Written answers
Tuesday, 23 January 2024
Department of Enterprise, Trade and Employment
Enterprise Policy
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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244. To ask the Minister for Enterprise, Trade and Employment where Ireland currently ranks on the World Bank 'ease of doing business' index; what plans his Department has to improve this; and if he will make a statement on the matter. [2812/24]
Simon Coveney (Cork South Central, Fine Gael)
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Publication of the World Bank’s (WB) indicators, in the Doing Business report, has now been suspended indefinitely, while the WB formulates a new approach to assessing the business and investment climate in economies worldwide. It is expected that a new set of indicators, to be published as the ‘Business Ready’ (B-Ready), will not be available in the near term. However, there are alternative tools that can be used to assess Ireland’s performance in this regard.
On 20thJune 2023, the Institute for Management Development (IMD) published its World Competitiveness Yearbook 2023. This year’s report ranks Ireland as the most competitive country in the euro area and the 2ndmost competitive economy in the world (out of 64 economies), an improvement from 11thposition last year.
The IMD Competitiveness Yearbook assesses and ranks 64 economies around the world based on their ability to create and maintain a competitive business environment. The rankings are based on more than 336 indicators grouped across four pillars: Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure.
Ireland rose six places under Economic Performance between 2022 and 2023 (up from 20th position in 2021). Ireland’s ranking under Government Efficiency continued to improve in 2023, reflected in a move from 13th to 7th place in 2023. Ireland’s performance in Infrastructure improved marginally in 2023 (ranked 19th up from 23rd in 2022). Finally, Ireland improved its performance under the Business Efficiency pillar in 2023, moving up from 11thin 2022 to 3rdplace in 2023I.
The National Competitiveness and Productivity Council published its Competitiveness Challenge report in September 2023. The Council has made 19 policy recommendations to Government centred around the areas of infrastructure delivery, energy generation and consumption, as well as improved performance on research, development, and innovation. The Government published its response to Council’s recommendation on 28thNovember 2023.
The Government’s approach to enterprise policy continues to be guided by the priorities set out in the White Paper on Enterprise 2022-2030 – published in December last year. The White Paper aims to ensure that Irish-based enterprises can succeed internationally, through a focus on innovation and productivity. To achieve the vision set out in the White Paper on Enterprise, across Government we are focused on seven priority enterprise policy objectives:
- integrating decarbonisation and net zero commitments;
- placing digital transformation at the heart of enterprise policy;
- advancing Ireland’s FDI and trade value proposition;
- strengthening the Irish-owned exporting sector;
- enabling locally trading sectors to thrive;
- stepping up enterprise innovation; and
- building on Ireland`s existing strengths and opportunities, through a clustering approach.
The White Paper also includes an examination of the key components of the competitive enterprise environment including cost of doing business, alongside infrastructure, skills and talent, access to finance, taxation and regulation. The first Implementation Plan for the White Paper on Enterprise was published in May of this year, and identifies a portfolio of 40 new and ongoing initiatives and projects across the seven priority objectives set out in the White paper. The first update report detailing progress made across Government on these initiatives and projects is due to be published shortly.
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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245. To ask the Minister for Enterprise, Trade and Employment for an update on the application of the SME test since its introduction; if he feels it is being applied in a manner which delivers for SMEs; and if he will make a statement on the matter. [2813/24]
Neale Richmond (Dublin Rathdown, Fine Gael)
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The SME Test is a regulatory impact assessment tool that encourages policymakers across Government to consider the impact new legislation or regulations may have on SMEs. The Test was designed by my Department to ease the regulatory burden on SMEs, and should be applied by all Departments to new relevant legislation.
Implementation of the Test is a commitment in the Programme for Government and is one of the reforms under the National Recovery and Resilience Plan (NRRP). As part of the NRRP reform, a series of milestones were agreed between the Department of Enterprise, Trade and Employment and the European Commission, including the establishment of a reporting framework across Government Departments to measure uptake of the Test. In Q1 2022 my Department established a cross-Government network to identify and ensure that the SME Test is applied to all relevant upcoming legislation.
The Test sets out the following four-steps for policymakers to consider when drafting legislation as part of the Regulatory Impact Assessment: identification of affected businesses; consultation; assessment of impacts; and consideration of mitigating measures.
Since its launch in 2021, officials in my Department have been monitoring, on a quarterly bases, the application of the SME Test and to date 11 Departments applied the test to 21 pieces of legislation.
This Department is committed to ensuring the SME Test is being applied in a manner which delivers for SMEs and will be increasing engagement with the cross-government network in 2024.
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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246. To ask the Minister for Enterprise, Trade and Employment for an update on the 'Global Ireland 2025'; the successes to date on diversifying export markets and delivering inward investment and tourism; and if he will make a statement on the matter. [2814/24]
Neale Richmond (Dublin Rathdown, Fine Gael)
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Global Ireland 2025 is a whole-of-Government strategy, led by the Department of Foreign Affairs, that aims to double Ireland’s global footprint and influence in the period 2018 to 2025. In July 2023, a review of the strategy found that implementation has brought significant benefits to Ireland, including by equipping our country to better withstand the challenges of recent years; positioning Ireland to make effective contributions on issues of national and global concern, and supporting a diversification in markets and international alliances.
With regard to the actions in the Strategy for delivery by the agencies of my Department, I can update as follows:
Accelerate diversification of export markets by Enterprise Ireland clients
Enterprise Ireland (EI) is working to double the total value of client exports outside the UK from the 2015 baseline; to double Eurozone exports; and to increase the diversification of client exports into new markets by 2025. This approach is working. EI client companies are achieving international sales at record levels, driving innovation and bringing the Irish Advantage to a wide range of sectors including MedTech, High-Tech Construction, Fintech, Agri-Tech, ICT and emerging technologies.
Enterprise Ireland reported strong levels of export performance by its client companies in 2022 - €32.1bn, up over 55% since 2015. In 2022 exports to the Eurozone region saw record levels of €7.9bn, while exports to North America stood at €5.5bn in 2022, up from €2.9bn in 2015. The UK market, with exports of €9.2 billion now accounts for 29% of client exports, in 2015 this was 37%. These performances reflect EI's emphasis on the importance of diversifying into new markets as a result of Brexit whilst also retaining a strong export presence in the UK where exports have increased by €1.7 billion since 2015.
EI has expanded its global presence through the opening of eight new offices internationally in Munich, Lyon, Manchester, Copenhagen, Montreal, Seattle, Melbourne and Ho Chi Minh City. These offices are being embedded into the Enterprise Ireland overseas network; and will help to build new buyer relationships in markets where growth opportunities have been identified.
EI continues to scale its international export marketing campaign “The Irish Advantage”, a digital export promotion campaign focused on stimulating awareness of Irish products and services in international markets and encouraging buyers to source from Ireland.
Accelerate diversification of FDI source markets, doubling growth in IDA-supported project investments from non-US markets in the period 2018-2024.
As part of its current Strategy Driving Recovery and Sustainable Growth 2021-2024, Market Diversification is a key focus for IDA Ireland in terms of sectors and broadening the geographic profile of investment.
IDA Ireland will continue its focus on winning investment from Europe, the UK, and Asia-Pacific and is aiming to grow the base of clients from Asia-Pacific in Ireland, building upon the strategic projects secured in recent years and on the international ambitions of target clients. IDA Ireland will continue to build awareness of Ireland’s value proposition in locations with significant potential as FDI source markets.
The United States, as the world’s largest economy and innovation leader, will remain a key market as IDA Ireland continues to target job creating investment opportunities arising from disruptive innovation, digital transformation and environmental sustainability.
IDA’s focus on diversifying investments has paid dividends over the past number of years with an increasing share of investments coming from outside North America, this share has increased from 29% for 2010 to 2014 to 33% for 2015 to 2019, to 35% in the current strategy to date (2021-2023).
Actions in Global Ireland 2025 relating to the development of the tourism sector are a matter for my colleague the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media.
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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247. To ask the Minister for Enterprise, Trade and Employment where Ireland stands on the Total Early-Stage Entrepreneurial Activity index by comparison to the OECD average; and if he will make a statement on the matter. [2815/24]
Neale Richmond (Dublin Rathdown, Fine Gael)
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Entrepreneurs are vital to the success of the Irish economy and the continued growth of our economy is highly dependent on entrepreneurs and the businesses that they create, develop, and grow.
The Total Early-Stage Entrepreneurial Activity (TEA) Index, is a product of the Global Entrepreneurship Monitoring Report. Ireland last participated in this report in 2021/2022 and the TEA rate for Ireland was 12.5%, significantly above the EU average of 8.4%. The report does not include an OECD average for comparison.
The OECD Missing Entrepreneurs 2023 report states that in Ireland, “the proportion of people working on start-ups and managing new businesses (i.e. TEA rate) was above the EU average between 2018 and 2022 (12% vs. 7%). The shares were higher for women (9% vs. 6% in the EU), youth (18-30 years old) (15% vs. 9%) and seniors (50-64 years old) (9% vs. 4%)”.
The SME & Entrepreneurship Growth Plan (2021) was developed by the SME Growth and Entrepreneurship Taskforce made up of entrepreneurs, business leaders and other individuals uniquely positioned to contribute to a long-term vision for the SME sector. This built on a comprehensive review of SME & Entrepreneurship Policy in Ireland, completed by the OECD in 2019.
The Taskforce’s Growth Plan sets out a wide range of recommendations with long-term strategic relevance for SME and entrepreneurs, including measures to assist companies to start up, scale up, enhance their digital and green capabilities, and increase export activity.
There has been significant progress on implementation of the priorities. The Taskforce brings annual progress reports to government. The Taskforce will continue to meet and report to Government in 2024.
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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248. To ask the Minister for Enterprise, Trade and Employment for an update in relation to his Department's efforts to stimulate more exporting and internationalisation in the SME population, including broadening export markets beyond the British market; and if he will make a statement on the matter. [2816/24]
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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249. To ask the Minister for Enterprise, Trade and Employment for an update on the percentage of Irish SMEs currently exporting and the domestic value added in Irish exports from SMEs; and if he will make a statement on the matter. [2817/24]
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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258. To ask the Minister for Enterprise, Trade and Employment the current percentage of Irish SMEs who export; whether exporting by SMEs has increased, decreased, or remained the static since this Government came to office; if his Department has a target to increase SME exporting; if so, the target; and the timeframe for same. [2837/24]
Neale Richmond (Dublin Rathdown, Fine Gael)
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I propose to take Questions Nos. 248, 249 and 258 together.
To achieve sustainable, diversified growth, and enhanced economic resilience, it is vital that the Irish-owned enterprise sector fulfils its potential to scale and succeed on global markets.
The White Paper on Enterprise sets out an ambition for 2,000 additional Irish-owned exporters by 2030. To help achieve this ambition, Enterprise Ireland has a strategic priority of fostering an environment that nurtures entrepreneurship, supports the sustainable growth of Irish-owned firms and increases and diversifies Irish exports. In addition, the Local Enterprise Offices are working to help smaller prospective exporters to develop the required capacities.
Enterprise Ireland supports to exporting SMEs include direct financial assistance through grants, loans, and equity investments; Market Research and export development assistance; funding and mentoring for Innovation and Research; and facilitating international trade missions and market access opportunities.
Enterprise policy is supporting Irish companies in their growth into international markets by addressing barriers in access to finance and building stronger pipelines for company development through consistent agency support measures.
Irish-manufactured products continue to compete very well on world markets. The most recent figures illustrate that 2022 was a record year for Irish-owned business in terms of international sales. Companies supported by EI achieved export sales of €32.1 billion, an increase of 19% on the previous year, and growth occurred across all overseas regions and in individual industry sectors. Exports to the UK increased by 13% and the Eurozone increased by 28%. The Eurozone now accounts for 25% of all exports by EI client companies with a value of €7.9 billion.
In the UK, which remains EI clients’ largest market, exports increased to €9.2 billion, or 29% of total exports, despite the continued challenges of volatility and uncertainty. The North American Market remained strong during the year with a growth rate of 13% of exports and now accounts for €5.5 billion or 17% of total exports. Food and Sustainability, Technology and Services, and Industrial and Life sciences were the fastest growing sectors, increasing by 22% to €16.258 billion, 18% to €7.397 billion and 14% to €8.525 billion respectively.
These are significant exports results and reflect the incredible innovation and ambition of the Irish enterprise sector and demonstrate the continued strength of Irish products and services in international markets.
I have referred the Deputy's request for statistics relating to the percentage of SMEs that currently export and the domestic value added from exporting SMEs to the Central Statistics Office, who have undertaken to engage directly with the Deputy on this.
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