Catherine Murphy (Kildare North, Independent)
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Question 21: To ask the Minister for Jobs, Enterprise and Innovation the assistance available to start up and non-start up businesses for the employment of new staff; his plans for additional supports; and if he will make a statement on the matter. [28789/11]

Richard Bruton (Dublin North Central, Fine Gael)
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The role of my Department is to drive Ireland's competitiveness and productivity by creating the conditions where enterprise, entrepreneurship and innovation can flourish and quality employment opportunities are grown and maintained. Operating under the aegis of my Department direct assistance to start-up and growth companies is provided by a number of Agencies including the County and City Enterprise Boards (CEBs) and Enterprise Ireland.

The role of the CEBs is to provide support for micro-enterprise sector in the start-up and expansion phases, to develop indigenous micro-enterprise potential and to stimulate economic activity and entrepreneurship at local level. The CEBs deliver a series of Programmes to underpin this role and they can provide both financial and non-financial assistance to a project promoter.

The forms of financial assistance that are available, subject to certain restrictions and conditional on an agreed business plan include the following:

- Priming Grant (payable up to 50% of the investment or €80,000 whichever is the lesser), available to micro-enterprises for business start-ups within the first 18 months of start-up.

- Business Expansion/Development Grant (payable up to 50% of the investment or €80,000 whichever is the lesser), available to micro-enterprises to grow and develop the micro-enterprise.

- Feasibility/Innovation Grant (payable up to €20,000 or 50% (S&E region)/60% (BMW region) of the investment, whichever is the lesser), available to micro-enterprises to assist with the cost of necessary pre-start up studies carried out for the purposes of assessing market interest in/demand for a proposed new product or service, the appropriateness of the associated funding plans, the general viability and sustainability of the venture and assistance with innovation.

In the case of Priming Grants and Business Expansion/Development Grants, all business costs directly attributable to starting a new business or growing and developing a business, save payments to State Bodies may be considered for support, including, where appropriate, an element of employment/salary costs for the 1st year of employment.

In addition, the provision of non-financial assistance can take the form of a wide range of supports such as Programmes covering Start Your Own Business, Business Management and Capability Development, Mentoring, E-commerce, Enterprise Education, and Women in Business networks. Due to the Boards unique relationship with their clients and the local business community they can specifically tailor their programmes to meet the evolving needs and requirements of these small enterprises going forward.

The range of financial and non-financial assistance available from the CEBs represents a broad suite of appropriate supports dedicated to the micro-enterprise sector. For the remainder of 2011 the CEBs will continue to support enterprise development in the sector and will ensure that available funds are targeted to maximise entrepreneurial development across the Country.

Sandra McLellan (Cork East, Sinn Fein)
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Question 22: To ask the Minister for Jobs, Enterprise and Innovation the efforts he has made to reform the grant aid system here. [28888/11]

Richard Bruton (Dublin North Central, Fine Gael)
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The various EU State Aid regulations and frameworks set out the types of activities that can be supported by the Member States and stipulate the maximum percentage of eligible costs that can be aided. These ceilings vary according to the type of aid measure involved but typically allow higher rates of aid for small and medium sized enterprises. Most measures are horizontal and do not have differentiated aid rates depending on the location of a company in the EU.

By contrast, the Regional Aid Guidelines govern the areas in which Member States may grant regional aid, more commonly known as investment aid. Investment aid is intended to promote the economic development of certain disadvantaged areas within the European Union in order to redress regional disparities. The Guidelines specify rules for the selection of regions which are eligible for regional aid and define the maximum permitted levels of this aid. Under Ireland's current Regional Aid Map, regions covering 50% of the population are entitled to grant Regional Aid.

Under the Regional Aid Map, the highest rates were afforded to the Border, Midlands and West (BMW) region. For the period of 2007 to the end of 2010, the region qualified for a rate of 30% for large firms; for medium and small firms the rates were 40% and 50% respectively. In accordance with the Guidelines, a reduced rate of aid for the BMW region is applicable from 1 January 2011: 15% for large companies, 25% and 35% for medium and small firms respectively. The maximum aid rates for eligible regions within the Southern and Eastern Region remain at 10% for large companies, 20% and 30% for medium and small firms respectively. No scope exists to renegotiate aid rates within the current Guidelines, which are due to expire on 31 December 2013. There are no proposals as yet from the European Commission on new Regional Aid Guidelines to apply after the end of 2013.