Brian Stanley (Laois-Offaly, Sinn Fein)
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38. To ask the Minister for Trade, Enterprise and Employment if his Department will promote, through Enterprise Ireland and other State funded bodies, the need to strengthen the connections and interdependence between local businesses. [34936/20]

Brian Stanley (Laois-Offaly, Sinn Fein)
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My question is to ask the Tánaiste's Department to promote, through Enterprise Ireland and other State bodies, the need to strengthen the connection and interdependence between local businesses. I am not advocating isolationism. There is a good deal of trade in and out of this country, and that is as it should be, but if we strengthen those links we can generate more jobs within the region. It is particularly important for regional development.

Robert Troy (Longford-Westmeath, Fianna Fail)
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I was very pleased that the programme for Government committed to the delivery of a national SME growth plan that will map out an ambitious strategic blueprint for SMEs and entrepreneurs beyond the period of Covid-19. The SME growth task force, which was established last September, is reviewing policy across four sub-groups: entrepreneurship; productivity, digitalisation and competitiveness; internationalisation; and clustering and business networks. The latter sub-group is examining how to strengthen the connections and interdependence between local businesses and multinational companies.

Our regional enterprise plans are focused on region-specific enterprise development and opportunities, and provide a mechanism for joined-up responses at a regional level, including networking and clustering initiatives. In that regard, Enterprise Ireland's Powering the Regions programme provides for nine regional specific plans to grow and sustain jobs and to expand the reach of Enterprise Ireland's client base in every county and region. The programme also supports the scaling of companies into the regions and the attraction of foreign direct investment, FDI, into the food sector.

Enterprise Ireland's regional technology cluster fund provides a platform for engagement between enterprise and the institutes of technology and technological universities to drive productivity and competitiveness in and across the regions. The clustering activity will enable institutes of technology and the technology universities to connect and engage with SMEs and multinational corporations in a strategic way on common areas of interest.

My Department supports joint agency initiatives, such as the global sourcing initiative between Enterprise Ireland and IDA Ireland, which aims to create business opportunities for Irish-owned companies with multinationals based in Ireland and raises awareness of the innovative capabilities of Irish SMEs across a range of sectors.

Additional information not given on the floor of the House

Under the enterprise centres scheme, the regional enterprise development fund and the Border enterprise development fund, my Department has provided over €180 million in funding across every region. Affordable shared remote and co-working spaces for businesses across the country are supported under each of these funds. The SME growth plan, including these initiatives, will be part of our national economic plan, which is currently being developed by the Cabinet committee on economic recovery and investment.

Brian Stanley (Laois-Offaly, Sinn Fein)
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I thank the Minister of State for his reply. He covered many areas. Recently there has been a big move towards globalisation. That is the way the world is now, and we have to accept that. That is how it works but recent times have shown how vulnerable we are in this regard. Many supply lines have been cut off during the pandemic. I am aware of people in business who have had difficulty sourcing overseas goods and services that would normally flow freely into the country. This has shown up that there is a vulnerable side. Many goods and services can be sourced within the country, thus greatly benefiting local and regional development. Rather than shouting about rural Ireland while doing nothing about it, I am proposing a positive measure to keep money in the relevant areas and create more jobs. Many large companies are still very aloof.

Robert Troy (Longford-Westmeath, Fianna Fail)
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My Department is working collectively to strengthen the connections and interdependence of businesses through engagement with our nine regional enterprise plans. Our focus is on region-specific enterprise development, including sectoral networking and clustering initiatives, such as the regional technical cluster initiative, and opportunities for Irish companies to connect with multinationals based in Ireland to raise awareness of the capabilities of the SMEs across a range of sectors. We must be cognisant of the fact that Ireland is an attractive destination for FDI. This offers our SMEs considerable opportunities to work with and feed into the operations of multinationals. I accept what the Deputy said about supporting SMEs and working with multinationals. There are plans afoot through Enterprise Ireland to do that.

Brian Stanley (Laois-Offaly, Sinn Fein)
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I recognise that there is some good work being done; it is a matter of trying to develop it further. There are many large companies that are still aloof in that they lack a connection with local suppliers and other small local companies. Many of the services and goods needed by various companies can be sourced in the country. If not, there are small firms that can work to provide them.

It is important that we develop a policy of active engagement by IDA Ireland and Enterprise Ireland, whose representatives I have met a number of times, and the local enterprise offices, which are doing a lot of good work.

The commercial semi-State bodies are very important to the economy. We need to determine how to connect them better with local economies because their expenditure is considerable and they have a big impact on local areas and regions, particularly the midlands.

Robert Troy (Longford-Westmeath, Fianna Fail)
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I take on board what the Deputy has said. The SME task force was established in September of this year and is part of a commitment in the programme for Government. I was very supportive of this because I believe that over recent years, there was not a sufficiently significant focus on our SME sector. This task force has put a spotlight on our SMEs. We have brought together, under the stewardship of the Tánaiste, key businesspeople, including people who have created employment over the years and who have built up SMEs, to listen to them regarding what needs to be done from a policy perspective. One of the subgroups that has worked on the SME task force has done so in the area clustering and business networks. There is a plenary session later this week to work towards publishing our SME plan. I have no doubt that when that plan is published, we will see a very strong commitment regarding how we can ensure indigenous companies benefit from the significant presence of multinationals.