Paul McGrath (Westmeath, Fine Gael)
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Question 22: To ask the Minister for Enterprise, Trade and Employment his plans to review the eligibility criteria for funding from county enterprises boards; and if he will make a statement on the matter. [31935/06]

Micheál Martin (Cork South Central, Fianna Fail)
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The basic criteria under which the County and City Enterprise Boards (CEBs) have been operating since their inception in 1993, and under which funding is available, is based primarily on factors such as the sector of the economy in which an enterprise is operating or intends to operate and the size or proposed size of the enterprise. CEBs can assist, through either financial or non-financial means, in the establishment and/or development of new and existing enterprises from individuals/sole traders, companies and community groups subject to certain eligibility criteria such as that the enterprise must be in the commercial sphere and must not employ more than 10 people. Priority is given to enterprises in the manufacturing and internationally traded services sectors which over time may develop into strong export entities.

A fundamental review of the role and functions of the CEBs in the development of micro-enterprises was conducted during 2003/2004 by Fitzpatricks and Associates, Economic Consultants. This review largely endorsed the activities and operations of the CEBs but recommended that, in providing assistance to micro-enterprises, CEBs should focus more on economic, rather than social or local development, objectives; that there should be a renewed focus on the core enterprise mission; that the issues of potential deadweight, displacement and duplication should be more systematically and rigorously addressed and that there should be a move away from direct grant aid to repayable finance as well as a greater provision of soft supports as an alternative to grant aid.

The recent Report of the Small Business Forum, which I set up to examine in broad terms the current environment for conducting small business in Ireland, has since endorsed the key recommendations of the Fitzpatricks Report in relation to the future focus of CEB assistance.

My Department is working with the CEBs in relation to the continued implementation of the Fitzpatricks recommendations in an appropriate manner and in order to determine how best the CEBs can re-focus their supports in line with the recommendations of both Reports in order to ensure that the eligibility criteria remain fully relevant to current market conditions.