Written Answers Nos. 215 - 224
215. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation her views on the prospect of a free trade agreement between the EU and the UK and the application of state aid rules in the EU and the UK; and if she will make a statement on the matter. [3741/17]
Amharc ar fhreagraThe UK’s exit negotiations from the EU will not commence until Article 50 has been triggered, which the UK Government have indicated they intend to do no later than the end of March 2017. These negotiations could take the maximum allowed period of two years to complete. Ultimately any deal on Article 50 will require the agreement of the EU Commission, Council and Parliament.
I note from a recent speech by Prime Minister May that the UK are seeking a Free Trade Agreement with the European Union and to secure the closest possible future relationship for Britain with the EU, a goal that Ireland shares.
Until the UK leaves the EU, all types of subsidies, both within the UK and across the other 27 EU Member States are subject to the discipline imposed by EU State aid law.
Provisions on state aid (subsidies) and competition are a common feature of EU Free Trade Agreements to ensure any aid granted by authorities to private entities does not distort competition. The terms of any future free trade agreement, including state aid rules, would be a matter for the EU 27 and the UK to agree as part of any negotiation.
Notwithstanding what the EU and UK agree to bilaterally, both remain bound by their obligations under the WTO, which has its own set of subsidy rules contained in the Agreement on Subsidies and Countervailing Measures. WTO subsidy rules are similar in principle to EU State aid rules in many respects.
216. Deputy David Cullinane asked the Minister for Jobs, Enterprise and Innovation if her attention has been drawn to reports of blacklisting within the construction sector; and if she will make a statement on the matter. [3607/17]
Amharc ar fhreagraI am not aware that there is a practice of trade union representative blacklisting by employers in Ireland. I would consider blacklisting of workers for whatever reason as an unacceptable practice – particularly if it arose in relation to workers exercising their rights to take part in trade union activities.
The Deputy will be aware that there are already legislative protections in place where workers are victimised by an employer for trade union activity.
Section 6(1) of the Unfair Dismissals Act 1977 (as amended) provides that, in general, a dismissal shall be deemed to be unfair unless an employer can prove that there were substantial grounds justifying the dismissal. In addition, Section 6 also deems certain dismissal situations to be unfair as well as outlining certain criteria on which dismissals may be adjudicated as fair. One type of dismissal situation deemed to be unfair is referred to in Section 6(2)(a) of the Act which indicates that a dismissal is unfair where it can be shown that the dismissal resulted wholly or mainly from an employee’s trade union membership or activities, either where those activities take place outside working hours or at those times during working hours when permitted by the employer. While, in general, an employee must have been in the same employment for at least a year in order to bring a claim for unfair dismissal under the Unfair Dismissals Acts, one of the exceptions to the one-year service requirement includes dismissals falling under section 6(2)(a) of the Act.
In addition, the Industrial Relations Act 1990 (Code of Practice on Victimisation) (Declaration) Order 2004 provides that where there is a dispute in an employment where collective bargaining fails to take place and where negotiating arrangements are not in place, no person, be they union representative, individual employee or manager, should be victimised or suffer disadvantage as a consequence of their legitimate actions or affiliation arising from that dispute. A procedure for addressing complaints of victimisation in such cases is set out the Industrial Relations (Miscellaneous Provisions) Act 2004. A complaint for breach of this legislation may be presented to the Workplace Relations Commission who can enforce rights breached. That Code of Practice was amended in October 2015 to include as a form of victimisation the use by employers of inducements (financial or otherwise) designed specifically to have an employee forego collective representation by a trade union.
The Industrial Relations (Amendment) Act 2015 also provides for enhanced protection for individuals who are victimised as a result of invoking the provisions of the 2001/2004 Industrial Relations Acts through a trade union or for acting as a witness or comparator for those provisions.
If there is evidence that this is a widespread practice – and to date I do not have such evidence on the matter – I will be happy to consider the matter further with both sides of industry.
If the Deputy has any information regarding blacklisting of workers in Ireland, he might bring it either to my attention or to the Data Protection Commissioner.
217. Deputy David Cullinane asked the Minister for Jobs, Enterprise and Innovation if her attention has been drawn to reports of bogus employment contracts in the construction sector; and if she will make a statement on the matter. [3608/17]
Amharc ar fhreagraI assume the Deputy is referring to a case reported in the media earlier this week about a number of construction workers who have sought clarification of their employment status from the Department of Social Protection. It would be inappropriate for me to comment on this particular case.
More generally, apart from significant losses to the Exchequer that can arise 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 their employment rights. This is particularly the case for vulnerable workers who may not feel in a position to object to certain arrangements.
Ireland has a well-resourced labour inspectorate, which forms part of the Workplace Relations Commission (WRC) and there are existing mechanisms in place to determine the employment status of individuals or groups. 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 relevant Government Departments with ICTU and IBEC.
Where an individual believes they are being deprived of employment rights applicable to employees they may refer a complaint to the WRC where the matter can be dealt with by way of mediation or adjudication leading to a decision that is enforceable through the District Court. WRC inspectors can also be asked to investigate certain breaches. Complaints can be made on a single complaint form available at the WRC’s website www.workplacerelations.ie. The WRC’s Customer Service Section, which provides information to both employers and employees in relation to employment, equality and industrial relations rights and obligations, can be contacted at Lo-call: 1890 80 80 90 or 059-9178990.
218. Deputy Brendan Smith asked the Minister for Jobs, Enterprise and Innovation her views on the recent statement by the European Commissioner Moscovici in relation to the finalisation of trade deals as a result of Brexit; and if she will make a statement on the matter. [3611/17]
Amharc ar fhreagraThe UK’s exit negotiations from the EU will not commence until Article 50 has been triggered, which the UK Government have indicated they intend to do no later than the end of March 2017. These negotiations could take the maximum allowed period of two years to complete. Ultimately any deal on Article 50 will require the agreement of the EU Commission, Council and Parliament.
Trade is the exclusive competence of the European Commission who negotiate trade agreements on behalf of Member States. Therefore, the UK cannot sign a trade agreement with a third country until after it has left the EU. I understand that recent comments from Commissioner Moscovici referred to this fact.
When the negotiations begin for a comprehensive trade deal between the EU and the UK Ireland will play a key influencing role in the development of the EU’s strategy. Ireland will seek to ensure the best possible outcomes for its citizens, the economy, Northern Ireland and the Common Travel Area.
219. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation further to Parliamentary Question No. 314 of 19 January 2017, if she or her Department has asked DG Competition to consider increasing grant aid to a single undertaking to between €300,000 and €500,000 over a three-year fiscal period as a policy response to safeguard Irish jobs and domestic enterprises that would be negatively impacted by the UK leaving the EU; and if she will make a statement on the matter. [3725/17]
Amharc ar fhreagra220. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation further to Parliamentary Question No. 315 of 19 January 2016, if she or her Department has asked DG Competition to review and increase the current state aid de minimis thresholds, by enterprise for each of the following specific enterprise stabilisation measures: State-backed credit insurance, export trade financing, export credit guarantees and employment subsidy schemes, following the UK’s decision to leave the EU; and if she will make a statement on the matter. [3726/17]
Amharc ar fhreagraI propose to take Questions Nos. 219 and 220 together.
The Government is acutely conscious of the uncertainty created by Brexit and the need to consider the types of supports that Irish businesses require to address the negative implications of Brexit and maintain their competitiveness.
The UK vote has led to uncertainty in our trading relationships with the UK, resulting in large part from a degree of volatility in the Euro/Sterling exchange rates. Exchange rate fluctuations will pose real challenges for low margin exporting sectors reliant on the UK market. The volatility of exchange rates is clearly evident from developments over the last few months.
Given Brexit is likely to represent a structural shift in the UK trading relations with partners, short medium and long term responses are needed. These include market diversification, cost reduction, value-add, innovation and price repositioning. My Department and agencies are putting in place measures to address these issues for client companies.
My Department, along with the Department of Finance, the Strategic Banking Corporation of Ireland (SBCI), Enterprise Ireland (EI) and stakeholders (such as SFA, ISME, IBEC and Chambers) is in the process of conducting a structured engagement with industry. The purpose of this engagement is to deliver an evidence base, on which Government appropriate, tailored and targeted responses can be based to meet real identified business needs. Work on this is advanced and the outcome of this structured engagement may lead to further discussions on State Aid concerns.
The Deputy will be aware that EU Regulation No 1407/2013 (the de minimis Regulation) sets out the rules for granting small amounts of financial aid to enterprises which are unlikely to affect trade and distort competition (de minimis aid). Generally, public bodies are allowed to grant aid to a single undertaking of up to €200,000 over a 3 year fiscal period without prior notification or approval from DG Competition. The Regulation requires that the aid is ‘transparent’.
Specific arrangements on de minimis aid apply in the following sectors:
- road freight transport sector
- primary production of agricultural products
- production, processing and marketing of fishery and aquaculture products.
As part of the revision of the General Block Exemption Regulation (GBER) under the State Aid Modernisation Agenda, Member States and the Commission discussed a proposal to increase the de minimis threshold in 2013. A number of Member States suggested increasing the de minimis threshold to €500,000 over a three year fiscal period. The European Commission rejected the proposal on the basis that the amount was substantial and could distort the competition in the Internal Market. A more modest increase to €300,000 was also declined. The current State Aid framework does not allow for the re-calibration of aid intensity rates under the GBER or de minimis thresholds.
My Department has also initiated engagement with senior officials from the DG Competition to ensure Ireland can deliver the necessary supports to Irish enterprises within the EU State Aid rules. These discussions are by no means over and will continue to address all relevant State Aid issues, if and when, the need arises to discuss initiatives or proposed schemes.
221. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation her views on whether the current regulatory framework for the resale of tickets for entertainment and sporting events is fit for purpose; if she is the lead Minister in this area; and if she will make a statement on the matter. [3727/17]
Amharc ar fhreagraAs the Deputy is aware, there is ongoing public concern about the resale of tickets for entertainment and sporting events. In response to that concern, I recently launched a public consultation on the issue together with the Minister for Transport, Tourism and Sport and the Minister for Tourism and Sport. Though ticket resale has been the subject of considerable comment, there is a lack of reliable information about important aspects of the practice, including its extent, the sources of tickets put up for resale, and the prices achieved, as opposed to advertised, on the secondary ticket market. The aim of the consultation is to provide us with a better understanding of the issue and to help us identify the practical measures that might be taken to give consumers fairer access to tickets in the future. Those measures may include changes to the existing regulatory framework. That will be determined following an assessment of the responses to the consultation and other relevant factors.
My Department has overall responsibility for consumer protection. The Minister for Transport, Tourism and Sport and the Minister for Tourism and Sport have a role on the issue because of the wish to ensure that fans can access tickets for sporting events on fair terms and because of commitments given to UEFA in connection with the Euro 2020 Championship and to be given to World Rugby in connection with the bid for the 2023 Rugby World Cup. Major concerts and sporting events also draw large numbers of visitors to Ireland and are important for the tourism sector.
222. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation her views on Ireland’s fall in the 2017 Bloomberg Innovation Index international rankings; and if she will make a statement on the matter. [3733/17]
Amharc ar fhreagraAs Minister for Jobs, Enterprise and Innovation, I am committed to improving Ireland’s innovation performance. While we have fallen one place on the global Bloomberg Innovation Index, it can be noted that Ireland has improved across a number of the sub-indicators that make up this index. In particular, Ireland’s productivity has climbed from 12th to 6th place and in the area of manufacturing value added our performance has risen from 7th to 2nd place. Ireland is performing well from a European perspective, with the latest European Innovation Scoreboard showing that Ireland climbed from 8th to 6th place. We are leading in Europe in the economic effects indicator, which captures economic success stemming from innovation in terms of employment, revenue and exports.
Innovation 2020, Ireland's cross-governmental strategy for Research and Development, Science and Technology, is based on a shared vision of Ireland becoming a global innovation leader, driving a strong, sustainable, high employment economy and a better society. This strategy, led by my Department, sets out a roadmap to deliver on our vision and focuses on the excellence of our research, the development of our talent and the impact of our investment. Continued implementation of Innovation 2020 will enable us to further narrow the gap with the world’s most innovative countries and drive our objective of becoming a global innovation leader.
223. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation her views on the analysis in the publication (details supplied) regarding FDI development in Ireland with respect to regional spread of FDI jobs; the wage level of FDI employment compared to domestic enterprises; and if she will make a statement on the matter. [3734/17]
Amharc ar fhreagraI always welcome academic contributions to the wider national debate on how Ireland can best benefit from our record high levels of foreign direct investment (FDI). I also accept that FDI can make an even bigger contribution, all over Ireland, than it is now. However, I think it is quite clear that the impact of FDI on our economy and society has been – and continues to be – overwhelmingly positive.
For a start, overseas investment has played a huge part in our country’s economic recovery and continues to drive job creation across Ireland. IDA Ireland’s record results for 2016, which reflected our best ever job gains and levels of new investment, speak for themselves. Those results show that in 2016 every regional location in Ireland saw net job increases, with 52% of all jobs created by the Agency’s clients last year based outside of Dublin. This reflects the intensive focus being placed on the best possible regional dispersal of FDI investments.
The level of employment in overseas companies is only part of this positive picture. FDI companies generally offer excellent quality and well paid jobs which have significant direct and indirect impacts on communities across the country. The average salary in IDA approved jobs was €51,237 in 2016, up from €49,118 in 2015. This is above the national average annual earnings of €45,075 in 2015. These salary levels are sustained by the high value jobs which we target in a diverse range of key sectors including international financial services, technology, life sciences and engineering.
It is also the case that the jobs created by FDI drive other economic activity in the State. It is estimated that every ten positions created by an IDA client company support a further seven jobs elsewhere in the economy. When these jobs are included, the total employment impact of IDA Ireland clients extends to approximately 340,000 people.
While there is always room for improvement, I believe our FDI led growth model has proven its worth in terms of attracting employment and investment. I am confident that it will remain a key element of our national economic strategy for many years to come and that it will continue to yield benefits for people all over Ireland.
224. Deputy Kevin O'Keeffe asked the Taoiseach and Minister for Defence when members of the Naval Service who participated in the international rescue mission in the Mediterranean Sea will receive payment for their full overseas service. [3621/17]
Amharc ar fhreagraMembers of the Naval Service have already received the main allowance due to them for their participation in the humanitarian rescue operation in the Mediterranean. The issue of further recompense in respect of this mission was the subject of a claim under the Defence Forces Conciliation and Arbitration Scheme. There was adjudication hearing in respect of PDFORRA’s claim in relation to their members service as part of the Operation Pontus missions. This hearing took place on Wednesday 26 October 2016, following which, further discussions took place between my Department and PDFORRA. The outcome of these discussions is currently under consideration by the Department in consultation with the Department of Public Expenditure and Reform and I hope that the matter should be concluded within the next few weeks.
