Vol. 728 No. 6
29 Deputy Dara Calleary asked the Minister for Enterprise; Trade and Innovation the position regarding the review of Employment Regulation Orders and Registered Employment Agreements as set out in the National Recovery Plan; when he intends to publish the review findings and if he plans to make provision in the legislative programme for any legislative changes that may occur. [5972/11]
The review of the joint labour committee, JLC, and registered employment agreements, REA, mechanisms was initiated on 8 February 2011 last and is being undertaken jointly by Mr. Kevin Duffy, Chairman of the Labour Court acting in an ad hoc capacity, and Dr. Frank Walsh, School of Economics, UCD, under specific terms of reference. Deputy Calleary was party to their appointment and I recognise his work on this.
The review is a commitment under the EU-IMF programme, which provided not only for agreement on the terms of reference but also the programme of actions arising. Public notices were placed in national newspapers in early February and key stakeholders were contacted to seek submissions by 25 February last. I understand that the review team subsequently met a number of stakeholders to discuss their submissions. These are being analysed by the review team.
The programme for Government provides for a commitment to reform the joint labour committee structure, beginning with the appointment of independent chairpersons to JLCs, who will retain a casting vote. Reform options requiring examination include the rate of pay for atypical hours, such as Sunday premia.
We need to ensure that statutory wage fixing mechanisms work effectively and efficiently and that they do not have a negative impact on economic performance and employment levels. Ireland is the exception in Europe in having a combined system of highly centralised bargaining, a relatively high national minimum wage and further higher sectoral minima that are decided by joint labour committees and extend to entire sectors. No other European country has such a complex web of wage determination mechanisms. It is hardly surprising, therefore, that these long-established mechanisms came under strain against the background of a severe contraction both by international and historical standards. While firms in sectors covered by JLCs and REAs may have been able to sustain high rates of pay when demand was strong enough for high labour costs to be passed on, this proved to be more problematic when these sectors experienced a major collapse in demand.
It is important to note that employment regulation orders, EROs, and REAs cover more than rates of pay. In many cases certain conditions of employment are also governed by the agreements. As well as pay-related issues such as overtime and Sunday working rates, certain agreements include clauses relating to travel expenses, annual leave, dispute resolution, and board and lodging. These additional clauses may impose rigidity in the labour market and some have been superseded by economy-wide employment legislation.
Perhaps of most concern is that EROs and REAs impose rigidity that reduces the flexibility of the labour market to adapt in times of difficulty. The rate of adjustment of a number of the sectoral agreements, for example in construction, retail, hospitality and agriculture, to the current economic crisis, while welcome, has been slow. Reform of these systems is necessary to ensure a flexible labour market.
I expect the review will be completed and submitted to me before mid-April and will then be published. I intend to engage directly with the European Commission on its contents and report to the Government on my proposals for follow-up action, including making any legislative provision which may be necessary.
I take the opportunity to wish the Minister and his team every success. As we reverse our roles for Question Time, we could have given that answer ourselves a few weeks ago so I take it no progress has been made in terms of publishing the report.
The Minister identified in his answer the difficulties these mechanisms are causing, particularly their inability to respond to changing market situations. This is one of the reasons we want to get the review up and running as quickly as possible. I am concerned that the programme for Government states, "We will reform the Joint Labour Committee structure, beginning with the appointment of independent chairpersons to JLCs, who will retain a casting vote." This seems to predetermine one of the report's major outcomes prior to it being published.
I will point the Minister to IBEC's ten-point plan. I know Fine Gael is obsessed with a five-point plan. IBEC's ten-point plan shows that one of the most objectionable aspects of the JLC, joint labour committee, system is the casting vote of a chairman. With regard to this review, has the Minister predetermined the outcome of any other issues, either on his part or by agreement with his partners in Government? Will the reforms the Minister proposes to implement be part of the so-called jobs budget due to be introduced within 100 days of the election?
I thank the Deputy for his good wishes and I pay tribute to his work while Minister of State with responsibility for labour affairs. He is correct to say that no progress has been made towards publication of the report but I remind him it was he who set the timeframe for the report to be presented and that date has not yet been reached. It is expected that this report will be on time and the recommendations will be available then.
Deputy Calleary is also correct in saying that the programme for Government includes having an independent chair and a casting vote. It is the view of Government that this system needs radical reform but not wholesale abandonment. We need to have a balanced and fair system for setting wages and one that is able to respond quickly to changed circumstances. Much of what is here is archaic in the way it was formulated. It is too cumbersome in the way it responds and it is too inflexible. We can achieve radical reforms without abandoning this system and this is my ambition.
On the question of the timescale, it would be the ambition to be in a position to substantially move or indicate the direction of legislation within the 100 days framework but getting legislation through the House would necessitate debate in committees. The Government will not guillotine legislation in a new reformed Dáil but it will be necessary to give time for the House to consider this issue.
There will be support from this party for reform of the system because it is archaic. The Minister referred to the pay rates being high. Is this an agreed position with his partners in Government? When does the Minister intend to sign the order to increase the minimum wage rate, as per the commitment in the programme for Government?
The issue of the minimum wage is under consideration and it is a commitment in the programme for Government. I believe that in order to be successful, these projects need to be kept in harness. As part of increasing the minimum wage a balanced package will require greater flexibility in setting wages and other terms and conditions related to it. I would regard these two processes of reforming the REA, registered employment agreements, and the JLC system and the increasing of the minimum wage rate, as being paired. The reduction in the minimum wage rate was part of the EU and IMF agreement and it will have to be discussed with the IMF and the EU with regard to its implementation. It is important, both from an Irish point of view and from the point of view of satisfying the EU and IMF, that the two issues be paired. It must be shown that we are introducing a balanced package to respond to the needs of the labour market.
30 Deputy Peadar Tóibín asked the Minister for Enterprise, Trade and Innovation the analysis done by him on the effects of the measures included in the programme for Government on businesses in the Border counties; the actions he will take to increase the competitiveness and viability of enterprise in the Border counties, in view of the fact that measures included in the programme for Government, including increasing the top rate of VAT to 23% will encourage persons to move across the Border to avail of goods and services and will thus put pressure on business in the Border counties; the estimated loss of turnover and jobs in the Border region from increasing the top rate of VAT; and if he will make a statement on the matter. [6031/11]
The programme for Government is a national programme, aimed at fixing the banking system, restoring growth and confidence to the economy and supporting the protection and creation of jobs. As Minister with responsibility for jobs, enterprise and innovation, my objective is to create the conditions across all sectors of the economy and in all regions — including the Border region — to facilitate job creation. In this context, and in collaboration with my colleagues in Government, I will identify cross-government actions that can be taken to cut costs to business, remove obstacles to employment creation, and stimulate the domestic economy.
The reference which the Deputy makes to the top rate of VAT is only one aspect of the Government's wider fiscal policy in the programme for Government which seeks to address overall fairness in the tax system for individuals and business alike. The Deputy will know that part of the programme agreed between the previous Government and the EU-IMF was to increase the VAT rate over time. As well as limiting the top rate of VAT at 23%, the programme for Government undertakes to cut the 13.5% rate of VAT to 12% up to the end of 2013 to help labour-intensive economic activity; to maintain the corporate tax rate at 12.5%; to halve the 8.5% rate of employers' PRSI to the end of 2013 on those low-paid jobs paying up to €356 per week; and to implement a number of sectoral initiatives in areas that will create employment in the domestic economy. These include the travel tax and other elements of the Government programme such as improving access to research and development credits, a partial credit guarantee scheme for small business and many other proposals. The programme for Government must, therefore, be seen as an overall package of measures to stimulate growth across the economy and across all regions.
The issue of cross-Border shopping, which was evidenced a number of years ago, was influenced by a variety of factors, including the euro-sterling exchange rate and high inflation in the Republic of Ireland. These factors no longer apply with the same force as the euro is weaker against sterling and inflation is now higher in Northern Ireland than in the Republic.
I would point out to the Deputy that the programme for Government includes a commitment to work for greater economic co-operation with Northern Ireland to accelerate the process of recovery and the creation of jobs on the island. Businesses in the Border counties, in particular, are well-placed to benefit from such co-operation. In this context, my Department supports the work of InterTradeIreland, which assists SMEs across the island to develop North-South trade and business development opportunities. In addition, my Department's agencies, including Enterprise Ireland and the county enterprise boards, will continue to work with companies in the Border region to improve their competitiveness, productivity and viability.
Ba mhaith liom freisin comhghairdeas a ghabháil don Aire mar gheall ar a phost nua. Is mór an dúshlán é agus tá súil agam go n-éireoidh leis.
I refer to the Border region. The population of the six counties to the south of the Border is half a million people while approximately 800,000 people live in the five counties just north of the Border. This is a total of 1.3 million people, a not insignificant number comprising roughly 21% of the total population of the island. Due to partition, this region has become a zone of economic uncertainty. We all currently live in a zone of economic uncertainty called Ireland but the people living in these specific areas have to deal with further uncertainties. Over time there will be swings with regard to taxation and the Minister in his reply alluded to swings with regard to currencies and inflation. In the past, one side of the Border became a boom area and had unfair competitive advantages while the other side of the Border had become a ghost area.
Last January the English Government increased the VAT rate from 17% to 20%. If we had maintained our commitment to a 21% VAT rate, we would have near VAT harmonisation on the island of Ireland. The decision to increase the VAT rate will be detrimental to the Border economies and it will result in real outflows of shoppers, retail trades and funds across the Border. The effect will be felt in the Border counties and also down as far as County Meath and Dublin. Has the Minister the figures for the potential loss of revenue resulting from increasing the VAT rate? How many jobs will be lost as a result of this initiative?
I must first thank the Deputy for his good wishes which are very much appreciated. I recognise the problem described by Deputy Tóibín that people living in the Border region have to deal with currency movements, differences in tax regimes and in inflation rates and these are serious problems for them. A Government which is committed to finding an extra €9 billion through either tax increases or savings will have to look at unpalatable options. That commitment has to try to balance different needs. In envisaging a cap on the VAT rate, we are also envisaging immediate changes in the tax mix in order to help competitiveness. I refer to the cutting of employers' PRSI contributions which will improve another dimension of the tax mix for those competing across the Border. The reason a cap exists in this regard is because we recognise there is a constraint. Serious problems arose when the gap was very wide.
On the question of estimating the impact, such estimates are not available to my Department. In February 2009 the Revenue Commissioners and the CSO prepared a report attempting to calculate the value of cross-Border trade at that stage. They had an estimate of, I believe, €350 million to €500 million going across the Border. Obviously that waxes and wanes with currency and tax issues. Clearly there are swings and roundabouts. For example, while the excise duty on whiskey is higher in the South, it is lower on beer, petrol and diesel. The Minister for Finance is always conscious of the impact on cross-Border trade when trying to make those difficult balancing calls.
We will now proceed to——
I wish to come back, if I may.
I ask the Deputy to be very brief because we are over time.
My party is seeking to bring fiscal powers pertaining to the North of Ireland back to this island. Would the Minister consider trying to eliminate those swings and roundabouts over the years by working with the Administration in Stormont on harmonising the taxation rates on both parts of the island? The Minister mentioned the plan for the jobs budget a number of times. The ESRI estimated that 50,000 people will emigrate from this State over the next while.
We have actually gone over time.
This means that 13,000 people will emigrate while the Government is trying to get a jobs budget in place.
I accept that the challenges are huge, but the clear commitment of Government to introduce something in the first 100 days shows a serious sense of urgency in this regard. Equally the Deputy will be aware that we need to design workable proposals and time needs to be taken to ensure these are effective.
The notion that we ought to harmonise our tax regime with Northern Ireland, the UK or other countries raises many issues. Ministers for Finance need to cater to the needs of the day and need to strike a balance. Those who seek to make similar decisions have other considerations. Preserving independence in setting tax policy is an important element of the way in which we manage our affairs and I do not believe harmonisation would be on the cards, but there certainly would be consciousness of the impact on Border regions.
31 Deputy Clare Daly asked the Minister for Enterprise, Trade and Innovation his priorities for job creation; and if he will make a statement on the matter. [5957/11]
Job creation is central to our economic recovery and the programme for Government has job creation at its core. The role of my Department is to ensure we have the right policies in place that will support and increase our enterprise base in order to facilitate both job creation and job retention. It is only by creating the right environment for businesses to expand that we will see new jobs coming on stream.
We must champion the cause of companies that can create good jobs in sustainable activities. To this end, the Government has committed to the creation of a jobs fund within its first 100 days. This fund will facilitate the implementation of a number of measures across a range of Departments, including sectoral initiatives in areas that will create employment in the domestic economy and a long-term strategy to develop new markets in emerging economies. I have already started working with the enterprise agencies under my Department's remit to develop a jobs programme that will develop these various initiatives.
We will take action on a number of fronts such as access to finance; getting our cost base right; providing supports to help build businesses that are well run and innovative; helping companies win new markets; and reducing red tape and tackling barriers to entry. Under those headings there are specific initiatives which I can mention.
My Department is working with the Department of Finance, the Credit Review Office, Enterprise Ireland and Forfás to address the credit issues for viable SMEs, including the commitment in the programme for Government for the introduction of a temporary, partial credit guarantee scheme. The programme for Government also includes a commitment to construct a €100 million microfinance start-up fund that will provide start-up loans and equity, and will draw funding from the National Pensions Reserve Fund. These are a very important supplement to the real pressure on banks in providing credit to business.
Getting our cost base right is obviously very important. As I mentioned in reply to the earlier question, we have a commitment to reduce employers' PRSI and also to reduce the cost base in areas such as rents and energy costs.
On businesses that can become more innovative, as the Deputy will be aware the programme includes the assessment of new incentives for research and development to help small companies to participate. One of those proposals is that companies spending more than €100,000 would have access to credit without the additionality requirement. Firms that are innovative will drive efficiencies and employment growth.
Additional information not given on the floor of the House.
It is also important to help companies win new markets and the programme for Government contains targeted support for first-time exporters and through reform of public procurement to allow greater access for small and medium-sized businesses.
Reducing red tape and tackling barriers to entry must be addressed also. Ensuring competition within Ireland's domestic economy is vital to improving overall competitiveness and job creation. We must work across Government to ensure that there is a pro-business focus and that policies are aligned to the central goal of jobs.
Along with my colleagues in Government, I plan to develop initiatives in all of these areas and to target particular sectors where there is great opportunity such as the digital gaming industry and international education sector. The jobs programme that is currently in development will set out in more detail what is proposed.
I am confident that the range and depth of measures proposed by the Government in the programme for Government will get our economy moving and support the protection and creation of jobs.
When I asked the Minister for his priorities, I was hoping for something more substantial than the generalities that appeared in the programme for Government. I was hoping for an indication of a real plan to deal with the crisis of almost 500,000 people who are unemployed. The Minister did not mention the shovel-ready projects referred to in the programme for Government. Clearly many people are ready with their shovels but have not been given any nod from the Government as to the useful works that might be carried out. What is the date for starting projects such as metro north and how many people will be employed? How many people will be employed in the energy conservation measures mentioned in the programme for Government? We have yet to see any details in that regard.
We have seen no figures in terms of job creation; we have seen a job reduction figure. While his colleague is sacking 25,000 people in the public sector, I believe the Minister for Enterprise, Trade and Innovation has a target of 15,000 people in training and another 60,000 in internships. At best internships are white-collar apprenticeships and are certainly not jobs. I ask him to outline how he envisages these being regulated, where they will be created and what will be the prospect for full-time employment at the end.
There seems to be a clear flaw in the strategy in that there is a total reliance in the private sector. The Minister has mentioned tinkering with reducing employers' PRSI and VAT. How many jobs does the Minister believe will result? It is clearly not the 500,000 people who are on the dole. I ask the Minister to comment on the fact that there was a reduction of 31% in private sector investment last year. If we are to address the issue of job creation adequately, there clearly needs to be a State-led programme and I have not heard any detail or substance in that regard. In fact the programme provides the opposite; it is a reduction of jobs with the targeting of the semi-State sector. That is where the Government has ring-fenced the funding for its jobs programme. We are now at day 20 out of the 100 days and there are not too many extra shovels working at the moment. The clock is ticking and I would be interested in hearing how the Government will square that circle.
I thank the Deputy for the question. Obviously I am restricted in answering a question to account for my own stewardship, if one likes. My area of responsibility refers to the enterprise sector predominantly. There are targets; it is not that we have not set targets. To be fair to the previous Government, targets have been committed to by Enterprise Ireland to create 60,000 jobs over the period, by IDA Ireland to create 75,000 over the period to 2014 and by the tourism sector so we are working to specific targets. The jobs programme I indicated I have undertaken is to try to build on those — to look at new initiatives to underpin and, if possible, exceed those targets.
The Deputy is not accurate in saying the programme is exclusively dependent on the private sector. A key element of this is the development of the concept of NewERA, specific responsibility for which has been given to the Minister of State, Deputy O'Dowd. That has focused the capability of State enterprise to lay down important infrastructure for recovery and in that process not only create short-term employment in the construction phase, but also underpin strong enterprise growth in the longer term.
Internships and work programmes no longer fall within the remit of this Department and are now under the Department of Social Protection. If the Deputy looks at the programme for Government she will see a real plan emerging with a balanced set of measures across different areas where a government can take initiative. What is important is to bring that together within the first 100 days to a coherent jobs programme that will build a platform for further initiatives.
32 Deputy Dara Calleary asked the Minister for Enterprise, Trade and Innovation the steps he will take to help the struggling retail sector. [5973/11]
The retail sector, like every other sector of the economy, has been affected by the global economic crisis and by the loss of competitiveness in our economy. While Ireland has regained some of its competitiveness in the past two years, for example through reductions in electricity and gas prices for business and the reduction or freezing of local authority rates in 2010, this Government is committed to doing more to reduce the cost base for business. Our programme for Government has a focus on helping the domestic economy while continuing to maintain a strategic focus on exports and investment.
As part of this focus on the domestic economy we will explore initiatives which will assist the retail sector. It is very labour intensive and, taken with the wholesale sector, employs approximately 267,000 people or roughly 15% of our workforce. In this context, the Government's commitment to halve employers' PRSI costs for those earning less than €356 per week is likely to assist the retail sector, particularly given the part-time nature of many jobs in that sector. With regard to other labour costs, as the Deputy is aware a review of the framework for registered employment agreements and employment regulation orders is under way. This review will be completed by April 2011.
To reduce anti-competitive behaviour in the sector, the programme for Government states our intention to enact a fair trade Bill to ban a number of unfair trading practices in the retail sector. Rental costs are an important factor for high-street retail businesses in particular. In recent years, upward-only rent reviews kept rents for many businesses at artificially high levels, despite the fall in property values and open market rental trends. Under the Land Conveyancing and Law Reform Act 2009, upward-only rent reviews were abolished for all new leases signed on or after 28 February 2010. The programme for Government expresses our intention to legislate to end upward-only rent reviews for existing leases. This is a matter for the Minister for Justice and Law Reform in the first instance, but there is also ongoing contact between officials of my Department and those of the Minister on the issue.
Additional information not given on the floor of the House.
I am also keen to ensure that local authority costs which impact on businesses are kept as low as possible. In this context, I intend to explore with the Minister for the Environment, Heritage and Local Government what measures can be taken in this regard.
While there have been significant reductions in Ireland's electricity and gas prices in recent years, retailers and other businesses can continue to reduce their energy bills by switching suppliers to get the best available value. We also intend to impose rigorous efficiency targets on the ESB, Bord Gáis and EirGrid to drive further efficiencies in the energy sector, leading to further cost reductions. The national energy efficiency action plan aims to achieve national energy savings of 20% by 2020, including measures to assist SMEs to lower electricity costs. Agencies such as the Sustainable Energy Authority of Ireland are helping individual businesses to identify actions they can take to improve their efficiency and reduce their energy costs.
We have gone over time.
I will have to curtail the answers to stay within the requirements of the Chair.
We have a Grand Prix Chair today. I accept the Minister's answer. On rates, can the Government increase resources for the re-evaluation project that is happening around the country? At the current rate of progress it will take 40 years to revalue every commercial premises. The rates that are currently being charged belong to a different era. A campaign got under way in Wexford last night on not paying, or challenging, rates.
When can we expect legislation to come before the House about upward-only rents? I know this is a matter for the Minister for Justice and Law Reform. However, it is a matter the Minister and his spokespersons from business made a big issue of during the election.
I welcome the appointment of the Minister of State, Deputy Perry. As a small businessman he will bring a very particular perspective. What functions have been delegated to him within the Department? Does he have a designated budget to support retail and small business generally? What is the extra cost to the retail sector of the increase in the minimum wage?
The Deputy asked many questions. I nearly needed notice of many of them. The revaluation process is something I will bring to the attention of my colleague, the Minister for the Environment, Heritage and Local Government. To give credit to the Deputy's Government, there was a review of local authority costs which indicated the capacity for, I understand, a cost reduction of €500 million to be achieved by the local government sector. Clearly, the long-term solution to rates is to start getting the cost base right.
On the timing of legislation, I have spoken to my colleague, the Minister for Justice and Law Reform. It is an issue which has been contentious in terms of the view of the former Attorney General who took the view that upward only rents could not be restricted on existing leases. There is an alternative legal opinion on this. There is a general view that while there are property rights in the Constitution, they are not untrammelled rights and in certain circumstances they can be set aside in the greater public interest. That will require the Minister for Justice and Law Reform and the Attorney General to work on the issue.
The functions of the Minister of State have not been finalised. I thank the Deputy for his welcome for his appointment. The Minister of State, Deputy Perry, will bring not only energy but a huge understanding of the sector to the Department. I intend that his delegated functions will give him full scope to work on the concerns of small business.
Will the credit guarantee scheme apply to the retail and hospitality sectors? Is it intended that there be an employment limit on it, in terms of businesses with fewer than ten employees? That has been the case with previous State schemes. Will it be open to every business, regardless of the numbers of employees?
The details of the scheme are currently under examination. We will look at how that can be developed. This will be a targeted scheme. We are not in the business of substituting for bank commitments that have been made under the recapitalisation programme. The scheme will be targeted at the areas of greatest need and how we will do that is yet to be finalised.
33 Deputy Peadar Tóibín asked the Minister for Enterprise; Trade and Innovation his plans regarding the future of county enterprise boards; the way the merger of local enterprise and job support functions of local, regional and national agencies into a single business and enterprise unit within local authorities will be achieved; if the amalgamation of county enterprise boards will be part of this; and if he will make a statement on the matter. [6032/11]
As Minister of State at the Department of Enterprise, Trade and Innovation one of my main priorities is to ensure that the manner in which State support for enterprise activity, entrepreneurship stimulation and job creation is delivered, properly targeted, effective and coherent. I want to ensure it is cost effective and that the resources available to the State are used to maximise business activity and sustainability across all sectors to drive economic recovery.
The county and city enterprise boards, CEBs, have been the principal deliverers of State support to the micro-enterprise sector since their establishment in 1993. The role of CEBs is to support micro-enterprises employing up to ten people in the start-up and expansion phases and to stimulate and promote economic activity and entrepreneurship at local level. The CEBs deliver a series of programmes to underpin this role and can provide financial and non-financial assistance to an eligible micro-enterprise. This sector is a key component of the indigenous small business sector. It was to the forefront of Ireland's past economic success and will be key to our economic recovery.
Parallel to the work of the CEBs is the work of Enterprise Ireland. Its remit includes the support of start-ups that have the potential to employ more than ten people and achieve €1 million in turnover. These are start-ups that are typically highly innovative and are in a position to sell globally from their earliest stage. Apart from these enterprise development agencies who report directly to my Department, there are other State bodies and organisations working with the Minister, Deputy Bruton, providing a range of enterprise type supports which serve other niche elements of the community.
Each of these organisations has a distinct client base. The programme for Government recognises that there is a multiplicity of enterprise and job support functions being carried out by local, regional and national agencies. The programme also recognises the need to streamline such functions and increase shared knowledge capability and resources while saving on administration costs.
A critical focus in achieving any such streamlining is to ensure that we do not compromise on service delivery to the end user. While unnecessary overlap or duplication between these agencies and organisations must be eliminated, as Minister of State at the Department of Enterprise, Trade and Innovation, it is my priority to ensure that above all else there is a coherent and cohesive delivery of State support to the indigenous business sector based on clear enterprise policy principles laid down by my Department.
In regard to CEBs, their current structure is in need of review and reform for several reasons including the fact that they currently comprise 35 separate legal entities, significantly increasing the administrative overhead of the service. Nevertheless, I reiterate that any changes to the CEB structure must not compromise the State's engagement with and support for important micro-companies. I am engaging with my officials and other Government colleagues to determine the best way forward and will shortly bring my proposals to Government on the CEB structure. I thank the Minister for his comments.
The CEBs operate as the engine for small business development throughout the State. They operate locally and therefore have a fantastic knowledge of enterprise locally. They also ensure that small businesses around the State can engage easily with expertise, funds and advice. Therefore, they are a very important part of the enterprise development area. We have a situation whereby Fianna Fáil, in the previous Administration, significantly reduced the amount of funding county enterprise boards received at a time when their job was important and jobs were important to the economy.
I am not sure I got an answer to my question. My question concerned the future of CEBs because in recent years the previous Minister created an air of confusion and uncertainty with regard to them. People are fearful that the knowledge that has been built up will be dissipated. Will the county enterprise boards exist or will they be subsumed into the local authorities? If they are subsumed into the local authorities, will they become part of what people see as the layers of bureaucracy that may exist in some local authorities?
What are the plans for the funding? Will the cuts by Fianna Fáil in the county enterprise board sector be reversed by the new Administration? If they go to local authorities, will it be the case that councillors may have influence over where grant funding can be allocated? This, if it arose, would be negative.
Importantly, it is our intention to have a one-stop-shop solution for enterprise in every county. On the current duplication of providers, it is important that we would have facilitation, involving not only county enterprise boards but partnership and FÁS. Streamlining is needed. It is our intention to bring forward a plan in the next 100 days that will set the possibilities of getting value for money. Critically important is the administrative costs of county enterprise boards. Given there are 35 of them in the State, there is duplication that we want to eliminate.
The backbone of the economy is small indigenous companies based in the community. I would agree with the Deputy that the boards have been successful in the past. It is critical that the work ongoing with enterprise boards, in mentoring and support to companies, is continued. Having said that the system needs major refocussing. We need to ensure that there is a one-stop-shop solution in every county or region that will offer support to small companies.
On the future role of enterprise boards, there are many providers of job initiatives in counties at present. It is our intention to bring them all together in a one-stop-shop facility that will be clear in its message, will cut down on the cost and will give the end-user — the business person with the ideas — the critical support, and to ensure that the funding is available to them.
In the 100 days while we are waiting, 13,000 people will emigrate from the State. Will the amount of funding being invested in the enterprise sector increase or decrease?
We will get additional value for money from the funding already allocated. It is important that we maximise the value from the funding being allocated.
While taking Deputy Tóibín's point on job retention and job creation, great things can be achieved by small companies. I believe in the supports given. We are 20 days in the job. I can assure the Deputy that top of my priorities is to ensure that local small companies get every support and every job will be retained where possible. We are actively engaging with the enterprise boards in the job they are doing on a daily basis.
