Oireachtas Joint and Select Committees

Tuesday, 27 March 2018

Select Committee on Jobs, Enterprise and Innovation

Estimates for Public Services 2018
Vote 32 - Business, Enterprise and Innovation (Revised)

5:00 pm

Photo of Pat BreenPat Breen (Clare, Fine Gael) | Oireachtas source

I am available all evening, so do not worry about time. As Minister of State with responsibility for the Workplace Relations Commission, WRC, the National Standards Authority and the Health and Safety Authority, I am pleased to have an opportunity to make some introductory remarks on the Department's regulation programme C.

I also intend to reflect on the performance of the plans of the local enterprise offices, LEOs, which fall under my remit.

Subhead C3 provides just over €18 million euros to the Workplace Relations Commission, WRC. The reform of the WRC institutions is now bedding in well, and I believe the new structures are delivering results. The WRC achieved considerable success in 2017. From an operational perspective, the adjudication service received slightly more than 14,000 specific complaints, and where no requests for postponements were received and submissions were not delayed, more than 90% of decisions in respect of these complaints were issued within six months. That is a fair achievement for any organisation set up in such recent times, given the delays experienced in the past. There has also been significant improvement of timescales experienced by users of the pre-existing structures, and I am confident that the WRC will achieve its 2018 work programme objective of a six-month timeframe for all such decisions.

In June 2017, the Sligo regional service office of the WRC was launched, providing the full range of WRC services, including conciliation, mediation, adjudication and inspection. This was the first step in the extension of the full range of WRC services to all the regional offices to ensure that the same services provided in Dublin are available throughout the country. It is anticipated that Shannon will be next on the list, followed by Cork and Carlow offices in due course. The allocation to the WRC also provides for extensive information services to workers and employers, industrial relations advisory support and conciliation and mediation of disputes. In addition, it provides for inspection and enforcement of employment rights through the labour inspectorate. More than 4,747 inspections were completed in 2017, with a total of 2,032 employers found to have been in breach.

Subhead C5 provides €19.275 million for the expenditure of the Health and Safety Authority, HSA. Ireland continues to experience strong economic activity, with ongoing business and job growth. We can see that from the cranes on the Dublin skyline, a phenomenon which extends throughout the country. Against this background, it is vital that we prioritise the safety and health of all workers in a way that promotes and facilitates business growth and sustainability, aids competitiveness, and most importantly protects workers. Almost 10,000 workplace inspections and investigations were carried out across all sectors in 2017, and the HSA has a target for the completion of more than 11,000 inspections and investigations in 2018. There will continue to be a particular focus on high-risk areas such as agriculture and the construction sector. We are all aware of the high number of fatalities in agriculture in 2017. It should be noted that in 2016 and 2017, the HSA's Exchequer grant was increased by €340,000 and €400,000 respectively, to facilitate special safety incentives targeting the agriculture and the construction sector. Further additional funding has also been allocated to assist the HSA in dealing with the challenges posed by Brexit. Recruitment is under way for two of the three Brexit related posts, funding for which will be provided in 2017. These posts are being recruited for at the moment, and recruitment for a third post will be undertaken shortly.

The local enterprise offices play a vital role in fostering growth and employment throughout every region of the country, as the Minister has referred to. I have continued to engage actively with the LEOs, and in February I convened the annual LEO forum, at which I had an opportunity to discuss the excellent work which is being carried out and the challenges ahead for LEOs. In a challenging environment LEO clients have contributed substantially to the economic development throughout the country, especially outside the main urban centres. The fact that the LEOs added 3,760 net new jobs in 2017, an increase of almost 10% on 2016, is particularly praiseworthy in these difficult and challenging times. Indeed, the fact that LEO clients now directly support more than 37,000 jobs throughout the country is a testament to what can be achieved through local efforts and local organisations working together. This collaboration has been referred to by the previous witnesses in their own sectors as well, and it is extremely important. Initiatives such as the Ireland's Best Young Entrepreneur competition have also been a great success during the last four years. Ireland's Best Young Entrepreneur offers an attractive investment, mentoring and training package tailored to support entrepreneurs, particularly at the early stages of their enterprise cycles. The final will be held on 22 April at Google headquarters.

I understand that the committee has met the new chair delegate for the National Standards Authority of Ireland, NSAI, Mr. James Kennedy. He appeared before the committee to discuss his appointment. I want to take this opportunity to congratulate Mr. Kennedy on his success in the Public Appointments Service competition. I look forward to working with him in the future.

The Minister has spoken about the ongoing efforts of the Department to respond to the Brexit challenge. Small businesses are clearly one of the constituencies that will be significantly affected by the UK's departure from the European Union. Indigenous small enterprises are crucial to the economy, with Irish-owned enterprises accounting for more than 90% of businesses in Ireland. Ireland's active enterprise base is made up of 238,249 companies and businesses. SMEs account for 98.8% of the total enterprise population, and they also account for 69% of the total persons engaged or employed. Small businesses, that is, those employing up to 49 employees, account for 98.7% of all enterprises, 50% of private sector employment and approximately one third of the value of the Irish economy. Within this cohort of small businesses, there are 219,880 micro-enterprises with fewer than ten employees. They account for 92.3% of all the active enterprises in the State.

In addition to the specific measures and incentives which are being put in place to help small businesses to meet the Brexit challenge, which the Minister outlined, it is vital that appropriate structures are in place to ensure that the voice of small business is heard in policy making, particularly in these challenging times. It is my privilege to chair the advisory group on small businesses, AGSB. The AGSB provides a platform for structured engagement between small business owners, their representative bodies, and myself as Minister of State with special responsibility for trade, employment, business, the EU digital single market and data protection with a view to influencing policy. It held a very useful meeting today. The AGSB's functions include providing information and views on how issues are affecting small businesses to me as Minister of State, Government agencies and State bodies. It also provides feedback and input on certain consultations as well as the regional action plan for jobs, RAPJ, process. Moreover, the AGSB reviews Ireland's performance following the publication of the Small Business Act fact sheet by the European Commission each year, to suggest possible actions and assist in the promotion of relevant State-led initiatives.

Brexit is the principal issue which dominates the agenda of the AGSB. It is a very valuable resource to ensure that the unique voice of small business is heard, particularly in relation to issues such as Brexit. That voice is one I greatly value. I am willing to take questions from Members concerning my brief.

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