Micheál Martin (Cork South Central, Fianna Fail)

I thank Deputy McEllistrim for raising this matter on the Adjournment. I am well aware of his determination, commitment and support for the community enterprise centre at Farranfore, County Kerry.

Enterprise Ireland is administering, under section 7 of the Industrial Development (Enterprise Ireland) Act 1998, a community-led enterprise support programme called the community enterprise centre scheme 2007. I authorised the scheme some time ago. Enterprise Ireland will work in close co-operation with FÁS, local authorities, county and city enterprise boards and county and city development boards, where relevant, to implement the initiative. An additional CEC scheme is desirable on foot of the success of the previous schemes and the anticipated demand to establish new centres and expand existing ones. I concur with much of what Deputy McEllistrim said in this context. The availability of business space is a fundamental infrastructural requirement for businesses to establish and grow in any location. Community enterprise centres provide space in a supportive environment for budding entrepreneurs and serve to help the development of entrepreneurship locally in urban and rural locations.

Since 1989, Enterprise Ireland and its predecessors have administered four schemes supporting community enterprise centres. A total of €44 million has been approved for 147 such projects nationally. The last approvals were made in June 2006. To date, 105 centres have been built and 32 are either under construction or have been recently approved. In 2005, Enterprise Ireland carried out a survey of the 95 community enterprise centres then operating. The top line results of the survey show a very positive use of the investment as reflected in occupancy rates, numbers employed and the number of manufacturing and traded service enterprises. The survey revealed that the centres have been successful in achieving an average occupancy rate of 86% with over 840 businesses employing more than 3,800 people in the centres. The survey also found that 15% of the tenants who responded were involved in export markets to some degree.

Funding of €21 million will be provided over three years for the community enterprise scheme. There will be a minimum of three calls for applications in the period 2007 to 2009. Due to the limited funding available, applications will be competitive and it may not be possible to award aid to all eligible projects. The selection of successful projects will be based solely on the ranking of the projects as set out in the community enterprise centre scheme outline. The inclusion of a number of tranches in the scheme gives communities the opportunity to put together a strong plan or application. Therefore, Enterprise Ireland strongly recommends that the fund be serialised into a number of calls for proposals and we scheduled three.

Achieving balanced regional development is a key aim of the enterprise development agencies under the remit of my Department. The scheme forms part of the regional strategy. I appeal to the Deputy to work with his local community to ensure their submission is a good one. It would be useful to examine previous successful community enterprise applications nationally in that context. Partnership with local authorities is vital. New job gains associated with Enterprise Ireland clients have been very strong in the regions. In 1998, 62% of employment gains were in client companies located in all regions outside Dublin with this proportion climbing by 2006 to 68%. Many of Ireland's high potential start-up companies and those involving research and development investment have originated at enterprise incubation facilities at enterprise centres.

I appreciate the Deputy's concerns. The closing date in respect of the last call for proposals was August 2007. The assessment process is under way and the Farranfore application is being considered with all others. A decision is expected shortly.

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