Rory O'Hanlon
Question:146 Dr. O'Hanlon asked the Minister for Enterprise and Employment if funding is available from Forbairt to create new jobs replacing jobs where the workers have been made redundant. [5587/97]
Written Answers. - Job Creation.
Forbairt's general grant giving powers are set out in the Industrial Development Acts, 1986-95. Within that overall context, Forbairt is actively involved in assisting its client companies to formulate longer term development plans and strategies and, where appropriate, in providing financial assistance to ensure that such development plans are successfully implemented to enable companies to safeguard existing jobs and to grow sales and employment in the long-term.
In situations where the dynamics of the international marketplace force companies to take actions which may result in closure or job losses, at the least in the short-term, Forbairt is prepared to intervene, with its range of expertise and funding services, including investment in ordinary equity or preference shares together with assistance towards management and new product development, when there is a prospect of retaining, or replacing it with, a viable enterprise. Examples of such assistance include assistance towards management or worker buy-outs where Forbairt works with existing management, or in a minority of cases, workers, to maintain the existing business in the case where existing shareholders have taken the decision to exit from the business, or seeking new investors to revitalise or replace an existing business.
In addition, the Operational Programme for Industrial Development 1984-97 contains a new promoting adjustment measure designed to provide financial support and advice towards helping traditional industry to adjust to increasingly demanding levels of competition. This measure is administered by Forbairt under the auspices of a steering group appointed by the Minister for Enterprise and Employment. For administrative purposes it is known as the change programme and specifically addresses the situation where job losses are expected to occur as companies adjust to new competitive pressures.
The aims of the change programme are: to promote R & D, enterprise, innovation and the development of product/market strategies in SMEs; to encourage firms under competitive pressure to diversify; to help firms to move out of products or markets in decline; and to promote joint ventures and linkages to make individuals and firms more competitive.
The programme provides funding assistance of up to 50 per cent of costs incurred up to a maximum of £30,000. Eligible initiatives include developing and improving business systems; strengthening management and other personnel resources; building partnership arrangements; raising new funding for the business; improving customer focus and ability to serve market needs and environmental management. The programme has a budget of £7 million over the four years of the operational programme and is targeted at companies employing 25-100 people in traditional manufacturing sectors including food companies which have not received FEOGA support.