Dáil debates

Thursday, 9 June 2011

Priority Questions

Enterprise Support Services

5:00 pm

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Question 2: To ask the Minister for Jobs; Enterprise and Innovation if he has a State wide policy for small business; if he has developed a State wide comprehensive entrepreneurial development programme; and if the necessary funding is in place until the end of this year to meet the grant funding demands of viable start-up businesses. [14997/11]

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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I thank Deputy Tóibín for raising this important question. Small and medium enterprises are central to our economy. My appointment as Minister of State with responsibility for small business is confirmation of the Government's commitment to this sector. The programme for Government outlines several measures which the Government will take to assist small and medium enterprises with a view to maximising their potential in the context of economic recovery. These measures build on the existing enterprise supports available to small business.

Support nationally and locally for micro-enterprises, small businesses and new start-ups is provided by my Department through the wide range of assistance offered by the County and City Enterprise Boards, CEBs, and Enterprise Ireland. The role of the County and City Enterprise Boards is to provide support for micro-enterprises in the start-up and expansion phases, to promote and develop indigenous micro-enterprise potential and to stimulate economic activity and entrepreneurship at local level. The CEBs deliver a range of tailored programmes and supports to fulfil this role. CEBs are required to give priority to enterprises in the manufacturing or internationally traded services sector which, over time, may develop into strong export entities and graduate to the Enterprise Ireland portfolio. This is done through the provision both of financial assistance in the form of grants and non-financial assistance in the form of business advice, training and mentoring. The Exchequer allocation for the county enterprise boards in 2011 amounts to €27.242 million, of which €15 million is available for direct grants and training, mentoring and advice services to micro-enterprise clients. This represents a strong investment in the micro-enterprise sector.

Beyond the micro-enterprise sector, Enterprise Ireland operates a range of enterprise supports which provide participants with the business skills, contacts, mentoring and support potentially to transform their innovative ideas or technologies into exporting businesses. Under the auspices of Enterprise Ireland, the Government has also invested significantly in the broader environment for business start-ups, including investment in incubators, seed and venture funds, angel networks and mentors. More than 90% of Enterprise Ireland's company clients are small and medium-sized enterprises. Enterprise Ireland works with companies to strengthen their business plans, build their leadership and management capability, connect them for opportunities with overseas buyers and researchers, and provide them with access to finance.

Additional information not given on the floor of the House.

Funding of more than €213 million is available to Enterprise Ireland in 2011 from my Department's Vote to support companies, including through research and development grants and collaboration with third level institutions. The allocations both to the county enterprise boards and Enterprise Ireland are very significant, especially in the context of the pressures on the public finances. It is a matter for each agency to determine how they will respond to client demand and allocate funding to clients during the year.

In addition to these agency supports,the Government is developing a temporary targeted partial credit guarantee scheme and a micro-finance fund, both of which will be designed to help viable businesses at start-up and expansion stages. Other measures, such as the halving of employers' PRSI costs for employees earning less than €356 per week and the announced reduction in the 13.5% VAT rate to 9% are designed both to assist small and medium-sized enterprises and to stimulate consumer spending.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Through my engagement with enterprise stakeholders throughout the State in recent months I have seen the fear among them that the Government may not have bought into the idea of entrepreneurship and that policy is not being generated around the needs of entrepreneurs. There is also concern regarding the transfer of enterprise responsibilities from Údarás na Gaeltachta, for example, to Enterprise Ireland, which will dilute the focus on jobs going into places like Carna, Gweedore and Dún Chaoin. It is difficult enough to get Enterprise Ireland to create jobs in Meath, never mind these more peripheral parts of the State.

I accept there is a comprehensive structure in place in terms of assisting enterprise. However, in my county, for instance, there are no funds remaining for feasibility study grants for people who want to set up businesses. The money for the year is gone and it is only June. Does the Government have a plan to facilitate the needs of entrepreneurs? There is €100,000 in grant applications in the pipeline, which equates to approximately 20 jobs, all awaiting funding allocation.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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The Government certainly acknowledges the importance of entrepreneurship, as indicated by my appointment as Minister of State with responsibility for small business. We fully recognise and support the role of the 250,000 small companies in the State which employ 700,000 people. The Government is devising a clear and direct plan for small enterprises which will work with third level colleges and will recognise and support talent. A focused plan will be agreed by Government in the coming weeks which will directly benefit and support small businesses, sole traders and companies employing one or two people.

The main task of this Government is to kick-start the domestic economy, and we fully recognise the role of small companies and entrepreneurs in that regard. I will deal with the allocation of funding in my response to a later question, but it is about ensuring value for money for the supports we provide. County enterprise boards have been very effective in terms of supporting and recognising incubation facilities at third level colleges and so on. The Government's plan fully recognises the role of entrepreneurship in kick-starting the economy.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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On a related topic, I received a letter from the Office of the Ceann Comhairle during the week informing me that two questions of mine had been disallowed. These questions related to certain pre-election promises of the parties of Government and whether they would be implemented. The letter stated, "The Minister has no official responsibility to Dáil Éireann for these matters." As a person with a mandate to represent the people of Meath West, I am entitled to ask questions of a Government which ten weeks ago made promises with regard to investment in enterprise. It is a serious indictment of the Dáil system that these questions cannot be put to the relevant Ministers.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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The incentives for employers introduced by the Ministers, Deputies Bruton and Noonan, represents the first down payment in the Government's jobs initiative. We are not yet 100 days in government but we have made clear our intention to fulfil the undertaking we gave in the election to deliver to local enterprise, to create hubs where people can avail of support and benefits. We will devise a clear plan for every county and region in regard to both micro enterprises and larger companies which employ more than ten people. It is disingenuous of the Deputy to claim we have failed to deliver in this regard. Unlike the previous Administration, we have an understanding, concern and respect for small companies and will produce a detailed strategy for connecting with and supporting people who have talent and entrepreneurial skill.