John Perry (Sligo-North Leitrim, Fine Gael)
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Question 116: To ask the Minister for Enterprise, Trade and Innovation his plans to produce a policy paper dealing specifically with micro companies in view of their importance to the economy. [2651/11]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The National Recovery Plan provides a policy blueprint for Ireland's return to sustainable economic growth and builds on previous Government initiatives such as Building Ireland's Smart Economy and the recent Strategy for Trade, Tourism and Investment. It identifies the areas of activity which will provide increased employment opportunities as Ireland's economic recovery takes place. Included in the range of specific actions and supports designed to improve competitiveness across all sectors of the economy, including the SME sector are measures to cut costs to business, the removal of barriers to employment creation, and a range of sector-specific actions to increase exports and domestic demand.

Capital funding under the National Recovery Plan is being targeted to ensure that it is employment-focused, and in this regard, funding for enterprise-support programmes operated by my Department's agencies has been given a priority. Enterprise Ireland will continue to invest in high potential start-ups and help companies to increase their exports to new and existing markets. Enterprise Ireland and the County and City Enterprise Boards (CEBs) will continue to work directly with SMEs and the micro-enterprise sector to improve their performance, productivity and competitiveness.

It is important that policy is determined in a measured and cohesive manner so as to address the challenges facing our economy as a whole. The importance of the micro-enterprise sector to our economy cannot be overstated, and within my area of responsibility, my priority, therefore, is to ensure that the business environment in Ireland continues to be supportive of enterprise and encourages growth in all areas of the economy including entrepreneurs in both the start-up and development phases.

Since their establishment the CEBs have had primary responsibility for the delivery of State support to the indigenous micro-enterprise sector i.e. businesses which employ 10 or less workers. The CEBs, through both financial and non-financial assistance, support the sector in the start-up and expansion phases and stimulate enterprise potential at local level. The current priorities for the CEBs are to assist owner/managers in enhancing the survival and sustainability of their businesses in these difficult economic times and to assist people wishing to start their own business including those made redundant.

A thriving micro-enterprise sector is vital to a strong economy and to the overall quality of life and standard of living in this country and the CEBs have played a crucial role in supporting growth and productivity in that sector and in supporting the spread of entrepreneurship across the Country. The Capital Allocation for the CEBs in 2011 is €15m. This allocation represents a strong State investment in the micro-enterprise sector notwithstanding the significant pressure on Public finances. Individual CEBs are prioritising and managing available funding in a targeted manner in order to maximise entrepreneurial development at local level. My Department, in association with the CEB Central Coordination Unit within Enterprise Ireland (CCU), and with the CEB network, will continue to monitor the level of funding and range of support services offered by the CEBs to the micro-enterprise sector.

As I have previously stated, I am of the view that State support for that sector should continue to be provided and such support should be delivered as close to the client as possible. To this end I am reviewing what institutional arrangements might best deliver the necessary supports to the micro-enterprise sector and I am evaluating the appropriateness of the current structures of the thirty-five CEBs as part of that process.

I am also keen to ensure that the synergies between the CEBs and Enterprise Ireland are maximised, and that engagement with the development agencies is as seamless as possible for all small businesses including the important micro sector. I will shortly be bringing a Memorandum to the Government in this regard.