Written answers

Thursday, 1 December 2011

Department of Enterprise, Trade and Innovation

State Agencies

5:00 pm

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Question 83: To ask the Minister for Jobs, Enterprise and Innovation the underspends and savings in Enterprise Ireland programmes in 2010 and 2011. [38099/11]

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Question 84: To ask the Minister for Jobs, Enterprise and Innovation the spending carried over in Enterprise Ireland programmes in 2010 and 2011. [38100/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 83 and 84 together.

Within the Vote of this Department, programme funding is provided to Enterprise Ireland through two Subheads. Funding under Subhead F covers the cost of Science, Technology and Innovation programmes. This includes significant Research and Development programmes operated by Enterprise Ireland, aimed at providing direct and indirect research development and innovation supports for indigenous companies, supporting collaboration between industry and third level researchers and supporting the commercialisation of State funded research. In 2010 there were no savings or underspends arising in these programmes. While there was no capital carryover in the Enterprise Ireland F subhead in either 2010 or 2011, €2.15m of Own Resource Income generated by Enterprise Ireland in 2009 was profiled for and spent in 2010.

Funding under Subhead D2 provides for direct supports to Irish companies at all stages of development in respect of potential job creation and export growth. It is aimed at supporting companies to scale and grow, building company capability in leadership, management and market skills, supporting companies in exploring new opportunities, and supporting business infrastructure. Financing is through a mix of grants, equity and seed and venture capital investments, and contributions to third party agencies. In 2010, there were savings of €3.3m under this subhead, which were vired to the County Enterprise Boards to support the micro-enterprise sector. There was no carryover in either 2010 or 2011.

The Temporary Employment Subsidy Scheme (Subhead L2) was introduced to help employees maintain their jobs while at the same time assisting employers to retain their productive capacity. The Scheme was operated as part of an Irish State Aid scheme approved under the European Commission's Temporary Framework on State Aid, introduced in December 2008. The Framework was brought in on a temporary basis to allow Member States increased flexibility to assist companies in the real economy that were facing difficulties in accessing finance as a result of the economic downturn.

In order to qualify for support enterprises had to commit to retaining a multiple of the number of jobs they were in receipt of subsidies for until the end of November 2010. An underspend of €21.14m arose in 2010 under the scheme, due to approved enterprises not maintaining the required number of committed jobs, as defined for the purposes of the scheme, for a given claim period. An amendment to the Temporary Framework by the European Commission in December 2010 meant that it was not possible to secure approval for any prolongation of this scheme.

Outturns under subheads D and F for 2011 are not yet available and will be published in the Revised Estimates Volume 2012.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Question 85: To ask the Minister for Jobs, Enterprise and Innovation the underspends and savings in Industrial Development Agency programmes in 2010 and 2011. [38101/11]

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Question 86: To ask the Minister for Jobs, Enterprise and Innovation the spending carried over by IDA Ireland programmes in 2010 and 2011. [38102/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 85 and 86 together.

The Exchequer allocation to IDA Ireland in 2010, as outlined in the Revised Book of Estimates for 2011, amounted to €130.7m as follows:

Current Expenditure

Subhead C1

Pay €24.530m

Non-Pay €14.710m

Total Current Expenditure €39.240m

Capital Expenditure

Subhead C2 - Grants to Industry €90.460m(incl €5m carryover from 2009)

Subhead C3 - Grant for Industrial Property €1m

Total Capital Allocation €91.460m

Total Exchequer Allocation for 2010 €130.7m

There were no savings arising on foot of these allocations in 2010.

The Exchequer allocation to IDA Ireland for 2011 is €124.577m as follows:

Current Expenditure

Subhead C1

Pay €24.667m

Non-Pay €13.910m

Total Current Expenditure €38.577m

Capital Expenditure

Subhead C2 - Grants to Industry €85m

Subhead C3 - Grant for Industrial Property €1m

Total Capital Allocation €86m

Total Exchequer Allocation for 2011 €124.577m

I have been informed by IDA Ireland that savings of approximately €900,000 will arise in 2011 under Subhead C1, Pay. No savings are envisaged in relation to Capital Expenditure.

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