Rose Conway-Walsh (Mayo, Sinn Fein)
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146. To ask the Minister for Enterprise, Trade and Employment the reasons for excluding domestically trading companies from direct financial assistance to facilitate expansion or growth activities in the White Paper on Enterprise 2022-2030; and if he will make a statement on the matter. [9274/23]

Simon Coveney (Cork South Central, Fine Gael)
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The White Paper recognises the important impact domestically trading companies have on our economy. Indeed, enabling locally trading sectors to thrive is one of the seven key enterprise objectives which will be prioritised by Government in the period to 2030.

Locally trading sectors account for a significant number of the total number of firms in Ireland and, notably, for a high proportion of employment. The White Paper highlights the critical role these firms play in placemaking, contributing to the economic and social fabric of towns and villages across Ireland.

The Local Enterprise Offices provide a range of direct interventions for domestically trading companies including various training and advisory programmes, as well as acting as a ‘first stop shop’ providing signposting for all firms to find out about resources and programmes available from government departments and agencies.

As part of the White Paper implementation, the LEO network will map and clearly communicate the broad range of government programmes and advisory services available for firms, including locally trading firms.

The LEOs will continue to enhance their advisory services for locally trading firms to improve productivity particularly around digitalisation and reducing energy and carbon emissions, which will have positive spillover effects on the wider economy. Additionally, the mandate of the LEOs has also been expanded to cover firms with over 10 and up to 50 employees, this will ensure additional training, consultancy, and mentoring services will be made available to more locally trading business.

In line with the priorities identified in the White Paper, the LEOs will also pilot opportunities to subsidise implementation costs for digitalisation and green initiatives that assist this cohort of firms to engage in the twin transition.

There are challenges to providing direct grant support to domestically trading firms including, avoiding excessive displacement and funding activity that would have taken place anyway, particularly given limited public resources.

Another challenge is to avoid raising barriers to entry for entrepreneurs and new firms by supporting incumbents, thereby reducing competition and innovation for consumers.

All firms will however benefit from the Government’s commitment to addressing a range of cross-cutting competitiveness issues related to infrastructural investment, taxation, regulation and talent. Enhancing our performance across these horizontal issues will deliver benefits to firms in all sectors, including domestically trading companies.