Joe McHugh (Donegal North East, Fine Gael)
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I want to address two themes. The first is the need for greater co-operation between northern and southern enterprise agencies and the second is the need to develop Ireland's high-end small to medium enterprise sector as a path out of recession.

Since this House resumed after last summer's recess I have mentioned the Comprehensive Study on the All-Island Economy on numerous occasions. That study supplements the Good Friday Agreement. it is a long and detailed document and was jointly written by the then Minister for Foreign Affairs, Deputy Dermot Ahern and the Secretary of State for Northern Ireland at the time, Peter Hain, M.P. It must have cost the British and Irish Governments many thousands to publish. Since November 2006 it has been completely ignored and the acronym, SPOTS, strategic plans on top shelves is very apt.

The study states: "Companies should be encouraged to treat Ireland as one commercial zone rather than two separate entities". Specifically it notes that, "Enterprise Ireland and Invest NI offer a wide range of programmes, providing largely parallel supports to SMEs on both sides of the Border". This is the case of Enterprise Ireland versus Invest NI and the case I am putting on the floor of the House tonight indicates a big anomaly, which puts companies on this side of the Border at a comparative disadvantage.

Enterprise Ireland and Invest NI offer different packages to small to medium sized exporters. A successful company, whose name I shall give the Minister of State after this debate, has been offered a full grant aid package by Invest NI. Enterprise Ireland refuses to provide a grand aid package and is only offering equity support. Therein lies a need for consistency.

The Good Friday Agreement is not just about peace in Northern Ireland. It envisaged an all-island economy and Ireland as one commercial zone. Ireland's membership of the eurozone and Britain's commitment to its traditional sterling currency prevent us from developing a genuine all-island economy, but we can address some of the less fundamental differences, including this one. In November 2006 both jurisdictions bought into the comprehensive study's notion of a bilateral agreement. This country will only emerge from recession if we develop an economy of small to medium exporting companies.

In the case before us we have a company that can generate €5 million in export revenue for Ireland and ten high quality jobs can be created with the right support. The company wants to locate itself in Moville, County Donegal. Given our regulations, this highly mobile company which has already located from India and the USA can very easily locate itself 20 miles from Moville in Derry city. Successful companies cannot afford to give away equity. As Enterprise Ireland has designated this company HPSU, high potential start up, we need to get our house in order.

Dara Calleary (Mayo, Fianna Fail)
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I thank the Deputy for raising this matter on the Adjournment. The comprehensive study on the all-island economy was commissioned by the British-Irish Intergovernmental Conference and was completed towards the end of 2006. This blueprint for all-island economic co-operation set out the economic rationale for North-South collaboration, as well as concrete proposals for economic initiatives. The case for an all-island approach is made where market failure arises from the existence of the Border or where public goods and services could be more efficiently produced on a co-ordinated basis.

In the area of enterprise, the study identified a number of areas where co-ordinated policy intervention could prove beneficial to both jurisdictions on this island. These included co-operation on trade and investment promotion, enhanced co-operation in support of enterprise and business development and an improved regulatory environment. This latter aspect included the signing of a memorandum of understanding between Enterprise Ireland and Invest Northern Ireland concerning international trade missions or fairs. Enterprises from either jurisdiction can participate in selected events organised by both agencies. The memorandum of understanding provides a practical and sensible approach to enabling companies North and South to benefit from the overseas trade activities of both organisations.

The clients of Enterprise Ireland and Invest Northern Ireland are faced with similar challenges regardless of where their operations are located on the island. There are issues with regard to small size, openness, peripheral geographical location, skills needs, pressure on infrastructure and in the area of developing world class research and development structures for the knowledge economy. However, the Irish Government and the Northern Ireland Executive are working together to ensure that the potential for development is exploited and, in keeping with this goal, Enterprise Ireland's approach is to work in partnership with Invest NI and InterTradelreland in an effort to maximise the benefits to all their clients.

For example, Enterprise Ireland and Invest Norther Ireland ran a cross-Border enterprise incubation programme - the transform programme - which commenced in September 2007 with 43 participants from both jurisdictions. This was a ten-month, full-time programme for potential entrepreneurs who wished to set up a new export-orientated knowledge intensive business. The programme covered the six counties in the Border region of the Republic and the six in Northern Ireland. It concluded in August 2008 and more than 60% of the businesses involved are still trading successfully.

In April 2009, the two agencies launched a new initiative, the propel ideas into business programme, which is a follow-on from transform programme and which is strongly supported by the Special EU Programmes Body. This is a major business innovation and development programme, geared towards producing up to 12 new start-up companies in the Border counties. It targets entrepreneurs who have ambitious business ideas with the objective of putting them through an intensive business development programme to make their projects investor ready.

Meetings involving the boards of Invest Northern Ireland, IDA Ireland and Enterprise Ireland have taken place on an annual basis. In addition, regular contact is maintained at executive level. Enterprise Ireland and IDA Ireland have participated in an interagency forum with colleagues from Invest Northern Ireland, InterTradelreland and Enterprise Northern Ireland. This represents an important opportunity to set out the strategy of Enterprise Ireland and IDA Ireland in working to address the common challenges and opportunities posed by the development of the all-island economy and to participate in an active discussion with relevant agencies.

InterTradelreland has a central role to play in assisting businesses North and South in tapping into the all-island marketplace. The body is implementing a wide range of North-South programmes which provide opportunities for businesses to improve their competitive performance.

In so far as Enterprise Ireland is concerned, financial support is tailored to the requirements of individual companies on the basis of clearly demonstrated need. The agency has been very successful in providing financial support towards the cost of establishing, growing and expanding businesses. Enterprise Ireland funding is typically a mix of equity and grants and is specifically intended to meet expenses in the areas of research and design, job creation and acquisition of capital assets. The enterprise stabilisation fund is a recent addition to its portfolio of financial assistance. This fund was established by the Government in order to provide targeted support to indigenous companies to assist them in the exceptionally difficult business environment in which they are operating at present.

Enterprise Ireland's grant aid offers must comply with the stipulations of the European Commission with regard to state aid. Grants for industry are one instrument which can be used in order to develop enterprise and Enterprise Ireland's broad view is that the differential aid rates allowed in the BMW region have been of benefit not solely with regard to the rate of start-ups, but also in the context of the development of existing companies. Non-financial supports are available for all Enterprise Ireland-supported projects, such as access to its overseas office network for marketing-market research, technical-technology and training advice, knowledge events, seminars and specific programmes aimed at entrepreneurs, such as the enterprise start, enterprise platform, and the enterprise development programmes.

It is in the interest of all parties to continue to work together for the benefit of the all-island economy. I am confident that every effort will continue to be made in this regard.