Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Ceann Comhairle for allowing me to raise the struggles that small and medium-sized businesses, SMEs, are facing in Carlow and Kilkenny as a result of State inefficiencies and bureaucracy.

SMEs make up over 99% of businesses in the enterprise economy in Ireland and account for almost 70% of people employed. Put simply, our local businesses are the heart of our economy. These businesses create and sustain employment in every community across this country. While large multinationals boost employment in larger urban areas such as Dublin, it is local businesses that ensure the economic recovery is felt across all communities, including in Carlow and Kilkenny. We regularly hear that the Government wishes to promote local businesses in expanding their orders, winning contracts and increasing employment. The Taoiseach has repeatedly stated that he wants Ireland to be the best country in the world in which to do business. We support that ambition. However, despite all the talk, press releases and policy announcements, situations still arise in which State agencies impose unnecessary delays and inefficiencies which are undermining local companies that are ambitious and wish to build up their businesses.

I will illustrate my point with the example of a small business in Carlow which is losing important business due to significant delays by the National Standards Authority of Ireland, NSAI, in issuing the company's compliance certificates. Keltruck Bodies Ltd. is a company that manufactures truck bodies. It employs 13 full-time staff in its workshop on O'Brien Road in Carlow town. Every truck body the company manufactures must be certified by the National Standards Authority of Ireland. It currently takes between four and six weeks for the NSAI to certify a truck body from Keltruck Bodies. This means that four to six weeks are added to the wait time for customers.

The Minister for Jobs, Enterprise and Innovation, Deputy Bruton, stated in a response to my party leader on this matter on 13 May that the time for review should only be two weeks. The equivalent process in the UK can be carried out within 24 hours by its standards authority. Many of the customers of Keltruck Bodies are UK based and the company is losing exports to the UK due to the four- to six-week wait for a compliance certificate from the NSAI.

This is a perfect example of how the State is undermining local businesses in their quest to compete nationally and internationally. One cause for the delay is clearly reduced staff levels in the National Standards Authority of Ireland with staff numbers reducing from 168 when the Fianna Fáil Party was last in government to the current figure of 140. These delays are having a dramatic impact on local companies in their desire to expand their business. I call on the Minister to address the issue immediately.

This is another example of red tape gone mad. The company in question is willing to export but must wait between six and eight weeks for certificate of compliance from the NSAI. The business employs 19 people and I ask the Minister to address the problem. The same certification can be obtained in the United Kingdom within 24 hours. Why do companies trying to survive and maintain employment have to wait between four and six weeks for a certificate of compliance? I ask the Minister to do something about the problem.

Ann Phelan (Carlow-Kilkenny, Labour)
Link to this: Individually | In context | Oireachtas source

I am pleased to be able to reply to my constituency colleague, Deputy Bobby Aylward. The National Standards Authority of Ireland, NSAI, operates as the approval authority for related directives, 2007/46/EC, under the European Communities (Road Vehicles: Entry into Service) Regulations (S.I 157 of 2009) made by the then Minister for Transport, which requires that all member states have national approval schemes implemented through to October 2014.

The automotive approvals process relies heavily on technically competent assessors to process the applications. Applications for certification are processed by the NSAI on a first come, first served basis. Since the beginning of the year, the NSAI has received 3,108 individual vehicle approval, IVA, applications, of which it has completed 2,843. As of 9 July 2015, 196 files are being processed and these have been in process for an average of 3.5 weeks.

In response to the increasing workload, the NSAI tendered in 2014 for an alternative service delivery, which commenced from January 2015 with Applus for the provision of technical assessors. Owing to the regulatory and technical nature of the assessment process, it was not possible to increase processing capacity rapidly as the sourcing, training and induction of engineers takes a period of approximately six months before they become competent in the approvals process. In addition, staff training reduces the time spent on processing. While the addition of new resources was necessary to address the backlog, in the initial stages this is disruptive and impacts on the existing resource as training is necessary.

In addition to resources issues, the processing times also reflect the technical nature of the approvals process itself, the unavoidable requirement on industry to build in an adequate provision for the automotive approvals timescale and the registrations cycle for new vehicles, which are in January and mid-year. However, with regard to the three companies in the Carlow-Kilkenny area which have applications in process, I am informed by the NSAI that company A currently has no outstanding applications; company B has submitted 35 applications since January this year, of which 24 have been approved and 11 are in the process of approval. A number of applications are awaiting responses to queries which need to be addressed before the approval can be completed; and company C has submitted 79 applications since January this year, of which 64 applications have been processed and 15 are awaiting processing. Again, there are queries which need to be addressed before approval is completed.

Approvals of a number of outstanding applications have not been completed as a result of queries from the NSAI to the applicants about the applications. This can cause long delays as application forms must be fully completed before being processed. Another contributing factor is the delay in separate approvals processes for different types of commercial vehicles which is outside the control of the NSAI. Against this background, I encourage companies to inquire directly with the NSAI about the progress of their applications. In this context, the NSAI has been working with individual companies experiencing pressure points to prioritise applications, according to the company's needs.

I will supply the remainder of the reply to the Deputy if he wishes as it deals with some technical issues.

Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

While I welcome the explanation provided, I do not agree with it. As late as last week, the company in question informed me that it is still waiting between four and six weeks to be granted a certificate of approval. The Minister of State tells me a different story but I am sure the company knows best.

The Minister of State and I share the same constituency and she knows the area well. Everyone knows that small and medium enterprises are the lifeblood of the economy. Outside Dublin, between 70% and 80% of employees are employed in the SME sector. Any Government worth its salt would do everything in its power to help these enterprises, as all of us must do.

As I stated, this company has 19 employees and is willing to do a job but is being held up by bureaucracy. Is the National Standards Authority of Ireland fit for purpose? Does it have a sufficient number of employees to do its job? In the United Kingdom, the authorities can provide certification to similar companies within 24 hours. Only a few kilometres across the sea on this island, businesses seeking similar certification face a wait of between four and six weeks. There is something wrong with this and either the Minister or the NSAI should take responsibility for the problem. The NSAI must become more efficient. A waiting period of one or two weeks would make some sense but a waiting period of between four and six weeks does not make any sense. I ask the Minister of State to relay that message to the Minister and tell him that something needs to be done about this issue.

I asked my party leader, Deputy Micheál Martin, to raise this issue in the Dáil on my behalf in May after receiving a complaint while canvassing in the Carlow-Kilkenny by-election. I raise the issue again as a newly elected Deputy because no progress has been made for the company in question since Deputy Martin raised it. I do not want to raise it again in the House in three or four months' time. This company is willing to export and generate income for the country. Someone must do something about this issue and I ask the Minister to act immediately.

Ann Phelan (Carlow-Kilkenny, Labour)
Link to this: Individually | In context | Oireachtas source

Perhaps the remainder of the written reply will go some way towards explaining the technical and staff issues and information technology requirements involved in this matter.

By the end of October, the NSAI expects to operate consistently to the two weeks target and sustain it thereafter with the exception of the surge in new certification applications in January and February to which I referred.

I remind industry to take note of all the technical information required in the application form and ensure forms are complete before submission to the NSAI. Otherwise they will be queried and delays will ensue.

I accept the points Deputy Aylward has made and give an undertaking to raise them with the Minister.

Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Technical issues are not the problem. The issue is the long processing time required for certification applications.

Ann Phelan (Carlow-Kilkenny, Labour)
Link to this: Individually | In context | Oireachtas source

Companies must complete the form correctly as it involves a technical assessment. As I pointed out, queries have been raised in respect of a number of applications. If the companies in question dispute this, the Minister asks that they engage directly with the NSAI to resolve any queries that arise.