Dessie Ellis (Dublin North West, Sinn Fein)
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Question 33: To ask the Minister for Jobs, Enterprise and Innovation the cost of the administration of each of the enterprise development agencies; and if he will estimate the savings that would be achieved if the enterprise development agencies' administration function was amalgamated and training synergies found with the new further education body SOLAS. [28880/11]

Richard Bruton (Dublin North Central, Fine Gael)
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The estimated cost associated with the administration function (back-office, corporate services, corporate facilities etc) of Enterprise Ireland for 2011 is €13.2m out of an estimated operating budget (pay and non-pay) of €90m. This represents 14.7% of the overall operating expenditure. The balance of the operating costs, in addition to operating a network of 9 regional offices and 31 overseas offices, includes the salaries and other costs of staff who directly engage with client companies and who provide a range of services aimed at supporting and incentivising companies to invest more, employ more and know more in the context of winning export sales.

The current exchequer allocation for the network of County and City Enterprise Boards is €12.242m. In addition to the day-to-day operational running costs of the CEB network, this figure includes the salaries of business advisors and other staff who provide direct advice and mentoring to client companies which represents a strong investment in the micro-enterprise sector, notwithstanding the additional level of demand on CEB services generated in the current difficult economic climate.

The estimated cost associated with the administration function (back-office, corporate services, corporate facilities etc) of IDA Ireland for 2011 is €10.27m out of an estimated operating budget (pay and non-pay) of €41.7m. This represents 25% of the overall operating expenditure. The balance of the operating costs, in addition to operating a network of regional and overseas offices includes the salaries and other costs of staff who directly engage with client companies with the aim of winning and embedding foreign direct investment in this country.

In the case of Shannon Development, the estimated cost associated with the administration function (back-office, corporate services, corporate facilities etc) for 2011 is €3.1m out of an estimated operating budget (pay and non-pay) of €17m. This represents 18% of overall operating expenditure. The balance of the operating costs, includes the salaries and other costs of staff who directly engage with client companies and who provide a range of services aimed at supporting and incentivising companies to invest more and employ more.

Currently, Forfás is carrying out work on the potential of increasing existing shared services within the agencies. Potential cost savings have not yet been quantified. My colleague, the Minister for Public Expenditure and Reform is also carrying out another exercise on the potential for shared services across the public sector which is at an early stage.

The Government Decision on the establishment of SOLAS sets out the Government's strategy for the integration of further education provided by the VECs and training provided by FAS. The training provided by the enterprise development agencies under the aegis of my Department such as Enterprise Ireland, IDA Ireland and the CEBs are usually part of an overall package of funding for grant aided industry and while it is anticipated that that these agencies will develop linkages with SOLAS as its role evolves, it would be impossible, at this point to quantify the level or extent of savings that might emerge from any synergies found.