Dáil Éireann debate -
Tuesday, 25 Oct 1994

Vol. 446 No. 3

Written Answers. - Community Support Framework.

Richard Bruton

Question:

109 Mr. R. Bruton asked the Taoiseach the base year figures for 1993 and the target levels for 1999 in respect of gross job creation, construction jobs, new business start-ups and the unemployment rate in designated disadvantaged areas as outlined on page 58 of the European Commission's Community Support Framework. [1822/94]

The Taoiseach

The information sought relates to the local urban and rural development programme now being finalised with the European Commission. This programme comprises sub-programmes on local enterprise, integrated development of disadvantaged and other areas and urban and village renewal. The objectives of the programme are based on the experience to date in a number of national and EC funded socio-economic development projects which were largely of a pilot nature. It is difficult, therefore, to draw from base line data and targets achieved in these pilots and apply them to a much more comprehensive and longer-term development plan.

However, the CSF provides that "the principal objectives relating to enterprise and employment are to achieve the following increases by 1999 as compared with the 1993 figures: an increase in gross job creation of 16,900, together with 3,000 work year jobs in construction; an increase of 5,900 in new business start-ups and an improvement from 25 to 50 per cent in the survival rate of new businesses. The unemployment rate in designated disadvantaged areas will be monitored over the duration of the CSF." These target levels provided in the CSF for activities under the programme are advance forecasts which will be revised in line with the completion of plans by County Enterprise Boards, partnerships and other communities and local authorities. This is in keeping with the "bottom up' approach under this programme that priorities, programmes and targets for local development should be set at local level. The base line data for 1993 provided in the plans will be reviewed by the monitoring committee of the programme to ensure uniformity of approach and the integrity of the data.

The job creation and business startup figures are based on the experience in area partnership and county enterprise boards to date, on forecasts of expected activity in partnerships to be established, and in construction work based on a given level of investment. The question of the survival rate is very difficult to predict. The Task Force on Small Businesses pointed out that the attrition rate of new small business is very high, in some cases over 50 per cent. The specific nature of county enterprise boards and their counselling and mentoring role should substantially improve this rate.

Ultimately the specific type of baseline data to be used and targets to be set will be agreed with the monitoring committee for the programme.