John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

We are aware that a target has been set by the Taoiseach that Ireland will become the best small country in the world in which to do business by 2016. This is an ambitious and achievable target. A key component for the delivery of this target is the reform of the national micro and small business support service. One of the pillars of the Government's strategy for promoting jobs and growth is ensuring that micro and small businesses can start up, grow and export. This legislation will enable the creation of the best possible local environment for micro and small business, and the development of a strong network for entrepreneurship.

We have had a very good debate. What the Taoiseach and the Minister, Deputy Bruton, announced today were the key features of the new local enterprise offices which include additional funding of €3.5 million in 2014 and 170 dedicated staff across the local enterprise office, LEO, system, supplemented by a new graduate recruitment programme to take place shortly and supported by additional local authority staff. Additional services include a new young entrepreneurship fund, which is very welcome, the Microfinance Ireland credit guarantee scheme, and access to services from Revenue and the Department of Social Protection. The system will combine new supports with business services currently delivered by county enterprise boards, CEBs, and those delivered by local authorities in the First-Stop-Shop to be located in local authority offices until the overall framework set by the Minister for Jobs, Enterprise and Jobs is in place.

Each new LEO embedded in a local authority will develop a local plan for boosting enterprise, with targets including new business start-ups, business expansions, jobs created or sustained, as well as wider impacts such as exports, mentoring, training and enterprise promotion, which cover many of the issues raised by Deputies in the debate. This represents a fundamental reform of local government to ensure services are delivered and decisions made closer to the people. There will be new training programmes for all staff in customer support, and a new customer service and charter will include targets for levels of service delivery. That is what was announced by the Minister, Deputy Bruton, and the Taoiseach earlier today.

Regarding some of the queries raised, Deputy Calleary referred to the elected members. I understand they will have an oversight on this area. It is critically important that they would have such oversight with the new municipal areas around the county, and it will be driven by the benchmark of Enterprise Ireland. It is very much a two-way process. The service level agreement will be a very clear document in that regard.

Regarding national awards, there will be major national awards involving up to 14,000 participants through the enterprise fund system.

The Bill is technical in nature but the main issues are the dissolution of the county enterprise boards and the transfer of their functions, assets and liabilities. The transfer of staff is equally important.

The point was raised about the Intreo office, joined-up thinking and the special budget. There is no matching funding required from local authorities in this regard.

I will not address every issue raised as many of them will be discussed in detail on Committee Stage. However, I will speak to a number of them.

With regard to local authorities working with business to support investment and business development at local level, that has been part of the remit up to now. It includes promoting and fostering entrepreneurship, the delivery of essential services to businesses, and responding to the needs of local business speedily and efficiently.

The wide reach of local authorities in the community makes them an ideal partner. Equally, combining the role of social enterprise in community and economic regeneration with the role of community enterprise centres in the communities will be very much part of this process.

The new structure will bring in the local authorities as direct partners in promoting entrepreneurship and supporting small and micro businesses. The Minister for Jobs, Enterprise and Innovation will retain responsibility for policy and budgetary matters.

Enterprise Ireland's focus will continue to be on the high potential start-ups, HPSUs, and companies with at least six staff that have potential. The word "potential" is important in that regard.

The local enterprise offices will continue the county enterprise boards' focus on micro-enterprises that are starting up or expanding. The new service will also provide soft supports to small business, any business with a query or an entrepreneur with a business idea. Any person with a commercially viable business proposal will be assisted. There is no specific policy focus on issues such as social enterprise.

As part of the robust metrics format, the service level agreement will be tailored to suit the size and the capacity of each LEO and included in a local enterprise development plan that will be agreed annually between each LEO and Enterprise Ireland. The performance under these metrics will be monitored by Enterprise Ireland.

The student enterprise award is well-established. There is a strong foundation for building upon that, which is our intention. The role the county enterprise boards have played in that regard will continue to be played in the LEOs.

We believe strongly in the benefits gained by mentoring at different stages of the life cycle of business, about which Deputy Collins spoke. Such a service is crucial to the success of many micro and small businesses, and also to medium and large-scale businesses. There will be a focus on that aspect as well.

On the question raised about consultation, there was a series of consultations during the development of this restructuring plan in conjunction with the launch of the action plan in 2012. The Minister, Deputy Bruton, produced a public consultation document, which was very informative. In addition to all those measures, the stakeholders in this process, including the staff and boards of the county enterprise boards, Enterprise Ireland and the local authorities, have been included and involved. This is being managed through the implementation working group, which has been very effective.

The total Exchequer allocation to the county enterprise boards for 2013 was €25.9 million, of which €15 million is for the capital budget. The Exchequer allocation secured by the Department will continue to be the primary source of funding for the provision of LEOs, grant aid and other supports to the micro and small business sector.

The budgets for the LEOs will be allocated by Enterprise Ireland. The funding given to Enterprise Ireland is under a separate, ring-fenced subhead on local authorities. It is also anticipated that the local authorities may provide additional funds for activities or projects, particularly in regard to enterprise and entrepreneurship, promoted through the normal budgetary process. Matching funding is not requested from local authorities.

The Government decision of 17 April 2012 provided for the dissolution of the county enterprise boards and the subsequent secondment of all the existing staff and the relevant local enterprise offices.

As part of the change to the county enterprise boards, all policies and procedures are currently being reviewed. This will include pre-grant check requirements, a point raised in the debate, on companies to confirm compliance with various statutes, for example, those on taxation, and compliance with labour law as a requirement for payment of a grant.

The local enterprise offices will continue to grant-aid company start-ups with fewer than ten employees with the potential for growth, which is an important point. The provision of soft supports such as training, mentoring, advice and information will be widened to include business start-ups with more than ten employees.

On the points raised by Deputy Calleary, he gave an example of a system that is in place in Mayo. It we could operate the system in Mayo throughout the country it would be very successful. We will take on board his input. The Minister, Deputy Bruton, will deal with the question of elected members but they will have a critical role in the new municipal areas in the outreach offices in Mayo, and likewise in County Sligo.

Deputy Colreavy raised the issue of rates imposed on businesses. There is a provision that local authorities may be able to give a derogation to businesses for the provision of services in towns and securing occupancy in vacant properties; they will have some discretion in that respect. The Minister, Deputy Hogan, is examining that idea. The Deputy also raised the issue of the private business sector, and the role of villages and towns in terms of community involvement. That will be examined also.

Deputy Wallace was somewhat negative on the potential of this initiative but I would be very positive about its potential. From cities to counties it presents a great opportunity.

Regarding Deputy Boyd Barrett's point, we are certainly not dismantling the structures.

We are improving the structure, not dismantling it. Our focus will be the real engine of growth, namely, micro-enterprises and start-up companies. The microfinance fund will assist in this regard, as will the COSME fund of €2.3 billion which was agreed to during the Irish Presidency. The COSME fund may be allocated through the local enterprise offices.

Deputy Dara Murphy spoke about the "think small first" principle and the issue of regulation. We are conducting a review of licensing.

Deputy Denis Naughten made a good suggestion about national standards and a quality mark for websites. He also spoke about foreign direct investments and grants. With a facility in every county, Enterprise Ireland and IDA Ireland will be able to collaborate on county plans. The Western Development Commission will play a critical role in the counties in which it operates.

Deputy Joe O'Reilly also spoke about foreign direct investment and county plans. The new structure will allow us to develop centres of excellence and cut red tape. Enterprise Ireland can play a critical role in this regard. The chairman of IDA Ireland, Mr. Frank Ryan, is a former CEO of Enterprise Ireland. Regional planning will be central to the structures.

Deputy Finian McGrath spoke about the youth guarantee. The Taoiseach has sent a clear message of support for it and the Intreo offices are actively supporting people in moving into business or employment. Deputy Ann Phelan spoke about the importance of employing experienced staff in the context of employment law.

Deputy Damian English spoke about the role the European Investment Bank could play in supporting micro-funds. The loan guarantee and community-owned centres will also play an important role. Deputy Anthony Lawlor spoke about micro-enterprise funds and start-up work spaces which will be incorporated into local action plans.

Deputy Áine Collins asked about mentoring, which will be ring-fenced and included in the Action Plan for Jobs. Deputy John Paul stressed the importance of job creation and recognising that every enterprise has the potential to create jobs.

On Deputy Eoghan Murphy's comments, the structures will work in Dublin. The high level group is reducing red tape for business. I agree entirely with Deputy Bernard Durkan on the need for positivity. This can work, but it will require the co-operation of business people and local authorities on the ground.

This is an important Bill which will assist the Government in its plans to reshape the landscape to more effectively meet the needs of micro and small businesses by bringing local enterprise supports into an integrated national network of local enterprise offices, creating a seamless support structure - the first-stop-shop - to offer the full range of State supports available to the micro and small business sector and ensuring this vital sector will benefit from an expanded and bench-marked service across all regions, with all forms of entrepreneurship fostered and supported. Some 31 offices will act as local hubs for enterprise support, delivering a comprehensive first-stop-shop service to local entrepreneurs and businesses. They will combine the direct grants, mentoring and training formerly delivered by the county enterprise boards with business supports; utilise local business expertise to evaluate projects; provide training and mentoring on starting a business; and provide for an enhanced advice and guidance service embracing all other local and national supports and, where necessary, direct referral of clients to Enterprise Ireland or the microfinance and loan guarantee schemes.

In addition to the drafting of this legislation to implement the 2012 Government decision to reform the system of supports, significant progress has been made on the restructuring project. I am optimistic about the new local enterprise boards and look forward to debating the Bill further on Committee Stage.

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