Dáil debates

Wednesday, 1 April 2009

Priority Questions

Departmental Programmes.

1:00 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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Question 30: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the financial support or grant aid schemes from her Department and State agencies under her aegis that are available to businesses here; the number of businesses that have applied to date in 2009 for such schemes; the number of applications that have been successful, unsuccessful, subject to payment and not processed to date for each scheme; the way in which this compares to the same periods in 2007 and 2008; and if she will make a statement on the matter. [13741/09]

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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My Department, primarily through our enterprise development agencies, funds a range of enterprise support programmes and initiatives aimed at assisting businesses to grow and maintain jobs in Ireland.

At any given time, Enterprise Ireland has approximately 3,300 active client companies. Supports to these companies include funding for exploring new opportunities; high potential start-ups; research and development; capital assets; management development; the growth fund; and innovation partnerships and the innovation voucher scheme. Funding is provided for local business infrastructure, including through the community enterprise centre scheme. In addition, Enterprise Ireland operates a number of programmes that provide direct supports to companies with the purpose of transforming research and development activity in enterprises under our strategy for science technology and innovation for the period 2007 to 2013.

IDA Ireland offers a range of grants as part of the marketing strategy of the agency to attract foreign direct investment into Ireland. The four main types of grant offered by IDA Ireland to its clients are employment grants, fixed-asset or capital grants, research and development grants and training grants.

Financial support is provided by Shannon Development to companies investing in or relocating to Shannon. In addition, the county and city enterprise boards, CEBs, support individuals, firms and community groups provided that the proposed projects have the capacity to achieve commercial viability. The CEBs deliver a series of programmes to underpin this role and provide both financial and non-financial assistance to a project promoter. The forms of financial assistance that are available, subject to certain restrictions, include capital grants, employment grants and feasibility study grants. InterTradeIreland – the North-South enterprise body — also provides business support programmes under two broad headings, namely, sales and marketing supports, and science, technology and innovation supports.

My Department funds the FÁS competency development programme, which provides financial support for the up-skilling of employed people and in particular low-skilled workers and managers of SMEs. Further enterprise supports are delivered through the national training fund, Skillnets, disability supports and through our work-life balance initiative. All these are funded through my Department.

With regard to the detailed statistical data sought by the Deputy, my Department has not been able to collate all the information in the short time since the question was tabled. In that regard, the allocation of grants to individual businesses is a day-to-day matter for the agencies themselves. However, I am arranging for the information to be collated and made available to the Deputy at the earliest possible opportunity.

3:00 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I thank the Minister of State for his reply and look forward to the data. I was hoping the Minister of State might be able to tell me about proposed new schemes but they may be announced in the budget next week. We need new schemes and businesses need new forms of help.

The Minister of State said FÁS is under his Department and that training is provided to businesses and business managers. Word went out from regional managers yesterday that there will be no additional funds this year for FÁS training for businesses. Can this be confirmed? The training providers are very annoyed and small businesses contacted me yesterday on this matter. If it is true that there are to be no additional funds, it is disgraceful. The managers are being told they can only spend on their training programmes money that was committed last year. That seems to be very serious. Will the Minister of State comment on this today or revert to me at another time?

Businesses are under immense pressure. Enterprise boards received additional funds, which I accept, but they need more. They have now been told that there could be a delay in receiving the funds and that they may have to seek approval from the Department of Finance if they approve a project at board level.

How many grants have been paid? There are unnecessary delays in making such payments to businesses. I urge the Minister of State not to support the requirement that every small capital grant for employment will have to be signed off by the Department of Finance. We need fast decisions and money to be made available quickly. I had hoped the Minister of State would speak about making available more grant money for businesses to employ people. This involves a cross-over with social welfare. If a business needs a person for one or two weeks' work, much red tape and paperwork is involved in taking people off the dole, putting them to work and putting them back on the dole again. Can the Minister of State invent a scheme to facilitate a business which wants to employ people for a number of weeks but cannot guarantee them full-time work which will make it simpler to take people off social welfare, provide them with work and let them go back on social welfare? It is wrong when there is work to be done that people cannot do it because it is too awkward and involves too much red tape or that they lose out. Can a new scheme be introduced to straighten this out?

It is a very serious matter if FÁS has no money for training. The Minister of State will probably tell me that training is going to unemployed people but businesses still need training and so do managers. On numerous occasions here I have stated that they need professional help and advice and business coaching to get their businesses through these tough times. Do not pull this plug on small businesses.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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Many of the questions asked by Deputy English relate to the budget.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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No, they do not. They are related to my question.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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The Deputy should relax. I will answer him if he gives me a chance.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I care about this.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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Allow the Minister of State to answer.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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Many of the questions Deputy English asked about innovative new schemes are part and parcel of the discussions about the budget and he will receive the overall answer on these schemes on budget day.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I was told that in October.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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With regard to money already allocated, Enterprise Ireland has €291 million and it is dealing with it in the normal course of events. With regard to the IDA, this time last year the payout was €3.1 million as against its budget of €74 million. This year it is €5 million against its budget of €75 million. The enterprise boards have had an increase so let us acknowledge it.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I acknowledge that, but what about payment of it?

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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I share Deputy English's concern that approval for proposals in the schemes are on hold until budget day. While businesses are under pressure, they must work with the Government and understand what we are about so we can put a shape on the finances. On budget day we can deal with these issues through a short-term measure.

With regard to training, if the county enterprise boards obtain approval for training it is in principle and they must wait for the finance department to clear it. Again, this is a short-term measure and will be dealt with in the context of the budget. FÁS is the same.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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Yesterday, a regional manager stated that it is not a short-term matter and that no money is being allocated for training for businesses.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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That is not true.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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That is what we are being told.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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Is Deputy English speaking about county enterprise boards?

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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No, I am speaking about FÁS.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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I stated that FÁS would be dealt with in the budget.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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It is not as simple as that. Word went out yesterday that no new money is available for training or up-skilling people in business. Is this true? It is a serious matter.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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Time is up for this question but the Minister of State may reply.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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All programmes are being reviewed and there is no question about this. The Cabinet is dealing with in the context of the budget which will be announced by the Minister for Finance. I cannot give the Deputy a direct answer by stating that funding has been withdrawn.