Annual Report 2008
1
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Introduction by Secretary General 2
Organisation Chart 4
Summary of Key Activities and
Achievements in 2008 5
Pillar 1: Investing in Knowledge
and its Application 8
Science & Technology 8
Intellectual Property 13
North/South 13
Pillar 2: Enterprise Development Policies
in a Competitive High-Value Economy 14
Competitiveness and Productivity 14
Enterprise Policy 15
Tax 16
Sustainability and Environmental Challenges 16
Enterprise Growth 18
Foreign Direct Investment 19
Entrepreneurship 20
Balanced Regional Development 21
International Trade 21
North/South 25
Cross-Departmental Issues 25
Pillar 3: Skills Supply, Enhancement
and Participation in the Workforce 26
Skills Enhancement 26
Skills Supply 27
Participation 28
Review of FÁS Programmes and Expenditure 29
Cross Cutting Issues 29
North/South 30
Pillar 4: Workplace Partnership
& Employment Rights 31
Social Partnership and Industrial Relations 31
Employment Rights 32
Employment Rights Compliance 34
Occupational Health and Safety 34
Redundancy and Insolvency Payments 35
Cross-Departmental Issues 36
Pillar 5: Better Business Regulation
and the Consumer 37
Better Regulation 37
Competition Policy 37
Consumer Policy 38
Personal Injuries Assessment Board (PIAB) 40
Companies 40
Company Law (Financial Services) Unit 40
EU Legislation on Company Law 41
Friendly Societies and Industrial &
Provident Societies (Co-Operatives) 42
Pillar 6: Delivery of Our Strategic Goals 43
Quality Customer Service 43
Management Support 43
Financial Management 44
Human Resources Management (HRM) and Training 45
Information & Communications Technology 46
Departmental Working Environment 47
Openness, Transparency & Accountability 47
Change & Modernisation 48
Decentralisation 49
Data Strategy 49
Appendices 50
Contents
2
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
This Annual Report for 2008 sets out the Department’s
achievements in the first year of implementing the new
Statement of Strategy 2008-2010.
I am pleased to report that during 2008 substantial progress
was made by the Department and its Agencies in delivering on
the goals, strategies and objectives set out in the 2008-2010
Statement of Strategy.
In terms of supporting enterprise, substantial improvements
were made to the R&D Tax Credit Scheme to support R&D
investment in Ireland, while Enterprise Ireland provided support
for 71 innovative high potential start-up (HPSUs) companies. In
addition, the Department provided over €20m to the County
and City Enterprise Board network for the development of
micro-enterprises throughout the country.
On the foreign direct investment front, IDA Ireland announced
130 new investments, up 14% on the previous year, creating
circa 8,800 new jobs and securing investment of circa €2 billion.
Significant funding, over €1 billion in total, was provided to
FÁS to support training activities for the unemployed seeking
to reskill/upskill; and for those in employment, including
apprentices, to allow them to participate in employment-
related upskilling.
Key developments under the Department’s legislative
programme during the year included the enactment of the
Chemicals Bill 2008 and the publication of the Employment Law
Compliance Bill 2008. Significant progress was also made on
the drafting of the Companies Consolidation and Reform Bill,
while work commenced on legislation to merge the National
Consumer Agency and the Competition Authority, with the
aim of ensuring improved co-ordination in competition and
consumer protection policy areas.
From an employment rights point of view, at the start of 2008,
the National Employment Rights Authority (NERA) launched a
successful public awareness and media campaign. During the
course of the year, NERA achieved substantial increases in the
number of workplace inspections undertaken, as a result of
increased resourcing of the NERA Inspectorate.
In light of the continuing pressure on the public finances,
savings and increased value for money were achieved. In the
second half of the year, the Department achieved savings
of over €69 million on its original 2008 budget allocation
of €1.9 billion. These savings were realised through setting
revised expenditure targets and closely monitoring financial
performance across the Department and its agencies. As
regards value for money (VFM), an independent VFM Report
on Science Foundation Ireland (SFI) Programmes concluded
that SFI’s funding has produced research outputs which can be
measured among the highest in quality terms in the ICT and
Biotechnology fields internationally. Savings were also achieved
by the Personal Injuries Assessment Board (PIAB), who were
responsible for processing more than 24,000 personal injury
claims, with awards made totalling €217m. The estimated
direct savings, when compared to the previous litigation
system, are almost €50m.
As regards internal management, a new Human Resources
(HR) Strategy 2008-2010 for the Department was completed
in 2008. Another significant development was our participation
in the first phase of the Organisational Review Programme
(ORP) that was launched by the Taoiseach in 2007. The ORP
Team found that the Department was well placed to deliver
in the future on the goals set out in its Statement of Strategy.
Nonetheless, the Department prepared an Action Plan, for
implementation in 2009, to address those specific areas where
further improvement could be achieved.
Introduction
by Secretary General
3
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Finally, the Department also continued its development of
eGovernment facilities to improve services to our customers.
During 2008, the Patents Office online system was extended
to allow customers to pay registration and grant fees online.
The achievements outlined above and also those in the main
text of this Annual Report all reflect the commitment of staff in
the Department, its Offices and Agencies to respond effectively
to the challenges posed by our demanding agenda. Once again
I would like to express my gratitude to the staff in the Department
and Agencies for their dedication and professionalism.
Looking ahead, the operating environment in 2009 presents
further challenges, not least driving improvements in
competitiveness and future economic progress, and maintaining
the direction of our strategic goals and policies at a time when
the resources available to the Department will be significantly
constrained. I am confident that, with the continuing
commitment and cooperation of my colleagues, we will meet
these challenges.
Sean Gorman
Secretary General
4
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Department Structure as at December 2008
Tánaiste and Minister for Enterprise, Trade & Employment
Mary Coughlan, T.D.
Office of the Minister
for Science Technology
and Innovation
Dr Jimmy Devins, T.D.
Office of the Minister
for Trade and Commerce
John McGuinness, T.D.
Office of the Minister
for Labour Affairs
Billy Kelleher, T.D.
Secretary General
Sean Gorman
Commerce,
Consumers &
Competition
Assistant Secretary,
Breda Power
Corporate
Services &
Economic Policy
Assistant Secretary,
Gerry Donnelly
Competitiveness
& International
Affairs
Assistant Secretary,
Clare Dunne
Employment
Rights & Industrial
Relations
Assistant Secretary,
Dermot Curran
Enterprise & Agencies
Assistant Secretary,
Brian Whitney
Labour Force Development
Assistant Secretary,
Dermot Mulligan
Science, Technology
and Intellectual Property
Assistant Secretary,
Martin Shanagher
Divisions
Organisation Chart
5
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
2008 was a particularly challenging year for the Irish
economy. The deterioration in international economic
conditions, coupled with domestic pressures, in particular
the contracting construction sector, resulted in a significant
contraction in economic activity. National accounts data show
a decline of 2.3% in GDP in 2008, with a decline of 3.1%
in GNP
1
. Employment decreased significantly in 2008 with
the numbers employed falling by 86,900 (-4.1%) in 2008.
The unemployment rate also increased from 4.5% to 7.7%
in the year
2
.
This Annual Report sets out progress in 2008 under each of six
key Pillars of the Department’s endeavours. The key activities
and achievements in each area are summarised below.
Investing in Knowledge and its
Application
This is a key strategy for securing Ireland’s future economic
growth. The significant levels of investment, €8.2bn, envisaged
in the Strategy for Science, Technology and Innovation (SSTI)
2006-2013, are intended to provide the cornerstone for
improving our competitiveness by enhancing our capacity
to create and use knowledge. Our Annual Report highlights
some of the positive results from this investment. In particular,
business expenditure on Research & Development (R&D) in
2008 increased by an estimated 5.4% to €1.687b over 2007,
despite difficult economic circumstances; while the level of R&D
investment by IDA Ireland has almost trebled since 2004, to a
total of €420m.
The commitment to supporting R&D investment by enterprises
was evidenced by a number of new or improved incentives.
Substantial improvements were made in the R&D Tax Credit
Scheme; the 2008 Budget increased the rate of the tax credit
from 20% to 25% and there are now options to achieve
significant savings in the cost of carrying out R&D, either
offset against tax on company profits or in the form of a cash
payment from the Revenue Commissioners. Furthermore,
a revised and simplified Research and Development Grant
Scheme, which will make €500m available to companies
across all sectors over the remaining period of the Strategy
for Science, Technology and Innovation, was launched in
January 2008. The new scheme will see Enterprise Ireland
and IDA Ireland streamlining their various R&D funding supports
to make it as straightforward as possible for companies to get
funding for their R&D projects. Enterprise Ireland committed
in the region of €50m, while the IDA provided €36.75m, in
support of this R&D initiative in 2008.
This financial investment was supplemented by an Enterprise
Ireland initiative setting up a panel of R&D Advocates
– experienced individuals who have managed R&D functions
in the past and can explain the potential rewards from such
investment – to provide direct personal contact and advice
to individual companies. Enterprise Ireland also continued
the Innovation Voucher Scheme, with companies using
the vouchers to access academic expertise in a wide range
of sectors, particularly in the areas of eCommerce, Digital
Mechanisms and Communications Technologies. The aim of
this scheme is to build links between Ireland’s public knowledge
providers and small businesses to assist with the development
of business opportunities and solutions, and create a cultural
shift in the small business community’s approach to innovation.
Vouchers worth €5,000 were issued to 588 small businesses
in 2008. The extension of this scheme as an all-island initiative
was also announced in 2008 and will help to drive innovation
on both sides of the border, to the benefit of all.
Enterprise Development Policies in
a Competitive High-Value Economy
The key focus is on maintaining competitiveness and enterprise
capacity throughout the economy. Our Strategy Statement
acknowledged that Ireland was no longer a low-cost economy
and, accordingly, many of our objectives were geared
towards sophisticated, knowledge-intensive manufacturing.
Nevertheless, it remains crucial to increase productivity and
export potential, as the economic well-being of a small open
economy like Ireland depends on our ability to be competitive
in a highly-globalised, free-trading, world.
Summary of Key Activities
and Achievements in 2008
1 Source: Department of Finance Monthly Economic Bulletin, April 2009
2
Central Statistics Office Quarterly National Household Survey Quarter 4 2008
6
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Sustainability issues remained to the fore and we envisage
that developments in the green economy have the potential to
create quality jobs in a sustainable and high growth sector. With
a view to developing this potential on the island of Ireland,
Forfás, at the request of the Department and in conjunction
with InterTradeIreland, published a study in October 2008
“Environmental Goods and Services Sector on the Island
of Ireland, Enterprise Opportunities and Policy Implications”.
Arising from this report, further work is being undertaken in
2009 to ensure that the potential in this important economic
area is exploited.
In 2008, Ireland’s export trade was, at €154bn, only 1% less
than the previous year. This impressive performance by Irish
exporters in the light of the global recession was facilitated by
a continued focus on maximising opportunities for the sale of
Irish goods and services. The Department played a pivotal role
in leading trade missions to existing and emerging markets,
and our Agencies’ overseas network of offices continued to
provide intensive assistance to companies seeking to establish
or expand export markets.
The Department, through its Agencies, provides a range of
financial and professional supports to enterprises. Responding
to the deteriorating environment, Enterprise Ireland redeployed
resources to work intensively with companies to help them
retain existing customers and to identify new markets, with
a particular emphasis on key areas within the Eurozone. The
agency also established specialised units to support client
companies in dealing with financial restructuring and to help
companies drive down costs and focus on lean processes. In
addition, over €20m was provided to the CEB network for the
development of micro-enterprises throughout the country.
Adjusting our enterprise support programmes to reflect the new
global economic realities was an important imperative in 2008
to which we remain committed in 2009.
Practical supports have been developed to facilitate links
between industry and academia. For example, 52 Innovation
Partnerships, involving collaborative R&D projects between
college research groups and industry were supported in 2008.
In addition, 10 Technology Transfer Offices supporting the
transfer of intellectual property to industry from research
facilitated the creation of 7 spin-out companies, the disclosure
of 382 discoveries and inventions, the filing of 281 patent
applications and the transfer of 61 technology licences,
options and assignments to companies. The establishment
of the industry-led Competence Centre Scheme resulted in
the creation of 7 competence centres nationally, involving 65
companies. These centres will be resourced by highly qualified
researchers associated with research institutions who are
empowered to undertake market-focussed strategic R&D
for the benefit of industry.
Foreign direct investment remained a key contributor to
employment and output. Throughout 2008, IDA Ireland
continued to strengthen its efforts to attract Foreign Direct
Investment by shifting resources from to their front line
operations thus improving its effectiveness in an increasingly
competitive market place. A measure of their success is
reflected by the fact that IDA-supported companies paid an
estimated €3bn in Corporate Tax in 2007, accounting for
over 50% of the total corporate tax-receipts. They also spent
€15.84bn in direct expenditure within the economy.
Skills Supply, Enhancement and
Participation in the Workforce
The international economic downturn had a significant impact
on employment levels throughout the year and a number
of initiatives in this pillar of our strategy were introduced to
assist those becoming unemployed, promote the development
of human capital and ensure enterprises have the right skills
available to them to grow and develop.
A total of approximately €1.076bn was allocated towards FÁS
training and employment activities in 2008. The resources
were invested, in particular, towards providing additional
skills training for unemployed people who had lost their jobs
as a result of the sharp economic downturn. This resulted in
over 40,000 employment seekers embarking on FÁS training
programmes. Furthermore, 204,000 training days were
delivered to 32,390 participants under the FÁS Competency
Development Programme for people in employment. In
addition, FÁS actively engaged with 60,260 people referred
to them by the Department of Social and Family Affairs for
the purpose of assisting their integration into the labour
market. Of this total, 33,919 left the Live Register.
On a broader level, the Department also commenced work
with FÁS and the Expert Group on Future Skills Needs to
ensure current labour market interventions accurately reflected
the latest changes in labour and skills availabilities, with
appropriate adjustments made to migration policy also.
Workplace Partnership and Employment
Rights
The Department continued to work to ensure that good
industrial relations and the Department’s active engagement
with the social partnership process were maintained.
This Report notes that, throughout 2008, the Department
supported the Social Partnership process through engagement
in national level negotiations, participation in Social Partnership
structures including monitoring and reporting arrangements,
bilateral contacts with the employers and trade union partners, and
the development of policy initiatives and legislative commitments
arising under the Social Partnership Agreement, Towards 2016.
7
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
The benefit of labour market stability is well recognised and the
Government committed under the Towards 2016 Agreement to
a series of measures to greatly increase public confidence in the
system of employment law compliance. The Employment Law
Compliance Bill 2008 was published in March and is designed
to give effect to those commitments. The main purpose of the
Bill is to strengthen employment rights compliance and ensure a
level playing field between employers such that no competitive
advantage is gained through denial of workers’ entitlements.
Three additional rights commissioners, plus support staff,
were appointed during 2008 to deal with an increase in the
number of referrals to the Rights Commissioner Service of the
Labour Relations Commission. Specific interventions by the
Department’s dispute resolution bodies allied to the overall
approach to industrial relations embedded in the partnership
process helped reduce the number of days lost to industrial
disputes during 2008 to 4,179, the lowest since records began
in 1923.
Better Business Regulation and
the Consumer
This report details the range of activities undertaken during
2008 to protect consumers and minimise the administrative
burdens on industry. A national target of 25% was set in March
2008 for the reduction of administrative burdens by 2012. The
Department put in place a project to measure the “red tape”
cost for business arising from Company Law, Employment Law
and Health & Safety Law and identify ways in which these costs
can be reduced, in order to make the interaction between
business and government more efficient and support other
measures to enhance competitiveness.
A particular concern during 2008 was the differential in
the price of a range of goods between this jurisdiction and
Northern Ireland and the UK. A Forfás analysis, carried out in
2008 revealed that the extent of the additional cost of doing
business in the Republic would only justify a differential of
5-6% in prices between the south and the north. Retailers,
suppliers and distributors differed in their arguments on
the reasons for the higher differentials, which prompted An
Tánaiste to request the Competition Authority to carry out a
study of the retail import/distribution sector to determine how
competition is working in the sector. This report was published
in June 2009 and will assist in informing the debate on ensuring
competition works for the benefit of the consumer throughout
the Irish economy.
The Budget 2008 announcement of the proposed merger
of the National Consumer Agency and the Competition
Authority is designed to help to ensure improved co-ordination
in competition and consumer protection policy areas, and
achieve important synergies that should ultimately serve
both the consumer and business better.
The Company Law sector received significant attention
during 2008. In addition to ongoing work on the Companies
Consolidation and Reform Bill, further progress was made in
relation to a number of European Directives, on cross-border
mergers of limited liability companies, on shareholders rights,
on annual accounts of certain types of companies, and an EU
Regulation that will make it easier for European Small- and
Medium-Sized Enterprises (SMEs) to conduct cross-border
business by providing them with a European legal form based
on common company law principles and adapted to the specific
needs of SMEs.
Delivery of our Strategic Goals
The frameworks established under this pillar aim at enhancing
our capacity to achieve all the Department’s goals, objectives
and strategic actions. A review of the Department’s capability
to deliver for its stakeholders was carried out during 2008 as
part of the Government’s Organisational Review Programme.
The Department published in November 2008 an Action Plan
setting out 38 specific strategic actions that it will implement
to improve our capacity to deliver our goals and objectives.
In parallel, the Department continued to invest in human
resources, training and ICT support and skills, both to support
staff in maximising their potential and to further enhance their
ability to deliver the Department’s goals and objectives. A new
HR Strategy for 2008-2010 was developed which provides
a framework for the development of a number of new HR
policies, such as identifying and using appropriate workforce
planning techniques, the management of underperformance
and providing greater supports for the devolution of day-to-day
HR management to line managers.
The foregoing is a short summary of the key achievements
of the Department of Enterprise, Trade and Employment in
2008. By its nature, it presents just a snapshot of some of the
progress we made during the year in implementing our overall
Statement of Strategy for the years 2008-2010. A further
picture of the wide range of progress made during 2008 is set
out in the detailed chapters of this Annual Report that follow.
8
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
GOAL
TO IMPROVE OUR COMPETITIVENESS BY
SIGNIFICANTLY ENHANCING OUR CAPACITY TO
GENERATE, PROTECT AND USE NEW KNOWLEDGE
FOR ECONOMIC AND SOCIAL GAIN.
Science & Technology
Objective
To lead and co-ordinate the whole-of-Government
approach to implementation of the Strategy for
Science, Technology and Innovation 2006-2013 (SSTI).
Report on Strategic Actions
The Coordination and Governance system, established under
the Strategy for Science, Technology and Innovation (SSTI)
continued to operate effectively in 2008. The Interdepartmental
Committee (IDC) for Science, Technology and Innovation (STI),
which met on seven occasions in 2008, has overall responsibility
for driving and monitoring the implementation of the SSTI
and reporting to the Cabinet Committee on STI. In 2008,
the IDC agreed a set of metrics to track and correlate the
inputs, impacts, outcomes of SSTI. In addition, 2008 saw the
establishment of an Enterprise Feedback Group (EFG) comprised
of members representing some of Ireland’s leading companies
to provide a strong enterprise perspective on the direction of
SSTI.
Technology Ireland (TI) membership consists of senior
representatives of the Department and its industrial
development agencies, as well as representation from the
Higher Education Authority. During 2008, TI initiated studies
in relation to commercialisation outputs, and mapping the
strengths of science and technology sectors within both
industry and public research. Initiatives that the forum
progressed during the year included the establishment of the
industry-led Competence Centre scheme, the launch
of Enterprise Innovation Networks to assist industry in
sharing innovation knowledge, promotion of the R&D Tax
Credit, progress on the Framework 7 Programme, Technology
Transfer and issues arising with retention of fixed term contract
researchers.
During 2008, the Advisory Science Council published reports
on the development of a careers framework for researchers and
Ireland’s international engagement in STI and, in conjunction
with his ongoing role in providing scientific advice to the
Government on a range of issues, the Chief Scientific Advisor
played a leading role in 2008 in ensuring that Dublin’s bid to
host the European City of Science event in 2012 was successful.
An Taoiseach, Brian Cowen, T.D., An Tánaiste and Minister for Enterprise,
Trade and Employment, Mary Coughlan, T.D., Dr. Jimmy Devins, T.D.,
Minister for Science, Technology and Innovation, Eamonn Ryan, T.D.,
Minister for Communications, Energy and Natural Resources, and Batt
O’Keeffe, T.D., Minister for Education and Science, at the launch of the
first Report of the Strategy for Science Technology & Innovation.
Pillar 1: Investing in Knowledge
and its Application
9
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Strategy for Science Technology & Innovation
The Strategy for Science Technology & Innovation (SSTI) is
central to building a Smart Economy and to economic recovery.
It will drive the commercialisation of our research investment
and the generation of a strong reputation for higher education
and research, and quality graduates at both undergraduate and
postgraduate levels. The First Report on the implementation of
the SSTI was published in 2008 and indicates that significant
progress has been made towards realising the objectives of
the SSTI. Some of the key highlights include:
total Research and Development (R&D) spending in Ireland •
has almost trebled over the last decade from a very low
base. Ireland’s total expenditure on R&D had risen to an
estimated 1.67% of GNP by 2008
Higher Education R&D spending has grown to reach the •
OECD and EU-25 average, having a significant impact in
terms of human capital development, feeding through
to attraction of Foreign Direct Investment (FDI) and
commercialisation
the number of SFI-funded Principal Investigators and their •
teams has grown from 200 in 2005 to 322 at the end of
2008, with 30% of these being attracted from overseas
our strengthened research environment was reflected by •
IDA Ireland securing 56 R&D investments with a total value
of €420 million, a threefold increase on the 2004 figure of
€140 million
total Business Expenditure on R&D has increased from •
€1,329 millions in 2005, to €1,603 millions in 2007 and
to €1,687 millions (estimated)
3
in 2008, a 5.4% increase
despite difficult economic circumstances
4
, and
commercialisation activity facilitated the creation of •
7 spin-out companies, the disclosure of 382 discoveries
and inventions, the filing of 281 patent applications
and the transfer of 61 technology licences, options
and assignments to companies.
Discover Science and Engineering
During 2008, Discover Science and Engineering (DSE)
continued to implement a range of programmes designed to
achieve its objective of furthering public awareness of science
and the attractiveness of science as a career. Specifically, the
programme, which is managed by Forfás on behalf of DETE,
is working to address the declining numbers of students
choosing science subjects at second and third level.
DSE initiatives funded during 2008 included:
Discover Primary Science, a programme that facilitates •
teacher training in general primary science, and provides
teachers with useful online resources – which can also be
used by parents and students – and classroom activity packs
Science Week, a week-long programme of events across •
Ireland each November which aims to make science more
interesting and accessible to children and adults alike
Greenwave, which is a mass science experiment involving •
primary schools across Ireland. It examines and records
how spring arrives in Ireland, and
Discover Sensors, which supports the use of sensor •
technology in hands-on scientific investigations by Junior
Science students.
A panel of international experts reviewed the DSE Programme
during 2008 and confirmed that DSE represents very good
value for money, is playing an important role in encouraging
young people to study science and technology and also that
it is operating efficiently and with flair and efficiency, and is
recognised by its stakeholders to be a success and a significant
innovator in its field.
Objective
To foster excellence in research in Ireland and to
develop and sustain Ireland as a location of choice for
researchers and firms seeking to conduct world-class
scientific research.
Science Foundation Ireland
Science Foundation Ireland’s focus is on research excellence to
enhance Ireland’s human capital in strategic areas of scientific
endeavour relevant to the future competitiveness of industry
and enterprise. Since its establishment in 2000, the remit of
SFI has been in the areas of Information and Communications
Technologies (ICT) and Biotechnology. In May of 2008, its remit
was expanded to include the area of Sustainable Energy and
Energy Efficient technologies.
of Enterprise Innovation Networks to assist industry in
sharing innovation knowledge, promotion of the R&D Tax
Credit, progress on the Framework 7 Programme, Technology
Transfer and issues arising with retention of fixed term contract
researchers.
During 2008, the Advisory Science Council published reports
on the development of a careers framework for researchers and
Ireland’s international engagement in STI and, in conjunction
with his ongoing role in providing scientific advice to the
Government on a range of issues, the Chief Scientific Advisor
played a leading role in 2008 in ensuring that Dublin’s bid to
host the European City of Science event in 2012 was successful.
An Taoiseach, Brian Cowen, T.D., An Tánaiste and Minister for Enterprise,
Trade and Employment, Mary Coughlan, T.D., Dr. Jimmy Devins, T.D.,
Minister for Science, Technology and Innovation, Eamonn Ryan, T.D.,
Minister for Communications, Energy and Natural Resources, and Batt
O’Keeffe, T.D., Minister for Education and Science, at the launch of the
first Report of the Strategy for Science Technology & Innovation.
3 The 2008 figure relates to expected expenditure as estimated figures were returned by enterprises before the final figures were available
4
CSO/Forfás Business Expenditure on Research and Development Survey was published on 2nd July 2009
10
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
SFI continued its work in 2008 on building long-term industrial
competitiveness. Key achievements in this area include:
In total, SFI-funded projects at the end of 2008 involved •
partnerships with over 300 distinct companies both
indigenous and multinationals.
SFI supported a total of 2,650 researchers engaged in high •
quality international peer-reviewed research on SFI teams –
an increase of 241 on the end of 2007 position.
The number of SFI-funded Principal Investigators and their •
teams has grown from 200 in 2005 to 322 at the end of
2008, with 30% of these being attracted from overseas.
SFI-funded PhD student places have grown from 610 in •
2005 to 1,344 at the end of 2008.
Publications by SFI-funded researchers have grown from •
1,252 in 2005 to 1,730 at the end of 2007. This has helped
to move Ireland above the EU average publications per
million population, thus enhancing Ireland’s reputation
as a location for knowledge creation.
In recent years, the SFI-funded research groups have become
an ever more integral part of IDA Ireland’s strategy of attracting
more R&D based foreign direct investment to Ireland. For
example, in 2008 alone 40% of the IDA’s client portfolio of
awards made had a significant R&D component, which is a
direct consequence of the Government’s significant investment
in the science arena in recent years, primarily through SFI and
the Higher Education Authority.
The Value For Money Report of SFI Programmes, completed
by Indecon Economic Consultants in 2008, concluded that
SFI’s funding has produced research outputs which can be
measured among the highest in quality terms in the ICT and
Biotechnology fields internationally.
Extension of SFI Remit in 2008
The Programme for Government included a commitment
to amend the remit of SFI to include a third research pillar,
namely in the area of sustainable energy and energy efficient
technologies. During 2008, agreement was reached between
the Minister for Enterprise, Trade and Employment, and the
Minister for Communications, Energy and Natural Resources
(DCENR) on the principles and funding to be targeted
through SFI in fulfilment of the Programme for Government
commitment to allow it to pursue energy-related research
activities.
Strategic Research Clusters
During 2008, SFI approved funding for 5 new Strategic
Research Clusters (SRCs) to bring the total number of SRCs to
17. These 5 new SRCs were formally launched and became
operational in early 2009 and involve direct involvement of
22 industrial partners. It is through these industry-embedded
research groups, which are formally linked to over 150
multinational and small to medium high-tech enterprises in
Ireland, that SFI is supporting the retention of employment
of over 55,000 people in high-value jobs in Ireland.
Centres for Science, Engineering and Technology
(CSETs)
In 2008, the new CLARITY Centre for Science, Engineering
and Technology (CSETs) based at University College Dublin was
launched and specialising in life-sciences. CLARITY brings the
total number of CSETs located across all 7 Irish universities to
nine. CSETs work in close proximity with 70 industrial partners
including multi-national and indigenous companies. Three
CSETs were approved for 2nd term funding in 2008: the
Alimentary Pharmabiotic Centre at University College Cork,
the Centre for Research for Adaptive Nanostructures and
Nanodevices at Trinity College, Dublin and the Digital Enterprise
Research Centre at NUI Galway. This second round of awards
will forge relationships with a significant number of additional
new industrial partners.
SFI outputs from these research projects will include both
human capital and knowledge capital, including scientific
publications, invention disclosures, patents, spin outs and
established industry doing R&D in Ireland, and will encourage
and embed Foreign Direct Investment in Ireland.
Researcher Mobility
The Researcher Mobility “Hosting Agreement” scheme, which
provides for the entry into the State of researchers from Third
Countries under Council Directive 2005/71/EC, operated very
successfully throughout 2008, with 430 Hosting Agreements
issued to researchers, representing over 50 nationalities. A
total of 16 Third Level institutes and 1 private enterprise have
been accredited under the scheme up to the end of 2008.
In addition, a Hosting Agreement Extranet was established
to provide relevant key departments, such as Immigration
authorities, Embassies and Consulates, with access to an
electronic database, thus expediting immigration procedures
for third country researchers.
11
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Objective
To work through Enterprise Ireland to enhance the
capacity of indigenous enterprise to develop innovative
products and services for competitive advantage by
building R&D capacity within companies, linkages with
the third-level research base and commercialisation
support.
Support of Enterprise R&D and
Commercialisation Activity
In 2008, Enterprise Ireland invested €120.5m in R&D and
Commercialisation activity, an increase of 16.2% over 2007,
reflecting the increased drive to achieve economic benefit from
the investment in research infrastructure that has taken place
under the SSTI.
R&D Fund
The Minister for Enterprise, Trade and Employment launched
the new Research and Development grant scheme in January
2008. Enterprise Ireland and IDA Ireland jointly streamlined their
various R&D funding supports to make it as straight-forward as
possible for companies to get funding for their R&D projects.
Enterprise Ireland committed in the region of €50 million in
support for company R&D activities in 2008 to facilitate more
companies to undertake R&D activity – catering from novices
up to R&D leaders. In 2008, Enterprise Ireland supported 110
companies to undertake 240 projects. In addition, IDA Ireland
provided €36.75 million in support of R&D projects in 2008.
A key to encouraging companies, especially small companies,
to start to undertake R&D or to increase their current R&D
investment to over €100,000, is direct personal contact and
advice. To this end, Enterprise Ireland set up a panel of R&D
Advocates, experienced individuals who have managed R&D
functions in the past and can explain the potential rewards from
such investment. Advocates engaged with 545 client companies
in the period 2006-2008; of these 111 clients engaged the
Advocate for the 3-day subsidised consultancy and 72 went on
to avail of further EI support, e.g. R&D, Growth or Productivity
Improvement Fund, Supply Chain Management, Innovation
Voucher.
Commercialisation
In 2008, 138 Commercialisation projects were supported
by Enterprise Ireland with particular emphasis given to the
final stages of support to ensure the transfer of commercial
licences to companies.In the same period, outputs from
Commercialisation Fund research have facilitated the creation
of 29 advanced enterprise relevant technologies. To date,
a portfolio of 400 pieces of technology have been created
and are now available for companies to develop. A new
Business Partners Programme has been established to facilitate
entrepreneurs’ access to this portfolio and develop new start-up
companies.
Applied Research Enhancement (ARE) Centres
Minister Devin launched four new Applied Research
Enhancement (ARE) Centres in 2008 specialising in a niche
technology area in Institutes of Technology in Ireland. The
centres provide applied research expertise for the benefit of
regional companies to conduct R&D projects and develop new
products and services. In 2008, 35 industrially relevant research
projects were completed in 16 Centres based in 11 Institutes of
Technology.
Innovation Partnerships
Innovation Partnerships involve collaborative R&D projects
between college research groups and industry. In 2008, 52
Innovation Partnerships were supported in 16 academic
institutions nationwide involving companies from 17 different
sectors of the economy, such as Semiconductors, Medical
Devices, Tourism, Pharmaceuticals, etc.
Competence Centres
The Competence Centre initiative was designed jointly between
EI and IDA Ireland to create collaborative centres of excellence
established and led by industry that are resourced by highly-
qualified researchers associated with research institutions who
are empowered to undertake market focussed strategic R&D for
the benefit of industry.
The Tánaiste launched the Functional Foods Research Centre
in 2008 to research how the natural properties of milk can be
extracted and used to deliver health benefits for consumers. A
total of 65 companies have become involved in establishing 7
competence centres nationally and initial research phase grants
were approved in late 2008.
12
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Innovation Vouchers
The Innovation Voucher scheme provides vouchers worth
€5,000 to small businesses whose proposals to work with
public knowledge providers on specific innovation questions
meet basic criteria. In 2008, applications were received from all
26 counties, with companies accessing academic expertise in
a wide range of sectors, with the areas of eCommerce, Digital
Mechanisms and Communications Technologies prominent.
A total of 588 Innovation Vouchers worth €5,000 each were
issued to Enterprises in 2008 and 206 Vouchers were redeemed
by companies to develop:
new business models•
new service delivery and customer interfaces•
new services development, and•
tailored training in innovation management.•
Dr Jimmy Devins, T.D., Minister for Science, Technology and Innovation with
fellow European Ministers on the European Space Council in front of the
Ariane 5 rocket at the space centre in French Guyana European space port.
Technology Transfer Offices
Technology Transfer Offices (TTOs) support the employment
of technology transfer professionals in Third Level institutions
to increase the level of intellectual property (IP) transferred to
industry from research and to facilitate the development of high
quality and effective systems and policies to ensure that the IP
is identified, protected and transferred, where possible, into
companies in Ireland.
In 2008, Enterprise Ireland supported 10 Technology Transfer
Offices that facilitated the creation of 7 spin-out companies, the
disclosure of 382 discoveries and inventions, the filing of 281
patent applications and the transfer of 61 technology licences,
options and assignments to companies.
Incubation Centres
The Campus Incubation Programme is a partnership approach
between Enterprise Ireland and the higher education sector
to promote campus entrepreneurship and to commercialise
the research capability in Irish universities and institutes of
technology. In 2008, the Tánaiste announced that employment
in the 22 incubation centres and 6 bio-incubation centres
reached 1,000 for the first time. There are now 240 companies
based in campus incubators nationwide.
R&D Tax Credit Scheme
Substantial improvements were made in the R&D Tax Credit
Scheme during 2008. The 2008 Budget increased the rate
of the tax credit from 20% to 25%. Companies can now
achieve substantial savings in the cost of carrying out R&D,
either offset against tax on company profits or in the form
of a cash payment from the Revenue Commissioners. These
latter provisions will be of particular assistance to pre-revenue
start-up companies that are investing heavily in R&D. The R&D
Tax Credit Scheme, when taken with other R&D supports,
now present very attractive incentives to companies to
engage in research and development.
Objective
To promote and support the optimisation of Ireland’s
participation in EU and international research
programmes.
Ireland’s Participation in European Framework
Programme
Irish industry, third level institutions and research organisations
drew down €90.5 million from the European Framework
Programme 7 (FP7) to end-2008, to enable them to participate
with other organisations in Europe and elsewhere in cutting
edge research and to develop and intensify research and
business networks. A National Support Network has been put
in place to ensure that a coordinated and coherent approach
is adopted across all of the Government Departments, State
Agencies and other organisations involved towards achieving a
national target of securing €600 million in funding for Ireland
from FP7 over the duration of the programme 2007-2013.
13
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
European Space Agency (ESA)
In 2008, Irish companies and research groups continued
to develop their activities in space-related technology and
product development. ESA contracts were placed with 20
Irish companies, 12 of which are Enterprise Ireland (EI) client
companies. The value of contracts awarded by ESA in Ireland in
2008 is estimated at €8 million. (The approximate breakdown
between industry and academia is 91% and 9%, respectively.)
Intellectual Property
Objective
To maintain an up-to-date suite of modern Intellectual
Property legislation that protects Intellectual
Property to the highest international standards,
thereby fostering investment in Intellectual Property
(IP) development and the employment generating
potential that flows there-from.
Intellectual Property Legislation and Services
The necessity to provide a strong protective regime for the
rights of the creators of Intellectual Property (IP) is a crucial
element in building a successful knowledge economy.
Technology transfer and commercialisation flourish only where
intellectual property rights, such as patents, trademarks and
copyrights, and know-how are guaranteed and legally enforced.
The Patents Office continued to service the IP community
in 2008, processing 980 patent applications, clearing 5,881
Trademarks and 146 Industrial Designs. Ireland’s legislative
framework in Intellectual Property and in other relevant fields
has helped companies here to create, protect and exploit their
intellectual property assets more effectively.
North/South
Objective
To promote and support research collaborations for the
competitive advantage of the island of Ireland, through
linking the research system to centres of excellence
and fostering partnerships through involvement in EU
collaborative research programmes.
Collaborative Engagements on R&D
and Innovation
There was active engagement between the secretariats to the
Inter-Departmental Committee (IDC) on Science and Technology
and its Northern counterpart in 2008 to scope the development
of collaborative North/South research projects. The North/South
Innovation Fund was announced in January 2008 to support
collaborative research on an all-island basis.
An all-island Innovation Voucher initiative was also announced
in 2008. This development will provide Irish small companies
with access to a further 10 knowledge providers based in the
North, and will allow Northern Ireland based small businesses
to use Invest NI innovation vouchers, valued at Stg£4,000, to
access expertise in research institutions based in the South of
Ireland. This scheme will help to drive innovation on both sides
of the border to the benefit of all.
During 2008, Science Foundation Ireland (SFI) invited further
applications under its North-South Research Partnership
Supplement programme which encourages research
collaborations between existing SFI funded researchers and
researchers in Higher Education Institutions (HEIs) in Northern
Ireland. SFI provided funding amounting to €176,000 under
this programme in 2008.
In February 2009, Intertrade Ireland, the secretariat to the
US-Ireland R&D Partnership, announced that a project on
diabetic nephropathy will be the first project to be funded
under the US-Ireland R&D Partnership initiative. The overall
goal of the US-Ireland R&D Partnership is to increase the level
of collaborative R&D among researchers in Ireland, Northern
Ireland and the United States.
14
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
GOAL
TO ENHANCE NATIONAL COMPETITIVENESS,
INNOVATION AND ENTERPRISE CAPACITY ACROSS
THE ECONOMY TO UNDERPIN SUSTAINABLE
AND BALANCED ECONOMIC GROWTH, NEW
EMPLOYMENT OPPORTUNITIES AND DYNAMIC
EXPORT ACTIVITY IN BOTH PRODUCTS AND SERVICES
AND TO FURTHER INITIATIVES IN THE AREA OF THE
ALL-ISLAND ECONOMY.
Competitiveness and Productivity
Objective
To accelerate improvements in national
competitiveness and productivity, so that our economy
continues to be one of the best places in Europe in
which to do business, by devising, promoting and/or
advocating policies, across the range of Government’s
spheres of influence, which drive innovation and
productivity improvements at national, sector and firm
level, so that competitiveness benchmarks achieve,
if not surpass, the standards of the most advanced
economies with which we compete.
Competitiveness Reports
During 2008, the National Competitiveness Council
(NCC) published its Annual Competitiveness Report 2007,
which acknowledged Ireland’s continued strong economic
performance at that time. The 2 volumes (the Benchmarking
Report and the Competitiveness Challenge) were both
presented to Government in advance of their publication. The
Competitiveness Challenge called for policy action in three key
areas (each containing a number of recommendations) designed
to address the challenges in Ireland’s international competitive
performance, namely; Supporting Cost Competitiveness;
Enhancing Productivity; and Building Innovative Enterprises.
The Challenge Report 2008 concentrates on four broad themes
involving significant issues around restoring competitiveness,
such as restoring fiscal sustainability, managing costs, achieving
public sector reform and positioning Ireland for future recovery.
Cross-Departmental Initiatives on
Competitiveness
To progress the Council’s recommendations, the Department
continued its active participation in the Inter-Departmental
Group on Housing, Infrastructure and Public Private Partnerships
(PPPs). Many of the recommendations outlined in the NCC’s
Competitiveness Challenge 2007 and 2008 have been
implemented in line with Government policy. Of particular
note has been the implementation of recommendations in the
context of the framework provided by:
Enterprise Ireland’s Growth Fund for Improving •
Management Capabilities
Enterprise Ireland’s Innovation Networks•
the Services Strategy Group Report•
the Innovation Policy Statement•
the establishment of the Procurement of Innovation •
Group, and
publication of • Building Ireland’s Smart Economy,
A Framework for Economic Renewal.
The Department progressed the competitiveness agenda on
a cross-Government basis during 2008. Competitiveness as an
overarching theme has been included in the terms of reference
of the Cabinet Sub-Committee on Housing, Infrastructure and
PPPs. The Department continued to highlight competitiveness
issues which affect enterprise, both at this forum and also
in direct bilateral contacts with relevant Departments and
Agencies. This included continued awareness-raising in relation
to the costs pressures on business, as well as lobbying other
Departments to ensure that competitiveness concerns were
taken into account in relation to policy proposals and ongoing
implementation of existing policy.
Pillar 2: Enterprise Development
Policies in a Competitive
High-Value Economy
15
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
The Department continued to oversee a consultation forum
with the Commission for Energy Regulation (CER) and our
Enterprise Development Agencies where enterprise concerns
are considered in the context of the CER’s energy price-setting
role. The Department contributed to, and has a key role in
the ongoing implementation of, the “Building Ireland’s Smart
Economy” strategy, which was launched by Government on
18th December 2008. This work is continuing into 2009.
EU Competitiveness Council
A range of co-ordination work, networking, information
gathering and issue-influencing was carried out with
particular reference to the EU Competitiveness Council.
In that regard, in collaboration with our Permanent
Representation in Brussels, we continued to take an active
part in EU negotiations to influence the outcomes of EU
legislative and non-legislative measures. During the year,
in the context of the EU Competitiveness Council, the
Department focused on the following activities: Response
to the global economic crisis; Intellectual Property issues;
R&D Programmes; Reducing administrative burdens;
Company Law and Small- and Medium-Sized Enterprise Policy.
Lisbon Agenda National Reform Programme
A new National Reform Programme (NRP) was submitted
to the EU Commission in early November 2008. The Report
emphasises that Government policies will evolve in response
to the economic challenges that lie ahead. The Commission
published its Country Specific Recommendations for all
Member States on 28 January 2009 in response to the NRPs.
In Ireland’s case, of Departmental relevance, the Commission
calls for urgent action to rebalance growth and to rebuild
competitiveness. The implementation of the energy and climate
change package, agreed by the European Council, also will
require close attention. The Commission recommended that
Ireland should pursue the implementation of medium-term
structural reforms by taking action to gradually restore fiscal
sustainability and foster a swift adjustment to sustainable
medium-term growth by productivity-enhancing measures.
National Statement on Innovation Policy
The National Innovation Policy Statement, Innovation in Ireland,
was jointly launched on 30th June 2008 by the Tánaiste,
Mary Coughlan T.D., and Minister for Science, Technology
and Innovation, Jimmy Devins, T.D. The Policy Statement
identifies ten key policy areas that underpin the Government’s
approach to innovation in support of enterprise and the
knowledge economy. The Policy Statement also charts the main
components of our national innovation system. Our ambition is
to put innovation at the core of our policies and strategies for
the future, so that Ireland becomes a leader in innovation.
Enterprise Policy
Objective
To ensure that enterprise policy remains responsive
to the changing economic environment.
Enterprise Support
Enterprise Ireland refined its 2008-2010 strategy and refocused
its efforts on strengthening and sustaining companies of
strategic importance through a range of initiatives focused
on the needs of their client base addressing short-term and
medium to long-term issues.
In addressing these issues, Enterprise Ireland has developed a
series of proposals, which deal with access to finance; winning
new sales; encouraging competitiveness; continuous innovation
and R&D; and development of entrepreneurship. Initiatives
taken by Enterprise Ireland include:
the acceleration of internal processes to ensure approved •
funding is accessed more speedily
the establishment of a specialised unit to support client •
companies in dealing with financial restructuring
the establishment of a specialised unit to help companies •
drive down costs and focus on lean processes, and
the redeployment of resources to work intensively with •
companies to help them retain existing customers and
to identify new markets with a particular emphasis on
key areas within the Eurozone.
The medium-term focus of the revised strategy is to continue
to drive a sound, sustainable, competitive, export-oriented
indigenous sector by concentrating on technology and
innovation; supporting the environment for entrepreneurial
development; and continuing to assist clients to win new sales.
Small Business
SMEs remain at the centre of enterprise policy. Actions to
sustain a positive business environment, including the proper
functioning of the banking system, allied with specific targeted
supports for SMEs through the enterprise support agencies
confirm the commitment to this important sector.
2008 saw continued progress on the implementation of the
Small Business Forum Report’s recommendations in the Finance
Act 2008. For example:
VAT Registration Turnover Thresholds were further increased •
– for the second successive year – from 1 May 2008 to
€37,500 for services and to €75,000 for goods respectively.
16
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Climate Change
On the 17th December 2008, the European Council and the
European Parliament agreed a climate change and energy
package based on proposals brought forward by the EU
Commission in January 2008. In line with the Commission’s
proposals, agreement was reached on legally binding targets,
by 2020, to cut greenhouse gas emissions by 20%, to establish
a 20% share for renewable energy, and to improve energy
efficiency by 20%. Under the Package, Ireland’s target has been
set at a 20% reduction of Greenhouse Gases below 2005 levels
by 2020.
During 2008, the Department participated in very intensive
cross-Departmental negotiations to agree a national position
on the climate change proposals contained in the EU Climate
and Energy Package. Through participation in the Senior
Officials Group on Climate Change and Energy Security
and associated groups involved in these negotiations, the
Department contributed to the adoption of a national position
which sought to ensure that the effort sharing and emissions
trading targets set out in the Package were fair and would not
impact negatively on Ireland’s competitiveness in comparison
to other Member States. In the negotiations at EU level, Ireland
was broadly successful in achieving its objectives and the final
Package contains a number of flexibilities to allow Ireland to
meet its target in the most cost effective manner and takes
account of the need to avoid carbon leakage in energy intensive
sectors exposed to international competition.
Dr. Jimmy Devins, T.D., Minister for Science, Technology and Innovation,
Paul Maher, Director, MicroPro Computers, Dr Martin Lyes, Manager, Research
& Innovation, Enterprise Ireland, admire the world’s first eco-computer.
Small companies are now permitted to calculate their •
Preliminary Corporation Tax payments based on 100% of
the prior-period tax liability if their tax liability for the prior
period did not exceed a certain threshold. This threshold was
further increased to €200,000 and is effective for preliminary
tax payment dates arising after 5 December 2007.
New companies that do not expect their tax liability for •
the first year of operation to exceed €150,000 are no
longer obliged to pay preliminary tax in that first year.
This threshold was further increased to €200,000. This
was effective for preliminary tax payment dates arising
after 5 December 2007.
During the second half of 2008, developments in the financial
sector and wider economy broadened the concerns for SMEs in
relation to gaining access to working capital. The Department
held meetings with the representative bodies of the SME sector
in relation to this and a number of other issues impacting on
the sector, at that time.
A number of actions were taken by Government including the
Bank Guarantee Scheme. In December 2008, the Department
also established a Roundtable on Access to Bank Credit, which
included representatives of the Irish Small and Medium-Sized
Enterprises and the Small Firms Association, the Irish Banking
Federation, the major banks, the main enterprise support
agencies and the Department of Finance and the Department.
Industrial Development Bill
The Industrial Development Bill 2008 was published and was
enacted and signed by the President on the 19th May 2009.
It updates various aspects of the Industrial Development
legislation so as to facilitate the implementation of the industrial
aspects of the National Development Plan 2007 to 2013.
Services Strategy
The Services Strategy Group report, Catching the Wave – A
Services Strategy for Ireland, was published in September 2008.
The report explores how the returns to Ireland from services
activities can best be maximised, and in so doing it identifies
three strategic aims for future services policy in Ireland, namely:
1. realising the opportunities to further grow and diversify
Irish services exports
2. encouraging internationalisation, where Irish service
enterprises establish operations in overseas markets, and
3. recognising the important role of Irish service enterprises
that trade locally on the domestic market, and ensuring
that these are efficient and productive.
The range of recommendations covered a wide area that
concerns the policies and activities of a number of Government
Departments and Agencies. The Department is now analysing
these recommendations and consulting with the other relevant
Departments and bodies to secure their implementation.
Report of the High Level Group on Manufacturing
The Group’s final report was published in April 2008. It contains
some 26 recommendations directed at key areas of innovation
and productivity. The aim is to secure transformational
change, reskilling and management development for the
innovative firm, and to increase awareness and take up of
existing supports. The social partners endorsed the report as
part of the review of “Towards 2016”, including the proposed
establishment of a Manufacturing Forum to oversee the
implementation of the report. The membership of the Forum
is now being finalised.
Tax
Objective
To work collaboratively with other Departments and
stakeholders to ensure that Ireland maintains robust
fiscal and low corporate and personal tax policies to
incentivise enterprise and promote employment.
Tax Policy
The Department continued to pursue a pro-enterprise and
pro-jobs tax policy, to ensure that Ireland remains an attractive
location for investment for both indigenous enterprise and
inward investment. In 2008, corporation tax incentives for
start-up companies were introduced to encourage new
business start-ups. Tax incentives were introduced to support
the attraction of internationally mobile, highly skilled individuals
required to enhance the development of our knowledge
economy. Major improvements were also introduced to the
R&D tax credit to encourage and support business R&D activity
(see also page 12). Significant proposals are being examined
on the introduction of tax deductions for intellectual property.
Sustainability and Environmental
Challenges
Objective
To ensure that environment policy takes into account
competitiveness challenges and that enterprise policy
has a greater focus on “eco-innovation” and assists
Irish businesses to exploit the increasing opportunities
arising from the fast growing international
environmental goods and services sector.
17
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Climate Change
On the 17th December 2008, the European Council and the
European Parliament agreed a climate change and energy
package based on proposals brought forward by the EU
Commission in January 2008. In line with the Commission’s
proposals, agreement was reached on legally binding targets,
by 2020, to cut greenhouse gas emissions by 20%, to establish
a 20% share for renewable energy, and to improve energy
efficiency by 20%. Under the Package, Ireland’s target has been
set at a 20% reduction of Greenhouse Gases below 2005 levels
by 2020.
During 2008, the Department participated in very intensive
cross-Departmental negotiations to agree a national position
on the climate change proposals contained in the EU Climate
and Energy Package. Through participation in the Senior
Officials Group on Climate Change and Energy Security
and associated groups involved in these negotiations, the
Department contributed to the adoption of a national position
which sought to ensure that the effort sharing and emissions
trading targets set out in the Package were fair and would not
impact negatively on Ireland’s competitiveness in comparison
to other Member States. In the negotiations at EU level, Ireland
was broadly successful in achieving its objectives and the final
Package contains a number of flexibilities to allow Ireland to
meet its target in the most cost effective manner and takes
account of the need to avoid carbon leakage in energy intensive
sectors exposed to international competition.
Dr. Jimmy Devins, T.D., Minister for Science, Technology and Innovation,
Paul Maher, Director, MicroPro Computers, Dr Martin Lyes, Manager, Research
& Innovation, Enterprise Ireland, admire the world’s first eco-computer.
Energy-Using Products
In relation to promoting eco-design of energy using products,
implementation of the “EuP” or “Eco-design” Directive is now
under way. The overall objective of the Directive is to improve
the environmental performance of energy-using products,
thereby protecting the environment. The framework in the
Directive is used to adopt Commission Regulations for individual
products, each setting out eco-design requirements, usually
upper limits on energy consumption, to be incorporated into
the product at the design stage. The requirements apply to
energy-using products, such as televisions, water heaters and
light bulbs, produced in Ireland or elsewhere in the world,
when put on the market in Ireland or elsewhere in the EU/EEA
Market. Accordingly, industry in Ireland will have to ensure that
its products for sale in the Internal Market comply with any
relevant eco-design requirements set under the Directive.
The Department of Enterprise, Trade and Employment co-
ordinates the national position on Eco-design proposals,
involving close consultation with industry and an inter-
Departmental Group involving the Department of Environment,
Heritage and Local Government, the Department of
Communications, Energy and Natural Resources and relevant
agencies of the three Departments. The Department of
Enterprise, Trade and Employment also represents Ireland
on the Regulatory Committee which votes on proposed
Commission Regulations. During 2008, five Regulations
received a favourable opinion at Regulatory Committee and are
expected to come into effect in the first half of 2009 following
approval by the European Parliament and the European Council.
These Regulations relate to products such as standby and off-
mode controls, tertiary lighting and external power supplies,
simple set-top boxes and domestic lighting. It is expected that
Regulations will continue to be adopted for the foreseeable
future. About thirty products are currently listed to become
subject to a Regulation, and this list will expand further over
time.
Exploiting Opportunities in Eco-Innovation
In relation to the environmental goods and services sector, this
Department worked with Forfás and InterTradeIreland to publish
a study on Environmental Goods and Services Sector on the
Island of Ireland, in October 2008. In Building Ireland’s Smart
Economy, a Framework for Sustainable Economic Renewal, the
Government announced its intention to establish a High Level
Action Group on Green Enterprise to build on the work carried
out in this study. This Group is being established by the Tánaiste
and will report with an Action Plan to ensure the potential of
this important economic area is exploited and to assist Irish
businesses to benefit from the increasing opportunities arising
from the fast-growing international environmental goods and
services sector.
18
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Implementation of National and EU Measures
In 2008, the Department continued to fund and work with
Enterprise Ireland in implementing a range of initiatives
designed to improve the environmental performance of Irish
industry, e.g., the Green Tech Support Programme and the
Environcentre website at: www.envirocentre.ie.
Together with the Department of Environment, Heritage &
Local Government, the Department continued implementation
of the Irish National Roadmap under the EU Environmental
Technologies Action Plan (ETAP). ETAP is a joint initiative
between the Environment and Research Directorates of the
European Commission, which aims to improve the development
and wider use of environmental technologies by harnessing
the synergies between environmental protection and economic
growth. The EU Commission will be reviewing this Action Plan
in 2009.
The Department participated in a number of Interdepartmental
groups in the renewable energy arena, which were established
in 2008 by the Department of Communications, Energy
and Natural Resources. The Department’s participation in
these various groups ensures our dual mandate of ensuring
that the policies involved take into account competitiveness
issues and that Irish business can exploit opportunities in the
environmental goods and services sector is met.
The Department continued to participate in the Sustainable
Transport and Travel Interdepartmental Group established
by the Department of Transport during 2008. This exercise
ultimately culminated in the publication of Government Policy
on Smarter Travel in 2009. The work of this Group will continue
in 2009.
Enterprise Growth
Objective
To support enterprises to realise their growth potential.
Growth Promotion Initiatives
Enterprise Ireland’s Growth Fund is geared specifically towards
increasing productivity and export potential thus consolidating
existing and capitalising on emerging growth. The agency’s
Going Global Fund also capitalises on emerging growth by
focussing on locally traded companies that have successfully
established businesses in Ireland and wish to explore
opportunities to sell abroad. It prioritises internationally traded
services by offering supports to ambitious locally traded services
firms, providing the confidence to offer their quality services in
global markets.
Enterprise Ireland’s Leadership 4 Growth initiative has been
designed to target CEOs of Irish construction companies who
want to lead their company to global success. It also facilitates
professional contacts in construction and related industries
through its international offices network.
During 2008, Enterprise Ireland continued to work with clients
to support innovative high potential start-up (HPSUs) companies
and 71 new high export growth potential companies were
established. These were in sectors as diverse as life sciences,
medical devices, software, services and food.
Targets for the number of companies implementing productivity
and competitiveness improvement projects were exceeded in
2008, with 84 companies implementing these projects, against
a target of 60.
Enterprise Ireland continued to play a key role in driving an
increase in the number of companies spending on research and
development, with 49 companies engaged in ‘significant’ R&D
(spending over €2m on R&D a year) and 707 clients engaged in
‘meaningful’ R&D (spending over €100,000 a year), by the end
of 2008.
A critical element in expansion, consolidation and rapid growth
is the availability of venture capital. Under the 2007-2013 NDP,
Enterprise Ireland has committed €175m towards new Seed &
Venture Capital Funds in partnership with the private sector.
As a result, approximately €500m has now been raised for
investment in high-tech Irish SMEs.
The Enterprise Ireland Strategy 2008-2010 aims to stimulate
and increase the services revenues of existing client companies
that will be critical in the medium to long-term positioning of
Irish companies in global markets.
Tech-Check Programme
The Small Business Forum had recommended that a programme
of “ICT audits” should be introduced for the small business
sector to promote awareness of the productivity benefits of
better utilisation of ICTs by small businesses. Arising out of
this recommendation the County Enterprise Boards (CEBs)
developed the “Tech-Check Programme” in 2007. The
Programme offered a highly subsidised technology check-up
by independent experts to small business to help them to
identify ways to boost their productivity and profitability
through the better use of technology. The Tech-Check
Programme continued to be funded by the Department of
Enterprise, Trade and Employment in 2008 and delivered
nationally by the CEBs. Over 800 applications were approved
and funded to a total of €740,311 in 2008.
19
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Micro-Enterprise Central Coordination Unit
In late 2007, a Central Coordination Unit was established within
Enterprise Ireland to provide a range of strategic, administrative,
financial and technical supports to the County Enterprise Boards
with the ultimate objective of enhancing the effectiveness and
impact of the Boards on the development of micro-enterprises
and of contributing to a greater level of consistency and best
practice across the CEB network as a whole. The Unit, which
is located in Shannon, became fully operational in 2008. The
establishment of this Unit by the Department provides a greater
cohesion between the activities of the County Enterprise
Boards and Enterprise Ireland at micro-enterprise level as well
as allowing the Department to better focus on strategic policy
development in respect of the micro-enterprise sector.
Development of Standards
The National Standards Authority of Ireland (NSAI) contributed
to the ability of enterprises to develop products and services
having a national and international dimension, through the
effective provision of services of the highest quality in the areas
of Standards, Legal Metrology, Agrément
5
, Certification and
Scientific and Industrial Metrology.
The NSAI continued to develop Irish, European and International
standards of relevance to industry, through the participation
in standards committees at national, EU and international
level. In 2008, the NSAI adopted 1,564 EU Standards into Irish
standards. It also contributed to the development of European
and International standards across a range of sectors through
NSAI’s consultative structure.
In particular, the Department and the NSAI contributed to
the adoption of EU “Council Conclusions on Standardisation
and Innovation” at the Competitiveness Council meeting on
1 September 2008, which will help increase the impact of
Europe in global standardisation, facilitate the inclusion of new
knowledge in standards and improve access to standardisation,
in particular to SMEs. Standards are also being considered
in new areas where little standardisation exists, such as the
Services sector.
Foreign Direct Investment
Objective
To continue to attract high quality Foreign Direct
Investment (FDI) projects to Ireland and more firmly
embed existing companies in the Irish economy
The Tánaiste and Minister for Enterprise, Trade and Employment, Ms. Mary
Coughlan, T.D., met with staff from Eli Lilly’s Kinsale facility on secondment
at the company’s corporate headquarters in Indianapolis, Indiana, during
her week-long foreign direct investment trade mission to the United States.
Foreign Direct Investment
Foreign direct investment (FDI) is a key component of Ireland’s
economic success and IDA Ireland will continue to develop new
value propositions and work processes that will reflect Ireland’s
competitive advantages in an increasingly competitive market
place.
IDA Ireland provides a range of financial incentives to support
capital, employment, training and Research, Development and
Innovation (RD&I) activity as well as advice, facilitation and
property services to prospective and existing clients in an effort
to grow the FDI space. In 2008, the IDA announced 130 new
investments, up 14% on the previous year, creating circa 8,800
new jobs and securing investment of circa €2 billion.
In 2008, IDA-supported companies paid an estimated €3bn
in Corporate Tax, accounting for over 50% of the total
corporate tax take in 2008. They also spent €15.84bn in direct
expenditure within the economy, comprised of €6.784bn on
payroll, €6.56bn on Irish services and €2.496bn on materials
from Irish sources.
The IDA has developed a strong base of circa 1,000 existing
clients, employing 136,000 persons, which make a significant
contribution to the wealth generation and development of the
Irish Economy. IDA Ireland is working with its existing client
base to deepen and further embed their investments in Ireland.
5 The Irish Agrément Board (IAB) acts as a Consultative Committee to advise NSAI on construction products and processes suitable for Agrément
assessment and certification for use in Ireland
20
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Ireland is now seen by the global business environment as a
prime location for RD&I functions. The IDA has played a key
role in establishing this competitive advantage for Ireland and
is heavily involved with all stakeholders in the RD&I domain.
The Agency will continue to target high value investments in
keeping with the strategy outlined in the recent framework
document for sustainable economic renewal, Building Ireland’s
Smart Economy. Also, in collaboration with its sister agencies,
Enterprise Ireland and Science Foundation Ireland, the IDA will
be marketing Ireland as the ‘Innovation Island’ and the location
for businesses of the future.
To this end, the IDA focus is on the four essential ingredients
which investors concentrate on, namely: the right people and
skills, a supportive environment and infrastructure, locations of
critical mass and a positive and forward looking attitude, as the
basis for the continued development of the economy.
The IDA’s main efforts are on securing investment from new
and existing clients in the areas of High End Manufacturing,
Global Services (including Financial Services) and Research,
Development and Innovation. Within these areas, the
key sectors that the IDA focuses on are Life Sciences
(Pharmaceutical, Biopharmaceutical and Medical Technologies),
Information Communications Technology (ICT), Engineering,
Professional Services, Digital Media, Consumer Brands and
International Services.
In pursuit of emerging areas, the IDA is now targeting three
new sectors, namely: convergence (particularly convergence in
technology between the life sciences and the IT sector), clean-
tech (environment, environmental services and goods, the green
agenda, etc), and innovation and services. The Agency is also
strengthening its technical expertise in the area of International
Financial Services and has a clear and strong focus on this
sector.
Entrepreneurship
Objective
To promote the development of a strong
entrepreneurial culture, such that Ireland is recognised
for the innovative quality of its entrepreneurs and
acknowledged by entrepreneurs as a world-class
environment in which to start and grow a business.
Entrepreneurial Supports
The focus on High Potential Start-Ups by Enterprise Ireland
ensures that the potential of new export-oriented enterprises is
developed and their rapid growth is maximised. In addition to
these supports, the County and City Enterprise Boards (CEBs)
also provide support for the micro-enterprise sector in the start-
up and expansion phases, to promote and develop indigenous
micro-enterprise potential and to stimulate economic activity
and entrepreneurship at local level.
During 2008, the Department facilitated the delivery of a range
of supports to the micro-enterprise sector through the provision
of over €20m to the CEB network for the development of
micro-enterprises throughout the Country. The total net jobs
created in CEB-assisted companies for the period 1993 to end
2008 was 33,811 jobs.
In 2008, the CEBs provided direct financial assistance in the
form of Capital Grants, Employment Grants and Feasibility
Study Grants, and non-financial assistance in the form of
business advice, business information and management
capability training and development programmes, to the micro-
enterprise sector. A total of 959 projects were approved for
direct financial assistance from the CEBs, while a total of 886
projects received grant aid in 2008. In addition, almost 22,000
people participated on the various Management Training and
Capability Development Programmes offered by the CEBs in
2008.
Furthermore, the CEBs continued to actively promote an
entrepreneurial culture through their National Enterprise
Awards scheme. They also targeted the promotion of female
entrepreneurship through their Women in Business networks
and their National Women’s Enterprise Day. In addition, over
12,000 second-level students participated in the 2008 annual
Student Enterprise Awards Scheme. This Scheme is very
important in fostering a spirit of entrepreneurship amongst
pupils.
A detailed review of the range of the financial supports
available from the CEBs to that sector was initiated in 2008 in
conjunction with the CEBs and the CEB Central Coordination
Unit within Enterprise Ireland. The purpose of the review is to
ensure that the supports available are in line with the needs
and demands of the micro-enterprise sector. It is expected that
changes to these supports will be brought into force in 2009.
21
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Balanced Regional Development
Objective
To ensure that Ireland achieves balanced regional
economic growth.
Regional Balance
The priority for the IDA remains the winning of high quality
investment for Ireland. However, to achieve this objective and
deliver balanced regional development, a greater emphasis
will be placed on selling specific priority regions for designated
activities along the entire marketing/promotion chain and on
anchoring a greater number of site visits in those regions.
The IDA is, in line with the National Spatial Strategy, focused
on delivering investments to the Gateway and Hub locations
nationally, and specifically those in the Border, Midlands
and West region. This strategy involves matching investor
requirements with the competencies, infrastructure and critical
mass of the Gateway and Hub locations to secure the maximum
number of investment for Ireland. The key sectors of focus are
Life Sciences, Information and Communications Technologies,
Cleantech and high value Services activities.
Taking account of the locational requirements of these
sectors and the critical importance of centres of urban scale
in attracting the high-value investments, in recent years the
IDA has set a high level target to deliver in excess of 60% of
investments outside the Greater Dublin Area. This target was
achieved in 2008.
A number of other State Agencies contribute greatly towards
balanced regional development through their programmes and
their location. Enterprise Ireland (EI) is present in ten locations
throughout the country and has established its Regional
Headquarters at Westpark in Shannon. At present, 70% of
Enterprise Ireland client employment is in locations outside
Dublin and its Community Enterprise Centre (CEC) Scheme
provides business space in a supportive environment for
budding entrepreneurs and is a tangible and visible contribution
to regional development.
There is also a County and City Enterprise Board (CEB) in each
Local Authority area to provide assistance to businesses in local
communities. As well as working closely with their relevant
local authorities and other development agencies, the CEBs are
active participants on the County Development Boards of their
relevant Local Authority. This structure of cross-representation
creates a platform for the delivery of enterprise supports at
the local and regional level in an integrated and effective
manner and, in these ways, the CEBs are making a significant
contribution to ensuring balanced regional development.
International Trade
Objective
To review as necessary the current National Trade
Policy Statement in the light of global and regional
developments.
Trade Policy
The Department will continue to develop Irish trade policy in
the framework of the European Union and the Organisation
for Economic Cooperation and Development (OECD). We
participate in the OECD Investment Committee and an EU
programme to assist certain countries in Central and Eastern
Europe, namely, the Instrument for Pre-Accession Assistance
(IPA – formerly PHARE).
Having particular regard to the central importance of
establishing Ireland’s regulatory and ethical reputation, this
Department has adopted a pro-active approach in relation to
investment policy, including through the aegis of the OECD.
The Department, in conjunction with other Departments and
bodies, has initiated a comprehensive programme to ensure
implementation of the 1997 OECD Convention on Combating
Bribery of Foreign Officials. The Convention is aimed at reducing
corruption in developing countries by encouraging sanctions
against bribery in international business transactions carried
out by companies based in the convention member countries.
Its goal is to create a level playing field in today’s international
business environment. Ireland ratified the convention in
September 2003. Countries that signed the convention are
required to put in place legislation that criminalises the act of
bribing a foreign public official and a comprehensive range of
awareness-raising activities in relation to the public and private
sectors.
The Bilateral Trade Unit in the Department also serves as the
locus for the OECD’s alternative dispute resolution mechanism
– the National Contact Point (NCP) for OECD Guidelines on
Multinational Enterprises. The NCP is currently mediating the
Shell/Corrib Gas dispute.
22
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Objective
To maximise the benefits to Ireland’s interests of the EU
and World Trade Organisation trade systems.
Doha Development Agenda
Negotiations in the World Trade Organisation on the Doha
Development Agenda (DDA) continued throughout 2008.
In July, the WTO convened a Ministerial meeting to review
progress and agree a framework for an agreement, and the
Tánaiste led an Interdepartmental delegation to represent Irish
interests at that Ministerial meeting. Although no agreement
was reached in 2008, talks have continued. The negotiations
cover a range of subjects, in particular:
trade in agricultural goods•
non-agricultural market access (industrialised goods)•
trade in services•
trade facilitation (simplified customs procedures), and•
trade and the environment.•
Alongside the DDA talks, we continued to participate and
represent Irish interests in the development of all other aspects
of the EU’s trade policy. In particular, the Department worked
to ensure that Ireland’s strategic trade interests were reflected
in the EU’s negotiations with third countries for Free Trade
Agreements. All this was done in consultation with other
relevant Departments, Agencies and interested parties.
Objective
To facilitate Irish exporters in achieving maximum
export sales for their products.
International Trade Missions
The Department’s Ministers led 14 separate trade missions
abroad in the course of 2008. These were organised in
conjunction with Enterprise Ireland and included participation
in a trade mission with the Taoiseach to South Africa, seven
trade missions to countries in Europe and also missions to other
countries including Saudi Arabia, the United Arab Emirates,
India, Brazil, Mexico, China and the USA.
These trade missions facilitated Irish companies in initiating
or developing relationships with current and potential partners
in the various targeted markets, strengthening relationships
with key contacts in those markets and raising the profile of
Ireland as a source of quality, innovative goods and services.
The range of markets chosen reflects both the need to provide
support in important established markets, and to assist
companies to further develop their export potential and to
diversify by accessing emerging markets, particularly those in
Eastern Europe and in Asia. In addition to these trade missions,
Enterprise Ireland has an overseas network of 32 offices
in traditional and emerging markets that provide intensive
assistance to companies seeking to establish or expand exports.
James Murphy, Managing Director, Lifes2Good; John McGuinness, T.D.,
Minister for Trade and Commerce; Osvaldo Federico Junior, Import Medic,
Brazil; Cristiano Federico, Import Medic, Brazil and Frank Ryan, Chief
Executive Officer, Enterprise Ireland at a trade mission in Brazil.
Joint Economic Commissions
In 2008, the second session of the Republic of South Korea/
Ireland Joint Economic Commission (JEC) and the tenth session
of the China/Ireland JEC were held in Dublin. Progress was
made on a range of trade-related issues. The Department has
established JECs with four countries – Saudi Arabia, China,
Russia and the Republic of South Korea. JECs are formal
Bilateral Inter-Governmental fora set up to deal with trade
development in all its aspects, mercantile and services. Their
role is to further the development of economic and business
cooperation, including scientific and technological cooperation
and to provide a forum for discussing issues of mutual
interest and concern to both Ireland and the other countries.
In addition, the Department administers a Joint Economic
Commission Fund, which promotes trade initiatives with these
countries.
Trade Data
The latest Central Statistics Office data for the full year shows
the value of total exports in 2008 as €154bn, which is a
reduction of less than 1% on the figure for 2007. This virtually
identical year-on-year performance was very impressive when
23
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
account is taken of both the global economic recession and
the exchange rate difficulties between the Euro and both the
US Dollar and Pound Sterling, as the US and UK are our two
largest single export markets.
The Export Credit Insurance Scheme, which was administered
by the Department in former years, was suspended in 1998.
Some debt owing to the State remained outstanding and
had previously been considered unrecoverable. However, the
Department has actively undertaken recoupment initiatives in
recent years with considerable success. A total of €6.3m has
been recovered since 2004 with €19,000 recovered during
2008.
Objective
To enhance Ireland’s trading footprint in emerging
markets.
Emerging Markets
In addition to the outward Trade Missions, the Department
facilitated a number of inward visits with foreign Ministers,
delegations, Ambassadors and officials from high growth
markets, including Saudi Arabia, China and India. These
inward visits are a crucial factor in further developing bilateral
economic relationships, thereby contributing to sustained
and expanded levels of trade. These bilateral engagements
also highlight key areas where exporters can seek market
development opportunities through Free Trade Agreements
that the EU is negotiating with important trading partners.
The second phase of the Asia Strategy, for the period 2005-
2009, set targets and priorities to expand trade and economic
links with the key Asian economies. Most of the key targets
have already been met or exceeded by the end of 2008, one
year ahead of the deadline. Trade with the priority countries
has more than doubled to over €10bn; a total of 233
Irish companies have established a presence in the priority
countries; there has been a significant increase in the sale of
Irish education services, with a series of educational events
organised throughout the region. In addition, there has been
a noteworthy increase in food and drink exports to Asian
countries. During 2008, Enterprise Ireland organised a wide
range of trade events to promote exports to the region.
In response to changing patterns of global trade in recent
years, in addition to Asia, considerable effort was made during
the year to develop new markets in high-growth countries such
as the key Gulf States, South America and Russia.
Objective
To contribute to the creation of a fully functioning
EU Internal Market, through, among other things,
the development of a single market in services,
the development of administrative cooperation
mechanisms between EU Member States and the timely
transposition of EU Directives.
Services Directive
The Directive on services in the internal market (2006/123/EC)
6
is intended to create a genuine “single market” for commercial
services and is a key provision of the Lisbon agenda. The
Directive contains important provisions on administrative co-
operation between Member States, provisions that are intended
to generate trust and confidence between them, as well as
giving consumers and service providers the confidence to
engage in cross-border transactions. It also contains important
provisions on consumer protection. Benefits to Ireland will arise
from the opening of 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.
Work on transposing the Directive, which must be finalised
before 28 December 2009, began in 2007 and continued
in 2008. The Department, along with all Government
Departments, began a screening exercise in 2008 to ensure
that our existing legislation/rules covering services that come
within the scope of the Directive comply with the Directive.
Any legislative changes that have to be made to bring existing
legislation/rules into line with the Directive must be made
before the transposition deadline. The Department also began
work in 2008 on a Regulatory Impact Analysis of the Directive
and on a Consultation Document regarding the method of
transposing the Directive.
At EU level, the Commission-chaired Expert Group continued
to meet in 2008 to discuss technical issues relating to the
transposition of the Directive and to provide assistance to the
Member States. The Department attended the 13 meetings
of the Expert Group in Brussels, as well as hosting a bilateral
meeting with the Commission in Dublin.
companies to further develop their export potential and to
diversify by accessing emerging markets, particularly those in
Eastern Europe and in Asia. In addition to these trade missions,
Enterprise Ireland has an overseas network of 32 offices
in traditional and emerging markets that provide intensive
assistance to companies seeking to establish or expand exports.
James Murphy, Managing Director, Lifes2Good; John McGuinness, T.D.,
Minister for Trade and Commerce; Osvaldo Federico Junior, Import Medic,
Brazil; Cristiano Federico, Import Medic, Brazil and Frank Ryan, Chief
Executive Officer, Enterprise Ireland at a trade mission in Brazil.
Joint Economic Commissions
In 2008, the second session of the Republic of South Korea/
Ireland Joint Economic Commission (JEC) and the tenth session
of the China/Ireland JEC were held in Dublin. Progress was
made on a range of trade-related issues. The Department has
established JECs with four countries – Saudi Arabia, China,
Russia and the Republic of South Korea. JECs are formal
Bilateral Inter-Governmental fora set up to deal with trade
development in all its aspects, mercantile and services. Their
role is to further the development of economic and business
cooperation, including scientific and technological cooperation
and to provide a forum for discussing issues of mutual
interest and concern to both Ireland and the other countries.
In addition, the Department administers a Joint Economic
Commission Fund, which promotes trade initiatives with these
countries.
Trade Data
The latest Central Statistics Office data for the full year shows
the value of total exports in 2008 as €154bn, which is a
reduction of less than 1% on the figure for 2007. This virtually
identical year-on-year performance was very impressive when
6 OJ L 376, 27.12.2006
24
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Impact of Internal Market on Ireland
As part of its background work during the European
Commission’s review of the Internal (or Single) Market
(published in November 2007
7
), the Department commissioned
Forfás to undertake a study of the impact of the Single Market
on Ireland, which was published in January 2008. The study
8
,
which was the first comprehensive look at the impact of the
Internal Market from an Irish perspective, identified the extent
to which Ireland had benefited from it, analysed where barriers
to further integration remained and identified what Ireland’s
priorities should be. It tested some of the assumptions about
the Internal Market against the experiences of Irish businesses
and consumers.
The study confirmed that the Internal Market had been
important both for the growth and diversification of Irish
trade and in terms of enhancing the attractiveness of Ireland
for foreign direct investment. It identified further potential as
regards countries with which our trade might be intensified. It
also identified some practical blockages that companies face in
trying to break into European markets, including issues relating
to: late payments/debt collection; different advertising rules
across the Member States; inconsistency in the interpretation
of legislation; and the present system for charging VAT in
cross-border transactions. The study concluded that the single
market had delivered real benefits for consumers, in terms of
the range and quality of the goods and services available, and
had made it easier for Irish consumers to purchase goods from
other Member States. It also concluded, however, that Irish
consumers continued to pay higher prices than many of their
EU counterparts for some essential goods and services. The
Review will serve as a basis for Ireland’s position in the ongoing
development of the Internal Market.
EU Administrative Cooperation Mechanisms
SOLVIT
In 2008, the Department worked with other Government
Departments and stakeholders, and with the European
Commission and the other Member States, to ensure that the
internal market rights of individual consumers and businesses
are vindicated through the use of EU administrative cooperation
mechanisms, such as SOLVIT and the Internal Market
Information System.
SOLVIT targets cases of misapplication of EU Internal Market
law by public authorities in the Member States. There is a
SOLVIT Centre in each of the EU Member States and in each
State of the European Economic Area. In 2008, the Irish SOLVIT
Centre dealt with 97 cases, up from 76 cases in 2007. Of these,
13 were initiated by the Irish SOLVIT Centre and 84 by other
SOLVIT Centres.
Internal Market Information System
The Internal Market Unit of the Department is also the national
coordinator for the roll-out of the Internal Market Information
(IMI) System in Ireland. During 2008, a pilot project dealing
with the administrative cooperation provisions of Directive
2005/36/EC on the recognition of professional qualifications
was successfully completed. The pilot project dealt with four
professions – pharmacists, doctors, physiotherapists and
accountants. More professions have since been added to the
professional qualifications area of IMI.
TAIEX
The (Technical Assistance and Information Exchange) Office of
the European Commission provides institution-building support
in all areas of EU legislation with a view to supporting the
alignment, application and enforcement of the legislation in
the new Member States, the Candidate Countries, the Western
Balkans, the Turkish Cypriot Community in the northern part
of Cyprus and the countries associated with the EU through
the European Neighbourhood Policy.
Experts from the public sector in the Member States provide
TAIEX assistance, on request. TAIEX has a national contact
point in each Member State; in Ireland, it is the Department of
Enterprise, Trade and Employment. During 2008, 43 requests
were received by Ireland from the Commission on behalf of
a number of Member States, Candidate States and other
countries associated with the EU covering a wide variety of
areas, including education, environment, finance, health and
road safety.
Transposition of Directives
Ireland achieved a transposition deficit rating for Internal
Market Directives of 1% in the Internal Market Scoreboard for
July 2008 and 0.9% for December 2008. (A deficit rating of
1% means that 99% of Directives were transposed by the due
date). The Department successfully transposed eleven Directives
into domestic law during the year. Overall, there are currently
eight Directives awaiting transposition in the period up to 2012.
7 http://ec.europa.eu/citizens_agenda/index_en.htm
8 Review of the Single Market (Forfás, January 2008)
25
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Objective
To support international peace and security by
controlling the export of strategic goods.
Control of Exports
The Control of Exports Act 2008 was enacted in February 2008.
Among the main features of the Act is the introduction of
licensing arrangements for controls on arms brokering and on
technical assistance activities such as repair, maintenance and
development and on the transfer of technology by electronic
means. The Act also provides for substantially increased fines
of up to €10 million and enhanced inspection and audit powers
for authorised officers.
In the course of 2008, development work on the introduction
of an on-line export licence application system (OELAS) was
completed. The system went live in January 2009.
National and International Dimension
In order to ensure a robust and effective Irish export control
system, the Department participated in meetings of EU Working
Groups which shape EU export control policy and regulation.
The Department also participated in meetings of international
export control regimes, in particular the Wassenaar Arrangement.
In 2008, the Department engaged in a range of meetings with
both industry representative groups and individual companies,
providing information and assistance on Irish export control
legislation.
North/South
Objective
To promote a favourable environment that optimises the
benefits of the all-island economy for enterprises through
North/South collaboration particularly in the areas of trade and
business development.
North/South Trade Study
A number of areas were identified in the publication,
Comprehensive Study on the All-Island Economy, where
co-ordinated North South policy intervention would prove
beneficial. Specifically, the study identified the development of
the Knowledge Economy, Research and Development, and co-
operation on trade and investment promotion. This Department
will continue to implement those actions in the Comprehensive
Study on the All-Island Economy, which fall within its remit.
InterTradeIreland
The Department co-funds InterTradeIreland, one of the six
North/South Implementation Bodies established by the Good
Friday Agreement. During 2008, the North South Ministerial
Council, in its Trade and Business Development format,
approved InterTradeIreland’s Corporate Plan 2008-2010. The
Corporate Plan is based on the principle that there are mutual
benefits to be gained though Ireland and Northern Ireland
co-operating to optimise the island’s economic resources.
InterTradeIreland’s strategic objectives over the lifetime of the
plan are to generate business value through its North/South
business programmes and to help improve the competitive
environment on the island through co-operative policy research,
reports and networks. The Department facilitated the ongoing
work of InterTradeIreland during 2008. During the year, a total
of 590 companies participated in InterTradeIreland business
programmes and more than a further 2,000 benefited from
its information and advisory services. Participating companies
reported business value in excess of €65m, with more than
120 new jobs created.
InterTradeIreland’s business and economic research publications
in 2008 include a Quarterly Business Monitor, Freight Transport
for the Island Economy 2020, Environmental Goods & Services
Sector on the Island of Ireland, Design Services Sector on
the Island of Ireland, Mapping Research and Technological
Development Centres on the Island of Ireland, and the
Simple Guide to Cross-Border Business.
North-West Gateway Initiative
The Department and its agencies continued with their
contribution to the ongoing work of the North-West Gateway
Initiative, a joint cross-border strategy which involves a broad
range of actions, including skills and enterprise development,
to maximise the potential of the North-West region.
Cross-Departmental Issues
Objective
To work in a co-ordinated cross-Departmental, cross-
Government and cross-Agency manner to meet our
Competitiveness and Enterprise objectives as outlined
in this Statement of Strategy.
The Department consistently works on a cross-Departmental,
cross-Government and cross-Agency basis, both formally and
informally, as is indicated throughout this Chapter.
26
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
GOAL
TO PURSUE LABOUR MARKET POLICIES WHICH
SUPPORT ENTERPRISE DEVELOPMENT AND PROMOTE
THE DEVELOPMENT OF HUMAN CAPITAL BY
IMPROVING THE SKILL LEVELS OF THE WORKFORCE,
THEREBY FACILITATING INCREASED PARTICIPATION
IN AND ACCESS TO EMPLOYMENT.
Skills Enhancement
Objective
To improve the skill levels of the workforce by striving
to meet the Forfás Expert Group for Future Skills
Needs’ “National Skills Strategy” Report objectives.
Training and Labour Market Priorities
The Department contributes to identifying and developing
responses to training and labour market priorities, notably
through its input to the formulation of the FÁS Statement
of Strategy 2006-2009. In response to the sharp economic
downturn and the resulting rise in unemployment, the training,
upskilling and reskilling of the country’s workforce in highly
relevant labour market sectors has become a key focus.
A total of approximately €1.076 billion was allocated
towards FÁS training and employment activities in 2008. This
represented a funding increase of approximately 2.8% when
compared with 2007. The resources were invested, in particular,
towards providing additional skills training for unemployed
people who had lost their jobs as a direct result of the sharp
economic downturn. Investment also continued into upskilling
those in employment through the delivery of company-specific
training needs to workers at all levels to ensure that the Irish
workforce is well placed to take advantage in the marketplace
when the economic upturn arrives. Resources were also
invested in the provision of training programmes designed
to assist the long-term unemployed, socially excluded, and
women in gaining access to the labour market and to improve
their prospects of obtaining or returning to employment.
Over 40,000 people seeking employment embarked on FÁS
training programmes during 2008, including more than 18,000
apprentices who completed a phase of off-the-job training.
Training for People in Employment
The Department continued to provide learning opportunities
to people in the workforce. In 2008, the Department provided
over €191 million in training activities for those in employment,
including apprentices, to allow them to participate in
employment-related upskilling.
In 2008, FÁS spent over €36 million on training for people
in employment. This allocation allowed for some 204,000
training days to be delivered to 32,390 participants under the
FÁS Competency Development Programme. In addition, FÁS
facilitated the provision of training in literacy and numeracy
to almost 1,000 trainees under the Workplace Basic Education
Fund, funded by the Department.
Two new FÁS Strategic Alliance Initiatives were rolled out
– the first was in the area of training low skilled/low qualified
workers, while the second will focus on small and medium
sized enterprise (SME) management development training.
The Skillnets Training Networks Programme (TNP) received
€26m from the National Training Fund. This allocation,
augmented by matching funds from participating private sector
companies, allowed the TNP to support record levels of training
for the employed with 256,858 training days being delivered
to 57,863 participants across 123 networks. In addition, the
final phase of the Skillnets ACCEL programme to accelerate
in-company skills development was completed in 2008 with
over 29,300 trainees and 131,500 training days delivered
over the 3-year duration of the programme.
Pillar 3: Skills Supply, Enhancement
and Participation in the Workforce
27
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Apprenticeship Training
The budget for the FÁS Apprenticeship programme was
€126,842 in 2008. Over 1,280,000 training days were
provided to apprentices in the course of the year. The
downturn in construction led to an increase in the number
of redundant apprentices. The Department, in conjunction
with FÁS, developed a range of measures, to be rolled out in
2009, to assist apprentices who had been made redundant
in progressing their apprenticeship. Due to a change in the
scheduling rules for off-the-job training phases during 2008,
over 600 redundant apprentices were permitted to progress
their apprenticeships. In addition, the Employer Based
Redundant Apprentice Rotation Scheme, which was launched
on 31st December 2008, will provide places to assist up to
500 apprentices to progress their apprenticeships during
2009. For 2009, a total of over 3,600 places have been put
in place to assist redundant apprentices in progressing their
apprenticeships. The Department and FÁS continue to work
with all relevant stakeholders to facilitate as many redundant
apprentices as possible in progressing towards their final
apprenticeship qualification.
Support for Literacy and Numeracy Initiatives
The TV series ‘Written Off’, which is promoted by the National
Adult Literacy Agency, was supported by the Department by
way of a grant of €378,000 and broadcast on RTÉ 1 in May
2008. The objective of this ongoing project was to promote
awareness of the services that are available to develop literacy
and numeracy skills and to encourage recourse to these by
people who are educationally and vocationally disadvantaged.
Cross-Departmental Skills Enhancement Issues
The Upskilling Co-ordination Group, established in 2007,
continued to develop joint co-operation and information
exchanges between the relevant Government Departments
and Agencies. Its key purpose is to develop a more strategic
approach to training and related policy development and to
ensure that duplication in the provision of services is addressed.
The Department continued to work co-operatively with the
Department of Education and Science, and other relevant
organisations, to ensure that developments and directions
agreed at international level inform domestic training and
education policies and practices. The Department also
continued to co-operate with the National Qualifications
Authority of Ireland to further develop and promote the
National Framework of Qualifications.
Skills Supply
Objective
To ensure that enterprises have the right skills available
to them to grow and develop.
Migration Policy
In 2008, the Department commenced work with FÁS
and the Expert Group on Future Skills Needs to ensure our
existing categories of labour and skills shortages continue
to reflect current labour market requirements. As a result
of this review, a number of categories in the construction
industry were removed from the list of occupations eligible
for an employment permit. Further work on the review will
continue in 2009.
In December 2008, the Tánaiste announced that the
Government had decided to continue to require that nationals
of Romania and Bulgaria apply for work permits in order to
participate in the Irish labour market, but that preference would
be given to them over nationals of non-European Economic
Area countries. The considerable challenges now posed as a
result of the downturn in the global economic environment,
and the direct impact on the labour market were factors
influencing the decision.
Eamon Healy, Centenary Thurles Co-Op Society, Chairman ICOS Skillnet
Steering Committee; Niamh O’Mahony, Dairygold Co-Op Society; Jana
Sirotkova, ICOS Skillnet Project Manager; An Tánaiste and Minister for
Enterprise, Trade and Employment, Mary Coughlan T.D.; Jim Kelly, Connacht
Gold Co-Op Society and Michael Murphy, Wexford Farmers Co-Op Society at
the ICOS Skillnet Launch in ICOS, The Plunkett House, Merrion Square, Dublin.
28
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
The Department set customer service goals for processing
all completed Employment Permit applications during 2008,
with fifteen working days set as the minimum target. The
Department consistently delivered in line with the fifteen-day
target during 2008. A dedicated call centre team provided
information on all aspects of the employment permits
process. In addition, applicants can check the progress
of their applications through all stages of the process.
Participation
Objective
To increase participation in employment by all those of
working age and to promote increased participation by
women and older workers, including those who wish to
continue in employment past 65, as well as by groups
such as the long-term unemployed, lone parents,
people with disabilities and Travellers.
FÁS Employment Services
During 2008, FÁS continued to operate the National
Employment Action Plan Preventive Strategy, which provides a
systematic engagement of Employment Services staff with the
unemployed. The focus is on early intervention with persons
referred to FÁS by the Department of Social and Family Affairs
for the purpose of assisting their integration into the labour
market and to provide, where appropriate, the necessary skills
to improve their employability.
Up to the end of 2008, 60,260 persons were referred to FÁS,
representing an increase of nearly 9,000 compared to the total
number referred in 2007. Of this total, 33,919 left the Live
Register. FÁS continues to engage with the remainder.
FÁS provides a series of services for those seeking employment.
In 2008, over €446 million was committed in respect of the
provision of employment programmes. These include the Job
Initiative Programme which provides full-time employment for
people who are over 35 and unemployed for 5 years or more,
the Community Employment Programme which helps the
long-term unemployed to re-enter the workforce by breaking
their experience of unemployment through a return to work
routine, and the Supported Employment Programme – an active
labour market initiative to assist jobseekers with a disability to
find employment in the open labour market. Nearly 32,000
people completed an employment programme in 2008.
This figure is roughly the same as 2007 and represents the
aims of the Department in maintaining essential community
services and at the same time helping to progress programme
participants toward the open labour market. In addition to
these programmes, FÁS provides a placement and career
guidance service and has self-service access to a wide range
of job vacancies, including opportunities in other EU Member
States and the European Economic Area.
A High Level Group, comprising representatives from the
Department, the Department of Social and Family Affairs,
the Department of the Taoiseach and FÁS, which was set up
in 2007 to progress the activation of other client groups, in
particular, Lone Parents and Disabled People, continued to
meet during 2008. The Social Partnership Group on Labour
Market issues continued to meet throughout 2008. Finally,
the Department continued to provide representation on
the National Traveller Monitoring and Advisory Committee
throughout 2008.
FÁS Wage Subsidy Scheme
The operation of the FÁS-funded Wage Subsidy Scheme
continued in 2008 to provide on-going incentives for employers
and persons with disabilities to take up employment in the
open labour market. The scheme was introduced in September
2005 on a three-year pilot basis. A review of the operation of
the scheme was completed in May 2008 by external consultants
on behalf of the Department. Following the review, the Tánaiste
approved the placing of the FÁS Wage Subsidy Scheme on a
permanent footing from 1 October 2008, subject to a number
of reforms being made to improve the effectiveness of its
operation.
Employment Strategy for People with Disabilities
The Consultative Forum on an Employment Strategy for
People with Disabilities provides a channel for key stakeholders
to discuss broad strategic issues that directly or indirectly
impact on vocational training and employment for people
with disabilities. Discussions between the Department and
the Consultative Forum continued in this regard in 2008.
A draft outline for the implementation of a Comprehensive
Employment Strategy for people with disabilities was developed
by the Department and was discussed with the Consultative
Forum in September 2008. The outline received a positive
response from the Forum.
The Consultative Forum identified as a key objective the
need to conduct a systematic review of current job retention
and return to work practice following a disability acquired in
the workplace. The Department commissioned this research
in November 2007. The study, entitled Research Report
on Acquired Disability and Employment, was completed in
November 2008 and its main findings were presented to the
Consultative Forum in December 2008.
Disability Awareness
Funding for disability support and awareness-raising to assist
the integration of people with a disability into the workforce
continued to be provided in 2008 by the Department, through
the FÁS budget.
29
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Review of FÁS Programmes
and Expenditure
Objective
To work together with other Divisions within the
Department and with other Departments and agencies
to achieve our objectives.
The Department holds regular meetings with FÁS to review
progress and ensure that, where necessary, adjustments to
strategy and funding are made in line with changing priorities.
Expenditure and activity are monitored on an ongoing basis
with in-depth reviews of specific schemes carried out where
necessary.
During 2007, work began on a Value for Money review of
the FÁS Competency Development Programme, a mechanism
designed to raise the skill levels of targeted employees in
specific sectors. The review continued throughout 2008.
The review of the operation of the FÁS-funded Supported
Employment Programme, which was commissioned by FÁS
in November 2007, was completed in May 2008. Following
consultations between the Department, FÁS and the Supported
Employment Directors Forum, a number of actions were
adopted by FÁS in line with the review recommendations
to enhance the effectiveness of the programme. The
implementation of the FÁS Action Plan has commenced and will
continue in 2009.
In 2008, the Department announced that a Review would take
place into all labour market programmes funded by it, including
those delivered by FÁS. The FÁS Review will examine all existing
programmes in the context of their efficiency and effectiveness
and future labour market policy challenges, including the
National Skills Strategy. It is expected that the Review will be
completed during 2009.
FÁS is required to comply with the Code of Practice for the
Governance of State Bodies, a review of which took place
in June 2008. In September 2008, the Tánaiste and Minister
for Enterprise, Trade and Employment requested that the
Comptroller and Auditor General (C&AG) carry out an external
investigation into the effectiveness of the financial management
and control systems within FÁS. The C&AG has published an
initial report and further investigations will continue during
2009.
On 4 December 2008, the Tánaiste and Minister for Enterprise,
Trade and Employment approved the appointment of Mr
Eddie Sullivan as Director General of FÁS on an interim basis
in succession to Mr Rody Molloy. The other current FÁS Board
Members took office on 1st January 2006 for a five-year term.
Cross Cutting Issues
Objective
To effectively participate in EU labour market policy
discussions.
European Employment Strategy
The initial three-year cycle under the revised Lisbon Strategy
concluded in 2007. There was broad consensus among Member
States that the Employment Guidelines for the second cycle of
the Lisbon Strategy (2008-2010) should not be changed and
that the focus should be kept on implementation. The labour
market priorities for the period 2008-2010 are as follows:
sustaining a high level of employment and low •
unemployment
ensuring an adequate supply of skilled labour to meet •
the needs of the economy, and
enhancing educational/qualification levels at all stages •
of the lifecycle to ensure the availability of a high skilled,
adaptable workforce.
While these priorities remain mainly unchanged, the economic
environment in which we operate has deteriorated and this
presents us with new challenges in the context of rising
unemployment. In order to meet these challenges there will
be a greater policy emphasis on activation and training for the
unemployed, while at the same time ensuring that there will be
an adequate supply of skilled labour to meet the needs of the
economy.
Under the Lisbon Agenda, a number of EU employment
targets for 2010 are in place: an overall employment rate of
70%; a female employment rate of 60% and an employment
rate of 50% for older workers aged 55-64. Ireland has made
steady progress in relation to these targets. At Quarter 4 2008,
the overall employment rate stood at 65.8%, the female
employment rate was 59%, with the employment rate for
older workers at 52.8%.
Labour Market Data
Labour Market data is continuously analysed and updated on
the basis of the various CSO statistical publications, such as the
Quarterly National Household Survey and the Live Register, and
reports of bodies such as the ESRI and FÁS. Employment/labour
market indicators are also monitored on a regular basis. Details
of the present labour market situation are outlined in Appendix
6 of this Report.
30
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
European Social Fund (ESF)
Having been agreed and adopted by the European Commission
at the end of 2007, the Human Capital Investment Operational
Programme (HCI OP) 2007-2013 became fully operational
in 2008 with an overall budget of €1.36 billion (including
€375 million in ESF funding).
The two policy priority themes of Upskilling the Workforce
and Activation and Participation of Groups outside the Labour
Force began to be fully implemented, via 15 broad areas of
activity, with a view to contributing to increasing skill levels
and enhancing the productivity of the workforce. It will also
help to address labour market gaps for specific groups that
are experiencing barriers to participation and employment,
including those created by gender inequality and wider
inequalities. Approximately €80 million in ESF support was
received by Ireland during 2008, €24 million of which was in
respect of activities run by or on behalf of the Department
and its Agencies.
A new computerised financial management system was
introduced in 2008, which will facilitate more effectively the
timely management and drawdown of ESF funding under the
HCI OP 2007-2013. The required financial control procedures,
involving checks on both individual claims and the control
systems of the relevant Agencies and organisations involved,
were applied and timely ESF drawdown claims were made and
processed in accordance with National and EU requirements.
In 2008, the Department also completed both the EQUAL
Community Initiative Programme and the Employment and
Human Resource Development Programme (EHRD OP) 2000-
2006, initiating the formal closure process in both cases.
North/South
Objective
To promote active North/South cooperation and
coordination on labour market issues.
All-Island Skills Conference
In what was a significant first step towards the development
of a co-operative cross-border approach to skills demand and
delivery on the island of Ireland, the inaugural All-Island Skills
Conference was held in October 2008. The conference was
the first collaborative event organised by the Expert Group
on Future Skills Needs (EGFSN) and the Northern Ireland Skills
Expert Group (NISEG).
At the conference, an All-Island Statement of Skills Demand
was launched, which provides an up-to-date picture of skills
demand on an all-island basis. It will inform the work of both
expert groups to ensure that the evidence is available to
underpin policies that will deliver the necessary workforce
skills across the island.
31
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
GOAL
TO FOSTER GOOD INDUSTRIAL RELATIONS AND
THE PARTNERSHIP MODEL, SUPPORTED BY AN
APPROPRIATE EMPLOYMENT RIGHTS LEGISLATIVE
AND INSTITUTIONAL FRAMEWORK.
Social Partnership and Industrial Relations
Objectives
To continue to be active participants in the Social
Partnership process.
To promote social dialogue at national and enterprise
levels.
Towards 2016 – Review and Transitional
Agreement
Throughout 2008, the Department supported the Social
Partnership process through engagement in national level
negotiations, participation in Social Partnership structures
including monitoring and reporting arrangements, bilateral
contacts with the employers and trade union pillars, and
development of policy initiatives and legislative commitments
arising under Towards 2016.
On 17 September 2008, the Government and Social Partners
reached a draft Transitional Agreement on a successor to the
first module of Towards 2016. The Agreement reached between
the parties covered a range of workplace issues under the aegis
of the Department, including:
renewed Government commitment to enacting the •
Employment Law Compliance Bill
setting up a process to develop a national framework on •
the employment and rights of temporary agency workers;
while prohibiting their use in the case of official strikes or
lock outs
in the area of collective bargaining (in non-unionised •
companies), the establishment of a review process to be
chaired by the Department of the Taoiseach which would
consider the legal and other steps necessary to enable the
mechanisms that had been established under previous
agreements to operate as they had been intended
establishment of a review process to be chaired by the •
Department of the Taoiseach to protect employees against
victimisation (and to provide a means of redress) when
engaged in the exercise of their rights to trade union
membership or activity on behalf of a trade union (or
non-membership) and to prevent incentivisation of
employees not to engage in trade union activities
amendment of the Competition Act to exclude certain •
categories of self-employed workers (e.g., freelance
journalists, voice-over actors) from the provisions of
the Competition Act 2002
introduction of legislation to provide for the continued •
effective operation of the Joint Labour Committee and
Registered Employment Agreement systems
introduction of legislation to transpose into Irish law •
the optional pension provision under the Transfer of
Undertakings Directive on the same basis as other terms
and conditions of employment as at the date of transfer,
and
initiatives in the area of Workplace Learning and Upskilling.•
Modernisation of Joint Labour Committee
System
The Working Group established by the Labour Court to
draw up measures to give effect to the commitment in
Towards 2016 to modernise the Joint Labour Committee
(JLC) system concluded its work in 2008 and prepared a
Report on the progress made on the various issues. Among
the issues addressed in this exercise were the amalgamation or
abolition of some JLCs, introduction of a standardised approach
to the text and layout of Employment Regulation Orders, and
alignment of dates for some wage adjustments. Implementation
of the Report’s recommendations was progressed during 2008.
Pillar 4: Workplace Partnership
& Employment Rights
32
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
National Framework Committee for Work-Life
Balance
During 2008, the National Framework Committee for Work-
Life Balance continued its remit as set out in Towards 2016
and the Programme for Government where it is charged with
supporting and facilitating the development of family friendly
policies aimed at assisting in the reconciliation of work and
family life at the level of the enterprise. Work-Life Balance
Day, an annual initiative first developed by the Committee
in 2001, was held on 28th February. Uptake of the Panel of
Consultants scheme, whereby an experienced consultant can
be made available to work with SMEs, increased in 2008 with
40 organisations from different sectors and different locations
receiving assistance from the Panel to introduce or enhance
existing work-life balance policies.
Workplace Innovation Fund
Support to the Social Partners continued in 2008 through
the Workplace Innovation Fund, which carried out projects
on issues such as information and consultation, flexicurity,
HR best practice and financial participation. The Fund also
supported companies to build a stronger commitment
to workplace innovation. At the end of 2008, a total of
33 companies had been approved for grants of just over
€2m for projects involving the promotion of innovation
at company level.
Objective
To promote and support a stable industrial relations
climate including effective dispute resolution.
Labour Relations Commission
Significant financial resources are allocated annually to the
dispute resolution and prevention bodies. During 2008, a grant
of €5.9 million was paid to the Labour Relations Commission
to cover its operating costs for the year. The cost of operating
the Labour Court and the Employment Appeals Tribunal was
met directly out of the Department’s allocation. A total of
3 additional Rights Commissioners, plus support staff, were
appointed during 2008 to deal with the increase in the number
of referrals to the Rights Commissioner Service.
The number of days lost to industrial disputes during 2008 was
4,179, the lowest since records began in 1923. 2008 was the
fifth year since 2002 that had produced a new record low for
workdays lost to industrial disputes.
Industrial Relations Legislation
In 2008, the Industrial Relations Section was responsible for
transposing article 16 of Directive 2005/56/EC on cross-border
mergers of limited liability. The Directive was transposed
through S.I. No. 157 of 2008, the European Communities
(Cross-Border Mergers) Regulations 2008. Article 16 deals with
the arrangements for employee involvement in a company
participating in a cross-border merger. Work also commenced
on drafting the Industrial Relations (Amendment) Bill to provide
for the continued effective operation of the Joint Labour
Committee and Registered Employment Agreement systems as
agreed under the Towards 2016 Transitional Agreement.
Employment Rights
Objective
To ensure that the Department is in a position to
maintain consistency of outcomes and a capacity
to deliver on commitments made in partnership
negotiations and to take the lead role insofar as social
partnership negotiations concerning Employment
Rights legislation and compliance.
Transfer of Undertakings Directive –
Optional Pensions Provision
In the Towards 2016 Transitional Agreement, the Government
agreed to introduce legislation, in the context of a transfer of
an undertaking, to put pension arrangements on the same basis
as other terms and conditions of employment, as at the date
of transfer. Furthermore, any change thereafter for economic,
technical or operational reasons would not be prohibited.
These provisions would also allow employers and employees
to agree alternative arrangements in the context of a transfer
of undertaking. Work on clarifying certain legal issues was
continuing at end-2008, with the aim of finalising specific
legislative proposals in 2009.
Objective
To deliver on specific commitments regarding
Employment Law.
Employment Law Compliance Bill 2008
The Government committed under the Social Partnership
Agreement, Towards 2016, to a series of measures to greatly
increase public confidence in the system of employment law
compliance. The Employment Law Compliance Bill 2008,
published in March 2008, is designed to give effect to those
commitments, upon enactment.
33
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
The main purpose of the Bill is to strengthen employment
rights compliance and ensure a level playing field between
employers such that no competitive advantage is gained
through denial of workers’ entitlements. The Bill also provides
for the appointment, on a statutory basis, of the Director of the
National Employment Rights Authority (NERA) and strengthens
enforcement through enhanced penalties and protection
against victimisation for exercising employment rights.
Extensive consultations with the Social Partners and
stakeholders, as well as further detailed examination of the Bill
with the Parliamentary Counsel and the Office of the Attorney
General, continued throughout 2008 with a view to enactment
of the Bill in 2009.
Employment Agency Regulation Bill 2008
In March 2008, the Government approved Heads of a Bill for
an Employment Agency Regulation Act, which would replace
the existing Employment Agency Act 1971. Discussions with
various stakeholders on the review of the existing legislation
had been undertaken prior to the Towards 2016 Social
Partnership Agreement, where the Government committed
itself to a Bill to regulate the agency sector. This took place
against the background of a re-launch of the stalled EU
Directive on Temporary Agency Workers. Work on preparing
the draft Bill was well advanced by end-year.
Employment Law Consolidation Bill
The proposed Employment Law Consolidation Bill is intended
to simplify and codify employment law spanning more than
60 years, pursuant to section 16.3 of Part 2 of “Towards 16”.
While progressing this Bill awaits completion and enactment
of the priority Employment Law Compliance Bill 2008, general
preparation for the drafting is proceeding. As a necessary first
step, the text of all current employment legislation as amended
to date has been compiled for ease of reference by interested
parties, and is available on the Department’s website at
www.entemp.ie. This material will be kept up-to-date as required.
EU Directive on Temporary Agency Work
In June 2008, after a lengthy negotiation process, EU Ministers
for Labour reached agreement on a Directive which provides
the basis on which temporary agency workers, unless the Social
Partners agree otherwise, will be entitled, from day one, to
equal treatment compared to directly recruited workers in terms
of pay and basic entitlements (e.g., holidays, working time,
rest periods). By empowering the Social Partners in this way,
the outcome met the Irish Government’s concerns that Ireland
would not be placed at a competitive disadvantage because of
more flexible arrangements that may exist in other EU Member
States. The proposed Council position was subsequently agreed
by the European Parliament, and the Temporary Agency Work
Directive 2008/104/EC, was adopted on 19 November 2008,
and published in the Official Journal on 5 December 2008
9
.
In accordance with Article 11 of the Directive, Member States
have three years in which to transpose the Directive into
national legislation, i.e., by 5 December 2011.
Proposed Amending Directive on the
Organisation of Working Time
In parallel with the agreement reached on a Directive on
Temporary Agency Work, EU Ministers for Labour Affairs also
agreed, by qualified majority, in June 2008, a Common Position
on a proposed Amending Directive on the Organisation of
Working Time. The amending Directive aims to bring clarity
to rules regarding, inter-alia, ‘on-call’ time arising from recent
European Court of Justice rulings, the better reconciliation of
work/life balance and new checks and balances on any decision
by a Member State who wishes to avail of the use of the ‘opt-
out’ by individual workers from the 48 hour average weekly
working time limit.
The European Parliament, at its Plenary in December 2008,
proposed a range of amendments to the position agreed at
Council including that the ‘opt-out’ be phased out three years
after the date of adoption of the proposed amending Directive.
The Council of Ministers at the Employment, Social Policy,
Health & Consumer Affairs (ESPHCA) Council, in December
2008, could not agree to the European Parliament’s proposed
amendments, and the dossier is now subject to Conciliation.
EU Green Paper on Labour Law
The outcome of the Green Paper public consultation conducted
by the European Commission on Labour Law was reflected
in the Commission’s Communication of October 2007
10
.
The Commission indicated that the reactions to the public
consultation suggest that the national reform process under the
EU’s Strategy for Growth and Jobs and the integrated approach
to developing and implementing flexicurity-based principles
11
are the best way forward. As such, the outcome from the public
consultation provided a platform, during 2008, for discussion
of issues raised.
9 OJ L 327, 5.12.2008, p.9
10 Outcome of the Public Consultation on the Commission’s Green Paper “Modernising labour law to meet the challenges of the 21st Century”
11 Issues for consideration include how labour law can assist in promoting flexibility & security and adapt to the changing world of work
34
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Billy Kelleher, T.D., Minister for Labour Affairs, Ger Deering, Director,
National Employment Rights Authority (NERA) and Micheál Martin, T.D.,
(then) Minister for Enterprise, Trade and Employment at the launch of
the NERA public awareness and media campaign.
Employment Rights Compliance
Objectives
To familiarise employees and employers regarding
employee entitlements and employer obligations under
Irish employment legislation with particular emphasis
on the most vulnerable employees across all sectors of
the economy.
To promote and enhance employment rights compliance,
by means of enforcement as necessary, so as to protect
employment rights in the workplace.
National Employment Rights Authority
NERA launched a major public awareness and media campaign
in January 2008. NERA’s website, www.employmentrights.ie,
was launched to coincide with the public awareness campaign
and, from its launch to the end of 2008, the website had
almost 2 million hits. NERA is committed to ensuring its
services are offered with maximum accessibility as well as
publishing parts of its website in a number of different
languages. Information is also available in Braille and audio
formats. With effect from January 2008, and in an effort to
build on its public awareness campaign, NERA published a
bulletin, NERA Quarterly, providing information on NERA’s
ongoing activity in relation to its information, inspection
and prosecution services.
In addition, during the year, NERA engaged in a range of
consultations with stakeholders and initiated a structured
dialogue with the parties to the Social Partnership Agreement
– ICTU, IBEC and the CIF – on the development of a
comprehensive and responsive system of employment rights
compliance and enforcement. A draft Memorandum of
Understanding (MOU) was developed with ICTU in 2008.
In terms of employment law enforcement in 2008, NERA
conducted almost 28,000 workplace inspections as against
just under 14,500 in 2007. This increased level of inspection
activity was reflective of the greater level of Inspectorate
resources available to NERA. As regards the level of breaches
detected in 2008, which totalled 4,629 as reported in NERA’s
2008 annual review, this represented a virtual doubling of the
level detected in 2007. The amount recovered by NERA on
behalf of employees for outstanding entitlements amounted to
€3.1m in 2008. Where breaches are detected, NERA’s primary
objective is to seek compliance with the relevant legislation and
the rectification of any breaches identified, including redress for
the individual(s) concerned and payment of any arrears due to
employees.
In terms of resources, the commitment in Towards 2016 was to
have the Labour Inspectorate increase to 90 by the end of 2007
and to increase staffing resources in NERA in general. A major
recruitment process, which commenced in 2007, was continued
into early 2008. By the end of 2008, the organisation was
fully operational with its headquarters in Carlow and regional
office locations in Dublin, Cork, Sligo and Shannon. As at 31
December 2008, NERA employed 131 persons.
Occupational Health and Safety
Objectives
To advise on all relevant occupational health and safety
policy issues and to advocate adherence to Government
policy on occupational health and safety.
To monitor, support and evaluate the activity of the
HSA and liaise with it on resource issues.
Health and Safety Authority
In 2008, the Department and the Minister for Labour Affairs
continued to advocate the development of appropriate
occupational health and safety policies and to facilitate
the development of a culture of safety in all workplaces by
supplementing the work of the Health and Safety Authority
(HSA) and by participating in a number of important health and
safety events. The Department also worked closely with the
Authority in the development of new worker safety regulations.
35
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
The HSA is funded by the Exchequer and the Department
is represented on the Board of the Authority and is also a
participant in the HSA’s Strategic Review Sub-Committee.
This representation enabled the Department to support the
work of the HSA during 2008 and to assist it in discharging
its remit in enforcing occupational health and safety law in
Ireland.
EU and International Fora
In 2008, the Department was represented at meetings of the
European Agency for Safety and Health at Work, the Board of
European Chemicals Agency and at the EU Advisory Committee
on Safety and Health at Work in Luxembourg.
Objective
To advocate for safer workplaces, reduce the rate of
occupational illnesses and accidents and continue to
make workplace health and safety law simple and easy
to use.
Health and Safety Authority Activities
The objective of the strategy of the Health and Safety Authority
is to develop a culture of safety in all workplaces. Worker safety
advocacy in an important element in achieving this objective
and in 2008 the Department, through the Authority, supported
a National Conference on Workplace Bullying, an All-Island
Agriculture Safety Conference and a National Conference of
Safety Representatives from all sectors of industry.
In 2008, the Department funded Health and Safety Authority-
approved programmes designed to improve workplace
safety, including the Safety Representative Facilitation Project
sponsored by ICTU and the Construction Industry Federation,
the Kilkenny Education Centre “School’s Farm Safety Slogan”,
and the production of a Guide to Health and Safety Law for
TEEU safety representatives and members.
Health And Safety Legislation
In 2008, the Department worked closely with the HSA in
the development of new regulations for safety in the quarries
sector. The Safety, Health and Welfare at Work (Quarries)
Regulations (S.I. No. 28 of 2008), revised and updated, as
well as making more simple to use, legislation in this area
dating back to 1965.
Amendments were made in 2008, in consultation with the
HSA, to workplace safety legislation for the construction sector,
resulting in more time being made available to the industry to
have statutorily required training completed and also to ease
the regulatory burden in regard to certain safety requirements
at road works.
Objective
To introduce a Chemicals Regulation and Enforcement
Act aimed at ensuring maximum compliance with
“REACH” (Registration, Evaluation, Authorisation
and Restriction of Chemicals) requirements.
Chemicals Act 2008
The Chemicals Act 2008, enacted in July 2008, is aimed at
providing a clear regulatory framework for business in order to
achieve high levels of compliance with certain EU Chemicals
Regulations, the best known of which is “REACH” (Registration,
Evaluation, Authorisation and Restriction of Chemicals). It is also
aimed at ensuring co-operation between the various national
authorities responsible for enforcement, in order to minimise
enforcement costs to both business and national authorities.
Redundancy and Insolvency Payments
Objective
To ensure that employees receive their statutory
redundancy and insolvency entitlements.
Redundancy and Insolvency Payment Schemes
The hugely increased levels of Redundancy and Insolvency
Payment claims lodged, particularly towards the latter end
of 2008, placed enormous pressure on the existing staff
resources such that, by year end, it was not possible to meet
the original processing target times for claims. Payments under
the Redundancy Payments Scheme totalled €183.2 million
in respect of 40,607 claims in 2008. The equivalent number
of claims processed in 2007 was just over 25,000 leading to
payments of €183.3 million. By the end of 2008, the increase
in both the volume and complexity of claims had increased the
average processing time for redundancy claims to 16 weeks
in the case of on-line claims and 20-22 weeks in respect of
manual claims.
36
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
With regard to the Insolvency Payments Scheme, claims
processed in 2008 totalled 9,704, involving 287 employers and
4,506 employees with expenditure of €10.1m. For comparison,
there were 6,609 claims in 2007, with expenditure of €5.7m.
In the case of the Insolvency Payments Scheme, the surge in
volume of claims in the latter part of the year brought the
overall average waiting time in 2008 to 10 weeks.
By the end of 2008, it was clear that additional staff and other
resources would be required to manage the Department’s
commitments under these schemes going forward. Significant
additional resources have since been deployed from other areas
of the Department to the Redundancy/Insolvency areas.
Review of the Insolvency Payments Scheme
In the context of a review of the Insolvency Payments Scheme,
a Business Process Review of Insolvency Payments Section was
completed in March 2008. Recommendations, which involved
administrative changes, were implemented in May 2008
and technical changes to the IT system are being completed
in stages. Remaining IT adjustments will be implemented in
the context of an upgrade to the system planned for the 3rd
quarter of 2009.
On-Line Redundancy Payments System
Although usage of the on-line Redundancy Payments System
has increased to levels which vary between 55-65%, the target
level of 70-80% has not yet been achieved. Consideration will
be given in 2009 to further measures to migrate customers to
the on-line channel.
Social Insurance Fund
During 2008, the Redundancy Recoveries Unit recovered an
amount totalling €993,937 to the Social Insurance Fund and
this work will continue into 2009. Additionally, a Write-Off
Committee was set up in April 2008 with the objective of
examining and considering for write-off, debts arising under
the Schemes where it is clear that the monies outstanding are
irrecoverable. Four meetings of the Write-Off Committee were
held in 2008 and an amount of €8.5m in irrecoverable debt
was written off.
Cross-Departmental Issues
Objective
To co-ordinate cross-Departmental and cross-Agency
efforts, as appropriate, to meet employment rights and
health & safety objectives.
Employment Rights and Industrial Relations
The Department, and the Agencies and Offices under its
remit, contributed to the management and development of
cross-cutting policy issues in a range of ways, such as through
Social Partnership structures and reporting mechanisms,
input to policy and legislative proposals sponsored by other
Departments, meetings and formal coordination with
Government and other stakeholders on employment rights,
industrial relations and EU matters arising. Other specific cross-
cutting measures taken include:
Health and Safety Authority
The Health and Safety Authority (HSA) commenced a review
of areas of overlapping responsibility and interaction during
2008. This involved assessing the points of intersection of
the Authority’s remit and work with other key public bodies,
including Government Departments and Agencies. This
work will help to inform future policy decisions, structural
considerations and the implementation and development
of effective working arrangements.
National Employment Rights Authority
Joint Investigations: In 2008, a total of 7 briefing meetings
were conducted for inspectors from Revenue Commissioners,
Department of Social and Family Affairs and the National
Employment Rights Authority (NERA), who are/will be engaged
in joint investigation activity, to formalise Joint Investigation
activity at regional level and to ensure that inspectors from
the 3 bodies are familiar with the activities, requirements
and personnel of the 3 Inspectorates. NERA benefited during
2008 from the information sharing provisions under the Social
Welfare and Pensions Act 2007 in undertaking its inspection
activity. In addition, in the course of 2008, a total of 12 joint
investigations took place with Revenue and/or Department
of Social and Family Affairs.
North-South Cooperation: In 2008, NERA met with the
Department of Employment and Learning of Northern Ireland
(DELNI) with a view to establishing North/South linkages in
the areas of employment rights. Full briefing was provided
to an interdisciplinary group of Northern Ireland stakeholders
on progress with the establishment of NERA.
37
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
GOAL
TO ENSURE THAT THE BUSINESS REGULATORY SYSTEM
FACILITATES COMPETITION IN THE MARKETPLACE
WITH HIGH STANDARDS OF CONSUMER PROTECTION
AND CORPORATE GOVERNANCE.
Better Regulation
Objective
To reduce the administrative burden on the
business sector in the Department’s range of policy
responsibilities and to promote best practice in
minimising the administrative burdens on business
across Government Departments and Agencies.
High Level Group on Business Regulation
The High Level Group on Business Regulation tackled a number
of key “red tape” issues during 2008, seeking ways to reduce
business costs. These included simplifying procedures relating
to annual returns to the Companies Registration Office and
the Revenue Commissioners, and progressing work on the
use of electronic returns and electronic signatures. The Group
published its first report in August, and this is available on the
Department’s website
12
.
Having set a national target of 25% for the reduction
of administrative burdens in March 2008, the Department
initiated the cross-government process to measure and
reduce these burdens between now and the target date,
2012. In conjunction with Forfás, training in the measurement
methodology was provided to all Departments. The cross-
Government group was also provided with a framework within
which to vet and prioritise their legislation for measurement.
A project to measure administrative burdens in Company Law,
Employment Law and Health & Safety Law was also put in
place. This will measure the “red tape” cost for business arising
from the three major areas of regulation under the responsibility
of the Department, and will identify ways in which these costs
can be reduced, making the interaction between business and
government more efficient.
Competition Policy
Objective
To promote strong competitive markets across
all sectors of the economy.
Review of Competition Act 2002
During 2008, submissions from a variety of interested parties,
received on foot of a 2007 public consultation process on the
operation and implementation of the Competition Act 2002,
were considered with a view to preparing draft legislation. It
is expected that new legislation will be published during the
course of 2009.
Media Merger Advisory Group
As part of the review process of the Competition Act, early
in 2008, a review was initiated of the legislative provisions
applying to media mergers. This review was aimed at examining
the criteria and arrangements for considering and assessing
how mergers in the media industry might affect the diversity
of views and the concentration of ownership within and across
media businesses.
The Media Merger Advisory Group, established to assist in
this review, reported in June 2008. The Group examined the
Minister’s role in the consideration of the statutory relevant
criteria for assessing media mergers. The Group identified
difficulties in the present system, including concerns in relation
to the role of the Competition Authority, the lack of clarity in
the relevant criteria as currently defined and the absence of
Pillar 5: Better Business Regulation
and the Consumer
12 http://www.entemp.ie/publications/commerce/2008/HLGReport.pdf
38
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
clear statutory mechanisms to enable the Minister protect the
public interest in media plurality. The Group, in its Report, has
suggested a reduced role for the Competition Authority in the
assessment of the plurality aspects of media mergers, redefined
the relevant criteria and also suggested a statutory test to be
applied by the Minister in the discharge of his/her function of
applying the relevant criteria. The Group has also recommended
that concrete indicators of diversity of content and spread of
ownership be developed.
The Group’s recommendations are being considered in the
context of the wider review of competition law and in the
context of possible future legislative changes.
EU White Paper on Damages Actions for Breach
of Article 81 & 82
The Department responded to an invitation from the EU
Commission to make submissions on its White Paper on
Damages Actions for breach of the EC anti-trust rules. The
White Paper contained a number of proposals designed to
tackle obstacles to private enforcement of competition law and
the difficulties involved in bringing damages claims.
An Tánaiste and Minister for Enterprise, Trade and Employment, Mary
Coughlan, T.D., and Meglena Kuneva, EU Consumer Commissioner, discussing
issues relating to consumer affairs.
Consumer Policy
Objective
To promote and protect consumer interests in line
with best international practice.
Cross-border Price Differentials
A particular issue of concern which arose in the course of
2008 was the differential in the price of a range of goods
between this jurisdiction and Northern Ireland and the UK.
These concerns stem from the widespread belief, particularly
amongst consumers, that the benefits of the Euro’s appreciation
in value against Sterling were not being passed on by way of
lower prices in the shops. This perception was substantiated
through a number of Cross-border surveys undertaken by the
National Consumer Agency. One such survey carried out in the
middle of 2008 found that in some instances customers in the
Republic were being charged up to 31% more than customers
in Northern Ireland in respect of certain grocery products.
Arising from these concerns and the impact that the north-
south price differentials were having on employment, business
activity and consumer confidence, an engagement was initiated
with the retail sector to ascertain the reasons why the benefits of
the Euro’s appreciation were not being passed on to consumers.
Different and opposing reasons were proffered by the different
elements of the retail chain on this issue. Prominent among
these reasons was that the cost of doing business in Ireland
was significantly higher than the cost of operating in the UK.
Accordingly, Forfás was requested to carry out an analysis of the
relative cost of doing business in a number of locations in the
Republic, Northern Ireland and the UK. Forfás’ analysis, which
was published late in 2008, found that while the cost of doing
business was indeed higher in this jurisdiction, the extent of this
additional cost would only justify a differential of 5-6% in prices
between the south and the north.
Aside from operating cost considerations, there was
considerable disagreement among the different elements of the
retail chain as to reasons for the north-south price differentials.
On the one hand, retailers strongly contended that the costs
of sourcing goods in Ireland is significantly greater than the
costs of sourcing such goods in Northern Ireland and the UK,
and that the current structure of the wholesale and distribution
cost base in Ireland is preventing the benefits of the Euro’s
appreciation in value from being passed on to consumers.
Suppliers and distributors, on the other hand, contended that
there is a significant imbalance in the relationship between
retailers and suppliers which is giving rise to suppliers being
squeezed by the increasingly difficult demands being made
by retailers. In an attempt to bring greater transparency to
39
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
this area, the Competition Authority was requested to carry
out a study of the retail import/distribution sector as to how
competition is working in the sector and whether any practices
or methods of competition are affecting the supply of goods
and services in that sector.
Merger of the National Consumer Agency
and the Competition Authority
The Minister for Finance, in his Budget statement in October
2008, announced the merger of the National Consumer Agency
and the Competition Authority. The merging of the National
Consumer Agency and the Competition Authority, who both
share the common goal of enhancing consumer welfare, will
help to ensure improved co-ordination in competition and
consumer protection policy areas, and will achieve important
synergies that should ultimately serve both the consumer and
business better.
Since the budget announcement, the Department has been
working in conjunction with both bodies to bring about a
smooth transition to a unified single body to oversee the area
of competition and consumer protection. As both the National
Consumer Agency and the Competition Authority were
established under statute, it will be necessary to give effect to
the decision to merge the bodies by way of primary legislation.
It is expected that the necessary legislation will be published
during the course of 2009.
Sales Law Review Group
In November 2008, the Tánaiste and Minister for Enterprise,
Trade and Employment, Mary Coughlan, T.D., established an
expert group to review the legislation governing the sale of
goods and supply of services. The Review Group is made up
of leading academics, legal practitioners, and representatives
from consumer and business organisations. The current body of
legislation in this area is a mix of pre- and post-Independence
primary legislation as well as secondary legislation deriving from
EU Directives. This legislation provides the statutory framework
for the regulation of business-to-consumer and business-to-
business contracts and is a cornerstone of both Irish consumer
and commercial law. The Review Group will:
review the general sales law provisions of the Sale of •
Goods Acts 1893 and 1980, and make recommendations
for a scheme of legislation capable of providing a statutory
sales law framework appropriate to modern-day conditions
and needs
examine the provisions of the proposed EU Directive •
on Consumer Rights and assess its implications for Irish
consumer rights and law
have a central role to play in the formulation of the Irish •
response to the Directive
consider and make recommendations on other matters •
related to Irish sales law and common law, and the statutory
framework of that law, including dispute resolution
mechanisms in Ireland, and
prepare an analysis and evaluation of the proposed •
Consumer Rights Directive in the first quarter of 2009.
The Review Group is expected to complete its work by mid-
2010.
Legal Metrology Service
The Legal Metrology Service at the National Standards
Authority of Ireland continued to increase its inspectorate
focus by implementation of Section 12 of the Metrology
Act 1996 through the outsourcing of some lower priority
verification work. The concentration of resources on inspections
should ensure high levels of compliance with metrology law
and so increase consumer confidence in the accuracy of trade
measurement and package quantities.
Review of Product Safety Regime
The Department negotiated the adoption of the ‘Goods
Package’ in early 2008. The package, consisting of two
Council Regulations and a Council Decision, has as its
objective the smoothening of the internal market for goods.
The ‘Goods Package’
strengthens and modernises the conditions for placing •
a wide range of industrial products on the EU market
introduces better rules on market surveillance to protect •
both consumers and professionals from unsafe products,
including imports from third countries
enhances the credibility and clarifies the meaning •
of CE marking
13
, and
introduces clearer rules for conformity assessment bodies, •
including the increased use of accreditation – a reinforced
system to ensure that these bodies provide the high
quality services that manufacturers, consumers and public
authorities need.
Work on the implementation of the package will continue
in 2009.
13 CE marking is an attestation of conformity of a product with all applicable requirements of the relevant Community harmonisation legislation providing
for its affixing.
40
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Personal Injuries Assessment Board
(PIAB)
Objective
To monitor and aid the Personal Injuries Assessment
Board (PIAB)
14
in fulfilling its mission.
InjuriesBoard.ie
InjuriesBoard.ie, formerly the Personal Injuries Assessment
Board (PIAB), which was established in April 2004, handled
in excess of 24,000 personal injury claims in 2008 and made
almost 9,000 assessments. The total value of awards made
in 2008 was €217m. Estimated direct savings in 2008, when
compared to the previous litigation system, were almost €50m.
The average timeframe for completing the process, from the
date of respondents consenting to PIAB assessing the claim,
was 7 months, which compares very favourably with the
average of 36 months that it used to take to process such
claims through the Courts: all cases were assessed within the
statutory timeframe of nine months.
The Board continued to operate on a self-funding basis and
derives its main source of income from fees, of €1,050 and
€50, which it charges to respondents and claimants respectively.
During 2008, the Department continued to support the Board
in its mission to ensure that it can continue to deliver these
benefits to consumers and society.
Companies
Objective
To secure the enactment by 2010 of a Companies
Consolidation and Reform Act.
Companies Consolidation and Reform Bill
The General Scheme of the Companies Consolidation and
Reform Bill has been published. Approval has been given by
Government for the drafting of a Companies Consolidation
and Reform Bill.
Drafting of the Bill by the Office of the Parliamentary
Counsel began formally on 1 December 2007. To accelerate
the drafting process, two legal researchers were recruited by
the Department in late 2008 and commenced work in January
2009. In addition, the Attorney General’s Office has assigned
two Parliamentary Counsels within their Office to work on
the project.
It is not possible to give a precise date for completion due to
the size of the Bill (approximately 1260 sections); the earliest
likely date of publication at this point is 2010. It is envisaged
that drafting of Pillar A (this deals exclusively with private
companies limited by shares) will be complete by the end
of June 2009. With regard to Pillar B (this deals with other
corporate forms, such as public limited companies (PLCs)),
this will be completed by the end of December 2009.
Company Law (Financial Services) Unit
Objective
To contribute to the development of a flexible
legislative framework for the corporate vehicles used
by the financial services industry.
Undertakings for the Collective Investment
of Transferable Securities
At the end of July 2008, following an extensive stakeholder
consultation process, the European Commission published its
proposals to update the regime governing Undertakings for
the Collective Investment of Transferable Securities (UCITS).
This draft Directive, known as UCITS IV, will also consolidate
the existing 9 EU Directives dealing with UCITS into a single EU
Directive.
Negotiations on the UCITS IV package commenced at Council
Working Group level in September 2008. A majority consensus
on a compromise text was reached in December 2008 and the
European Parliament voted in favour of the package in January
2009. It is now expected that the draft Directive will be adopted
as an “A” point at ECOFIN (the meeting of EU Economic and
Finance Ministers) and that the Directive, together with other
technical implementing rules currently being negotiated by the
EU Financial Regulators, will have to be transposed into national
law by July 2011.
Consolidation of Irish Funds Legislation
During 2008, the Department continued its consultations with
the funds industry and with the Department of Finance about
how best to consolidate the elements of Irish Funds Legislation
which to date have been sponsored by the Department of
Enterprise, Trade and Employment. This Department has
proposed that responsibility for all such funds legislation should
come under the remit of the Department of Finance as part
of its responsibilities for financial services legislation generally.
Engagement with the Department of Finance is continuing.
14 PIAB now trades as InjuriesBoard.ie
41
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
EU Legislation on Company Law
Objective
To ensure Ireland’s full engagement with the ongoing
EU company law agenda.
EU Company Law
Directive 2005/56/EC of the European Parliament and of the
Council of 26 October 2005 on cross-border mergers of limited
liability companies was transposed with effect from 27 May
2008 (S.I. No. 157 of 2008). This will facilitate cross-border
mergers of commercial companies under favourable conditions
in terms of costs and legal certainty.
Directive 2007/63/EC of the European Parliament and of the
Council of 13 November 2007, amending Council Directives
78/855/EEC and 82/891/EEC as regards the requirements of
an independent expert’s report on the occasion of merger or
division of public limited liability companies, was transposed
with effect from 31 December 2008 (S.I. No. 572 of 2008).
Work progressed during 2008 on implementing Directive
2006/43/EC of the European Parliament and of the Council
of 17 May 2006 on statutory audits of annual accounts
and consolidated accounts. This Directive amends Council
Directives 78/660/EEC and 83/349/EEC and repeals Council
Directive 84/253/EEC. It provides for the reinforcement and
harmonisation of the statutory audit function throughout the
EU and sets out principles for public supervision in all Member
States. The Department aims to transpose the Directive during
2009.
Work progressed during 2008 on implementing Directive
2006/46/EC of the European Parliament and of the Council
of 14 June 2006 on annual accounts of certain types of
companies, on consolidated accounts, on the annual and
consolidated accounts of banks and other financial institutions
and on the annual accounts and consolidated accounts
of insurance undertakings. This Directive amends Council
Directives 78/660/EEC, 83/349/EEC, 86/635/EEC and 91/674/
EEC. The Directive seeks to further enhance confidence in
the financial statements and annual reports published by EU
companies by requiring them to provide more reliable and
complete information to shareholders and other stakeholders.
The Department aims to transpose the Directive during 2009.
Commission Recommendation (2008/362/EC) on external
quality assurance for statutory auditors and audit firms auditing
public interest entities was issued on 6 May 2008 and provides
guidance for implementing independent quality assurance
systems for those auditors and audit firms engaged in the
audits of public interest entities. An initial consultation was
carried out by the Department in July 2008, and was followed
by an extensive written consultation with relevant parties in
March 2009.
Directive on Shareholders Rights – 2007/36/EC
This Directive was adopted on 11 July 2007 and is due for
transposition in the Member States on 3 August 2009. The
Directive introduces minimum standards to ensure that
shareholders of listed companies, whose shares are traded
on a regulated market, have timely access to the relevant
information ahead of the General Meeting and simple means
to vote at a distance. It also introduces minimum standards for
the right to ask questions, put items on the General Meeting
agenda and table resolutions as well as measures to facilitate
the appointment of proxies.
As part of the process for implementing the Directive into
Irish law, the Department consulted with a broad range
of stakeholders on an ongoing basis during 2008.
European Private Company (SPE)
The European Commission published a proposal for a European
Private Company, to be known by its Latin name, Societas
Privata Europaea (SPE), on 27 June 2008. The primary purpose
of the proposal, which takes the form of an EU Regulation, is
to make it easier for European SMEs to conduct cross-border
business by providing them with a European legal form based
on common company law principles and adapted to the specific
needs of SMEs. It is claimed that the possibility of operating in
various Member States according to the same corporate rules
should significantly reduce compliance costs, which arise both
from the creation and operation of companies in other Member
States, thereby enhancing the mobility and competitiveness of
European companies.
Negotiations on the draft proposal, which commenced under
the French Presidency in July 2008, are ongoing at Council
Working Group level.
42
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Friendly Societies and Industrial &
Provident Societies (Co-operatives)
Objective
To review the regulatory frameworks for friendly
societies and industrial and provident societies and
make whatever changes are necessary or desirable in
the lifetime of this Statement of Strategy.
Review of the Friendly Societies Regulatory
Framework
Progress was made on the review of the regulatory framework
for Industrial and Provident Societies (Co-operatives). This
included the preparation of a consultation paper entitled,
Co-operative Societies: Consultation Paper on the Industrial
and Provident Societies Acts 1893-2005
15
, which was published
in April 2009. The Co-operative business model was worth in
excess of €12.6 billion in 2007.
The review of the friendly societies regulatory framework
commenced and progressed during 2008. This included work
on supervisory arrangements for friendly societies that provide
financial services for their members.
15 http://www.entemp.ie//commerce/cooplaw/consultationpaper.htm
43
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
GOAL
TO PROVIDE HIGH-LEVEL PROFESSIONAL SUPPORT,
SERVICE AND ADVICE IN FACILITATING THE
IMPLEMENTATION OF THE DEPARTMENT’S BUSINESS
GOALS, ON A VALUE FOR MONEY BASIS, WHILE
CONTINUING TO BE AT THE FOREFRONT OF THE
MODERNISATION AGENDA ACROSS THE CIVIL AND
PUBLIC SERVICE.
Quality Customer Service
Objective
To deliver the highest quality service to our customers.
Customer Service
All service standards established in our Customer Service
Charter were monitored and achieved in 2008. Work on the
Department’s new Customer Service Action Plan for 2009/2011
and revised Customer Service Charter commenced and is
ongoing.
In 2008, the Quality Customer Service Unit completed its
2007 QCS audit of every Business Unit of the Department.
In addition, an Internal Customer Charter was prepared and
distributed to staff in the first quarter of 2008.
eGovernment
The Department is committed to the ongoing development
of our website as an important conduit of information to all
our customers, including those with disabilities. The website
received a total of 1,476,193 visits in 2008.
The Department is continuing to develop eGovernment facilities
to improve services to our customers. During 2008, the Patents
Office online system was extended to allow customers to pay
registration and grant fees online.
Management Support
Objective
To provide high quality support to the workings/
deliberations of the Department’s Management Board.
Statement of Strategy 2008-2010
In line with our obligations under the Public Service
Management Act 1997, the Department prepared a new
Statement of Strategy to cover the period from 2008 to
2010. The new Strategy was titled “Competitiveness through
Innovation” to highlight the key role of competitiveness and
innovation to the Mission of the Department. Our Strategy
was structured around 6 key pillars aimed at driving Ireland’s
competitiveness and productivity by “creating the conditions
where enterprise, entrepreneurship and innovation can
flourish and quality employment opportunities are grown and
maintained.” A copy of the Strategy, which was laid before the
Oireachtas on 1st May 2008.
Business Planning
As in previous years, the Department prepared detailed Business
Plans at individual Business Unit level at the start of the year.
These detailed Business Plans matched business objectives
of each Division to the high-level goals included in our new
Strategy. The Plans, which were approved by the Department’s
Management Board, assist in assessing progress in achieving the
goals and objectives set out in the Department’s Statement of
Strategy.
Pillar 6: Delivery of Our
Strategic Goals
44
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Financial Management
Objective
To ensure transparency in the use of public funds
allocated to the Department and its Agencies.
Annual Output Statement 2008
The Department published its Annual Output Statement for
2008, detailing the key Programme Areas on which its budget
would be spent, along with high level goals and performance
targets for each of the Programme Areas. The Statement also
outlined the extent to which performance targets for 2007
were met.
The Tánaiste presented the Annual Output Statement to the
Select Committee on Enterprise, Trade and Employment on
10 June 2008, as part of the Committee’s consideration of
the Department’s 2008 Estimate. The Statement is available
on the Publications section of the Department’s website at:
www.entemp.ie.
Objective
To ensure that Departmental expenditure is incurred,
monitored and recorded in accordance with established
public financial procedures and seek improvements
in Value for Money in the administration of the
Department’s affairs.
Value for Money
Expenditure across the Department and its agencies was
closely monitored in 2008 and was reported on regularly to
the Department’s Management Board and to the Tánaiste.
In accordance with the Government’s objective of reducing
public expenditure in response to the changing economic
circumstances in 2008, the Department achieved savings of
over €69 million on its original 2008 allocation of €1.9 billion in
the second half of the year. These savings were realised through
setting revised expenditure targets and closely monitoring
financial performance across the Department and its agencies.
Governance of Agencies
The Liaison Units in the Department continued to monitor
activity by each of the Agencies under the remit of the
Department to ensure that best practice in the areas
of strategic and financial management was maintained.
Agencies are required to comply with the Code of Practice
for the Governance of State Bodies, a review of which took
place in June 2008. Also, on foot of proposals for rationalising
the operations of Government Agencies, the Tánaiste
announced a merger between the National Consumer
Agency and the Competition Authority, which will be
effected as soon as the appropriate legislation is enacted.
Value for Money and Policy Reviews
In March 2008, under the VFM and Policy Review Programme
for 2006-2008, the Department agreed with the Department
of Finance the terms of reference for a VFM of the FÁS
Competency Development Programme. This Review will be
presented to the Oireachtas when finalised. The Department is
required to conduct two further VFM reviews under the 2009-
2011 Programme and details of the agreed reviews will be
featured in future annual reports.
A consultancy report commissioned by the Department in
2007 as part of the Department’s review of the Dangerous
Substances Acts and Regulations as they apply to petroleum
products was finalised by the consultants in July 2008. Public
consultation on the recommendations of the consultants’
Report and on any proposed new regulatory regime, will feature
in 2009, as the review progresses. This Report is published on
the Department’s website – www.entemp.ie.
Objective
To pursue value for money through efficient
purchasing practices.
The Department continues to pursue value for money in its
purchasing practices through compliance with National and
European public procurement legislation and best practice
guidelines issued by both the Department of Finance and the
European Union. Purchasing activities are also in line with
recommendations arising from the Department’s Corporate
Procurement Plan and the Department’s guidelines outlined
in the Department’s publication entitled, Buying Innovation –
10 Step Guide to SMART Procurement and SME Access to
Public Contracts.
Objective
To ensure that appropriate actions are taken by
management throughout the organisation to
identify and manage effectively the risks to which the
organisation may be exposed.
Risk Management
A key strategic process completed at the start of each year
involves managing the risks associated with the range of
activities carried out by the Department. In tandem with
the 2008 Business Planning cycle, each Business Unit in the
45
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Department identified the risks associated with the range of
activities to be undertaken by them throughout the year. These
risks were assessed and appropriate actions aimed at managing
those risks effectively were put in place. The Management
Board reviewed the high level risks for each Division ensuring
that appropriate actions were in place to eliminate, or at least
minimise, the possibility of any of the risks actually occurring
and to limit the attendant impact from unavoidable risks.
Objective
To provide a risk-based internal audit service, which
gives assurance to management on the systems of
control.
Internal Control Systems
The Department’s Internal Audit Unit continues to provide an
assurance to the Accounting Officer on the adequacy of the
internal control systems of the Department and those Offices
directly within the remit of the Department. In this regard, a
programme of activity is drawn up each year, and is reviewed
and monitored by the Departmental Audit Committee.
During 2008, a number of audits were carried out in respect
of the Department’s internal control systems. The programme
of work completed in 2008 enabled the Internal Audit Unit
to provide assurance to the Accounting Officer regarding
signature of the Statement on Internal Financial Control,
which accompanies the annual Appropriation Account.
Internal Audit Unit works to fulfil the Department’s
responsibilities to the European Commission in relation to
EU Structural Funds audit (primarily relating to the ESF). This
necessitates the conduct of audits within the Department and
the co-ordination and assessment of related auditing activity
undertaken across other Departments and organisations in
receipt of Structural Funds from the Department. The Unit
liaises with Structural Funds sections in the Department and
with the EU Commission in relation to matters arising from this
audit activity and in relation to various aspects of EU financial
control requirements.
During 2008, work continued on “Closure” of the 2000-2006
ESF Structural Funds and structures were put in place to meet
audit requirements for the 2007-2013 ESF Structural Funds.
The ESF Financial Control Unit, in accordance with Articles
10.1(b) and 10.2 of EU Commission Regulation (EC) No.
438/2001, conducted a number of audits to fulfil regulatory
requirements.
Human Resources Management (HRM)
and Training
Objective
To ensure that the Department has the necessary
human resources equipped with the skill sets needed
to deliver our business goals; who are effectively
managed and developed through the operation of
the PMDS (Performance Management & Development
System) and the greater devolution of day-to-day HR
matters to line managers; and who are provided with
an environment in which equality of opportunity is
respected and fostered.
Human Resources Strategy 2008-2010
The Human Resources (HR) Strategy 2008-2010 was
approved in late 2008. The new strategy builds on the
measures introduced in the first HR strategy; seeks to further
advance the development of Human Resources Management
as a strategic resource for the Department; and provides a
framework for the development of a number of new HR
policies. These include identifying and using appropriate
workforce planning techniques, enhanced capture of
corporate knowledge, introduction of a mentoring
programme, development of policies on attendance
management, mobility, the management of underperformance;
and providing greater supports for the devolution of day-to-
day HR management to line managers. These policies will be
delivered over the lifetime of the Strategy.
Following publication of the Organisational Review Programme
(ORP) for the Department in late 2008, an Action Plan was
drawn up, specifying measures to address the issues identified,
including those which relate to HR, Training and Development.
See page 48 for more details on the ORP.
A pilot Mentoring Programme was designed and put in place
in 2008. The Programme is intended to assist the career
development of the participants and enhance transfer of
corporate knowledge within the Department.
Equal Opportunities
At the end of 2008, women held 29% of PO (and equivalent)
level posts and 33% of AP (and equivalent) posts
16
in the
Department.
Training and Development
The Department’s first Training and Development Strategy
came to a conclusion in 2008 and work has commenced on a
follow-up strategy. The aim of the first strategy was to ensure
16 Source: internal DETE Staffing statistics
46
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
that all staff have the opportunity to develop the competencies
required to meet their business objectives over the lifetime
of the strategy and beyond, thereby contributing to the
achievement of the Department’s business goals and to further
personal and career development. Having invested significantly
in staff, the successor strategy will seek to maximise the benefit
from this investment, utilising the skills acquired by staff in
formal training and seeking out new ways to facilitate sharing
of internal knowledge and expertise, thus also creating a
greater sense of team spirit.
The formal training needs of staff are identified through the
Performance Management Development System (PMDS) and
are linked to the knowledge, skills and behaviours required for
the current role, the overall business aims of the Department,
but also with a focus on skills development for future roles and
continuous improvement of our service to our customers and
stakeholders. The amount of money spent on training in 2008
was €1.118m, covering 4,750 training days.
Investment in our senior managers was a priority in 2008 and
the Leadership Programme for Assistant Principal and Principal
Officer grades launched by the Department in 2007 continued
throughout 2008, with approximately 170 staff taking part in
modules covering leadership, high level communications and
strategy development and implementation. Evaluation of the
programme overall is now underway.
The Department’s Refund of Fees Scheme continued in 2008,
with 44 staff embarking on third level studies in their own time
with financial assistance from the Department on successful
completion of their studies.
Information & Communications
Technology
Objective
To provide appropriate Information & Communications
Technologies (ICT) that enable our clients to access the
information and services necessary to do their jobs
utilising a secure ICT infrastructure that delivers data
at appropriate levels of confidentiality, integrity and
availability.
Information & Communications Technology
Infrastructure
In line with its commitment to modernise its Information &
Communications Technology (ICT) systems and make them
more accessible, in 2008 the Department upgraded and
enhanced a number of systems, including the Oracle eBusiness
suite (of which Oracle Financials is a component), the Time
Management system, and the Patents Office online payments
system and administration system. The Department’s wide Area
Network links were also upgraded.
The primary Performance Indicator for the ICT Unit is overall
system availability measured against an annual target of 99%
uptime. In 2008, the overall system availability figure was
99.76%.
Through mechanisms such as the ICT Helpdesk, issue escalation,
the ‘Request for Change Process’ and the ICT Users Panel, the ICT
Unit responded efficiently and effectively to its customer needs.
ICT Customer Service
A Customer Satisfaction Survey is conducted annually to allow
customers to provide feedback, which drives customer service
improvements. Results from the 2008 survey show that 95%
of the Department’s staff are satisfied, or more than satisfied,
with the service being provided by the ICT Unit across all service
delivery areas. The target satisfaction rating is 90%. The ICT
Helpdesk Service Level Agreement targets in respect of call
resolution were achieved 99.34% of the time.
Information Security
In 2008, a broad range of initiatives was implemented to
increase information security awareness among staff, including
workshops, newsletters, etc. Work also commenced on the
redrafting of the Department’s Information Security policies
and procedures. A mechanism for encrypting all exchanges of
personal data with third parties was introduced and encrypted
USB memory drives have been made available to officers
who are required to carry sensitive or personal information in
electronic format.
Objective
To ensure access to appropriate ICT skills and resources.
ICT Internal Capacity
The Department continued to build up its internal capacity •
to meet its ICT needs and to maximise the use of its
investment in technology by its staff, although, where
needed and appropriate, the Department availed of
specialist external skills to assist in the support and
development of the Department’s ICT systems. During 2008,
ICT Unit staff attended technology and application-specific
courses, including project management training, to enhance
their skills and the ICT Unit managed the delivery of 602
man-days of ICT training. The allocation of the Department’s
ICT resources, both human and financial, was subject to
business case approval.
47
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Objective
In order to ensure that technology serves the business
needs of each area of the Department and its Offices,
projects will be delivered by ICT Unit in partnership
with business units through improved project
governance arrangements including the adoption of
Project Management as a management methodology.
ICT Project Management
All members of the ICT Unit completed and passed the PRINCE2
Project Management Foundation Examination, and this project
management methodology is now being embedded into the
day-to-day operations of the Unit.
Objective
To maximise Value for Money from existing and future
technology investments.
Value for Money and ICT
ICT Procurement exercises during 2008 were undertaken in
full compliance with national and EU procurement guidelines,
with a view to obtaining the most economically advantageous
market rate for the supply of goods and services. Work on a
review of ICT licenses, which will investigate where/if greater
Value for Money can be achieved in amalgamation and/or re-
distribution of licenses in the Department, began and will be
concluded in 2009.
Objective
To incorporate best environmental practices into our
ICT operations.
ICT and Energy Conservation
During 2008, the ICT Unit used Induction Training Courses,
the ICT Newsletter, e-mail shots and the ICT Users Panel to
draw staff attention to energy conservation in the use of ICT
equipment. This is supported by active engagement with
the Department’s Energy Team to maximise the potential of
technological developments to minimise energy use. Arising
from this, software was purchased and installed on more
than 1,000 PCs, which automatically powers off the device.
In addition, an ICT energy usage model was developed, which
will be updated annually to identify trends in ICT energy usage.
Departmental Working Environment
Objectives
To maintain a healthy and safe working environment for
both our staff and visitors to the Department’s offices.
To manage all our offices in an accessible, energy
efficient manner.
Departmental Working Environment
(Health and Safety)
In 2008, as part of its commitment to fulfilling its obligations
under the Safety, Health and Welfare at Work Act, 2005 and its
Regulations, the Department engaged the services of an outside
‘Competent Person’, to review the current health and safety
policies and practices within the Department and its Offices
in association with the Department’s Health and Safety Unit.
A comprehensive report was produced on each building
occupied by the Department and its Offices outlining a number
of key recommendations on health and safety policy, practices
and training. The Department’s main Health and Safety
Committee is working to implement these recommendations
throughout the Department and its Offices.
Arising from its commitment to best practice in the health
and safety area, the Department installed Automated External
Defibrillators (AEDs) in a number of its buildings and Offices
during 2008. There are currently 31 members of staff trained
in the use of AEDs throughout the Department and its Offices.
The Health and Safety Unit of the Department provided
specific health and safety training in Manual Handling, First
Aid, AED/CPR and Floor Marshall/Fire Warden to the staff
of the Department and its Offices during 2008.
Openness, Transparency & Accountability
Objective
To enhance the management effectiveness and
transparency of our business, including the provision
of high-quality information under Freedom of
Information (FOI) and other instruments, and to
provide effective ongoing communication throughout
the Department.
During 2008, a total of 85 requests were made to the
Department under the Freedom of Information Acts, all
of which were processed within the statutory time limits.
A review was carried out of the systems and procedures
operated within the Department, its Offices and Agencies to
protect the confidentiality of personal data and to prevent its
improper release. Following this, comprehensive new guidelines
were issued to make clear to all staff their obligations and
responsibilities under the Data Protection legislation.
48
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Change & Modernisation
Objective
To promote and support the rolling programme of
Change and Modernisation within the Department
to drive the better delivery of services to our many
stakeholders and to continue to advance all areas of
the modernisation process in a spirit of partnership.
Towards 2016 Performance Verification
In June 2008, the Department submitted its Fourth and Final
Progress Report on implementation of the first Modernisation
Action Plan under the Towards 2016 Partnership Agreement.
The Report noted that, in total, 35 Priority Actions were
achieved during the 27-month lifespan of the Agreement,
with the completion of the remaining 1 Priority Action well
advanced.
Completion of the detailed Progress Report demonstrated that:
there continued to be widespread co-operation with •
flexibility and ongoing change across the Department
the Department encountered no barriers to change, or •
instances where modernisation objectives were delayed,
limited in scope or only partially implemented due to
non-cooperation with flexibility and on-going change, and
full maintenance of stable industrial relations and an absence •
of industrial action within the Department was achieved.
By the end of 2008, and in line with the terms of the
Agreement, the Final Progress Reports in respect of all 9 of the
Department’s Agencies and the 35 County and City Enterprise
Boards covered by the Agreement were completed. As provided
for under the Agreement, the level of compliance by each of
these Agencies and Boards with the modernisation agenda
was assessed within the Department and all were approved.
Pending agreement on a successor pay Agreement under
Towards 2016, the Department and its Agencies are progressing
their longer-term modernisation actions, outside the formalities
of the Towards 2016 structures. Furthermore, other measures
arising from the Organisational Review Programme, the OECD
Review on Ireland and the Building Ireland’s Smart Economy
framework will continue to drive the modernisation agenda into
2009 and these will be reported on in further Annual Reports.
Partnership Committee
The Partnership Committee was particularly active throughout
2008. The committee, which is made up of staff, union and
management representatives, met on five occasions during the
year and their work focussed on responding to feedback raised
by staff during a series of Focus Groups aimed at improving the
Department’s internal processes and procedures under the areas
of communication, sense of team, performance management
and reward systems. Tasks undertaken by the committee and its
subgroups in that period include:
active participation in the preparation and ongoing review •
of progress reports on the Department’s Action Plan under
Towards 2016
formulating an action plan to address issues raised by staff •
in relation to internal processes and procedures
ongoing monitoring of issues which may affect the Health, •
Safety and Welfare of staff in the Department
monitoring the decentralisation of some of the Department’s •
offices to Carlow, and
providing an open forum where staff can raise issues which •
are of concern to them and facilitating the resolution of
these issues in a spirit of participation and co-operation.
Objective
To continually monitor the capacity of the Department
to meet the changing demands in serving our wide
customer base.
Organisational Review Programme
During 2008, the Department participated in the first phase
of an Organisational Review Programme (ORP) that was
launched by the Taoiseach the previous year. The aim of the
Programme is to examine the capability of the Civil and Public
Services to deliver their strategies and policies for stakeholders
in a modern, dynamic, society. Essentially, the ORP is a rolling
programme of capability “health checks” on Departments and
Offices of State.
An Taoiseach, Mr Brian Cowen, T.D., published the ORP Report
on 26 November 2008. The Report addressed three main
themes, viz; Strategy Implementation, Managing Delivery
and Evaluation. In their report on this Department, the ORP
Team found that the Department is well placed to deliver in
the future on the goals set out in its Statement of Strategy
and that our main asset is our staff, who the Team found
displayed strong commitment and a general ‘can do’ attitude.
The Department was found to display particular strengths in its
active engagement with stakeholders and in the area of training
and development of its staff. The ORP Team added, however,
that for the future, the Department would be better placed to
respond to existing and emerging challenges if the Department:
49
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
strengthens its knowledge base to deepen its capacity •
for comprehensive understanding across all policy areas
takes clear ownership of policy positions and agendas and •
projects Ministerial and Government policy in these areas
in line with its role as a key central Department
further develops its policy analysis, evaluation and •
development capacity, especially in relation to proposals
from its Offices and Agencies, and
reviews and implements a strong and consistent policy in •
regard to the governance of its Offices and Agencies with
a view to ensuring greater accountability and performance
management and an enhanced performance dialogue with
all these bodies.
In response to the Report’s findings, an ORP Action Plan,
addressing 7 thematic areas, was devised by the Department
setting out a number of specific strategic actions which the
Department will implement from 2009 onwards. The Action
Plan comprises of a total of 38 individual Action Points and
they are now factored into the annual Business Plans of our
individual business units, with the inclusion of key performance
indicators, as appropriate. An Implementation Group will
oversee implementation of the Plan in 2009 and, in due course,
implementation will be reported on to various Oireachtas
Committees and in future Annual Reports. Full details of the
ORP Report and the Department’s responding Action Plan are
available on the Department’s website (www.entemp.ie) or on
the ORP website (www.orp.ie).
OECD Review
The Reports of the OECD Review of the Irish Public Service
and the Task Force that was subsequently established by An
Taoiseach, Brian Cowen, T.D., to prepare an implementation
plan for the OECD recommendations were both published in
2008. The aim of the OECD Report was to review the whole
of the Public Service and look at how it compares with other
OECD countries, and make recommendations for the future
direction of the Public Service. In that regard, the OECD
examined four key themes, namely:
the capacity of the public service•
performance & budgeting•
governance, and•
service delivery.•
In addition to wide-ranging consultation and meetings with the
public service, the OECD also used case studies in five sectoral
areas – education, health, local government, agencies and An
Garda Síochána – to examine in greater detail how the public
service was performing. The Task Force was subsequently set
up to develop a plan to respond to the OECD’s findings and
recommendation. In response to both Reports, the Department
will work with our colleagues at central level (Departments
of An Taoiseach and Finance) in seeking to deliver on the
recommendations in 2009 and beyond.
Decentralisation
Objective
To relocate Departmental staff and functions to Carlow
within the timeframe set by Government in a manner
which minimises disruption to business continuity and
quality customer service and places people at the heart
of the process.
Departmental Decentralisation
Following the Government decision on the relocation of 250
posts within the Department to Carlow, the Department of
Enterprise, Trade and Employment continued to make progress
in 2008 in implementing its decentralisation programme. The
Department continues to work closely with the Office of Public
Works to procure permanent offices for the Department in
Carlow.
At the end of 2008, the Department had approximately 100
staff in place in a purpose built advance office situated on
O’Brien Road, Carlow. As well as staff already decentralised
to Carlow, a further 94 civil servants had committed to
decentralise to Carlow with this Department.
Data Strategy
Objective
To finalise and monitor implementation of the
Department’s Data Strategy to underpin the statistical
evidence supporting policy decisions.
Data Strategy and Unique Business Identifier
Work on the Data Strategy resumed late in the year with a
revised draft strategy prepared for consideration. Work on this
Strategy has continued into 2009, as has work on examining
the feasibility of developing a unique business identifier and
associated central business register. These initiatives are aimed
at making the collection of business-level data, essential to
properly informing policy options across Government, more
efficient and stakeholder-friendly.
51
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Appendix 1: Estimate (or Budget of the Department for 2008 including provisional outturn for 2007)
Appendix 2: Report on Compliance with the Provisions of the Prompt Payment of Accounts Act
Appendix 3: Report on Regulatory Impact Analysis (RIAs) carried out by the Department in 2008
Appendix 4: Legislation Enacted in 2008
Appendix 5: Statutory Instruments made during 2008
Appendix 6: Labour Market Data
Appendix 7: Offices and Bodies of the Department
Appendices
52
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
ENTERPRISE, TRADE AND EMPLOYMENT
I. Estimate of the amount required in the year ending 31 December 2008 for the salaries and expenses of the Office of the
Minister for Enterprise, Trade and Employment, including certain services administered by that Office, for the payment
of certain subsidies, grants and a grant-in-aid, and for the payment of certain grants under cash-limited schemes.
(a) by way of current year provision
One thousand, four hundred and ninety-two million,
nine hundred and seventeen thousand euro
(€1,492,917,000)
(b) by way of the application for capital supply services of unspent appropriations, the surrender of which may be
deferred under Section 91 of the Finance Act 2004.
Twenty-three million, four hundred and twenty-eight thousand euro
(€23,428,000)
II. Subheads under which this Vote will be accounted for by the Office of the Minister for Enterprise, Trade and Employment.
2007 Provisional Outturn 2008 Estimate Change
2008
over
2007
%
Current
€000
Capital
€000
Total
€000
Current
€000
Capital
€000
Total
€000
ADMINISTRATION
A.1 SALARIES, WAGES AND ALLOWANCES… 33,149 – 33,149 36,364 – 36,364 10%
A.2 TRAVEL AND SUBSISTENCE… 1,297 – 1,297 1,689 – 1,689 30%
A.3 INCIDENTAL EXPENSES… 1,278 – 1,278 1,581 – 1,581 24%
A.4 POSTAL AND TELECOMMUNICATIONS
SERVICES…
884 – 884 927 – 927 5%
A.5 OFFICE MACHINERY AND OTHER OFFICE
SUPPLIES AND RELATED SERVICES…
4,750 – 4,750 5,267 – 5,267 11%
A.6 OFFICE PREMISES EXPENSES… 1,690 – 1,690 1,580 – 1,580 -7%
A.7 CONSULTANCY SERVICES… 189 – 189 439 – 439 132%
A.8 ADVERTISING AND PUBLICITY… 374 – 374 515 – 515 38%
A.9 OFFICE OF THE DIRECTOR OF CORPORATE
ENFORCEMENT…
4,385 – 4,385 4,957 – 4,957 13%
A.10 LABOUR COURT… 2,704 – 2,704 3,193 – 3,193 18%
A.11 NATIONAL EMPLOYMENT RIGHTS AUTHORITY… 6,957 – 6,957 10,817 – 10,817 55%
A.12 VALUE FOR MONEY AND POLICY REVIEWS… 129 – 129 224 – 224 74%
Subtotal:* 57,786 – 57,786 67,553 – 67,553 17%
Appendix 1: Estimate (or Budget of
the Department for 2008 including
provisional outturn for 2007)
53
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
2007 Provisional Outturn 2008 Estimate Change
2008
over
2007
%
Current
€000
Capital
€000
Total
€000
Current
€000
Capital
€000
Total
€000
ENTERPRISE, AGENCIES, SCIENCE AND TECHNOLOGY
B.1 FORFÁS – GRANT FOR ADMINISTRATION
AND GENERAL EXPENSES…
32,657 – 32,657 37,835 – 37,835 16%
B.2 INTERTRADE IRELAND… 2,646 6,832 9,478 2,968 7,714 10,682 13%
C.1 IDA IRELAND – GRANT FOR ADMINISTRATION
AND GENERAL EXPENSES…
42,223 – 42,223 45,230 – 45,230 7%
C.2 IDA IRELAND – GRANTS TO INDUSTRY… – 79,000 79,000 – 95,120 95,120 20%
C.3 IDA IRELAND – GRANT FOR BUILDING
OPERATIONS…
– 3,400 3,400 – 3,400 3,400 –
D.1 ENTERPRISE IRELAND – GRANT FOR
ADMINISTRATION AND GENERAL EXPENSES…
99,858 – 99,858 101,661 – 101,661 2%
D.2 ENTERPRISE IRELAND – GRANT TO INDUSTRY… 7,037 37,400 44,437 7,970 48,800 56,770 28%
D.3 ENTERPRISE IRELAND – GRANT FOR CAPITAL
EXPENDITURE…
– 3,400 3,400 – 3,400 3,400 –
E.1 SHANNON FREE AIRPORT DEVELOPMENT
COMPANY LIMITED – GRANT FOR
ADMINISTRATION AND GENERAL EXPENSES…
– – – 102 – 102 –
E.2 SHANNON FREE AIRPORT DEVELOPMENT
COMPANY LIMITED – GRANTS TO INDUSTRY…
– 892 892 – 3,000 3,000 236%
F. SCIENCE, TECHNOLOGY AND INNOVATION
PROGRAMMES…
24,920 258,028 282,948 27,680 298,878 326,558 15%
G. COUNTY ENTERPRISE DEVELOPMENT… 14,091 16,578 30,669 13,963 18,022 31,985 4%
H. MONITORING AND EVALUATION
OF EU PROGRAMMES…
18 – 18 130 – 130 –
I. NATIONAL STANDARDS AUTHORITY OF
IRELAND – GRANT FOR ADMINISTRATION
AND GENERAL EXPENSES…
6,977 291 7,268 8,237 550 8,787 21%
Subtotal: 230,427 405,821 636,248 245,776 478,884 724,660 14%
* Includes carryforward of savings of €2,580,000 from 2007 under the terms of the Administrative Budget Agreement.
LABOUR FORCE DEVELOPMENT
K.1 FÁS ADMINISTRATION AND GENERAL
EXPENSES (a)…
147,595 – 147,595 152,254 – 152,254 3%
K.2 FÁS TRAINING AND INTEGRATION SUPPORTS… 93,592 – 93,592 99,985 – 99,985 7%
K.3 FÁS EMPLOYMENT PROGRAMMES… 415,228 – 415,228 439,550 – 439,550 6%
K.4 FÁS CAPITAL… – 32,945 32,945 – 16,000 16,000 -51%
L. GRANT TO IRISH NATIONAL ORGANISATION
FOR THE UNEMPLOYED (b)…
51 – 51 52 – 52 2%
M.1 TECHNICAL SUPPORT FOR COMMUNITY
INITIATIVES…
598 – 598 500 – 500 -16%
M.2 MATCHING FUNDING FOR COMMUNITY
INITIATIVES…
33 – 33 102 – 102 209%
M.3 OPERATIONAL PROGRAMME FOR HUMAN
RESOURCES DEVELOPMENT – TECHNICAL
ASSISTANCE…
436 – 436 846 – 846 94%
M.4 LEONARDO PROGRAMME… 128 – 128 140 – 140 9%
M.5 EQUAL COMMUNITY INITIATIVE DEVELOPMENT
PARTNERSHIPS…
5,628 – 5,628 2,500 – 2,500 -56%
Subtotal: 663,289 32,945 696,234 695,929 16,000 711,929 2%
54
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
2007 Provisional Outturn 2008 Estimate Change
2008
over
2007
%
Current
€000
Capital
€000
Total
€000
Current
€000
Capital
€000
Total
€000
EMPLOYMENT RIGHTS AND INDUSTRIAL RELATIONS
N. LABOUR RELATIONS COMMISSION – GRANT
FOR ADMINISTRATION AND GENERAL
EXPENSES…
4,971 – 4,971 6,600 – 6,600 33%
O.1 GRANTS FOR TRADE UNION EDUCATION
AND ADVISORY SERVICES (b)…
1,876 – 1,876 1,510 – 1,510 -20%
O.2 WORK PLACE INNOVATION FUND PROMOTION
OF PARTNERSHIP…
156 – 156 2,750 – 2,750 –
P. TRADE UNION AMALGAMATIONS… 43 – 43 150 – 150 249%
Subtotal: 7,046 – 7,046 11,010 – 11,010 56%
COMMERCE, CONSUMERS AND COMPETITION
Q. GRANT TO THE COMPETITION AUTHORITY… 6,102 – 6,102 6,776 – 6,776 11%
R.1 NATIONAL CONSUMER AGENCY – GRANT
FOR ADMINISTRATION AND GENERAL
EXPENSES (c)…
7,088 – 7,088 10,000 – 10,000 41%
R.2 CONSUMER SUPPORT… 66 – 66 68 – 68 3%
S.1 COMPANIES REGISTRATION OFFICE AND
REGISTRY OF FRIENDLY SOCIETIES – GRANT FOR
ADMINISTRATION AND GENERAL EXPENSES…
9,545 – 9,545 10,091 – 10,091 6%
S.2 IRISH AUDITING AND ACCOUNTING
SUPERVISORY AUTHORITY (GRANT-IN-AID)…
956 – 956 1,547 – 1,547 62%
Subtotal: 23,757 – 23,757 28,482 – 28,482 20%
(a) Some FÁS instructors costs and the costs of FÁS Skills Analysis Unit are funded by the National Training Fund.
(b) Cash limited subhead.
(c) On 1 May 2007, the Office of the Director of Consumer Affairs and the National Consumer Agency Interim Board, previously funded from this subhead,
were amalgamated into the National Consumer Agency.
2007 Provisional Outturn 2008 Estimate Change
2008
over
2007
%
Current
€000
Capital
€000
Total
€000
Current
€000
Capital
€000
Total
€000
HEALTH AND SAFETY
T. HEALTH AND SAFETY AUTHORITY – GRANT FOR
ADMINISTRATION AND GENERAL EXPENSES…
22,512 – 22,512 24,440 – 24,440 9%
Subtotal: 22,512 – 22,512 24,440 – 24,440 9%
55
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
2007 Provisional Outturn 2008 Estimate Change
2008
over
2007
%
Current
€000
Capital
€000
Total
€000
Current
€000
Capital
€000
Total
€000
OTHER SERVICES
U. RESEARCH INCLUDING MANPOWER SURVEYS… 173 – 173 369 – 369 113%
V. NATIONAL FRAMEWORK COMMITTEE
FOR WORK/LIFE BALANCE POLICIES…
219 – 219 350 – 350 60%
W. SUBSCRIPTIONS TO INTERNATIONAL
ORGANISATIONS, ETC.…
15,400 – 15,400 16,239 – 16,239 5%
X.1 COMMISSIONS, COMMITTEES AND SPECIAL
INQUIRIES…
785 – 785 904 – 904 15%
X.2 MISCELLANEOUS PAYMENTS… 1,326 – 1,326 1,667 – 1,667 26%
X.3 SUPERANNUATION AND PENSIONS FOR
MEMBERS OF THE LABOUR COURT, THE
RESTRICTIVE PRACTICES COMMISSION AND
THE COMPETITION AUTHORITY…
495 – 495 693 – 693 40%
X.4 EXPORT CREDIT INSURANCE – REFUND
TO THE EXCHEQUER…
476 – 476 60 – 60 -87%
Subtotal: 18,874 – 18,874 20,282 – 20,282 7%
Gross Total: 1,023,691 438,766 1,462,457 1,093,472 494,884 1,588,356 9%
Deduct:
Y. APPROPRIATIONS-IN-AID… 128,411 – 128,411 95,439 – 95,439 -26%
Net Total: 895,280 438,766 1,334,046 998,033 494,884 1,492,917 12%
Net Increase (€000) 158,871
Exchequer pay and pensions included in above
net total…
321,046 346,317 8%
Associated Public Service employees and
pensioners…
6,196 6,435 4%
Subheads under which it is intended to apply the amount of €23.428 million in unspent 2007 appropriations to capital supply services.
2007 Provisional Outturn 2008 Estimate Change
2008
over
2007
%
Application of Deferred Surrender
€000 €000
B.2 INTERTRADEIRELAND – 1,200 –
D.3 ENTERPRISE IRELAND – GRANT FOR CAPITAL EXPENDITURE – 2,000 –
F. SCIENCE, TECHNOLOGY AND INNOVATION PROGRAMMES 8,992 4,226 -53%
G. COUNTY ENTERPRISE DEVELOPMENT 4,450 3,000 -33%
I. NATIONAL STANDARDS AUTHORITY OF IRELAND –
GRANT FOR ADMINISTRATION AND GENERAL EXPENSES
880 450 -49%
K.4 FÁS CAPITAL 2,000 12,552 528%
16,322 23,428 44%
56
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Estimate of Income and Expenditure of the National Training Fund
2007 Provisional Outturn 2008 Estimate Change 2008
over 2007
%
Current
€000
Current
€000
Insurance and Company Law:
Income from contributions… 408,000 436,000 7%
Income from investments… 4,485 4,600 3%
ESF Receipts… 20,815 – –
Total Income: 433,300 440,600 2%
Expenditure:
FÁS – Training people in employment (a) (b)… 151,589 172,821 14%
FÁS – Training people for employment… 194,937 198,816 2%
FÁS – Skills Analysis Unit… 369 383 4%
FÁS – Workplace Education Fund… 3,046 3,110 2%
Training Networks Programme (Skillnets)…(b) 13,500 26,472 96%
IDA Ireland – Training Grants to Industry… 1,034 2,500 142%
Enterprise Ireland – Training Grants to Industry… 3,160 3,000 -5%
SFADCo. – Training Grants to Industry… – 255 –
Continuing Professional Development Pilot (IEI)… 405 450 11%
Expert Group on Future Skills Needs (Forfás)… 522 640 23%
Technical Support Unit (In Company Training)… 562 707 26%
New ESF funded Training Schemes… 24,206 – –
Other Training Supports.… 1,259 753 -40%
Total Expenditure: 394,589 409,907 4%
Excess of Income over Expenditure… 38,711 30,693 –
Amount of Fund Surplus as at 31 December 2007
(Estimated)
123,000
Amount of Fund Surplus as at 31 December 2007 (Latest
projection)
161,825
Amount of Fund Surplus as at 31 December 2008
(Projected)
192,518
(a) Expenditure under the National Training Fund is allocated to organisations that operate schemes to raise the skills of those in employment or to provide
training to those who wish to acquire skills for the purpose of taking up employment, or to provide information in relation to existing, or likely future,
requirements for skills in the economy. The NTF allocation to FÁS supplements activities funded by Exchequer subheads K1-K3.
(b) The allocations for FÁS and Skillnets for 2008 incorporate elements of activity previously funded under ESF Funded Training Programmes.
57
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
During 2008, 43 invoices incurred penalty interest of
€2,405.33. The breakdown of this amount is as follows:
18 invoices where payment was up to 30 days overdue, •
resulting in interest of €654.42.
7 invoices where payment was between 31 and 60 days •
overdue, resulting in interest of €193.33.
18 invoices where payment was more than 60 days •
overdue, resulting in interest of €1,557.57
In accordance with S.I. No. 388, interest is only paid when
the amount due is over €5.
The corresponding figure for 2007 was 81 late payments,
attracting prompt payment interest of €5,019.46.
Appendix 2: Report on Compliance
with the Provisions of the Prompt
Payment of Accounts Act
58
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
1. Screening Regulatory Impact Analysis of the
Chemicals Act 2008
The screening Regulatory Impact Assessment in respect of
the Chemicals Act 2008 was carried out and reported in the
Department’s Annual Report for 2007. The Regulatory Impact
Analysis of the Chemicals Act is published on the Department’s
website – www.entemp.ie.
2. Screening Regulatory Impact Analysis
Safety, Health and Welfare at Work (Quarries)
Regulations 2008
The screening Regulatory Impact Analysis of the Safety, Health
and Welfare at Work (Quarries) Regulations and associated
Safety, Health and Welfare at Work Act 2005 Quarries (Repeals
and Revocations) (Commencement) Order 2008 is published on
the Department’s website – www.entemp.ie.
3. Screening Regulatory Impact Analysis (RIA)
on the Safety, Health and Welfare at Work
(Construction) (Amendment No 2) Regulations
2008
The screening Regulatory Impact Analysis (RIA) on the Safety,
Health and Welfare at Work (Construction) (Amendment No 2)
Regulations 2008 is regarded as an Addendum to the screening
Regulatory Impact Analysis (RIA) on the Safety, Health and
Welfare at Work (Construction) Regulations 2006 (S.I. No.
504 of 2006). Both these screening RIAs are published on the
Department’s website – www.entemp.ie.
4. Screening Regulatory Impact Analysis for
Industrial Relations (Amendment) Bill 2008
A Screening Regulatory Impact analysis was carried out in
2008 on the Industrial Relations (Amendment) Bill 2008. The
objective of the proposed legislation is to amend the existing
Industrial Relations Acts to provide for the continued effective
operation of the Joint Labour Committee and Registered
Employment Agreement systems. A Copy of the RIA is available
from the Department’s Industrial Relations Section.
5. Screening RIA on the Proposal for a Directive
of the European Parliament and of the Council
on Machinery for Pesticide Application, amending
Directive 2006/42/EC on Machinery
Date Commenced 18 September 2008
Date Completed 24 November 2008
No substantive issues arose during the consultation process.
Consequently a full RIA was not required. A copy of the
screening RIA can be obtained from the Department’s NSAI
Liaison and Standards Unit.
6. Screening RIA on the Proposal for a Directive
of the European Parliament and of the Council
on the Safety of Toys
Date Commenced 20 February 2008
Date Completed 30 March 2008
The purpose of this Directive is to enhance the level of safety of
toys while maintaining and improving the smooth functioning
of the Internal Market. As the benefits to this Directive are
essentially positive with no significant negative impacts a full
RIA was not required. All key stakeholders were consulted
during the screening RIA process.
A copy of the screening RIA can be obtained from the
Department’s NSAI Liaison and Standards Unit.
Appendix 3: Report on Regulatory
Impact Analysis (RIAs) carried out by
the Department in 2008
59
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Control of Exports Act 2008
(No. 1 of 2008)
The Control of Exports Act 2008 was enacted in February 2008.
Among the main features of the Act is the introduction of
licensing arrangements for controls on arms brokering and on
technical assistance activities such as repair, maintenance and
development and on the transfer of technology by electronic
means. The Act also provides for substantially increased fines
of up to €10 million and enhanced inspection and audit powers
for authorised officers.
Chemicals Act 2008 (No. 13 of 2008)
The Chemicals Act 2008, enacted in July 2008, is aimed at
providing a clear regulatory framework for business in order to
achieve high levels of compliance with certain EU Chemicals
Regulations, the best known of which is “REACH” (Registration,
Evaluation, Authorisation and Restriction of Chemicals). It is also
aimed at ensuring co-operation between the various national
authorities responsible for enforcement, in order to minimise
enforcement costs to both business and national authorities.
The Chemicals Act is published on the Department’s website –
www.entemp.ie.
Appendix 4: Legislation Enacted
in 2008
60
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
S.I. No. 28 of 2008
Safety, Health and Welfare at Work (Quarries)
Regulations 2008
The purpose of these Regulations is to set out requirements
with respect to safety, health and welfare in quarries and
replace a range of provisions formerly applied in the Mines
and Quarries Act, 1965 and in various Regulations made
under that Act.
S.I. No. 29 of 2008
Safety, Health and Welfare at Work (Quarries)
(Repeals and Revocations) (Commencement)
Order 2008
The purpose of this Order is to activate the repeal of the
Mines and Quarries Act, 1965 (No. 7 of 1965) in so far as
that Act relates to quarries (including Sections 23 to 29, 91 to
97 and 133(2) and (3)) and to revoke all Regulations, Orders
and Rules made under that Act as they relate to quarries.
S.I. No. 33 of 2008
European Communities (Restrictive Measures)
(Democratic Republic of Congo) (Amendment)
Regulations 2008
To amend the S.I. that gives effect to Council Regulation (EC)
No. 889/2005 which provided for penalties for infringements of
the Regulation. The amendment, which gives effect to Council
Regulation (EC) No. 1377/2007, sets out the exceptions whereby
authorisations can be granted for the provision of financing,
financial and technical assistance relating to military activities
in respect of the Democratic Republic of Congo.
S.I. No. 83 of 2008
European Communities (Restrictive Measures)
(Democratic People’s Republic of Korea)
(Amendment) Regulations 2008
To amend the S.I. that gives effect to Council Regulation (EC)
No. 329/2007 which provided for penalties for infringements
of the Regulation. The amendment, which gives effect to
Commission Regulation (EC) No. 117/2008, amends the Council
Regulation by replacing Annexes I and II. The Council Regulation
introduced a ban on the export of goods and technology and
the provision of technical assistance and finance concerning
North Korea’s nuclear-related, weapons of mass destruction-
related and ballistic missile-related programmes. It also prohibited
the export of luxury goods to, and the procurement of goods
and technology from, North Korea.
S.I. No. 126 of 2008
Control of Exports Act 2008 (Commencement)
Order 2008
The purpose of this Order is to provide for the entry into force
in full of the Control of Exports Act 2008, as provided for under
Section 12 of the Act.
S.I. No. 127 of 2008
European Communities (Names and Labelling
of Textile Products), (Amendment)
Regulations 2008 transposed the provisions of EU Directive
2007/3/EC and amends the European Communities (Names
and Labelling of Textile Products) Regulations 1998 (S.I. No. 245
of 1998) by adding a new textile called “elastolefin”. This order
came into effect on 30 April 2008.
Appendix 5: Statutory Instruments
made during 2008
61
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
S.I. No. 128 of 2008
European Communities (Quantitative Analysis
of Binary Textile Fibre Mixtures) (Amendment)
Regulations 2008
Transposed the provisions of EU Directive 2007/4/EC and is a
companion of the European Communities (Names and Labelling
of Textile Products) (Amendment) Regulations 2008 (S.I. No.
127 of 2008) and adds the analytical method for testing the
textile called “elastolefin”. This order came into effect on 30
April 2008.
S.I. No. 130 of 2008
Safety, Health and Welfare at Work
(Construction) (Amendment) Regulations 2008
The purpose of these Regulations is to amend the Safety,
Health and Welfare at Work (Construction) Regulations 2006
(S.I. No. 504 of 2006) as regards the operational date for
Regulations 19(1)(b), 25(1)(b), 29(1)(g), 74(e) and 97(b) and (c),
which is changed from 6 May 2008 to 6 July 2009, in respect of
the possession of a Construction Skills Registration Card under
the Construction Skills Certification Scheme, as it applies to the
following tasks:
(i) Mobile tower scaffold (where the employee has
not been trained in basic or advanced scaffolding),
(ii) Signing, lighting and guarding on roads,
(iii) Locating under-ground services, and
(iv) Shotfiring.
S.I. No. 132 of 2008
Industrial Relations Act 1990 (Code of Practice
on Information and Consultation) (Declaration)
Order 2008
The purpose of this Code of Practice is to assist employers,
employees and their representatives to develop effective
arrangements for communications and consultation in
accordance with the provisions of the Employees
(Provision of Information and Consultation) Act, 2006.
S.I. No. 269 of 2008
European Communities (Export and Import
of Certain Dangerous Chemicals) (Industrial
Chemicals) (Enforcement) (Revocation)
Regulations 2008
The purpose of these Regulations is to revoke the European
Communities (Export and Import of Certain Dangerous
Chemicals) (Industrial Chemicals) (Enforcement) Regulations
2002 (S.I. No. 395 of 2002), as the Chemicals Act 2008 now
provides the necessary legal basis for enforcement.
S.I. No. 270 of 2008
European Communities (Detergents) (Revocation)
Regulations 2008
The purpose of these Regulations is to revoke the European
Communities (Detergents) Regulations 2005 (S.I. No. 844 of
2005), as the Chemicals Act 2008 now provides the necessary
legal basis for enforcement
S.I. No. 271 of 2008
European Communities (Classification, Packaging
and Labelling of Dangerous Preparations)
(Amendment) Regulations 2008
The purpose of these Regulations is to make a small number
of technical amendments to the European Communities
(Classification, Packaging and Labelling of Dangerous
Preparations) Regulations 2004 (S.I. No. 62 of 2004) as
amended by the European Communities (Classification,
Packaging and Labelling of Dangerous Preparations)
(Amendment) Regulations 2007 (S.I. No. 76 of 2007). The
matters covered by the revoked provisions are now provided
for directly in the REACH Regulation (EC) No. 1907/2006.
S.I. No. 272 of 2008
European Communities (Classification,
Packaging, Labelling and Notification of
Dangerous Substances)(Amendment) Regulations
2008
The purpose of these Regulations is to transpose Directive
2006/121/EC of the European Parliament and of the Council
of 18 December 2006. In so doing, they amend the European
Communities (Classification, Packaging, Labelling and
Notification of Dangerous Substances) Regulations 2003
(S.I. No. 116 of 2003) as last amended by the European
Communities (Classification, Packaging, Labelling and
Notification of Dangerous Substances) (Amendment)
Regulations 2006 (S.I. No. 25 of 2006).
62
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
S.I. No. 273 of 2008
Chemicals Act 2008 (Commencement) Order 2008
This Order appointed 15 July 2008 as the day on which the
Chemicals Act 2008 (No. 13 of 2008) came into operation.
S.I. No. 296 of 2008
Legal Metrology (Marks) Regulations 2008
The purpose of these Regulations is to replace and update
existing regulations relating to the official marks to be applied
to measuring instruments prescribed for use for the purposes
of trade.
S.I No. 309 of 2008
European Communities (Measuring Instruments)
Regulations 2008
The purpose of these Regulations is to give effect to Council
Directive 2006/96/EC and Commission Directive 2007/13/EC
and to give further effect to Council Directive 71/316/EEC,
relating to common provisions for both measuring instruments
and methods of metrological control.
S.I. No. 316 of 2008
European Communities (Cooperation between
National Authorities Responsible for the
Enforcement of Consumer Protection Laws)
(Amendment) Regulations 2008
Amends S.I. No. 290 of 2006 on Cooperation between
National Authorities responsible for the Enforcement of
Consumer laws which implemented Regulation (EC) 2006/2004
of the European Parliament and of the Council of 27 October
2004 by designating competent authorities to carry out
the functions of information exchange, cooperation and
infringement proceedings in respect of specified EU consumer
Directives/Regulations. The amended regulations provide for
the designation of the National Consumer Agency as the
competent authority for the Unfair Commercial Practices
Directive (Directive 2005/29/EC) and the Irish Medicines Board
for the Directive on the Community code relating to medicinal
products for human use (Directive 2001/83/EC, as amended).
The Order came into effect from the 1st August 2008.
S.I No. 323 of 2008
Legal Metrology (General) Regulations 2008
The purpose of these Regulations is to replace and update
existing Regulations relating to national conformity assessment
procedures and in-service inspection controls applied to
measuring instruments prescribed for use for the purposes
of trade.
S.I. No. 371 of 2008
European Communities (Dangerous Substances
and Preparations) (Marketing and Use)
(Amendment) Regulations 2008
The purpose of these Regulations which came into operation
on 3 April 2009 is to amend Schedule 1 to the European
Communities (Dangerous Substances and Preparations)
(Marketing and Use) Regulations, 2003 (S.I. No. 220 of 2003),
as last amended by the European Communities (Dangerous
Substances and Preparations) (Marketing and Use) (Amendment)
Regulations 2007 (S.I. No. 746 of 2007) and also to transpose
Directive 2007/51/EC of the European Parliament and of the
Council of 25 September 2007 amending Council Directive
76/769/EEC relating to restrictions on the marketing
of certain measuring devices containing mercury.
S.I No. 406 of 2008
European Communities (Lifts) (Amendment)
Regulations 2008
The Regulations come into effect on 29 December 2009 and
implement Article 24 of Directive 2006/42/EC of the European
Parliament and of the Council of 17 May 2006 on machinery
and amending Directive 95/16/EC of 29 June 1995.
These Regulations amend the European Communities (Lifts)
Regulations 1998
S.I No. 407 of 2008
European Communities (Machinery)
Regulations 2008
The Regulations come into effect on 29 December 2009
and implement Article 24 of Directive 2006/42/EC of the
European Parliament and of the Council of 17 May 2006 on
machinery and amending Directive 95/16/EC of 29 June 1995.
In the case of portable cartridge operated fixing and other
impact machinery that are in conformity with existing provisions
in force at 17 May 2006 the Regulations come into effect on
29 June 2011.
Article 24 of this Directive is implemented separately through
the European Communities (Lifts) (Amendment) Regulations
2008.
These Regulations provide for the continued harmonisation
of the essential health and safety requirements on machinery
across the European Union while also promoting the free
movement of machinery within the single market.
63
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
S.I. No. 423 of 2008
Safety, Health and Welfare at Work (Construction)
(Amendment) (No.2) Regulations 2008
The purpose of these Regulations is to amend the Safety,
Health and Welfare at Work (Construction) Regulations 2006
(S.I. No. 504 of 2006), as previously amended by the Safety,
Health and Welfare at Work (Construction) (Amendment)
Regulations 2008 (S.I. No. 130 of 2008), by substituting revised
provisions for Regulation 97, relating to guarding, lighting
and signage in connection with construction works on roads,
footpaths and cycle tracks.
S.I. No. 481 of 2008
European Communities (Restrictive Measures)
(Iran) (Amendment) Regulations 2008
The effect of this Order is to amend the Statutory Instrument
that provided for penalties for infringements of Council
Regulation (EC) No. 423/2007 of 19 April 2007. The
Council Regulation introduced on the export of goods and
technology which could contribute to Iran’s enrichment-
related, reprocessing, or heavy water-related activities, or to
the development of nuclear weapon delivery systems and
investment related to, and the procurement of, such goods
and technology from Iran. The amendments, which give effect
to Commission Regulation (EC) No. 116/2008, replace Annexes
I and III of the Council Regulation.
S.I No. 530 of 2008
Industrial Development (Enterprise Ireland) Act
1998 (Section 50) Commencement Order 2008
This Order provides for the commencement of Section 50
of the Industrial Development (Enterprise Ireland) Act 1998.
S. I. No. 566 of 2008
European Communities (Prepacked Products)
Regulations, 2008
Transposed Directive 2007/45/EC of the European Parliament
and of the Council of 5 September 2007 laying down rules on
nominal quantities for prepacked products, repealing Council
Directives 75/106/EEC and 80/232/EEC, and amending Council
Directive 76/211/EEC. The Directive deregulated mandatory
range of sizes for certain products. From the 11th April 2009
the only mandated range of sizes within the community are
in respect of certain wines and spirits.
S. I. No. 567 of 2008
Merchandise Marks Act 1970 (Prepacked Goods)
(Marking and Quantities) (Revocation) Order,
2008
Revoked all the domestic and relevant EU legislation relating to
mandatory ranges of sizes for products. This was necessitated
by the transposition of Directive 2007/45/EC above.
S.I No. 578 of 2008
European Communities (Electro-Medical
Equipment Used in Human or Veterinary
Medicine) (Revocation) Regulations 2008
The purpose of these Regulations is to give effect to Council
Directive 2008/13/EC dated 11 March 2008 and revoke the
European Communities (Electro-Medical Equipment used in
Human or Veterinary Medicine) Regulations 1988 (S.I. No. 90
of 1988).
S.I. No. 593 of 2008
Dangerous Substances (Retail and Private
Petroleum Stores) (Amendment) Regulations
2008
The purpose of these Regulations is to extend until 31 December
2010 the possibility for certain petrol filling stations to operate
under licence by providing for safety requirements in certain
circumstances for those petrol filling stations, constructed
before the 1979 Regulations commenced.
1 Central Statistics Office, Quarterly National Accounts, Quarter 4 2008
2 All labour market data Central Statistics Office Quarterly National Household Survey Quarter 4 2008 unless indicated
64
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Economic Growth
The outlook for the economy has changed substantially. We
are now experiencing negative economic growth, with Gross
Domestic Product (GDP) decreasing by 7.5% and Gross National
Product (GNP) by 6.7% in the fourth Quarter of 2008 when
compared with the fourth Quarter of 2007
1
.
Labour Force
2
As of Quarter 4 2008, the labour force (employed +
unemployed persons) stood at 2,222,700, representing an
annual decrease of 17,200 (-0.8%). All of the annual decline
is attributable to a decline in participation in the labour market
of over 34,000. This is shown by the fall in the participation
rate, from 63.9% in Q4 2007 to 62.8% in Q4 2008. In addition
to changes in participation, demographic factors such as
the increase in the number of people of working age in the
population has fallen from a level of almost 63,000 in Q4 2007
to just under 17,000 in Q4 2008. In recent years demographic
growth has primarily been driven by net inward migration and
the significant slowdown in net inward migration is the primary
cause of the fall in the demographic increase.
Employment
Employment decreased significantly in 2008 with the numbers
employed falling by 86,900, (-4.1%) in the year to Q4 2008.
This decrease brought the total number in employment to
2,052,000. The overall employment rate (among persons
aged 15-64) fell by -3.2% to 65.8%. Full-time employment
accounted for 81% of overall employment with 1,660,500
persons now working on a full-time basis. Part-time
employment continued to increase slightly by (+7,000) in
2008 with 391,500 persons working part-time. On an annual
basis, the number of female and male workers in employment
decreased by -2.0% and -5.7% respectively.
The numbers in employment decreased in most economic
sectors apart from the sectors of education (+6,300), health
(+3,500), other services (+3,100), transport, storage and
communication (900), and public administration (600). The
largest decline in employment was recorded in the construction
sector where the numbers employed fell by 45,900 (-16.5%)
over the year. The numbers employed also decreased across
most occupational categories with the exception of managers
and administrators (+13,600), professionals (+10,900) and
associate professional and technical (+2,800) occupational
groups. The largest decrease was in the craft and related
(-38,600) occupation group.
Employment by Nationality
Employment of non-Irish nationals accounted for just over
15% of total employment in Q4 2008. Non-Irish national
employment decreased by -18,700 (-6%) in the year with
89.8% of the decrease (-16,800) attributable to persons from
the accession States (EU15 to EU27). The numbers of non-Irish
nationals in employment decreased in most economic sectors
with the largest decreases recorded in Construction, Hotels
and Restaurants, Wholesale and retail trade. The sectors with
the highest proportion of non-Irish national employment were
Hotels and Restaurants (34%), Other Production Industries
(19%), Wholesale and retail trade (17%), Construction (16%)
and Financial and other business services (16%).
Unemployment
There were 170,600 persons unemployed (117,800 males
and 52,900 females) in Quarter 4 of 2008. The unemployment
rate increased by 3.2% to 7.7% in the year, with the rate for
males increasing by 4.3% to 9.3%, while the rate for females
increased by 1.6% to 5.5%. There were 40,500 persons long-
term unemployed, with the long-term unemployment rate
increasing slightly to 1.8%.
Appendix 6: Labour Market Data
3 Department of Finance: Stability Programme Update-January 2009
65
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Regional Comparisons
In the year to Q4 2008 employment fell by 36,100(-6.5%) in
the Border Midlands and Western (BMW) region and by 50,800
(-3.2%) in the Southern and Eastern (S&E) region. There was
an increase in the numbers unemployed in the S&E (+44,900)
and BMW regions (+24,800). Employment declined in all sub-
regions, with the Midland and Border regions showing the
largest decrease of -8.5% and -6.4% respectively.
Labour Market Outlook
The deterioration in international economic conditions has had
a significant impact on the Irish labour market. The Department
of Finance
3
forecasts an average GDP and GNP decline of 4%
and 4.5% respectively over 2009 with unemployment forecast
to continue to rise in 2009 and to average 9.2% for the year
as a whole, with a year-end figure of around 10%. A modest
decline in the size of the labour force is projected which will
mitigate the rise in survey-based unemployment.
A lower level of residential investment was a key factor
depressing activity last year – completion of new homes
amounted to around 50,000, around one-third lower than
in the previous year. The labour market implications of this
adjustment have been substantial, and lower employment in
construction was the main factor behind the annual decline
in employment during 2008.
In terms of labour market developments in 2009, job losses
will exceed gains with the result that employment levels will
contract by around 4% (85,000). In terms of next year (2010),
a further decline in net employment appears to be in prospect
so that overall employment looks set to decline by over 120,000
over the two-year period. Notwithstanding this the level of
employment in the economy will be close to two million, as
a result of the substantial employment gains since the mid-
1990’s. It must be recognised however that there remains a
considerable level of uncertainty attached to any attempt to
forecast in light of the current economic circumstances.
66
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Table 1: Labour Market Data 2003-2008
Total (000’s) 2003 2004 2005 2006 2007 2008
Labour force 1,912.7 1,982.1 2,078.1 2,162.4 2,239.9 2,222.7
Employed 1,827.1 1,896.4 1,985.7 2,072.1 2,138.9 2,052.0
Full time 1,522.3 1,580.1 1,645.2 1,724.1 1,754.4 1,660.5
Part time 304.7 316.3 340.6 348.0 384.5 391.5
Unemployed 85.7 85.8 92.3 90.3 101.0 170.6
Long Term Unemployed 26.3 28.8 27.6 27.1 27.7 40.5
Males (000’s) 2003 2004 2005 2006 2007 2008
Labour force 1,114.9 1,149.9 1,202.9 1,248.2 1,277.7 1,263.1
Employed 1,061.6 1,096.9 1,148.0 1,193.1 1,214.1 1,145.3
Full time 995.0 1,031.7 1,072.9 1,116.9 1,128.7 1,052.1
Part time 66.6 65.2 75.1 76.2 85.4 93.2
Unemployed 53.3 53.0 54.9 55.1 63.6 117.8
Long Term Unemployed 19.6 21.3 20.7 19.9 20.6 31.4
Females (000’s) 2003 2004 2005 2006 2007 2008
Labour force 797.8 832.3 875.1 914.2 962.3 959.6
Employed 765.5 799.5 837.7 879.0 924.8 906.7
Full time 527.3 548.3 572.3 607.2 625.7 608.4
Part time 238.1 251.1 265.5 271.8 299.1 298.3
Unemployed 32.4 32.8 37.4 35.2 37.5 52.9
Long Term Unemployed 6.7 7.5 7.0 7.1 7.1 9.1
Rate (%) 2003 2004 2005 2006 2007 2008
Employment 65.6% 66.6% 67.8% 68.8% 69.0% 65.8%
Female Employment 55.7% 57.1% 58.3% 59.6% 60.8% 59.0%
Older Workers Employment 49.2% 50.0% 52.2% 53.0% 53.9% 52.8%
Unemployment 4.5% 4.3% 4.4% 4.2% 4.5% 7.7%
Long-term unemployment 1.4% 1.5% 1.3% 1.3% 1.2% 1.8%
67
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Table 2: Employment Growth (000’s) by sector 2003-2008
Economic Sector (NACE Rev.1) 2003 2004 2005 2006 2007 2008 %
Change
2007-
2008
%
Change
2003-
2008
Agriculture, forestry and fishing 123.0 112.4 114.9 114.7 118.7 116 -2.3% -5.7%
Other production industries 297.7 302.6 290.9 294.9 290.7 278.3 -4.3% -6.5%
Construction 199.4 227.3 254.3 284.6 279.0 233.1 -16.5% +16.9%
Wholesale and retail trade 254.9 264.7 284.0 287.8 311.6 293.4 -5.8% +15.1%
Hotels and restaurants 117.9 116.0 119.9 124.0 132.3 121.8 -7.9% +3.3%
Transport, storage and communication 113.9 115.7 118.1 116.8 120.8 121.7 +0.7% +6.8%
Financial and other business services 230.5 246.8 261.9 276.2 297.1 285.5 -3.9% +23.9%
Public administration and defence 89.5 93.1 99.1 102.5 105.0 105.6 +0.6% +18%
Education 118.2 118.3 127.3 138.1 139.1 145.4 +4.5% +23%
Health 176.8 183.2 192.7 210.7 221.3 224.8 +1.6% +27.1%
Other services 105.3 116.3 122.5 121.8 123.3 126.4 +2.5% +20%
Total persons 1,827.1 1,896.4 1,985.7 2,072.1 2,138.9 2,052.0 -4.1% +12.3%
Table 3: Share of total employment by economic sector 2003-2008
Economic Sector (NACE Rev.1) 2003 2008
Agriculture, forestry and fishing 6.7% 5.7%
Other production industries 16.3% 13.6%
Construction 10.9% 11.4%
Wholesale and retail trade 14% 14.3%
Hotels and restaurants 6.5% 5.9%
Transport, storage and communication 6.2% 5.9%
Financial and other business services 12.6% 13.9%
Public administration and defence 4.9% 5.1%
Education 6.5% 7.1%
Health 9.7% 11.0%
Other services 5.8% 6.2%
Table 4: Days Lost to Industrial Disputes in 2008
Quarter Disputes
which began
Disputes in progress Total days
lost in 2008
Number of
Disputes
Number of
firms involved
Workers
involved
Quarter 1 4 4 4 173 1,477
Quarter 2 4 5 5 132 727
Quarter 3 2 3 3 34 578
Quarter 4 2 4 4 99 1,397
Total 12 12 10 356 4,179
Source: CSO
68
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Actual Redundancies 2007 and 2008 by month
0
1000
2000
3000
4000
5000
6000
2007 2008
Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
2007 2,777 1,587 2,214 2,155 1,942 2,046 2,287 2,319 1,859 2,174 2,380 1,719 25,459
2008 2,764 2,838 2,311 3,114 2,462 2,914 3,852 3,147 3,971 4,623 5,261 3,350 40,607
% Diff. -0.5% 78.8% 4.4% 44.5% 26.8% 42.4% 68.4% 35.7% 113.6% 112.6% 121.1% 94.9% 59.5%
Cumulative Comparison 2007 vs. 2008
0
10000
20000
30000
40000
50000
2007 2008
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2777 4364 6578 8733 10675 12721 15008 17327 19186 21360 23740 25459
2764 5602 7913 11027 13489 16403 20255 23402 27373 31996 37257 40607
-0.5% 28.4% 20.3% 26.3% 26.4% 28.9% 35.0% 35.1% 42.7% 49.8% 56.9% 59.5%
69
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Companies Registration Office
Parnell House, 14 Parnell Square, Dublin 1
Telephone: 01-804 5200
Lo-call: 1890-220226
Fax: 01-804 5222
Website: www.cro.ie
Email: [email protected]
The Companies Registration Office is the central depository
of public statutory information on Irish companies. Its main
functions include the incorporation of companies; the
registration of business names, of charges on companies, of
other post-incorporation documents and of changes in business
name particulars. The office has an extensive enforcement
programme in respect of the filing of returns.
Competition Authority
Parnell House, 14 Parnell Square, Dublin 1
Telephone: 01-804 5400
Lo-call: 1890 220 224
Fax: 01 804 5401
Website: www.tca.ie
E-mail: [email protected]
The function of the Competition Authority is to promote
greater competition in all sectors of the economy by tackling
anti-competitive practices and by increasing awareness of such
practices. As of 1st January, 2003, the Authority assumed
responsibility for examining and deciding upon mergers and
acquisitions notified under the Competition Act, 2002.
County And City Enterprise Boards
The 35 County and City Enterprise Boards (CEBs) were
established to provide support for small businesses (‘micro-
enterprises’) with 10 employees or less, at local level.
CEBs provide direct grant-support to new and existing
enterprises and promote entrepreneurship, capacity-building
and women-in-business at local level, to micro enterprises
in the commercial sphere. A list of the 35 CEBs is available
at www.enterpriseboards.ie.
Department of Enterprise, Trade and
Employment
23 Kildare Street, Dublin 2
Telephone: 01-631 2121
Lo-call: 1890-220 222
Fax: 01-631 2827
Website: www.entemp.ie
E-mail: [email protected]
Earlsfort Centre, Lower Hatch Street, Dublin 2
Telephone: 01-631 2121
Lo-call: 1890-220 222
Fax: 01-631 2827
Website: www.entemp.ie
E-mail: [email protected]
Davitt House, 65a Adelaide Road, Dublin 2
Telephone: 01-631 2121
Lo-call: 1890-220 222
Fax: 01-631 3267
Website: www.entemp.ie
E-mail: [email protected]
Enterprise Ireland
The Plaza, EastPoint Business Park, Dublin 3
Telephone: 01-727 2000
Website: www.enterprise-ireland.com
E-mail: [email protected]
Enterprise Ireland is the government agency responsible
for the development and promotion of the indigenous
business sector. Its mission is to accelerate the development
of world-class Irish companies to achieve strong positions in
global markets resulting in increased national and regional
prosperity. Enterprise Ireland brings together the key marketing,
technology, enterprise development, business training
and science and innovation initiatives through which the
Government supports the growth of Irish industry.
Appendix 7: Offices and Bodies
of the Department
70
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Employment Appeals Tribunal
Davitt House, 65A Adelaide Road, Dublin 2
Telephone: 01-631 2121
Lo-call: 1890 220 222
Fax: 01-631 3266
Website: www.eatribunal.ie
E-mail: [email protected]
The Employment Appeals Tribunal is an independent body
established to provide a speedy, inexpensive and relatively
informal means for adjudication of disputes on employment
rights under the various legislations that come within the
Tribunal’s scope. It is our goal that customers using the service
will be satisfied overall with the service they have received
from the Tribunal.
FÁS
27-33 Upper Baggot Street, Dublin 4
Telephone: 01-607 0500
Fax: 01-607 0608
Website: www.fas.ie
As the National Training and Employment Authority,
FÁS anticipates the needs of, and responds to, a constantly
changing labour market. Through a regional network of
66 offices and 20 training centres, FÁS operates training
and employment programmes; provides a recruitment service
to jobseekers and employers, an advisory service for industry,
and supports community-based enterprises.
Forfás
Wilton Park House, Wilton Place, Dublin 2
Telephone: 01-607 3000
Fax: 01-607 3030
Website: www.forfas.ie
E-mail: [email protected]
Forfás is the national policy and advisory body for enterprise,
trade, science, technology and innovation.
Health And Safety Authority
Metropolitan Building, James Joyce Street, Dublin 1
Telephone: 01-614 7000
Lo-call: 1890-289 389
Fax: 01-614 7020
Website: www.hsa.ie
Email: [email protected]
The Health and Safety Authority has responsibility for the
administration and enforcement of the occupational, safety
and health and the chemicals regulatory framework provided
for in the Chemicals Act 2008 and certain other legislation.
It provides information, advice and guidance for employers,
workers, the self-employed and others to whom occupational
safety and health legislation applies or is of relevance.
IDA Ireland
Wilton Park House, Wilton Place, Dublin 2
Telephone: 01-603 4000
Website: www.idaireland.com
E-mail: [email protected]
IDA Ireland is responsible for the attraction to and development
of overseas industry within Ireland.
InjuriesBoard.ie
P.O. BOX 8, Clonakilty, Co. Cork
Telephone: 1890-829 121
Fax: 1890-829 122
Website: www.injuriesboard.ie
E-mail: [email protected]
The Personal Injuries Assessment Board, or InjuriesBoard.ie,
is a statutory body that provides independent assessment of
personal injury compensation for victims of Workplace, Motor
and Public Liability accidents. This assessment is provided
without the need for the majority of current litigation costs,
such as Solicitors, Barristers and Experts’ fees, associated with
such claims. In exceptional cases legal/expert fees may apply
and InjuriesBoard.ie examines each case on its own merits.
InterTradeIreland
The Old Gasworks Business Park, Kilmorey Street, Newry,
Co. Down, BT34 2DE
Telephone: 048-3083 4100
Fax: 048-3083 4155
Website: www.intertradeireland.com
Email: [email protected]
InterTradeIreland is the Trade and Business Development Body
established under the British-Irish Agreement Act, 1999. It is
one of six North/South Implementation Bodies arising from the
Good Friday Agreement of 1998. InterTradeIreland’s mission for
the period 2008-2010 is to enhance the global competitiveness
of both jurisdictions for mutual benefit, through cooperative
business, policy and research programmes, partnerships and
networks. InterTradeIreland is co-funded by the Department
of Enterprise, Trade and Employment and the Department of
Enterprise, Trade and Investment in the North on a two-thirds,
one-third basis respectively.
71
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Irish Auditing and Accounting Supervisory
Authority
Willow House, Millennium Park, Naas, Co. Kildare
Telephone: 045-983 600
Fax: 045-983 601
Website: www.iaasa.ie
E-mail: [email protected]
The Irish Auditing and Accounting Supervisory Authority has
four principal objectives; to supervise how the prescribed
accountancy bodies regulate and monitor their members;
to promote adherence to high professional standards in the
auditing and accountancy profession; to monitor whether
the accounts of certain classes of companies and other
undertakings comply with the Companies Acts; and to act
as a specialist source of advice to the Minister on auditing
and accounting matters.
Labour Court
Tom Johnson House, Haddington Rd, Dublin 4
Telephone: 01-613 6666
Lo-call: 1890-220 228
Fax: 01-613 6667
Website: www.labourcourt.ie
E-mail: [email protected]
The Labour Court was established under the Industrial
Relations Act 1946. It provides a free, comprehensive service
for the investigation and resolution of disputes in the areas
of industrial relations and statutory employment rights. In
addition, the Court makes Employment Regulation Orders
setting legally enforceable minimum rates of pay and conditions
of employment in those sectors covered by Joint Labour
Committees. The Court also registers employment agreements:
the effect of registration is to make the provisions of an
agreement legally enforceable.
Labour Relations Commission
Tom Johnson House, Haddington Road, Dublin 4
Telephone: 01-613 6700
Lo-call: 1890-220 227
Fax: 01-613 6701
Website: www.lrc.ie
E-mail: [email protected]
The Labour Relations Commission, established under the
Industrial Relations Act 1990, has overall responsibility for
promoting the improvement of industrial relations, and does
so by providing a range of services including a Conciliation
Service, a Rights Commissioner Service and an Advisory
Services Division.
National Consumer Agency
4 Harcourt Road, Dublin 2
Telephone: 01-402 5555
Press Queries: 01-475 1444
Consumer Helpline Lo-call: 1890-432 432
Corporate Queries: 01-402 5500
Fax: 01-402 5501
Consumer Website: www.consumerconnect.ie
Corporate Website: www.nca.ie
The aim of the National Consumer Agency is to defend
consumer interests and to embed a robust consumer culture in
Ireland. Its mandate includes advocacy, research, information,
enforcement, education and awareness. The Agency enforces
a wide range of consumer protection laws, including laws on
deceptive trading practices (these include unfair, misleading
and aggressive commercial practices), consumer credit, package
travel, unfair contract terms, timeshare, food labelling, textile
labelling, unit pricing and price displays.
National Employment Rights Authority
O’Brien Road, Carlow
Telephone: 059-917 8800
Lo-call: 1890 808 090
Fax: 059-917 8912
Website: www.employmentrights.ie
The role of the National Employment Rights Authority (NERA)
is to foster and enforce a national culture of employment
rights compliance in the State. NERA undertakes a range of
functions, including the provision of impartial information
to employers and employees, an inspection function, and a
prosecution and enforcement service. Its primary objective is to
work with employers to seek compliance with the legislation
and rectification of any breaches identified, including redress
for individual(s) concerned and payment of any arrears due to
employees.
National Standards Authority Of Ireland
1 Swift Square, Santry, Dublin 9
Telephone: 01-807 3800
Fax: 01-807 3838
Website: www.nsai.ie
E-mail: [email protected]
The primary functions of the National Standards Authority
of Ireland are the development and publication of standards,
the provision of a comprehensive product and management
system certification service, Agrément certification of building
and civil engineering products and Legal Metrology for the
establishment of confidence in trade measurements. The NSAI,
through the National Metrology Laboratory, develops and
disseminates national measurement standards in accordance
with the International System of Units.
72
DEPARTMENT OF ENTERPRISE, TRADE AND EMPLOYMENT
Office Of The Director Of Corporate
Enforcement
16 Parnell Square, Dublin 1
Telephone: 01-858 5800
Lo-call: 1890-315 015
Fax: 01-858 5801
Website: www.odce.ie
E-mail: [email protected]
The mission of the Office of the Director of Corporate
Enforcement is to improve the compliance environment for
corporate activity in the Irish economy. The functions of the
Director of Corporate Enforcement include encouraging
compliance with the Companies Acts, investigating suspected
offences under the Acts and initiating civil and summary
criminal proceedings in the Courts. The Director has a general
supervisory role in respect of liquidators and receivers.
Office Of The Registrar Of Friendly Societies
Parnell House, 14 Parnell Square, Dublin 1
Telephone: 01-804 5499
Lo-call: 1890-220 225
Fax: 01-804 5498
The Office of the Registrar of Friendly Societies is a statutory
independent office responsible for the registration and general
regulation of friendly societies, trade unions and industrial and
provident societies (co-operatives).
Patents Office
Government Buildings, Hebron Road, Kilkenny
Telephone: 056-772 0111
Lo-call: 1890-220 223
Fax: 056-772 0100
Lo-call Fax: 1890-220 120
Website: www.patentsoffice.ie
E-mail: [email protected]
The Patents Office is responsible for the grant of patents for
inventions and for the registration of trademarks and designs.
The Controller also has functions in relations to the adjudication
of certain copyright disputes.
Rights Commissioner Service
Tom Johnson House, Haddington Road
Telephone: 01-613 6700
Lo-call: 1890-220 227
Fax (01) 613 6701
Website: www.lrc.ie
Email: [email protected]
The Rights Commissioner Service is a service of the Labour
Relations Commission. The Service investigates disputes,
grievances and claims that individuals, or small groups
of workers make under certain legislation.
Science Foundation Ireland
Wilton Park House, Wilton Place, Dublin 2
Telephone: 01-607 3200
Fax: 01-607 3201
Website: www.sfi.ie
Email: info-at-sfi.ie
Science Foundation Ireland (SFI) provides awards to scientists
and engineers who are most likely to generate new knowledge,
leading edge technologies and competitive enterprises in
the fields of science and engineering in the broad areas of
Biotechnology, Information and communications technology,
and Sustainable energy and energy-efficient technologies SFI
also makes grants based upon the merit review of distinguished
scientists.
Shannon Development
Town Centre, Shannon, Co. Clare
Telephone: 061-361 555
Fax: 061-361 903
Website: www.shannon-dev.ie
E-mail: info@shannon-dev.ie
Shannon Development is a Government-owned regional
development company dedicated to promoting and developing
the Shannon Region of Ireland. Its business is regional economic
development – a complex process embracing all sectors of
activity and utilising multiple processes to achieve the vision
of a world-class region. Shannon Development concentrates
its efforts on delivering results in four key areas that can have
significant economic impact locally, regionally and nationally,
i.e., strategic or “Flagship” Projects, Shannon Free Zone,
Tourism Development and Property Development.
Kildare Street, Dublin 2
Telephone: 01 631 2121 Fax: 01 631 2827
Lo-call Telephone service for outside 01 area: 1890 220 222
Website: www.entemp.ie E-mail: [email protected]