Oireachtas Joint and Select Committees

Wednesday, 3 October 2018

Joint Oireachtas Committee on Rural and Community Development

Sustaining Small Rural Businesses: Discussion (Resumed)

10:55 am

Mr. Denis Leamy:

I am thankful for the opportunity to present. I am joined by Ms Michelle Tritschler, head of corporate services, and Mr. Paul Skinnader, director of community supports and services in Pobal.

Our vision is one in which Pobal, government and communities work effectively together to create a cohesive and inclusive society. We work to ensure resources and supports are targeted to meet community needs, including those of rural communities. Our core role in delivering this vision is through providing an effective programme and grant management service for the Government. Over 26 years, we have worked to deliver programmes in rural and urban areas alike. Those programmes have been astonishingly varied in their purpose and application but all stem from a single public purpose. That purpose is to realise a vision for our country whereby, regardless of one's postcode, be it urban or rural, one's community has the opportunity to be strong and sustainable. That vision is much wider that any one issue, and no single aspect is a cure-all or a quick fix for the multifaceted challenges. Clearly, however, rural communities need indigenous local business. They need it to deliver jobs, provide services and show, one successful example at a time, how positive change can foster a positive attitude.

Major challenges exist for rural communities. The continued flow of young people to cities, the depopulation of some rural areas, difficulty in accessing local employment and key resources such as broadband feature high among these. The major setbacks faced by businesses and families during the recent crisis have added to these pressures, as has the threat of Brexit.

Earlier this morning, members heard our chairman designate explain that Pobal's work includes the delivery of a very wide range of programmes across rural and urban Ireland. We have been in the field doing the job for 26 years. We have seen a sustained attempt to address rural and development issues, through mechanisms such as the Action Plan for Rural Development and the setting up of local and community development committees in each county. Old challenges persist in some respects but they have also changed substantially. The challenge for public policy and for Pobal, which is charged with delivering on elements of policy, is to adapt, keep pace and move ahead of the changes.

Social inclusion and communities are core for Pobal. The impact our work and the Government funding we manage have on communities motivates us. Our support for businesses is embedded in programmes that aim to improve the quality of life in the community. Pobal is not focused specifically on business as a primary aim but we know business is an essential part of the response of delivering for communities, which is our objective. Within that wider context of supporting communities, we value the supports we can offer to businesses. Thriving communities need thriving businesses.

Our work is shaped both by knowledge of the challenges communities face and the strategies set in place by the Government to meet them. The range and scale of Pobal's work mean we can offer assistance to communities across many service areas, including through community enterprises, education and training, employment support and childcare. The examples I wish to highlight are components of wider programmes that Pobal manages rather than stand-alone business support programmes. These programmes offer support to help business development, assist in training and upskilling rural workforces, provide the staff that businesses need, and offer services that help sustain rural businesses.

Let me give some relevant examples of our work that are relevant to today's discussion. The social inclusion community activation programme, SICAP, addresses high and persistent levels of deprivation through targeted and innovative locally led approaches. It offers, among a range of services, direct help to individuals who want to set up their own businesses. During the three-year period from 2015 to 2017, over 7,000 individuals in rural areas were supported by SICAP to go into employment. An additional 17,000 availed of other SICAP employment development supports in the areas of self-employment start-up, career advice, labour market training, work experience and mentoring. Some 257 social enterprises were supported in rural areas. Each of these figures represents an individual, a family and a business whose lives have been changed as a result of the supports they have received. Together, every individual and family is part of a stronger more sustainable community.

The community services programme, which we manage on behalf of the Department of Rural and Community Development, offers direct support to set up and to fund the ongoing work of community enterprises. The programme promotes social enterprise as an approach to alleviating disadvantage and addressing local social, economic and environmental needs that are not being met through either public or private funding, or other resources. It creates sustainable jobs for those most distant from the labour market and targets those who are long-term unemployed and from particular target groups. It promotes sustainable social and economic development. In 2017, 400 enterprises were funded through the community services programme, and 46% of individuals working in these enterprises lived in rural areas. For example, the Arigna Mining Experience, a community tourism initiative based on Arigna's 400 year old mining story, is an example of a community services programme project that builds upon a local opportunity to develop a business and provide employment at the same time.

In 2017-2018 academic year, Pobal provided supports to 4,543 early-years service providers, of which 1,538, or 34%, were located in rural areas. The childcare capital funding scheme helps these businesses to increase capacity and the quality of their facilities. In addition to providing supports to early-years service providers, we are also involved in managing targeted childcare initiatives that reduce the cost of childcare for parents, enabling many to return to the workforce. These are not just economic initiatives. Childcare is an essential building block for stronger communities.

Pobal does not work alone in these areas. The programmes we deliver are directed and funded by the Government, in each case through a lead Department. Our funding and support flow through to local groups such as local development companies, which made a presentation to the committee last week through their representative organisation, the Irish Local Development Network. We support the local community development committees in each county in terms of the delivery of programmes. We support county childcare committees in their work. In our work with partners, we attempt to bring consistency, co-ordination and high-quality standards to bear. The information-gathering tools we have, including the deprivation index, are good examples of the practical assistance and knowledge we bring to the table. As our chairman stated this morning, our commitment to minimising bureaucracy, within a context of increasing regulatory demands, is also central to our work.

I thank the Chairman again for the opportunity to present to members this morning. I am happy to take any questions members may wish to pose. As I said at the outset, the supports I outlined are embedded within the programmes. Their aim is to improve life quality for communities as a whole. That includes the part they play in supporting rural businesses. When Government funding achieves more than one goal, it brings added value without increasing expenditure. We believe helping to develop and sustain businesses while achieving our primary aim of increasing community development and inclusion is a good example of this.

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