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Dáil Éireann debate -
Wednesday, 15 Feb 1995

Vol. 449 No. 2

Written Answers. - County Enterprise Boards.

Robert Molloy

Question:

21 Mr. Molloy asked the Minister for Enterprise and Employment if he has satisfied himself with the operation of the county enterprise boards which have been established in each county; the proposals, if any, he has to make changes in regard to their operation and administration; and if he will make a statement on the matter. [1918/95]

Ned O'Keeffe

Question:

23 Mr. E. O'Keeffe asked the Minister for Enterprise and Employment if he has satisfied himself with the operations of the county enterprise boards in creating jobs; the proposals, if any, he has for co-ordination between boards in different areas of the country who grant aid projects in one county to the disadvantage of a business in a neighbouring county; his views on whether the creating of jobs in one area should be at the expense of jobs in other areas; and if he will make a statement on the matter. [3171/95]

Ivor Callely

Question:

64 Mr. Callely asked the Minister for Enterprise and Employment the progress and success of the county enterprise boards; the submissions, if any, he has received to amend or alter the role of the county enterprise boards; and if he will make a statement on the matter. [3412/95]

I propose to take Questions Nos. 21, 23 and 64 together.

The county enterprise boards have been operating subject to interim guidelines since they were set up in late 1993. Since establishment, their operations have largely been confined to the provision of grants for small businesses starting up or expanding. Based on returns supplied by the 35 county enterprise boards for 1994, their first full year of operation, some 1,776 full-time and 263 part-time jobs were created at a total cost of around £5 million paid in grants from the Exchequer. In view of the interim, start-up nature of their operation to date, I am satisfied with this performance by the boards and would expect to see it enhanced in future years by the wider range of enterprise development supports which will be available to the boards under the Operational Programme for Local Urban and Rural Development, 1994-99.

Under the Operational Programme, which was launched by the Taoiseach on 2 February 1995, the county enterprise boards will be able to avail of Structural Funds supports for their current range of activities and for additional activities, including the provision of advice, counselling and mentoring supports for small business start-ups and expansions.
In order to enable them to avail fully of these opportunities, I am pressing ahead with arrangements to establish the county enterprise boards as independent, locally-controlled enterprise development companies, limited by guarantee, in accordance with an agenda for local enterprise developed in their county enterprise plans.
These changes, when effected, will meet the submissions made to me, in the main by the CEBs themselves, calling for a wider and more independent remit for the boards. I should also mention the recommendation of the Task Force on Small Business that the CEBs should form the administrative base of a national business information network catering for small business. This is entirely consistent with the expanded role of the CEBs which I have already outlined. I am examining proposals for the implementation of this recommendation.
The county enterprise boards were established to promote local enterprise within their functional areas. However, they do not operate in isolation from each other. The boards have been urged to consider the prospects for developing co-operation in the form of networking between themselves, between the boards and other agencies and between the boards and my Department. The boards are also expected to maintain contact with each other relating to their common mandate; to share ideas; to assist each other in solving problems as they arise, particularly where counties are contiguous; and in the promotion of trans-county initiatives.
Overall co-ordination and supervision of the county enterprise boards is exercised by my Department. The main State development agencies under my Department's aegis, including Forbairt and SFADCo, are represented on the boards and their evaluation committees, which are obliged to have regard to the requirements of the operational programme so as to identify activities most likely to be "additional" and to avoid any which would depend on taking market share from existing businesses in order to survive. At national level, the Interdepartmental Committee on Local Development, on which my Department is represented, and the Monitoring Committees of the Community Support Framework and the Operational Programme for Local Urban and Rural Development, on both of which my Department will also be represented, will be concerned to maximize the effectiveness of the various local development initiatives now in place so as to ensure maximum job creation and to minimize difficulties, such as displacement.
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