John McGuinness (Carlow-Kilkenny, Fianna Fail)

My Department and its agencies will play a vital role in working through the current economic circumstances to ensure we are well positioned to reap the benefits that will undoubtedly arise when global markets improve. We will do this by continuing to attract foreign direct investment, by helping Irish businesses to develop and increase exports, by continuing to prioritise investment in science, technology and innovation, and by continuing to provide supports to small businesses.

In speaking about exports, I recognise the role played by Enterprise Ireland and in recent times by the 180 business people representing 94 companies who visited China on a very extensive trade mission. Their generating of €160 million worth of business is an indication that within those markets our Asian strategy is successful. It is an indicator to other Irish companies that in spite of the issues raised about competitiveness in our economy, we have the ability and resources to continue to make our impression on companies far abroad. The Chinese market is very important to us. I encourage companies to take a leaf out of the books of those engaged with Enterprise Ireland and to try to expand their companies in the context of internationalising and commercialising their products and services to ensure they are included in the development policy of Enterprise Ireland in those markets.

The Minister of State, Deputy Kelleher, has stated we will continue to provide the necessary support services and retraining opportunities to assist those who have been made unemployed in this difficult time. By providing these services it is our intention that people who have recently been made unemployed will be given every opportunity to reskill and to secure alternative employment as soon as possible.

The Government will continue to take whatever steps are required to safeguard the economy. Based on our decisive actions we have stabilised the financial services sector so that enterprises, small, medium and large, have improved access to funds, thereby protecting jobs and Irish economic growth. I am aware of some of the continuing difficulties that smaller companies, including those that have invested heavily in property and other businesses, are having with banks. We need to continue to monitor the area to ensure the funds needed to allow companies to continue to trade and grow are secured by them. It is an ongoing developing situation of which the Government needs to be conscious. All our efforts will need to be put into that sector to ensure they have access to those vital funds.

The current economic turmoil that is affecting the entire world economy is obviously having a serious impact on our economic performance. However, despite witnessing some of the most dramatic changes in the world's financial markets, Ireland's SME sector continues to make an important contribution to our economic prosperity. More than 250,000 small businesses operate in our economy and employ approximately 800,000 people. The Government recognises the importance of SMEs. Given ongoing economic difficulties throughout the world, the role of SMEs is becoming increasingly important. The Government is committed to ensuring that we put in place policies and programmes that encourage the emergence of new business creations and facilitate long-term business survival.

Our tax system is one of the most supportive of business in the world and we dedicate significant Exchequer resources to the promotion of research and development. The introduction of the better regulation programme to tackle regulatory burdens, particularly those faced by the business community, is intended to provide a supportive environment for small businesses. The Government has adopted new strategies to support the entire enterprise sector, including small business, based on the reports of the Enterprise Strategy Group and the Small Business Forum.

There is no doubt that future prosperity will be founded on the development and growth of Irish-owned companies. This vision can be realised if the challenges faced by enterprise are met head-on. In this context, the development of the strength and depth of our indigenous sector will be critical if we are to return to the levels of prosperity achieved in recent years. In this regard, the Government has already taken concerted action to assist businesses in succeeding in the ever-increasing competitive environment in which they operate. We have established the Management Development Council, MDC, increased support for the county and city enterprise boards, CEBs, and created an almost seamless support mechanism through Enterprise Ireland and the boards by ensuring that the former is addressing policy and the boards' direction. In budget 2009, we introduced new tax relief measures specifically aimed at assisting new start-up companies, we are continuing to tackle red tape and reducing it wherever feasible and we are promoting increased entrepreneurial activity.

Arising out of the final report of the Small Business Forum and its recommendation that management capability in business be raised to best international standards, the MDC was established last year. The council's membership is drawn from the key stakeholders in the provision and usage of management development training and is chaired by Professor Frank Roche of UCD. The work of the MDC has two main strands. First, it will benchmark Ireland's current management development provision, determining whether it meets the requirements of SMEs, identifying any gaps and developing action plans to address them. Second, the council is charged with developing a co-ordinated approach to building appreciation in the SME sector for the value and need of leadership and management skills.

I look forward to receiving the MDC's report next year. It is clear it will be key in assisting us tailor our management development training to the precise needs of business. This is vital, as I strongly believe that management development training is an issue of importance for enterprise development policy. Research shows that the benefits of management training are not restricted to the individual manager or enterprise.

High-growth SMEs are large net job creators and significant drivers of economic growth. By enhancing and further developing the managerial skills of small firms, all of us stand to gain. It is in the interests of the State, employers and employees to ensure SMEs have access to world class management development training. Given the global market in which Irish companies must compete, access to high-quality management development training is no longer an option. Rather, it is a necessity. I am confident that the MDC's findings will find many positives in our existing provision of services to the SME sector.

The county and city enterprise boards have a clearly defined role as the principal deliverers of State support to the micro-enterprise sector. As a result of their strong regional presence, they are well placed to help micro-enterprises deal with changing economic circumstances. Through the provision of both financial and non-financial support, the boards have assisted many micro-enterprises in developing their growth and export potential as well as bringing them to a stage where they have sufficient mass to access the services of Enterprise Ireland. It is my intention in working with the boards and Enterprise Ireland to ensure the seamless transfer of businesses between them. SMEs will view this seamless organisation as clear support for them in accessing new markets, growing and realising their full potential.

Last month, the Government further illustrated its commitment to supporting small businesses by announcing in the budget that supports, through the county and city enterprise boards, will increase next year by almost €3 million, or 9%, to €34.8 million. This is recognition and support of the boards, which have developed a structure capable of generating and tapping into enterprise at local level. The 2009 allocation for the CEBs recognises the importance of continuing to promote entrepreneurship at this time.

The SME sector is critical to the development of the economy. I will continue to do my best to bring my business understanding to bear on the policy direction taken in the promotion and development of the sector.

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