Brian Hayes (Dublin South West, Fine Gael)
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Question 202: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the reason enterprise boards here do not have a standard approach to the payment of grants or loans in respect of the financial support offered by way of employment assistance to start up businesses; her views on the fact that an entrepreneur who lives in Dublin City can receive a €4,000 non-repayable grant, whereas an entrepreneur who lives in south Dublin may obtain up to €8,000 in terms of a low interest loan, all of which must be repaid to the relevant enterprise board; and if she will make a statement on the matter. [29608/08]

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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The role of the County and City Enterprise Boards (CEBs) is to provide support for micro-enterprise in the start-up and expansion phases, to promote and develop indigenous micro-enterprise potential, and to stimulate economic activity and entrepreneurship at local level. The Boards can support individuals, firms and community groups provided that the proposed projects have the capacity to achieve commercial viability.

The Boards can offer both financial and non-financial assistance to a project promoter. The forms of financial intervention, which are available subject to certain restrictions, include Capital Grants, Employment Grants, and Feasibility Study Grants. Boards are required to ensure that a proportion of their grants are issued in a refundable form. Boards may also take preference shares in companies. The criteria under which financial intervention 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. The enterprise must be in the commercial sphere, must demonstrate a market for the proposed product/service, must have a capacity for growth and new job creation and must not employ more than 10 people. Boards give priority to enterprises in the manufacturing or internationally traded services sector and they must always give consideration to any potential for deadweight and displacement arising from a proposed enterprise. All Boards operate the above criteria in respect of the financial assistance which they can provide to eligible projects and they are also subject to the same upper limitation levels in relation to the amount of finance which they can provide i.e.

Capital Grants up to a maximum of 50% of the cost of capital and other investment or €75,000, whichever is the lesser; a portion of the grant in excess of 40% (in the BMW Region) or 35% (in the S&E Region) to be in refundable form;

Employment grants in exceptional circumstances, a grant of up €7,500 per new job, to a maximum of 10 new jobs.

Feasibility study grants up to a maximum of 60% (in the BMW Region) or 50% (in the S&E Region) of the cost of a feasibility study and business plan, subject to an overall limit of €6,350 (in the BMW Region) or €5,100 (in the S&E Region).

However, while the Boards work off an identical suite of financial interventions, there are certain differences between Boards as to how they apply these interventions e.g. the individual level of a grant or the refundability level applying to a grant payment may vary. I am of the view that it is appropriate and feasible to allow individual Boards a level of discretion and flexibility in the way in which they provide financial assistance to enable them to take account of the economic conditions and sectoral demands particular to their area of responsibility and the overall budget available to them in any given year.