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Tuesday, 2 Nov 2021

Written Answers Nos. 1-20

Trade Agreements

Ceisteanna (8)

Paul Murphy

Ceist:

8. Deputy Paul Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will report on the planned timeframe for ratifying the CETA trade agreement. [53136/21]

Amharc ar fhreagra

Freagraí scríofa

Ratifying CETA is Government policy and an objective of mine as Minister for Enterprise, Trade and Employment.

As a country, we owe our relative prosperity to the goods and services produced by our people and our land, which we sell around the world. This formula has worked well. It is based on international trade, our attractiveness as a place to invest and our ability to enter into international free trade agreements with other countries.

CETA has provisionally applied since 21st September 2017, whereby those areas for which the EU has "full competence" under the Treaties are in force.

As I set out in my appearances before the Joint Oireachtas Committees on EU Affairs and on Enterprise Trade & Employment, when each reviewed CETA, provisional application has seen Goods exports to Canada increase from €953 million in 2016 to more than €1.7 billion in 2020 - an an increase of 78% in a little over five years. And Services exports grew from €1.6 billion in 2016 to more than €2.3 billion in 2019, an increase of 44%. These figures demonstrate the benefits of CETA and trade agreements.

I had originally sought to bring the relevant ratification motion for CETA before Dáil Éireann last December. However, given the significant pressures on Oireachtas time, and to facilitate a request from the Green Party for additional time to consider the Agreement, it was agreed by Government to postpone this Motion until a later date.

While I welcome the scrutiny at Committee, I do not want ratification delayed and drifting indefinitely, and for Ireland to have to stand by and watch other EU member states ratify it ahead of us, as the majority have. That would send out the wrong message to the world.

The ratification process for CETA has also been subject to legal challenges. On foot of a case taken by Deputy Patrick Costello, the High Court has confirmed that there is no requirement for a referendum before ratification can be considered by the House. Senator Lynn Boylan has also initiated High Court action on ratification and I hope that the Courts could facilitate an early hearing of this application as it did with Deputy Costello's challenge.

I appreciate there are strongly held differences of opinion on CETA, principally in the area of Investment Protection. Those opinions can be expressed through a democratic vote in the Dáil in due course. An exact date for that vote has not yet been set by the Government.

Living Wage

Ceisteanna (9)

Paul Murphy

Ceist:

9. Deputy Paul Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment if he has read the 2021/2022 report from a group (details supplied); and if he will make a statement on the matter. [53135/21]

Amharc ar fhreagra

Freagraí scríofa

The Government has been clear in our belief that a legacy of the pandemic must be better pay, terms and conditions for everyone, particularly for those on low pay. We are committed, therefore, to progressing to a living wage over the lifetime of this Government.

Currently there is no official living wage in Ireland. The Living Wage Technical Group, which comprises members including Vincentian Partnership for Social Justice, TASC, NERI and SIPTU calculates a living wage by estimating the cost of a basic basket of goods, services and expenses required to maintain a “minimum essential living standard”. The Partnership estimates the living wage for 2021/22 as €12.90 per hour.

Officials in my Department have reviewed the report from the Partnership. However, it is important to note that this report is not connected to or endorsed by the Low Pay Commission and it is separate to the Programme for Government commitment to “progress to a living wage over the lifetime of the Government”.

In progressing to a living wage, we need to recognise that many businesses have been badly affected by the pandemic. We need to make sure that we proceed in a way that does not affect employment, both in terms of the numbers employed and the hours worked by employees. That would be counter-productive.

Earlier this year I asked the Low Pay Commission to examine the Programme for Government commitment and to make recommendations on the best approach.

The Commission is undertaking research on the topic and the terms of reference for this research were noted by Cabinet earlier this year.

The report will consider the policy, social and economic implications of a move to a living wage and the process by which Ireland could progress towards a living wage.

It will do this by looking at international evidence on living wages, examining different calculation methods, examining the policy implications and outlining options of moving to a living wage in Ireland.

The findings and recommendations in the Commission’s report, which I expect to receive later this year, will inform Government on the best practical approach to progress to a living wage in Ireland.

Flexible Work Practices

Ceisteanna (10)

Niamh Smyth

Ceist:

10. Deputy Niamh Smyth asked the Tánaiste and Minister for Enterprise, Trade and Employment the way he is helping persons to work from home; and if he will make a statement on the matter. [52689/21]

Amharc ar fhreagra

Freagraí scríofa

The pandemic has presented an opportunity to make a permanent change in the way we work - to make remote and blended working a much bigger part of normal working life and achieve a better work-life-balance.

In January I published the National Remote Work Strategy. Its objective is to ensure that remote work is a permanent feature in the Irish workplace, in a way that maximises economic, social and environmental benefits.

My officials are leading the implementation of the Strategy's actions through an Interdepartmental Group which meets on a quarterly basis. All actions have been achieved or are currently underway.

Significant achievements to date include:

- The publication of the Code of Practice on the Right to Disconnect in April 2021 by the Workplace Relations Commission.

- A public consultation on the Right to Request Remote Work. Informed by this and by a review of international best practice, the drafting of the General Scheme of the Bill has commenced and I will be seeking Cabinet approval for the drafting of Heads of a Bill this quarter.

- ConnectedHubs.ie- Ireland’s first national digital hub network- was launched by the Department of Rural and Community Development at the end of May 2021. ConnectedHubs.ie will ultimately link over 400 hubs throughout the country.

- In July, €8.9m of funding was awarded through the Connected Hubs funding stream to 117 remote working hub projects. This investment will expand existing hub facilities and remote working infrastructure.

- In October, over €9.3 million in funding was awarded to projects around the country through Enterprise Ireland’s Regional Enterprise Transition Scheme, with successful applicants including hubs and enterprise centres throughout the country.

- In Budget 2022, an enhanced income tax deduction for people working from home was announced. It amounts to 30 percent of the cost of vouched expenses for heat, electricity and broadband.

I recognise that Remote working won’t work for everyone, or for every organisation, so the Government will take a balanced approach with our proposals. We want to retain the creativity and innovation that flourishes from people meeting each other and retain the vibrancy of our city centres.

While some people will work full-time from the office, from home or from a hub, I believe most of us will be blended workers. The Government will continue working to ensure that potential becomes a reality.

Questions Nos. 11 to 14, inclusive, answered orally.

Enterprise Support Services

Ceisteanna (15)

Niamh Smyth

Ceist:

15. Deputy Niamh Smyth asked the Tánaiste and Minister for Enterprise, Trade and Employment the increased supports that are being provided for the Design and Crafts Council by his Department; and if he will make a statement on the matter. [52688/21]

Amharc ar fhreagra

Freagraí scríofa

The Design & Crafts Council Ireland (DCCI) promotes the commercial development of Irish designers and makers, stimulating innovation, championing design thinking, and informing Government policy.

DCCI’s activities are funded by my Department through Enterprise Ireland. In 2022, my Department will provide an additional €1 million in funding, up to a total of €5.6 million, to support the work of the Design and Crafts Council Ireland in what is an extremely valuable indigenous industry in Ireland.

The funding will be used by DCCI to initiate new programmes under their new 5-year strategy (2022-2026). The Council have demonstrated their ability to drive high value returns from previous funding received and have additional goals to drive continuous improvement in the sector. The additional funding will assist the sector to build capacity and generate additional export sales and online revenue opportunities, increasing market diversification by client companies and underpinning sustainable growth.

The design and craft sector play a vital role in our economy, providing sustainable jobs right across the country and contributes to our culture of enhancing Ireland’s international reputation for excellence in design and craftsmanship. DCCI also provides a broad range of advice to clients as well as ongoing engagement with the Local Enterprise Offices and Enterprise Ireland in pursuing the commercial development of the design and craft sectors both nationally and internationally.

Question No. 16 answered orally.

Job Losses

Ceisteanna (17)

Peadar Tóibín

Ceist:

17. Deputy Peadar Tóibín asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of redundancies in 2020 and to date in 2021; and the measures taken by the Government to prevent these redundancies. [52008/21]

Amharc ar fhreagra

Freagraí scríofa

There is no single data set to quantify the number of redundancies in the State. Applications under the Redundancy Payments Scheme from the Social Insurance Fund (SIF) represent only a proportion of actual redundancies because situations whereby redundancies are paid directly by the employer from their own resources with no recourse to the SIF are not required to be advised to any Department. In 2020 there were 4,157 redundancies paid from the SIF. Up to the end of September 2021 there were 1,738 redundancies paid from the SIF.

Similarly, the data on collective redundancy notifications sent to the Minister for Enterprise, Trade & Employment, does not reflect the total number of actual redundancies that take place across the workforce. Collective redundancies arise when a certain number or percentage of total employees in a business are being made redundant. Redundancies outside these parameters are not required to be notified to the Department. Also, not all proposed redundancies result in actual redundancies as alternatives can be found during the required 30-day consultation period between employers and employees. In 2020, 12,514 potential redundancies were notified, and 6,907 potential redundancies have been notified up to the end of September 2021.

Section 12A of the Redundancy Payments Act 1967 is the Covid-19 emergency provision enacted in March 2020 which temporarily suspended an employee’s right to claim redundancy from their employer, following certain periods of layoff and short-time work.

As the economy has started to gradually reopen, the emergency provision was considered no longer necessary and it expired on 30th September 2021. To coincide with this the reckonable service scheme was announced which ensures that employees made redundant do not lose out on reckonable service for periods of lay-off that were as a result of Government restrictions. It is expected that payments will become operational in the first half of 2022.

Government recognised the unique challenges posed by the Covid-19 crisis for small and micro companies. In response, we have provided for a dedicated rescue process for small and micro companies known as the Small Companies Administrative Rescue Process, or SCARP.

SCARP provides an alternative to examinership, for the benefit of small and micro companies, which is more cost efficient and capable of conclusion within a shorter period of time. It is hoped to commence the associated Act at the end of this month.

The wide range of other measures taken by government, such as the Employment Wage Subsidy Scheme, the COVID Restrictions Support Scheme, the Small Business Assistance Scheme for COVID, the Business Resumption Support Scheme, and sector-specific measures such as business continuity grants and the lower VAT rate, have all been critical in keeping businesses afloat and preventing redundancies.

Finally, the National Economic Recovery Plan sets out the Government's approach to deliver a jobs-led recovery, helping the sectors and workers most impacted in recent times.

Flexible Work Practices

Ceisteanna (18)

Louise O'Reilly

Ceist:

18. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment if workers will have the right to request remote working before the end of 2021; and if he will make a statement on the matter. [53076/21]

Amharc ar fhreagra

Freagraí scríofa

The pandemic presents an opportunity to make a permanent change in the way we work - to make remote and blended working a much bigger part of normal working life and achieve a better work-life balance.

After the pandemic, I believe people should have a choice to work from home or in the office, so long as the work gets done and business and service needs are met.

The right to request remote work is part of the Government vision to make remote working a permanent feature of Ireland’s workforce in a way that can benefit all – economically, socially and environmentally. The commitment to introduce legislation to underpin employees' right to request remote work was made in the national Remote Work Strategy published last January.

Currently, all employees can ask their employers for the right to work remotely, but there is no legal framework around which a request can be made and how it should be dealt with by the employer. This new law will set out a clear framework around which requesting, approving or refusing remote work can be based.

Informed by the public consultation and a review of international best practice, the drafting of the General Scheme of the Bill has commenced and I will be seeking Cabinet approval for the drafting of Heads of a Bill before the end of the year. The Bill will be progressed through the Oireachtas as quickly as possible thereafter. The intention is to introduce a mechanism for employees to request remote working that is fair but does not place an undue burden on employers.

In the meantime, there is plenty of advice and information available. The Government launched the #MakingRemoteWork campaign in June this year. The campaign aims to raise awareness of the advice and information available from Government to help workers and employers facilitate more remote and blended working.

This includes guidance for employers and workers and a Remote Working Checklist which are all available on the DETE website.

Legislative Measures

Ceisteanna (19)

Cormac Devlin

Ceist:

19. Deputy Cormac Devlin asked the Tánaiste and Minister for Enterprise, Trade and Employment his legislative priorities in the area of insurance; and if he will make a statement on the matter. [52616/21]

Amharc ar fhreagra

Freagraí scríofa

Insurance reform is one of my top priorities as Tánaiste and Minister for Enterprise, Trade and Employment. The Cabinet Committee Sub-Group on Insurance Reform, which I chair, published the Action Plan for Insurance Reform in December 2020.

Significant legislative reforms have already been completed. The Personal Injuries Guidelines came into effect on the 24th of April, which has resulted in the average Personal Injuries Assessment Board award decreasing by approximately 40%. The Criminal Justice (Perjury and Related Offences) Act 2021 was commenced on 28 July 2021 and should enable the offence and related offences to be more easily prosecuted in the courts.

While progress on these actions is welcome, Government is committed to doing more to reduce insurance costs. The Minister for Justice is considering legislative proposals to reform the law in the area of occupier’s liability. The Minister for Finance is also developing legislation to enhance the National Claims Information Database.

Regarding actions under the aegis of my Department, Minister Troy is developing proposals to enhance and reform the Personal Injuries Assessment Board. Heads of a Bill have been developed which the Minister is considering, in consultation with the Attorney General’s Office. The Minister expects to bring proposals for legislative reform to Government shortly.

Minister Troy is also progressing legislation to strengthen competition law in Ireland. The legislation will break new ground in this area, giving competition authorities, such as the Competition and Consumer Protection Commission (CCPC), enhanced powers including administrative sanctions and other tools in dealing with anti-competitive practices.

Implementation of these legislative reforms together with the other actions set out in the Action Plan will deliver meaningful reform of the insurance market and create the conditions for the provision of affordable insurance for consumers and business.

Foreign Direct Investment

Ceisteanna (20)

Richard Boyd Barrett

Ceist:

20. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will report on the planned establishment of an IDA office in Israel. [53173/21]

Amharc ar fhreagra

Freagraí scríofa

IDA Ireland is not planning to establish an office in Israel.

The IDA issued a request for tender for a part-time Israel based Business Development Consultant in April 2021. I am advised that IDA Ireland has identified a person for this role and the appointment process is likely to be concluded by year end. This person will represent IDA to support its efforts to win new investment. IDA Ireland regularly engage Pathfinders/Consultants and this is a model used across many territories.

The Business Development Consultant will be expected to identify Israeli-headquartered target companies with potential for investing in Ireland, engage with senior decision-makers in these companies and present Ireland’s value proposition as an investment location. I am advised that IDA Ireland will not target any Israeli company included on the database of enterprises involved in certain activities relating to settlements in the Occupied Palestinian Territory, as published by the UN in February 2020.

Ireland’s position on the illegality of Israeli settlements in occupied Palestinian territory informs our engagement with the State of Israel across a range of bilateral issues, including trade, and will continue to do so.

Ireland consistently raises human rights issues in Israel and the occupied Palestinian territory at the highest international levels, including most recently at the 47th session of the UN Human Rights Council.

Ireland remains steadfast in its support for a comprehensive two state solution which protects the future of both the Palestinian and Israeli peoples.

As an Agency of my Department, IDA Ireland are expected to act in line with Government policy and the Agency has given assurances that this is the case.

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