Dáil debates

Tuesday, 15 April 2014

Ceisteanna - Questions - Priority Questions

Local Enterprise Offices Remit

2:30 pm

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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101. To ask the Minister for Jobs, Enterprise and Innovation the progress being made to establish the local enterprise offices, if they will have a role in respect of the promotion of women entrepreneurs and local tourism projects; the way their role can be enhanced over and above the work done by county enterprise Boards; and if he will make a statement on the matter. [17570/14]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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The transition period from county enterprise boards to local enterprise offices, LEOs, is underway. I want to tease out the role of the LEOs. What will be their remit? I tabled a Parliamentary Question on 25 March 2014 and the response was pretty poor.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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Today is a milestone as 31 local enterprise offices, LEOs, throughout the country are open for business. The LEOs represent a transformation of the support structure for micro and small enterprises across every county. The new service means that national enterprise policy and local business supports have been brought together to strengthen the local business culture and environment combining the best of the former county and city enterprise boards and the local authorities overseen by the centre of excellence in Enterprise Ireland.

The new service means that national enterprise policy and local business supports have been brought together to strengthen the local business culture and environment, combining the best of the former county and city enterprise boards and the local authorities, overseen by the centre of excellence in Enterprise Ireland.

The 31 LEO offices are now the local hub for enterprise support and will deliver not just the existing range of supports that were available from the city and county enterprise board network, but in addition will provide the following: an enhanced advice and guidance service embracing all other local and national supports, backed by protocols relating to information exchange, mutual contacts and client referrals with other key agencies, including the Revenue Commissioners, the Department of Social Protection and the Credit Review Office; seamless progression of clients to Enterprise Ireland; direct referral to the Microfinance Ireland and loan guarantee schemes; and direct advice and guidance on local authority rates, procurement and regulations affecting business. They will have a particular mandate to promote entrepreneurship among groups who represent untapped potential including both women and young entrepreneurs.

The new model of enterprise support offers new ways to enhance the service. Guidance and direction will be provided by the centre of excellence in Enterprise Ireland to develop best practice ideas for the LEO network and to promote innovation among LEOs at local and regional level. Individual service level agreements between Enterprise Ireland and each local authority will offer a framework for periodic review to ensure that impact and value for money are being optimised via the LEO network. The partnership with local authorities offers the opportunity to use the considerable scale and reach of the local authorities to promote entrepreneurship. A larger LEO system supported by 170 dedicated staff as well as a further 40 local authority liaison staff will provide enterprises with very practical opportunities. Additional funding of €3.5million will be provided and a new graduate recruitment programme will take place shortly.

While the existing eligibility criteria for direct financial assistance - micro-enterprises with 10 employees or fewer - will carry forward to the LEOs, the availability of soft supports such as training, mentoring, advice, aiding access to finance and so forth will be expanded and will include local tourism projects.

2:40 pm

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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Will the LEOs continue the work of the county enterprise boards, which were pioneers for encouraging female entrepreneurship? Will they be able to roll out programmes and grant-aid specific programmes aimed at attracting female entrepreneurs? The early-stage rate among men is 10.3% compared to 4.2% for females. The county enterprise boards were the leaders in that area for many years. Will the new LEOs be in a position to do that or will that be in the remit of Enterprise Ireland?

At the end of his response the Minister briefly mentioned tourism. What will be the specific role of the LEOs with regard to tourism? Will they be in a position to offer training or to grant-aid tourism projects? Will they be in a position to work with communities in economic units in the same way the county enterprise boards did?

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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In response to the Deputy's last question on tourism, the answer is "Yes". Fáilte Ireland is the State agency charged with supporting the tourism sector but having said that, any viable business proposals, including those connected with the tourism sector and which fulfil the normal eligibility criteria for financial aid or soft supports, may have access to LEO funding. The LEO functions will rest legally with Enterprise Ireland, incorporating work with both women and young entrepreneurs, which is the key. The bulk of the 61,000 new jobs created in the last year were generated by companies which are less than five years old. The Minister for Jobs, Enterprise and Innovation will retain responsibility for policy. The LEOs will operate as part of the local authority structure in terms of administration, code of conduct, management and financial management. An evaluation and approval committee will be established in each LEO consisting of a chair, city or county manager, a representative of Enterprise Ireland and five local individuals with specific areas of business expertise. This will be very much a one-stop-shop for business, incorporating every aspect of business. It will facilitate female entrepreneurs and others. There will be clear evaluations for businesses on how they can deal with rates and the stacked-up costs of business. They will have autonomy from June next with the local authorities.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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To focus again on my question - what role will the LEOs specifically have with regard to female entrepreneurship or will that be the remit of Enterprise Ireland? Will the LEOs be able to roll out programmes and give grant aid and training? On tourism, the Minister of State mentioned Fáilte Ireland which has moved away from training provision. We have a shortage of chefs in this economy. Will the LEOs be in a position to offer training? I ask the Minister of State to focus specifically on female entrepreneurship in his response.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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Currently the issues of women in business and female entrepreneurship are receiving a lot of attention through the European network office. I have attended several functions on women in business. Women are entitled to get the same support from the local authorities as anybody with a business idea.

For the first time ever, we have a seamless approach from Enterprise Ireland, including expertise which will be embodied in local authorities. As the Taoiseach has said, this is about jobs. We are not distinguishing between men and women in business. We are talking about jobs and entrepreneurship, which are the future. To answer the Deputy's question directly as to whether there will be supports for women entrepreneurs in each local authority, yes, there will be.