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Dáil Éireann díospóireacht -
Thursday, 11 Jul 2024

Vol. 1057 No. 5

Ceisteanna Eile - Other Questions

Low Pay

Bríd Smith

Ceist:

6. Deputy Bríd Smith asked the Minister for Enterprise, Trade and Employment if he is planning to abolish sub-minimum wage rates in light of recent recommendations by the Low Pay Commission and the ESRI report; and if he will make a statement on the matter. [30466/24]

As the Minister and Ministers of State know, People Before Profit tabled a Bill seeking to get rid of the sub-minimum wage which proceeded to Committee Stage. It is absolutely disgraceful discrimination against young workers to pay them less than the minimum wage, which is miserable in and of itself at €12.70. That is far below what a living wage should be. The ESRI, among others, has recommended the sub-minimum wage rates should go. Will that happen? Is the Government going to progress this or will it dance to the tune of employers who want to keep people on low rates of pay?

As the Deputy will be aware, the Low Pay Commission was asked in 2022 to examine the issues around retaining or removing the sub-minimum youth rates of the national minimum wage and to make recommendations on the matter. The Low Pay Commission asked the ESRI to conduct background research on the issue under the terms of the Low Pay Commission and ESRI partnership agreement. This ESRI report on sub-minimum wages in Ireland was published in November 2023. The ESRI study examines the incidence and the characteristics of young employees who are paid below the full national minimum wage rate. The Low Pay Commission has conducted an in-depth review of the sub-minimum youth rates and, informed by stakeholder consultation and the ESRI report, developed its recommendations on these rates. I published the Low Pay Commission’s report on sub-minimum youth rates of the national minimum wage just last month.

As the Deputy is aware, the Low Pay Commission has recommended the removal of all sub-minimum youth rates of the national minimum wage. What is really interesting is the commission highlighted in its report that this is a complex issue. It has said the Government will need to give its findings and recommendations detailed consideration and deliberation, and it highlighted the need for the Government to take its own legal advice on the matter. That is what we are now going to do. I have also committed to commissioning an economic impact assessment of the recommendations. The terms of reference for that are being considered. The economic impact assessment will model the impact of making changes to youth rates on firms of different sizes and in different sectors. It will also consider the likely changes to the national minimum wage given the Government’s decision to progress to a living wage set at 60% of the median wage.

This is quite a complex and nuanced issue. For example, the sub-minimum rates varies considerably across different age groups. Some 45% of 15- and 16-year-olds are in receipt of sub-minimum rates, but fewer than 5% of 19-year-olds are paid these rates. In addition, the use of sub-minimum youth rates is largely concentrated in the accommodation, food and retail sectors and these are sectors we know are under pressure.

To answer the Deputy's direct question, we will make a decision on this important issue when the results of the economic impact assessment and the legal advice are available to us.

It is complicated if the Government wants to make it complicated, but it is simple if one opposes discrimination against young people. It is simply wrong that young people should be exploited because they are young, and paid less for doing the same job as somebody else who happens to be older. It is a simple principle and that discrimination should be removed. The real issue, which the Minister of State alluded to at the end of her remarks, is the pleading of some in certain areas of retail and hospitality who disproportionately depend on very low-paid young people on these sub-minimum wage rates. There are other ways to help them and that is what the Government should be looking at. There should be no faffing around on getting rid of the sub-minimum wage rates, which are extremely low.

Let us add to that the fact that the actual minimum wage is very low, and the Government and everybody else know it should go higher. It is unacceptable that young people should be on these rates.

The Deputy alluded in his opening remarks to the fact that he has a Private Members' Bill on this issue. I draw the Deputy's attention to the line in the Low Pay Commission recommendation that states that sub-minimum rates should not be abolished before 1 January 2025. The reason for that is that the Low Pay Commission asked the Government to consider the report and its recommendations to ensure all decisions are evidence-based and to get legal advice on this. They are the recommendations of the Low Pay Commission on this and that is what the Government is doing.

We are looking at all of its recommendations, including abolition of it, but we are also looking at the recommendations that tell us get legal advice and study this in depth. That is why we commissioned an economic impact assessment. It is important to note that only approximately one quarter of those aged under 19 who could legally be paid the sub-minimum youth rates actually are being paid those rates. Therefore, 75% of people under the age of 19 are on the national minimum wage or above, and 80% of those who are not on it are students. As the Deputy said, many of those people do work in industries that are vulnerable. However, one thing I do not want to do is inadvertently create a situation whereby the people working in those industries have their hours reduced.

I thank the Minister of State.

There is international evidence that this has happened in other countries when decisions like this were taken-----

-----and that is part of the rationale for further investigation on this.

Workers who are not on the sub-minimum rates - older workers - lose out because employers depend on people who they are paying the lower rates. It is actually the older workers who lose out in some of those industries in terms of what they are paid because of disproportionate dependence on people who are on sub-minimum rates.

I take the point that in many cases there is a very low proportion of people under those ages who are on the sub-minimum rates, but they are heavily concentrated in certain sectors. I do not believe that support in those sectors, which may well deserve support, should be dependent on the exploitation of young people, and that is what is happening. It is exploitation. I do not know why the Minister of State is shaking her head.

For somebody who is 18 or 19 to be doing the same job somebody who is 20, 21 or 22, working beside each other, is wrong. It is discrimination and it is exploitation.

Before the Minister of State comes back in, I call Deputy O'Reilly.

The Minister of State said this is complicated, but it is not. It is very simple. It is equal pay for work of equal value. Yesterday, representatives from Mandate Trade Union appeared before the committee and I asked whether its members who are paid 70%, 80% or 90% of the rate are, in fact, doing 70%, 80% or 90% of the work. The fact is that they are not; they are doing 100% of the work. I caution the Minister of State against the use of language like she is trying to protect people from having their hours cut. I remind her that was the language that was used by people at the time when women were campaigning for equal pay in advance of equal pay legislation coming via the European Union. At the time, it was said that the people who did not want equal pay for work of equal value were, in fact, the ones who were protecting women from having their hours cut. I do not like to hear that said in this House. We should not use that language. The Minister of State should be honest with people; she is not protecting them from having their hours cut, and I do not believe that is her intention either.

To be clear, my intention is to look at the Low Pay Commission recommendations and do exactly what it said in terms of analysing them and looking at consequences, including unintended consequences. As I said, I do not want a situation whereby we have an unintended consequence of a change to people's working hours.

Deputy Boyd Barrett has alleged that some industries are disproportionately dependent on student workers. I do not believe this is the case. If he can show me evidence to the contrary, he should please do so. Student workers may work full-time during their summer breaks, but most of the year they work part-time. Only one quarter of those under the age of 19 who can legally be paid the sub-minimum rates, and I will just clarify that it is legal here in Ireland, are actually paid those rates. That means that 75% of those who are legally able to be paid that rate are not paid it. Rather, they are paid the national minimum wage or above.

I thank the Minister of State.

That is industry doing the right thing by these people. What we have is a situation where under-18s cannot necessarily work the same hours legally as those aged over 18 and cannot always do the same duty.

I thank the Minister of State. We are way over time.

We need to take that into account as well. That is why we are doing the economic impact assessment and looking at this further.

Renewable Energy Generation

Darren O'Rourke

Ceist:

7. Deputy Darren O'Rourke asked the Minister for Enterprise, Trade and Employment to provide an update on the work his Department is undertaking to engage with other agencies to leverage support programmes and funding opportunities to maximise local supply chain content levels in the domestic Irish market, as contained within Powering Prosperity: Ireland’s Offshore Wind Industrial Strategy; to provide a breakdown of the agencies he and his Department have engaged with; the dates on which he met to discuss this and the outcomes of these meetings; how prepared the local support chain market is; and if he will make a statement on the matter. [30283/24]

Will the Minister of State provide an update on the work his Department is undertaking to engage with other agencies to leverage support programmes and funding opportunities to maximise local supply chain content levels in the domestic Irish market, as contained within Powering Prosperity: Ireland’s Offshore Wind Industrial Strategy? Will he provide a breakdown of the agencies he and his Department have engaged with, the dates on which they met to discuss this and the outcomes of these meetings? I ask him to make a statement on the matter.

This is a good continuation of our discussion with Deputy Quinlivan. As I said, implementation of Powering Prosperity: Ireland’s Offshore Wind Industrial Strategy is progressing well. Our Department is overseeing the implementation of the actions, working alongside the action owners across Government Departments and agencies, including Enterprise Ireland and IDA Ireland. We also have regular contact with the Sustainable Energy Authority of Ireland, SEAI, Science Foundation Ireland, SFI, Marine Institute Ireland and the Irish Maritime Development Office.

Enterprise Ireland is the lead enterprise agency on domestic supply chain actions. It is working with its client companies active in offshore wind to build their management capabilities, skills and ambitions to compete effectively at home and abroad. It funds relevant programmes such as Key Manager and GradStart and assists companies to access research and development funding.

Our Department's offshore wind industry forum was established in 2023. Senior officials in our Department consult on a quarterly basis with 20 companies and organisations involved in the supply chain. This forum met most recently in June, and the group commented favourably on the recent progress in implementing Powering Prosperity. Similarly, through the offshore wind research development and innovation, RDI, working group, also established by my Department in 2023, officials meet on a quarterly basis with colleagues from Enterprise Ireland, IDA Ireland, SEAI and SFI to progress the RDI actions and ambitions in Powering Prosperity. This group met most recently in May.

Our Department, Enterprise Ireland and IDA Ireland also co-own and lead on work stream 7 of the cross-government offshore wind delivery task force, which is dedicated to mitigating supply chain risks and capitalising on opportunities. This task force is chaired by the Minister, Deputy Eamon Ryan. Its monthly meetings afford an opportunity to update colleagues across Government on the actions our Department is taking via Powering Prosperity. There are meetings every two months between this task force and representatives of the offshore wind industry. Officials in our Department attend every meeting of the task force and its meeting minutes and full membership are published on gov.ie.

In addition to these key forums, our officials, together with Enterprise Ireland and IDA Ireland, regularly meet a very broad range of supply chain companies. Officials attended and spoke recently at the Global Offshore Wind 2024 conference in Manchester a fortnight ago, Wind Energy Ireland’s annual offshore wind conference and WindEurope in Bilbao in March.

There is a lot in the question and a lot in the answer. At the root of it, however, similar to my colleague, Deputy Quinlivan, is the concern about what we are hearing with regard to the readiness of the industry here, whether we look at ports, planning, the grid or supply chain. It is a statement of fact at this stage to say that none of our phase 1 offshore wind farms will be developed on this island. There is a real concern that will continue into the future. When we meet with representatives from ports, there is a question mark in terms of funding and their readiness for phase 2 projects. Really, I am interested in the outcomes and what we can expect to see in terms of development, such as, for example, whether there are proposals for future auctions to have conditions relating to Irish supply chains.

I assure the Deputy that we are making very detailed progress in our Department in terms of Powering Prosperity through skills and job and supply chain opportunities. That is acknowledged by the groups with which we are engaging. As the Deputy knows, the Department of the Environment, Climate and Communications has responsibility for future auctions and grid development. The Minister, Deputy Burke, and I are very focused on ensuring that we have supply chain opportunities for smaller Irish companies and regionally based Irish companies.

Indeed, in Deputy O'Rourke's own area, there are wonderful companies doing extraordinarily innovative things, not just here in Ireland, but abroad. I am more than happy to meet those companies and address any of the concerns the Deputy has in terms of Powering Prosperity and how we can supercharge that, but we are very focused. This year was the first year that we had an Irish pavilion at the WindEurope conference. That is an initiative that came from my visit to WindEurope last year. We want to continue to build the Irish brand. In terms of Powering Prosperity, we have the strategy and the scaffolding to do that.

The Minister of State mentioned in one of his earlier responses in the Chamber that we are very well progressed and in a position to maximise these technologies and the huge potential, as he will be very familiar with himself, off the west coast. There is a significant piece there in terms of technology which, of course, is floating offshore wind. There is a concern that we are slow. We are slow in terms of DMAPs and in terms of sending the signal to the industry, to the researchers in the area, that Ireland is serious about developing our floating offshore capacity off the west coast of Ireland. Can the Minister speak to that in terms of exactly what he is doing? Is he engaging with industry? Are there developments in terms of research and development in Ireland, specifically in the area of floating offshore wind to ensure that we lead in that technology?

Before the Minister comes in, we will hear from Deputy Murnane O'Connor.

In the Minister’s opening statement, he spoke about the SEAI. I know the Government is really encouraging these grants and work is being done through contractors, but in recent months, while we are encouraging people to take up the grants, elderly people have come to me who would have got a small grant maybe 15 or 20 years ago who now go for this grant and are not allowed to get it. The Minister knows himself that winters are getting harder. There is a lot more rain. People are now - thank God - living to a longer age and I am having battle after battle trying to get that redone. I ask the Minister to bring that up as an urgent case.

Deputy Murnane O'Connor has stretched the limit.

Grants for offshore wind.

The SEAI comes under the operational responsibility of the Minister, Deputy Ryan-----

I have brought it up twice now.

I am pretty sure we will bring that to his attention. To go back to the offshore side of things, there are quite different opinions in terms of how advanced the technology is and how suited it is in particular for offshore on the west coast of Ireland, as the Deputy will know. What we are doing in our strategy is that we will establish an offshore wind centre of excellence. It will look at a floating demonstrator of scale to see how prepared the technology currently is for the conditions of the Irish west coast, particularly the offshore west coast. The technology will catch up and we are very focused on ensuring that, working with the Marine Institute and MARA. The whole point of Powering Prosperity is that Irish supply chains and companies will be ready, but I am very focused on ensuring that we get that scale and demonstrator up and running in order for us to understand the Irish coast and its impact.

Go raibh maith ag an Aire. Bogfaidh mé ar aghaidh anois go dtí an chéad cheist eile in ainm an Teachta Richard Boyd Barrett.

Film Industry

Richard Boyd Barrett

Ceist:

8. Deputy Richard Boyd Barrett asked the Minister for Enterprise, Trade and Employment the measures he is considering to ensure full compliance with EU copyright directives and copyright legislation, given the issues raised by representatives of actors, performers, writers, and directors about the use of buyout contracts in the Irish film industry; and if he will make a statement on the matter. [30469/24]

For many years, I have been raising the concerns of people in the film industry and this question relates particularly to actors, writers, directors and performers who are forced by film producers in this country to sign buyout contracts, contracts which are far inferior to what actors, performers, writers and directors get in other jurisdictions. These buyout contracts are a breach, in the view of Equity, the performers and, in my view, of the copyright directive. What is the Government doing to progress the concerns of the actors and performers?

Go raibh maith agat, a Theachta. As the Deputy will be aware, copyright legislation ensures that all authors and performers, including actors, performers, writers and directors, are protected by provisions of copyright legislation where the authors or performers choose to transfer their rights to another party, for example, to producers in the film and TV industry. The transfer of rights is usually done by way of a licence or contract in which the remuneration due to the authors or performers in exchange for the transfer of his or her intellectual property rights is agreed between the parties concerned. Copyright legislation does not prescribe how such agreements should be made. The contractual matter is a matter for the parties. However, these contractual arrangements must be cognisant of the relevant provisions of the EU Directive on Copyright in the Digital Single Market 2019, transposed into Irish legislation by way of SI 567/2021 - European Union Copyright and Related Rights in the Digital Single Market Regulations 2021.

While Irish copyright legislation does not specifically mention buyout contracts, compliance with Part 6 of SI 567/2021 compels the principle of appropriate and proportionate remuneration to be included in contracts for rights holders and describes how this should be achieved. Regulation 27 provides for a transparency obligation meaning that a rights holder must receive, from the party to whom the rights holder has transferred his or her rights, detailed information on how the work has been exploited. The provision ensures that authors and performers have access to an increased level of information about the exploitation of their works and performances, which is necessary to allow rights holders to assess their economic value adequately and continuously. Having obtained information by way of Regulation 27, Regulation 28 then offers authors and performers a contract adjustment mechanism when the remuneration originally agreed turns out to be disproportionately low. This compares the success of their work or performance to the resulting revenues generated and gives them rights under it.

More transparency about how much money is generated out of the films is welcome-----

It is regulated more.

-----but the problem, as I have been trying to explain to the Government, as have the representatives of the writers, directors and performers, is the people with the whip hand are the producers. If you want a job, you sign the contract or otherwise, you do not get a job. That is the way it actually works. The contracts being offered to writers, directors, actors and performers are dramatically inferior than what you get in other jurisdictions. The terrible thing here is those film producers are only the producers of the films because the Government gives them money to make the films through the section 481 film tax credit, which is supposed to be for quality employment and training. My committee has recommended that something is done about this, but nothing ever gets done. It is pass the parcel between the Department of enterprise, the Department of Finance, the Department of arts and the Department of Social Protection, all of which should be working together to stop this mistreatment of our talent and the people who work in the film industry in this county.

To clarify, Regulation 27 is about transparency. Once you have your transparency, Regulation 28 kicks in and that offers authors and performers a contractual adjustment mechanism when the remuneration originally agreed turns out to be disproportionately low compared to the success of their work. That is important to clarify. To be clear, the existing copyright legislation ensures that rights holders have an effective means of enforcing their rights by way of proceedings before the appropriate courts. Alternative dispute resolution mechanisms, which are without prejudice to any judicial remedies, are provided for too.

On a separate matter, I am happy to confirm my Department recently received Government approval to draft and publish a short Bill to address a known mischief detected in the Copyright and Related Rights Act 2000 and I will talk to the House about that at a later point. I acknowledge the work done by the Deputy's committee on this. I can go into further details of the tax credit mentioned by Deputy Boyd Barrett and the budgetary oversight element of it, if he wishes.

I was the one who asked our committee to do that report. I know quite a lot about it, with respect.

I am pretty familiar with this issue because I have been bringing it up for about four years. The problem is, nothing ever really changes. I am interested to see this legislation and whether it will make any difference. Could the Minister of State please tell us when that legislation is actually coming up? To repeat, there is an easier way to do this and it is for the Government to crack the whip on the film producers because the Government gives the money. It is not specifically the Minister of State's Department, but everybody is working together on this. What the EU Directive says is that buyout contracts should be the exception, not the rule. In Ireland, they are the rule.

That should not be the case. The Government should crack the whip and state that actors, performers, writers and directors should not be forced to sign contracts which give away their right to future revenues if films turn out to be successful. Some 3,500 of them have signed a petition calling for action on this. That petition has been signed by some of the top names, but they are not the ones who need what this. It is the majority of actors and performers who live in relative poverty.

In relation to the Deputy's specific question around legislation in this area, it will be in the context of the sharing of royalty payments between producers and performers of recorded music. I recently sought and received Government approval to address this matter by amending the primary copyright legislation. Accordingly, drafting will proceed on the relevant Bill shortly.

As the Deputy said, the committee of which he is a member, on the basis of his ask, has done quite an amount of work on this. In January, recommendations were published in relation to section 481 tax credits. The committee's report on this was published earlier in the week. The report's recommendations cut across, as the Deputy acknowledged, a number of different Departments. As a result, cross-departmental co-operation is going to be required.

I understand that the relevant forum met in February. It consisted of a mix of plenary and break-out sessions to discuss the tax-credit issue and copyright issue at length. I expect that learnings from the forum will inform the policy considerations on this going forward.

Industrial Development

Joe Flaherty

Ceist:

9. Deputy Joe Flaherty asked the Minister for Enterprise, Trade and Employment for an update on progress in acquiring an IDA Ireland purpose-built facility in Longford town; and if he will make a statement on the matter. [30008/24]

Will the Minister provide an update on IDA Ireland's plans for an advance building solution facility for Longford town. At present, the town boasts in excess of 2,000 FDI-supported jobs thanks to Technimark, Avery Dennison and Abbott. Abbott is due to start work on an expansion at its plant and Avery Dennison has applied for planning permission. I have repeatedly asked this question in the lifetime of this Government so can the Minister provide me with an assurance as to IDA Ireland's commitment to an advance building solution project for Longford town.

I thank Deputy Flaherty for his important question and the work he is doing in this regard. IDA Ireland’s regional property programme ensures the continued supply of land, buildings and infrastructure in regional locations to meet the needs of current and prospective clients of IDA Ireland, as well as Enterprise Ireland and the local enterprise offices. Indeed, the availability of property and infrastructure solutions to meet the needs of multinational companies remains essential to winning foreign direct investment.

In this regard, IDA Ireland has committed to build an advance building solution in Longford to support the winning of new investments and job creation. To this end, IDA Ireland continues to liaise with Longford County Council, as well as wider stakeholders, to seek a suitable site and the site identification process remains commercially sensitive until a land acquisition has been concluded. In addition, the specific dates for commencement of construction are wholly dependent on the many factors impacting on timelines for the delivery of any construction project. However, I can assure the Deputy that IDA Ireland is using its best endeavours to deliver the building in Longford in a timely manner having regard to the normal market dynamics.

Deputy Flaherty quite rightly points out so many good companies in the midlands region, particularly in Longford, that are doing particularly well. I can assure the Deputy I am giving this very high priority that they get a site secured in Longford. It is commercially sensitive because the State has to be careful when it is purchasing land in the region. I assure the Deputy that, working with him, we will deliver that site. Hopefully, we will have an announcement shortly in respect of it.

There are approximately 1,800 people employed in Longford through IDA Ireland-backed companies which is very important to the region. There are 51 IDA Ireland clients in the midlands providing approximately 8,000 jobs. They are very valued. We need high-quality jobs like those.

I was privileged to open the extension to Avery Dennison in 2018. That is a very important employer, as well as Abbott and Technimark, which has seen significant investment over the recent months as well.

I thank the Minister for his commitment to this project. He is working hard on it. I appreciate that there are commercial sensitivities involved. Discussions are at an advanced stage in relation to the acquisition of a site for the new facility. Will the Minister, as he has to date, to take a personal interest in it. This is a key project for Longford town. It is critical for the future development of the town.

We have seen the success that Abbott, Avery Dennison and Technimark have brought to the town. They have transformed the Ballinalee Road of Longford town. Certainly, the acquisition of a further IDA Ireland site and the development of that site as an advance building solution would be a significant step forward for Longford town.

I ask the Minister to redouble his efforts and re-engage with IDA Ireland. It is commercially sensitive but I understand discussions are at an advanced stage. I appeal to the Minister to redouble efforts and try and get this over the line before the end of the lifetime of this Dáil.

I will do that. I spoke with the chief executive of IDA Ireland in connection with how important it is to progress investment in the midlands and in Longford town. The Deputy quite rightly points out the significant offering in Longford. The infrastructure is improving. One can see the N4, now obviously the preferred route, coming to the fore. It is an important artery of connectivity into the west and the north west. It is also for Longford town and for those employers that continue to have operations there.

We will absolutely do our very best, working with the Deputy, to ensure that comes to pass and in the context of continuing the strong investment of very good companies in Longford, improving the infrastructure and all the other important things outlined in our capital plan in order that Longford will continue to be a strong location for FDI and will continue offer high-quality jobs to people in the region.

As the Minister rightly says, FDI has been transformative for the midlands and very much for County Longford.

Abbott has evolved. Initially, it started out with 600 jobs. It has now in excess of 1,300 people in employment. Avery Dennison - the Minister pointed out that he opened the plant in 2018 - is enjoying a meteoric rise. The company's stated intention is that it wants to be the next Abbott in Longford. We really need to get the fourth FDI facility into Longford town. That is why I am pushing hard, in the twilight of this Government, to get this over the line. The Minister has been absolutely committed and focused on it, as, indeed, his ministerial colleagues here in the front row have been. This is a key ask on the part of the people of Longford. Before the curtain comes down on this Government's term of office, I hope we can deliver for them.

On this issue, I call Deputy Murnane O'Connor.

I will take the opportunity to contribute in view of the fact that the Minister and Minister of State are present. It is important that everybody works together.

I want to speak about the IDA Ireland park in Carlow. It is one of the most beautiful buildings in the country but, unfortunately, there are no tenants in it yet. I have been working with the chamber of commerce and Carlow County Council and I know how hard we are all working to promote the park. Carlow - I can only say this again - is an excellent place to live. We are so near the airport. We are so near Dublin. Our location is excellent.

I seeking an update on tenants for the IDA Ireland park in Carlow. It is located on the Dublin road and is, as I said, the most beautiful building. I am just wondering if there is a timescale and what can be done.

It is so important now. There is not a day goes by that my office is not contacted by people wanting to know when the park is going to be opened and what tenants will go into it. We are constructing these excellent buildings, but we need to fill them.

Carlow has so much to offer. We are different from Deputy Flaherty's constituency. We have our beautiful IDA Ireland park. I would really like an update.

We have gone from Longford to Carlow.

For Deputy Flaherty's information, we will continue to work hard on that. It is in the capital plan. Hopefully, we will have a strong budget for business. We are working hard with our bilateral discussions with both Ministers to ensure that we have a strong business budget and, obviously, IDA Ireland will be central to that.

In response to Deputy Murnane O'Connor, I will endeavour to get an update specifically in relation to Carlow. The figures relating to IDA Ireland are exceptionally strong. Its current strategy contains a target of 50,000 jobs. The actual number is in excess of 70,000. Critically, as I stated earlier, one third of its investments are new-name investments, which is very exciting for the country, and two thirds are repeat business, which shows the confidence that companies have in the Irish economy, in the value offering that we have and in the skills of our workforce. The latter is the primary issue here. We have such a good and high-skilled workforce. Some 8% of graduates here go to the ICT sector, which underwrites the growth in that area. We are the second largest exporter of ICT worldwide. We are doing huge work in that area. We will continue to do that and to work for all counties.

Question No. 10 taken with Written Answers.

EU Programmes

Jim O'Callaghan

Ceist:

11. Deputy Jim O'Callaghan asked the Minister for Enterprise, Trade and Employment the benefits for the nomenclature of territorial units for statistics, NUTS, 2 eastern and midland region arising from its recent regional innovation valley designation; and if he will make a statement on the matter. [30030/24]

Brendan Smith

Ceist:

18. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment the benefits for the NUTS 2 northern and western region arising from its recent regional innovation valley designation; and if he will make a statement on the matter. [30155/24]

Willie O'Dea

Ceist:

23. Deputy Willie O'Dea asked the Minister for Enterprise, Trade and Employment the benefits for the NUTS 2 southern region arising from its recent regional innovation valley designation; and if he will make a statement on the matter. [30016/24]

Will the Minister provide an update on the benefits of the NUTS 2 eastern and midland region project arising from its regional innovation valley status designation?

I propose to take Questions Nos. 11, 18 and 23 together.

In June, the European Commission announced 151 regions, including Ireland’s three NUTS 2 regions, as designated regional innovation valleys, RIVs. I commend the regions and the respective assemblies on the hard work that was put in to successfully attaining this designation. The RIVs commit to enhance the co-ordination and direction of their research and innovation investment and policies. They also commit to collaborating on interregional innovation projects linked to key EU priorities such as reduced reliance on fossil fuels; global food security; digital transformation; improving healthcare; and achieving circularity. The designation follows an expression of interest call by the European Commission, which recognises their potential as hubs of innovation and economic growth within this cross-European network. The initiative has potential to unlock new European funding and international collaboration opportunities for the regions, so that innovation can be supported. The designation is in line with commitments in our White Paper on enterprise.

The European Commission will support RIVs through matchmaking events and targeted communication. Matchmaking aims to connect stakeholders with complementary strengths and objectives, including SMEs, researchers and public institutions, as well as matching projects with funding, expertise and potential investors. This seeks to drive joint innovation projects aimed at bolstering the overall productivity, competitiveness and sustainability of regional enterprise. With an overall commitment of up to €170 million for the RIV initiative, the first beneficiaries across 72 regions are to receive €116 million from the European innovation ecosystems work programme under Horizon Europe and the interregional innovation investments instrument under the European Regional Development Fund, ERDF. Further competitive calls are anticipated in the future.

In line with the ongoing implementation of Ireland’s smart specialisation strategy, our Department will continue to work closely with the three regional assemblies and the enterprise agencies to pursue future EU funding streams, which will emerge as part of this initiative. As the Minister will testify, the midlands in particular is in a very good place, through its midlands regional enterprise plan, to maximise the opportunities. The chair and director of that plan are fully attuned to the opportunities that are there.

I thank the Minister of State for his response. The RIV is a very welcome project and very worthwhile pan-European initiative, as it seeks to strengthen and advance a European-wide innovation ecosystem and connect all EU territories to address Europe's burning societal challenges and foster stronger cohesion. The midlands and north east were particularly fortunate to be included. As the Minister of State and the Minister rightly said, there is a nucleus of very strong businesses and a strong culture of innovation and enterprise in the region. It is a perfect fit for this initiative. The region as a whole is very excited about what this can deliver for us. The Minister of State indicated the funding that is in place. Will he elaborate on when that funding will start to reach the regions?

The midlands is ideally placed, through its regional enterprise plan, to maximise the opportunities. There is already a funding call through the European innovation ecosystems work programme, for which €116 million has been budgeted. There will be further competitive calls. I once again commend the regional assemblies involved on submitting the application and providing the information. These are best placed to brief the Deputy. I encourage every Member to be briefed on the potential. The regional assemblies are best placed to identify the funding opportunities and, most importantly, the businesses and institutions that can make the most value from those funding opportunities.

This is a competitive programme. With 151 regions, it will be intensely competitive. Those that are best prepared will best maximise the opportunities that are there. I have every confidence that the regional assemblies will be able to do that.

The RIVs are particularly beneficial for those regions, which probably have not evolved as fast, that can learn from the successes and good fortune of the more innovative regions. The concept of the RIV was never more welcome, especially as we face into an era of artificial intelligence and seek to look to a future that will reduce the reliance on fossil fuels, increasing global food security and mastering the digital transformation, including cybersecurity. In that respect, the north east and the midlands have a major opportunity to share in this journey. I concur with the Minister of State that the midlands regional authority has played in a key role in this. It has been a very important stakeholder and has really driven this. Its members and management team need to be commended on bringing this project to the region.

The whole basis of asking for the RIV designation is that it is a kind of matchmaking process. In many ways, we are going back to the future and the European programmes of 20 years ago, when regions with complementary strengths and challenges were matched together across Europe. Some of the challenges the Deputy mentioned regarding transition and just transition are being experienced across Europe. We had the chance to do that through the RIV network. Digital transformation is obviously a major focus for our Department. Again, through the RIV, we will be able to find other regions that are in this space, align them with what is going on in the midlands and the north east, and ensure that everybody gets a win out of this.

I will have my Deputy Murnane O'Connor moment because I will cross Departments. The Minister of State will obviously be familiar with just transition, which is very important to the midlands and the north east. It is important that the RIV engages with the Department of the environment and sees the opportunities that are there for the midlands in just transition in respect of the climate challenge and how we try to move to a carbon-neutral environment, especially for business and industry. It is very important that there is an engagement with the Department of the environment.

Grant Payments

Joe Flaherty

Ceist:

12. Deputy Joe Flaherty asked the Minister for Enterprise, Trade and Employment the number of businesses in counties Longford, Westmeath, Offaly and Laois that registered for the increased cost of business grant; the value of the payments for businesses in each county; and if he will make a statement on the matter. [30007/24]

Will the Minister give some indication as to the number of business in counties Longford, Westmeath, Offaly and Laois that have registered for the increased cost of business grant and the value of the payments for the businesses in each county?

I might reduce the Deputy's time on this, as he got an extra minute for his previous question, to let in another speaker.

We will co-operate.

I thank the Deputy for his question. The increased cost of business scheme was announced in budget 2024. It has been allocated €257 million and is specifically designed to target smaller businesses. It was initially opened for registrations between 14 March and 1 May. However, on 15 May, I announced two changes to the scheme as part of the wider SME package. First, registration was opened for an additional two weeks to allow businesses another chance to sign up for the grant and, second, those businesses operating in the hospitality and retail sectors that qualify for an increased cost of business grant will receive a double or second payment under the scheme. Overall, 72,576 registrations have been made, representing 81,366 businesses, or two thirds of the potentially eligible businesses.

Turning to the specific local authorities highlighted by the Deputy, in County Longford, 939 businesses have registered for the grant and €1.287 million has been paid out to those businesses. In County Westmeath, 1,627 businesses have registered and €4,485,309 has been paid out. In County Offaly, 1,192 business properties have registered and €1,959,301 has been paid out to those businesses. In County Laois, 1,075 business properties have registered and €1,581,247 has been paid out.

All local authorities are doing everything to ensure payments to qualifying businesses are made as quickly as possible. The second round has now commenced. I will point out that Longford County Council has been exceptional in paying out the grant. Its chief executive, Paddy Mahon, and his team, including John McKeon, have been great. They got the money out to businesses very quickly. It is so vital that they get it when the Government has put that money on the table for them.

I share the Minister's goodwill towards the officials and staff of Longford County Council. It is one of just 19 local electoral areas, LEAs, throughout the country that paid out more than 99% of their grants. That is commendable work on their part.

Initially, €160 million was allocated.

At present, it looks as if €102 million has been paid out under this scheme. The Minister has indicated a further round of payments for retail and hospitality. Is that on top of the €160 million or is it going to be taken from the €160 million?

We currently have €230 million transferred to the local authority sector and that will cover the first and second rounds. Once that is disbursed, there will be a small enough buffer left over and, at that stage, we will assess what we can do with it. My focus is that any money that is voted by this House in the budget will be spent by my Department this year, and I am very clear on that. I and the two Ministers of State will be going forensically through each area to ensure that all money that businesses need badly goes into their bank accounts to help them with the increased regulatory environment. Local authorities across the country now have €230 million in their accounts to pay out this grant to businesses. Over the coming week, we will see the second payment going out to retail and hospitality. That is very important. They have endured a lot of regulatory change in the last 18 months and, hopefully, this will help them to prepare for a good second half of the year.

I would give a word of caution and perhaps a word of warning. As we came out of Covid, many businesses, particularly small and medium enterprises in retail and hospitality, became somewhat dependent on supports and this continued through the ICOB scheme. I am sure this has been fed into the budgeting process. It is critical that we have a commitment in the budget to ensure the supports that businesses have enjoyed, and have been dependent on to keep their doors open, will continue. Hopefully, we will see a specific line in the budget to continue the support for these businesses.

We will do our very best to have a strong budget for businesses. That is central to what we are doing in the Department. The benefits of our SME package are now being felt across the country. The reduced rate of PRSI will take effect from 1 October for workers on the national minimum wage. That process will be linked directly to the Low Pay Commission to ensure that minimum wage workers will not be at the higher rate of PRSI. There are also a number of energy efficiency grants that are very important to the work on the sustainability piece. Digital transformation is key to the SME sector but it is one area where I would be quite alarmed because some SMEs have a lot of work to do in that regard. We have set a target of 90% by 2030 and it is very important that, as a Government, we support them on that journey. We will be focused on that in our budgetary package. Our taxation submission is ready to go to the Department of Finance this week and we will be liaising with the Minister, Deputy Donohoe, on the expenditure side to see how we can continue the support in that regard.

Question No. 13 taken with Written Answers.

Renewable Energy Generation

David Stanton

Ceist:

15. Deputy David Stanton asked the Minister for Enterprise, Trade and Employment to report on developments pertaining to the Powering Prosperity strategy; and if he will make a statement on the matter. [30285/24]

It seems the Opposition has abandoned the Dáil, which is strange. When we were in opposition, we never gave up and always had someone here. That is another story.

With respect to Powering Prosperity, does he agree that it depends on infrastructure and on having ports with planning permission that are able to expand? That needs money. For example, the Port of Cork needs to expand but cannot do so because it does not have the finance.

We have had a lot of discussion on Powering Prosperity to date and I welcome the Dáil’s interest in it. I acknowledge the Deputy’s work in this space through the joint Oireachtas committee. In terms of infrastructure, that is obviously a matter for the Department of the Environment, Climate and Communications, but we will continue to work closely with it to ensure that infrastructure is in place. Powering Prosperity is focused on ensuring that we maximise the opportunities that are available to Irish businesses, whether small, medium or large, and maximise the opportunities available to the regions in particular.

In our Department, we are working very closely with the agencies and companies. We have just finished a joint event with Scotland, which the Minister, Deputy Burke, hosted in Cork on 12 and 13 June. We had officials and Ministers of the Scottish Government, including Scotland's Minister for Climate Action, looking to work and co-operate with us based on their successes to date, and with them also looking at our successes, particularly with regard to onshore.

We have 40 actions to be implemented this year and next year through the Powering Prosperity plan and they are all on schedule and on target. As we said earlier, we are focused on getting a testbed established off the west coast to see if we can get that technology suited and developed to ensure we maximise the offshore opportunities that are provided on the west coast.

I am very aware of the concerns around infrastructure. As I committed earlier to Deputy O'Rourke, I will come back with an update on the infrastructure position and I will include Deputy Stanton in that correspondence.

Powering Prosperity is a fantastic policy document and I commended the Minister on it when he was before the Oireachtas committee last week, as well as the people who put it together. However, it is going to be diluted unless the port infrastructure is expanded. Without having a place to do a thing, you cannot do the thing. We cannot assemble the turbines, maintain them or service them if we do not have a place to assemble them in the first place. I understand that Cork is the only place where there is planning permission. It needs funding and it needs to expand, and a decision has to be made urgently on this. Will the Minister of State look at the shared island fund, for instance, to enable that to happen?

The other issue I raised last week with the Minister, Deputy Burke, was the fact that the port is also looking to expand onto some IDA property that is adjacent to the port facility in Ringaskiddy. I understand the port has spoken with the IDA but it needs political support and encouragement. I ask the Minister of State to ensure that Powering Prosperity benefits from maximum capacity and that we also examine making available IDA lands, perhaps on a long lease basis, so the port can do that as well.

I endorse everything the Deputy has said with regard to the Port of Cork. It has applied for funding under the 2023 call on the EU's Connecting Europe Facility fund. The Department of Transport worked closely with it on that application. That would give it up to 30% of the cost of infrastructure investment works in this space. A decision on that will be announced this month. We will continue, through the offshore wind delivery task force and our colleagues in the Department of Transport and the Department of the Environment, Climate and Communications, to engage with the Port of Cork to ensure the resources it has in place will be maximised. I have no doubt that the Minister, Deputy Burke, has engaged with the IDA on the other proposal.

I thank the Minister of State for that positive response and encourage him to continue in that vein. Is he aware of the potential for the shared island fund to be used in conjunction with Cork and Belfast to maximise the development of infrastructure? Will he commit to going to the Department of the Taoiseach to support that initiative in order to maximise Powering Prosperity? This is what we want. We want the jobs and the technology to be here in Ireland, not elsewhere. We need the infrastructure on-site and on land. Cork has the only planning permission in place but it will run out next year, so there is an imperative to move quickly on this. It is serious. Will the Minister of State commit to working on the shared island fund with the Department of the Taoiseach to see if there is the potential to get money urgently? Some 30% will not be enough and it is also very slow.

I am more than happy to pursue this. The shared island fund has invested significantly in infrastructure. Indeed, I took part in an event with the Cork, Dublin and Belfast chambers of commerce a few weeks ago on the potential to develop all-island projects now that the institutions are up and running. That is definitely one I will pursue. I would also point out that the Port of Cork has communicated to the Department of Transport that it will be beginning construction of the Ringaskiddy east permitted development in quarter 3 of this year, and it intends to have it completed by October 2025. It is beginning development, which is to be commended.

With regard to the shared island fund, I will revert to the Deputy. It is a solid proposal.

Deputy David Stanton benefited from a mistake. I understand Deputy Flaherty was substituting for another Deputy on Question No. 14, so we will take that question now.

Corporate Governance

Jim O'Callaghan

Ceist:

14. Deputy Jim O'Callaghan asked the Minister for Enterprise, Trade and Employment if he will report on the work of the Corporate Enforcement Authority; and if he will make a statement on the matter. [30031/24]

I ask the Minister to report on the work of the Corporate Enforcement Authority.

In the relatively short time since its establishment, the CEA has quickly established its presence and is integral to maintaining Ireland’s reputation as a safe and well-regulated economy in which to invest and create employment. The CEA has produced its first statutory annual report covering the period from 7 July 2022, the date of its establishment, to 31 December 2023. During the period under review, 454 complaints with allegations of wrongdoing were received, of which 398 were received from members of the public and 56 from various public entities, including the Central Bank, the CRO, Revenue and An Garda Síochána. Some 22 reports were received in accordance with the Protected Disclosures (Amendment) Act 2022 and 239 indictable offence reports were received.

Fifty-one SCARP reports were received and 13 examiner reports. Overall, 80 directors were restricted, 27 disqualified, five warranted authorising searches obtained and executed, 213 witness statements taken, nine voluntary cautioned interviews conducted and 12 arrests made. The CEA initiated one summary prosecution and 12 investigation files were referred to the Office of the Director of Public Prosecutions. In addition, CEA officers seized laptops, digital storage devices, mobile devices and data. In total, over 4.1 million files were made available to CEA officers for review as part of the investigations. I acknowledge the work of the entire staff of the CEA during this time. They very much made their presence felt.

After 18 months of existence, the advantages of the CEA being a stand-alone agency are clear. In particular, the flexibility that status brings is readily apparent. Will the Minister indicate how the agency has performed regarding recruitment? Has it secured its own recruitment licence, thereby allowing it to run recruitment campaigns with competitions tailored to suit the needs of a specialist agency?

We engage regularly with the CO. The resourcing of the CEA is kept under constant review and the Department is involved in regular engagement to ensure resourcing is adequate for the job we have given it. Filling specialist posts tends to be a challenge for many agencies but we engage closely with the agency on that.

Questions Nos. 16 to 60, inclusive, taken with Written Answers.
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