Written answers

Wednesday, 2 December 2009

Department of Enterprise, Trade and Employment

Employment Support Services

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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Question 93: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps she is taking to combat the problem of the responsibility gap in enterprise supports, identified in the 2004 document, Review of Enterprise Support in Rural Areas, in view of the fact that companies with between ten and 500 employees will only be dealt with by Enterprise Ireland if they constitute a high potential start up and is exacerbated by the new rural development plan 2007 to 2013 which puts Leader groups in the same enterprise support category as county enterprise boards, prohibiting them from assisting groups with more than ten employees; if her attention has been drawn to the problems being created by this responsibility gap with respect to indigenous small and medium enterprise, especially those involved in the agri-food sector; the initiatives she is taking to increase supports for indigenous SMEs, especially those falling within this responsibility gap, in view of the fact that most of these schemes, including the employment subsidy scheme exclude these enterprises from their criteria; and if she will make a statement on the matter. [44336/09]

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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Within my Department, the enterprise development agencies such as Enterprise Ireland and the County and City Enterprise Boards have continued to assist enterprises through their grant and advisory schemes.

Enterprise Ireland (EI) is the lead government agency responsible for the development of indigenous enterprise. The deputy is incorrect in his assertion that EI will only deal with companies between 10 and 500 employees if they constitute a high potential start up. The opposite is in fact the case with the majority of EI supported companies, regardless of their designation, employing 10 people or more. Enterprise Ireland is focused on providing support to clients to maximise export sales and consequently employment. This is achieved by investing in companies to help them plan strategy, build capability, access markets and research, finance start-ups and innovation. Continued support of our indigenous exporting companies is an indirect investment in creating and sustaining employment.

Earlier this year, I launched the Enterprise Stabilisation Fund, which enables internationally trading companies survive the current global downturn by supporting their drive to reduce costs and, through increased competitiveness, gain sales in overseas markets.

In addition, this month, I announced that 7,478 jobs are to receive direct support under the first round of the Employment Subsidy Scheme (ESS). A total of 453 companies engaged in manufacturing and/or internationally traded services are being informed of their successful applications. The Scheme provides a subsidy of €9,100 over fifteen months per qualifying employee in vulnerable but viable firms.

The County and City Enterprise Boards (CEBs) provide support for micro-enterprises in the start-up and expansion phases, promote and develop indigenous micro-enterprise potential and stimulate economic activity and entrepreneurship at local level. The CEBs deliver a series of programmes to underpin this role.

I recently announced my intention to re-convene the Small Business Forum to gain its assessment and views on the impact of the current economic situation on the needs of the SME sector as it positions itself for recovery. This meeting of the Small Business Forum will take place in the coming weeks.

Ireland's economic success is intrinsically linked to Irish industry achieving sales in international markets. I therefore, have no plans to expand the remit of the enterprise development agencies to incorporate indigenous companies that are not export-orientated. However, due to a lower than anticipated take-up, I will shortly be announcing details of a second broader call for ESS applications with extended eligibility criteria open to both exporting and non-exporting firms.

I am satisfied that the range of measures and supports available through the enterprise development agencies will continue to help Irish industry to adapt and grow in the current economic climate.

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