Written Answers Nos. 141-160
141. Deputy Marc Ó Cathasaigh asked the Minister for Transport his Department’s plans to streamline the process by which an Irish driving licence is issued following receipt of an Irish residence permit at the NDLS in order to reduce the current three-week timeline so that employees from overseas can enter the transport system workforce in a more timely manner; and if he will make a statement on the matter. [40787/24]
View answerThe safety of all Irish road users is the priority in considering applications to exchange third country driving licences for Irish licences. Vigilance is needed when processing an application, to ensure a fraudulent document has not been submitted and that a driving test was passed in the country which issued the licence.
There are various factors involved in the time taken to process exchange applications, including the submission of outstanding documents and information, such as medical or eyesight reports, or the physical driving licence itself for an online application. The most common delay for the NDLS in processing applications is in verification by the foreign driving licence authority of the driving licence. At times a response is received very quickly but sometimes confirmation can take a considerable period.
The average processing time for the NDLS to exchange a third country licence is 30 days.
142. Deputy Sean Sherlock asked the Minister for Transport if he will instruct the addition of more personnel to a local authority (details supplied) to speed up the provision of pedestrian safety crossings and enhancements. [40805/24]
View answerThere has been a significant increase in the number of filled positions across Local Authorities for technical roles in the delivery of Active Travel infrastructure, reflecting the substantial increase in funding and project delivery since 2020. Currently around 240 staff are in place across the 31 local authorities who are dedicated to the delivery of walking and cycling infrastructure projects around the country.
In 2022 and 2023, full allocation spend was achieved under the NTA's Active Travel Programme and it is therefore considered that the current level of recruitment within the Active Travel teams is sufficient; however, my Department and the NTA continue to monitor the staffing levels with a view to maintaining this optimum level going forward, ensuring a continuous high level of project delivery in the coming years.
143. Deputy Sean Sherlock asked the Minister for Transport the number of users on the Cork public scheme to date in 2024, and in 2023, broken down by station usage. [40809/24]
View answer144. Deputy Sean Sherlock asked the Minister for Transport the estimated cost of extending the public bike scheme in Cork to an area (details supplied). [40810/24]
View answerI propose to take Questions Nos. 143 and 144 together.
As Minister for Transport, I have responsibility for policy and overall funding in relation to cycling and public transport infrastructure, including the provision of funding to the National Transport Authority (NTA) for public bike-sharing schemes in Cork, Waterford, Limerick and Galway.
However, matters related to the day-to-day operations, management or expansion of public bike schemes are matters for the relevant local authorities, in conjunction with the NTA. As such, I have referred your question to the NTA for a more detailed reply. If you do not receive a reply within 10 working days, please contact my private office.
145. Deputy Mairéad Farrell asked the Minister for Transport the reason three US aircraft on contract to the US military were approved to land at Shannon Airport, on their way to and from eastern Europe and the Middle East (details supplied). [40820/24]
View answerThe Convention on International Civil Aviation signed at Chicago on 7 December 1944, and its associated annexes, established the framework for the operation of international civil aviation. Both Ireland and the United States are contracting parties to this Convention.
Article 5 of this Convention provides for the right of air operators of contracting parties to operate non-scheduled overflights and stops for non-traffic purposes (e.g., refuelling) in the territory of the other contracting parties.
This provision is provided for in Irish law in Article 3 of the Air Services Authorisation Order 1993.
Further to the above, the "open skies" Comprehensive Air Transport Agreement between the European Union and the United States provides the formal framework for commercial air transport operations between both territories.
This outlines how civil air operators from the United States, operating commercially, are allowed to overfly Irish sovereign territory or stop for non-traffic purposes at Irish airports.
Under the Air Navigation (Carriage of Munitions of War, Weapons and Dangerous Goods) Orders 1973 and 1989, the carriage of munitions of war on civil aircraft in Irish sovereign territory is prohibited, unless an exemption to do so is granted by the Minister for Transport.
An exemption granted under the Orders is for the carriage of the munitions of war through Irish sovereign territory, it is not an approval to land at any airport outside the State, this is a matter for the State to which it is being flown and their domestic procedures.
Applications for exemptions from US civil air operators, contracted by the US military, are generally in respect of the personal unloaded weapons of the military personnel that are being transported on the aircraft concerned. I can confirm that this was the case in respect of the flights to which the Deputy has referred and exemptions were granted.
146. Deputy Catherine Murphy asked the Minister for Transport if he has conducted a capacity review of his Department’s ability to deliver services that they are responsible for in the past ten years to date; the same of State bodies and agencies under his Department’s aegis; if he published those reviews; the number of recommendations implemented arising from the reviews and same for State bodies and agencies under his aegis; if the capacity review was outsourced; and if so, to whom and at what cost. [40847/24]
View answerI thank the Deputy for their question, which I have also referred to the agencies under the aegis of my Department for a direct reply.
My Department delivers a range of services directly to the public. The National Vehicle and Driver File (NVDF) database facilitates the collection of national revenues, supports driving licence production, maintenance of vehicle records and facilitates the implementation and enforcement of measures appropriate to road safety and vehicle and driver regulation generally. My Department also has responsibility for the regulation, monitoring, and licensing of the commercial road transport sector and issued approximately 750 road haulage operator licences and 300 road passenger transport operator licences in 2023.
My Department’s Marine Survey Office delivers an important service as the maritime transport regulator for the safety, security, environmental protection and living and working conditions for vessels and ports in Ireland and Irish ships abroad. This includes the publication of regular Marine Notices to publicise important safety, regulatory and other information relating to the maritime sector in Ireland.
Moreover, the Irish Coast Guard, provides a vital maritime search and rescue, maritime casualty, and pollution response service across our coastline.
In line with our Statement of Strategy Goal of “Organisational Excellence and Innovation ”, my Department is committed to continuously improving service delivery across all of these areas, to ensure that it is well-run and focused on quality delivery for our partners and citizens.
Digital Service Delivery: In 2023, my Department’s Information Services Division led a full Governance and Operating Model review and redesign, leading to the creation of the Digital Hub, a centralised structure, which brings together all core ICT and digital functions in the Department, including the NVDF function. This Digital Hub is overseeing technology strategy, technology and business operations, data management, data analytics and ICT project management. This includes an Enterprise Architecture function that will create a technology roadmap for the next 5 years, aligned to the needs of the Department, wider government, and our agencies.
One of the first outputs of this Hub has been that my Department launched a new online change of vehicle ownership service for private sales this year which allows the real-time transfer of vehicle ownership and provides peace of mind to both buyers and sellers. The online motor tax service is available 24/7 and collects roughly 84% of all motor tax receipts (amounting to approximately €750 million in 2023). Further digitisation projects for customer service are planned for delivery next year.
Good Governance: My Department encourages the bodies under our aegis to undertake ongoing reviews to ensure good governance. Under section 4.6 of the Code of Practice for the Governance of State Bodies which requires an annual self-assessment by our State Boards, my Department oversees that the self-assessment takes place and is confirmed by the Chair in an annual Code checklist response to the Department. Regarding the 3-year external evaluation also outlined in section 4.6 of the Code, my Department engages with our agencies to ensure that external Board reviews are undertaken and periodically writes to the Chairs of the agencies to remind them of that requirement.
My Department has also commissioned external reviews of its agencies to examine how best to improve delivery of their services now and into the future. More recently, in accordance with our obligations under the Code, my Department commissioned external independent reviews of both the Road Safety Authority and the Medical Bureau of Road Safety (MBRS). In the case of the MBRS, this review has examined the agency’s legislative basis, management and oversight structures, and capacity to continue to deliver within its current facilities. The recommendations that will come from this review will ensure that the agency is futureproofed and can continue to provide a high-quality service.
The Road Safety Authority review - the first such review of the organisation since its establishment in 2006 - aims to conduct a thorough and comprehensive examination of its organisational structures, funding model, service provision and strategic goals. This aims to ensure that the Authority is structured appropriately in the years ahead to fulfil its statutory mandate in the context of delivering the Government’s Road Safety Strategy 2021-2030 . The final report of the RSA Review will be brought to Government for decision this year.
Infrastructure Capacity: Under the aegis of the Major Projects Oversight Group of the Department of Public Expenditure, NDP Delivery and Reform, my Department has undertaken a number of reviews with the delivery agencies of the capability to deliver large-scale infrastructure projects and the resourcing requirements. As part of a wider analysis of the delivery capability of the public sector of the NDP, in 2022 my Department submitted an assessment of its Capital Programme Delivery Capability to the Department of Public Expenditure, NDP Delivery and Reform. This unpublished review gave an overview of the Department’s Capital Programmes and the structure, processes, and frameworks used to optimise the Department’s approach to delivering Transport projects in the National Development Plan.
Organisational Excellence: Structured reviews of the Department’s capacity to deliver policy and services are undertaken on a regular basis in the context of the strategic planning process. Action 20 of the Civil Service Renewal Plan (2014) provided for the implementation of a programme of organisational reviews, the purpose being to ‘embed a culture of regular and objective assessments of the capacity and capability of each Department to achieve its objectives and take the necessary action to close any gaps ’.
In light of this, the then Department of Transport, Tourism and Sport was the first Department to undertake an Organisational Capability Review in 2016, under the DPENDR framework (available to view here: www.gov.ie/pdf/?file=https://assets.gov.ie/19179/7c855e9ffe154077817b16e668aea77b.pdf#page=null) and later published its associated Action Plan (available to view here: www.gov.ie/pdf/?file=https://assets.gov.ie/19180/0b4877e50d354bfface6108277ea6406.pdf#page=null ).
Across 4 thematic pillars of ‘Investing in Our Team’, ‘Communications and Integrated Working’, ‘Stronger Strategic Focus’ and ‘Policy Implementation’, 14 Actions were identified to revitalise and rebuild the capability and capacity of the Department for the future. This led to several organisational improvements such as:
• Strengthening of our corporate functions across the HR Function, including workforce planning and professionalisation of Information Services, Finance and Communications Functions;
• renewed approach to business planning and internal and external communications,
• establishment of dedicated units to oversee overarching policy implementation (such as Brexit, EU matters, Climate) and
• strengthening of our approach to agency governance, including engagement with NewEra.
All of the Actions have been completed.
Certain areas within my Department are currently undertaking reviews of their capacity and capability with a view to delivering a transformed service into the future. The Irish Coast Guard (IRCG) Transformation Programme, due to be completed in 2025, is examining a number of aspects of the Coast Guard Service including strategy, structure, roles, culture and governance, to ensure the IRCG is best placed to deliver services into the future.
147. Deputy Seán Haughey asked the Minister for Finance if he will introduce individual savings accounts, similar to those in the United Kingdom, as a new savings vehicle; and if he will make a statement on the matter. [40760/24]
View answerI note the Deputy's query regarding individual savings accounts available in the United Kingdom. With regard to individual savings accounts, it will be of interest to the Deputy that my Department published the Terms of Reference for a review of Ireland’s funds sector - ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’ last year.
A draft report was submitted to me for consideration in recent weeks and this is in line with the Review’s Terms of the Reference. The review was wide ranging and examined a range of issues relevant to the funds sector.
I plan to publish the report of the review shortly.
148. Deputy Pa Daly asked the Minister for Finance if he would consider lowering the VAT rate for domestically and sustainably produced wood pellet products, firewood stove, pellet stove and pellet boilers. [40726/24]
View answer149. Deputy Michael Healy-Rae asked the Minister for Finance if a lower rate of VAT would be considered for firewood, wood pellets and wood briquettes (details supplied); and if he will make a statement on the matter. [40758/24]
View answerI propose to take Questions Nos. 148 and 149 together.
The VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT. Currently, Ireland has a standard rate of 23% and two reduced rates of 13.5% and 9%.
A reduced rate of 13.5% already applies to firewood and other solid fuels.
No decision was made in Budget 2025 to apply a further reduced rate of 9% to firewood/wood pellets and wood briquettes. If such a measure was proposed it would form part of the normal Budget and Finance Bill process where the cost and impact could be considered.
The Deputy should note that as with other VAT rate reductions, while the VAT charged must always be correct a company can increase the base price of a product so that the final consumer does not benefit from the VAT reduction.
Finally, I note the suggestion that lower VAT rates be applied to domestically produced renewable and sustainable fuel. In the application of VAT rates, the Directive does not provide discretion for Member States to consider the degree to which goods or services are sourced domestically or are sourced from other countries, nor does it allow different VAT rates to apply to goods depending on whether they are produced here or are brought into the State from elsewhere.
150. Deputy Pearse Doherty asked the Minister for Finance to outline the projected impact of BEPS pillar one and how it is accounted for in the revenue for each year between 2025 to 2030 in the economic and fiscal outlook presented on Budget day. [40773/24]
View answerThe Budget 2025 tax revenue projections incorporate a net negative €2 billion impact from both pillars from 2026 on.
As the Deputy will be aware, work is still ongoing on the finalisation of Pillar 1 of the agreement and so the forecasts presented at Budget time are unchanged from previous forecasts. The situation will be monitored by my Department and the estimate revised once greater clarity is available.
151. Deputy Matt Shanahan asked the Minister for Finance if he will examine the maximum threshold of investment in prize bonds and apply some preferential rate of tax treatment in order that such a savings fund could be accessed in the future to provide nursing care support where needed as in the case of a person (details supplied); and if he will make a statement on the matter. [40793/24]
View answerThe National Treasury Management Agency (NTMA) has informed me that they appreciate the desire to invest in State Savings products, including Prize Bonds. All such products are tax free, including at encashment. The NTMA advises that the present limits are already of a significant size for an individual as part of a savings portfolio, and it would be difficult to allow different limits for different groups of people. The limits for State Savings products are as follows:
Thus, an individual may save up to € 860,000 in State Savings products. All such products may be encashed at any time, without penalty or charge, and in the case of Fixed Term products, any Bonus payable will be as paid in accordance with Terms and Conditions.
152. Deputy Catherine Murphy asked the Minister for Finance if he has conducted a capacity review of his Department’s ability to deliver services that they are responsible for in the past ten years to date; the same of State bodies and agencies under his Department’s aegis; if he published those reviews; the number of recommendations implemented arising from the reviews and same for State bodies and agencies under his aegis; if the capacity review was outsourced; and if so, to whom and at what cost. [40837/24]
View answerMy Department has not carried out a capacity review in the last ten years. I would however mention an independent review of the Department’s performance that was carried out in 2010. The review examined the performance of the Department of Finance over the previous ten years. The conclusions of the review were published in a report entitled “Strengthening the Capacity of the Department of Finance”. This report was published in 2011, at a time when the Department of Finance was splitting into the Department of Finance and the Department of Public Expenditure and Reform.
In line with the Code of Practice for the Governance of State Bodies (2016) (‘The Code’), my Department carried out a Periodic Critical Review (PCR) of the Financial Services and Pensions Ombudsman (FSPO) in 2022. The PCR examined the way in which the FSPO operates and the resultant report, which is available on my Department’s website, includes 14 recommendations that the FSPO is in the process of implementing.
As Minister for Finance, I am required to issue a report every five years under Section 227 of the National Asset Management Agency (NAMA) Act 2009 (the “Act”) where I assess the extent to which NAMA has made progress towards achieving its overall objectives and whether the continuation of NAMA is necessary having regard to the purposes of the Act. Three reports have been prepared under section 227 of the Act. The first report was published in July 2014 and focused on NAMA’s performance during its start-up phase from 2010 to 2014. The report concluded that the continuation of the Agency was necessary for NAMA to achieve its objectives and it recommended that it accelerate asset disposals in order to advance repayment of its senior bonds. The second report was published in July 2019 and focused on NAMA’s performance from 2014 to 2018. The report concluded that NAMA had made extensive progress in achieving its overall objectives and that its continuation was therefore necessary. Noting the potential for NAMA to further contribute to housing delivery and to enhance its lifetime surplus, the report also recommended that NAMA continue its operations until end-2025. The third report assessed NAMA’s achievement of its objectives over the period from 2019 until the end of 2023. The report concluded that NAMA made extensive progress in achieving its overall objectives over this period and is on target to conclude its work by the end of 2025 through a phased and orderly wind down. The Section 227 reports are prepared by officials in my Department and are published on the NAMA website.
In 2017, the Credit Review Office (CRO) conducted an internal review and published a report entitled “A review and assessment of the Statutory Basis on which the Credit Review Office operates”. The CRO implemented 5 recommendations arising from the review.
The Home Building Finance Ireland Act 2018 includes a requirement for the Minister for Finance to review Home Building Finance Ireland’s performance and impact every two years. These reviews are called “Section 24 Reviews” and were published in 2021 and 2023. General recommendations have been implemented from these reviews plus 1 specific recommendation relating to a new product from the 2023 review.
In 2015, the Irish Fiscal Advisory Council (IFAC) appointed an independent peer review group to provide an independent evaluation of the Fiscal Council’s outputs in line with the Fiscal Council’s Strategic Plan 2014–2016. The review group members were Iain Begg, Lars Jonung and Michael G Tutty. The published report is entitled: “How is the Irish Fiscal Advisory Council Performing? An Independent Evaluation of the First Years of IFAC”. 18 recommendations were implemented arising from the review, the cost of which was €13,737 (excluding VAT).
In 2020, IFAC commissioned the Organisation for Economic Co-operation and Development (OECD) to conduct an external evaluation to assess the functioning of the Council with respect to its mandate under the Fiscal Responsibility Act 2012, its governance structures, how effectively it communicates its work and the impact of its work. The published report is called: “OECD Review of the Irish Fiscal Advisory Council”. 14 recommendations were implemented arising from the review. The review was funded by the European Commission under its Structural Reform Support Programme.
In the years 2018 and 2023, the Investor Compensation Company conducted internal assessments of organisational design and resourcing levels. 3 recommendations in each of the reviews were implemented. These reviews were neither published nor outsourced.
In 2015, the National Treasury Management Agency commissioned PwC to conduct a review of the State Claims Agency’s resourcing. The cost of the review was €69,970 (excluding VAT). 2 recommendations arising from the review were implemented. This review was not published.
In 2020, the Comptroller and Auditor General, as an independent, constitutional Officer, commissioned an independent external assessment of the Office’s performance against international standards and good practice. The peer review made 13 recommendations, 12 of which have been implemented. The cost of the review was €70,000 (excluding VAT).
In 2018, the then Minister for Finance appointed Ms. Niamh O’Donoghue to conduct a review of the staffing resources and structure, governance and operation structure of the Tax Appeals Commission (TAC). The report entitled “Review of the Workload and Operations of the Tax Appeals Commission” was published and the TAC implemented 21 recommendations arising from the review. The cost of the review was €4,524 (excluding VAT)
153. Deputy Brian Stanley asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the actions that be taken to improve the Flood Risk Management Climate Change Sectoral Adaptation Plan; and if he will make a statement on the matter. [40692/24]
View answerAs the lead agency with responsibility for Flood Risk Management, the OPW developed a Climate Change Sectoral Adaptation Plan for Flood Risk Management that was approved by Government in October 2019. The Plan which was developed as required under the National Adaptation Framework, 2018, sets out a long-term goal for adaptation in flood risk management, along with a set of objectives and adaptation actions aimed at achieving those objectives.
Adaptation in the context of flood risk management aims to help develop a resilient society with regards to the potential impacts of climate change on flooding and flood risk. This includes ongoing research and assessment of the potential impacts of climate change for flooding and flood risk, the consideration of these impacts in the development and implementation of ongoing and future flood risk management measures, and coordination with other sectors and local authorities as part of a whole of Government approach to sustainable and effective flood risk management.
The Office of the Comptroller and Auditor General (C&AG) has confirmed in its recent report that the Plan was developed in accordance with the Sectoral Planning Guidelines for Climate Change Adaptation (DECC, 2018) and with the requirements of the Climate Action and Low Carbon Development Act 2015.
The OPW has been progressing the actions set out in the Plan, and has completed or made significant progress against many of the actions, including:
• Completion and publication of the national indicative flood maps for potential future climate change scenarios, as well as for current risk, for river and coastal flooding.
• Completion of pilot projects for the preparation of Scheme Adaptation Plans for both new and existing flood relief schemes.
• Inclusion of the requirement for the preparation of Scheme Adaptation Plans for all new flood relief scheme projects since 2019 to ensure that the consideration of climate change and adaptation are embedded into the design process for new flood relief schemes.
• Commencement of a national programme to develop Scheme Adaptation Plans for existing flood relief schemes, to assess how these schemes may need to be adapted into the future.
• Amendment of the guidance for Cost Benefit Analysis and the economic appraisal of new flood relief schemes to allow for future increases in flood damages.
• The review of the national flood risk assessment, including the assessment of potential future flood risk, is nearing completion as part of the review of the Preliminary Flood Risk Assessment, as required under the EU ‘Floods’ Directive.
• The OPW is working with the Department of Housing, Local Government and Heritage to develop further guidance on the consideration of the potential impacts of climate change on flooding and flood risk as part of the planning and development management processes, and the application of the Guidelines on the Planning System and Flood Risk Management (2009).
• The OPW has held a series of almost 30 workshops with local authorities to discuss the application of the 2009 Guidelines and to highlight the need to consider climate change in planning and development management.
Progress on the delivery of all Sectoral Adaptation Plans is assessed annually by the independent Climate Change Advisory Council, made up of national and international experts in climate action. Progress with regards to the flood risk management sector has been identified by the Council as being ‘Good’ overall in each of the assessments undertaken since the assessments commenced in 2021.
The recent Report of the Office of the C&AG includes an infographic on page 74 presenting progress against the set of five interim indicators that were included in the Climate Change Sectoral Adaptation Plan for Flood Risk Management. Progress against two of the indictors is presented as 100% complete, and for a third as ‘not available’ on the basis that the data to measure progress is not yet available.
However, progress against the two remaining indicators must be considered in the relevant context, as provided in the text of the report of the C&AG.
In relation to indicator 3, a number of planned sequential steps were required prior to the production of adaptation plans for existing flood relief schemes, including a pilot study. These steps have been completed and the extension of the work to the remaining flood relief schemes is underway, with a target completion date of 2027, as set out in the Plan. As such progress against this indicator was intended to be end loaded in the period to end 2027, as provided for in the plan.
In relation to indicator 4, this relates to flood relief schemes set out in the 2018 Flood Risk Management Plans (FRMPs). Progress against this indicator could only realistically begin once construction of the flood relief scheme projects set out in the FRMPs had commenced. As such, progress against this indicator is aligned with the construction of these new schemes, which are progressing through the various stages required.
A new National Adaptation Framework was published in 2024, along with updated Sectoral Planning Guidelines for Climate Change Adaptation to inform new Sectoral Adaptation Plans that are to be completed by September 2025. The OPW will review and update the Climate Change Sectoral Adaptation Plan for Flood Risk Management as required and in line with the Guidelines and the Climate Action and Low Carbon Development (Amendment) Act 2021. This will include incorporating the recommendations around reporting arrangements made by the C&AG.
154. Deputy Brian Stanley asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the measures that will be taken to end non-compliance with national procurement rules in all bodies that receive Government funding; and if he will make a statement on the matter. [40694/24]
View answerPublic procurement practices are subject to audit and scrutiny under the Comptroller and Auditor General (Amendment) Act 1993, and the Local Government Reform Act 2014. Individual Accounting Officers are responsible for ensuring that their public procurement functions are discharged in line with the standard accounting and procurement rules and procedures and are publicly accountable for expenditure incurred. Individual contracting authorities are responsible for establishing arrangements for ensuring the proper conduct of their affairs, including conformance to standards of good governance and accountability with regard to procurement.
The OGP, a division of my Department, supports public sector bodies in meeting their public procurement obligations though the provision of a range of supports including procurement guidelines and template documentation, and also through proactive engagement with Government Departments and Agencies.
155. Deputy Catherine Murphy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he has conducted a capacity review of his Department’s ability to deliver services that they are responsible for in the past ten years to date; the same of State bodies and agencies under his Department’s aegis; if he published those reviews; the number of recommendations implemented arising from the reviews and same for State bodies and agencies under his aegis; if the capacity review was outsourced; and if so, to whom and at what cost. [40843/24]
View answerI wish to advise the Deputy that a deferred reply will be issued to her in respect of this Parliamentary Question, in line with Standing Order 51(1)(b).
156. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment the measures that will be implemented to combat digital addiction; if he has had discussions at the EU Council of Ministers and/or with Ministerial counterparts in other Member States, or with the British government, regarding such issues, and if an EU-wide strategy is being developed; and if he will make a statement on the matter. [40858/24]
View answerIn my capacity as Minister for Enterprise, Trade and Employment, I can speak to addictive interface designs, a deceptive practice used by online traders and a topic that has come to the fore in relation to consumer protection issues.
The EU Commission carried out a Digital Fitness Check, details of which have been recently published. The Fitness Check was carried out in response to concerns about the lack of digital fairness for consumers and to analyse if additional legislation or indeed other actions were needed to ensure equal fairness for consumers both on and offline.
The Fitness Check covers three Directives which between them represent the central elements of consumer protection law and they are:
• Unfair Commercial Practices Directive
• Consumer Rights Directive, and
• Unfair Contract Terms Directive
The Fitness Check shows the prevalence of deceptive practices that consumers face on a daily basis in their interactions online. They include difficulties with cancelling subscriptions, challenges with influencer marketing, the use of dark patterns and addictive interface designs. The latter occurs when platforms use persuasive design strategies to keep users engaged and addicted. Features such as likes on posts, images, stickers, endless scrolling and rewards are used. Young people, while often referred to as “digital natives” are most vulnerable to addictive type technologies.
The EU has put a substantial body of legislation in place designed to regulate the single market for digital products and services to protect consumers over the past 2 years. This includes the Digital Services Act, the Digital Markets Act, the Cybersecurity Act, the Data Act and the AI Act.
The protections for consumers provided for in these Acts are very broad and span safety, privacy, fairness and concentration of market power. The new legislation needs now to be bedded in, for public and private actors to become experienced with its implementation and to observe its operation in practice.
I welcome the findings of the Digital Fitness Check and they come at an opportune time, when we can observe both how this new legislation beds in and what gaps remain.
A priority of the new Commission will centre around Digital Fairness and my Department anticipates that the next Consumer Agenda, when published will contain measures to address these concerns and we will continue to participate fully in all negotiations relating to consumer protection.
157. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the degree to which his Department continues to pursue trade and market opportunities throughout the European Union and beyond with a view to compensating for losses arising from geopolitical activities or development; and if he will make a statement on the matter. [40904/24]
View answerIreland’s openness to trade, investment, people and ideas is a key national strength that has helped transform our economy and society into what it is today. In line with my department’s Trade and Investment Strategy – Value for Ireland, Values for the World, the Strategy seeks to proactively pursue trade, investment and marketing opportunities across the European Union and globally to strengthen Ireland’s trading and investment relationships.
Value for Ireland, Values for the World seeks to best-position Ireland’s trading and investments relationships in an uncertain world and is set against the backdrop of the major economic disruption from the war in Ukraine, Brexit, growing protectionism, global tax developments and geopolitical and trade tensions. Addressing these tensions requires greater effort and collaboration across the whole of government, bringing synergy, creativity and urgency to the existing suite of strategies across trade and investment.
Key initiatives include Trade Missions and Events, my department working with Enterprise agencies promotes Irish companies through international trade events globally, enhancing their visibility to potential buyers and partners in international markets. These efforts are part of a broader strategy to diversify export markets and reduce dependency on any single region, thereby cushioning Irish businesses against geopolitical uncertainties.
My Department has been working closely and collaboratively with colleagues from across government and state agencies, taking great care to ensure that this trade and investment strategy addresses not only trade and investment issues but also climate and sustainability issues by setting out our principled and holistic approach to trade policy.
158. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which his Department continues to pursue market opportunities for Irish products globally; and if he will make a statement on the matter. [40906/24]
View answerMy Department’s White Paper on Enterprise to 2030 sets out an ambitious vision for Ireland’s enterprise policy, to protect Ireland’s strong economic position. The vision of the White Paper is to enable Irish-based enterprise to succeed through competitive advantage founded on sustainability, innovation and productivity, delivering rewarding jobs and livelihoods.
2023 was a record year for Irish-owned business in terms of international sales. Companies supported by Enterprise Ireland (EI) achieved export sales of €34.57bn, an increase of 2% on the previous year, and growth occurred across almost all overseas regions and in individual industry sectors. Exports have more than doubled in the past ten years from €17.15bn in 2013.
Exports to the UK increased by 6% and the Eurozone increased by 2%. The Eurozone now accounts for 25% of all exports by EI client companies to a value of €8.6bn. In the UK, which is and will remain EI clients’ largest market, exports increased to €9.97bn or 29% of total exports despite the continued challenges of volatility and uncertainty. The North American Market remained strong during the year with a growth rate of 5% of exports and now accounts for €6.48bn or 19% of total exports. Technology and Services, and Industrial and Lifesciences were the fastest growing sectors, increasing by 10% to €8.49bn and 7% to €10.384bn respectively.
Total spend in the Irish economy by EI backed companies exceeded €39bn in 2023 with 225,495 jobs directly supported.
The very positive results reported by Enterprise Ireland 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.
Irish business faced another challenging year in 2023, with energy costs, inflation and supply chain disruption impacting the trading environment. However, with a record €34.57bn in export sales, Irish business has demonstrated its ability to absorb global economic disruption and continue to compete and win in international markets.
These are significant exports results and reflect the incredible innovation and ambition of the Irish enterprise sector demonstrating the continued strength of Irish products and services in international markets. This is due to Ireland’s hard-won reputation for quality, service and innovation.
Looking ahead, I am very conscious of the current and emerging uncertainties for business in global markets. My Department is working with Enterprise Ireland to help their clients anticipate and transform their business models to address areas such as sustainability, digitalisation, financing and skills.
159. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment to what degree he anticipates trade with the US to improve; and if he will make a statement on the matter. [40907/24]
View answerDeputy,
In line with my departments Trade and Investment Strategy – Value for Ireland, Values for the World, Ireland’s openness to trade, investment, people and ideas is a key national strength that has helped transform our economy and society into what it is today.
As Minister for Enterprise Trade and Environment I led two joint Enterprise Ireland and IDA Ireland Trade Mission to the United States’ East and West coast visiting New York, Boston, Los Angeles, San Diego, Silicon Valley, San Francisco and Seattle.
These Trade Missions took place on the back of record Irish exports of €34.57 billion in 2023. North America now accounts for 19% of all exports by Enterprise Ireland backed companies in 2023. In 2023, IDA Ireland secured a total of 248 investments of which 156 investors came from North American investors accounting for over 13,000 new jobs.
The US market, representing €5.9 billion in Enterprise Ireland client exports across various sectors in 2023, is crucial to Ireland's economic strategy. Irish companies are not only exporting products but also contributing to the US economy through foreign direct investment (FDI). With over $240 billion in FDI from Ireland to the US, Irish companies are making a substantial impact, creating jobs and generating significant economic activity.
The United States is our largest trading partner with the value of trade between the two countries at €301 billion in 2022. I can assure the deputy that my department working with our agencies will continue to work to strengthen and consolidate key strategic partnerships in the region with key IDA client companies and promote world class Irish companies with leading market positions in the US.
160. Deputy Pearse Doherty asked the Minister for Enterprise, Trade and Employment if businesses that have cases ongoing in relation to rates revaluation, but are tax-compliant, will be excluded from the energy subsidy scheme announced as part of Budget 2025; and if he will make a statement on the matter. [40757/24]
View answerThe Increased Cost of Business Scheme (ICOB) has successfully paid out €243m to date to almost 75,000 SMEs right around the country, including over 38,000 SMEs in the retail and hospitality sector. The ICOB scheme is now closed to registrations.
As part of Budget 2025, I announced the Power Up Grant which builds on the success of the Increased Cost of Business Scheme. This scheme is for businesses in the hospitality, retail and beauty sectors who received a second payment of the ICOB grant. These businesses are now in line to receive a €4,000 Power Up Grant once they continue to meet the eligibility requirements.
As was the case with ICOB, a business must be rates compliant, however, a business in a performing payment plan agreed by the local authority may be deemed to be compliant. This is a matter for the relevant local authority as they are best placed to understand the specific circumstances in relation to the arrears.
Under Power Up, it is intended that businesses who became rateable in 2024 may be eligible. Officials in my Department are currently working on final details and implementation of the new scheme.
