Dáil Éireann debate -
Wednesday, 3 Jun 1992

Vol. 420 No. 6

Written Answers. - Consolidation of Irish Companies.

Ruairí Quinn

Question:

51 Mr. Quinn asked the Minister for Industry and Commerce if he has any proposals to encourage the strategic, alliances of Irish based companies, including semi-State companies, publicly quoted companies and private companies with other European companies within the Community so as to consolidate these Irish companies within the Single Market; and if he will make a statement on the matter.

Minister for Industry and Commerce (Mr. O'Malley)

The Completion of the Single European Market presents small and medium-sized enterprises (SMEs) with significants opportunities and challenges. The Government's Programme for Industrial Developments 1989-93, which is supported by EC structural funds and which was placed in the Oireachtas Library on 23 January, 1990, contains a number of sub-programmes specifically directed to develop small and medium-sizes industry.

Under the Sub-Programme for the Development of Medium-sized Irish-owned industry, the IDA operate a Business Partnerships action which is intended as a key element in helping Irish SMEs to overcome the problems associated with relatively small scale businesses in attempting to penetrate international markets.

The objective of Business Partnerships is to stimulate an accelerated rate of growth among Irish companies by identifying and promoting potential for alliances between Irish and overseas companies. These alliances may take a variety of forms, ranging from simple sub-contracting relationships through licensing and franchising arrangements or technology transfers to full-blown joint ventures with joint shareholding. The action is of particular relevance to SMEs in the context of the completion of the Internal Market.

Eleven partnership arrangements were concluded in 1991, five from Europe, four from North America and one each from Japan and Israel. A further 30 were under active negotiation. Sectors involved included food, engineering, graphics and jewellery.