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

I wish to thank Deputy Calleary for his huge input into this Bill. I much appreciate all of the ideas he has proposed. I must emphasise that this is a technical Bill to dissolve the existing support structure for micro-enterprises and transfer the functions to Enterprise Ireland to be delivered on Enterprise Ireland's behalf by local authorities. There will, however, be local county development committees in every county, so the Deputy should study that structure closely. This is a massive transformation of local government. In Sligo, it will give a lot of autonomy and a fantastic role for local councillors through the local community development committees.

The local service level agreement is a clear document. It is the first time that, in the context of Enterprise Ireland, a circle of companies will have a high potential to export and grow. That difference in its charter is important. When enacted, the Bill will dissolve the existing support structure for micro-enterprises and transfer the functions to Enterprise Ireland to be delivered on Enterprise Ireland's behalf by local authorities. That sums up what is happening in this legislative context.

Looking at the Deputy's proposed amendment, it is necessary to distinguish between the economic policy development role of local authorities and the enterprise support role of local enterprise offices or LEOs.

It is not necessary to include Deputy Calleary's amendment for the following reasons:

1. the amendment, as written, would effectively be recreating the board structure that this Bill is dissolving;

2. an evaluation and approvals committee will be established in each LEO. This committee will consist of:(i) a chair, either the city or county manager or another senior local authority official not from the LEO, delegated by the city or county manager;

(ii) a representative of Enterprise Ireland;

(iii) five individuals with specific areas of business expertise, i.e. record of entrepreneurship, accountancy experience, knowledge of markets/sectors/technology, and banking/financial expertise;

(iv) a public call for expressions of interest from individuals, to serve pro bono on the evaluation and approvals committee, is currently being made by each local authority city or county manager. A panel will be formed from which first-filling and subsequent vacancies will be filled. The appointment of the business sector representatives will be made by the city or county manager, in consultation with the head of the LEO. Particular account will be taken of the individual's relevant experience and expertise; and3. The Local Government Reform Act 2014, which only recently passed through the Houses, provides for the establishment of a strategic policy committee, SPC, for economic development and enterprise support in each county and city council. The relevant section is section 48(1A) of the Local Government Act 2001, as inserted by section 41(a) of the Local Government Reform Act 2014.

The requirement of each county and city council to establish the SPC for economic development and enterprise, reflects the increased importance placed by Government on the economic development and enterprise support function of the local authority.

Each SPC will be made up of elected members of the local authority and relevant stakeholders, including representatives of the local business community. The SPC for economic development and enterprise will have a key role in the development of the economic elements of local economic and community plans that local authorities will be required to make. Therefore, every councillor will have autonomy and a huge role in this. The SPC must be agreed by the elected members. In addition, business people will be on the business committee, which will complement the structure in certain cases. In many ways, the system can be too political whereas what we want are good business decisions being made by people with expertise.

Each SPC will be empowered to request the attendance of public authorities at its meetings to assist it in developing policy. Therefore, there is adequate legislative provision to enable local authorities not only to provide advice on local economic development to relevant interested parties, but also to formulate, develop, adopt, monitor and review its policies in relation to economic development.

This is a more comprehensive approach to ensuring the economic and enterprise support elements of the local authority role are fully reflected across the range of functions that local authorities are responsible for, and will ensure a more integrated approach than the amendment proposed in this Bill. Deputies should remember that each county manager is now a CEO so it is a different structure and the service level agreement will be closely monitored

The economic development and enterprise SPCs will not have a role in deciding grants and supports by the LEO, which will be allocated in accordance with national enterprise policy set by the Minister for Jobs, Enterprise and Innovation. Local enterprise offices will be executive offices within local authorities and will perform functions on behalf of Enterprise Ireland under the cover of service level agreements. Such agreements will be up for review in Dáil Éireann, so I am certain that we will have some major feedback on this matter. Unlike county enterprise boards with a board structure, LEOs will not have a committee with members, but will be serviced by the LEO staff.

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