Written Answers Nos. 54-73
54. Deputy Ged Nash asked the Minister for Enterprise, Trade and Employment to set out the legislative action the Government plans to take to combat union-busting and to protect workers from victimisation in the workplace as part of the proposed Action Plan on Collective Bargaining; and if he will make a statement on the matter. [43578/24]
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.
My Department has received legal advice on minimum wage and collective bargaining elements of the Directive and work is underway to ensure transposition by the deadline of November 2024. It is expected that the transposition deadline will be met.
One of the goals of the Directive, under Article 4, is to increase the number of workers who are covered by collective bargaining on wage setting. The Directive requires Member States with a collective bargaining coverage below 80%, such as Ireland, to establish an action plan to promote collective bargaining by the end of 2025. We intend to publish the action plan ahead of that date. While no new legislation is required for transposition of the collective bargaining elements of the Directive, legislation may be separately be considered as part of Ireland’s action plan.
In order to begin work on developing Ireland’s action plan, a working group was established with the social partners at the end of 2023 and has been meeting regularly and constructively. This year as part of the group’s work, the social partners have provided my Department with proposals, including proposals from ICTU on protections and access for trade union officials in the workplace. I discussed Ireland’s action plan with the social partners at the LEEF Subgroup on Employment and Enterprise in September.
To ensure full and detailed consideration of implications of the significant proposals received to date for inclusion in Ireland’s action plan, on 15th October I informed the Cabinet that my Department will publish the proposals for consultation and observations from interested stakeholders across the wider enterprise and employment sectors.
I am aware that some of the proposals may raise legal and policy issues. The outcome of the consultation process will help guide my Department in finalising the proposed actions, both legislative and administrative, which may be considered for inclusion in the Ireland’s action plan next year.
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.
55. Deputy Gary Gannon asked the Minister for Enterprise, Trade and Employment given recent research from Social Enterprise Ireland revealing challenges for social enterprises in accessing local enterprise office financial supports, whether eligibility guidelines will be reviewed to give commercially viable social enterprises the same access as private businesses; and if she will commit to a timeline for this review. [37651/24]
View answerSocial Enterprises are an important and growing part of Ireland’s entrepreneurship ecosystem, creating jobs and stimulating local economic activity and are recognised as an integral part of Ireland’s broad enterprise policy landscape.
My colleague Minister Humphreys launched Trading for Impact 2024-2027 - Ireland's National Social Enterprise Policy, last July, to build on the achievements of Ireland's first social enterprise policy. This policy was developed following widespread consultation with stakeholders, including officials in my Department
Social enterprises are eligible for Local Enterprise Office (LEO) assistance, provided they operate on a commercial basis and meet the eligibility criteria of the scheme for which they wish to apply.
The LEOs’ range of lean, green and digital supports are designed to help businesses save time, money and energy and remain competitive into the future.
Many social enterprises may be eligible for supports such as the free Digital for Business consultancy, Grow Digital Voucher, free Green for Business consultancy, the Energy Efficiency Grant, and the LEO suite of training and mentoring programmes.
There has been positive engagement between officials in my Department, the Social Enterprise Republic of Ireland, and officials in the Department of Rural and Community Development who have responsibility for social enterprise policy. This engagement has led to the arrangement of a webinar last month for training purposes for LEO staff on the topic of social enterprises.
The Deputy will also be aware of the National Enterprise Hub which provides a centralised signposting service for over 230 Government or agency supports in areas such as decarbonisation, digitalisation, skills development and innovation. I would encourage social enterprises to also use this new service.
58. Deputy James O'Connor asked the Minister for Enterprise, Trade and Employment if he is concerned regarding the high cost of energy prices for businesses; what actions his Department is taking outside of those announced in Budget 2025; and if he will make a statement on the matter. [43555/24]
View answerThis Government has adopted an proactive approach to supporting Irish businesses across multiple crises over the last number of years. It is important to acknowledge the challenges that firms have faced over the last number of years, and I am aware of the concerns of businesses facing increased energy costs. As part of Budget 2024, this Government provided a €257 million package for my Department in the form of the Increased Cost of Business (ICOB) grant. My Department has to date provided €252m to Local Authorities to support almost 75,000 businesses. This scheme was designed to help SMEs.
The latest data available from the Central Statistics Office shows that there has been a significant improvement in wholesale electricity prices. The price of wholesale electricity in August of this year was 5.6% lower than in August 2023, and 74% lower than the peak recorded in August 2022. The Wholesale Price Indices for Energy Products – that is, fuels purchased by the manufacturing industry – fell by 5.4% over the year to August 2024. Whilst energy costs have fallen from their peak, I recognise that they are still above historic norms.
Building on the successes of the ICOB scheme, Budget 2025 included a €170m Power Up grant for my Department, providing further financial support to c.40,000 hospitality and retail businesses. I will shortly launch applications for the Power Up grant. My Department will ensure that the funding is administered and paid to eligible firms before the end of this year. Payments will be administered through the local authorities, as was the case with ICOB. This will bring the total amount of grant aid to Irish businesses to close to €430m in 2024 alone. The Power Up grant, in tandem with the enterprise tax package, provides for total support for businesses of €386m in Budget 2025.
More broadly, the Taoiseach chaired a Competitiveness Summit on 2nd September. In particular, the Summit focused on the need to increase infrastructure delivery, and in this regard, the additional €750 million in capital expenditure announced in Budget 2025 in relation to electricity infrastructure is very welcome. This will aid Ireland’s long-term competitiveness, benefiting large and small firms alike.
I also recognise that there are other, non-energy costs that are impacting firms. My Department, in collaboration with the Department of Social Protection, assessed the cumulative impact of changes to working conditions earlier this year. On foot of the findings from this assessment, a range of measures were brought forward to assist businesses in adjusting to these increased costs as well as to improve the cost competitiveness of firms more generally. The measures included increases to the Employer PRSI threshold, increases in the lending limit for Microfinance Ireland from €25,000 to €50,000, as well as improvements to schemes such as the doubling of Innovation Grants to €10,000, and increases in the Energy Efficiency Grant Scheme to €10,000 with grants of up to 75%, doubling of the Trading Online Voucher and improvements to the Digital for Business Consultancy Scheme.
These actions demonstrate the Government’s commitment to Irish business. I will continue to monitor developments in the business environment and in particular, developments in business costs in considering any future action.
60. Deputy Paul Murphy asked the Minister for Enterprise, Trade and Employment if he is planning to abolish sub-minimum wages, as recommended by the Low Pay Commission and the ESRI; and if he will make a statement on the matter. [43534/24]
View answerThe National Minimum Wage Acts allow for lower, or sub-minimum rates of the minimum wage for those employees aged under 20. The rates that can apply are as follows: for those aged 19, 90% of the prevailing rate, for those aged 18 it is 80% and for those aged 17 and under it is 70%.
As the Deputy is aware, in 2022, the then Tánaiste and Minister for Enterprise, Trade and Employment asked the Low Pay Commission to examine these sub-minimum youth rates and to make recommendations on whether the rates should be retained, abolished or amended.
In March 2024 the Low Pay Commission recommended the abolition of sub-minimum rates.
These recommendations were accompanied by a background research report by the ESRI. The ESRI report is a technical one, and the ESRI did not make any recommendations on the abolition of these rates.
The Low Pay 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.
I am doing just that, and I am giving the Commission’s findings full consideration. My Department has commissioned an economic impact assessment of the Low Pay Commission’s recommendations.
While the ESRI study provides valuable information on the incidence and characteristics of sub-minimum employment in Ireland, it stops short of modelling the impact of making changes to youth rates.
The economic impact assessment will independently evaluate the economic impact of possible changes to the sub-minimum wage regime in Ireland by:
• Modelling the impact of making changes to youth rates on firms of different size and in different sectors and regions, and
• Examining any potential unintended impacts of making changes to youth rates, such as increased unemployment of younger workers and the possibility of young people exiting formal education in favour of entering the workforce.
This is a complicated and nuanced issue. It is important that we give it the full care and deliberation it requires, and to not rush into a decision that could have unintended consequences, for young people and for employers. Government will make a decision on these rates after the economic impact assessment is completed.
In the meantime, it is important to remember that the National Minimum Wage will increase by 80 cent to €13.50 on 1st January 2025. This is an increase of 6.3%, ahead of wage growth and inflation forecasts. Workers on sub-minimum rates of the National Minimum Wage will also see their wages increase on the 1st January; as the current system of youth rates is based on a percentage of the full minimum wage.
62. Deputy Jennifer Murnane O'Connor asked the Minister for Enterprise, Trade and Employment for a report on the implementation of the South East Regional Enterprise Plan; and if he will make a statement on the matter. [43434/24]
View answerBalanced regional enterprise development is a key focus for me and this Government as set out in the White Paper on Enterprise. My Department contributes to this agenda in several ways, including through the development, implementation and oversight of nine Regional Enterprise Plans, or REPs.
The South-East REP is implemented at a regional level by a Steering Committee made up of stakeholders from Carlow, Kilkenny, Waterford and Wexford. Patsy Carney is Chairperson of the South-East REP Steering Committee.
My Department oversees implementation of the REPs at the national level. A meeting of the National Oversight Group for the REPs, where implementation across all REPs will be discussed, is planned for Wednesday 6th November. I have decided, in consultation with key stakeholders in the REPs initiative, to extend the current plans for one year to the end of 2025 to allow for further implementation of current objectives and actions.
On Wednesday, Minister Calleary attended the most recent South-East Steering Committee online. The agenda was full and included updates on the implementation of the REP and various funded projects, as well as the work in the region regarding offshore wind and Smart Specialisation.
Some highlights of the South-East REP include:
• SEAM Research Centre, of South-East Technological University (SETU), has secured €4.8 million funding under the Technology Gateway Programme of Enterprise Ireland. This phase 3 Technology Gateway Programme is co-funded by the European Regional Development Fund and Southern Regional Assembly.
• Walton Institute at SETU announced the launch of COALESCE, a pioneering initiative that aims to improve the efficiency and sustainability of energy grids and data and telecommunication networks through a new multidisciplinary, international staff exchange programme.
• The South-East is continuing its work to prepare the region to take advantage of the economic opportunity presented by offshore wind. Officials from the Offshore Wind Strategy Unit in my Department hosted the first meeting with Offshore Wind Working Groups in September 2024. It was attended by my officials, and representatives from the South-East, West and North-West, and South-East REPs.
Since 2017, my Department has approved over €150 million in funding to develop regional enterprise ecosystems through the Regional Enterprise Development Fund and other schemes administered by Enterprise Ireland. In total the South-East region has secured over €8.2 million through these funds for eight innovative projects across the Engineering, Financial Services, Sustainability and GreenTech, and Life Sciences sectors.
Up to €145 million has been secured for the Smart Regions Enterprise Innovation Scheme, co-funded under the European Regional Development Fund, which will support projects aligned to the Regional Enterprise Plans. The Scheme will support the development of innovative services through local infrastructure, innovation clusters, services to SMEs and early-stage feasibility and priming research.
I understand there will be a pipeline of applications from the South-East and I hope to announce the initial batch of successful projects from across the country shortly.
63. Deputy Pádraig O'Sullivan asked the Minister for Enterprise, Trade and Employment the number of businesses in Cork city and county that have registered for, and drawn down, the increased cost of business grants since the scheme's criteria were widened in May; the value of payments for city and county, in tabular form; and if he will make a statement on the matter. [43413/24]
View answerThe Increased Cost of Business Scheme (ICOB) has successfully paid out €244m to date to 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.
In answer to the Deputy's question, I can report the following statistics for Cork City and County.
To date, Cork City Council has paid out over €14m to eligible businesses. 3,602 businesses received over €9m in the first ICOB payment and 1,896 businesses in the retail and hospitality sectors received over €5m in the second ICOB payment.
To date, Cork County Council has paid out over €15m to eligible businesses. 5,531 businesses received over €9.5m in the first ICOB payment and 2,819 businesses in the retail and hospitality sectors received over €5m in the second ICOB payments.
I recently announced the Power Up grant Scheme which has a budget of €170m. Power Up is a €4,000 grant that will be available to businesses in the hospitality and retail sectors that received a second payment under the Increased Cost of Business Scheme and who continue to meet the eligibility requirements.
1,896 businesses in the retail and hospitality sectors who received the 2nd payment of the ICOB grant in Cork City Council and 2819 business in those sectors who received the ICOB grant in Cork County Council are in line to receive €4,000 if they continue to meet the eligibility criteria.
|
Local Authority |
First ICOB approvals |
Amount of first ICOB payment out |
Second ICOB payment |
Amount of Second ICOB payment out |
Total paid out |
|
Cork City |
3,602 |
€9,208,673 |
1,896 |
€5,162,522 |
€14,371,195 |
|
Cork County |
5,531 |
€9,843,869 |
2,819 |
€5,236,194 |
€15,080,063 |
67. Deputy Niamh Smyth asked the Minister for Enterprise, Trade and Employment for an update on the supports available to businesses with the rising cost of energy in running a business, particularly those in the hospitality sector, which has seen a number of closures recently. [43400/24]
View answerI am very aware of the difficulties the hospitality sector continues to face right around the country due to the costs associated with doing business. SMEs are crucial to our towns and villages. The Increased Cost of Business scheme this year alone has successfully paid out over €244 million to 75,000 SMEs, including two payments to over 38,000 SMEs in the retail and hospitality sector.
In recognition of the importance of the hospitality and retail sectors, I announced the Power Up Grant with a budget of €170 million as part of Budget 2025. The Power Up Grant builds on the success of the Increased Cost of Business Scheme. This grant is for businesses in the hospitality, retail and beauty sectors who received a second payment of the ICOB grant. Up to 39,000 of those businesses are now in line to receive a €4,000 Power Up Grant once they continue to meet the eligibility requirements.
I have also introduced a range of other supports that are aimed at assisting SMEs, including those in the hospitality sector.
I also introduced changes to the Local Enterprise Office Energy Efficiency Grant to make it more attractive to SMEs. The Energy Efficient Grant supports capital investment by businesses to reduce carbon emissions based on energy efficiency projects. The scheme supports companies to reduce their carbon emissions and overall energy costs by accelerating the adoption of low carbon technologies or processes identified through a Green for Business, Green Start or SEAI Energy Audit. The grant now offers 75% of project costs, up to a maximum of €10,000. Applications are open since 12 July.
The LEO Digital for Business consultancy assists businesses in understanding digitalisation and its benefits, and developing a digital roadmap for the business, contributing to the overall target of basic digital intensity for small businesses. Digital for business is free with no cost to the applicant.
On 4th September the Grow Digital Voucher was launched. Under this new offer, the funding available has been increased to up to €5,000 and the eligibility criteria expanded to cover a wider range of digital interventions available to a broader range of businesses compared to the Trading Online Voucher.
I launched the National Enterprise Hub on 10 July 2024, it is a new all-of-government service, funded through my Department and operated by Enterprise Ireland. It is staffed by expertly trained advisors and is focused on helping businesses access a range of government supports.
Separately, while the 13.5% VAT rate applied to the hospitality sector remained unchanged following the Budget, there were a number of enterprise tax measures announced in Budget 2025 which will be of relevance to businesses operating in the sector. These include:
• Changes to the CGT Retirement Relief to support intergenerational transfers;
• Raising the VAT registration threshold to €85,000 for goods and €42,500 for services;
• Enhancements to the Small Company Start Up Relief;
• Increasing the Small Benefit Exemption Limit to €1,500, and the number of benefits allowable from 2 to 5 annually;
• A €125 increase in the Earned Income Tax Credit.
69. Deputy Jennifer Murnane O'Connor asked the Minister for Enterprise, Trade and Employment how many businesses in each of Carlow and Kilkenny will be eligible for the power up grant announced in Budget 2025; and if he will make a statement on the matter. [43433/24]
View answerI recognise that businesses operating in the retail and hospitality sectors continue to face higher costs with running their business, that is why I announced the Power Up Grant as part of Budget 2025. The Power Up grant has a budget of €170m.
This grant builds on the success of the Increased Cost of Business Scheme which has delivered €244m to date to businesses to 75,000 SMEs, including over 38,000 SMEs in the retail and hospitality sectors.
Under the Power Up Grant, those retail and hospitality businesses that received a second payment as part of the Increased Cost of Business Scheme and continue to meet the eligibility criteria are in line to receive a grant of €4,000. Business in the hospitality and retail sectors that received their first rates bill in 2024 may also be eligible. Officials in my Department are currently working on finalising details and implementation of the scheme.
In relation to your specific query regarding Carlow and Kilkenny please note that :
514 Carlow businesses have received the second ICOB payment and may be eligible to register for the Power Up Grant.
804 Kilkenny businesses have received the second ICOB payment and may eligible to register for the Power Up Grant.
The Local Authorities are administering the scheme on behalf of my Department and the relevant businesses will receive an email from the relevant local authority with details on how to register for this grant. Eligible businesses should register for the grant as soon as possible once the scheme goes live.
70. Deputy Pádraig O'Sullivan asked the Minister for Enterprise, Trade and Employment if he is satisfied that savings resulting from the work of the Injuries Resolution Board are being passed onto insurance policy holders; and if he will make a statement on the matter. [43412/24]
View answerThe Injuries Resolution Board’s Annual Report 2023 showed how the organisation has delivered savings of over €75 million in avoided costs due to personal injury claims being resolved through its non-adversarial model rather than proceeding to litigation.
It is important to acknowledge that there has been a significant reduction in the cost of injury claims through the Personal Injuries Resolution Board since this Government prioritised reform of the insurance sector via the ‘Action Plan for Insurance Reform’.
The median Injuries Resolution Board award in 2023 was €11,650, down 37% from 2020.
In 2023, 42% of awards made by the Injuries Resolution Board were valued at €10,000 or less, compared to just 12% of awards in 2020.
We have also seen a substantial decrease in the volume of injury claims. 20,263 personal injury claims were received by the Board in 2023, down 35% on the number of claims received in 2019.
My Department led on the reform of the Personal Injuries Assessment Board (PIAB) – a key action under the Action Plan for Insurance Reform through the Personal Injuries Resolution Board Act 2022.
The Act introduces new functions for the Board including, expanding the types of cases it can assess, giving the agency an enhanced research and reporting role, strengthening its powers to combat fraud and introducing mediation as a new service for settling personal injury claims.
Therefore, it is imperative that we see that the savings arising from the work of the Injuries Resolution Board in reducing the cost and volume of personal injury claims are being passed onto insurance policy holders.
I am not fully satisfied that this is happening and I again challenge the insurance industry to do this.
72. Deputy Ruairí Ó Murchú asked the Minister for Enterprise, Trade and Employment the State’s response to the proposed Biosecure Act in the United States, to include the measures being taken to address the concerns raised by it; and if he will make a statement on the matter. [43543/24]
View answerThe US Biosecure Act seeks to address national security risks associated with biological manufacturing and the biotechnology sector. The Act imposes restrictions on certain foreign companies and activities that are considered potential threats to U.S. biosecurity, particularly in the context of bio-manufacturing, research, and development.
I am advised that the implications for companies operating in Ireland, given the specific terms of the Act, are minimal but we remain vigilant. I am confident, also, that those businesses which serve the public procurement needs of US authorities operating from Ireland will adapt to ensure their offering complies with the new US legislation. In this regard, it is reported that many US-based life sciences companies are already adjusting their operations with Chinese partners, diversifying the geolocation of their partnerships, and adding background checks for partners in response to the Act.
My Department will seek to ensure that any U.S. regulatory changes do not disadvantage EU-based companies and as Ireland has excellent relations with the U.S., we will engage constructively with U.S. authorities on the matter, should the need arise.
73. Deputy Niamh Smyth asked the Minister for Enterprise, Trade and Employment for an update on the IDA’s efforts to attract inward investment to Cavan and Monaghan; and if he will make a statement on the matter. [43399/24]
View answerRegional development is a key element of this Government's enterprise policy and under the IDA's 2021-2024 Strategy, the Agency is targeting at least half of all investments to regional locations. In that regard, the IDA supported 132, or 54%, of investments outside of Dublin in 2023 and, in the first six months of this year, supported 131 investments, with 74, or over 56%, planned for regional locations. There were 9 IDA supported companies with employing 821 people in Cavan, and 6 companies employing 283 people in Monaghan at the end of 2023.
Under the IDA’s Regional Property Programme, the Agency has completed the construction of an Advance Building Solution in Monaghan which is being actively promoted to clients of the IDA, Enterprise Ireland and the LEOs. The IDA has also appointed a contractor to deliver an Advance Building Solution in Cavan. The the main contractor is on site at the IDA Cavan Business & Technology Park with a projected building completion by summer’s end 2025.
IDA Ireland continues to actively promote Cavan and Monaghan as part of the wider Border Region value proposition, seeking to build on the strengths and competencies of the Region in Life Sciences, Technology and Services sectors.
