Written answers

Wednesday, 20 April 2005

Department of Enterprise, Trade and Employment

Enterprise Strategy Group

9:00 pm

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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Question 86: To ask the Minister for Enterprise, Trade and Employment the progress on the implementation of the recommendations contained in the report of the Enterprise Strategy Group, Ahead of the Curve; and if he will make a statement on the matter. [12175/05]

Photo of Trevor SargentTrevor Sargent (Dublin North, Green Party)
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Question 152: To ask the Minister for Enterprise, Trade and Employment if and when he intends to implement the recommendation of the Enterprise Strategy Group regarding the establishment of two new divisions within Enterprise Ireland to focus on export marketing and research and development and the incorporation of county enterprise boards into Enterprise Ireland. [12198/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 86 and 152 together.

Shortly after the launch of the Enterprise Strategy Group's report in 2004, the Government asked a high level committee under the chairmanship of my Department to advise on the most appropriate means to progress implementation of its recommendations. The Government recently considered and endorsed that committee's report, which was broadly supportive of the policy directions recommended by the Enterprise Strategy Group. This is underlined by the Government's intention to implement, either in full or with modifications, most of its recommendations. The report makes a valuable contribution to embedding strategies appropriate to the new realities and challenges facing the Irish economy.

The report contains more than 50 recommendations, directed at a wide range of Departments and agencies and this adds complexity to ensuring a smooth flow of implementing actions. To address this, I published an action plan to establish a focus on maintaining pace and momentum in implementation activity across the range of bodies and stakeholders involved. As part of the ESG's implementation process I will be making twice yearly reports to Government on progress achieved in putting the Government approved ESG's recommendations in place.

As part of this process I also announced the setting up of an enterprise expert group comprising four senior representatives from the enterprise sector and relevant Secretaries General from Departments. I will rely on the advice and analysis of the expert group on implementation developments to inform my report to Cabinet and I will be making further announcements shortly about the composition of this group.

The central theme of the ESG's recommendations concerns a strategic evolution to a more competitive, innovative and knowledge centred economy. To help create quality and sustainable employment we have to make sure Ireland continues to be an attractive place in which to invest and from which to undertake increasingly profitable business. Part of this process involves listening to business and responding to its needs with greater agility and clarity. As a contribution to this process I may invite one or more enterprise members of the expert group to make a presentation on particular issues to the Government meeting at which I will report on policy developments in the context of the ESG's report.

When I published details of the Government's response to the ESG's report, I also asked Enterprise Ireland, EI, to review the type of supports it provides to enterprise and its organisational arrangements for this. In effect, I have asked EI to strategically refocus its business to reflect the policy recommendations provided by the Enterprise Strategy Group. This is not a review that can be undertaken quickly but I expect that I will be able to announce details about the agency's strategic developments within the next few weeks. This will include details about the business arrangements for providing marketing and technology supports to enterprise.

The Government has approved the establishment of a new central co-ordination unit within Enterprise Ireland, which will provide city and county enterprise boards with central direction, technical support and shared services. Discussions have already commenced between my Department and the agencies regarding the steps necessary to implement the ESG's recommendation on this topic.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 87: To ask the Minister for Enterprise, Trade and Employment the reason he has rejected implementing the more radical recommendations of the Enterprise Strategy Group, including a single chairperson IDA Ireland, Enterprise Ireland and Forfás; and if he will make a statement on the matter. [12074/05]

Photo of Ciarán CuffeCiarán Cuffe (Dún Laoghaire, Green Party)
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Question 110: To ask the Minister for Enterprise, Trade and Employment if and when he intends to implement the recommendation of the Enterprise Strategy Review Group that IDA Ireland, Enterprise Ireland and Forfás operate under a common chairman. [12192/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 87 and 110 together.

Shortly after the launch of the Enterprise Strategy Group's report in 2004, the Government asked a high level committee under the chairmanship of my Department to advise on the most appropriate means to progress implementation of its recommendations and the most suitable modes of implementation. The Government recently considered and endorsed that committee's report, which was broadly supportive of the policy directions recommended by the Enterprise Strategy Group. This is underlined by the Government's intention to implement, either in full or with modifications, virtually all its recommendations.

The report contains more than 50 recommendations, directed at a wide range of Departments and agencies. The report makes a valuable contribution to embedding strategies appropriate to the new realities and challenges facing the Irish economy. I intend that those recommendations addressed to my Department will inform the strategic development of enterprise support policies and their delivery to businesses. The ESG's recommendations are an important part of the enterprise policy agenda and I recently published an action plan to give added impetus to their implementation. As Minister for Enterprise, Trade and Employment, I want to create the most competitive and supportive environment possible for business to invest and create long-term quality employment for the benefit of society.

Regarding the ESG's recommendation that the boards of Forfás, IDA Ireland and Enterprise Ireland should have a number of directors in common and, in particular, a common chairperson, I acknowledge the need for effective co-ordination between the enterprise development agencies. Nevertheless, I consider that any recommendation regarding better agency co-ordination should acknowledge the fact that Forfás has a statutory function to advise and co-ordinate IDA Ireland, Enterprise Ireland and Science Foundation Ireland in relation to their functions. The co-ordination issue extends beyond the three agencies mentioned in the recommendation and a case can be made for including Science Foundation Ireland and FÁS in any such arrangements. The chief executives of these agencies are also represented on the Forfás board. Enabling a common chairperson for only some of the boards under Forfás could present governance difficulties and at this stage I would prefer to look at this recommendation from a different perspective My Department will have discussions with the development agencies with a view to identifying co-ordination problems that have arisen and devising means by which such might be dealt with.

As regards recommendations which it is specifically not intended to implement, we have decided not to implement the recommendation that existing regulators for networked sectors should be replaced by a new regulatory body covering all networked sectors. This is a matter for my colleague, the Minister for Communications, Marine and Natural Resources. The Government has also decided that the ESG's recommendation regarding the disaggregation of State procurement contracts for telecommunications services will be further considered by my colleagues, the Ministers for Communications, Marine and Natural Resources and Finance.

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