Written Answers Nos. 50-66
50. Deputy Alan Farrell asked the Tánaiste and Minister for Enterprise, Trade and Employment the status of the sustainable enterprise fund; the further considerations being given to the scheme; and if he will make a statement on the matter. [29945/20]
Amharc ar fhreagraTo assist business to address the challenges posed by the COVID-19 pandemic, Enterprise Ireland is working with client companies, through the Sustaining Enterprise Fund, to support the stabilisation of their business so that they can undertake a developmental programme focused on recovery and growth.
Through this fund, Enterprise Ireland provides funding for companies who have been impacted by COVID- 19, either through a reduction in turnover/profit or a significant increase in costs. The purpose of this funding is to enable the company to stabilise and implement a business sustainment plan, leading to a return to viability and contributing to the recovery of the Irish economy.
The Sustaining Enterprise Fund provides manufacturing and internationally traded service companies with access to liquidity between €100,000 and €800,000. This initiative provides the funding companies need to stabilise cashflow, adapt operations and innovate to meet new customer needs. The Sustaining Enterprise Fund provides the following elements:
- A non - repayable grant up to 50 per cent of a funding package (up to €200,000);
- No repayments for the first 3 years; and
- Zero administration fee for the first 6 months and 4 per cent thereafter.
The Sustaining Enterprise Fund is also targeted at companies at different stages of development and growth (e.g. established companies, start-ups and small enterprises).
The agency is actively working with over 202 companies to prepare applications for funding under the Sustaining Enterprise Fund. 112 applications for funding have been approved by Enterprise Ireland to date to the value of €28 million. Under Budget 2021, an additional €10 million in funding is being provided.
All funding under the Sustaining Enterprise Fund must be approved by the 31st of December in line with the EU Commission’s Temporary Framework for State Aid Measures to Support the Economy in the Current COVID-19 Outbreak.
51. Deputy Dara Calleary asked the Tánaiste and Minister for Enterprise, Trade and Employment the strategy changes introduced by IDA Ireland and Enterprise Ireland in view of international travel restrictions as a consequence of Covid-19. [25947/20]
Amharc ar fhreagraCOVID-19 has presented undeniable challenges to our ongoing efforts to sustain and grow indigenous and foreign direct investment (FDI) in Ireland. The introduction of travel restrictions around the world is already, for example, disrupting the typical way in which the IDA Ireland and Enterprise Ireland engages with investors, resulting in fewer numbers of site visits and client meetings.
Enterprise Ireland (EI) continues to have a travel ban in place for all staff business related travel since March 2020. All market and buyer related supports are now delivered remotely to EI clients with in-market teams supporting virtual buyer introductions and virtual market visits. Over 100 webinars have been curated and delivered by EI across all sectors in recent months sharing the latest market and customer insights directly from in-market teams.
Last week, Enterprise Ireland held their annual International Markets Week virtually and this provided the opportunity for over 700 client companies to engage directly with Enterprise Ireland in-market advisers across 40 market locations using video technology.
IDA Ireland has also migrated many of its business development and client engagement activities to digital platforms. The Agency has developed new digital content and has also put in place an E-Site Visit experience for potential investors.
Over the number of months, IDA Ireland’s focus has been on helping to protect and grow jobs within its client company portfolio through stabilisation and recovery. The Agency has worked to support to the fullest extent possible client companies throughout the pandemic and the Agency will continue to engage closely with them to help retain, transform and position them for future growth.
I am confident that Ireland will remain attractive in the long-term to international investors. Our traditional strengths – including our talented workforce and pro-enterprise policy environment – remain very much intact and valued by overseas firms. I look forward to working with the IDA on the formulation of a new strategy that will guide the Agency's work in the time ahead.
52. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps he will take in budget 2021 to support the small and medium enterprise sector; and if he will make a statement on the matter. [29721/20]
Amharc ar fhreagraI have engaged with the Minister of Finance and Minister of Public Expenditure and Reform regarding the 2021 budgetary priorities.
My focus in particular on building on the measures in the July Stimulus Package. I want to help small businesses in particular to navigate the months ahead, which will be challenging, and help get as many people as possible back to work. The July Stimulus includes enhanced direct grants to businesses and improved access to low cost loans, worth more than €5 billion, with an additional €2 billion in loan guarantees. It is bigger in scale than most budgets and will be deployed at speed. It is designed to help businesses to open, to help those that are already open to stay open, to get staff back to work and for those who cannot go back to their old jobs, there are new opportunities.
We’ve already pumped billions of euro into the economy, through wage subsidies, the PUP, cash for businesses, low cost loans and commercial rates waivers. We know these actions have made a difference. Helping to repair the damage wrought on the economy – and keeping the virus contained – is vital for the wellbeing of our people. As set out in the July Stimulus we will do this by:
- supporting viable businesses and jobs, including new hires, through the extended wage subsidy scheme, which run until the end of March 2021, will be open to firms that do not currently participate and open to workers like seasonal workers who weren’t previously included;
- giving companies extra assistance to reopen and stay open through an enhanced Restart grant available to more firms and more generous;
- providing more and cheaper loan finance;
- funding to help businesses and get ready for Brexit;
- exploiting opportunities in areas like Life Sciences and investing in decarbonisation and digitalisation;
- the six month reduction in the VAT, going down from 23% to 21%;
- more funding for the IDA to promote Ireland as a place for foreign direct investment.
It is likely that COVID-19 and Brexit will continue to affect the Irish economy over the next 12 to 18 months and we will need to continue to be aware of the challenges that these pose for enterprise.
Whilst these will be the most immediate concerns to our enterprises, we must continue to respond in a way that also addresses the medium and long-term needs of enterprise.
As part of Budget 2021, the Exchequer allocation for my Department will increase by €254m. I am allocating an additional €136m to address ongoing COVID-19 challenges, including €50 million to Enterprise Ireland. I am allocating €30 million in further funding will go to the IDA and EI for an EU approved COVID Life Sciences Products Schemes, €25 million to IDA and €5 million to EI. We will maximise the potential of the exemption from EU state aids afforded through this scheme. This will deliver very significant economic and employment benefits. I am also providing €5 million in funding for the Online Retail Scheme to allow retailers to enhance their online presence.
I am providing €10 million to continue the non-repayable grant of up to 50% of a funding package available under the Sustaining Enterprise Fund through Enterprise Ireland.
In relation to accessing finance, I am providing over €14 million to fund my Department’s contribution to increase the lending capacity under the Future Growth Loan Scheme.
I am providing for the further capitalisation of Microfinance Ireland by €5 million to allow it to continue to provide its tailored COVID Loan Scheme to micro enterprises impacted by the pandemic.
I am providing a further €25 million to meet liabilities in the first full year of the new COVID Credit Guarantee Scheme.
As part of Budget 2021, we announced also the new COVID Restrictions Support Scheme (CRSS) to provide targeted support for businesses.
The scheme is designed to assist those businesses whose trade has been significantly impacted or temporarily closed as a result of the restrictions as set out in the Government’s ‘Living with COVID-19’ Plan. The scheme will generally operate when Level 3 or higher is in place and will cease when restrictions are lifted.
The sectors impacted by the current Level 3 nationwide restrictions are accommodation, food and the arts, recreation and entertainment. If the Government decides to move to a higher level of restriction then other sectors may qualify.
For these businesses, the Government will make a payment, based on their 2019 average weekly turnover, to provide support at a difficult time.
The scheme will apply to business premises where the Government restrictions directly prohibit or restrict access by customers. Qualifying businesses can apply to the Revenue Commissioners for a cash payment in respect of an advance credit for trading expenses for the period of the restrictions.
The scheme will be effective from 13th October until 31st March 2021, and the first payments will be made to affected businesses by mid-November.
Payments will be calculated on the basis of 10 per cent of the first €1 million in turnover and 5 per cent thereafter, based on average VAT exclusive turnover for 2019. It will be subject to a maximum weekly payment of €5,000.
I want the impact of this pandemic to be a lost year and not a lost decade. So, we will continue to focus on what we can do to grow businesses and grow opportunities for Irish business. To grow resilience and productivity in businesses.
Our focus in allocating our funding is to ensure that businesses who need help with challenges arising from Brexit and COVID-19 get it and get it when they need it.
We are focusing on providing the right funding and support to help grow resilient and future-focused businesses beyond COVID, beyond Brexit towards the economy of the future.
54. Deputy Brendan Smith asked the Tánaiste and Minister for Enterprise, Trade and Employment if programmes of assistance will be made available to small and medium enterprises in the Border region that will be adversely affected by Brexit and that are heavily dependent on the Northern Irish and British markets as export destinations; and if he will make a statement on the matter. [30591/20]
Amharc ar fhreagraGovernment is focusing on the businesses that could be worst affected by Brexit, such as those in agri-food and small exporters. This week's budget announced a series of measures and additional funding to help businesses get prepared for 1 January. We want to help them to retain their market in Britain and to open up other markets, a task that is made all the more difficult by Covid-19 because of the restrictions on international travel.
All businesses, however, even the smallest businesses, need to take immediate steps to understand the impact on their operations of the UK exit from the Single Market and customs union. They must be ready for changed customs and supply chains.
I want to stress the importance for businesses to act now to get ready for the changes that we know are coming on 1st January 2021 and to make it clear that these changes will happen regardless of the outcome of the negotiations between the EU and the UK on a Free Trade Agreement.
Government is supporting Brexit preparations through the various Schemes and programmes implemented through our Agencies. Recently, I wrote to all 250,000 businesses that are registered in the State to inform them of the most important actions that they need to take in advance of 1 January and to provide them with a useful Brexit checklist of those actions and contact details of the Government agencies they can contact to help. The Revenue Commissioners have written to over 90,000 businesses that have traded with the UK since 2019 to advise them of the essential customs changes that lie ahead. That letter also included relevant information from the Department of Agriculture, Food and the Marine on exporting animals, plants and products of animal and plant origin.
I launched a €20 million ‘Ready for Customs’ support scheme through my Department’s agency Enterprise Ireland to help businesses prepare for the challenges of trading with and through the UK.
In early September, Government published a Brexit Readiness Action Plan. This Plan provides guidance and advice to business and individuals in a vast range of areas including trade in goods and services, customs and other sanitary and phytosanitary checks and controls, import duties, EU single market accreditations, use of the UK landbridge, data transfer, recognition of qualifications, and many other issues. The Plan provides clear advice on steps that need to be taken by businesses to address these many and varied issues come 1 January 2021.
This readiness work is supported by a major national communications campaign under the ‘Getting Ireland Brexit Ready’ brand.
The Border Enterprise Development Fund (BEDF), which is administered by Enterprise Ireland, will provide support for collaborative, enterprise capability building projects, to advance entrepreneurship, productivity and innovation in the Border Region. The Fund is part of a €28 million economic stimulus package announced for the six border counties of Louth, Monaghan, Cavan, Sligo, Leitrim and Donegal earlier this year. Under the BEDF 11 projects have recently been approved funding totalling over €17 million with projects approved in each of the Border counties.
Enterprise Ireland run an on-line Customs Insights course which is helping businesses to understand the key customs concepts, documentation and processes required to move goods from, to and through the UK.
Enterprise Ireland will also launch a Brexit Readiness Checker. The tool follows on from the Brexit Scorecard and will produce a report assessing a company’s readiness for Brexit across a range of key areas and signpost users to resources to assist them on their journey.
Enterprise Ireland will continue to offer its range of supports in the form of grants, mentoring and training to enable their clients to examine their exposure and their capability to meet both the challenges and opportunities Brexit presents.
In addition, the Local Enterprise Offices will be carrying out the second phase of their one-to-one successful Brexit mentoring and training “Prepare Your Business for Customs” workshops and will be supported by a full awareness campaign to target all relevant small Irish businesses together with the rollout of an online “Countdown Campaign” that will mark every significant day in the lead up to December 31st.
The LEOs will continue to offer their grants to business responding to Brexit challenges including the Technical Assistance for Micro Exporters (TAME) grant of €2,500 and LEAN for Micro grants to assist productivity improvements.
The new €2 billion Credit Guarantee Scheme, is the largest guarantee scheme that has ever been provided for Irish businesses to date to ensure there is financing available for Irish businesses as they reboot and rebuild both through Covid-19 and Brexit.
We have also provided further funding to MFI to ensure it can meet the needs of microenterprises that can not avail of bank funding over the coming period.
Businesses also need longer term funding for investment purposes, and the SBCI Future Growth Loan Scheme, which was expanded at the beginning of the Summer in response to very high demand, provides up to €800m in lending to eligible businesses to support strategic long-term investment, including for a post-Brexit/post-Covid-19 environment.
The full range of Enterprise Ireland, Local Enterprise Office (LEO) and Údarás na Gaeltachta grant and advisory supports continue to be available to eligible firms to help with strategies to access finance, commence or ramp-up online trading activity, reconfigure business models, cut costs, innovate, diversify markets and supply chains and to improve competitiveness.
I can assure the Deputy that I will continue to work with my colleagues across Government and with all stakeholders, to examine all such appropriate business supports to assist all businesses impacted by both Brexit and COVID-19 in the context of Budget 2021 and the upcoming national economic plan.
55. Deputy Neale Richmond asked the Tánaiste and Minister for Enterprise, Trade and Employment the status of Enterprise Ireland’s strategy to diversify the destination for Irish exports post Brexit; and if he will make a statement on the matter. [30517/20]
Amharc ar fhreagraSince the onset of Brexit, a key focus of Enterprise Ireland has been to assist companies prepare for Brexit by addressing key readiness issues and to support them to innovate, be competitive and to diversify their global footprint. These are key attributes required to be resilient to economic shocks, such as Brexit.
In 2019 Enterprise Ireland’s client companies reported exports of €25.6bn, an 8 per cent increase on 2018 exports. Indeed, the UK remained the top exporting location for Enterprise Ireland clients with €7.9 billion exports reported, an increase of 2 per cent on 2018.
Nevertheless, diversification of the destination for exports beyond the UK is a key strategic focus of the Government and Enterprise Ireland. In 2019, 31 per cent of recorded exports went to the UK, down from 42 per cent in 2009. This level of exports exceeded the agency’s ambitious target of 33 per cent of exports going to the UK.
Enterprise Ireland’s work to support diversification of markets is underpinned by:
- The Market Discovery Fund to incentivise companies to research viable and sustainable market entry strategies in new geographic markets;
- An increase in the number of trade missions and events; and
- An expansion in the agency’s global footprint to assist companies entering new geographic regions.
Other key diversification initiatives over 2019/2020 include targeted expansion and strengthening of Enterprise Ireland’s overseas presence, as part of the Government’s Global Ireland 2025 initiative, to support the achievement of export diversification targets, the launch of "Enter the Eurozone" programme to support companies to develop a market entry plan for a Eurozone market, delivery of series of Enterprise Ireland Ambition events for targeted markets (e.g. Germany, France, Italy) to increase client awareness of opportunities and the "Irish Advantage" international digital trade platform and communications programme promoting Irish innovation in key sectors to buyers in Brexit and Covid-19 impacted sectors such as life sciences, construction, fintech and cyber security.
56. Deputy Paul Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment if he has made contact with a company (details supplied) and the trade unions to discuss the difficulties staff are having with the company. [27549/20]
Amharc ar fhreagraAer Lingus has announced their intention to restructure the business in the wake of the Covid-19 crisis. I fully understand the difficulties this may bring to workers, their families and their localities, during an already challenging period.
I am aware that constructive engagement with senior representatives from the Department of Employment Affairs and Social Protection took place to ensure that employees were eligible to apply for applicable jobseeker supports for days of unemployment, even when Aer Lingus is claiming the Employment Wage Subsidy Scheme.
Any discussions entered into voluntarily by the workers and employers with one of the State’s industrial relations bodies, the WRC or the Labour Court, are confidential to the parties and I, as Minister, have no role in, or knowledge of, these discussions.
I encourage all sides to make every effort to reach a resolution by agreement between companies and workers with the help of the industrial relations machinery of the State.
57. Deputy Mick Barry asked the Tánaiste and Minister for Enterprise, Trade and Employment the contacts he has had with a company (details supplied) and trade unions regarding an ongoing dispute; and if he will make a statement on the matter. [29994/20]
Amharc ar fhreagraThe Taoiseach and Ministers Troy and English and I have met with Debenhams employees and their union, Mandate, on a number of occasions to hear their views and concerns about the liquidation of Debenhams Ireland.
The government fully appreciates how difficult the situation is for those involved and their families. All relevant state agencies are working in a coordinated way to support those who have lost their jobs. The State will guarantee statutory employment rights to the workers of Debenhams, including statutory redundancy and will provide job-search assistance and upskilling opportunities.
A number of suggestions have been made as to how the Government might intervene. However, the Government cannot intervene with a liquidator, who has a statutory duty to realise assets and distribute to creditors in accordance with the law. Equally the Government has no statutory power to intervene in a court-supervised liquidation, that is subject to oversight of the High Court.
Any discussions entered into voluntarily by the workers and employers with one of the State’s industrial relations bodies, the WRC or the Labour Court, are confidential to the parties and I, as Minister, have no role in, or knowledge of, these discussions.
58. Deputy David Stanton asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to establish a national agency for small businesses; and if he will make a statement on the matter. [30101/20]
Amharc ar fhreagraThis Government places SMEs and micro-enterprises centre stage in many areas of our Programme for Government, given the critical role which SMEs and micro-enterprises have always played in the economy and will play in the recovery as the “backbone” of our economy and as key drivers of employment.
Our enterprise policy gives significant attention to ensuring that our enterprises enjoy a supportive business environment through constructive framework conditions as well as through direct financial and soft supports.
Balancing our enterprise support direction as between FDI, export only businesses and non-exporting indigenous firms, is however an important policy consideration and one which has been touched upon by the OECD in its 2019 report on entrepreneurship and SME policy in Ireland which was commissioned by my colleague, Minister Humphreys, when Minister for Business, Enterprise and Innovation.
Enterprise Ireland’s remit is to assist and support the indigenous sector albeit with a specific focus on helping companies to innovate, compete and diversify and ultimately trade globally. Companies supported by Enterprise Ireland now, directly and indirectly, account for more than 375,000 jobs in the Irish economy. EI client companies total spend in the Irish economy in 2019 was €28.12 billion delivering huge economic impact across every region and County in Ireland.
The network of Local Enterprise Offices (LEOs) was established in 2014 and has become an important and effective channel to provide information and advisory support to indigenous local businesses. The LEO network is a unique business support delivery mechanism, unrivalled in its success amongst comparable small and micro business support mechanisms in the EU. In 2019, the LEOs, within allocated resources at that time, dealt with 7,400 client companies, supporting over 36,000 jobs. The LEO budget has been increased from €27.5 million to €70.5 million since the onset of the pandemic to help microenterprises in business continuity planning and in establishing an on line presence.
Significant additional resources have also been provided to our Agencies in Budget 2021.
The OECD report refers to 250,000 active enterprises in Ireland of which 92% are microenterprises. Such a high number presents challenges in terms of the State’s engagement with and support of enterprises in addition to ensuring compliance with the EU's state aid rules.
In terms of expanding the eligible entities, the LEOs have already started on this route with last year’s Productivity Fund which targeted an expanded cohort of enterprises (for employees up to 50) which would customarily not have qualified for funding as well as in the provision of Business Continuity Vouchers through the LEOs for small businesses with employment up to 50. Enterprise Ireland is also working with a broader base of non-exporting SMEs, such as through the Retail On-line Scheme and through its Covid 19 Sustaining Enterprise Fund.
In that regard, legislative powers are available under Section 7 (1) (i) of the Industrial Development (Enterprise Ireland) Act 1998 to require Enterprise Ireland and the LEOs to administer any schemes, grants and other financial facilities requiring the disbursement of European Union and such other funds as may from time to time be authorised by the Minister with the concurrence of the Minister for Finance. These powers have been used extensively in tackling the dual challenges of Brexit and Covid-19.
It is key that, whatever overarching institutional framework we have for developing micro businesses and SMEs, that a benign environment is in place for SMEs to start up, scale up, to access international markets and to enable SMEs to become more productive and ready for the transition to a digital and green economy.
In that context, I have established the SME Growth Taskforce in follow up to a commitment in the Programme for Government in order to design a National SME Growth Plan that will map out an ambitious long-term strategic blueprint for SMEs and entrepreneurs beyond COVID-19.
The Task Force will also examine the recommendations in the 2019 OECD Report including the strategic framework and current delivery system for SME supports and entrepreneurship policy in Ireland. This new Taskforce is composed of a broad range of business people with expertise in a range of sectors, as well as SME representative groups and other individuals uniquely positioned to contribute to a long-term vision for the SME sector and how best it can be supported. I hope to receive recommendations from the task force in November.
59. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans for further measures to assist the business sectors negatively impacted by Covid-19, bearing in mind that the virus will remain a threat for some time; and if he will make a statement on the matter. [29720/20]
Amharc ar fhreagraI am acutely aware that until a COVID-19 vaccine or treatment is widely available, the necessary responses to protect public health will continue to impact economic activity.
I would remind the Deputy that much has already been done to assist enterprises through the crisis.
Ireland came through the initial economic shock with unparalleled levels of State intervention aimed at stabilising the economy and supporting businesses, employment and incomes. Over €24½ billion had been made available in support measures as of September 2020, including the July Jobs Stimulus package of over €7 billion.
The total budgetary package of over €17¾ billion announced in Budget 2021 is unprecedented in both size and scale in the history of the Irish State further demonstrating the Government’s commitment to supporting the country through this crisis.
The €3.4 billion Recovery Fund, a cornerstone of the Government’s economic response in 2021, will continue to support the labour market helping people get back into work, training or education; and building confidence among businesses and consumers, promoting investment and protecting jobs. It will support both those in employment and those whose jobs have not survived the pandemic.
With the Budget providing for an increase in core capital spending programmes of some €1.6 billion in 2021, the Government will invest in job-rich infrastructure projects which are regionally distributed and on insulating the economy, as much as possible, from the fallout from Covid and Brexit. We will use these measures to get as many people back to work as quickly as possible and to mitigate against any potential scarring from long-term unemployment.
The further extension of the EWSS until the end of December 2021 marks a historic intervention by Government to support employment in businesses affected by this pandemic. It ensures that the link between the employer and the employee is maintained and assists businesses to continue to trade in spite of reduced demand. We are also promoting the take-up of available employment by allowing self-employed PUP recipients to take up intermittent or occasional work opportunities without losing their PUP entitlement.
We are managing difficult trade-offs to allow the economy to operate as fully and effectively as possible to minimise permanent loss of economic activity while safely living with Covid-19. I am aware that despite this approach, some businesses, particularly in the entertainment, arts and hospitality sectors remain badly impacted by restrictions. The COVID Restrictions Support Scheme (CRSS) is being introduced to help businesses who are severely restricted to meet ongoing costs through periods of restriction and provide employment as restrictions are eased and activity resumes.
Over the medium-term, our overarching expectation is that with the right set of policies we will be on the other side of this crisis and in recovery mode from 2022 onwards although high levels of unemployment are likely to take longer to address. The National Economic Plan, to be published in November, will look to the future setting the vision and roadmap to 2025 and the longer-term policy approaches to ensure that our economy will be resilient into the future.
The National Economic Plan will focus on ensuring a balanced recovery, building resilience across enterprise and sectors and future proofing the economy and society with a focus on the digital and green transformation of enterprise. SME productivity will be at the heart of the plan. At the same time, it will aim to maximise the potential of the FDI sector in Ireland and strengthen linkages between these sectors.
60. Deputy Aindrias Moynihan asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to support businesses following the announcement of level 3 Covid-19 restrictions in view of the fact that additional measures of support are available for counties Donegal and Dublin; and if he will make a statement on the matter. [29850/20]
Amharc ar fhreagraThe Government made the decision that from midnight on the 6th of October, all remaining counties were to be placed on Level 3 for a period of 3 weeks until midnight on 27th October 2020, at which point we will again review the situation, based on the status of the virus and public health advice.
I understand that these restrictions will have a significant impact on businesses and employment around the country. In recognition of the impact of these restrictions on businesses a 30% top-up to the Restart Plus grant will be provided to help support those affected through the three-week period. Businesses who have previously benefited from the Restart Grant will be eligible to re-apply for this top-up.
This is in addition to the €7bn July Stimulus of supports for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment for the self-employed, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs to assist with restructuring as a result of the COVID-19 pandemic.
This week's Budget contains targeted actions to help business where they are hurting most. The 9% VAT rate will help hotels, pubs, restaurants and other businesses in the entertainment, tourism and hospitality sectors. The extension of the commercial rates holiday will help reduce the fixed cost of doing business. The new CRSS programme will provide closed or effectively closed business a payment based on their turnover up to €5,000 per week. This will make a really big difference and will be paid in addition to the Employment Wage Subsidy Scheme (EWSS).
I continue to work with my colleagues across Government to assist businesses impacted by COVID-19 to adapt to the changing business landscape. Budget 2021 is testament to our commitment to supporting vulnerable but viable businesses in all sectors of the economy. In the coming weeks, we will be finalising the report from the SME Growth Taskforce, which will input to next month's National Economic Plan.
62. Deputy Gino Kenny asked the Tánaiste and Minister for Enterprise, Trade and Employment if he has discussed a dispute (details supplied) with the Minister for Finance; if so, if he has discussed the proposal that the State and the Revenue Commissioners stand aside as creditors to allow the liquidators prioritise former workers in order to achieve a resolution of the dispute; and if he will make a statement on the matter. [30567/20]
Amharc ar fhreagraDebenhams is a court-supervised liquidation, subject to oversight of the High Court and accordingly is sub judice. Under the Companies Act 2014, I have no power to intervene in a court-supervised liquidation.
Similarly, the Government cannot intervene with a liquidator, who has a statutory duty to realise assets and distribute to creditors in accordance with the law and who reports to the High Court.
Notwithstanding this, the Taoiseach, Government Ministers and I have met on a number of occasions with Debenhams employees and union representatives from Mandate to hear their views and concerns. While the Government cannot interfere with the High Court-overseen liquidation process, Ministers have sought at all times to ensure that the concerns of workers are heard and that the State’s employment and training services are responding to the needs of workers.
Preferential payments are provided for under section 621 of the Companies Act. A preferential creditor is one whose debts are deemed to be more important than the debts of another creditor. The current law is a result of careful balancing of the various rights of creditors, including employees. In terms of wage arrears, outstanding holiday pay, and pension scheme contributions, employees are already considered preferred creditors.
Under the Companies Act, a liquidator is under a statutory duty to realise and distribute the assets of an insolvent company in the order prescribed by law. Separately State creditors - including Revenue, Social Welfare and Local Authority rates - operate under statutory legal frameworks, which must be respected. Under these statutory frameworks, legally, the Government does not have discretion to forgo debts owed to the State by a particular company: that would represent picking and choosing debts owed to the taxpayer.
Specifically, Revenue has advised that it has no authority to direct the operations of a liquidator or to suggest how dividends are distributed among creditors and shareholders. Revenue is legally obliged to accept the level of dividends provided by the liquidator having regard to its status as a preferential creditor.
It is not clear that 'standing aside' would have any positive impact on the workers concerned. It is assumed that this would 'add more money to the pot' but in reality any proceeds from the sale of assets would only go towards meeting statutory redundancy. When the statutory limits are met, excess proceeds would revert to other creditors in order of preference.
The Government has committed in the Programme for Government to review whether the current legal provisions surrounding collective redundancies and the liquidation of companies effectively protect the rights of workers. I have asked the Company Law Review Group to undertake an expedited review of this commitment as it relates to company law, to be completed before the end of the year.
The Government has also undertaken to explore with the social partners proposals that have been made by ICTU.
The Government is supportive of the best outcome that is possible for the workers, within the legal framework available. I continue to call on all parties to enter into discussions and engage towards a fair resolution.
64. Deputy Alan Farrell asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to encourage and support greater numbers of women entering the enterprise sector; and if he will make a statement on the matter. [29946/20]
Amharc ar fhreagraMy Department and its agencies are working continuously to address the under-representation of women across the enterprise sector. Increasing female participation in enterprise is a vital way to grow the diversity and strength of our indigenous business sector.
In order to optimise all available skills and talent throughout the country, Enterprise Ireland, which is under the remit of my Department, has placed a focus on increasing the number of women-led start-ups and the number of women in leadership positions in companies. To support this, in early 2020, Enterprise Ireland launched an Action Plan for Women in Business with the objective of:
- Increasing the number of women-led established companies growing internationally;
- Increasing the number of women in middle and senior management and leadership roles in Irish companies;
- Increasing the number of women becoming entrepreneurs; and
- Increasing the number of women-led start-ups with high growth potential.
The 2025 ambition for the delivery of the objectives is to achieve:
- 100 per cent increase the number of women-led companies growing internationally;
- 100 per cent increase in participation rate of women on Enterprise Ireland Management Development programmes;
- 50 per cent increase in women participants on start-up programmes;
- 50 per cent increase in Local Enterprise Office supports to women in business; and
- 30 per cent Increase the proportion of female founded High Potential Start-Ups.
The launch of this action plan by Enterprise Ireland builds on the success of Enterprise Ireland’s strategy for female entrepreneurships which has resulted in an increase in the number of female High Potential Start-Up founders. Work is now commencing to implement the Action Plan for Women in Business.
Increasing the levels of participation by women in entrepreneurial activity acts an important driver of economic growth and as a means of strengthening social inclusion. Enterprise Ireland and the Local Enterprise Office Network have also actively spotlighted and developed specific structures to encourage female entrepreneurship. This includes the introduction of a female only Competitive Start Up Fund in Enterprise Ireland, and established female specific tailored mentoring and training across the 31 Local Enterprise Offices nationwide.
Enterprise Ireland has also developed a series of female accelerator programmes in partnership with knowledge providers such as Going for Growth and the NDRC Female Founders Programme.
Role modelling is essential to encouraging more women to establish a business. My Department has worked intensively to shine a light of female entrepreneurship through identification and promotion of female role models with targeted events and awards, including Network Ireland’s - Business Networking for Women Across Ireland and the Planet Woman Academy.
The recently established SME Taskforce will bring forward a national SME Growth Plan next month. The SME Growth Plan will set out a long-term strategic framework for SME and entrepreneurship policy in Ireland. This will be an opportunity to examine measures to increase the number of new entrepreneurs starting businesses, including women and other under-represented groups. I look forward to seeing the proposals that are brought forward in the Plan.
65. Deputy Brian Stanley asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to amend the Safety, Health and Welfare at Work Act 2005 to make workplace outbreaks of Covid-19 notifiable by workers to the Health and Safety Authority. [29987/20]
Amharc ar fhreagra71. Deputy Gino Kenny asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will respond positively to calls from nurses and other healthcare professionals to reinsert the requirement that infectious diseases, including Covid-19, are reported by employers to the Health and Safety Authority as infectious diseases in the workplace; and if he will make a statement on the matter. [23678/20]
Amharc ar fhreagraI propose to take Questions Nos. 65 and 71 together.
I intend to introduce an SI in early November to bring in new Biological Agent regulations in line with the European Union Directive (EU) 2020/739. These new regulations require employers to carry out a Biological Risk Assessment in locations where there is an occupational risk of exposure to SARs-CoV-2 (the virus that causes the disease COVID-19), such as healthcare and laboratory settings. This will mean that all instances of a diagnosis of COVID-19, or the death of an employee resulting from COVID-19 in a healthcare or laboratory setting must be reported to the Health and Safety Authority.
In addition, the Health and Safety Authority is currently in the process of completing a regulatory impact assessment on a proposal to introduce a legislative requirement for all employers to report cases of COVID-19 to the Authority. This review is being carried out in line with the Health and Safety Authority’s legislative development process which involves the Board of the Health and Safety Authority and other relevant stakeholders. Following completion of the legislative review process, the Board of the Health and Safety Authority will inform me of any proposals or recommendations it considers appropriate.
COVID-19 is a notifiable disease under the Infectious Diseases (Amendment) Regulations 2020. Any infectious disease pandemic is first and foremost a matter of public health for which a legal basis for reporting already exists under public health legislation. Notifiable infectious diseases are statutorily reportable under the Infectious Diseases Regulations 1981 to the Chief Medical Officer of the Department of Health for investigation and control.
It must also be noted that the Workplace Contact Unit of the HSA can be contacted in confidence by anyone with concerns regarding workplace health and safety matters by phone (1890 289 389) or email (wcu@hsa.ie) and the matter will receive the appropriate attention.
66. Deputy Brendan Griffin asked the Tánaiste and Minister for Enterprise, Trade and Employment his views on recent job losses (details supplied) in County Kerry; if he will consider addressing the issue; and if he will make a statement on the matter. [29605/20]
Amharc ar fhreagraSupporting balanced regional development is a core objective of Government. In pursuit of this policy objective, Enterprise Ireland is working with manufacturing and internationally traded services companies in Kerry to build scale, innovate and expand reach - key attributes required to be resilient to economic shocks.
Since the onset of the COVID-19 pandemic, as part of the agency’s overall engagement with client companies, the agency is working intensively with companies to support them stabilise their business, thereby enabling them to undertake a development programme focused on recovery and growth. In addition, the agency is actively working with client companies to ensure they are prepared for a no deal Brexit.
In 2019 Enterprise Ireland client companies reported a record high of 221,895 people in employment. Sixty-Five per cent of this employment is located outside of Dublin. 4,828 people were employed in the 122 Enterprise Ireland supported firms in Kerry.
In the period 2017-2019, Enterprise Ireland paid €12.2 million to manufacturing and internationally traded services clients in Kerry to build scale, innovate and expand reach. Since the onset of the COVID-19 pandemic, as part of the agency’s overall engagement with client companies, the agency is working with companies in Kerry to support them stabilise their business, thereby enabling them to undertake development programmes focused on recovery and growth. In addition, the agency is actively working with client companies to ensure they are prepared for a no deal Brexit.
Under the Regional Enterprise Development Fund, Enterprise Ireland supported 6 projects in Kerry to the value of €7.5 million. These projects include the establishment of two Digital Hubs/Incubation Centres, a RDI Hub focused on Financial Services and Engineering, an Agricultural Centre of Excellence, a science and technology talent, skills initiatives, start-up promotion and a food hub. In addition, under the Regional Technology Clustering Scheme, in 2109, Enterprise Ireland approved €600,000 to 3 projects at the Tralee Institute of Technology.
The Government supports Enterprise Ireland's regional strategy, Powering the Regions, helping to achieve balanced regional enterprise development and seeking to grow and sustain jobs in every county. Initiatives to support job creation and enterprise in Kerry specifically are detailed in Enterprise Ireland’s Mid-West Plan and includes:
- Supporting Killorglin’s RDI HUB boosting Kerry’s financial services, digital innovation and ICT strengths.
- Supporting Kerry’s Agri-Tech Centre of Excellence driving new product development for the Agri sector and creating 300-500 jobs.
- Leveraging University of Limerick, Limerick IT, IT Tralee, the LEOs and key stakeholders in the Mid West to develop a robust pipeline of start-ups.
- Supporting 900 co-working spaces in the Mid-West through Enterprise Ireland's Worksmartchallenge campaign to support 10,000 co-working and incubation spaces in regional locations by 2024
There are 18 IDA client companies in County Kerry employing almost 2,200 people. Since 2014, Kerry has also witnessed an 11% increase in employment in overseas companies with almost 230 net new jobs added during this period. The County has maintained a strong reputation as a successful home to firms such as Astellas, SPX Flow Technologies and Temmler.
IDA Ireland also regularly engages with key stakeholders on the ground in County Kerry including local authorities, the education sector and both overseas and indigenous companies with a view to generating new employment opportunities.
In addition to the general support that it provides to client firms through advice and expertise on investing in Ireland, the Agency is authorised by my Department to provide a range of particular financial supports in the form of employment, capital, research and development, environmental and training grants.
These grants represent an important means of encouraging companies to invest in Ireland, particularly to regional locations. From 2017 to 2019, IDA Ireland paid over €3.9m in grants to client companies based in County Kerry.
The IDA is also working on the formulation of a new strategy that will guide the Agency's work in the time ahead. That new IDA Ireland strategy was due to be launched earlier this year - but was understandably delayed - and it is now hoped to launch the Agency’s new strategy before the end of the year.
The new strategy will take into account the enormous impact of the COVID-19 pandemic and the challenging economic environment for foreign direct investment globally. The strategy will also ensure that we are best placed to retain and strengthen Ireland’s attractiveness as a first-class destination for overseas investment.
Both FDI and support for our SME indigenous sector remain fundamentally and equally important to our economic and enterprise model.
