Written Answers Nos. 16-30
16. Deputy Richard Bruton asked the Minister for Enterprise, Trade and Employment to outline the new initiatives under consideration to promote regional sector clusters; and if he will make a statement on the matter. [30470/24]
View answerThe Government's White Paper on Enterprise recognises clustering as a key tool for achieving enterprise policy objectives, including driving innovation, attracting and embedding FDI and developing linkages between multinationals and indigenous firms. It proposes the establishment of a National Clustering Programme (NCP), with a target to fund five national cluster organisations by 2025, and the establishment of a central coordination entity to bring coherence to the current ad hoc landscape around clustering in Ireland.
The proposed approach for the development of the NCP is to adopt a multi-layer programme. Clusters of national scale will receive the highest level of funding, with levels of funding tapering down through the layers to enable the ongoing funding of smaller and emerging clusters from existing programmes, subject to the rules of those programmes, while incentivising clusters to move to national scale. In the event that a cluster is not successful in its application for funding under the NCP, it can still apply to be recognised as part of the NCP if it meets certain criteria.
The draft NCP is currently undergoing a review by The Competitiveness Institute (TCI) Network and which involved a stakeholder engagement workshop in Trinity College Dublin in May, which was facilitated by three international clustering experts. The international experts' report is currently being prepared and, subject to their findings, it is proposed to publish the NCP in Q3 of 2024.
My Department has already supported the development of regional clusters through a number of funding schemes including the Regional Enterprise Development Fund and the Regional Technology Clustering Fund.
The three calls under the REDF all included funding streams to support enterprise led clustering initiatives to stimulate enterprise clustering and support the development of established clusters.
The Regional Technology Clustering Fund was launched in 2019 with the aim of supporting Institutes of Technology and Technological Universities to establish and develop clusters to achieve increased SME productivity, drive SME competitiveness and support internationalisation activity. €4.6 million in funding was approved for Educational Outreach Managers for 12 clusters aligned to a particular sector and engaging with relevant start-ups, SMEs and multinational companies.
My Department’s support for regional clustering is continuing through the Smart Regions Enterprise Innovation Scheme, which is co-funded by the European Regional Development Fund. The scheme is aimed at accelerating economic growth in all regions of the country, by working with stakeholders to deliver on their potential regional enterprise strengths, taking an entrepreneurial ecosystem approach aligned with the nine Regional Enterprise Plans.
Stream 2 of the Smart Regions Scheme recognises the importance of clustering and is aimed at supporting innovation clusters and consortia. The funding will provide support to enable personnel to drive collaboration, marketing and managing of the cluster or consortium.
17. Deputy Pádraig O'Sullivan asked the Minister for Enterprise, Trade and Employment the amount of funding issued to businesses under phase 1 of the increased cost of business grant in Cork city and Cork county, in tabular form; and if he will make a statement on the matter. [30495/24]
View answerAs the Deputy will be aware the Increased Costs of Business Scheme has now closed and payments are currently being made to qualifying businesses by each Local Authority.
Since I came into office, I made two changes to the ICOB Scheme as part of the SME package that I announced in May. I reopened the Scheme for an additional two weeks to allow businesses another chance to sign up for the grant and I provided that qualifying businesses operating in the hospitality and retail sectors will receive a second payment under the Scheme.
This is due to the greater impact that increased costs are having on the hospitality and retail sector, as noted in a piece of research undertaken by the Department of Enterprise, Trade & Employment in association with the Department of Social Protection entitled “An assessment of the cumulative impact of proposed measures to improve working conditions in Ireland”.
Across all Local Authorities, as of 9 July, there have been 72,576 registrations to the Scheme representing 81,336 businesses. €141 million has already been paid out to over 62,000 businesses. This amounts to €129 million to businesses as a first payment, and €11.9 million to businesses in second payments.
Specifically with regard to Cork City and Cork County, to date Cork City has paid out €9,018,693 to over 3,500 businesses and Cork County has paid out €7,329,993 to almost 4,000 businesses.
Second payments to businesses in the hospitality and retail sector are now being made by Local Authorities.
Before payments can be made by a Local Authority, the information submitted by businesses requires verification by Local Authority staff to ensure adherence to their financial and governance processes. However, I am fully confident that the Local Authorities are doing everything possible to get payments to businesses as quickly as possible and this is demonstrated by the fact that over €140 million has already been paid out under the Scheme to over 60,000 businesses right across the country.
19. Deputy Barry Cowen asked the Minister for Enterprise, Trade and Employment the actions he is taking to advance Ireland's FDI and trade value proposition; and if he will make a statement on the matter. [30037/24]
View answerThe Government's White Paper on Enterprise, which was published in December 2022, emphasises the importance of FDI to the Irish economy and highlights the importance of the green and digital agendas as drivers of future growth and competitiveness. The latest implementation report, for the second half of 2023 and which I published in May 2024, includes updates on the initiatives led by IDA Ireland, amongst others, that have been completed.
Key White Paper actions on key infrastructure and capacity challenges are being addressed across Government through NDP-2040 investments. Earlier this year my Department published Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy which identifies actions to support the development of offshore wind in support of energy security and cost competitiveness, a key competitiveness challenge at this time.
The continued promotion of FDI in Ireland is further supported by the implementation of our Trade and Investment Strategy 2022-2026: Value for Ireland, Values for the World. Priorities set out in that strategy are focused on the promotion of Ireland’s investment ecosystem and reaping the benefits of the EU Single Market.
My Department, along with Enterprise Ireland, also continues to focus on the development and growth of Irish enterprises in world markets with EI supporting both start-up and established companies to increase sales and exports in global markets, which in turn results in increased employment. EI client company exports reached a record €34.57bn in 2023.
20. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment the supports in place to businesses under the Brexit adjustment initiative to assist in challenges presented by the new UK Import rules imposed on Irish and EU exports since January 2024; and if he will make a statement on the matter. [30009/24]
View answerThe Brexit Adjustment Reserve (BAR) aims to provide financial support to the most affected member states, regions and sectors to deal with the adverse consequences of Brexit. Businesses supported by Enterprise Ireland have access to a range of expert teams from Development and Market Advisors to Digital Marketers and Technologists, with in-depth industry knowledge and supports to start, scale and grow internationally. They can also benefit from international trade missions, trade event programmes and buyer visits which are instrumental when growing and scaling internationally.
Funding under the Brexit Adjustment Reserve has been allocated to my Department through the European Commission. Ireland, as the Country clearly most affected by Brexit, was awarded the largest share, over €1 billion, the equivalent to just over 20% of the entire reserve.
In 2022 - 2023, €15 million was allocated to Enterprise Ireland (EI) for disbursal to indigenous companies to assist with eligible costs as a result of Brexit. The BAR eligibility period for expenditure ran retrospectively from the 1st of January 2020 and ended on the 31st of December 2023.
Since the UK departed the EU in 2020, Enterprise Ireland, on behalf of my Department, designed a range of supports, which were developed and launched to assist Irish enterprises to deal with potentially one of the most disruptive events to ever happen within Irish international trade. With the introduction of BAR, these schemes were adapted to qualify for funding under this initiative.
These supports include:
• The 'Be Prepared' Grant
• The Border Enterprise Development Fund
• The Capital Investment Scheme Agricultural Products Scheme
• The Clear Customs Financial Support Grant
• The Evolve Strategic Planning Grant
• The Market Discovery Fund
• The Ready for Customs Grant.
21. Deputy Ruairí Ó Murchú asked the Minister for Enterprise, Trade and Employment to provide an update on the work of the working group on bogus self-employment; and if he will make a statement on the matter. [29896/24]
View answerThe Determination of Employment Status Working Group was established on foot of a recommendation made at the Labour and Employer Economic Forum (LEEF) in late 2021.
This Group is comprised of representatives from ICTU, Ibec, the Construction Federation of Ireland and ISME as well as officials from the Department of Enterprise, Trade and Employment, the Revenue Commissioners, and the Department of Social Protection. The group has undertaken open and constructive discussions concerning false self-employment and given thorough consideration to a wide range of material and evidence presented to it.
The purpose of this Working Group is to examine issues around employment status, to consider the scale of misclassification, and to discuss the potential to improve systems by which correct employment status is determined. It is reconvening later today to consider the implications of Supreme Court judgement in the Karshan case.
Following that Supreme Court judgement, Revenue, in consultation with stakeholders, devised and published a Tax and Duty Manual on Determination of Employment Status to outline the tax implications of the case.
The Manual sets out the key elements of the judgment and its implications for businesses engaging employees, workers, contractors or sub-contractors and the Guidance includes a five step Decision Making Framework. It also provides 19 worked examples of how that framework applies.
I understand that work is also at an advanced stage in the Department of Social Protection in updating the Code of Practice on Determining Employment Status, in consideration of the Supreme Court ruling.
The Code of Practice on Determining Employment Status is the key guidance document for employers and workers and others in relation to deciding the employment status.
In addition, work is also ongoing in my Department to establish the Employment Law Review Group (ELRG) on a statutory basis. Once established, the ELRG will be a valuable asset in considering complex employment law questions, such as the broader issue of employment status.
22. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he continues to ensure that enterprise and trade can continue to progress satisfactorily in highly competitive national and global markets, and ensure the attractiveness for investors in this economy; and if he will make a statement on the matter. [30474/24]
View answerTo ensure that FDI in Ireland continues to thrive, my Department works alongside IDA Ireland to strengthen Ireland’s business environment and FDI value proposition, and to identify and support strategic sectors.
In the first six months of this year, the IDA supported 131 investments, 74 of which are planned for regional locations, enabling the future delivery of 8,900 jobs to the economy against an increasingly challenging global operating environment.
As set out in the Government’s White Paper on Enterprise, FDI and trade remain central to Ireland’s growth model and economic strategy. Our response to changing globalisation patterns and associated market and supply chain fragmentation is to remain flexible and agile, while providing continuity and stability as an investment destination of choice and making infrastructural investments through the NDP and Project Ireland 2040 and in response to the annual NCPC Competitiveness Challenge Reports to ensure our FDI proposition remains globally competitive.
The competitiveness of our indigenous companies is also strongly supported through Enterprise Ireland, the network of Local Enterprise Offices, through a range of measures to support our SMEs and through funding for our innovation ecosystem. Indigenous companies are also being aided through initiatives such as supports for modern construction methods, our offshore wind strategy and funding to accelerate decarbonisation and digitalisation. The White Paper on Enterprise also contains specific measures to support our SMEs to navigate the challenges and opportunities of the twin green and digital transitions.
24. Deputy Willie O'Dea asked the Minister for Enterprise, Trade and Employment how he is supporting co-operative societies; the legislative changes planned in relation to them; and if he will make a statement on the matter. [30017/24]
View answerMy Department is working on the Co-operative Societies Bill which will result in the most far-reaching reform of the legislation governing co-operatives in the history of the State. The Bill 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.
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 Bill 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 providing confidence to stakeholders and making co-operatives more attractive to investors.
The Bill includes 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; and providing for audit exemptions for smaller co-operatives. 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 Bill 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.
Drafting of the Bill is ongoing by the Office of the Parliamentary Counsel, in consultation with officials in my Department. Due to the length of the Bill and its complex nature, it is expected that drafting will not be completed until Q3 2024 with the Bill being brought to Government in Q4 of this year. Once the Bill is published, I look forward to the support of Members of both Houses with a view to facilitating early enactment.
25. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment if he is aware of the recent threats by residential waste management companies to increase waste removal prices due to the loss of profits; if he is considering price controls or other measures to mitigate further increases in the cost of living; and if he will make a statement on the matter. [30465/24]
View answerI have responsibility for consumer protection law. In recent years my Department has made significant improvements in consumer protection legislation. The Consumer Rights Act 2022 represents the most significant reform of consumer protection law in Ireland in the last 40 years. It updates and strengthens existing Irish consumer law relating to the sale of goods and supply of services, unfair contract terms and consumer information and cancellation rights. The Representative Actions Act is the first legislation of its kind in Ireland as it allows for a group of consumers to take an action against a trader to the High Court for an infringement of their consumer rights.
Under consumer protection law, before a consumer signs up to a contract with a waste operator, they must be provided with certain information. This includes the total price of the service or the method of calculating the price (for example by weight) and the duration of the contract, or if it is ongoing, how a consumer can cancel their contract.
The Competition and Consumer Protection Commission (CCPC), the independent statutory body that enforces competition and consumer law under the remit of my Department, is responsible for ensuring that prices are set independently by competing businesses. They carry out this function by enforcing laws that mean there is competitive pressure on businesses to set prices at a level that will attract customers.
The CCPC continues to promote and monitor compliance with competition and consumer protection laws across all sectors of the market. Where appropriate, the CCPC investigates suspected breaches of competition or consumer protection law and takes enforcement action if the investigation uncovers sufficient evidence of a breach. Promoting a competitive marketplace is clearly beneficial for consumers.
At present traders in Ireland are generally free to set and change their own prices for goods and services once they do so independently and in line with consumer protection law.
On the question of price controls, price controls are a blunt instrument that can result in a number of unintended consequences. They can create uncertainty for anyone looking to set up a business in Ireland that they may not have the freedom to set their own prices. Over time this uncertainty could reduce the level of investment in Ireland and indeed increase the cost. This could in turn, result in increased prices and reduced choice to the detriment of consumers in Ireland.
I am committed to continuing to strengthen the landscape for consumers and, as part of that, this Government has continued to invest significant additional resources into the Competition and Consumer Protection Commission to enable it to best carry out its functions to protect consumers and raise awareness.
26. Deputy Thomas Gould asked the Minister for Enterprise, Trade and Employment if he is aware of a number of businesses (details supplied) closing in Blackpool; and the actions he has taken to support these workers. [30476/24]
View answerWhere job losses are announced by companies based in Ireland, my first thoughts are with the staff members and their families impacted by such decisions and the supports we can provide in conjunction with our Enterprise Development Agencies and other Government Departments.
In relation to the specific companies identified by the Deputy, my Department received a collective redundancy notification from Blizzard/Activision on 26th January 2024 on foot of a global announcement of plans to reduce its global workforce by 1,900 with 136 roles at Blizzard Cork impacted by the announcement. In response, the IDA regional team sought skills profiles of impacted employees and shared details on IDA Transformation supports for upskilling and reskilling. IDA will continue to keep in close contact with the company's Irish and US leadership Teams.
In respect of Dulux Paints, my Department received a collective redundancy notification on 23rd May 2024 as the company's parent company has initiated a multi-year global efficiency plan and 45 employees in Cork are at risk of redundancy. The impacted roles are primarily in production, with the company stating that it remains committed to its sales, marketing, warehousing and logistics, and Dulux Decorator centres in Ireland. Trade unions are involved in the consultation process with redundancies expected to take effect in August.
Despite the regrettable announcements, I should record that FDI in the South-West region has seen strong growth over the past five years with employment among IDA clients increasing by 32% with 229 IDA client companies employing over 52,000 people in the South-West at end-2023 and in Cork there are 212 IDA companies, employing over 50,000.
27. Deputy Jackie Cahill asked the Minister for Enterprise, Trade and Employment the actions being taken to enable locally trading sectors to thrive; and if he will make a statement on the matter. [30035/24]
View answerThe Government is acutely aware that businesses in all sectors, including the locally traded sector, are concerned about the impact of rising costs.
The Increased Cost of Business (ICOB) grant was introduced in Budget 2024 package to help businesses with their increasing overheads. The Local Authorities are administering the ICOB scheme on behalf of my Department and the priority is to get payments to businesses as soon as possible.
In total, as of 9 July, there have been 72,576 registrations representing 81,366 businesses. In total €141 million has already having been paid out to over 62,000 businesses. This includes €129 million to businesses as a first payment, and €11.9 million in second payments to businesses in the hospitality and retail sectors.
The new online National Enterprise Hub for SMEs is the best way to access information on the wide range of Government business supports. The launch of the National Innovation Hub took place yesterday and it includes a dedicated website and phone line with Hub Advisors to help businesses access Government supports. Any business can contact the Hub for direct help in navigating the comprehensive suite of supports that are being offered to business throughout Ireland.
Local Enterprise Offices (LEOs) play an extremely important role at local level, as part of a supportive ecosystem, providing their services directly to small businesses and promoting entrepreneurship within towns and communities across the country. LEOs are the first-stop-shop locally for every business in the country.
The past four years has seen the remit of the LEOs expanded into the heart of our locally traded sector and have a greater focus on developing new exporters. The recently launched LEO Policy Statement 2024 – 2030 reaffirms the centrality of LEOs in promoting a pro-business and pro-enterprise environment in every county, and in championing local business development priorities.
The SME Package I announced on 14 May also included adjustments to schemes and programmes operated by the LEOs, making these supports available to a wider range of small businesses, including those operating in the retail, hospitality and locally trading services sectors.
• The maximum amount available under the Energy Efficiency Grant Scheme is being increased from €5,000 to €10,000 and the business contribution rate will be reduced from 50% to 25%.
• Eligibility for the Trading Online Voucher scheme is being extended to all sectors with up to 50 employees, eligible expenditure is being modernised and the grant is being doubled from €2,500 to €5,000. The scheme will be renamed the Grow Digital Voucher.
In addition, eligibility for the Digital for Business Consultancy Scheme is being widened and extended to all sectors with up to 50 employees. This will help more businesses to identify the potential to digitalise within their business.
We will also ensure any major new measure from Government will be assessed for its impact on small business — through an enhanced SME test. Officials from my Department are working with a Cross-Government group on implementation and enhancement of the SME Test and will work with other Departments to ensure the SME Test is an integral part of policy making.
28. Deputy Barry Cowen asked the Minister for Enterprise, Trade and Employment how he is integrating decarbonisation and net zero commitments into enterprise policy; and if he will make a statement on the matter. [30036/24]
View answerMy Department is pro-actively integrating climate action in our activities, and those of our agencies; engaging with businesses in Ireland from microbusinesses to large corporates about the many opportunities for decarbonisation and cost effective efficiencies.
The White Paper on Enterprise highlighted the need for an integrated approach to enterprise policy that aligns our growth with decarbonising our businesses. This is key to Ireland’s future competitiveness and the long-term health of our economy; doing the work now can successfully position Ireland seize the opportunities ahead, and underpin a prosperous transition to a low-carbon economy.
To realise this ambition, the enterprise development agencies – IDA Ireland, Enterprise Ireland, LEOs and other sectoral agencies – are incorporating carbon abatement as an objective equal to and alongside employment and value-added. This has required significant changes to agency priorities and activities, including the setting of explicit emissions reductions targets for their client base and the incorporation of the cost of carbon into project evaluation. These agencies are facilitating the green transition in our FDI and Irish exporting base, with IDA Ireland supporting nearly €130 million in decarbonisation investments over the three year period 2021-2023, and Enterprise Ireland supporting 207 climate projects across 2023, alongside ongoing efforts to enhance digital adoption across the enterprise base.
My Department has recently published a Roadmap for the Decarbonisation of Industrial Heat. It outlines the necessary trajectory to meet our binding decarbonisation targets in the manufacturing sectors. It sets out the key policy interventions to decarbonise heat use by industry, including the supports available to companies, the regulations to promote decarbonisation, and the enabling measure that will facilitate the transition.Alongside the publication of the Industry Decarbonisation Roadmap I announced that €300 million is being made available to drive the decarbonisation of Ireland’s industrial emitters over the coming years. The fund will be used by Enterprise Ireland and IDA Ireland to support client companies to reduce their industrial emissions between now and 2030 through the Environmental Aid scheme.
A similar roadmap for decarbonising commercial premises will be published in the coming months, and set out a pathway for removing the fossil fuels from our enterprises' building stock, including offices, retail facilities, hotels and all non-residential premises. It will set out the regulations forthcoming under the Environmental Performance of Buildings Directive, and supports and advice available to assist businesses through SEAI, the Local Enterprise Offices and elsewhere. Many businesses are already well underway on this transition, have undertaken energy audits and made smart investments in energy efficiency, removing fossil fuels and using low carbon renewable energy.
Thousands of businesses are already being supported through the Green Transition Fund, SEAI energy programmes, SkillNet Ireland training, the LEO Green for Business programme, and a range of other advisory, training and grant aid offerings. My Department, and key state agencies, will continue working to ensure that all businesses in Ireland are activated and engaged in the green transition, ensuring Ireland’s economy remains competitive, resilient and sustainable as we progress towards our target to be net zero by 2050.
29. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment if he is planning further legislative changes to the minimum rates of pay and work conditions for security officers in the security industry; and if he will make a statement on the matter. [30467/24]
View answerMinister Higgins approved the new ERO for the Security Industry on 13 June 2024 and it commenced on 1 July 2024. It is currently available to the public on the Department’s website: SI No 319 of 2024 Employment Regulation Order (Security Industry Joint Labour Committee) 2024 - DETE (enterprise.gov.ie)
No further legislative changes to the rates of pay and work conditions for security officers in the security industry are under consideration.
Under legislation, the JLC may submit proposals to revoke or amend the ERO to the Labour Court once the Order has been in force for at least six months.
30. Deputy Ruairí Ó Murchú asked the Minister for Enterprise, Trade and Employment if he is aware of a campaign by a union (details supplied); if his or other Departments are working on the issues raised by the union; and if he will make a statement on the matter. [29895/24]
View answerI am aware of the Respect at Work campaign which is seeking new protections for workers seeking to organise in their workplaces.
These proposals will be considered in the context of Ireland’s publication of an Action Plan to promote collective bargaining as required by the EU Directive on Adequate Minimum Wages.
Article 4 of the Directive, Promotion of Collective Bargaining on Wage Setting, aims to promote collective bargaining on wages in all Member States. The Directive requires Member States in which the collective bargaining coverage rate is less than 80% to provide “for a framework of enabling conditions for collective bargaining” and to publish an Action Plan to promote collective bargaining. The deadline for the Action Plan to be submitted to the Commission is the end of 2025. However, it is intended to publish it ahead of that date.
A technical working group has been established with Department officials and the social partners, including SIPTU representatives, to consider the content of Ireland’s Action Plan. The working group has had three meetings to date, most recently on 8th July, and has received proposals including some of the issues raised in the ‘Respect at Work’ campaign, including legal protections for trade union members and trade union access to workplaces.
Minister Burke met with the social partners in the context of the Labour Employer Economic Forum Plenary meeting held on 24th June 2024 at which Ireland’s Action Plan was discussed. It will be further discussed at a meeting I will chair in July on the Report of the LEEF High Level Group on Collective Bargaining Report and at a meeting of the LEEF Subgroup on Employment and Enterprise which Minister Burke will chair in September.
I would like to stress that the Government fully supports the right of any worker to join and be active in their trade union. Employees have the right under the Constitution to form associations and trade unions. Under Irish legislation, an employee cannot be discriminated against or dismissed because they are a member of a trade union.
