Gay Mitchell (Dublin South Central, Fine Gael)
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Question 92: To ask the Minister for Enterprise, Trade and Employment his views on the findings of the expert group on future skills which claims that the existing infrastructure for management training is not sufficiently focused on the real needs of the managers of small and medium enterprises; and if he will make a statement on the matter. [23903/06]

Micheál Martin (Cork South Central, Fianna Fail)
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The recently published Expert Group on Future Skills Needs report SME Management Development in Ireland concluded that while there was no evidence that Irish SME managers were less skilled or competent than those in other countries, enhanced capabilities are required to meet future business challenges. It therefore recommended that both the incidence and effectiveness of management development activities be increased and that Ireland move to a situation where all SME principals would be able to identify their own training needs and those of their staff and find cost effective, relevant, development opportunities to meet such needs.

The Report found that the majority of owner/managers have not engaged in formal management development. It suggested that much of the existing management development provision may be provider-driven and not sufficiently focused on the real needs of SMEs.

The Small Business Forum Report also published recently concluded that SME owner/managers would not participate in training unless they see a clear connection between specific programmes and the success of their individual businesses. It concluded that, with the substantial increases in State funding for in-company training over past two years, that resource constraints are not the primary barrier to enhancing management competence.

The Small Business Forum considered that many owner/managers feel that available training is insufficiently targeted at their needs. They therefore recommended that a Management Development Council be established under the auspices of my Department to ensure targeting is informed directly by business needs.

I agree with the conclusion that expanding awareness of the value of investment in management training, both in terms of commercial profitability and providing the competencies to meet emerging change and challenges, is central. I am currently considering how this can best be achieved.