Catherine Murphy (Kildare North, Independent)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Jobs, Enterprise and Innovation his views on the closure of an ocean energy research company (details supplied) in County Kildare which had received funding from Enterprise Ireland; and if he will make a statement on the matter. [18359/13]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As Minister for Jobs, Enterprise and Innovation, I regret any job losses. It is an unfortunate reality that businesses can find themselves in difficulty for a wide range of reasons. The company in question was an ocean energy research project in the pre-commercialisation stage of development. The Deputy will be aware that policy responsibility for energy research falls within the remit of the Department of Communications, Energy and Natural Resources.

The ocean energy development unit established in the Sustainable Energy Authority of Ireland in 2009 is charged with co-ordinating the relevant activities of State agencies and initiating other measures to promote and develop this sector.

Companies in the early stage development of ocean wave energy projects are assisted by the SEAI. Where appropriate, Enterprise Ireland works with its colleagues in the SEAI to assist companies in the commercialisation of a validated technology. In such cases, Enterprise Ireland's role is to assist the promoters to develop their business proposition, including their funding strategy, and make introductions to Irish and international seed and venture capital funders.

I understand from the Department of Communications, Energy and Natural Resources that the SEAI was liaising directly with the company prior to its closure. I also understand Enterprise Ireland made itself available to meet the company to discuss ways in which it could be of assistance. Unfortunately, it was not possible to prevent the closure of the company.

Notwithstanding the unfortunate closure in this case, ocean energy research remains a priority area for the Government. This is reflected in the Action Plan for Jobs 2013 under which the Department of Communications, Energy and Natural Resources has committed to finalising the offshore renewable energy development plan and related strategic environmental assessment and natural impact assessment. This will provide a clear framework for marine renewable energy project development.

Catherine Murphy (Kildare North, Independent)
Link to this: Individually | In context | Oireachtas source

The company about which I am talking - Wavebob - is well known. I realise it is piloting this technology which the Minister included in the Action Plan for Jobs and Delivering Our Green Potential. Several documents have been produced by bodies connected with the Government. The NESC produced a document on the Climate Change Bill in which it stated Ireland's offshore wind energy resources offered a significant export opportunity. When we are talking about frontier technology, it is clear that it takes time to develop. Significant expertise has been built up by this flagship company. I accept that it was in the development stage, but does the Minister accept that it is very short-sighted not to retain the expertise built up in this company over more than a decade? It appears there were significant delays before the SEAI made a decision, which was part of the problem. Does the Minister also accept that the loss of this frontier technology company costs us connections with other parts of the world in which there is a significant academic input into such work? I question whether the Government is really serious about ocean or marine energy projects or whether it is just ticking boxes. We all accept that it will take time to develop such projects, but when one loses a company with more than a dozen years of experience that has been able to leverage European and US funding, in addition to Irish funding, it does not bode well for the future in terms of the focused approach required. I would like to hear about the Government's response about an area in which large numbers of jobs could be created and a new export industry could be created.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Deputy is raising a very large question in terms of the development of ocean energy resources which is, more properly, the area of my colleague, the Minister for Communications, Energy and Natural Resources. As I said in my initial reply, this sector has significant potential. It is also one in which the risk is very high. When allocating funds, any State body must do so in the knowledge that funds are limited and seek to support technologies that show the best promise. Criteria will be set for the allocation of funding. In this case, funding was provided for Wavebob by the SEAI and Enterprise Ireland - over €1.8 million was invested in the project. It is not the case, therefore, that there was no willingness to support it during the development phase. From my Department's perspective, a commercial business plan must be presented before Enterprise Ireland would be willing to make a further investment.

That is the ultimate test. Many technologies are being tested and developed and in some cases are in successful test-beds. The development of a coherent strategy for ocean technologies is about seeking to create an environment in which technologies can be tested. However, this does not mean every single case can be successfully supported in all circumstances. While it is regrettable that this case did not meet the criteria for the allocation of additional funding, this is inevitable in an area such as ocean technology in which the technologies are wide-ranging and the risks are clearly very significant.

Peter Mathews (Dublin South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

That was a good question, but we have run out of time and must move on to other questions.