Ciarán Lynch (Cork South Central, Labour)
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Question 44: To ask the Minister for Enterprise; Trade and Innovation the position and timeframe for the transposition of the Services Directive; and if he will make a statement on the matter. [24345/10]

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

Willie Penrose (Longford-Westmeath, Labour)
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I thank the Minister sincerely for that. The directive is important in the context of the legal framework for any service provided for economic return, with the exception of specified services in health and various other areas, and takes into account the specific nature of the activity or profession. Is it true that we are in the slow-coach lane? Along with Slovenia and Greece, Ireland is one of the three tardiest countries in transposing the directive. The former Minister for Finance, Mr. Charlie McCreevy, was the person who originated this, so perhaps the Minister is right, in hindsight, to take it easy. That is the way I would look at it at this stage.

There will be many benefits associated with the transposition of the directive. Has the Department identified any specific area, within the broader services area, in which the directive will be of major benefit to us or in which we can take a leading role? It does not apply to insurance or anything similar; nor should it, because of the importance of where contracts are made and so on. Are there certain legislative areas in which we are already advanced and which are complemented by this directive, allowing us to gain an upper hand in securing business?

Batt O'Keeffe (Cork North West, Fianna Fail)
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From Ireland's point of view, it is important to have the Services Directive in place. The directive was supposed to be transposed into law-----

Willie Penrose (Longford-Westmeath, Labour)
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In 2007.

Batt O'Keeffe (Cork North West, Fianna Fail)
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-----in December 2009, so we have been tardy in that respect. This is why I spoke to the Attorney General about the transposition of directives. I am delighted that a specialist has now been seconded to the Department from the Office of the Attorney General to assist with the transposition of directives, helping us to achieve this more efficiently and effectively than has been the case up to now.

Why would we delay this process? We certainly would not. The directive has been applied administratively since January 2010 so, in effect, it is in operation. The legal entity will be transposed, I hope, by the end of June. That is the target we have set ourselves and we want to meet it.

The major employment growth area envisaged by IDA Ireland and Enterprise Ireland is in the services sector. Our exports of services will grow exponentially over the next ten years. In that respect the directive is important for Ireland, and we welcome it with open arms. We did everything in our power to ensure it was effected administratively because it provides wonderful opportunities for our export business.

Willie Penrose (Longford-Westmeath, Labour)
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The Horizon 2020 report from IDA Ireland, which sets out a road map for future developments, focused on services as an area in which significant benefits could be gained. The directive should be an important complementary tool for the IDA in achieving those objectives.

Batt O'Keeffe (Cork North West, Fianna Fail)
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This is why we in the Department are anxious to transpose the directive legally, although it is operating administratively. Along with IDA Ireland, Enterprise Ireland and so on, we are anxious that indigenous companies in the services sector be given the opportunity to export these services, which should result in the creation of jobs at home.