Damien English (Meath West, Fine Gael)
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Question 4: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on reforming county and city enterprise boards in order that they can meet the needs of all small and medium-sized enterprises during the current economic climate; and if she will make a statement on the matter. [41200/09]

Billy Kelleher (Cork North Central, Fianna Fail)
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Our industrial policy is based on maintaining a positive business environment allied with specific targeted supports for enterprises through the enterprise development agencies. The positive business environment benefits all enterprises including all small and medium-sized enterprises referred to by the Deputy.

The supports through the enterprise development agencies are targeted at enterprises in manufacturing and internationally traded services in order to maximise export potential and foreign earnings. The availability of resources to support enterprises is limited and must therefore be targeted at those sectors that provide the best opportunity for growth. SMEs account for 99% of all enterprises in Ireland. While many of these are eligible for and receive assistance from development agencies such as Enterprise Ireland, FÁS, and the county and city enterprise boards, it would not be appropriate or financially feasible to grant aid all small and medium-sized enterprises in the country.

There are 35 county and city enterprise boards located throughout the country. The boards are the primary reference point for enterprise advice and support at local level for start-up and expanding businesses. In addition to providing financial support to local businesses the boards also provide a range of non-financial supports such as training, mentoring, information and advisory services as well as networking opportunities and enterprise promotion activities. In providing financial support the boards must give priority to manufacturing and internationally traded services, must always take account of potential deadweight and displacement, and must primarily focus on the micro-enterprise sector, which comprises businesses employing ten staff or fewer.

The overall priority for capital expenditure by the boards is on the development of sustainable growth-orientated micro-enterprises, which over time can develop into strong export entities and graduate to the Enterprise Ireland portfolio. This is a carefully balanced and structured approach to the provision of State support to indigenous industry. Eligible SMEs above the micro-enterprise level can be assisted by Enterprise Ireland where they match that agency's operating requirements.

The county and city enterprise boards have played a pivotal role in developing, sustaining and growing micro enterprise at a local level since their inception in 1993 and this sector will be crucial to Ireland's economic recovery through employment creation and the creation of new businesses. The majority of the boards are currently experiencing an increase in the volume of their activities from their current client base. With increasing numbers of people seeking advice on starting their own businesses, many boards are providing additional "start your business" courses and increased levels of mentoring for owner-managers who are experiencing trading difficulties. In addition the boards are rolling out a revised and more flexible range of financial supports for the micro-enterprise sector.

Damien English (Meath West, Fine Gael)
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While I thank the Minister of State for the reply, it is not exactly what I wanted. I believe he missed the point of my question, which I have asked repeatedly in the past 18 months. What different instructions has he given to our enterprise development agencies and bodies to cater for the problems we have now? I accept the county and city enterprise boards have done wonderful work, but there is now a change of circumstances. We need to move to protect jobs and help many of these companies to survive. The county and city enterprise boards can only help a small number of companies. Enterprise Ireland deals with approximately 3,500 companies a year and I accept that over five years that could be 15,000 companies. However, many companies are not getting help. We had a good discussion about this at a committee meeting during the week. I believe everyone agrees a large number of companies do not get help. What is the Government prepared to do differently to help those who need help? I accept that an excellent job was done in the past, but at present businesses are closing and jobs are being lost because we do not have a job-sustaining strategy. Many businesses cannot get help from anybody. What is to be done for them?

Billy Kelleher (Cork North Central, Fianna Fail)
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I do not believe the Deputy can pick out the county and city enterprise boards as the only solution to address the issues in the current economic climate. We have many other proposals that have been highlighted in the previous replies to other Deputies' questions. We have the employment subsidy scheme which is being expanded and will, I am sure, show a marked improvement in the uptake. The county and city enterprise boards are very flexible as it is. They can respond to the existing needs.

Damien English (Meath West, Fine Gael)
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No they cannot.

Billy Kelleher (Cork North Central, Fianna Fail)
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For example, they provide considerably more mentoring and advice to start-up companies. They are engaging with a broader group of people than heretofore. The purpose of the county and city enterprise boards is to assist in start-ups to the stage of viability and after that they expand and can come under the scope of Enterprise Ireland if they exceed ten employees. In general the county and city enterprise boards have responded quite quickly to the difficulties. There has been a marked increase in the demand for the services of the county and city enterprise boards through mentoring, advice and seminars on start-ups and the grants available. Údarás na Gaeltachta, Leader and many other agencies are also equipped to give assistance and advice to small and medium-sized enterprises.

Damien English (Meath West, Fine Gael)
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To clarify, I am not asking why county and city enterprise boards were set up. I was a member of my local enterprise board and am very much aware of the great work they do. What I am asking is that the Minister of State and his colleagues give consideration, before the budget, to the need to expand the remit of enterprise boards and other bodies in order to cater for the thousands of businesses which cannot, under the current guidelines, access help or which are falling between stools. Will the Minister of State seek to develop other means by which such companies can be supported and the jobs they provide be protected? The two existing employment support schemes are insufficient to meet the need that exists. We must have new ideas and new momentum in this area. I propose that we amend the remit of the enterprise boards to include job protection in all the various sectors.

Billy Kelleher (Cork North Central, Fianna Fail)
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We have introduced changes to the employment subsidy scheme in terms of eligibility criteria, and we have moved from a focus on manufacturing to a broader remit across industry.

Damien English (Meath West, Fine Gael)
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As of when?

Brendan Howlin (Wexford, Labour)
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The Minister of State should be allowed to speak without interruption.

Damien English (Meath West, Fine Gael)
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This is important.

Brendan Howlin (Wexford, Labour)
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It is important enough that the Deputy should listen to the answer.

Billy Kelleher (Cork North Central, Fianna Fail)
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I am trying to be as helpful as possible in giving information to the Deputy. If he wanted that specific information, he should have put down a question to that effect. I am attempting to answer as broadly as I can. Regarding the county enterprise boards, it is important to recognise that their focus is to assist start-ups——

Damien English (Meath West, Fine Gael)
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I know that.

Billy Kelleher (Cork North Central, Fianna Fail)
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——and their focus is export-orientated. There is little point in us offering grant aid to a company which would have got off the ground in any case or which would displace an existing company. As I said, start-ups are the remit of the county and city enterprise boards. There are other agencies dealing with the issues raised by the Deputy and, in particular, the employment subsidy scheme has been amended to address those concerns.

Damien English (Meath West, Fine Gael)
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May I make a final point?

Brendan Howlin (Wexford, Labour)
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No, I am moving on to Question No. 5, which is another of Deputy English's questions. We are well over time on this question.