Mr. Andy Harkness:

In respect of Enterprise Ireland's financial statement for 2011, which is the subject of today's discussion, I will outline some of the key figures to the committee. The accounts show income of €343 million and expenditure of €309 million. A clear audited opinion was issued in respect of those financial statements. The agency's activities are mainly funded by the Exchequer, with the bulk of funding from the Department of Jobs, Enterprise and Innovation Vote. Enterprise Ireland also generates income from profits on disposals of investments and seed and venture capital funds. The agency repaid €34 million to the Exchequer in respect of 2011. This money was raised mainly from the sale of investments in client companies.

Enterprise Ireland's objectives include the provision of support for the development of Irish enterprises trading in world markets. Expenditure in 2011 was in four main areas. The agency provided direct financial support to companies in the form of grants and equity investments. In 2011, €59 million was provided by way of grants, an additional €57 million was provided through investment in shares and seed and venture capital funds.

€97 million was spent on developing science and technology. Approximately three quarters of the latter funding went towards developing industry collaboration with third level education bodies and realising the commercial potential of research, and the remainder was used to develop internal research and development activity in companies.

Since 2008 Enterprise Ireland has had overall operational responsibility for the 35 county and city enterprise boards. In 2011 it provided a total of €32.7 million to the boards. The committee will be aware that, as part of the rationalisation of public bodies, the Government plans to replace the boards with a new network of local enterprise offices.

The agency's administration, operation and promotion costs in 2011 amounted to €89 million, which was just under 30% of total expenditure. This related to providing services and non-financial supports to Enterprise Ireland's clients, such as the client services network, and corporate services costs.