Written Answers Nos. 100-108
100. Deputy Clare Daly asked the Minister for Business, Enterprise and Innovation the supports for Irish businesses seeking to establish export links with Syria; and the supports offered to Irish businesses seeking to establish export links with Gulf states such as Saudi Arabia, Qatar and the United Arab Emirates. [30357/18]
Amharc ar fhreagraEnterprise Ireland (EI) is actively working with companies with global ambition to internationalise, and in doing so, diversify their global footprint. This is critical for promoting economic resilience and long-term business growth.
EI supports Irish companies that export to the Gulf States through its office network in Dubai and Abu Dhabi (UAE), Riyadh (Saudi Arabia) and Doha (Qatar). In addition, EI employ Pathfinders in other Gulf States where it has no physical presence. EI assist suitable clients to avail of opportunities in Gulf States by working with each client one-on-one; arranging trade missions, company market visits, and in-country networking events; and by providing information and trade mission supports, as well as information and Gulf State related networking events in Ireland. EI also brings corporate buyers from the Gulf States to Ireland annually, to meet Irish producers.
Over the past 12 months, EI has organised trade missions and networking events with the participation of Irish government ministers in Saudi Arabia, UAE, Oman, Kuwait and Qatar, with further events scheduled in 2018. In addition to its own export activities, Enterprise Ireland cooperates closely with the Department of Foreign Affairs and Trade Embassy network, Bord Bia, Tourism Ireland, IDA and the Department of Justice as part of Team Ireland to deepen and widen Irish trade links with the Middle East and the Gulf region.
EI also ran an international trade event to the annual 'Arab Health' Exhibition in Dubai in January of this year, which was led by the Minister of State for Mental Health and Older People, Jim Daly T.D. Arab Health is the largest healthcare exhibition and conference in the Middle East and North Africa region. The trade visit focused on maximising business opportunities for the 20 EI clients exhibiting and participating. The Gulf Food Manufacturing Exhibition in Dubai will take place later this year, where Enterprise Ireland will support exhibiting clients.
Currently, EI’s Middle East and North Africa office network does not actively support Irish companies seeking to do business directly with Syria, due to the ongoing security situation. Any future change in EI trade promotion activities on behalf of Irish companies in Syria will be primarily dependent on the security situation in Syria. However, Enterprise Ireland will keep the situation under continuous review.
101. Deputy Fergus O'Dowd asked the Minister for Business, Enterprise and Innovation the status of the proposed €500 million disruptive technologies innovation fund which was included in Project Ireland 2040; and if she will make a statement on the matter. [30442/18]
Amharc ar fhreagraThe National Development Plan (NDP) under Project Ireland 2040 confirms the establishment of a €500 million Disruptive Technologies Innovation Fund (DTIF) to be implemented through my Department and its agencies, working with other Government Departments and agencies. This is one of four funds in the National Development Plan 2018-2027 and was launched at the Project Ireland 2040 Funds Announcement.
The Disruptive Technologies Innovation Fund is an exciting step forward in the innovation landscape in Ireland. The combination of existing research strengths and this targeted funding mechanism will help to deliver jobs, exports and other economic impacts for Ireland. This will help achieve the National Strategic Outcomes (NSOs) set out in Project Ireland 2040, in particular National Strategic Outcome 5 (A Strong Economy supported by Enterprise, Innovation and Skills). Ultimately, the projects funded under the Disruptive Technologies Innovation Fund will create the jobs of the future.
The Fund will have a resource allocation of €500 million over the period 2018-2027 consisting of an initial Exchequer allocation of €180 million to 2022. It will be competitive and see investment in the research, development and deployment of disruptive technologies and applications on a commercial basis. Importantly it will drive collaboration between Ireland’s world-class research base and industry as well as facilitating enterprises to compete directly for funding in support of the development and adoption of these technologies.
On the 29th of June, the Expressions of Interest phase of this competitive process was launched in Drogheda. The Expressions of Interest phase will run until 17th August 2018. It is envisaged that the first tranche of successful projects will be confirmed by November 2018.
The type of projects that will receive funding will be:
- Collaborative enterprise-driven partnerships that will develop, deploy and commercialise disruptive technologies to transform business;
- Impactful projects seeking at least €1 million in funding over 3 years and involving enterprises and research partners;
- Projects involving SME participation;
- Focussed on “industrial research”.
An Expressions of Interest form and a Reference Document for applicants are available on my Department's website and I encourage potential applicants to familiarise themselves with the detail to ascertain their eligibility and to apply. My Department and agencies (Enterprise Ireland, IDA Ireland and Science Foundation Ireland) will engage in communications with potential applicants through July and August 2018.
102. Deputy Fergus O'Dowd asked the Minister for Business, Enterprise and Innovation her priorities as part of Project Ireland 2040; and if she will make a statement on the matter. [30443/18]
Amharc ar fhreagraAs the Deputy will be aware, Project Ireland 2040 seeks to achieve ten National Strategic Outcomes, around the overarching themes of well-being, equality and opportunity. The National Development Plan 2018-2027 commits a total of almost €116 billion to underpin the implementation of the National Strategic Outcomes identified in Project Ireland 2040.
Aligned with Enterprise 2025 Renewed, our aim in Ireland 2040 is to achieve sustainable full employment, to bring unemployment rates in all regions down to within 1 percentage point of the national average and to progress greater convergence in productivity in the regions. This requires a competitive, innovative and resilient enterprise base, which is essential to provide the jobs and employment opportunities for people to live and prosper in all regions.
The priorities I and my Department will be focusing on include:
- Further expansion of Advanced Manufacturing Supports linking centres and capacity across all regions.
- The €500m Disruptive Technologies Innovation Fund which I recently launched, that will allow Ireland become a leader in future technologies, through funding projects on a competitive basis.
- Strengthening Science Foundation Ireland Research Centres and Enterprise Ireland Technology Centres in higher education facilities across all regions.
- The upgrading of the Tyndall National Institute in Cork.
- Facilitating Institutes of Technologies in creating new regional ‘Technology and Innovation Poles’.
- A New Space Technologies Programme, to the benefit of firms in the regions
- New cycles of the Programme for Research in Third Level Institutions, benefitting higher education in all regions.
- New Regional Sectorial Clusters to scale and internationalise enterprise in all regions.
- Providing the appropriate types of firm level supports in the context of Brexit to enable business transformation, building firm resilience and strengthening firm competitiveness.
- Expanding the Enterprise Ireland budget for research and development.
- Expanding IDA Regional Property Programme to attract investment to regions, with a particular focus on the border region.
- The creation of a National Design Centre.
- Seed and Venture Capital Funding to support regional start-ups and growth eHubs for entrepreneurship and start-ups in every county.
- Participation in the EU High Performance Computing Programme.I
- increases in the number of researchers trained under my Department’s research, development and innovation (RD&I) programmes.
To further strengthen rural economies and communities, under the Regional Action Plan for Jobs (RAPJ) process, the focus on enterprise development and employment generation in the regions has intensified through a collaborative approach involving both public and private sector stakeholders in the regions. The RAPJ is also supported through competitive calls for enterprise initiatives under the Regional Enterprise Development Fund, with €30m to be allocated in 2018. This will continue to be rolled out in the first five years of the Plan delivered through Enterprise Ireland.
Further, my Department and the enterprise development agencies are engaging with the three Regional Authorities on the development of their Regional Spatial and Economic Strategies (RSES) which are an important next step in implementing the Ireland 2040 plan. These will for the first time put regional planning on a statutory basis, and will play an important role in directing investments towards realising the full potential of our regions as dynamic places to live and work.
103. Deputy Paul Murphy asked the Minister for Business, Enterprise and Innovation if legislation is planned to provide for union recognition in view of a dispute at a company (details supplied); and if she will make a statement on the matter. [26607/18]
Amharc ar fhreagraI understand that the dispute at issue relates to certain terms and conditions of employment, including that of pay and contractual security which the trade union Mandate is seeking to negotiate on behalf of its members.
At the outset, I must emphasise that Ireland’s system of industrial relations is, essentially, voluntary in nature and responsibility for the resolution of industrial disputes between employers and workers, rests with the employer, the workers and their representatives.
For its part, the State provides the industrial relations dispute settlement mechanisms i.e. the Workplace Relations Commission and the Labour Court, to support parties in their efforts to resolve their differences. These bodies are independent in the delivery of their quasi-judicial functions, in which I as Minister have no role. This approach has served Ireland well over the years and in a large number of high profile disputes.
I understand it is the company's position that it does not recognize trade unions but has in place an internal mechanism for employee engagement. Under Irish law there is no obligation on employers to recognize trade unions and there are no plans to bring forward legislation to provide for mandatory trade union recognition. However, it has been the consistent policy of successive Irish Governments to support a voluntarist system of industrial relations with a robust statutory framework supportive of collective bargaining.
The most recent legislation to facilitate this is the Industrial Relations (Amendment) Act 2015 which came into effect on 1 August 2015 and was the result of an in-depth consultation with stakeholders, including employer and worker representatives, and a review of the experience of the operation of the existing legislative framework.
The 2015 Act makes provision, in instances where employers engage in collective bargaining with an ‘internal excepted body’ as opposed to a trade union, for a referral to be made to the Labour Court to establish if internal bargaining bodies are genuinely independent of their employer. If the Court finds that the mechanism is not independent it can then proceed to hear the dispute at issue.
I would like to stress the merit of both parties working closely and with the dispute handling mechanisms of the State to make every effort to reach a resolution on the issues in dispute to achieve a positive outcome for the employees, the company and the customers of the company.
104. Deputy Billy Kelleher asked the Minister for Business, Enterprise and Innovation her views on whether Ireland will attain the Innovation 2020 research and development intensity target of 2.5% of GNP; and if she will make a statement on the matter. [30633/18]
Amharc ar fhreagraIn 2011 and as part of the Europe 2020 Strategy to support growth that is smart, sustainable and inclusive, the Government committed to raise gross investment in Research and Development to 2.5% of GNP by 2020. This commitment was reiterated in Innovation 2020 in 2015.
Expenditure on Innovation, Research & Development consists of both public and private expenditure. Gross investment in R&D was €3.2 billion in 2016. This is an increase of over half a billion euro since 2011. The estimated expenditure on R&D by Government Departments in 2017 is €768 million. This represents an increase of almost €40 million over 2016 and is the highest level of public expenditure on R&D since 2012.
A very significant part of our innovation policy has been to align public investment efforts in a manner that leverages R&D activity in the enterprise sectors. While private spending on R&D slowed during the financial crisis, it has been increasing steadily since 2011. Business Expenditure on RandD rose to €2.3 billion in 2016 from €1.7 billion in 2011, an increase of over 35%.
Despite the fact that overall expenditure in R&D has increased every year since committing to Europe 2020 targets, reaching the 2.5% of GNP intensity rate target presents a very significant challenge. In 2016 our GNP intensity level stood at 1.43%, down from 1.91% in 2012. Even when using GNI* as a complementary indicator (GNI* removes globalisation impacts on the Irish economy), the R&D intensity rate is estimated at 1.72% for 2016.
This is in part due to the strength of our economic performance and subsequent increases in GNP growth rates year on year over the last number of years. Our challenge is to increase the level of investment in R&D to keep pace with GNP growth rates, in the context of significant demands on the public purse.
Notwithstanding the level of the R&D intensity rate, I am pleased to note that Ireland performs well in international comparison tables. In the European Innovation Scoreboard published by the European Commission in June, Ireland gained one place to be ranked 9th in the EU for innovation performance.
In aggregate terms, Ireland is one of the best innovation output performers, making it one of the most efficient performers overall in terms of outputs relative to investment.
However, it is clear that significant investment in RandD is a key characteristic of the top four Innovation Leaders in the EU (Sweden, Denmark, Finland and the Netherlands). The Government must continue to prioritise investment in R&D in order to realise its ambition of becoming a Global Innovation Leader.
My Department is commencing an interim review of Innovation 2020 this year and this will give us the opportunity to take stock of what has been achieved under Innovation 2020 since December 2015 and will inform the development of its successor.
105. Deputy Thomas P. Broughan asked the Minister for Business, Enterprise and Innovation the work being undertaken to ascertain the way in which employment may be affected by an EU digital tax; and if she will make a statement on the matter. [30629/18]
Amharc ar fhreagraThe EU Commission published proposals in March 2018 in relation to digital taxation which are currently being debated. The OECD has also published an interim report on the Digital economy which acknowledges the lack of consensus in the area of taxations. The OECD states that further analysis is required in order to achieve an agreed evidence backed solution focused on the alignment of taxing rights with the location of real substantive value creating activity. Suffice to say that, as it stands, there is no clarity on what approach will be taken.
It is therefore not possible to determine the impact on employment. it is likely that any changes to how digital businesses are taxed will impact Ireland’s corporation tax receipts as the changes would likely see greater taxing rights in larger countries. The Summer Economic Statement published sets out that the Government will be prudent in its approach in 'setting aside some of the historically high levels of Corporation Tax for the purpose of creating the Rainy Day Fund'.
Regardless of the final outcome, it must be borne in mind that Ireland’s corporation tax regime will continue to be competitive while also offering long-term certainty to international business. Crucially, our regime is underpinned by substance. Enterprise 2025 Renewed reaffirms our focus on export-led growth that is underpinned by innovation, talent and investments in place-making. We cannot predict the future, but we are taking action to deepen resilience across our enterprise base. Our policies place an emphasis on strengthening the productivity performance and potential of our Irish owned enterprises. We will continue as a country to be anticipatory and adaptive to global challenges.
The continued competitiveness of our corporation tax regime, whilst important, is only one element of Ireland’s value proposition for FDI. Business location decisions are informed by a range of factors. Access to the EU market is, and will remain, a key factor in attracting FDI. Other key factors involved in attracting and maintaining FDI here include:
- Talent: we have a talented workforce that is hardworking, flexible and adaptable to change and a first-class education system that helps nurture the future talent required
- Innovation: we have developed leading edge capabilities in R&D, have a supportive regime for innovation and continuously work with enterprises to gain more investment in high value added research, development and innovation activities.
- We have a proven track record of delivery for enterprise and it is easy to do business here.
- We are English speaking yet can service over 140 languages from Ireland which greatly assists ICT and Financial Services companies in particular.
- Through Project Ireland 2040, the National Planning Framework and National Development Plan, we will focus coordinated investments to ensure that we offer a range of compelling, dynamic and competitive locations for investment throughout Ireland.
My officials and I, as well as the IDA, remain in regular contact with companies and with colleagues across Government as this area of international taxation evolves.
I will remain alert and responsive to any changes with regards to the taxation of the digital economy or indeed the overall global tax environment, working with colleagues across Government to ensure that Ireland can react and adapt when required.
Background to Digital Tax developments
In March 2018, the EU Commission published two proposed Directives. The first one, a Digital Services Tax (DST), proposes a ‘temporary’ solution of a 3% levy on turnover from certain digital service activities. The thresholds for application is for a global turnover of €750m and EU turnover of at least €50m. The second, "comprehensive solution", requires an overhaul of international taxation, establishing the concept of a "digital permanent establishment", allowing countries taxing rights over the digital business carried out by a company in that country, even where the company has no physical presence in the country.
Prior to the publication of the Commission’s proposals, the OECD had released their interim Report on the Digital Economy, which acknowledges the lack of consensus in the area and that further analysis is required in order to achieve an agreed evidence backed solution focussed on the alignment of taxing rights with the location of real substantive value creating activity.
The Commission proposals are now being debated and it would seem that there is now a widespread acceptance among Member States that the value of these EU discussions is primarily to give impetus to the OECD debate. This is illustrated by the recently issued joint statement from the Finance Ministers of Sweden, Denmark and Finland calling for the EU to abandon plans for a digital tax based on turnover and to support reform of digital taxation at OECD.
While a number of Member States remain committed to the interim proposal of a Digital Services Tax on turnover, it should be recalled that the OECD’s Task Force on the Digital Economy found that there is no consensus on the merit or need for such short-term measures which it is widely acknowledged can be economically damaging.
106. Deputy Jan O'Sullivan asked the Minister for Business, Enterprise and Innovation the role her Department has played in providing opportunities for asylum seekers to work here; if the information available to her, her Department and the agencies under her remit has contributed to decisions on the way in which asylum seekers can access employment and help to fill skills gaps; and if she will make a statement on the matter. [30460/18]
Amharc ar fhreagraPolicy responsibility for asylum seekers rests with my colleague the Minister for Justice and Equality, Minister Flanagan.
The Supreme Court judgement in NVH v MJE of 30 May 2017 declared that an absolute ban on the right to work for international protection applicants is contrary to Article 40.1 of the Constitution. Under section 16(3)(b) of the International Protection Act 2015, an applicant was prohibited from accessing or seeking to access the labour market while their application is being determined. The Government approved the recommendations of the inter-Departmental Working Group (IDG) chaired by the Department of Justice and Equality (DJE),established to examine the implications of the judgement and decided to opt into the EU (recast) Reception Directive to give effect to the Supreme Court Judgement.
Officials from Department participated proactively and constructively in the implementation group set up to give effect to the Government Decision. My Department’s role was in relation to issues around access to the labour market.
Taking into account the State’s continuing economic recovery and emerging labour market shortages in certain sectors, applicants that come within the terms of the Directive are being granted broad access to the labour market, in line with people ordinarily resident in the State.
Arrangements agreed under the opt-in process were announced on the 27th June 2018. International Protection Applicants may apply to the Minister for Justice and Equality for a labour market permission, which covers both employment and self-employment, if they haven't received their first instance decision within 9 months. The Labour Market Access Unit (LMAU) of the Irish Naturalisation and Immigration Service (INIS), on behalf of the Minister, will process applications. The permission will be granted to eligible applicants for six months and will be renewable until there is a final decision on their protection application.
My officials will continue to work closely with officials of the Minister for Justice and Equality to assist with the implementation of the provisions of the Directive.
107. Deputy Niamh Smyth asked the Minister for Business, Enterprise and Innovation the most recent occasion on which the IDA visited counties Cavan and Monaghan; the number of new jobs that have been created by the IDA in the past 12 months; the steps it is taking to attract companies to the counties; the success it has had with the strategy for the counties; and if she will make a statement on the matter. [30264/18]
Amharc ar fhreagraAs Minister for Business, Enterprise and innovation, and as an elected representative from Cavan-Monaghan, this topic is one that is close to my heart. Regional development is a key priority of mine and I am focused on increasing investment in every county in Ireland. The IDA shares this objective and I am pleased that its results for 2017 show that 45% all jobs created last year were for locations outside Dublin. Every region in Ireland, including the Border Region, posted net gains in jobs last year and there are now over 122,000 people employed across 649 firms in IDA client companies outside of Dublin.
Employment numbers for 2018 will not be available until my Department's Annual Employment Survey is carried out in November 2018. In the last year IDA client companies conducted two site visits to County Cavan and one site visit to County Monaghan. Site visit activity, however, does not necessarily reflect investment potential, as at least 70% of all new FDI comes from existing IDA client companies.
I want to stress that IDA Ireland is working hard to promote Counties Cavan and Monaghan to potential investors. The Agency has a dedicated regional manager for the North East/North West Region and has an office in the Cavan Innovation and Technology Centre. As part of its strategy to encourage investment to the area, it is focusing on sectors including agrifood, manufacturing, tourism, internationally traded services and cleantech. The IDA also regularly engages with key stakeholders on the ground in Cavan and Monaghan, including with local authorities, public bodies, the education sector and companies from both its own client base but also from the indigenous sector. IDA Ireland also owns lands in both Cavan and Monaghan that are being actively marketed to its clients.
It is important to emphasise that foreign direct investment only forms one part of investment in regional locations. Indigenous enterprise is responsible for a significant portion of employment growth, especially outside Dublin. My Department and all its agencies, including Enterprise Ireland and the LEOs, work together constantly and collaboratively to ensure that jobs and investment are spread as fairly as possible across this country.
The success of this Government's strategy for regional job creation is reflected in Combilift's new €50 million Research and Development and Testing Centre in County Monaghan. This new investment will create 200 jobs and is an example of a home-grown Monaghan success story. The positive impact that Combilift has on the county, the border region and Ireland cannot be underestimated.
I am pleased to say that Enterprise Ireland supported companies employed 10,817 people in Cavan and Monaghan in 2017. Companies supported by the LEOs in Cavan and Monaghan employ a total of 2304 people, representing a net increase of 239 over the previous year. I think that these numbers clearly reflect the growing domestic industries which are so important to both counties.
We recognise that there is room for improvement in Cavan and Monaghan and we are working hard, across Government, to further unlock the economic potential of the region. The Enterprise Agencies under my remit will continue to engage with their clients, and with one another, to create jobs and source new investment for the region.
108. Deputy Willie Penrose asked the Minister for Business, Enterprise and Innovation the contingency planning which has been undertaken in respect of the recent actions of the US Administration in seeking to undermine WTO rules and imposing tariffs on EU imports; and if she will make a statement on the matter. [30986/18]
Amharc ar fhreagraThe Irish Government, along with the rest of the EU Member States, is deeply disappointed with the current direction of US trade policy. We – all 28 EU Member States and the EU Commission – are clear that these tariffs are not justifiable on national security grounds. We fully subscribe to the EU position that these tariffs are unjustified and in conflict with WTO rules.
The EU Commission, which leads on Trade Policy for the Member States under the Treaties, and working in full consultation with the Member States, has prepared a measured, proportionate, and WTO-compatible response, which Ireland has fully supported. These measures include the launching of proceedings by the EU against the US at the WTO, the introduction of rebalancing tariff measures by the EU and the possible imposition of provisional safeguard measures comprising import quotas or tariffs to shield EU producers from a sudden influx of steel or aluminium into the EU market which would ordinarily have been destined for the US market.
EU leaders have also endorsed a positive agenda for dialogue on trade issues with the US, once the steel and aluminium tariffs against the EU are lifted. Ireland is of the view that the EU should not negotiate under threat, and that any talks must be preceded by a permanent exemption. The EU and its Member States are also working with other like-minded countries – such as Japan, Canada, and Mexico – to develop an agreed approach to issues of concern. We continue, of course, to keep open the lines of communication with the US Administration and other key ‘influencers’.
The US has sought to use the threat of tariffs as leverage to obtain trade concessions from the EU. The EU’s united approach that we are willing and able to respond when necessary in the face of such unilateral non-WTO-compliant actions is vital. We believe the US Administration is resolute on these issues at this time and, therefore, we believe the EU must remain as resolute and stay united. The alternative is to accept such action in breach of WTO rules as the EU understands them. Over the past number of months, the EU has engaged with the US at all possible levels, and with other partners, to find a solution to the problem of overcapacity in the steel sector. Indeed, I met with Secretary Ross in Washington to discuss these and related matters in May.
At a national level, we continue to monitor potential impacts of the trade measures being taken by the US, as well as those being contemplated. We remain alive to the fact that while certain actions may have limited impact at macro level, this could possibly mask individual firm level impacts. To this end, my Department and its agencies are keeping the situation under review. Indeed, I convened a meeting of my Enterprise Forum on Brexit and Global Challenges last week to discuss our strategy and hear, first hand, from a variety of representative bodies, their issues and concerns.
