Billy Kelleher (Cork North Central, Fianna Fail)

We are in the most challenging economic environment that has confronted our nation in modern times. The Government has acknowledged this and has embarked on addressing this situation in a concerted fashion. The Government focused on safeguarding the financial system so that it could continue to operate to sustain the real economy and in particular contribute positively to the enterprise sector. Government action on the banks guarantee scheme, the nationalisation of Anglo Irish Bank and the recapitalisation scheme has been timely, proportionate and essential.

Under the recapitalisation scheme, AIB and Bank of Ireland have committed to increasing their lending capacity to small and medium enterprises by 10%. As part of the package, the Financial Regulator has introduced a code of conduct for business lending to small and medium enterprises which will facilitate lending to small and medium enterprises and promote greater transparency in the treatment of small and medium enterprises by the banks. The code extends beyond AIB and Bank of Ireland and covers the primary lending banks.

In our document Building Ireland's Smart Economy, the Government put forward a framework for sustainable economic renewal. This document sets out actions to reorganise the economy over the next five years to secure the prosperity of current and future generations. Central to our economic renewal is a thriving enterprise sector, high-quality employment, secure energy supplies, an attractive environment and first class infrastructure. The Government is also addressing public spending in terms of bridging the gap between budgetary demands and Exchequer inflows and focusing on how to achieve significant savings. We have already made decisions on measures to effect savings of €2 billion in 2009.

All of these measures will sustain our economy and ensure that we are well positioned for the economic upturn when it arises. These efforts will directly assist enterprise activity within the economy, particularly at the level of small and medium-sized enterprises. The Government is committed to ensuring that we continue to put in place policies and programmes that encourage the emergence of new business opportunities and facilitate long-term business survival.

The 35 county and city enterprise boards have a clearly defined role as the principal deliverers of State support to the micro-enterprise sector in Ireland. This sector is a key component of the indigenous small business sector and has been to the forefront of Ireland's recent economic success. As a result of their strong regional and cumulatively national presence, the network of county enterprise boards is providing a seamless availability of business support, funding and mentoring to the micro-enterprise sector, thus facilitating the growth of this sector over the last 15 years. In addition, the micro-enterprises supported by the enterprise boards have played a key role in providing the sub-supply and support services that are essential in attracting foreign direct investment into the county.

The enterprise boards have an excellent track record in tapping into local entrepreneurial potential and their focus has increasingly been on the development of sustainable growth-orientated local enterprise, which can deliver high quality job creation without displacement or deadweight. The current parameters within which the enterprise boards operate enable them to deliver valuable assistance to business start-ups with good growth and employment potential. 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.

Since 1993 to the end of 2008, the CEBs have issued grant payments to the total value of €201,159,002 and since their establishment in 1993, the total number of projects which have been approved for financial assistance is 20,796. Over 33,811 net jobs were created in CEB assisted enterprises from 1993 until the end of 2008

The enterprise boards have, in particular, deepened their role in promoting a culture of entrepreneurship in their localities. The provision of management capability training, direct mentoring and of networking opportunities carries its own value and its own weight. Over 165,700 people have participated on the various management development programmes and mentoring programmes available from the county enterprise boards since 1993. This represents a significant financial investment by this State in the micro-enterprise sector for the last 16 years and is also an investment in the future development of this sector. All of this contributes to job creation by boosting the survival rate among micro businesses and facilitating the future growth and employment potential of those businesses.

In 2009 the enterprise boards will continue to deliver on their primary role of assisting and supporting the micro-enterprise sector through the provision of both direct grant aid and soft support measures and to ensure that available funds are targeted to maximise entrepreneurial development. While the current climate surrounding public finances cannot be ignored, enterprise boards will be able to use their available funding in a judicious and effective manner so as to ensure that business growth and development will not suffer and that further employment creation opportunities are not missed.

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