Leo Varadkar (Dublin West, Fine Gael)
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Question 249: To ask the Minister for Enterprise, Trade and Employment his views on the Services Directive; and if he will make a statement on the matter. [27156/07]

Micheál Martin (Cork South Central, Fianna Fail)
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The Directive on Services in the internal market (Directive 2006/123/EC) is a major piece of internal market legislation. It creates a "single market" for commercial services and is a key provision of the Lisbon Agenda. It provides a framework for service providers to become established in another Member State or to provide services there on a temporary basis. It strengthens the rights of consumers as users of services. It establishes legally binding obligations for administrative co-operation between Member States in connection with the activities of service providers availing of the Single Market outside their own Member State.

The Directive has significant implications for the development of the services sector in Ireland. Trade-related services, other business services and recreational services will benefit from the opening up of the European market. Some services sectors will face competition from abroad, which will spur greater innovation and productivity in those sectors. Indeed, much of the benefit of the Directive will result from increased competition in the European services market, which will create new export opportunities for Irish service providers and make services available to Irish consumers (including business consumers) at lower prices. The overall effect will be beneficial for the Irish economy, including its competitiveness.

Transposition of the Directive is currently underway in my Department. There will be extensive consultations with stakeholders, including the social partners, over the next twelve months. A Regulatory Impact Assessment is also being prepared on the Directive. The target date for the transposition of the Directive is 28th December 2009.