Written Answers Nos. 116-132
116. Deputy Pearse Doherty asked the Minister for Enterprise, Trade and Employment if any economic assessment has been undertaken by his Department regarding the economic impact of the continued housing shortage on the State’s FDI proposition; and if he will make a statement on the matter. [3150/23]
View answerIreland has been the fastest growing economy in Europe over the past decade and recent IDA results reflect this.
Last year, Ireland continued to win significant international investment, and the short-term pipeline looks promising.
IDA Ireland reported record annual results for 2022 in December last, with a substantial increase in growth in foreign direct investment (FDI) employment on 2021. The numbers directly employed in IDA multinational clients in Ireland reach 301,475, the highest FDI employment level ever and a 9% increase on 2021. IDA client companies recorded 32,426 gross new job gains in 2022, with a 24,019 net jobs increase. IDA won 242 investments in 2022 for Ireland, 103 of which were new name investments. Importantly, 52% or 127 of the 242 investments won went to regional locations, with employment growth in every region of the country.
As Minister for Enterprise, Trade and Employment I am engaging with IDA on the newly launched White Paper on Enterprise and on this Government’s strategic objectives on decarbonisation, technological change and regional potential. A focus on transformation is more important than ever for companies, foreign-owned and home-grown, to remain competitive. The resilience and longevity of our multinational base in Ireland reflects their ability to constantly transform in response to change.
High housing costs, and lack of availability, are presenting a challenge to IDA client companies in attracting and retaining the talent they need to continue to grow in Ireland.
As set out in the White Paper on Enterprise that was published by my Department last year, through Project Ireland 2040 and Housing for All, the Government is committed to substantial investment to overcome constraints in areas such as transport infrastructure, energy, water, housing, and climate adaptation.
As the question relates specifically to housing, I want to touch on the ambition of Housing for All and outline some of the steps my Department (with other relevant stakeholders) is taking to promote construction sector productivity and innovation that can help accelerate housing delivery. Innovative construction processes (like offsite construction) have the potential to dramatically increase productivity and reduce cost and delivery times.
The overall objective of Housing for All is that everyone in the State should have access to a home to purchase or rent at an affordable price, built to a high standard and in the right place, offering a high quality of life. We are making progress. The supply of housing is increasing, with over 41,456 new homes built since the Plan's commencement, and targets for house building exceeded by 20% in 2022.
To help drive higher productivity, efficiency and innovation in residential construction, My Department has made available funding of €5m over 5 years, to establish 'ConstructInnovate', Ireland’s National Research and Development Hub specifically for the construction sector.
My Department has also expanded the mandate of the Enterprise Agencies to allow them to provide support to domestically focused residential construction sector firms to promote innovation; and through the NSAI, is offering additional services to help innovative building systems demonstrate their regulatory compliance.
My Department is also leading an ecosystem-wide approach to the wider adoption of Modern Methods of Construction (MMC) that will work with other Government partners and the industry to focus on the regulatory, skills, business development, procurement, financial and other enablers that will need to be addressed to ensure the most advanced and compliant building processes and systems can be deployed. A key output of this work will be a roadmap with targets for compliant MMC adoption in publicly procured residential construction, along with the steps necessary to achieve this ambition.
118. Deputy Matt Carthy asked the Minister for Enterprise, Trade and Employment the number of IDA-supported jobs delivered in County Monaghan in each of the years 2018 to date in 2023; and the target number for creation in 2023. [8318/23]
View answer2022 was a record-breaking year for Foreign Direct Investment (FDI) employment, with total employment in IDA client companies now standing at 301,475 up over 26,000 on 2021. Growth in the regions was particularly buoyant, with 52% - or 127 projects of the 242 investments won by the IDA - going to regional locations. Employment growth was also recorded in every region of the country.
Monaghan is marketed by the IDA as part of the wider Border Region, made up of the counties Donegal, Sligo, Leitrim and Cavan, as well as Monaghan. There are 73 IDA companies in this region who directly employ 8,885 people. There are currently 8 IDA supported companies in Monaghan, employing 428 people.
The FDI performance in the region has been strong over the past five years with employment among IDA clients increasing by 21% as traditional strengths in sectors such as Engineering & Industrial Technologies and Medical Technologies were complemented by new investments from the Technology, International Financial Services and Life Sciences sectors. Key to that success is strategic collaboration with national and local stakeholders on the enhancement of the regional value proposition for FDI. In this regard, IDA Ireland welcomes the significant funding that both Cavan and Monaghan have received under the Urban Regeneration Development Fund (URDF) which will further enhance the attractiveness of both counties for FDI.
The existing FDI base of companies in Monaghan enjoys strong collaborative links with several third level colleges including Dundalk Institute of Technology as well as the Technological University of Shannon (TUS) and the Atlantic Technological University (ATU).
The IDA is targeting 25 investments for the Border region in the period 2021 to 2024. The Agency will build on the strengths and competencies of the region with a focus on opportunities arising in the sectors of Life Sciences, Technology and Services. The objective will be to take advantage of emerging technologies and business models, including home and hub working.
As the Deputy will be aware, IDA Ireland has recently completed the construction of an Advance Building Solution in Monaghan which it is currently actively marketing to potential FDI clients.
For the years in question, the number of jobs in IDA client companies in Monaghan were:
- 362 in 2018
- 371 in 2019
- 447 in 2020
- 445 in 2021, and
- 428 in 2022.
119. Deputy Jackie Cahill asked the Minister for Enterprise, Trade and Employment the funding his Department has provided for the temporary business energy support scheme; and if he will make a statement on the matter. [8978/23]
View answerTBESS is a government grant designed to help businesses with increasing energy costs. The Scheme has been designed by Department of Finance and is being administered by the Revenue Commissioners. However, funding for the Scheme is allocated to the Vote of my Department who provides daily transfers at the request of the Revenue Commissioners.
The Government has allocated €1.3bn for the Scheme. An initial amount of €650m was allocated for 2022 to my Department through the Supplementary Estimates process with an additional €650m provided for in our 2023 Budget Estimates.
As at 16 February over 18,500 applications have been approved to the value of €33 million. I recognise that this Scheme is undersubscribed and I have had extensive engagement with stakeholders to understand why.
As you know the Government reviewed this scheme to see if we can make it more accessible and increase take up by businesses who need it. On Tuesday last the Government announced that TBESS would be amended to ensure more businesses are eligible to apply.
It is now proposed to make the following amendments to the TBESS:
- Extend the end date of the scheme, which is currently 28 February 2023, to 31 May 2023 with an option to further extend it to 31 July 2023 by Ministerial Order.
- Reduce the ‘energy cost threshold’ for the scheme, so a tax compliant business can claim relief where it can demonstrate that the average unit price for electricity or natural gas on the relevant bill has increased by 30 percent or more as compared to the average unit price of electricity or natural gas in the reference period. This revised threshold will be applied on a retrospective basis from September 2022 so businesses who were not previously eligible for the scheme due to the 50 percent energy cost threshold may now be eligible for the scheme.
- Increase, from 1 March 2023, the level of relief from 40 percent of the eligible cost to 50 percent, subject to the monthly limits on aid provided for under the scheme.
- Raise the monthly cap from €10,000 to €15,000 from 1 March onwards.
It should be noted that State aid approval under the "Temporary Crisis Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia” is required before these amendments to TBESS can be implemented.
I have also made a commitment to explore options for provide assistance to businesses who rely on Oil and LPG as their energy source and revert to Government on this matter.
120. Deputy Pádraig O'Sullivan asked the Minister for Enterprise, Trade and Employment if he will report on the operation of his Department’s Budget 2023 package to help businesses with escalating energy costs; and if he will make a statement on the matter. [9192/23]
View answerThe Government’s focus in Budget 2023 is to assist citizens and businesses in dealing with the cost of living increases, particularly in relation to matters such as increased energy prices. The overall package of €11 billion being made available through the Budget, including once-off measures worth €4.1 billion, demonstrates the Government’s commitment in this matter.
As regard assisting businesses in the current crisis, Budget 2023 is funding a range of supports in areas such as taxation, energy supports etc. to help companies impacted by increased costs in the price of energy. A number of these supports are being funded through my own Department’s Vote.
Principal among these is the Temporary Business Energy Support Scheme (TBESS). The TBESS Scheme was launched late last year to support businesses with increases in their electricity or natural gas (energy) costs. Funding to support the Scheme is provided through my Department’s Vote, albeit the Scheme itself is administered by the Revenue Commissioners. Funding of €650 million to support the Scheme was provided to our Vote in both 2022 and 2023 to reflect the overall commitment of €1.3 billion in support for the Scheme as announced in the Budget.
As of 17th February, a total of 23,532 applications have been registered with the Revenue Commissioners. Some18,506 claims to the value of €38.32 million have been approved and payments to the value of €33.65 million have actually been paid out under the Scheme.
The Government has been closely monitoring the operation of the Scheme. The assessment of the initial period of the Scheme published late last month acknowledged that take-up had been somewhat lower than expected but that claims for assistance under the Scheme had increased and were likely to increase further in the coming weeks.
Following on from this assessment, the Government recently announced its intention to introduce a number of changes to extend the terms of the Scheme. These would include extending the end date of the scheme to 31 May 2023 with an option to further extend it to 31 July, reducing the threshold for qualification from a 50% increase in electricity or gas costs to 30% increase retrospectively from last September, increasing from 1 March the level of relief from 40% to 50% of eligible costs, subject to a monthly limit, which will also be increased from March, to €15,000 per month per trade or profession, subject to an overall cap of €45,000 where the business is carried on from more than one location. These changes require State Aid approval and engagements to secure this approval have already commenced with the EU Commission.
In terms of the scope of the Scheme, my Department is currently exploring options to extend supports to businesses who rely on Oil and LPG as their energy source and I will revert to Government on this matter as soon as possible.
Aside from the TBESS Scheme, my Department is also continuing to support the Ukraine Enterprise Crisis Scheme in 2023. The UECS scheme, which was also launched last year, provides supports to businesses of all sizes in manufacturing and internationally traded services which have been adversely impacted, including by excessive increases in energy costs due to the Russian war on Ukraine. The Scheme has two discrete streams. Stream 1 which is intended to address the impact of rising input costs on business cash flow and liquidity and Stream 2 which is focussed on the impacts on high energy intensive businesses. My Department is engaged with the Department of Public Expenditure and Reform to extend the terms of the Scheme, including increasing the aid levels under the Scheme.
The Government has committed €200 million in funding to support the UECS Scheme. Since its launch late last year €3.4 million has been expended in respect of supports under the Scheme.
There is also provision in my Department’s 2023 Estimate to support the Ukraine Credit Guarantee Scheme. This Scheme will provide up to €1.2 billion in lending to assist the liquidity needs of SMEs, farmers, fishers and small mid-caps impacted by increased energy costs as a result of the war in Ukraine. The Scheme will be available to viable businesses and will allow them to access new loans of between €10k to €1m under a broad range of credit facilities including overdrafts, working capital and term loan facilities. The €5 million in funding in our Estimate this year, will directly support the 80% guarantee to participating lenders under the Scheme.
Aside from the aforementioned measures, my Department also funds a suite of targeted Energy and Sustainability schemes, which are focussed on assisting businesses in reducing their carbon footprints thus helping to limit their reliance on carbon fuels and the impact of the increases in price of those fuels. These decarbonisation measures include the Climate Toolkit for Business, the LEOs Green for Micro, EI’s Climate Action and Innovation grants, its Green Plus, Green Start and Agile Innovation supports.
It is also the case that Government is focussed on facilitating investment in our energy system to deliver price competitiveness over the medium-term. Government is determined to deliver a diversified energy system, with significant support for energy efficiency and renewables, alongside independent regulation. In this regard the Department and its agencies, such as Enterprise Ireland, are actively engaged in building the capacity in the indigenous sector for these supply chain opportunities. The Offshore Wind industry also has a significant regional employment potential and also offers great potential to industry and the wider supply.
The measures which I have outlined above clearly shows the Government’s strong commitment to assist businesses as they grapple with the impact of increased energy costs arising from the crisis in the Ukraine. The supports provided by my Department and our Agencies have been key to ensuring that businesses have successfully emerged from other crises such as Covid -19 and I am confident that they will do so again in this current crisis.
121. Deputy Seán Haughey asked the Minister for Enterprise, Trade and Employment if he will provide a report on his attendance at the informal EU Competitiveness Council in Stockholm; and if he will make a statement on the matter. [8940/23]
View answerI attended the recent Informal Competitiveness (Internal Market and Industry) Council in Stockholm which took place on 7 February.
The main topic for discussion at the Council meeting was Competitiveness in the context of the green transition and a strong Single Market. Ministers discussed how short term measures, such as those taken in response to the energy crisis, can strengthen EU Competitiveness in the long run.
Ireland views a competitive enhanced Single Market as essential to strengthening competitiveness and fostering world class enterprises that can scale up and compete on the global markets and a level playing field is a key support to competitiveness and productivity.
The Council generally supported the need for a joined-up approach to address short-term and long-term goals ensuring long term EU competitiveness but based on preserving the Single Market and the level playing field.
122. Deputy Alan Farrell asked the Minister for Enterprise, Trade and Employment if he will outline his efforts to attract foreign direct investment in Ireland in 2023; and if he will make a statement on the matter. [8489/23]
View answerForeign Direct Investment (FDI) plays a significant role in Ireland’s economy and the flow of FDI into the country is strong. Numbers directly employed in the multinational sector in Ireland reached 301,475 at the end of 2022, the highest FDI employment level ever, and a 9% increase on 2021. A total of 32,426 gross new jobs were gained in 2022. 242 investments were won and 103 of these are new name investments. Of the new investments, 52% - or 127 of the 242 investments won - went to regional locations and there was employment growth in every region of the country.
These record results demonstrate not only the resilience of the FDI sector in Ireland, but also the strength of Ireland’s value proposition and attractive business environment, which enables global companies to successfully invest and expand in Ireland.
As we face a challenging and competitive global environment, Ireland will continue to strengthen its attractiveness for FDI. Efforts in this area are guided by IDA Ireland’s Strategy, "Driving Recovery & Sustainable Growth 2021-2024". The Strategy seeks to consolidate and build on the positive impact of FDI as Ireland pursues a jobs-led pandemic recovery, as envisaged in the Programme for Government, while seizing the opportunities of the green and digital transition.
The continued promotion of FDI in Ireland is further supported by the Economic Recovery Plan and the Trade and Investment Strategy 2022-2026: Value for Ireland, Values for the World. Key priorities set out by that Strategy focus on the promotion of Ireland’s investment ecosystem and reaping the benefits of the EU Single Market. Moreover, the White Paper on Enterprise, published by Government in December 2022, also highlights the key role played by FDI in supporting economic growth and employment. The White Paper outlines the strategic direction for Ireland’s enterprise policy over the rest of the decade in the context of challenges, opportunities and new drivers of growth and we are committed to work to protect the core elements of Inward Investment policy that make Ireland an attractive location for enterprise development. Biennial Implementation Plans during the lifetime of the White Paper will further set out our FDI strategies, with the first Plan for 2023/2024 due by the end of Q1 this year.
123. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 83 of 13 December 2022, the status of the cross-departmental group, co-chaired by his Department, to oversee implementation of the transition from the atypical scheme for non-EEA crew in the Irish fishing fleet to the employment permits scheme; the terms of reference of the group; the membership of the group; the number of times the group has met to date; if minutes are taken in respect of the group's meetings; and if he will make a statement on the matter. [9092/23]
View answerThe Department of Justice Review the Atypical Scheme for non-EEA Crew in the Irish Fishing Fleet included in its recommendations that a cross-departmental group be established comprising senior officials from relevant Government departments and agencies to oversee implementation of the transition of fishers in the Irish fleet from the Atypical Working Scheme to the Employment Permits system.
This group will be co-chaired by the Department of Agriculture, Food and the Marine and the Department of Enterprise, Trade and Employment and will commence its work upon receipt of an evidence-based submission to my Department from the fishing sector, as previously advised, requesting the occupation of fishers be removed from the Ineligible Occupations List.
Officials of my Department have engaged with the Department of Agriculture, Food and the Marine to finalise the Terms of Reference for the group and its membership. DAFM have also advised that An Bord Iascaigh Mhara have provided assistance to the seafood sector representatives in preparing the business case. The sector are expected to make their submission in due course.
124. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment how the new White Paper on Enterprise will help businesses in the Border region; and if he will make a statement on the matter. [9095/23]
View answerA central component of the White Paper on Enterprise is to support balanced regional economic and enterprise development. In implementing the White Paper, the enterprise development agencies and Local Enterprise Offices will continue to strengthen the enterprise ecosystem, providing opportunities for communities and businesses across Ireland.
By way of example, through the roll out of a National Clustering Programme a key deliverable under the White Paper, we will maximise the scale, impact and international visibility of Irish clusters and cluster organisations while also leveraging the benefits of proximity and co-location to boost regional and rural economic development outcomes including in the Border region.
The ambition set out in the White Paper is to enable a vibrant, resilient, sustainable and regionally-balanced economy made up of a diversified mix of leading global companies, international competitive Irish enterprise and thriving local businesses. My Department has made available to date over €126 million in regional enterprise funding through the Regional Enterprise Development Fund, Border Enterprise Development Fund and Regional Enterprise Transition Scheme to assist locally-led regional enterprise development projects.
The Regional Enterprise Plans play a significant role in strengthening the enterprise ecosystem right across Ireland. The North-East and North-West Regional Enterprise Plans in particular play a central role in supporting the delivery of balanced regional enterprise development in both regions by identifying growth opportunities, recognising vulnerabilities, and in response, strengthening the regional enterprise ecosystem to enable job creation.
The Border Enterprise Development Fund, launched in 2020, recognises the importance of improving the international competitiveness of enterprises in the Border Region in the context of Brexit and other market challenges. 11 projects secured total funding of €17.4 million under this fund. The BEDF is part of a €28 million economic stimulus package for Border counties and further enhances Brexit supports for smaller businesses supported by the LEOs and drives SME business transformation in the Border region who are challenged by Brexit and the impact of the Covid-19 pandemic.
The Department’s Regional Enterprise Transition Scheme was also recently introduced as part of the Government’s programme of assistance for regional enterprise development and assistance to regions facing difficulties as a consequence of Brexit and Covid-19. Last October, 24 projects secured funding of €9.3 million, with funding approved in each region.
The White Paper reaffirms that through the Government’s Shared Island Initiative opportunities for North / South cooperation to enhance the investment proposition of the island as a whole and in border regions in both jurisdictions will continue to be pursued, including on research and innovation, skills, transport connectivity, renewable energy, and the development of sectoral ecosystems.
The implementation of the White Paper on Enterprise will be monitored and assessed against delivery of 15 identified targets covering the seven priority policy objectives. These include regional targets including ensuring that unemployment does not exceed one percentage point of the national unemployment rate in any region, delivering at least half of all new FDI investments from 2021-2024 to outside of Dublin, and for over two thirds of new jobs created in Enterprise Ireland supported firms to be located outside of Dublin.
125. Deputy Pádraig O'Sullivan asked the Minister for Enterprise, Trade and Employment if he will provide an overview of the new White Paper on Enterprise; and if he will make a statement on the matter. [9193/23]
View answerThe White Paper sets out the Government’s enterprise priorities in the period to 2030. It seeks to ensure Ireland’s enterprise policy is orientated to protect Ireland’s strong economic position, and to respond to challenges and opportunities that have emerged as a result of the pandemic, wider economic and geopolitical developments, digitalisation and an increased urgency to decarbonise industry.
It represents an evolution of our enterprise policy, building on the strong foundations already in place. It sets out what needs to be done differently to realise a resilient, inclusive, and sustainable enterprise growth model for Ireland in the future.
The White Paper also addresses the key components of the competitive enterprise environment including infrastructure, cost of doing business, skills and talent, access to finance, taxation and regulation.
The White Paper vision is for Irish-based enterprise to succeed through competitive advantage founded on sustainability, innovative and productivity, delivering rewarding jobs and livelihoods.
It sets out the Government’s seven priority enterprise policy objectives for the period to 2030. These are:
1. Integrating decarbonisation and net zero commitments where our targets are a 35% emissions reduction from Industry by 2030 and 45% emissions reduction from
Commercial Built Environment by 2030.
2. Placing digital transformation at the heart of enterprise policy where our target is that 90% of SMEs are at basic digital intensity by 2030.
3. Advancing Ireland’s FDI and trade value proposition with targets of a 20% increase in IDA client expenditure in Ireland by 2024, and at least half of all FDI investments between 2021 and 2024 to be located outside of Dublin.
4. Strengthening the Irish-owned exporting sector where we are targeting 2.5% average annual growth in Irish-owned enterprise productivity by 2024, a 50% increase in the number of large Irish exporting companies by 2030, 2,000 additional Irish-owned exporters by 2030, and over two-thirds of Enterprise Ireland assisted new jobs between 2022 and 2024 will be created outside of Dublin.
5. Enabling locally trading sectors to thrive where our target is a 1% average annual increase in multifactor productivity growth in domestic sectors of the economy by 2025.
6. Stepping up enterprise innovation such that Gross Expenditure on R&D will increase to 2.5% of Gross National Income by 2030 and the Number of High-Potential Start-Ups is increased by 20% by 2024.
7. Building on strengths and opportunities where our targets are five national cluster organisations funded under a new National Clustering Programme by 2025 and unemployment not to exceed one percentage point of national unemployment rate in any region.
My Department will lead the development of consecutive two-year Implementation Plans of cross-government activity to implement the White Paper commitments. The first White Paper Implementation Plan, covering the period to the end of 2024, will be prepared in Q1 of this year. Biannual reports will include updates on progress towards the 15 targets identified in the White Paper.
126. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment his views on non-compliance by private security firms with the Employment Regulation Order for the security industry; and if he will make a statement on the matter. [9252/23]
View answerOn 3 August 2022, I announced my intention to issue an Order to give effect to a statutory recommendation of the Labour Court concerning minimum rates of remuneration and other terms and conditions in the Security Sector. The Order was to apply from 29 August 2022.
On 24 August 2022 my Department was informed that High Court had granted an Injunction prohibiting the commencement of the proposed Statutory Instrument giving effect to the new Employment Regulation Order for the Security Industry.
At this moment in time the Order cannot be proceeded with. Once an Order is in place I expect all employers in a given sector to comply with statutory requirements.
127. Deputy Robert Troy asked the Minister for Enterprise, Trade and Employment when the IDA will put out to tender the construction of a new advanced manufacturing building on its site at Marlinstown, Mullingar; and if he will make a statement on the matter. [8884/23]
View answerIDA Ireland received the final grant of planning permission from Westmeath County Council on the 29th December 2022 for the construction of a c.50,000sq.ft. Advanced Building Solution consisting of office and light industrial/production spaces. IDA Ireland has commenced the public procurement process for the selection of a suitably qualified contractor to complete the development. It is IDA Ireland’s intention to appoint a contractor for the construction of the Advanced Building Solution in Q3 2023 with a view to commencing the development shortly thereafter. The appointment of the contractor will also be subject to approval by the IDA Ireland Board The Deputy will appreciate, therefore, that these dates will depend on a satisfactory outcome from the public procurement process and may be subject to change.
128. Deputy Thomas Gould asked the Minister for Enterprise, Trade and Employment if he will provide an update on the implementation of the recommendations of the Duffy-Cahill report. [9246/23]
View answerThe Programme for Government, ‘Our Shared Future’ commits to “review whether the legal provisions surrounding collective redundancies and the liquidation of companies effectively protect the rights of workers”.
Following extensive engagement with the social partners, the ‘Plan of Action on Collective Redundancies following Insolvency’ was published in June 2021. The Plan was also informed by the Cahill Duffy Report (April 2016) and the work of the Company Law Review Group (CLRG), which is a statutory body made up of representatives from a wide range of stakeholders and experts concerning the breadth of the Companies Act 2014.
The policy objective of this Plan is to further enhance the protection of employees in a collective redundancy in a way that does not unduly impede enterprises in the conduct of their business.
The Plan sets out several commitments to safeguard further the rights of workers including:
- To introduce amendments to employment law and company law dealing with matters related to collective redundancies following company insolvency,
- To provide an accessible guidance document to help workers and their representatives navigate the existing legal framework, and
- To establish a new Employment Law Review Group, (ERLG) which will act as an independent advisory expert group to help shape the formulation of policy and legislation in the area of employment rights.
Significant progress has been achieved in delivering on the various actions:
- The Guidance Document was published in December 2021. This provides clear and accessible information to employees facing a collective redundancy situation following a company insolvency on their rights and the remedies available to them.
- Work has commenced on establishing the ELRG. The immediate focus is to get the Group up and running, initially on a non-statutory basis, as soon as practicable in 2023.
- Four company law actions have been implemented: three on the quality and circulation of information to workers as creditors through the Companies (Rescue Process for Small and Micro Companies) Act 2021, and one action on imposing a statutory obligation on directors to consider the interests of creditors in the period leading up to insolvency through the European Communities (Preventive Restructuring) Regulations 2022.
The CLRG’s ‘Report on the consequences of certain corporate liquidations and restructuring practices, including splitting of corporate operations from asset holding entities in group structures’ has been considered by the Department in the context of the Plan of Action. The CLRG ultimately concluded that the incidence of abusive practices in corporate restructuring, while attracting significant attention, is in fact low. This conclusion was supported by the then Office of Director of Corporate Enforcement which noted that its reviews of liquidations indicate that in over 90% of all liquidations, company directors had acted honestly and responsibly. Notwithstanding this, the CLRG made recommendations for potential amendment to the Companies Act 2014 to further enhance and strengthen the regulatory framework.
It is intended to bring forward proposals to Government shortly which will implement outstanding employment law and company law legislative commitments set out in the Plan of Action.
129. Deputy Jennifer Murnane O'Connor asked the Minister for Enterprise, Trade and Employment if he will provide an update on the IDA advanced factory in Carlow; the action being taken to attract businesses to the factory; and if he will make a statement on the matter. [8911/23]
View answerRegional development remains a top priority for my Department and IDA Ireland. Of the 242 investments won in 2022, more than half went to regional locations, and for 2021, of the 249 investments secured by the IDA, 133 - again more than 50% - went to locations outside Dublin.
The IDA’s Regional Property Programme, supported by my Department, provides property and strategic site solutions to address market failures in regional locations. This encourages and facilitates regional investment by ensuring there are suitable properties in place to meet the needs of multinational companies. We recognise that the timely provision of appropriate and cost-effective property and infrastructure solutions remains essential to winning Foreign Direct Investment. In that regard, over the past 5 years, the IDA’s Regional Property Programme has enabled the winning of capital-intensive projects of significant scale to regional locations.
IDA Ireland will deliver 19 Advanced Building Solutions in 15 regional locations throughout Ireland over the lifetime of their current strategy "Driving Recovery & Sustainable Growth 2021-2024".
In relation to Carlow, the 'Advanced Building Solution' commenced construction on-site in Quarter 2 2021 and is currently forecast for completion in Q1 this year. The property is currently included as part of IDA marketing material for Foreign Direct Investment and Enterprise Ireland clients.
130. Deputy Maurice Quinlivan asked the Minister for Enterprise, Trade and Employment if he will report on the progress of the Programme for Government commitment to progress to a living wage over the lifetime of the Government; and if he will make a statement on the matter. [8918/23]
View answerThe Programme for Government contains the commitment to “progress to a living wage over the lifetime of the Government”.
In January 2021, the Low Pay Commission was requested to report on how best the Government could progress to a living wage. Following commissioned research from Maynooth University and engagement with unions and representative groups, the Commission submitted its Living Wage Report in March 2022 which included 18 recommendations.
In their recommendations, the Low Pay Commission proposed adopting a fixed threshold approach for the calculation of a living wage, as opposed to a Minimum Essential Standard of Living or “basket of goods” approach, and setting the fixed threshold at 60% of the median wage in the economy. The Commission also recommended that after the 60% target has been reached, subject to an assessment of the impact of this, the Commission should then assess the economic practicality of gradually increasing the targeted threshold rate towards 66% of the median wage.
In June 2022, a proposal was outlined to introduce a living wage for all employees. A public consultation was then launched seeking submissions from the public on the Low Pay Commission’s recommendations and on a ‘strawman proposal’ which provided an illustrative example of how a living wage might be phased in over a 4-year timeframe. The public consultation closed in August. It received 46 submissions.
An interdepartmental working group was also formed to address the issues arising from the Low Pay Commission’s recommendations in order to assist with the progression to a living wage.
In November 2022, a Government decision on the introduction of a national living wage for employees was announced. The living wage will be set at 60% of hourly median wages in line with the recommendations of the Low Pay Commission. It will be introduced over a four-year period and will be in place by 2026, at which point it will replace the statutory National Minimum Wage.
As part of Budget 2023 the Government accepted the Low Pay Commission’s recommendation that the National Minimum Wage should increase by 80 cent from €10.50 per hour to €11.30 per hour which took effect from the 1st January 2023.
The new hourly National Minimum Wage of €11.30 is in line with the living wage strawman proposal. As such, 2023 can be considered the first year of the proposed four-year path towards reaching the living wage of 60% of the median wage which is in line with the recommendations of the Low Pay Commission.
131. Deputy Cathal Crowe asked the Minister for Enterprise, Trade and Employment if the Government has a strategy to ensure that supports are available to new forms of aviation, such as drone technology. [9258/23]
View answerFlying and operating drones in Ireland is subject to European Union Regulation 2019/947. The Irish Aviation Authority (IAA) currently supervises and implements this Regulation in Ireland.
The Department of Transport is directly responsible for developing the national policy framework for drones, including supporting growth and innovation while managing safety, security, and privacy aspects.
Funded through my Department, Enterprise Ireland's research, development and innovation programmes including the Disruptive Technology Innovation Fund are also available to enterprises developing new forms of aviation and drone technology.
Ireland has over 100 companies active in space development technology and these companies are actively supported by EI through their European Space Agency (ESA) membership. While developed primarily to meet the challenges of space travel, membership of the ESA also requires that these technologies have wider applicability including in the aviation industry.
132. Deputy Jennifer Murnane O'Connor asked the Minister for Enterprise, Trade and Employment if he will provide an update on the South-East Regional Enterprise Plan; and if he will make a statement on the matter. [8910/23]
View answerBalanced regional enterprise development continues to be a key policy priority of mine and this Government.
In pursuit of this, the Department of Enterprise, Trade and Employment (DETE) launched nine new Regional Enterprise Plans in 2022.
A key feature and strength of the Regional Enterprise Plans is that they are developed using a ‘bottom-up’ approach, developed by regional stakeholders who are keenly aware of the growth opportunities and vulnerabilities in their region, and of the benefits of working collaboratively. Each Regional Enterprise Plan is overseen and monitored by a Steering Committee made up of regional stakeholders and chaired by a senior level private sector businessperson.
The South-East Regional Enterprise Plan covers Carlow, Kilkenny, Wexford and Waterford and was launched in Wexford on the 24th of March last year. The Plan contains five strategic objectives (and related actions) to be delivered by end 2024.
They are:
- Start and grow - encouraging entrepreneurship and enhancing the region’s start up ecosystem
- Green growth - ensuring that the green economy becomes an engine for future job creation and economic growth in the region
- Smart specialisation and clustering - the principles of smart specialisation and clustering are critical for the region to create a resilient, inclusive, sustainable and competitive economy.
- Innovate - building on existing RD&I capacity to place innovation at the heart of the South-East economy.
- Place - developing a region that is attractive to both domestic and international visitors and communicating the benefits of living and working in the South-East.
The South-East Steering Committee is chaired by Patsy Carney. The Steering Committee members include representation from the Local Authorities, the Enterprise Agencies, LEOs, Regional Assemblies, Higher Education bodies and others, all of whom are focused on creating a dynamic enterprise ecosystem in the region.
Since publication and launch, the Working Groups have been meeting to drive implementation of the actions, with a manager having been appointed to the Life Sciences Cluster in particular.
Indeed, I am due to attend the next meeting of the Steering Committee next month at SETU in Waterford, when I look forward to hearing more on the progress being made in delivering the South-East Regional Enterprise Plan.
I can advise the Deputy that DETE is continuing to work with Enterprise Ireland to prepare the launch of the first call under the European Regional Development Fund which will drive implementation of the Regional Enterprise Plans. I am keen to get this funding out across the country as soon as possible. Due to the excellent work of the South-East Regional Steering Committee, I strongly believe that the region is well-placed to benefit from this funding.
Finally, the Deputy may be aware that Minister Coveney has recently announced that the Department intends to hold several conferences around the country which will focus on digital transformation and decarbonisation and will showcase the government and agency supports available to small and medium enterprises. The first of these ‘Building Better Business’ conferences will be held in the North-West on Friday, 3rd March at the Letterkenny campus of the Atlantic Technological University (ATU) in Donegal. Conference dates for the rest of the country, including the South-East, will be announced in due course.
