Damien English (Meath West, Fine Gael)

I thank the Minister of State for his reply and for acknowledging that a problem exists. He did not really discuss the solutions but rather described the current situation. I wish to make clear that a problem exists in the venture capital market in the case of companies with a physical product which need funding of between €1million and €10 million. Enterprise Ireland can only give up to a total of €500,000 in these cases. I accept that Enterprise Ireland invests in certain funds but only 12 venture capital funds are operating in this country and it is not enough for real competition. Hundreds of companies miss out on the opportunity because the existing venture capital funds cherry-pick. Will the Minister of State give a commitment to ring-fence up to €400 million or €500 million to specifically aid companies in the early stage of product development? I know of a company who missed out in that Enterprise Ireland could only offer it €200,000 a year over three or four years. Such companies need Enterprise Ireland to come on board quicker and to put the money up first and not to say such companies will get the money after they have secured a venture capitalist.

The Government and its various organisations must offer support to entrepreneurs. The reality is that risks must be taken if jobs are to be created. However, several companies have contacted my colleagues and me to point out that Enterprise Ireland is, in some cases, acting as a filter rather than a funnel. As I said, funding must be ring-fenced and the allocation for the business expansion scheme, currently capped at €1.5 million, should be increased. For the first three years or so of a company's operation, unlimited investment should be allowed in respect of the business expansion scheme. What we are all ultimately about is job creation.

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