John Perry (Sligo-North Leitrim, Fine Gael)

I propose to take Questions Nos. 11 and 13 together.

An Exchequer allocation is provided each year under the Estimates process for the funding of the county and city enterprise boards, CEBs. Allocation of funding to individual CEBs is conducted each year by the central co-ordination unit, CCU, within Enterprise Ireland. In determining these allocations a systematic approach is adopted by the EI to ensure the maximum degree of objectivity and equity of treatment and clarity on the allocation of funding. This approach involves the provision of funding on the basis of a standard allocation to each CEB as well as an extra allocation that is determined mainly by population but which also takes account of issues such as local unemployment trends, capacity to spend, existing commitments and regional spread. The Exchequer allocation is made in the context of the overall public finances and in 2011 amounts to €27.242 million, of which €15 million in capital is available for direct grants and training, mentoring and advice services to micro-enterprise clients. The bulk of the current allocation to each CEB pays the salaries of the business advisers and other staff who provide direct advice and mentoring to client companies. This represents a strong investment in the micro-enterprise sector, notwithstanding the additional level of demand on CEB services generated in the current difficult economic climate.

None of the CEBs has exhausted their annual funding for this year. However, in regard to their capital allocations for 2011, the aggregate position of all 35 CEBs at the end of May is that grants approved to be drawn down by year end amount to 85% of the available Exchequer grants allocation moneys. Approvals in respect of soft supports such as training, mentoring and advice services to micro-enterprise clients amount to 74% of the available Exchequer grants allocation moneys. This represents the level of capital commitments at the end of May and the actual level of expenditure to arise will depend on the extent to which and the speed of the projects approved being finalised by the promoters. I point out that moneys committed to a project are open for 12 months, and that CEBs can carryover 50% of commitments into the following year. However, they are required to have a zero balance of funds at the end of each year.

The CEB central co-ordination unit within Enterprise Ireland works closely with the CEBs throughout the year reviewing individual expenditures to ensure that the funding allocated to the CEBs is utilised to the maximum. Should it arise during the year that some boards are not in a position to spend all of their annual allocation - a point raised in the questions tabled - for example, where an approved grant is decommitted late in the year if the project has not started, it is reallocated to any boards that are in a position to spend additional funds within the year. Moneys identified under this process tend to arise late in the year, are not generally significant, and are allocated to other CEBs who have viable projects that can draw down the funding. However, the €3.3 million made available in the last quarter of 2010 was additional to the Exchequer funding originally made available to the CEBs for that year.

It is a matter in the first instance for individual CEBs to determine how they will use allocated funds in the most effective way. Some boards may choose to commit all of their available funding as projects present themselves, even if this means that their funding is committed relatively early in the year, while others may decide differently.

Substantial funds have been allocated to the CEBs this year having due regard to the pressures on Exchequer finances. While I accept that it is vital that CEBs continue to promote and support enterprise development, due to the finite nature of public finances, it is not always possible for a CEB to provide financial assistance to every eligible project that presents itself. This is an operating reality with which all CEBs are already familiar. Tables showing the relevant data have been supplied to the Deputy.

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