Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

The Capital Allocation for the 35 CEBs under the 2010 Estimates Process was €14.994 million for the provision of grants and soft supports to micro-enterprises in 2010. In 2011 this provision has been maintained, with an allocation of €15 million and in view of the difficulties surrounding the public finances, this continued level of support to the micro-enterprise sector is very significant. I fully recognise that the CEBs are under pressure to meet the increased level of demand for their supports, and while it is vital that CEBs continue to promote and support enterprise development, due to the finite nature of public finances, it is not always possible for a CEB to provide financial assistance to every eligible project that presents itself. This is an operating reality with which all CEBs are already familiar. I am confident that CEBs will prioritise and manage available funding in a targeted and effective manner.

Exchequer funding is allocated to individual CEBs by the Central Coordination Unit (CCU), based within Enterprise Ireland. In determining these initial allocations a systematic approach is adopted by the CCU to ensure the maximum degree of objectivity and equity of treatment. This approach involves the provision of funding on the basis of a standard allocation to each CEB as well as an extra allocation that is determined mainly by population but which also takes account of issues such as local unemployment trends, capacity to spend, existing commitments and regional spread.

Under the initial allocations for the year Meath CEB has been allocated an Exchequer Capital allocation of €460,907 for 2011 for direct support of micro-enterprise clients through grants and mentoring/training support programmes. When compared with the initial allocation to Meath CEB for 2010 of €404,797, this represents an increase of €56,110.

It is a matter in the first instance for individual CEBs to determine how they will use allocated funds, as well as funds available to them from repayable grants, in the most effective manner possible (subject to meeting the appropriate eligibility criteria and a number of limits and thresholds that are in place). Some Boards may choose to commit all of their available funding as projects present themselves, even if this means that their funding is exhausted relatively early in the year, while others may choose to reserve some funding until later in the year so that they are in a position to support other high quality projects that emerge at that time. This would explain why some Boards, including Meath, may have utilised their grant funding earlier in the year than other Boards.

As part of the CCU's on-going management of available funding during the year, the Unit will continue to monitor CEB spending. It has sometimes been the case that a number of Boards are not in a position to spend all of their annual allocations as not every project which is approved for funding may draw down that funding and CEBs factor this into their financial planning for the year. Should such surplus funding become available, this will be reallocated by the CCU to any Boards that are in a position to spend additional funds, subject to thorough assessment of the rationale and the justification for the level of funding being requested. It will be in the context of this process that any additional funding requests from individual Boards will be considered.