Richard Bruton (Dublin North Central, Fine Gael)
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On procurement, the data on procurement that has been provided would indicate that the situation is not quite as bleak as the Deputy suggested. The data indicates that while 98% of contracts went to Irish companies some of the larger contracts did not. As such, the situation is that more than 95% of all contracts went to Irish companies. That is not a hugely negative figure. Consolidation is occurring in an effort to be cost effective in procurement. It is probably the lowest hanging fruit in terms of the State finding savings to procure more efficiently. If one is procuring inefficiently there is obviously someone benefiting from that, who will be dislodged if one moves to a different way of procuring. There is a tension, I recognise that. We have been striving to ensure that there are no obstacles put in the way of achieving efficient procurement, including high insurance thresholds or requiring that to submit a tender for some business the tenderer would have to be a megascale operation. All of these issues remain a feature. Along with other actions which I indicated we are taking, we are working with the agencies to route these out.

Bank financing is changing. It is no accident that we now have €2.5 billion worth of State promoted funds out in the marketplace, all of which have emerged in the past three years and the past 12 months in particular. Funds are now being provided through the microfinance and loan guarantee schemes, the development capital fund, the NPRF's three funds, which are lending fund for SMEs, a restructuring fund for SMEs and an equity-type fund for SMEs, and the innovation fund. Enterprise Ireland is the largest funder in Europe of start-ups from a seed and venture perspective. It has shares in 800 companies. We are already in this space. The issue for us is to sweat the things we put in. We need to ensure that we are creating effective instruments to meet the gaps. We introduced these schemes and now need to test and change them if needs be. We recognise that. The reality is that other countries are experiencing the same. The message from other countries at the final meeting on SME finance during Ireland's Presidency of the EU was that there is a migration from SMEs and that we need to find new types of seed and venture capital. There is plenty of money for what are termed "the gazelles", which are fast growing companies. They will get their seed and venture capital easily. We need to focus on putting in place instruments for traditional slower growth companies that are still really solid. That debate will go on. Members are right to focus on it.

On regional development policy, 51% will be in the C region and 49% will not. The additional State aid will be available in the C regions which cover 51% of the country but not in the remaining 49%. There is a difference in the level of State aid that is permissible.