Written answers

Tuesday, 29 March 2011

Department of Enterprise, Trade and Innovation

Enterprise Support Services

10:00 pm

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 43: To ask the Minister for Enterprise, Trade and Innovation the steps he will take to support enterprise development in the midland and western regions; and if he will make a statement on the matter. [5767/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The role of Government is to create the conditions where enterprise, entrepreneurship and innovation can flourish and quality employment opportunities can be grown and maintained. Two Industrial Development agencies under the aegis of my Department, IDA Ireland and Enterprise Ireland, together with the relevant County Enterprise Boards (CEBs) support enterprise development in the regions in question.

The primary role of IDA Ireland is the attraction of high quality Foreign Direct Investment (FDI) to Ireland. An integral and fundamental element of this role is the agency's mandate to promote sustainable and balanced regional development. One of the high level goals of IDA's strategy "Horizon 2020 " is that in the period to 2014, 50% of new FDI projects will be located outside of Dublin and Cork. To date in 2011, of the ten investments announced, four are located outside of Dublin and Cork. Three of these are located in the West Region and one in the Midlands. These announcements alone have the potential to create 190 jobs.

The marketing of individual areas for FDI and jobs is a day-to-day operational matter for the agency. While I may give general policy directives to the agency, I am precluded under the Industrial Development Acts from giving directives regarding individual undertakings or from giving preference to one area over others. However, I can say that the agency has invested heavily in the provision of property solutions tailored to meet the needs of investors and has developed a network of high-quality Business Parks in locations throughout both regions.

Considerable success has been achieved in attracting high quality investment to both regions. At present, there are a total of 115 IDA supported companies employing over 18,000 people between both regions. The key sectors of focus are life sciences, information and communications technologies and high value services activities. IDA has a good pipeline for 2011 and is hopeful of securing further investments across a number of locations.

Enterprise Ireland has a wide range of programmes to address the multi-disciplinary demands of entrepreneurship and the diversity of business types. The agency supports companies to achieve productivity gains, internationalisation and export growth. It assists with research and development, management skills acquisition, market information and seed and venture capital. Between the two regions, the agency has almost 700 clients employing over 17,000 people. In 2010, Enterprise Ireland-assisted companies created 457 new full-time jobs in the Midlands region and 786 in the West. In addition, over €23m was approved for the agency's client companies in the two regions.

During 2010, the CEBs in the two regions paid out over €2.3m in grant assistance to 207 clients. Of this, €1.1m was paid out to 101 client companies in the Midlands Region comprising counties Laois, Offaly, Longford and Westmeath. €1.2m was paid out to 106 client companies in counties Galway, Mayo and Roscommon which make up the West Region. This year, the CEBs are continuing to support enterprise development through the provision of both direct financial assistance (in the form of capital, feasibility and employment grants) and through indirect or "soft support" assistance such as management development, capability support and the development and delivery of activities to highlight and promote enterprise.

I am satisfied that the policies and initiatives being pursued by the Industrial Development agencies and the County Enterprise Boards will continue to bring about industrial development and employment opportunities for the regions.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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Question 44: To ask the Minister for Enterprise, Trade and Innovation the way he will promote the development of the social enterprise sector as per the programme for Government; the role enterprise agencies will be given in encouraging the development of social enterprises; and if he will make a statement on the matter. [5876/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The enterprise agencies under the aegis of my Department do not have a role in the provision of supports to social enterprise. The agencies are focussed on assisting enterprises in the commercial sphere to create employment through export led growth. In terms of promoting community activity and social enterprise, the Department of Community, Equality and Gaeltacht Affairs has responsibility for the Rural Development Programme 2007 –13 and the Local and Community Development Programme. Responsibility for the Community Services Programme, which supports local community activity that addresses disadvantage, transferred from the Department of Community, Equality and Gaeltacht Affairs to the Department of Social Protection in 2010.

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein)
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Question 45: To ask the Minister for Enterprise, Trade and Innovation the way community employment and enterprise support functions are to be transferred from agencies to local government as per the programme for Government; the form this will take; the way these services will be administered; if the ultimate responsibility and accountability rest with him; and if he will make a statement on the matter. [5863/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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As Minister for Jobs, Enterprise and Innovation one of my main priorities is to ensure that the manner in which State support for enterprise activity, entrepreneurship stimulation and job creation is delivered, is properly targeted and is effective and coherent. I want to ensure that it is cost effective and that the resources available to the State are used to maximise business activity and sustainability across all sectors and to drive economic recovery.

Apart from the principal Enterprise Development Agencies i.e. Enterprise Ireland and the County and City Enterprise Boards, who report directly to my Department, there are other State Bodies, and organisations, providing a range of enterprise type supports. Notwithstanding the fact that each of these Bodies and organisations has a distinct client base the Programme for Government recognises that there is a multiplicity of enterprise and job support functions being carried out by various local, regional and national agencies. Therefore there is a need to streamline such functions, to increase shared knowledge capability and resources while saving on administration costs to ensure that duplication and overlap is avoided.

However in progressing any such streamlining it is essential that we do not compromise on service delivery to the end user. While unnecessary overlap or duplication must be eliminated, as Minister for Jobs, Enterprise and Innovation, it is my priority to ensure that, above all else, there is a coherent and cohesive delivery of State support to the indigenous business sector based on clear enterprise policy principles laid down by my Department and to ensure that any structural or institutional changes do not compromise the State's support for indigenous businesses. I am engaging with my officials and other Government colleagues to determine the best way forward.

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