Vol. 572 No. 3
187 Mr. Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment if it is the intention of her Department to review the range of supports currently available to small and medium size enterprises; if so, when such a review will commence; the length of time such a review will be expected to take; and if she will make a statement on the matter. [23029/03]
188 Mr. Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment if her Department intends to review the supports currently available to multinational companies; if so, when such a review will commence; the length of time such a review will be expected to take; and if she will make a statement on the matter. [23030/03]
I propose to take Questions Nos. 187 and 188 together.
The 1990s was a period of unprecedented growth for the country and we continue to enjoy the benefits of the social and economic progress made in that period. The economy, however, is undergoing fundamental change and it must be recognised that Ireland is no longer a low cost location for investment. Nevertheless the country maintains important and key attractions as a base from which both indigenous and foreign direct investment can profitably do business.
We already have a proven track record in nurturing indigenous enterprise and in attracting foreign investment in key growth areas such as biotechnology and the information and communications technologies. Furthermore, the Government is investing unprecedented funds in developing a world-class research community in the country, which will build on our strengths and help us adapt to the changing demands of a knowledge-based, research and innovation driven European economy.
Fundamental changes are taking place both in our own economy and internationally, including increased competition from EU accession countries for mobile investment. Consequently, new foundations are needed for enterprise policies that will help create the conditions to support a sustained shift to a higher skilled, higher value added and a more knowledge intensive enterprise economy. However, any new business support measures will have to meet prevailing EU State aid regulations and EU regional aid guidelines.
189 Mr. Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment if additional funding will be made available to indigenous industry in view of the relocation of many multinational companies to EU accession States and third world countries to avail of cheap labour. [23031/03]
The Irish economy is undergoing fundamental change at present and Ireland is no longer a low cost location for investment. A key component of the Government's strategy to tackle the competitiveness challenge from countries with lower labour costs is to increase the levels of investment in research, technological development and innovation in indigenous industry. This will assist indigenous companies to move up the business value-chain and to safeguard employment. In recognition of the importance of this task, the budget for Enterprise Ireland, targeted at increasing research and innovation in Irish companies, has been significantly increased in recent years.
In May last, a new financial support package for indigenous industry was launched by Enterprise Ireland, which is more suitable to clients, needs. The agency has also recently launched the €10 million competitiveness fund, which is designed to build competitiveness in small and medium enterprises. The development of export markets is a critical factor in sustaining indigenous companies and Enterprise Ireland's range of supports is designed to facilitate this objective.
Fundamental changes are taking place in our economy and internationally, including increased competition from EU accession countries for mobile investment. Consequently, new foundations are needed for enterprise policy that will help create the conditions to support a sustained shift to a higher skilled, higher value added and a more knowledge intensive enterprise economy. In this connection, I have recently set up an enterprise strategy group, under the chairmanship of Mr. Eoin O'Driscoll. I have asked the group to develop strategic policy recommendations for enterprise in Ireland for the period up to 2010 and to report within six to nine months.
