NERA), Equality Tribunal (ET), Labour Relations Commission (LRC), Rights Commissioners Service (RCS), and the first-instance (Complaints and Referrals) functions of the Employment Appeals Tribunal (EAT), and its staff forms part of the overall Departmental staffing complement.

On a day-to-day basis the HR Unit of my Department works with individual Business Units and the Department’s management Board team on the allocation of staff resources and this would include the WRC. Staffing resources are made available through my Department relevant to the functions noted above and are reflective of the requirement to manage the pay bill and staff numbers in accordance with Government policy, utilising available resources in the most effective and efficient manner as appropriate to business needs.

IDA Site Visits

Ceisteanna (46)

Alan Kelly

Ceist:

46. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation the number of Industrial Development Agency site visits that have been made to County Tipperary in each of the years 2014 to 2016 to date; and if she will make a statement on the matter. [22539/16]

Amharc ar fhreagra

Freagraí scríofa

The number of site visits to a particular county is better viewed against the background of the wider progress IDA Ireland is making in generating new jobs across the country. This can be seen in the Agency’s record 2015 results, in which a total of 18,983 jobs were created with employment in IDA Ireland client companies rising to over 187,000. The Agency has also made regional development a cornerstone of its five-year strategy and is targeting a minimum increase in investment of 30%-40% in each region outside Dublin. National statistics show progress is being made towards reaching that goal, with 53% of new jobs created last year based outside of Dublin, compared to 49% in 2014. 12 IDA supported companies employed a total of 3,518 people in County Tipperary and 95 of these jobs were created last year.

It is important to note that data on site visits is not an accurate measure of the level of Foreign Direct Investment (FDI) activity in a region or county, partly because approximately 70% of all FDI investment won by IDA Ireland comes from its existing client base, rather than new companies.

There were three IDA Ireland-sponsored visits to Tipperary during 2014, with a further 12 taking place in 2015. There have been four such visits to the county in quarter one this year. Statistics for quarter two should be available within a few weeks.

Job Creation

Ceisteanna (47)

Brendan Smith

Ceist:

47. Deputy Brendan Smith asked the Minister for Jobs, Enterprise and Innovation if she is aware of the urgent need to provide much needed additional job opportunities throughout counties Cavan and Monaghan; the proposals her Department and the State's industrial promotion agencies have to assist in job creation and in the maintenance of existing employment; if she will direct the agencies to implement specific strategies for areas such as Cavan and Monaghan which will be impacted adversely by the British decision to leave the European Union and the difficulties facing many local small, medium and large enterprises that are heavily reliant on the Northern Ireland and British market, taking into account the weakening of the value of sterling; and if she will make a statement on the matter. [22788/16]

Amharc ar fhreagra

Freagraí scríofa

The Regional Action Plans for Jobs initiative is a concrete example of the targeted approach being undertaken to boost employment in the regions.

The core objective of the North East/North West Plan is to have a further 28,000 at work in the region by 2020. We are aiming to ensure the unemployment rate is within 1% of the State average.

Key sectors targeted as part of the Plan include traditionally strong sectors for the region like agrifood, manufacturing/engineering and tourism, including active promotion of the tourism potential of the Lakelands Region.

The plan is being monitored and driven by an Implementation Committee. This committee comprises representatives from the Enterprise Sector, as well as the Local Authorities, Enterprise Agencies and other public bodies in the region.

The first progress report is currently in preparation. I expect it to be completed and published in the third quarter of 2016.

The UK remains a market opportunity for Irish business, and I am conscious that a decrease in the value and/or the volume of exports to the UK will affect industry, including SMEs and agrifood sector enterprises.

The Government has adopted an initial Contingency Framework to map out the key issues that will be most important to Ireland in the coming weeks and months.

My Department and the enterprise agencies are fully committed to supporting business in this period of heightened uncertainty; however, we do so against the background of a strong economy and a highly competitive enterprise sector.

IDA Site Visits

Ceisteanna (48)

Alan Kelly

Ceist:

48. Deputy Alan Kelly asked the Minister for Jobs, Enterprise and Innovation the number of Industrial Development Agency site visits made to counties Tipperary, Clare and Limerick in each of the years 2014 to 2016 to date; and if she will make a statement on the matter. [22540/16]

Amharc ar fhreagra

Freagraí scríofa

I want to emphasise that IDA Ireland is doing its utmost to secure new investments for not just these three counties but across Ireland as a whole. Regional development is a cornerstone of the Agency’s five-year strategy, as is evident from the ambitious target set to increase investment by 30%-40% in each region outside Dublin.

National statistics in connection with job creation and site visits show that real progress is already being made. Of the record 18,983 new jobs created by IDA Ireland clients in 2015, 53% were based outside of Dublin, compared to 49% in 2014. Similarly, 57% of site visits in 2015 were to locations outside of Dublin, up from 43% in 2014.

In Clare, Tipperary and Limerick 132 IDA-Supported companies supported 18,966 jobs last year.

I set out below a breakdown of site visits to Tipperary, Clare and Limerick for the period in question. As the table shows, there was a total of 114 IDA Ireland-sponsored site visits to these three counties.

With regards to data on site visits for this calendar year, information is only yet available for the first three months. That is because IDA Ireland collates such data on a quarterly basis and the information has yet to be compiled in respect of the second quarter. The number of site visits for the second quarter should, however, be available within a matter of weeks.

IDA Ireland-sponsored Site Visits 2014-2015 and 1st Quarter 2016

County

2014

2015

Site Visits Q1 2016

Clare

9

12

3

Limerick

22

40

9

Tipperary

3

12

4

Total

34

64

16

Export Controls

Ceisteanna (49)

Clare Daly

Ceist:

49. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation if she will consider a ban on the issue of military and dual-use licences for export to Saudi Arabia, in view of the European Parliament resolution of 25 February 2016 on the humanitarian situation in Yemen and the recent ban on military and dual-use items imposed by the Netherlands. [22549/16]

Amharc ar fhreagra

Freagraí scríofa

All export licence applications are considered by my Department having regard to EU sanctions. There are currently no sanctions in place in relation to Saudi Arabia.

The European Parliament resolution cited by the Deputy called for “an initiative aimed at imposing an EU arms embargo against Saudi Arabia”. No arms embargo has been announced or introduced. If an EU embargo is introduced in relation to Saudi Arabia, my Department will ensure that export licences are issued in compliance with that embargo.

I understand that there is not a national ban on the export of dual-use and military items from the Netherlands to Saudi Arabia. Earlier this year the Dutch Parliament passed a motion that the government strictly apply the terms of the EU Common Position on the assessment of military export licences when considering export licence applications involving Saudi Arabia. They called on the government to deny any licences involving Saudi Arabia where there is a risk that military and dual-use goods can be used for violations of human rights and international humanitarian law.

All proposed exports of military list and dual-use products to Saudi Arabia, as with all other destinations, are reviewed by my officials on a case-by-case basis with regards to the EU Common Position on the assessment of military export licences. In addition, applications involving Saudi Arabia are examined by officials of the Department of Foreign Affairs and Trade having regard to any foreign policy concerns that may arise.

Transatlantic Trade and Investment Partnership

Ceisteanna (50)

Niall Collins

Ceist:

50. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation to provide an update on the latest discussions on Transatlantic Trade and Investment Partnership; and if she will make a statement on the matter. [22786/16]

Amharc ar fhreagra

Freagraí scríofa

The 14th round of Transatlantic Trade and Investment Partnership negotiations between the EU the US took place from 11–15 July, 2016 in Brussels.

During this round, negotiators discussed all three pillars of the proposed agreement, namely, market access for EU and US companies, regulatory cooperation and trade rules. Both sides have now arrived at proposals covering 97% of tariff lines, and the remaining 3% will be addressed during end game negotiations.

A dedicated chapter for small and medium firms has been created, in order to facilitate trade for SMEs by eliminating excessive fees and charges, and by streamlining the processes involved in the export of goods.

Intensive discussions were held on trade and sustainable development, including labour and the environment. A proposal was put forward for a chapter on energy and raw materials which includes proposals to promote green innovations and trade of green technologies.

The objective for the forthcoming Rounds will be to continue the work of consolidation in all areas in order to end up with an ambitious, high standard and balanced TTIP agreement that responds to both EU and US interests.

Employment Rights

Ceisteanna (51)

Mick Barry

Ceist:

51. Deputy Mick Barry asked the Minister for Jobs, Enterprise and Innovation her views on the actions of a company (details supplied) which has replaced its directly employed staff with staff whose contracts deem them to be nominally self-employed and paid by delivery with the result that their hourly earnings are on average less than the minimum wage. [22791/16]

Amharc ar fhreagra

Freagraí scríofa

I have forwarded the details supplied by the Deputy to the Workplace Relations Commission for examination and action if appropriate.

Irish employment rights law makes a distinction between a contract of service, which applies to an employer-employee relationship, and a contract for service, which applies in the case of a self-employed person. In effect, employment rights legislation does not apply to independent sub-contractors with the exception of the Safety, Health and Welfare at Work Act, 1989 and the Equality Act, 1998.

Ireland has a well-resourced and proactive labour inspectorate, which now forms part of the Workplace Relations Commission (WRC) and there are already existing mechanisms in place to tackle this issue. Inspections are undertaken on the basis of risk analysis which identifies certain sectors, as a result of complaints received and on a routine basis. Where the WRC inspection service receive complaints in relation to bogus self-employment or bogus sub-contracting, they are forwarded to the Revenue Commissioners and/or the Department of Social Protection (Scope Section) for investigation either solely by the recipient, or jointly with the Workplace Relations Commission.

In most cases it will be clear whether an individual is employed or self-employed. Where there is doubt in relation to the employment status of an individual the relevant Departments and Agencies will have regard to the Code of Practice for Determining Employment or Self-Employment Status of Individuals. This Code was drawn up and agreed in 2007 by the Office of the Revenue Commissioners, Department of Social and Family Affairs, Department of Enterprise, Trade and Employment, the Irish Congress of Trade Unions and the Irish Business and Employers Federation.

The Deputy will be aware that the Department of Finance and Department of Social Protection have conducted a joint public consultation on the Use of Intermediary-Type Structures and Self-Employment Arrangements.

Clearly there is a convergence of interests between my Department and the Departments of Finance and Social Protection in addressing this issue. Apart from the significant losses to the Exchequer arising from cases of so called bogus self-employment, the practice has serious implications from an employment rights perspective. In this respect it is important that individuals are correctly designated as regards employment status, so that those who ought to be designated as employees are not deprived of employment rights. This is particularly the case for vulnerable workers who may not feel in a position to object to certain arrangements.

Industrial Disputes

Ceisteanna (52)

Mick Barry

Ceist:

52. Deputy Mick Barry asked the Minister for Jobs, Enterprise and Innovation her views on the lockout of workers at Waterford Airport. [22792/16]

Amharc ar fhreagra

Freagraí scríofa

I understand that the dispute at Waterford Airport relates to the reduction in working hours for staff members due to the closure of Belgian-based carrier VLM, which operated passenger services from Waterford Airport to Luton.

I very much appreciate the challenges facing Waterford Airport at the moment due to the recent loss of the service operated by VLM and I understand that efforts are continuing to find an alternative airline to provide passenger services to/from Waterford which will deliver vital regional connectivity for business, tourism and leisure. As the Deputy will be aware, my colleague the Minister for Transport, Tourism and Sport has lead responsibility for promoting the development of a vibrant, competitive and progressively regulated aviation sector.

I would like to assure the Deputy that the State’s industrial relations machinery is available to assist in the resolution of this dispute. I would urge both parties to engage fully in negotiations at local level and with the State's industrial relations machinery in order to resolve their differences in this instance. Even what often appears to be an intractable dispute is capable of resolution where both sides engage constructively and in good faith in this voluntary process. The principle of good faith implies that both sides in a dispute make every effort to reach an agreement and endeavour, through genuine and constructive negotiations, to arrive at a conclusion that is satisfactory to all concerned.

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