John Perry (Sligo-North Leitrim, Fine Gael)
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Question 158: To ask the Minister for Enterprise, Trade and Innovation, in the context of the Government's recent announcement that it is to provide an additional €3 million to 34 city and county enterprise boards in order to generate 450 jobs, if he will indicate the person who will determine the amount allocated to each board; the number of applications for financial assistance each board has at present; if all the funding is to be used for grant assistance to companies or if part of it will be used for staff salaries and other running costs; the number of companies that received grant assistance over the past three years that are still in business; the number of enterprise board companies that have grown sufficiently to graduate to Enterprise Ireland; and if he will make a statement on the matter. [45684/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The Capital Allocation for the CEBs in 2010 is almost €15m. I have recently secured an additional Capital allocation of €3.3m for the CEBs, which brings their total 2010 Capital allocation to €18.294m. This allocation represents a strong State investment in the micro-enterprise sector notwithstanding the significant pressure on Public finances. CEBs are prioritising and managing all available funding in a targeted manner in order to maximise entrepreneurial development at local level.

Prior to the distribution of this additional money, all CEBs were asked by the CEB Central Coordination Unit based in Enterprise Ireland, to indicate what amount of extra capital they could utilise before year end this year and the amount of job numbers they would associate with this extra funding. They provided gross figures based on their expectation of what projects and activities could be advanced this year. Identifying and approving projects, having the relevant project promoters progress their business plans and meet the agreed eligibility criteria in order to drawdown the funding, and physically paying out these additional grants within the financial year, all represented considerable challenges for the individual CEBs. The additional €3.3m was then distributed in accordance with the responses received from individual CEBs.

I would stress that not all CEBs would have pipeline projects capable of drawing down funding before end-2010 and as a result not all CEBs sought additional funding from the €3.3m available. It should also be noted that all CEB administrative costs are met from their Current Allocation and not their Capital Allocation. Capital funding is utilised by the CEBs to directly support the micro-enterprise sector in the form of both grants to eligible micro-enterprises and through the provision of training and mentoring programmes.

There is in existence a significant level of co-operation and complementarity between EI and the network of CEBs. EI is responsible for supporting the development of Irish companies with ambitions to grow in world markets. Many of its client companies are small to medium in size. The focus of the CEBs is to develop the micro-enterprise sector and to promote entrepreneurship at local level and to assist individual businesses achieve growth in order to transfer to the EI portfolio where appropriate.

In 2009, the most recent year for which annual CEB statistics are available, 1,120 eligible micro-enterprise projects were approved for assistance and 945 drew-down grants. I would expect a similar performance in 2010. I am advised that in 2009 21 CEB clients transferred to EI, whilst more than 100 potential entrepreneurs transferred to CEBs after completing EI development programmes. To date in 2010, 7 CEB clients have transferred to EI.

As my Department has no direct role in the assessment or approval of grant applications, I do not have final information on the number of applications for financial assistance that each Board has at present. Within the timescale, the CEBs have been able to provide a partial response indicating that at least 217 applications are currently on hand relating to the €3.3m additional Capital allocation, and of the companies that have received grant assistance over the past 3 years (2007-2010) at least 2,050 are still in business. I have asked for the remainder of the information to be compiled by the CEBs Central Coordination Unit within Enterprise Ireland, and sent directly to the Deputy.