Dáil debates

Thursday, 19 June 2008

Priority Questions

County Enterprise Boards.

3:00 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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Question 4: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her plans to review the role of county and city enterprise boards in the development of micro-enterprises; the changes that she envisages in the range of services provided by CEBs; her views on whether the target market for CEBs has changed in the past 12 months; and if she will make a statement on the matter. [24098/08]

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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A comprehensive review of the role, functions and remit of the county enterprise boards in the development of micro-enterprises was conducted in 2004, that is, the Fitzpatricks review. The review largely endorsed the activities and operations of the CEBs and concluded that there is justification for continued State support to micro-enterprises and that the CEB network can continue to play a useful role in the overall national enterprise development policy. It also recommended that, in providing assistance to micro-enterprises, CEBs should focus more on economic, rather than social or local development, objectives; there should be a renewed focus on the core enterprise mission; the issues of potential deadweight, displacement and duplication should be more systematically and rigorously addressed; and there should be a move away from direct grant aid to repayable finance as well as a greater provision of soft supports as an alternative to grant aid.

Both the enterprise strategy group report and the recent report of the Small Business Forum endorsed the key recommendations of the Fitzpatricks report on the primary micro-enterprise focus of CEB support and the range of services the boards offer. While it is acknowledged that there will be differences in requirements and emphasis in the areas served by the various CEBs, I remain satisfied that the current core micro-enterprise remit of the CEBs should remain their primary target market and that the services currently offered by the CEBs, in terms of both financial and non-financial assistance, to that sector represent the most appropriate mix of services.

In the context of its key policy role my Department in association with the CEB central co-ordination unit within Enterprise Ireland and with the CEBs, monitors the range of support services offered by the CEBs on an ongoing basis particularly in the light of the economic climate.

4:00 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I thank the Minister of State for his reply. I am also very happy with the enterprise boards which do an excellent job. I served on one for years. However, it is time we expanded their role in order that they can help more people and companies, both start-up and existing ones.

Having served on a board and spoken to people on other boards, I know they are quite limited in terms of who they can help. I agree there is some discretion but we should give them more scope to try to help more companies. Some companies have let go two or three staff members over the past couple months. That has happened quietly and has not hit the headlines. We have a duty to get the enterprise boards to help them, whether in trying to sustain some of those jobs, in trying to expand their services or in giving them more capital to create more jobs.

We probably all agree that small and medium sized enterprises will keep this country going over the next couple of years. We could use the enterprise boards to channel more grants into existing and new businesses. I would like to hear the Minister of State's thoughts on giving them more scope to help more companies, not only manufacturing ones, and to provide not only employment grants. I know there are partnership bodies but the enterprise boards are best positioned to help maintain and create new jobs because they know how the councils and Government works.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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I am particularly familiar with the county enterprise boards and the impact they have on local economies. The range of services they provide, including mentoring, education and training, and their co-operation with the chambers of commerce and so on should be encouraged. As I said, in the context of the current economic climate, we will look at submissions coming in from county enterprise boards in regard to the range of services and finance they offer. Their link to Enterprise Ireland strengthens their position as a player in the economy.

Within the county enterprise board structure, we are looking at the high potential start-ups which will give us the core number of companies required to improve our export targets. The county enterprise boards and the small and medium sized businesses generally are now centre stage. This is the focus of the work in the Department. The Minister, when allocating functions to the Ministers of State, asked me to specifically look at county enterprise boards. Drawing from my knowledge of the boards and my background in business I intend to encourage them to work more and more to maintain and sustain jobs and to link to Enterprise Ireland, which is doing a significant job abroad. On a recent trade mission to Mexico and Brazil, Irish companies notched up contracts worth in the region of €15 million, which is significant in the context of sustaining jobs at home. Enterprise Ireland will continue this work and create the focus and potential for the small business sector which relies on county enterprise boards and their direction.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I accept we are on the same wavelength on this matter. There are at least a couple of IDA enterprise centres in every county, but many are left empty. The Department of Enterprise, Trade and Employment is responsible for both organisations, albeit under different Ministers of State. Could there be a deal done whereby enterprise boards might make better use of unused IDA land or buildings? Perhaps the Minister of State will bear this in mind in his review, as it may be a worthwhile consideration. The enterprise boards have made good use of their land and buildings.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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The former Minister for Enterprise, Trade and Employment, Deputy Micheál Martin, replied to this question some months ago.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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Not really.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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He said the number of IDA-owned premises is reducing in comparison with recent years. There is always scope for the local authority and county enterprise board, with the local chamber of commerce, to propose plans and initiatives for vacant buildings or sites. It is important that local authorities zone the appropriate amount of land to ensure it is available for businesses. Recently in County Carlow, Merck Sharp & Dohme was attracted to a location because it had 23 acres of land and buildings available and the backing of a nearby third level facility. These facilities brought in that business. We need to examine the possible options available to enterprise boards, Enterprise Ireland and IDA to ensure we can continue economic growth and job replacement to meet the challenge of outside factors.