Written Answers Nos. 169-183
169. Deputy Joe Carey asked the Minister for Enterprise, Trade and Employment when the Employment Regulation Order in relation to security workers (details supplied) will be implemented; and if he will make a statement on the matter. [23323/24]
View answerOn 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 (ERO) for the Security Industry. As a result of the injunction, the Order could not be proceeded with at that time. On 28 July 2023, both the injunction and stay were lifted in the High Court on agreement between the parties. As a result of the decision, the Minister was then able to sign the Order.
On the 25th August 2023, the then Minister for Business Employment and Retail signed the Employment Regulation Order (ERO) for the Security Sector which came into force on 4th September 2023. The ERO provided for a wage increase to €12.90 per hour from that date. The full details of the ERO are available here: si-no-424-of-2023-employment-regulation-order-security-industry-joint-labour-committee-2023.pdf (enterprise.gov.ie)
EROs are not linked to the minimum wage. Should the minimum wage rate exceed the wage rate provided for in an ERO, then the minimum wage rate is in effect.
Joint Labour Committees (JLCs) are independent in their functions. If a JLC adopts proposals for an ERO for a sector, it will submit them to the Labour Court for consideration. The Labour Court will then make a decision on the adoption of the proposals. If the Court decides to adopt the proposals, a copy will be presented to me and, if I consider it appropriate to do so, I will make an ERO giving effect to the proposals.
I have not received a proposal from the Labour Court in relation to a new ERO for the Security Sector. Should the Labour Court submit such a proposal, I will give it due and timely consideration.
170. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment the status of plans to bring forward a new Employment Regulation Order for security officers in 2024, in light of the ongoing low wages for these workers; if he has received a proposal from the Labour Court in relation to a new ERO; and if he will make a statement on the matter. [23325/24]
View answerOn the 25th August 2023, the then Minister for Business Employment and Retail signed the Employment Regulation Order (ERO) for the Security Sector which came into force on 4th September 2023. The ERO provided for a wage increase to €12.90 per hour from that date. The full details of the ERO are available here: si-no-424-of-2023-employment-regulation-order-security-industry-joint-labour-committee-2023.pdf (enterprise.gov.ie)
Joint Labour Committees (JLCs) are independent in their functions. If a JLC adopts proposals for an ERO for a sector, it will submit them to the Labour Court for consideration. The Labour Court will then make a decision on the adoption of the proposals. If the Court decides to adopt the proposals, a copy will be presented to me and, if I consider it appropriate to do so, I will make an ERO giving effect to the proposals.
I have not received a proposal from the Labour Court in relation to a new ERO for the Security Sector. Should the Labour Court submit such a proposal, I will give it due and timely consideration.
171. Deputy Pádraig O'Sullivan asked the Minister for Enterprise, Trade and Employment if his Department has examined the provision of statutory bereavement leave; if so, the estimated the costs associated with this; and if he will make a statement on the matter. [18136/24]
View answerThere is presently no general statutory entitlement in Ireland for workers for bereavement leave. An employee's entitlement to take time off in such circumstances depends on whether any such provisions exist in the employee’s contract of employment. For the majority of workers, conditions of employment, including bereavement leave provisions, are matters for negotiation between employers and employees.
In the absence of any such provisions in an employment contract, bereavement leave is normally granted at the discretion of the employer.
Ireland has a robust suite of employment rights legislation in place to protect employees, which is kept under ongoing review. There are no plans at present within my Department to introduce a statutory entitlement to Bereavement Leave. The introduction of any statutory leave requires careful and specific consideration of the subsequent impact on employment structures, costs and any potential equality issues which may arise.
More generally, it is evident that over the past two years the Government has been highly proactive in enhancing employment rights, offering additional protection, and creating better employment conditions for workers. These measures represent this Government's commitment to a fairer and more transparent workplace.
172. Deputy John Lahart asked the Minister for Enterprise, Trade and Employment the Government's position on measures in relation to the new EU Directive on the minimum wage, which unions regard as critical (details supplied). [23409/24]
View answerThe Government fully supports the right of any worker to join and be active in their trade union. Employees have the right under the Constitution to form associations and trade unions. Under Irish legislation, an employee cannot be discriminated against or dismissed because they are a member of a trade union.
The Unfair Dismissal Acts provide for a number of grounds under which a dismissal may be considered unfair, including membership or proposed membership of a trade union or engaging in trade union activities, whether within permitted times during work or outside of working hours. Where an employee has been unfairly dismissed, an adjudication officer and, on appeal, the Labour Court may make an order for the reinstatement, re-engagement or awarding of compensation to the employee.
The Workplace Relations Commission’s Code of Practice on Victimisation refers to victimisation arising from an employee’s membership or non-membership, activity or non-activity on behalf of a trade union. It applies to situations where there are no negotiating arrangements and where collective bargaining has not taken place. A complaint under the Code may be made to the Workplace Relations Commission.
Any further changes to industrial relations laws governing trade union organisation in the workplace will take place in the context of the implementation of the LEEF High-Level Working Group Report on Collective Bargaining and Ireland’s implementation of the collective bargaining elements of the EU Directive on Adequate Minimum Wages.
The EU Directive on Adequate Minimum Wages includes two key areas: Minimum Wages, and Collective Bargaining. The Directive requires Ireland to develop an action plan to enhance collective bargaining coverage by the end of 2025.
The Directive must be transposed into Irish law by 15th November 2024. My Department has received legal advice on the minimum wage elements of the Directive that Ireland’s current minimum wage setting framework, namely the Low Pay Commission, is largely already in compliance with the provisions of the Directive. My Department has also requested legal advice as to whether any legislative change is required in order to transpose Article 4 on collective bargaining.
A technical working group has been established with the social partners to progress Ireland’s implementation of the Directive in relation to collective bargaining and the development of the action plan. This group will examine both legislative and administrative proposals for inclusion in the action plan.
173. Deputy Carol Nolan asked the Minister for Enterprise, Trade and Employment the total costs incurred by his Department from 2019 to date relating to the placing of advertisements in online/digital media platforms; the names of the online platforms involved, in tabular form; and if he will make a statement on the matter. [23443/24]
View answerThe total advertising spend in online/ digital media platforms by my Department for the years 2019 to date is €306,648.36.
Details of this spend are set out in the table below.
These include expenditure on advertising campaigns such as: “3 Steps to Brexit”, National Minimum Wage, “Making Remote Work”, the Small Company Administrative Rescue Process (SCARP), Business Users Support Scheme for Kerosene (BUSSK) and nine Building Better Business events nationwide.
|
Year |
Online/ Digital Media Platform |
Total Spend |
|
2019 |
NIL |
|
|
Total |
€0.00 |
|
|
2020 |
|
€4,204.75 |
|
|
€4,204.75 |
|
|
|
€867.88 |
|
|
|
€723.31 |
|
|
Total |
€10,000.69 |
|
|
2021 |
|
€12,559.95 |
|
|
€8,143.45 |
|
|
|
€17,185.31 |
|
|
|
€14,680.71 |
|
|
Tuairisc.ie |
€1,512.90 |
|
|
Total |
€54,082.31 |
|
|
2022 |
|
€35,288.44 |
|
|
€30,425.04 |
|
|
|
€40,498.32 |
|
|
|
€40,498.32 |
|
|
Tuairisc.ie |
€2,952.00 |
|
|
Total |
€149,662.12 |
|
|
2023 |
|
€15,174.07 |
|
|
€14,530.72 |
|
|
|
€21,503.51 |
|
|
|
€21,503.51 |
|
|
Programmatic ads |
€5,083.60 |
|
|
Public Appointment Service |
€1,236.15 |
|
|
Tuairisc.ie |
€5,596.50 |
|
|
Total |
€84,628.05 |
|
|
2024 (to date) |
|
€1,475.13 |
|
|
€6,800.06 |
|
|
Total |
€8,275.19 |
174. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which the services and manufacturing services have improved and recovered, given the existence of the pandemic; and if he will make a statement on the matter. [23497/24]
View answerMy Department continues to monitor challenges to the manufacturing and services sectors of the economy. Despite the economic challenges posed by the pandemic, the services and manufacturing sectors have proved resilient, along with the Irish economy at large. With an unemployment rate of 4.4% in April, the Irish economy is operating at a level close to full employment. The risks to employment will depend on the risks to the economy, more broadly. Real GDP growth is projected to be 2.6% in 2024 and 3.9% in 2025, according to forecasts in the Stability Programme Update (SPU) 2024. The SPU also notes that the economy has likely passed it’s cyclical peak, with the growth rate expected to moderate over the medium term. As a small open economy, we must be vigilant of the risks that external factors pose, such as geopolitical events or a general worsening in global economic conditions.
Manufacturing is a critically important sector of the Irish economy, with clusters of world class manufacturing operations in areas such as biopharmaceuticals, engineering, medical technology, building materials, and food production. He latest Labour Force Survey data shows that there are 320,400 people employed in the industry sector as of Q4 2023, a substantial increase over the 288,300 people employed in the sector in Q4 2019, just before the start of the pandemic.
In terms of Gross Value Added, the rate of annual growth in the industry sector stands at 9.4% for Q4 2023, a decline from the 31% year-on-year growth for Q3 2023 but equal to pre-pandemic levels of 9.4% in Q4 of 2019. In the manufacturing sector specifically, the most recent data available demonstrates the sector added over €192 million in gross value in 2022, an over 70% increase from 2019 when the sector added €112 million in gross value.
Recent CSO data on industrial production and turnover in manufacturing industries shows growth for 2023 relative to 2019 (the pre pandemic baseline) of 64% and 43%.
The services sector – the largest sector by employment in Ireland – employs over 2.1 million people as of Q4 2023. This is substantially higher than pre-pandemic levels, with 1.8 million people employed in Q4 2019. In the wholesale and retail trade and accommodation and food service sub-sectors, employment levels have increased from 311,500 and 180,800 people in Q4 2019 to 343,800 and 183,100 people respectively. Administrative and support service activities have seen a decline in employment levels over the same period, going from 112,100 people employed to 106,500. In terms of yearly gross value-added growth, the wholesale and retail sector grew 2.1% year-on-year in Q4 of 2023, down from 7% in Q4 of 2019. The accommodation and food beverage sector added 2.2% in year-on-year gross value-added growth, a substantial increase from Q4 2019 when gross value added declined 12.8% year-on-year. Administrative and support service activities experienced a yearly gross value-added decrease in Q4 of 2023 of 7.3%, in Q4 of 2019 the same sector added 5.3% in gross value added.
My Department continues to monitor developments and risks in sectoral economic activity, while pursuing pro-enterprise and pro-competitive policies. Published in December 2022, the White Paper on Enterprise 2022-2030 sets out Ireland`s industrial policy for the medium- to long-term, building on Ireland's strengths of an open economy with strong trade and foreign direct investment, a vibrant innovation hub, and a resilient labour market. This review of Enterprise Policy was motivated by an awareness of a changing enterprise landscape posing new challenges, including shifting patterns of globalisation driven by geopolitical change, disruptive technological innovation, and lagging productivity in parts of the indigenous sector of the economy.
175. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which the job retention and creation effort continues to be made in the manufacturing sector throughout Ireland and in County Kildare; and if he will make a statement on the matter. [23499/24]
View answerThe Irish manufacturing sector, both FDI and Irish-owned, has performed strongly in recent years and has successfully weathered several shocks in recent years, including Brexit, Covid and the disruption caused by Russia’s invasion of Ukraine.
According to the most recent employment figures from the CSO’s Labour Force Survey, total employment in industry- including manufacturing industry- across the country stood at 320,400 people in the fourth quarter of 2023. This represents an increase of 11%, or an additional 32,500 jobs, compared to the same period in 2019, when total employment in industry stood at 290,000.
Census 2022 provides more detailed information on employment in manufacturing industry in particular, and shows that in 2022, there were 242,857 people working in manufacturing in Ireland, representing a gain of 41,542 jobs since 2016, an increase of 21%. The Census also shows that this national pattern of manufacturing job growth is fully reflected in Mid-East region, including County Kildare, which saw the number of manufacturing jobs increase by 5,288 from 27,624 in 2016 to 32,912 in 2022, an increase of 19%.
These figures demonstrate not only the resilience of our enterprise sector but also the success of Government policies aimed at creating an attractive environment for both indigenous enterprise and foreign direct investment and enhancing the availability of talent to employers.
Agencies under the auspices of my Department are playing a vital role in developing this attractive business environment and strong value proposition which enables global and local companies- including those engaged in manufacturing, to invest and expand successfully in all parts of Ireland.
For example, FDI performance in the Mid-East region has been consistent over the past five years with employment among IDA clients increasing by 14%. The Mid-East has a significant ecosystem of well-established companies across Technology, Life Sciences, International Financial Services and Engineering & Industrial Technologies.
Enterprise Ireland meanwhile made payments of €4,317,913 to client companies in County Kildare in 2023, and an additional €235,785 towards infrastructural investments. This investment has coincided with employment growth of 1.3% during 2023 for Enterprise Ireland supported companies in the county, with 555 jobs created. Total employment among Enterprise Ireland’s 158 supported clients stood at 9,315 in County Kildare in 2023.
Enterprise Ireland is committed to supporting job retention and creation in the manufacturing sector throughout Ireland, including County Kildare, and Enterprise Ireland continues to work towards enhancing the significant contribution to growing and maintaining quality jobs in every region and county in Ireland with a focus on innovation, digitalisation, sustainability, and regional development.
IDA and Enterprise Ireland announcements in Kildare over last two years include:
• Intel Ireland, Sep 2023: Intel’s Fab 34 officially opened at their Leixlip campus as they begin deploying the first at scale production using Intel 4 technology, and Intel’s first use of extreme ultraviolet technology in Europe. This Leixlip facility will lead to a doubling of Intel’s manufacturing space in Ireland, resulting in 1,600 Jobs created in Leixlip.
• Diageo, July 2022: The first purpose-built carbon neutral brewery, representing a €200 million investment creating 50 jobs in Newbridge.
• KDP June 2022: Keurig Dr Pepper’s celebrated the opening of its International Operations Hub in Newbridge which created 20 new jobs, bringing to 100 the total on site.
• MGS Manufacturing Group, April 2022: Global provider of healthcare manufacturing solutions MGS committed €7m investment with 20,000ft expansion of plant located on Kildare Innovation Campus, creating 100 Jobs in Leixlip
If this momentum is to be maintained, it will be essential too that Irish enterprise continues to have access to a pool of high-quality, adaptable and flexible talent. To meet the high demand for skills, including manufacturing skills, and to continue increasing participation in employment, there is close collaboration across Government, in particular between the Department of Social Protection, the Department of Further and Higher Education, Research, Innovation and Science, its agencies and my own Department, as well as between Government, industry, and the education and training system more broadly, in order to continue building this highly skilled and inclusive workforce.
My Department, and the Government as a whole, is committed to investing in the development of this talented workforce and broader competitive business environment which has led to Ireland’s record levels of employment and jobs growth across all sectors and regions in recent years.
176. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which Irish-manufactured products continue to compete on world markets; and if he will make a statement on the matter. [23500/24]
View answerMy Department does not collect statistics in relation to Irish manufactured goods, trade statistics are compiled by the Central Statistics Office.
The 2023 Goods Exports figures from the Central Statistics Office (CSO), while showing a decrease on the record levels achieved in 2022, nonetheless demonstrate a strong performance by exporters from Ireland in the face of the ongoing disruption to global supply chains and geopolitical tensions.
Goods manufactured in Ireland cover a large range of products, with Organic Chemicals and Medical and Pharmaceutical Products making up over half of Ireland's exported goods.
Much of the decline in 2023 was due to a fall in exports of Organic Chemicals and Medical and Pharmaceutical Products, exports of which were boosted in recent years by COVID-19 vaccines and had been particularly strong in 2022. A decline was also seen in exports of electronic integrated circuits, reflecting cyclical developments in the semiconductor sector.
The CSO has reported unadjusted goods exports were €53.2 billion in Quarter 1 (Q1) 2024, an increase of €2.3 billion when compared with the same period last year. Ireland’s export performance has been consistently strong for many years and this has continued into 2024.
The National Competitive and Productivity Council published in 2023 a Competitiveness Bulletin summarising Ireland's performance in the latest Institute for Management Development (IMD) World Competitiveness Yearbook. This annual assessment that benchmarks the performance of economies based on more than 330 criteria measuring different facets of competitiveness. It ranks Ireland the most competitive country in the euro area and the 2nd most competitive economy in the world (out of 64 economies) an improvement from 11th position in 2022.
Ireland’s position in the rankings reflects steady progress across specific sub-factors over a number of years – such as under ‘Government Efficiency’, alongside strong economic results which have boosted its ranking under ‘Economic Performance’. The IMD note that the top four economies are small, advanced economies, such as Ireland which make good use of their access to markets and trading partners.
177. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he and his Department continue to ensure an even spread of job creation investment throughout the country, with a view to ensuring the availability of an increasing number of job opportunities in those areas previously not experiencing this, with consequent benefits in respect of road transport, traffic congestion and journeys to work; and if he will make a statement on the matter. [23501/24]
View answerRegional enterprise development and sustainable local job creation is a policy priority for me and this Government.
The Government’s efforts to create sustainable enterprise in the regions is working, as can be seen by the latest Enterprise Ireland, IDA Ireland and Local Enterprise Office figures.
Enterprise Ireland’s strategy fully aligns with Government's ambition to bring job opportunities and growth to all parts of Ireland increasing total employment to a record high of 2.5 million by 2024 with an ambitious target of creating 45,000 jobs over the next three years and increasing exports by Enterprise Ireland client companies to €30 billion.
Irish export-focused companies are continuing to create quality employment across Ireland, despite a challenging business environment. Employment in companies supported by Enterprise Ireland is now at its highest ever level at over 225,000 people, with over two thirds of the new jobs outside the Dublin region. Eight out of nine regions recorded net jobs growth, with the West region (+5%), the North-East region (+5%) and the North-West region (+4%) performing particularly strongly.
The IDA Ireland figures at the end of 2023 showed there were 132 investments secured across regional locations during 2023, representing 54% of the overall figure. The total number of regional jobs now stands at 163,471.
2023 represented the ninth year of consecutive growth for the Local Enterprise Offices (LEOs) with 6,640 new jobs created by LEO clients in 2023. The LEOs now support over 7,100 companies financially within their portfolio with 38,726 associated jobs. The LEOs received €9 million additional funding in budget 2024 which has contributed to providing additional capacity for grant approval, training and development programmes and is allowing the LEOs to extend financial supports to businesses with up to 50 employees, who have ambition to begin exporting.
The LEO Policy Statement, which I am launching at the National Enterprise Awards this evening, 23 May, calls out the central role that the LEOs play for small businesses across every community in Ireland and sets out how the LEO network can help small businesses to deal with new challenges – going digital, reducing their carbon footprint, finding new markets, and innovating now and into the future.
The Town Centre First (TCF) Policy is a major cross-government policy that aims to tackle vacancy, combat dereliction and breathe new life into our town centres. It advocates for a holistic, place-based approach to sustainable rural development. Irish towns are facing significant challenges and opportunities that require a coordinated and comprehensive response. TCF recognises that every town is unique and the policy will facilitate the response by towns of all sizes across the country so that their centres can function as the sustainable and vibrant heart of the communities they serve, in ways that are adaptable and appropriate to 21st century needs. It contains 33 actions which will give towns the tools and resources they need to become more viable and attractive places in which to live, work, socialise and run a business. This will focus on charting the future direction of their towns, address issues of vacancy and dereliction and add vibrancy to the town centre.
The increase in home-working during and after the COVID-19 pandemic brought remote working to the forefront of working life, with remote and hybrid working from homes and hubs having since become an established reality for many, allowing people to live and work in their local regions in ways not previously possible. To facilitate this shift, the Work Life Balance and Miscellaneous Provisions Act 2023 was enacted on 4 April 2023. On 6 March 2024, Part 3 of the Act was commenced, which provides all employees with the right to request remote working arrangements. Along with this legislation, the Government has implemented all 15 actions outlined in the National Remote Work Strategy which aims to ensure that remote working becomes an established part of working life in Ireland in a way which maximises its economic, social and environmental benefits.
This increase in remote working, along with greater numbers of people working in and from their local towns and villages, will also contribute to an overall reduction in road congestion. It will thereby help us to reach our climate goals and will reduce commuting times to an individual’s place of work for those commuting.
Overseen by my Department, the Regional Enterprise Plans have been developed by regional stakeholders and identify growth opportunities, recognise vulnerabilities, and enable job creation across the regions.
The Government, through Enterprise Ireland, has provided funding to assist enterprise development and regional jobs growth across all regions. For example, my Department’s Regional Enterprise Development Fund, Border Enterprise Development Fund, and Regional Enterprise Transition Scheme has approved over €126 million across 79 enterprise strengthening projects in every region over a series of competitive calls since 2017. These funds enable significant collaborative and innovative regional projects to provide a timely impetus to job creation in regional locations.? As the Deputy will be aware, my Department has secured up to €145 million for the Smart Regions Enterprise Innovation Scheme to support projects aligned to the REPs.
The first call of €35 million under the new scheme, which is co-funded under the European Regional Development Fund, is open on the Enterprise Ireland website. I hope to announce successful projects under this first call in the coming months. I expect that there will be up to four calls under this fund over the coming years which will provide multi-annual funding for the Regional Enterprise Plans.
178. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which the level of investment in jobs here continues to keep pace with other jurisdictions; and if he will make a statement on the matter. [23502/24]
View answerLast February, my Department published the Annual Employment Survey 2023, an annual survey which provides an analysis of employment levels in industrial (including primary production) and services companies under the remit of IDA Ireland, Enterprise Ireland and Údarás na Gaeltachta. In that regard, the 2023 survey found that jobs in client companies of Government enterprise development agencies are now at their highest ever level, at over 535,604 jobs. This represented a 0.8% increase on 2022 figures.
My Department also co-ordinates the Annual Business Survey of Economic Impact (ABSEI) of the client companies of the enterprise development agencies, and the ABSEI 2022 report, published in February 2024, showed the level of direct expenditure in the Irish economy by foreign-owned agency client companies was €38.1 billion and €35.9 billion for Irish-owned agency client companies. These figures attest to Ireland’s strong platform for continuing economic growth.
Expenditure within the economy by FDI companies increased during 2022 despite the prevailing challenging conditions. Payroll was up 12% to €22.1bn, Irish services and materials spend increased by 15.7% to €13.8bn, and capital expenditure was up 49% to €15.5bn. Exports of €383.1bn represented an increase of 11.2% year-on-year.
FDI has experienced a decade of record growth based on successful targeting of a diverse but discrete range of sectors. Given the consistent growth of these sectors over the medium-term, they have, overtime, become the subject of ever more intense competition as countries seek to leverage FDI to drive economic recovery and growth.
There are now almost 1,800 client operations in IDA’s portfolio of MNCs who have chosen Ireland as a place to grow and succeed, with one-third of client operations in Ireland for 20 years or more. IDA Ireland continues to work with its client companies to support their drive for competitiveness.
Transformation focused on research development and innovation, sustainability, digitalisation and talent development is critical to remaining competitive, reflected in IDA’s partnerships and conversations with client companies and stakeholders.
For decades, Ireland’s talent base has made the country a prime destination for many of the world’s top companies. Today, around 55% of people aged 25 to 34 in Ireland hold a third-level degree compared to a 40% EU average. In addition to its highly educated and skilled workforce, Ireland offers access to the larger – some 250 million strong - EU workforce. This is reflected in the strong job creation results reported by the agencies.
In particular, Ireland has developed a reputation for excellence in sectors like Pharma, Med Tech, Technology and Financial Services with many of the top global companies in these fields located and operating very successfully here, many with considerable longevity.
The fundamentals of what investors are looking for in seeking to internationalise haven’t changed and are unlikely to change. They look for stability, consistency, and a talented workforce. Ireland offers that and our value proposition remains strong, albeit there are domestic carrying capacity challenges that we must work on as set out in the Government's White Paper on Enterprise and the attendant biennial Implementation Plans. Through White Paper implementation, Ireland will be best positioned to keep pace with our competitors chasing FDI, with recent international reports noting that for a variety of reasons there is currently a reduction in the amount of FDI globally.
179. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which assistances towards small- and medium-sized enterprises here continues to equate with those available in other EU and non-EU jurisdictions; and if he will make a statement on the matter. [23503/24]
View answerIn Ireland, the support for small and medium-sized enterprises (SMEs) has been robust and multifaceted, reflecting the government's recognition of their critical role in the economy. Recently, the Government agreed on a range of measures aimed at reducing costs for SMEs, including reopening the Increased Cost of Business (ICOB) Scheme, introducing a second payment for businesses in the retail and hospitality sectors, and increasing the lending limit for Microfinance Ireland loans. These initiatives are designed to bolster the resilience and growth of SMEs in a challenging economic landscape.
My Department participates in a number of fora at EU and international level that facilitate the sharing of information on SME policies and programmes with other jurisdictions. Comparatively, within the EU, there is a concerted effort to harmonise support for SMEs to foster a competitive and innovative internal market. The EU definition of SMEs facilitates a unified approach to providing assistance, ensuring that enterprises across Member States can access similar opportunities for funding, market expansion, and innovation support. Ireland, aligning with EU policies, contributes to a cohesive framework that benefits Irish SMEs in the broader European context.
At EU level, my Department is an active participant in the EU SME Envoy Network, which is an SME policy advisory group that promotes SME-friendly regulation and policy making in all EU countries. The European Commission “Annual Report on European SMEs 2022/23” noted that “concerning SME value added in 2022, eight Member States (MT, DK, ES, SI, PT, IE, LU, BE) managed to experience actual growth”. This clearly demonstrates the effectiveness of the assistance towards small businesses in Ireland in direct comparison to other EU Member States.
Outside the EU, support measures for SMEs can vary significantly, with some jurisdictions offering more generous incentives, while others may have more stringent criteria for assistance. For instance, non-EU countries might not adhere to the same SME definitions or support frameworks established by the EU, leading to disparities in the level of assistance provided. However, Irish SMEs benefit from the stability and consistency of support within the EU framework, which is designed to be competitive on a global scale.
Ireland also participates in the OECD Committee on SMEs and Entrepreneurs, which is a valuable resource of data analysis and peer-learning among OECD member countries. OECD reports such as “Financing SMEs and Entrepreneurs 2024 An OECD Scoreboard” and “OECD SME and Entrepreneurship Outlook 2023”, show that Ireland continues to compare favourably to international peers.
The recommendations of a comprehensive OECD report on SME & Entrepreneurship Policy in Ireland directly informed the development of the SME and Entrepreneurship Growth Plan, the implementation of which is currently being led by my Department. The Taskforce prepares an annual report to Government on the implementation of priority actions originally arising from the Growth Plan. The Taskforce has identified the following eight priorities for action in 2024: Access to Finance (including funding and insurance), Digital Transformation, Increasing first time exporters & Enhanced assistance for high-potential businesses, SME Management Skills, Reducing the regulatory burden for SMEs & Cost of doing business, Delivery of the National Enterprise Hub, Ireland’s climate ambitions, Inclusive entrepreneurship.
Furthermore, Ireland is a member of the Small Advanced Economies Initiative, which is a network consisting of seven economies of a comparable size and structure. The initiative provides a forum for senior policymakers to share experiences and discuss issues of mutual concern.
While there are differences in the extent and nature of support for SMEs across various jurisdictions, Ireland's commitment to its SME sector remains strong and is in line with EU standards. The continuous evolution of support measures, both within Ireland and in the EU, aims to ensure that SMEs have the resources they need to thrive in an increasingly interconnected and competitive global economy.
180. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which the concept of working from home or via digital hubs is being progressed, with a view to ensuring the optimum results for employer, employee and the taxpayer; the extent of recent progress in this area; the extent to which the need for flexibility can be recognised by all parties within working from home arrangement; and if he will make a statement on the matter. [23504/24]
View answerThe concept of working from home or via digital hubs has progressed across a number of fronts.
The right to request remote working is now available to all employees under the Work Life Balance and Miscellaneous Provisions Act 2023. These provisions were commenced on the 6th of March 2024 and this right is now in operation.
The Act includes obligations for the employee and the employer with regard to requests for remote working arrangements, including details on how the request shall be made by the employee and details regarding how the employer must consider and respond to the request.
Under the Act, employers and employees are obliged to have regard to a Code of Practice when considering applications for remote working arrangements. Employees will be able to refer a dispute to the Workplace Relations Commission (WRC) where an employer fails to fulfil their obligations under the Act and the Code will be admissible in evidence in proceedings before a court, the Labour Court or the WRC.
Additionally, the Remote Working Strategy, which was published in 2021, included a key action to map and invest in a network of remote working hubs across Ireland .
The launch of Ireland’s National Hub Network, and the ConnectedHubs.ie platform, in May 2021, is underpinned by ongoing investment of over €150 million in Ireland's remote working and hub infrastructure from a variety of funding streams managed by the Department of Rural and Community Development (DRCD) and my Department.
There are currently over 300 facilities across the country on-boarded to the online platform and the network will ultimately connect over 400 hubs and remote co working spaces throughout the country.
Furthermore, my Department and the Department of Rural and Community Development are working together to develop the first National Hub Strategy, in consultation with hub managers, communities, local authorities and other stakeholders. Both Departments continue to engage with the County and City Management Association (CCMA) and the Local Government Management Agency (LGMA) on the strategy, which is expected to be brought to Government this year.
181. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he and his Department continue to liaise with the educational sector in order to ensure the ready supply of suitably qualified employees for a competitive workplace; and if he will make a statement on the matter. [23505/24]
View answerIt is essential that Irish enterprise has access to high quality, adaptable and flexible talent. In order to meet this demand, my Department and its enterprise agencies work closely with the Department of Further and Higher Education, Research, Innovation and Science, as well as the wider education and training system, with a view to building and retaining a highly skilled indigenous workforce to serve the needs of the economy.
My Department and its enterprise agencies actively participate in Ireland’s responsive National Skills Architecture, which aims to ensure that education and training provision is optimally aligned with identified skills needs across the enterprise base. This architecture is overseen by the Department of Further and Higher Education, Research, Innovation and Science.
My Department hosts the Secretariat to the Expert Group on Future Skills Needs (EGFSN), the independent group which advises the Government on the current and future skills needs of Ireland’s economy, and whose members include relevant Government Departments, the enterprise development agencies, Ireland’s agencies for Higher Education and Further Education and Training, and representation from the trade union and business communities. The EGFSN forms a key part of this responsive skills architecture.
Through its horizon scanning and thematic studies at sectoral and occupational level, the development of which involves comprehensive engagement with stakeholders across the public sector, enterprise and the education and training system, the work of the EGFSN- together with the labour market intelligence of the Skills and Labour Market Research Unit in SOLAS- helps inform the work of the National Skills Council, which is comprised of the chief skills policy stakeholders from across the public and private sectors.
The work of the Council is also informed by the activities of the network of nine Regional Skills Fora, which work to address the skills needs of regional enterprise by enhancing linkages and engagement between local education and training providers and employers, and by helping employers better understand and access the full range of services available across the education and training system. Enterprise Ireland, IDA Ireland and the relevant Local Enterprise Offices are represented on each of the nine Fora.
The Fora in particular have facilitated Enterprise Ireland’s Spotlight on Skills workshops, a partnership with the Irish Management Institute, which continue to support employers in understanding and planning for the skills needs of their enterprises, and through subsequent engagement with the Regional Skills Manager, address these needs through local education and training providers. Enterprise Ireland and IDA Ireland also engage on an ongoing basis with education and training providers on behalf of their client companies, and have worked to develop bespoke provision to meet emerging skills needs, in particular through new Apprenticeship and Skillnet Ireland programmes.
182. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the countries whence he sees the greatest competition for Ireland over the next five years in respect of the manufacturing and services sectors; and if he will make a statement on the matter. [23506/24]
View answerTogether, the manufacturing and services sectors comprise the vast majority of economic activity in Ireland. In a modern, interconnected global economy Irish firms are competing with firms worldwide. Technological advances have sharpened this competition over time, particularly for those firms operating in the field of internationally-tradeable services. Current patterns of geopolitical tension and the shortening of global value chains will likely complicate these matters and there is uncertainty as to how these will play out over the medium to long-term.
Enterprise Ireland (EI), the state agency responsible for supporting the development of manufacturing and internationally traded services companies, acknowledges that the global landscape for the manufacturing and services sectors is highly dynamic and subject to evolving market conditions. While it is difficult to predict the greatest competition for Ireland in the next five years, several factors influence competitiveness in these sectors. It is important to note that competition can arise from unexpected sources as global dynamics and economic conditions evolve.
EI works closely with Irish businesses to identify market opportunities, enhance competitiveness, and develop strategic advantages in various sectors. Furthermore, EI provide support through market research, business development initiatives, innovation programs, and international networking opportunities, helping Irish companies navigate global competition effectively.
The Institute for Management Development (IMD) publishes its World Competitiveness Yearbook rankings on a yearly basis. The most recent edition was published in 2023. The IMD Competitiveness Yearbook assesses and ranks 64 economies around the world based on their ability to create and maintain a competitive business environment. The rankings are based on more than 336 indicators grouped across four pillars: Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure.
The most recent report ranks Ireland as the most competitive country in the Euro Area and the 2nd most competitive country in the world. This is an improvement from 11th position in 2022. Ireland’s performance reflects steady progress across specific sub-factors over a number of years, such as ‘Government Efficiency’, alongside strong economic results which have boosted its ranking under ‘Economic Performance’.
In their assessment, the IMD note that the top four countries are small, advanced economies which make good use of their access to markets and trading partners. Ireland places second to Denmark, with Switzerland, Singapore and the Netherlands rounding out the rest of the top five.
In May of 2023, the National Competitiveness and Productivity Council (NCPC) published Ireland’s Competitiveness Scorecard 2023 which benchmarks the competitiveness of Ireland’s economy against international peer countries. The Scorecard gathers a wide range of indicators on Ireland’s relative strengths and weaknesses, that influence our competitiveness position, and flags areas that are negatively impacting on competitiveness and where Ireland’s relative position is not keeping pace with its competitors.
The data in the Scorecard show that, overall, the Irish economy remains internationally competitive. However, there are still several critical areas where Ireland currently falls behind the countries against which we benchmark ourselves, most particularly in relation to energy, infrastructure, spending on R&D and venture capital, and interest costs to businesses.
As outlined in the NCPC’s Ireland’s Competitiveness Challenge 2023 report, there are a number of areas where Ireland could seek to improve its performance and competitiveness position. This report includes 19 recommendations for Government concerning: the costs of doing business; infrastructure delivery; energy generation and consumption; and research, development and innovation – all critical aspects of our current and future competitiveness. My Department has lead responsibility for four of the Council’s recommendations. The Government has issued a formal response to the NCPC’s report, coordinated by the Department of the Taoiseach, which sets out plans to address these recommendations.
My Department continues to pursue pro-enterprise and pro-competitive policies for all Irish enterprise. Published in December 2022, the White Paper on Enterprise 2022-2030 sets out Ireland`s industrial policy for the medium- to long-term, building on Ireland`s economic strengths of an open economy with strong trade and foreign direct investment, a vibrant innovation hub, and a resilient labour market. This review of Enterprise Policy was the first since 2018 and was motivated by an awareness of a changing enterprise landscape posing new challenges, including shifting patterns of globalisation driven by geopolitical change, disruptive technological innovation, and lagging productivity in parts of the indigenous sector of the economy.
It is important that we do not take for granted the underpinnings of our success, and that we are proactive in addressing our weaknesses. As a small, open economy being competitive internationally is critical to the continued success of the Irish economy. The Government looks forward to continued engagement with the NCPC on these issues.
183. Deputy Alan Farrell asked the Minister for Education the monetary contribution from her Department for each student at post-primary level through the new free schoolbook scheme for the academic year 2024/2025; and if she will make a statement on the matter. [23324/24]
View answerIn March I announced details of the new Junior Cycle free Schoolbooks Scheme, which provides, at a minimum, free schoolbooks and core classroom resources to Junior Cycle students enrolled in post-primary schools in the Free Education Scheme. More than 213,000 students enrolled in approximately 670 post-primary schools and over 65 special schools, will benefit from this new measure from the start of the coming school year.
This scheme ensures that parents and guardians will not be asked to buy or rent any schoolbooks or core classroom resources for students in Junior Cycle programmes. Post-primary schools and special schools have autonomy to choose books that meet their curricular requirements.
Detailed guidance on the implementation of the scheme for the 2024/25 school year was published on 5th March to allow schools sufficient time to implement the scheme in advance of the start of the school year. Funding issued directly to schools on 19th March and was paid based on the number of students enrolled in the school on 30th September 2023. Details of the scheme, including the per capita rate of €309 per student, are provided in the scheme guidance available at www.gov.ie/schoolbookschemes.
In recognition of the continued work required by schools to implement the scheme, my Department will also provide an Administrative Support Grant to schools which allows them to employ a person/s to assist with the administration of the scheme. Full details of the Administrative Support Grant is also set out in the scheme guidance for the 2024/25 school year. It is anticipated that this funding will issue to schools shortly.
