Willie Penrose (Longford-Westmeath, Labour)

Is it correct that €22 million has been cut from this fund? The Minister said he is reviewing the situation and that like all expenditure allocated in his Department, the fund must be subject to review. The €58 million spent up to end 2009 supported approximately 7,500 jobs. Up to the beginning of March this year, some 26 applications had been received, from which nine companies were approved, supporting 200 jobs. If there is a cut of €22 million, some 50 companies - based on the average of €415,000 support for each company - will apply but will not get job support. This cut is just being flagged now. There was no announcement about it, which makes it a stealth cut. Is the Minister not concerned that if there is a cut, this will have serious consequences for these companies? In the context where these export-led companies are vulnerable but could return to profitability, is it not the position that our way out of the recession is through export-led growth? We must get away from dependence on property bubbles etc.

Most of the aid has been given in terms of redeemable shares and repayable grants. Why, therefore, would the Government contemplate cutting or reviewing something that is making a significant contribution to sustaining companies, particularly in the export sector which is important for maintaining employment? How many companies have applied for assistance to date and how many of these will now find their applications for financial support rejected if there is a further review or cut in the enterprise stabilisation fund?

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