Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Thursday, 3 Nov 2016

Written Answers Nos 1-30

Employment Support Services

Ceisteanna (4)

Bríd Smith

Ceist:

4. Deputy Bríd Smith asked the Minister for Jobs, Enterprise and Innovation the steps she will take to ensure that any company supported by her Department, or other State agency under her influence, that creates jobs in the coming period does not use schemes such as JobPath; and if she will make a statement on the matter. [33150/16]

Amharc ar fhreagra

Freagraí scríofa

The JobPath scheme falls under the remit of my colleague, the Minister for Social Protection, Leo Varadkar TD. The conditions of the various Government supports under JobPath are therefore a matter for the Department of Social Protection.

Conditions attached to the grants made by my Department’s agencies do not preclude participation in JobPath; agency client companies are therefore open to accessing DSP data on persons on the Live Register who may be suitably qualified for job opportunities within their companies.

Under Pathways to Work 2013, which is led by DSP, a Protocol on co-operation between the Department of Social Protection (DSP), my Department and the enterprise agencies was agreed. This includes IDA Ireland, Enterprise Ireland (EI), the Local Enterprise Offices (or LEOs) and Údarás na Gaeltachta. The aim of the Protocol is to maximise the recruitment of suitably skilled personnel from the Live Register by the enterprise agencies client companies.

IDA Ireland works with DSP, EI and other agencies to help provide job opportunities for unemployed people in IDA client companies. Areas of cooperation include participation in jobs fairs, sharing information on job announcements and Skillnets initiatives in areas like med tech, bio pharma and engineering.

Co-operation between employers and the education and training system is crucial in developing effective responses to skills needs. This co-operation is being strengthened through the new Regional Skills Fora to connect employers, enterprise development agencies and education and training providers.

My Department’s agencies do not collate data on the number of persons taken on by client companies under JobPath – these statistics are collated by DSP.

I would therefore suggest that the Deputy make contact with DSP for any further detailed information on the JobPath scheme.

Questions Nos. 5 to 10, inclusive, answered orally.

Brexit Issues

Ceisteanna (11)

Charlie McConalogue

Ceist:

11. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation her plans to minimise the impact of Brexit in County Donegal; the engagement she has had with the IDA and Enterprise Ireland to ensure they secure new investment in County Donegal in view of Brexit; and if she will make a statement on the matter. [32939/16]

Amharc ar fhreagra

Freagraí scríofa

The outcome of the UK referendum on exiting the EU was not what Ireland hoped for but the Government has been preparing for such a result for over a year. The extent of the impact for all of Ireland, including border counties such as Donegal, will remain unclear until we know the outcome of the EU / UK negotiations.

I wish to assure the Deputy, however, that the Government is determined to meet this challenge and our preparations are currently intensifying at both political and official level. In this context, I secured additional funding in Budget 2017 to provide more than 50 new posts for the Department and its agencies to support a response to Brexit. In addition, I understand that both IDA and Enterprise Ireland already have dedicated Brexit teams in place.

Over €1 billion of Enterprise Ireland client exports go to Northern Ireland and I am very conscious of challenges that may be faced by Irish companies operating in close proximity to the border. Enterprise Ireland is working with its 1,500 clients who export to the UK to determine the individual challenges they face, and to identify strategies where possible to help mediate against the potential impact.

IDA Ireland will continue to work to its business development strategy for the North West, which includes Donegal, to help it maximise investment in the Region. Among its targets, this strategy will see the Agency seeking to secure potential “second site” investments from companies with existing operations in Dublin, as well as pursuing new investments for the region.

Questions Nos. 12 to 15, inclusive, answered orally.

Economic Competitiveness

Ceisteanna (16)

Niall Collins

Ceist:

16. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation the actions the Government is taking to increase competitiveness in view of the increased competition from the UK as a location to establish a business compared to Ireland; and if she will make a statement on the matter. [33007/16]

Amharc ar fhreagra

Freagraí scríofa

As Minister for Jobs, Enterprise and Innovation, my focus is on improving Ireland’s competitiveness performance. Ensuring Ireland is a competitive location to establish and run a business is essential for job creation. Brexit means we must do more across a wide range of policy areas to enhance our attractiveness as a location to start and locate a business relative to the UK. The most recent data from the World Bank’s Ease of Doing Business shows that Ireland is ahead of the UK in terms of ease of starting a business and paying tax but is behind the UK in the overall rankings.

To improve business competitiveness we must consolidate Ireland’s traditional strengths and address those areas where we lag behind the UK.

We are stepping up investment in infrastructure and SMEs access to finance is improving. We are reforming our tax system to encourage enterprise growth. We are driving the implementation of our research strategy Innovation 2020. As part of the Budget my Department secured additional resources for our enterprise agencies to put more people on the ground in foreign markets to attract investment and to help Irish business who export to the UK and helping others diversify into new markets. I have asked that Enterprise Ireland intensify its work with clients exporting to the UK by providing support to improve their competitiveness in the market through its management capability and development programmes such as LEAN. I will ensure that the 2017 Action Plan for Jobs provides a sharp focus on specific aspects of the competitiveness agenda, particularly in the area of costs and ease of doing business.

Jobs Data

Ceisteanna (17)

Bríd Smith

Ceist:

17. Deputy Bríd Smith asked the Minister for Jobs, Enterprise and Innovation if she will ensure that when her Department is recording job figures from IDA or Enterprise Ireland supported companies, that the numbers of such jobs that are supported by the Department of Social Protection, such as JobPath and so on, are separately reported; and if she will make a statement on the matter. [33002/16]

Amharc ar fhreagra

Freagraí scríofa

My priority is to deliver on the Government’s goal to help create 200,000 additional jobs by 2020, including 135,000 jobs outside Dublin. I am working closely with the Minister for Social Protection to ensure we can provide every opportunity for those unemployed to secure a job.

In September 2013, in the context of maximising the employment of appropriately skilled people from the Live Register by enterprise agency clients, a protocol was agreed for co-operation between the Department of Social Protection and my Department, EI, IDA and the LEOs. 'Pathways to Work’ contains a commitment for my Department and the enterprise development agencies to continually monitor recruitment from the Live Register, working with the CSO.

In relation to the recording the jobs figures in firms supported by the enterprise agencies, my Department undertakes an Annual Employment Survey of client companies of EI, IDA and Údarás na Gaeltachta. The survey, in existence since 1972, is a census of employment in the agency supported firms. It is a voluntary survey and elicits the limited necessary employment numbers in response to two short questions, with minimum administrative burden for the 8,000 companies surveyed. It is not designed to report on jobs supported by the activities of other Government Departments.

Research and Development Funding

Ceisteanna (18)

James Lawless

Ceist:

18. Deputy James Lawless asked the Minister for Jobs, Enterprise and Innovation the immediate contingency steps she is taking with European colleagues to ensure EU research and development funding is not reduced following the decision by the UK voters to leave the EU. [32996/16]

Amharc ar fhreagra

Freagraí scríofa

On 24 July the Government adopted a Contingency Framework identifying key policy issues to be managed by Government Departments arising from the referendum vote in the UK to leave the EU.

In that Framework we commit to undertaking a full assessment of the opportunities and threats arising from the future disengagement of the UK from the EU, including in relation to Horizon 2020 funded research. This will include an assessment of the possibility of a reduced overall fund if and when the UK’s contribution to the EU is withdrawn at some point. This work is being led by my Department in association with other Government Departments and relevant state agencies which fund research.

In addition, I have secured €162.5 million for Science Foundation Ireland in 2017, an increase of €5.5 million over 2016 levels.

The full impact of the UK’s departure on the EU Research and Innovation budget will depend on the conclusion of negotiations between the UK and the EU.

My officials continue to maintain regular contact with the European Commission and Member States to maximise the commitment of EU funding to Research and Innovation. The importance of budgets for these Framework Programmes in supporting economic growth and jobs is recognised by the European Council, the European Commission and the European Parliament.

Credit Guarantee Scheme

Ceisteanna (19)

Niall Collins

Ceist:

19. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation her views on the current drawdown levels issued under the credit guarantee scheme; the total value of approvals on the same dates; if she will provide a county breakdown of each drawdown and approval; and if she will make a statement on the matter. [33011/16]

Amharc ar fhreagra

Freagraí scríofa

Since inception in 2012 to 21 October 2016 (the latest available confirmed data from the Strategic Banking Corporation of Ireland, the scheme) 384 SME loans to a total of €61,867,894 have been approved under the 2 existing Credit Guarantee Schemes.

I will send the Deputy separately the breakdown of the value of approvals by county.

SBCI has also advised that approximately €17 million of approvals had been drawn down, but it is not possible to provide a breakdown of drawdowns by county, for data protection and confidentiality reasons.

A loan under a Credit Guarantee Scheme is one with a higher degree of risk, because the SME in question has already tried and failed to get a bank loan before applying under the Scheme. Once a loan is approved, it is important to note that it is entirely a commercial matter for the SME to decide whether or not the loan will actually be drawn down in whole or part.

While the benefit of a guarantee is offered to a borrower under the scheme, some borrowers do not proceed with the guarantee. A significant number of cases are listed as ‘Pending’ by the participating lenders, and the operator only holds partial information on such cases.

The Government is committed to ensuring that our SMEs have access to appropriate finance for their business needs either from banking or non-banking sources, which will ensure that they continue to grow and develop.

The CGS is a central element of those supports which when combined with other Government initiatives such as Microfinance Ireland, the Strategic Banking Corporation of Ireland, the Credit Review Office and the Prompt Payment Code should enable companies to expand, service new markets and grow employment.

CGS 2012 - County split

County

Total €

Carlow

1,770,000

Cavan

350,000

Clare

732,000

Cork

4,008,000

Donegal

197,000

Dublin

26,963,000

Galway

2,366,500

Kerry

960,000

Kildare

4,565,000

Kilkenny

295,000

Laois

2,306,950

Leitrim

1,100,000

Limerick

4,520,344

Louth

1,460,000

Mayo

933,100

Monaghan

250,000

Offaly

640,000

Roscommon

80,000

Sligo

57,000

Tipperary

1,071,000

Waterford

750,000

Westmeath

1,057,000

Wexford

1,266,000

Wicklow

1,551,000

County to be confirmed by Participating Lender

2,619,000

Total

61,867,894

EU Directives

Ceisteanna (20)

Brendan Ryan

Ceist:

20. Deputy Brendan Ryan asked the Minister for Jobs, Enterprise and Innovation the steps she has taken to date to transpose Directive 2014/104/EU on antitrust damages actions into Irish law; and if she will confirm that the directive will be fully transposed by 27 December 2016 in order to ensure that Irish businesses will be able to fully recover damages suffered as a result of infringements of EU competition law such as price fixing. [33014/16]

Amharc ar fhreagra

Freagraí scríofa

Some provisions of Directive 2014/104/EU on certain rules governing actions for damages under national law for infringements of competition law provisions already exist in national legislation or in existing court rules. The other provisions of the Directive that need to be transposed are being addressed in the transposing legislation and by amending certain court rules.

My Department is working closely with the Office of Parliamentary Counsel, the Department of Justice and Equality and the Courts Service to ensure the Directive will be transposed by the deadline of 27 December 2016.

Industrial Relations

Ceisteanna (21)

Thomas P. Broughan

Ceist:

21. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation her views on whether an employer labour conference type body should be re-established to facilitate good industrial relations throughout the economy; and if she will make a statement on the matter. [32890/16]

Amharc ar fhreagra

Freagraí scríofa

I agree with the underlying premise of the Deputy's question that good industrial relations practices and a good IR environment are critically important for workers, for businesses, and the general public. Both I, as Minister, and the industrial relations institutions of the State will continue to strive for improvements in this area.

It is not current Government policy to create a new body to intervene in industrial relations disputes. The Programme for Partnership Government states that the Government will respect the Workplace Relations Commission and the Labour Court as the proper forum for state intervention in industrial relation disputes and will ensure that both bodies are supported and adequately resourced to fulfil their roles

I consider that the creation of a Labour Employer Conference as previously existed to intervene in protracted industrial relations disputes runs the risk of undermining the role of the WRC and the Labour Court. While high profile disputes can lead to such calls, there are very many other disputes each year resolved by the WRC and Labour Court without disruption. Parties to many of these disputes might feel that they had not exhausted the IR process or done the upmost for their members if they did not have the matter considered in some way by this type of higher body.

There has been significant progress made in recent years in improving, reforming and enhancing both the industrial relations institutions of the State and the industrial relations legislative framework utilised by workers and employers. I consider that these are working well as evidenced by the resolution of many difficult and protracted disputes in recent times and the flexibility displayed.

Film Industry Development

Ceisteanna (22)

Pat Casey

Ceist:

22. Deputy Pat Casey asked the Minister for Jobs, Enterprise and Innovation the consultation and decision-making processes that were employed by Enterprise Ireland in making the decision to sell the shareholding in a studio (details supplied); the reasons conditions were not placed on the sale to ensure that the studio remains a film making studio in the long term; and if she will make a statement on the matter. [32984/16]

Amharc ar fhreagra

Freagraí scríofa

Ardmore Studios is a commercial concern owned 68.33% by private shareholders. Enterprise Ireland’s 31.67% stake in the ownership of Ardmore Studios is a legacy shareholding acquired as a result of an equity investment and a loan by Nadcorp (a predecessor State Agency) under an Agreement that dates back to 27 August 1986.

The sale of the Ardmore Studios is a commercial decision by the owners of the Studios.

As a passive investor, Enterprise Ireland has not been involved in the day-to-day business of running Ardmore Studios. Furthermore while Enterprise Ireland offers supports to exporting companies involved in film and the creative sector, policy responsibility for the development of the film industry rests with my colleague, Ms Heather Humphreys, T.D., Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs.

Ardmore Studios is being placed on the market for sale as a going concern. Enterprise Ireland has not placed any pre-conditions on the pending sale of Ardmore Studios due to the existence of planning restrictions on the site which safeguard its use as a film making studio into the future.

At the appropriate time, a proposal for decision on the sale of Enterprise Ireland’s shareholding will be reviewed by Enterprise Ireland from a commercial and legal perspective to ensure receipt of fair market value and return for the taxpayer.

Brexit Issues

Ceisteanna (23)

Bernard Durkan

Ceist:

23. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which she remains satisfied of the ability of Ireland to attract sufficient foreign direct investment and indigenous investment to compensate for any geopolitical changes that might occur in the European Union; and if she will make a statement on the matter. [32992/16]

Amharc ar fhreagra

Freagraí scríofa

There is a whole of Government approach in place focusing on Brexit issues and my Department and its agencies are to the forefront of this effort. We are very much at the start of a process that will lead to the UK renegotiating its relationship with the EU and it is unclear how, or when, this will be finalised.

What is clear is that any changes in the UK’s relationship with the EU will present both challenges and opportunities for the Irish economy.

In Budget 2017, I secured the largest capital provision made to my Department over the past fifteen years. This increase will be used to fund additional measures to support companies impacted by Brexit, as well as new competitive funds for the Regions focused on job creation.

I also secured additional Pay monies which will provide for 50+ new posts for the Department and its agencies to respond to Brexit and to work with companies to help them respond to the challenges and opportunities of Brexit.

In terms of FDI, IDA Ireland is constantly engaged with clients across its entire portfolio and in the months leading up to the UK referendum it engaged with clients and prospective clients in relation to the potential impact of Brexit. IDA Ireland believes there are potential FDI opportunities for Ireland as a result of the UK vote to leave the EU. These opportunities are likely to be found along differing timelines, partially influenced by sector. I am confident that Ireland is well positioned to maximise any opportunities that Brexit may present from an FDI perspective.

However, of particular concern to me right now are the immediate challenges being faced by Irish SMEs due to a weakened sterling. Many of the sectors particularly exposed, such as food, construction, retail, tourism and traditional manufacturing, have deep roots across the regions and they provide significant employment.

From a strategic perspective Enterprise Ireland is assisting companies to maintain and grow UK exports and extend their international reach, as well as helping companies to enhance their competitiveness. The Local Enterprise Offices are also working closely with those clients likely to be impacted by Brexit.

I am working across Government to ensure that as Minister for Jobs, Enterprise and Innovation, any actions that are taken in response to Brexit are tailored, targeted and evidence based.

Trade Agreements

Ceisteanna (24)

Mick Wallace

Ceist:

24. Deputy Mick Wallace asked the Minister for Jobs, Enterprise and Innovation her views on the refusal of Wallonia to sign off on the EU Canada Comprehensive Economic Trade Agreement, CETA; and if she will make a statement on the matter. [32944/16]

Amharc ar fhreagra

Freagraí scríofa

CETA 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.

To meet the political concerns of certain Member States, the European Commission and Canada have agreed a Joint Interpretative Instrument to provide further assurances in relation to public services, labour rights and environmental standards and investment.

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.

Subsequently, intensive discussions were held between the Commission, Canada and representatives of the Belgium Federal and Regional Governments including Wallonia to address their concerns.

I am pleased to say that these discussions have resulted in all five Regional Parliaments being able to approve the Agreement, as confirmed by the Belgium Prime Minister.

As a result of these latest developments CETA has now be 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 for clarity amongst EU Member States and the Wallonian regional Government are to be welcomed, as I believe the Joint Interpretative Instrument, which has been agreed, provides valuable assurances.

Ministerial Meetings

Ceisteanna (25)

Maurice Quinlivan

Ceist:

25. Deputy Maurice Quinlivan asked the Minister for Jobs, Enterprise and Innovation the number of interactions and meetings she has had and held with the Irish Congress of Trade Unions specifically concerning Brexit; if she has formally requested that the Government working group on Brexit meet with the ICTU on a regular basis; and if she will make a statement on the matter. [32943/16]

Amharc ar fhreagra

Freagraí scríofa

I have met with a wide range of representative organisations since the result of the UK referendum in June

In early October I met with ICTU senior executives and other Union representatives in the context of my preparation of the Action Plan for Jobs for 2017. At that meeting we did discuss the concerns of ICTU in relation to Brexit, and the issues raised are being considered in conjunction with other Departments, and the agencies under the remit of my own Department, in the preparation of the Action Plan for Jobs and other initiatives.

In addition, together with the Minister for Public Expenditure and Reform, I co-chair the new Labour Employer Economic Forum (LEEF), of which the President of ICTU, Patricia King is a member. The LEEF held its first meeting in early October which was opened by the Taoiseach, and of course a number of Brexit related issues of concern were discussed.

In July I, together with Minister of State Pat Breen, held a meeting with ICTU officials, and the issue of Brexit was also raised in relation to the risk to pay and conditions for workers and the need for Ireland to manage this development.

Taxi Regulations

Ceisteanna (26)

Bríd Smith

Ceist:

26. Deputy Bríd Smith asked the Minister for Jobs, Enterprise and Innovation if she, her officials or any other State agency that she is aware of have been lobbied or approached by a company (details supplied) regarding the present regulations that govern the taxi industry; and if she will make a statement on the matter. [33000/16]

Amharc ar fhreagra

Freagraí scríofa

Since taking office neither I nor my officials have been specifically lobbied by the company referred to in relation to the regulations that govern the Irish taxi industry. I should make clear as well that my Department has no function or responsibilities in relation to the regulation of that industry in this country.

It is well known that the company in question has established a Customer Support Centre of Excellence in Limerick, to handle some of their worldwide activities. This project will employ about 300 staff when fully operational, which represents a significant and welcome investment for the city and the wider region.

In developing its investment plans for Limerick, the company would, of course, have had significant engagement with IDA Ireland in connection with its plans for the Customer Support Centre here. I would expect as well that the Agency will be in continued contact with the company, as it is with all of its clients who have a presence here in Ireland.

Tax Code

Ceisteanna (27)

Brendan Ryan

Ceist:

27. Deputy Brendan Ryan asked the Minister for Jobs, Enterprise and Innovation the status of her proposal to offer a lower rate of tax to returning emigrants; if she has discussed her proposals with the Minister for Finance; and her views on whether such a proposal complies with European Union law on the freedom of movement of workers. [33016/16]

Amharc ar fhreagra

Freagraí scríofa

The goal of this Government is to support the creation of an additional 200,000 jobs by 2020 with 135,000 outside Dublin, achieve sustainable full employment and attract back 70,000 emigrants. The Action Plan for Job is delivering on these targets.

There is demand for a range of skills and experienced professionals across the economy. But recent analysis by the Irish Tax Institute highlights that at lower income levels of €18,000, Ireland has the lowest effective personal tax rate of ten countries examined. However, Ireland’s ranking is less favourable at salary levels above €55,000. This is a disincentive to attracting talent to Ireland.

I am very pleased that within constrained resources the Minister for Finance has made progress on delivering the Government commitments to reduce personal tax, improve Ireland's competitiveness for talent and Brexit related measures. These measures should also enhance our ability to achieve our target of 70,000 returning emigrants.

I placed a strong emphasis on these areas in my discussions with the Minister for Finance in advance of the Budget, including in our engagements on 10 October in Limerick.

The Minister for Finance has committed to sustaining progress in these areas in future Budgets. I will continue to work with the Minister to enhance the overall the competitiveness of our personal tax regime for all workers and the overall attractiveness of Ireland’s offering.

Competition and Consumer Protection Commission

Ceisteanna (28)

Brendan Ryan

Ceist:

28. Deputy Brendan Ryan asked the Minister for Jobs, Enterprise and Innovation her views on whether there is inertia in the Competition and Consumer Protection Commission with regard to in-depth investigations into price fixing cartels and bid rigging; her further views on whether there is a lack of prosecutions for offences under the Competition Act 2002; and if she will make a statement on the matter. [33013/16]

Amharc ar fhreagra

Freagraí scríofa

The Competition and Consumer Protection Commission (CCPC) is the statutory independent body responsible for the enforcement of domestic and EU competition and consumer law in the State. Section 9 (5) of the Competition and Consumer Protection Act 2014 provides that the Commission is independent in the performance of its functions, including carrying out investigations of alleged anti-competitive practices. As investigations and enforcement matters generally are part of the day-to-day operational work of the Commission, I, as Minister for Jobs, Enterprise and Innovation, have no direct function in these matters.

However, the CCPC has advised that it is currently conducting 5 investigations into alleged anti-competitive practices. Two of these relate to alleged price fixing/bid-rigging activities. In addition, a case that the CCPC has sent to the Director of Public Prosecutions is scheduled to come up for trial in April 2017. Ultimately, it is a matter for the Courts to determine if criminal sanctions are warranted in any specific case.

During 2015, the CCPC received 74 allegations of competition law breaches (both civil and criminal) and opened two large scale investigations in respect of anti-competitive agreements, one of which involved searches at five premises in the bagged cement sector. This is in addition to the opening of a cartel investigation into allegations of a criminal breach of competition law in the aviation sector and the closing of two additional investigations.

I understand from the CCPC that, in addition to a bid rigging cartel case that is currently before the courts, in 2016 the CCPC has already conducted 21 searches of companies suspected of bid-rigging. This investigation is ongoing. In addition the CCPC routinely screens complaints alleging cartel activity and, where there is sufficient evidence, progresses these to investigation stage. While those with evidence can approach the CCPC confidentially, in order for a criminal case to proceed, those with information must be prepared to give evidence in court.

It is important to note that the CCPC investigates other infringements of competition law, not just hard-core cartel activities, which also may restrict competition.

If the Deputy is aware of any alleged anti-competitive behaviour that is being practised (be it price-fixing or bid-rigging), I would urge him to forward details to the CCPC for their attention.

Departmental Agencies Funding

Ceisteanna (29)

Bríd Smith

Ceist:

29. Deputy Bríd Smith asked the Minister for Jobs, Enterprise and Innovation the funding that will be granted by IDA Ireland, Enterprise Ireland or other State agencies under the aegis of her Department to client supported companies in 2017; and if she will make a statement on the matter. [33003/16]

Amharc ar fhreagra

Freagraí scríofa

Through Budget 2017 I have secured an Exchequer Capital allocation of €555 million for distribution across the Department’s Vote in 2017. This is the largest capital provision made to the Department over the past fifteen years. It is a 10% increase over the 2016 Revised Estimates Volume capital provision of €503 million.

This capital funding through my Department and Agencies is used to progress the jobs agenda and to further regional enterprise development and Ireland’s innovation capacity.

The funding provided through the Enterprise Agencies is a mixture of:

- Grants to, and investments in client companies,

- Research and Development grants to companies and across Ireland’s higher education institutions; and

- Infrastructure supports which are used to maintain and develop suitable property and research facilities for Irish based enterprise and scientists.

Currently the enterprise agencies are directly supporting over 411,000 jobs in Ireland across their client companies.

Allowing for the economic multiplier effect, a similar number of jobs, 400,000 plus, are indirectly being supported by the agency clients in services and sub-supply.

In recent weeks we have seen employment In Ireland continue to grow. It now exceeds 2 million people and represents the highest level of employment in Ireland since 2008. All 8 regions of the country have seen employment growth since the beginning of 2015. Recent CSO figures show that unemployment has dropped to 7.9%. The numbers unemployed have dropped to 172,900 – some 24,000 less than a year ago.

The additional €52 million in Capital funding for 2017 that I have secured is strong evidence of the Government delivering on its commitment to continue to deliver new jobs across every region. This additional 10% in capital funding will help us deliver on the Programme for Government commitment to create an additional 200,000 jobs by 2020 of which 135,000 are targeted for the regions.

For the Deputy’s information the indicative capital allocations across the Department’s Agencies for 2017 are as follows:

IDA Ireland.

- €137 million in 2017

- Up €25 million from its €112 million base this year.

- Representing a 22% increase over 2016 base.

Enterprise Ireland

- €185 million in 2017

- Up €11.4 million from 2016 base figure.

- Representing a 6.5% increase over 2016 base.

Local Enterprise Offices

- €22.5 million in 2017

- Up €4 million from 2016 base figure.

- Representing a 21% increase over 2016 base.

Science Foundation Ireland

- €162.5 million in 2017

- Up €5.5 million from 2016 base figure

- Representing a 3.5% increase over 2016 base.

The Programme for Research in Third-Level Institutions

- €14.22 million in 2017

- Up €4.2 million from 2016 base figure

- Representing a 41% increase over 2016 base.

The remaining €33 million in capital funding for 2017 will be distributed across other Agencies and programmes that span:

- InterTrade Ireland – approximately €5.5 million

- Tyndall National Institute – €4.5 million

- Ireland’s membership of, and participation in, International Research Organisations - approximately €19.5 million.

- The InterReg programme (a North/South collaborative programme) – approximately €3 million.

- The Credit Guarantee Scheme - €0.5 million.

- National Standards Authority of Ireland - €0.5 million.

The definitive distribution of the Department’s 2017 capital allocation will be determined through the 2017 Revised Estimates Volume (REV) process in the weeks ahead. It is expected that the 2017 Revised Estimates Volume will be published by my colleague, the Minister for Public Expenditure and Reform in early December.

Brexit Issues

Ceisteanna (30)

Charlie McConalogue

Ceist:

30. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation her plans to minimise the impact of Brexit in County Donegal; the engagement she has had with the IDA to ensure it secures new investment in County Donegal in view of Brexit; and if she will make a statement on the matter. [32938/16]

Amharc ar fhreagra

Freagraí scríofa

The outcome of the UK referendum on exiting the EU was not what Ireland hoped for but the Government has been preparing for such a result for over a year. The extent of the impact for all of Ireland, including border counties such as Donegal, will remain unclear until we know the outcome of the EU / UK negotiations.

I wish to assure the Deputy, however, that the Government is determined to meet this challenge and our preparations are currently intensifying at both political and official level. In this context, I secured additional funding in Budget 2017 to provide more than 50 new posts for the Department and its agencies to support a response to Brexit. In addition, I understand that both IDA and Enterprise Ireland already have dedicated Brexit units in place.

Over €1 billion of Enterprise Ireland client exports go to Northern Ireland and I am very conscious of challenges that may be faced by Irish companies operating in close proximity to the border. Enterprise Ireland is working with its 1,500 clients who export to the UK to determine the individual challenges they face, and to identify strategies where possible to help mediate against the potential impact.

IDA Ireland will continue to work to its business development strategy for the North West, which includes Donegal, to help it maximise investment in the Region. Among its targets, this strategy will see the Agency seeking to secure potential “second site” investments from companies with existing operations in Dublin, as well as pursuing new investments for the region.

Barr
Roinn