John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

To clarify the issue raised by Senator Brian Ó Domhnaill, the primary allocation under this scheme will equal the moneys allocated under existing grants. Exchequer funding currently secured by the Minister will continue to be allocated under a separate subheading on a collective basis to Enterprise Ireland, and responsibility for the distribution of these funds to and between the county and city councils will be transferred to Enterprise Ireland in accordance with legislation and appropriate schemes. Budgets will be allocated on an annual basis but, in the interim, will come under the existing administration of pay and non-pay headings. It has been agreed that the budget allocation methodology will initially remain unchanged as regards measure one and that local authorities may provide additional funds for activities, projects and supports. In short, there will be no requirement for local authorities to match the funds coming from Enterprise Ireland. I have spoken to several local authorities and their main concerns include the stacked-up costs of doing business, vacant units, ailing town centres and so on. There is already a whole range of expertise in those areas within the local authorities, which the manager might decide to deploy. None of this will dilute any of the funding. The moneys allocated by the Department for enterprise through the enterprise boards will remain unchanged and there will be no matching stipulation. However, if local authorities wish to focus on supporting enterprise, rejuvenating a town centre or giving a derogation, for instance, they will have a huge level of autonomy in regard to their budget. Such decisions will be at their discretion. We are putting in place a comprehensive service level agreement which will clearly establish the capabilities and functions of business people, elected members and the fantastic staff who work in local government. I assure the Senator that when he reads the service level agreement, which I will circulate presently, he will see it all there in black and white. The funding allocations and how it will all be managed are set out clearly. The new arrangement with Enterprise Ireland will ensure there is access to expertise. Where before we had 31 autonomous enterprise boards, this new policy direction will ensure there is a more cohesive provision of support services to high-potential start-up companies and companies seeking to expand. There is also scope for the institutes of technology to get involved, if they so wish. It is a positive development.