Mary Harney (Dublin Mid West, Progressive Democrats)

The decision whether to provide funding to a company is a day-to-day matter for the State agencies. Enterprise Ireland and IDA Ireland operate in accordance with the provisions of the Industrial Development Acts and within the policy framework established by my Department.

Enterprise Ireland is the agency that has primary responsibility for the development of indigenous sector. A small or medium enterprise is considered to be a company employing between ten and 250 staff. The types of service that may be eligible for Enterprise Ireland support are scheduled in the Industrial Development (Service Industries) Order 2003. Enterprise Ireland also has responsibility for Irish-based food and natural resource companies that are overseas-owned or controlled. IDA Ireland is the agency with statutory responsibility for the attraction of foreign direct investment to Ireland.

Enterprise Ireland works with companies in its portfolio to assist them in growing their sales and exports, and to improve innovation in order that they can compete on world markets. It also supports entrepreneurs with the ability to initiate projects that can compete in international markets. It is not true that potential clients must be engaged in export activity. However they must be able to demonstrate that export activity is a real possibility for the company and that the company has an ambition in this regard. The key focus of Enterprise Ireland's policy is to work with companies which have the potential to develop sustainable export sales, and to qualify for support, a company should demonstrate clear potential to do this.

It may be possible for Enterprise Ireland and IDA clients involved in import substitution to meet support criteria as the business development plans of such clients are considered on their merits. Import substitution can contribute to the viability of a new or growing enterprise and, to that extent, it is a valuable and welcome constituent part of the client's target market and can be a component of a client's business plan. However, import substitution by itself is typically considered insufficient to justify significant resources. It is important for companies to recognise that Ireland operates within the single European market and that supplying the domestic market will be carried out in competition from suppliers in other European countries.

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