Brian O'Shea (Waterford, Labour)
Link to this: Individually | In context

Question 190: To ask the Minister for Enterprise, Trade and Employment the position regarding his consideration of the report of the Enterprise Strategy Group; if the Government has specifically decided not to implement certain recommendations of the report; if such recommendations in respect of which decisions have been made will be outlined; and if he will make a statement on the matter. [25430/05]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The Government has considered and endorsed the report of the high level committee that was asked to look at the most appropriate implementation arrangements for the Enterprise Strategy Group, ESG, recommendations. The Government is broadly supportive of the policy directions recommended by the ESG as underlined by its intention to implement, either in full or with some modifications, most of the its recommendations.

The most important overall theme to emerge from the ESG's analysis and prescriptions is that we are broadly on the right track as regards enterprise support policies. The ESG endorses the general direction of policy development and confirms the thrust of the approach taken by other advisory bodies such as NESC, NCC and various science advisory bodies.

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. In looking at international experience, the Government remains to be convinced that regulatory amalgamation on the scale proposed would be an efficient model. For example, there is a danger that a single regulator could give rise to slower decision making and less focus on smaller sectors compared with more dominant ones. This matter is one for my colleague the Minister for Communications, Marine and Natural Resources.

The Government decided to consider further the potential for the disaggregation of State procurement contracts for telecommunication services and my colleagues the Ministers for Communications, Marine and Natural Resources and Finance are dealing with this matter.

The central theme of the ESG 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. The ESG's report makes a valuable contribution to embedding strategies appropriate to the new realities and challenges facing the Irish economy. The ESG policy prescriptions are particularly relevant to my Department and the enterprise support agencies that report to me.

As part of the ESG implementation process some significant progress has been made in making important strategic changes to enterprise support policies and how they will deliver real and tangible benefits to SMEs. Already I have agreed a fundamental reorganisation of Enterprise Ireland that will change and improve its operational engagement with indigenous firms. This is set out in Enterprise Ireland's new direction to transform Irish industry that I launched some months ago.

In the context of deep changes taking place at Enterprise Ireland, many ESG's recommendations about new programmes are either being designed for pilot testing or have been launched. Others will follow over the coming months so that each recommendation is carefully implemented to achieve measurable targets with a defined target group.