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Thursday, 27 Oct 2022

Written Answers Nos. 21-40

National Minimum Wage

Ceisteanna (21)

Paul Murphy

Ceist:

21. Deputy Paul Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will support increasing the national minimum wage to €15 an hour in order that it becomes a living wage in the context of the cost-of-living crisis. [53851/22]

Amharc ar fhreagra

Freagraí scríofa

We want to reward work and ensure that work pays more. Minimum wage workers are among the hardest working people in Ireland and deserve to paid more particularly at a time or rising prices.

In September, the Government agreed to accept the Low Pay Commission’s recommendation to increase the National Minimum Wage by 80 cent to €11.30 from the 1st of January 2023. At least 164,000 people, possibly more, are estimated to be in line for this increase, with many others on slightly higher pay levels also getting a knock-on increase.

That works out at an extra €30 per week, around €120 a month or €1,664 a year if you’re working full-time.

Ireland has a well-established system for setting the minimum wage based on the Low Pay Commission and this system works well.

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. The Government respects the Commission and its independence.

As the Deputy is aware, Government want to move from a minimum wage to a living wage so that work pays more, and people will have more money in their pockets.

Proposals for this were outlined in June, after which we started a public consultation seeking submissions from the public on the Low Pay Commission’s recommendations and on a ‘strawman proposal’ which provided an illustrative example of how a living wage might be phased in over a 4-year timeframe. The public consultation closed in August. It received 46 submissions which are now being reviewed and analysed.

The work of an interdepartmental working group and the public consultation results will inform a final Government decision on the adoption of a living wage over a specified number of years. We expect to be able to make an announcement on this over the coming weeks.

The new National Minimum Wage of €11.30 is in line with the living wage strawman proposal. As such, next year can be considered the first year of a proposed four-year path towards reaching the living wage of 60% of the median wage.

Work Permits

Ceisteanna (22)

Aindrias Moynihan

Ceist:

22. Deputy Aindrias Moynihan asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures that are being taken to address the shortage of care workers in Ireland; when work permit arrangements for non-EU-EEA citizens will be put in place to include care workers under the eligible occupations list; and if he will make a statement on the matter. [53779/22]

Amharc ar fhreagra

Freagraí scríofa

The occupation of Nursing Auxiliary or Health Care Assistant working in hospital or residential home care settings has been eligible for a General Employment Permit since June 2021.

The occupation of Home Care Worker working in private homes is currently ineligible for an employment permit.

The cross-departmental Strategic Workforce Advisory Group was established by the Minister of State for Mental Health and Older People, Mary Butler, in March 2022. The Group was charged with examining strategic workforce challenges in publicly and privately provided front-line carer roles in home support and nursing homes and with making recommendations to address these.

The Group, which was chaired by the Department of Health, comprised representatives from several government departments and agencies, including my Department and the Report of the Group was published on 15 October.

The Report includes 16 recommendations spanning the areas of recruitment, pay and conditions of employment, barriers to employment, training and professional development, sectoral reform, and monitoring and implementation.

It recommends that home-support workers should be made eligible for an Employment Permit.

To this end, I and officials in my Department will work with the Department of Health on the regulations necessary to give effect to this recommendation as soon as possible.

Furthermore, the Report recommends that the arrangement for employment permits for home support workers should replicate those currently in place for healthcare assistants in nursing homes, and in addition recommends an upper threshold of 1,000 work-permits; a stipulation for a minimum two-year contract; a minimum salary for home-support workers of €27,000 per annum based on a 39-hour week; and a minimum continuous shift-length per working day of 4 hours.

Renewable Energy Generation

Ceisteanna (23)

Alan Farrell

Ceist:

23. Deputy Alan Farrell asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will detail engagement with Government colleagues regarding renewable sources of energy for businesses; and if he will make a statement on the matter. [53386/22]

Amharc ar fhreagra

Freagraí scríofa

Putin’s war on Ukraine has highlighted the vulnerability of becoming too reliant on finite resources controlled by other states.

While weaning ourselves off coal, oil and gas is a global challenge, it also presents incredible opportunities for Ireland, specifically electricity generated by offshore wind, backed up by battery storage and interconnection, and of course, green hydrogen. The Shannon Estuary Economic Taskforce is currently looking at those opportunities for the Mid-West.

We will help businesses reduce their reliance on fossil fuels and invest in energy efficiency in the coming years through government grants and loans.

For example, the Green Transition Fund administered by Enterprise Ireland and IDA Ireland, is targeted at companies of different sizes and at all stages of their zero-carbon journey. It gives businesses funding to come up with a tailored plan to identify how they can save energy and remove reliance on fossil fuels. The Enterprise Emissions Reduction Investment Fund also provides capital funding for transformative decarbonisation investment in our manufacturing sectors, which will be amongst the businesses facing highest energy costs.

The electrification of industrial heat requirements, in conjunction with an increase in renewable generation, will allow businesses achieve a large reduction in emissions. We also believe that decarbonised gas such as biogas or biomethane, alongside hydrogen in the future, can enable those businesses with very high temperature need in their manufacturing processes to achieve emission reductions where electrification is not an immediate viable solution.

My department is engaged in a wide range of initiatives and working groups across Government and industry which focus on renewable energy deployment. For instance, we are part of the Offshore Energy Delivery Taskforce, chaired by Minister Ryan, which will make significant progress in accelerating the delivery of offshore wind, and is crucial to our future energy security of supply. This group will also help to ensure that Offshore Wind can secure long term economic and business opportunities.

Work Permits

Ceisteanna (24)

Pádraig O'Sullivan

Ceist:

24. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment when he recently reviewed the critical skills list; his plans to expand the list to address skills shortages in Ireland; and if he will make a statement on the matter. [53671/22]

Amharc ar fhreagra

Freagraí scríofa

Ireland operates a managed employment permits system maximising the benefits of economic migration and minimising the risk of disrupting Ireland’s labour market.

The 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 an employment permit where there is a surplus of those skills in the domestic and EEA labour market. In order to maintain the relevance of these lists of occupations to the needs of the economy and to ensure the employment permits system is aligned with current labour market intelligence, these lists undergo evidence-based reviews which are guided by research undertaken by the Expert Group on Future Skills Needs (EGFSN), the Skills and the Labour Market Research Unit (SLMRU), SOLAS and by a public consultation.

Account is taken of education outputs, sectoral upskilling and training initiatives and known contextual and their impact on the labour market. Consideration is also taken of the views of the Economic Migration Interdepartmental Group, chaired by my Department and of the relevant policy Departments.

The most recent full review concluded on 27th October 2021.

The Department continues to keep the employment permits system under review in light of changing labour market circumstances and the timing of the next Review of the Occupational Lists will be kept under consideration.

Energy Prices

Ceisteanna (25, 30, 41)

Matt Shanahan

Ceist:

25. Deputy Matt Shanahan asked the Tánaiste and Minister for Enterprise, Trade and Employment if there are any plans to consider sector-specific additional support in view of the continuing energy price inflation for the SME sector. [53878/22]

Amharc ar fhreagra

Peadar Tóibín

Ceist:

30. Deputy Peadar Tóibín asked the Tánaiste and Minister for Enterprise, Trade and Employment if his attention has been drawn to instances where small businesses have opted to close their doors as a result of the cost-of-energy crisis; and the supports that are available to SMEs struggling to pay electricity or gas bills. [53651/22]

Amharc ar fhreagra

Matt Shanahan

Ceist:

41. Deputy Matt Shanahan asked the Tánaiste and Minister for Enterprise, Trade and Employment the location in which medium-sized SMEs can access additional grants to offset energy bills that far exceed the €10,000 monthly grant. [53881/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 25, 30 and 41 together.

I wish to reassure the Deputy that this Government is very aware of the difficulties that businesses are facing due the current energy crisis.

Businesses now require help with their energy bills and that is why a significant package to help businesses with escalating energy costs and to plan for the future was announced in Budget 2023.

The Temporary Business Energy Support Scheme, to be administered by Revenue, is being designed to support eligible businesses that have experienced a significant increase in their electricity and/or natural gas costs. It will apply to trades, professions and 'new businesses' and will be finalised as part of the Finance Bill which is progressing through the Houses.

Additionally, the new €200 million Ukraine Enterprise Crisis Scheme for manufacturing and internationally traded firms will provide up to €500,000 per firm to ensure there is sufficient liquidity available in the markets and up to €2 million per firm for energy intensive business.

A new €1.2 billion State-backed Ukraine Credit Guarantee Scheme will assist the wider business sector with liquidity and to invest in energy efficiency. Government approval was secured earlier this week to publish the legislation to underpin this which we will bring through the Oireachtas in the coming weeks. A new State-backed Growth and Sustainability Loan Scheme will also be opened next year.

The reduced rate of VAT on gas and electricity from 13.5% to 9% has also been extended until the 28th February 2023.

The Government will keep the energy situation under constant review, and we will continue to examine what measures are possible to manage the impact of rising energy prices.

Job Creation

Ceisteanna (26)

Brendan Griffin

Ceist:

26. Deputy Brendan Griffin asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of new IDA jobs per county since 2020; and if he will make a statement on the matter. [53872/22]

Amharc ar fhreagra

Freagraí scríofa

We’ve worked hard to create a welcoming environment for FDI in all parts of the country and the strong regional spread of jobs and investment in the latest IDA results demonstrates government policy. Over half of investments in 2021 went to regional locations.

With inflation, Putin’s war on Ukraine, increased international competition for FDI and climate change and digital technology creating the impetus for rapid and transformational change, we cannot afford to be complacent. We never take this investment for granted and will continue to work hard to remain an attractive location for investment in the years to come. We are currently reviewing our overall enterprise policy, which has been a resounding success to date, and will continue to constantly self-evaluate to make sure we remain competitive and an attractive place to create jobs.

Half of all investments from 2021- 2024 will be targeted to regional locations under IDA’s current strategy.

IDA Ireland's results for 2021, showed that total employment in IDA client companies in Ireland now stands at 275,384, up 16,826 on 2020, the highest Foreign Direct Investment (FDI) employment level ever. Employment growth was recorded in every region of the country.

The number of new IDA jobs per county since 2020 is shown in the table below.

County

-

2020

2021

Cavan

Total Jobs

781

862

New Jobs Created

30

94

Donegal

Total Jobs

3,794

3,647

New Jobs Created

39

1,360

Leitrim

Total Jobs

962

1,050

New Jobs Created

50

129

Monaghan

Total Jobs

447

430

New Jobs Created

92

30

Sligo

Total Jobs

2,511

2,732

New Jobs Created

288

387

Kildare

Total Jobs

9,264

9,748

New Jobs Created

919

609

Louth

Total Jobs

4,242

4,588

New Jobs Created

355

558

Meath

Total Jobs

1,853

1,911

New Jobs Created

212

130

Wicklow

Total Jobs

2,602

2,647

New Jobs Created

217

69

Clare

Total Jobs

6,789

6,924

New Jobs Created

821

650

Limerick

Total Jobs

13,021

13,824

New Jobs Created

787

1,140

Tipperary

Total Jobs

4,285

4,522

New Jobs Created

167

346

Laois

Total Jobs

136

157

New Jobs Created

42

21

Longford

Total Jobs

1,125

1,310

New Jobs Created

49

186

Offaly

Total Jobs

1,232

1,302

New Jobs Created

109

151

Westmeath

Total Jobs

3,772

4,099

New Jobs Created

179

381

Carlow

Total Jobs

1,309

1,477

New Jobs Created

115

178

Kilkenny

Total Jobs

705

837

New Jobs Created

91

133

Waterford

Total Jobs

8,266

8,868

New Jobs Created

449

777

Wexford

2. Total Jobs

3,588

3,750

New Jobs Created

209

285

Cork

Total Jobs

44,107

45,604

New Jobs Created

4,065

3,416

Kerry

Total Jobs

2,168

1,968

New Jobs Created

69

50

Galway

Total Jobs

21,286

22,801

New Jobs Created

1,469

2,536

Mayo

Total Jobs

5,033

5,145

New Jobs Created

271

178

Roscommon

Total Jobs

1,374

1,473

New Jobs Created

120

110

Dublin

Total Jobs

113,906

123,708

New Jobs Created

12,202

15,153

Employment Support Services

Ceisteanna (27)

Pauline Tully

Ceist:

27. Deputy Pauline Tully asked the Tánaiste and Minister for Enterprise, Trade and Employment the actions that he has taken to support and promote self-employment as a viable option for people with disabilities; and if he will make a statement on the matter. [53852/22]

Amharc ar fhreagra

Freagraí scríofa

The Local Enterprise Offices (LEOs) are the ‘first-stop-shop’ for advice and guidance, financial assistance and other supports for everybody, including people with disabilities, intending to start or grow a business.

In that regard, the LEOs provide a ‘signposting’ service in relation to all relevant State supports available through agencies such as the Department of Social Protection, Revenue, Education and Training Boards, the Credit Review Office and Microfinance Ireland.

All entrepreneurs can avail of LEO training, mentoring and management development programmes. Furthermore, LEOs can provide additional support to entrepreneurs with disabilities such as one to one mentoring or accommodations to assist with the completion of grant application forms or to complete training courses such as Start Your Own Business.

Direct LEO grants are available to all entrepreneurs whose businesses meet the eligibility criteria including operating in manufacturing or internationally traded services.

Enterprise Ireland is focused on ensuring that supports for entrepreneurs and enterprise are accessible to all, including people with disabilities. Enterprise Ireland continues to invest in additional content, available on eiLearn (eilearn.ie/) and are working in conjunction with stakeholders in the LEOs and third level colleges to develop new programmes and initiatives.

In addition to the above, the Department of Social Protection can provide specific supports to help people with disabilities to find and keep employment, including self-employment. The Back to Work Enterprise Allowance (BTWEA) scheme encourages people in receipt of certain social welfare payments to become self-employed. If a person takes part in the BTWEA scheme they can keep a percentage of their social welfare payment for up to 2 years.

Trade Agreements

Ceisteanna (28)

Matt Carthy

Ceist:

28. Deputy Matt Carthy asked the Tánaiste and Minister for Enterprise, Trade and Employment the current status of the EU-Mercosur Trade Agreement; and if he will make a statement on the matter. [53596/22]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy will be aware, the EU reached political agreement in their trade negotiations with the Mercosur region in June 2019. The Agreement is designed to cement the close political and economic relations between the EU and Mercosur countries and represents a commitment from both regions to rules-based international trade.

The independent impact assessment commissioned by my Department, and published in 2021, concluded that Irish exports to the Mercosur market would be expected to be 17% higher in 2035 under the terms of the Agreement.

However, we have some well-known concerns regarding climate change and the environmental impact of the extensive forest fire we have seen in the Amazon. I have raised these concerns at all political levels, including through my engagement with the Commission and with Trade Minister colleagues in Council.

It is on the basis of these concerns, raised by Ireland and other Member States, that the Commission and the European External Action Service (EEAS) are engaged with the Mercosur countries on negotiating further enforceable commitments on climate and deforestation. Enforceable commitments on matters relating to trade and sustainable development, including environmental and deforestation protections, must be added to the Agreement and we support the work of the Commission and particularly Executive Vice-President Dombrovskis in negotiating additional text. It is anticipated that the draft sustainability protocol will be presented to Member States before the end of the year.

When the final text is presented to Member States, including the additional commitments sought from Mercosur, our position will depend on our assessment of these additional climate and environmental enforcement provisions, as well as the findings of the Economic and Sustainability Impact Assessment, which was commissioned in line with the Government’s stated commitments as part of the formation of Government in 2020 and published in July 2021.

Work Permits

Ceisteanna (29)

Martin Kenny

Ceist:

29. Deputy Martin Kenny asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will provide a breakdown of the number and category of employment permits that have been granted by his Department since January 2022; and if he will make a statement on the matter. [53744/22]

Amharc ar fhreagra

Freagraí scríofa

Ireland operates a managed employment permits system maximising the benefits of economic migration and minimising the risk of disrupting Ireland’s labour market.

The system is vacancy led and designed to accommodate the arrival of non-EEA nationals to fill skills and labour gaps for the benefit of our economy, in the short to medium term, and is managed through the operation of the Critical Skills and Ineligible Occupations Lists which determine roles that are either in critical short supply or are ineligible for an employment permit.

The tables attached show the number and category of employment permits that have been granted by my Department from 1st January 2022 to 20th October 2022. Also shown below is a breakdown of the number of permits issued by economic sector for your information.

Permit Type

Total

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Contract for Services Employment Permit

53

0

1

8

0

7

5

22

1

4

5

Critical Skills Employment Permit

17,660

1,199

1,720

2,480

1,612

1,667

1,433

1,916

2,088

2,324

1,221

Dependant/Partner/Spouse Employment Permit

18

1

1

1

2

2

4

6

0

0

1

Exchange Agreement Employment Permit

20

11

1

0

4

3

0

1

0

0

0

General Employment Permit

13,612

1,019

695

818

2,027

1,938

2,370

1,634

1,366

938

807

Internship Employment Permit

40

0

1

1

0

5

8

11

9

2

3

Intra-Company Transfer (Training) Employment Permit

67

0

1

2

2

45

0

8

1

2

6

Intra-Company Transfer Employment Permit

1,587

42

105

140

348

318

26

319

47

134

108

Reactivation Employment Permit

54

3

5

2

3

3

10

10

8

5

5

Sport and Cultural Employment Permit

132

3

9

6

14

8

21

29

17

14

11

Grand Total

33,243

2,278

2,539

3,458

4,012

3,996

3,877

3,956

3,537

3,423

2,167

Grand Total

2022

Economic Sector

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

A - Agriculture, Forestry & Fishing

4,115

146

149

274

1,407

877

708

216

140

121

77

B - Mining & Quarrying

12

5

1

2

0

0

1

0

1

0

2

C - All Other Manufacturing

516

15

36

50

53

47

45

111

55

67

37

C - Manufacture of Chemicals & Pharmaceuticals

521

30

49

55

70

46

24

64

69

66

48

C - Manufacture of Computers, Electronics & Optica

513

5

48

55

87

104

29

71

40

45

29

C - Manufacture of Food, Drink & Tobacco

325

8

17

43

105

31

34

30

18

26

13

C - Manufacture of Medical Devices

263

8

17

26

28

58

10

25

35

37

19

D - Electricity & Gas & Air Conditioning Supply

164

4

9

18

16

19

14

21

30

21

12

E - Water Supply - Sewerage Waste Management & Rem

18

1

4

0

2

1

1

2

3

2

2

F - Construction

1,215

81

136

127

109

131

157

132

110

106

126

G - Wholesale & Retail Trade

256

9

22

33

34

30

19

26

33

25

25

H - Transport & Storage

394

13

21

45

75

59

16

24

46

47

48

I - Accommodation & Food Services activities

2,141

51

123

175

172

303

441

219

274

228

155

J - Information & Communication Activities

9,296

442

934

1,260

872

1,064

761

1,236

1,041

1,090

596

K - Financial & insurance Activities

2,722

143

230

379

234

226

198

300

375

420

217

L - Real Estate Activities

19

1

0

1

3

1

2

2

1

5

3

M - All other Professional, Scientific & Technical

756

13

70

64

56

92

90

122

76

95

78

M - Professional, Scientific&Technical Activities

335

10

44

69

23

32

19

42

40

39

17

N - Administrative & Support Service Activities

70

2

11

8

7

5

8

8

12

4

5

O - Public Administration & Defence

36

0

4

4

6

5

4

3

4

2

4

P - Education

157

18

13

15

13

16

14

15

23

19

11

Q - Health & Social Work Activities

7,866

1,213

461

564

496

703

1,141

1,101

930

750

507

R - Arts , Entertainment and Recreation

267

4

14

18

29

22

37

46

52

21

24

S - Other Service activities

1,264

56

126

173

115

123

104

140

129

187

111

T - Domestic- Activities of Households as Employer

2

0

0

0

0

1

0

0

0

0

1

Grand Total

33,243

2,278

2,539

3,458

4,012

3,996

3,877

3,956

3,537

3,423

2,167

Question No. 30 answered with Question No. 25.

Work Permits

Ceisteanna (31)

Colm Burke

Ceist:

31. Deputy Colm Burke asked the Tánaiste and Minister for Enterprise, Trade and Employment the considerations that have been given towards merging or streamlining the employment permit and visa application processes; and if he will make a statement on the matter. [53592/22]

Amharc ar fhreagra

Freagraí scríofa

Ireland has a clear division between economic migration and general immigration policies and thus an applicant for an employment permit undergoes a separate application process with Immigration Service Delivery of the Department of Justice for immigration permission and visas to work in the State.

Much has already been done to improve the employment permit system administratively and my department is always focused on improving the service, with initiatives such as the Trusted Partner Registration system and the introduction of the electronic permit and the Multi-Site general employment permit for Doctors.

An overhaul of the processing system is currently underway so that new IT procedures can be developed in tandem with the new legislation. The development of this new IT processing system will take advantage of all the new technologies available.

The Employment Permits Bill 2022 is designed to increase agility, enabling the employment permits system to more quickly respond to both growth and contraction in labour demand, and to align the criteria for employment permits to the changing needs of the economy by restructuring the legislation to ensure that the system’s operational details and processes are prescribed in Regulations, as opposed to primary legislation.

The policy underlying the economic migration system is one where the system should deliver the skills and labour needs in the economy, while prioritising the Irish and EEA labour pool. The proposed changes are intended to improve the system’s flexibility without changing this core goal.

In terms of the operation of the economic migration system more generally, my Department co-operates closely with the Department of Justice where responsibility for immigration matters intersect with the economic migration system, however The Minister for Justice has responsibility for visa application processes and streamlining of these.

Enterprise Support Services

Ceisteanna (32)

Brendan Griffin

Ceist:

32. Deputy Brendan Griffin asked the Tánaiste and Minister for Enterprise, Trade and Employment the position regarding the advance technology building for Tralee; and if he will make a statement on the matter. [53871/22]

Amharc ar fhreagra

Freagraí scríofa

The IDA’s property investment in the regions is aimed at supporting economic development and job creation across IDA’s, Enterprise Ireland and local LEO’s respective client base. It is crucial that the South-West region has a competitive, sustainable property offering to enable the attraction and retention of investment and jobs.

IDA Ireland is committed to building a new (second) Advanced Technology Building in Tralee. On the 6th of July 2022, IDA Ireland announced that it has signed Heads of Terms with Shannon Commercial Enterprises DAC to progress with the acquisition of the remaining lands at Kerry Technology Park, Tralee. Progress on this IDA land acquisition is ongoing.

IDA Ireland is proposing to identify a site within the land bank to accommodate the construction of an Advance Building Solution as announced as part of the IDA Strategy Driving Recovery & Sustainable Growth 2021 – 2024.

There are 218 IDA client companies in the South-West Region, employing 47,572 people. The FDI performance in the region has been consistent over the past five years with employment among IDA clients increasing by 25%. The South-West has a significant ecosystem of well-established companies across Technology, Life Sciences, International Financial Services and Engineering & Industrial Technologies.

IDA Ireland is targeting 118 investments for this region over the period of the current strategy Driving Recovery & Sustainable Growth 2021 – 2024. This significant investment by IDA Ireland in the South-West Region aims to future-proof the property offering in attracting Foreign Direct Investment (FDI) to the region and to Kerry in particular.

The completion of the building Tralee is dependent on completion of the various stages of site selection, design and a statutory planning process and subject to IDA Board approval. The specific dates for construction commencement are wholly dependent on and subject to the successful outcome of these processes. I am informed that IDA Ireland will use its best endeavours to deliver the building in a timely manner as per the strategy objectives.

Departmental Strategies

Ceisteanna (33)

Richard Bruton

Ceist:

33. Deputy Richard Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment if his Department is developing sectoral strategies; and if he will make a statement on the matter. [53402/22]

Amharc ar fhreagra

Freagraí scríofa

My Department, in conjunction with other Departments and state bodies, monitors sectors to anticipate needs and realise emerging opportunities. The latest series of sectoral reports, "Focus on Sectors 2020", was published in August 2020, which presented concise overviews of 16 key sectors of the economy, encompassing both exporting and locally trading activities, and outlined some initial indications of the impact of COVID-19 on these sectors.

In addition, my Department is currently prioritising our work on the White Paper on Enterprise due by December this year and, therefore, is not developing parallel sectoral strategies at this time. However, I should highlight that the enterprise development agencies, both under my own Department's remit and those under the remits of other Departments, continue to work with their client companies and sectors on appropriate strategies having regard to both the general global challenges they face, as well as, in some cases, unique sectoral issues.

All Department and Agencies continue to actively review their supports and interventions in light of the particular challenges posed by the global inflation crisis, including energy costs, the post-COVID recovery needs, the post-Brexit trade and investment relationship with the UK, the imperatives of the twin green and digital transitions and, of course, the economic consequences of the Russian invasion of Ukraine. In particular, at Government level, we introduced in last month's budget a number of specific business and employment support measures, including the:

- €1.25 billion Temporary Business Energy Support Scheme

- €200 million Ukraine Enterprise Crisis Scheme

- €1.2 billion Ukraine Credit Guarantee Scheme

- €500 million Growth and Sustainability Loan Scheme.

These measures recognise the latest challenges for business arising from the rising cost of doing business, such as energy, and demonstrate this Government's continuing support for businesses and employment.

EU Directives

Ceisteanna (34, 39)

David Stanton

Ceist:

34. Deputy David Stanton asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will outline his position regarding the EU Commission's proposal for a directive on corporate sustainability due diligence; and if he will make a statement on the matter. [53411/22]

Amharc ar fhreagra

Paul Murphy

Ceist:

39. Deputy Paul Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment his Department's position on the proposed EU corporate sustainability due diligence Directive, including the size of the companies that should be covered, applicability to the whole value chain and to pension funds and alternative investment funds; and if the Government will move to legislate on these issues in advance of the Directive as some other EU countries are doing. [53849/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 34 and 39 together.

A proposal for a Directive on Corporate Sustainability Due Diligence (CSDD) was published by the European Commission on 23rd February 2022 and addresses corporate behaviour and due diligence processes for the companies within its scope. The proposal focuses on establishing a system within company law and corporate governance to address adverse human rights and environmental impacts arising from companies' own operations, their subsidiaries' operations and their value chains.

At the outset, I wish to state that Ireland is supportive of the objective of the proposed Directive which should promote responsible business conduct and is seeking to ensure that the proposals strike the right balance by providing effective protections whilst ensuring that the measures to be implemented by companies are clear, proportionate, and enforceable.

The proposal will apply to large companies, both EU and non-EU. Ireland considers that these thresholds are appropriate. I am aware of some criticism that the proposal only includes approximately 1% of EU companies. However, it should be noted that this cohort of companies accounts for about 50% of the annual turnover of all companies within the EU. Rather than a focus on the number of companies, it is important to ensure that the right companies are in scope i.e. those companies who have the potential to have significant adverse impacts on human rights and environmental matters and through their actions have the ability to effect real change on such matters in their value chains.

Obviously, suppliers of those companies, many of which will be SMEs, would also be impacted as large companies conduct due diligence on their suppliers. I am also mindful of the regulatory burden placed on small and medium sized companies. Research on regulatory burdens and compliance costs indicates that where a large company may spend one euro per employee to comply with a regulatory duty, a medium-sized enterprise might have to spend around four euros and a small business up to ten euros. As 92% of Irish companies are micro-enterprises employing less than 10, and a further 6.8% of businesses employ between 10 and 49, one-size-fits-all regulatory compliance requirements can place these firms at a disadvantage to large multinational companies.

The proposal has the potential to be far reaching and it is vital that we get it right. Good progress has been made in the discussions to date at EU level but further work is needed to clarify aspects of the proposal, ensure that the practical implications are well understood and that the obligations on companies are reasonable and effective. By way of example, there has been relatively little discussion on financial sector aspects of the proposal and clarification has been sought on the interaction of the proposal with the suite of existing regulation in the financial sector. Fundamental Issues relating to scope and definitions remain and are currently under discussion.

There is considerable interest in the proposal across a wide range of interests and my Department has been actively engaging with stakeholders including civil society organisations and business representative organisations since the proposal was published. Officials in my Department have met with members of the Irish Coalition for Business and Human Rights and with the UN Special Rapporteur on Human Rights Defenders the latest of which was two weeks ago. I myself will also be meeting with both groups in the coming weeks.

My Department continues to actively engage in detailed discussions at EU working party. It is considered that more time is needed for these discussions in order to achieve the clarity and legal certainty that is needed to ensure that companies’ obligations and stakeholders’ rights are clear. My Department will conduct a public consultation in the coming months once sufficient progress has been made in these discussions.

A number of Member States have progressed national initiatives in this area. However, legislative initiatives in this area are best progressed at EU level in recognition of the complex, international nature of many supply chains and to ensure harmonisation, promote policy coherence and avoid the risk of fragmentation within the EU single market. For these reasons, Ireland is supportive of introducing legislation on these matters on a cross EU basis rather through unilateral domestic legislation.

I am ambitious for this proposal and am keen to ensure that the final Directive that is agreed is a “game changer” and positions the EU to the fore, globally, in relation to responsible business conduct.

Enterprise Support Services

Ceisteanna (35)

Alan Dillon

Ceist:

35. Deputy Alan Dillon asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will provide an update on IDA activities in County Mayo; and if he will make a statement on the matter. [53897/22]

Amharc ar fhreagra

Freagraí scríofa

The IDA Ireland has frequent engagement with client companies and stakeholders in County Mayo, with regular interaction, including in person when beneficial. IDA Ireland continues to market Mayo as part of the West Region for investment from both the existing base of client companies and potential new name investments.

In 2021 the West Region was home to 120 IDA supported companies, employing 29,419 people in total, that is up 6% on the previous year. The 2021 figures show a pattern of sustained, robust growth in FDI investment and FDI-related employment over a continuous period of more than ten-years. These results represent a strong start to IDA’s new 2021-2024 strategy, Driving Recovery and Sustainable Growth, which seeks to further enhance FDI’s place at the centre of a resilient, sustainable, and inclusive Irish economy. IDA Ireland will target 76 investments for the West Region over the period of this strategy.

There are currently 16 IDA supported companies in Mayo employing 5,145 directly. The FDI performance in the Region has been strong over the past five years with employment among IDA clients increasing by 32%. There is a significant ecosystem of well-established Life Sciences companies, which has helped drive strong cluster development. The number of people employed in software engineering, technical support, global business services and R&D in the Region has also grown considerably in recent years. The city of Galway is a crucial part of the West’s attractiveness to FDI.

IDA’s property investment programme for the West Region included the construction of Advance Building Solutions (ABS) in Castlebar, Co. Mayo and in Galway. An Advance Office Building (AOB) of c.45,000sqft was completed in 2018 in Parkmore, Galway, which was delivered through a PPP model. The ABS in Parkmore, Galway is now completed and is currently being marketed. The ABS in Castlebar was acquired by Meissner Filtration, a California headquartered company, who announced the creation of 150 jobs in 2019.

As the Deputy is aware, under their new property programme over 2021-2024, IDA will deliver an additional Advance Building Solution in Castlebar and continue to engage with Mayo County Council to progress a partnership to develop additional business park and strategic lands for future development. The Agency will also work in partnership with Mayo County Council to develop access infrastructure to lands in Ballina.

IDA Ireland continues to market Mayo and the West through its overseas offices to target mobile FDI opportunities and will arrange corresponding site visits as required. IDA positions the West Region as home to the leading cluster of Life Sciences industries and a growing technology cluster, and will be targeting Lifesciences, Medical Devices, Financial Services and Technology sectors for investment opportunities in RD&I, advanced manufacturing, global business services and technology development.

The IDA is also represented on the West Regional Skills Forum, the aim of the Forum is to support and facilitate communication and engagement between enterprise and third level education providers in the identification, development and delivery of skills required for Galway, Mayo and Roscommon. The West Regional Skills Forum is a collaborative forum comprised of representatives from education and training provider groups namely National University Ireland Galway (NUI Galway), Atlantic Technological University Galway (ATU Galway), Galway Roscommon Education & Training Board (GRETB) , Mayo Education & Training Board (MSLETB), Skillnets, and Intreo working in partnership with industry representative groups and state agencies IDA Ireland, Enterprise Ireland, IBEC, Western Development Commission, Údarás na Gaeltachta, Fáilte Ireland, Local Enterprise Offices, Construction Industry Federation, Teagasc, Chambers of Commerce, American Chamber. The Forum is industry led with representation across multiple industry sectors in four working groups at present - Industry 4.0 (with a focus on Life Sciences), Sales Professionals Network, Technology and Wood & Furniture Manufacturing.

Transport Policy

Ceisteanna (36)

Brian Leddin

Ceist:

36. Deputy Brian Leddin asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps that his Department is taking to complement the local government provision of local infrastructure and connectivity enabling sustainable travel, such as public transport, cycling and walking with sustainable travel infrastructure on IDA land banks; and if he will make a statement on the matter. [53875/22]

Amharc ar fhreagra

Freagraí scríofa

Sustainable growth is at the centre of IDA Ireland's current strategy “Driving Recovery & Sustainable Growth 2021-2024”, in line with Government policy, international consensus, the vision of IDA client companies, and the demands of citizens. This strategy is framed through five interlinked pillars of Growth, Transformation, Regions, Sustainability, and Impact.

To ensure that the IDA support key environmental sustainability initiatives, I am advised they have developed a strategic approach guided by the EU’s taxonomy for sustainable activities with a focus on investments that relate to: climate change mitigation (e.g. the reduction of greenhouse gases); climate change adaptation (the reduction of adverse impacts); sustainable use and protection of water and marine resources; the transition to a circular economy; pollution prevention and control; and protection and restoration of biodiversity and ecosystems.

The IDA land portfolio remains under constant review. It is essential that there are serviced sites with appropriate zoning, planning and required infrastructure in every region, to attract & secure FDI investment. In that context IDA’s regional property programme continues to embed sustainability through Leadership in Energy and Environmental Design (LEED) accreditation to deliver reduced carbon emissions and increased energy efficiency.

IDA Ireland supports client companies with operations on IDA sites as they pursue opportunities and address challenges related to environmental sustainability, including through collaborative engagement with key stakeholders. The Agency also continues to assess the potential for sustainability enhancements across IDA’s Business and Technology Parks and utility intensive strategic sites in 36 locations around the country, building on successful initiatives to date which include simple yet impactful steps such as the installation of more efficient public lighting and an enhanced focus on sustainable modes of transport such as public transport links to business parks. In that regard IDA supports access to the IDA park portfolio for public transport links and has installed bus and cycle infrastructure where possible in flagship parks.

In addition to the focus on climate action, IDA Ireland is also committed to protecting biodiversity and to the national efforts in this area following the Governments declaration of a Biodiversity Emergency in 2019.

In the implementation of their current strategy, the IDA is piloting biodiversity measures on selected business parks in line with the emphasis on biodiversity in the Programme for Government and in support of policies such as the National Biodiversity Action Plan 2017- 2021 and the National Pollinator Plan. In line with the All-Ireland Pollinator Plan for 2021-2025, which is a new five-year road map that aims to help bees, other pollinating insects and our wider biodiversity, IDA Property Division is currently reviewing locations suitable for developing these initiatives and has identified a number of IDA Business Parks for review and action.

IDA Ireland also continues to enhance its land bank optimisation initiative through developing a disposal strategy for non-strategic lands.

Departmental Schemes

Ceisteanna (37)

Alan Farrell

Ceist:

37. Deputy Alan Farrell asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will provide an update on the take-up of the green transition fund; and if he will make a statement on the matter. [53387/22]

Amharc ar fhreagra

Freagraí scríofa

My Department and its agencies are actively pursuing opportunities for decarbonisation across the enterprise base. We aim to foster strong, resilient businesses, that are successful and sustainable, while meeting our sector’s climate targets.

The Green Transition Fund, which I launched in June 2022, is designed very specifically to reduce manufacturing combustion emissions, a core measure in Climate Action Plan 2021. The measure is to “accelerate the uptake of carbon-neutral heating in industry”; it is therefore targeted at manufacturing businesses. This fund provides manufacturing businesses the foundation they need to begin their transition to low carbon production processes and help them to decarbonise their operations through investment in carbon abating capital equipment and technologies.

For the reporting period from the launch of the Green Transition Fund in June to end of September, 38 companies supported through the Green Transition Fund. The level of demand is anticipated to be larger for the final three months of the year out to December 2022.

The 38 companies supported through the Fund do not include figures for October, which will not be reported officially until 31st October, however there have been an additional 13 approvals this month as per the latest available figures. This brings the total number of companies supported through the Fund to 51.

The table below highlights the sectoral spread of the 38 companies supported up to the end of September.

Sector

No. of Companies Supported

Share of Companies Supported

Food & Sustainability

10

26%

Industrial & Life Sciences

17

45%

Regions & Local Enterprise

6

16%

Technology & Services

5

13%

Total

38

100%

The Green Transition Fund comprises two separate funding streams, one to build capability and one to incentivise investment in key technologies:

1. The Climate Planning Fund for Business, which will give businesses funding to develop a plan to identify how best to remove reliance on fossil fuels in their business. A €1,800 grant to develop a plan and up to €50,000 matched funding to go towards specific capacity building within an enterprise are among the grants available.

2. The Enterprise Emissions Reduction Investment Fund, which will give manufacturing businesses funding to invest in carbon neutral heating processes, smart metering and energy monitoring, and research and development. Up to €1 million is available for businesses to upgrade their processes through this stream.

Economic Policy

Ceisteanna (38)

Matt Shanahan

Ceist:

38. Deputy Matt Shanahan asked the Tánaiste and Minister for Enterprise, Trade and Employment if assurances will be given that his Departmental officials will engage in the setting up of the southeast economic forum similar to the western development commission. [53880/22]

Amharc ar fhreagra

Freagraí scríofa

It is an objective of this Government to bring development, job creation and investment to all regions of the country, including the South East.

In this regard, following in-depth consultation among key stakeholders within the region, the South East Regional Enterprise Plan to 2024 (REP) was launched earlier this year. The Plan contains a set of objectives and related actions to be delivered by end 2024 that seek to support and develop the enterprise ecosystem in the South East and are complementary to existing Government initiatives.

Furthermore, through Enterprise Ireland (EI), regional enterprise development funding has been made available to assist locally-led innovative projects in the South East. In total, the region has secured €8.7m in approved funding for eight projects under the Regional Enterprise Development Fund (REDF) and Regional Enterprise Scoping Scheme (RETS) and for eight projects under the Regional Enterprise Innovation Scoping Scheme (REISS).

Separately, the Local Enterprise Offices (LEOs) act as a ‘first stop shop’ providing information and advice to businesses within their locality, as well as bespoke enterprise development programmes to encourage a strong enterprise ecosystem. The LEOs work in partnership with the Local Authorities and other stakeholders within the region, to not only contribute to enterprise development but also to the economic development within the region.

Examples of the LEOs positive engagement in the South East region can be seen through various initiatives, including in LEO Carlow, who are leading on the development of a Regional Advanced Exporting Centre which will focus on advanced technical export services for scaling enterprises in the South East Region; and LEO Kilkenny’s involvement with the Ireland Southeast Financial Services Cluster, which is an enterprise led cluster initiative arising from Regional Enterprise Plan, directed by Ireland Southeast Development Office, supported and funded by the local authorities of Wexford, Waterford, Carlow, and Kilkenny.

With regard to Foreign Direct Investment (FDI), there are 79 IDA Ireland client companies in the South East region, employing 14,932 people. The FDI performance in the region has been strong over the past five years with employment among IDA clients increasing by 25%. The IDA’s Regional Development Strategy is supported by a dedicated South East Regional Development team based in Waterford. The team engages with a wide range of stakeholders to help strengthen the region’s offerings to win new FDI. This includes influencing, developing, and enhancing solutions such as key reference sellers, property solutions, utilities, skills, infrastructure, accessibility, place-making etc. to better influence potential new investors. The IDA partner with a wide range of influencers and stakeholders in this regard on a continual basis both at a regional and national level.

I believe that through the South East REP, Enterprise Ireland, the Local Enterprise Offices, and the work of IDA Ireland, we are well-placed to deliver the development, investment and job creation that the South-East deserves.

In relation to the Deputy’s suggestion regarding the setting up of a South East economic forum similar to the Western Development Commission, I addressed this issue during the meeting of the Joint Committee on Enterprise, Trade and Employment on the 5th October. That is, that I think the jury is out on whether having a regional body of that nature is hugely successful. Notwithstanding this, however, as I said at Committee, I would be interested in objectively assessing whether the region requires any additional targeted interventions. In that regard I have directed my officials to examine this further.

Question No. 39 answered with Question No. 34.

State Bodies

Ceisteanna (40)

Maurice Quinlivan

Ceist:

40. Deputy Maurice Quinlivan asked the Tánaiste and Minister for Enterprise, Trade and Employment if his Department has considered the introduction of the unified patent court; if plans are being made on holding a referendum on its introduction; and if he will make a statement on the matter. [53827/22]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy may be aware, in June 2022 I brought a Memo to Government to reaffirm the Government’s commitment to participating in the Unitary Patent and the Unitary Patent Court (UPC) and to raise awareness of the Government decision of 2014. Subsequently I issued a press release reaffirming the Government’s commitment to participate in both the Unitary Patent and UPC, and to hold the necessary constitutional referendum to enable Ireland to do so.

The Government decision of July 2014 provided for the establishment of a local division in Ireland, subject to the successful passing of a constitutional referendum. A local division hosted in Ireland would provide Irish businesses with the facility to litigate on Irish soil and create a wider pool of national skills and competences in Intellectual Property including, for example, legal services, and patent agencies.

Although the timing for this referendum is a matter for Government to decide, it is anticipated that the referendum will be in 2023 or early 2024. This referendum will be held in tandem with either another referendum or other elections to facilitate voter turnout and to reduce costs to the taxpayer.

Until such time as a referendum on the matter is held and won here, Ireland will not be participating in the UPC. Irish citizens and businesses will still, however, be able to apply for a Unitary Patent which will be valid in those Member States that have ratified the Unified Patent Court Agreement. Similarly, Irish citizens will be able to defend their Unitary Patent or contest another Unitary Patent before the Unified Patent Court. National patent holders will still be able to litigate in their national courts, including in Ireland.

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