Written Answers Nos. 133-149
133. Deputy Alan Dillon asked the Minister for Enterprise, Trade and Employment if he will provide an update on the IDA's delivery of an advanced building solution for Castlebar; if a strategic land bank has been procured; when the advanced building solution will proceed to planning stage; and if he will make a statement on the matter. [9225/23]
View answerIDA Ireland’s property investment programme is aimed at supporting economic development and job creation across IDA’s, Enterprise Ireland's and local LEO’s respective client base. The provision of property solutions is a key element in IDA’s marketing of Mayo and the West Region. In that regard, IDA, as part of the Regional Property Programme, has delivered an advance technology building to Castlebar which has been occupied by Meissner Filtration Products (announcing 150 jobs in 2019) with a second advance building solution due to be delivered.
It is essential that the West Region and Mayo has a competitive, sustainable property offering to enable the attraction and retention of investment and jobs. IDA Ireland have publicly committed to build a new, second, Advance Technology Building in Castlebar to support the winning of new investment and job creation. The site selection process for the new building is well underway and on conclusion of site selection, the design and planning phases will commence. The specific dates for commencement of construction are wholly dependent on, and subject to, the successful outcome of these processes. IDA will use its best endeavours to deliver the building in a timely manner. IDA Ireland has had regular engagement with Mayo County Council on its plans.
IDA continues to work with regional stakeholders and the private sector on opportunities to add to the supply of competitive property solutions in regional locations.
134. Deputy Ged Nash asked the Minister for Enterprise, Trade and Employment if he will provide an update on the development of the new IDA site in Drogheda; when it will be completed; and if he will make a statement on the matter. [9002/23]
View answerThe timely provision of appropriate, cost-effective property and infrastructure solutions to meet the needs of Multi-National Corporations, or MNCs, remains essential to winning Foreign Direct Investment (FDI). Recognising that a robust property and infrastructure ecosystem can be the key differentiator in winning FDI projects, IDA’s regional property programme, supported by my Department, ensures the continued supply of land, buildings and infrastructure in regional locations to meet the needs of current and prospective clients.
In 2021, IDA Ireland acquired a new landbank at the Mell in Drogheda, Co Louth. This landbank will form part of IDA’s long term strategic plans to position Drogheda and the wider Mid-East region to compete for FDI investment. Since acquiring the landbank, IDA has undertaken an infrastructure review with respect to servicing considerations and how to best position the landbank to potential FDI investment opportunities. IDA are finalising the tender pack for the upgrade works which will go to public tender in Q2 this year.
IDA is committed to building an advanced building solution on the new lands as announced in their current Strategy "Driving Recovery & Sustainable Growth". This building project is at concept review stage and a multi-disciplinary design team has been appointed by IDA and I am informed that this review is ongoing and progressing well.
Specifically, IDA Ireland and Louth County Council have agreed terms on the transfer of c.7 acres to IDA Ireland. This transfer is currently in a conveyancing process. When the transfer is complete, it will increase the IDA Ireland current land holding to c.46 Acres. IDA Ireland is pleased to have acquired these landbanks enhancing the offering in the Mid-East. IDA will continue to work with commercial property developers and Local Authorities to market other property solutions across all regions where they exist.
County Louth is home to 36 IDA Ireland client companies employing 4,485 people. In recent years, IDA Ireland supported companies including WUXI, Amazon Web Services Simply NUC, IT Renew, Panasonic Avionics and Becton Dickinson who have announced investments and expansions for Co. Louth.
138. Deputy Willie O'Dea asked the Minister for Enterprise, Trade and Employment if he will provide an update on the Mid-West Regional Enterprise Plan; and if he will make a statement on the matter. [8923/23]
View answerDelivering balanced regional growth and job creation is a core objective of this Government and is a key component in the recently published White Paper on Enterprise.
My Department contributes to this agenda in a number of ways, including through oversight of development and implementation of nine Regional Enterprise Plans.
A key feature and strength of the Regional Enterprise Plans (REPs) to 2024, is that they are developed using a ‘bottom-up’ approach, by regional stakeholders who are keenly aware of the growth opportunities and vulnerabilities in their region, and of the benefits of working collaboratively.
The Mid-West Plan covers counties Clare, Limerick and Tipperary and was launched in Nenagh on the 14th February 2022.
Each Plan is overseen and monitored by a Steering Committee made up of regional stakeholders and chaired by a senior level private sector businessperson. The Mid-West Steering Committee is chaired by Professor Eamonn Murphy.
Since publication and launch, the Mid-West Steering Committee have met and implementation of the five strategic objectives and related actions is underway.
I hope to attend a meeting of the Steering Committee in the Mid-West in the near future to hear first-hand, the activity ongoing across all objectives.
In October 2022, the National Oversight Group (NOG) met to discuss implementation overall. The NOG includes all Chairs of the REP Steering Committees and senior representation from the Enterprise agencies, Head of LEO network, CCMA and others. Paraic Rattigan, REP Programme Manager represented the Mid-West at that meeting.
Securing funding to assist implementation has been a priority. My Department has secured up to €145m in funding from the European Regional Development Fund (ERDF) over the next number of years to support projects coming from the Regional Enterprise Plans. Officials are working with Enterprise Ireland on developing the scheme with the aim of announcing the first call of around €35m in the coming months. This funding will support innovative enterprise focused projects across all regions.
The Mid-West has performed particularly well under previous regional enterprise schemes, securing over €16 million in approved funding.
By focusing on the strengths of the region and by taking advantage of collaborative funding opportunities I am hopeful the Mid-West will continue to build on their previous successes.
139. Deputy Maurice Quinlivan asked the Minister for Enterprise, Trade and Employment the status of the employment regulation order for the security industry; and if he will make a statement on the matter. [8917/23]
View answerOn 3 August 2022, the former Minister of State for Business, Employment and Retail signalled his 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, the Department of Enterprise, Trade and Employment was informed that the 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.
As a result of the Injunction, I cannot at this moment in time proceed with the Order. I have notified the applicants that I intend to defend the case. The matter is before the courts.
140. Deputy Peadar Tóibín asked the Minister for Enterprise, Trade and Employment if he will report on his meeting with technology companies in the USA. [8422/23]
View answerEarlier this month I met with 14 of the leading technology companies with a presence in Ireland on the US West Coast. This provided a valuable opportunity for me to hear directly from enterprise leaders and to highlight Ireland’s strong Foreign Direct Investment (FDI) value proposition. I also met with a broad spectrum of over 60 business leaders on a wide range of topics, including Ireland’s economy, North-South relations and the impacts of Ukraine.
I came away reassured that, despite the recent job loss announcements, the impact on Ireland is relatively small and the tech sector remains very strong.
I know that the job losses announced are very difficult for the individuals concerned and we will provide every assistance we can to help those impacted to take advantage of other opportunities as demand for experienced tech staff is high across the economy and we have an equally supportive start-up eco-system.
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. Indeed, 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. Last year saw an extra 24,000 jobs created in IDA companies and this success in attracting FDI and creating jobs is largely attributable to our pro-enterprise policy environment, highly educated English-speaking workforce and our membership of the European Union. I promote these valuable selling points on an ongoing basis through our regular trade missions and trade visits.
141. Deputy Ged Nash asked the Minister for Enterprise, Trade and Employment as he prepares to address a cross-Border business conference in Dundalk next month, the new supports he will put in place to help businesses in the Dublin to Belfast economic corridor to cope with the continuing challenges of Brexit; and if he will make a statement on the matter. [9003/23]
View answerAs noted, I have been invited to attend a conference on the cross-border economy organised by the Dundalk and Newry Chambers on 8 March. I look forward to having the opportunity to address the conference and highlight the work of my Department, both on a cross-border basis and in the North-East specifically.
In the context of growing and developing cross-border trade and business, it is important to note the work of the Dublin-Belfast Economic Corridor. The Government is supportive of this initiative and has set out in the National Planning Framework how it wants to build on the strengths of the Dublin-Belfast Economic Corridor to capitalise on the clear economic potential of the region.
Local stakeholders within the region, including the three Local Authorities, the enterprise agencies, Local Enterprise Offices, the Regional Skills Forum and the business community meet through the Steering Committee for the North-East Regional Enterprise Plan to 2024. On 2 February 2023, Louth County Council gave an update to the Committee on the Corridor. While the Corridor is not a specific action within the Plan, it is seen as key strength within the region.
In addition, IDA Ireland is continuing to market the region to potential investors leveraging infrastructure projects such as the M1 Dublin-Belfast Corridor, alongside the region's rich talent pool and strong track record for industry. I am confident that through the collaborative efforts from the local stakeholders and enterprise agencies, the region will remain competitive as a business and investment location.
Particularly due to its cross-border nature, I appreciate that businesses along the Corridor may be concerned about the impacts of Brexit.
Given the key strategic importance for Ireland of a strong economic relationship with the UK, the Irish Government has invested significant resources to support Irish traders and operators to manage the permanent change Brexit brought for them.
My Department has worked closely with its agencies to support business to adapt to the new trading environment. InterTradeIreland (ITI), the cross-border trade and business development body, has worked to help businesses navigate the post-Brexit trading environment and the difficulties faced. Its Brexit Advisory Service was a successful programme, with ITI making over 1,800 total approvals over the duration of the scheme, to a total value of more than €7 million.
ITI is currently developing a new Trade Information Service that will build on the success of its Advisory Service. ITI estimates that it will reach a wider audience of 44,000 cross-border traders. It is finalising the development of the scheme, which will have a soft launch in June of this year, followed by a formal launch in September.
Enterprise Ireland has also played an important role in supporting businesses in adapting to Brexit through its Post-Brexit Advisory Support and its Evolve Strategic Planning Grant.
The Irish Government, my Department and its officials will all continue to work closely with our agencies and relevant stakeholders to mitigate the challenges in this new trading environment and maximise opportunities. It is only by engaging with the businesses most affected that we can provide effective supports to ensure that Irish companies can continue to grow and prosper.
142. Deputy Alan Farrell asked the Minister for Enterprise, Trade and Employment his views on the stability of the technology sector in Ireland in 2023; and if he will make a statement on the matter. [8488/23]
View answerThe technology sector plays an important role in our economy and the sector has been building for over 40 years and will continue to strengthen its presence in Ireland despite present challenges.
Growth of the tech sector in recent years has been driven by increased digitalisation due to the uptake of new technologies as well as companies rapidly digitalising to increase their online services or enable employees to work remotely. However, a number of companies which develop and provide digitalisation technologies and services are now faced with revised revenue forecasts as a result of softening consumer demand, or the reduced availability or increased cost of finance.
Therefore, some technology companies are now looking to reduce costs in line with revised revenue forecasts and weakening company valuations and this recalibration is not unexpected. The focus of my Department and our agencies is on continued partnership with these companies to grow their presence in Ireland in the long run and deepen their impact in the Irish economy.
Ireland’s business environment has supported the success and the resilience of the tech sector in this country for decades. Our pro-business, flexible environment and the availability of suitable technical, managerial, and multilingual talent, enables technology companies to successfully invest and grow their businesses in Ireland.
Our broader research and development ecosystem supports companies to collaborate and seize new opportunities to scale their businesses using these emerging technologies. Emerging technology trends, such as data analytics, artificial intelligence and smart manufacturing, will also continue to create new opportunities.
Nevertheless, competition for inward investment is intense and Ireland will not lose focus on the key issue of competitiveness. The FDI sector is a key component of the Irish economy, and it is vital that Ireland continues to be an attractive investment destination for this sector.
The White Paper on Enterprise recently published by my Department sets the strategic direction for job-creation and growth for the years ahead. It takes account of the effects of the pandemic; changes in the international trading environment; vulnerabilities in our enterprise sector; and the need to integrate climate change commitments and the digital transition into enterprise policy over the decade ahead.
At Government level we are focused on competitiveness and ensuring that Ireland is the best place in Europe to invest and grow for the future. We are acting on energy, skills, housing, access to water services, and planning, all important issues for the success of the tech sector in Ireland.
143. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment if he will abolish sub-minimum rates of pay for young workers and ensure that all workers receive at least the national minimum wage; and if he will make a statement on the matter. [9250/23]
View answerThe Low Pay Commission (LPC) previously undertook a review of the sub-minima or ‘youth rates’ as part of its work programme and recommended, in 2017, abolishing the training rates and simplifying the youth rates by moving to age-related as opposed to experience-based rates. The LPC's recommendations were accepted by Government and were introduced as part of the Employment (Miscellaneous Provisions) Act 2018. The LPC commissioned research by the ESRI and consulted widely on this matter before making their recommendations.
Last year the then Minister for Enterprise, Trade and Employment requested the LPC to again examine the issues around retaining or removing the youth rates and to make recommendations on the subject. To inform its work, the LPC has asked the ESRI to conduct background research on this issue under the terms of the LPC-ESRI Research Partnership Agreement.
The LPC’s report and recommendations on sub-minimum rates are expected later this year.
While the issue of sub-minimum youth rates is being considered, the Government will continue to be guided by the recommendations of the LPC with regard to any future changes in the National Minimum Wage.
144. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment if he will meet with representatives of workers of a supermarket chain (details supplied) who have been employed there since before 1998 and who have faced numerous attacks on their status by the company, including the refusal by the company to award them pay rises given to other staff; if he can clarify the protections that are presently in place or are planned by his Department to stop employers like the aforementioned company from targeting senior staff in this way; and if he will make a statement on the matter. [9248/23]
View answerAt the outset, I must emphasise that Ireland’s system of industrial relations is essentially voluntary in nature and that responsibility for the resolution of industrial disputes between employers and workers rests in the first instance with the employer, the workers and their representatives.
I would encourage both sides to engage constructively with each other and to make every effort to reach resolution by agreement.
Where employer and employee representatives come together and agreement is reached to resolve their differences, it’s a win/win with buy in from both sides.
When a resolution cannot be reached at local level, I would encourage all sides to make every effort to reach a resolution by agreement between companies and workers with the help of the industrial relations machinery of the State.
While I have no direct role in these matters, I stand by the professionalism of the industrial relations machinery of the State who are always available to facilitate a solution where both parties are prepared to work with those institutions.
Statutory and contractual employment terms apply in relation to the payment of wages. Failure to pay all or part of the wages due to an employee is considered an unlawful deduction and a complaint can be made under the Payment of Wages Act, 1991. If an employee believes that their employer has made an unlawful deduction from their pay, or they are not being paid then they may refer a complaint to the Workplace Relations Commission (WRC). An employee may also contact the WRC Customer Service for information in relation to their employment rights.
145. Deputy Seán Haughey asked the Minister for Enterprise, Trade and Employment his plans to strengthen co-operatives in Ireland; and if he will make a statement on the matter. [8941/23]
View answerOn 9 November 2022, the Government approved the drafting of the Co-operative Societies Bill 2022. This represents the most far-reaching reform of the legislation regarding co-operative societies in almost 130 years. The general scheme which has been prepared provides for a specific legislative framework for co-operative societies for the first time, with societies registering under the legislation being required to adhere to the co-operative ethos. It consolidates and modernises existing provisions and introduces modern corporate governance, financial reporting and compliance requirements, thereby making co-operatives more attractive to investors.
Experience internationally suggests that the potential of co-operatives in Ireland has not been fully exploited and that there is scope for the co-operative model to play a greater role across a wider range of activities. The general scheme introduces a modern legal framework which will place the co-operative model on a more favourable and clear legal basis. It will create a level playing field with the situation applying to companies and encourage the consideration of the co-operative model as an attractive formation option for entrepreneurs and also for social and community activities. A modern legislative basis, including strong corporate governance requirements, will also provide confidence to stakeholders.
The legislation will introduce provisions to make it easier to set-up and operate a co-operative society – by reducing the minimum number of founding members (from seven to three); expanding the categories of founding members to include bodies corporate; providing for audit exemptions for smaller co-operatives; and providing for virtual and hybrid participation at general meetings. The legislation will also repeal the existing outdated provisions on raising funds which will make it easier to access various sources of finance.
In recognition of the significant diversity across the co-operative sector, the legislation seeks to provide as much flexibility as possible, thereby empowering co-operative societies to reflect in their rules what best suits their own particular circumstances.
Pre-legislative scrutiny of the general scheme by the Joint Oireachtas Committee on Enterprise, Trade and Employment commenced on 14 December 2022 and is ongoing. Given the size and complexity of the proposed legislation, I do not expect the drafting of the Bill to be completed before late 2023.
146. Deputy Rose Conway-Walsh asked the Minister for Enterprise, Trade and Employment the reasons for excluding domestically trading companies from direct financial assistance to facilitate expansion or growth activities in the White Paper on Enterprise 2022-2030; and if he will make a statement on the matter. [9274/23]
View answerThe White Paper recognises the important impact domestically trading companies have on our economy. Indeed, enabling locally trading sectors to thrive is one of the seven key enterprise objectives which will be prioritised by Government in the period to 2030.
Locally trading sectors account for a significant number of the total number of firms in Ireland and, notably, for a high proportion of employment. The White Paper highlights the critical role these firms play in placemaking, contributing to the economic and social fabric of towns and villages across Ireland.
The Local Enterprise Offices provide a range of direct interventions for domestically trading companies including various training and advisory programmes, as well as acting as a ‘first stop shop’ providing signposting for all firms to find out about resources and programmes available from government departments and agencies.
As part of the White Paper implementation, the LEO network will map and clearly communicate the broad range of government programmes and advisory services available for firms, including locally trading firms.
The LEOs will continue to enhance their advisory services for locally trading firms to improve productivity particularly around digitalisation and reducing energy and carbon emissions, which will have positive spillover effects on the wider economy. Additionally, the mandate of the LEOs has also been expanded to cover firms with over 10 and up to 50 employees, this will ensure additional training, consultancy, and mentoring services will be made available to more locally trading business.
In line with the priorities identified in the White Paper, the LEOs will also pilot opportunities to subsidise implementation costs for digitalisation and green initiatives that assist this cohort of firms to engage in the twin transition.
There are challenges to providing direct grant support to domestically trading firms including, avoiding excessive displacement and funding activity that would have taken place anyway, particularly given limited public resources.
Another challenge is to avoid raising barriers to entry for entrepreneurs and new firms by supporting incumbents, thereby reducing competition and innovation for consumers.
All firms will however benefit from the Government’s commitment to addressing a range of cross-cutting competitiveness issues related to infrastructural investment, taxation, regulation and talent. Enhancing our performance across these horizontal issues will deliver benefits to firms in all sectors, including domestically trading companies.
147. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 123 of 13 December 2022, if he will provide a status update on his Department's engagement with the Department of Foreign Affairs with a view to developing a new action plan on business and human rights and to advancing effective action in this area; and if he will make a statement on the matter. [9166/23]
View answerAs the Deputy will be aware, Ireland's first National Plan on Business and Human Rights was launched by the Department of Foreign Affairs towards the end of 2017. The implementation of this whole-of-Government plan was overseen by a multi-stakeholder implementation group comprised of representatives of Government, civil society and business, including from my own Department.
Both the plan itself and the Programme for Government committed to a review of implementation of the Plan, and this was undertaken by the Department of Foreign Affairs in 2021. As part of that process, the draft report was considered at a special session of the implementation group. The Government noted the finalised review at its meeting on 3 December 2021, and it is available on the Department of Foreign Affairs website.
Discussions have commenced about how to bring forward a new plan, but a date has yet to be set for its completion and publication. Officials in my Department will continue to engage with colleagues in the Department of Foreign Affairs to provide necessary input into a new plan.
148. Deputy Robert Troy asked the Minister for Enterprise, Trade and Employment when the new regional enterprise development fund will be open to applications; and if he will make a statement on the matter. [8883/23]
View answerThe Deputy will be aware that my Department has secured up to €145m to 2027 from the European Regional Development Fund to support projects coming from the Regional Enterprise Plans.
My officials are working with Enterprise Ireland, who will administer the Scheme on behalf of my Department, on developing the scheme and eligibility criteria and securing the required approvals from the Regional Assemblies, who are the Managing Authorities of the ERDF, the European Commission and the Department of Public Expenditure and Reform.
I can assure the Deputy that I will announce the first call in the coming months.
149. Deputy Brian Leddin asked the Minister for Enterprise, Trade and Employment his plans to expand the regional business innovation centres to include the Midwest region; and if he will make a statement on the matter. [9221/23]
View answerThe regional business innovation centres (BICs) which are part-funded through Enterprise Ireland, provide tailored, high level supports to entrepreneurs to convert their innovative ideas into a commercial reality and are helping start-up enterprises to become investor ready. I understand that the Cork BIC services both the South and Mid-West regions including the Halo Business Angel Network for those regions.
Additional funding has been provided, however, for the BICs through the Budget 2023 process for expanding and enhancing their regional activities including to support strategic targeted measures in Counties which are not currently fully serviced by the BICs.
