Éamon Ó Cuív (Galway West, Fianna Fail)
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8. To ask the Minister for Jobs, Enterprise and Innovation the policy approach he is taking to the creation of jobs in rural Ireland; and if he will make a statement on the matter. [23811/14]

Éamon Ó Cuív (Galway West, Fianna Fail)
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It seems to me that this Government has given up on rural Ireland in that every step of the way it is taking decisions that are doing huge damage to it. I would like the Minister to outline his policies for the creation of rural industry and to say whether he believes that it is not possible to create industry in rural Ireland.

Richard Bruton (Dublin North Central, Fine Gael)
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The Action Plan for Jobs is the Government's key policy instrument to assist job creation. Its aim is to support enterprises to create employment throughout the whole of the country and in all regions. The creation of jobs in rural areas in particular can be supported by strong co-ordinated policies at regional level across all of the relevant State bodies, working together with local stakeholders. The Deputy will be aware that in 2013 there was employment growth in all regions. In this context, the Action Plan for Jobs contains a number of measures to be taken in 2014 to support competitive regions. These include a commitment to develop a framework for a regional enterprise strategy, which will better integrate the efforts of the enterprise development agencies and other regional stakeholders in supporting enterprises.

A core element of the Action Plan for Jobs has been the reform of the system for delivery of support to micro and small enterprises by dissolving the county and city enterprise boards and replacing them with local enterprise offices within the local authority structure under a service level agreement with Enterprise Ireland. This reform offers a one-stop shop for start-ups and small business, introduces innovations for the promotion of start-ups, including the microfinance fund and the recently announced €2 million county-based competition to find Ireland's best young entrepreneur, and enlists the considerable strength of the local authority network behind the creation of jobs. Many local authorities have been innovative in creating opportunities for enterprise development, and the reform aims to build on this. Another important development this year will be the preparation of the operational programme for the new EU rural development programme period of 2014 to 2020. The local development and Leader element of this programme will fund initiatives to support the economic development of rural Ireland and address issues such as social inclusion and poverty reduction.

The Taoiseach recently launched the report of the commission for the economic development of rural areas, CEDRA, as per a commitment under the Action Plan for Jobs. This report contains a number of recommendations to support rural job creation and will be considered shortly by the Cabinet committee on economic recovery and jobs.

Additional information not given on the floor of the House

Other measures which are being taken by Government that will have a positive impact on the jobs potential of rural areas include the national broadband plan, which includes a major fibre build-out to rural areas through investment by both the private and public sector, and the focus on supporting domestically trading sectors such as construction and retail. These sectors provide employment to almost every community in the country, and the Action Plan for Jobs contains a number of measures to support them as well as other sectors which have particular potential for rural job creation, including agriculture, food, the marine and tourism.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I do not know where to start. Has the Minister ever created jobs in a rural area and does he know how much investment is needed to create sustainable jobs? What is the maximum grant aid that can be provided by these new bodies, which are the former bodies under new names in an effort to play the quango game? What is the rationale behind the IDA owning all of the industrial land in rural Ireland while Enterprise Ireland is charged with creating jobs there? What is the average investment required to create 100 jobs in one setting in rural or urban Ireland? Does the Minister believe that the supports available in this regard are adequate? In my experience of creating jobs - I do have hands-on experience of creating jobs in rural Ireland - the type of supports being provided by the local authorities will not create significant employment.

Michael Kitt (Galway East, Fianna Fail)
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Thank you, Deputy.

Éamon Ó Cuív (Galway West, Fianna Fail)
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Will the Minister accept, in the context of the boast of 60,000 jobs having been created, that the 30,000 jobs created not in the agri-industry sector but in the agriculture and fisheries sectors are is a myth? Will he also accept that it is a little bit strange that Deputy Deasy continually complains in this House about the lack of jobs in the south east when, according to those statistics, that is the greatest growth area in the country, far exceeding growth in Dublin?

Richard Bruton (Dublin North Central, Fine Gael)
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The devastation of rural areas in this country was brought on by Fianna Fáil when in government through its creation of a construction boom which could not be sustained. Some 60% of construction employment in rural Ireland was lost in the space of three years. That is what created the huge vacuum in rural Ireland. The Government is now seeking to build sustainable and long-term sectors that are export-oriented into the future. We are building on core strengths in rural areas, such as food and tourism. We are seeing success in those sectors.

I do not denigrate anyone who sets up a business and is deemed self employed, be that in agriculture or in related sectors. It is the 15,000 or so people who start up their own businesses each year who create most of the employment. Two thirds of all net employment is by new start-ups. Through the local enterprise offices, we are providing a suite of measures that allow instant access to all areas of support in respect of new business ideas from the Deputy or any of his colleagues. These businesses are supported by the State through mentoring and, where appropriate, grant aid, access to capital, microfinance and seed and venture capital. There are a suite of supports available.

Michael Kitt (Galway East, Fianna Fail)
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Thank you, Minister.

Richard Bruton (Dublin North Central, Fine Gael)
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These supports are available to enterprises in all parts of the country. We need to build on the strengths of rural Ireland. That is what the local enterprise offices will do. They will have the heft of the local authorities behind them. The Deputy knows as well as I do that-----

Éamon Ó Cuív (Galway West, Fianna Fail)
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Will the Minister answer the specific question I asked him? What is the maximum grant available?

Richard Bruton (Dublin North Central, Fine Gael)
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-----there are 115 community enterprise centres across the country working with the local authorities. These are powerful tools that can drive opportunity. We are seeking to exploit those.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I asked the Minister what is the maximum grant that the new local enterprise offices can provide. Perhaps the Minister will also explain, in the context of the person seeking assistance, what is the significant difference between the new agencies and the former county and city enterprise boards.

Does the Minister believe the rationale for the fact that the IDA is the landowner of rural industrial estates while Enterprise Ireland and the new local enterprise offices will be providing the support? For example, with regard to the IDA estate in Roundstone, there is a million to one chance that the IDA will bring foreign direct investment in there. What is the logic in the IDA rather than Enterprise Ireland having that portfolio?

The Minister referenced the work done by the previous Government in respect of rural development. Will he explain the logic behind this Government's abolition of the post of Minister with responsibility for rural development before, three years later, commissioning a report whose first recommendation was the establishment of a Minister with responsibility for rural development?

Richard Bruton (Dublin North Central, Fine Gael)
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In regard to the difference between the former county and city enterprise boards and the local enterprise offices, first, we have created a centre of excellence in Enterprise Ireland which, for the first time, will drive small business and start-ups. We will have a national policy for start-ups and micro-business, which will have service level agreements with the local enterprise offices. This means there will no longer be 35 independent boards in operation. New businesses will be subject to service level agreements, thus ensuring uniform quality and a maximisation of the resources of the network. The LEOs are located within the local authorities, which means they will have the might and heft of the local authorities, which provide many enterprise supports, behind them.

The Deputy smirks. Perhaps he would consider reading the county and city managers' report on enterprise supports, which states that more than 2,000 of the measures being operated by local authorities are designed to support enterprise development.

Éamon Ó Cuív (Galway West, Fianna Fail)
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Ar mhaithe leis féin a dhéanann an cat crónán.

Richard Bruton (Dublin North Central, Fine Gael)
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Those initiatives which are successful will be mainstreamed into other local authorities. We are, I believe, creating a powerful alliance of the former county and city enterprise boards with their local experience, local authorities with their resources and Enterprise Ireland as a centre of excellence driving innovation.

We already have innovative tools. Microfinance is available to county enterprise boards-----

Éamon Ó Cuív (Galway West, Fianna Fail)
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What is the maximum grant?

Richard Bruton (Dublin North Central, Fine Gael)
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I am dealing with the list of questions-----

Éamon Ó Cuív (Galway West, Fianna Fail)
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I asked specifically about the maximum grant.

Richard Bruton (Dublin North Central, Fine Gael)
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The maximum grant depends on the merit of each proposal.

Éamon Ó Cuív (Galway West, Fianna Fail)
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What is the maximum?

Richard Bruton (Dublin North Central, Fine Gael)
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There is no maximum for any proposal that emerges. State aid sets the maximum for those proposals suitable for development. Each proposal is considered on its merits. Grants are only available to export-oriented businesses and we have not changed policy in this respect. There is no ceiling on what can be done for any individual proposal made.