Written Answers Nos. 46-60
46. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment the status of the Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024; and if he will make a statement on the matter. [30126/24]
View answerIn March 2024 Government approved the drafting of the Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024, which will implement a key commitment included in the Government’s response to the Pensions Commission Recommendations and Implementation Plan.
The purpose of the Bill is to align mandatory retirement ages in employment contracts with the State Pension age, age 66, where an employee does not consent to the mandatory retirement age. This element of consent reflects the fact that many employees may want to retire at the contractual retirement age.
Since Government gave approval to draft this Bill in March the General Scheme was referred to the Joint Oireachtas Committee for pre-legislative scrutiny. The Committee published its report on 24 May.
The General Scheme was also referred to the Office of the Parliamentary Counsel for drafting, which is underway. Officials are working closely with drafters to ensure that this will be a robust and well-balanced legislative provision which facilitates any worker who wants to continue in employment until they can first access the State Pension. It also makes necessary provision for the limited cases where a lower retirement age may be required.
Once drafted, it is anticipated that the Bill will commence its passage through the Houses of the Oireachtas during the Autumn session.
There will be an appropriate lead-in time in advance of commencement of the legislation during which there will be a communications campaign to ensure employers and employees fully understand the implications.
47. Deputy Cathal Crowe asked the Minister for Enterprise, Trade and Employment the efforts his Department has made to ensure that small businesses, including shops, bars, cafés and restaurants, are supported during this period of increased operational costs; and if he will make a statement on the matter. [29954/24]
View answerAs part of re-opening the Increased Cost of Business (ICOB) scheme and given the greater impact that increased costs are having on the hospitality and retail sector, as noted in the Department of Enterprise, Trade and Employment and Department of Social Protection joint working paper titled ‘An Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland’, it was agreed that business operating in these sectors will receive a second payment for approved businesses.
As you are aware, 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. With a total of €141m already having been paid out to over 62,000 businesses. This amounts to €129m to businesses as a first payment, and €11.9m to businesses in the hospitality and retail sectors in second payments.
A further range of measures are also being brought forward to assist businesses. These measures include:
• Increasing the maximum amount available under the Energy Efficiency Grant Scheme to €10,000 and reducing the business contribution rate from 50% to 25%.
• Changes are currently being incorporated to widening the eligibility for the Trading Online Voucher, extending it to all sectors, including retail and hospitality, up to 50 employees, modernise eligible expenditure and doubling the grant to €5,000.
• Increasing the lending limit for Microfinance Ireland loans to €50,000 from €25,000.
• Changes are currently being made to widen the eligibility for the Digital for Business Consultancy Scheme and extending it to all sectors, including retail and hospitality, with up to 50 employees.
• A new online National Enterprise Hub for SMEs to access information on the wide range of Government business supports. I launched the Hub yesterday, along with Minister Burke. It can be accessed at www.neh.gov.ie and signposts to over 180 different Government service or supports ranging from EI and LEOs to the SEAI and Board Bia.
• Implementing an enhanced ‘SME Test’ by the Department of Enterprise, Trade and Employment in conjunction with the Department of the Taoiseach. My Department will shortly issue new guidelines on the SME Test and will work with other Departments to ensure the SME Test is an integral part of policy making.
• The removal of the €125 fee for tables and chairs for the purpose of outdoor dining by S.I 196 of 2024 - Planning and Development (Street Furniture Fees) Regulations 2024, which has been signed by Minister O’Brien.
48. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment the sectors that have been identified at risk where employers could structure their employees' working hours or patterns to be within the scope for the lower rate of PRSI contribution; if it is recognised that the PRSI changes proposed between 2024 and 2028 would be contrary to the central objective of improving conditions for employees; and if he will make a statement on the matter. [30010/24]
View answerDecisions in relation to Pay Related Social Insurance (PRSI) are primarily a matter for the Minister for Social Protection.
The sustainability of State Pension and social insurance schemes is an issue for many advanced economies. The increase in social security contributions set out in the Roadmap of Increases to Pay Related Social Insurance from 2024 to 2028 will improve the sustainability of social insurance in Ireland, and help avoid any shortfall in the Social Insurance Fund.
Ultimately, the sustainable funding of social insurance benefits related to pensions; illness, disability and unemployment payments; and maternity and bereavement leave, is critical to improved social and working conditions in Ireland. As such, the increase in PRSI, which does have an impact in terms of take-home pay, is consistent with the objective of improving working conditions for employees in Ireland.
While there is a risk that some employers may seek to structure their staff working hours in order to keep more employees below the upper-rate threshold for Employer PRSI, this risk has not materially changed in recent years and is a feature of a system with multiple rates. This risk is mainly concentrated in those sectors with lower rates of pay, such as those with a higher proportion of minimum wage employees - as identified in the report An Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland published by the Department of Enterprise, Trade and Employment and the Department of Social Protection early this year.
The Low Pay Commission 2023 report on ‘Recommendations for the National Wage’ set out that 28% of those in the accommodation and food services activities sector, and 16.2% of those in the wholesale and retail trade sector, are on the minimum wage. However, it should be noted that this risk assessment is based solely on the prevailing rates of pay in those sectors, rather than an assessment of the risk of particular action by any single employer.
As part of the SME Package in May 2024, it was confirmed that the Minister for Social Protection will increase the Employer PRSI threshold from €441 to €496 with effect from 1 October 2024. This will ensure that employers with employees working full-time on the national minimum wage will not be required to pay the higher rate of employer PRSI of 11.05% (and will instead pay the lower rate of 8.8%). This will reduce the risk of the type identified by the Deputy.
49. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment to confirm that no dual-use goods manufactured in Ireland and granted an export licence have been used in the killing of Palestinian civilians since 7 October 2023; the number of referrals made to An Garda Síochána in circumstances where a criminal offence under the dual-use regulation is suspected, by year, in tabular form; and if he will make a statement on the matter. [29345/24]
View answerMy Department is the National Competent Authority with responsibility for Export Controls, including Controls on defence-related exports and exports of dual-use goods. Ireland operates Export Controls to the highest standards, in accordance with EU law and international best practice.
Dual-use items are products and components, including software and technology, that can be used for both civil and military applications. The bulk of dual-use exports from Ireland (87%) are mainstream business ICT products . They are categorised as dual-use items as a consequence of the fact that they incorporate strong encryption for ICT security purposes.
My Department has safeguards built into the licensing system which enable robust checks and cross-checks to ensure, as far as possible, that the item to be exported will be used by the stated end user for the stated end use and will not be used for illicit purposes.
The Department of Enterprise, Trade and Employment consults with the Department of Foreign Affairs in respect of all export licence applications and seeks observations on any foreign policy concerns that may arise in respect of all proposed exports. Such factors are subject to review in the light of developments in a given region. Observations which may arise from this examination are considered in the final assessment of any licence application.
There are also significant safeguards built in to post shipment verification. Authorised officers within my Department conduct site visits and audits with or without notice. They assess compliance with conditions of the licence, including an examination of the export documentation, internal compliance controls to ensure prevention of diversion and circumvention, and that the staff of the exporting company are adequately trained and resourced. My Department liaises frequently with An Garda Síochána but it would not be appropriate to provide details relating to potential investigations.
The Control of Exports Act, 2023, soon to be commenced, will provide authorised officers of the Department with increased powers to investigate potential infringements and will ensure that the penalties for infringements of the regulations are proportionate, graduated and dissuasive.
50. Deputy Seán Haughey asked the Minister for Enterprise, Trade and Employment if he will report on the national implementation of the EU Artificial Intelligence Act. [30032/24]
View answerThe EU Artificial Intelligence Act will enter into force on 1 August 2024. The various measures in the Act will start to apply, in a phased manner, over the subsequent 36 months.
The Act will provide a high level of protection for people’s health and safety, and their fundamental rights, while simultaneously promoting the responsible development and adoption of trustworthy AI.
The Act will establish a sophisticated governance and implementation structure at both national and EU level to ensure robust and harmonised implementation of the regulations in the Act. This includes the creation of a European Artificial Intelligence Board, which met informally in June and will meet formally in September, once the Act has entered into force. My Department represents Ireland on the AI Board.
The European Commission has established the European Artificial Intelligence Office, which will work closely with the Board and the Member States. It will develop guidelines and codes of practice over the next 12 months to support the uniform application of the Act across the EU.
Within twelve months of entry into force of the Act, Member States will be obliged to designate the national competent authorities that will be responsible for implementing and enforcing the Act.
My Department has lead responsibility for national implementation of the Act, and I am committed to the robust and comprehensive implementation of the Act in Ireland.
My officials are currently assessing the optimal national configuration of competent authorities for efficient and effective enforcement of the provisions of the Act. Consultations on the national implementation are ongoing with other Government Departments and relevant public bodies.
My Department has launched a public consultation on the implementation of the EU AI Act in Ireland, which will is open until 16 July. Information on how to make a submission is available on the Department’s website.
51. Deputy Marian Harkin asked the Minister for Enterprise, Trade and Employment the measures taken by his Department to support Irish hospitality businesses; and if he will make a statement on the matter. [30304/24]
View answerThe Government is acutely aware that businesses in all sectors, including the hospitality 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. Local Authorities are administering the ICOB scheme on behalf of the 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. With a total of €141m already having been paid out to over 62,000 businesses. This amounts to €129m to businesses as a first payment, and €11.9m to businesses in the hospitality and retail sectors in second payments.
A further range of measures are being brought forward to assist businesses. These measures include:
• Increasing the maximum amount available under the Energy Efficiency Grant Scheme to €10,000 and reducing the business contribution rate from 50% to 25%.
• Changes are currently being incorporated to widening the eligibility for the Trading Online Voucher, extending it to all sectors, including retail and hospitality, up to 50 employees, modernise eligible expenditure and doubling the grant to €5,000.
• Increasing the lending limit for Microfinance Ireland loans to €50,000 from €25,000.
• Changes are currently being made to widen the eligibility for the Digital for Business Consultancy Scheme and extending it to all sectors, including retail and hospitality, with up to 50 employees.
• A new online National Enterprise Hub for SMEs to access information on the wide range of Government business supports. I launched the Hub yesterday, along with Minister Burke. It can be accessed at www.neh.gov.ie and signposts to over 180 different Government service or supports ranging from EI and LEOs to the SEAI and Board Bia.
• Implementing an enhanced ‘SME Test’ by the Department of Enterprise, Trade and Employment in conjunction with the Department of the Taoiseach. My Department will shortly issue new guidelines on the SME Test and will work with other Departments to ensure the SME Test is an integral part of policy making.
• The removal of the €125 fee for tables and chairs for the purpose of outdoor dining by S.I 196 of 2024 - Planning and Development (Street Furniture Fees) Regulations 2024, which has been signed by Minister O’Brien.
• The Minister for Social Protection will increase the employer PRSI threshold from €441 to €496 with effect from 1 October 2024. This will ensure that employers with employees working full time on the national minimum wage will not be required to pay the higher rate of employer PRSI of 11.05% and will instead pay the lower rate of 8.8%.
• Ensuring that the employer PRSI threshold is explicitly considered as part of the Low Pay Commission deliberations and is reviewed on each occasion that the minimum wage is increased.
• Review the proposed Roadmap for Increasing Minimum Annual Remuneration Thresholds for Employment Permits, which is ongoing.
In Budget 2024, Government allocated a total of €216 million funding for the tourism sector. Through this allocation, Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Catherine Martin T.D., has been working on a programme of supports, including a business support scheme, investment in sustainable tourism development and promotion, industry digitalisation, promotion of domestic tourism and festivals, and recruitment and retention initiatives.
As of May, Minister Martin has made up to €10 million available for a programme of supports targeted at tourism businesses experiencing particular challenges linked to the reduction in footfall in regions most impacted by tourism bed stock displacement. This programme of supports includes a Business Support Scheme, investment in sustainable tourism development and promotion, industry digitalisation, promotion of domestic tourism, and recruitment and retention initiatives.
52. Deputy Cathal Crowe asked the Minister for Enterprise, Trade and Employment the efforts his Department, working in conjunction with Enterprise Ireland and the IDA, has made to attract new investment to the west Clare area; and if he will make a statement on the matter. [29955/24]
View answerRegional development is a key element of the Government's enterprise policy and is fully reflected in the strategies of our Enterprise Development Agencies.
IDA Ireland is targeting that at least half of all investments - that is 400 of 800 - from 2021 to 2024 will go to regional locations. The IDA Mid-West Region, including County Clare, has 159 IDA client companies in the region, employing over 27,000 people, with 70 companies employing almost 6,000 in County Clare itself. The IDA works closely with the existing base of client companies to support their continued growth, as well as looking to locate new investments in the County, and over the past five years employment among IDA clients in Clare has increased by 20%.
Enterprise Ireland has been instrumental in fostering a supportive environment for business growth in County Clare and through strategic initiatives and partnerships, focused on enhancing the employment attractiveness of the Mid-West region. Enterprise Ireland has 100 clients in County Clare that it works with employing almost 5,200 people and they have facilitated various programs to help businesses adapt to digital and green, providing grants and expertise to encourage sustainable practices and digital transformation. These efforts are designed to position West Clare as a competitive and attractive location for new commerce and industry, leveraging its unique strengths and opportunities.
One of their key strategies has been the development of the Local Enterprise Office (LEO) Clare Development Plan 2021-2024, which outlines a comprehensive framework for enterprise development in the area. This plan includes a range of support services tailored to the needs of local businesses, such as advisory services, financial assistance, and training programs aimed at boosting entrepreneurship and innovation. LEO Clare provides direct grants to small businesses, that are specifically designed for growth or exporting and target businesses in the manufacturing and internationally traded services sectors. In 2023 LEO Clare provided over €700,000 in direct grant assistance to help 229 Small businesses supporting 1,393 Jobs across county.
53. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment his views on the report of the Low Pay Commission on sub-minimum, or youth rates of the national minimum wages. [30128/24]
View answerIn 2022, the Low Pay Commission was asked to examine the issues around retaining or removing the sub-minimum youth rates of the National Minimum Wage and to make recommendations on the subject.
The Low Pay Commission conducted an in-depth review of sub-minimum youth rates, and informed by stakeholder consultation and background research from ESRI on the incidence of sub-minimum rates, developed their recommendations on these rates.
I published the Low Pay Commission’s report on sub-minimum youth rates of the National Minimum Wage last month.
The Low Pay Commission has recommended the removal of all sub-minimum youth rates of the National Minimum Wage.
The Commission highlighted in its report that this is a complex issue. They have said Government will need to give their findings and recommendations detailed consideration and deliberation, and they highlighted the need for further legal advice on the matter.
I have committed to commissioning an economic impact assessment of the recommendations. Terms of reference for this study are being considered.
The economic impact assessment will model the impact of making changes to youth rates on firms of different sizes and in different sectors. It will also consider the likely changes to the National Minimum Wage given the Government’s decision to progress to a National Living Wage set at 60 per cent of the median wage.
I will also seek legal advice on the Low Pay Commission’s recommendations.
Government will make a decision on this important issue the results of the economic impact assessment and the legal advice are available to us.
In the meantime, it’s important to remember that the current system of youth rates is based on a percentage of the full minimum wage; when the minimum wage increases, these sub-minimum rates also increase, with young people in receipt of these rates seeing a commensurate increase in their wages.
54. Deputy Jennifer Murnane O'Connor asked the Minister for Enterprise, Trade and Employment the number of businesses in counties Carlow, Kilkenny, Wexford and Waterford, respectively, registered for the increased cost of business grant; the value of the payments for businesses in each county; and if he will make a statement on the matter. [30005/24]
View answerThe ICOB grant scheme has now closed and payments are currently being made to eligible businesses by each Local Authority.
The figures for Carlow, Kilkenny, Wexford and Waterford are as at 9th July and are set out below:
Carlow - 1169 business properties registered and €2,138,692 has been paid out to date.
Kilkenny - 1704 business properties registered and €2,663,753 has been paid out to date.
Wexford - 2962 business properties registered and €8,776,804 has been paid out to date.
Waterford - 2455 business properties registered and €5,622,223 has been paid out to date.
55. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment the status of the transposition of the EU Adequate Minimum Wages Directive; and if he will make a statement on the matter. [30130/24]
View answerThe Directive on Adequate Minimum Wages in the European Union was published on 19th October 2022 and must be transposed by 15th November 2024. The Directive aims to ensure that workers across the European Union are protected by adequate minimum wages allowing for a decent living wherever they work.
The Directive includes three sets of measures:
1. One of the goals of the Directive is to increase the number of workers who are covered by collective bargaining on wage setting. It will require Ireland to develop an action plan to enhance collective bargaining coverage by the end of 2025.
2. To ensure minimum wages are set at adequate levels, the Directive also requires countries with statutory minimum wages, as in Ireland, to put in place clear and stable criteria for minimum wage setting, indicative reference values to guide the assessment of adequacy, and to involve social partners in the regular and timely updates of minimum wages.
3. The Directive provides for improved enforcement and monitoring of the minimum wage protection established in each country. The Directive introduces reporting by Member States on its minimum wage protection data to the European Commission.
My Department’s analysis of the Directive suggests that our current minimum wage setting framework, namely the Low Pay Commission, is largely already in compliance with the minimum wage provisions of the Directive. Initial legal advice suggests that limited changes are required to ensure the transposition of these elements of the Directive. Work is underway to ensure transposition by the deadline of November 2024
In relation to the collective bargaining elements of the Directive, Article 4 requires Member States with a collective bargaining coverage below 80%, such as Ireland, to provide “for a framework of enabling conditions for collective bargaining” and to publish an action plan to promote collective bargaining by the end of 2025.
A technical working group has been established with Department officials and the social partners to consider the content of Ireland’s action plan. The working group has had three constructive meetings to date, most recently on the 8th July 2024.
My Department has also requested legal advice from the Office of the Attorney General as to whether any legislative change is required in order to transpose Article 4 of the Directive into Irish legislation by the transposition deadline of November this year.
Legislative changes may separately be considered as part Ireland's action plan; this has not yet been decided upon. The action plan is about ensuring the autonomy of social partners and does not compel any party to engage in negotiations or conclude agreements.
My Department, through the Permanent Representation to the EU in Brussels, is also engaging with other Member States to share best practice with regard to the development of the action plans and the transposition of the Directive.
56. Deputy Alan Farrell asked the Minister for Enterprise, Trade and Employment to provide an update on his Department’s efforts to increase employee protections during collective redundancies; and if he will make a statement on the matter. [30492/24]
View answerThe Protection of Employment Act 1977, as amended, protects employees facing collective redundancies. The Act requires employers considering collective redundancies to consult with employees’ representatives for at least 30 days and to notify the Minister for Enterprise, Trade and Employment at least 30 days before any redundancy takes effect.
I have recently introduced a number of legislative changes to increase the protection of employees who face collective redundancies, through the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024. The Act commenced on 1 July 2024.
Since the commencement of the Act, all employees facing collective redundancies can now seek redress from the Workplace Relations Commission (WRC) if they are made redundant before the expiry of the 30-day period following notification to the Minister.
Employees facing collective redundancies arising from their employer's insolvency also now receive further protections. These include requiring the liquidator or similar appointee to comply with the employer's obligations under the Act. Collective redundancies caused by the employer's insolvency must now also be notified to the Minister. This means all collective redundancies are subject to a 30-day notification period before they take effect, including where the employer is insolvent. The Companies Act 2014 has also been amended to improve the quality and circulation of information to employees as creditors as well as ensuring remedies for transactional avoidance are more accessible to creditors.
On foot of the Act's commencement, I recently signed new Regulations (S.I. 324 of 2024) setting out what information is required in a notification of proposed collective redundancies. These Regulations also took effect on 1 July 2024.
I have also introduced changes to assist employers in complying with their obligations under the Act.
Since July, employers can notify the Minister of proposed collective redundancies by electronic means, as well as by registered post or hand delivery.
My Department has also published an optional template form to help ensure that all information required is provided in a collective redundancy notification. This form (Form CRN1) is available on my Department's website at enterprise.gov.ie/en/publications/notify-the-minister-of-a-proposed-collective-redundancy.html
Finally, my Department aims to publish an updated Information Handbook on the rights and remedies available to employees facing a collective redundancy situation in the coming weeks. The Information Handbook was first published in 2021 and provides clear, accessible information to employees. The updated Information Handbook will reflect the above legislative developments.
57. Deputy Seán Haughey asked the Minister for Enterprise, Trade and Employment the actions being taken to strengthen the Irish-owned exporting sector; and if he will make a statement on the matter. [30033/24]
View answerMy Department’s White Paper on Enterprise to 2030 sets out an ambitious vision for Ireland’s enterprise policy, seeking to secure a sustainable, innovative and high-productivity economy, with rewarding jobs and livelihoods in the period ahead.
Ireland’s position as a small economy means that it is essential for our economic resilience that Irish enterprises realise opportunities in global markets. As an agency of my Department, Enterprise Ireland (EI) is responsible for helping prospective and emerging exporters to build company scale and expand their reach.
In line with the White Paper, EI's Strategy 2022-2024 sets out a number of initiatives to create resilient, internationally focused Irish enterprises, and ambitious targets are set for export growth and market diversification of the EI client base. This includes growing the total value of exports reported by EI client companies on an annual basis and driving diversification with 70% of their exports going to destinations outside of the UK market. Companies supported by EI exported goods and services worth €34.6 billion in 2023, the highest level on record. The impact of this activity by EI client companies can be seen in the €39.3 billion spent in the Irish economy in 2023 which includes approximately €11.7 billion spent on payroll. The very positive results are a testament to the resilience and vision in the Irish enterprise sector and the Government’s policy to assist Irish business in that vision.
The White Paper sets a target of 2,000 new exporters by 2030. To help achieve this, work is underway to build a new exporter accelerator in Enterprise Ireland which will focus on building ambition, capability and market entry for potential first-time exporters. The new accelerator will work closely with the Local Enterprise Offices and will enable further progress with regard to the expansion of the LEO framework to extend direct financial assistance to small companies employing more than 10 and less than 50 employees in the manufacturing and internationally traded sectors with export potential.
Enterprise Ireland helps Irish businesses to become global leaders in their field, by supporting them to explore international exporting opportunities to drive global growth. My Department, through EI, has a range of supports to help companies develop market entry plans, fund market research and upskill leadership teams. Businesses working with EI benefit from international trade missions, trade event programmes, and buyer visits, which are instrumental when growing and scaling internationally.
Based in 39 offices across 30 countries, Enterprise Ireland Market Advisors have the local knowledge and connections to guide companies in growing their export sales. Market Advisors are a vital source of market intelligence that can be accessed when planning a go-to-market strategy. They offer practical on-the-ground help and can provide connections to potential customers, partners, and important local stakeholders.
EI’s Market Research Centre (MRC) supports businesses with extensive market data, in-depth market analysis and tailored insights, so they can take a strategic approach to decisions and gain a competitive edge. The MRC has the largest repository of specialist, online business databases in Ireland, providing access to the most authoritative market research resources.
EI also offer a range of market access grants to assist companies that are starting out on their export journey. These include the Digital Marketing Capability grant, the Evolve strategic planning grant, the Market Discovery Fund, and the Strategic Marketing Review.
Looking ahead, I am very conscious of the current and emerging uncertainties for business in global markets. My Department is working with EI to help their clients anticipate and transform their business models to address areas such as sustainability, digitalisation, financing and skills.
58. Deputy John Brady asked the Minister for Enterprise, Trade and Employment the amount of inward investment into County Wicklow over the past five years, in tabular form; and if he will make a statement on the matter. [30489/24]
View answerIDA Ireland is now in the final year of its 2021-24 strategy, “Driving Recovery and Sustainable Growth”, and has already achieved or is on track to achieve all targets set across the five strategic pillars of the strategy: Growth, Transformation, Regions, Sustainability, and Impact.
The IDA 2024 Mid-Year results announced this week indicate a strong performance across foreign direct investment indicators set out in this strategy, as targets for the total number of investments, job approvals, regional investment and number of sustainability projects supported by the agency are now exceeded.
The strong regional performance delivered during 2023, where there were 132 investments outside of Dublin, representing 54% of total investments, continued this year with 74 of the 131 investments supported by IDA in the first half of 2024 are planned for regional locations.
The Mid-East Region comprises counties Kildare, Louth, Meath and Wicklow. There are 118 IDA client companies in this region, employing 20,429 people. The FDI performance in the region has been consistent over the past five years with employment among IDA clients increasing by 14%. The total number of regional jobs in IDA client companies at end 2023 stands at 163,471.
The Mid-East has a significant ecosystem of well-established companies across Technology, Life Sciences, International Financial Services and Engineering & Industrial Technologies. It has also won significant investment in the Food and the Film sub-sectors.
The IDA is working to strengthen and deepen the linkages between multinational companies, SMEs, the research ecosystem, and the wider economy through clustering and building linkages with indigenous enterprise, and RD&I collaboration.
At Government level we are focused on competitiveness and ensuring that Ireland is the best place in Europe to invest and grow. Successful implementation of national policy and strategies developed in recent years, including the Government’s White Paper on Enterprise, National Development Plan Review, Climate Action Plans, Review of the National Planning framework etc is required to underpin future success in attracting inward investment and safeguard Ireland’s attractiveness as destination for FDI.
The number of IDA client companies in County Wicklow and the numbers employed from 2019-2023 are shown in the table below:
|
2019 |
2020 |
2021 |
2022 |
2023 |
|
|
Number of IDA Client Companies |
23 |
23 |
23 |
21 |
21 |
|
Total number of Jobs |
2,652 |
2,794 |
2,824 |
2,771 |
2,673 |
59. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment when additional financial provision will be introduced to assist local authorities, particularly those councils with a small rates base and also community groups to develop enterprise centres, as such workspaces are of extreme importance in enabling the establishment and growth of small businesses; and if he will make a statement on the matter. [30117/24]
View answerBalanced regional enterprise development is a priority for me and this Government. I am keenly aware of the contribution that various hubs play around the country - from community hubs to enterprise centres and remote-working hubs; they provide support to entrepreneurs, start-ups, SMEs and allow people to live and work in their own communities.
My Department has provided significant funding to support enterprise centres and hubs through a number of funding schemes including the Regional Enterprise Development Fund, Border Enterprise Development Fund and Regional Enterprise Transition Scheme. Over €126 million in funding has been approved under those schemes, which have provided both capital expenditure and programmatic supports for enterprise centres. The local authorities have supported many of those funded projects as project partners or by contributing funding.
The Department of Rural and Community Development has also invested substantial funding with over €150 million for development of remote working facilities through programmes such as Connected Hubs, the Town and Village Renewal Scheme and the Rural Regeneration and Development Fund. Successful projects are developed in collaboration with local authorities and communities.
The Deputy will be aware that the Department of Rural and Community Development, the Western Development Commission and my Department are working together to develop the first National Hub Strategy. The content of the strategy has been informed through a number of workshops and in consultation with hub managers, local authorities, Regional Enterprise Plan Programme Managers and other stakeholders. The Strategy, which I expect will be published in the coming months, will include measures to support the development and sustainability of enterprise hubs, remote working spaces and community hubs.
The local authorities are very well placed to understand hub development and several local authorities have introduced initiatives to support hubs. The County Monaghan Hub Network, which is supported by Monaghan County Council, for example, aims to maintain the sustainability and growth of hubs across county Monaghan. The Kildare Hub Strategy 2022-2025, meanwhile, sets out a plan for the development of Kildare’s hub infrastructure over the lifetime of that strategy.
Under the €145 million Smart Regions Enterprise Innovation Scheme, co-funded under the European Regional Development Fund, my Department will continue to support regional enterprise projects including development of new enterprise hubs and centres and expansion of existing facilities.
Local authorities have been integral in the development of hubs. While the local authorities are independent, Government will continue to work collaboratively with the local authorities to deliver innovative projects including enterprise centres.
60. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 62 of 23 May 2024, when the second national plan on business and human rights will be published; and if he will make a statement on the matter. [29344/24]
View answerI recognise the importance of businesses having a focus on human rights in their operations as there is a strong expectation from society to do so. Businesses have reacted well since Ireland launched its first National Plan on Business and Human Rights (2017 - 2020) towards the end of 2017.
Ireland became the 19th state in the world to develop a National Plan. In December 2021, a review of the implementation of the Plan was brought to Government. It found that over 91% of commitments under the Plan were achieved, with plans to implement the remainder.
Stakeholder engagement is an integral part of developing the second National Plan. Following the public consultation process last year, a stakeholder forum was created bringing together representatives from Government, civil society, trade unions and business. The second meeting of the forum was held on 6 June 2024 where the draft proposed actions were discussed. Officials from the Department of Foreign Affairs and my Department are working on incorporating the feedback from forum members into updated actions to be included in the new Plan.
The new Plan is expected to cover a multi-annual timeframe as was covered in the first Plan. It is intended to build on the achievements of the first National Plan, while reflecting new developments in the international understanding of business and human rights, including new EU instruments. It will also align with the commitment in the Programme for Government to ‘ensure that the Action Plan on Business and Human Rights is further developed to review whether there is a need for greater emphasis on mandatory due diligence’. The ambition is to finalise and publish the new plan this year.
