Barry Cowen
Ceist:78. Deputy Barry Cowen asked the Minister for Enterprise, Trade and Employment if he will provide an update on the Midlands Regional Enterprise Plan; and if he will make a statement on the matter. [8921/23]
Amharc ar fhreagraEnterprise Policy
Ceisteanna (78)
Freagraí scríofa
Regional Enterprise Development continues to be a key policy of mine and this Government, and which is reaffirmed in the recently published White Paper on Enterprise.
My Department contributes to this agenda in a number of ways, including through oversight of development and implementation of nine Regional Enterprise Plans.
A key feature and strength of the Regional Enterprise Plans to 2024, is that they are developed using a ‘bottom-up’ approach, by regional stakeholders who are keenly aware of the growth opportunities and vulnerabilities in their region, and of the benefits of working collaboratively.
The Midlands Regional Enterprise Plan which covers Longford, Westmeath, Laois and Offaly was launched in Mullingar on 1 March last year.
Each Plan is overseen and monitored by a Steering Committee made up of regional stakeholders and chaired by a senior level private sector businessperson.
Membership of the Steering Committee includes representation from the Local Authorities, the Enterprise Agencies, LEOs, Regional Assemblies, Higher Education bodies and others, all of whom are focused on enhancing the enterprise ecosystem of the region.
Since publication and launch, the Midlands Steering Committee and Working Groups have been meeting to drive implementation of the actions.
The Deputy may wish to note that last November I attended the Midlands Steering Committee and I was very impressed with the progress that has been made to date in delivering the Midlands Regional Enterprise Plan. Since my last visit to the Midlands, the Midlands ICT Cluster Action Plan has been agreed and work is underway on implementation.
I can also advise the Deputy that my Department has secured up to €145 million from the European Regional Development Fund to drive implementation of the Regional Enterprise Plans. This funding will support innovative enterprise focused projects across all regions.
By focusing on the strengths of the region and by taking advantage of collaborative funding opportunities I am hopeful the Midlands will continue to build on their previous successes.
Legislative Reviews
Ceisteanna (79)
Ged Nash
Ceist:79. Deputy Ged Nash asked the Minister for Enterprise, Trade and Employment if he has any plans to undertake a formal review of the operation of the Employment (Miscellaneous Provisions) Act 2018; and if he will make a statement on the matter. [9000/23]
Amharc ar fhreagraFreagraí scríofa
My Department closely monitors relevant national and international developments and case law from the Workplace Relations Commission (WRC), Labour Court and High Court to keep Ireland’s extensive suite of employment rights legislation current and fit for purpose.
The Code of Practice on Access to Part-Time Work was drawn up by the then Labour Relations Commission in consultation with the social partners pursuant to the Protection of Employment (Part-Time Work) Act 2001. The 2001 Act gave effect to a Council Directive on the Framework Agreement on Part-Time Work concluded by the European social partners.
Among other provisions, the Code of Practice sets out that, as far as possible, employers should give consideration to a request by workers to transfer from part-time to full-time work or to increase their working time should the opportunity arise. The Code was put on a statutory footing in S.I. No. 8 of 2006.
During the passage of the 2018 Act, on foot of Dáil and Seanad debates, the then Minister engaged with the WRC on a review of the 2001 Act and 2006 Code of practice. It was decided in 2019, as the 2018 Act had only just commenced, that some time post enactment would be required to gauge the impact of that significant piece of legislation.
In my view it is now timely that a comprehensive review of both the Code and the Act of 2018 is carried out. Therefore, as Minister, I have written to WRC requesting that they review the Code of Practice on Part Time Work and the Employment Miscellaneous Provisions Act 2018 in consultation with all relevant stakeholders.
I would expect the review will establish if the legislation continues to meet the current needs or if any amendments are required.
Questions Nos. 80 and 81 answered orally.
EU Regulations
Ceisteanna (82)
Brendan Howlin
Ceist:82. Deputy Brendan Howlin asked the Minister for Enterprise, Trade and Employment if he has concerns regarding the negative impact on Ireland of the relaxation of EU State aid rules which has seen France and Germany account for 77% of the €672 million EU-approved programmes since 22 March 2022 following the Franco German Leaders’ meeting in Paris; the discussions he has had with other EU partners on this potential competitive distortion; and if he will make a statement on the matter. [4005/23]
Amharc ar fhreagraFreagraí scríofa
Ireland has always been a strong supporter of robust State Aid control as this provides for a level playing field among member states and is the most suitable approach for small open economies like ours.
It is important to note that the figure of 77% of €672 million EU-approved programmes refers to approved budgets, and not what has been spent. Experience of the COVID-19 Temporary Framework has been that actual spend by member states is lower than the approved budgets. The Commission’s analysis of the use of the COVID-19 Temporary Framework concluded that the level playing field was not damaged on that occasion.
The ability to provide targeted State Aid in a crisis is important and the Covid-19 Temporary Framework and the current Temporary Crisis Framework show that these temporary frameworks allow the EU to offer timely flexibility when it is required. The current proposals go beyond this and there is a risk that if we normalise these extraordinary measures, we damage the level playing field that makes the EU strong.
For this reason, Ireland co-signed a joint statement with ten other member states, calling on the EU Commission to exercise caution in changing State Aid rules.
I also expressed my reservations about proposals to widen the scope of the Temporary Crisis Framework in my reply to Executive Vice President and Commissioner for Competition, Margrethe Vestager, on 25 January.
I attended the Informal Competitiveness Council in Stockholm on 7 February at which competitiveness, in the context of the green transition, was discussed. Ireland views a level playing field as a key support to competitiveness and productivity. The Council generally supported the need for a joined-up approach to ensure long term EU competitiveness, that is based on preserving the Single Market and the level playing field.
The Commission has since consulted Member States on draft proposals and my Department coordinated Ireland’s response calling for caution regarding the use of temporary crisis measures to support the Green Transition. We advised that the more permanent and stable General Block Exemption Regulation would be the more appropriate framework.
Energy Prices
Ceisteanna (83)
Jackie Cahill
Ceist:83. Deputy Jackie Cahill asked the Minister for Enterprise, Trade and Employment the further supports planned for businesses challenged by high energy costs; and if he will make a statement on the matter. [8979/23]
Amharc ar fhreagraFreagraí scríofa
The Government is acutely aware of the ongoing cost of living crisis and continues to monitor all cost of living schemes currently available to businesses and families. The Government was not found wanting during the COVID-19 pandemic and it will continue to support businesses now.
As you are aware the Government announced on Tuesday last a new round of cost of living supports. As part of this the current Temporary Business Energy Support Scheme (TBESS) is being amended to allow more businesses apply for this grant.
It is now proposed to make the following amendments to the TBESS:
- Extend the end date of the scheme, which is currently 28 February 2023, to 31 May 2023 with an option to further extend it to 31 July 2023 by Ministerial Order.
- Reduce the ‘energy cost threshold’ for the scheme, so a tax compliant business can claim relief where it can demonstrate that the average unit price for electricity or natural gas on the relevant bill has increased by 30 percent or more as compared to the average unit price of electricity or natural gas in the reference period. This revised threshold will be applied on a retrospective basis from September 2022 so businesses who were not previously eligible for the scheme due to the 50 percent energy cost threshold may now be eligible for the scheme.
- Increase, from 1 March 2023, the level of relief from 40 percent of the eligible cost to 50 percent, subject to the monthly limits on aid provided for under the scheme.
- Raise the monthly cap from €10,000 to €15,000 from 1 March onwards.
It should be noted that State aid approval under the "Temporary Crisis Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia” is required before these amendments to TBESS can be implemented.
I have also made a commitment to explore options for provide assistance to businesses who rely on Oil and LPG as their energy source and revert to Government on this matter.
The Government also approved the following which will help businesses:
- The temporary reductions in VAT on gas and electricity, from 13.5% to 9%, will be extended to 31 October 2023 at an estimated cost of €115 million.
- The temporary reduction in VAT on Tourism and Hospitality, from 13.5% to 9%, will be extended to 31 August 2023 at an estimated cost of €300 million.
The Deputy should also be aware, that the Small Firms Investment in Energy Efficiency Scheme was announced in Budget 2023. The objective of the Scheme is to support capital investment by businesses to reduce carbon emissions based on energy efficiency projects. The rationale for the Scheme would be to support companies to reduce their carbon emissions and overall energy costs by accelerating the adoption of low carbon technologies or processes.
Taking into account national policy and in consultation with the LEO network, Enterprise Ireland is developing guidelines and eligibility criteria for the rollout of this new Scheme by each of the 31 Local Enterprise Offices. A budget of €2 million has been allocated nationally and it is planned to launch the Scheme in Q1 2023.
Energy Prices
Ceisteanna (84)
Ruairí Ó Murchú
Ceist:84. Deputy Ruairí Ó Murchú asked the Minister for Enterprise, Trade and Employment if he will outline the engagement his Department has had with the Department of Finance in relation to the review and improvement of the business energy support scheme; and if he will make a statement on the matter. [8146/23]
Amharc ar fhreagraFreagraí scríofa
As you know, the Temporary Business Energy Support Scheme (TBESS) is a government grant designed to help businesses with increasing energy costs. The Scheme has been designed by the Department of Finance and is being administered by the Revenue Commissioners. However, funding for the Scheme is allocated to the Vote of my Department and provides daily transfers at the request of the Revenue Commissioners.
My officials have been in ongoing contact with officials in the Revenue Commissioners and the Department of Finance. We have sought extensive feedback from our stakeholders which has all been provided to the Department of Finance to inform their review of the Scheme. I have also discussed the Scheme with the Minister for Finance and have been actively involved in the recent Government discussions in relation to the future cost of living supports.
Following these discussions, the Deputy will be aware that Government announced on Tuesday last a new round of cost of living supports. As part of this the TBESS is being amended to ensure more businesses are eligible to apply.
It is now proposed to make the following amendments to the TBESS:
- Extend the end date of the scheme, which is currently 28 February 2023, to 31 May 2023 with an option to further extend it to 31 July 2023 by Ministerial Order.
- Reduce the ‘energy cost threshold’ for the scheme, so a tax compliant business can claim relief where it can demonstrate that the average unit price for electricity or natural gas on the relevant bill has increased by 30 percent or more as compared to the average unit price of electricity or natural gas in the reference period. This revised threshold will be applied on a retrospective basis from September 2022 so businesses who were not previously eligible for the scheme due to the 50 percent energy cost threshold may now be eligible for the scheme.
- Increase, from 1 March 2023, the level of relief from 40 percent of the eligible cost to 50 percent, subject to the monthly limits on aid provided for under the scheme.
- Raise the monthly cap from €10,000 to €15,000 from 1 March onwards.
It should be noted that State aid approval under the "Temporary Crisis Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia” is required before these amendments to TBESS can be implemented.
I have also made a commitment to explore options for provide assistance to businesses who rely on Oil and LPG as their energy source and revert to Government on this matter.
National Minimum Wage
Ceisteanna (85, 86)
Thomas Gould
Ceist:85. Deputy Thomas Gould asked the Minister for Enterprise, Trade and Employment if he intends to equalise minimum wage for those under 20 years. [9247/23]
Amharc ar fhreagra
Gary Gannon
Ceist:86. Deputy Gary Gannon asked the Minister for Enterprise, Trade and Employment the reason for paying 17-, 18- and 19-year-olds below the minimum wage per hours worked. [6174/23]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 85 and 86 together.
The Low Pay Commission was requested, as part of its 2016 work programme, to examine the sub-minimum rates (special training and youth rates) of the national minimum wage and to report its recommendations.
The Low Pay Commission, having examined all available evidence and submissions, and having considered a range of options, made recommendations in its subsequent 2017 report to simplify youth rates based on age and to abolish training rates unless an employee is part of a proper apprenticeship programme already approved by the State.
The Low Pay Commission considered abolishing youth rates but concluded that the minimum wage rate would then no longer offer any recognition of the difference between a young inexperienced worker and a more experienced colleague, which could lead to employers no longer seeing a value in hiring young people (and potentially impact on youth employment rates). The Low Pay Commission also concluded that abolishing youth rates could potentially act as an incentive for young people to leave education and take up employment, which could have a negative impact on their long-term prospects.
Ultimately, the Commission recommended that the youth rates should be simplified and be changed to an age-based system as opposed to experience-based rates. These recommendations were accepted by Government and the changes came into effect on 4 March 2019.
It is worth noting that the Commission recommended that the rate for employees under the age of 18 should also be retained in acknowledgement of the fact that such employees have a statutory restriction on their working hours and conditions under the Protection of Young Persons (Employment) Act 1996.
Recently there has been some debate relating to subminimum rates of the national minimum wage. In this context, last year the then Tánaiste and Minister for Enterprise, Trade and Employment asked the Low Pay Commission to re-examine the issues around retaining or removing the youth rates and to make recommendations on the subject. To inform its work, the Low Pay Commission has asked the Economic and Social Research Institute to conduct background research on this issue under the terms of the Low Pay Commission-ESRI Research Partnership Agreement.
The Low Pay Commission’s report and recommendations on sub-minimum rates are expected during 2023.
While the issue of subminimum youth rates is being considered, the Government will continue to be guided by the recommendations of the Low Pay Commission with regard to any future changes in the National Minimum Wage.
Question No. 86 answered with Question No. 85.
Job Losses
Ceisteanna (87)
Ruairí Ó Murchú
Ceist:87. Deputy Ruairí Ó Murchú asked the Minister for Enterprise, Trade and Employment if he will outline the contact his Department has had with a large multinational company (details supplied) with workforces in counties Louth and Dublin that have announced cuts to its global workforce; and if he will make a statement on the matter. [8147/23]
Amharc ar fhreagraFreagraí scríofa
Earlier this month I met with 14 of the leading technology companies with a presence in Ireland on the US West Coast. This provided a valuable opportunity for me to hear directly from enterprise leaders and to highlight Ireland’s strong Foreign Direct Investment (FDI) value proposition. I also met with a broad spectrum of over 60 business leaders on a wide range of topics, including Ireland’s economy, North-South relations and the impacts of Ukraine.
I came away reassured that, despite the recent job loss announcements, the impact on Ireland is relatively small and the tech sector remains very strong.
On 31 January 2023, PayPal’s CEO announced that the company would seek a 7% reduction of its global workforce, or 2,000 people globally. As with any global announcement, it can take some time for the impact at local level to be determined and we currently await detail of the impact on employment in Ireland.
In recent months we have seen job loss announcements from a number of companies in the technology sector. Our first concern is for impacted staff and their families and Government will make all necessary State assistance available to those impacted. In that regard, officials of the IDA and Enterprise Ireland, as well as my own Department, will keep Government informed of all developments and they have intensified their engagement with companies in the tech sector.
More particularly, IDA Ireland engages regularly with PayPal as part of the Agency’s ongoing support for the company. The IDA has good relationships with Irish and corporate management at PayPal which is a key employer in the state and the Border Region. Recently, IDA Ireland has actively engaged with PayPal in both Dundalk and Dublin regarding transformation, upskilling and the potential for RD&I activity to be carried out in Ireland. Throughout IDA’s engagement with PayPal, the company has reaffirmed that Ireland is a location is of strategic importance to PayPal.
Departmental Data
Ceisteanna (88, 117)
Brian Stanley
Ceist:88. Deputy Brian Stanley asked the Minister for Enterprise, Trade and Employment the total spend on the provision of advance industrial units by the IDA in each county for the past five years. [8916/23]
Amharc ar fhreagraBrian Stanley
Ceist:117. Deputy Brian Stanley asked the Minister for Enterprise, Trade and Employment if he will provide an update on the number of advance industrial units provided by the IDA in each country in the past ten years. [8915/23]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 88 and 117 together.
IDA’s Regional Property Programme will provide property and strategic site solutions to address market failures in regional locations. The IDA will also continue to seek and develop partnerships with key regional stakeholders including Local Authorities to ensure land, infrastructure and building permits are available in all regions. In this regard, IDA Ireland, in its current strategy, has committed to deliver 19 Advanced Building Solutions (ABS) in 15 regional locations throughout Ireland.
The locations in which IDA will provide property solutions from 2021-2024 were chosen based on IDA’s market insights, understanding of regional property markets and extensive analysis, engagement, review and consultation as well as macroeconomic considerations, existing clusters and available resources. Potential locations for development were assessed on key FDI attractiveness factors while significant consideration was also given to the economic challenges facing certain regions.
Given the significance of property to the winning of FDI and particularly in regional locations, IDA’s continued positive intervention in delivering advanced property solutions in terms of land, building and infrastructure is paramount.
The number of building solutions constructed by IDA in the past 10 years, and their locations are: 3 in Limerick, 2 in Louth, 2 in Sligo, 2 in Waterford, together with advanced building solutions in Mayo, Monaghan, Kerry, Galway and Westmeath.
To date over the 10-year period, 2013 to 2023, almost €96.5m has been spent on the building programme in the locations I have listed. Given that IDA develops property solutions that are generally ultimately sold to the private sector, the release of exact costs incurred in bringing these solutions to market is commercially sensitive and client confidentiality is also a consideration.
Departmental Strategies
Ceisteanna (89)
Richard Bruton
Ceist:89. Deputy Richard Bruton asked the Minister for Enterprise, Trade and Employment the preparations that have been undertaken in his Department to develop a circular economy strategy in key economic sectors; and if he will make a statement on the matter. [8134/23]
Amharc ar fhreagraFreagraí scríofa
I fully recognise the need to move away from our pervasive linear 'take-make-discard' model to a more circular one. My Department, and indeed Government as a whole, is working on a number of fronts to effect this transformation for businesses, consumers and our economy.
At EU level, negotiations are continuing on the Ecodesign for Sustainable Products Regulation which will build circularity - through inclusion of requirements such as reparability and reusability - into the design of products that we all use.
The 2nd iteration of the whole-of-Government Circular Economy Strategy is currently under development by the Department of the Environment, Climate and Communication, as required under the Circular Economy Miscellaneous Provisions Act 2022, which will contain a range of sectoral targets in relation to specified resource-intensive sectors. These targets will inform the development of future sectoral roadmaps/strategies. My Department will engage fully in the development of this strategy which will be submitted for Government approval, again following public consultation, before the end of this year.
To give a sector specific example, the Department of the Environment, Climate and Communications, is preparing a Circular Construction Roadmap in conjunction with a subgroup of the Construction Sector Group. The Roadmap is intended to provide practical guidance to industry practitioners, highlight best practice examples of circular construction, and identify regulatory and financial measures which could support greater circularity. Improving the circularity rate of the highly resource intensive Construction & Demolition sector has significant potential to improve Ireland’s circularity rate as a whole. It is anticipated that the Roadmap will be submitted for Government approval, following public consultation, by end-2023.
The Deputy may be aware that Minister Coveney recently announced that my Department intends to hold several conferences around the country which will focus on decarbonisation and digitalisation and will showcase the government and agency supports available to small and medium enterprises. The first of these ‘Building Better Business’ conferences will be held in the North-West on Friday, 3rd March at the Letterkenny campus of the Atlantic Technological University (ATU) in Donegal. State agencies and organisations that provide training and supports will be in attendance to advise businesses as to the importance of embracing the circular economy as part of the their decarbonisation journeys. We will also use the conferences to continue to promote the 'Climate Toolkit 4 Business', which contains a number of recommended actions to encourage businesses to move to a more sustainable and circular business model.
Question No. 90 answered orally.
Industrial Development
Ceisteanna (91)
Joe Flaherty
Ceist:91. Deputy Joe Flaherty asked the Minister for Enterprise, Trade and Employment if he will provide an update on the IDA commitment to deliver an advanced building solution in Longford town; and if he will make a statement on the matter. [9093/23]
Amharc ar fhreagraFreagraí scríofa
Regional development is at the heart of this Government's Enterprise White Paper and of IDA Ireland's current strategy “Driving Recovery & Sustainable Growth 2021-2024”. Under this Strategy, the IDA is targeting half of all investments to regional locations which aligns with the objectives of the Programme for Government. Specifically, IDA Ireland is targeting 25 investments for the Midlands region to end 2024.
Longford is already home to 7 IDA Ireland client companies directly employing more than 1,620 people and has an impressive range of companies across all industry sectors, with strengths in Life Sciences, Technology, Global Business Services, International Financial Services, and Engineering & Industrial Technologies.
This portfolio of multinational companies is hugely significant to the region with the Midlands having become a key strategic base for global companies of scale. Global leaders who have invested in the Region include Technimark, Avery Dennison and Abbott in Longford, amongst others.
IDA Ireland is fully committed to delivering an advanced building solution in Longford and I am advised that the Agency is continuing to liaise with Longford County Council and with wider stakeholders to identify a suitable site for the proposed Advance Building Solution (ABS). The site selection process is currently on-going.
Foreign Direct Investment employment in the Midlands region has increased by 43% in the past 5 years, with the 2022 figures showing 10.5% growth on 2021. Further, Foreign Direct Investment has a significant impact on the Midlands Region from an economic impact perspective, with an estimated €402million spent by MNC’s on payroll during 2020; €126million spent on Services and Materials; and €92million spent on in-house R&D.
In December last, Technimark, a global manufacturing leader for the healthcare market, announced it will create 80 new highly skilled roles over the next two years as it expands its operations in Longford, with a 50,000-square-foot addition, doubling the size of its existing plant. Technimark will be investing €26million to expand the facility's capacity in medical manufacturing, including precision injection moulding, value-added assembly, finished device assembly and contract manufacturing.
Inflation Rate
Ceisteanna (92)
Bríd Smith
Ceist:92. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment if his attention has been drawn to a recent survey (details supplied) showing that the vast majority of workers have not received wage rises in line with inflation; and if he will make a statement on the matter. [9251/23]
Amharc ar fhreagraFreagraí scríofa
According to CSO data, average weekly earnings in the private sector increased by 4.5% in 2022 Q3 compared to the same period a year earlier, and were up 10.6% compared to the same period in 2020. The Government has no role in the wage bargaining process for private sector workers which is a matter for individual employers and employees.
However, the Government has been proactive in limiting the fallout from higher rates of inflation on workers and their families. Budget 2023 contained almost €2.2 billion in a package of measures to protect households from the rising cost of living, including supports for pensioners, carers, people with disabilities, job seekers, lone parents, and families with children. Budget 2023 also announced significant investment in childcare, with parents using full time early learning and childcare services expected to see an average reduction of 25% in their out-of-pocket costs. It also included a number of personal income tax measures that will ensure that 1.5 million income taxpayers will see an increase in their take home pay in 2023. As such, the changes will result in a direct financial benefit for all those who pay income tax, particularly those on middle incomes.
The Government remains acutely aware of the effect that high energy prices and the cost of living are having on families, businesses and the most vulnerable.
In recognition of these ongoing challenges the Government this week agreed a new €1.2 billion package of measures to put money back into people’s pockets, help with the bills, and ensure there is no cliff-edge for the temporary measures already in place.
This additional package included €470 million of measures to help social protection recipients from April to July, including for: families with children, lone parents, low-income families, carers, those on disability payments, older persons living alone and pensioners.
Yesterday’s announcement also extended the temporary reductions in VAT on gas and electricity, from 13.5% to 9%, to 31 October 2023, while the temporary reduction in VAT on Tourism and Hospitality, from 13.5% to 9%, will be extended to 31 August 2023. A phased restoration of the rates of excise on petrol, diesel and marked gas oil will take place in three stages over the coming eight months which will also cushion households and businesses from a sudden increase in fuel prices.
Job Losses
Ceisteanna (93)
Peadar Tóibín
Ceist:93. Deputy Peadar Tóibín asked the Minister for Enterprise, Trade and Employment the steps his Department has taken to mitigate further lay-offs in the technology sector. [8423/23]
Amharc ar fhreagraFreagraí scríofa
The technology sector plays an important role in our economy and the sector has been building for over 40 years and will continue to strengthen its presence in Ireland despite present challenges.
Growth of the tech sector in recent years has been driven by increased digitalisation due to the uptake of new technologies as well as companies rapidly digitalising to increase their online services or enable employees to work remotely. However, a number of companies which develop and provide digitalisation technologies and services are now faced with revised revenue forecasts as a result of softening consumer demand, or the reduced availability or increased cost of finance.
Therefore, some technology companies are now looking to reduce costs in line with revised revenue forecasts and weakening company valuations and this recalibration is not unexpected. The focus of my Department and our agencies is on continued partnership with these companies to grow their presence in Ireland in the long run and deepen their impact in the Irish economy.
Ireland’s business environment has supported the success and the resilience of the tech sector in this country for decades. Our pro-business, flexible environment and the availability of suitable technical, managerial, and multilingual talent, enables technology companies to successfully invest and grow their businesses in Ireland.
Our broader research and development ecosystem supports companies to collaborate and seize new opportunities to scale their businesses using these emerging technologies. Emerging technology trends, such as data analytics, artificial intelligence and smart manufacturing, will also continue to create new opportunities.
Nevertheless, competition for inward investment is intense and Ireland will not lose focus on the key issue of competitiveness. The FDI sector is a key component of the Irish economy, and it is vital that Ireland continues to be an attractive investment destination for this sector.
The Government's new White Paper on Enterprise published last December sets the strategic direction for job-creation and growth for the years ahead. It takes account of the effects of the pandemic; changes in the international trading environment; vulnerabilities in our enterprise sector; and the need to integrate climate change commitments and the digital transition into enterprise policy over the decade ahead.
At Government level we are focused on competitiveness and ensuring that Ireland is the best place in Europe to invest and grow for the future. We are acting on energy, skills, housing, access to water services, and planning, all important issues for the success of the tech sector in Ireland.
Industrial Development
Ceisteanna (94, 98, 111, 136)
Willie O'Dea
Ceist:94. Deputy Willie O'Dea asked the Minister for Enterprise, Trade and Employment if he will provide a progress report on the IDA's target of 76 investments for the mid-west region in the period 2021 to 2024; and if he will make a statement on the matter. [8922/23]
Amharc ar fhreagra
James Lawless
Ceist:98. Deputy James Lawless asked the Minister for Enterprise, Trade and Employment if he will provide a progress report on the IDA's 40 investments for the mid-east region in the period 2021 to 2024; and if he will make a statement on the matter. [8942/23]
Amharc ar fhreagraBarry Cowen
Ceist:111. Deputy Barry Cowen asked the Minister for Enterprise, Trade and Employment if he will provide a progress report on the IDA's target of 25 investments for the midlands region in the period 2021 to 2024; and if he will make a statement on the matter. [8920/23]
Amharc ar fhreagra
Michael Moynihan
Ceist:136. Deputy Michael Moynihan asked the Minister for Enterprise, Trade and Employment if he will provide a progress report on the IDA's 118 investments for the south-west region in the period 2021 to 2024; and if he will make a statement on the matter. [9218/23]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 94, 98, 111 and 136 together.
Government and IDA Ireland are both committed to the pursuit of balanced regional development with the overall impact of helping to advance national economic development. In this regard, IDA Ireland is targeting half of all investments - that is 400 of 800 - from 2021-2024 to regional locations. At the mid-point in the currency of its current Strategy, 260 out of 491 investments won went to regional locations.
While Foreign Direct Investment is not the sole contributor to addressing the challenges facing Ireland’s regions – from Brexit to Covid-19, digital transformation to the climate transition – it can, of course, have a significant impact in propelling economic recovery and realising more balanced growth.
In 2022, the numbers directly employed in IDA multinational clients in Ireland reached 301,475, the highest FDI employment level ever and a 9% increase on 2021. IDA client companies recorded 32,426 gross new job gains in 2022, with a 24,019 net jobs increase. 52% or 127 of the 242 FDI investments won went to regional locations – with employment growth in FDI companies recorded in every region of the country.
The benefits of these new investments combined with the existing regional investor base extend beyond their direct and indirect levels of employment. They also generate significant positive spill-over effects for regional economies, indigenous businesses, and local communities. The most recent Irish economy preliminary expenditure figures from 2021, show expenditure by FDI companies located in regional locations totalled €15.1b, comprising of payroll of €10.1b, Irish materials of €2.5b and Irish Services €2.5b.
The 2022 employment figures for IDA client companies demonstrate the continued pattern of sustained, robust growth in FDI investment and FDI-related employment that has been achieved over a continuous period of more than ten years. Despite the backdrop of challenging international economic headwinds and geopolitical events, the level of employment in IDA client companies in regional locations reached a record high of 163,653 an increase of 7% on 2021.
Legislative Measures
Ceisteanna (95)
Bríd Smith
Ceist:95. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment if he will amend the Employment (Miscellaneous Provisions) Act 2018 to prevent employers from treating the upper range of banded hours as a cap when additional hours are being distributed (details supplied); and if he will make a statement on the matter. [9249/23]
Amharc ar fhreagraFreagraí scríofa
The Employment (Miscellaneous Provisions) Act 2018, came into force on 4 March 2019. This Act introduced a number of measures to strengthen employee rights and to address the problems caused by the increased casualisation of work.
Among these measures was the introduction of a 'band of hours' system which strengthens the regulation of precarious work by improving the security and predictability of hours of work for those on insecure contracts and those working variable hours.
The banded hours provisions of the Employment (Miscellaneous Provisions) Act 2018 do not 'treat the upper range of banded hours as a cap' or prevent increases in the number of hours an employee works. On the contrary, the Act increases security for workers. Should the increased hours continue for a period of time the employee may request to be placed on a higher band of hours after a sufficient reference period is met.
I would also like to assure the Deputy that my Department closely monitors relevant case law from the Workplace Relations Commission, Labour Court and High Court to keep Ireland’s extensive suite of employment rights legislation current and fit for purpose.
As Minister, I have written to the WRC requesting that they review both the Code of Practice on Part Time Work and the Employment Miscellaneous Provisions Act 2018 to assess the overall effectiveness of the suite of protections for Part Time Workers. It is timely that a comprehensive review of both the Code and the Act of 2018 is now carried out.
Work Permits
Ceisteanna (96)
Catherine Connolly
Ceist:96. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment the number of employment permits issued in respect of non-EEA home care workers since the changes in December 2022 to the employment permits system for workers from outside the EEA to address skills shortages in the home care sector; and if he will make a statement on the matter. [9167/23]
Amharc ar fhreagraFreagraí scríofa
Changes to the employment permits system for workers from outside the European Economic Area (EEA) to address skills shortages in Ireland’s Home Care sector were announced on 16 December 2022.
The role of home care worker is subject to a quota of 1,000 permits.
Applicants must have an offer of employment (contract) in order to apply for an Employment Permit.
To comply with the Labour Market Needs Test requirements, an employer must advertise the vacancy with the Department of Social Protection Employment Services/EURES employment network for at least 28 consecutive days without any edits or amendments.
To date there have been 8 permits issued from this quota.
All applications received are dealt with in order of date of receipt. Details of the changes announced and how to apply for a General Employment Permit for this role are available on the Department's website at www.enterprise.gov.ie.
Trade Agreements
Ceisteanna (97)
Matt Carthy
Ceist:97. Deputy Matt Carthy asked the Minister for Enterprise, Trade and Employment the status of the EU-Mercosur Trade Agreement; and the progress made on securing enforceable commitments on matters relating to sustainable development, the environment and deforestation. [8317/23]
Amharc ar fhreagraFreagraí scríofa
The Mercosur Agreement is designed to cement the close political and economic relations between the EU and Mercosur countries and represents a commitment to rules-based international trade. Since formal negotiations concluded, the global trade policy landscape has changed considerably. The rise in trade nationalism, the economic impacts of COVID-19, the war in Ukraine and the accompanying impacts on global supply chains have demonstrated the importance of diversifying our import and export markets by securing robust and comprehensive trade deals with global partners. The Mercosur Agreement, if ratified, will support that objective.
However, Ireland and other EU Member States have raised concerns regarding the strength of the trade and sustainability commitments in the Agreement. As a response to those concerns, the European Commission commenced a process with the Mercosur region on reaffirming the Agreement’s binding commitments. To that end, the Commission is finalising a draft interpretative legal instrument addressing sustainability commitments. This interpretative text will have the same legal status as the existing text within the Agreement itself.
In discussions with the Commission and other EU Member States, Ireland has emphasised the need for it to comprehensive in its scope and to include binding commitments on, climate change, biodiversity, forests, labour rights and other sustainability criteria.
Commission officials are due to visit the Mercosur region in the coming weeks to discuss the text of the new instrument. I wish to assure the Deputy that my officials and I will continue to monitor developments regarding the instrument proposed and hope to see agreement reached with Mercosur in the coming months, on this new instrument.
Question No. 98 answered with Question No. 94.
Question No. 99 answered orally.