Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Thursday, 21 Sep 2017

Written Answers Nos. 47-67

Brexit Issues

Ceisteanna (47)

Bernard Durkan

Ceist:

47. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which companies suffering from fallout from Brexit are likely to have their case considered and examined in the short term with a view to development of a strategy in the interim; and if she will make a statement on the matter. [40078/17]

Amharc ar fhreagra

Freagraí scríofa

Brexit presents the most significant economic challenge of the past 50 years and long-term, structural and disruptive change will emerge. Following the UK’s vote to leave the EU, the need to accelerate and implement competitiveness, innovation and market diversification strategies at a national and company level cannot be underestimated. My Department and Agencies have been at the forefront of providing information and advice to the business sector and in promoting and devising supports to that sector.

My Department has been working with the Department of Finance, Enterprise Ireland, the Strategic Banking Corporation of Ireland (SBCI) and the Department of Agriculture to develop potential supports to respond to the needs of businesses impacted by Brexit. In particular, work is progressing on the development of a proposed Brexit related Working Capital Guarantee Scheme and also scoping out the need for a longer term Business Development Loan Scheme which would assist firms in investing for a post-Brexit environment. Development of these proposed responses is subject to resources being agreed as part of the annual budgetary process.

In March 2017, Enterprise Ireland launched a ‘Brexit SME Scorecard’, a new interactive online platform which can be used by all Irish companies to self-assess their exposure to Brexit under six business pillars. Based on answers supplied by the user, the Scorecard generates an immediate report which contains suggested actions and resources, and information on events for companies to attend, to prepare for Brexit. To date approximately 1,500 companies have utilised the Brexit SME Scorecard.

Enterprise Ireland’s “Be Prepared Grant” provides client companies with the cost of preparing a plan to mitigate risks and optimise opportunities arising from Brexit. This grant support, of up to €5,000, can be used to help cover consultancy, travel and out of pocket expenses associated with researching the direction of their Brexit action plan.

Enterprise Ireland’s 2017-2020 Build Scale and Expand Reach Strategy and its new Eurozone Strategy to assist Irish exporters increase exports in Eurozone countries by 50% by 2020 is a medium term strategy particularly aimed at strengthening clients export offer and finding new export opportunities. Enterprise Ireland is proactively engaging with client companies on Brexit issues and is working with its Brexit exposed clients on a one-on-one basis.

At local level, the Local Enterprise Offices (LEOs) are hosting information events around the country for clients and other businesses impacted by Brexit. The objective of these sessions is to enable companies learn about the potential impacts and opportunities of Brexit, and to engage in a process of planning to ensure their companies have a robust strategy in place.

A key element of the range of LEO Brexit responses is a Lean4Micro programme, which was designed to encourage clients to adopt “Lean” business principles in their organisation to increase performance and competitiveness.

In addition to the LEO priming and business development grants, the LEOs are now offering two new funding programmes to assist micro-enterprises affected by Brexit. The Technical Assistance for Micro-exporters (TAME) grant is designed to help LEO clients to find new markets and exports by part-funding expenditure incurred investigating and researching export markets, e.g. exhibiting at Trade Fairs, preparing marketing material and developing websites specifically targeting export markets. The LEO Innovation and Investment Fund (LIIF) programme is a new scheme to support innovation in micro-enterprises and get them investor ready to scale their businesses.

Brexit Issues

Ceisteanna (48)

Bernard Durkan

Ceist:

48. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which her Department has redoubled its efforts to establish new markets inside and outside the European Union for Irish products in order to compensate for the consequences of Brexit; and if she will make a statement on the matter. [40091/17]

Amharc ar fhreagra

Freagraí scríofa

It is difficult at this early stage of negotiations to predict the full impact of Brexit. Much will depend on the nature of the future trade deal that will be negotiated between the EU and the UK. These negotiations are proving particularly complex and multifaceted.

Promoting diversified export markets in light of the potential impacts of Brexit is a key priority for my Department. With a small domestic market, further expansion in other markets is essential to our continued economic growth. Overall, export growth in Ireland in recent years has been exceptionally strong and exports continue to contribute positively to growth. Since 2009, the value of exports from Ireland has risen by over 60%.

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. In March of this year, the Government published a new Trade Strategy, Ireland Connected: Trading and Investing in a Dynamic World which supports an extensive programme of Ministerial-led trade missions, as part of a major drive towards market diversification. Promoting diversified export markets in light of the potential impacts of Brexit is a key priority for my Department. This includes markets that are growing and have scale as well as markets where we are already well established but with potential for further growth. The programme of trade missions and trade events for 2017 includes a substantive focus on the EU and third country markets. In 2017, we have 42 Minister led trade missions to existing and emerging markets. These have been orientated to reflect an increased focus on EU markets. Enterprise Ireland is also consistently working with client companies focussing on enhancing their competitiveness, capability and levels of innovation to assist them to diversify into new markets.

Later this month I will be leading a Trade and Investment Mission to Japan which will intensify Ireland’s efforts in further developing the economic and trade links between Ireland and Japan, at this time of enhanced economic partnership. This mission will reinforce the potential for Irish companies in the Japanese market and provide a platform for accelerated export growth and investment opportunities.

The EU’s suite of Free Trade Agreements with third Countries help to open new markets, break down barriers and provide new opportunities for Irish firms. These existing EU Agreements and new trade deals will continue to be very important for Ireland. With a small domestic market, further expansion in other markets is essential to our continued economic growth. In this regard Ireland will continue to support the EU’s ambitious programme of negotiating new Free Trade Agreements giving Irish Firms expanded market access and a predictable trading environment in third countries.

Brexit Issues

Ceisteanna (49)

Bernard Durkan

Ceist:

49. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which new trading links for Ireland continue to be established globally; the extent to which it is expected that Ireland can benefit from such developments in the future; and if she will make a statement on the matter. [40093/17]

Amharc ar fhreagra

Freagraí scríofa

With a small domestic market, further expansion in other markets is essential to Ireland’s continued economic growth. Overall, export growth in Ireland in recent years has been exceptionally strong and exports continue to contribute positively to growth.

The EU’s suite of Free Trade Agreements with third Countries help to open new markets, break down barriers and provide new opportunities for Irish firms. The EU-Canada Comprehensive Economic and Trade Agreement (CETA) which will be provisionally applied on the 21st September covers virtually every aspect of economic activity. It will remove over 99% of tariffs and will create sizeable new market access opportunities in services and investment in many sectors for Irish firms.

Irish firms will be able to bid for Canadian public contracts at the federal and sub-federal level. They will benefit from the recognition of product standards and certification, thus saving on ‘double testing’ on both sides of the Atlantic. CETA provides significant opportunities for the Irish dairy industry and has strong protections for our beef industry through restricted quotas for Canadian beef entering the EU. There are a wide range of sectorial opportunities for Irish firms in Canada, including financial software, telecoms, digital media, agricultural machinery and life-sciences and medical devices. The provisional application of CETA will ensure that Irish firms can immediately benefit from the Agreement and in turn generate jobs and growth for Ireland.

On the 6th July 2017 the EU and Japan announced that they had reached political agreement on the EU-Japan Economic Partnership Agreement. The agreement between the European Union and Japan will be the most important bilateral trade agreement concluded by the European Union. This trade deal has the potential to generate significant benefits for Ireland. Later this month I will be leading a Trade and Investment Mission to Japan which will intensify Ireland’s efforts in further developing the economic and trade links between Ireland and Japan, at this time of enhanced economic partnership. This mission will reinforce the potential for Irish companies in the Japanese market and provide a platform for accelerated export growth and investment opportunities.

On 13th September 2017, following the State of the Union address by President Juncker, the Commission punished its proposals for mandates seeking authorisation to open negotiations for Free Trade Agreements with both Australia and New Zealand.

However, the global trading environment is uncertain, particularly in light of Brexit and an increase in protectionist sentiment. The EU’s suite of Free Trade Agreements coupled with our programme of trade and investment missions have provided a key foundation on which to further build our strong economic and trading links in export markets and these will continue into the future.

Ireland will continue to support the EU’s ambitious programme of negotiating new Free Trade Agreements giving Irish Firms expanded market access and a predictable trading environment in third countries. To this end, I have also commissioned a major examination of the economic opportunities and impacts for Ireland arising from EU Free Trade Agreements including CETA. This study is expected to commence in October 2017.

Enterprise Data

Ceisteanna (50)

Niall Collins

Ceist:

50. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of enterprise start-ups by sector in each of the years 2006 to 2016 in tabular form. [40118/17]

Amharc ar fhreagra

Freagraí scríofa

The Central Statistics Office publishes data relating to newly registered businesses on an annual basis since 2008, as part of their Business Demography reporting. The data from 2008 to 2015 is contained in Appendix 1.

Enterprise Ireland is the state agency under my aegis with responsibility for the development and growth of Irish enterprises in world markets. Enterprise Ireland works in partnership with Irish enterprises to help them start, innovate, scale and win export sales in global markets.

A key focus of Enterprise Ireland’s activity is supporting start-ups and the start-up ecosystem as illustrated by the following EI programmes and service level agreements:

- National Entrepreneurial Development Programme

- Competitive Start Fund

- High Potential Start Ups equity support

- Regional Accelerator Scheme 2015 -2017

- Campus Incubator Scheme

- Seed and Venture Capital Scheme 2013 -2018

- Service Level Agreement in place with the BICs (Business Incubation Centres)

- Service Level Agreement in place with Local Enterprise Offices to support micro-enterprise.

Appendix 2 below presents the number of enterprise start-ups (High Potential Start Ups and Companies supported by the Competitive Start Funds) supported directly by Enterprise Ireland in each of the years 2006 to 2016, by sector.

The Local Enterprise Offices also promote a culture of entrepreneurship and support start–ups in their local area. Details of the number of LEO enterprise start-ups by sector in each of the years 2014 to 2016 are set out in Appendix 3 below. These figures are based on the number of priming grants issued by the LEOs in the years in question. (It should be noted that the LEO client database was reviewed as part of the process of restructuring the enterprise supports for micro-enterprises and so comparative data for the years prior to 2014 is not available.)

Details of the number of applications in the Best New Idea and Best Start-up Categories of the annual Ireland’s Best Young Entrepreneur (IBYE) competition, which has been run by the Local Enterprise Offices (LEOs) since 2014, are set out in the table below. The purpose of the IBYE awards is to promote entrepreneurship as a career choice among young people. Information detailing the breakdown of the applications into individual enterprise sectors is not collated.

Numbers of IBYE applications 2014-2016

No. of applications

2014

2015

2016

Best New Idea Category

823

861

1,069

Best Start-up Category

381

400

590

Appendix 1: Central Statistics Office data

2008

2009

2010

2011

2012

2013

2014

2015

All legal forms of ownership

Business economy excluding activities of holding companies (B to N,-642)

15,442

17,846

13,954

14,344

15,080

13,824

16,257

18,100

Industry (B to E)

732

970

778

895

925

968

1,110

1,186

Mining and quarrying (B)

23

33

..

..

20

26

18

18

Manufacturing (C)

620

777

650

770

806

841

997

1,060

Food products, beverages and tobacco (10 to 12)

..

91

73

104

115

133

160

182

Textiles and wearing apparel (13,14)

41

42

..

45

54

46

51

65

Leather and related products (15)

..

..

..

..

..

..

..

..

Wood and wood products, except furniture (16)

36

34

28

49

48

46

79

79

Paper and paper products printing and reproduction of recorded media (17,18)

67

92

71

75

91

97

100

86

Coke and refined petroleum products (19)

..

3

..

..

0

..

2

..

Chemicals and pharmaceuticals (20,21)

17

27

18

24

..

29

31

..

Rubber and plastic products (22)

..

20

22

24

22

..

..

18

Other non-metallic mineral products (23)

46

48

42

42

42

34

46

49

Basic metals and fabricated metal products (24,25)

164

205

176

176

132

116

164

168

Computer, electronic, optical and electrical equipment (26,27)

24

39

35

40

35

52

48

55

Machinery and equipment n.e.c. (28)

..

..

21

18

23

31

33

39

Transport equipment (29,30)

..

12

8

11

..

13

13

20

Furniture and other manufacturing (31,32)

72

90

79

99

102

108

119

124

Repair and installation of machinery and equipment (33)

55

50

38

56

104

117

129

131

Electricity, gas, steam and air conditioning supply (D)

23

87

56

..

34

..

31

43

Water supply, sewerage, waste management and remediation activities (E)

66

73

..

67

66

..

64

64

Construction (F)

3,443

3,573

2,467

2,589

2,757

2,473

3,526

4,226

Business economy services excluding activities of holding companies (G to N,-642)

11,268

13,304

10,709

10,860

11,397

10,384

11,621

12,689

Wholesale and retail trade, repair of motor vehicles and motorcycles (G)

2,453

2,758

2,552

2,683

2,704

2,304

2,468

2,573

Motor trades (45)

430

427

455

463

508

428

510

516

Wholesale trade (46)

655

883

664

708

776

663

667

708

Wholesale of information and communication equipment (465)

24

24

26

23

17

24

27

..

Retail trade (47)

1,367

1,449

1,433

1,512

1,420

1,213

1,291

1,349

Retail sale in non-specialised stores (471)

226

239

227

229

224

226

218

248

Retail sale of food, beverages and tobacco in specialised stores (472)

164

213

205

227

205

153

171

165

Retail sale of automotive fuel in specialised stores (473)

40

39

48

52

33

31

35

30

Retail sale of information and communication equipment in specialised stores (474)

..

67

69

44

45

37

47

39

Retail sale of other household equipment in specialised stores (475)

168

139

143

138

141

108

102

113

Retail sale of cultural and recreation goods in specialised stores (476)

86

98

105

79

71

62

51

76

Retail sale of other goods in specialised stores (477)

518

534

506

577

466

407

447

444

Retail sale via stalls and markets (478)

..

20

20

33

48

43

48

43

Retail trade not in stores, stalls or markets (479)

103

100

110

134

187

145

172

191

Transportation and storage (H)

1,665

1,454

1,047

981

1,005

805

1,026

1,044

Land transport (49)

1,366

1,097

743

678

689

534

750

..

Water transport (50)

..

..

10

..

10

..

..

..

Air transport (51)

11

..

3

..

7

..

..

5

Warehousing and support activities for transportation (52)

..

139

109

122

118

89

86

132

Postal and courier activities (53)

206

199

182

160

181

160

175

197

Accommodation and food service activities (I)

1,167

1,159

1,137

1,232

1,205

1,142

1,251

1,452

Accommodation (55)

124

170

100

127

123

128

188

240

Food and beverage service activities (56)

1,042

989

1,037

1,105

1,082

1,014

1,063

1,212

Information and communication (J)

969

1,154

1,108

1,181

1,275

1,249

1,333

1,375

Publishing activities (58)

116

133

133

122

131

134

109

108

Picture, video and television programmes, sound recording and music publishing activities (59)

154

193

166

167

181

189

213

229

Programming and broadcasting activities (60)

6

..

..

..

..

18

24

23

Telecommunications (61)

49

75

64

63

45

36

57

60

Computer programming, consultancy and related activities (62)

617

709

700

780

863

832

886

904

Computer programming, consultancy and related activities (620)

617

709

700

780

863

832

886

904

Computer programming activities (6201)

128

..

208

154

261

271

294

..

Computer consultancy activities (6202)

327

315

289

422

428

385

408

384

Computer facilities management activities (6203)

4

..

0

..

6

5

4

..

Other information technology and computer service activities (6209)

159

202

203

..

168

170

180

..

Information service activities (63)

26

..

..

..

..

40

45

51

Financial and insurance activities excluding activities of holding companies (K-642)

437

898

448

385

519

639

418

544

Financial service activities excluding activities of holding companies (64-642)

209

502

232

222

350

448

251

341

Insurance, reinsurance and pension funding, except compulsory social security (65)

34

49

21

20

17

17

18

20

Activities auxiliary to financial services and insurance activities (66)

194

348

195

143

152

174

149

183

Real estate activities (L)

934

1,407

925

855

915

862

1,171

1,406

Real estate activities (68)

934

1,407

925

855

915

862

1,171

1,406

Buying and selling of own real estate (681)

19

..

18

11

..

..

27

32

Buying and selling of own real estate (6810)

19

..

18

11

..

..

27

32

Renting and operating of own or leased real estate (682)

525

..

584

595

631

..

931

1,064

Renting and operating of own or leased real estate (6820)

525

..

584

595

631

..

931

1,064

Real estate activities on a fee or contract basis (683)

389

513

323

249

..

267

213

310

Real estate agencies (6831)

122

132

83

67

70

55

63

74

Management of real estate on a fee or contract basis (6832)

267

381

240

182

..

212

150

236

Professional, scientific and technical activities (M)

2,579

3,343

2,556

2,643

2,715

2,431

2,800

3,000

Legal and accounting activities (69)

604

840

634

663

557

432

563

519

Legal activities (691)

220

311

239

236

211

146

212

190

Legal activities (6910)

220

311

239

236

211

146

212

190

Accounting, bookkeeping and auditing activities, tax consultancy (692)

384

529

395

428

346

286

351

329

Accounting, bookkeeping and auditing activities, tax consultancy (6920)

384

529

395

428

346

286

351

329

Activities of head offices, management consultancy activities (70)

601

747

695

689

743

780

818

960

Activities of head offices (701)

..

46

18

13

26

29

25

64

Activities of head offices (7010)

..

46

18

13

26

29

25

64

Management consultancy activities (702)

..

701

677

676

717

751

793

897

Public relations and communication activities (7021)

46

39

40

20

28

30

28

30

Business and other management consultancy activities (7022)

..

662

637

656

689

721

765

867

Architectural and engineering activities technical testing and analysis (71)

534

628

480

494

610

497

502

..

Architectural and engineering activities and related technical consultancy (711)

513

597

456

469

584

476

486

..

Architectural activities (7111)

137

203

203

168

133

116

147

131

Engineering activities and related technical consultancy (7112)

375

393

253

301

450

360

339

..

Technical testing and analysis (712)

21

32

24

25

26

21

17

15

Technical testing and analysis (7120)

21

32

24

25

26

21

17

15

Scientific research and development (72)

36

101

35

45

48

55

55

..

Research and experimental development on natural sciences and engineering (721)

..

84

26

34

38

44

..

..

Research and experimental development on biotechnology (7211)

..

20

..

..

13

11

9

13

Other research and experimental development on natural sciences and engineering (7219)

22

64

..

..

25

34

..

..

Research and experimental development on social sciences and humanities (722)

..

17

9

11

10

11

..

21

Research and experimental development on social sciences and humanities (7220)

..

17

9

11

10

11

..

21

Advertising and market research (73)

108

142

119

138

131

134

150

164

Advertising (731)

85

116

98

120

..

119

..

149

Advertising agencies (7311)

78

..

90

..

117

110

130

138

Media representation (7312)

7

..

8

..

..

9

..

11

Market research and public opinion polling (732)

23

26

21

18

..

15

..

15

Market research and public opinion polling (7320)

23

26

21

18

..

15

..

15

Other professional, scientific and technical activities (74)

649

849

562

560

589

488

661

665

Specialised design activities (741)

197

292

217

257

228

166

246

244

Specialised design activities (7410)

197

292

217

257

228

166

246

244

Photographic activities (742)

98

101

108

114

136

112

159

151

Photographic activities (7420)

98

101

108

114

136

112

159

151

Translation and interpretation activities (743)

57

62

36

55

51

39

63

60

Translation and interpretation activities (7430)

57

62

36

55

51

39

63

60

Appendix 2: Start ups supported by Enterprise Ireland

Sectors

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Total for each sector

BPO & Consumer Business Services

6

15

5

6

3

17

19

32

37

38

23

201

Construction; Cleantech & Consumer

6

3

5

5

15

16

22

18

22

30

34

176

Consumer Food (incl. meat & dairy); Seafood & Horticulture

4

4

6

2

1

2

1

3

7

10

3

43

Dairy; Functional Foods/Ingredients; Beverages

4

1

2

2

2

0

2

8

4

12

11

48

Digital Technologies

33

22

32

33

30

71

79

92

73

85

101

651

Electronics

3

10

4

3

4

9

2

5

3

2

1

46

Engineering

9

2

8

5

4

2

10

5

13

11

3

72

Fin Tech & Education Services

5

2

5

6

5

11

8

7

11

12

28

100

Life Sciences

6

9

4

10

14

20

14

13

12

14

23

139

Primary Meats & Food Technology

0

0

0

0

1

0

0

1

0

0

0

2

Timber; Paper Print & Packaging

0

2

0

1

1

0

0

5

1

3

2

15

Total for each year

76

70

71

73

80

148

157

189

183

217

229

1493

Source: Enterprise Ireland Annual Reports 2006 - 2016
Appendix 3
Local Enterprise Offices - Number of enterprise start-ups (priming grants issued) by sector 2014-2016

Local Enterprise Offices by Sector

2014

2015

2016

Business Services

70

55

42

Clothing & Fashion

16

16

14

Communications, Media & Entertainment Services

35

30

28

Craft

21

25

23

Customer Services

40

35

25

Electronics

7

7

3

Engineering

18

10

18

Environment/Green Technologies

15

9

4

Food Manufacturing & Processing

70

71

94

Food Primary Sectors

6

5

8

Furniture/Light Consumer Goods Manufacture

8

4

6

Manufacturing Other

58

58

45

Medical Devices Manufacture

4

6

7

Packaging Manufacturing

1

3

2

Software/IT

44

64

39

Grand Total

413

398

358

Office of the Director of Corporate Enforcement Staff

Ceisteanna (51)

Niall Collins

Ceist:

51. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation if she will report on the recruitment of a digital forensics specialist within the ODCE. [40120/17]

Amharc ar fhreagra

Freagraí scríofa

Staffing resources are sought and allocated across my Department and its Offices, including the ODCE, in the context of the requirement to manage the pay bill and staff numbers in accordance with Government policy, utilising available resources in the most effective and efficient manner as appropriate to business needs and priorities. My Department's HR Unit works with individual business units and the Department's Management Board on the allocation of resources and this includes the ODCE.

In line with this ongoing consideration and allocation of resources, a need for a new post of 'Digital Forensic Specialist' (Principal Officer level) within the ODCE was identified and a recruitment competition was conducted by the Public Appointments Service (PAS) in early 2017. On foot of that competition, an appointment was made to the post with effect from end-May 2017.

Comprehensive Economic and Trade Agreement

Ceisteanna (52)

Niall Collins

Ceist:

52. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the ratification process for ratifying CETA; and the timeframe for the trade agreement be voted on by Dáil Éireann. [40122/17]

Amharc ar fhreagra

Freagraí scríofa

On the 15th February 2017, the European Parliament gave its consent to the provisional application of the Comprehensive Economic and Trade Agreement (CETA). Provisional application is a standard part of EU trade agreements and allows only those parts of the agreement for which the EU has competence to be provisionally applied, pending the completion of each Member State’s procedures according to the requirements of their national law.

The EU and Canada have agreed that CETA will provisionally apply from the 21st September 2017. This means Irish companies may immediately take advantage of the provisions of CETA including the elimination of tariffs on almost all of key exports, access to the Canadian procurement market, easing regulatory barriers and more transparent rules for market access. The provisions relating to investment protection, investor-state dispute settlement and the Investment Court System are excluded from provisional application. This means Ireland or other Member States will not be bound by these provisions until they are ratified by all Member States in accordance with their national law. Before CETA comes fully into force it would require the approval of Dáil Éireann.

My Department is currently in the process of undertaking a comprehensive study which will examine in depth the economic impact of existing and forthcoming EU Free Trade Agreements including CETA. The analysis from the study will inform the Department and relevant agencies in setting the policy framework required for Irish businesses to take full advantage of concluded trade agreements and preferential trade access, and to prepare for future opportunities. The study will also identify the impact of free trade agreements at sectorial level, especially on employment and output. The study is expected to commence in October 2017.

The final decision on the timing of the CETA ratification process will be made in due course, in the context of the results of the study and the Opinion of the Court of Justice of the European Union (CJEU) in the EU-Singapore case.

The means by which Ireland notifies the completion of its internal procedures is by way of a written letter, delivered in hardcopy, from the Permanent Representative of Ireland to the EU addressed to the Secretary General of the Council of the European Union.

Article 30.7.2 of CETA provides that the Agreement shall enter into force on the first of the second month following the date the EU and Canada exchange written notifications certifying that they have completed their respective internal requirements and procedures or on a date agreed by the EU and Canada. Once all the Member States notify the General Secretariat of the EU that their internal procedures are complete, the General Secretariat of the Council of the EU may then submit a notification to Canada's Department of Foreign Affairs, Trade and Development.

I support the provisional application of CETA. I believe that it is important to see the benefits of the Agreement taking effect so we can then have a fully informed, evidence based debate on the value of the Agreement to Ireland.

Trade Agreements

Ceisteanna (53)

Niall Collins

Ceist:

53. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the developments at EU level on preliminary discussions for a potential trade deal with Australia and New Zealand. [40123/17]

Amharc ar fhreagra

Freagraí scríofa

The EU, Australia and New Zealand are like-minded partners who share many common perspectives on today's international trade environment.

The EU and Australia conduct their trade and economic relations under the EU-Australia Partnership Framework of October 2008. This aims, apart from cooperation on the multilateral trade system and trade in services and investment issues, to facilitate trade in industrial products between the EU and Australia by reducing technical barriers, including conformity assessment procedures. EU and Australian leaders met on the 15th November 2015 and agreed to commence work toward the launch of negotiations for a Free Trade Agreement.

Since 1999 the EU and New Zealand have a bilateral agreement for mutual recognition that aims to facilitate trade in industrial products between the EU and New Zealand by reducing technical barriers, including assessment procedures. It covers medicine products and devices, telecommunication equipment, low voltage equipment, machinery and pressure equipment. In 2003 a veterinary agreement entered into force aimed at facilitating trade in live animals and animal products while safeguarding public and animal health. This was then updated in 2015.

The European Commission concluded preparatory talks with New Zealand on the 7th March 2017 and with Australia on the 6th April 2017 to assess whether the countries have similar interests for a formal trade deal to be feasible. This scoping exercise defines the areas to be covered and the level of ambition of future free trade agreements.

On 13th September 2017, following the State of the Union address by President Juncker, the Commission published its proposals for mandates seeking authorisation to open negotiations for Free Trade Agreements with both Australia and New Zealand. In parallel, the Commission has finalised impact assessments of the potential impact of such trade deals.

These impact assessments take into account new opportunities that such agreements could create for EU businesses, as well as taking into account EU agricultural sensitivities as provided for in the European Commission’s “Trade Strategy for All 2015”.

The mandates authorisating the opening of negotiations with both Australia and New Zealand will require the approval of the Council and the European Parliament.

The EU’s suite of Free Trade Agreements with 3rd Countries help to open new markets, break down barriers and provide new opportunities for Irish firms. These existing EU Agreements and new trade deals will continue to be important for Ireland. With a small domestic market, further expansion in other markets is essential to our continued economic growth.

Ireland will continue to support the EU’s ambitious programme of negotiating new Free Trade Agreements giving Irish Firms expanded market access and a predictable trading environment in third countries.

Workplace Relations Commission

Ceisteanna (54)

Niall Collins

Ceist:

54. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation if the Workplace Relations Commission remains under the remit of her Department with respect to services (details supplied). [40124/17]

Amharc ar fhreagra

Freagraí scríofa

Following certain changes in Departmental functions that came into effect on 1 September 2017, certain responsibilities formerly within the remit of this Department have transferred to the Department of Employment Affairs and Social Protection. The Schedule to Statutory Instrument No. 361 of 2017 entitled "Labour Affairs and Labour Law (Transfer of Departmental Administration and Ministerial Functions) Order 2017" sets out the functions that have transferred to the Minister for Employment Affairs and Social Protection with effect from that date. The S.I. is available at www.irishstatutebook.ie/eli/2017/si/361/made/en/pdf.

I can confirm that the services of the Workplace Relations Commission to which the Deputy refers in his question remain within the remit of this Department.

Departmental Administrative Arrangements

Ceisteanna (55)

Niall Collins

Ceist:

55. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the employment and industrial relations Acts that her Department has lead responsibility to enforce. [40125/17]

Amharc ar fhreagra

Freagraí scríofa

By virtue of the Labour Affairs and Labour Law (Transfer of Departmental Administration and Ministerial Functions) Order 2017 which came into effect on 1st September last, certain functions, including employment legislation, that came under my Department's remit transferred to my colleague Regina Doherty TD, Minister for Employment Affairs and Social Protection.

My Department has maintained lead responsibility for enforcement of all employment legislation by means of the Workplace Relations Commission, the Labour Court and the Employment Appeals Tribunal.

My Department has also maintained responsibility for policy in relation to the following employment and industrial relations Acts and regulations:-

Acts

Trade Union Acts 1871 to 1990

Industrial Relations Acts 1946 to 2015

Employment Agency Act 1971

Worker Participation (State Enterprises) Acts 1977 to 2001

Safety, Health and Welfare (Offshore Installations) Acts 1987 to 1995

Protection of Young Persons (Employment) Act 1996

Transnational Information and Consultation of Employees Act 1996

Employment Equality Acts 1998 to 2015

Equal Status Act 2000

Safety Health and Welfare at Work Acts 2005 and 2014

Employees (Provision of Information and Consultation) Act 2006

Workplace Relations Act 2015

Provisions of Act

Section 39 of the Redundancy Payments Act 1967

Section 8C(1) (inserted by section 80(1)(h) of the Workplace Relations Act 2015) of the Unfair Dismissals Act 1977

Regulations

European Communities (Protection of Employment) Regulations 2000

European Union (Provision of Services) Regulations 2010

Enterprise Ireland Funding

Ceisteanna (56)

Niall Collins

Ceist:

56. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of Enterprise Ireland exporting client companies that have availed of be prepared grants to date, by county, in tabular form. [40126/17]

Amharc ar fhreagra

Freagraí scríofa

Brexit presents the most significant economic challenge of the past 50 years and long-term, structural and disruptive change will emerge. Following the UK’s vote to leave the EU, the need to accelerate and implement competitiveness, innovation and market diversification strategies at a national and company level cannot be underestimated. This is at the crux of Enterprise Ireland’s 2017-2020 Build Scale and Expand Reach strategy and its new Eurozone Strategy to assist Irish exporters increase exports in Eurozone countries by 50% by 2020.

The devaluation and volatility of sterling, and the uncertainty that has unfolded in the business environment since the UK vote to leave the EU cannot be underestimated. At the same time, Enterprise Ireland clients are challenged to prepare to operate in a yet unknown trading environment post Brexit – they must prepare for a hard Brexit. Enterprise Ireland’s clients are actively utilising the agency’s financial and non-financial supports to meet the innovation, competitiveness and market diversification challenges of Brexit as part of their strategic growth plans.

In March 2017, Enterprise Ireland launched a ‘Brexit SME Scorecard’, a new interactive online platform which can be used by all Irish companies to self-assess their exposure to Brexit under six business pillars. Based on answers supplied by the user, the Scorecard generates an immediate report which contains suggested actions and resources, and information on events for companies to attend, to prepare for Brexit. To date approximately 1,500 companies have utilised the Brexit SME Scorecard.

Enterprise Ireland’s Be Prepared Grant provides client companies with the cost of preparing a plan to mitigate risks and optimise opportunities arising from Brexit. This grant support, of up to €5,000, can be used to help cover consultancy, travel and out of pocket expenses associated with researching the direction of their Brexit action plan.

To date in excess of 40 companies have received approval for support under this initiative, and a strong pipeline of companies have applications undergoing review for approval. The number of applications at this early stage means that a county by county analysis is not particularly meaningful. Approximately 40% of applications are from the Dublin region and the rest from the other regions. Enterprise Ireland will continue to promote the Scorecard and the Be Prepare Grant to all counties and regions to ensure that the maximum number of clients are engaged in preparing for the impact of Brexit.

Pension Provisions

Ceisteanna (57)

Jackie Cahill

Ceist:

57. Deputy Jackie Cahill asked the Minister for Finance the circumstance in which a person can access the fund prior to reaching 75 years of age in a scenario (details supplied); and if he will make a statement on the matter. [39951/17]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that an individual in a defined contribution pension savings arrangement has the option of putting the funds accumulated under the arrangement into an Approved Retirement Fund (ARF) on retirement, subject to conditions.

Where such an individual is under the age of 75 at the time of exercising the option and does not meet the requirement of having a minimum guaranteed pension income for life of €12,700 per annum, he or she is required to set aside an amount of €63,500 (or the remainder of the pension fund if less than €63,500 after taking a retirement lump sum) by investing the amount in an Approved Minimum Retirement Fund (AMRF) or by the purchase of an annuity. The purpose of the AMRF is to ensure that an individual, without the minimum guaranteed pension income for life, has a capital nest-egg to provide for the latter years of his or her retirement.

On foot of changes to the AMRF arrangements which were introduced in Finance Act 2014 with effect from 1 January 2015, AMRF owners can draw down up to 4% of the value of the fund assets on one occasion annually until he or she either meets the guaranteed pension income requirement or attains the age of 75, at which point, the AMRF automatically becomes an ARF and any remaining funds can be drawn down at the owner’s discretion.

Universal Social Charge Abolition

Ceisteanna (58)

Ruth Coppinger

Ceist:

58. Deputy Ruth Coppinger asked the Minister for Finance the estimated full year cost of abolishing the universal social charge for all income earners earning under €90,000 in 2018 while maintaining it as is for all income over €90,000, that is, USC would be charged at the current rate on income over €90,000 but not on the income under €90,000. [39961/17]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that the estimated full year cost of abolishing the Universal Social Charge (USC) in 2018 on all income less than €90,000 is €2,800 million.  This costing includes the abolition of USC on all incomes less than €90,000, i.e., those earning in excess of €90,000 only pay USC on the portion of their earnings in excess of €90,000. This costing includes the retention of the 3% USC surcharge on non-PAYE incomes over €100,000.

This estimate has been generated by reference to 2018 incomes as calculated on the basis of actual data for the year 2015, the latest year for which returns are available, adjusted as necessary for income, self-employment and employment trends in the interim. The estimate is provisional and may be revised.

Insurance Compensation Fund

Ceisteanna (59)

Willie O'Dea

Ceist:

59. Deputy Willie O'Dea asked the Minister for Finance his plans for persons who are granted damages against defendants who are insured by a company (details supplied) in view of the recent Supreme Court decision that they will be paid from the insurance compensation fund in cases in which the amount recoverable is capped at 65%; and if he will make a statement on the matter. [39978/17]

Amharc ar fhreagra

Freagraí scríofa

Setanta Insurance was placed into liquidation by the Malta Financial Services Authority on 30 April 2014. As it was a Maltese incorporated company, the  liquidation is being carried out under Maltese law.

The Supreme Court delivered its judgment on 25 May 2017 and overturned the previous decisions of the High Court and the Court of Appeal that the Motor Insurers’ Bureau of Ireland (MIBI) is liable in respect of third party motor insurance claims made against the policyholders of Setanta Insurance. The consequence of this is that the Insurance Compensation Fund (ICF) has been deemed responsible for the payment of such third party claims.

As the judgment has been delivered, the process of making payments in accordance with the provisions of the Insurance Act, 1964, as amended, has commenced. Payments can only be made out of the ICF, with the approval of the High Court and only if it appears to the High Court that it is unlikely that the claim can be met otherwise than from the ICF. If satisfied, the High Court can order payments out of the ICF up to 65% (or €825,000, whichever is the lesser) due to relevant claimants.

The Liquidator has informed the Department that, as of 31 August 2017, there are 1,576 active claims, of which 573 claimants have been paid compensation from the ICF subject to the 65%/€825,000 limits. The Liquidator is currently working on the next batch of claims to be included in the next application to the High Court scheduled to be made in February 2018 in accordance with the legislation.

Over and above the 65% ICF payment, it is expected that a proportion of the balance of money due to third party claimants will be met from the proceeds of the distribution of Setanta’s assets on completion of the liquidation process. However, it is not possible to say definitively at this stage what proportion of the claims this will amount to. In this regard, a preliminary assessment was carried out by Towers Watson in 2014 who indicated that the Liquidator would not be in a position to meet more than 30% of claims out of the assets of the liquidation. The Liquidator has informed the Department that a new actuarial report is being commissioned and should be completed in Q4 2017.

Before the Government can make a full assessment of any case for further payment of compensation to Setanta claimants, it will need to review the updated actuarial report on the available proceeds of the assets for distribution from the liquidation process. This will provide a clear indication of the extent of any shortfall (i.e. the difference between the full amount and the combined total of the 65% payment plus the Setanta distribution). 

Finally, there is a legal concern that any Government intervention could undermine the priority status of claimants in the liquidation. The Department is therefore seeking legal advice on the impact on the State's ability to recover from the liquidated company if it were to compensate third party claimants.

Tax Credits

Ceisteanna (60, 61, 62, 63, 65, 66, 67)

Joan Burton

Ceist:

60. Deputy Joan Burton asked the Minister for Finance the value of payable refundable research and development tax credits paid out by the Revenue Commissioners in each of the years 2009 to 2016 to companies that did not pay corporation tax in those years; the estimated refunds or payable amounts to be paid out in 2017; the cost of the research and development tax credit in each of those years; and if he will make a statement on the matter. [39981/17]

Amharc ar fhreagra

Joan Burton

Ceist:

61. Deputy Joan Burton asked the Minister for Finance the number of companies that claimed payable refundable research and development tax credits in each years 2009 to 2016 and to date in 2017; the highest refund paid out in each year; the average value of a refund in each year, in tabular form; and if he will make a statement on the matter. [39982/17]

Amharc ar fhreagra

Joan Burton

Ceist:

62. Deputy Joan Burton asked the Minister for Finance the projected savings in 2018 if the research and development tax credit was no longer refundable or payable; and if he will make a statement on the matter. [39983/17]

Amharc ar fhreagra

Joan Burton

Ceist:

63. Deputy Joan Burton asked the Minister for Finance the outstanding liability from refundable payable research and development credits; and if he will make a statement on the matter. [39984/17]

Amharc ar fhreagra

Joan Burton

Ceist:

65. Deputy Joan Burton asked the Minister for Finance the number of persons in each year since it was introduced who have had their personal income tax bill reduced through the use of the research and development tax credit; the average amount in each year by which income tax bills were reduced; the highest amount in each year; and if he will make a statement on the matter. [39986/17]

Amharc ar fhreagra

Joan Burton

Ceist:

66. Deputy Joan Burton asked the Minister for Finance the companies that have benefitted from payable refundable research and development tax credits in which corporation tax has not been paid in that year; and if he will make a statement on the matter. [39987/17]

Amharc ar fhreagra

Joan Burton

Ceist:

67. Deputy Joan Burton asked the Minister for Finance the reason no supporting document on qualifying research and development activity is required at the point of filing the CT1 form when claiming repayable research and development tax credits; and if he will make a statement on the matter. [39988/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 60 to 63, inclusive, and 65 to 67, inclusive, together.

I am advised by Revenue that information in respect of the annual tax cost of the research and development tax credit for years up to 2015, the latest year available, is at the following link

www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf.

Information in respect of research and development tax credit from corporation tax returns for the tax year 2016 is not yet available. Additionally, the Deputy may be interested in a recent analysis of the credit which is accessible at

http://igees.gov.ie/wp-content/uploads/2014/01/R-and-D-Credit-Evaluation-2016.pdf.

The information requested by the Deputy in respect of refundable research and development tax credits is available from corporation tax returns filed  for the years 2009 to 2015 and  is as shown in the following table. Because of the Revenue Commissioners' obligation to observe confidentiality in relation to the taxation affairs of taxpayers, a figure for the highest refund has not been provided.

Year

Number of companies   with refundable research and development tax credits

Refundable research   and development tax credits  €m

Average Refund €

2009

379

32.5

85,882

2010

713

65.0

91,164

2011

920

106.3

115,543

2012

1,067

136.5

127,929

2013

1,092

235.5

215,659

2014

1,067

325.8

305,342

2015

1,027

358.9

349,464

It is not possible to accurately estimate the yield from abolishing the refundable credits aspect of the research and development tax credit as information in respect of current research and development expenditure and claims is not available However, on the basis of claims from the 2015 tax returns, the full year gain from the proposal could be in the region of €300m.

Information is not available in respect of the current outstanding liability from refundable payable research and development credits as that would require analysis of the 2017 corporation tax returns. However, from information available on the 2015 corporation tax returns, the estimated outstanding liability in respect of research and development tax credits at that time for use in later accounting periods was in the region of €330 million.

Information in respect of relief for key employees engaged in research and development activities is available on the income tax returns for the years 2013 to 2015. Tax returns for later years are not yet available. The number of individuals claiming the relief for the years 2013 and 2015 is less than 10 with a cost in each year of less than €0.05 million. For 2014 there were 25 individuals with claims for the credit of less than €0.1 million and an average claim of €2,721. Again the highest claim cannot be provided for the reasons outlined earlier.

Tax Credits

Ceisteanna (64)

Joan Burton

Ceist:

64. Deputy Joan Burton asked the Minister for Finance if the refundable element of the research and development tax credit has been assessed for compliance with EU state aid rules; and if he will make a statement on the matter. [39985/17]

Amharc ar fhreagra

Freagraí scríofa

The R&D Tax Credit is a general measure available to all taxpayers and does not constitute State Aid. The European Commission’s position that the R&D Tax Credit is a ‘general measure’ was confirmed in 2004, when the tax credit was introduced. The refundable element of the R&D Tax Credit was introduced in Finance Bill 2008 (No.2), and was examined beforehand from a legal standpoint to ensure that the measure was State Aid compliant.

Questions Nos. 65 to 67, inclusive, answered with Question No. 60.
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