Joe McHugh (Donegal North East, Fine Gael)

I want to address two themes. The first is the need for greater co-operation between northern and southern enterprise agencies and the second is the need to develop Ireland's high-end small to medium enterprise sector as a path out of recession.

Since this House resumed after last summer's recess I have mentioned the Comprehensive Study on the All-Island Economy on numerous occasions. That study supplements the Good Friday Agreement. it is a long and detailed document and was jointly written by the then Minister for Foreign Affairs, Deputy Dermot Ahern and the Secretary of State for Northern Ireland at the time, Peter Hain, M.P. It must have cost the British and Irish Governments many thousands to publish. Since November 2006 it has been completely ignored and the acronym, SPOTS, strategic plans on top shelves is very apt.

The study states: "Companies should be encouraged to treat Ireland as one commercial zone rather than two separate entities". Specifically it notes that, "Enterprise Ireland and Invest NI offer a wide range of programmes, providing largely parallel supports to SMEs on both sides of the Border". This is the case of Enterprise Ireland versus Invest NI and the case I am putting on the floor of the House tonight indicates a big anomaly, which puts companies on this side of the Border at a comparative disadvantage.

Enterprise Ireland and Invest NI offer different packages to small to medium sized exporters. A successful company, whose name I shall give the Minister of State after this debate, has been offered a full grant aid package by Invest NI. Enterprise Ireland refuses to provide a grand aid package and is only offering equity support. Therein lies a need for consistency.

The Good Friday Agreement is not just about peace in Northern Ireland. It envisaged an all-island economy and Ireland as one commercial zone. Ireland's membership of the eurozone and Britain's commitment to its traditional sterling currency prevent us from developing a genuine all-island economy, but we can address some of the less fundamental differences, including this one. In November 2006 both jurisdictions bought into the comprehensive study's notion of a bilateral agreement. This country will only emerge from recession if we develop an economy of small to medium exporting companies.

In the case before us we have a company that can generate €5 million in export revenue for Ireland and ten high quality jobs can be created with the right support. The company wants to locate itself in Moville, County Donegal. Given our regulations, this highly mobile company which has already located from India and the USA can very easily locate itself 20 miles from Moville in Derry city. Successful companies cannot afford to give away equity. As Enterprise Ireland has designated this company HPSU, high potential start up, we need to get our house in order.

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