Written Answers Nos. 215-238
215. Deputy Paul Donnelly asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will work with the employees of a group (details supplied) and their trade union representatives to see a fair and suitable outcome when the company ceases trading. [44457/20]
Amharc ar fhreagra224. Deputy Patricia Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will engage with the workers of a group (details supplied) and their trade union to ensure that the company will honour the workers collective agreement; and if he will make a statement on the matter. [44570/20]
Amharc ar fhreagraI propose to take Questions Nos. 215 and 224 together.
Joint provisional liquidators have been appointed by the High Court to four Irish operating companies, that are part of the UK fashion group Arcadia.
I extend my sympathies to the workers who are in danger of losing their jobs. I fully appreciate how difficult the situation is for those involved.
It is important to note that a provisional liquidator does not take steps to wind up the company but rather preserves and secures the company’s assets pending appointment of an official liquidator. As such, the employees of Arcadia remain as employees and continue to have employment rights which they can exercise.
I understand that it is hoped to procure the sale of the Irish operations as part of an overall sale of the group and that the Irish stores will continue to trade through Christmas to maximise the value of stock. The Government hopes a suitable and sustainable buyer can be found, and that any potential job losses can be avoided.
Section 12 of the Protection of Employment Act 1977 makes it mandatory on employers to notify the Minister for Enterprise, Trade and Employment of a proposed collective redundancy. To date none has been received in relation to Arcadia.
Redundancy is a matter for the employer in the first instance, or if it is a liquidation, it is a matter between the liquidator and employees. Government has no statutory role in negotiations. The State will guarantee statutory employment rights to the workers of Arcadia. If necessary, the Social Insurance Fund, provides a safety net for employees to ensure they receive their statutory entitlements.
The Companies Act 2014 provides safeguards to ensure that a liquidation process complies with the relevant statutory requirements.
Workers also have rights as creditors under company law and they can execute their lawful rights through the courts. They, or their representatives, can go to court on any question arising in the winding up of a company.
Government will work in a coordinated way to support any person who loses their job. Supports include welfare entitlements, job-search assistance and upskilling opportunities.
216. Deputy Jim O'Callaghan asked the Tánaiste and Minister for Enterprise, Trade and Employment the funding made available to businesses for Brexit preparations through his Department or agencies under its remit in 2020 by county; the number of businesses which have benefitted by county in tabular form; and if he will make a statement on the matter. [44464/20]
Amharc ar fhreagraI am conscious that the delays to the Brexit process may have caused businesses to defer their Brexit preparations. The added disruption of the pandemic has meant that many businesses have had to focus their efforts through much of 2020 on successfully navigating an unforeseeable crisis.
However, Brexit will mean change for Irish businesses. I am encouraging businesses to carefully consider their exposure to Brexit-related impacts, to take the necessary steps to insulate themselves from those impacts, and to ensure they continue to trade after 1 January.
The Brexit Loan Scheme makes lending available to eligible businesses that are exposed to current or future impacts arising from the UK’s withdrawal from the EU. On 7 December, there had been 281 loans sanctioned under this scheme, to a total value of €57,072,250. Government has now approved an extension for this scheme so that it will remain available throughout 2021 to help SMEs and small midcaps with their liquidity needs arising from Brexit.
The Future Growth Loan Scheme makes loans available to eligible Irish businesses to assist long term, strategic investment, including in response to Brexit and COVID-19. This scheme is also open to businesses engaged in the farming and seafood sectors. The Future Growth Loan Scheme has seen strong uptake to date and in July the initial €300m made available under the scheme was expanded by €500m, bringing the total funding available under the scheme to €800m. By 11 December, there were 2,601 loans sanctioned under this scheme, to a total value of €523,623,534. Table A, attached, shows the County breakdown of Brexit Loan Scheme and Future Growth Loan Scheme.
Enterprise Ireland, the Local Enterprise Offices and InterTradeIreland provide a number of specific supports available to businesses making Brexit preparations. Further details of these supports can be found in Tables B-F, attached.
Enterprise Ireland also administers some Brexit related supports on behalf of IDA Ireland. The data available shows that in 2019, a total of €100,347,964 in grant support was paid to IDA Ireland clients nationally across IDA Ireland’s entire suite of supports. Please see Table G, attached, for a breakdown on a county by county basis of grants paid to IDA Ireland clients in 2019.
217. Deputy Jim O'Callaghan asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of IDA Ireland site visits by county to date in 2020. [44465/20]
Amharc ar fhreagraWhen it comes to foreign direct investment (FDI), site visits represent a valuable tool through which investors can be encouraged to invest in regional areas. However, site visit activity does not necessarily reflect investment potential, as a significant percentage of all new FDI comes from existing IDA client companies. 2020 has presented undeniable challenges to our ongoing efforts to sustain and grow foreign direct investment (FDI) in Ireland. The introduction of travel restrictions around the world disrupted the usual way the IDA engages with investors, resulting in fewer numbers of site visits and client meetings. The pandemic has also impacted investor confidence and has likely caused some investment decisions to be delayed or postponed.
In response to COVID-19, IDA Ireland migrated many of its business development and client engagement activities onto digital platforms and has established a suite of digital content which can be accessed by potential investors. The Agency has developed this further and has put in place an E-Site Visit experience for potential investors. The use of digital platforms by IDA staff has contributed to an enhanced digital engagement with existing clients and in hosting E-Site visits with potential new investors.
The table below details the number of IDA site visits per county to end Quarter 3. These figures capture the total visits per County taking place with potential new investors. The IDA has hosted 131 In-Person visits and 101 E-Visits to the end of Q3.
|
County |
In person visits to end Q3 2020 |
E-visits to end Q3 2020 |
|
Carlow |
1 |
1 |
|
Cavan |
0 |
1 |
|
Clare |
9 |
6 |
|
Cork |
13 |
9 |
|
Donegal |
0 |
1 |
|
Dublin |
47 |
39 |
|
Galway |
6 |
10 |
|
Kerry |
0 |
1 |
|
Kildare |
7 |
0 |
|
Kilkenny |
4 |
2 |
|
Laois |
1 |
0 |
|
Leitrim |
1 |
0 |
|
Limerick |
9 |
9 |
|
Longford |
0 |
0 |
|
Louth |
8 |
3 |
|
Mayo |
0 |
1 |
|
Meath |
2 |
0 |
|
Monaghan |
0 |
1 |
|
Offaly |
1 |
0 |
|
Roscommon |
0 |
0 |
|
Sligo |
2 |
3 |
|
Tipperary |
4 |
4 |
|
Waterford |
6 |
3 |
|
Westmeath |
6 |
5 |
|
Wexford |
3 |
1 |
|
Wicklow |
1 |
1 |
|
Grand Total |
131 |
101 |
218. Deputy Jim O'Callaghan asked the Tánaiste and Minister for Enterprise, Trade and Employment the value of grants made to companies through the online retail scheme to date in 2020, by county in tabular form. [44466/20]
Amharc ar fhreagraThe purpose of the online Retail Scheme is to enable Irish-owned retailers to enhance their digital capability and to develop a more competitive online offer that will enable an increase in their customer base and build a more resilient business in the domestic and global marketplace, both online and offline.
The recent COVID-19 Online Retail Scheme is implemented by Enterprise Ireland on behalf of my Department in response to the COVID-19 crisis and the urgent need for retail companies to achieve a step change in online capability.
Please see below table presenting the number of grants approved, and their value, by county, for the COVID-19 Online Retail Scheme (Calls 1 and 2).
|
County |
Number of retailers approved |
Grant approved (€) |
|
Carlow |
6 |
219,758 |
|
Cavan |
<5 |
144,421 |
|
Clare |
10 |
324,132 |
|
Cork |
40 |
1,386,142 |
|
Donegal |
17 |
588,078 |
|
Dublin |
98 |
3,531,609 |
|
Galway |
26 |
969,015 |
|
Kerry |
19 |
720,824 |
|
Kildare |
<5 |
94,268 |
|
Kilkenny |
5 |
175,055 |
|
Laois |
<5 |
78,844 |
|
Leitrim |
<5 |
35,986 |
|
Limerick |
8 |
280,545 |
|
Longford |
<5 |
39,840 |
|
Louth |
9 |
328,912 |
|
Mayo |
8 |
284,338 |
|
Meath |
8 |
303,618 |
|
Monaghan |
7 |
271,375 |
|
Offaly |
<5 |
118,880 |
|
Roscommon |
<5 |
107,390 |
|
Sligo |
7 |
260,050 |
|
Tipperary |
11 |
410,073 |
|
Waterford |
7 |
263,391 |
|
Westmeath |
8 |
295,930 |
|
Wexford |
7 |
240,782 |
|
Wicklow |
12 |
422,182 |
|
Total |
313 |
11,895,440 |
219. Deputy Jim O'Callaghan asked the Tánaiste and Minister for Enterprise, Trade and Employment the additional funding made available to each local enterprise office in budget 2021. [44467/20]
Amharc ar fhreagraIt is a priority that the 31 Local Enterprise Offices as the first stop shop for business are sufficiently resourced to tackle the dual challenges of Brexit and COVID–19. The Local Enterprise Offices have access to an additional capital funding of €11m in Budget 2021 and this funding will be used to service an expected increase in demand for core supports and tailored training programmes for small and micro enterprises impacted by Brexit and COVID-19.
The Local Enterprise Offices have been at the forefront in delivering supports to business during the current crisis, delivering key measures such as Business Continuity Vouchers, Trading Online Vouchers (TOV), the Micro-Enterprise Assistance Fund, and MicroFinance Ireland loans. They have achieved this whilst also continuing to deliver on their core business supports such as Feasibility, Priming and Business Expansion grants and ongoing Mentoring and Training interventions which were moved to an online platform to accommodate COVID-19 Restrictions.
The additional resources are predicated on the critical need for the Local Enterprise Offices to have in place dedicated staff and supports to ensure that micro enterprises can sustain operations in the short to medium term and increase productivity, employment, revenues and exports in the medium to long term.
The additional resources will be targeted to ensure that we can support entrepreneurs enhance their capability to build value ensuring viability and growth and will also enable the Local Enterprise Offices to develop and implement further programmes aimed at green enterprise initiatives, digitisation and financial capability in small enterprises.
The Local Enterprise Offices’ Centre of Excellence is currently collating individual Local Enterprise Office budget requests prior to submitting them for approval to the Enterprise Ireland Board in early 2021. It is only after this approval has been given that the individual Local Enterprise Office budgets will be agreed.
220. Deputy Thomas Gould asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to protect the rights and redundancies of workers. [44544/20]
Amharc ar fhreagraIreland has a comprehensive body of employment legislation, in respect of which the Workplace Relations Commission (WRC) is mandated to secure compliance. Ireland’s employment rights legislation protects all employees who are legally employed on a contract of service basis.
In March 2020 the Government introduced an emergency amendment to the Redundancy Payments Act 1967 which effectively suspends an employee’s entitlement to claim redundancy from their employer following certain periods of lay-off or short-time work due to Covid-19 during the emergency period. The Government was concerned that the financial impact of significant redundancy claims at this time would have a serious impact on the potential for businesses, and the economy as a whole, to recover which in turn could result in significant insolvency and bankruptcy situations, with further permanent job losses.
The Government has extended the end date of the emergency period to 31st March 2021 as it continues to be important for employees to ensure that they have a continued link to their job and a pathway to return. The Pandemic Unemployment Payment will remain open until the end of March 2021 in order to support affected employees as will the Employment Wage Subsidy Scheme.
All other redundancy provisions remain unchanged and in force. If an employer is going to make an employee redundant, protections such as notice periods for redundancy and the payment of a redundancy lump-sum to the affected employee still apply and the existing range of employment rights legislation remains in place.
The Workplace Relations Commission’s Customer Service and Information Unit provides information on employment, equality and industrial relations rights and obligations, and can be contacted at Lo-call 1890 80 80 90 or 059-9178990 or via its website www.workplacerelations.ie. A complaint may be made using the Workplace Relations e-Complaint Form available on the WRC website.
221. Deputy Thomas Gould asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to address the issue of zero-hour contracts given the recent controversy surrounding contact tracing contracts. [44545/20]
Amharc ar fhreagraIreland’s comprehensive body of employment rights legislation protects all employees who are legally employed on an employer-employee basis. Employment rights legislation was strengthened by the commencement, on 4th March 2019, of the Employment (Miscellaneous Provisions) Act 2018.
The Act delivered on the Programme for Government commitment to address the challenges of the increased casualisation of work and to strengthen the regulation of precarious employment.
The Act of 2018 provides that:
- employers must give to employees their core terms of employment within five days of starting work;
- zero hours contracts are restricted to situations where the work is of a genuinely casual, emergency or short-term relief nature;
- there are minimum payments for people when they are called into work, but sent home without work;
- a 'band of hours' system has been introduced whereby an employee can request to be placed on a contract that better reflects the hours they have worked over a 12 month reference period;
Section 18 of the Organisation of Working Time Act 1997 (OWTA) was amended to prohibit zero hour contracts except in the following circumstances:
- Where the work is of a casual nature;
- Where the work is done in emergency circumstances; or
- Short-term relief work to cover routine absences for the employer.
There are strong anti-penalisation provisions, including recourse to the Workplace Relations Commission, for employees who invoke their rights under this legislation.
222. Deputy Kathleen Funchion asked the Tánaiste and Minister for Enterprise, Trade and Employment if has considered additional grant aid support for the wet pub sector in counties Carlow and Kilkenny given the sector has been under enforced closure for nine months and has had to remain closed during its busiest period of the year. [44548/20]
Amharc ar fhreagraI am keenly aware that publicans are making a massive sacrifice to protect their communities. I am committed to ensuring that the Government offers as much assistance as possible. A comprehensive range of measures is in place for firms of all sizes, including the wage subsidy scheme, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities and is available on my Department’s website.
The Employment Wage Support Scheme was announced as part of Budget 2021. Changes were also made to the Pandemic Unemployment Payment and the EWSS, increasing the top rate to €350 for those who were earning in excess of €400 per week.
My colleague, Minister Heather Humphreys T.D., Minister for Social Protection, recently announced the doubling of the PUP threshold to €960 over an eight-week period. This will help people to restart their businesses and allow self-employed people to take on intermittent jobs.
The Revenue Commissioners' COVID Restrictions Support Scheme offers a temporary sector-specific support to businesses forced to close or trade at significantly reduced levels by up to €5,000 per week. For those that unfortunately have had to stay closed, including wet pubs, three double weeks of the CRSS will be paid, as December is normally the busiest time of the year for these businesses.
Budget 2021 overall provides a significant package of tax and expenditure measures to build resilience and help vulnerable but viable businesses across all sectors. We are providing more and cheaper loan finance through MicroFinance Ireland, SBCI and the Credit Guarantee Scheme.
A six-month reduction in VAT rates down from 23% to 21%, and from 13.5% to 9% will benefit the hospitality sector. As well as a range of additional public capital investment measures to support the domestic economy.
I will continue to work with my colleagues to identify practical actions to help businesses.
223. Deputy Kathleen Funchion asked the Tánaiste and Minister for Enterprise, Trade and Employment if additional supports will be given to businesses in the restaurant and pub trade in counties Carlow and Kilkenny that have invested in outdoor seating and heaters in order to comply with the public health measures and ensure the utmost safety to patrons and customers. [44549/20]
Amharc ar fhreagraI am keenly aware that publicans are making a massive sacrifice to protect their communities. I am committed to ensuring that the Government offers as much assistance as possible. A comprehensive range of measures is in place for firms of all sizes, including the wage subsidy scheme, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities and is available on my Department’s website.
The Employment Wage Support Scheme was announced as part of Budget 2021. Changes were also made to the Pandemic Unemployment Payment and the EWSS, increasing the top rate to €350 for those who were earning in excess of €400 per week.
My colleague, Minister Heather Humphreys T.D., Minister for Social Protection, recently announced the doubling of the PUP threshold to €960 over an eight-week period. This will help people to restart their businesses and allow self-employed people to take on intermittent jobs.
The Revenue Commissioners' COVID Restrictions Support Scheme offers a temporary sector-specific support to businesses forced to close or trade at significantly reduced levels by up to €5,000 per week. For those that unfortunately have had to stay closed, including wet pubs, three double weeks of the CRSS will be paid, starting on the 21st of December, as December is normally the busiest time of the year for these businesses.
Budget 2021 overall provides a significant package of tax and expenditure measures to build resilience and help vulnerable but viable businesses across all sectors. We are providing more and cheaper loan finance through MicroFinance Ireland, SBCI and the Credit Guarantee Scheme.
A six-month reduction in VAT rates down from 23% to 21%, and from 13.5% to 9% will benefit the hospitality sector. As well as a range of additional public capital investment measures to support the domestic economy.
I will continue to work with my colleagues to identify practical actions to help businesses.
225. Deputy Patricia Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress made to date on implementing the recommendations of the Duffy-Cahill Report; his future plans in this area; and if he will make a statement on the matter. [44571/20]
Amharc ar fhreagraResponsibility for employment rights, redundancy and insolvency recently transferred to my Department from the Department of Social Protection, and the recommendations made in the Duffy-Cahill report are currently being revisited.
I have also asked the Company Law Review Group, as per the Programme for Government, to look again at aspects of Company Law in this area. Their Report will be finalised shortly.
Ministers of State Damien English and Robert Troy jointly met with employer and union representative bodies on the 4th of November to begin a discussion on the various legislative provisions that deal with redundancy and insolvency from both a company law and employment law perspective.
I am informed it was a positive and constructive meeting with the stakeholders, where the discussion focused on identifying whether there are gaps or weaknesses in either body of legislation.
I understand that consultations and discussions are ongoing.
226. Deputy Patricia Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will assist workers in an airline (details supplied) who are experiencing difficulties in engaging with the human resources department of the airline regarding payments and entitlements; and if he will make a statement on the matter. [44572/20]
Amharc ar fhreagraI understand how difficult it must be for Aer Lingus employees facing renegotiations, restructuring and possibly lay-offs. The aviation industry has been devastated by the pandemic and consequently workers in the industry have been severely affected and are facing great uncertainty.
In November, the Government agreed a revised €80 million funding package for Irish aviation. In recognition of the very difficult winter season being faced by the aviation sector the Government decided to provide an extra €48 million in supports for 2021, in addition to those announced in Budget 2021. This year and into 2021 the State will have provided in excess of €180m in supports for the aviation sector.
In terms of the workers' employment rights, the Terms of Employment (Information) Act 1994 provides that an employer must provide their employee with a written statement of the particulars of the employee’s terms of employment. It also provides that an employer must notify the employee of any changes in the particulars given in the statement. Where an employer wishes to change these terms and conditions, further written notification of the change should be provided within one month of the change. The Act provides a right of complaint to the Workplace Relations Commission (WRC) where an employer fails to comply with either of the above
The Payment of Wages Act 1991, amongst other things, protects employees from unlawful deductions from their wages by employers. Non-payment or underpayment of wages has also been deemed to be a deduction from wages for the purposes of the 1991 Act. Where an employee does not receive the wages agreed in their contract of employment or if certain deductions are made from his/her wages by his/her employer, it is open to an employee to make a complaint to an Adjudication Officer of the WRC under the Payment of Wages Act 1991.
Ireland has a very advanced industrial relations framework, which includes the services of the WRC and the Labour Court. For any worker who needs help or advice, the WRC helpline is available at Lo-call: 1890 80 80 90.
227. Deputy Patricia Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment the status of the sectoral employment orders; and if he will make a statement on the matter. [44573/20]
Amharc ar fhreagraYou will be aware that on the 23 June 2020, the High Court ruled that the Sectoral Employment Order (SEO) (Electrical Contracting Sector) Order (SI 251 of 2019), providing minimum rates of remuneration and other matters for workers in the electrical contracting sector was made ultra vires, that is, outside the powers of the parent legislation. The SEO therefore has no legal effect.
Furthermore, the High Court issued a Declaration that the legislative mechanism for SEOs is contrary to Article 15.2 of the Constitution. The judge found that Chapter 3 of Part 2 of the Industrial Relations (Amendment) Act 2015 essentially allows for the making of legislation outside the exclusive competency of the Houses of Oireachtas. Nevertheless, the High Court agreed to stay the declaration of unconstitutionality, pending an outcome of an appeal.
The Minister has been granted leave to appeal this decision in its entirety in the Supreme Court. The appeal will be heard in mid-February 2021.
This means that the SEO in the construction sector and another for the Mechanical Engineering sector currently stand.
228. Deputy Patricia Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment the supports he will provide to the wet pub sector which is closed during its busiest trading period; and if he will make a statement on the matter. [44574/20]
Amharc ar fhreagraI am keenly aware that publicans are making a massive sacrifice to protect their communities. I am committed to ensuring that the Government offers as much assistance as possible. A comprehensive range of measures is in place for firms of all sizes, including the wage subsidy scheme, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities and is available on my Department’s website.
The Employment Wage Support Scheme was announced as part of Budget 2021 and is extended to end of March 2021.
Changes were also made to the Pandemic Unemployment Payment and the EWSS, increasing the top rate to €350 for those who were earning in excess of €400 per week.
My colleague, Minister Heather Humphreys T.D., Minister for Social Protection, recently announced the doubling of the PUP threshold to €960 over an eight-week period. This will help people to restart their businesses and allow self-employed people to take on intermittent jobs.
The Revenue Commissioners COVID Restrictions Support Scheme offers a temporary sector-specific support to businesses forced to close or trade at significantly reduced levels. By up to €5,000 per week. For those that unfortunately have had to stay closed, including wet pubs, three double weeks of the CRSS will be paid, starting on the 21st of December, as December is normally the busiest time of the year for these businesses.
Budget 2021 overall provides a significant package of tax and expenditure measures to build resilience and help vulnerable but viable businesses across all sectors. We are providing more and cheaper loan finance through MicroFinance Ireland, SBCI and the Credit Guarantee Scheme.
A six-month reduction in VAT rates down from 23% to 21%, and from 13.5% to 9% will benefit the hospitality sector. As well as a range of additional public capital investment measures to support the domestic economy.
I will continue to work with my colleagues to identify practical actions to help businesses.
229. Deputy Patricia Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment if additional supports will be given to businesses in the restaurant and pub trade that have invested in outdoor seating and heaters in order to comply with the public health measures; and if he will make a statement on the matter. [44575/20]
Amharc ar fhreagraI am keenly aware that publicans are making a massive sacrifice to protect their communities. I am committed to ensuring that the Government offers as much assistance as possible. A comprehensive range of measures is in place for firms of all sizes, including the wage subsidy scheme, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities and is available on my Department’s website. Under the Restart Grant the Government has provided over €650m to help businesses with the costs of taking measures to ensure public safety and continue to trade, including to the restaurant and pub sectors.
The Employment Wage Support Scheme was announced as part of Budget 2021 and is extended to March 2021.
Changes were also made to the Pandemic Unemployment Payment and the EWSS, increasing the top rate to €350 for those who were earning in excess of €400 per week.
My colleague, Minister Heather Humphreys T.D., Minister for Social Protection, recently announced the doubling of the PUP threshold to €960 over an eight-week period. This will help people to restart their businesses and allow self-employed people to take on intermittent jobs.
The Revenue Commissioners' COVID Restrictions Support Scheme offers a temporary sector-specific support to businesses forced to close or trade at significantly reduced levels by up to €5,000 per week. For those that unfortunately have had to stay closed, including wet pubs, three double weeks of the CRSS will be paid, as December is normally the busiest time of the year for these businesses.
Budget 2021 overall provides a significant package of tax and expenditure measures to build resilience and help vulnerable but viable businesses across all sectors. We are providing more and cheaper loan finance through MicroFinance Ireland, SBCI and the Credit Guarantee Scheme.
A six-month reduction in VAT rates down from 23% to 21%, and from 13.5% to 9% will benefit the hospitality sector. As well as a range of additional public capital investment measures to support the domestic economy.
I will continue to work with my colleagues to identify practical actions to help businesses.
230. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he anticipates further reduction in unemployment levels as the curtailment of Covid-19 increases; and if he will make a statement on the matter. [44635/20]
Amharc ar fhreagraIn recent months, the level of employment in the economy has been closely correlated to the level of Public Health restrictions in place at a given time.
An analysis of the Pandemic Unemployment Payment (PUP) data, for example, shows a very clear relationship between restrictions on certain sectors of the economy and the numbers previously employed in those sectors who are now claiming the Pandemic Unemployment Payment.
The data from the most recent period of Level 5 restrictions presents that picture very clearly.
During the recent Level 5 restrictions three sectors - Accommodation and Food Services, Wholesale and Retail Trade and Other Sectors - accounted for 54% of the almost 333,000 PUP claimants as of November 3rd. These numbers represented an increase of 113% from when restrictions on indoor dining were first imposed.
We have seen further evidence of this correlation as the number of PUP claimants declined over the last two weeks as public health restrictions were eased. The level of PUP claimants have fallen from 352,000 prior to the easing of the current restrictions to 306,000 as at the 15th of December.
However, whilst numbers claiming the PUP have fallen with the easing of restrictions, not all sectors have demonstrated this relationship.
Some sectors such as Administrative and Support Services, Manufacturing and Construction have been largely unaffected by the easing and re-imposition of public health restrictions in the second half of the year. This indicates there is a worrying core of people who were employed in these sectors and whose jobs have not yet returned.
In addition the sectors that have gained most from the relaxing of current restrictions such as Hospitality and Retail, have not seen employment numbers recover to those seen last September.
Therefore, to see a continued increased in employment, it will require the continued suppression of Covid-19 to allow for public health restrictions to be eased further. Once we achieve that goal, I believe the numbers returning to employment will increase further.
231. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the degree to which his Department anticipates re-employment of persons with specific skills after Covid-19; and if he will make a statement on the matter. [44636/20]
Amharc ar fhreagraAs Minister for Enterprise, Trade and Employment, I am focused on leading our country through the economic crisis and helping businesses survive and supporting people to get back to work. In the Programme for Government, we committed to developing a National Economic Plan. This Plan will set out the pathway to the new economy of the future, the longer-term policies to get us there, while ensuring that our short-term responses are consistent with those longer-term goals.
It is clear that the pandemic has accelerated some deep structural shifts that were already in motion across the economy, particularly when it comes to the twin transitions- digital and green. We know that many of the jobs that exist today may not exist by the end of this decade, but we also know there will be new jobs and new occupations and new businesses.
The National Economic Plan, which will focus on economic, social and environmentally sustainable growth, will help prepare us for these changes and opportunities ahead. The Plan will be published in the new year.
In supporting re-employment after Covid-19, and in particular the adaptation of the Irish labour force to the future economy and world of work, the Plan will build upon the Government’s existing commitment to enhancing the lifelong learning agenda. The objective is to increase Ireland’s lifelong learning participation rate to 18% by 2025.
The Government is supporting participation in upskilling and reskilling through a range of education and training programmes, which are funded through the National Training Fund. These include Skillnet Ireland, the Higher Education Authority’s Springboard+ programme, apprenticeships and digital upskilling programmes such as SOLAS’s Skills to Advance and Skills to Compete. The National Training Fund is also supporting an annual €60 million investment in the Higher Education system, through the Human Capital Initiative.
As part of the July Jobs Stimulus, the Government also introduced a series of initiatives focussed on workforce upskilling and the skilling or reskilling of new workforce entrants and those made redundant by the pandemic. These include:
- 35,000 additional places in further and higher education
- A Retrofit Skills Training Initiative, to support future expansion of the National Retrofitting Programme; and
- An Apprenticeship Incentivisation Scheme, to support employers to take on new apprentices in 2020.
232. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps taken or planned to protect employment in the event of another surge of Covid-19; and if he will make a statement on the matter. [44637/20]
Amharc ar fhreagraI am acutely aware that some businesses, particularly those in close contact sectors, will remain impacted by further public health responses necessary to contain the virus until the Covid-19 vaccine can be rolled out.
I would remind the Deputy that much has already been done to assist enterprises through the crisis. The PUP aims to maintain incomes for those who become unemployed and the EWSS assists firms to cover wage costs. My Department also offers a range of business measures including low cost loans, vouchers and mentoring and Revenue has allowed many taxes due to be warehoused which is an extremely important liquidity support for businesses to help them manage the impact of the pandemic.
The COVID Restrictions Support Scheme has been introduced to help businesses to meet ongoing costs through periods of restriction and provide employment as restrictions are eased and activity resumes.
The recent Budget allocated significant additional resources to Departments to provide supports to different sectors. I would highlight the €395m provided to the Department of Transport and the €222m allocated to the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media.
These additional monies will go towards supporting businesses, including those not in receipt of the COVID-19 Restrictions Scheme, such as through the €30m for private bus operators, €55m for a focused business support scheme for strategic tourism businesses along with €50m to support the live entertainment sector.
The National Economic Plan is also being finalised. The Plan will set out the Government’s policy objectives to build a renewed economy for the future and restore employment levels in secure, high quality jobs. Education and skills will be central to the Plan with a strong focus on young people, on those whose jobs are impacted by structural changes to the economy and labour market and on empowering our people to prosper in a changing world.
233. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the degree to which he and his Department continue to establish new trading links globally to compensate for job losses related to Brexit; and if he will make a statement on the matter. [44638/20]
Amharc ar fhreagra236. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he and his Department have engaged in the promotion of Irish exports, new trade links and alternative markets to compensate for any loss of markets through Brexit; and if he will make a statement on the matter. [44641/20]
Amharc ar fhreagraI propose to take Questions Nos. 233 and 236 together.
My Department’s budget allocation for 2021 has been increased by €154 million or 15.9% on the 2020 allocation in addition to €100 million earmarked from the Recovery Fund for Brexit. This is a record allocation and will significantly bolster the capability of our enterprise and regulatory agencies to help businesses examine their Brexit exposure, seek advice, avail of customs training and make plans to protect their business.
Ireland's overall export performance over the last 10 years has been marked by year-on-year growth with total exports of goods and services reaching further record levels of €374 billion in 2019.
While the UK is and will remain a major market for Irish companies, expanding the Irish export footprint in markets beyond the UK is a key priority. In that context, Enterprise Ireland’s strategy is to support Irish exporters to be more innovative, competitive and market diversified.
The Irish exporting landscape has been strong and companies in Ireland have been succeeding in winning business worldwide for their products and services. Enterprise Ireland client companies achieved record levels of exports in 2019 of €25.6bn, against the backdrop of Brexit uncertainty. In 2019, the Eurozone region, which is a key focus of Enterprise Ireland’s diversification strategy, saw growth of 15% to €5.65bn, with Germany, France and the Netherlands each exceeding €1bn in exports. Exports to North America increased from €4.08bn in 2018 to €4.72bn, an increase of 16%. Our Enterprise agencies are now opening new offices around the world to support our companies in competing and thriving in global markets.
Ministerial-led Trade Missions have supported the Government's major drive towards market diversification. The majority of trade missions in recent years have taken place to the Eurozone, North America and Asia Pacific, which represented the strongest growth opportunities for Irish companies. These Trade Missions focused on promoting the innovative capabilities and competitive offerings of Irish companies to international buyers in sectors including internationally traded services, fintech, high-tech construction, engineering, ICT and lifesciences.
While it has not been possible to lead Trade Missions in 2020 due to COVID-19 travel restrictions, promotion of our companies abroad continued through the work of our State agencies, and, in particular, their offices located on the ground internationally.
My Department is currently in contact with Enterprise Ireland with a view to developing a Ministerial led Trade Mission Programme for 2021. At this stage, it is envisaged that such a programme will contain a mix of virtual and actual trade missions. At the same time, Enterprise Ireland will continue to support companies to sustain their existing export sales and to increasingly diversify their export markets. This will include strengthening sales and marketing capability of companies, with a particular focus on remote/virtual channels and providing targeted financial and advisory supports to companies adversely impacted upon by COVID-19 and Brexit to support their adaptation to the challenging market environment.
As well as the global efforts supported by our agencies, key to our success has been our commitment to trade liberalisation in order to open new markets for our indigenous sectors. The EU has successfully concluded a number of important trade agreements with trading partners and is in the process of negotiating or upgrading its agreements with many more. The existing suite of EU Free Trade Agreements and new trade deals will continue to be very important for Ireland. With a small domestic market, further expansion in other markets is essential to our continued economic growth and, in this regard, Ireland will continue to support the EU’s ambitious programme of negotiating new Free Trade Agreements, opening new markets for Irish companies and increasing export and investment opportunities.
234. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which Ireland’s international network of embassies can be utilised in the promotion of trade and Irish exports in the aftermath of Brexit; and if he will make a statement on the matter. [44639/20]
Amharc ar fhreagraIn accordance with the Global Ireland 2025 objective of Strengthening Team Ireland’s presence abroad and accelerating diversification of export markets, my Department has appointed four senior officials to our Embassies since 2019.
The Counsellor post in the Embassy in Washington is designed to reflect the increasing importance of Ireland’s strategic trade and investment interests and US developments in these policy domains in the current rapidly evolving US policy context. The need to build on our growing relationship with China, to gain a deeper understanding of the opportunities and challenges for exports and investment and to promote cooperation, led the Department to making its first deployment at Attaché level in the Embassy in Beijing. This expansion in 2020 builds on the appointment in 2019 of senior officials to Berlin and London and of the work of the larger team from the Department based in Brussels on trade and competitiveness, and in Geneva, dealing with the World Trade Organisation (WTO), International Labour Organisation (ILO) and the World Intellectual Property Organisation.
Under Global Ireland 2025 Enterprise Ireland is charged with accelerating the diversification of export markets by its clients, with the ambition to:
- double the total value of EI client exports outside the UK from the 2015 baseline by 2025;
- double Eurozone exports by 2025; and
- increase the diversification of client exports into new markets, with at least 70% of exports going beyond the UK by 2025.
Significant progress is being made in achieving these targets. Enterprise Ireland client companies achieved record levels of exports in 2019 of €25.6bn, against the backdrop of Brexit uncertainty. In 2019, the Eurozone region, which is a key focus of Enterprise Ireland’s diversification strategy, saw growth of 15% to €5.65bn, with Germany, France and the Netherlands each exceeding €1bn in exports. Exports to North America increased from €4.08bn in 2018 to €4.72bn, an increase of 16%.
To support the achievement of export diversification targets under Global Ireland 2025, Enterprise Ireland has strengthened its overseas presence by opening eight new offices in 2019, giving the agency a global reach through forty overseas office presences. The eight offices are: Munich, Lyon, Manchester, Copenhagen, Montreal, Seattle, Melbourne and Ho Chi Minh City.
IDA Ireland’s objective under Global Ireland 2025 is to accelerate the diversification of FDI source markets, indicated by doubling the growth in IDA-supported project investments from non-US markets in the period 2018-2024. IDA Ireland has made significant progress in achieving this objective. The share of investments from outside North America increased from 30% to 37% over the period 2014 to 2019. At end 2019, there were over 1,600 IDA Ireland client companies employing 245,000 people in Ireland, with 60% of these jobs outside Dublin city.
The agency actively reviews its overseas presence to determine which markets could prove the most valuable sources of FDI in the medium term. Global economic and geopolitical developments mean that the FDI landscape is changing in ways that require IDA to deepen and diversify its overseas presence. Doing so ensures appropriate and effective coverage of both industry sectors and geographies, in order that Ireland continues to capture a significant share of global investment flows which in turn, assists in the achievement of a variety of public policy goals in Ireland.
In accordance with Global Ireland 2025, IDA Ireland has expanded its presence in the United States in California, New York and Chicago; opened an office in Toronto; and, expanded its presence in Paris, Frankfurt and London. IDA is currently assessing the opportunities for opening new offices in Brazil, Russia, Turkey, Middle East, and South Africa.
My Department will continue to work closely with the Department of Foreign Affairs in utilising the Embassy network to support attainment of our trade and investment goals. We will remain particularly focused in 2021 on assisting Irish business in the context of the UK’s exit from the EU and in the post-COVID - 19 trading environment.
237. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he remains satisfied regarding the continued availability of Covid-related supports in the services and manufacturing sectors particularly in the event of any further surge in the virus; and if he will make a statement on the matter. [44642/20]
Amharc ar fhreagraWe know the significant effects on business of the current Level 3 restrictions. Budget 2021 provides a significant package of tax and expenditure measures to build the resilience of the economy and to help vulnerable but viable businesses across all sectors. It is in addition to the July Stimulus measures, including the Employment Wage Subsidy Scheme, Restart Grant Plus, cash for businesses, low cost loans and commercial rates waivers.
We have changed the PUP and the EWSS by increasing the top rate to €350 for those who were earning in excess of €400 per week.
My colleague, Minister Heather Humphreys T.D., Minister for Social Protection, recently announced the doubling of the PUP threshold to €960 over an eight-week period. This will assist those trying to restart their businesses and allows self-employed people to take on intermittent jobs without losing their PUP entitlement.
Also launched in Budget 2021, the Revenue Covid Restrictions Support Scheme (CRSS), offers a targeted, timely and temporary sector-specific support to businesses forced to close or trade at significantly reduced levels due to COVID of up to €5,000 per week. Additional seasonal support will be provided to qualifying businesses remaining closed due to COVID public health restrictions.
A six-month reduction in VAT was introduced. Reduced from 23% to 21%, and 13.5% down to 9% respectively. This will benefit the hospitality, entertainment and hairdressing sectors, together with a range of additional public capital investment measures to support the domestic economy.
We are continuing to see strong take-up of the range of supports available for businesses, in particular of the cheaper loan finance through MicroFinance Ireland, SBCI and the new €2bn Credit Guarantee Scheme.
There has also been a surge in applications for Enterprise Ireland’s Sustaining Enterprise Fund, the non-repayable grant element of that Scheme is proving particularly attractive to company’s seeking urgent working capital.
The Local Enterprise Offices’ Online Trading Voucher Scheme, which offers skills training, mentoring and financial support of up to €2,500 to help small and micro-businesses to develop their ecommerce capability, has also proven to be very popular. As of 9th December this Scheme has seen 15,180 applications and 12,183 approvals this year to a value of €28.8m. The LEOs also offer mentoring and training programmes. There have been 10,582 participants in the Mentoring Programme and 51,398 participants in the COVID training programmes.
We are investing in a range of working capital and longer-term funding options for SMEs, with strong demand for medium- and long-term finance through Credit Guarantee Scheme and Future Growth Loan Schemes, at interest rates of below 4% p.a.
The level of support now being provided to businesses across all sectors is unprecedented and ahead of that available in other jurisdictions. Our focus is to ensure the safety of our people and guide our economy towards recovery by ensuring that we had an appropriate mix of supports in place to support workers and businesses in moving between the levels of the Resilience and Recovery 2020-2021: Plan for Living with COVID-19.
238. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which technology, education and the availability of suitable business and housing accommodation continue to be an issue in regard to the creation of further employment nationally; and if he will make a statement on the matter. [44643/20]
Amharc ar fhreagraAccess to high quality broadband, a well-educated labour force and a well-functioning housing market were recently highlighted by the National Competitiveness and Productivity Council in its Competitiveness Challenge 2020 Report. The Council is an independent body that operates under the aegis of my Department.
These factors were seen by the Council as critical elements for a successful economic recovery in the wake of COVID-19 and a related improvement in employment levels.
The Government recognises the importance and value of the Council’s work in assessing Ireland’s competitiveness and is committed to addressing the Council’s recommendations. This can be seen in the Government's response to the Challenge Report which was published at the end of November.
In its response the Government outlined the steps it is taking to deal with the issues outlined in the Deputy's question.
In the area of technology, the National Broadband Plan (NBP) is a critical infrastructural project which will ensure that every citizen and business, no matter where they are based, can progress together. As part of the plan over 300 Broadband Connection Points (BCPs) are currently being deployed. Many of these BCPs will provide remote working capacity in rural areas
The COVID-19 pandemic has had an extraordinary impact on the labour market. The Government’s immediate priority has been to prevent unemployment becoming entrenched and efforts are ongoing to reskill workers from sectors that are not likely to recover quickly.
The July Stimulus and Budget 2021 provided additional funding for upskilling initiatives and life-long learning programmes that will help workers prepare for job opportunities in a more digital and sustainable future economy.
SOLAS has been tasked with the development of a new 10-year strategy for adult literacy, numeracy and digital literacy. The strategy will take a whole-of government approach and provide a framework to support individuals to improve their literacy, numeracy and digital literacy.
In the area of Housing, the Programme for Government has committed to prioritising the increased supply of public and social housing through local authority schemes and Approved Housing Bodies.
Affordable home ownership will be supported by a state backed Affordable Purchase Shared Equity Scheme, expansion of the Help to Buy Scheme, and broadening the Rebuilding Ireland Home Loan programme.
These measures along with others the Government is implementing as part of the Programme for Government will help ensure the continued competitiveness of the Irish economy, that in turn will help sustain and grow employment over the coming years.
