In this week’s Public Policy Bulletin, read about the recently released economy overview presentation produced by the Parliamentary Budget Office in the Oireachtas, comments from IBEC and ICTU on the Right to Request Remote Working Bill, and €11 million funding announced for Skillnet Ireland to support small and medium businesses. We also cover the announcement of the eighth Assured Skills Academy in Northern Ireland.
Irish and European Economy trends presented by the Parliamentary Budget Office (PBO) in the Oireachtas
A new data visualisation, produced by the PBO, was released this week. This provides an analysis of recent trends in the Irish and European economy, including issues such as inflation, the labour market, savings, bond yields and financial markets.
The Irish economy’s GDP of 9.51 percent was the highest average growth rate of all EU countries during the pandemic. Employment in Ireland has already returned to pre-pandemic levels, approximately five times faster than it took following the financial crisis. Gross Value Added by foreign-owned multinational enterprises (MNEs) overtook domestic enterprises during the pandemic, increasing Ireland’s dependence on foreign MNEs.
Inflation increases continue to cause concern, with above average inflation being reported in most commodity groups. Exceptions to this are education and health, which both have experienced deflation. Ireland is the second most expensive country in the EU, with its price level indices 40 percent above the EU average.
In 2020, Russia provided nearly 40 percent of the EU’s natural gas requirements, over 20 percent of their oil and petroleum needs and nearly half of the solid fossil fuels. As the war on Ukraine continues, higher energy prices are expected across the EU. Ireland will be particularly impacted by this, with 71 percent of its energy requirements imported in 2020.
Public debt, a global phenomenon, is now eight times what it was in 1995, now surpassing €246 billion. This will increase Ireland’s exposure to higher interest rates and reduces the scope for Ireland to handle future shocks.
IBEC and ICTU express their views on Right to Request Remote Working Bill
Both IBEC and ICTU brought their views to the Joint Oireachtas Committee on Enterprise, Trade and Employment in relation to the Right to Request Remote Working Bill.
IBEC referred to the tight labour market and remarked that the “tables have turned a little bit, and it’s not all about what the employer’s want” but is concerned that the Bill adds additional administrative burdens for employers. IBEC noted that significant moves to remote working are being seen, where its practical and sensible, and questions the need for any legislation.
ICTU expressed disappointment in the level of consultation in the development of the Bill, indicating that the Bill in the current form is not fit for purpose, with it too easy for a request to be refused and not enough of a penalty for those who do not follow the legislation. IBEC also asked for Government to “make it meaningful” and calls for more engagement to develop the Bill.
€11 million supports announced by Minister Harris
The funding is intended to support business recovery and will address several priority areas including digitalisation, innovation, sustainability and leadership development. Paul Healy, Chief Executive of Skillnet Ireland, states that the funding will “help SMEs plan for success in key areas”.
This funding has been provided under the EU Brexit Adjustment Reserve and will be available to all SMEs nationwide. Businesses are encouraged to join a network relevant to their sector and region to avail of these supports.
Eighth Assured Skills Academy announced
This week, Northern Ireland’s Economy Minister Gordon Lyons announced the eighth Assured Skills Academy with Alchemy Technology Services. This will be funded by the Department for the Economy and will be delivered by North West Regional College.
The 20 chosen participants will be enrolled in a five-week pre-employment training programme, with an opportunity to become a Technical Analyst on conclusion.
All three programs are still open to application. More information can be found on the NI Direct website.
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