Skip to main content
Normal View

Tuesday, 23 May 2023

Written Answers Nos. 245-261

Courts Service

Questions (246)

Neasa Hourigan

Question:

246. Deputy Neasa Hourigan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the engagements he has had with the Department of Justice in relation to the restoration of barrister fees under the criminal legal aid scheme following FEMPI cuts; and if he will make a statement on the matter. [24097/23]

View answer

Written answers

As the Deputy may be aware, based on Government decisions and as part of a broader Government need to reduce costs across the public service, the Minister for Justice exercised powers conferred to them under section 10(1)(b) of the Criminal Justice (Legal Aid) Act 1962 to apply reductions to professional fees paid to barristers under the Criminal Legal Aid Scheme in 2009, 2010 and 2011.

The Department of Justice established a Criminal Legal Aid Oversight Committee in 2016, and my officials have been engaging with their counterparts in the Department of Justice since then regarding these matters.

I understand that the Minister for Justice intends to publish the General Scheme of a Criminal Legal Aid Bill that will allow for improved accountability for expenditure, management and control in line with audit requirements. I also understand that the Department of Justice has recently decided to refocus the work of the Criminal Legal Aid Oversight Committee to, amongst other things, advise on the necessary reforms to fees to incentivise greater efficiency in the courts and to ensure that all fees are auditable.

I fully acknowledge and appreciate the very important work undertaken by barristers who prosecute criminal work on behalf of the State. Annual expenditure under the Scheme has risen by €20.5m (39%) in the period 2016-2021, which gives some sense of the scale of the State’s investment in this area.

Officials in my Department continue to engage with the Department of Justice and other relevant stakeholders in relation to this issue as appropriate. It is important that any proposal to adjust legal fees paid under the Criminal Legal Aid Scheme is considered in the context of reform measures that improve the administration of justice, support a transparent and rational framework for providing legal aid, and which help to control costs.

Departmental Policies

Questions (247)

Neasa Hourigan

Question:

247. Deputy Neasa Hourigan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide an update on the engagements he has had with the Department of Health and the HSE in relation to funding proposals for the new HSE Home Support Tender 2023; and if he will make a statement on the matter. [24099/23]

View answer

Written answers

The Government is committed to promoting care in the community for older people so that they can continue to live in their own homes for as long as possible. Home support is an increasingly important part of the supports we offer to older people and it will continue to increase in importance into the future, as our ageing population grows. The overall policy intention and provision of services is in line with the Sláintecare strategy. The Home Support Service is funded by Government to deliver a volume of service each year as approved in the HSE National Service Plan which is subject to the annual estimates process.

As is the case for all Government Departments, the 2023 Estimates process involved detailed engagement between my Department and the Department of Health on the overall funding provided to the Health Sector. As part of Budget 2023, the Department of Health made an allocation for the provision of homecare support from within the available additional funding to meet the cost pressures being experienced within that area. The Funding for Home Help Support including home help hours, homecare packages and homecare intensive packages has risen by 58% from €443m in 2019 to €700m in 2023.

Officials in the Department of Health have provided an update for information to my Department on their proposed approach in relation to the new Home Support Tender. However, my Department has no role in the negotiation of the Tender and it is a policy matter for the Minister of Health to manage within the 2023 budget allocation of €24 billion for the Department of Health.

As with other areas of health policy, the Minister for Health has policy responsibility in the first instance for the provision of homecare support. Within this context, the HSE is responsible for developing the Private Home Care Provider Tender with engagement from the Department of Health. Therefore, any further queries in relation to the Home Care Service or the Tender process should be directed to the Minister for Health in the first instance.

Office of Public Works

Questions (248)

Michael Ring

Question:

248. Deputy Michael Ring asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will ascertain from the OPW when a matter (details supplied) will be progressed and finalised; and if he will make a statement on the matter. [24103/23]

View answer

Written answers

Mayo GAA contacted the Commissioners of Public Works (OPW) with a request to acquire a site (1-acre approx.) at the Government Buildings complex known as Michael Davitt House, Castlebar, Co. Mayo. Mayo GAA propose developing the site, which adjoins the GAA grounds at MacHale Park, into a running track and GAA playing pitches.

The OPW have issued a Letter of Offer to Mayo GAA setting out the terms and conditions under which they would be prepared to dispose of the lands. A response is awaited from Mayo GAA.

International Protection

Questions (249)

Alan Kelly

Question:

249. Deputy Alan Kelly asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the number of modular units ordered through an organisation (details supplied) to date for refugees/asylum seekers; if he will provide a breakdown of the suppliers that have been contracted through the organisation to deliver these; and the number that each individual company is contracted to supply. [24207/23]

View answer

Written answers

Arising from a Memorandum to Government from the Minister for Housing, Local Government and Heritage, and considered on 26 April 2022, the Government decided on a range of measures to boost the supply of accommodation for refugees arriving from Ukraine. These measures included a rapid build, volumetric, modular option - the evaluation of which was to be led by the Office of Public Works (OPW). On 28 June 2022, the Government authorised the rollout of the pilot programme, to provide accommodation for 2,000 Ukrainians, predominantly women and children, in 500 family units at several sites across Ireland. In December 2022, the Government increased the number of units required to 700 in total.

Since then, my Office has been working collaboratively with the Department of Children, Equality, Disability, Integration and Youth as the Lead Department, and a range of other bodies such as the Department of Housing, Local Government, and Heritage, local authorities, Irish Water, ESB networks and Open Eir to deliver this programme.

Following a procurement process, John Sisk & Son (Holdings) Ltd was appointed as the main contractor to manage the site enabling works and to arrange for the procurement, transportation and installation of the modular units for the overall programme of works. The procurement process was undertaken in July and August 2022 and approval to award the contract was given on 25 August 2022.

Subsequently, John Sisk & Son (Holdings) Ltd engaged in a separate competitive tender process with the rapid build homes manufacturers and assessed them to determine their capacity and capability to produce the homes to the required standard. Following this tender and assessment, John Sisk & Son (Holdings) Ltd established a framework of five suppliers around the country to manufacture the homes. Accordingly, the contract with each manufacturer is between that manufacturer and John Sisk & Son and not the Office of Public Works and therefore commercially sensitive information to the companies involved.

In October and November 2022, the OPW placed two orders (through Sisk), with the manufacturers on this framework for 500 homes. In December 2022, to secure the additional 200 homes at a fixed cost, the OPW gave an instruction to place a third order (bringing the total to 700). The production, transportation and installation of the rapid build homes is timetabled for delivery as site-enabling works are completed, ensuring the process is conducted as efficiently as possible.

Wildlife Conservation

Questions (250)

Holly Cairns

Question:

250. Deputy Holly Cairns asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if his Department and public bodies/agencies that operate under his remit have policies in place to install artificial structures that provide shelter and habitat space for wild species, such as, but not limited to, insect hotels, bat boxes, nesting towers and beehives; and if he will make a statement on the matter. [24267/23]

View answer

Written answers

I wish to advise the Deputy that there is currently no such policy in place in my Department, including the Office of Government Procurement. With the exception of the Office of Public Works (OPW), this is also the position with regard to the bodies under the aegis of my Department.

The OPW has advised me that the Office is taking a very proactive position in terms of biodiversity and that the OPW is one of the first government agencies to publish a corporate biodiversity strategy - the OPW Biodiversity Action Strategy 2022-2026. Within this strategy, there are a series of actions ranging from staff biodiversity awareness training through to the development of biodiversity guidelines. The inclusion of biodiversity enhancement features such as artificial nest boxes are a component of how the OPW is supporting biodiversity conservation.

A wide range of habitat enhancement features have been integrated into OPW’s flood risk management activities such as the Templemore Flood Relief Scheme, Tipperary, which includes the first ever sand martin nesting wall design, Bat boxes, Kingfisher nest tunnels and new spawning gravels for fish and lamprey. Ecological monitoring of the project is demonstrating major uptake of these initiatives by wildlife representing a significant biodiversity gain.

Over the past year, the OPW has conducted detailed biodiversity audits of 10 of its Heritage properties, with a further 10 sites to be surveyed in 2023. Each survey includes a list of key recommendations, and where appropriate, artificial habitats are being recommended in the form of otter holts, swift nest boxes, bat towers and solitary bee nests. A number of OPW sites, including Phoenix Park, the National Botanic Gardens, St. Enda’s Park and Castletown House already have extensive enrichments of this kind, including beehives, and it is anticipated that all OPW sites will in due course have similar improvements.

Departmental Reports

Questions (251)

Rose Conway-Walsh

Question:

251. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when the OECD report: Strengthening Environmental Considerations in Public Investment Management in Ireland, will be completed and published; and if he will make a statement on the matter. [24502/23]

View answer

Written answers

The National Development Plan 2021-2030 committed my Department to reviewing certain elements of the Public Spending Code to improve the Government’s understanding of the relationship and impacts of investment decisions on the wider environment and climate. As part of this programme of works, my officials have been working with the OECD, funded by the EU Commission through DG REFORM’s Technical Support Instrument, on two aspects of public capital expenditure appraisal requirements in Ireland.

1. The model for assessing the emissions impact of infrastructure investment; and

2. The appraisal of investments that may be vulnerable to the impacts of climate change.

There has been extensive engagement with other Departments and stakeholders including an OECD fact finding mission in April 2022 and a workshop and diffusion event in January 2023.

The OECD are currently finalising their report on Strengthening Environmental Considerations in Public Investment Management in Ireland . On completion of the report, my Department will evaluate the OECD’s recommendations before considering what changes may be appropriate for the new Infrastructure Guidelines.

The report is planned for publication by end-Q2 2023.

Over the longer term, as set out in the NDP 2021-2030, the Department will examine the role that the Infrastructure Guidelines can play in the achievement of broader environmental objectives and the role of the code in support the national commitment to achieving net zero greenhouse emissions by 2050.

Departmental Reviews

Questions (252)

Rose Conway-Walsh

Question:

252. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when he anticipates the review intended to update the shadow pricing related to the climate targets in the Public Spending Code; and if he will make a statement on the matter. [24503/23]

View answer

Written answers

Ireland has committed to achieving ambitious but challenging legally-binding greenhouse gas emission reduction targets, with key milestones in 2030 and 2050. Therefore, economic appraisals should include an appropriate valuation of the cost that society will bear in dealing with the greenhouse gas emissions any project might give rise to, or the benefits to society of a project that mitigates emissions.

In 2019, my Department reviewed the methodology used to derive the shadow price of carbon and updated the values applied in public sector economic appraisal. However, since 2019, Ireland’s climate targets at both the national level and the EU level have increased significantly in ambition. Therefore, the National Development Plan review committed my Department to revising the shadow price of carbon in the Public Spending Code in light of Ireland's enhanced climate ambition in the Climate Action and Low Carbon Development Act 2021.

My Department is currently in the process of revising the values in the Public Spending Code. At the request of my officials, the Marine and Renewable Energy Institute (MaREI) in UCC have carried out the analysis needed to inform this work. My Department has also liaised with the Department of Environment, Climate and Communications throughout the process.

My Department is reaching the final stages of this work. The update will ensure we are pricing emissions appropriately in economic appraisals and that the values in the Public Spending Code align with our climate targets.

Departmental Budgets

Questions (253)

Rose Conway-Walsh

Question:

253. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the variance from profile to date of each Ministerial Vote Group, in tabular form. [24504/23]

View answer

Written answers

At the end of April, the most recent period for which figures are available, total gross voted expenditure amounted to €26.9 billion.

This level of spending shows the significant increase in public investment over the same period last year, with expenditure over €1½ billion higher than end-April last year. This additional expenditure demonstrates investment, set out in Budget 2023, across a range of vital public services and supports for our citizens. It includes provision for extra teachers, more health supports, enhanced social protection payments and more affordable childcare. Increased capital spending reflects the ramp up in the delivery of vital infrastructure and investment under our National Development Plan.

Compared to the amount that had been expected to be spent by Departments and Agencies, end-April spending was broadly on profile at €0.1 billion or 0.5% below. The variances by Ministerial Vote Group are set out in the table below.

MINISTERIAL VOTE GROUP

Variance

Variance

€m

%

Agriculture, Food and The Marine

1

0.2%

Children, Equality, Disability, Integration and Youth

174

14.8%

Defence

-26

-6.9%

Education

125

3.7%

Enterprise, Trade and Employment

-133

-34.0%

Environment, Climate and Communications

-38

-13.8%

Finance

-4

-2.2%

Foreign Affairs

-11

-2.9%

Further and Higher Education, Research, Innovation and Science

-86

-7.6%

Health

37

0.5%

Housing, Local Government and Heritage

-152

-12.8%

Justice

-34

-3.2%

Public Expenditure and Reform

-46

-9.1%

Rural And Community Development

-13

-11.1%

Social Protection

230

3.0%

Taoiseach's

-7

-8.1%

Tourism, Culture, Arts, Gaeltacht, Sport and Media

-27

-8.8%

Transport

-115

-18.0%

Total Gross Cumulative Voted Spending

-125

-0.5%

Variances in actual against projected spend each month can arise due to a range of issues and may return to planned profile across the course of the year. Of the largest variances at end April - the underspend in Enterprise, Trade and Employment was primarily due to lower take up during the first four months of the year than had been anticipated on the Temporary Business Energy Support Scheme (TBESS). Transport underspending against profile at end April was due to lower than anticipated capital expenditure, with spend on certain projects now expected to fall later in the year.

The variances against profile are published each month in the Fiscal Monitor. This provides the spending by Ministerial Vote Group, broken out into current and capital spend, and the variance from profile. It also compares spending to the same period in the previous year. This is available on the Department of Finance website each month.

Foreign Direct Investment

Questions (254)

Catherine Murphy

Question:

254. Deputy Catherine Murphy asked the Minister for Enterprise, Trade and Employment if he and or his officials and or the IDA in the context of their support of an organisation (details supplied) conducted due diligence in advance of delivering support to them; if he and or his officials and or the IDA discussed corporate responsibility with the organisation and or agents acting on its behalf; and if his attention, that of his officials and or the IDA had been drawn to industrial relations and environmental concerns regarding the way in which the organisation conducts its business in advance or after offering to support the organisation. [24838/23]

View answer

Written answers

Last week, IDA Ireland client, SHEIN officially launched its Europe, Middle East and Africa (EMEA) headquarters, based in Dublin City Centre. The Dublin office will host SHEIN’s strategic IT hub for EMEA and will function as the centre of SHEIN’s operations in the region.

Sustainability considerations, including the company’s corporate level approach to the environment formed part of the IDA’s due diligence process in assessing the investment project for approval. Environmental sustainability is a key consideration for the IDA when assessing an investment project for Ireland. While engaging with the company, the IDA sought and received assurances in relation to the company’s commitment to environmental sustainability and transformation in the fashion industry, an area in which the company says it is heavily investing.

The company demonstrated to the IDA that it has signed international pledges and committed funding to improve worker conditions in their partner companies and is a signatory to the United Nations Global Compact Agreement (UNGC) and supports the ten principles focused on human rights, labour, environment, and anti-corruption.

Work Permits

Questions (255)

David Stanton

Question:

255. Deputy David Stanton asked the Minister for Enterprise, Trade and Employment if he will outline the situation with respect to the issuing of employment permits for dairy farm assistants; and if he will make a statement on the matter. [24019/23]

View answer

Written answers

In December 2022, changes to the employment permits system were introduced which made the role of Dairy Farm Assistants eligible for General Employment Permits subject to a quota of 500 permits. This change was made in order to help address skills shortages in Ireland’s Dairy Sector. It followed constructive engagement between the Department of Enterprise, Trade and Employment and the Department of Agriculture, Food and the Marine.

In order to be eligible for a General Employment Permit in respect of a Dairy Farm Assistant role it is necessary for the applicant to carry out a Labour Market Needs Test prior to submitting the application. There are currently 423 General Employment Permits remaining of the quota of 500. Once this quota is filled there will be no further permits issued in respect of this occupation.

Details on how to apply for an employment permit can be found through the following link: General Employment Permit - DETE (enterprise.gov.ie) . A check list in respect of a Dairy Farm assistants can be found on the Department website through the following link: Employment Permits Checklists - DETE (enterprise.gov.ie)

Departmental Data

Questions (256)

Richard Boyd Barrett

Question:

256. Deputy Richard Boyd Barrett asked the Minister for Enterprise, Trade and Employment the estimated full-year cost of introducing three new bank holidays; and if he will make a statement on the matter. [24035/23]

View answer

Written answers

There are a range of estimates of the cost of introducing an additional public holiday. An impact assessment undertaken by the Office of National Statistics in the UK in 2022 estimated that an additional public holiday for the Platinum Jubilee would have a net cost of £2.39 billion. In the context of UK Gross National Income (GNI) of £2,505 billion in 2022 – the additional public holiday was estimated to account for approximately 0.1% of GNI (0.107% on a GDP basis). This contrasts with previous analysis by the UK Office for National Statistics which estimated the economic impact of an additional one-off public holiday in 2012 to be between 0.3% and 0.4% of GDP.

A recent 2022 study on the causal effects of public holidays on economic growth, which utilised a global panel of national holidays for over 200 countries over the period 2000-2019, estimated that 0.08% of annual GDP is foregone for each additional day of public holiday.

Based on the above estimates, the introduction of three additional public holidays would have an estimated cost ranging from between 0.24% to 1.2% of Gross National Income. The Department of Finance projects Modified Gross National Income of €283.7 billion in 2023 – meaning three additional public holidays would have an estimated cost of between €680 million to €3.4 billion.

In assessing the impact of public holidays there can be difficulty in separating the costs from the benefits. For example, certain sectors – such as retail, accommodation and food – may see a boost to economic activity while in other sectors (such as agriculture) the costs of a public holiday may be lower due to natural processes continuing throughout the holiday. Evidence also suggests that there is a level of ‘bounce-back’ in terms of the loss in production associated with public holidays which is recovered either through higher effort on other working days or effective management of scheduling. There are also likely to be strong well-being benefits from public holidays which are difficult to quantify.

An underlying assumption in the analysis of public holiday costs is that the impact of each additional public holiday is identical and transitory. However, there is likely a limit to the number of public holidays which could be incorporated into each year before each public holiday would begin to have a larger proportionate cost to national output, this would take the form of interrupting production schedules, or missing critical tasks to a greater extent, and would ultimately be more costly than the above analysis suggests.

The Department of Enterprise, Trade and Employment and the Department of Social Protection are currently undertaking an assessment of the impact of a range of changes to working conditions. This work will include a fuller assessment of the impact of an additional public holiday in Ireland and is due for completion by the end of 2023.

Business Supports

Questions (257)

Colm Burke

Question:

257. Deputy Colm Burke asked the Minister for Enterprise, Trade and Employment the supports available to businesses which were established under the last 12 months and therefore, do not qualify for the temporary business energy support scheme; and if he will make a statement on the matter. [24065/23]

View answer

Written answers

The Temporary Business Energy Support Scheme does not exclude newly established businesses. Businesses who are newly established within the past 12 months can apply for TBESS.

Where the eligible business does not have a reference electricity bill or reference gas bill for the

reference period because the business had not commenced at that time or because the relevant electricity account or gas connection was not held by the business at the time, a deemed reference unit price must be used.

This may happen where a business acquired an electricity account/MPRN or gas connections/GPRN, moved premises or commenced trading after the relevant reference period.

A ‘deemed reference unit price’ in respect of electricity or gas will be used when a comparative unit

price cannot be ascertained for the reference period.

The Sustainable Energy Authority of Ireland (SEAI) has provided a deemed reference unit price for the range of MPRNs and GPRNs for each of the months from September 2021 to May 2022. These deemed reference unit prices are based on data provided to the

SEAI by suppliers and the Commission for Regulation of Utilities.

Revenue has published comprehensive guidelines on the operation of the scheme, which includes information on eligibility for the scheme and how claims may be made. The guidelines are available on the Revenue website at: www.revenue.ie/en/starting-a-business/documents/tbess-guidelines.pdf. Deemed reference unit prices for electricity and gas, which have been made available by the SEAI, are contained in Appendix III of the guidelines.

Further details are outlined in TBESS guidelines available on Revenue.ie.

My Department's website provides a list of additional supports available to help businesses and further details on those supports can be found at: Climate action and energy - DETE (enterprise.gov.ie).

Wildlife Conservation

Questions (258)

Holly Cairns

Question:

258. Deputy Holly Cairns asked the Minister for Enterprise, Trade and Employment if his Department and public bodies/agencies that operate under his remit have policies in place to install artificial structures that provide shelter and habitat space for wild species, such as, but not limited to, insect hotels, bat boxes, nesting towers and beehives; and if he will make a statement on the matter. [24259/23]

View answer

Written answers

The Government’s Climate Action Plan 2023 including the 2023 Public Sector Climate Action Mandate, requires public sector bodies to show leadership in climate action by taking, and reporting on, the actions they are undertaking to reduce GHG emissions by 51% by 2030.  My Department’s Climate Action Roadmap which is currently being developed will set out our policy response to the Climate Action Roadmap.

My Department has a long standing internal green team which over the past four years has facilitated the delivery of many significant decarbonisation and green initiatives, several in collaboration with partners in the Office of Public Works (OPW) and SEAI.

In 2021 the Department installed two beehives filled with native Irish honeybees (Apis Mellifera Mellifera) on the roof of its headquarter building at 23 Kildare Street in Dublin. The species housed in the hives are the native black bees which have adapted to our native environment and are best suited to the Irish climate. This species were selected with the advice of the Heritage and Conservation Services of the Office of Public Works.

The operation of such policies by the agencies under the Department’s remit is an operational matter for the agencies. I have asked the agencies for the information sought and will respond directly to the Deputy with an update as soon as possible.

Regulatory Bodies

Questions (259)

Catherine Murphy

Question:

259. Deputy Catherine Murphy asked the Minister for Enterprise, Trade and Employment if he will provide a schedule of the amount of fees under each heading that the CRO has received in 2020, 2021, 2022 and to date in 2023. [24310/23]

View answer

Written answers

Set out below are details of the fee income received by the Companies Registration Office in the period from 2020 to date. This fee income is made up of the submission fees, late filing fees and miscellaneous fees (comprising search fees, requests for certified copies of documents, bulk data sales).

CRO Income

2020

2021

2022

2023 (Year to date)

Late Filing Fees

3.7m

6.0m

7.9m

3.04m

Submission Fees

7.37m

9.06m

8.49m

3.22m

Miscellaneous*

1.76m

1.16m

0.97m

0.49m

Total:

12.83m

16.22m

17.36m

6.75m

*This sum also includes the fees in respect of searches and requests for certified copies of documents from the Registry of Friendly Societies as they cannot be easily disaggregated

Employment Rights

Questions (260)

Willie O'Dea

Question:

260. Deputy Willie O'Dea asked the Minister for Enterprise, Trade and Employment if he is aware that a business (details supplied) dismissed four mechanical workers as fitters and welders in Limerick, simply because they requested that their legal entitlements be honoured; his views on whether this is appropriate conduct from a company which is benefitting from a number of State contracts; if he will take action to pause any contracts with this company which are currently being negotiated until these workers are reinstated; and if he will make a statement on the matter. [24332/23]

View answer

Written answers

At the outset, I must emphasise that the responsibility for the resolution of an employment law dispute is a matter for the WRC's adjudication service. I have no role in the administration of justice.

Under Irish law, an individual has the right to join a trade union of their choice. The Unfair Dismissal Acts 1977-2016 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. It is unlawful to dismiss a person from their job simply because they are a member of a trade union.

I would urge parties in dispute to come together in an effort to resolve the issues which should hopefully lead to a resolution to the current situation. If this cannot be achieved, and where an individual believes they have been dismissed from their employment for trade union activity or membership they may refer their complaint to the Workplace Relations Commission (WRC) under the Unfair Dismissals Acts 1977-2015.

The awarding of State contracts is conducted through a fair, independent and transparent procurement process in which I, as Minister, have no involvement.

Enterprise Policy

Questions (261)

Holly Cairns

Question:

261. Deputy Holly Cairns asked the Minister for Enterprise, Trade and Employment if he will provide an update on actions to address Recommendation 1.2 in the Report of the SME Taskforce: National SME and Entrepreneurship Growth Plan to ‘Remove the cost and availability of insurance as a barrier to the start-up and growth of SMEs and to the types of businesses that can be established. Review the extent to which there is a systemic market failure problem in Ireland’; and if he will make a statement on the matter. [24344/23]

View answer

Written answers

Competition in the insurance market remains a key priority for the Government.

We want to reduce the burden of insurance costs, through the ‘Action Plan for Insurance’, for all sectors of society including SMEs. Already, 90% of the actions under the Plan have been implemented.

Two key reforms to date have been the adoption of the Personal Injuries Guidelines (by the Judicial Council) in April 2021 and under my Department, the reform of the Personal Injuries Assessment Board (PIAB) via the Personal Injuries Resolution Board Act 2022.

PIAB’s ‘Personal injuries Awards Values Report’ in November 2022 shows that injury award values settled under the new Injuries Guidelines in H1 2022 were on average 38% lower than in 2020 under the previous Book of Quantum. Award values have long been recognised as a key contributor to insurance premiums.

There are clear signs that the market is responding to the Government’s reform agenda, with insurers moving into areas that had previously proved problematic such as: inflatables hire; equestrian activities; and childcare. We have also seen that incumbent providers are also expanding their product offerings into areas such as SMEs, agri and renewables. This is a further sign of confidence that Government reforms are working and is an extremely welcome development.

The Government’s Office to Promote Competition in the Insurance Market , chaired by Minister of State Carroll MacNeill, continues to meet with relevant stakeholders to encourage new entrants into the market as well as for existing insurers to expand their risk appetite. The Office is also working closely with IDA Ireland, an agency of my Department, to bring new entrants into the Irish insurance market and to improve its overall competitiveness. The ongoing reform program is being leveraged to attract potential new entrants into the market.

The Cabinet Committee Insurance Reform Sub-Group continues to review developments in the insurance sector, monitor pricing, and engage with stakeholders to resolve issues in the market. While Government is aware of the globally interconnected nature of insurance, it is determined to get its domestic house in order by reforming the insurance environment in Ireland and bringing extra capacity to the market which will assist in the start-up and growth of SMEs in our country.

In terms of next steps, re-balancing the Duty of Care legislation (the Occupiers’ Liability Act 1995) is now the main priority and is being led by the Minister of Justice via the Courts and Civil Law (Miscellaneous Provisions) Bill 2022. The Bill has completed its passage through the Dáil and passed Second Stage in the Seanad on the 27 April. It is expected that this legislation when enacted will have a very positive impact on insurance costs for all businesses including SMEs.

Top
Share