Dáil debates

Thursday, 20 November 2008

Priority Questions

Small and Medium Enterprises.

3:00 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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Question 5: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of people employed in the small and medium enterprise sector; her forecast for 12 months time; her plans to make available a new scheme to enable SMEs to maintain their current employment level; her further plans to make available a new scheme or schemes to enable SMEs expand their current employment levels, [i]vis-À-vis[/i] training and upskilling opportunities, PRSI holidays, VAT reduction and so on; and if she will make a statement on the matter. [41987/08]

4:00 pm

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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Small and medium sized businesses account for more than 97% of companies in Ireland and the sector employs in excess of 800,000 people. In my reply to the previous priority question from the Deputy I fully acknowledged the importance of the sector and my ongoing commitment to support it.

My Department and its agencies will play an important role in working through the current economic circumstances and in making sure that we are well positioned to reap the benefits that will undoubtedly arise when the situation improves. We will do this by continuing to work to attract foreign direct investment, helping Irish businesses to develop and grow their exports, by continuing to prioritise investment in science, technology and innovation and by providing supports to small businesses. We will also ensure that adequate retraining and support services are available for those who have recently lost their jobs.

The fundamental objective is to sustain and grow employment by driving investment and promoting export growth in a challenging global environment. Success in overseas markets will generate wealth that will sustain prosperity and employment throughout all parts of the country. The allocations in my Department's Estimates for 2009, particularly to the IDA and Enterprise Ireland, will ensure that we continue to build on this strategy for the future.

My Department's continuous support for indigenous companies arises through maintaining a positive business environment and through particular interventions from the State development agencies such as Enterprise Ireland, FÁS and the city and county enterprise boards. In particular, Enterprise Ireland is the agency with responsibility for supporting the development of Irish companies with ambitions to grow in world markets. Many of its client companies are small to medium in size. Enterprise Ireland recognises the varied challenges facing such companies in the context of the changing economic environment.

In addition to Enterprise Ireland, the 35 county and city enterprise boards provide support to small businesses or micro-enterprises with ten employees or fewer. CEB funding will increase next year by almost €3 million, or 9%, to €34.8 million and this represents a further indication of the Government's commitment to supporting this sector of business.

The county and city enterprise boards have developed a structure capable of generating and tapping into enterprise at local level. They have been particularly effective in their ability to respond to the needs of micro-enterprise. The 2009 allocation for the CEBs recognises the need for access to practical business information and supports for small companies, and the importance of continuing to promote entrepreneurship at this time.

FÁS, through its One Step Up programme, is encouraging employees to increase their competency levels and promoting an ethos of lifelong learning in the workplace. Its key intervention in this regard is the competency development programme which offers workers different types of training programmes directed at various skill levels across major economic sectors. These training programmes are available to employees of SMEs. FÁS also has a number of other training programmes aimed at upskilling SMEs namely through Skillnets and the strategic alliance programme. Priority is given to programmes aimed at the upskilling of low-skilled workers, these programmes, in the main, will be at or below level 5 equivalent on the national framework of qualifications.

The Government has already made very considerable progress on the implementation of the Small Business Forum's report recommendations. This progress is reflected through a substantial package of financial measures and schemes introduced to assist the sector over the last two years, including fiscal measures in the Finance Acts 2007 and 2008.

I am satisfied that the range of measures and supports provided will continue to help small to medium enterprises adapt to the current economic climate. Of course, these measures will be kept under review to ensure that they remain appropriate to the current circumstances.

Photo of Charlie O'ConnorCharlie O'Connor (Dublin South West, Fianna Fail)
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I have adapted to the needs of Deputy English so he received the whole answer.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I did not get an answer. I specifically asked about "further plans to make available a new scheme or schemes to enable SMEs expand their current employment levels" and included PRSI holidays. There was no comment on that. If the answer is that there are no such plans I should be told that. I asked for the predictions for 12 months time. I am glad to see the figures but I have had them for a long time. I want to know the predictions.

I do not want to become angry but I want to know the new schemes the Minister will try in the coming months to sustain and increase jobs. I welcome the extra money for the enterprise boards, which will make up for the money they did not have during recent months, because they need it. I asked earlier if the professional advice would be made available to small businesses on credit management and invoicing. It has been done in the UK, it is a good idea and the Minister might look into it. We have mentioned programmes with the enterprise boards which do good work, which I compliment, but we need to add to these.

Can the Minister give me a commitment to look at making professional advice on credit available to businesses? It could be very helpful. I attended a meeting last week held by a bank where an action coach, similar to a mentor from an enterprise board, spoke to 50 businesses about credit management and how to get through the tough times. It was clear that most of the businesses learned a lot from that person who armed them with information. We need to see more of that. It is something the Government in the UK has acknowledged and implemented. If the Minister cannot give an answer today, she should commit to examining the matter and if it works we should introduce it here.

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I need to outline the programmes available.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I want to hear about the new programmes.

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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These include a mentor network, the Enterprise Ireland export orientation programme, Leadership for Growth, the innovation voucher initiative and the Enterprise Start programme. There are programmes within the seventh EU framework on research and development. There is a finance and investment programme on venture capital, for which I announced an additional €500 million last week.

Other programmes include research and development technology transfer, the commercialisation fund, bench to boardroom commercialisation, Irish Research, the applied research enhancement programme and all of the city and county enterprise boards enhancement programmes, of which the Deputy is acutely aware and to which I have provided additional funding. The competence development programme, the FÁS strategic alliance programme, the Skillnets programme and the Management Development Council are also in place.

On the small business forum——

Photo of Charlie O'ConnorCharlie O'Connor (Dublin South West, Fianna Fail)
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Allow the Minister to continue.

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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We are, within the European Union, introducing a small business Act but due to the antics of the Opposition I was unable to attend a meeting on that which was a retrograde step.