Jonathan O'Brien (Cork North Central, Sinn Fein)
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114. To ask the Minister for Jobs, Enterprise and Innovation the set up costs and ongoing administrative costs per year associated with the microenterprise loan scheme. [42624/13]

Richard Bruton (Dublin North Central, Fine Gael)
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Details of the set-up costs of Microfinance Ireland (MFI) were set out in MFI's accounts for the period ended 31 December 2012. The annual report and accounts for 2012 were laid before the Houses of the Oireachtas in July 2013.

The accounts reported that during the period to 31 December 2012, the company incurred costs of €278,000, which were of an exceptional nature, but which were in furtherance of the ordinary activities of the company. These exceptional costs were incurred by Social Finance Foundation (SFF, the parent company of MFI) on behalf of the Department of Jobs, Enterprise and Innovation and included the following: legal Costs of €113,000 prior to incorporation and also relating to the setup of MFI; projects Costs of €165,000 prior to incorporation and also relating to the setup of MFI. These costs, totalling €278,000, have now been reimbursed by Microfinance Ireland to SFF.

Separately, I have been advised by MFI that the annual administration costs for MFI for the year to December 2013 are forecast to total approximately €900,000. Salaries are the largest component of MFI's annual budget and are anticipated to total less than €500,000.

Other components of the MFI budget include: approximately €200,000 for marketing costs, which are seen as essential in building awareness of the scheme among micro-enterprises and generating a pipeline of loan applications; and approximately €240,000 for overheads, such as premises, IT and employer's PRSI.

Michael Healy-Rae (Kerry South, Independent)
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115. To ask the Minister for Jobs, Enterprise and Innovation the position regarding establishing a venture capital fund for island enterprises and microenterprises (details supplied); and if he will make a statement on the matter. [42778/13]

Richard Bruton (Dublin North Central, Fine Gael)
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Venture capital provides investment capital, as opposed to credit, to start-up firms and small businesses with perceived long-term growth potential. It is a very important source of funding for start-ups that do not have access to capital markets. It typically entails high risk for the investor, but it has the potential for above-average returns. Venture capital can also include managerial and technical expertise. It facilitates company growth and job creation and continues to support the creation of innovative and internationally oriented start-ups that can go fast to market and scale. These high-growth innovative Irish companies are in fast growing sectors, including ICT, life sciences, high tech manufacturing and the green economy.

Last May I announced a new call for expressions of interest under the €175 million Seed and Venture Capital Scheme 2013-2018, which will see the continuation of the Government's support for innovative Irish SMEs. The Scheme is targeting an additional €525 million in funding from the private sector, which will mean a total fund of €700 million available for investment over the lifetime of the Scheme.

The Venture Capital Funds committed to under this Scheme, as well as the Seed and Venture Capital Scheme 2007-2012, can invest in any opportunities on the Islands that fit their respective fund strategies.

Recognising that many of the Island based enterprises are microenterprises, the deputy will be aware that I established a Microenterprise Loan Fund in 2012, through Microfinance Ireland to provide microenterprises with access to loans of up to €25,000. Island microenterprises can contact their local County Enterprise Board and Microfinance Ireland concerning the operation of this Fund.