Batt O'Keeffe (Cork North West, Fianna Fail)

The regulations to bring the services directive - directive 2006/123/EC - into law under the European Communities Acts have almost been finalised. I hope to sign the regulations into law by the end of this month. Ireland is open for business as far as the directive is concerned, as we have been applying it administratively since January 2010. The purpose of the services directive is to remove any remaining barriers to trade in services across the EU and to open all 27 EU markets to service providers and consumers. It will make it easier for an Irish service provider to set up business in any member state by enabling him or her to complete the necessary formalities through a point of single contact. For a consumer, it means access to services from across the EU. The directive contains many consumer protection provisions, as well as provisions requiring member states to share in the policing of their service providers operating throughout the EU. The services directive does not affect labour law and does not diminish workers' rights.

The overall effect of the creation of a single market for services will be to enhance Ireland's competitiveness. It will enhance the EU's competitiveness by creating the necessary economies of scale for European service providers, who are facing an increasingly globalised world economy, to challenge service providers in world markets. Forfás estimated in 2008 that gross value added in services to the Irish economy could increase by €540 million per annum as a result of the services directive, and net employment in the sector could increase by more than 4,000. The value of services exports was expected to increase by between €10 billion and €14 billion per annum. Those projections are being re-examined and revised figures will be included in the regulatory impact analysis which will be published when the regulations are signed. The negotiation and transposition of the directive has been a lengthy process involving all Departments and stakeholders as far back as 2004. In addition, the Oireachtas debated the then draft directive in 2006 before final decisions were made on Ireland's position on the proposal. We have been in ongoing contact with the European Commission at all stages during the transposition process. Officials of my Department met representatives of the Commission as recently as yesterday, 14 June, at which time the Commission was assured of Ireland's commitment to completing the transposition of the directive in the next few weeks.

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