Ms Constance Hanniffy:

I would like to respond briefly to Senator Clune. I acknowledge that Enterprise Ireland will be key in the LEOs and how they operate. It is key to the operation of the enterprise boards because the overall national policy for local enterprise development is set by the micro-enterprise policy unit in the Department of Jobs, Enterprise and Innovation. The operational guidelines and the monitoring of activities of the county enterprise boards are the responsibility of the central co-ordination unit within the Department so there will not be any change to that. That will be a structure that will be enhanced and I understand is underpinned by this service level agreement between local authorities and Enterprise Ireland. I have not seen what that contains so I cannot give the Senator an outline of how that operates but I see enterprise boards as being key.

What was there, what is there at the moment and what is proposed without a democratic input and with a reduction in funding worries me. There are three types of grant aid given by the enterprise boards. Under the priming grant, a maximum of 50% up to €80,000 can be given. We have the business expansion grant, the feasibility and innovation grant and refundable aid. I understand that these grants will not change and that this will still be the mechanism but the reduction from €80,000 to €40,000 clips the wings of any major developments relating to job creation.

I know it is hoped that LEOs will streamline the passage of those with a decent or large application for a project to Enterprise Ireland. In other words, they are the front door through which all State supports for small and micro businesses can be accessed. I also thank the committee for its support for our suggestions.

Hopefully, it will look towards them at the legislative stage.

With regard to Senator Cullinane's comments, I agree there have been delays in consultation. Issues remain about human resources but I will not go down that road. Hopefully, they will be sorted out in the coming weeks and months. He said there was a lack of consistency throughout the country. There was because some boards operated more pragmatically than others. Some counties had more entrepreneurial people than others and, therefore, they were more willing to access the funding in some counties than others. This may still be the case when the new LEOs are up and running.

The Senator referred to the funding that was not even processed by a number of enterprise boards under the loan fund. There are also issues around that because access to funding for SMEs is a huge issue. The banks are not lending even though so many billion euro is supposed to be set aside for small business loans. As somebody who has knocked on the door with a few people, the answer is not great. That is an issue and I do not know who will strengthen it.

Best practice is key and, as Councillor O'Brien explained, we have had a great deal of contact with our friends and neighbours in Northern Ireland. We know how they operate and we know the strength local government will have to provide a proper home for the new LEOs, but we still have issues with democratic accountability and the amounts of funding they will be allowed to disperse.