Bernard Durkan (Kildare North, Fine Gael)
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Question 70: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps she will take to promote, incentivise or generate job creation and retention with particular reference to the need arising from the current economic situation; the measures she will take to assist small medium enterprises who are prepared to offer employment; if she has carried out an assessment of the best way to improve the employment creating environment with the objective of meeting the needs of employers and potential employees at this time; and if she will make a statement on the matter. [27514/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am very much aware that the key to creating employment is to provide the necessary support to the enterprise sector. In this regard, the Government made provision in the recent Supplementary Budget for in excess of €500 million for capital investment in enterprise. In doing so, the Government has prioritised investment in the most productive sectors of our economy and is investing in the creation of jobs by cementing the foundations of export led recovery and growth.

The Enterprise Development agencies under the aegis of my Department are working together and with local interests in order to maintain an integrated approach to investment and enterprise development. The strategies and policies being pursued by the Enterprise Development agencies will continue to support enterprise development and bring about job creation and retention throughout the country. I recently announced the Enterprise Stabilisation Fund which will enable internationally trading companies survive the current global downturn by supporting their drive to reduce costs and gain sales in overseas markets. Sustainable economic recovery will be driven by enterprises focused on increasing their exports of innovative products and services in global markets.

Enterprise Ireland, in recognising the significant changes in the current economy both in Ireland and globally, has prepared a new recovery strategy to identify the actions that will be undertaken to help clients in 2009. Enterprise Ireland has refocused its efforts on strengthening and sustaining companies of strategic importance through a range of initiatives focused on the needs of its client base.

The focus of IDA Ireland is on securing inward investment from new and existing clients and on working with its existing client base to further embed their investments in Ireland. It has an active programme of engagement with its clients to target new investment opportunities from them. The agency assists its client companies to move up the value chain in terms of both carrying out higher skilled operations and expanding their presence in Ireland. These activities are aimed at improving the quality of employment opportunities and retaining existing jobs.

The County and City Enterprise Boards were established to develop indigenous potential and stimulate economic activity at a local level, primarily through the provision of financial and technical support for the development of small and micro enterprises. The Boards form a nationwide support network for small business, continue to be actively involved in the area of economic development and continue to ensure that available funds are targeted to maximise entrepreneurial development regionally and nationally.

A properly functioning banking sector is an essential element for the maintenance and development of enterprises, especially Small and Medium sized Enterprises (SMEs).

Government focus has been on creating a fit for purpose banking system as is evidenced by the bank guarantee scheme, the recapitalisation scheme, the nationalisation of Anglo Irish Bank and the establishment of the National Assets Management Agency (NAMA). Substantial guarantees and funding have been committed to the banking sector in order to keep the banks functioning to support the broader economy. A key principle of all these actions is the recognition of the importance of business lending particularly in relation to SMEs. The SMEs are central to our economy and the provision of bank credit to the sector is a primary target of all these initiatives. The Banks' Recapitalisation Package contains a range of initiatives to directly assist our enterprise sector.