Written Answers Nos. 78-97
78. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment his views on the paper from a report by an organisation (details supplied) ‘Challenging Myths and Improving Working Conditions in a Strong Economy’. [16750/24]
Amharc ar fhreagraThe report referenced by the Deputy provides a commentary by ICTU on recent and forthcoming changes to working conditions that are planned, or have already been introduced, by this Government. Last month, a report by officials from several Departments, including my own - and all members of the Irish Government Economic and Evaluation Service (IGEES) - was published. This set out an assessment of the cumulative impact of these various measures, namely the transition to a Living Wage, Auto-Enrolment Retirement Savings, Parent’s Leave and Benefit, Statutory Sick Pay, an Additional Public Holiday, the Living Wage, and Remote Working.
In preparing this impact assessment, officials from my Department met with both employer and employee representatives, including ICTU, to ensure that their views were reflected in the report.
As outlined in the IGEES report, these improvements to working conditions will bring wider societal benefits and will serve to bring Ireland in line with other advanced economies. In addition, 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.
However, the IGEES report also recognises that businesses may face rising costs as a result of the introduction of these measures, in particular in the short term. Reflecting the findings of this assessment, a range of measures are being brought forward to assist businesses in adjusting to these increased costs as well as more generally to improve the cost competitiveness of firms. These measures include making available up to €15 million to Local Enterprise Offices to enable a top up payment of up to €3,000 in the Energy Efficiency Grant for businesses in the hospitality and retail sectors bringing the grant up to €8,000; preparation of an options paper on the application of the lower 8.8% rate of Employer PRSI contribution and the National Training Fund; a range of measures to reduce red tape and the administrative burden on business, including: an enhanced SME Test; accelerating the roll out of a fully functioning National Enterprise Hub with staff available to provide immediate advice and support to vulnerable firms.
My Department is fully committed to supporting businesses, while also ensuring that working conditions in Ireland are on a par with those of our trading partners. This is why these changes to working conditions are being introduced, alongside a suite of measures designed to support enterprise.
79. Deputy James Lawless asked the Minister for Enterprise, Trade and Employment his response to the Central Bank report that shows a large decrease in the cost of settling insurance claims through the Injuries Resolution Board; and if he will make a statement on the matter. [16910/24]
Amharc ar fhreagraThe reform and enhancement of the Injuries Resolution Board, with the overarching aim to have more claims settled through the Board, has been a priority for me since taking office.
We are now seeing the strengthening of the Board through the Personal Injuries Resolution Board Act 2022, bringing new functions for the agency and significantly the introduction of a mediation service for personal injuries claims. The Act was enacted in December 2022 and has been commenced over three phases in 2023.
The mediation service will support the early settlement of injury claims in our country through the mutual agreement of the parties involved and reduce the costs, time and stress for all involved. Mediation was introduced for employer liability claims last December and I intend to commence mediation for public liability injury claims in May and for motor liability injury claims in September this year.
I welcome the recent Central Bank’s third ‘National Claims Information Database - Employers’ Liability, Public Liability and Commercial Property Insurance Report’ published on the 4th of April. The report shows that in 2022 the average cost of injury claims that settled through the Injuries Resolution Board, under the Personal Injuries Guidelines, was 33% lower in comparison to the average cost of claims settled under the Book of Quantum in 2020.
This follows the Central Bank’s NCID report on Private Motor Insurance in December 2023 which noted a similar reduction in the cost of settling motor claims through the Board in 2022 under the Personal Injury Guidelines as against 2020 under the Book of Quantum. The Central Bank’s reporting shows the impact of the Personal Injuries Guidelines, introduced in April 2021, on the cost of claims is significant.
Each year the Central Bank’s NCID reports highlight the savings in costs and time when injury claims are settled through the Injuries Resolution Board, rather than through litigation. The agency’s work in 2022 directly generated €40 million in savings that would otherwise have been spent on progressing claims through the litigation system.
The recent Supreme Court judgement, in Bridget Delaney vs. the Personal Injuries Assessment Board, the Judicial Council, Ireland and the Attorney General, that the Guidelines are legally binding brings welcome clarity on the matter and provides for a consistent and predictable system for deciding personal injury compensation.
We are still at an early stage in seeing the full impact of the Guidelines given that cases where the award of the Injuries Resolution Board has not been accepted can take several years to come to Court. However, I fully expect that future Central Bank reports will demonstrate the positive impact of the Guidelines on costs on an even greater scale.
Responsibility lies with insurers to now reflect reductions in settling injury claims in insurance premiums.
81. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 341 of 20 March 2024, for an update on plans to remove dental nurses from the ineligible occupation list; and if he will make a statement on the matter. [16846/24]
Amharc ar fhreagraI understand that following engagement with the Department of Health - which has policy responsibility for the dental sector - the Interdepartmental Group on Economic Migration Policy concluded that the Irish Dental Association's submission to the 2023 review of the Occupations Lists did not contain sufficient evidence to support a change in the status of Dental Nurse in respect of its eligibility for employment permits.
As you will be aware, my Department has since then invited the Irish Dental Association to provide a new evidence-based submission on the case for a change in the status of Dental Nurse.
While a follow-up submission has yet to be received, I understand that engagement between the Department and the Irish Dental Association is continuing.
82. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment his views on the possibility of the State providing supports for businesses in meeting their obligations as regards a living wage, where the business in question has taken a case to the Labour Court under section 41 of the National Minimum Wage Act 2000. [16751/24]
Amharc ar fhreagraThe Labour Court may exempt an employer from the obligation to pay the National Minimum Wage if the employer can demonstrate financial difficulty under the provisions of Section 41 of the National Minimum Wage Act 2000. If an employer cannot afford to pay the minimum wage due to financial difficulty, the Labour Court can exempt them from paying the minimum wage rate for between three months and one year, where the employer has not previously applied for such an exemption.
Where an exemption is sought, the employer must have the agreement of a majority of employees and employees must consent to abide by any decision on the application that the Labour Court may make. The employer must be able to demonstrate that they are unable to pay the minimum wage and that, if they were compelled to pay, they would need to lay off or dismiss employees.
The State does not intend to provide further supports to compensate firms for meeting their commitments in paying the National Minimum Wage. However, the Government has and is providing a number of supports to firms to aid them in adjusting to rising costs they may be facing more generally and to boost their productivity and competitiveness and help firms to adjust to the green and digital transitions. Indeed, where an employee is in receipt of an increased earnings this represents a transfer which provides for a rise in consumer expenditure.
My Department, in collaboration with the Department of Social Protection, assessed the cumulative impact of changes to working conditions, including Auto-Enrolment Retirement Savings Scheme, Parent’s Leave and Benefit, Statutory Sick Pay, the Additional Public Holiday, the Living Wage, and Remote Working. This report was published on the 5th March. The paper recognises that businesses may face rising costs, in particular in the short term. Reflecting the findings of this assessment, a range of measures are being brought forward to assist businesses in adjusting to these increased costs as well as more generally to improve cost competitiveness of firms.
These measures include making available up to €15 million to Local Enterprise Offices to enable a top up payment of up to €3,000 in the Energy Efficiency Grant for businesses in the hospitality and retail sectors bringing the grant up to €8,000. In addition, an options paper on the application of the lower 8.8% rate of Employer PRSI contribution is currently being prepared and we will also take steps to reduce red tape and the administrative burden on business, including: an enhanced SME Test; accelerating the roll out of a fully functioning National Enterprise Hub with staff available to provide immediate advice and support to vulnerable firms. This is in addition to a €257 million package for the Increased Cost of Business grant.
The Government recognises that there is an increased cost burden on firms arising from these measures, however, there is also a need for balance in considering the current position of enterprise. The PwC Insolvency Barometer reveals a current annual failure rate of 28 companies per 10,000. This remains lower than pre-pandemic levels. While there has been an increase, business failures remain at historically low levels. The pre-pandemic level of insolvency was 36 per 10,000 recorded in 2019. Recent research from the Central Bank of Ireland has shown that unit profits of Irish firms continued to increase throughout the energy price crisis.
This Government has adopted an active approach in supporting Irish businesses across multiple crises over the last number of years. My Department is fully committed to supporting businesses and the measures included in Budget 2024, and more recently in the measures announced following the publication of the ‘Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland’ reflect this.
83. Deputy Jim O'Callaghan asked the Minister for Enterprise, Trade and Employment his response to the recent approval of AI legislation by the European Parliament; and if he will make a statement on the matter. [16888/24]
Amharc ar fhreagraI very much welcome the recent approval of the EU Artificial Intelligence Act by the European Parliament, and I look forward to its formal adoption by the EU in the coming weeks.
This is a pioneering regulation, the most comprehensive AI regulation anywhere in the world. I am very pleased that the EU is leading on one of the most important regulatory challenges of our time, and that Ireland has participated actively and constructively to the negotiation of the Act.
The Act will lay down a uniform legal framework for the development and use of Artificial Intelligence systems in the European Union. This framework will promote the uptake of human-centric Artificial Intelligence in conformity with Union values, and will ensure a high level of protection against potentially harmful effects of Artificial Intelligence systems.
A key objective of the Act is to boost innovation and employment, and make the EU a leader in the uptake of trustworthy AI. The Act contains specific measures in support of innovation, with a particular focus on SMEs.
The provisions in the Act will apply, on a phased basis, over a 36-month period after it enters into force in May of this year.
The AI Act will establish a sophisticated governance and implementation structure at both national and EU level to ensure robust and harmonised implementation of the regulations in the Act. This includes the creation of a European Artificial Intelligence Board and a European Artificial Intelligence Office. The European Commission will develop guidelines and codes of practice over the next 12 months to support the application of the regulation.
My Department is leading on the national implementation of the EU Artificial Intelligence Act. My officials are considering the optimal national structure for efficient and effective enforcement of the provisions of the Act and will be discussing the arrangements with other Government Departments and relevant public bodies. In addition, primary legislation will be required for the transposition of the EU AI Act into national law.
I am committed to the comprehensive and robust implementation of the Act in Ireland.
86. Deputy Jim O'Callaghan asked the Minister for Enterprise, Trade and Employment his response to the recent Supreme Court ruling in relation to the personal injuries guidelines; and if he will make a statement on the matter. [16889/24]
Amharc ar fhreagraI welcome the Supreme Court’s ruling in Bridget Delaney vs. the Personal Injuries Assessment Board, the Judicial Council, Ireland and the Attorney General, upholding the Personal Injuries Guidelines and affirming their constitutionality. The implementation of the Guidelines alongside the strengthening of the Injuries Resolution Board formed a key part of the Government’s Insurance Reform Programme as per the Action Plan for Insurance Reform and ensures that there is consistency, predictability, and fairness in the assessment of compensation for personal injuries.
I want to reiterate the importance of the transformation of the Injuries Resolution Board. In 2022 the work of the Board resulted in €40 million in savings that would otherwise have been spent on progressing claims through the litigation system. The Personal Injuries Resolution Board Act 2022 was designed to enhance and reform the role of the Board with the primary aim of increasing the volume of cases that it can handle. This included the rollout of meditation as a new service offered by the Injuries Resolution Board. The Board currently provides a mediation service for employer liability claims and will extend this service to public liability claims in May and to motor liability claims in September.
The latest data indicates that the Injuries Resolution Board acceptance rate is holding at 48 per cent, having fallen as low as 33 per cent following the introduction of the Guidelines. This ruling, should further increase confidence among claimants when having their claims assessed under the Guidelines, and lead to a higher acceptance rate for the Injury Resolution Board. I have confidence that the work that the Injuries Resolution Board are doing, as an organisation, is delivering an efficient and fair service to both claimants and respondents.
The application of the Personal Injury Guidelines has been responsible for a marked reduction in the amounts that have been awarded for personal injury compensation. The recent Central Bank’s third ‘National Claims Information Database - Employers’ Liability, Public Liability and Commercial Property Insurance Report’ published on the 4th of April 2024 shows that when the Guidelines were used to settle claims by the Injuries Resolution Board in 2022 this resulted in a 33 per cent reduction against the average cost of claims settled under the Book of Quantum in 2020.
According to the Central Bank’s NCID report on Private Motor Insurance in December 2023 a similar reduction in the cost of settling of motor claims under the Guidelines was achieved in 2022 when compared against claims settled under the Book of Quantum in 2020.
This judgment builds on the work that the state has already delivered on the Insurance Reform agenda and challenges insurers to reflect this in their premiums.
87. Deputy Pauline Tully asked the Minister for Enterprise, Trade and Employment if he is aware of a campaign (details supplied) being run by organisations; if he will meet with the four unions in relation to the campaign; and if he will make a statement on the matter. [17019/24]
Amharc ar fhreagraI am aware of the campaign outlined which is seeking new protections for workers seeking to organise in their workplaces. I note that the launch of the campaign was held in conjunction with the Irish Second-Level Students Union (ISSU).
The Government fully supports the right of any worker to join and be active in their trade union. Employees have the right under the Constitution to form associations and trade unions. Under Irish legislation, an employee cannot be discriminated against or dismissed because they are a member of a trade union.
The Unfair Dismissal Acts provide for a number of grounds under which a dismissal may be considered unfair, including membership or proposed membership of a trade union or engaging in trade union activities, whether within permitted times during work or outside of working hours. Where an employee has been unfairly dismissed, an adjudication officer and, on appeal, the Labour Court may make an order for the reinstatement, re-engagement or awarding of compensation to the employee.
The Workplace Relations Commission’s Code of Practice on Victimisation refers to victimisation arising from an employee’s membership or non-membership, activity or non-activity on behalf of a trade union. It applies to situations where there are no negotiating arrangements and where collective bargaining has not taken place. A complaint under the Code may be made to the Workplace Relations Commission.
Any further changes to industrial relations laws governing trade union organisation in the workplace will take place in the context of the implementation of the LEEF High-Level Working Group Report on Collective Bargaining and Ireland’s implementation of the collective bargaining elements of the EU Directive on Adequate Minimum Wages.
88. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment his views on the Assessment of the Cumulative Impact of Proposed Measures to Improve Working Condition in Ireland; his plans for implementing the recommendations of this assessment; and if he will make a statement on the matter. [17028/24]
Amharc ar fhreagraThe Government has advanced a range of measures to improve working conditions in Ireland, including the transition to a Living Wage, Auto-Enrolment Retirement Savings, Parent’s Leave and Benefit, Statutory Sick Pay, an Additional Public Holiday, the Living Wage, and Remote Working. These improvements will bring wider societal benefits and will serve to bring Ireland in line with other advanced economies.
In line with recommendation from the National Competitiveness and Productivity Council in its report Ireland’s Competitiveness Challenge 2022, my Department, in collaboration with the Department of Social Protection, published ‘An Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland’ on the 5th of March 2024.
I welcome the publication of this report which assesses the cost to employers, along with the significant benefits to employees, of the changes to working conditions progressed by Government in recent years. The various changes have been signalled in advance and were typically subject to a public consultation process prior to being adopted as public policy and are to be implemented on an incremental basis over a number of years. The paper also recognises that businesses may face rising costs, particularly in the short term. Reflecting the findings of this assessment, a range of measures are being brought forward to assist businesses in adjusting to these increased costs as well as more generally to improve cost competitiveness of firms.
These measures include making available up to €15 million to Local Enterprise Offices to enable a top up payment of up to €3,000 in the Energy Efficiency Grant for businesses in the hospitality and retail sectors bringing the grant up to €8,000; preparation of an options paper on the application of the lower 8.8% rate of Employer PRSI contribution; a range of measures to reduce red tape and the administrative burden on business, including: an enhanced SME Test; accelerating the roll out of a fully functioning National Enterprise Hub with staff available to provide immediate advice and support to vulnerable firms. This is in addition to a €257 million package for the Increased Cost of Business grant. Local authorities, funded through the Department of Enterprise, Trade and Employment (DETE), are managing the rollout of the grant to qualifying businesses, and have written out to rate paying businesses with details of how to register for the scheme and it is up to businesses to verify their details through an online portal. This scheme is designed to help SME’s.
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 supporting businesses and the measures included in Budget 2024 also reflect this.
89. Deputy Jennifer Murnane O'Connor asked the Minister for Enterprise, Trade and Employment the number of businesses in counties Carlow, Kilkenny, Wexford and Waterford that have registered to date for the increased cost of business, ICOB, grant; when payments under the grant will commence; and if he will make a statement on the matter. [16879/24]
Amharc ar fhreagraAs you will be aware, as part of Budget 2024, the Government signed off on a package of €257 million for the Increased Cost of Business (ICOB) grant as a vital measure for small and medium businesses.
Local Authorities, funded through the Department of Enterprise, Trade and Employment, are administering the grant to qualifying businesses on behalf of the Department.
Local Authorities have written to all rate paying businesses with details of how to register for the grant and it is a very simple process for businesses to verify their details through an online portal.
The scheme has been open for registrations since 14 March. The closing date for the ICOB grant is 1 May 2024. I urge all eligible businesses to register for this grant as soon as they receive a letter from their Local Authority. The sooner a business registers the sooner their details will be verified and the grant will be paid out. Local Authorities will begin to send payments to eligible businesses from Monday next 22 April.
In relation to the counties you refer to in your question, the latest registrations as at Tuesday 16th April are as follows:
Carlow has 408 registrations which is 26% of businesses notified
Kilkenny has 700 registrations which is 28% of businesses notified
Wexford has 1617 registrations which is 35% of businesses notified
Waterford has 867 registrations which is 25% of businesses notified
90. Deputy Jennifer Murnane O'Connor asked the Minister for Enterprise, Trade and Employment if he will report on the implementation of the south-east regional enterprise plan; and if he will make a statement on the matter. [16880/24]
Amharc ar fhreagraBalanced regional enterprise development is a key focus for me and this Government as reaffirmed in the White Paper on Enterprise. My Department contributes to this agenda in several ways, including through the development, implementation and oversight of nine Regional Enterprise Plans (REP).
The South-East REP is implemented at a regional level by a Steering Committee made up of stakeholders from Carlow, Kilkenny, Waterford and Wexford. Patsy Carney is the Chair of the South-East REP Steering Committee and is supported by interim Programme Manager based in the Ireland South-East Development Office.
My Department oversees the REPs at the national level. A meeting of the National Oversight Group for the REPs with Steering Committee Chairpersons is planned for Thursday 25 April where implementation across all REPs will be discussed.
Nine REP Mid-Term Progress Reports were recently published, which document implementation to the end of Q3 2023 for each plan, including the South-East. These reports were prepared by each regional Steering Committee and are available on my Department’s website.
Good progress has been made implementing the South-East REP. Some highlights include:
• LI4, a REDF-funded project that has the vision to transform the South-East and Ireland into a productivity hub for companies through Lean Industry 4.0, has now opened its LI4 Learning Studio at WorkLab, Waterford.
• Senan House, a state-of-the-art energy A-rated building at Enniscorthy Technology Park, has officially opened its doors housing both the GreenHub sustainable innovation hub, and the High-Performance Building Alliance, along with start-up supports and companies.
• A South-East Offshore Wind Partnership is now in place to enable meaningful engagement between the ports, the airport, local authorities, industry and enterprise agencies, alongside the Higher Education and Training Institutes and Regional Skills Forum and is working to maximise the economic benefit to the South-East in assisting Ireland achieve its Offshore Renewable Energy targets.
As the Deputy will be aware, my Department has secured up to €145 million for the Smart Regions Enterprise Innovation Scheme (SREIS) to support projects aligned to the REPs. This builds on the €126 million my Department has already allocated in regional enterprise funding. The South-East has been awarded over €8 million in approved funding for eight innovative enterprise projects under these regional enterprise funding schemes. This includes projects funded through the REISS Scheme to the value of €785,000. These projects are across the Engineering, Financial Services, Sustainability and GreenTech, and Life Sciences sectors. Many of these projects are now preparing further applications for funding from SREIS.
The first call of €35 million under the SREIS, which is co-funded under the European Regional Development Fund, is now open on the Enterprise Ireland website. I expect that there will be up to four calls under this fund over the coming years. I encourage innovative projects in the South-East to apply.
91. Deputy Michael Moynihan asked the Minister for Enterprise, Trade and Employment for a report on the implementation of the south-west regional enterprise plan; and if he will make a statement on the matter. [16932/24]
Amharc ar fhreagraBalanced regional enterprise development is a key focus for me and this Government as reaffirmed in the White Paper on Enterprise. My Department contributes to this agenda in several ways, including through the development, implementation and oversight of nine Regional Enterprise Plans (REPs).
The South-West REP is implemented at a regional level by a Steering Committee made up of stakeholders from Cork and Kerry. Patricia Quane is Chair of the South-West REP Steering Committee and is supported by a Programme Manager based in Cork County Council. The South-West Steering Committee last met on 26 February 2024 where updates on implementation were shared with members.
My Department oversees implementation of the REPs at the national level. A meeting of the National Oversight Group for the REPs with Steering Committee Chairpersons is planned for Thursday 25 April, where implementation across all REPs will be discussed.
Nine REP Mid-Term Progress Reports were recently published, which document implementation to the end of Q3 2023 for each plan, including the South-West. These reports were prepared by each regional Steering Committee and are available on my Department’s website. Good progress has been made implementing actions across the South-West REP.
Some highlights detailed in the Progress Report include;
• the establishment of a Cluster Managers Forum which is fostering active engagement and collaboration among all Clusters in the region.
• successful formation of Cork and Kerry Hub Networks facilitating ongoing collaboration on various events and projects, continuing through 2024.
• the Regional Enterprise Innovation Scoping Scheme (REISS) has provided support for several regionally significant studies, including a feasibility study for the Space Industry Cluster and the Re-Create Shandon Hub initiative.
As the Deputy will be aware, my Department has secured up to €145 million for the Smart Regions Enterprise Innovation Scheme to support projects aligned to the REPs. This builds on the €126 million my Department has already allocated in regional enterprise funding. The South-West has performed very well under these funding schemes securing over €19.5 million in approved funding for 15 innovative enterprise projects.
The first call of €35 million under the new scheme, which is co-funded under the European Regional Development Fund, is now open on the Enterprise Ireland website. I expect that there will be up to four calls under this fund over the coming years and I encourage innovative projects from the South-West to apply.
92. Deputy Fergus O'Dowd asked the Minister for Enterprise, Trade and Employment if he will meet with the local business community and stakeholders in Drogheda to discuss their significant concerns on employment and trade within the town of Drogheda, the largest town in the country; and if he will make a statement on the matter. [16860/24]
Amharc ar fhreagra108. Deputy Fergus O'Dowd asked the Minister for Enterprise, Trade and Employment if he will organise urgent meetings with officials within his Department to formulate a dedicated plan to provide employment in Drogheda, with consideration of the very significant number of workers commuting from the town daily; and if he will make a statement on the matter. [16859/24]
Amharc ar fhreagraI propose to take Questions Nos. 92 and 108 together.
My Department, through our enterprise development agencies, plays a significant role in fostering economic growth in County Louth and Drogheda and provides a range of services to local enterprises. My Department also oversees implementation of nine Regional Enterprise Plans (REPs) including for the North-East which covers counties Cavan, Louth and Monaghan. The REPs are driven by regional stakeholders and focus on undertaking collaborative projects that help strengthen the regional enterprise ecosystem. A Mid-Term Progress Report was published recently on my department’s website which provides updates on implementation across each strategic objective.
IDA Ireland is committed to the pursuit of balanced, compact regional development and is targeting half of all investments from 2021-2024 to regional locations.
As part of its current strategy, IDA’s Regional Property Programme ensures the continued supply of land, buildings and infrastructure in regional locations to meet the needs of current and prospective IDA, Enterprise Ireland and Local Enterprise Office clients.
County Louth has 36 IDA client companies, employing 3,674 people. The FDI performance in the wider region has been consistent over the past five years with employment among IDA clients increasing by 14%. Counties in the region also benefit hugely from the direct and indirect employment generated by IDA client companies located in Dublin.
Enterprise Ireland’s (EI) activities include offering financial support and grant aid to high-potential companies that demonstrate the capacity for rapid growth and entry into export markets. This support is crucial for stimulating job creation and economic development in the regions. In 2023, EI made payments of €2 million to client companies based in County Louth, and an additional €630,000 in payments towards infrastructural investments in entrepreneurship and innovation. 504 jobs were created in 2023 by 130 EI assisted client companies, with a total figure of 6,744 EI supported jobs in the county. Employment growth for the year amounted to 3%, ahead of the national average growth rate of 2% among EI clients.
Enterprise Ireland works closely with the Local Enterprise Office (LEO) in Louth. LEO Louth’s suite of business supports is available to all businesses and entrepreneurs in the county, including the Drogheda area. LEO Louth held information events during 2023 to provide information to businesses in Drogheda on the range of government supports available to them to sustain, develop and grow their businesses. In 2023, LEO supported 212 client companies in Louth, creating 26 new jobs. The Northeast Region saw a 5% increase in jobs created, with 551 client companies supported, creating 168 new jobs.
The Drogheda Digital Hub has received grant support under the Border Enterprise Development Fund. This is targeted to encourage high-potential future-oriented tech projects to locate in the greater Drogheda area. The project will provide affordable co-working space in Drogheda town centre complemented with tailored management and mentoring support to facilitate their growth and export potential.
The collaboration between enterprise agencies and local entities ensures a cohesive approach to enterprise development, making County Louth an attractive location for both established companies and emerging entrepreneurs and is a testament to the government's commitment to regional development and the support of indigenous businesses as they navigate the challenges and opportunities of international trade.
93. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment how he is ensuring that workers in the technology sector facing redundancies are protected; and if he will make a statement on the matter. [17048/24]
Amharc ar fhreagraIreland has a robust framework of legislative protections and supports for workers who are impacted by redundancy. This includes:
• The Protection of Employment Act 1977, as amended, which requires employers in collective redundancy situations to consult with employees’ representatives and to notify the Minister for Enterprise, Trade and Employment before implementing redundancies.
• The Redundancy Payments Act 1967, as amended, which requires employers to pay statutory redundancy payment to eligible employees with more than two years’ service. Employers are also required to give at least two weeks’ notice under this Act before implementing a redundancy, distinct from any other statutory or contractual rights to minimum notice.
• The Minimum Notice and Terms of Employment Act 1973, as amended, which obliges employers to give a certain level of notice to employees prior to dismissal, with the length of such notice depending on the employee’s length of service,
• The Unfair Dismissals Act 1977, as amended, which protects employees with more than one year’s service from Unfair Dismissals.
The Protection of Employment Act 1977, as amended, defines a collective redundancy as where, during any period of 30 consecutive days, the employees being made redundant are:
• 5 employees where 21-49 are employed,
• 10 employees where 50-99 are employed,
• 10% of the employees where 100-299 are employed,
• 30 employees where 300 or more are employed.
Where redundancies occur which are outside the parameters of collective redundancies, employers are still legally obliged to conduct the redundancy process fairly and to use reasonable selection criteria in choosing to make people redundant. In accordance with the principles of fair procedures and natural justice, any such process should normally include a consultation with potentially affected employees.
If employees believe their employment rights as outlined above have been breached, they have the right to refer complaints to the WRC for adjudication. The WRC may award compensation for breaches, where appropriate, in line with the relevant legislation.
Government is also on hand to provide a range of supports to anyone who is being made redundant, including assisting with appropriate training and development opportunities and income supports through the Intreo service of the Department of Social Protection.
The enterprise agencies under my Department can also assist, where possible, in helping those impacted to find alternative employment. This includes sharing the skills profiles of impacted employees to companies who may be hiring, be that with multinationals in IDA’s client base or indigenous companies through Enterprise Ireland.
94. Deputy Holly Cairns asked the Minister for Enterprise, Trade and Employment the supports that will be make available for small businesses struggling with the increased cost of operating a business. [17042/24]
Amharc ar fhreagraI recognise that firms have faced a significant challenge in facing multiple crises alongside cost increases over the last number of years, including Brexit, the COVID -19 pandemic, the Russian war in Ukraine and the associated supply chain shock, the energy cost crisis and rising inflation along with wage demands, and rising interest rates. It should be noted that not all cost increases however are attributable to Government measures.
The Government has advanced a range of measures to improve working conditions in Ireland over recent years. These improvements will bring wider societal benefits and will serve to bring Ireland in line with other advanced economies, albeit that these will inevitably give rise to additional costs for some firms.
My Department, in collaboration with the Department of Social Protection, assessed the cumulative impact of these changes to working conditions, including Auto-Enrolment Retirement Savings Scheme, Parent’s Leave and Benefit, Statutory Sick Pay, the additional Public Holiday, the Living Wage, and the Right to Request Remote Working. This report was published on the 5th March and in response to the findings a range of measures are being brought forward to assist businesses in adjusting to these increased costs as well as more generally to improve cost competitiveness of firms.
These measures include making available up to €15 million to Local Enterprise Offices to enable a top up payment of up to €3,000 in the Energy Efficiency Grant for businesses in the hospitality and retail sectors bringing the grant up to €8,000. In addition, an options paper on the application of the lower 8.8% rate of Employer PRSI contribution is currently being prepared and we will also take steps to reduce red tape and the administrative burden on business, including: an enhanced SME Test; accelerating the roll out of a fully functioning National Enterprise Hub with staff available to provide immediate advice and support to vulnerable firms.
This is in addition to a €257 million package for the Increased Cost of Business grant. Local authorities, funded through the Department of Enterprise, Trade and Employment (DETE), are managing the rollout of the grant to qualifying businesses, and have written out to rate paying businesses with details of how to register for the scheme and it is up to businesses to verify their details through an online portal. This scheme is designed to help SME’s.
The Government recognises that there is an increased cost burden on firms arising from these measures, however, there is also a need for balance in considering the current position of enterprise. The PwC Insolvency Barometer reveals a current annual failure rate of 28 companies per 10,000. This remains lower than pre-pandemic levels. While here has been an increase, business failures remain at historically low levels. The pre-pandemic level of insolvency was 36 per 10,000 recorded in 2019. Recent research from the Central Bank of Ireland has shown that unit profits of Irish firms continued to increase throughout the energy price crisis.
The Government has adopted an active approach in supporting Irish businesses across multiple crises over the last number of years. My Department is fully committed to supporting businesses and the measures included in Budget 2024, and more recently in the measures announced following the publication of the ‘Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland’ reflect this.
95. Deputy Brian Stanley asked the Minister for Enterprise, Trade and Employment his views on the scale of in-work-poverty, where, according to CSO data, the rate stands at 5.9%; and the role that a living wage plays in combatting this. [16835/24]
Amharc ar fhreagraThe Minister for Social Protection has advised that the 2023 Survey on Income and Living Conditions (SILC), which is the official source of poverty statistics for Ireland, reported a reduction in consistent poverty[1], which is the national social target for poverty reduction, down from 4.9% in SILC 2022 to 3.6% in SILC 2023.
This is the lowest rate of consistent poverty recorded since the start of the SILC survey and puts Government on track to meeting the ambitious target set out in the Roadmap for Social Inclusion 2020-2025 of 2%.
The consistent poverty rate for employed people has also decreased from 2% in SILC 2022 to 1.5% in SILC 2023. This remains lower than the national rate, as well as for other cohorts, including unemployed people which was 9.4% in 2023.
Meanwhile the at-risk-of-poverty[2] rate for those in employment was 5.8% in 2023, compared with an overall rate of 10.6%. Similarly, the at-risk-of-poverty rate for unemployed people was higher at 25.5%.
The survey confirms that Ireland continues to be one of the EU’s best performing countries for the poverty reduction effect of social transfers. The at-risk-of-poverty rate, which was 34.1% before social transfers, reduced to 10.6% after social transfers. This equated to a poverty reduction effect of 68.9% in 2023.
The significant role that social transfers play in reducing the at-risk-of-poverty rate in Ireland is part of a continuing trend, in 2022 the at-risk-of-poverty rate was 35.5% before social transfers reducing to 12.5% after transfers were included. While in 2021 the at-risk-of-poverty rate was 37.3% before social transfers and 11.8% after they were taken into account.
According to 2022 EU SILC data social transfers reduced income inequality in Ireland (as measured by the Gini Coefficient) from 38.5% (before social transfers) to 27.9% (after social transfers) which represents an income inequality reduction of 38%. This is the highest level of reducing income inequality in the EU-27 and was markedly higher than the EU-27 average of 17.9 per cent. .
The survey also confirms that Government’s cost of living measures were effective reducing the number of people at-risk-of-poverty.
Without these cost-of-living measures, the at-risk-of-poverty rate would have increased from 12.5% in SILC 2022 to 13% in SILC 2023 but instead fell to 10.6%. Meanwhile the at-risk-of-poverty rate for employed people decreased from 6.3% to 5.8% due to the cost-of-living measures.
It should also be remembered that the data relates to income from the calendar year 2022 and as such does not take account of any Budget 2023 measures paid in 2023 including the 2023 Cost of Living measures, or of course any Budget 2024 measures, which have been the largest social protection budgets in the history of the State.
Budget 2024 measures include a €54 increase to Working Family Payment thresholds for all family sizes, which follows an increase of €40 under Budget 2023.
As the Deputy will be aware, in 2021 the Low Pay Commission was asked to examine the Programme for Government commitment to progress to a living wage and provide recommendations on how best to achieve this commitment.
The Low Pay Commission’s recommendations were received and considered and in November 2022, Government agreed that a national living wage would be introduced and set at 60% of hourly median wages in line with the recommendations of the Low Pay Commission. The Government announced that it would be in place by 2026, at which point it would replace the National Minimum Wage.
The introduction of a living wage is an important step Government is taking towards eradicating low-wage employment for all workers.
The first step towards reaching a living wage was the 80 cent increase to the National Minimum Wage from 1 January 2023 to €11.30 per hour. This was followed with the significant 12.4% increase of €1.40 to the National Minimum Wage which came into force on 1 January 2024 and increased the minimum wage to €12.70 per hour.
The Low Pay Commission has estimated that the minimum wage in 2022 was 50.9% of the median hourly wage, increasing to 51.8% in 2023. The Commission estimates that the €1.40 increase in the 2024 National Minimum Wage will bring the minimum wage to 55.1% of median hourly wages.
The Low Pay Commission will continue to make annual recommendations on the appropriate rate of the National Minimum Wage, and the increases required so that by 2026 the minimum wage will reach the target of 60% of hourly median wages.
The progression to a living wage, and the significant budget measures I have outlined, show the Government’s commitment to protecting and improving the incomes of low-paid workers and those at risk of in-work-poverty.
[1] Consistent Poverty: Persons are regarded as being in consistent poverty if their income is below 60 per cent of the median income (at-risk-of-poverty) and are deprived of at least 2 out of the 11 items on the basic deprivation list.
[2] At-risk-of-poverty: Persons are regarded as being at-risk-of-poverty if their nominal equivalised disposable income is below 60 per cent of the median nominal equivalised disposable income.
96. Deputy Alan Dillon asked the Minister for Enterprise, Trade and Employment for an update on the farm safety partnership; and if he will make a statement on the matter. [8377/24]
Amharc ar fhreagraThe Farm Safety Partnership Advisory Committee (FSPAC) is an advisory committee to the Board of the Health and Safety Authority (HSA) and established under Section 38 of the Safety, Health and Welfare at Work Act 2005. The Farm Safety Partnership Advisory Committee was established to involve all industry stakeholders in improving occupational safety and health in the Agriculture sector. Its terms of reference include:
To act as a consultative and advisory forum on the HSA’s priorities and work programme for the Agriculture Sector.
To develop and agree a national action plan, coordinating the actions of working groups and representative organisations.
To identify, prioritise and progress the key actions related to improving safety and health standards in the Agriculture Sector.
To identify and agree the critical areas for action and establish working groups to assist in the achievement of the agreed actions.
To coordinate the work of working groups to achieve agreed targets, including a reduction in injury and ill health and an improvement in compliance with occupational safety and health within the sector.
To promote, influence and monitor the national action plan.
To identify, support and promote appropriate research and liaise with the relevant working group and agricultural organisations in the practical implementation of research findings.
To report regularly and formally, at least annually, to the HSA Board and provide a final report with proposed future actions following its four-year term.
Action plans are developed with the aim of reducing the level of fatalities, serious injuries and ill health in the agriculture sector. The FSPAC has identified five critical areas for attention in the action plan 2021-2024 and established working groups to address:
Behaviour, Education and Training
Health and Vulnerable Persons
Tractor, High Risk Machinery
Livestock Handling
Buildings, Work at Height
The FSPAC and the working groups meet regularly to develop and sign off on prevention resources and to discuss progress on delivery of the action plan.
Prevention resources developed by the HSA in association with the FSPAC can be viewed on: www.hsa.ie/eng/your_industry/agriculture_forestry/
The current action plan is available on hsa.ie and a new Farm Safety Action Plan will be developed in Q3 2024 aligned with the overall HSA Strategy.
Further information on the work of the Health and Safety Authority on farm safety may be found on the website at: www.hsa.ie/eng/your_industry/agriculture_forestry/
97. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment the progress to date in implementing the measures to assist businesses to meet additional costs, as announced in budget 2024; and if he will make a statement on the matter. [16981/24]
Amharc ar fhreagraAs you are aware, as part of Budget 2024, the government signed off on a package of €257 million for the Increased Cost of Business (ICOB) grant as a vital measure for small and medium businesses.
Local authorities, funded through the Department of Enterprise, Trade and Employment (DETE), are administering the grant to qualifying businesses on behalf of the Department.
Local Authorities have written out to rate paying businesses with details of how to register for the grant and it is up to businesses to verify their details through an online portal.
The portal has been open for registrations since 14th March. The closing date for the ICOB grant is 1st of May 2024. I would urge all eligible businesses to register for this grant as soon as they receive their letter from their Local Authority. The sooner a business registers the sooner their details will be verified and the grant will be paid out. Local Authorities will begin to send payments to eligible businesses from Monday next 22 April.
It is also worth pointing out the wide range of supports that were also made available to businesses in Budget 2024. These include:
• the extension of the 9% VAT rate on gas and electricity to the end of October 2024.
• an increase to the VAT registration thresholds since 1 January 2024, from €37,500 for services and €75,000 for goods to €40,000 for services and €80,000 for goods.
• An increase in the rate of the Research and Development (R&D) Tax Credit from 25% to 30%, on qualifying expenditure on R&D, from 1 January 2024. This will allow large MNEs subject to the new minimum tax to claim the tax credit at the same rate as they previously availed of and will also allow SMEs to avail of the full benefit of the rate increase.
• The first-year payment threshold of the R&D Tax Credit will also increase from €25,000 to €50,000, which will alleviate cashflow concerns for SMEs engaging in R&D.
• A new reduced rate of CGT entrepreneur relief of 16% for angel investors in innovative start-up SMEs when they dispose of a qualifying investment for gains up to twice the value of their investment up to €3 million.
• Enhancements to the Key Employee Engagement Programme (KEEP), and the Enterprise Investment Incentive Scheme (EIIS) are beneficial for business.
