Louise O'Reilly
Ceist:109. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment his plans for ensuring greater economic regional development, specifically in the mid-west region. [23115/24]
Amharc ar fhreagraRegional Development
Ceisteanna (109)
Freagraí scríofa
Balanced economic regional development is a key focus for this Government and requires a whole-of-government approach. Activity supporting economic development around the country is driven by the local authorities, central Government Departments and a wide range of state agencies and offices.
My Department contributes to this objective through a range of activities as set out in the White Paper on Enterprise, including through the work of the enterprise agencies and Local Enterprise Offices (LEOs).
Enterprise Ireland’s strategy has set targets of creating 45,000 new jobs by 2024 and that over two-thirds of new jobs will be created outside Dublin. Enterprise Ireland made payments of €12.7 million to client companies in the Mid-West region in 2023, and an additional €3.8 million towards infrastructural investments in the Mid-West region. This investment has coincided with employment growth of 2.2% during 2023 for Enterprise Ireland supported companies, with 1,852 jobs created in 2023 in the region. Total employment among Enterprise Ireland’s 467 supported clients stood at 25,273 in the Mid-West in 2023.
The LEOs promote entrepreneurship within their locality and help in the creation of new sustainable jobs in innovative businesses that contribute to economic development within their regions. The LEOs based in the Mid-West region have provided €1.98 million in grant assistance to 808 small businesses in 2023, which has contributed to supporting 5,020 jobs in the region.
Turning to Foreign Direct Investment, the IDA has a target for half of all investments from 2021-2024 to be won in regional locations outside Dublin. IDA’s commitment to more balanced development in the Mid-West has seen consistent FDI performance in the region over the past five years with employment among IDA clients increasing by 20%.
Complementing the work of the enterprise agencies and LEOs are nine Regional Enterprise Plans (REPs), which focus on collaborative initiatives to develop the enterprise ecosystem in each region. Progress Reports on implementation, including for the Mid-West REP, were recently published and are available on my Department’s website.
My Department secured €145 million for the Smart Regions Enterprise Innovation Scheme, co-funded under the European Regional Development Fund, which will support enterprise development projects aligned to the REPs. Enterprise Ireland’s Mid-West Team based in Shannon is working with range of potential projects to ensure a pipeline of these projects.
As the Deputy will be aware, the Shannon Estuary Economic Taskforce was established in April 2022 to make recommendations to Government on the economic development potential of the Shannon Estuary region. The Taskforce Report was launched in Ardnacrusha, Co. Clare, on 8 July 2023 and includes recommendations relating to offshore wind energy, onshore renewable energy, security of energy supply and cost, transport, logistics and connectivity, and tourism. The Taskforce recommended that my Department coordinate the Government response to its action plan. The first implementation update was published on 21 December 2023 and the second implementation update is expected in the coming months.
In addition to the work of the enterprise agencies and LEOs, the White Paper on Enterprise notes the importance of clustering and proposes the establishment of a National Clustering Programme, with a target to fund five national cluster organisations by 2025. The Regional Technology Clustering Fund (RTCF) administered by Enterprise Ireland supports regional clusters across Ireland. In the Mid-West, the RTCF supports IDEAM, a digital engineering and advanced manufacturing cluster based in the Technological University of the Shannon.
Our Rural Future is the whole-of-government policy for sustainable rural development in Ireland. The policy was published in March 2021 and contains more than 170 commitments for delivery by government departments and their agencies. These measures support the economic, environmental, cultural and social development and wellbeing of rural communities.
As the Deputy can see, the Government is committed to balanced economic regional development and is pursuing this agenda across Departments and agencies.
Business Supports
Ceisteanna (110)
Pauline Tully
Ceist:110. Deputy Pauline Tully asked the Minister for Enterprise, Trade and Employment if he will consider reopening and readvertising the increased cost of business scheme; and if he will make a statement on the matter. [23294/24]
Amharc ar fhreagraFreagraí scríofa
I am very aware that SMEs have faced a number of economic shocks in recent years which have resulted in cost increases.
On May 15th, I, along with my Government colleagues, announced a substantial range of measures to reduce costs for small and medium sized businesses.
Included in these measures was the reopening of the ICOB portal from 15th May to 29th May, in order to allow rate paying business owners who have not registered to do so. We have received feedback that the process of registering is simple and quick.
As part of re-opening the ICOB scheme and given the greater impact that increased costs are having on the hospitality and retail sector, as noted in the DETE-DSP joint working paper titled ‘An Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland’, it has been agreed that business operating in these sectors will receive a second payment for approved businesses or a double payment for new registrations under this scheme.
The reopening of the scheme is being advertised on social media, local newspapers and local radio.
Employment Rights
Ceisteanna (111)
Cathal Crowe
Ceist:111. Deputy Cathal Crowe asked the Minister for Enterprise, Trade and Employment if he will provide an update on the implementation of the ERO for security officers; and if he will make a statement on the matter. [23046/24]
Amharc ar fhreagraFreagraí scríofa
On the 25th August 2023 the then Minister for Business Employment and Retail signed the Employment Regulation Order (ERO) for the Security Sector which came into force on 4th September 2023. The ERO provided for a wage increase to €12.90 per hour from that date. The full details of the ERO are available here: si-no-424-of-2023-employment-regulation-order-security-industry-joint-labour-committee-2023.pdf (enterprise.gov.ie)
Joint Labour Committees (JLCs) are independent in their functions. If a JLC adopts proposals for an ERO for a sector, it will submit them to the Labour Court for consideration. The Labour Court will then make a decision on the adoption of the proposals. If the Court decides to adopt the proposals, a copy will be presented to me and, if I consider it appropriate to do so, I will make an ERO giving effect to the proposals.
I have not received a proposal from the Labour Court in relation to a new ERO for the Security Sector. Should the Labour Court submit such a proposal, I will give it due and timely consideration.
Health and Safety
Ceisteanna (112)
Brian Stanley
Ceist:112. Deputy Brian Stanley asked the Minister for Enterprise, Trade and Employment the number of Health and Safety Authority on-site inspections carried out in 2024, in tabular form, by month and sector, with the non-compliance rate and reasons for non-compliance included; and if he will make a statement on the matter. [22902/24]
Amharc ar fhreagraFreagraí scríofa
The Health and Safety Authority, from 01 January 2024 to date, has conducted 3,673 inspections. The tables presented at the end of this response set out the number of inspections by month and by sector.
Health and Safety Authority inspectors, following an inspection may give advice either verbally or in writing, on how a duty holder can make improvements on health and safety in their workplace. The inspector may also take action if the inspector finds a duty holder is breaking the law or the inspector may stop work which is dangerous. Some of the enforcement actions that can be used include:
• A Report of Inspection setting out areas for improvement and advice about health and safety at work.
• An Improvement Notice or a Contravention Notice for breaches of the legislation giving you a period of time to make improvements.
• A Prohibition Notice where there is a risk of serious personal injury which will stop you doing something until you have made it safe to continue.
An Improvement Notice is a legal directive from an inspector requiring that certain improvements be carried out in a specified timeframe to comply with the law. In general, the more common reasons for issuing improvement notices include:
• Equipment/machinery/vehicles and their parts not adequately maintained,
• Entrances/exits/pathways obstructed,
• Failure to appoint Project Supervisor Construction Stage (PSCS) on construction projects,
• Failure to produce evidence of or satisfactory safety documentation such as safety statements, risk assessments, fire registers,
• Lack of or inadequate traffic management plans,
• Lack of/inadequate fall protection in place.
A Prohibition Notice is a legal instruction directing that a specified work activity be stopped due to the level of danger apparent in that activity during an inspection. In general, the more common reasons for issuing prohibition notices include:
• Inadequate scaffolding/Lack of edge protection on scaffolding,
• Use of unsafe equipment/machinery/vehicles e.g. lack of or inadequate Power Take Off (PTO) guard, use of excavators without working auxiliary aids,
• Lack of or inadequate fall protection,
• Lack of controls for dust/asbestos,
• Unsafe livestock handling practices.
In the timeframe available to respond to this PQ, the Health and Safety Authority was unable to report on detailed compliance rates. However, the Authority will forward the non-compliance rate details (% prohibition notices, % improvement notices, % written advices) across each sector to the Deputy within the next 10 days.
2024 Inspection numbers
|
Month |
# Inspections |
|
January |
886 |
|
February |
782 |
|
March |
614 |
|
April |
1082 |
|
May |
309 |
|
Total |
3673 |
|
January |
February |
March |
April |
May |
Total |
|
|
CONSTRUCTION |
140 |
183 |
107 |
246 |
69 |
745 |
|
AGRICULTURE, FORESTRY AND FISHING |
203 |
104 |
94 |
144 |
32 |
577 |
|
MANUFACTURING |
119 |
127 |
66 |
168 |
54 |
534 |
|
WHOLESALE AND RETAIL TRADE;REPAIR OF MOTOR VEHICLES AND MOTORCYCLES |
91 |
67 |
80 |
98 |
30 |
366 |
|
HUMAN HEALTH AND SOCIAL WORK ACTIVITIES |
64 |
58 |
46 |
74 |
26 |
268 |
|
ACCOMMODATION AND FOOD SERVICE ACTIVITIES |
107 |
55 |
43 |
30 |
6 |
241 |
|
TRANSPORTATION AND STORAGE |
38 |
50 |
38 |
59 |
23 |
208 |
|
WATER SUPPLY;SEWERAGE,WASTE MANAGEMENT AND REMEDIATION ACTIVITIES |
46 |
29 |
39 |
51 |
7 |
172 |
|
PUBLIC ADMINISTRATION AND DEFENCE;COMPULSORY SOCIAL SECURITY |
8 |
18 |
30 |
39 |
24 |
119 |
|
EDUCATION |
18 |
29 |
13 |
33 |
7 |
100 |
|
ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES |
10 |
19 |
28 |
27 |
3 |
87 |
|
MINING AND QUARRYING |
10 |
17 |
7 |
27 |
8 |
69 |
|
OTHER SERVICE ACTIVITIES |
7 |
3 |
9 |
35 |
5 |
59 |
|
PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES |
8 |
6 |
4 |
14 |
2 |
34 |
|
ARTS, ENTERTAINMENT AND RECREATION |
3 |
5 |
4 |
7 |
9 |
28 |
|
ELECTRICITY,GAS,STEAM AND AIR CONDITIONING SUPPLY |
6 |
5 |
4 |
9 |
2 |
26 |
|
INFORMATION AND COMMUNICATION |
3 |
2 |
1 |
13 |
1 |
20 |
|
REAL ESTATE ACTIVITIES |
2 |
3 |
5 |
1 |
11 |
|
|
FINANCIAL AND INSURANCE ACTIVITIES |
3 |
2 |
1 |
2 |
8 |
|
|
ACTIVITIES OF EXTRA TERRITORIAL ORGANISATIONS AND BODIES |
1 |
1 |
||||
|
Total |
886 |
782 |
614 |
1082 |
309 |
3673 |
Industrial Development
Ceisteanna (113)
Niamh Smyth
Ceist:113. 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. [22979/24]
Amharc ar fhreagraFreagraí scríofa
Regional development is a key element of the Government's enterprise policy and is fully reflected in the Strategies of our enterprise development agencies. In that regard, IDA Ireland is targeting at least half of all investments, that is 400 of 800, from 2021 to 2024 to regional locations.
The IDA Ireland figures at the end of 2023 showed there were 132 investments secured across regional locations during 2023, representing 54% of the overall figure for the year. The total number of regional jobs in IDA client companies now stands at 163,471 from an overall total of a little over 300,000.
The IDA Border Region comprising counties Donegal, Sligo, Leitrim, Cavan and Monaghan is home to 72 IDA client companies employing 10,173 people. The FDI performance has been consistent over the past five years with employment among IDA clients in the region increasing by 19%.
The Border Region has a significant ecosystem of well-established companies across Engineering & Industrial Technologies, Life Sciences, International Financial Services and Technology. Key IDA client companies in the region include Abbott, TCS, AbbVie Ultra Clean Technology, Wellman International, Saint Gobain, Boxmore Plastics, Terex MDS, Ex-Cel Plastics and most recently Volumetric Building Company who set up their Global Centre of Excellence in Monaghan and officially opened in May 2023.
The IDA will continue to actively promote Cavan and Monaghan as part of the wider Border Region value proposition, building on the strengths and competencies of the region with a focus on opportunities in the Life Sciences, Technology and Services sectors.
IDA Ireland has also recently completed the construction of an Advance Building Solution in Monaghan which is being actively promoted to potential IDA & EI clients. In addition, the main contractor is now on site at the IDA Cavan Business & Technology Park to deliver an Advance Building Solution in Cavan.
IDA Ireland will continue to collaborate closely with existing clients across the regions to retain and strengthen their presence through continued company transformation as well as pursuing new areas of opportunity for client companies. IDA will also continue to work closely with Enterprise Ireland and its indigenous base of companies to identify synergies, enhance clusters, participate in site visits and maximise benefits.
Labour Market
Ceisteanna (114)
Alan Farrell
Ceist:114. Deputy Alan Farrell asked the Minister for Enterprise, Trade and Employment to provide an update on his Department's efforts to address labour shortages in the hospitality sector; and if he will make a statement on the matter. [22754/24]
Amharc ar fhreagraFreagraí scríofa
My Department is working to support the efforts being undertaken by the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media and Fáilte Ireland, aimed at ensuring a co-ordinated approach to addressing labour and skills shortages within the tourism and hospitality sectors. The Tourism Careers team at Fáilte Ireland works to help the recruitment and retention efforts of businesses, as well as promoting exciting opportunities and careers in the Tourism and Hospitality industry.
According to the latest employment figures from the CSO’s Labour Force Survey, published on 22nd February 2024, total employment stood at 2.71 million in 2023 Q4, with 185,300 employed in the accommodation and food service sector. There are now more people employed in Ireland than ever before. As per the CSO Statistical Release on Monthly Unemployment from early May, the seasonally adjusted national unemployment rate was 4.4% in April 2024.
It is essential that Irish enterprise has access to an adequate pool of high quality, adaptable and flexible talent – in particular in the context of a tightened labour market. In order to meet the demand for skills, there is close collaboration across Government, in particular between the Department of Further and Higher Education, Research, Innovation and Science, its agencies and my own Department, as well as between Government, industry, and the education and training system, in order to build and retain a highly skilled workforce to serve the needs of the economy.
My Department operates the Government’s employment permits system which is highly responsive to areas of identified skills needs and labour shortages across the economy. The system is, by design, vacancy led and driven by the changing needs of the labour market. The employment permits system is managed through the operation of the critical skills and ineligible occupations lists which determine employments that are either in high demand or are ineligible for consideration for an employment permit.
In December 2023, following extensive engagement with industry representatives and stakeholders on the nature and extent of skills shortages, my Department announced a major expansion to the employment permits system, with 43 changes to the jobs eligible for an employment permit. This included 11 roles added to the Critical Skills Occupations List and 32 roles made eligible for a General Employment Permit. Demand for employment permits in Ireland is currently extremely high, with just over 30,000 permits issued in 2023, including 2,606 for the accommodation and food service sector. Demand remains high this year, with 9,832 permits issued in Q1 2024, including 636 for the accommodation and food service sector, providing another valuable stream of skilled labour for the Irish economy.
The Government continues to support the economy by creating the right environment for employment creation, through measures to boost the resilience, agility, competitiveness and innovation of businesses across the economy. This will also be supported through ensuring a balanced and inclusive recovery, through strategic investment in infrastructure and reforms that enhance our long-term capacity for growth, balanced regional development and by improving living standards.
These measures will work to support the broader economy and viability of the tourism and hospitality sectors, which in turn will work to enhance their attractiveness as career options.
Artificial Intelligence
Ceisteanna (115)
Cormac Devlin
Ceist:115. Deputy Cormac Devlin asked the Minister for Enterprise, Trade and Employment for a report on the role and work of the AI Advisory Council; and if he will make a statement on the matter. [23104/24]
Amharc ar fhreagraFreagraí scríofa
To support the implementation of the National AI Strategy, an AI Advisory Council has been established, chaired by Dr. Patricia Scanlon. The Council’s function is to provide independent expert advice to Government on artificial intelligence policy, with a specific focus on building public trust and promoting the development of trustworthy, person-centred AI.
Its first role is providing expert guidance, insights, and recommendations in response to specific requests from government.
Its second role is developing and delivering its own workplan of advice to government on issues in artificial intelligence policy, providing insights on trends, opportunities, and challenges.
Its third role is engaging in public communications aimed at demystifying and promoting trustworthy, person-centred AI.
The AI Advisory Council is a mechanism for expert advice and not a consultative or a representative forum. Therefore, its members represent themselves as individuals with relevant experience and expertise and not their employers or organisations of which they may be members.
The Council and its Chair are appointed for an initial period of two years from 2024-25.
The Council has met on three occasions so far in 2024 and has established a number of subgroups in line with its Terms of Reference.
The Council has established six subgroups with the intention of preparing papers on important topics related to the use of AI:
Biometrics in the Public Service in Ireland,
Electoral Integrity in Ireland and AI,
AI in Ireland's Creative Sectors,
AI and the Future of Skills and Work in Ireland,
Ireland's AI Ecosystem,
AI and Education in Ireland.
Legislative Process
Ceisteanna (116)
Paul Murphy
Ceist:116. Deputy Paul Murphy asked the Minister for Enterprise, Trade and Employment what specific date in early June is the National Minimum Wage (Equal Pay for Young Workers) Bill 2022 is to be reread the second time, as promised by the Minister (details supplied); when can we expect to receive the Low Pay Commission’s report on sub-minimum wage rates; and if he will make a statement on the matter. [23304/24]
Amharc ar fhreagraFreagraí scríofa
Government sought a timed amendment to the second reading of the National Minimum Wage (Equal Pay for Young Workers) Bill 2022 to allow for the conclusion of the Low Pay Commission’s examination of sub-minimum rates of the National Minimum Wage.
In 2022 the Low Pay Commission was asked to examine these rates and make recommendations on whether these rates should be retained, amended or removed.
The Low Pay Commission conducted an in-depth review of sub-minimum rates, and commissioned the Economic and Social Research Institute, ESRI, to conduct background research on the issue, under the terms of the Low Pay Commission and ESRI Research Partnership Agreement. This ESRI report “Sub-minimum wages in Ireland” was published in November 2023.
The study examines the incidence and the characteristics of employees that are paid below the full national minimum wage rate. It provides evidence on the number of employees, and the type of employees, that could be impacted by any changes made to the sub-minimum youth rates.
I am pleased to advise the Deputy that the Low Pay Commission has completed their review of this important issue and has submitted their report and recommendations on sub-minimum rates of the National Minimum Wage.
The Low Pay Commission’s report raises many important issues that I am giving full consideration to. The Commission’s recommendations will be brought to Government for decision in due course.
The Commission’s report will be published shortly.
Business Supports
Ceisteanna (117)
Ruairí Ó Murchú
Ceist:117. Deputy Ruairí Ó Murchú asked the Minister for Enterprise, Trade and Employment the funding that is being provided to support small and medium enterprises with the increased cost of business; and if he will make a statement on the matter. [23172/24]
Amharc ar fhreagraFreagraí scríofa
The Government is very aware that SMEs have faced a number of economic shocks in recent years which have resulted in cost increases and that is why we have allocated €257 million to the Increased Cost of Business (ICOB) scheme.
As you will know on May 15th, I, along with my Government colleagues, announced a substantial range of measures to reduce costs for small and medium sized businesses.
Included in these measures was the reopening of the ICOB portal from 15th May to 29th May, in order to allow rate paying business owners who have not registered to do so. We have received feedback that the process of registering is simple and quick.
You should be aware that as part of re-opening the ICOB scheme and given the greater impact that increased costs are having on the hospitality and retail sector, as noted in the DETE-DSP joint working paper titled ‘An Assessment of the Cumulative Impact of Proposed Measures to Improve Working Conditions in Ireland’, it has been agreed that business operating in these sectors will receive a second payment for approved businesses or a double payment for new registrations under this scheme.
Climate Action Plan
Ceisteanna (118)
Darren O'Rourke
Ceist:118. Deputy Darren O'Rourke asked the Minister for Enterprise, Trade and Employment to provide an update on industrial heat decarbonisation; the measures he is taking to decarbonise industrial heat; the supports he is providing for industry to decarbonise their heat sources; to report on the level of reduction of emissions reached to date given the target of 20% by 2025 and 45% by 2030; and if he will make a statement on the matter. [23296/24]
Amharc ar fhreagraFreagraí scríofa
Under the Climate Action and Low Carbon Development (Amendment) Act 2021, my Department has responsibility to reduce industry on-site emissions (manufacturing, including cement and alumina) by 20% by 2025 and 35% by 2030. The core interventions to address industry emissions in the first carbon and second budget periods are:
• implement energy efficiency measures on site to right-size energy demand;
• electrification of low temperature heat (under 150°C);
• prioritising bioenergy sources such as biomass and biomethane for high temperature heat;
• and construction material diversification and a public procurement mandate for low-carbon cement.
Enterprise Ireland and IDA Ireland are already working with client companies to drive the widespread adoption of decarbonised heat for industrial manufacturing, for example, through the Green Transition Fund. A budget of €55m for the fund is split into two streams, the Enterprise Emissions Reduction Investment Fund (€30m) and the Climate Planning Fund for Business (€25m) which will run through to the end of 2025. The Fund contains a range of supports for businesses, including capital support for investments in decarbonising heat used in manufacturing processes; vouchers to help companies prepare a plan for the low carbon and resource efficient economy of the future; as well as business development grants to explore new or improved products, services or processes in the areas of sustainability and decarbonisation.
Very large heat decarbonisation projects can be supported through Environmental Aid, available to client companies of Enterprise Ireland and IDA Ireland, and the enterprise development agencies are looking to support high ambition and high impact carbon abatement projects through this mechanism. The recent announcement by Diageo of their investment to dramatically reduce carbon emissions at St James's Gate is an example of this type of project.
In addition to a range of supports to promote energy efficiency, and the Sustainable Energy Authority of Ireland (SEAI) also supports the decarbonisation of industry heat through the Support Scheme for Renewable Heat, which provides grant or operational support for heat generated by renewable sources.
Small and medium manufacturers can also avail of the Energy Efficiency Grant from Local Enterprise Offices, which can provide up to €5,000 towards the cost of decarbonising heat use in manufacturing. I recently announced that the maximum grant under this scheme is now increased to €10,000.
There is now growing evidence of a decoupling of industry emissions from economic growth with emissions having decreased by 7.2% in 2022 relative to 2021 and overall, by 5.8% relative to 2018. Fuel switching from more carbon intensive oil and coal to lower carbon natural gas has been one of the drivers for the reduction to date. The Environmental Protection Agency have yet to release the national greenhouse gas inventories for 2023, but I would expect to see a further reduction in industry emissions in 2023. A further shift to electrification and low carbon heat sources will be needed to deliver on the national abatement targets for industry.
My Department will publish the Roadmap for the Decarbonisation of Industrial Heat in the coming weeks. It is based on the findings of the SEAI’s National Heat Study, and it will set out the key policy interventions to achieve the abatement targets for manufacturing emissions through energy efficiency and the displacement of fossil fuels in industry.
Departmental Data
Ceisteanna (119)
Richard Bruton
Ceist:119. Deputy Richard Bruton asked the Minister for Enterprise, Trade and Employment the number of business start-ups and business closures, both companies and unincorporated businesses; if he has considered a review of policy tools in the area of start-up, and early-stage resilience and survival of enterprises; and if he will make a statement on the matter. [23313/24]
Amharc ar fhreagraFreagraí scríofa
My Department continues to ensure that appropriate supports are available to businesses in Ireland throughout their lifecycle. Last week, I announced that the Government had agreed a range of measures with the aim of reducing costs for small and medium sized businesses. These measures represent agreement from across government on the need to support our SMEs and are central to our ability to build a broad-based and successful economy and wider society. Our small businesses are the backbone of our local economy and provide much valued employment in communities across the country.
I should clarify that the information available to my Department in relation to company incorporations and closures relates to entities registered with the Companies Registration Office (CRO). This does not include businesses operating as sole traders or unincorporated entities. In relation to incorporations in 2023, 22,384 companies were added to the register bringing the total number of companies on the register to 306,559. Companies can go out of business for a variety of reasons, including through application to the CRO to be voluntarily struck off the companies register, and in 2023 a total of 6,227 companies availed of this option. Companies are required to notify the Companies Registration Office when entering liquidation. In 2023, there was 2,389 notifications comprised of members voluntary, creditors voluntary and court ordered liquidations. The ratio of incorporations to liquidations in 2023 was 9:1 which demonstrates the attractiveness of Ireland as a place to do business.
In addition to the liquidation figures outlined, small and micro companies who are experiencing temporary financial problems can avail of a bespoke rescue process called the Small Companies Administrative Rescue Process, otherwise known as ‘SCARP’. The SCARP process allows relevant small and micro companies to restructure with the agreement of creditors; avoid liquidation; and ensures that creditors get a better outcome compared to a liquidation.
My Department works to ensure that the corporate landscape provides the necessary range of supports and appropriate regulatory framework to incubate and support new and existing businesses. These measures have included updating the Companies Act with a range of practical, pro-enterprise reforms such as proposals to
• provide for companies and industrial and provident societies to hold hybrid or fully virtual general meetings on a permanent basis,
• removal of the automatic loss of the audit exemption for small and micro companies in respect of a first instance of late filing with the Companies Registration Office, and
• implementing the recent revision of the monetary thresholds in the Accounting Directive which will reduce the regulatory/administrative burden related to corporate reporting for over 3,000 companies.
These initiatives will ensure that Ireland’s regulatory framework provides flexibility and is fit for modern business operating in an increasingly digital and virtual environment.
Insurance Industry
Ceisteanna (120)
Seán Haughey
Ceist:120. Deputy Seán Haughey asked the Minister for Enterprise, Trade and Employment for an update on the implementation of the Action Plan for Insurance Reform measures within the remit of his Department; and if he will make a statement on the matter. [23061/24]
Amharc ar fhreagraFreagraí scríofa
My Department has been involved in the Action Plan for Insurance Reform from the beginning. The actions that have been allocated to my Department under the Action Plan are:
As part of the Sub-Group of the Cabinet Committee on Economic Recovery and Investment to agree and publish an Action Plan,
As part of the Sub-Group of the Cabinet Committee on Economic Recovery and Investment to make a report to Government on progress by end of 2020,
As part of the Sub-Group of the Cabinet Committee on Economic Recovery and Investment to meet regularly, engage with stakeholders and publish progress of actions every six months,
Enhancing and reforming the role of the Personal Injuries Assessment Board,
Giving the Competition and Consumer Protection Commission more effective enforcement powers to punish and deter anti-competitive conduct, and
Creating an office within Government tasked with encouraging greater competition in the Irish insurance market.
Action 1
The Government's Action Plan for Insurance Reform was published on 8 December 2020. The Action Plan detailed 66 actions to bring down costs for business and consumers, introduce more competition into the market and prevent fraud.
Action 2
95% of these actions have now been implemented according to the 4th Implementation Report on the Action Plan for Insurance Reform which was published on 29 February 2024. Previous Implementation Reports have been published in July 2021, February 2022 and November 2022.
Action 3
I continue to attend the Sub-Group of the Cabinet Committee on Economic Recovery and Investment which oversees it.
Action 4
The Personal Injuries Resolution Board Act 2022 was enacted on 13 December 2022 and commenced through a series of commencement orders during 2023. The Act transforms the Injuries Resolution Board by enabling it to offer mediation, retain more cases, address the possibility of fraudulent claims and gives it a data gathering and reporting role. A mediation service is being introduced also on a phased basis. Mediation for employer liability injury claims commenced on 14 December 2023 and was extended recently to public liability injury claims on 8 May. Mediation is scheduled to commence for motor liability claims later this year. These measures are intended to facilitate an increase in the number of personal injury claims that may be resolved through the Board’s cost-efficient process and without recourse to litigation.
Action 5
With regard to those actions under the Action Plan which involved giving the Competition and Consumer Protection Commission more effective enforcement powers to punish and deter anti-competitive conduct, the Competition (Amendment) Act 2022 was signed into law on 29 June 2022. The Act, which I commenced on 27 September 2023, represents a step change in competition enforcement for Ireland. It provides for a new civil enforcement regime for the CCPC and ComReg under which breaches of competition law can be enforced through administrative sanctions with maximum fines of up to €10 million or 10 per cent of total worldwide turnover, whichever is the greater.
Action 6
Officials in my Department are members of the Office to Promote Competition in the Insurance Market, chaired by the Department of Finance, which seeks to encourage greater competition between existing insurers in the Irish market, including through expanding product offering and encouraging new entrants to enter the insurance market.
Business Supports
Ceisteanna (121)
Brendan Smith
Ceist:121. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment the measures he is taking to help small-scale manufacturing, retail and hospitality businesses meet the challenge of cost pressures; and if he will make a statement on the matter. [23087/24]
Amharc ar fhreagraFreagraí scríofa
This Government has adopted an active approach in supporting small-scale manufacturing, retail and hospitality firms across multiple crises over the last number of years. Over the two-year period prior to Budget 2024 a total of €12 billion was provided in cost of living and doing business supports, comprising a mix of permanent and one-off measures (most significantly the Temporary Business Energy Support Scheme). Budget 2024 also contained several measures which will support businesses facing increased costs.
• €257m in support announced through the Increased Cost of Business grant;
• the 9% VAT reduction for gas and electricity was extended for an additional 12 months, until the 31st of October 2024;
• the temporary excise rate reductions applying to auto diesel, petrol and marked gas oil were extended until the 31st of March 2024; and,
• an increase in VAT registration thresholds for SMEs to €40,000 for services and €80,000 for goods.
My Department, in collaboration with the Department of Social Protection, assessed the cumulative impact of changes to working conditions. This report was published on the 5th of March. One of the key findings of the report is that the implementation of the Living Wage is assessed to have the most significant impact on costs, with those operating in the hospitality and retail sectors expected to experience a much sharper increase in their costs compared to others. These two sectors account for 58% of all National Minimum Wage workers in Ireland. As modelled, the cost of employing a worker at the National Minimum Wage would increase in 2024 and 2026 by approximately 7% and 19%, respectively.
The Assessment recognises that businesses, particularly those in the retail and hospitality sector, may face rising costs. This motivated the recent introduction of a range of additional measures aimed at reducing costs for small and medium sized businesses as well as more generally to improve cost competitiveness of firms. These include:
• 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.
• Increasing the employer PRSI threshold from €441 to €496 with effect from 1 October 2024
• Reopening the Increased Cost of Business Scheme for another 14 days and launching a second phase of the Scheme targeted at businesses in the retail and hospitality sectors;
• Doubling the Innovation Grant Scheme from €5,000 to €10,000;
• Increasing the maximum amount available under the Energy Efficiency Grant Scheme to €10,000 and reducing the business contribution rate from 50% to 25%;
• Widening the eligibility for the Trading Online Voucher and doubling the grant to €5,000;
• Increasing the lending limit for Microfinance Ireland loans to €50,000 from €25,000;
• Widening the eligibility for the Digital for Business Consultancy Scheme;
• Launching a new ‘Ireland’s Best Entrepreneur Programme’ to encourage entrepreneurship;
• Launching the new online National Enterprise Hub for SMEs to access information on the wide range of Government business supports;
• Implementing an enhanced ‘SME Test’ by the Department of Enterprise, Trade and Employment in conjunction with the Department of An Taoiseach;
• Reviewing forthcoming ESRI research on the impact of Statutory Sick Leave before deciding on any further increases;
• Reviewing the proposed Roadmap for Increasing Minimum Annual Remuneration Thresholds for Employment Permits.
I would also emphasise the ongoing support my Department and its agencies provides for enterprise more broadly across Ireland, with a full range of programmes aimed at aiding firms to develop and grow. As set out in the White Paper on Enterprise 2022-2030, ‘our vision is for Irish-based enterprise to succeed through competitive advantage founded on sustainability, innovation and productivity, delivering rewarding jobs and livelihoods’ – the recently announced measures reflect this.
Trade Agreements
Ceisteanna (122)
Alan Farrell
Ceist:122. Deputy Alan Farrell asked the Minister for Enterprise, Trade and Employment his views on how the EU-New Zealand trade agreement will benefit Irish businesses; and if he will make a statement on the matter. [22753/24]
Amharc ar fhreagraFreagraí scríofa
The new Free- Trade Agreement between the EU and New Zealand, which entered into force on May 1st, is good news for the EU and for Ireland. The Agreement has been described as the most modern Free Trade Agreement text the EU has agreed to date, it includes unprecedented sustainability commitments, including respect of the Paris Climate Agreement and core labour rights in addition to provisions on gender equality.
The agreement sees the elimination of all tariffs on EU exports to New Zealand and the opening of the New Zealand services market in key sectors such as financial services and telecommunications. This Agreement reflects the joint ambition to offer new market opportunities to businesses and farmers on both sides, while reinforcing a joint commitment to sustainable trade. Irish food and drink producers will have unfettered access to the New Zealand market with no tariffs, and the special status of Irish products such as Irish Whiskey and Irish Cream liqueur is included in the Agreement.
Bilateral trade in goods between the European Union and New Zealand has risen steadily in recent years, reaching almost €9.1 bn in 2022. The EU is New Zealand's third-biggest trade partner. Goods and services exports from Ireland to New Zealand in 2022 reached a value of over €1 billion.
According to an impact assessment carried out on the FTA by the EU, trade between New Zealand and the EU is expected to grow by 30%, and the removal of tariffs alone saving businesses around €140 million in duties each year.
EU farmers will benefit from the elimination of tariffs on key EU exports such as pig meat, wine and sparkling wine, chocolate, sugar confectionary and biscuits. Meanwhile, sensitive EU agricultural products are protected with carefully designed tariff rate quotas.
It is vital that the EU continues to build on existing strong relationships with like-minded nations like New Zealand while ensuring sustainability is a central focus, and this agreement does just that.
This Free Trade agreement creates significant economic opportunities for Irish companies and farmers, with Enterprise Ireland making an early start on realising these opportunities with an Agritec, FDI food focused Mission to Fieldays, New Zealand’s annual National Agricultural show in June.