Oireachtas Joint and Select Committees

Tuesday, 29 September 2015

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Estimates for Public Services 2015: Vote 32 - Department of Jobs, Enterprise and Innovation

1:30 pm

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

It is only fair to point out that while Enterprise Ireland runs the high potential start-ups, it has been increasingly involved in running competitiveness feasibility and competitive start programmes on a regional basis. These schemes operate at a lower level and provide grants for smaller sums. The former provides grants of approximately €20,000, while the latter provides grants of approximately €50,000. They are run at a lower level and on a regional basis. As such, they seek to plug into the group to which the Deputy refers.

One of the merits of integrating the local enterprise offices into the Enterprise Ireland mandate was to have a seamless transfer. This is clearly part of their service level agreements.

If there are difficulties with companies that possibly could be high potential start-ups, HPSUs, and the threshold is ten jobs and a €1 million turnover, that would represent a breakdown. If the Deputy has examples we will certainly look at those. For companies of that nature that have that capacity, between competitive feasibility, competitive start and the HPSUs, there is a suite of possible supports, not to mention the 900 new projects the local enterprise offices, LEOs, support. There is a good suite of possible supports available, and if enterprise is falling between those stools, by all means we should examine where the problem is arising.

Undoubtedly, funding and staffing restrictions have been a feature of recent years, and we have had to be imaginative in this regard. That is why we have had Microfinance Ireland and other initiatives that are refundable or recyclable money. If we had more money, we would put it through but we are managing a budget and trying to use it as smartly as possible. There are alternatives such as Microfinance Ireland for someone looking to buy a van. Between the local enterprise offices and Microfinance Ireland, which they now handle, they can look at the suite of possible supports for each individual customer coming in.

We are reviewing the staff. They are setting out their plan, and we are reviewing their staff complement against the plan they have set out. They also have the ability to compete for additional money based on new initiatives. If they are putting forward initiatives, there is a competitive opportunity for them.

They are in a dynamic funding environment. We are learning by doing, but we are still resource constrained in not being able to commit more money to all programmes at all times. If the Deputy works on some of the examples of the problems the enterprises are experiencing, we will try to see if there is a way we can broker solutions. There is supposed to be a seamless referral on, and if we can build that, we will. Many of them are coming forward in the competitive calls and taking on a mentor to fill the gap they cannot do themselves if they have a possible high potential start-up. Thousands of clients are mentored. There is quite a resource in place for taking that enterprise that has the possibility of getting to high potential and has not got the support yet. There is enough flexibility for them to cope.

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