Michael D'Arcy (Wexford, Fine Gael)
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Question 151: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the reason the European Union Guidelines on national regional aid permit aid in some circumstances for acquisition costs on land and buildings but Enterprise Ireland expressly excludes from grant aid expenditure on buildings, building modifications and so on; and if she will make a statement on the matter. [45962/08]

Michael D'Arcy (Wexford, Fine Gael)
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Question 153: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she has plans to change the policy to allow the acquisition of buildings, building modifications and so on to be eligible for national regional aid in view of the fact that it is allowed by the European Union guidelines on national regional aid and in order to provide greater support and incentives to businesses to set up particularly in the midst of the current economic downturn; and if she will make a statement on the matter. [45964/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 151 and 153 together.

The acquisition of land and buildings by an enterprise in an eligible region can be supported under the Regional Aid (Industry and Services) Scheme 2007-13 for Ireland and under the Industrial Development legislation. Under Industrial Development legislation Enterprise Ireland is authorised to provide support for the acquisition of buildings and building modifications, however, I understand that the agency does not choose to exercise this authority.

I have been informed that Enterprise Ireland's long-standing policy is not to support the acquisition costs of land or buildings. Enterprise Ireland's focus is on investing the taxpayer's money in the productive assets of the company — the equipment and people — to support the creation of innovation and competitive companies which we believe represents the better value to the tax payer. In order to develop Irish Industry, capability investments in companies (in areas such as Research and Development, Innovation, and Management Development) rather than investments in the acquisition of land and buildings, represent the best return for the Irish taxpayer. Buildings and capital equipment investments can be supported at the Enterprise Ireland Investment Committee but the rates are not very attractive for companies. Due to Regional Aid restrictions the rates are 15% for a small company, 7.5% for a medium company and 0% for a large company in the Dublin/Mid East region. In the Border-Midlands-West region, the rates are higher — 50% for a small company, 40% for a medium company and 30% for a large company. These rates are to be further reduced or eliminated from 2013 onwards.

In certain circumstances, Enterprise Ireland can provide support towards buildings and building modifications, such as under the Research and Development Fund (provided for in the EU Research Development and Innovation State Aid Guidelines) and for capital investments considered at Enterprise Ireland's Investment Committee (under the EU Regional Aid Guidelines). Additionally, Enterprise Ireland's Community Enterprise Centre Scheme 2007-2009 aims to enhance the development of an enterprise climate through the provision of infrastructural facilities to support the establishment and expansion of micro enterprises through local community participation. The current scheme, announced in 2007, has a total fund of €21m with three calls for proposals.

Michael D'Arcy (Wexford, Fine Gael)
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Question 152: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether the policy by Enterprise Ireland is restrictive and hindering businesses from setting up or expanding; and if she will make a statement on the matter. [45963/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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Enterprise Ireland offers a wide and varied range of supports to businesses setting up or expanding. This suite of supports, which continue to underpin and grow a strong, sustainable and word-class indigenous business sector, are far from being restrictive. Enterprise Ireland offers a range of financial and non-financial supports tailored to the needs of its individual client companies throughout all regions. A key strategic target outlined in the Enterprise Ireland Strategy 2008 — 2010 'Transforming Irish Industry' is to continue to drive the establishment of High Potential Start Up Companies (HPSUs) by stimulating and developing a strong flow of innovation-led start-ups. The added focus in 2008-2010 is on assisting Irish companies to achieve scale at the earliest stage of development. Enterprise Ireland addresses the full range of start-up needs including finance, management support, research and development and market development. Additionally, Enterprise Ireland works with the city and county enterprise boards, business innovation centres and third level institutions to actively promote the establishment of HPSUs throughout Ireland.

Enterprise Ireland offers supports to assist companies adapt and grow by focusing on internationalisation, competitiveness, entrepreneurship, innovation, research and development, business infrastructure and engagement with third level education. In supporting client companies in their expansion, Enterprise Ireland offers customised solutions to help build competitive advantage, profitable sales, exports and sustainable employment. Enterprise Ireland in assisting growth and expansion:

Partners with companies to develop clear business strategies framed by ambitious goals for global market development.

Addresses critical issues such as the appropriate business model, leadership and management development, acquisitions and partnerships, and the financing required to achieve scale.

Builds clients' capabilities in relation to key scale enablers — global organisation structure, large scale acquisitions and global partnerships.

Targets the development of scale from the earliest stage by identifying increasing numbers of start-ups with scaling potential, and offer a tailored and intensive support structure to achieve this.

Focuses on helping clients gain access to the growth capital required to drive scale.