Written Answers Nos. 100-115
100. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment if he will provide details of the grants and supports available from his Department to assist persons with disabilities in establishing, building and sustaining their own businesses; and if he will make a statement on the matter. [9091/23]
Amharc ar fhreagraThe Local Enterprise Offices (LEOs) are the ‘first-stop-shop’ for advice and guidance, financial assistance and other supports for anyone, 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, Department of Children, Equality, Disability, Integration and Youth, the Revenue Commissioners, Education and Training Boards, the Credit Review Office and Microfinance Ireland.
The Local Enterprise Office grant supports are available to all entrepreneurs provided their business meets the eligibility criteria of the support they are applying for.
In addition, all entrepreneurs can avail of Local Enterprise Office training, mentoring and management development programmes. Furthermore, Local Enterprise Offices can provide additional support to entrepreneurs 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.
Enterprise Ireland's focus has been on making sure our supports for entrepreneurs and enterprise are accessible to all, including people with disabilities. Enterprise Ireland does not break down participant numbers, or have separate budgets, for EI supports and programmes specifically for people with disabilities.
Enterprise Ireland have invested in additional content available on eiLearn and are working in conjunction with stakeholders including third level colleges to develop new programmes and initiatives.
101. Deputy Darren O'Rourke asked the Minister for Enterprise, Trade and Employment the measures he is taking to improve the work permit process for sectors of identified shortage; if there is dedicated focus on the potential of those seeking asylum here to address some of that shortage; and if he will make a statement on the matter. [8320/23]
Amharc ar fhreagraIreland’s employment permits system is 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, but this objective must be balanced by the need to ensure that there are no suitably qualified Irish/EEA nationals available to undertake the work and that the shortage is a genuine one.
The system is managed by means of two Occupations Lists determining either highly skilled roles in critical short supply or those that are ineligible for an employment permit. The lists undergo regular, evidence-based review to ensure the system is aligned with current labour market intelligence, guided by relevant research and a public/stakeholder consultation. The views of the Economic Migration Interdepartmental Group and relevant policy Departments are also taken into consideration.
My Department continues to actively respond to the concerns raised by various sectors with regard to the critical short supply of skills in a number of roles crucial to the economy. In framing policy regarding employment permits, consideration is given to wider policy instruments that are also available in meeting the challenges presented by skills shortages. Employment permit policy is part of the response to addressing skills deficits which exist and are likely to continue into the medium term, but it is not intended over the longer term to act as a substitute for meeting the challenge of up-skilling the State’s resident workforce, with an emphasis on the process of lifelong learning, and on maximising the potential of EEA nationals to fill our skills deficits.
My Department also works with other Departments to promote an integrated approach to addressing labour and skills shortages being experienced in the economy and keeps the employment permits system under review in light of changing labour market circumstances. The timing of the next Review of the Occupational Lists is being kept under consideration.
My Department is engaging with the Department of Justice to streamline the Employment Permit and Visa processes including through the exploration of a single application process. I am committed to improving the efficiency of administrative processes and making services more customer friendly to the benefit of both employers and potential employees.
As distinct from economic migrants, those seeking international protection in Ireland must apply to the International Protection Office of the Department of Justice for refugee or subsidiary protection. Applicants for international protection are eligible for permission from the Minister for Justice to access employment or self employment if waiting 6 months or more for the first decision on their application. This group have the right to access employment without an employment permit, open a business or take up education or training options.
As part of the response to the displacement of persons in Ukraine, temporary protection has been granted to Ukrainian citizens in accordance with the EU Temporary Protection Directive. Individuals covered by this Directive are not subject to the employment permits legislation and criteria, are granted access to employment without the need for an employment permit, accommodation and other provisions. The operation of the Temporary Protection Directive and the granting of permissions under the Directive is the responsibility of the Department of Justice.
102. Deputy James Lawless asked the Minister for Enterprise, Trade and Employment the digital transformation supports and initiatives his Department is providing for businesses; and if he will make a statement on the matter. [8943/23]
Amharc ar fhreagraUnder the National Digital Strategy, Harnessing Digital – The Digital Ireland Framework, Government has committed to driving a step change in the digitalisation of enterprise right across Ireland. Growing the use of digital technologies by businesses will help us to build the resilience of our enterprise base, particularly as we look to future-proof our economy for the years ahead.
The strategy sets out specific targets for the digitalisation of enterprise, including achieving 75% enterprise take-up of cloud, big data and AI by 2030; ensuring that 90% of our SMEs have reached at least a basic level of digital intensity by 2030; and ensuring that at least 35% of State funding for start-up and early-stage businesses is invested in innovative digital businesses from 2022 onwards.
It also sets a target of at least 800 businesses supported under the Digital Transition Fund by 2026. The Digital Transition Fund is one element of Ireland’s National Recovery and Resilience Plan; it is an €85m fund that will run until 2026. Through this fund, we will increase the digitalisation of all businesses across their products, processes, supply chains and business models. Under Budget 2023, €16 million was allocated to the Digital Transition Fund.
Enterprise Ireland (EI) makes a suite of supports available to eligible businesses as they work to digitalise, including through the Digital Transition Fund (DTF) to help businesses to develop a strategic roadmap for digital transition and to support companies seeking to invest in the implementation of new or significantly improved production and service delivery. Beyond the DTF, EI also offers its clients support for strategic consultancy, exploring innovation, research and development and building their digital marketing capability.
The Disruptive Technologies Innovation Fund (DTIF) aims to encourage collaboration and innovation in the development and deployment of disruptive technologies, on a commercial basis, targeted at tackling national and global challenges. It is managed by my Department and administered by EI. The fund encourages projects that complement the priority enterprise policy objective on digital transformation, as set out in the White Paper on Enterprise. A sixth call of the DTIF will be announced in Q1 2023.
The network of 31 Local Enterprise Offices also offers a range of digitalisation supports to eligible businesses, including through the Trading Online Voucher scheme, which is in place to help businesses develop their online trading capability, and Digital Start, which is designed to help businesses prepare and implement a plan for the adoption of digital tools and techniques across the business. Digital Start can be used to obtain digital strategic, technical and/or advisory services from approved providers.
For retail businesses, the Online Retail Scheme was introduced by my Department in conjunction with Enterprise Ireland as part of the ongoing work of the Retail Forum. The Online Retail Scheme was developed in response to an identified need to drive a step change in online capability in the retail sector. Since 2018, more than 700 projects from retailers have been approved for funding through six rounds of competitive calls, including two pilot rounds of the Online Retail Scheme. A new call of the scheme is expected in 2023.
This Scheme aims to develop the resilience of the domestic retail enterprise sector through enhancing online sales capabilities to drive productivity and increase competitiveness and subsequently scale businesses in international markets.
As part of the Digital Europe Programme, work is ongoing on Ireland’s network of European Digital Innovation Hubs (EDIHs). These hubs will support digital transformation for SMEs by encouraging the adoption of the latest advances in three key digital technologies: Cybersecurity, Artificial Intelligence, and High-Performance Computing.
Work is also under way on a Digital Portal to demystify digital and support businesses on the digital adoption journey. This portal will help businesses to self-assess their digital needs, as well as signposting to training, resources, and funding options that will help them to digitalise, and will be open to all businesses.
103. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment how the new White Paper on Enterprise will help reduce the cost of doing business; and if he will make a statement on the matter. [9096/23]
Amharc ar fhreagraThe White Paper sets out the Government’s enterprise priorities in the period to 2030. It also highlights the importance of a competitive economic environment for the success of enterprise.
Areas which are cited as being important ‘framework conditions’ to establish a competitive economic environment include quality infrastructure; skills, talent and workforce development; adequate access to finance; taxation; a well-functioning regulatory system; and the cost of doing business.
As highlighted in the White Paper on Enterprise, as an open small economy, Ireland is effectively a price taker for many goods and services which drive the cost of doing business. This has been most evident in the inflation seen in energy markets and which has significantly increased costs for many businesses.
The focus of Government in terms of reducing the costs of doing business is on area which it can influence, in particularly those which are locally-traded to a greater extent.
Actions to address the lack of competition in areas such as banking and insurance are key to reducing costs to business. The Government continues to implement the Action Plan for Insurance Reform. Alongside this, the Government will continue to make strategic investments in infrastructure which will lower the costs of doing business, including in security of energy supply in underpinning the needs of Irish enterprises and promoting Ireland as a base for future investment.
While implementation of the White Paper will focus on achieving medium and longer term targets across seven identified enterprise policy priorities, Government has already taken a number of steps to provide support to businesses that are facing rising costs. As part of Budget 2023, a significant package of assistance was introduced to support businesses with their energy bills. This included the introduction of the €1.25 billion Temporary Business Energy Support Scheme, the Ukraine Enterprise Crisis Scheme and the Ukraine Credit Guarantee Scheme (UCGS).
Earlier this week, in light of the ongoing challenges facing businesses Government agreed to extend the Temporary Business Energy Support Scheme for a further three months and to widen the entry criteria significantly, with the maximum monthly claim limit also increased from up to a maximum of €10,000 per month to €15,000.
Alongside the Temporary Business Energy Support Scheme, the reduced rate of VAT on gas and electricity from 13.5% to 9% has been extended until October. By supporting businesses to meet energy costs, this measure will help protect the jobs of those working in impacted sectors. Government has also agree to stagger the restoration of excise rates over three phases. As a further effort to tackle the impact of rising costs, the reduced 9% VAT rate for hospitality has also been extended to August of this year.
104. Deputy Denis Naughten asked the Minister for Enterprise, Trade and Employment if he has discussed with Enterprise Ireland the way to stimulate the establishment of indigenous businesses in the renewable energy supply chain through a national renewable energy business accelerator programme; and if he will make a statement on the matter. [2045/23]
Amharc ar fhreagraMy Department through Enterprise Ireland, is actively engaged in building the capacity in the indigenous sector for supply chain opportunities in the green energy and renewables sectors. With the support of my Department, Enterprise Ireland’s new Sustainability Department is examining the key emerging areas of opportunity in these sectors and how best to develop Ireland’s renewable energy sector as a basis of competitive advantage, including through the mechanism of business accelerators and/or business incubator programmes.
The offshore wind industry, for example, has a significant regional employment potential and this is being exploited through the development of the 9 Regional Enterprise Plans. The delivery of smart grid management systems, offshore wind energy and hydrogen for national industrial development and international markets are currently being explored.
In the medium and longer term, Ireland will have excess renewable energy capability and enterprise policy should ensure domestic value-added opportunities are fully captured alongside energy exports.
Hydrogen and decarbonised gas and stimulating domestic biomethane production should also be a critical component of Ireland’s energy ecosystem and decarbonisation pathway.
Building on and complementing the recently published White Paper on Enterprise, my Department is assessing how Ireland’s enterprise sector, both indigenous and FDI, will support the development of Ireland’s ambitions to deliver an offshore wind generation sector of significant scale.
Part of that consideration will be how to capture the industrial development opportunities that would arise both in terms of exports and in developing appropriate supply chain strategies from co-locating renewable energy infrastructure, transport infrastructure and industrial energy demand and building clusters of economic activity in that regard.
This is in accordance with the framework for enterprise policy for the period to 2030 as outlined in the White Paper on Enterprise. It is expected that actions aimed at developing indigenous supply chain capacity will be an integral part of these initiatives.
105. Deputy David Stanton asked the Minister for Enterprise, Trade and Employment the action his Department and the relevant State agencies under the remit of his Department, have taken or plan to take to facilitate remote working in all its forms; his views on the extent of remote working at present and on likely trends; his views on the impact that working remotely will have on future development of enterprise and on foreign direct investment in Ireland; and if he will make a statement on the matter. [9017/23]
Amharc ar fhreagraAccording to the Central Statistics Office, in the third quarter of 2022, just over 550,000 (around 23% of those in work) were ‘usually’ working from home, with over 250,000 (or just under 11% of those in work) ‘sometimes’ working from home. While this represents a decline in the total since the height of the pandemic, the numbers working from home remain significantly above pre-pandemic figures.
The data show that interest in remote working remains strong and point to hybrid working becoming the new normal for many workers.
At present, the numbers working remotely are disproportionately located in Dublin and the East of the country, reflecting the relatively high share of jobs in this region that are in sectors amenable to remote working, such as technology and finance. Over time, remote working has significant potential to enable a more even spread of high-value jobs across the country and this is one of the reasons why Government attaches such importance to its National Remote Work Strategy.
Remote working has the potential to help create a more inclusive labour market and society. This is particularly true of for women, people with caring responsibilities, people with disabilities, and people in rural communities. This in turn gives employers access to a wider pool of talent.
Female participation in the labour force in Ireland is at record high levels, and currently stands at 59% - nearly 3 percent higher than in Q3 2019, before the pandemic. This is at least in part due to remote working.
Research by the Irish Government Economic and Evaluation Service (IGEES) found that remote working can result in significant cost savings for firms if they downsize, or re-locate, from city centre offices with such cost savings potentially available for productivity-enhancing innovation and investment.
The same research also found that remote working could also help improve linkages between foreign and Irish-owned firms, as it reduces geographical barriers to doing business.
Remote working can therefore help to boost Ireland’s international competitiveness, attractiveness as a destination for foreign direct investment and, as stated, the regional spread of jobs, important objectives of the Government’s new White Paper on Enterprise.
While the National Remote Work Strategy is a whole-of-Government endeavour, I would highlight the following actions being taken by my Department and its agencies to facilitate remote work in a way which maximises its economic, social and environmental benefits:
- Chairing the Remote Work Interdepartmental Group which oversees the implementation of the National Remote Work Strategy and coordinates remote working policy across Government;
- Legislating for the right to request remote working for all workers through the Work Life Balance and Miscellaneous Provisions Bill 2022;
- The publication of the Code of Practice on the Right to Disconnect by the Workplace Relations Commission;
- Significant investment in Ireland’s National Hub Network and ConnectedHubs.ie platform- with approximately €100m invested by the Government through various funding streams in partnership with the Department of Rural and Community Development (DRCD). The network includes Enterprise Ireland’s nationwide network of Enterprise Centres;
- My Department and the DRCD are leading on the development of a National Hub Strategy which will be launched later this year. The strategy will aim to maximise the potential of the National Hub Network as an enabler of enterprise, rural and regional employment, sustainable and resilient communities and as a contributor to achieving to Ireland’s ambitious climate action goals;
- My Department continues to update and promote its Guidance for Working Remotely webpage and Employer Checklist which help businesses to navigate the implementation of remote working arrangements safely successfully, and includes material from agencies such as the Health and Safety Authority and Enterprise Ireland;
- IDA Ireland, Enterprise Ireland and the Local Enterprises Offices have ongoing engagement with their client firms to share knowledge, skills best practice for the implementation of remote working arrangements;
- Enterprise Ireland has developed and continues to promote its Future of Work website which features a range of resources to assist companies in transitioning to the remote, hybrid and flexible working cultures of the post-Covid environment. IDA Ireland and EI have also partnered with Laois-Offaly Education and Training Board (ETB) to provide remote work skills training courses for employees and managers;
- Ireland’ remote working policy environment and infrastructure are being promoted to both indigenous businesses and international investors as part of the Government’s agenda for balanced regional development, as enablers of talent attraction and retention and as part of Ireland’s attractiveness as a destination for foreign direct investment.
Future trends in relation to remote working are difficult to predict and will be in influenced by many factors, including the preferences of employers and employees, labour market conditions and the evolution of Ireland’s enterprise base. However, I have no doubt that remote work will be a permanent feature of working life in Ireland, with significant potential benefits for Ireland in terms of labour market performance, productivity and international competitiveness.
106. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment his views on whether the Joint Labour Committee is working effectively; if he has any designs on increasing its powers; and if he will make a statement on the matter. [9168/23]
Amharc ar fhreagraIt is not clear as to which Joint Labour Committee (JLC) the Deputy is referring to. There are currently 9 JLC’s in existence, three of which are active.
It is my understanding that the English Language Schools JLC are currently seeking to formulate a proposal for an Employment Regulation Order to be submitted for my consideration.
JLC’s are independent in their functions and the Minister’s only role in the process is to give statutory effect to the proposal if the Labour Court adopt the proposals and submits to the Minister for consideration.
The EU Directive on Minimum Wages and Collective Bargaining was adopted by the European Council on 4th October. This Directive mandates Member States to create a supportive environment for collective bargaining.
In October 2022 the High-Level Group on Collective Bargaining submitted its final Report to the then Tánaiste Leo Varadkar.
The recommendations of the High-Level Group are currently being assessed and will be considered in parallel to the development of the action plan under the EU Directive.
107. Deputy Réada Cronin asked the Minister for Enterprise, Trade and Employment when his Department will move to recognise long-Covid in healthcare workers and others as an occupational injury, after they contracted Covid-19 on the front line, often when PPE was sparse; the current liaising that is taking place with the Departments of Health and Social Protection on same; and if he will make a statement on the matter. [8519/23]
Amharc ar fhreagraAs a public health infectious disease COVID-19 is a notifiable disease in Ireland since February 2020. It is notifiable to the Chief Medical Officer of the Department of Health and to the Health Protection Surveillance Centre like other public health infectious diseases.
Under the Safety, Health and Welfare at Work (General Application) Regulations 2016 all employers and self-employed persons are legally obliged to report all injuries, as a result of an accident while at work, if the employee is unable to carry out their normal work for more than three consecutive days. Diseases, occupational illnesses or any impairments of mental condition are not reportable to the Health and Safety Authority.
However, separately, on foot of an EU Directive, COVID-19 is designated as a biological agent under the Safety, Health and Welfare at Work (Biological Agents) (Amendment) Regulations 2020 (introduced on 22 November 2020). In conjunction with the introduction of the Regulations, the Health and Safety Authority introduced the 2020 Biological Agents Code of Practice. Under this Code of Practice an employer who becomes aware of a confirmed case of COVID-19 in an employee, as a result of the employee carrying out direct or deliberate work with coronavirus SARS-CoV-2, is required to notify the Health and Safety Authority. Reporting COVID-19 under the Biological Agents Regulations is about the reporting of COVID-19 when it is acquired as opposed to “Long Covid” which can be a resulting long-term condition.
I would stress that these Regulations, and the Code of Practice, have no bearing on the specific and separate issue of the inclusion of Long-Covid, in the Department of Social Protection’s Occupational Injuries Benefit Scheme. Any decision to include COVID-19 in the Occupational Injuries Benefit Scheme rests with the Minister for Social Protection.
I can confirm that correspondence from the Minister for Social Protection was recently received concerning an EU Commission communication recommending the recognition of COVID-19 as an occupational disease in specific circumstances. A reply issued to the Minister for Social Protection in early February.
108. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment the reason the general scheme of the Co-operative Societies Bill 2022 makes no provision for the re-establishment of a Co-operative Development Unit given its success in the establishment of co-ops when operational; if he is aware of the work of the Co-operative Development Unit in Scotland, especially its work in the establishment of hugely successful employee owned co-ops in Glasgow, which is now designated a Co-Op city; and if he will make a statement on the matter. [9172/23]
Amharc ar fhreagraThe general scheme of the Co-operative Societies Bill 2022 introduces a modern legal framework which will place the co-operative model on a more favourable and clear legal basis. This will encourage the consideration of the co-operative model as an attractive formation option for entrepreneurs and also for social and community activities. A modern legislative basis, including strong corporate governance requirements, will also provide confidence to stakeholders and help to encourage investment in co-operatives.
It should be noted that the co-operative model is one of a number of corporate options available to those considering establishing themselves in business. The forthcoming legislation will complement the already modernised and consolidated regime applying to companies. However, the choice of corporate model is a matter for the founders of any business and my Department does not promote any corporate structure over any other.
The general scheme has been informed by extensive consultation and engagement with key stakeholders. My Department will continue to engage widely with the co-operative sector and their representative bodies, professional advisers, enterprise development agencies, relevant Government Departments etc to raise awareness of the forthcoming legislation and the potential for those who wish to follow the co-operative ethos to grow and prosper under the modernised co-operative regime.
It is considered that the most appropriate way to raise awareness of the potential benefits of the co-operative model is through existing channels and structures. However, my Department will keep matters under review in the context of preparations for the forthcoming legislation. In any event, it should be noted that any additional supports that might be required within the remit of my Department would not need to be legislated for in the context of the co-operative societies legislation.
In developing the general scheme, my Department reviewed the co-operative arrangements across a range of other jurisdictions, both within the EU and elsewhere. This included the situation in Scotland and more widely in the UK. This work informed the development of the general scheme, which is intended to facilitate the wide diversity of entities who wish to operate under the co-operative ethos.
109. Deputy Michael Moynihan asked the Minister for Enterprise, Trade and Employment if he will provide an update on the proposed Co-Operative Societies Bill 2022; and if he will make a statement on the matter. [9217/23]
Amharc ar fhreagraOn 9 November 2022, the Government approved the drafting of the Co-operative Societies Bill 2022. The General Scheme represents the most far-reaching reform of the legislation regarding Co-operative Societies in almost 130 years. The proposals will consolidate, modernise and strengthen the legislative basis for the sector and enshrine the co-operative model in legislation for the first time. This will allow co-operatives to operate under a modern, fit for purpose legislative framework, and provide an attractive alternative to the company law model for those entities who subscribe to the co-operative ethos.
Pre-legislative scrutiny of the general scheme by the Joint Oireachtas Committee on Enterprise, Trade and Employment commenced on 14 December 2022 and is ongoing. Given the size and complexity of the proposed legislation, I do not expect the drafting of the Bill to be completed before late 2023.
110. Deputy Brendan Griffin asked the Minister for Enterprise, Trade and Employment if he will provide an update on the provision of an advance technology building via the IDA at Kerry Technology Park, Tralee, County Kerry; if he will help drive this important project for Kerry given the relative underperformance of the county in terms of employment figures under IDA-supported companies; and if he will make a statement on the matter. [9271/23]
Amharc ar fhreagraIDA Ireland’s property investment programme is aimed at supporting economic development and job creation across IDA’s, Enterprise Ireland's and local LEO’s respective client base.
IDA Ireland is committed to building a new (second) Advanced Technology Building in Tralee. In 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. IDA Ireland is proposing to identify a site within the land bank to accommodate the construction of an Advance Building Solution announced as part of the IDA Strategy Driving Recovery & Sustainable Growth 2021–2024. This significant investment 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. Securing planning permission and the construction of the building will take time and is subject to a number of complex design, planning and procurement processes.
Government and the IDA are committed to winning opportunities for Kerry as demonstrated in their Strategy Driving Recovery and Sustainable Growth 2021-2024, which commits the organisation to winning new investments for every region of Ireland. The South-West Region (Kerry & Cork) has the largest target of any region outside Dublin of 118 investments. There is a strong focus on supporting existing IDA client companies already in Ireland to minimise downsizings or closures and while some industry sectors are performing well others have been impacted significantly as a result of the pandemic and/or a downturn. IDA Ireland continues to monitor and work with these companies in relation to providing supports and assistance to enable these companies to continue to transform and grow. IDA Ireland continues to engage with new and existing companies on promoting Ireland as a location for their business and the Agency will continue to position County Kerry for site visits to prospective companies in 2023 and beyond.
Currently, there are 17 IDA client companies employing 2,020 people located in Kerry. Over the past 9 years there has been a 21% growth in the number of people employed by IDA client companies in Kerry.
112. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the current strategy in place to assist small businesses through the current cost-of-living crisis; if any further initiatives are contemplated in this regard; and if he will make a statement on the matter. [9179/23]
Amharc ar fhreagra137. Deputy Joe Flaherty asked the Minister for Enterprise, Trade and Employment if he will be taking any new measures to help businesses with inflation; and if he will make a statement on the matter. [9094/23]
Amharc ar fhreagraI propose to take Questions Nos. 112 and 137 together.
Budget 2023 contained a number of measures aimed at assisting small businesses with rising costs. The main programme introduced by Government to alleviate cost pressures for small business was the €1.25 billion Temporary Business Energy Support Scheme (TBESS). As you are aware the Government announced on Tuesday last a new round of cost of living supports. As part of this the Temporary Energy Support Scheme is being amended to allow more businesses apply for this grant.
It is now proposed to make the following amendments to the TBESS scheme:
- To 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.
- To reduce the ‘energy cost threshold’ for the scheme, such that a tax compliant business may 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 such that businesses who were not previously eligible for the scheme due to the 50 percent energy cost threshold may now be eligible for the scheme.
- To increase, on a prospective basis 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.
- The monthly cap will also be raised from €10,000 to €15,000 from 1st March onwards.
It should be noted that 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.
There will also be a new scheme for grants to businesses who rely on oil and LPG as their energy source.
The Government also approved the following which will help businesses going forward.
- 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.
Alongside these supports, as part of Budget 2023, the Government introduced the €200 million Ukraine Enterprise Crisis Scheme, which assists viable but vulnerable firms of all sizes in the manufacturing and internationally traded services sectors manage the economic impact of the current crisis in Ukraine. The scheme is aimed at businesses experiencing significant difficulty as a result of increased energy costs. Through supporting businesses in meeting energy costs, these measures will help protect the jobs of those working in impacted sectors.
Falling wholesale gas prices are now beginning to feed through to wholesale electricity prices, and while it may take a period of time for this to feed completely through to reduced energy bills, there are no plans currently in place for additional support targeted at tackling costs for businesses beyond those announced on Tuesday. Government will continue to keep developments in energy costs under review.
Government has supported enterprise though a period of excessive energy costs. However, Government cannot fully insulate businesses from developments in international energy markets indefinitely, and the latest cost-of-living measures announced on Tuesday reflect a more targeted approach focused on the most vulnerable groups.
The Government continues to offer supports to firms improving their energy efficiency, helping businesses reduce the amount of energy they use in the first place and improving take-up of the approximately 20 existing schemes that are in place for business to help them reduce their energy costs. These include the Green4Micro programme and the Climate Toolkit for Business. Additionally, small businesses can receive an energy audit voucher from SEAI to get professional advice on how to increase efficiency and reduce their costs. Other financial assistance includes the SEAI Community Grant and grants for microgeneration.
113. Deputy Ged Nash asked the Minister for Enterprise, Trade and Employment his views on a report (details supplied) which was commissioned by a trade union; and if he will make a statement on the matter. [9001/23]
Amharc ar fhreagra135. Deputy Holly Cairns asked the Minister for Enterprise, Trade and Employment his response to the report by an organisation (details supplied) which shows that nearly two-thirds of retail workers are earning less than €451 per week. [8584/23]
Amharc ar fhreagraI propose to take Questions Nos. 113 and 135 together.
I would like to assure the deputies that I welcome the report insofar as it raises issues that will start a dialogue around the review of some very important employment rights legislation.
The Government is committed to supporting workers and has a strong record on strengthening and introducing new workers’ rights. These include the introduction of statutory sick pay, protection of tips and a new bank holiday in 2022.
My Department closely monitors national and international developments and 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.
On that basis, 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 carried out now.
114. Deputy Richard Bruton asked the Minister for Enterprise, Trade and Employment if the early experience with the small company rescue scheme is showing it has the capacity to allow viable businesses restructure arrangements in order that jobs and livelihoods can be sustained. [8135/23]
Amharc ar fhreagraThe Companies (Rescue Process for Small and Micro Companies) Act 2021, which provides for the Small Company Administrative Rescue Process, came into effect on 7 December 2021. The legislation was developed in close collaboration with stakeholders, via the Company Law Review Group, to ensure that the Process reflects a fair balance of interests of parties affected by corporate rescue.
I am pleased the Process, which provides an accessible and cost-effective restructuring process for small viable companies experiencing temporary financial problems, has been welcomed as a valuable addition to the State’s restructuring toolkit for our small company sector which accounts for over 98% of companies and employs in the region of 788,000 people.
My Department is monitoring the usage of the Process and to date, 24 small companies have availed of the Process. The decision to enter the Process is a matter for individual firms and their respective advisers. The availability of the Process as a means to restructure can also encourage creditors to engage constructively with viable companies in distress, diminishing the necessity to enter into it.
115. Deputy Paul McAuliffe asked the Minister for Enterprise, Trade and Employment the uptake to date by businesses in relation to energy costs supports; his plans to extend supports to businesses; and if he will make a statement on the matter. [9264/23]
Amharc ar fhreagraThe 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 of Wednesday 15 February, 2023, the no of applications are 23,532. No of approvals 18,506 to the value of €38.32million. I am aware that this scheme has been under-subscribed and that is why 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.
