John Perry (Sligo-North Leitrim, Fine Gael)

I thank Deputy Tóibín for raising this important question. Small and medium enterprises are central to our economy. My appointment as Minister of State with responsibility for small business is confirmation of the Government's commitment to this sector. The programme for Government outlines several measures which the Government will take to assist small and medium enterprises with a view to maximising their potential in the context of economic recovery. These measures build on the existing enterprise supports available to small business.

Support nationally and locally for micro-enterprises, small businesses and new start-ups is provided by my Department through the wide range of assistance offered by the County and City Enterprise Boards, CEBs, and Enterprise Ireland. The role of the County and City Enterprise Boards is to provide support for micro-enterprises in the start-up and expansion phases, to promote and develop indigenous micro-enterprise potential and to stimulate economic activity and entrepreneurship at local level. The CEBs deliver a range of tailored programmes and supports to fulfil this role. CEBs are required to give priority to enterprises in the manufacturing or internationally traded services sector which, over time, may develop into strong export entities and graduate to the Enterprise Ireland portfolio. This is done through the provision both of financial assistance in the form of grants and non-financial assistance in the form of business advice, training and mentoring. The Exchequer allocation for the county enterprise boards in 2011 amounts to €27.242 million, of which €15 million is available for direct grants and training, mentoring and advice services to micro-enterprise clients. This represents a strong investment in the micro-enterprise sector.

Beyond the micro-enterprise sector, Enterprise Ireland operates a range of enterprise supports which provide participants with the business skills, contacts, mentoring and support potentially to transform their innovative ideas or technologies into exporting businesses. Under the auspices of Enterprise Ireland, the Government has also invested significantly in the broader environment for business start-ups, including investment in incubators, seed and venture funds, angel networks and mentors. More than 90% of Enterprise Ireland's company clients are small and medium-sized enterprises. Enterprise Ireland works with companies to strengthen their business plans, build their leadership and management capability, connect them for opportunities with overseas buyers and researchers, and provide them with access to finance.

Additional information not given on the floor of the House.

Funding of more than €213 million is available to Enterprise Ireland in 2011 from my Department's Vote to support companies, including through research and development grants and collaboration with third level institutions. The allocations both to the county enterprise boards and Enterprise Ireland are very significant, especially in the context of the pressures on the public finances. It is a matter for each agency to determine how they will respond to client demand and allocate funding to clients during the year.

In addition to these agency supports,the Government is developing a temporary targeted partial credit guarantee scheme and a micro-finance fund, both of which will be designed to help viable businesses at start-up and expansion stages. Other measures, such as the halving of employers' PRSI costs for employees earning less than €356 per week and the announced reduction in the 13.5% VAT rate to 9% are designed both to assist small and medium-sized enterprises and to stimulate consumer spending.

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