Written answers
Thursday, 17 July 2014
Department of Jobs, Enterprise and Innovation
Programme for Government Implementation
Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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314. To ask the Minister for Jobs, Enterprise and Innovation if he will provide in tabular format the commitments under the programme for Government which his Department is responsible for; the progress made to date with regard to each commitment; and if he will make a statement on the matter. [32398/14]
Richard Bruton (Dublin North Central, Fine Gael)
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The timeline for delivery of commitments under the Programme for Government is over the lifetime of this Government. The position in relation to progress under each commitment, within the remit of my Department, is set out in the table.
Commitments in Programme for Government
Ref. | Commitment | Progress to Date |
|---|---|---|
| 1.2.4 | Reverse the cut in the minimum wage | Cut reversed on July 1st 2011 |
| 1.2.6 | Implement a number of sectoral initiatives in areas that will create employment in the domestic economy | Through the Action Plan for Jobs (APJ), a number of sectoral initiatives have been developed or are in progress, including in the following areas: -Green Economy -Manufacturing -Construction -Retail -Health/Life Sciences -Digital Games Details of progress on each of these initiatives are contained in the quarterly progress reports on the APJ which are published on the Department's website . Progress is ongoing in relation to each of these sectors. |
| 1.4.2 | We will create a new ‘Home to Export’ programme to share the expertise of exporting companies with firms currently reliant on domestic markets. | Commitment Met. Enterprise Ireland has an ongoing range of services to encourage new exporters, including online support and mentoring. In 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 growth potential from the domestic to the international marketplace. |
| 1.4.3 | A ‘Source Ireland’ portal will be developed to market Irish goods and services abroad | Commitment Met. A ‘Source Ireland’ portal has been developed to market Irish goods and services abroad. It is continuously updated and expanded. |
| 1.5.2 | 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 | The Department has been working with the Digital Games Clustering Development Team for the purpose of assessing the suitability of the existing R&D tax Credit to the digital games sector. From this work a number of R&D supports workshop to promote awareness about available R&D supports were held. An enterprise friendly guide on R&D tax credits to include examples of relevance to games companies was also produced. The Department is also assessing the case for a new financial instrument/relief to incentives creative content development in the games sector. The intention is to complete this work in the timeframe for Budget 2014. Enterprise Ireland continues to invest seed and follow-on money in a range of software related projects including businesses in the digital game space. Enterprise Ireland has confirmed that a number of the existing venture capital funds, along with those new funds coming on stream, have and will continue to invest in a range of software related projects including businesses in the digital game space. EI’s Competitive Start Fund (€50K Equity) has had a significant impact on the early stage indigenous games sector since December 2010. Over this period, EI has completed 21 calls which have funded 24 Games companies. In addition Enterprise Ireland and the National Pensions Reserve Fund have made available up to €250m in equal amounts to attract investment by international venture capital funds in Ireland under the Innovation Fund Ireland . A number of Funds have received investment under the Innovation Fund Ireland Scheme. To date 5 Funds have been established and launched Polaris, DFJ Esprit, Soffinova, Highland, and Lightstone. 3 of these funds have investment strategies that will allow them invest in opportunities from the Digital Gaming Sector. The Department of Education and Skills has explained that schools design their own programmes for TY and, consequently, may be providing courses that address digital media. |
| 1.5.5 | 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 IP Protocol was published in June 2012, the purpose of which is to help the enterprise sector to access the research undertaken in Ireland’s universities, institutes of technology and other public research institutions. A key recommendation of the report centres around the establishment of a central Technology Transfer Office (ctto) to provide an effective interface between industry and the research community and to drive a world class technology transfer system in Ireland, ensuring it is responsive to the needs of both industry and academia. The ctto branded ‘Knowledge Transfer Ireland’ , was launched on 28 May 2014 along with a website offers businesses a searchable database of research and expertise available in Irish HEIs and access to opportunities to license new technologies and IP as well as access to a range of practical guides and model agreements all of which will help businesses to engage with the research sector. |
| 1.5.6 | 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. | The IP Protocol and Knowledge Transfer Ireland, referred to above, will support both industry parties and research performing organisations in making their commercial negotiations on the exploitation of new technologies and ideas faster, more consistent and more transparent. In 2013 SFI’s legal remit was extended to include applied research in areas of importance to Ireland’s economy to complement with its original mandate of funding oriented basic research. Extending the remit of SFI to fund applied research will also help bring the outcomes of research funded since the establishment of SFI closer to market. |
| 1.5.7 | 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. | The report of the Research Prioritisation Steering Group recommended 14 areas of opportunity as well as underpinning technologies and infrastructure to support these priority areas which should receive the majority of competitive public investment in STI over the coming 5 years. Following publication of the report on 1st March 2012, the Prioritisation Action Group (PAG) was established, under the chairmanship and political leadership of the Minister for Research and Innovation Sean Sherlock TD, to drive implementation of research prioritisation under the broader authority of the Cabinet Committee on Economic Recovery and Jobs. Action Plans to drive implementation have been developed for each priority area and were approved by Government in June 2013 along with a detailed Framework of Metrics and Targets drawn up to measure the outputs and impact of public investment in STI including the impact of research prioritisation. The first annual report tracking progress on implementation of research prioritisation was published on 4 July 2014. |
| 1.5.8 | 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. | See 1.5.7 above in relation to Research Prioritisation |
| 1.5.9 | 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. | The Irish EU Presidency completed negotiations on a political agreement on Horizon 2020, the next EU Framework Programme for Research and Innovation which will focus EU research funding from 2014-2020 on major societal challenges. The Irish EU Presidency also focused on measures to progress the European Research Area, a key component of Innovation Union. Ireland will continue to engage fully with initiatives proposed by the European commission in support of the Innovation Union strategy. |
| 1.5.10 | 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. | Enterprise Ireland have established a network of 15 Technology Centres across a range of areas of direct relevance to enterprise research needs covering manufacturing & materials, cloud, analytics & learning technologies, energy, business processes & financial services as well as food & health. Over 300 companies are directly engaged with these 15 Technology Centres. |
| 1.5.11 | We will support the development of an International Content Services Centre to make Ireland world leader in managing intellectual property. | A Feasibility Study was commissioned and finalised in January 2013. The study is still part of the deliberative process and consideration is being given to the findings and recommendations of the study in the context of development of broader FDI and Intellectual Property policy generally. |
| 1.5.12 | 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. | The Independent Copyright Review Committee published their report “Modernising Copyright” at the end of October 2013 and the principle of "fair use" is addressed in the report. The report, aimed at identifying any barriers for innovation in the digital environment and developing proposals for reducing them, is currently being analysed by Government with a view to bringing forward legislative proposals in this area in 2014. |
| 1.6.3 | 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. | Industrial Relations (Amendment) Act 2012 came into effect on 1st August 2012*. The Act provided for a reform of the statutory wage setting mechanisms (JLCs and REAs), The Act provides, inter alia, that a review of each Joint Labour Committee be carried out by the Labour Court. That Review was completed in April 2013 and published in October 2013. In January 2014 Ministerial Orders to give effect to the recommendations were signed. Industrial Relations Officers of the Labour Relations Commission have been appointed to the positions of Chairpersons and Deputy Chairpersons of the JLCs. * The Supreme Court judgment of May 9th 2013 in the McGowan case found Part III of the Industrial Relations Act 1946 to be unconstitutional thereby invalidating the registration of all REAs that were previously registered under the 1946 Act. Minister will bring proposals to Government shortly for a revised legislative framework to address matters arising from the Supreme Court ruling. |
| 1.6.6 | 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. | My Department coordinated the cross-Government 25% target for administrative burden reduction. To date, the Department, the CSO, the Revenue Commissioners and the Department of Transport have met or exceeded the 25% target. The overall reduction across Government is 20.4%; (€317m per annum). The Workplace Relations Reform Programme will deliver a simplified two-tiered structure, amalgamating the existing five Bodies and providing for a single body of first instance, the Workplace Relations Commission, and a single body of appeal, in effect an enhanced Labour Court. The Reform Programme will also provide a more efficient and effective framework for dealing with complaints and disputes and for enforcement and compliance generally. Significant progress has also been achieved to date in so far as the legislative, technological, structural, administrative and staffing changes required are concerned to underpin the workplace relations reform programme. The Government, at its meeting on 8th July, 2014, approved the publication of the enabling legislation while a single contact portal, e-complaint facility, staffing and structures plan, workplace relations website, early resolution service, adjudicator training and recruitment plans and enhanced technologies and processes are already in place. One of the Disruptive Reforms in the Action Plan for Jobs relates to the development of an Integrated Licensing Application System to help reduce the regulatory burden on the enterprise sector through the provision of a single portal for applying for, and renewing, a multiplicity of licences. The new licensing system will be developed for the retail sector in the first instance and rolled out to other sectors of the economy thereafter. A Request for Tender was issued through eTenders and in the EU Official Journal. The tender evaluation process is ongoing. Subject to the successful awarding of the services contract to an appointed provider, the System should be delivered in the Autumn 2014. Another initiative to help reduce the regulatory burden on business is , a portal where business can find relevant information on regulatory requirements quickly. This makes it easier for them to comply. Further, my Department has instituted a series of free business communication events called Taking Care of Business (TCOB), where business people can hear short presentations on regulation and available supports and interact with personnel from up to 30 agencies. Four events have been held to date and 1,150 business people have participated. Further, the Health & Safety Authority (HSA) has developed and launched a single licensing portal for occupational health & safety and chemicals licensing requirements. See - It has also developed “BeSMART” – a free online tool developed to help reduce costs for and the administrative burden on small business of meeting their legal obligations to prepare Risk Assessments and a Safety Statement under the Safety, Health and Welfare at Work Act 2005 . Current estimates put potential savings for the SME sector as a whole in the region of €60-€65m. See Registered user numbers for BeSMART at end 2013 were ahead of predictions and this trend has continued with registrations expected to exceed 30k by end 2016. The work areas covered by BeSMART continues to expand with construction and agriculture to be included in the near future. |
| 1.6.8 | 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. | This will be considered in the context of legislation to facilitate data sharing. |
| 1.6.10 | We will introduce new legally binding voluntary commercial debt plan structures to allow small businesses to restructure debts without recourse to expensive court procedures. | The Companies (Miscellaneous Provisions) Act 2013 amends existing examinership provisions to provide the option for small private companies to apply directly to the Circuit Court to have an examiner appointed instead of having to apply to the High Court. This should lower costs and provide greater accessibility for small private companies to the examinership process. |
| 1.7.1 | 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. | Fully implemented in Oct 2012. As take-up of the Scheme has not been as high as was initially planned for, the Minister commissioned an independent review of the Scheme which was submitted in Q3 2013. Since then the Department has worked with the Review Steering Group to determine the changes that can be made to the Credit Guarantee Act 2012, and the contents of a new Credit Guarantee Scheme (CGS), on foot of this review. The Minister will ensure that these changes to CGS are made in 2014 through the Action Plan for Jobs and the Department will implement the review recommendations, as appropriate, with a view to enhancing the up-take and impact of the Scheme as soon as possible. |
| 1.7.2 | 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. | Fully implemented in Oct 2012. The operation of the Microenterprise Loan Fund Act 2012 will be reviewed in 2014 pursuant to a legislative commitment. Under the Action Plan for Jobs 2014 this review has commenced with a view to enhancing the take-up and impact of the Scheme |
| 1.7.3 | 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. | The Seed and Venture Capital Scheme, the Development Capital Scheme, and Innovation Fund Ireland all form part of the suite of finance measures put in place through the Action Plan for Jobs to increase the availability of funding for SMEs. The Budget 2013 commitment of €175 million under the Seed and Venture Capital Scheme 2013-2018 will leverage a further €525 million from the private sector, for investment in high potential start-up and scaling companies. The launch of the first call for expressions of interest under the Seed and Venture Capital Scheme 2013-2018 was a key Action Plan for Jobs target for 2013 and was announced on May 31st 2014. The original timing of this call was designed to align with the end of the majority of investment periods of Funds supported under Seed & Venture Capital Scheme 2007 – 2012. The Government through Enterprise Ireland has made commitments of €99.5m to a number of fund managers under the Seed and Venture Capital Scheme 2013-2018. These funds are currently in the market raising money. Further calls for expressions of interest will be made under this Scheme in the near term targeting various sectors. The Development Capital Scheme was established to create funds that would invest between €2 million and €5 million in medium sized established companies by way of equity, quasi equity and/or debt. In 2013, a number of funds were launched under the Development Capital Scheme to provide a total of €225 million in funding to mid-sized indigenous firms, to target the development of a strong indigenous sector. The amount of leveraged capital far exceeded the initial targets (€375m was secured against an initial target of €150m). Each of these funds is actively engaging with the market to source investment opportunities. The Government through Enterprise Ireland and the National Pension Reserve Fund (NPRF) also established Innovation Fund Ireland (IFI). The objective of IFI is to attract international VCs to establish a presence in Ireland. A number of VC firms have established a presence in the Irish market and commenced investing with the most recent fund announcement being that of Lightstone Ventures which are establishing a presence in Ireland. |
| 1.7.4 | 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. This commitment goes across a number of Departments. | The Friendly Societies and Industrial and Provident Societies (Miscellaneous Provisions) Bill was published in July 2013.The Bill introduces a number of regulatory improvements for co-operative societies (Industrial and Provident Societies) and it also makes other changes. The main purpose of the Bill insofar as co-operatives are concerned is 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, thereby making the co-operative model more attractive for those wishing to use it. By introducing these legislative changes the Government is recognising the value of the co-operative business model to our economy, particularly at the present time. The primary objective of these legislative changes is to provide a regulatory environment that is supportive of the co-operative movement and of its capacity to contribute to economic and social well-being into the future. The Bill completed all Stages in the Oireachtas on 9 July 2014. The responsibility of my Department lies in the legislative provision for co-operatives in general. Any initiatives to facilitate or promote the development of co-operatives in particular sectors, for example group water schemes, renewable energy or agricultural co-operatives, would be a matter for colleagues in the respective Government Departments. |
| 1.8.7 | We will legislate to ban a number of unfair trading practices in the retail sector, such as ‘hello money’ from food suppliers. | Legislation to give effect to this commitment will take the form of enabling provisions in the Consumer Protection and Competition Bill 2014 to regulate certain practices in the grocery goods sector. The Bill completed Report and Final Stages in the Dáil on 2 July 2014 and completed Report and Final Stages in the Seanad on 15 July 2014. |
| 1.8.25 | We will seek to establish Ireland as a renewable manufacturing hub to attract international and domestic investment. | In November 2012, the Government published a Policy Statement on Growth and Employment in the Green Economy which has the objective of attracting investment in the Green Economy in Ireland. A Consultative Committee on Jobs in the Green Economy has also been established to identify emerging opportunities for Ireland in the Green Economy, which I Chair. |
| 1.9.1 | 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 trough (sic) education, community and voluntary structures. | In 2013, Forfás published a report on the potential of the Social Enterprise Sector in Ireland. Following publication of the report, an inter-departmental group was established to provide a coordinated Government approach to the development of social enterprise in Ireland and to examine the recommendations of the Forfás report in greater detail. A number of actions have been identified by the Group and are being progressed. |
| 2.3.19 | 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. DJEI is the lead only in relation to companies. | The Companies Bill 2012 will consolidate and modernise the Companies Acts 1963-2013 into a single Act. One of the main provisions in that Bill is a consolidation and clarification of the duties of directors of companies. As the existing duties come from common law, case law and Statute, this will be the first time that all existing duties are clearly stated in one legislative instrument, making it clearer and easier for directors to know their obligations. Other aspects of corporate governance will be provided for too. The Bill has completed all Stages in the Dáil and completed Committee Stage in the Seanad on 17 June 2014. Report Stage is expected to be taken in the Autumn. |
| 2.10.4 | We will strengthen corporate governance legislation and enforcement. | The Companies Bill 2012 will consolidate and modernise the Companies Acts 1963-2013 into a single Act. One of the main provisions in that Bill is a consolidation and clarification of the duties of directors of companies. As the existing duties come from common law, case law and Statute, this will be the first time that all existing duties are clearly stated in one legislative instrument, making it clearer and easier for directors to know their obligations. Other aspects of corporate governance will be provided for too. The Bill has completed all Stages in the Dáil and completed Committee Stage in the Seanad on 17 June 2014. Report Stage is expected to be taken in the Autumn. |
| 3.37.2 See 1.2.4. above | Reverse the recent cut in the national minimum wage | Cut reversed on July 1st 2011. |
| 3.41.6 | We will reform the current law on employees’ right to engage in collective bargaining (the Industrial Relations (Amendment) Act 2001), so as to ensure compliance by the State with recent judgements of the European Court of Human Rights. | Cabinet approval obtained on May 13th 2014 to develop legislative proposals to reform the Industrial Relations (Amendment) Act 2001 to give effect to commitment. Minister intends to submit draft Heads of Bill to Government shortly. |
| 4.13.5 | We will review and update Intellectual Property legislation currently in place to benefit innovation, develop a National Intellectual Property protocol to give clarity about terms on which business can access IP created in Higher Education Institutions, and clarify legislation relating to online copyright infringement and enforcement of rights relating to digital communications. | Examination of the recommendations in the Copyright Report which relates to the current Copyright legislative framework and identifying any areas of the legislation that might be deemed to create barriers to innovation is underway (see ref. 1.5.12 above); Re: IP Protocol –see 1.5.5 and 1.5.6 above; Re: clarification of the law relating to online copyright infringement and enforcement of rights relating to digital communications, Regulations came into force in February 2012 that clarified the ability to seek injunctive relief against intermediaries whose services are used by a third party to infringe a copyright or a related right. |
| 4.15.3 | We will enact the Fair Trade Act, which will ban a number of unfair trading practices in the retail sector such as ‘hello money’ which suppliers have to pay to secure a place for their goods on supermarket shelves. | Legislation to give effect to this commitment will take the form of enabling provisions in the Consumer Protection and Competition Bill 2014 to regulate certain practices in the grocery goods sector. The Bill completed Report and Final Stages in the Dáil on 2 July 2014 and completed Report and Final Stages in the Seanad on 15 July 2014. |
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