Brian Stanley (Laois-Offaly, Sinn Fein)
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To ask the Minister for Jobs, Enterprise and Innovation his views on whether local government or existing enterprise agencies are best placed to promote local economic development. [9408/13]

John Perry (Sligo-North Leitrim, Fine Gael)
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The micro and small business sector is central to Ireland’s overall economic recovery. The purpose of restructuring the current model for the delivery of State supports to that sector is to rejuvenate and enhance the national model. The new model is designed to harness the best elements of local government and the enterprise agencies to support local business and contribute to local development.

To that effect we have decided to dissolve the current 35 separate board structures and create a first-stop-shop at local level for small and micro business. We will bring local enterprise support into an integrated national network of Local Enterprise Offices, LEOs, offering progression to the existing national programmes run by Enterprise Ireland. The plan is to combine enterprise support for small business at local level with the business support service from local authorities into a single LEO and locate this office within local authorities, but operating under a service level agreement with Enterprise Ireland. We will enlist the support of local authorities in creating the best possible environment for small business in their area and benchmark the progress being made. Furthermore, we will work with local business and the wider community to create a supportive network for entrepreneurship.

While I am aware that there are some reservations about bringing the current county enterprise boards within the umbrella of the local authorities, I believe local authorities have great potential to be a vibrant partner for the development of small business. Many local authorities have been very innovative in providing space for start-ups, opening up procurement opportunities, supporting the marketing of local producers, offering incentives, streamlining access to planning and licensing and so forth. However, this is a challenge for the local authorities to do more and to bring the culture of “think small business first” into their work.

The Minister, Deputy Bruton and I have consulted widely in the context of this proposed reform. On foot of a consultation paper we published at the end of last year setting out the road map for the implementation of the reform process, more than 80 submissions were received. Many of the submissions make positive suggestions on how the reform could be rolled out effectively across a range of issues. These responses are currently being examined and will be factored into shaping the operational scope of the LEOs.

Both the Minister and I view the reform as an important opportunity to get a combined effort in behind start-ups and small business and we shall vigorously work to harness the potential of the new model.

Brian Stanley (Laois-Offaly, Sinn Fein)
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I thank the Minister of State for his reply. The changeover from the county enterprise boards system is a substantial move. I agree that some local authorities, including my own in County Laois, have been very active in the areas of job creation and assisting small employment projects through the development of enterprise centres and other supports. The concern is that there seems to be some opposition to this proposal from the SME sector and from ISME and the SFA in particular. They have publicly opposed this and expressed their belief that there is not the expertise within local authorities to propel economic development. They have also expressed a concern about political interference with business supports.

There has been a consultation process but that is now over. Is there a turf war going on and is that causing problems? Has enough work been done with the small business sector to get the message across that this proposal will actually work?

John Perry (Sligo-North Leitrim, Fine Gael)
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This must work because the whole economy depends on the "think small first" principle and the role of small business in every economy is absolutely critical. Intensive consultation is ongoing with all of the vested interests. I have chaired the advisory group on the role of small business in the economy and genuinely believe that all of the expertise in the 35 enterprise boards will be retained, which is critically important. There is much expertise within local authorities in terms of business evaluation and so forth. I know some are concerned about involving local government in this but I think it makes huge sense. We are talking about putting all of the services together in a one-stop-shop facility. That will involve local evaluation of the projects and the expertise of the county and city enterprise boards will still be there.

Change is not a bad thing in itself. When one looks at the service level agreement with Enterprise Ireland one sees that rather than having separate autonomy in every county, there will be joined-up thinking and the best practices within the local authorities will be front of house. If somebody in Laois wants a service, he or she can go to the local enterprise office and get advice on starting a business, banking applications and so forth. The opportunities for business development are enormous, especially with the involvement and commitment of established business people.

I genuinely believe that we are integrating the knowledge into a one-stop-shop that can only benefit the development and roll-out of new companies as well as the expansion of existing companies.

Brian Stanley (Laois-Offaly, Sinn Fein)
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The Minister for the Environment, Community and Local Government recently suggested that tensions exist between State agencies and Government Departments over this proposal. Is there tension and has it been resolved?

John Perry (Sligo-North Leitrim, Fine Gael)
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I can assure the Deputy that there is no tension whatsoever. All of us in government and in every State agency have one motivation - to get Ireland back working again. That has been my experience in my dealings with civil servants. They are totally committed to getting people back into business and I am very encouraged by that. What the Deputy is referring to is only hearsay.

The best evidence of our commitment is that we plan to roll it out as quickly as possible. I look forward to going to County Laois myself to launch it.