Written Answers Nos. 1-7
1. Deputy Ged Nash asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of data centres that are currently operational and the number that are under consideration including pre-planning stage by county; the average number of long-term jobs a data centre creates; the job numbers in data centres by county; and if he will make a statement on the matter. [12359/21]
Amharc ar fhreagraThe Department of Enterprise, Trade and Employment does not collect or store the type of detailed information requested on data centre location, or their stage in the planning process.
There may be some scope for different definitions of what could be considered a data centre or multiple data 'halls' on particular sites might be counted. Nonetheless, it is clear that the vast majority of large 'hyperscale' or 'co-location'-type data centre developments are located in the greater Dublin area, with a small number operational or planned across Cork, Limerick, Meath and elsewhere.
While not all data centres are operated by multi-national firms, IDA Ireland has further advised me that it does not maintain a register of data centre locations. IDA Ireland point out that, when dealing with potential data centre investments, it promotes regional locations for those investments in line with the ‘Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy’. Recent examples of large data centre developments outside of Dublin include an Amazon project in Drogheda and Facebook’s project in Meath.
An analysis of the data centre sector in Ireland, including existing and planned data centres, is produced quarterly by industry groups BitPower and 'Host in Ireland'. The Deputy may find this a useful resource: https://bitpower.ie/index.php/dashboard
In terms of full-time permanent employment in the data centres themselves, it is estimated that data centres require between 30 and 50 well paid and secure direct jobs each in areas such as management, IT and systems engineers, mechanical and electrical maintenance and repair management. However around 20,000 direct jobs in the Irish economy are supported by those who operate large data centre infrastructure here. The wider technology sector in Ireland employs in excess of 150,000 people.
Data centres are an increasingly important part of the digital and communications sectors and are core infrastructure in the remote working and digital services economy. The transition to a digital economy is well underway. It is impacting all sectors of the economy, and Ireland is well positioned as a digital gateway to Europe. Data centres and the services they provide act as a 'hook' for further investment and job creation.
2. Deputy Ged Nash asked the Tánaiste and Minister for Enterprise, Trade and Employment his views on whether the development of data centres would be better served by State involvement to ensure they align with economic, social and environmental goals and provide a return to the Exchequer other than development levels and commercial rates; and if he will make a statement on the matter. [12362/21]
Amharc ar fhreagraIreland has one of Europe’s largest clusters of data centres as a stable energy grid, temperate climate and significant skills base makes Ireland an attractive country for this form of investment. Data centres are an increasingly important part of the digital and communications sectors and are core infrastructure in the remote working and digital services economy. The 2018 Government Statement on Data Centres sets out the strategic importance of data centres to Ireland’s overarching enterprise policy and their role in attracting employment and investment to Ireland within the technology sector while it also sets out the challenges posed by the increased energy demand and steps to mitigate this.
The State's planning system, at local level or through An Bord Pleanala, is the mechanism used to ensure that all industrial developments are consistent with our national policy as set out in the National Planning Framework and other strategic policy documents. The planning process incorporates public consultation processes and, where appropriate, environmental impact assessment, to ensure that development is consistent with the relevant regulations and national policy more broadly. Data centres in particular require detail engagement with the electricity grid connection process, managed by Eirgrid, to ensure they are consistent with our energy systems capacity.
Data centres have an economic return in that they are an increasingly important part of the digital and communications sectors and are core infrastructure in the remote working and digital services economy. They also are significant capital intensive investments that act as a hook for further investment and job creation. Around 20,000 direct jobs in the Irish economy are supported by those who operate large data centre infrastructure here. The wider technology sector in Ireland employs in excess of 150,000 people.
3. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Enterprise, Trade and Employment if he has met with representatives of the wedding industry to discuss the impact of Covid-19 restrictions on weddings and the supports needed for businesses involved in the sector; and if not, when he plans to do so. [12247/21]
Amharc ar fhreagraI understand the enormous difficulties the wedding industry is facing as the pandemic rolls on. I fully appreciate that it is one of the industries worst affected and for the longest and know that as we enter a second year of restrictions many in the sector must be fearing for their future.
The financial support the Government is providing businesses and workers affected by the pandemic is unprecedented. Almost a million people of working age are now in receipt of weekly payments including the Pandemic Unemployment Payment, Employment Wage Subsidy and Jobseekers Benefit or Allowance. Support for business includes the weekly CRSS payment for businesses forced to close their doors to the public, reduced VAT rates, a commercial rates holiday, the Sustaining Enterprise Fund, the Tourism Business Continuity Scheme as well as low-cost loans.
The three main schemes, the CRSS, EWSS and PUP compare favourably with any other packages on offer in other countries. The new Business Aid Scheme I announced recently will provide funding of up to €8,000 for those businesses that are in receipt of a rates bill from their local authority. While the grant is modest, it will help smaller businesses in particular to cover these costs – rent, insurance, utilities, security.
To date, I have not met with representatives from the wedding industry sector but I have met with representatives of the hospitality sector through the Tourism and Hospitality Forum.
The Government is very much open to hearing proposals from the wedding sector as to how we can help further. Government schemes to support businesses are generally designed to help meet fixed costs that cannot be avoided, and it is not possible to provide compensation for loss of personal income or profits.
My colleagues, Minister Catherine Martin T.D., Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht and Minister Charlie McConalogue, Minister for Agriculture, Food and the Marine may be able to provide more specific details on the events and hospitality industry and details on supports for the food sector respectively.
4. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to provide specific supports for the wedding industry; and if he will make a statement on the matter. [12249/21]
Amharc ar fhreagraI understand the enormous difficulties the wedding industry is facing as the pandemic rolls on. I fully appreciate that it is one of the industries worst affected and for the longest and know that as we enter a second year of restrictions many in the sector must be fearing for their future. I do hope that once the pandemic is over the wedding sector will have a number of good years with so many weddings postponed. In the meantime, the Government wants to make sure as many businesses as possible survive to see that day.
The financial support the Government is providing businesses and workers affected by the pandemic is unprecedented. Almost a million people of working age are now in receipt of weekly payments including the Pandemic Unemployment Payment (PUP), Employment Wage Subsidy (EWSS) and Jobseekers Benefit or Allowance. Support for business includes the weekly CRSS payment for businesses forced to close their doors to the public, reduced VAT rates, a commercial rates holiday, the Sustaining Enterprise Fund, the Tourism Business Continuity Scheme as well as low cost loans.
Budget 2021 provided 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. Details of the wide range of supports available are on my Department’s website.
These measures are in addition to the €7 billion July Stimulus of enterprise measures, which includes the Wage Subsidy Scheme extended through 2021, the Pandemic Unemployment Payment, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst self-employed. We are providing for an extension of the tax warehousing scheme to include repayments of Temporary Wage Subsidy Scheme funds owed by employers and preliminary tax obligations for adversely affected businesses.
As announced in the July Stimulus, the Enterprise Support Grant was extended to assist eligible self-employed, including sole traders, who exit the PUP or jobseekers schemes, to re-start their business. Further information is available at www.gov.ie.
On the 9th of December, following engagement with the Arts sector and other self-employed sectors my colleague Minister Heather Humphreys T.D., Minister for Social Protection, announced the doubling of the PUP threshold from the current €480 over four weeks to €960 over an eight-week period effective immediately. This measure is to assist those who are trying to restart their businesses and will allow self-employed people to take on intermittent jobs without losing their entitlement to the PUP.
The Government also announced the provision of support of €50m for the live entertainment sector in Budget 2021. This will include measures for the commercial entertainment sector and will support live entertainment across the country. The 2021 supports for the live entertainment sector will be the subject of further consultation with stakeholders. It will also be informed by the pilot live performance scheme in 2020 which is being rolled out now.
The three main schemes, the CRSS, EWSS and PUP compare favourably with any other packages on offer in other countries. The new Business Aid Scheme I announced last month will provide funding of up to €8,000 for those businesses that are in receipt of a rates bill from their local authority. While the grant is modest, it will help smaller businesses in particular to cover these costs – rent, insurance, utilities, security.
The Government is very much open to proposals from the wedding sector as to how we can help further. However, Government schemes to support businesses are generally designed to help meet fixed costs that cannot be avoided and it is not possible to provide compensation for loss of personal income or profits.
My colleagues, Minister Catherine Martin T.D., Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht and Minister Charlie McConalogue, Minister for Agriculture, Food and the Marine may be able to provide more specific details on the events and hospitality industry and details on supports for the food sector respectively.
5. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Enterprise, Trade and Employment the process for non-EU nationals who urgently need a passport renewal to renew their employment permit but cannot do so due to embassy closures during level 5 restrictions; the person or body persons in this situation can contact; the steps being taken to address this; if he will ease rules surrounding renewal of employment permits during the current restrictions; and if he will make a statement on the matter. [12266/21]
Amharc ar fhreagraIn March 2020, the Employment Permits Section of my Department implemented a COVID-19 contingency plan to ensure that the employment permit regime could continue to operate throughout the crisis. Since 30th March, the employment permit system has been operating fully remotely and online.
Operational practices have been adjusted to replace the paper-based elements of the service to allow for a fully online process involving electronic/scanned documents and all decisions/outcomes now issue via e-mail rather than by post. Agreement was reached with the Immigration Service Delivery in the Department of Justice and Equality on arrangements to introduce, on a temporary basis, a type of “e-employment permit” and a similar soft copy process to transition to permanent residence permission.
The contingency plan also states that my Department will be flexible in dealing with employment permit issues that arise for both employers and employees as a result of the pandemic and will consider such issues, including individuals who are unable to renew their passports as a result of the pandemic, on a case by case basis when brought to my Department's attention. All such queries should be emailed to employmentpermits@enterprise.gov.ie
Finally, full details in relation to the contingency arrangements introduced by the Employment Permits Section in response to the pandemic can be accessed on my Department's website through the following link: https://dbei.gov.ie/en/Publications/COVID-19-Employment-Permits-System-Contingency-Arrangements.html
6. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of applications made to banks under the €2 billion Covid-19 credit guarantee scheme; the number refused; and if he will make a statement on the matter. [12277/21]
Amharc ar fhreagraThe COVID-19 Credit Guarantee Scheme is the largest loan guarantee scheme in the history of the State. The Scheme provides €2 billion in lending, for terms up to five-and-a-half years and offers a range of lending products between €10,000 and €1 million. It is available to SMEs and small mid-caps (business with less than 500 employees), including primary producers (businesses engaged in the farming and seafood sectors).
The Scheme is currently available through commercial banks, a number of non-bank lenders and a number of credit unions. Since January, 19 Credit Unions and 3 non-bank lenders have successfully joined the scheme as finance providers and more finance providers are expected to join in the coming weeks. This long-term policy goal of diversification will add competition in the market and ensure a wide range of loan products being available.
A total of 4,702 loan applications for a value of €314 million have been submitted up to 18 February to all participating lenders with 3,106 loans drawn for a value of €177 million. A total of 4,556 loan applications with a value of €298 million have been submitted to the three participating commercial banks (Bank of Ireland, AIB and Ulster Bank) with 3,091 loans drawn for a value of €175 million. Loans take a number of working days to move from application status to drawdown or refused status. I would encourage businesses to use this scheme to obtain loans at interest rates below market rates.
Where an applicant has had a loan application refused, they may wish to appeal the decision to the Credit Review Office (CRO). The CRO helps SMEs who have had an application for credit of up to €3 million declined or reduced by the main banks. This is a strictly confidential process between the business, the Credit Review and the bank.
While the State provides a guarantee on loans issued in case of default, all credit assessments in relation to loan applications under this scheme are carried out by participating lenders. The Department plays no role in the application or decision-making process in relation to loans under Government schemes, which, is fully delegated to the participating lenders.
I want to assure the Deputy that I and my officials are monitoring the Scheme and its effectiveness. Data is being published on a monthly basis on my Department’s website regarding the level of lending through the scheme, the sectoral breakdown and the uptake on a county basis.
7. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment the funding and grants available for companies developing disruptive technologies. [12372/21]
Amharc ar fhreagraThe Government provides a range of programmes, principally through my Department and its agencies, to support companies in the area of technological development. A number of EU programmes also exist to support companies and researchers to develop new products, processes and services. These programmes are documented by Knowledge Transfer Ireland and on the websites of IDA Ireland and Enterprise Ireland. In terms of "disruptive technologies", the main government funding is through the Disruptive Technologies Innovation Fund (DTIF).
The DTIF is a €500 million fund established as part of the National Development Plan under Project Ireland 2040. It is administered by Enterprise Ireland on behalf of my Department.
The Fund is available for collaborative projects seeking investment in the development and deployment of disruptive innovative technologies and applications, on a commercial basis, targeted at tackling national and global challenges. It is aimed at driving collaboration on industrial research projects between our world class research base and industry, as well as facilitating enterprises to compete directly for funding in support of the development and adoption of these technologies and seeding a new wave of start-ups.
A particular focus of the Fund is to encourage research, development and innovation collaboration between enterprises located in Ireland, working with one or more Research Performing Organisations (RPOs), including third-level institutions such as universities and Institutes of Technology / Technological Universities.
Under Calls 2 and 3 of the DTIF, collaborations were required to have at least three project partners, one of which must be a Small and Medium-sized Enterprise (SME) and at least one other enterprise – either an SME or a large enterprise. Large-scale projects seeking DTIF funding of at least €1.5 million were eligible.
Funding allocations have been announced under two Calls to date, with a total of €140m allocated to 43 projects. Applications received under the third Call, which was launched in September 2020, are currently being evaluated by panels of international expert evaluators, with awards expected to be made by the end of March 2021.
