Written Answers Nos. 187-203
187. Deputy Peadar Tóibín asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of international developers and multinational corporations that entered the Irish market for the first time from 2018 to date. [6407/22]
Amharc ar fhreagraDespite unprecedented challenges to Ireland’s economy in 2021, IDA Ireland’s end of year results for 2021 show that the level of foreign direct investment remained resilient.
The table below shows the number of new name multinational companies, across the manufacturing and services sector, secured by IDA between 2018 and 2021. My Department does not hold information in relation to the number of international developers active in Ireland during this timeframe.
|
Year |
Number of new name investments |
|
2018 |
134 |
|
2019 |
125 |
|
2020 |
95 |
|
2021 |
104 |
Overall, 249 investments were gained by IDA in 2021, and of this number, 104 were new name investments, which is a great achievement. The number of people directly employed in multinational companies in Ireland grew to 275,384, with over 29,000 new jobs being created by the sector in 2021.
Competition for FDI is intense and global with virtually every country in the world is actively seeking new FDI investments. Investors have many attractive location options to choose from – countries, regions and cities. Every single job created in Ireland by an overseas company has to be fought for, against every increasing competition from a growing number of sophisticated locations.
Factors which enhance Ireland’s attractiveness to foreign investors include our pro-enterprise policy environment, our highly educated and English-speaking workforce, as well as our membership of the European Union. IDA Ireland, with the support of my Department, continues to work closely with international clients, from a range of sectors, to attract job-rich investment from overseas firms.
FDI remains a fundamentally important element of our economic model and our efforts in this area are guided by IDA Ireland’s Strategy, Driving Recovery & Sustainable Growth 2021-2024.
188. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he sees opportunities for reform to be of benefit to the public and private sectors in 2022, with particular reference to the need to ensure competitiveness and effectiveness throughout these sectors; and if he will make a statement on the matter. [2077/22]
Amharc ar fhreagraA key element to ensuring competitiveness for the whole economy is boosting productivity through innovations and reforms in the public and private sectors. Investment in research, development and innovation (RD&I) is known to boost firm-level productivity and overall economic performance.
Government support for public and private sector investment in digital skills and technology, alongside RD&I, allows Irish enterprises and public bodies to seize opportunities to develop innovative new products and services. This will ensure the long-term effectiveness and competitiveness of both Ireland’s private and public sectors.
The Government aims to enable Irish businesses to take advantage of digital opportunities by intensifying connectivity, digital adoption, and innovation. I am pleased to advise the Deputy that Ireland's Recovery and Resilience Plan devotes 32% of its total allocation to measures that support the digital transition. This includes measures enhancing connectivity, supporting the digitalisation of the public administration and of enterprises, and contributing to up-skilling in the educational system.
To further innovation, the Government has committed to developing a new national strategy for research and innovation in the Economic Recovery Plan. The Department of Further and Higher Education, Research, Innovation and Science is leading the development of this new national strategy, in consultation with key Government Departments, agencies and stakeholders. This new Strategy will be published in 2022.
In respect of the public sector, the Government published Ireland’s first Public Service Innovation Strategy – ‘Making Innovation Real’ in November 2020, which aims to develop, foster and sustain innovation capacity and capability across the public service.
In addition, the Government has developed a number of resources and supports to enable public bodies to develop their own Innovation Strategies as well as an Innovation Scorecard which supports public bodies to measure and improve their innovation capability. Some examples include:
- The Public Service Innovation Fund provides funding to projects that encourage new ways of working and the use of experimental or emerging technologies.
- The Public Service Innovation Network enables connections between people, teams and organisations to share ideas, experiences and best practice.
- Embedding Robotic Process Automation and other intelligent automation technologies across government through a simplified procurement framework developed by DPER. This technology proved to be pivotal in the Covid19 response in areas like the HPSC and the development of the PUP.
- Learning and Development interventions to hundreds of public servants in innovation-related modules and principles of design thinking.
These policies will enable Ireland’s private and public sectors to seize the opportunities which will ensure they continue to perform effectively and competitively into the long term.
189. Deputy Pearse Doherty asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will report on the Action Plan for Insurance Reform. [7125/22]
Amharc ar fhreagraThe Cabinet Committee Sub-Group on Insurance Reform, of which I am a member, published the Action Plan for Insurance Reform in December 2020. This is one of the most important programmes of reform that this Government will undertake.
The Plan sets out 66 actions to bring down costs for consumers and business; introduce more competition into the market; prevent fraud and reduce the burden on business, community, and voluntary organisations.
On the 6th of July 2021 Government published the first Implementation Report of the Action Plan showing that 34 of the 66 actions had been delivered in the first six months of the Plan.
Government through the Sub-Group on Insurance Reform continues to oversee and drive forward the Action Plan. A meeting of the Sub-group took place yesterday to hear updates from Ministers on outstanding actions. Following this meeting I expect the 2nd Implementation Report of the Action Plan will be published shortly.
Across Government Departments significant actions have already been completed.
Principal actions delivered to date include the establishment of the Office to Promote Competition in the Insurance Market and the Insurance Fraud Coordination Office. Legislation to strengthen the laws on perjury has been enacted. The commencement of the Personal Injury Guidelines is a milestone reform. Under the Guidelines award levels have reduced across nearly all ranges with the level of reduction ranging from 31% to 69% depending on the severity of injury. PIAB data shows a significant downward shift in award values which will reduce the cost of claims.
Following Government approval, the Department of Finance published the General Scheme of the Insurance (Miscellaneous Provisions) Bill 2021 on October 20, 2021, to enhance transparency and ensure consumer protection. The Bill covers a number of insurance-related matters. Drafting of the Bill has now commenced.
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.
Regarding actions under my own Department, yesterday I published the General Scheme of the Personal Injuries Resolution Board Bill 2022 was published. The Scheme proposes to amend the Personal Injuries Assessment Board Act 2003-2019 in a number of ways including:
- PIAB will be given a new function – to offer mediation as a means of resolving a claim.
- PIAB will retain claims of a wholly psychological nature.
- PIAB will deepen its analysis and public information roles.
- PIAB will have additional time to assess claims where an injury is yet to settle rather than releasing to litigation.
- The Court’s discretion regarding costs in litigation will be tightened.
Furthermore, the Competition (Amendment) Bill 2022 was published on the 31st of January 2022 and introduced to the Dáil this week. The Bill proposes to give more powers to the Competition and Consumer Protection Commission (CCPC) and the Commission for Communications Regulation (ComReg) to protect consumers and challenge anti-competitive practices by business.
I am confident that through the implementation of the actions set out in the Action Plan we are delivering meaningful reform of the insurance market and creating the conditions for the provision of affordable insurance for consumers and business.
190. Deputy Michael Lowry asked the Tánaiste and Minister for Enterprise, Trade and Employment when he plans to engage with representatives from an organisation (details supplied); if he will ensure the right environment is in place for this sector and the broader tourism industry to guarantee it can deliver to its full potential in 2022; and if he will make a statement on the matter. [7134/22]
Amharc ar fhreagraAn Tánaiste and Minister Catherine Martin TD, Minister for Tourism, Culture, Arts, Gaeltacht, Sports and Media jointly chair the Hospitality and Tourism Forum, organised by the Department of Tourism, Culture, Arts, Gaeltacht, Sports and Media. The Forum meets regularly and provides opportunities for ongoing engagement with the organisations mentioned by the Deputy.
Following the easing of restrictions, the Government announced some amendments to horizontal supports including:
- That reduced levels of Employment Wage Subsidy Scheme (EWSS), due to commence on 1 February, will be delayed by a month for eligible businesses that were directly impacted by the public health restrictions introduced in December 2021.
- The EWSS which was planned to cease on April 30th will be extended by one additional month for those eligible businesses directly impacted by the December public health restrictions.
- A restart payment of one week’s support will be paid to Covid Restrictions Support Scheme (CRSS) recipients to assist re-opening.
- The tax debt warehousing scheme to provide liquidity support to businesses impacted by the December public health restrictions has been extended by 4 months until 30 April 2022.
- The PUP will close for new applications from the 22 January. Anyone remaining on PUP will move to a weekly rate of €208 with effect from payments made on 8 March. After that, remaining PUP recipients will start transitioning to standard jobseeker terms, and if eligible, will move onto a jobseekers payment with effect from payments on 5 April.
Government continues to carefully consider any additional measures required to addresses key priorities for business survival and recovery. In relation to hospitality sector specific supports my colleague, Minister Catherine Martin TD, Minister for Tourism, Culture, Arts, Gaeltacht, Sports and Media may be able to assist further. In addition, the role of Fáilte Ireland, as the National Tourism Development Authority (www.failteireland.ie), is to support the long-term sustainable growth in the economic, social, cultural and environmental contribution of tourism to Ireland. Fáilte Ireland works in partnership with Government, State agencies, Local Authorities, representative groups and industry, to develop tourism across Ireland by creating destination development plans and networks, investing in infrastructure, activities, visitor attractions and festivals.?Fáilte Ireland also provides consumer and buyer insights, mentoring, business supports and training programmes and buyer platforms to help tourism businesses innovate and grow.
Fáilte Ireland's work programme for the year ahead will include focus on supporting recruitment to drive recovery, supporting the long-term repositioning of the industry and building employee capability and skills
Officials from the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media participate in the Interdepartmental Group on Economic Migration Policy chaired by the Department of Enterprise, Trade and Employment. Most recently the work of the Group resulted in a quota of up to 350 employment permits being granted for four managerial positions in certain tourism and hospitality businesses. The prospective employee is required to hold a relevant third level qualification and have at least five years experience in the industry in order to be considered eligible. Following a change at the end of 2019 all grades of chef are eligible for the General Employment Permit.
191. Deputy Joe McHugh asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will provide an update on the Covid-19 credit guarantee scheme; and if he will make a statement on the matter. [7224/22]
Amharc ar fhreagraThe COVID-19 Credit Guarantee Scheme has been in operation since September 2020. A total of €617 million in loans has been drawn or approved by over 8,800 businesses up to the end of 2021, maintaining over 63,000 jobs. Businesses which have been most impacted by the effects of COVID-19 are drawing the most loans; the wholesale and retail sector, the accommodation and food services sector, the construction sector and the primary agriculture and fisheries sector account for 58% of all loans drawn under the scheme.
The scheme is available to SMEs and small mid-caps through three commercial banks, six non-bank lenders and nineteen credit unions. It continues to provide vital access to finance for businesses with low-cost loans and loans of up to €250,000 available without the need for security.
Schemes operating under the Credit Guarantee Act, which includes the COVID-19 Credit Guarantee Scheme, are based on contingent liability. This means that there is no cost to the State unless a participating enterprise is unable to pay back the loan and the finance provider calls on the guarantee for 80% of the outstanding balance. The contingent liability at 31 December 2021 was €395 million and actual claims paid in respect of defaulted loans at the end of 2021 amounted to €252,346.
The Scheme has been developed in accordance with the European Commission’s State Aid Temporary Framework and has been extended three times since September 2020. The last extension was in December 2021 and makes the scheme available until 30 June 2022. Any further extension of the scheme beyond that point is dependent on an extension of the Temporary Framework. I would therefore encourage businesses to avail of these low-cost loans in the remaining time of the scheme, which can be used for both working capital and investment purposes.
192. Deputy James Browne asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will provide a breakdown of Departmental civil servants and State agency employees under his remit, respectively working in County Wexford and their respective Departmental section in tabular form. [7232/22]
Amharc ar fhreagraIn response to the Deputy's question, I can confirm that neither this Department nor the State Agencies under its remit have any employees working in County Wexford.
193. Deputy Denis Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress made by his Department in respect of its targets and goals set out in Sustainable Development Goals of the 2030 United Nations Agenda for Sustainable Development under the policy remit of his Department; if these targets and goals will be met by their respective deadlines; and if he will make a statement on the matter. [7276/22]
Amharc ar fhreagraA renewed focus is currently being given to progress Ireland’s commitment to Agenda 2030 for Sustainable Development. Substantial progress has been achieved in recent months in respect of reviewing Ireland’s implementation of Agenda 2030 and identifying key priorities and actions for inclusion in the next National Implementation Plan. It is intended that the draft Plan will be made available shortly and form the basis of discussion at the next SDG National Stakeholder Forum. This will allow for a final round of input from stakeholders prior to finalisation and publication.
Ireland has adopted a ‘whole-of-Government’ approach to achieving the Sustainable Development Goals (SDGs), with each Minister having responsibility for implementing individual SDG targets related to their functions. My Department has responsibility for leading implementation of the following targets:
|
Target |
Description |
|
8.3 |
Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services |
|
8.5 |
By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value |
|
8.8 |
Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment |
|
8.b |
By 2020, develop and operationalise a global strategy for youth employment and implement the Global Jobs Pact of the International Labour Organization |
|
9.2 |
Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries |
|
10.a |
Implement the principle of special and differential treatment for developing countries, in particular least developed countries, in accordance with World Trade Organization agreements |
|
12.6 |
Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle |
Progress on the goals and targets is mainstreamed through the work of my Department. Progress on targets across Goals 8 and 9 has been made through my Department’s enterprise policy set out in enterprise policy initiatives in recent years including Enterprise 2025 Renewed, and continues to be made through the Economic Recovery Plan.
On target 12.6, my Department continues to work with the Department of Environment, Climate and Communications and other stakeholders, including the UN Global Compact, in relation to encouraging companies to adopt sustainable practices. Continued action on this target will form part of the next National Implementation Plan.
194. Deputy Catherine Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment the date on which the Corporate Enforcement Authority will commence its work; and the number of gardaí and the rank of each that have transferred or are in the process of transferring to the authority on 7 January 2022. [7319/22]
Amharc ar fhreagraThe Companies (Corporate Enforcement Authority) Act 2021 which provides for the establishment of the CEA was signed by the President on December 22. it is our firm intention to commence all aspects of the Act as soon as possible, once the organisational matters integral to the establishment of the Authority have been finalised.
Last Thursday, Minister English signalled in the Dáil our intention to make a simple but necessary amendment to address a cross-referencing error to a Schedule in the Act . Government has approved the drafting of an amendment at Committee Stage of the Redundancy Payments (Amendment) Bill 2022, which is currently before the Dáil, and which it is hoped will be enacted without undue delay.
In parallel, commencement orders are being drafted to commence the relevant provisions of the Act after its amendment.
The Tánaiste has written to the Chair of the Joint Oireachtas Committee on Enterprise, Trade and Employment regarding the status of establishment of the CEA.
On Garda resourcing, the Garda Commissioner has committed that the members of An Garda Síochána assigned to the CEA will increase from 7 to 16. There are currently 6 members of AGS on secondment to the ODCE (2 Detective Sergeants and 4 Detective Gardaí). In addition, there are a further 4 members of Detective Garda rank on temporary secondment. Discussions are ongoing related to the assignment of these additional resources and on the agreement of a Memorandum of Understanding (MOU) between the Office of the Director of Corporate Enforcement (ODCE) and An Garda Síochána. I expect these discussions to be successfully concluded shortly. There are no further secondment dates fixed, pending successful conclusion of this MoU.
The Tánaiste and I intend to commence all aspects of the Act as soon as possible provided that legal, operational and resourcing matters integral to the establishment of the Authority have been finalised to our satisfaction.
195. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the degree to which his Department continues to attract foreign direct investment; and if he will make a statement on the matter. [7324/22]
Amharc ar fhreagraIreland continues to be an attractive location for foreign direct investment, and IDA Ireland reported strong FDI results in both 2020 and in 2021.
We recognise that the global competition for FDI is intensifying and that we will have to fight, harder than ever before for new investment projects. IDA Ireland's strategy for 2021-2024 informs our response to these challenges. The Strategy is built on the five pillars of Regions, Growth, Transformation, Sustainability and Impact, and it has an ambitious set of targets including 800 investments and 50,000 new jobs.
In 2021 IDA won 249 investments, 104 of which were new name investments. The number of people directly employed in MNCs in Ireland grew to 275,384, with over 29,000 new jobs being created by the sector in 2021. These figures indicate strong investor confidence, as these investment decisions were taken not only within the context of the OECD International Tax negotiations and agreement, but also during a difficult and volatile international environment as a result of both Brexit and the COVID-19 pandemic.
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.
196. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which Irish exports to the UK and the European Union have fluctuated since Brexit; if particular trends are emerging in this regard; and if he will make a statement on the matter. [7326/22]
Amharc ar fhreagraThe Central Statistics Office compiles statistical data in relation to Goods Exports and Imports. These statistics can be found on the website www.cso.ie
According to the CSO, in 2020 the value of goods exports from Ireland to the UK fell by 8% to €14,715 million when compared with 2019. However, in the period January - November 2021 (latest data available) goods exports from Ireland to the UK reached a value of €16,686 million, which is a 25% increase on the same period in 2020.
In 2020, the value of services exports from Ireland to the UK fell by 1% to €35,119 million when compared with 2019. In the period January – September 2021 (latest data available) services exports to the UK reached a value of €28,603 million, which is a 14% increase on the same period in 2020.
In 2020, the value of goods exports from Ireland to EU27 increased by 14% to €64,214 when compared with 2019. In the period January - November 2021 (latest data available) goods exports to EU27 were valued at €56,521, which is a 5% decrease on the same period in 2020.
In 2020, the value of services exports from Ireland to EU27 increased by 12% to €74,714 million when compared with 2019. In the period January – September 2021 (latest data available) the value of services exports from Ireland to EU27 reached a value of €64,146 million, which is a 23% increase on the same period in 2020.
There are a number of factors contributing to fluctuations in trade with both the UK and EU27, including the challenges of complying with customs requirements associated with Brexit, and the impact of the COVID-19 pandemic. My Department continues to monitor the performance of the import and export sectors as the outlook for exports to the UK, EU27 and rest of the world is being impacted by both Brexit and the ongoing COVID-19 pandemic. The long-term response to Brexit is for companies across all sectors to become more competitive, more innovative and to diversify their export footprint into more international markets.
197. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which the concept of working from home or via digital hubs is being progressed with a view to ensuring the optimum results for employer, employee and the taxpayer; the extent of recent progress in this area; the extent to which the need for flexibility can be recognised by all parties within working from home arrangement; and if he will make a statement on the matter. [7327/22]
Amharc ar fhreagraThe pandemic has presented an opportunity to make a permanent change in the way we work – to make remote and flexible working a bigger part of normal working life with benefits for employers and employees.
In January 2021, my Department published the National Remote Work Strategy. The objective of the Strategy is to ensure that remote work is a permanent feature in the Irish workplace in a way that maximises economic, social and environmental benefits.
The Strategy contains 15 actions which are focused on achieving this objective. There has been significant progress made on the actions to date. I would highlight the following:
- Following public consultation and a review of international best practice, the General Scheme of the Right to Request Remote Work Bill 2022 has been published following Government approval. The new law will set out a clear framework around which requesting, approving or refusing remote work can be based. Pre-legislative scrutiny by the Joint Oireachtas Committee will commence on the 9th of February.
-The publication of the Code of Practice on the Right to Disconnect in April 2021 by the Workplace Relations Commission.
-ConnectedHubs.ie- Ireland’s first national digital hub network- was launched by the Department of Rural and Community Development in May 2021. ConnectedHubs.ie will ultimately link over 400 hubs throughout the country.
- The Connected Hubs Call has awarded funding of €8.9m to 117 remote working hub projects in July 2021 to upgrade Ireland’s remote work infrastructure.
- While National Broadband Plan has been impacted negatively by COVID-19, the Department of Environment, Climate and Communications is continuing to engage with National Broadband Ireland to address the delays that have arisen to ensure that the programme gets back on track and is building momentum month on month.
- The Department of Public Expenditure and Reform has been working with employers in the Civil and Public Service to develop a Blended Working Policy Framework for the Civil Service which will be finalised in early 2022, following engagement with employee representatives.
- My Department is currently developing new Regional Enterprise Plans to 2024 in which there will be a focus on promoting remote working opportunities and investing in infrastructures across the nine regions.
- In October 2021, 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.
198. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he and his Department continue to liaise with the educational sector in order to ensure the ready supply of suitably qualified employees for a competitive workplace; and if he will make a statement on the matter. [7329/22]
Amharc ar fhreagraMy Department and I are aware that it is essential that Irish enterprise has access to high quality, adaptable and flexible talent. In order to meet this demand, my Department and its enterprise agencies work closely with the Department of Further and Higher Education, Research, Innovation and Science, as well as the wider education and training system, with a view to building and retaining a highly skilled indigenous workforce to serve the needs of the economy.
My Department and its enterprise agencies actively participate in Ireland’s responsive national skills "architecture", which aims to ensure that education and training provision is optimally aligned with identified skills needs across the enterprise base.
My Department hosts the Secretariat to the Expert Group on Future Skills Needs (EGFSN), the independent group which advises the Government on the current and future skills needs of Ireland’s economy, and whose membership includes relevant Government Departments, the enterprise development agencies, Ireland’s agencies for Higher Education and Further Education and Training, and representation from the trade union and business communities. The EGFSN forms a key part of this responsive skills architecture.
Through its horizon scanning and thematic studies at sectoral and occupational level, the development of which involves comprehensive engagement with stakeholders across the public sector, enterprise and the education and training system, the work of the EGFSN- together with the labour market intelligence of the Skills and Labour Market Research Unit in SOLAS- helps inform the work of the National Skills Council, which is comprised of the chief skills policy stakeholders from across the public and private sectors.
The membership of this Council, which is serviced by the Department of Further and Higher Education, Research, Innovation and Science, includes the Secretary General of my Department, as well as the Chief Executives of Enterprise Ireland and IDA Ireland. The Council advises on the allocation of resources to address identified and emerging skills needs across the economy, in particular through the National Training Fund, while also working to maximise the responses to these needs by education and training providers.
The work of the Council is also informed by the activities of the network of nine Regional Skills Fora, which work to address the skills needs of regional enterprise by enhancing linkages and engagement between local education and training providers and employers, and by helping employers better understand and access the full range of services available across the education and training system. Enterprise Ireland, IDA Ireland and the relevant Local Enterprise Offices are represented on each of the nine Fora, and advocate on behalf of their respective client companies.
The Fora in particular have facilitated Enterprise Ireland’s Spotlight on Skills workshops, a partnership with the Irish Management Institute, which continue to support employers in understanding and planning for the skills needs of their enterprises, and through subsequent engagement with the Regional Skills Manager, address these needs through local education and training providers. Enterprise Ireland and IDA Ireland also engage on an ongoing basis with education and training providers on behalf of their client companies, and have worked to develop bespoke provision in recent years to meet emerging skills needs, in particular through new Apprenticeship, Skillnet Ireland and Education and Training Board programmes.
199. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of jobs created and retained in the services sectors over the past three years to date; if particular trends have emerged; and if he will make a statement on the matter. [7330/22]
Amharc ar fhreagraFor the three-year period from Q3 2018 until Q3 2021, employment in the services sector has increased from 1.725 million in 2018 to 1.906 million in 2021. This represents an increase of 10.5% or 181,000 jobs over the three-year period. The services sector now accounts for 77.1% of total employment in the country.
Table 1: Persons aged 15-89 years in Employment, Q3 2018 – Q3 2021
|
2018Q3 |
2019Q3 |
2020Q3 |
2021Q3 |
Percentage Growth Q3 2018 - Q3 2021 |
Job Growth Q3 2018 - Q3 2021 |
|
|
All NACE economic sectors |
2,268,900 |
2,323,400 |
2,250,000 |
2,471,200 |
8.9% |
202,300 |
|
Agriculture, forestry and fishing (A) |
104,500 |
99,300 |
98,300 |
107,000 |
2.4% |
2,500 |
|
Construction (F) |
146,500 |
149,800 |
133,700 |
146,300 |
- 0.1% |
- 200 |
|
Wholesale and retail trade, repair of motor vehicles and motorcycles (G) |
300,800 |
300,900 |
302,300 |
310,800 |
3.3% |
10,000 |
|
Transportation and storage (H) |
101,100 |
103,700 |
100,100 |
108,700 |
7.5% |
7,600 |
|
Accommodation and food service activities (I) |
181,200 |
176,700 |
137,200 |
176,700 |
- 2.5% |
- 4,500 |
|
Information and communication (J) |
124,100 |
130,800 |
128,300 |
147,300 |
18.7% |
23,200 |
|
Professional, scientific and technical activities (M) |
134,800 |
132,700 |
140,600 |
164,900 |
22.3% |
30,100 |
|
Administrative and support service activities (N) |
105,200 |
109,200 |
92,100 |
103,100 |
- 2.0% |
- 2,100 |
|
Public administration and defence, compulsory social security (O) |
103,600 |
113,900 |
117,700 |
124,200 |
19.9% |
20,600 |
|
Education (P) |
169,800 |
182,600 |
182,600 |
208,300 |
22.7% |
38,500 |
|
Human health and social work activities (Q) |
281,300 |
290,800 |
288,000 |
306,400 |
8.9% |
25,100 |
|
Industry (B to E) |
284,600 |
294,000 |
298,900 |
307,100 |
7.9% |
22,500 |
|
Industry and Construction (B to F) |
431,100 |
443,800 |
432,700 |
453,400 |
5.2% |
22,300 |
|
Services (G to U) |
1,724,900 |
1,774,700 |
1,715,400 |
1,905,900 |
10.5% |
181,000 |
|
Financial, insurance and real estate activities (K,L) |
100,800 |
114,200 |
123,400 |
137,900 |
36.8% |
37,100 |
|
Other NACE activities (R to U) |
122,300 |
119,200 |
103,000 |
117,600 |
-3.8% |
- 4,700 |
|
Not stated |
8,400 |
5,600 |
- |
- |
-100.0% |
- 8,400 |
Source: Central Statistics Office, Labour Force Survey
The strongest performing services sector during the three-year period was Financial, insurance and real estate with a 36.8% increase or 37,100 additional jobs. The next fastest growing sector was the Education services sector, which increased by 22.7% or 38,500 jobs. The Professional, scientific and technical activities sector increased by 22.3% or 30,100 jobs and the Information and Communication sector increased by 18.7% or 23,200 jobs.
For enterprise agency client companies (i.e., clients of IDA Ireland, Enterprise Ireland and Údarás na Gaeltachta), the latest employment data I can share is for 2020. In the three-year period from 2017 to 2020 employment in Services has grown by 16.4% or 31,881 jobs to reach 225,811 total jobs. The Services sector now accounts for 46.5% of enterprise agency client employment. The agency employment results for all agencies for 2021 will be published by the end of February 2022.
Table 2: Employment in enterprise agency client companies, 2017 - 2020
|
2017 Total Jobs |
2018 Total Jobs |
2019 Total Jobs |
2020 Total Jobs |
% Change 2017-2020 |
Job Growth 2017-2020 |
|
|
Business Services |
35,160 |
38,092 |
40,988 |
42,347 |
20.4% |
7,187 |
|
Financial Services |
32,099 |
32,642 |
34,387 |
34,402 |
7.2% |
2,303 |
|
Information and Communication |
109,601 |
117,697 |
126,275 |
131,276 |
19.8% |
21,675 |
|
Other Services |
17,070 |
17,690 |
19,027 |
17,786 |
4.2% |
716 |
|
Total Services |
193,930 |
206,121 |
220,677 |
225,811 |
16.4% |
31,881 |
Source: DETE, Annual Employment Survey
These results show the remarkable resilience of our services industries despite the severe challenges brought by the pandemic.
As the Deputy will be aware, the Economic Recovery Plan, published last June, sets an ambitious target to exceed pre-crisis employment levels by having 2.5 million people in work by 2024 and in more productive and resilient jobs. The Plan sets out the Government’s commitment to create the right environment for a jobs-led recovery by helping business become more resilient and agile and by supporting people to transition to new jobs in growing sectors of the economy. The Plan commits to further strengthen Ireland’s Skills Framework and architecture to ensure people are supported to secure and remain in sustainable and quality employment through opportunities to reskill and upskill. Accelerating the provision of training, reskilling and upskilling opportunities and increased activation will be pursued through Pathways to Work 2021-2025.
SMEs account for over two thirds of total employment, and as such a strong focus on indigenous SMEs is critical to a jobs-led recovery. The Economic Recovery Plan sets out a two-pronged recovery approach; a focus on domestic SMEs, whilst leveraging and reinforcing the enormous strength and resilience of the Foreign Direct Investment sector in Ireland and its indispensable contribution to job creation and communities across the country. Under Enterprise Ireland’s Regional Enterprise Development Fund, €115 million is being invested in projects to strengthen regional enterprise in all regions and the IDA Ireland will continue to roll-out its regional property programme under its new Strategy, specifically targeting 400 investments to advance regional development.
The Deputy is also aware of the ambition contained in our new National Development Plan, launched at the start of October 2021, which provides substantial investment in the resilience and dynamism of our enterprises, addressing immediate challenges like the ‘tail’ impacts of Brexit and COVID-19, while also preparing enterprises for the longer-term, including climate change and digitalisation.
The twin decarbonisation and digitalisation transition and associated behavioural changes will profoundly alter the economy. Embracing these transitions will also open up substantial new opportunities for businesses and will support significant job creation. Substantial capital investment under the revised National Development Plan and Ireland’s National Recovery and Resilience Plan (NRRP) under the European Recovery and Resilience Facility, with €915 million in first tranche of funding, will be key enablers of balanced regional development, and supporting the digital and green transition.
The enterprise programmes of Enterprise Ireland and IDA Ireland will continue to strengthen growth and employment potential with a particular focus on balanced regional development and smart specialisation, building competitive and innovative regions and enterprises. This includes funding to back collaborative actions at regional and local level, driven by the Regional Enterprise Plans, aided through the Regional Enterprise Development Fund, the Regional Enterprise Transition Scheme, and leveraging European Regional Development Funding and other strategic investments.
200. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which Ireland continues to remain an attractive location for foreign direct investment in both the manufacturing and services sectors; the countries inside or outside the European Union with which Ireland is in direct competition in this regard; and if he will make a statement on the matter. [7332/22]
Amharc ar fhreagraIreland will continue to remain an attractive location for FDI in both the manufacturing and services sectors.
During 2021 IDA Ireland won 249 FDI investments, 104 of which were new name investments. The number of people directly employed in multinational companies in Ireland grew to 275,384, with over 29,000 new jobs being created by the sector in 2021. These figures, which encompass both the manufacturing and service sectors, reveal the confidence of investors in Ireland because these investment decisions were taken not only within the context of the OECD International Tax negotiations and agreement, but also during a volatile international environment as a result of Brexit, the pandemic and a global downturn in FDI.
IDA Ireland recognises that there is global competition for mobile foreign direct investment, and closely monitors competitor locations and the value propositions they offer. Published reports from subject matter experts including EY and FDI Markets, a division of the Financial Times, indicate the top performing countries in Europe for FDI attraction. Ireland features prominently in these rankings, typically alongside far larger countries including the UK, Germany, Spain, France, Poland and the Netherlands. In this context, IDA Ireland strives to ensure that Ireland’s value proposition is the most competitive and relevant to the investment being targeted.
Competition for FDI is intense, with virtually every country in the world seeking new FDI investments. Every single job created in Ireland by an FDI company has been hard won, against competition from a growing number of sophisticated locations. Ireland’s success in attracting a large share of substantive, job creating FDI reflects the country’s strength as a location in which businesses can succeed and grow.
201. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the way it is proposed to assist the hospitality sector which has difficulties accessing employees from outside the European Union by way of work permit and visas; the degree to which the situation can be helped by ensuring the most rapid processing of applications from businesses in the sector; and if he will make a statement on the matter. [7333/22]
Amharc ar fhreagra202. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if a minimum time can be achieved for the turnaround and processing of applications for work permits and visas for non-European Union workers; and if he will make a statement on the matter. [7334/22]
Amharc ar fhreagraI propose to take Questions Nos. 201 and 202 together.
Ireland operates a managed employment permits system maximising the benefits of economic migration and minimising the risk of disrupting Ireland’s labour market. The employment permits regime is designed to facilitate the entry of appropriately skilled non-EEA nationals to fill skills and/or labour shortages in the State, required to develop and support enterprise for the benefit of our economy. However, this objective must be balanced by the need to ensure that there are no suitably qualified Irish/EEA nationals available to undertake the work and that the shortage is a genuine one.
The employment permits system is managed through the operation of the critical skills and ineligible occupations lists which determine employments that are either in high demand or are ineligible for consideration for an employment permit and these lists are subject to twice-yearly evidenced based review.
Each review take accounts of research undertaken by the Skills and Labour Market Research Unit (SOLAS) and the Expert Group of Future Skills Needs (EGFSN), a public consultation process, input from the relevant policy Departments and the Economic Migration Inter-Departmental Group, chaired by my Department.
Since March 2020, my Department has implemented Covid-19 contingency arrangements moving employment permit operations seamlessly to a totally remote working environment, and Ireland was one of the few countries which has managed to keep their employment permit system fully operational throughout the crisis.
From the outset of the crisis, in order to assist the HSE and all other medical providers in the State to respond to, and to assist with, the public health response to the threat of Covid-19, all medical employment permits are expedited with immediate effect.
My Department experienced a significant increase in applications for employment permits in the past year, impacting on processing times. From the start of January to the end of December 2021, some 27,666 applications were received, representing a 69% increase over the same period in 2020 (16,293) and a 47% increase on 2019 (18,811), which itself represented an 11 year high in applications. My Department has issued 16,275 employment permits in 2021, and processed a total of 17,968 applications which represents a significant volume of activity. The impact of this has resulted in a significant backlog, which has increased from 1,000 in April 2021 to approximately c. 10,500 at the end of January 2022, which is now stabilising.
In addition, the extension of categories of employment permits following the latest Review of the Occupational Lists has increased the availability of employment permits for these roles.
Processing times have been impacted by this increase in demand but also because of the HSE cyber-attack. As a result, employment permit applications associated with the July Doctors rotation (which occurs twice yearly in January and July) had to be submitted either manually or through other non-standard methods. This resulted in a significant additional administrative burden in dealing with these applications, requiring staff to be temporarily reassigned to assist in the process and had a direct impact on wider processing times for other permit applications.
The Department recognises the impact delays on the processing times for work permits has for businesses and their workers and has developed a plan of action to reduce processing times built up over the pandemic. My Department has approved a trebling of staff in the employment permits section in order to deal with the increase in applications.
As the plan to deal with this issue is implemented and begins to take effect, we expect to see improvements shortly, with the backlog considerably reduced by the end of Q1 and substantially reduced by the end of Q2 2022.
In addition, further systemic changes have also been introduced. My Department has worked with the Department of Health, the Health Service Executive and the Department of Justice to streamline and extend the time period for General Employment Permits (GEP) issued to doctors. A new two-year multi-site GEP for Medical Doctors in Public hospitals and Public health facilities was introduced in respect of the January 2022 Doctors rotation. This will result in significant benefits for applicants, as well as major efficiencies for the Employment Permits Section, by eliminating the necessity to apply for additional employment permits when moving to a different Public hospital or Public health facility within this two year period.
The Department provides regular updates on its website in relation to processing times and engages directly with key stakeholders including the IDA, Enterprise Ireland, AmCham, IBEC, representative groups and individual companies, as required.
Applicants can keep track of Employment Permit applications current processing dates at enterprise.gov.ie/en/What-We-Do/Workplace-and-Skills/Employment-Permits/Current-Application-Processing-Dates
The Management Board of my Department is overseeing the implementation of the plan of action and its impact on the backlog and waiting times.
The administration and processing of Visas is a matter for the Department of Justice.
203. Deputy Brendan Smith asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will increase the minimum wage in view of the severe pressures on low-income workers at present due to rising costs of living; and if he will make a statement on the matter. [7362/22]
Amharc ar fhreagraI am aware of the pressures people are feeling as the cost of living increases. I know that many costs have increased sharply and that those on lower incomes are being disproportionately affected.
Relevant Government Departments have been tasked with developing proposals for a package to help families with the cost of living and my Government plans to finalise this package shortly.
In relation to the minimum wage, since its establishment in 2015, the Low Pay Commission has been responsible for making annual recommendations to Government on the appropriate rate of the National Minimum Wage.
Since the establishment of the Low Pay Commission, the national minimum wage has increased from €8.65 per hour to €10.50 per hour between 2016 and 2022, a 21.4% increase. This compares with an increase in consumer prices of 7% in the 6 years to December 2021. The Minimum Wage has increased substantially in real terms over recent years.
The share of workers on the minimum wage in Ireland has also fallen consistently since the establishment of the Low Pay Commission. The share of workers on the minimum wage or less as a percentage of the total labour force has reduced from 9.3% in Q4, 2016 to 6.8% in Q4, 2020.
The Low Pay Commission is made up of an equal number of employer representatives, employee representatives, and independent members which helps to provide a balanced view when determining an appropriate rate for the National Minimum Wage. In addition, the establishing legislation requires the Low Pay Commission to give consideration to a range of issues when arriving at a recommendation for the appropriate National Minimum Wage rate. These issues include the cost of living, competitiveness and the likely effect that any proposed recommendation will have on future levels of employment.
When considering increases in the National Minimum Wage during a period of inflation Government must be is conscious of the need to avoid second round effects or a wage-price spiral.
That being said, I have been clear in my commitment to improving pay and terms and conditions for everyone, but particularly for those on low pay.
In 2021, I asked the Low Pay Commission to examine and make recommendations on the best approach to achieving the programme for Government commitment to progress to a living wage over the lifetime of the Government.
The Low Pay Commission commissioned and received a background technical research report on the concept of a living wage. The Commission is currently evaluating this research and is due to report their findings and recommendations to me in the coming months. These recommendations will inform Government on the best approach to progressing to a living wage.
I am committed to progressing to a living wage over the lifetime of this Government. In doing so, we need to recognise that many businesses have been badly affected by the pandemic and are also facing rising costs. We need to make sure that we proceed in a way that does not adversely affect inflation or cause jobs to be lost, either in terms of the numbers of people employed, or the numbers of hours worked. To do so would be counterproductive.
