Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 197: To ask the Minister for Enterprise, Trade and Employment if he will review the Enterprise Ireland eligibility criteria for companies to include import substitution as an acceptable enterprise for grant support; and if he will make a statement on the matter. [24270/05]

Micheál Martin (Cork South Central, Fianna Fail)
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Enterprise Ireland has primary responsibility for the development of indigenous small and medium enterprises, SMEs, in the manufacturing and internationally traded services sectors. I should point out that the decision whether or not to provide funding to a company is a day-to-day matter for the agency itself, and is not one in which I have a direct function.

Enterprise Ireland offers a range of supports aimed at assisting client companies to expand and compete in the international marketplace. As each company has its own distinctive ambitions, capabilities and needs, Enterprise Ireland delivers a flexible set of solutions tailored to the needs of individual circumstances of Irish enterprises. Each client company is assigned a development adviser who works with the company in assessing its needs and capabilities, formulating an agreed growth plan and in assisting the company access the range of services and resources it needs to execute that plan.

The key focus of Enterprise Ireland's policy is to work with companies which have the potential to develop sustainable export sales and in order to qualify for support a company should demonstrate clear potential to do this.

Within this general policy context however, each business development plan is considered on its merits. Import substitution by itself is typically considered insufficient to justify the investment of significant resources in funding and support services. Enterprise Ireland believes that companies should also strive to supply such goods into overseas markets. To this end Enterprise Ireland has a range of supports available to assist Irish companies to develop their businesses in a manner that will facilitate them to effectively target and win customers in overseas markets, and will work closely with companies to achieve increased sales and exports in this regard.

It is important for companies to recognise that Ireland operates within a global market and that supplying the domestic market will be carried out in competition from suppliers in other countries. However, it is well recognised that import substitution can contribute to the viability of a new or growing enterprise and to that extent it can be a valuable and welcome constituent part of the company's target market.