Dáil debates

Wednesday, 29 January 2014

Industrial Development (Forfás Dissolution) Bill 2013: Second Stage (Resumed)

 

2:50 pm

Photo of Áine CollinsÁine Collins (Cork North West, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on this important Bill. I thank and congratulate the staff at Forfás for the great work they have done since it was established in 1994. The Bill makes provision for the dissolution of Forfás which has been Ireland's policy advisory board for enterprise, trade, science, technology and innovation since its establishment in 1994.

Job creation is at the top of the Government's agenda and the Bill makes changes that will enhance that goal. The Department of Jobs, Enterprise and Innovation provided grant funding of €51.4 million to Forfás in 2012. This funding is ring-fenced for continued research on strategic policy development. It is vital that these continue to be focused on areas such as science, technology, innovation and entrepreneurship to continue to grow the economy.

This amalgamation into the Department is being done in a way that strengthens the ability of the business sector to create jobs by being more streamlined and more focused. This includes the restructuring of enterprise support models for micro and small businesses. The county and city enterprise boards will be dissolved and their functions will now be carried out by the newly formed local enterprise offices, LEOs. They will be under the auspices of each local authority in tandem with a specialised unit of Enterprise Ireland overseeing them, ensuring that supports to small businesses are accessible and that we have joined-up thinking. The purpose of the LEOs is to provide a one-stop-shop to help those budding businesspeople and social entrepreneurs in the regions and the cities to get soft supports such as mentoring and advice on where they can raise capital for start-up finance etc. We welcome this very important measure.

Other streamlining measures are also envisaged. The Office of Chief Scientific Advisor will be assigned to the director general of Science Foundation Ireland. There will also be some restructuring of enterprise development bodies in the Shannon region.

The clear aim of this legislation is to strengthen the capacity of the Department of Jobs, Enterprise and Innovation to drive the job creation policy and continue the work that has already started. There will be a new strategic policy division within the Department with experienced Forfás staff forming the core of the division. This division will continue the role Forfás had in advising, researching and developing policy on the Government's annual action plan for jobs, which has been a great success. We are looking forward to the 2014 action plan which will be published early next month.

Other important functions will be transferred to Enterprise Ireland and IDA Ireland. One of these functions includes the aim to foster the national objective of regional development, a policy objective that deserves more attention. It puzzles me at times that all the concentration is on the east coast and larger urban areas. We live in a small country and commuting distances are relatively short. Most of my constituency is rural and underdeveloped from an industrial point of view and yet it is only one hour from three international airports and two seaports. We need to concentrate on more regional development. This may need to be considered from a social enterprise point of view which is now very focused from a European point of view. We may also need to consider more co-operative models.

I understand that most firms wish to locate in bigger urban areas because of skills but we must continue to encourage firms to set up business in the regions thereby helping indigenous businesses in the region to grow ensuring that they are not forgotten. We also need to continue with a broadband strategy. While technically one can be anywhere in the world to do business, we need improved broadband in regional areas. I welcome the policy of the Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, in driving this agenda.

Overall I welcome the rationalisation programme being undertaken by the Minister. I am confident the overall effect will bring great focus to the process and we will know exactly who is responsible in each area. This rationalisation measure will contribute greatly to continued job creation, which has been the primary focus of the Government since it was elected in 2011. Thankfully we have seen some success in that regard particularly last year with the creation of 58,000 jobs. It is vital that we continue that focus over the lifetime of the Government. We have many budding entrepreneurs and as has been mentioned earlier, 80% of business is carried out in the SME sector. I thank those people for taking risks and continuing to focus in recent years. In many cases surviving was the new success story. Now that the economy is changing, I am glad supports are available to help them to expand their businesses. There is great opportunity but we need to give them the soft supports and the financial supports to allow them to grow.

This rationalisation measure will contribute greatly to continued job creation and I commend the Bill to the House.

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