Mr. Allan Mulrooney:

I appreciate the opportunity to address the committee on behalf of the Western Development Commission, WDC. I am the chief executive of the commission and I started in the role on 1 September, so I am quite new to the role. I am here to provide a concise overview of the organisation's role in fostering economic and social development across the west of Ireland. Established in 1997, the WDC is a statutory body operating under the Department of Rural and Community Development. Our mandate encompasses counties Donegal, Sligo, Leitrim, Roscommon, Mayo, Galway and Clare. At its core, our mission aligns with the national development plan's pursuit of balanced growth and the objectives outlined in the Government’s Our Rural Future policy.

I will provide a brief overview of the WDC's multifaceted efforts because it is important that we outline these as we move forward into our bridging and loan opportunities. Our dedicated communication team actively promotes the western region through initiatives such as Westernjobs.ie and our television programme "Moving West" on TG4. Collaborative efforts with stakeholders and agencies have garnered millions of euros in PR value in recent years, emphasising the region's work-life balance and career opportunities.

Under our EU team, we have leveraged EU funding and the team has spearheaded sectoral growth strategies, securing €42 million over the past decade for the western region. We excel in designing, implementing and managing EU programmes across various sectors, from the creative economy to renewable energy.

Our policy team conducts in-depth research into long-term trends, challenges and solutions affecting our region. Drawing from diverse data sources, we inform policymakers on crucial matters like broadband, employment, energy and transportation. Notably, our recent national remote work survey influenced the Government's remote work strategy.

As part of the Atlantic economic corridor initiative, we have launched ConnectedHubs.ie, which is now a national project that has become very important to the Government's Our Rural Future strategy. This network of over 300 hubs has revitalised communities, offering diverse services and workplace options to individuals, start-ups and corporates, with plans to expand to 400 hubs by the end of 2024, if not before.

There is also the western investment fund which I intend to focus on during my statement. Managed by the WDC, the WIF, as it is called, marked its 20th year of investment in 2021. Comprising several sub-funds, the WIF includes the strategic investment fund, the business investment fund, the community loan fund and the western region audiovisual production, WRAP, fund and micro-loan fund dedicated to the creative industries.

The western investment fund initiated investments in 2001, receiving €31.75 million in Exchequer funding between 2001 and 2010. Importantly, since then it has been operating independently as an evergreen fund, reinvesting all earnings into western region enterprises. In the context of non-commercial semi-State agencies, the WIF stands out for its financial return and now exceeds by three times the initial €31.75 million allocation. At present, the fund's value stands at just over €90 million.

The investment fund operates commercially, providing risk capital through equity investments and loans to businesses and social and community organisations. It follows the market economy investor principle, co-investing alongside private sector investors without state aid elements. Commercial interest rates apply to its SME lending activities, which is very important to note. It provides lending to community enterprises and projects at a 5% interest rate by way of term loans and bridging finance against LEADER grants. The WDC may take security in certain lending scenarios but it never looks for personal guarantees for any of its lending activity. This approach aligns with the investment fund's objective of promoting social and economic growth while maintaining sound fiscal practices.

The business investment fund is the largest of several WIF sub-funds, having invested €65.7 million in 144 SMEs across the region by way of equity investment and loan finance. The community loan fund, which funds community enterprises and projects, and the strategic investment fund, which funds social enterprises and initiatives, have to date supported 144 projects with a total of €20.3 million of funding. Investment in the creative industries, which is a new focus for the organisation, accounts for just over €3.2 million across 57 projects. Overall, the WIF is a multisectoral fund, funding both high-tech and traditional businesses, the creative sector and community and social enterprises.

The WDC, through its multifaceted efforts, plays a pivotal role in enhancing the western region's economic and social vitality. We have consistently demonstrated our commitment to fostering growth and sustainability, both in terms of financial returns and socioeconomic impact. I and my colleague, Gillian Buckley, our investment manager, are available to address any questions in regard to the fund or any other part of our work.