Joe Costello (Dublin Central, Labour)
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Question 43: To ask the Minister for Enterprise, Trade and Employment his plans in relation to the joint European resources for micro to medium enterprise programme; the amount of funding to be allocated each year to 2013, including 2006, under the programme; the types of businesses he intends to aid through this mechanism; the processes to be used for businesses wishing to obtain such funding; if he intends to set a maximum timeframe from a completed application being submitted to a decision being given to the applicant and to funding being paid down; and if he will make a statement on the matter. [23489/06]

Micheál Martin (Cork South Central, Fianna Fail)
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The joint European resources for micro to medium enterprise is a joint initiative by the European Commission, European Investment Bank and European Investment Fund, which is intended to improve the access of SMEs to finance within the framework of the European regions. The initiative, which is known by the acronym, JEREMIE, is voluntary and is designed to enable European member states and regions to use part of their Structural Funds over the period 2007-13 to develop financial instruments that are specifically designed to support micro and small and medium enterprises.

The European Regional Development Fund is a Structural Fund for financing measures to promote development and structural adjustment of regions and the economic and social renovation of areas facing structural difficulties. Structural Funds generally provide financial assistance in the form of grants. Under JEREMIE, however, some of these grants can be transformed into financial products which can be focused at regional level.

In so far as Ireland is concerned, the framework for the next round of Structural Funds — the national strategic reference framework, NSRF 2007-13 — is being prepared and negotiated under the aegis of the Department of Finance. This will outline the strategy for allocating the available European Union funding through operational programmes. The proposal is that the ERDF funding available will be dispersed through two regional operational programmes managed by the respective regional authorities in the Border, midlands and west and south and east regions. Precise details of what these operational programmes will contain have not yet been developed. The possibility of using Structural Funds in line with the JEREMIE initiative will be considered in this context.

Ruairi Quinn (Dublin South East, Labour)
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I thank the Minister for the information. Perhaps he might come back to me later, if not today, as regards the following. If they are to be used for micro businesses, surely the county enterprise boards are obvious bodies for administering these funds. Will the Minister indicate, either today or later, the level of funding it is intended to allocate during the programme in the period 2007-13? What differential will there be between the two regions that constitute the country in terms of access to Structural Funds?

Micheál Martin (Cork South Central, Fianna Fail)
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I certainly will come back to the Deputy as regards this initiative. It is worth pointing out that the county and city enterprise boards were already co-funded by the ERDF and to a certain extent have been doing some of this type of activity. Some 40% of grants from county enterprise boards, I believe, were on a refundable basis. This is an increasing phenomenon and it helps them in terms of reallocating resources going forward.

Enterprise Ireland, likewise, in its venture capital programmes, is now taking equity in almost all cases as opposed to just giving straight grants to companies. I like the idea contained here. It dovetails with some of the recommendations in the small business forum or relates to them. As soon as these come closer to realisation, I will be anxious to see how we can make inputs to this to see how we may facilitate the application of the JEREMIE initiative to our domestic situation. I do not have the breakdown in terms of the regions yet, but I shall come back to the Deputy on that.

Richard Bruton (Dublin North Central, Fine Gael)
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Is the Minister not alarmed that the recent evaluation of the Community's last support framework for 2000-06, showed under the heading "entrepreneurship" that the original application of funds was only 10% of all the employability funds that were devoted to entrepreneurship? Only 36% of the target money has been spent to date and the Minister's Department has been unable to give any indicator as to whether achievement has been registered in this section under entrepreneurship. If we are to have faith that the Minister will put a credible package together for the period 2007-13, I want to know why and what has gone wrong with the last programme. Why is the Minister unable to publish proper indicators of performance against targets in that crucial area?

Micheál Martin (Cork South Central, Fianna Fail)
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That is a fair point. However, let us not overstate the impact into the future of ERDF on our business support measures, as the bulk of this will be Exchequer financed. Entrepreneurship in Ireland has gone from strength to strength. The most recent global economic monitor rates Ireland as No. 1 in terms of entrepreneurial activity within the entire European Union. Some 80% of Irish people now perceive entrepreneurship in a positive light.

Richard Bruton (Dublin North Central, Fine Gael)
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It would appear this has happened despite the Minister's Department rather than because of it.

Micheál Martin (Cork South Central, Fianna Fail)
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I do not accept that. The role of Enterprise Ireland and——

Richard Bruton (Dublin North Central, Fine Gael)
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The figures are there.

Micheál Martin (Cork South Central, Fianna Fail)
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——the support we have been giving Enterprise Ireland has been very strong. Venture capital initiatives have been particularly effective and the most recent round I have announced will be even more effective. The results from Enterprise Ireland more or less confirm that. The county enterprise boards have had good success across the country in terms of micro business. That is not to say we can afford to take the foot off the pedal. We must keep pushing, maintain our vigilance and as regards the specific question the Deputy asked, which is not the subject matter of this question, I will come back to him on that.