Tuesday, 2 Nov 2021

Written Answers Nos. 97-114

Unfair Dismissals

Ceisteanna (97)

Mick Barry

Ceist:

97. Deputy Mick Barry asked the Tánaiste and Minister for Enterprise, Trade and Employment the way a person (details supplied) who made a successful complaint for unfair dismissal against their former employer at the Employment Appeals Tribunal in 2012 and obtained an enforcement order for a greater sum from the Circuit Court on 20 March 2015 but never subsequently received their due compensation due to the failure of the sheriff to execute the order against the former employer who ceased trading with that company can have their rights vindicated; if there is no remedy at this point in time to extract the sum from their former employer, if they can obtain a statutory redundancy from the social insurance fund for their years' service with the former employer; and if he will make a statement on the matter. [52760/21]

Freagraí scríofa

Minister of State at the Department of Enterprise, Trade and Employment

The Redundancy Payments Act 1967 outlines the circumstances whereby a redundancy situation occurs. It is a matter for the employer in the first instance to determine whether or not there is a redundancy situation. Disputes in this regard can be referred to the Workplace Relations Commission.

An employee who is dismissed for any reason other than redundancy is not entitled to a statutory redundancy payment.

The purpose of the insolvency payments scheme is to protect certain outstanding pay-related entitlements due to employees in the event of the insolvency of their employer. The scheme operates under the Protection of Employees (Employers’ Insolvency) Act 1984, which derives from EU Directive 2008/94.

The employer representative, such as the official liquidator or receiver, may apply to the scheme on the employee's behalf for certain outstanding wage related entitlements, including statutory employment rights awards.

The 1984 Act does not provide for situations where an employer ceases to trade without engaging in any formal wind-up process. In such cases, referred to as ‘informal insolvency’, former employees may have monies owed to them without having a legal mechanism to claim same from the Social Insurance Fund. While I do not know the full details of the employer in this case, it would appear that this is the situation here.

Responsibility for this policy area has recently transferred to the Department of Enterprise, Trade & Employment from the Department of Social Protection and officials in my Department are currently working with legal advisors to identify potential solutions for ex-employees who find themselves in such a situation. This work includes how to provide a mechanism that would allow employees in informal insolvency situations access the insolvency payments scheme. There are a number of complex issues to be addressed as part of this process and the work is being done as a priority.

Covid-19 Pandemic

Ceisteanna (98)

Bernard Durkan

Ceist:

98. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which staff remain available to return to their respective employment post-Covid-19; if any specific challenges have arisen in this regard; and if he will make a statement on the matter. [52829/21]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

We are taking a very cautious, phased approach in relation to the return to the office. The recently published Work Safely Protocol helps make sure employers and their staff have the guidance to protect against the virus and keep places of work safe.

The past 18 months have been difficult for most businesses, and some sectors have been more severely impacted by public health restrictions and for a more prolonged period. Throughout the pandemic my Department and its enterprise agencies have engaged with and supported businesses within their remit, and in recent months there has been the start of a recovery in employment across the economy. According to the latest Labour Force Survey, published by the Central Statistics Office, on a seasonally adjusted basis employment increased by 212,200 in the year to the second quarter of 2021, with employment standing at 2.35 million.

102,600 of this increase was accounted for in the second quarter of 2021 alone. This came at a time when public health restrictions had started to ease and Ireland’s vaccination programme was being rolled out. This highlights the importance of the Government’s efforts to help workers and businesses throughout the past 18 months, especially those wage supports which helped businesses maintain a link to their staff.

In its ongoing engagement with enterprise, my Department and its enterprise agencies have nevertheless been made aware of labour shortages in certain sectors. My Department has worked to signpost businesses towards the training and labour market activation programmes and supports, available through the Department of Further and Higher Education, Research, Innovation and Science, its agencies, and the Department of Social Protection, in order to address their staffing needs. In particular, these interventions are targeting the 93,000 workers who remain on the Pandemic Unemployment Payment, as of 19th October.

Some of these staffing shortfalls are due to pre-existing structural shifts in the economy, which have been accelerated by the impact of the pandemic. The twin decarbonisation and digital transitions, and their associated behavioural changes, are significantly altering the economy and will continue to do so in the coming years, leading to permanent changes in our labour market and business models. As we recover from the pandemic not all previous jobs will return- but embracing these transitions will also open up substantial new opportunities for businesses and jobs, as well as potential skills mismatches as these opportunities emerge.

The Government’s Economic Recovery Plan, published earlier this year, commits to supporting the transition of Ireland’s economy and workforce to the new Green and Digital economies. It has an overarching objective of having 2.5 million at work by 2024, exceeding pre-pandemic levels. It aims to realise this goal through ongoing support for people and businesses in making a full return to work. The Plan commits to further strengthening Ireland’s skills framework to ensure skills mismatches are minimised, and people are supported in securing and remaining in sustainable and quality employment, in areas of identified skills needs for business.

As the Pandemic Unemployment Payment is phased out, helping people back to work and reducing the risk of labour market scarring and entrenched long term unemployment is also a priority. This will be achieved through a combination of significant upskilling and reskilling opportunities and increased labour market activation interventions through Pathways to Work 2021-2025. A jobs led recovery will also be supported through creating the right environment for employment creation, through measures to boost the resilience, agility, competitiveness and innovation of enterprises across the economy.

This will also be supported through ensuring a balanced and inclusive recovery, through strategic investment in infrastructure and reforms that enhance our long-term capacity for growth, balanced regional development and by improving living standards. In moving towards the goal of having 2.5 million people in work by 2024, the focus will be on recovering differently, with more productive, innovative, resilient and importantly more secure and valued employment across the economy.

Covid-19 Pandemic

Ceisteanna (99)

Bernard Durkan

Ceist:

99. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he remains satisfied that job opportunities are being restored as soon as possible to pre-pandemic levels; the actions already in hand in this regard or contemplated; and if he will make a statement on the matter. [52830/21]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

The Labour Force Survey, published by the Central Statistics Office on a quarterly basis, is the official source of labour market statistics for Ireland. It includes the official rates of employment which are based on International Labour Organisation (ILO) standardised concepts and definitions.

The latest edition of the Labour Force Survey - issued on 24th September of this year - covered employment levels on an ILO basis for the second quarter of 2021.

On an ILO basis, the survey reported that some 2.352 million people were in employment on a seasonally adjusted basis during the second quarter of 2021. Employment increased by 212,200 over the preceding twelve months, and by 102,600, or 4.6 percent, in the second quarter of 2021 alone.

This came at a time when public health restrictions had started to ease and Ireland’s vaccination programme was rolled out. This highlights the importance of the Government’s efforts to help workers and businesses throughout the past 18 months, especially the wage supports which helped businesses maintain the link to their staff.

There is reason to believe that this strong employment growth has continued in the third quarter of this year, as public health restrictions have eased further. According to the latest monthly Covid-adjusted unemployment rate, for September 2021, unemployment stood at 10 percent, down from 12.4 percent in August. This still high, but it is hoped that the further reopening of the economy will help to reduce this further. The standard measure of monthly unemployment stood at 6.4 percent in September.

The Government’s Economic Recovery Plan, which was launched in June, aims to build upon the recent momentum in job creation. The Plan has an overarching ambition to have 2.5 million people in work by 2024, exceeding pre-pandemic levels.

It aims to deliver on this objective through its four pillars: ensuring are public finances are sustainable for a lasting recovery; helping people back into work, by extending labour market supports and through intense activation and reskilling and upskilling opportunities, driven by Pathways to Work 2021-2025 ; rebuilding sustainable enterprises through targeted supports and policies to make enterprises more resilient and productive; and ensuring a balanced and inclusive recovery, through strategic investment in infrastructure and reforms that enhance our long-term capacity for growth, balanced regional development and by improving living standards.

Many of the jobs to be created in the coming years will be in new areas of opportunity, rooted in a greener and more digital economy. In moving towards the goal of having 2.5 million people in work by 2024, the focus will be on recovering differently, with more productive, innovative, resilient and importantly more secure and valued jobs.

Enterprise Support Services

Ceisteanna (100)

Bernard Durkan

Ceist:

100. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which new enterprises continue to be funded in various forms in order to address the negative impact of Covid-19 and Brexit; and if he will make a statement on the matter. [52831/21]

Freagraí scríofa

Minister of State at the Department of Enterprise, Trade and Employment

The Budget allocation provided to Enterprise Ireland and the Local Enterprise Offices in Budget 2022, will be used to service existing programmes, as well as provide the scope to explore the potential for new schemes to address the ongoing impact of COVID-19 and Brexit.

The Local Enterprise Offices can offer direct grant aid to microenterprises (10 employees or fewer) in the manufacturing and internationally traded services sectors which, over time, have the potential to develop into strong export entities. Subject to certain eligibility criteria, the Local Enterprise Office can provide financial assistance within four main categories, Feasibility grants, Priming grants, Business Development grants and Technical Assistance (TAME) grants.

The Local Enterprise Offices also provide a wide range of high-quality business training and capability supports tailored to meet specific business requirements of anyone exploring self-employment as an option or for those who are currently operating a business.

The Start Your Own Business programme guides clients through the various aspects of business and business planning. The objective is to assist clients in critically assessing their business idea, its viability and to decide if they should proceed or take a step back. This programme covers a wide variety of topics designed to equip entrepreneurs to tackle the obstacles and opportunities presented in the current business environment.

Prepare your business for customs are one-day interactive workshops that are open to all businesses and run regionally by Local Enterprise Offices. These provide businesses with a better understanding of the potential impacts, formalities and procedures to be adopted when trading with a country which is outside the Single Market and Custom Unions (a "Third Country").

The Customs Insights course from Enterprise Ireland helps businesses understand the key customs concepts, documentation and processes required to move goods from, to and through the UK. The online course, which is open to companies of all sizes, will provide participants with a firm understanding of the customs implications for their business and the options from Revenue to make this process more efficient.

Enterprise Policy

Ceisteanna (101)

Bernard Durkan

Ceist:

101. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which incentives continue to be made available to encourage the manufacturing and services sectors given the impact of both Brexit and Covid-19; if new measures are planned or currently in hand; and if he will make a statement on the matter. [52832/21]

Freagraí scríofa

Minister of State at the Department of Enterprise, Trade and Employment

Budget 2022 recognises that many businesses are in need of assistance as we continue to reopen the economy and society in general.

My Department, working through our agency Enterprise Ireland and with the Local Enterprise Offices, is working with manufacturing and internationally traded services companies to help them stabilise, reset and recover. To date, for example, €238 million has been approved under Enterprise Ireland’s Covid-19 supports. The Covid-19 pandemic has also seen the agency work beyond its client base. In 2020, Enterprise Ireland onboarded over 1,200 new companies onto its client management system, a near 70% increase on 2019.

Overall, my Departments core budget has increased by €103 million or 13.2% on Budget 2021. This is a record core allocation for the Department and will significantly bolster the ability of the Department, working with its Offices and Agencies, to help businesses to rebuild and grow after the pandemic and the impacts of Brexit.

Government are extending the EWSS until April 2022 at a cost of up to €1.4 billion and a targeted rates waiver to help businesses get back on their feet and have ensured that low-cost Government backed loans will remain available.

A number of other significant measures have been introduced in Budget 2022 in order to future-proof our SMEs on their growth journey such as the expansion of the Employment and Investment Incentive Scheme (EIIS), the extension of the Small Start-Up Companies Relief, the new Digital Games Tax Credit, a new €90 million Innovation Equity Fund as well as increased resources for the Local Enterprise Offices, IDA and Enterprise Ireland. We are also providing €20 million to help Irish enterprise decarbonise and go digital and there will be a new call for applications for the Disruptive Technologies Innovation Fund.

In order to increase the capacity of our enterprises to deal with cross-border issues, an additional €1.2 million has been provided for Intertrade Ireland to respond to the increased complexity of cross-border trade post Brexit, which is a 15% increase in its core capital allocation. Funding will also be provided for a new service which will ameliorate supply chain issues for businesses operating on both sides of the border.

These measures are all designed to kick start new areas of economic growth, providing long-term, future-proofed jobs and increasing capacity in all sectors of our economy.

Enterprise Policy

Ceisteanna (102)

Bernard Durkan

Ceist:

102. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if particular incentives are being considered to encourage the entrepreneurial skills of younger persons throughout the country particularly in the aftermath of Covid-19 and Brexit; and if he will make a statement on the matter. [52833/21]

Freagraí scríofa

Minister of State at the Department of Enterprise, Trade and Employment

Encouraging and promoting an enterprise culture is an important area of activity for Local Enterprise Offices. In seeking to develop a thriving enterprise culture, it is critical that young people from all backgrounds see enterprise as a viable career choice. The Local Enterprise Offices continue to reinforce entrepreneurship in the education system as a critical element in the future development of small business in Ireland through the Student Enterprise Programme. This Programme is Ireland’s largest and most successful student enterprise programme with close to 30,000 second level students taking part each year.

Students from 1st year to 6th year get to set up and run their own business and find out what it’s really like to be an entrepreneur by taking part in this 8-month long enterprise education learning programme. There are three categories: Junior (1st year students), Intermediate (2nd/3rd year students) and Senior (4th, 5th,6th year, LCA, LCVP and Youth Reach).

Ireland’s Best Young Entrepreneur is a programme run by the Local Enterprise Offices with the support of my Department and Enterprise Ireland. The competition is open to people between the ages of 18 and 35 with an innovative business idea, new start-up or established business and has an investment fund of up to 2 million Euro. In addition, the Junior Entrepreneur Programme has provided over 80,000 primary school pupils the opportunity to experience practical, real-life business learning as part of their formative education.

The Local Enterprise Offices also offer a wide range of management training and development courses to help entrepreneurs on their journey. All of the above are open to entrepreneurs regardless of their age and I am satisfied that this broad suite of programmes and interventions will continue to provide a healthy pipeline of entrepreneurs of all ages in the years ahead.

Enterprise Policy

Ceisteanna (103)

Bernard Durkan

Ceist:

103. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which a demand still exists for the location of international call centres in Ireland; and if he will make a statement on the matter. [52834/21]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

The international call centre industry is an important sector in Ireland. In recent years it has evolved from traditional call centres to language and technology-based customer interaction and customer experience centres. Customer experience operations have been a significant employer in Ireland since the 1980s, and in 2019 it was estimated that approximately 56,000 people were employed in this sector.

Ireland has continued to be a leading location for customer experience related activities due to its highly skilled and motivated multilingual talent base and favourable economic environment. Ireland’s customer experience companies serve key markets in Ireland, the UK, Western Europe, Eastern Europe, and the US and Canada. Increasingly, newer markets in Asia Pacific, Africa, and Latin America are being served.

Competition for FDI is intense and global with virtually every country in the world actively seeking new FDI investments. Investors in this sector seek skilled employees, international connectivity, energy infrastructure, telecommunications and services infrastructure. In 2019, IDA Ireland, along with Enterprise Ireland and the Customer Contact Management Association, published a transformation strategy for the customer experience sector. That strategy cited technology adoption, people change and services transformation as key areas of focus for the sector to remain competitive against international competition.

IDA Ireland will work with its existing client base to assist and support their growth and expansion in Ireland and will continue to highlight Ireland’s strong value proposition to prospective overseas investors to attract mobile foreign investment.

Brexit Issues

Ceisteanna (104, 112)

Bernard Durkan

Ceist:

104. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if he remains satisfied that Ireland’s export market continues to be accessible in the immediate aftermath of Brexit; if particular or specific challenges have been identified as potential major obstacles for Irish exporters and importers; if contingency measures have been fully decided upon and are now in place; and if he will make a statement on the matter. [52835/21]

Bernard Durkan

Ceist:

112. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which particular changes have been noted in international markets in which Irish goods and services are competing; and if he will make a statement on the matter. [52858/21]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

I propose to take Questions Nos. 104 and 112 together.

The Trade and Cooperation Agreement concluded between the EU and the UK in December 2020 creates the economic partnership and free trade area for goods allowing them to be traded without the application of tariffs or quotas on goods. As the deputy will be aware, in the lead up to Brexit, Government was heavily invested in preparing for Brexit and in contingency planning to mitigate the worst effects of Brexit on Irish businesses.

The performance of our import and export sectors has been significantly impacted over the last three years by both Brexit and the ongoing COVID-19 pandemic. Now, as we cautiously emerge from these necessary public health restrictions and global markets begin to open again, the Government will continue to help businesses in their next phase of recovery and adaptation.

My Department has invested to help businesses overcome these challenges. and, working with Enterprise Ireland, aims to strengthen Irish enterprise to respond to market shocks and disruption in response to COVID-19 and Brexit.

This involves driving transformational change and the pace of innovation to transition to new business models, digitalisation and the low carbon economy and to scale and grow the export and start-up base, across regions and sectors and grow companies of all sizes.

Despite the challenges posed by the COVID-19 pandemic and Brexit, our export-led trading sector has proven to be very resilient. In 2020, Goods exports were valued at €162 billion and Services exports at €244 billion, both reaching their highest levels on record. The total value of Ireland’s Goods and Services exports worldwide also reached a new record level of €406 billion, an increase of €23 billion over 2019.

The EU accounted for 40% of our total exports in 2020, while the US continued to be Ireland’s biggest single goods export market, accounting for 31% of total exports in 2020. While recognising the importance of our current markets, our focus is on deepening our reach into these markets while also opening up new trade markets between Ireland and the rest of the world. My Department is working intensively with its enterprise agencies to help companies to diversify and discover new markets and to adapt to export challenges posed by both COVID-19 and Brexit.

Each year, Enterprise Ireland offers a programme of trade missions, trade fairs and knowledge events which give their client companies based in Ireland the opportunity to connect with existing and new customers, access key decision makers, increase sales in international markets and exchange ideas. In recent years, the majority of Ministerial-led trade missions 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.

Due to the Covid-19 pandemic, Ministerial-led trade missions and events took place virtually throughout Quarters 1 to 3 of 2021. Physical Ministerial-led trade missions recommenced in September 2021 with missions taking place to the UK, France and Germany and to the UAE and Qatar in October 2021.

Further Ministerial-led trade mission are taking place in early November to Canada and the USA and I will lead a mission to the Middle East shortly. Enterprise Ireland is also planning a robust programme of in-market events for 2022 as Covid-19 restrictions begin to lift globally.

As well as the global efforts supported by our agencies, key to our success in growing exports has been our commitment to trade liberalisation in order to open new markets for our indigenous sectors. With a small domestic market, further expansion in other markets will be essential to our continued economic growth. 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.

Foreign Direct Investment

Ceisteanna (105, 110)

Bernard Durkan

Ceist:

105. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he remains satisfied that Ireland will continue to be attractive as a location for foreign direct investment with particular reference to the recent changes to Ireland's corporation tax rate; and if he will make a statement on the matter. [52836/21]

Bernard Durkan

Ceist:

110. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if foreign direct investment has been to any extent affected by changes in the corporation profits tax; and if he will make a statement on the matter. [52856/21]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

I propose to take Questions Nos. 105 and 110 together.

The Government’s recent decision to join the OECD international agreement is unlikely to adversely impact Ireland’s existing base of foreign direct investment. From a tax perspective, Ireland will remain a highly competitive place to do business. We will continue to offer a 12.5% rate to over 95% of companies operating in Ireland and there will be no change for those 160,000 enterprises and their approximately 1.8 million employees.

For those larger companies affected by the decision, the recent changes to the OECD agreement will provide clarity on the global minimum rate that will apply to them, thus providing much-needed certainty for investors. Investors’ confidence in Ireland remains strong, as evidenced by investment flow over recent months and years. In the face of global declines in the flow of FDI, in 2020 Ireland increased its market share of FDI into Europe.

Even with the challenges faced in 2020, owing to both Brexit and the COVID-19 pandemic, Ireland saw significant increases in foreign direct investment. In the first half of this year, IDA Ireland won 142 foreign direct investments, accounting for 12,530 jobs; this is an increase of 31% on the same figures in 2020.

Ireland has a number of key strengths that continue to make us a highly attractive destination for foreign direct investment. These include our highly educated and flexible workforce, a track record as a successful home to global businesses and our continued commitment to the European Union, the single market and Eurozone.

Despite the changes that global tax reforms will bring, as the results of 2020 and 2021 have shown, Ireland remains a highly competitive place to do business and has much to offer prospective inward investors.

Employment Schemes

Ceisteanna (106)

Bernard Durkan

Ceist:

106. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the degree to which Irish persons overseas can be encouraged to return to Ireland in order to meet staff vacancies throughout industry; if there are specific plans or measures in hand in respect of same at present; and if he will make a statement on the matter. [52837/21]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

In the Government's Diaspora Strategy, which was launched in late 2020, a number of actions have been set out to strengthen our connections with diaspora communities and to harness the contribution from the diaspora to support economic recovery. The Department of Foreign Affairs leads on the implementation of this strategy.

The strategy recognises how returning emigrants bring with them skills and knowledge gained abroad that can help develop both the national and local economies. To support this, the Government also recognises the need to minimise the challenges faced by individuals and families returning to Ireland.

The strategy commits to a number of actions to support the return of members of the diaspora. These include monitoring barriers to return and adopting measures to remove them where possible; the negotiation of reciprocal agreements with countries that are home to significant Irish diaspora communities, such as double taxation and social security agreements; improvement of the provision of information on returning to Ireland and providing information for Irish citizens living overseas, including the dissemination of information on skills needs; and the expansion of mutual recognition and the portability of academic or professional qualifications earned overseas.

The deputy may wish to seek an update from the Minister for Foreign Affairs on the implementation of these actions.

Construction Industry

Ceisteanna (107)

Bernard Durkan

Ceist:

107. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which job replacement or restoration throughout the construction sector has been or is being realised; if further steps are necessary in this regard; and if he will make a statement on the matter. [52839/21]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

The construction sector was negatively impacted following the introduction of restrictions late last year. The number of individuals from the construction sector claiming the Pandemic Unemployment Payment (PUP) rose steadily in the early weeks of the year and reached a high of 62,902 claimants on the 9th February.

The phased reopening of the construction sector, beginning on 12th April with the recommencement of all residential construction projects, saw a sizeable decline in the number of PUP claimants. The full reopening of all construction on 4th May saw further improvements and the number of PUP claimants from the construction sector has continued to decline as the year has progressed. It stood at 8,668 as of 19th October. This shows that more and more construction workers have seen their jobs restored as the sector has re-opened.

A further support for the construction sector that has helped maintain employment has been the Employee Wage Subsidy Scheme (EWSS). As was the case with PUP, the number of employees in the construction sector that were supported by the EWSS increased sharply in January 2021.

This vital scheme continues to provide valuable financial assistance to employers and has helped ensure employees remain within the sector. Almost 27,500 employees across all sectors participated in September 2021. The scheme will close to new employer registrations from 1st January 2022 and will conclude at the end of April 2022.

There are also steps being taken to ensure the skills and employment levels required by the construction sector are in place for the future. These are being delivered across Further and Higher Education, through apprenticeship, non-apprenticeship further education and training, mainstream education and training, as well as specific programmes such as Springboard+, the Human Capital Initiative and Skillnet Ireland.

Enterprise Policy

Ceisteanna (108)

Bernard Durkan

Ceist:

108. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the degree to which he continues to support and drive the creation of new enterprises in the indigenous sector nationally with particular reference to the need to encourage the generation of employment in all regions; and if he will make a statement on the matter. [52840/21]

Freagraí scríofa

Minister of State at the Department of Enterprise, Trade and Employment

As Irish enterprises continue to navigate the impact of both COVID-19 and Ireland’s new trading relationship with the UK, my Department’s focus continues to be on building a resilient enterprise base to sustain jobs and exports. Through our Agencies we continue to support and drive the creation of new enterprises in the indigenous sector nationally and in particular the generation of employment in all regions. In 2020, Enterprise Ireland supported enterprises employing over 220,000 people nationally of which 65% of this employment is located outside Dublin.

My Department also oversees the development of nine new Regional Enterprise Plans to 2024. These are bottom-up plans, developed by regional stakeholders including the Local Authorities, the enterprise agencies, local enterprise offices, regional skills forum and education and training institutes in each region.

The Plans aim to identify growth opportunities, recognise vulnerabilities, and in response, strengthen the regional enterprise ecosystem to enable job creation in the regions.

My Department’s Regional Enterprise Development Fund, Border Enterprise Development Fund and Regional Enterprise Transition Scheme, administered by Enterprise Ireland, has allocated over €126 million across 79 enterprise strengthening projects in every region over a series of competitive calls since 2017. These Funds are supporting significant collaborative and innovative regional projects that when complete will provide a timely impetus to job creation in the regions.

We introduced a number of significant measures in Budget 2022 in order to future-proof our SMEs on their growth journey such as the expansion of the Employment and Investment Incentive Scheme (EIIS), the extension of the Small Start-Up Companies Relief, the new Digital Games Tax Credit, a new €90 million Innovation Equity Fund as well as increased resources for the Local Enterprise Offices, IDA and Enterprise Ireland. We are also providing €20 million to help Irish enterprise decarbonise and go digital and there will be a new call for applications for the Disruptive Technologies Innovation Fund. These are all designed to kick start new areas of economic growth and help establish long-term, future-proofed jobs.

Covid-19 Pandemic

Ceisteanna (109)

Bernard Durkan

Ceist:

109. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which employment levels have improved in both the manufacturing and services sectors following the relaxation of Covid-19 restrictions; the extent to which he has identified particular issues needing attention; the action taken; and if he will make a statement on the matter. [52855/21]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

The labour market recovery has gathered momentum as labour intensive services sectors have reopened, with the level of PUP recipients falling below 100,000 since mid-October. This recovery has been experienced in both the services and manufacturing sectors. In the case of manufacturing, the level of PUP claimants has fallen from a high of 37,400 to under 6,000 in November. One of the service sectors most heavily impacted was accommodation and food service, and that has seen an almost 90% decline in the number of workers from that sector receiving PUP since the peak in 2020.

While the relaxing of public health restrictions has resulted in more businesses re-opening and in turn increased employment, some sectors will take longer to return to their pre-COVID-19 levels of employment or may never return to the levels of pre-pandemic employment.

These workers in vulnerable sectors that may not recover will need to be supported to upskill and retrain for employment in other sectors. The Economic Recovery Plan outlines how the Government will facilitate workers in retraining and upskilling and assisting them in the transition from declining to expanding sectors.

The Pathways to Work 2021-2025 Strategy will help those people whose jobs have been permanently lost as a result of COVID-19. It is focusing on preventing long-term unemployment and on younger workers who have lost jobs. Under the Strategy, Intreo Offices will be provided with increased resources to act as a one stop shop for jobseekers, a new paid work placement experience programme will be introduced, the number of apprenticeships and further education training places available will be increased, and improved access to further education and self-employment opportunities.

These measures will help ensure the measures are in place to aid workers whose employment has been severely impacted by the pandemic and that we have a labour force that can take advantage of the new opportunities that arise form the green and digital agendas.

Question No. 110 answered with Question No. 105.

Trade Promotion

Ceisteanna (111)

Bernard Durkan

Ceist:

111. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which his Department continues to vigorously press for new markets for Irish products at home and abroad; and if he will make a statement on the matter. [52857/21]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

The success of Irish products both at home and in export markets is crucial to the long-term growth of Irish businesses and the Irish economy. Enterprise Ireland, the agency of my Department which is responsible for the development and growth of Irish enterprises in world markets, works in partnership with Irish enterprises to help them start, grow, innovate and win export sales in global markets.

To strengthen Enterprise Ireland’s services to clients in international markets, the agency opened new offices including in Manchester in the UK, in addition to the existing London office, to support companies to capitalise on growth opportunities in the North of England.

New offices have also been opened in Munich in Germany and Lyon in France, with Enterprise Ireland’s team there and elsewhere in the EU and Eurozone actively connecting with buyers in the marketplace and linking them to Irish companies in sectors of opportunity such as Construction, Engineering, Life Sciences/Medtech and Food. By 2020 client exports to the Eurozone had grown to €5.85 billion, up from €4.1 billion in 2015, making this region the second largest market by value for Enterprise Ireland clients.

Each year, Enterprise Ireland offers a programme of trade missions, trade fairs and knowledge events which give their client companies based in Ireland the opportunity to connect with existing and new customers, access key decision makers, increase sales in international markets and exchange ideas. In recent years, the majority of Ministerial-led trade missions 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.

Due to the Covid-19 pandemic, Ministerial-led trade missions and events took place virtually throughout Quarters 1 to 3 of 2021. Physical Ministerial-led trade missions recommenced in September 2021 with missions taking place to the UK, France and Germany and to the UAE and Qatar in October 2021. Further Ministerial-led trade mission will be taking place this November to Canada and the USA and to Saudi Arabia and Dubai. Enterprise Ireland is also planning a robust programme of in-market events for 2022 as Covid-19 restrictions begin to lift globally.

As well as the global efforts supported by our agencies, key to our success in growing exports has been our commitment to trade liberalisation in order to open new markets for our indigenous sectors. With a small domestic market, further expansion in other markets will be 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.

Question No. 112 answered with Question No. 104.

Economic Growth

Ceisteanna (113)

Bernard Durkan

Ceist:

113. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which fuel and energy shortages and immigrants who might be in a position to join the workforce early if admitted is likely to affect economic growth here; and if he will make a statement on the matter. [52860/21]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

As the global economy re-opened this year and domestic public health restrictions relaxed, Irish growth numbers are forecast to recover strongly. The Department of Finance forecasts GDP will grow by 15.6% in 2021 and for Modified Domestic Demand (MDD) to grow by 5.2%. This level of growth in MDD implies that real domestic activity will rise above pre-pandemic levels during 2022.

These strong growth numbers are expected even when we are facing cyclically high energy prices.

In relation to energy and fuel, while we are experiencing cyclically high natural gas prices internationally based on reduced strategic reserves in some countries and high demand there has been no adverse impact on gas security of supply in Ireland.

Both Eirgrid and Commission for Regulation of Utilities are actively managing issues related to Security of Supply on Ireland's electricity grid. Eirgrid has confirmed that the Huntstown power station in Dublin is back in operation feeding electricity into the national grid, which should contribute significantly to managing this risk.

The increases in prices of fuel and energy has implications for households and business, by increasing their cost base. In terms of the impacts of current increases in energy and fuel prices on our medium- and longer-term growth we are taking actions to limit the impact volatile energy prices will have on our economy.

We are focused on decarbonising our energy and transport systems and the volatility of international market prices is further impetus to invest strategically in our energy infrastructure to allow for even greater emphasis on domestic renewable generation. Ireland is well placed to be a green energy hub, both to meet our own domestic needs and to be part of a wider European green energy ecosystem.

I expect Ireland’s National Development Plan aligned with our Climate Action Plan to drive significant investment in the low carbon transition in this country, and to mitigate our exposure to the volatility of global fuel prices. Which in turn would limit the impact on our economic growth from volatile energy and fuel prices.

The Economic Recovery Plan sets out the skills policies that we need to ensure that our labour force has the key skills to deliver on the main drivers of economic growth over the coming years- digital transformation, decarbonisation, and housing and infrastructural development.

This will be complemented by Ireland’s continuing attractiveness to international workers, in particular through the continued responsiveness of the employment permits to the needs of Ireland’s labour market.

For example in recent years, the range of Built Environment occupations- which will be central to delivering on our decarbonisation, housing, and infrastructure ambitions- have also been made eligible for Critical Skills and General Employment Permits. This pool of overseas skills will therefore be at the disposal of Ireland’s Built Environment sector as it seeks to deliver on key ambitions in the coming years.

This mixture of ensuring the labour force has the key skills to deliver on the main driver of economic growth along with attracting international workers to Ireland, will help ensure we have a stable and positive economic growth environment in coming years.

Foreign Direct Investment

Ceisteanna (114)

Bernard Durkan

Ceist:

114. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which the island of Ireland is likely to continue to be an attractive place for foreign direct investment; and if he will make a statement on the matter. [52862/21]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

Enhancing the country’s attractiveness to FDI is a policy objective in both Ireland and Northern Ireland. FDI policy in Northern Ireland is a matter for the Department for the Economy.

My Department’s agency, IDA Ireland, has been securing FDI investment for Ireland for over 70 years. Currently, the economy faces twin challenges arising from COVID-19 and Brexit. In the context of COVID-19, the continued resilience shown in the existing FDI base is encouraging, as it is crucial to our economic recovery from the pandemic. 80 FDI investments in the first half of the year were by established companies, with a further 62 'new name' investments.

The lead up to Brexit saw the IDA make concerted efforts to ensure its client base was prepared for any Brexit-related risks, and able to respond to any Brexit-related issues. We want overseas firms that already have a presence here to stay well into the future. Ever since the UK referendum, the Agency has sought new opportunities to attract investment to Ireland, securing 92 Brexit-related investments with an associated jobs potential of 5,900. Furthermore, the IDA has diversified its source markets for foreign direct investment, restructuring its European operations, and deploying additional resources in the Middle East, Asia, and Latin America.

IDA Ireland continues to emphasise the core elements of Ireland’s value proposition for foreign direct investment. Our strengths – including our pro-enterprise policy environment, highly-educated English-speaking workforce and our membership of the European Union – remain attractive to international investors. Retaining and strengthening Ireland’s reputation as a destination of choice for foreign direct investment remains fundamentally important to our economic model.