Fergus O'Dowd (Louth, Fine Gael)
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Question 73: To ask the Minister for Enterprise; Trade and Innovation if he has satisfied himself with support for business start ups; and if he will make a statement on the matter. [36491/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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Ireland is one of the most entrepreneurial countries in the world and never has this spirit been more important. The growth and development of small Irish businesses, is central to economic recovery and it is essential that Irish enterprises continue to be supported.

My priority is to ensure that the business environment is supportive of enterprise and encourages growth in all areas of the economy including entrepreneurs in both the start-up and development phases. We are driving change across a range of policy areas, from the costs of doing business, regulation to research and development and innovation, skills and tax incentives. These all combine to foster an environment that supports entrepreneurs and entrepreneurship.

The complementary remit and activities of both Enterprise Ireland and the CEBs ensure that as broad a suite as possible of State supports are available to start-ups in Ireland. The CEBs assist micro-enterprises and are to the forefront in supporting viable business start-ups which can generate job creation at a local level. The level of activity across the entire CEB network has continued to increase during the downturn in the economy. This activity includes direct grant aid to businesses and project promoters and provision of a range of other important business supports such as mentoring, business training and business advice all of which help to stimulate indigenous enterprise creation.

Since 2004, the CEBs have supported more than 3,000 greenfield start up companies with an initial job count of more than 4,000. In addition, Enterprise Ireland supported 73 new high potential start-up companies in 2009. These companies are poised to create 900 jobs over the next three years and no doubt more in future years. We are increasing funding so that, by 2016, we will support 100 high potential start-ups each year.

In the past decade, the Government has made significant investment in developing the broader environment for start-ups. This has included substantial investment in incubators, seed and venture funds, angel networks and mentors. Enterprise Ireland also support community enterprise centres which provide a range of facilities for entrepreneurs. The establishment of Innovation Fund Ireland is further evidence of the Government's continued commitment to supporting start up companies in Ireland.

The Government has also extended the three-year corporate and capital tax exemption for new start-up companies in 2010. Firms benefit from a tax exemption for the first three years of trading. All of these measures combine to provide an environment that supports entrepreneurs and entrepreneurship.

Kieran O'Donnell (Limerick East, Fine Gael)
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I seek clarity from the Minister on the uncertainty regarding the funding of the enterprise boards. Many enterprise boards are starved of cash at present. Will further funding be forthcoming? What is the Minister's view of the role of enterprise boards from 1 January next onwards? Will they continue in operation or will they be amalgamated into Enterprise Ireland? Is the proposed bank loan guarantee scheme still Government policy and when does the Minister expect it to be introduced? A recent Forfás report stated that Irish companies were not in a position to compete internationally because guarantee schemes are in place in other jurisdictions both in Europe and worldwide.

Brendan Howlin (Wexford, Labour)
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Go raibh maith agat.

Kieran O'Donnell (Limerick East, Fine Gael)
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Finally, the Minister mentioned the three-year exemption for corporation tax for start-up companies. I was an accountant from many years-----

Brendan Howlin (Wexford, Labour)
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Please Deputy.

Kieran O'Donnell (Limerick East, Fine Gael)
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-----and the bulk of entrepreneurs are set up as sole traders, rather than as limited companies. Consequently, this tax exemption for the first three years should be extended to cater for them.

Batt O'Keeffe (Cork North West, Fianna Fail)
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The final point obviously is a matter for the Minister for Finance and the Deputy should take it up directly with him.

Kieran O'Donnell (Limerick East, Fine Gael)
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What is the Minister's own view in this regard?

Batt O'Keeffe (Cork North West, Fianna Fail)
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The Deputy has raised a number of interesting issues with which I wish to deal. One concerns the county and city enterprise boards and funding thereof. When I came into this office I asked Enterprise Ireland to undertake a trawl of the enterprise boards to ascertain precisely which projects were on hand, which projects were approved, and what was the requirement in terms of money. After an initial response from 28 of the 35 boards we have since had a full complement of replies and now know exactly what jobs are approved and how much money is required.

In line with my commitment to enterprise, I will be making an announcement in the very near future indicating clearly that I will make funding available for those jobs to be created. Before that, however, I will take the opportunity to inform each of the city and county enterprise boards individually. It is important that we support these bodies which do a valuable job in communities, encourage community enterprise-----

Brendan Howlin (Wexford, Labour)
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Several Deputies wish to contribute. I call Deputy Penrose.

Batt O'Keeffe (Cork North West, Fianna Fail)
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There is one other-----

Kieran O'Donnell (Limerick East, Fine Gael)
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What about the guarantee scheme?

Brendan Howlin (Wexford, Labour)
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The Minister must contract his answers.

Kieran O'Donnell (Limerick East, Fine Gael)
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My question was not answered.

Brendan Howlin (Wexford, Labour)
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I have no control over that matter.

Batt O'Keeffe (Cork North West, Fianna Fail)
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My time is up.

Brendan Howlin (Wexford, Labour)
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The Minister will have an opportunity to say more.

Willie Penrose (Longford-Westmeath, Labour)
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Is it likely that the number of county and city enterprise boards will be reduced? The Minister recently hinted at an amalgamation in a speech he delivered in Mallow. Second, in regard to start-ups, one of the first impositions is a State-imposed charge in the form of rates. Will the Minister give consideration to a small business rates relief scheme for start-ups based either on turnover, the size of the business unit or a combination of both?

Batt O'Keeffe (Cork North West, Fianna Fail)
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I will answer the second question first. I am anxious to reduce costs for businesses, and I acknowledge that local authority rates represent a significant cost. There is a widely held view that while the income and asset values of many small businesses have reduced dramatically, charges have not reduced as significantly as they might have done. I recently spoke to all the city and county managers about inputs and asked them to come back to me with three papers on three different issues. One of those issues is that alongside their planning role, they also have an important developmental role and, as such, it is within their remit to ensure costs are reduced. My understanding as of last Friday is that I will receive those three reports in the coming weeks. I will examine them in great detail. The review carried out in local authorities indicates clearly that there is scope for significant savings, and I am happy for that to be done.

On the Deputy's first question, I am looking at the structure of the county and city enterprise boards. I am anxious to ensure that we have a unified and synergised enterprise strategy and that all elements of it work in consort. I want to examine outputs from each entity. I am not convinced that we should have 35 private companies where the cost of auditing is €250,000 and the cost of advertising across the board is another €250,000. I would prefer that money to be invested in job creation.

Arthur Morgan (Louth, Sinn Fein)
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Does the Minister accept the concept of a one-stop shop? Entrepreneurs are generally highly competent to advance their business plans but they may have one weakness in regard to, for example, preparing business plans, dealing with payroll or handling regulatory compliance. It would be extremely helpful to have a one-stop shop that would offer this type of advice. Will the Minister consider the establishment of one-stop shops rather than having entrepreneurs going to country enterprise boards, Enterprise Ireland, the Leader programme and so on?

Batt O'Keeffe (Cork North West, Fianna Fail)
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I am taking everything into consideration and, as I said, I will take this matter to Government in the next two weeks. Ultimately, however, it is a matter for Government to decide.

Brendan Howlin (Wexford, Labour)
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The Minister's time is up.

Batt O'Keeffe (Cork North West, Fianna Fail)
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I have almost completed my preparations in this regard. I want it to be as feasible and open as possible for people to-----

Brendan Howlin (Wexford, Labour)
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I have called Deputy O'Donnell. I would appreciate if the Minister would occasionally pay some attention to the Chair.

Arthur Morgan (Louth, Sinn Fein)
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I will join the Minister later for a cup of coffee and we can discuss the matter.

Brendan Howlin (Wexford, Labour)
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Perhaps the Minister would like to go and have a cup of coffee now, or else allow me to conduct the business of the House.

Kieran O'Donnell (Limerick East, Fine Gael)
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Will the enterprise boards continue to have a local presence? The Government has already cut funding to the boards by €7 million this year. It is about getting funding to the SME sector. Will the Minister indicate precisely what form the proposed revision will take?

Batt O'Keeffe (Cork North West, Fianna Fail)
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I apologise to the Leas Cheann-Comhairle for interrupting.

Brendan Howlin (Wexford, Labour)
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Very good.

Batt O'Keeffe (Cork North West, Fianna Fail)
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I knew the Deputy was very anxious to get an answer. I will definitely retain the local input because that is extremely important. The boards would not be as effective without that local input.

Kieran O'Donnell (Limerick East, Fine Gael)
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What form will it take?

Batt O'Keeffe (Cork North West, Fianna Fail)
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That is a matter to be worked out and to be passed by Cabinet. I assure the Deputy that local input will be part and parcel of it.