Barry Andrews (Dún Laoghaire, Fianna Fail)

I thank Senator John Paul Phelan for raising this matter on the Adjournment which I am taking on behalf of my colleague the Minister for Enterprise, Trade and Innovation, Deputy Batt O'Keeffe.

Enterprise Ireland's community enterprise centre scheme has provided significant funding to facilitate the development of community enterprise centres aimed at providing a physical and human support network for emerging entrepreneurs and micro-industry at the community level. The scheme enabled entrepreneurs to establish, provide employment and grow their businesses in their locality.

Since the launch of the first scheme in 1989, a total of €60.4 million has been approved. The programme's impact is visible and has led to the development of 134 centres, of which 105 have been completed. The balance is either under construction or comprises recent approvals. A 2009 survey of the 105 built centres, which had a 95% completion rate, showed the 100 centres that replied to the survey are housing 901 companies providing employment for 4,870 people. A further 760 companies, employing approximately 2,900 people, have graduated from the community enterprise centres since the first centre was built under the 1989 scheme.

The term "graduated companies" refers to companies that have grown to a capacity that they do not require the guidance and management of their local community enterprise centre and are financially strong enough to lease private space. Some 56 of these companies have since become clients of Enterprise Ireland and 79 are clients of the county enterprise boards.

Several centres which were approved funding have yet to commence building works. In total, there is an estimated €6.15 million in capital grants to be drawn down in 2010 by approved applicants with further funding to be drawn down in subsequent years.

Support is also being provided towards the employment of business development managers for the centres whose role will be to promote and develop entrepreneurship in the wider community, along with supporting and advising in the development of businesses located in their centres. Support of up to 50%, or €50,000, whichever is the lesser, is provided towards the recruitment of a centre manager. Up to 26 centres have availed of this support to date but many have yet to draw down the funding approved.

Enterprise Ireland has also co-funded a postgraduate course in Waterford Institute of Technology in association with the development managers to aid them to scale up their business development skills and officially qualify them to aid small and medium-sized enterprises and micro-industry in their localities. This qualification is a postgraduate diploma in enterprise development and was rolled out in the academic year from September 2008 to June 2009. The agency is in discussion with Waterford Institute of Technology to roll out another course commencing in September.

The agency has also facilitated the establishment of a network for community enterprise centre managers, including the third level campus centre managers, in the community enterprise centres. These networks help to strengthen the overall community groups in the development of their centres, in the sharing of information, as well as in the achievement of scale in some of their activities to the benefit of the local communities.

Enterprise Ireland meets this network regularly to discuss the centres' sustainability, marketing and the best methods of attracting small and medium-sized enterprises and micro-industry at a national level. The agency will also contribute €10,000 each year to the National Association of Community Enterprise Centres for development of the areas mentioned.

The Minister is confident the activities being pursued by Enterprise Ireland, in partnership with the other key players involved with the development of the centres, will help to drive enterprise development in their localities. The agency will continue to work closely with the centres to ensure their continued success in creating employment in their local communities.