Michael Lowry
Ceist:92. Deputy Michael Lowry asked the Minister for Finance his views on a matter (details supplied); and if he will make a statement on the matter. [26592/24]
Amharc ar fhreagraTax Code
Ceisteanna (92)
Freagraí scríofa
The Government is conscious of the implications of fuel costs for all sectors of society. This is reflected in the fact that in 2022, in light of the acute impact rising prices were having on households and businesses, the Government provided for temporary cuts in excise rates which, inclusive of VAT amounted to 21 cents, 16 cents and 5.4 cents per litre on petrol, auto-diesel and marked gas oil, respectively.
These temporary cuts to excise rates were initially due to end on 31 August 2022, but following review and monitoring of fuel prices, were extended until February 2023, with a phased restoration of rates occurring in June and September 2023. A final restoration of excise rates was due to take place on 31 October 2023, but Budget 2024 provided for further extension until 31 March 2024, with phased restoration occurring in April and August 2024. The first of these restorations took place on 1 April 2024 adding 4 cent per litre to petrol, 3 cent to auto diesel and 1.7 cent to MGO.
While I recognise that households and business continue to face challenges, the Government must strike the appropriate balance between providing support and avoiding fuelling cyclical inflationary trends. The Government has provided relief to consumers and businesses since 2022 through a number of support measures including temporary reductions in excise. However, these measures were introduced as temporary support measures and involve an ongoing cost to the exchequer while they are retained.
The above said however, the Deputy should note that I will continue to monitor and review the position in the coming weeks in the context of the final phase of excise rate restorations due to take place in August 2024.
Insurance Industry
Ceisteanna (93)
James Lawless
Ceist:93. Deputy James Lawless asked the Minister for Finance the steps his Department is taking to address the issue of inordinate insurance rates for thatched roof domiciles (details supplied); and if he will make a statement on the matter. [26596/24]
Amharc ar fhreagraFreagraí scríofa
As the Deputy is aware, neither I nor the Central Bank of Ireland can interfere with the provision or pricing of insurance products due to the EU Solvency II Directive. However, through the Action Plan for Insurance Reform, the Government is committed to improving insurance costs and availability for householders, individuals and businesses across Ireland.
Notwithstanding this, I fully appreciate your constituents concerns, as thatch insurance is an extremely complex issue with no single action that can be taken to address the capacity issues in this market segment. However, a number of proactive steps have been taken to help address this matter. It is an issue that Government has raised in meetings with the insurance sector, and will continue to do so as we are aware of the concern it is causing owners. Furthermore, officials in my Department will continue to engage with providers in this segment in terms of helping to promote increased capacity.
In addition, as you will be aware the Department of Housing, Local Government, and Heritage (D/HLGH) produced a detailed fire safety report in November 2022 and subsequently published guidance in October 2023 titled Fire Safety in Thatched Properties aimed at reducing the risk posed by fire. In addition, since the beginning of 2024, D/HLGH has offered a pilot scheme to enable Department experts to visit thatch owners to help provide advice on safety and fire prevention, which your constituent has availed of. Officials from my Department have disseminated this information directly to insurance companies and facilitated a number of meetings between officials from D/HLGH and insurance representative groups. I also understand that my officials have been in contact with your constituent and have suggested further avenues that may be pursued.
Separately, Government continues to implement the Action Plan for Insurance Reform and is working to bring further competition into the Irish insurance market, including some recent new entrants. Maintaining a sustainable and competitive insurance market, including for thatched properties, remains a key priority for the Government and I wish to assure the Deputy that I will continue to work with my colleagues to ensure that the Action Plan continues to deliver for insurance consumers across the country.
Housing Schemes
Ceisteanna (94)
Éamon Ó Cuív
Ceist:94. Deputy Éamon Ó Cuív asked the Minister for Finance if it is intended to change the conditions in relation to loan-to-cost ratio attaching to the help-to-buy scheme to allow people who could got get a loan of 70% of the cost of the house due to limited income to avail of the scheme; and if he will make a statement on the matter. [26601/24]
Amharc ar fhreagraFreagraí scríofa
The Help to Buy (HTB) Scheme was introduced in 2017 with the purpose of assisting first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home. The relief is only available in respect of new builds, with a view to increasing the supply of new housing and stimulating demand.
The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (“DIRT”) paid in Ireland over the previous four years, subject to limits outlined in the legislation. Section 477C of the Taxes Consolidation Act outlines the definitions and conditions that apply to the HTB scheme and provides that the amount of relief available shall be the lesser of:
• €30,000,
• 10 per cent of the purchase value of a new home/self-build property; or,
• the amount of Income Tax and DIRT paid in the four years before application for the relief.
An increase in the supply of new housing remains a priority aim of Government policy. HTB is specifically designed to encourage an increase in demand for new build homes in order to support the construction of an additional supply of such properties. For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not been previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.
One condition of the scheme is that a qualifying first-time purchaser (“FTP”) must take out a loan in an amount equal to at least 70% of the purchase value of the property. In the case of a self-build property, the purchase value is the approved valuation of the self-build property, as approved by the lender in accordance with the Central Bank’s macro prudential rules. These rules stipulate the valuation should include the site value.
The HTB scheme, was initially intended to be limited to persons who had mortgages with a minimum LTV of 80%. However, Central Bank data indicated that a sizable number of first-time buyers take out a mortgage with a LTV of less than 80%. As such, it was decided to amend the scheme in the subsequent Finance Bill to set the minimum LTV at 70% so as to ensure that first-time buyers did not feel compelled to borrow larger amounts than they would have otherwise in order to qualify for the scheme.
Individuals who are in the position of being able to avail of a mortgage at a lower loan-to-value ratio than 70% are considered to have sufficient resources to meet the deposit requirements of the macro-prudential rules and thus less in need of assistance from the Exchequer. Lowering the LTV ceiling would therefore only increase dead-weight in the scheme. In fact, the independent review of the scheme which took place in 2022 recommended that the LTV be increased to 80% for purchasers availing of HTB.
It remains the case that, as with any tax expenditure, HTB will be kept under regular review. However, I have no plans at present to change the loan to ratio value under the scheme.
Tax Code
Ceisteanna (95)
Paul Kehoe
Ceist:95. Deputy Paul Kehoe asked the Minister for Finance if the Revenue Commissioners have, or will, investigate any tax liability persons might have following receipt of payments in lieu of making planning objections; and if he will make a statement on the matter. [26652/24]
Amharc ar fhreagraFreagraí scríofa
I am aware, from recent media reports, of reports of payments made to discourage or withdraw planning objections or to ‘compensate’ for inconvenience during developments. However, under Section 851A of the Taxes Consolidation Act 1997 Revenue is precluded from commenting on the tax affairs of an individual, business or entity, and so Revenue would not be in a position to provide comment on any specific investigations.
More generally, I am advised by Revenue that where a payment or other consideration, is received by any individual or business and has not been included in the appropriate tax return it has potentially serious consequences for that individual or business. I am further informed that Revenue is actively examining these practices as part of its compliance programme.
Revenue makes extensive use of taxpayer returns, third-party information, intelligence and other sources to identify non-compliance indicators and target their resources to prevent or confront tax and duty evasion, fraud, organised crime, illicit trade and smuggling. A wide range of third parties provide information and returns, thereby enabling Revenue to highlight discrepancies and prioritise compliance projects towards the areas of greatest risk.
I am informed that Revenue follows up rigorously on all available information that suggests there may be a risk of non-compliance with tax and duty related obligations. Revenue welcomes all information about potential wrongdoing related to taxes, duties or customs controls, and treats all such reports seriously and with utmost confidentiality.
Taxpayers have a range of opportunities to regularise their tax affairs, including self-review, self-correction and making an unprompted qualifying disclosure. These opportunities help taxpayers to get things right as easily and cost effectively as possible and reduce their exposure to a heavier level of penalty, to publication as a tax defaulter or to criminal prosecution. Full details of how to avail of these opportunities are set out in Revenue's Coe of Practice for Revenue Compliance Interventions, which is available at the following link: www.revenue.ie/en/tax-professionals/documents/code-of-practice-revenue-compliance-interventions.pdf
Individuals who have information about payments made to influence the planning process but did not come across this information in a work-related context, can report the details to Revenue, in confidence, by completing and submitting Revenue’s online tax evasion report form, available on their website at the following link: www.revenue.ie/en/corporate/assist-us/reporting-shadow-economy-activity/reporting.aspx
Where an individual comes across such information within a work-related context, perhaps while working in a construction or development company, this information can be reported to Revenue under the framework of the Protected Disclosures Act 2014 (as amended). A protected disclosure can be made online using Revenue’s protected disclosures reporting form, available at the following link: ros.ie/protected-disclosures-web/input/contact
It is important to note that those who make a report under the framework of the Protected Disclosures Act are afforded a range of important legal protections, including the safeguarding of their identity.
Tax Data
Ceisteanna (96)
Pearse Doherty
Ceist:96. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question Nos. 292 of 9 April 2024 and 194 of 11 June 2024, if the projected carbon tax annual revenue provided in Parliamentary Question No. 292 of 9 April 2024 is inclusive of VAT; if not, if the figures could be supplied inclusive of VAT; the reason the ready reckoner provides additional revenue of €160 million for a €7.50 increase in the rate of carbon tax per tonne while the additional carbon tax revenue in 2026, following a €7.50 increase in the rate of carbon tax per tonne, is €66.2 million; and if he will make a statement on the matter. [26724/24]
Amharc ar fhreagraFreagraí scríofa
The figures supplied in response to Parliamentary Question No. 292 of 9 April 2024 are projections of future carbon tax revenue yields estimated by the Department of Finance based on VAT exclusive excise data from the Revenue Commissioners and forward projected estimates of energy use from the Sustainable Energy Authority of Ireland (SEAI) which take into account agreed national Climate Action policy measures. The figures in the Department of Finance estimates are exclusive of VAT.
As set out in previous responses to the Deputy, the Department of Finance analysis is a point in time exercise and it is anticipated that updated energy use and excise data will be available in the coming weeks which the Department will use for further updated analysis on potential fiscal impacts arising from the climate transition.
I am advised by Revenue that the estimate contained in its Ready Reckoner is VAT inclusive. The estimate exclusive of VAT is €146m.
I am further advised by Revenue that the estimates provided in the Ready Reckoner are calculated by applying the €7.50 per tonne increase to the most recently available carbon data relating to mineral oils, solid fuels and natural gas, and do not take into account any behavioural change.
Tax Code
Ceisteanna (97)
Paul Kehoe
Ceist:97. Deputy Paul Kehoe asked the Minister for Finance his views on whether the upcoming changes to capital gains tax in the Finance Act will affect family businesses valued in excess of €10 million; if reinstatement of full relief will be considered; and if he will make a statement on the matter. [26725/24]
Amharc ar fhreagraFreagraí scríofa
As the Deputy will be aware, Section 598 of the TCA 1997 grants relief from CGT on disposals by individuals aged 55 and over of qualifying business or farm trade assets to persons other than that individual’s child. Where an individual is aged 55 to 65 and the consideration received on the disposal of such assets does not exceed €750,000, full relief is given. For an individual aged 66 or over, full relief is given where the consideration for the disposal of such assets does not exceed €500,000. Marginal relief may apply to disposals above those thresholds which serves to limit the CGT chargeable on disposal to one-half of the difference between the amount of the consideration and the relevant threshold. The thresholds apply lifetime limits of relief under this threshold.
Section 599 of the TCA 1997 grants relief to individuals who dispose of qualifying assets used in the course of a business or farm trade to a child, as defined in the section. Currently unrestricted relief is granted on the disposal of such assets by individuals aged 55 to 65 and the relief is capped at €3 million for individuals aged 66 or over.
Finance Bill 2023 increased the age at which the current €3 million threshold applies, from 66 to 70, and introduced a limit of €10 million on the value of qualifying assets in respect of which relief is available where such assets are disposed of by individuals aged 55 to 69 to a child. The new €10 million limit is informed by the recommendations made by the Commission on Taxation and Welfare in respect of retirement relief in their report published in September 2022. The new age limits and the €10 million cap will apply to disposals made on or after 1 January 2025.
I understand the importance of ensuring the smooth intergenerational transfer of such businesses from one generation to the next so that they can continue to grow and contribute to the economy. I have asked my officials to engage with relevant stakeholders to discuss their concerns. I will further consider this matter once this engagement has concluded.
Office of Public Works
Ceisteanna (98, 99)
Marc Ó Cathasaigh
Ceist:98. Deputy Marc Ó Cathasaigh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the number of contractors listed on the OPW’s contractors list over the past five years; the number of applications, the number of additions and the number of removals to the list each year; the value of projects assigned to each contractor; the number of projects per contractor that have been identified as being non-compliant in procurement, in tabular form; and if he will make a statement on the matter. [26612/24]
Amharc ar fhreagraMarc Ó Cathasaigh
Ceist:99. Deputy Marc Ó Cathasaigh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the criteria by which contractors are removed from the OPW’s contractors list; and if he will make a statement on the matter. [26613/24]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 98 and 99 together.
I am informed by the Office of Public Works, Property Maintenance Services that additional time is needed to collate the information requested by the Deputy. My officials will collate the information and reply directly to the Deputy as soon as possible.
Question No. 99 answered with Question No. 98.
Business Supports
Ceisteanna (100)
Ged Nash
Ceist:100. Deputy Ged Nash asked the Minister for Enterprise, Trade and Employment the rationale for excluding businesses which pay their rates through their rental/lease agreement with a commercial landlord, to that landlord, from the scope of the increased cost of business grant scheme; and if he will make a statement on the matter. [26541/24]
Amharc ar fhreagraFreagraí scríofa
As the Deputy will be aware, I announced the reopening of the ICOB grant scheme from May 15th until May 29th. This was to ensure those business owners who missed the original deadline had the opportunity register.
I made a change to the scheme that allows for a second payment to be made to businesses in the hospitality and retail sectors or a double payment for businesses in those sectors.
An important aspect of the ICOB grant scheme has been to directly involve the Local Authorities in the authorisation and payment processes, as they are closest to the commercial life within their cities and counties and work in the provision of supports to smaller enterprises via the Local Enterprise Offices. This is one reason why eligibility is in part determined by the rates system which is a good proxy for determining the scale and size of businesses.
Businesses who are tenants could register as long as they are the rate payer. It has been brought to my attention that some businesses have entered into arrangements with their landlords whereby the rent payable includes an amount towards rates, and their rates bill is in turn satisfied by the landlord. The legal position, (under section 4 of the Local Government Rates and Other Matters Act 2019, as well as the amendments introduced through the Historic and Archaeological Heritage and Miscellaneous Provisions Act 2023) is that tenants whose rent incorporates their rates obligation and is remitted by the landlord cannot be deemed to be the ratepayer.
The Deputy will appreciate that it would be inappropriate for me to attempt to interfere with existing commercial arrangements between small businesses and their landlords, in the context of the Increased Cost of Business Scheme. The priority has been to ensure that as many businesses as possible receive the money as quickly as possible.
Business Supports
Ceisteanna (101)
Robert Troy
Ceist:101. Deputy Robert Troy asked the Minister for Enterprise, Trade and Employment if there are any Government grants available to traders to refurbish showrooms (kitchens, bathrooms, and so on). [26555/24]
Amharc ar fhreagraFreagraí scríofa
Local Enterprise Offices (LEOs) play an extremely important role at local level, as part of a supportive ecosystem, providing their services direct to small businesses and promoting entrepreneurship within towns and communities across the country.
They are the first stop shop for every business in the country and provide a signposting service for all government supports available to small businesses and can provide information/referrals to other relevant bodies under agreed protocols.
LEOs offer direct grant assistance to small businesses, particularly to those who are starting up. However, it should be noted that grants that are specifically designed for growth or exporting are aimed at those in the manufacturing and internationally traded services sectors. These cannot be provided to businesses in areas such as personal services, local retail, or local professional services as it may give rise to displacement of businesses in the locality.
LEOs can provide consultancy and grants to small businesses of all sectors, in the areas of Green, Digital and Lean. These grants are focused on providing capital to assist in implementation of recommendations to digitalise or decarbonise a business. These grants also enhance the productivity and improve the competitiveness of small businesses and can help to identify cost savings within a business, freeing up capital to reinvest in other areas. This may be of relevance to the businesses in question.
As the Deputy will be aware, last month, Government agreed a range of measures to assist small and medium size businesses to reduce their costs. Some of the key measures by my Department include increasing the maximum amount available under the Energy Efficiency Grant Scheme to €10,000 and reducing the business contribution rate from 50% to 25%. We are widening eligibility for the Trading Online Voucher, extending it to all sectors up to 50 employees, while also modernising the eligible expenditure and doubling the grant to €5,000.
I would encourage any small business owner/manager to contact their Local Enterprise Office and speak to a business development advisor and avail of the many supports available.
Departmental Policies
Ceisteanna (102)
James Lawless
Ceist:102. Deputy James Lawless asked the Minister for Enterprise, Trade and Employment if it is possible to employ a non-EU national (South-African) who has a PPS number and who has applied for a working permit in Ireland (details supplied); and if he will make a statement on the matter. [26580/24]
Amharc ar fhreagraFreagraí scríofa
The Employment Permits Section of the Department informs me that all Non-EEA spouses or partners of Irish/EEA nationals who accompany their Irish/EEA spouse or partner to work and reside in Ireland should seek permission from the Department of Justice to enter and reside in the State.
Non-EEA spouses or partners of Irish/EEA nationals who are intending to work and reside in Ireland and who are unaccompanied by their Irish/EEA spouse or partner will require an employment permit. The required fee for an employment permit is waived if the employment permit application is in respect of a non-EEA national married to or in a civil partnership with an EEA national. The normal employment permit eligibility criteria applies.
It would be advisable for the individual in this case to contact the Department of Justice for information regarding their entitlement to work in the State.
It should be noted that the role of "medical secretary" is currently on the ineligible list for an Employment Permit and therefore an Employment Permit cannot be granted in respect of this role.
Further information on employment permit applications and eligibility is available on the Department's website through the link below:
enterprise.gov.ie/en/what-we-do/workplace-and-skills/employment-permits/employment-permit-eligibility/non-eea-nationals-married-to-or-in-civil-partnerships-with-eea-nationals/
EU Directives
Ceisteanna (103)
John Paul Phelan
Ceist:103. Deputy John Paul Phelan asked the Minister for Enterprise, Trade and Employment when the EU Platform Work Directive will be transposed; whether primary legislation will be required; and if he will make a statement on the matter. [26625/24]
Amharc ar fhreagraFreagraí scríofa
On 11th March 2024, Ministers at the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) confirmed the provisional agreement reached on 8 February 2024 between the Council’s presidency and the European Parliament’s negotiators on the Directive. Ireland supported the proposal for agreement.
The text of the agreement must now be formally adopted by both institutions. After the formal steps of the adoption have been completed, Member States will have two years to incorporate the provisions of the Directive into their national legislation. DETE will now consider what are the next steps in order to transpose the Directive in Ireland and whether primary legislation will be required.
EU Directives
Ceisteanna (104)
John Paul Phelan
Ceist:104. Deputy John Paul Phelan asked the Minister for Enterprise, Trade and Employment to outline Ireland's national position in respect of the EU's Platform Work Directive; and if he will make a statement on the matter. [26626/24]
Amharc ar fhreagraFreagraí scríofa
On 11th March 2024, Ministers at the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) confirmed the provisional agreement reached on 8 February 2024 between the Council’s presidency and the European Parliament’s negotiators on the Directive. Ireland supported the proposal for agreement.
The text of the agreement must now be formally adopted by both institutions. After the formal steps of the adoption have been completed, Member States will have two years to incorporate the provisions of the Directive into their national legislation. DETE will now consider what the next steps are in order to transpose the Directive in Ireland.
EU Directives
Ceisteanna (105)
John Paul Phelan
Ceist:105. Deputy John Paul Phelan asked the Minister for Enterprise, Trade and Employment if he will engage with industry to ensure that companies who solely rely on sales advisers to attract customers will not be inadvertently brought into the scope of the EU Platform Work Directive; and if he will make a statement on the matter. [26627/24]
Amharc ar fhreagraFreagraí scríofa
On 11th March 2024, Ministers at the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) confirmed the provisional agreement reached on 8 February 2024 between the Council’s presidency and the European Parliament’s negotiators on the Directive. Ireland supported the proposal for agreement.
The agreed Directive text strikes a balance between respecting national labour systems and ensuring minimum standards of protection for persons working in digital labour platforms across the EU.
The main compromise elements agreed revolve around a legal presumption which will help determine the correct employment status of persons working in digital platforms:
• Member States will establish a legal presumption of employment in their legal systems, to be triggered when facts indicating control and direction are found.
• those facts will be determined according to national law and collective agreements, while taking into account EU case-law.
• persons working in digital platforms, their representatives or national authorities may invoke this legal presumption and claim they are misclassified.
• it is up to the digital platform to prove that there is no employment relationship.
The text of the agreement must now be formally adopted by both institutions. After the formal steps of the adoption have been completed, Member States will have two years to incorporate the provisions of the Directive into their national legislation. DETE will now consider what are the next steps in order to transpose the Directive in Ireland. DETE will engage with all stakeholders, including in industry, in relation to any legislative changes which may affect them arising from transposition of the Directive into national law.
EU Directives
Ceisteanna (106)
John Paul Phelan
Ceist:106. Deputy John Paul Phelan asked the Minister for Enterprise, Trade and Employment to provide an update on work underway on the transposition of Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union; and if he will make a statement on the matter. [26628/24]
Amharc ar fhreagraFreagraí scríofa
The Directive on Adequate Minimum Wages in the European Union was published on 19th October 2022 and must be transposed by 15th November 2024. The Directive aims to ensure that workers across the European Union are protected by adequate minimum wages allowing for a decent living wherever they work.
The Directive includes three sets of measures:
1. One of the goals of the Directive is to increase the number of workers who are covered by collective bargaining on wage setting. It will require Ireland to develop an action plan to enhance collective bargaining coverage by the end of 2025.
2. To ensure minimum wages are set at adequate levels, the Directive also requires countries with statutory minimum wages, as in Ireland, to put in place clear and stable criteria for minimum wage setting, indicative reference values to guide the assessment of adequacy, and to involve social partners in the regular and timely updates of minimum wages.
3. The Directive provides for improved enforcement and monitoring of the minimum wage protection established in each country. The Directive introduces reporting by Member States on its minimum wage protection data to the European Commission.
My Department has received legal advice on the minimum wage elements of the Directive and work is underway to ensure transposition by the deadline of November 2024. Legal advice is that Ireland’s current minimum wage setting framework, namely the Low Pay Commission, is largely already in compliance with the provisions of the Directive.
A technical group has been established with Department officials and the social partners to examine what is required to implement the collective bargaining elements of the Directive. My Department has also requested legal advice as to whether any legislative change is required in order to transpose these elements into Irish legislation by the transposition deadline at the end of the year.
Appropriate legislation to transpose the Directive will be brought forward in due course, following receipt of the aforementioned legal advice and further consultation with the social partners.
EU Directives
Ceisteanna (107)
John Paul Phelan
Ceist:107. Deputy John Paul Phelan asked the Minister for Enterprise, Trade and Employment his views on whether collective bargaining systems will be required for all direct engagement employers in Ireland as a result of Section 25 of the Directive which sets out that Member States (with collective bargaining coverage rates below 80%) need to put action plans in place to progressively increase the collective bargaining coverage rate, and what is the timeline considered for implementation of such a plan and systems; and if he will make a statement on the matter. [26629/24]
Amharc ar fhreagraFreagraí scríofa
The Directive on Adequate Minimum Wages in the European Union was published on 19th October 2022 and must be transposed into Irish law 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.
Article 4 of the Directive, Promotion of Collective Bargaining on Wage Setting , aims to promote collective bargaining on wages in all Member States. The Directive requires Member States in which the collective bargaining coverage rate is less than 80% to provide “for a framework of enabling conditions for collective bargaining” and to publish an Action Plan to promote collective bargaining. It should be noted that the 80% threshold is an indicator triggering the publication of an Action Plan, rather than a mandatory target to be reached. The deadline for the Action Plan to be submitted to the Commission is the end of 2025. However, it is intended to publish it ahead of that date.
The European Commission's Expert Group Report on the transposition of the Directive published last November was clear that the design of the framework of enabling conditions and the content of the Action Plan is up to Member States, in consultation with the social partners.
Therefore, a technical working group has been established with Department officials and the social partners to consider the content of the Action Plan. The group will consider what policy changes may be included in Ireland's Action Plan.
My Department has also requested legal advice as to what legislative change, if any, is required in order to transpose this article of the Directive into Irish legislation by the transposition deadline.
The consideration of the recommendations of the LEEF Final Report on Collective Bargaining will also be an important input to our Action Plan.
EU Directives
Ceisteanna (108)
John Paul Phelan
Ceist:108. Deputy John Paul Phelan asked the Minister for Enterprise, Trade and Employment his views on the impact of the transposition of Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 will have on direct engagement employers in Ireland, and if sufficient time will be given to direct engagement employers to adequately introduce a new system given that the deadline for the transposition of this Directive is 15 November 2024; and if he will make a statement on the matter. [26630/24]
Amharc ar fhreagraFreagraí scríofa
The Directive on Adequate Minimum Wages in the European Union was published on 19th October 2022 and must be transposed into Irish law 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.
Article 4 of the Directive, Promotion of Collective Bargaining on Wage Setting , aims to promote collective bargaining on wages in all Member States. The Directive requires Member States in which the collective bargaining coverage rate is less than 80% to provide “for a framework of enabling conditions for collective bargaining” and to publish an Action Plan to promote collective bargaining. It should be noted that the 80% threshold is an indicator triggering the publication of an Action Plan, rather than a mandatory target to be reached. The deadline for the Action Plan to be submitted to the Commission is the end of 2025. However, it is intended to publish it ahead of that date.
The European Commission's Expert Group Report on the transposition of the Directive published last November was clear that the design of the framework of enabling conditions and the content of the Action Plan is up to Member States, in consultation with the social partners.
Therefore, a technical working group has been established with Department officials and the social partners to consider the content of the Action Plan. The group will consider what policy changes may be included in Ireland's action plan.
My Department has also requested legal advice as to what legislative change, if any, is required in order to transpose this article of the Directive into Irish legislation by the transposition deadline. At present, there is no proposal for a new industrial relations system that would impact on direct engagement employers.
The consideration of the recommendations of the LEEF Final Report on Collective Bargaining will also be an important input to our Action Plan.
Pharmacy Services
Ceisteanna (109)
John Paul Phelan
Ceist:109. Deputy John Paul Phelan asked the Minister for Enterprise, Trade and Employment to provide the starting point for the estimated calculation on a report (details supplied); and if he will make a statement on the matter. [26631/24]
Amharc ar fhreagraFreagraí scríofa
The Biopharma sector is central to Ireland’s economic success and has been for many years, and I very much welcome the report from the Expert Group on Future Skills Needs (EGFSN), Skills for Biopharma: Researching and Forecasting the Current and Future Skills Needs of the Biopharma Sector in Ireland to 2027, which was published at the end of April. The report shows that we can expect strong growth in the sector in the coming years, which will require a continuing inflow of skilled workers. It is essential that Ireland rises to the challenge of providing the educated and trained workers needed to support this growth.
Using data from IDA Ireland and Enterprise Ireland, the report highlights how the Biopharma sector employed nearly 50,000 people directly across the country in 2022, the baseline year for the study. This represent a net gain of over 18,500 Biopharma jobs since 2016, an increase of 61% increase at a growth rate of 8% per annum.
Taking the 2022 employment figures as a starting point, the report then outlines three growth scenarios which are used to forecast employment growth in the Biopharma sector over a period commencing in 2023 and concluding in 2027. These scenarios are:
• Low growth , which forecasts an overall employment growth rate of 5% per annum from 2023 to 2027, resulting in 15,000 additional Biopharma jobs.
• High growth , which forecasts an employment growth rate of 8% per annum between 2023 and 2027, based on the historical trend in employment since 2016 continuing, resulting in around 26,000 additional jobs,
• Medium growth, which forecasts an employment growth of 7% per annum from 2023 to 2027, based on the evaluation of Biopharma investment trends by industry and enterprise development agency experts, resulting in around 21,000 additional jobs in the sector.
Full details of these forecasts can be found in Chapter 5 of the report.
The Expert Group on Future Skills Needs has, together with industry, education and training providers, Government departments and other public bodies, developed a comprehensive set of recommendations designed to ensure the availability of high-quality skills and talent to meet this growth over the coming years.
These recommendations focus on several important areas for priority action, including strengthening STEM education in schools and increasing capacity for education and training at tertiary level. They also place a strong emphasis on increasing collaboration between industry and academia. Promoting new pathways into the sector will also be important, as will promoting careers in the Biopharma sector. A skills and careers pathway framework will be developed for the industry and there will be a strong emphasis on growing digital, leadership and transversal skills.
The key to success will the implementation of the report’s recommendations. If we are to see the growth potential of this innovative and strategically important sector realised, it will require positive and committed action to deliver the necessary skills, as outlined in this report.
Work Permits
Ceisteanna (110)
Thomas Pringle
Ceist:110. Deputy Thomas Pringle asked the Minister for Enterprise, Trade and Employment to provide an update on a work permit application (details supplied); and if he will make a statement on the matter. [26644/24]
Amharc ar fhreagraFreagraí scríofa
The Employment Permits Section of my Department informs me that currently no new or renewal Employment Permit application for the person concerned in the details supplied has been received.
I am also informed that the Critical Skills Employment Permit that issued to the person concerned in the details supplied is due to expire on 29th June 2024. Therefore, the person concerned will no longer be entitled to work in the State after this date if they have not either secured a Stamp 4 immigration permission from the Department of Justice, or submitted an application for a renewal of their permit. The applicant is advised to check their eligibility for a Stamp 4 immigration permission (which will allow them to work without a permit), or to ensure their employer has submitted a renewal application on their behalf as soon as possible.
Applications for employment permits are dealt with in date order. As of 17th June 2024, the Employment Permits Section are processing new applications in respect of standard employers which were received on 10th May 2024.
The Employment Permits processing times are updated on a weekly basis at the following link: enterprise.gov.ie/en/What-We-Do/Workplace-and-Skills/Employment-Permits/Current-Application-Processing-Dates/
There is also an Online Status Update Enquiry - where details on a particular application can be found on the following link: enterprise.gov.ie/en/What-We-Do/Workplace-and-Skills/Employment-Permits/Employment-Permit-Status-Form/
Business Supports
Ceisteanna (111, 112)
Louise O'Reilly
Ceist:111. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment the amount of funding issued to businesses under phase 1 of the increased cost of business grant by close of scheme; and the amount which has been paid out, including percentages, by local authority area, in tabular form. [26679/24]
Amharc ar fhreagraLouise O'Reilly
Ceist:112. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment the amount of funding issued to businesses under phase 2 of the increased cost of business grant by close of scheme; and the amount which has been paid out, including percentages, by local authority area, in tabular form. [26680/24]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 111 and 112 together.
As the Deputy will be aware, I announced the reopening of the ICOB grant scheme from May 15th until May 29th. This was to ensure those business owners who missed the deadline had the opportunity to register. I also made a change to the scheme that allows for a second payment or double payment to businesses in the hospitality and retail sectors.
Officials from my Department are engaging with the LGMA to ensure that payments are made as quickly as possible.
As of the morning of Wednesday 19th June there has been a total of 80,654 properties registered, representing 67% of estimated eligible businesses, which includes 5,245 registrations that were made during the re-opening period from 15 May to 29 May. I attach the following table:
|
Local Authority |
Original estimated businesses |
Registrations |
No of properties |
Percentage of Original Estimate Businesses |
Paid as a % of Approvals |
Value of Payments |
|
Carlow County Council |
1504 |
1007 |
1166 |
77.50% |
95% |
€1,777,302.54 |
|
Cavan County Council |
2385 |
1199 |
1340 |
56.20% |
100% |
€1,201,125.61 |
|
Clare County Council |
3474 |
2043 |
2439 |
70.20% |
92% |
€2,124,545.15 |
|
Cork City Council |
9333 |
4091 |
4412 |
47.30% |
100% |
€8,483,836.88 |
|
Cork County Council |
6404 |
5490 |
5939 |
92.70% |
96% |
€2,463,658.63 |
|
Donegal County Council |
4449 |
2470 |
2850 |
64.10% |
100% |
€2,638,563.30 |
|
Dublin City Council |
16246 |
7977 |
8754 |
53.90% |
74% |
€8,379,143.71 |
|
Dun Laoghaire-Rathdown County Council |
4369 |
2661 |
2792 |
63.90% |
86% |
€4,578,205.09 |
|
Fingal County Council |
5310 |
3028 |
3243 |
61.10% |
92% |
€3,133,067.44 |
|
Galway City Council |
2900 |
1941 |
2126 |
73.30% |
87% |
€3,848,087.30 |
|
Galway County Council |
4251 |
1939 |
2211 |
52.00% |
96% |
€3,017,204.13 |
|
Kerry County Council |
3880 |
2577 |
2798 |
72.10% |
94% |
€1,741,053.05 |
|
Kildare County Council |
4083 |
3170 |
3275 |
80.20% |
99% |
€5,802,555.11 |
|
Kilkenny County Council |
2521 |
1481 |
1688 |
67.00% |
96% |
€2,437,269.58 |
|
Laois County Council |
1470 |
955 |
1064 |
72.40% |
81% |
€1,192,043.75 |
|
Leitrim County Council |
991 |
493 |
548 |
55.30% |
100% |
€613,688.96 |
|
Limerick City and County Council |
4466 |
3134 |
3987 |
89.30% |
84% |
€4,980,608.73 |
|
Longford County Council |
1106 |
787 |
938 |
84.80% |
100% |
€1,283,532.35 |
|
Louth County Council |
3393 |
2001 |
2442 |
72.00% |
93% |
€2,338,323.13 |
|
Mayo County Council |
3372 |
2614 |
2782 |
82.50% |
100% |
€2,598,537.27 |
|
Meath County Council |
3801 |
2571 |
2727 |
71.70% |
65% |
€1,136,524.20 |
|
Monaghan County Council |
1702 |
1256 |
1462 |
85.90% |
100% |
€1,932,908.58 |
|
Offaly County Council |
1707 |
1043 |
1189 |
69.70% |
100% |
€1,422,804.42 |
|
Roscommon County Council |
1439 |
1065 |
1101 |
76.50% |
100% |
€1,367,835.65 |
|
Sligo County Council |
1656 |
1038 |
1141 |
68.90% |
100% |
€1,678,061.51 |
|
South Dublin County Council |
6210 |
3089 |
3701 |
59.60% |
91% |
€4,887,346.91 |
|
Tipperary County Council |
4683 |
2575 |
3097 |
66.10% |
91% |
€1,764,512.22 |
|
Waterford City and County Council |
3355 |
2148 |
2453 |
73.10% |
100% |
€4,054,210.57 |
|
Westmeath County Council |
2206 |
1433 |
1623 |
73.60% |
96% |
€2,546,515.59 |
|
Wexford County Council |
4417 |
2735 |
2961 |
67.00% |
100% |
€5,353,110.76 |
|
Wicklow County Council |
3448 |
2100 |
2405 |
69.80% |
96% |
€2,784,847.38 |
|
Totals |
120531 |
72,111 |
80,654 |
66.90% |
93% |
€93,561,030 |