Willie O'Dea (Limerick City, Fianna Fail)
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Question 4: To ask the Minister for Enterprise, Trade and Innovation the extra funding he will make available to the Industrial Development Agency, Enterprise Ireland, Science Foundation Ireland and the county and city enterprise boards between 2011 and 2015 to enable these agencies to expand their activities. [10088/11]

Richard Bruton (Dublin North Central, Fine Gael)
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For the current year 2011, a total allocation of just over €631 million has been provided in funding for the IDA, Enterprise Ireland, Science Foundation Ireland and the county enterprise boards. This allocation comprises both current and capital funds and is provided for ongoing agency activities, including the attraction of foreign direct investment, enterprise development and support programmes, the development of science and technology programmes and promotion activities of these enterprise agencies.

These enterprise agencies have a crucial role to play in supporting economic recovery and driving sustainable employment growth in the years ahead. They will support the enterprise base from micro-scale enterprise to the largest multinational and help our enterprises build a competitive edge to compete in the global market place.

I am determined that every euro spent by these agencies is achieving the maximum possible impact in pursuing the central Government objective of maximising employment opportunities. I am examining all programmes and priorities to evaluate their performance in meeting this challenge. The Exchequer allocations to the respective agencies cited by the Deputy in his question for 2011 are as follows: the IDAhas been allocated €124.577 million, of which €86 million is capital and €38.577 million current funding; Enterprise Irelandis in receipt of €304.482 million from my Department, of which €203.89 million is capital and €100.589 million current funding; Science Foundation Ireland has a budget of €175.142 million, of which €160.8 million is capital and €14.342 million current funding; and county enterprise boardshave been allocated €27.242 million, of which €15 million is capital and €12.242 million current funding.

The Government has announced that it will undertake comprehensive spending reviews of existing capital and current spending in the months ahead and consequently allocation of funding for future years, 2012-15, will be considered as part of that process. The purpose of the review is to find efficiencies, to undertake reforms and to align spending with the priorities set out in the programme for Government. My Department will be fully engaged in that spending review. The activity and expenditure of enterprise agencies will be examined by my Department in the context of the expenditure review and the findings will determine the level of future funding.

It would be my aim to provide the level of support necessary to enable the enterprise agencies deliver on their remit to help enterprise to flourish and provide sustainable jobs.

Willie O'Dea (Limerick City, Fianna Fail)
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I thank the Minister for his response. He seems to be saying that these agencies will not be exempt from the general spending review, which I accept. However, that would indicate that the rate of spending on those agencies is not going to increase, indeed it is possibly going to decrease. How does the Government hope to achieve its optimistic job-creation plans if it is possibly reducing funding for the very agencies on which we depend to create jobs, including attracting foreign investment?

The Minister will be aware that last year, for example, the IDA created approximately only 1,300 jobs in net terms. The record over the last four years shows that these enterprise agencies lost about 50,000 jobs more than they created, so in net terms that was a job creation record of minus 50,000. I am not underestimating the difficulties they have had nor the tremendous work they have done but nevertheless I fail to see how these agencies will do their job if neither funding nor resources are being increased. The Minister wants them to do a better job but how can they do so with less?

Today it was announced that there will be a €3,000 finder's fee for members of the diaspora who come up with ideas that will create jobs that last for at least two years. Will that fee be included in the budget for those agencies and, if not, what budget will it come from?

Richard Bruton (Dublin North Central, Fine Gael)
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We have inherited a situation where spending is running 40% higher than the revenue we are taking in.

Willie O'Dea (Limerick City, Fianna Fail)
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I accept and understand that.

Richard Bruton (Dublin North Central, Fine Gael)
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Therefore the need for a comprehensive spending review, including an examination of every programme, has not been created by this Government. With the greatest respect, I must tell the Deputy that the policies pursued in recent years destroyed competitiveness in the economy. The previous Government saw exporting market share fall consistently for six years in a row. It built up unsustainable spending programmes on the basis of revenues that could not last and it undermined the competitiveness of businesses that we are now looking to rebuild our future.

To focus on how much we spend on these agencies is part of the problem of the last Government. We must now ensure that any spending gets maximum impact, which is my first priority. Of course, I will be seeking to expand every programme that is delivering high performance. My Government colleagues, who have set jobs as their top priority, will support that. It does not mean, however, that every programme is immune from scrutiny just because it is under the rubric of an enterprise agency. We must get the best value from them. Perhaps there was not enough scrutiny of the performance of different programmes in the past, but we cannot afford that any more.

The pilot scheme will have to be funded but, as the Deputy knows, these would be normal IDA supports where the return is something like 14 to one in terms of the cost benefit. It is a handsome return to the State.

Willie O'Dea (Limerick City, Fianna Fail)
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Will the Minister accept that there has been a substantial improvement in competitiveness in recent times, as well as a substantial improvement in our export performance, as a direct result of the policies of the previous Government?

Does the Minister definitely intend to transfer the functions of county and city enterprise boards to local authorities?

Richard Bruton (Dublin North Central, Fine Gael)
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The Deputy is raising a different point there.

Willie O'Dea (Limerick City, Fianna Fail)
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It is a fair question.

Richard Bruton (Dublin North Central, Fine Gael)
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Export performance is improving, but it is effectively doing so on the back of superhuman efforts by companies that are competing in a market where the price of their exports is falling. There has been substantial cost cutting and less is being paid for labour across the board. People have become more competitive and more resourceful, but the contribution of Government policy to that would not be the main feature. There has been a common approach to developing export capacity. Nonetheless, the previous Government was in office for 14 years and only 10% of our exports come from indigenous industry. We have not made the breakthrough to having a sustainable business engine from indigenous sources. We must closely examine how well we are doing in indigenous enterprises. Some sectors are doing well but the aggregate suggests there are grounds for improvement.

We are examining the county enterprise boards issue both with the Minister for the Environment, Community and Local Government and my own Department's Minister of State, Deputy John Perry, who has responsibility for small businesses. We are examining the best way to provide coherent and effective enterprise support at local level. We will bring forward decisions in due course.

Willie O'Dea (Limerick City, Fianna Fail)
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Is it the case that there has been no final decision to transfer the county enterprise boards to local authorities?

Richard Bruton (Dublin North Central, Fine Gael)
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No, but the programme for Government suggests that there will be a local business unit wherein there will be an integrated one-stop-shop approach. We would hope to find a way to deliver that effectively.