Written answers
Tuesday, 9 October 2012
Department of Jobs, Enterprise and Innovation
Programme for Government Implementation
Simon Harris (Wicklow, Fine Gael)
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To ask the Minister for Jobs, Enterprise and Innovation if he will outline in tabular form the commitments in the Programme for Government pertaining to his ministerial portfolio; the current status of these commitments in terms of implementation; and if he will make a statement on the matter. [42882/12]
Richard Bruton (Dublin North Central, Fine Gael)
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I would like to draw the Deputy’s attention to the publication in March 2012 of the first Annual Report setting out progress on the implementation of the Programme for Government and the intention by Government to publish the second annual report next March which will set out specific progress on implementation during the second year. Details of the progress to date for each of the Programme for Government commitments for which my Department is responsible are set out in the table below.
| Commitment | Current Status |
|---|---|
| Commitment | Current Status |
| Reverse the cut in the minimum wage | National Minimum Wage restored to €8.65 per hour with effect from 1 July 2011. |
| Implement a number of sectoral initiatives in areas that will create employment in the domestic economy | The Department and its Agencies are implementing measures to support the domestic economy, including for example ensuring SME access to public procurement, developing the green economy, and supporting the development of the manufacturing sector, as outlined in the Action Plan for Jobs. The Government’s Action Plan for Jobs sets out a range of actions across Government Departments and Agencies which aim to create a vibrant environment where enterprises can start up and flourish. My Department is working with the Department of Environment, Community & Local Government, in specifically seeking to improve the operating environment for businesses at local level. Action 2.2 of the Action Plan for Jobs to dissolve the existing County & City Enterprise Board (CEB) structure, transfer their functions, assets and liabilities to Enterprise Ireland (EI), and establish Local Enterprise Offices (LEOs) within Local Authorities, has been approved by the Government. A high level Implementation Working Group (IWG) chaired by my Department is currently progressing the range of issues involved. A project plan is in preparation which will set out clear milestones and timelines for implementation. My Department is also engaged with the Office of the Attorney General regarding the detailed primary legislation that will be necessary to implement the new arrangements. It is the intention to give administrative effect to the new structures as soon as possible, in advance of the formal enactment of legislation. Development of the Service Level Agreement between Enterprise Ireland and the Local Authorities to cover the full range of services and targets to be delivered by the LEOs is planned by year end. It is hoped to have details of the legislative path to underpin these reforms completed by Quarter 2 of 2013. |
| We will create a new ‘Home to Export’ programme to share the expertise of exporting companies with firms currently reliant on domestic markets. | Enterprise Ireland has an ongoing range of services to encourage new exporters, including online support and mentoring. In March 2012, Enterprise Ireland established the Potential Exporters Division. Its role is to stimulate greater activity within companies across all regions and to reorient those demonstrating real growth potential from the domestic to the international marketplace. |
| A ‘Source Ireland’ portal will be developed to market Irish goods and services abroad. | Enterprise Ireland now has in place a website service for sourcing queries from international buyers or procurement managers, who are looking to source world-class products, services and technologies from Irish-based companies. That Agency also has experienced advisers in place, both in Ireland and in overseas locations, who work directly with Irish companies. |
| We will support our indigenous digital game industry by reforming R&D supports available to the industry, setting aside funding from Innovation Fund Ireland for a seed capital scheme for Irish digital gaming start-ups, introduce a digital media component to Transition Year programmes and promote Ireland as digital gaming hub. | Science Foundation Ireland (SFI) has built up and supports 15 top-class research centres that operate in the ICT area, many of which are involved in developing technologies to underpin digital gaming, e-learning, and other internet-based technologies. SFI works actively with industry groups to promote industry-academic collaborations in these sectors. |
| We will develop a National Intellectual Property (IP) protocol to give predictability about the terms on which business can access IP created in Higher Education Institutions and the wider digital sector. | The new IP Protocol, which sets out a new national policy and guidelines for the management of intellectual property (IP) associated with State funded research, was launched on 8 June 2012. The IP Protocol sets out a new system that is designed to make it easier and faster for entrepreneurs and companies to negotiate a commercial arrangement with publicly funded research performing organisations. It sets out the Government’s policies to encourage industry – from start-ups and small and medium enterprises to multinational corporations – to benefit from State funded research and describes the practical arrangements for this to happen. |
| We will promote and support investment in technology research, development and commercialisation beyond basic research supported by Science Foundation Ireland, as well as removing barriers to innovation and accelerate exploitation of new technologies. | Since 2000 SFI has, along with programmes like the Programme for Research in Third Level institutions (PRTLI), helped to transform Ireland’s research ecosystem. Ireland’s research landscape and much of the SFI investment has now reached a stage of maturity ready for exploitation, and the extensive SFI linkages with industry & academia represent great opportunities for further development. The process of extending SFI’s legislative remit to enable expansion into applied research is well under way and this will assist in the commercialisation of new technologies. The extended SFI legislation is anticipated to be enacted in Q1, 2013. |
| We will target key technology areas and sectors where innovation can be applied including but not limited to high value manufacturing, advanced materials, nanotechnology, bioscience, electronics, photonics and electrical systems and information and communication technology. | These identified technology areas have been the subject of specific focus for Innovation Programmes and a considerable amount of work is on-going through STI Programmes delivered by IDA Ireland Enterprise Ireland, Science Foundation Ireland and work at the Tyndall Institute. In addition, implementation of the Report of the Research Prioritisation Steering Group (launched 1 March 2012) has been underway since late March through the Research Prioritisation Action Group (RPAG). Essentially, the report recommends 14 areas of application which should be prioritised for public STI investment because of the potential of those areas to deliver economic and societal impact in particular, jobs. SFI played a key role in the Research Prioritisation Exercise and has reorganised for better capability to effectively implement the relevant elements of the research prioritisation recommendations. SFI supports many research teams and top-class centres in most of the areas mentioned across. |
| We will also focus on the application of technological innovation in established sectors of the economy like energy generation and supply, transport, creative industries, high-value services and architecture and construction by identifying challenges, establishing priorities and developing strategies which specify necessary actions to transition to more innovative approach. | Significant funding from the enterprise agencies is directed at the application of leading edge technology and innovation in established sectors. In addition, implementation of the Report of the Research Prioritisation Steering Group (launched 1 March 2012) has been underway since late March through the Research Prioritisation Action Group. Essentially the report recommends 14 areas of application which should be prioritised for public STI investment because of the potential of those areas to deliver economic and societal impact in particular, jobs. The sectoral opportunities in the Action Plan for Jobs also reflect this focus. Operating in the areas of Bio, ICT and Energy, the work of the SFI-funded centres and research teams touches on virtually all of the 14 recommended research priority areas and 6 underpinning areas (see commitment above), thereby ensuring that SFI is ideally placed to fully contribute towards the achievement of the research prioritisation goals. Many sectors of the economy encompass areas of research strength built up by SFI over the past decade. |
| We will promote Ireland’s full engagement with the ‘Innovative Union’ proposals issued by the European Commission in October 2010 as one of the seven flagship initiatives under EU2020 Strategy, with the specific aim of refocusing R&D and innovation policy on major challenges and at turning inventions into products. | Ireland continues to support the Innovation Union proposals and is seeking to maximise the participation of researchers from business and academia in the EU’s Framework Programme for Research and Innovation. |
| We will establish a network of Technology Research Centres focused on applied technological research in specific areas, to be linked to appropriate higher-education institutions. The centres will accelerate exploitation of new technologies by providing infrastructure that bridges gap between research and technology commercialisation. We will initially establish 3 additional centres focusing on biotechnology, nanotechnology and high value manufacturing. Further centres from a number of other areas will be selected at a later time. | The establishment of a network of Technology Research Centres builds on the existing infrastructure of relevant SFI Centres for Science Engineering and Technology (the CSETs), SFI Strategic Research Clusters and EI/IDA Technology Centres. The EI/IDA Technology Centres are collaborative entities established and led by industry. They are focused on research with a direct impact on industry. 11 Technology Centres have been established to date in microelectronics, nanotechnology, composites, bio-energy, IT innovation, manufacturing technology, energy efficiency, food, the International Energy Research Centre at Tyndall National Institute and new centres launched in 2012 in learning technologies and cloud computing. A further five centres are in various stages of development, one of which, the Financial Services Governance Risk and Compliance centre will be established before year end. Preparatory actions for Technology Centres linked to the priority areas (based on the Research Prioritisation Exercise) are well advanced in the areas of: Data Analytics Pharmaceuticals Connected Health Medical Devices technology |
| We will support the development of an International Content Services Centre to make Ireland world leader in managing intellectual property. | Following an open competitive tender process at the end of last year, consultants were selected to undertake a feasibility study to examine what structures and policies could be developed to make Ireland a world centre for managing and trading in intellectual property (IP). The objectives of the study were: to identify and describe the emerging trends in IP Portfolio Management in corporations globally; and taking account of such global emerging trends, to identify options and models for Ireland to leverage its existing strengths to become an internationally attractive centre for managing and trading in IP, such that this could realise an economic and jobs potential. The study was overseen by a Steering Group, chaired by my Department with representatives from Forfás, IDA, Science Foundation Ireland and Enterprise Ireland. The draft final report was submitted to my Department at the end of June 2012 and is being considered by the Department and its Agencies. |
| We will pioneer within the EU a model of ‘fair use’ in European Copyright Law, like in the USA, which effectively permits the use of portions of a copyrighted work so long as the normal economic exploitation of the originating work is not undermined. This will allow internet companies and other digital innovators to bring their services to market. | An independent Copyright Review Committee was established in May 2011 to examine the Irish copyright framework to identify areas that might be deemed to create barriers to innovation and to make recommendations to resolve any problems identified. An examination of the ‘fair use’ doctrine to see if it would be appropriate in an Irish/EU context was part of the Terms of Reference of the Committee. The Committee published a comprehensive Consultation Paper in February 2012 based on submissions received and it requested more information on the issues raised including fair use. In the region of 180 submissions were received in relation to the Consultation Paper in which many complex and substantial matters, including fair use, were advanced and these are currently being appraised by the Committee. The Committee has indicted that it expects to present its final Report before March 2013. |
| We will reform the Joint Labour Committee structure, beginning with the appointment of independent chairpersons to JLCs, who will retain a casting vote. Reform options will examine the rate of pay for atypical hours. | Independent Review of JLC/REA mechanisms published in April 2011. Industrial Relations (Amendment) Act 2012 giving effect to reforms enacted with effect from 1 August 2012. |
| We will reduce the cost of Government imposed red-tape on business, in part by streamlining regulatory enforcement activities out of a merger and rationalisation of existing structures. We will create a Business Inspection and Licensing Authority that absorbs the existing business inspection activities of the Health and Safety Authority, and the National Consumer Agency. | In relation to this commitment, please note that my Department is responsible only for reducing “Government imposed red tape” not for merging existing structures. Significant progress has been made by my Department, with a reduction in administrative burdens of 24.8% already achieved in the areas of Employment Law, Company Law and Health & Safety Law; this amounts to annual savings for business of almost €207 million. My Department also coordinates the cross-Government measurement and reduction of administrative burdens towards the 25% target by the end of 2012. A project to measure the burden imposed by regulation under the responsibility of seven Departments and Revenue was initiated in September 2011. Following completion of its measurement exercise, each participating Department must then set out how it will achieve the remaining reductions necessary to reach the target and report to Government with its Simplification Plan. The current estimated overall reduction is just over 15% which includes the 24.8% achieved by my Department, 25% achieved by Revenue and 30% achieved by the Central Statistics Office. The reform of the State's Workplace Relations Services will deliver a simplified two-tiered structure comprising a single body of first instance, the Workplace Relations Commission, and a single body of appeal, in effect an enhanced Labour Court. |
| We will develop a Unique Business Identifier for use by all government departments and agencies that will facilitate the sharing of information within Government and reduce repetitive information requests from businesses. | Legislative proposals to facilitate data sharing currently being considered. |
| We will introduce new legally binding voluntary commercial debt plan structures to allow small businesses to restructure debts without recourse to expensive court procedures. | I asked the Company Law Review Group (CLRG) to examine the feasibility of introducing such a scheme. The CLRG reported back at the end of September and I am considering that report. |
| We will implement a temporary, partial credit guarantee scheme that will provide a level of insurance to banks against losses on qualifying loans to job-creating firms to get banks lending again to industry and entrepreneurs. | The launch of the Temporary Partial Credit Guarantee Scheme is imminent. |
| We will construct a €100 million Microfinance Start-Up Fund that will provide start-up loans and equity that draws funding from the NPRF and private institutional funds. | The Microenterprise Loan Fund Scheme was launched on the 27th September 2012. |
| We will support the development of a more dynamic, venture capital industry in Ireland by seeking to attract top tier venture financing and investment companies to Ireland, such as Silicon Valley Bank. | Given how close the current funding cycle is to completion, work is being progressed on delivering policy clarity on the future of the VC Schemes |
| We will work to promote a greater appreciation of the co-operative model as a distinct form of organisation, ensure a level playing field between co-operatives and the other legal options for structuring enterprise activities, and provide a conductive framework for the full potential of the co-operative model to be realised, including in areas such as childcare, education, housing, energy retrofitting, environmental protection, transport and healthcare. | My Department’s role is to provide the legislative framework within which business entities can operate, and a number of legal options are available to those considering establishing themselves in business. It is up to each individual operation to choose the model that best suits the nature of the business and the desired ethos of the entity. My Department does not promote one corporate form over another. In June 2011, I secured the agreement of Government to draft legislation to ease the regulatory burden on co-operative societies and to make it easier to start up and run a co-operative as an alternative form of enterprise organisation, and a draft Bill is now with the OPC for drafting. In this way, my Department plays its part in facilitating the development of co-operatives in the International Year of Co-operatives (2012). Individual Departments will engage directly with the promotion or development of co-operatives in a particular field where they consider the co-operative model may bring particular benefit. |
| We will legislate to ban a number of unfair trading practices in the retail sector, such as ‘hello money’ from food suppliers. | Building on the Competition (Amendment) Act 2006 which bans certain anti-competitive practices in the grocery goods sector, an enabling provision which will allow me as Minister to promulgate Regulations to establish a code of practice to regulate particular trading practices in the grocery goods sector, will be included in the Consumer and Competition Bill. The Bill, the draft heads of which were approved by Government in July 2011, is currently with the Office of the Parliamentary Counsel for drafting and it is expected that the Bill will be published later this year. The promulgation of any Regulations is expected to follow shortly after the enactment of the primary legislation. |
| We will seek to establish Ireland as a renewable manufacturing hub to attract international and domestic investment. | Enterprise Ireland provides support to companies in the cleantech sector and is continuously assisting companies to find new export opportunities for energy-efficient and related products. The Government’s plan for the development of the Green Economy will also support this commitment. |
| The Government will promote the development of a vibrant and effective social enterprise sector. We will instruct agencies to view social enterprises as important stakeholders in rejuvenating local economies. We will continue support for social innovation projects for young people through education, community and voluntary structures. | Forfás carried out a review of the social enterprise sector and will be reporting to the Minister before the year end. |
| We will make good corporate governance the law, not an optional extra, and enact legislation to provide for binding code of practice for corporate governance, which will be obligatory for companies wishing to be listed on Irish stock exchange. | Any company that wishes to list on the Irish Stock Exchange’s main market must implement the UK Corporate Governance Code and its Irish annex. This Code is subject to regular review and update, with the most recent amendments being made in September of this year. While the legal obligation to implement the Code only applies to companies listed on the main market, the Irish Stock Exchange’s own Listing Rules require companies on the secondary market to report on how they have applied the principles of the Code or, where they have not, to explain why. Meanwhile, work is progressing on the Companies Bill, which will consolidate and reform the existing canon of company law. One novel feature of the Bill is that it will bring together into one statutory provision all the existing fiduciary duties of directors, to make them more accessible and comprehensive to all. At the same time, the European Commission is examining the need for EU wide company law and governance measures and this is expected to yield proposals later this year. Where these are for legislation, we will be implementing them into Irish Law. |
| We will strengthen corporate governance legislation and enforcement. | Please see commitment above. |
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