Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I do not think there are regional funding models other than the EU ones in terms of Leader and the European Social Fund. There are a number of EU sponsored modules, Structural Funds and so on. If the Deputy is talking about a regional enterprise type fund, I have not seen any measures in that area. A difficulty in terms of regional policy is that much of what we do in the enterprise area is to respond to enterprise application. We support viable business plans and that would be the case in most other countries. They would focus in on how to improve access to finance through COSME, how to improve innovation through Horizon 2020 or how to get a better spread of SME participation. That is the way in which we seek to strengthen the regions. Obviously there are other infrastructural issues that have a regional dimension, but they would not be falling into this process - not at the moment in any event as I do not know of any of those - which essentially is examining reform of institutional arrangements. Much of what is done through the use of Structural Funds and ESF funding has a very definite regional dimension.

A mentoring report is being prepared by Forfás and it is in its final stages. We will probably publish it at the same time as the enterprise strategy which will be in the next number of months or so.

On the credit union issue, we are examining whether these funds can be better utilised. There has undoubtedly been some misgivings about this from the regulator. I am not fully up on those misgivings but my Department is involved with the State bodies group, which has the finance and regulatory people on board. That issue is being examined. The credit unions have potential in this area but there have been some issues with them around business lending.

Both the seed capital scheme and the EIIS are being examined and reviewed in the context of next year's budget. The take-up of them has been disappointing, particularly the seed capital scheme which, as the Deputy said, has been low. That might be partly due to people not knowing about them but also, as the Deputy rightly said, one has to produce the investment upfront to avail of the tax relief thereafter. I will pass on the Deputy's suggestion to the Minister, Deputy Noonan's group, which is examining this. I do not know the workability of it. It would have to be developed a bit further to determine if it is something that could be considered. The EIIS does allow the money to go in tax free, and it is much along the lines-----