Stephen Donnelly (Wicklow, Social Democrats) | Oireachtas source

The Minister is very welcome and I thank her for her time. I have several questions that span a few different areas so I ask her to bear with me. Her brief is a wide one.

There is a lot of talk about what we should spend more money on, be it money from the fiscal space, Supplementary Estimates or whatever. Now that the Minister has had a reasonable amount of time in the Department, where does she believe less money should be spent? The briefing documents from the Minister's officials are very useful. Naturally, they focus on the good news, and the various agencies are to be congratulated wholeheartedly on doing what appears to be a superb job. There is virtually no focus, however, on what is not working and, inevitably, across such a complicated area there are programmes and initiatives that are not working, programmes that probably should be shut down, and moneys in areas on which we should stop spending. First, where does the Minister believe we should spend less money in her Department and in the agencies? Related to that, were more money to be allocated or if we were to find €50 million somewhere that we should no longer be spending, where would be her first one or two big priorities for additional spending?

My second question is on the LEOs. The output metrics seem to be fairly good. My question is on client satisfaction. My anecdotal evidence is that some of the LEOs are doing a very good job, and some of them are not necessarily doing such a good job. It is variable throughout the country. Has the Department any client satisfaction metrics? In retail, it would be mystery shopper type metrics. Is anyone engaging systematically with the clients of the LEOs to discover where they are doing well, where they need more support, the ones that are working and where there is good practice that might be able to be shared?

My third question is on funding for IDA Ireland, Enterprise Ireland and the LEOs. I read in the report that the claim is that two in every five jobs in the country are now in some way related to IDA Ireland, Enterprise Ireland or a LEO. It is a big claim. I am not saying it is wrong, but it is a bold claim to make. If it is true and if IDA Ireland and Enterprise Ireland are doing such a good job, and I have no reason to believe they are not, does the Minister believe there is a case for significant additional funding? Has anyone done a cost-benefit analysis on giving IDA Ireland, Enterprise Ireland or the LEOs an additional €100 million or €200 million? As an example, the Minister for Health came to the Oireachtas a few months ago and asked for €500 million. He got it without too much debate. The previous Minister for Health walked in a few months before that and asked for more than €600 million extra, and he got it without too much debate. Is there a case for a cost-benefit analysis to examine what €100 million or €200 million would do for IDA Ireland and Enterprise Ireland? Have they come to the Minister advocating for new programmes, new countries or new sectors? In terms of what seem to be extraordinarily effective agencies of the State, should we be investing more money into the enterprise sector through those agencies?

With regard to my fourth question, and I am sorry for moving around the areas, there has been much talk about Brexit and providing additional supports, primarily through Enterprise Ireland and the LEOs, for the indigenous sector. I was talking to an economist in IBEC during the week who pointed out that 90% of our exports are from the multinational companies but that the 10% that comes from the indigenous small and medium-sized enterprises, SMEs, accounts for half of the export related jobs. A total of 40% of our SME exports are to Britain. It is clear, therefore, that there is a major risk, and potentially a big opportunity, there. The Minister mentioned that the agencies are dealing with Brexit and that there would be additional funding in the next budget, but I would argue that is too late. Brexit will happen within about 18 months, so the time between now and then is the time for the sector to get ready. How much money has been allocated for this year and for next year as additional activity to the State agencies to deal with Brexit?

My next question is on broadband, which was mentioned by several members. It is a point, but it is related to the Estimates. A decision was taken to privatise the new fibre optic network. That is a very serious mistake for enterprise development throughout the country. Ireland has an incredibly poor record of regulation in this area. ComReg has not done its job, nor do I believe it will do a particularly good job with the new privatised fibre optic network. What is most likely to happen is exactly what has happened here already when we privatised a telecoms network, which is that it will be bought by one of two bidders, repackaged, securitised, sold on international markets, and end up on the desk of some trader in Singapore, London or elsewhere. He or she will be heavily incentivised to minimise investment and maximise return, which means monopoly-type pricing and underinvestment throughout the country.

We would be able to keep that network in public ownership for a relatively small amount of money and I seek the Minister's view in this regard. While I am aware this matter is under the aegis of the Department of the Minister for Communications, Climate Action and Environment, Deputy Naughten, it has the potential to adversely affect enterprise development nationwide for many years. Consequently, I seek the Minister's view in this regard.

My final question pertains to the so-called vulture funds. As the Minister may be aware, the so-called vulture funds are using an element of tax law called section 110 of the Taxes Consolidation Act 1997. Through that provision, they are able to buy tens of billions worth of Irish assets and essentially operate them tax-free. Irish companies such as AIB, Bank of Ireland, Permanent TSB or Irish investment firms are precluded from section 110 status. Arguably, one therefore has a serious competition issue in which regulated Irish entities such as fund management agencies, banks, etc. are being obliged to bid against essentially unregulated foreign entities that need pay no tax on the profits. This obviously is an issue I am taking up with the Minister, Deputy Noonan, in an effort to close it down but as Minister for Jobs, Enterprise and Innovation, does the Minister believe it is reasonable that the Irish firms should be asked to compete with foreign firms when the former are obliged to pay all taxes due whereas the latter, through section 110 status and other tax avoidance mechanisms, essentially are paying no tax?