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Tuesday, 8 May 2018

Written Answers Nos. 213-230

IDA Ireland Site Visits

Ceisteanna (214)

Billy Kelleher

Ceist:

214. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the number of visits since 2011 sponsored by IDA Ireland to Dublin that also visited Cork and to Cork that also visited Dublin, in the context of the agency’s Horizon 2020 strategy; and if the target of 50% of investments to be located outside Dublin and Cork will be reached. [19705/18]

Amharc ar fhreagra

Freagraí scríofa

IDA Ireland's primary regional development goal, as set out in its current strategy 'Winning: Foreign Direct Investment 2015-2019', is to increase investment by 30% to 40% in every region of Ireland. Real progress has been made towards that target over the first three years of this strategy with half of all jobs created by IDA client companies since 2015 located outside Dublin.

IDA Ireland collates data on the number of site visits to individual counties only.  It does not, on account of client confidentiality and commercial sensitivity, release details of the specific itineraries of potential investors. Information on whether visits included both Cork and Dublin elements is therefore not available.  I set out in the table, however, details of the annual number of site visits to Dublin and Cork from 2011 to Q1 2018.

Site visits to Dublin and Cork 2011 to Q1 2018  

Year

Dublin

Cork

2011

150

27

2012

196

38

2013

180

31

2014

205

30

2015

242

48

2016

284

49

2017

327

51

Q1 2018

69

10

Question No. 215 answered with Question No. 211.

Appointments to State Boards Data

Ceisteanna (216)

Michael McGrath

Ceist:

216. Deputy Michael McGrath asked the Minister for Business, Enterprise and Innovation the professional backgrounds of existing directors of the Personal Injuries Assessment Board; and if she will make a statement on the matter. [19815/18]

Amharc ar fhreagra

Freagraí scríofa

The Board of the Personal Injuries Assessment Board is appointed by me as the Minister for Business, Enterprise and Innovation in accordance with the provisions of the Personal Injuries Assessment Board Act 2003 and in compliance with the procedures outlined in the ‘Code of Practice for the Governance of State Bodies (2016). The Board consists of a Chairperson, the Chief Executive and nine ordinary members of which six are nominated by external bodies designated under legislation. The six external bodies are as follows:

- 2 persons nominated by ICTU

- 1 person nominated by Ibec

- 1 person nominated by the Irish Insurance Federation (IIF)

- 1 person nominated by the Central Bank

- 1 person nominated by the Competition and Consumer Protection Commission.

In addition to the six statutory nominees outlined above, members are generally recruited to the Board through open advertisement on the State Boards portal www.stateboards.ie operated by the Public Appointments Service (PAS) who, since 2014, have been responsible for putting in place an open, accessible, rigorous and transparent system to support Ministers in making appointments to State Boards.

The current members of the Board of the Personal Injuries Assessment Board are as follows:

Dermot Divilly, Non-Executive Chairperson – Businessman/Company Director

John Lynch, Vice Chairperson - Business Consultant, Company Director and Accountant

Conor O’Brien, Chief Executive of the Personal Injuries Assessment Board (PIAB)

Colette Crowne, Deputy Director and nominee of the Competition and Consumer Protection Commission (CCPC)

Walter Cullen, Irish Congress of Trade Unions (ICTU) nominee, former trade union official

Martin Naughton, Irish Congress of Trade Unions (ICTU) nominee, and former Head of Finance and Administration in SIPTU, with a background in Change Management and Occupational Safety, Health and Welfare

Breda Power, Assistant Secretary General, Department of Business, Enterprise and Innovation

Margot Slattery, Irish Business and Employers Confederation (Ibec) nominee, Company Director

Tim O’Hanrahan, Senior Adviser to the Deputy Governor of Prudential Regulation and nominee of The Central Bank of Ireland

There are currently two vacancies on the Board.

Question No. 217 answered with Question No. 211.

Departmental Agencies Data

Ceisteanna (218)

Seán Sherlock

Ceist:

218. Deputy Sean Sherlock asked the Minister for Business, Enterprise and Innovation the status of a site (details supplied); the person or body that owns the site; if there have been site visits through IDA Ireland to the site; and her plans to sell the site in the future. [19922/18]

Amharc ar fhreagra

Freagraí scríofa

The site in question, which comprises approximately 54 acres of land at Carrigtowhill in County Cork, is owned by IDA Ireland. The Agency continues to actively market the site to potential investors. 

IDA Ireland is engaging with Cork County Council and other key stakeholders to ensure the site is best placed to attract investment.  The site presents an attractive option to potential investors and benefits from previous upgrades to infrastructure and utilities which could reduce the start up costs for any company locating there.

IDA Ireland collates data on site visits on a county-by-basis only so information is not available on visits to specific locations within a county. In 2017 there were 51 site visits to Cork and a further 10 in the first quarter of this year.

Third Level Funding

Ceisteanna (219)

Billy Kelleher

Ceist:

219. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation her views on introducing a new five-year cycle with respect to the programme for research in third level institutions; the duration to the cycle in operation; when it expires; and if she will make a statement on the matter. [20097/18]

Amharc ar fhreagra

Freagraí scríofa

The Programme for Research in Third-Level Institutions (PRTLI) was launched in 1998, with five cycles of expenditure to date.  In addition to supporting the provision of top-class research infrastructure (buildings, laboratories and cutting-edge equipment), PRTLI saw significant investment in human capital development, through Structured PhD/Emergent Technology programmes across Ireland’s Higher Education Institutes (HEIs). 

 The current Cycle of PRTLI (Cycle 5) was announced in 2010 and has involved exchequer expenditure of approx. €277m with a further €59m of private investment.  Cycle 5 projects have now been completed and my Department is addressing the remaining payments associated with these awards.  The 2018 allocation to PRTLI is €14.3m with a portion of this being used to part pay outstanding bills for PRTLI Cycle 5 projects.

 Innovation 2020, the Government's strategy for research and innovation, includes an action to scope out and develop a successor to PRTLI to support new investment in research infrastructure, including buildings and equipment.  It also contains an action to increase the enrolment of PhD and research masters students. 

 The scoping of a future cycle of PRTLI has been undertaken by my Department, working with the Department of Education and Skills (DES).  It will be noted that future cycles of PRTLI are identified in the National Development Plan as an important component of the Innovation pillar.

 Pending a Government decision on the timing and scale of a future cycle of PRTLI, it is important to note that actions are already being taken by my Department, DES and other research funders to fund infrastructure and human capital in the area of research. My Department allocated an additional €5.5m in Budget 2018 to fund both PhDs and Research Masters and this additional funding has already been allocated by Science Foundation Ireland.  It is envisaged that further additional funding will be provided in 2019 and subsequent years to build on the initial steps taken in 2018.

 In this context, my Department recently launched a consultation on a proposed new Centres for Research Training (CRT) programme, to be funded through Science Foundation Ireland.  This new programme is designed to deliver world-class, postgraduate research and training programmes with a focus on employability and sectoral and international mobility. It is proposed that SFI Centres for Research Training will provide sustainable programmes of research and training for cohorts of research Masters and PhD students commencing in 2019, with new cohorts of students enrolling in subsequent years. The cohort-based programme will deliver a world-class, student-focused postgraduate experience which will contribute to the goal of positioning Ireland as a leader in postgraduate researcher training and education.

 In the area of research equipment and other infrastructure, Science Foundation Ireland has issued a 2018 Call and is currently assessing proposals using international peer review. SFI has already funded more than €50m of research infrastructure across the high education system since the start of 2016. 

 The Department of Education and Skills also announced funding in the context of Budget 2018 to address the need for physical space for research in the higher education sector.  This includes €200m for public private partnerships in the Institute of Technology sector and €257m for investment in the higher education sector generally, including for research. Significant additional investment in higher education infrastructure over the period to 2027 (in the region of €3 billion) is indicated in the NDP and this will address both education and research activities in the higher education institutions.

Pending a decision on a future cycle of PRTLI, the actions being taken by my Department and the Department of Education and Skills are addressing to a significant degree the requirements for increased investment in both physical infrastructure and human capital in higher education research as identified in Innovation 2020.

Departmental Funding

Ceisteanna (220)

Billy Kelleher

Ceist:

220. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the amount of funding allocated to Enterprise Ireland, local enterprise offices, LEOs, InterTradeIreland and IDA Ireland, by capital and current allocations in each of the years from 2014 to 2018, in tabular form. [20098/18]

Amharc ar fhreagra

Freagraí scríofa

The distribution of Current and Capital allocations by my Department to Enterprise Ireland, LEOs, InterTrade Ireland and the IDA, in each of the years from 2014 to 2018, is set out in tabular form.

Enterprise Ireland

-

Current

Capital

Total

2014

€80.873m

€159.6m - plus €11m in capital carryover

€251.473m

2015

€83.722m

€163.43m - Plus €12m in capital carryover

€259.152m

2016

€79.887m

€173.6m

€253.487

2017

€84.502m

€185m

€269.502

2018

€87.998m

€185m

€272.998

 

IDA Ireland

-

Current

Capital

Total

2014

€38.607m

€89m - Plus €3m in capital carryover

€130.607

2015

€40.316m

€90m - Plus - €5m in capital carryover - Plus - €21m in Supplementary Estimate, December 2015

€156.316

2016

€41.68m

€112m - Plus €10m in capital carryover

€163.68

2017

€42.264m

€137m

€179.264

2018

€48.78m

€132m

€180.78

 

Inter-Trade Ireland

-

Current

Capital

Total

2014

€2.002m

€5.76m

€7.762

2015

€1.924m

€5.53m

€7.454

2016

€1.935m

€5.53m

€7.465

2017

€2.265m

€5.695m

€7.960

2018

€2.43m

€5.695m

€8.125

 

Local Enterprise Development (LEOs)

-

Current

Capital

Total

2014

€10.888m

€18.5m

€29.388

2015

€10.954m

€18.5m

€29.454

2016

€10.431m

€18.5m - Plus - €1m in Supplementary Estimate, December 2016

€29.931

2017

€10.431m

€22.5m

€32.931

2018

€10.431m

€22.5m

€32.931

Brexit Staff

Ceisteanna (221)

Billy Kelleher

Ceist:

221. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the progress to date regarding filling positions for the allocation made in budget 2018 to recruit a further 40 to 50 staff to supplement existing staffing numbers in her Department and agencies under her remit, as a Brexit measure. [20099/18]

Amharc ar fhreagra

Freagraí scríofa

In my Department, a dedicated Brexit Unit was established in 2016, led at Assistant Secretary level within the EU Affairs and Trade Policy Division, to coordinate and represent the Department and it's Agencies response to Brexit.  During 2017, this Unit increased its staffing complement to lead on engagements with a broad range of stakeholder to further inform and validate this response.

Given the wide mission my Department has and the continuing impact on all policy matters, officers across all policy areas of my Department may deal with Brexit-related issues.

In this context, staff expertise has been drawn from across a number of different policy areas, and these staff have been assigned to a number of additional postings across the whole Department that have been most impacted by Brexit.  We are continually prioritising the Brexit challenges and will actively keep the staffing requirements under review through workforce planning during 2018.

The State Agencies, listed below, received an additional pay allocation in Budget 2018 to manage the impact of Brexit. It is important to note however that the work of very many Business Units both within my Department and it's Agencies are impacted by Brexit and are responding to it outside of the specific numbers mentioned below.

Enterprise Ireland

In 2018, Enterprise Ireland was allocated €1.3 million to recruit approximately 20 additional staff members.  To date two positions have been filled and the Agency is actively recruiting the remaining positions.

IDA

Budget 2018 saw the Authority allocated an additional €700,000 to further reinforce its staffing levels. The Authority is using this funding to create 10 new positions across a range of areas in the organisation.  9 of 10 posts are filled to date. It will also be used to hire five more graduates on fixed term rolling three year contracts.

Health and Safety Authority

The Health and Safety Authority received an allocation of €400k for Brexit related posts for 2018.  Following a review of its Workforce Plan the Authority identified relevant posts to be filled and my Department has given sanction to fill seven inspector posts at this stage. The Health and Safety Authority will commence the recruitment process for these positions in the coming weeks.

It should be noted that previous sanction was given in late 2017 for the filling of a new Brexit related Accreditation Officer post in the Irish National Accreditation Board (INAB) within the Health and Safety Authority. That recruitment process has recently been completed and the successful candidate is expected to take up the position in early June.

Science Foundation Ireland

SFI were allocated an additional €400k in Budget 2018 and has filled four posts which have Brexit related activities attached to their roles.

Brexit Staff

Ceisteanna (222)

Billy Kelleher

Ceist:

222. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the number of staff recruited in Enterprise Ireland, local enterprise offices, LEOs, InterTradeIreland and IDA Ireland since the Brexit referendum in June 2016, by new staff hires and replacement staff in tabular form; and if she will make a statement on the matter. [20100/18]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy will be aware, an additional €3 million was secured for my Department in respect of Pay in Budget 2017 targeted specifically to assist with increased staffing needs for the Department and a number of our Agencies to deal with the evolving Brexit scenario.  In Budget 2018, an additional pay allocation of a further €3 million was gained for further strengthening staff resources in respect of Brexit, within the Department and some of its Agencies. These funds have, and are, enabling the Department and, primarily, our Agencies to recruit additional staff to supplement existing staffing numbers in the context of the workload associated with Brexit. 

It is important to note however that the work of very many Business Units both within my Department and its Agencies are impacted by Brexit and are working on responding to it despite not being recruited specifically for this purpose.

The specific information requested by the Deputy in relation to recruitment in Enterprise Ireland, the Local Enterprise Offices, InterTradeIreland and the IDA has been sought, and will be supplied separately as soon as it is available.

Company Law

Ceisteanna (223)

Billy Kelleher

Ceist:

223. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation her views on whether accountants are being unfairly penalised by the audit exemption removal provisions in the Companies Act 2014 in respect of the Companies (Statutory Audits) Bill 2017; and if she will make a statement on the matter. [20180/18]

Amharc ar fhreagra

Freagraí scríofa

A company that qualifies as small or micro sized may qualify for the audit exemption. This entitlement is lost if the company fails to file its annual return on time.

At present, over 93% of Irish registered companies meet their filing date obligations. Accordingly, the vast majority of small and micro sized companies file on time and do not, therefore, lose their entitlement to the audit exemption.

Companies can have an annual return date of up to 9 months from the end of their financial year. Thereafter, companies have up to 28 days to file their annual return with the Companies Registration Office and up to an additional 28 days to file their accompanying financial statements. As a result, a company may have up to 11 months to prepare their financial statements.

The Companies (Accounting) Act 2017 simplified and / or reduced the financial reporting obligations on small and micro sized companies. It also raised the thresholds for qualification as a small company, so more companies can now qualify for the audit exemption.

The obligation to file on time is an obligation on the company, not on advisors to the company, such as accountants.

Company Law

Ceisteanna (224, 225, 226, 228)

Billy Kelleher

Ceist:

224. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the reason sections 9 and 10 have not been referred to the statutory Company Law Review Group on innovation in respect of the Companies (Statutory Audits) Bill 2017; and if she will make a statement on the matter. [20181/18]

Amharc ar fhreagra

Billy Kelleher

Ceist:

225. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the reason she has not referred the loss of the audit exemption to the statutory Company Law Review Group in view of the fact it last reviewed the matter in 2009; and if she will make a statement on the matter. [20182/18]

Amharc ar fhreagra

Billy Kelleher

Ceist:

226. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation if a recommendation (details supplied) will be implemented; and if she will make a statement on the matter. [20183/18]

Amharc ar fhreagra

Billy Kelleher

Ceist:

228. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation if the Company Law Review group recommended that the Registrar of Companies cease the Companies Registration Office, CRO, waiver scheme whereby the CRO adjudicated on late filing issues and that the correct forum is in the District Court or the High Court. [20185/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 224 to 226, inclusive, and 228 together.

The Company Law Review Group’s (‘the CLRG’) review of the audit exemption in 2009 led to recommendations to extend the audit exemption to companies limited by guarantee and dormant companies. 

The CLRG returned to the issue of the audit exemption in the course of 2011 and this is set out in the Group’s published 2011 Report. This more recent examination was a review of the arguments for repealing the rule that a company loses the audit exemption if it files its annual return late. The CLRG did not find those arguments to be sufficiently compelling to outweigh the benefits of retaining the rule.

In 2011, the CLRG also reviewed the system that was in operation at that time whereby the Registrar of Companies could grant a waiver to a company that filed its annual return late. That waiver was from payment of late filing fees. The CLRG did recommend that such a grant should not be within the powers of the CRO.  Following the enactment of the Companies Act 2014, that waiver scheme was abolished.

The CLRG went on to recommend that the waiver of late filing fees should instead be determined by a court of competent jurisdiction, preferably the District Court.  Section 10 of the Companies (Statutory Audits) Bill 2017 proposes to give effect to that recommendation.

However, since the publication of the Companies (Statutory Audits) Bill 2017 last November, it has become clearer that an application to the Court for a waiver of the late filing fees is not appropriate. Given that the maximum late filing fee that could be waived is €1,200, there appears to be little or no practical benefit for a company when the cost of going to court is taken into account. Section 10 also provides that the Registrar of Companies would be a notice party and this has proved to be a significant administrative burden on the Companies Registration Office.  For these reasons, I intend to propose an amendment at Report Stage to delete section 10 as it stands in the Bill.

Before the enactment of the Companies Act 2014, a company could apply to the High Court for an extension of time to file its annual return. In 2011, a draft of the Bill that would become the Companies Bill 2012 was publicly available. Accordingly, the CLRG, as part of its 2011 review, considered the provision in that draft Bill that extended the High Court’s power to the District Court. The CLRG welcomed that provision and it was subsequently enacted as section 343 (7) of the Companies Act 2014 and came into operation on 1 June 2015. 

The Companies (Statutory Audits) Bill 2017 was published in November 2017 and the Company Law Review Group’s sub-committee on statutory matters began a consideration of that Bill in January of this year. The report of that sub-committee has not been finalised or adopted by the CLRG yet, so it is not yet published.

Company Registration

Ceisteanna (227, 230)

Billy Kelleher

Ceist:

227. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation if no applications were made under the old regime pursuant to section 60 of the Company Law Enforcement Act 2001 from 2001 to 1 June 2015. [20184/18]

Amharc ar fhreagra

Billy Kelleher

Ceist:

230. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation the reason section 60 of the Company Law Enforcement Act 2001 was introduced into legislation; if it was introduced to facilitate companies as a result of the introduction of the annual return date regime in March 2001 to facilitate the Companies Registration Office; and if she will make a statement on the matter. [20187/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 227 and 230 together.

Section 127 of the Companies Act 1963, as amended by section 60 of the Company Law Enforcement Act 2001, provided that a company had to deliver its annual return to the Registrar of Companies not later than 28 days after the annual return date.

The purpose of the amendments made by section 60 was to introduce the concept of an annual return date, being a specific date in each year within 28 days of which a company must file its return. The introduction of the provision allowed the Registrar to better monitor compliance with annual return filing requirements.

The section also provided that the High Court, on an application made (on notice to the Registrar of Companies) by a company, could, make an order extending the time in which the annual return of the company in relation to a particular year could be delivered to the Registrar of Companies. I understand that 1 such application to the Court was made in the period in question.

The ability of individuals to set up a separate legal entity and avail of limited liability is a real and significant privilege as well as being beneficial to the economy and society. As a counterpart to this privilege there are a series of rules and procedures which must be adhered to.

On time filing of annual returns and associated financial statements by companies is an important transparency measure and safeguard for third parties such as creditors and employees. Currently over 93% of companies file their annual return on time. I am proposing amendments for Report Stage of the Companies (Statutory Audits) Bill 2017 that will further support timely filing and simplify the process for all companies.

Question No. 228 answered with Question No. 224.

Company Law

Ceisteanna (229, 231, 232)

Billy Kelleher

Ceist:

229. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation if the Minister for Justice and Equality and-or the President of the High Court and the Courts Service of Ireland have been consulted with regard to the implications on the resources of the Judiciary and the Courts Service of Ireland in respect of the Companies (Statutory Audits) Bill 2017 as the transfer of these District Court cases to the High Court will cause a huge backlog in the High Court; and if she will make a statement on the matter. [20186/18]

Amharc ar fhreagra

Billy Kelleher

Ceist:

231. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation her plans with regard to the result that is being sought in the proposed amendment pursuant to section 9 of the Companies Statutory Audits Bill 2017 whereby companies will be still permitted to seek a waiver of late filing fees and extend their annual return date and not lose audit exemption on the same basis as is contained in section 343 provided they satisfy a High Court judge that it is just to do so and that the application be made in the High Court rather than the District Court. [20188/18]

Amharc ar fhreagra

Billy Kelleher

Ceist:

232. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation if the intention of the proposed amendment in section 10 of the Companies Statutory Audits Bill 2017 is to allow a company that is late seek a waiver on its late filing fees only and that the District Court is not empowered to extend the annual return date or allow the company available audit exemption section 10. [20189/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 229, 231 and 232 together.

Section 9 of the Companies (Statutory Audits) Bill 2017 removes the possibility of a company to apply to the District Court for an extension of its annual return date. Applications may continue to be made to the High Court. The High Court may extend the time for filing of the annual return if it considers the making of such an Order to be 'just' in the circumstances of the application. If a company is granted such an Order, it will not lose its entitlement to an audit exemption. I have no plans to propose amendments to this element of section 9.

Section 10 of the Companies (Statutory Audits) Bill 2017 proposes to insert a new section 343A into the Companies Act 2014. The effect of this is to introduce the possibility for a company who files its annual return late, to apply to the District Court for an Order waiving the fee for late filing. In such circumstances the company's entitlement to the audit exemption would be lost. I signalled at Committee Stage that I will be tabling amendments to this provision at Report Stage.

The Courts Service is actively consulted with by officials in the Department on any matter that relates to the Courts. The Registrar of Companies will continue to be a notice party for applications to the High Court. Her Office and the Department will keep the possibility of a backlog under review.

Question No. 230 answered with Question No. 227.
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