John Ellis
Question:36 Mr. Ellis asked the Minister for Enterprise and Employment if the reduction in the Forbairt capital allocation will hinder the development activities of Forbairt; and if he will make a statement on the matter. [2736/95]
Written Answers. - Forbairt Capital Allocation.
I take it that the Deputy is referring to the Exchequer allocations for Forbairt's grants to industry budget recently published in the Abridged Book of Estimates for 1995.
First, I would point out that Forbairt's overall grants to industry budget is made up of two elements, Exchequer grants and own income. The principal source of own income is European Social Fund receipts which derive from Forbairt's expenditure in the training and employment grants area.
While the 1995 Exchequer contribution for the grants to industry budget is down compared to 1994, the allocation reflects the following: firstly funding for the scientific research grants scheme and the basic research awards included in Forbairt's 1994 grants to industry budget has this year been transferred to the science and technology subhead of the Department's Vote. The amount involved is £1.3 million, and second European Social Fund receipts are expected to be substantially higher this year. Taking account of both these factors Forbairt's overall grants to industry budget will be slightly above their 1994 outturn. The actual position will be published in the Revised Book of Estimates.
In addition to its own voted funds Forbairt will also have access to other substantial funds from related EU supported measures. Forbairt will in fact manage a number of these funds on behalf of my Department. One such fund is a research and development initiative which will provide up to 50 per cent support to companies undertaking research and development and which will have a budget of £20 million in 1995. Under another initiative close on £8 million will be available in 1995 to provide seed — venture capital to suitable companies on the one hand and support for companies in traditional industrial sectors to adjust to changing market forces on the other.