Luke Flanagan (Roscommon-South Leitrim, Independent)
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37. To ask the Minister for Jobs, Enterprise and Innovation the expected cost savings to be achieved by the new structure; the expected cost of the transition for 2013; if he will confirm that these funds are not reducing funds available to start up enterprises and the initiatives necessary to support job creation for 2013; and if he will make a statement on the matter. [24362/13]

Richard Bruton (Dublin North Central, Fine Gael)
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Significant progress to implement the Government Decision on the reform of the supports to the micro and small sector has been made. A new Micro and Small Business Division has been established in Enterprise Ireland which, through its Centre of Excellence, will lead, develop and manage the enhancement of support services, delivered through the LEOs, that generates innovative, small and micro-enterprises capable of increasing, employment, exports and value added to the Irish economy.

Also, on Monday last, along with my colleagues the Minister for Environment, Community and Local Government Phil Hogan and the Minister for Small Business John Perry, I published the Framework Service Level Agreement (SLA) and launched the Branding/Logo for the LEOs. The Framework SLA is an important step in the overall project since it sets out clearly budgets and project evaluation methods as well as a series of demanding metrics and targets for the delivery of services by the LEOs, including the numbers of jobs and businesses to be supported. An Enterprise Development Plan for each LEO will be devised annually by the LA/LEO, agreed by EI and appended to the SLA to take account of local circumstances in that the plan will address agreed metrics and include targets for each LEO. A key element of this new structure will be the consistent application of policy across all LEOs from the evaluation of applications to the spending of budgets allocated.

The Capital allocation of €15m for 2013 is exclusively for the allocation of financial grant aid to eligible businesses and the delivery of soft supports.

Whilst there will be administrative efficiencies achieved by the dissolution of 35 separate legal entities, initial direct savings will be modest. However, over time there will be savings in a number of areas such as for example the removal of costs associated with the individual company status of each CEB, the closure of some CEB offices, and the introduction of more streamlined and centralised reporting processes and payroll mechanisms. It is anticipated that any costs associated with the transition will be minimal. Over time, the funding allocation and the allocation methodology will be reviewed by my Department and EI to ensure that opportunities for business development are maximised and that value for money is being secured across the LEOs.