Oireachtas Joint and Select Committees

Tuesday, 23 October 2012

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Micro-Enterprise and Small Business Unit: Discussion with EI, ISME and SFA

2:50 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael) | Oireachtas source

I congratulate Mr. Hayes on that because he does not always get the credit to which he is entitled. Mr. Hayes must also be complimented on the net gain in jobs. I recall having the same discussion during the boom times with a different set of people from Enterprise Ireland. Even at that time, it was seen as a success to have a net gain because there were many losses in certain sectors during the boom time. It is a major credit to be still winning and have a net gain at the end of the day, rather than a net loss. Mr. Hayes should keep up the good work on that.

While concern has been expressed about the proposed new LEOs, there is also an opportunity here. We all have such concerns because there is a perception among many business people about how local government works. While that perception may be right in some cases, it is not always correct. For example, some local authorities have improved a lot through their economic development units. There is perhaps a chance to merge talents and develop this further. I look on this as an opportunity to get it right, but it is important that we do get it right. Although the people in enterprise boards have done an excellent job, it is important to retain the excellent staff involved. It is not a major panic that they are moving to work under a new name, provided that we keep them and their skills. Enterprise boards have done well by being driven by the people working in them. Some enterprise boards have not done well because the people in them did not do so. In the majority of cases, however, good people drove them. I am confident that we will still have them working under a new heading and under the direction of Enterprise Ireland. which is the key. There is a fear that this will be directed to the local authorities but it is quite clear to me that the LEOs will be directed by Enterprise Ireland and the Department of Jobs, Enterprise and Innovation. We have to keep that business drive and that message needs to get out. There should be an opportunity here to address the concerns that people have with their perception of county councils.

It usually relates to planning and enforcement matters and charges, albeit contribution levies more so than rates. New businesses must be given a chance before forking out large amounts of money on contribution levies. That obligation is unfair and blocks business. I hope that the local enterprise offices, LEOs, will act as one-stop-shops, champion the issues affecting businesses and provide solutions when problems with local authorities arise. Since the LEOs will be in the local authorities, there should be a greater opportunity to resolve planning issues at an early stage.

Many new businesses start in backyards, kitchens and garages. They should not be hit by planning enforcement straight away. We must work on this matter. In 2008 or 2009, moves were afoot in the Department of Enterprise, Trade and Employment to address it, but the environment changed. LEOs have a chance to address the matter and work with everyone involved. I hope that our guests take my point on board.

The presentation referred to how the LEOs will expand the range of services. Perhaps Mr. Murphy will inform the committee of what the one-stop shops' new services will be. I served on an enterprise board. Such boards were restricted in their work by a limited set of criteria. They could either work with manufacturing businesses or not work at all. I hope that the new LEOs will be able to work with any business that has the potential to export or to create jobs locally. There has always been a spatial issue, but every member present has seen opportunities to create jobs lost too often because that year's pot of money was gone or the businesses in question did not fit into a specific box. A one-stop shop will ensure that no one with an idea is left adrift.

Our guests mentioned that there will be guidelines on financial allocations to each county. If a county's money runs out, I hope that access to the central pot will remain. There is nothing worse than being told in October that there will be no money to save or develop jobs until six months time. That is not good enough in the current environment. I hope that this will not occur after Enterprise Ireland becomes further involved in these units, particularly if there is money going unspent in other counties. It is not good enough that jobs will be lost because of a lack of common sense.

A question mark remains over the role of Leader partnerships. Perhaps our guests will address this issue in terms of supporting enterprise at the local level. As there is often a crossover, clear direction as to who does what, and how, is necessary.

We are discussing start-ups and developing businesses. Many people with new concepts or inventions are struggling to access finance to develop them. The LEOs could have a role in this regard. A person who does not want to start a business but who has an idea or invention is finding it difficult in the current climate to develop his or her work. The responses from State bodies have not been good to date, as we are focusing on business development and job creation. We must remember products and new ideas, particularly those of backyard inventors.

Exporting associations have concerns about export credit insurance. When the committee raised this issue one and a half years ago, it was told that it was not a problem. However, it remains a problem and we need to focus on it. Enterprise Ireland might be better placed than most to address it, either today or at another time. It is important that we get this matter right.

We hope that the LEOs will have a can-do approach instead of telling people to go somewhere else for help. Anyone who walks through an LEO's door should be given a chance to develop his or her business idea. I will stop asking questions. It is key that LEOs work with local authorities to develop solutions instead of creating problems. Sometimes, business people are concerned about walking through a local authority's door. Often, this is merely a perception and we must do away with it.

Deputy Collins touched on my final point, namely, failure rates. Enterprise boards are too cautious. Enterprise Ireland can be the same, that is, results oriented and concerned with high success rates. I become depressed when I see high success rates, as there should be failure rates if we are doing our jobs right. If we are too cautious, we will miss out on potential job creation. I grow nervous when people claim that they have great success rates. We need to judge them on failure rates as well.

Deputies Tóibín, Collins and Calleary will ask additional questions. Our guests can address my comments while answering those. As Deputy Lyons has not contributed yet, we will start with him. I did not see him waving.

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