Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

The Deputy makes a reasonable argument. The reason we established a small business centre of excellence in Enterprise Ireland is to do just as he proposes. We need to create within national policy institutions a drive to improve the capacity of small businesses at local level to establish and grow. Implicit in this is that the domestic economy and export orientated sectors are equally important. We have established a small business unit, whose role, through the transfer of functions, will include the domestic economy, not only the exporting economy. We are transferring functions that require the small business unit to deliver in this area. It will be up to the Department, through oversight and the delivery of services, to ensure we continue to support the non-exporting sector.

There is a clear desire to have a thriving domestic economy as well as export sector. We are bringing a wider range of business into the heart of Government policy-making on enterprise. We will not support companies by providing grants but softer supports such as mentoring will be provided. We continue to believe that grants are not appropriate because if one grant-aids one company in the domestic economy, one is effectively supporting one competitor against another.

That rationale, which has always been behind grant giving and has been exercised by county enterprise boards as well, will remain. The remit is clearly wider and, for example, the likes of the seed capital scheme tax relief has been broadened from exporting to include all enterprises. Micro-finance will also be for all enterprises. Increasingly, the types of incentives and vehicles being put into the market by the State are available to a wider range of sectors. I take the Deputy's point but the purpose of this is to broaden the base, and Enterprise Ireland knows that. It is important to also bear in mind what will not be there, as we will not provide grant support to domestic economy businesses for the reasons that have always been applied by the State.