David Andrews
Question:178 Mr. Andrews asked the Minister for Tourism and Trade if he has carried out a full review of the effectiveness of the market development fund. [5814/95]
Written Answers. - Market Development Fund Review.
The market development fund operated between October 1992 and March 1993, after which a review of its effectiveness was carried out. The fund was established to provide temporary support to companies in order to maintain competitiveness and associated employment and to help companies adjust to the new market conditions arising as a result of the currency crisis of late 1992.
The review found that four of the 704 companies assisted went out of business during the six-month period that the fund was in operation and that employment numbers in the supported companies were virtually maintained at the level originally approved.
The review also noted the contribution made by the assisted companies in ensuring their future viability. In applying for support, companies were required to submit plans outlining the range of actions which they were taking to overcome current and possible future currency related difficulties. These actions, which included cost cutting, increasing productivity, improving services to justify higher prices and market diversification, were later supplemented by a serious of treasury management seminars run by ABT in December 1993.