Written Answers Nos 201-220
201. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the degree to which she expects to be in a position to meet job creation targets in the manufacturing and services sector in each area throughout the country over the next five years; and if she will make a statement on the matter. [33185/16]
Amharc ar fhreagraThe goal of this Government is to support the creation of an additional 200,000 jobs by 2020 with 135,000 outside Dublin. These jobs will be in both the manufacturing and services sector. This is a whole of Government effort and is delivered through our integrated Action Plan for Jobs.
The Action Plan for Jobs is one of the Government’s key instruments to support job creation. The Action Plan for Jobs process is working. Since the first Plan was launched in early 2012, there are 176,800 more people at work bringing total employment in the State to 2,014,400 by end of June 2016. The annual jobs target is agreed in the Action Plan for Jobs – the target for 2016 is to help create an additional 50,000 jobs. We are making good progress. There were 36,000 additional people at work in the first six months of the year.
The Regional Action Plans for Jobs aim to have an additional 10% to 15% at work in each region by 2020. The first progress reports on the implementation of the eight Plans, covering the period to June 2016, are being finalised and will be published shortly.
The process to develop APJ 2017 is currently underway. My priority is to deliver a business environment which enhances our competitiveness and supports sustainable enterprise and employment growth in all regions. I will be working closely with colleagues across Government over the coming months to ensure that the 2017 Plan is ambitious and impactful and keeps us on track to deliver on our 2020 jobs targets.
202. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which innovation and technology is likely to feature in the creation of indigenous jobs throughout the country in the next five years; and if she will make a statement on the matter. [33186/16]
Amharc ar fhreagra203. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the degree to which investment in indigenous job creation and job creation through foreign direct investment are likely to avail of innovation, technology and EU support over the next three years; the number of jobs likely to benefit from such supports; and if she will make a statement on the matter. [33187/16]
Amharc ar fhreagraI propose to take Questions Nos. 202 and 203 together.
Innovation support makes a critical contribution to enterprise policy, and to the goal of developing a competitive national economy. By encouraging the development of new economic activities, Research, Development and Innovation policy-measures strengthen Ireland’s competitive advantage and build potential new areas of economic activity. The impacts of our investment in innovation and research include increased competitiveness, the creation and maintenance of high-value jobs and the attraction of foreign direct investment.
We know that investment in R&D translates into improved job creation and enterprise performance. Firms that invested in R&D grew employment by 14% between 2000 and 2014 while those that did not invest in R&D saw employment decline by 40%. Similarly, R&D performing companies grew exports by 181% between 2003 and 2014 compared to a loss of 42% in exports for non-R&D performing companies over the same period.
Innovation 2020 the Government’s strategy for research and development, science and technology emphasises the importance of innovation and technology in driving productivity growth and fostering competitiveness in a global market place. The strategy also calls attention to the role of innovation in contributing to employment, export and investment growth, as well as to the competitiveness of indigenous enterprise and in attracting and embedding Foreign Direct Investment in Ireland.
Enterprise Ireland (EI) plays a particularly important role in supporting job creation in Ireland. In 2015 EI helped in the maintenance and creation of 300,000 Irish jobs both directly and indirectly. Support for innovation and technology played a crucial role in delivering this result.
Enterprise Ireland offers commercialisation and technology transfer supports directed at generating spinout companies, boosting entrepreneurship and increasing licensing into industry. These supports include EI’s Commercialisation Fund and Campus Incubators as well as the Technology Transfer Strengthening Initiative which is overseen by Knowledge Transfer Ireland.
In addition, Enterprise Ireland operates a range of supports to help companies engage with third level researchers to undertake collaborative research for the benefit of companies. These collaborations are delivering impact and creating significant opportunities. A direct correlation has been found between collaboration activities, increased entrepreneurship and quantifiable increases in job creation.
Enterprise Ireland supports collaboration activities through a number of its initiatives - innovation voucher schemes, innovation partnerships, Technology Centres and Technology Gateways. In 2015 Enterprise Ireland supported 896 collaborative projects between business and Higher Education.
Enterprise Ireland has recently launched its Small Business Innovation Research Initiative (SBIR), a mechanism which enables public sector bodies to connect with innovative ideas and technologies, to provide novel solutions for specific public sector challenges and needs. SBIR is particularly suited to small and medium-sized business as contracts are of relatively low value and operate in short timescales.
IDA Ireland’s main objective is to encourage investment into Ireland by foreign-owned companies. Investments approved by IDA Ireland in the first half of 2016 will lead to the creation of 9,100 jobs as companies roll out their plans over the coming months and years. This performance is on a par with the first half of 2015 which was one of Ireland’s best years for Foreign Direct Investment (FDI).
The area of research, development and innovation (RDI) is of strategic importance to IDA Ireland. A company decision to invest in RDI may be to support improvement in productivity; to develop a strengthened reputation for quality or to develop new products and services.
IDA Ireland’s strategy Winning FDI 2015-2019 outlines a plan to support clients in creating 80,000 new jobs and increase employment in the client portfolio to 209,000 by 2019. Support for RDI will be key to achieving these targets. Research, development and innovation investments not only embed existing FDI operations and employment but pave the way for future investment, job creation and export growth. As the global battle for FDI intensifies, our investment in research and development will become even more critical to attracting and retaining FDI companies.
The increase in RDI investment since 2000 has improved our attractiveness as an FDI location. 60% (just under €60m) of IDA’s total grant-aid budget is allocated to RDI projects each year. This investment leverages RDI expenditure of €500m by IDA clients for these approved projects and an overall annual spend by MNCs of €1.4bn per annum on RDI. This has the effect of anchoring FDI clients and securing sustainable employment and related benefits to the Irish economy.
The National Support System for Horizon 2020, the EU Framework Programme for research and innovation, is coordinated by Enterprise Ireland. Horizon 2020 is part of the drive to create new growth and jobs in Europe, has a budget of almost €75 billion and runs over the period 2014-2020. Both Ireland’s indigenous and FDI companies are active users of Horizon 2020. Irish companies that compete successfully for funding from Horizon 2020 will boost their innovative capability and competitiveness which in turn will deliver strong national economic impacts, including job creation.
Demand for the Framework Programme from Irish companies has been high. In the first 33 months Ireland's draw down was €336.6 million, placing Ireland on target to meet its goal of securing €1.25bn from Horizon 2020 by 2020. Of this funding, over €104 million went to companies and €73.6 million of this went to SMEs. Ireland has the highest success rate in Europe for the Horizon 2020 SME Instrument with a 16% success rate, compared to a European average of 6%. Innovative Irish SMEs have secured €26.5 million. Enterprise Ireland client companies account for 56% of all company funding with IDA Ireland clients securing 21%.
70% of the Horizon 2020 budget (€52 billion) is to be allocated between 2017 and 2020, which gives Irish companies the opportunity to continue availing of these supports.
The recent national ex-post evaluation of the Seventh Framework Programme for Research and Technological Development (FP7) estimated that the European Commission contribution of €625M to Ireland from 2007 to 2013 would lead to an estimated 2,000 jobs created per year. It is expected that such figures will grow considerably in the context of Ireland’s current target to double participation in the period 2014-2020.
204. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the total number of new jobs created in the manufacturing sector in the past 12 months; her targets in this regard over the next year; the extent to which these jobs are likely to be spread throughout the country; and if she will make a statement on the matter. [33188/16]
Amharc ar fhreagraThe Action Plan for Jobs is one of the Government’s key instruments to support job creation. The Action Plan for Jobs process is working. Since the first Plan was launched in early 2012, there are 176,800 more people at work bringing total employment in the State to 2,014,400 by end of June 2016.
The goal of this Government is to support the creation of an additional 200,000 jobs by 2020 with 135,000 outside Dublin. This is a whole of Government effort and is delivered through our integrated Action Plan for Jobs.
The CSO’s Quarterly National Household Survey (QNHS) is the official source of employment data. The most recent figures available are for Q2 2016. According to the CSO, the numbers employed in the industry sector increased by 9,600 in the year to the end of Q2 2016, bringing total employment to 257,300 people.
The annual jobs target is agreed in the Action Plan for Jobs – the target for 2016 is to help create an additional 50,000 jobs across all sectors and all regions. There were 36,000 additional people at work in the first six months of the year. The 2017 jobs target will be agreed in the context of the 2017 Plan which is currently being developed by my Department.
The Regional Action Plans for Jobs aim to have an additional 10% to 15% at work in each region by 2020. The first progress reports on the implementation of the eight Plans, covering the period to June 2016, are being finalised and will be published shortly.
I will be working closely with colleagues across Government over the coming months to ensure that the 2017 Plan is ambitious and impactful and keeps us on track to deliver on our 2020 jobs targets.
205. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the total number of new jobs created in the services sector in the past 12 months; her targets in this regard over the next year; the extent to which these jobs are likely to be spread throughout the country; and if she will make a statement on the matter. [33189/16]
Amharc ar fhreagraThe Action Plan for Jobs is one of the Government’s key instruments to support job creation. The Action Plan for Jobs process is working. Since the first Plan was launched in early 2012, there are 176,800 more people at work bringing total employment in the State to 2,014,400 by end of June 2016.
The goal of this Government is to support the creation of an additional 200,000 jobs by 2020 with 135,000 outside Dublin. This is a whole of Government effort and is delivered through our integrated Action Plan for Jobs.
The CSO’s Quarterly National Household Survey (QNHS) is the official source of employment data. The most recent figures available are for Q2 2016. According to the CSO, the numbers employed in the services sectors (NACE sectors G to Q) increased by 27,500 in the year to the end of Q2 2016, bringing total employment to 1,394,000 people.
The annual jobs target is agreed in the Action Plan for Jobs – the target for 2016 is to help create an additional 50,000 jobs across all sectors and all regions. There were 36,000 additional people at work in the first six months of the year. The 2017 jobs target will be agreed in the context of the 2017 Plan which is currently being developed by my Department.
The Regional Action Plans for Jobs aim to have an additional 10% to 15% at work in each region by 2020. The first progress reports on the implementation of the eight Plans, covering the period to June 2016, are being finalised and will be published shortly.
I will be working closely with colleagues across Government over the coming months to ensure that the 2017 Plan is ambitious and impactful and keeps us on track to deliver on our 2020 jobs targets.
206. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which her Department encourages co-operation between job creation interests in County Kildare and Maynooth college with particular reference to the obvious benefits accruing from such a combination of interests; and if she will make a statement on the matter. [33190/16]
Amharc ar fhreagraCollaboration between job creation interests in the private and public sectors, together with the Higher Education Institutions, plays an important role in delivering on new ideas and initiatives to support job creation throughout the regions.
In this context, the Regional Action Plans for Jobs are playing a significant role in the delivery of regional enterprise and employment growth, by driving collaboration between key stakeholders and working in partnership with the enterprise sector to build on local strengths and deliver new ideas.
The Mid East Action Plan was launched in January 2016. The overarching objective of the Plan is to support the creation of an extra 25,000 jobs across Kildare, Meath and Wicklow by 2020. This represents an important step towards the Government’s ambition of creating 200,000 jobs across the State by 2020, with 135,000 of these to be outside Dublin.
The Mid-East Action Plan is being monitored and driven by an Implementation Committees, comprising representatives from the Enterprise Sector, as well as the Local Authorities, Enterprise Agencies, and other public bodies in the region, including Maynooth University.
Maynooth University has been involved in delivering several actions in the Plan in partnership with other public and private organisation, including Enterprise Agencies, the Local Enterprise Offices, and local business networks.
Examples of such collaborative initiative include the establishment of a Regional Skills Forum to foster better engagement between education providers, employers and other regional stakeholders, including Enterprise Agencies, on an ongoing basis, to collaborate in building the skills of the region. Maynooth University will also establish a ‘top table’ advisory forum on linking University and regional employment needs, which will include representation from IDA and Enterprise Ireland.
Other actions included in the Plan cover the Technology Transfer Strengthening Initiative, supported by Enterprise Ireland and Knowledge Transfer Ireland, which focuses on enabling the transfer of commercially valuable research outputs into industry; the New Frontiers Entrepreneur Development Programme - Enterprise Ireland’s national entrepreneur development programme for innovative, early-stage start-ups; and the part-funding by Enterprise Ireland of a new campus enterprise and technology hub (‘Eolas’) at Maynooth University, one of the key aims of which is to foster collaboration with industry and facilitate research commercialisation opportunities.
207. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which she remains satisfied that the full benefits from the knowledge development box remain available to the economy; and if she will make a statement on the matter. [33191/16]
Amharc ar fhreagraIreland is the first country world-wide to introduce an OECD compliant Knowledge Development Box (KDB) offering. The certainty, predictability and clear signal that this sends to enterprise – including both Irish owned and foreign owned entities establishing and doing business from here - remains essential. The KDB, introduced in Budget 2016 forms part of Ireland’s competitive offering to continue to attract FDI and to support Irish owned companies to innovate and to compete effectively on international markets. The Government and I are satisfied that the benefits of the Knowledge Development Box remain available to the Irish economy.
The continuing imperative to establish Ireland as the best place in which to succeed in business is reinforced in our national Enterprise and Innovation strategies. Our aim is that Ireland will be recognised as the place where businesses are innovative, competitive and productive – leading to growth that is sustainable and results in employment opportunities and a higher standard of living for all. These strategies set out the framework for investment over the coming decade to ensure that Ireland remains equally attractive to foreign direct investment and to Irish entrepreneurs and growth businesses in the context of an intensely competitive international environment.
The KDB complements the existing suite of initiatives and supports available to companies that undertake R&D activities in Ireland across the lifecycle of research and development – including R&D tax credits, RD&I grant supports, support for technology acquisition (S291A), significant state investments in National Research Centres and knowledge transfer infrastructures, and advisory supports for accessing Horizon 2020 funding – providing a competitive proposition for business investment.
The OECD nexus approach sets out the principles and guidelines under which income arising from IP assets can qualify for a lower rate of tax under a KDB initiative. Ireland’s KDB rate is 6.25 percent (half of the corporation tax rate of 12.5 percent) and is internationally competitive.
I received Cabinet approval last week for the publication of a Bill entitled Knowledge Development Box (Certification of Inventions) Bill 2016 to allow small and medium sized companies to avail of the Knowledge Development Box. Under the new scheme, the Patents Office will be the body certifying applications for inventions under the new certification scheme to check that they meet the criteria of being novel, useful and non-obvious.
The Bill is intended to open up the opportunity for companies across a broad spectrum to pay lower taxes on profits from Irish-based research and development activities. This includes companies in incubation units right through to high-potential start-ups in all industry sectors once they are generating income resulting from research and development activities. The scheme should serve to significantly boost Irish innovation and investment in research and development.
208. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which she remains satisfied of retaining the benefits of the 12.5% corporation profits tax to further industrial investment in the economy; and if she will make a statement on the matter. [33192/16]
Amharc ar fhreagraThe Programme for a Partnership Government sets out our clear commitment to retaining the 12.5% corporation tax rate.
At 12.5% Ireland has one of the most competitive headline corporate tax rates in the OECD. Ireland’s corporate tax rate of 12.5% on trading income is an important part of the Government’s strategy of creating an enterprise friendly environment to support enterprise and entrepreneurship and to attract jobs and investment to Ireland, countrywide. The 12.5% rate is absolutely written in stone.
Ireland’s international tax strategy (October 2016) states that the cornerstone of our competitive offering remains the 12.5% Corporation Tax rate. Our 12.5% corporate tax is underpinned by a competitive regime. Our world class research and development tax credit and our best in class OECD compliant knowledge development box are there to make sure that we are competitive. Our low rate applied to a broad base ensures sustainable economic growth which will maintain tax revenues. Our corporate tax trading rate 12.5% applies to a broad base to ensure sustainable economic growth which will maintain tax revenues.
It is important to note that tax is but one part of Ireland’s enterprise policy and our ability to attract foreign direct investment, to stimulate entrepreneurship and to support Irish owned enterprises in their ambition to internationalise and to scale. Our investments in developing our RD&I infrastructures, in our education system and in helping to create attractive places throughout Ireland in which to invest, live and work are all part of Ireland’s offering. Over the past decades, Ireland has built a comparative advantage in a number of sectors, including ICT, Medical Devices, Biopharma and a strong international reputation in Food, Business Services and Internationally Traded Financial Services. Our national enterprise policy, Enterprise 2025, has set out a clear vision and suite of actions to ensure that future economic growth and investment is sustainable over the longer term – built on the foundations of competitiveness, innovation and productivity.
209. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which she has engaged with investment and job creation interests in Northern Ireland with a view to maintaining the best possible relationship of a mutually beneficial nature with Northern Ireland and the EU in the aftermath of Brexit; and if she will make a statement on the matter. [33193/16]
Amharc ar fhreagraWhile Brexit may certainly pose a large number of challenges for Ireland and our economy, it should not prevent us from maintaining a strong relationship with the authorities in Northern Ireland.
My Department is continuing to work closely with its counterpart in Northern Ireland in support of InterTrade Ireland (ITI), the co-funded cross-border trade and business development body. ITI assists businesses, both north and south, to help foster growth and job creation through the provision of various enterprise programmes. ITI will also have an important role to play in the time ahead in helping companies involved in cross-border trade to address and overcome any hurdles associated with Brexit.
With regard to attracting Foreign Direct Investment (FDI), IDA Ireland and Invest Northern Ireland (INI) do in some instances compete to win new projects, just as they compete with other investment promotion authorities from all over the world. However, both Agencies also have a track record of working together, including cooperating on company visits where both jurisdictions are being considered by foreign companies. Furthermore, given that both our economies have highly educated and talented workforces, the IDA highlights this to prospective investors considering locating or expanding in the border area. In this way, the skills pool available on both sides of the border is therefore an advantage for both jurisdictions when it comes to securing new investment on the island of Ireland.
210. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which she has identified any infrastructural deficits in various areas throughout the country which may impede industrial expansion and job creation; her specific proposals to address these issues; and if she will make a statement on the matter. [33194/16]
Amharc ar fhreagraThe future resilience of our economy will rely on the ability of our enterprises to compete effectively in international markets, to anticipate and respond to a changing global environment, and to anticipate and respond to customer demands for new products, services and solutions. Enterprise 2025 set out an ambitious strategy, with the objective of delivering growth that is sustainable, that is led by strong export performance and that is underpinned by innovation, productivity and competitiveness.
Continued investment in competitively priced world class infrastructures, including energy, water, waste, and transport, is crucial to the delivery of our ambition for job creation and growth throughout our regions. Inadequate investment can dampen productivity growth, increase costs and limit regional and sector opportunities for indigenous enterprise development and for FDI. However, investment in infrastructures throughout the country has suffered during the economic downturn and needs to be redressed.
The reality is that we operate within EU fiscal rules and macro-economic stability remains key. Nevertheless and notwithstanding the welcome additional commitment to capital investment in Budget 2017, planned investment over the immediate term remains lower than we would like. In this context, our priorities must focus on the needs of the productive enterprise sector, to: protect prior investment in infrastructure (maintenance; asset renewal); address infrastructure bottlenecks which hinder productive activity; minimise the likelihood of new bottlenecks emerging; and provide additional infrastructure capacity and/or improved services in areas of likely economic development. Taken together, this will help unlock the potential of the regions throughout Ireland.
My Department plays a key role in advocating on behalf of enterprise to ensure that enterprise infrastructure needs are identified and investment prioritised. My Departments and its agencies are continually engaged with relevant stakeholders on the particular infrastructure needs required to support enterprise development and job creation – both nationally and through mechanisms such as the Regional Action Plans for Jobs. The stakeholders include other Government Departments with direct responsibility, regulatory bodies and public and private infrastructure providers. In addition, I am a member of the Economic Infrastructure and Climate Change Cabinet Committee. Officials from my Department are members of the relevant Inter-departmental Committees; on the Interdepartmental Steering Group for the National Planning Framework and its Economic and Demographic technical group.
I will continue to work with Ministerial colleagues to ensure we put in place the right policy and regulatory framework to meet the future infrastructure needs of a growing economy.
211. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation further to the publication of the autumn legislative programme, when legislative proposals regarding protections for workers on insecure, low-hour contracts will be published in 2016; and if she will make a statement on the matter. [33195/16]
Amharc ar fhreagraMy colleague, Minister Mitchell O’Connor, and I intend to bring forward proposals in this area for consideration by Government. In this respect, work is well advanced on developing a policy response to the University of Limerick (UL) study on zero hour contracts and low hour contracts.
The policy response is being informed by the UL study itself as well as the extensive material and practical examples provided by respondents to the public consultation conducted by my Department. Our proposals will address the issue of workers on low hour contracts who consistently work more hours each week but whose contracts do not reflect the reality of their hours. The proposals will also seek to ensure that employees are better informed about the nature of their employment arrangements and their core terms and conditions at an early stage in their employment. Furthermore, I intend to include provisions aimed particularly at low-paid, more vulnerable workers.
My Department is currently engaged in a dialogue process with ICTU and IBEC to secure broad agreement before proposals are finalised. This work is being progressed as expeditiously as possible.
212. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation the number of times the co-ordination group within her Department met since being established after the Brexit referendum result; the number of meetings planned for the remainder of the year and in q1 of 2017; and if she will make a statement on the matter. [33196/16]
Amharc ar fhreagraThe Coordination Group established within my Department and which consists of relevant enterprise, single market, and trade officials, together with the Chief Executive Officers of IDA and Enterprise Ireland, has met on five occasions to date this year. I chair this Group, and I will continue to do so as part of my Department’s ongoing response. A further four meetings of the group are scheduled for the remainder of this year and a schedule of meetings for 2017 is currently being coordinated.
The work of this group will feed into the Cabinet Committee on Brexit which is chaired by an Taoiseach and will also be supplemented by the Senior Officials Group on Brexit, which is being established in my Department and which will monitor developments across the Department on a regular basis at official level.
213. Deputy Mick Barry asked the Minister for Jobs, Enterprise and Innovation if she accepts that the negotiations between the EU and Canada over the CETA have now ended without agreement in view of its rejection by the Walloon Parliament; and if she will make a statement on the matter. [33261/16]
Amharc ar fhreagraCETA was discussed at the Informal Trade Council meeting in Bratislava on 23 September 2016. Member States highlighted the high quality of the Agreement reached with Canada and reaffirmed their desire to work towards signature.
At a further extraordinary meeting of the Trade Council on 18 October 2016, Trade Ministers did not agree to sign the Agreement. CETA was also discussed at the European Council on 22 October where all Member States apart from Belgium were in a position to support the Agreement.
As a result, the Belgium Federal and Regional Governments including Wallonia, the European Commission, and Canada held further talks to address the concerns of the Walloon Government. I am pleased to say that these discussions resulted in all five Regional Parliaments being able to approve the Agreement. To meet the political concerns of certain Member States, the EU and Canada have agreed a legally binding Joint Interpretative Instrument to provide further assurances in relation to public services, labour rights, environmental protection and investment.
As a result of these latest developments CETA has now been signed, paving the way for provisional application of the Agreement.
I believe that the efforts made by the EU and Canada to address the concerns of EU Member States and the Walloon Regional Government are to be welcomed, and I have confidence that the Joint Interpretative Instrument, which has been agreed, provides valuable assurances.
CETA represents a modern high standard agreement which has the ability to set a new global standard for Trade Agreements. CETA and the EU’s other trade agreements help to open new markets, break down barriers and provide new opportunities for Irish firms. It will increase access to public contracts, open up markets for services and offer predictable conditions for investors. Ireland stands to gain substantially from this Agreement and I am looking forward to Irish firms enjoying the benefits and new opportunities as soon as possible.
214. Deputy Mick Barry asked the Minister for Jobs, Enterprise and Innovation her plans to amend the legislation governing the work of the Low Pay Commission so that the minimum wage it recommends falls into line with the living wage; and if she will make a statement on the matter. [33262/16]
Amharc ar fhreagraThe Low Pay Commission was established last year through the National Minimum Wage (Low Pay Commission) Act 2015. Its principal function is, once each year, to examine the national minimum hourly rate of pay and to make a recommendation to the Minister respecting the rate, ensuring that all decisions are evidence based, fair and sustainable, and do not create significant adverse consequences for employment or competitiveness.
The Commission submitted its first report in July 2015. Its recommendation to increase the minimum wage from €8.65 to €9.15 per hour was accepted by Government and the increase came into effect on 1 January last.
The Commission’s second report was submitted to Government in July and the recommendation made by the Commission for an increase to €9.25 per hour was approved by Government on 11 October. I signed the Order on 13 October to effect the increase from 1 January next.
The Living Wage concept is grounded in the idea that a person’s wage should be sufficient to maintain a safe, decent standard of living. At an individual level the resources required to achieve a minimum essential standard of living is very dependent on family circumstances and thus the interaction of individual earnings with household income and State-provided supports such as Child Benefit, Family Income Supplement as well as supports available in relation to housing, education and health all contribute to an individual’s standard of living.
It is important that Ireland’s statutory National Minimum Wage and the Living Wage concept are not conflated. The Living Wage is a voluntary societal initiative centred on the social, business and economic case to ensure that, wherever it can be afforded, employers will pay a rate of pay that provides an income that is sufficient to meet an individual’s basic needs, such as housing, food, clothing, transport and healthcare. The Living Wage is voluntary and has no legislative basis and is therefore not a statutory entitlement. It is different to the National Minimum Wage which is a statutory entitlement and has a legislative basis.
The Programme for Partnership Government contains a commitment to reduce poverty levels by supporting an increase in the minimum wage to €10.50 per hour over the next five years and rely on the annual recommendations of the Low Pay Commission on the level of adjustment each year.
The independence of the Low Pay Commission is firmly established in the National Minimum Wage (Low Pay Commission) Act 2015 (the Act). The Commission can only operate in accordance with that statutory remit and make recommendations to the Minister in accordance with the criteria that are clearly and explicitly set out in the Act.
There are no plans to make any changes to the legislation as it currently stands.
215. Deputy John Brady asked the Minister for Children and Youth Affairs the reason the new affordable child care scheme announced in budget 2017 ignores professional childminders as is the choice made by many parents for their children as the best child care option as opposed to a crèche setting; and if she will make a statement on the matter. [33080/16]
Amharc ar fhreagraIn the best interests of children (and families) the scheme intends to make subsidies payable to services that are quality assured. Currently Tusla provides quality assurance for childcare services under the statutory registration and inspection regime.
Childminders who mind three or fewer pre-school children in the childminder’s own home are exempt from the Child Care Regulations, and are thus not subject to inspection by Tusla.
In order to meet the needs of parents whose preference is to use a childminder, and to build capacity to cater for increased demand in future years, the Department has commenced talks with Childminding Ireland (CMI) in recent months to explore a number of options around how quality can be assured within the childminding sector.
A Working Group has been established, chaired by CMI, and including officials from Tusla and the DCYA, to make recommendations on reforms for the sector including proposals in relation to quality assurance, whether on a voluntary/non-statutory basis in the short term, or on a mandatory/statutory basis in the long term. These would include recommendations in relation to childminders who are not currently eligible to apply for registration with Tusla (those minding three or fewer pre-school children, or those minding school age children only). The recommendations received are likely to include proposals to be progressed in the short, medium and long term.
216. Deputy John Brady asked the Minister for Children and Youth Affairs her views on whether the new affordable child care scheme is permissible under the Constitution, which pledges to hold the family at its core, when the new scheme favours a centre-based scheme with no regard for the parent's choice for a childminder over a crèche setting; and if she will make a statement on the matter. [33081/16]
Amharc ar fhreagraIn the best interests of children (and families) the scheme intends to make subsidies payable to services that are quality assured. Currently Tusla provides quality assurance for childcare services under the statutory registration and inspection regime.
Childminders who mind three or fewer pre-school children in the childminder’s own home are exempt from the Child Care Regulations, and are thus not subject to inspection by Tusla.
In order to meet the needs of parents whose preference is to use a childminder, and to build capacity to cater for increased demand in future years, the Department has commenced talks with Childminding Ireland (CMI) in recent months to explore a number of options around how quality can be assured within the childminding sector.
A Working Group has been established, chaired by CMI, and including officials from Tusla and the DCYA, to make recommendations on reforms for the sector including proposals in relation to quality assurance, whether on a voluntary/non-statutory basis in the short term, or on a mandatory/statutory basis in the long term. These would include recommendations in relation to childminders who are not currently eligible to apply for registration with Tusla (those minding three or fewer pre-school children, or those minding school age children only). The recommendations received are likely to include proposals to be progressed in the short, medium and long term.
217. Deputy Donnchadh Ó Laoghaire asked the Minister for Children and Youth Affairs if her attention has been drawn to concerns raised that an area under current excavation (details supplied) does not include underground cesspits which may also contain remains; if the commission is aware of such concerns; and if she will make a statement on the matter. [33111/16]
Amharc ar fhreagraI am aware that the Mother and Baby Homes Commission is conducting a test excavation at the site of the Children's Burial Ground/Memorial Garden located in the Dublin Road Housing Estate, Tuam, Co. Galway. The Commission has publicly stated that a sample of the site is being excavated to resolve a number of queries that the Commission has in relation to the interment of human remains at this location. The Commission has also clarified that only a fraction of the site will be excavated through test trenches, the locations of which have been informed by a Geophysical Survey carried out at the site in October 2015.
It is important to stress that the statutory Commission is independent in the conduct of its investigations. It has significant legal powers to assist in these enquiries. Therefore, the precise approach to its investigation is a matter for the Commission to decide and progress. I do not have any role or influence in these decisions.
If the Deputy, or any person, has information which they believe can assist the investigation, then I would encourage them to contact the Commission directly by email at info@mbhcoi.ie or on the confidential freephone number at 1800 80-66-88.
218. Deputy Donnchadh Ó Laoghaire asked the Minister for Children and Youth Affairs when the second interim report of the commission of investigation on mother and baby homes will be published; and if she will make a statement on the matter. [33112/16]
Amharc ar fhreagraI have received a second Interim Report from the Commission of Investigation into Mother and Baby Homes. Since receiving the Report I have met with the three members of the Commission to discuss the Report and the general progress being made with the investigation.
Given the scope of the Commission's work a number of topics in the Report extend beyond the remit of the Department of Children and Youth Affairs. For this reason, I am consulting with Cabinet colleagues and the Attorney General with a view to publishing the Report in conjunction with Government's response to the findings of the Report.
I am sensitive to the expectations of former residents and hope to conclude this process as quickly as possible.
219. Deputy Donnchadh Ó Laoghaire asked the Minister for Children and Youth Affairs if she will consider requesting an audit of adoption records to ascertain the scale of illegal and forced adoption that occurred within the state, particularly those associated with mother and baby homes; and if she will make a statement on the matter. [33113/16]
Amharc ar fhreagraI do not propose to request that a full audit of adoption records be undertaken.
220. Deputy Fiona O'Loughlin asked the Taoiseach and Minister for Defence if there is a mechanism in the Permanent Defence Force for recruiting medical officers internally; and if he will make a statement on the matter. [33092/16]
Amharc ar fhreagraFor the most part, Medical Officers are recruited as direct entrants into the Defence Forces. As such, there are no specific arrangements currently in place for recruiting medical officers internally from within the Defence Forces. However, there is no prohibition on same occurring and the matter is currently under active consideration. In addition, a new scheme for training medical graduates in military medicine is currently being finalised. The Terms and Conditions for suitably qualified members of the Permanent Defence Force to fill Medical Officer positions are currently under discussion within the Conciliation and Arbitration Scheme. The Deputy will appreciate that as discussions under the Scheme are confidential to that process, it would be inappropriate for me to make any comment at this time.
