Written Answers Nos. 61-80
62. Deputy Richard Bruton asked the Minister for Enterprise, Trade and Employment if he has analysed to the main sources of pressure on business costs at present, and how he believes these might best be addressed. [5742/24]
Amharc ar fhreagra64. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment for consideration with current financial operating difficulties experienced by SMEs to expand and provide direct financial supports to domestically focused retail, personal services, professional services and construction services; and if he will make a statement on the matter. [5698/24]
Amharc ar fhreagra75. Deputy Matt Shanahan asked the Minister for Enterprise, Trade and Employment if his Department is aware of the significant pressures facing business in the restaurant and hospitality sector; the steps his Department is taking to address the challenges now being experienced in these sectors; and if he will make a statement on the matter. [5747/24]
Amharc ar fhreagraI propose to take Questions Nos. 62, 64 and 75 together.
Although not unique to Ireland, it is understandable that businesses are concerned about the impact of rising costs. It is also important to acknowledge that SMEs, and in particular the retail and hospitality sectors, are key employment generators for Ireland, particularly in more rural areas.
While input costs have gone up for many businesses since 2021, wholesale price inflation has levelled off across a number of areas in recent months. Although the Wholesale Price Index – which measures changes in the price of wholesale inputs – is up by 2.1 per cent in the year to December 2023, electricity prices were 67.8% lower than in December 2022, while wholesale food prices were 8.5% lower.
The Government has provided significant support to enterprise throughout the period of increasing costs and has been proactive in this regard. However, it is not possible to insulate every business from the total impact of rising costs.
Over the two years prior to Budget 2024, a total of €12 billion was provided in cost of living and doing business supports, comprising a mix of permanent and one-off measures, including the Temporary Business Energy Support Scheme (TBESS). Budget 2024 also contained several measures to support businesses facing increased costs. For example:
• The 9% VAT reduction for gas and electricity was extended for an additional 12 months, until the 31st of October 2024;
• The temporary excise rate reductions applying to auto diesel, petrol and marked gas oil were extended, until the 31st of March 2024; and,
• There was an increase in VAT registration thresholds for SMEs to €40,000 for services and €80,000 for goods.
The Increased Cost of Business Scheme (ICOB) was also announced as part of Budget 2024 and will provide a grant to benefit a significant number of small and medium businesses at a cost of €257 million. The ICOB Grant will be available to up to 143,000 businesses, or 95% of all commercially trading business, operating from a rateable businesses in all corners of Ireland. The administration of the ICOB will be carried out by Local Authorities and it is intended that the grant will be provided to qualifying premises in the first quarter of this year.
My Department, in collaboration with the Department of Social Protection, is also assessing the cumulative impact of recent and forthcoming changes to working conditions, including the Auto-Enrolment Retirement Savings Scheme, Parent’s Leave and Benefit, Statutory Sick Pay, the Additional Public Holiday, the Living Wage, and Remote Working. The report is currently being finalised and will inform public policy in this area.
This Government has adopted an active approach in supporting Irish businesses across multiple crises over the last number of years, including the introduction of unemployment supports during the COVID-19 pandemic, the provision of financial supports to firms facing the implications of Brexit, and more recently, through the period of increasing overhead costs. My Department is fully committed to serving the SME, hospitality and retail sectors, and the measures included in Budget 2024 reflect this.
65. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment the position on the single application procedure for a combined employment and residence permit; his engagement to date with the Minister for Justice on progressing this process to be made available; and if he will make a statement on the matter. [5697/24]
Amharc ar fhreagra82. Deputy Colm Burke asked the Minister for Enterprise, Trade and Employment the progress that has been made to date by his Department in respect of streamlining the employment permit applications process, whereby a single application process for employment permits and entry visa applications would be established; and if he will make a statement on the matter. [5645/24]
Amharc ar fhreagraI propose to take Questions Nos. 65 and 82 together.
Currently, a person from outside the European Economic Area must first make an application to the Department of Enterprise, Trade and Employment for an employment permit, and then make a second application to the Department of Justice for an immigration permission. Both applications are subject to consideration of separate processes requiring different data.
In December 2022, the Taoiseach, in his previous role as Minister for Enterprise, Trade and Employment, jointly with the Minister for Justice McEntee, secured the agreement of Government for the establishment of an Inter Departmental Working Group to develop an implementation plan for a streamlined, single application procedure for employment permits and immigration permissions. Over the course of 2023 this Inter-Departmental Working Group, chaired by the Department of Justice, planned for the establishment of a single application procedure, and committed to report to Government an implementation plan, to include relevant timelines, costs and resources. This report is expected to be finalised in the coming weeks. The implementation plan has been developed with a view to opting into the recast Single Permit Directive. The IDG has concluded its work, officials from the Department are supporting Department of Justice in drafting and finalising the Report to Government.
If opted into, the Single Permit Directive would see Ireland adopt a single application procedure for Employment Permits and Visa/Immigrations. This would be a positive step, which would enhance usability, and bring Ireland in line with EU standards with an efficient one-stop-shop process for third country nationals and companies using the system.
The work on a single application procedure takes place in conjunction with other efficiency-gaining initiatives. The current employment permit processing system utilises several ageing IT systems, and DETE is seeking to redevelop these processes using cloud-based solutions. Permit applications will be submitted through a new online portal which will seek to ensure applications are submitted in line with the requirements of that permit type, in order to maximise processing efficiency and provide a quicker turnaround time for users. A new back-end system will also be developed to support the optimal processing of employment permit applications, with comprehensive reporting of key metrics to manage demands on the service. Contracts with an ICT provider were signed in January 2023 with initial development work commencing in February. The technical development phase of the project is underway, and it is anticipated that the project will be completed in Q3 2024.
66. Deputy Richard Boyd Barrett asked the Minister for Enterprise, Trade and Employment given that an increasing number of employers are in breach of national minimum wage laws, but the number of prosecutions is low, how is he going to enforce minimum wage law compliance and if there will be additional penalties to employers for minimum wage law breaches; and if he will make a statement on the matter. [5797/24]
Amharc ar fhreagraThe National Minimum Wage Act, 2000 provides for the obligation to pay an employee a national minimum hourly rate of pay and applies to all individuals engaged under a contract of employment. Apart from the employment of close family relatives and the engagement of registered industrial apprentices, there is no exemption in law from the obligation to pay the national minimum hourly rate of pay.
The Workplace Relations Commission (WRC) carries out inspections of employer records with a view to determining compliance with certain employment law statutes including the National Minimum Wage Act, 2000. Inspections arise for various reasons including complaints received of alleged non-compliance and by way of compliance campaigns which focus on specific sectors or with specific employment law statutes.
The WRC’s aim is to achieve voluntary compliance through the provision of education and awareness, inspections of employment records and workplaces, and enforcement where necessary. Where evidence of breaches of the provisions of the National Minimum Wage Act, 2000 are detected by WRC inspectors, and if an employer fails, or refuses to rectify the matter, the employer may be liable to prosecution. Where an employer is found to be in in breach of the Act but subsequently complies with requirements and pays arrears of wages following intervention, that employer is likely to have a return re-inspection to ensure compliance is maintained.
Failure to pay the national minimum hourly rate of pay is a criminal offence, punishable upon summary conviction, by a fine not exceeding €2,500 or imprisonment not exceeding 6 months or both. In addition, an employee not in receipt of the national minimum hourly rate of pay may refer a complaint to a WRC Adjudication Officer who may order payment of the wages unpaid or underpaid.
Since 1/1/2019, WRC inspectors uncovered 998 contraventions under the NMW, covering 921 employers. None of the employers who were subsequently re-inspected by the WRC were found to be in breach of the Act.
To coincide with the increase in the National Minimum Wage in 2023, the WRC conducted a national information and inspection campaign throughout Q1 of 2023. The purpose of the campaign was to create awareness of the NMW increase while also conducting inspections to ensure compliance with the new rates. A similar campaign was also carried out in January of this year and is ongoing.
I am satisfied that the WRC’s approach to achieving compliance with the legislation is both effective and proportionate. There are currently no plans to increase the penalties under the legislation.
68. Deputy Pauline Tully asked the Minister for Enterprise, Trade and Employment the steps his Department took to consult with Disabled Persons Organisations, in line with Article 4 (3) of the United Nations Convention on the Rights of Persons with Disabilities (UNCPRD), in relation to the White Paper on Enterprise 2022-2030; and if he will make a statement on the matter. [5758/24]
Amharc ar fhreagraThe development of the White Paper was underpinned by an extensive consultation process, to ensure the views, experience and aspirations of Ireland’s citizens, workers and businesses were adequately captured in the analysis.
My Department held a public consultation process from 3 July to 29 July 2022. As part of the Department’s aim to ensure a broad reach during this consultation process, I am informed that letters issued to a wide range of stakeholders, including Disabled Persons’ Organisations, inviting them to participate in the public consultation exercise.
The National Disability Authority provided a direct submission in response to the public consultation, while Disability Federation Ireland were listed as members of Coalition 2030 in their submission. Furthermore, disability issues were also raised in the submissions of various other groups.
69. Deputy John Lahart asked the Minister for Enterprise, Trade and Employment his plans for the development of the co-operative sector; and if he will make a statement on the matter. [5451/24]
Amharc ar fhreagraThe Co-operative Societies Bill provides for the most far-reaching reform of the legislation regarding co-operative societies in over 130 years. The Bill provides for a specific legislative framework for co-operative societies for the first time, with societies registering under the legislation being required to adhere to the co-operative ethos. It consolidates and modernises existing provisions and introduces modern corporate governance, financial reporting and compliance requirements, thereby providing confidence to stakeholders and making co-operatives more attractive to investors.
Experience internationally suggests that the potential of co-operatives in Ireland has not been fully exploited and that there is scope for the co-operative model to play a greater role across a wider range of activities. The Bill introduces a modern legal framework which will place the co-operative model on a more favourable and clear legal basis. It will create a level playing field with the situation applying to companies and encourage the consideration of the co-operative model as an attractive formation option for entrepreneurs and also for social and community activities.
The Bill includes provisions to make it easier to set-up and operate a co-operative society – by reducing the minimum number of founding members (from seven to three); expanding the categories of founding members to include bodies corporate; providing for audit exemptions for smaller co-operatives; and providing for virtual and hybrid participation at general meetings. The legislation will also repeal the existing outdated provisions on raising funds which will make it easier to access various sources of finance.
In recognition of the significant diversity across the co-operative sector, the Bill seeks to provide as much flexibility as possible, thereby empowering co-operative societies to reflect in their rules what best suits their own particular circumstances.
Drafting of the Bill is ongoing by the Office of the Parliamentary Counsel, in consultation with officials in my Department. Due to the length of the Bill and its complex nature, it is not envisaged that drafting will be finalised and the Bill brought to Government for publication until Quarter 2 of this year.
71. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 17 of 23 November 2023, for an update on plans to remove dental nurses from the ineligible occupation list; and if he will make a statement on the matter. [5480/24]
Amharc ar fhreagraI announced the report of the 2023 Review of the Employment Permits Occupation Lists in December last which delivered comprehensive changes to the employment permits system.
The report comprised the addition of 11 roles to the critical skills occupations list and the removal of 32 roles from the ineligible occupations list (with or without quota) thus becoming eligible for a general employment permit. A roadmap up to January 2026 for increasing salary thresholds for employment permits has also been introduced which commenced the first adjustments to the Minimum Annual Remuneration thresholds from 17th January.
The Department received 112 distinct submissions to the review from a range of stakeholders including small and medium sized entities, government departments and employment permit users. Within those submissions were requests to change the status of 356 separate roles across a wide range of sectors in the economy. One submission was received which made reference to dental nurse.
Submissions to the review were subject to consideration by the Interdepartmental Group on Economic Migration Policy. The IDG consists of cross-departmental membership including the Department of Health, which has policy responsibility for the dental sector.
Based on the evidence and submission under consideration, the role of dental nurse was assessed and determined as not appropriate for adjustment at this time and therefore the role remains on the Ineligible Occupation List at present.
However, my Department has since invited the submitter to make a new evidence-based submission. I am mindful that the dentistry sector has experienced labour challenges in recent times and an increase in vacancies could represent an attendant risk to dental service delivery in the State. Should a further evidence-based case be made to my Department, it will be examined and taken into full consideration.
A report which summarises the changes introduced following the review of the occupations lists can be found on the Department’s website.
74. Deputy Matt Carthy asked the Minister for Enterprise, Trade and Employment in light of the order of provisional measures of 26 January 2024 by the International Justice in the case of South Africa v. Israel, if he has conducted an analysis of Ireland’s legal obligations regarding the granting of export licences for dual use commercial items with military applications; if he has sought input from the Department of Foreign Affairs regarding human rights implications; and if he will make a statement on the matter. [5743/24]
Amharc ar fhreagraMy Department is the National Competent Authority with responsibility for Export Controls, including Controls on defence-related exports and exports of Dual-Use goods. Controls on the export of Dual-use items are administered by my Department, in accordance with Regulation (EU) 2021/821 of the European Parliament and of the Council setting up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items.
Dual-use items are products and components, including software and technology, that can be used for both civil and military applications. The bulk of Dual-use exports from Ireland are mainstream business ICT products, both hardware and software (networking, data storage, cybersecurity etc). They are categorised as Dual-use items as a consequence of the fact that they incorporate strong encryption for ICT security purposes.
My officials seek the views of the Department of Foreign Affairs in respect of all applications for export licences including those destined for Israeli end users. The Department of Foreign Affairs reviews all dual-use export license applications received from my Department against the eight assessment criteria set out in Council Common Position 2008/944/CFSP – criterion two of which is “Respect for human rights in the country of final destination as well as respect by that country of international humanitarian law” and criterion three of which is "Internal situation in the country of final destination, as a function of the existence of tensions or armed conflicts".
Accordingly, the Department of Foreign Affairs raises relevant human rights considerations in respect of all export license applications received from my Department, including those concerning dual-use exports to Israel, which are taken into account in the final risk assessment of any licence application.
76. Deputy Robert Troy asked the Minister for Enterprise, Trade and Employment for an update on the on the implementation of the non-financial reporting directive and what supports will be available to help businesses implement same; and if he will make a statement on the matter. [5648/24]
Amharc ar fhreagraI understand that the Deputy is referring to Corporate Sustainability Reporting Directive (EU) 2022/2464 which entered into force in January 2023 and replaced the Non-financial Reporting Directive 2014/95/EU. Ireland along with other EU member states has until 6 July 2024 to transpose the Directive and officials in my Department are working with the Office of the Parliamentary Counsel on the necessary legislation to give effect to the new requirements for sustainability reporting by large companies and public interest entities.
The introduction of the new requirements has been sequenced in the Directive whilst still maintaining ambition. This will allow companies, the accounting and audit industry time to understand the new standards, start measuring the relevant data and deepen the knowledge and skills necessary.
The Directive arises from the European Green Deal’s climate change action objectives, to further enhance the disclosure by companies on climate and environmental data. There are a suite of Government supports available to assist companies of all sizes in the green transition, including supports to enhance the people and digital skills that will be needed. I would encourage all companies, to engage with the supports on offer through the enterprise agencies, Enterprise Ireland, IDA Ireland, LEOs, and the SEAI.
77. Deputy Matt Shanahan asked the Minister for Enterprise, Trade and Employment the recent round of collective bargaining has agreed a significant increase in wages across the public service sector which will guide private sector remuneration also; the reason the relative difference in average pay disparity between public sector remuneration versus SME sector remuneration in Ireland is now among the widest in the European union; and if he will make a statement on the matter. [5748/24]
Amharc ar fhreagra78. Deputy Robert Troy asked the Minister for Enterprise, Trade and Employment for an update on the awarding of a tender for the construction of an advanced manufacturing factory at Marlinstown Business Park, Mullingar; and if he will make a statement on the matter. [5647/24]
Amharc ar fhreagraAs the Deputy is aware, the availability of appropriate, innovative, and cost-effective property solutions that meet the needs of multinational companies at the forefront of a modern economy remains essential to winning Foreign Direct Investment (FDI). A robust property and infrastructure ecosystem can be the key differentiator in winning FDI projects.
The IDA Regional Property Programme ensures the supply of land, buildings and essential infrastructure in regional locations as required by current and prospective clients of IDA as well as those of Enterprise Ireland and the Local Enterprise Offices. Under its current strategy, ‘Driving Recovery and Sustainable Growth 2021–2024’, IDA is progressing delivery of 19 Advanced Building Solutions (ABS) in regional locations.
Eight properties have been completed since the start of the current strategy, in Monaghan, Sligo, Dundalk, 2 in Limerick, Carlow, Waterford and Athlone. A further 5 buildings are anticipated to be on site in 2024 including the advanced manufacturing factory at Marlinstown Business Park, Mullingar.
I am further advised that IDA Ireland secured planning permission from Westmeath County Council in November 2022 for the construction of a c.50,000sq.ft. Advanced Building Solution consisting of office and light industrial/production spaces which also included a vehicular/pedestrian entrance, signage, new timber post-and-rail boundaries, car parking, cycle shelters, landscaping, gas skid, underground storage tank, independent ESB substation & switch room building, access road and all associated site works. IDA Ireland subsequently commenced the procurement process for the selection of a suitably qualified contractor to complete the development. However, the tender process is the subject of judicial review proceedings and, therefore, IDA Ireland cannot comment further until those proceedings are resolved.
More generally. many factors impact on timelines for the delivery of construction projects and the construction industry continues to be impacted by global supply chain and cost inflation challenges. Despite these challenges and the impacts on both works & budgets, IDA’s Property Division has maintained momentum on the delivery of its Regional Property Programme and is committed to the timely delivery of a building solution in Mullingar.
79. Deputy Thomas Pringle asked the Minister for Enterprise, Trade and Employment to outline the funding and job creation measures his Department and bodies under the aegis of his Department have undertaken in County Donegal in 2023; and if he will make a statement on the matter. [5780/24]
Amharc ar fhreagraSince taking office, this Government has made regional development a priority. My Department and its agencies have contributed to this effort through funding and job creation measures all across the country, including in Donegal.
This approach is guided by the White Paper on Enterprise, which sets out the Government’s approach to enterprise policy for the period to 2030.
The Local Enterprise Offices (LEOs), play an important role at local level as part of a supportive ecosystem, providing services directly to small businesses and promoting entrepreneurship. The LEOs are the first-stop-shop for every business in the country and provide a ‘signposting’ service for all government supports. The results in Donegal LEO have been very positive, with year-on-year increases in the number of assisted clients and total jobs since 2020.
Employment in Enterprise Ireland client companies in Donegal was 3,479 in 2023. The total number of jobs created was 287, with a positive net jobs result of 140 in a very challenging year for businesses.
In Donegal there are 22 IDA client companies employing 5,036 people. From 2018 to 2023 over €21 million in grant support was approved for IDA client companies.
My Department oversees the implementation at national level of nine Regional Enterprise Plans, which facilitate regional stakeholders to work collaboratively to identify growth opportunities, recognise vulnerabilities, and in response strengthen the regional enterprise ecosystem. Donegal, along with Sligo and Leitrim, is covered by the North-West Regional Enterprise Plan.
This Government has provided substantial funding to assist regions to support enterprise activity, promote regional growth across the country and create jobs. My Department has provided over €126 million in funding various schemes to support enterprise development and regional jobs growth. The North-West region of Donegal, Sligo and Leitrim has secured €15.5 million in funding under these schemes with Donegal securing €4.7 million for two projects.
With regard to new funding, the Deputy will be aware that last October I launched the Smart Regions Enterprise Innovation Scheme worth €145 million and co-funded under the European Regional Development Fund. This Scheme will support projects aligned to the Regional Enterprise Plans. The first call of €35 million is now open and there will be further calls in the coming years. I urge projects from Donegal and the North-West to apply for this funding; the regional team in Enterprise Ireland is ready to work with potential applicants.
80. Deputy Aengus Ó Snodaigh asked the Minister for Enterprise, Trade and Employment the steps he is taking to ensure small businesses can remain solvent given the increase in overheads including electricity, gas, insurance, wages, rates and supplies which if passed on to the customer would lead to a loss of business; and if he will make a statement on the matter. [5438/24]
Amharc ar fhreagraThe Government has provided significant support to enterprise throughout the period of increasing costs and has been proactive in this regard. However, it is not possible to insulate every business from the total impact of rising costs.
Over the two years prior to Budget 2024, a total of €12 billion was provided in cost of living and doing business supports, comprising a mix of permanent and one-off measures. The main programme introduced by Government to alleviate cost pressures for small business was the Temporary Business Energy Support Scheme (TBESS), with businesses receiving direct payments and tax liability offsets to the value of €150 million.
Budget 2024 also contained several measures to support businesses facing increased costs, including:
• 9% VAT reduction for gas and electricity was extended for an additional 12 months, until the 31st of October 2024;
• temporary excise rate reductions applying to auto diesel, petrol and marked gas oil were extended, until the 31st of March 2024; and,
• an increase in VAT registration thresholds for SMEs to €40,000 for services and €80,000 for goods.
The Increased Cost of Business Scheme (ICOB) was also announced as part of Budget 2024 and will provide a grant to benefit a significant number of small and medium businesses at a cost of €257 million. The grant will be at a rate of half an enterprise’s commercial rates bill, for 2023, for firms paying up to €10,000 in rates. A flat €5,000 grant will be available to firms who pay between €10,000 and €30,000 in rates.
The ICOB Grant will be available to up to 143,000 businesses, or 95% of all commercially trading business, operating from a rateable businesses in all corners of Ireland. The administration of the ICOB will be carried out by Local Authorities and it is intended that the grant will be provided to qualifying premises in the first quarter of this year. The grant scheme has been set up in the way so as to ensure that the scheme is accessible to smaller businesses, who may have had difficulties availing of previous schemes.
My Department, in collaboration with the Department of Social Protection, is also assessing the cumulative impact of recent and forthcoming changes to working conditions, including the Living Wage, Auto-Enrolment Retirement Savings Scheme, Parent’s Leave and Benefit, Statutory Sick Pay, the Additional Public Holiday, and Remote Working. This follows a recommendation by the National Competitiveness and Productivity Council that a cumulative impact assessment be undertaken. The report is being finalised with publication due in the upcoming weeks and will inform public policy in this area.
This Government has adopted an active approach in supporting Irish businesses across multiple crises over the last number of years, including the introduction of unemployment supports during the COVID -19 pandemic, the provision of financial supports to firms facing the implications of Brexit, and more recently, through the period of increasing overhead costs. My Department is fully committed to serving the SME sector and the measures included in Budget 2024 reflect this.
