Dáil debates

Wednesday, 10 December 2008

1:00 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)

I thank the Minister of State for his reply. I think I will be pushing an open door as far as he is concerned because he comes from a business background. Notwithstanding the 16% increase in capital funding, which I acknowledge is significant, is it not a fact that the CEBs' budgets for last year had been expended by last April, leaving them without a penny to give out in capital at a vital time? They have had nothing between then and the recent budget announcement. Their funding has been inadequate and the demand for funding from new and expanding businesses far exceeds the available funds. That is a fact. If fuller funding was made available — the extra 16% is a help — there is no doubt it would result in a greater number of business development opportunities.

The Minister mentioned the mentoring role. Would he agree the demand for mentoring and information technology support programmes is very high and that these have a major and immediate impact on business growth, but that budget constraints mean the CEBs are not able to meet the demand? These supports are not available on a year-round basis, notwithstanding what the Minister of State said, and this hinders the growth of small businesses.

The Department of Enterprise, Trade and Employment has imposed quotas in the allocations of county enterprise boards, and the allocation of the measure 1 budget is restricted by this. Maximum amounts of 25% and 10% of the budget must go towards employment grants and feasibility study grants, respectively, while 30% of grants awarded must be repaid. Would the Minister of State agree that these quotas are not conducive to small business development and that county enterprise boards should be allowed to facilitate customer needs and not be restricted by meeting quotas? It is time to tackle the issue of refundable aid. All recipients of refundable aid must repay 30% of the grants they received to the enterprise board, and this significantly reduces the attractiveness of the grant and increases the level of administration required. Alternative grant aid agencies are not obliged to operate in this manner.

I hear what the Minister is saying with regard to businesses with ten or more employees, but he is a business person and he knows himself how critical ten employees are in any area. Would he accept there is a critical gap in the level of service provision to businesses with ten or more employees serving the domestic market? No agency has responsibility for development and there are no opportunities for business within this category to receive any financial support towards their expansion or development. These are the businesses that fall between two stools and I have advocated their cause.

I have one final question before the Leas-Cheann Comhairle stops me. The small business forum has recommended that enterprise boards be a "first-stop shop" for all small business needs and take primary responsibility for information dissemination. This has yet to be implemented. The existence of a single source for obtaining business legislation, start-up information, training, advice, mentoring and finance would be helpful to all new business owners and would use the expertise contained in enterprise boards to maximum effect. Would the Minister of State agree this is fairly important?

Finally——

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