Arthur Morgan (Louth, Sinn Fein)
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Question 195: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her plans in respect of the Services Directive, Directive 2006/123/EC; if she will bring it before Dáil Éireann in legislative form, thereby allowing a full parliamentary debate on the implications of the directive; if she will move it by way of statutory instrument; and if she will make a statement on the matter. [33455/09]

Arthur Morgan (Louth, Sinn Fein)
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Question 196: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the implications of the Services Directive, Directive 2006/123/EC for Irish businesses in view of the fact that Ireland was the tenth largest exporter of services in the world in 2007; and if she will make a statement on the matter. [33456/09]

Arthur Morgan (Louth, Sinn Fein)
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Question 197: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the implications of the Services Directive, Directive 2006/123/EC for the competitiveness of Irish businesses in relation to other EU Member States with a lower cost base; and if she will make a statement on the matter. [33457/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 195 to 197, inclusive, together.

As I informed the House in reply to a previous Question on 22 September last (No.32397), I propose to bring the Services Directive, 2006/123/EC, into effect by way of statutory instrument, under the European Communities Act 1972. This is the approach used for the majority of EU Directives and, in this case, will facilitate the transposition of the Directive by the due date, 28 December next.

As I stated on that occasion, the negotiation process leading to the adoption of this Directive was lengthy and complex and involved extensive consultation with all key national stakeholders. The draft Directive was the subject of debates in the Dail on 25th and 26th of January 2006 and in the Seanad (on employment issues) on 25th January 2006.

Work on the transposition of the Directive is well advanced and my Department has continued to consult widely. The Directive is unusual in that the transposition process involves a great deal of administrative work as well as legal drafting. The legal aspect of the transposition process will mainly involve ensuring that the provisions of the Directive are reflected in the transposing instrument. Overall, this work is detailed and technical and involves a great deal of co-operation with other Departments (which has been ongoing since the Directive was first proposed in 2004). The transposing legislation will faithfully reflect what was agreed in 2006 as set out in the Directive.

Ireland supports the Directive, as adopted, as a good basis for the creation of a single market in services that will benefit both Irish service providers and Irish consumers. The Directive will open up European markets to Irish service providers. Potential growth sectors include private education, intellectual property, international sales and marketing, supply chain management, and professional and consultancy services. The Directive will also benefit Irish recipients of services, including business consumers.

Irish firms exporting services will gain easier access to the markets of other EU Member States where they currently face non-tariff barriers. This is the export penetration effect of the Directive. On the other hand, Irish firms supplying services to consumers here will face greater competition from firms in other Member States. This is the import penetration effect and will create challenges for Irish firms on cost and competitiveness grounds. Taken together, the export and import penetration effects will have a positive effect on the Irish economy, including consumers, but not necessarily for every service provider.

The overall effect of the creation of a single market for services will be to enhance Ireland's competitiveness. It will also enhance the EU's competitiveness by creating the necessary economies of scale for European service providers, who are facing an increasingly globalised 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. Net employment in the services sector would increase by over 4,000. Average real wages in the service economy were expected to increase by €60 million per annum. The value of Irish services exports was projected to rise by between €10 billion and €14 billion per annum. Those projections are currently being re-examined in the light of the economic downturn and revised projections will be published when the legislation comes into force.