Skip to main content
Normal View

SELECT COMMITTEE ON ENTERPRISE AND SMALL BUSINESS debate -
Tuesday, 3 Apr 2007

2007 Output Statement for Department of Enterprise, Trade and Employment.

The purpose of today's meeting is to consider the 2007 Revised Estimates, Vote 34 — Enterprise, Trade and Employment, referred to the select committee by order of the Dáil of 22 February 2007. I welcome the Minister for Enterprise, Trade and Employment, Deputy Martin, the Minister of State at the Department of Enterprise, Trade and Employment with responsibility for labour affairs, Deputy Killeen, and their officials to the meeting.

Members will be aware that as part of the budgetary process reform initiated by the Minister for Finance in his budget speech 2006 Departments are required to produce annual output statements for consideration by Oireachtas committees. In line with the expanded budgetary process, an output statement has been provided and circulated to members. This important initiative is intended to facilitate better parliamentary involvement in the budget and Estimates process. The clerk of the committee has circulated a proposed timetable for today's meeting which allows for opening statements from the Minister and Opposition spokespersons followed by open discussion by way of question and answer session. Is this agreed? Agreed. I now invite the Minister to make his opening statement.

I thank the select committee for the opportunity to present my Department's 2007 Estimate which totals €1,509 million gross, made up of €1,039 million in current expenditure and €470 million in capital expenditure. Overall, the gross Estimate represents an increase of 8% on the 2006 Estimate and 11% on the 2006 outturn. In addition, a sum of €16.322 million is included in my Department's Vote by way of carryover of capital savings from 2006. The committee may also wish to note that the national training fund will contribute €395.666 million on top of the Exchequer allocation in my Department's Vote to upgrade the skills of the labour force.

As members will be aware, my Department's remit extends across a wide range of activity which is crucial to supporting the economy and the labour market. The brief which has already been circulated itemises the 2007 Estimate allocations by subhead and shows the corresponding Estimate and outturn figures for 2006. My Department's annual output statement for 2007 has also been submitted for consideration. As the committee will be aware, the annual output statement is a fundamental part of the Government's drive to reform the Estimates process and to set out more visibly the objectives, outputs and outcomes for the investment of public funds.

The annual output statement sets out 2007 budgets and targets for the key programme areas in my Department's Vote. There are some differences in layout between the annual output statement and the revised Estimates volume. Most notably, administrative expenditure, which is shown as a separate heading in the Revised Estimates volume, is apportioned to the appropriate programme areas in the annual output statement. My Department is hopeful that the Department of Finance will agree to align the structure of the Vote more closely to the annual output statement to assist the committee in its deliberations on the Estimate. The annual output statement provides details of own resource income, where applicable, for agencies under the aegis of my Department.

I will outline for the committee some of my key objectives in the 2007 Estimate as set out in the annual output statement. The enterprise development programme priority detailed in the annual output statement is the mechanism to fund activities carried out by Forfás, IDA Ireland, Enterprise Ireland, Shannon Development, InterTradeIreland, the National Standards Authority of Ireland and the city and county enterprise boards. A small amount is provided for the monitoring and evaluation of European Union co-financed programmes in the delivery of which some agencies are involved. The objectives of the programme are to improve competitiveness and growth by promoting entrepreneurship, increasing exports, attracting foreign investment in high value manufacturing and services, encouraging all-island enterprise collaboration and contributing to balanced regional development.

Exchequer funding for enterprise development in my Department's Estimate for 2007 amounts to €396.535 million. The figure includes funding which will be spent on staff and overheads in the Department, the formulation of policy and facilitation of the work of the enterprise development agencies. The Exchequer allocation in this programme area represents an increase of 11% on the 2006 return. A further €5.33 million is available for enterprise development activities from capital savings carried over from 2006. Almost €4.5 million of the carried over fund will be used to implement recommendations of the small business forum, especially those aimed at the promotion of entrepreneurship in the education system, the development of appropriate ICT strategies for small businesses and a scheme to promote innovation, research and development in the sector. These initiatives will be delivered through the county and city enterprise boards which aim to assist 1,000 enterprises this year. The boards have set a target of engaging 12,000 students in enterprise education.

The enterprise strategy group's 2004 report presented a vision for the development of the economy based on winning greater market share in fast growing sectors through innovative products and services. A key plank of my Department's response to the group's report has been Enterprise Ireland's three year strategy to help transform industry. The primary objectives of the strategy are: to develop quality, sustainable and scalable start-up companies; to assist companies in achieving international scale; to promote industry-led research and development and to grow exports strongly. Enterprise Ireland had some notable successes with its client companies in 2006. Significant first-time export sales contracts with a value of €125 million were won by client companies with Enterprise Ireland input. Overall, Enterprise Ireland companies achieved €1 billion in new export sales in 2006. The agency aims to continue to perform in the area in 2007 and help its client companies to achieve further new export sales of over €1 billion

In 2006, 76 companies with high export growth potential were established with support from Enterprise Ireland, bringing the total number of high potential start-ups established over the period 2005-06 to 151. The agency plans to assist a further 75 high potential start-up companies in 2007. This year it will further support 114 companies through the productivity improvement fund and 85 participants in the enterprise platform programme. In 2006 it approved grants of €7 million for 24 community enterprise centre projects nationally at a total building cost of approximately €26 million. The agency intends to expand the scheme this year. Last year it announced an injection of €175 million to support private venture capital funds. The scheme is expected to leverage €1 billion in private equity for investment in Irish start-ups and expanding small and medium enterprises. Employment in Enterprise Ireland supported companies grew by a net 1,261 in 2006, bringing total employment in supported companies to 141,000.

While Enterprise Ireland and the county and city enterprise boards will continue to work with enterprises to achieve growth in the indigenous sector, the parallel plank of my Department's enterprise development strategy is to maximise the number of foreign direct investment projects in Ireland and ensure appropriate property solutions are available to meet their requirements. Last year was another very successful one in this context for IDA Ireland which negotiated 71 business projects with new and existing clients to lead to a total investment in the economy of €2.6 billion in the coming years. The IDA supported 54 research and development investment projects involving a total investment of almost €470 million. Almost 60% of new greenfield projects and six of every seven research and development investments commenced outside Dublin, with a wide geographical spread. Over 50% of jobs in new IDA supported projects in 2006 carried wage and salary levels in excess of €40,000 per annum, a key indication that we are attracting higher quality jobs to Ireland. Employment in IDA-supported companies increased by 3,795 in 2006, bringing total employment in supported companies to 135,487.

During 2006 IDA-supported companies had annual sales of €77 billion, spent almost €15 billion in the economy and paid over €2.8 billion in corporation tax. For 2007 the IDA has set a target of approving 115 investment projects, with 50% of all jobs approved in greenfield projects to be created in the BMW region. The IDA will also continue its strategic sites initiative to ensure we will have the necessary facilities available to meet the requirements of major foreign clients. Shannon Development will also continue to work to attract foreign investment to the Shannon free zone. Five investment projects and three research and development projects have been targeted by Shannon Development for 2007.

The important and historic developments in Northern Ireland in recent weeks open up real opportunities for economic co-operation which will benefit both parts of the island. InterTradeIreland, funded under my Department's Vote, is one of the six North-South Implementation Bodies established under the Good Friday Agreement. Its role is to exchange information and co-ordinate work on trade, business development and related matters on the island. The body has developed a broad range of programmes and projects in this regard. Funding for it in my Department's Estimate for 2007 will increase by one third, or almost €3 million, to €11.89 million. The total value of trade and business development activity generated directly by InterTradelreland's all-island business networks and firms engaged in its network projects is expected to be €36 million this year. In addition to the Exchequer allocation for enterprise development programmes which I have outlined, the development agencies will spend €176 million of own resource income on this priority in 2007.

The competitiveness of enterprises and the economy as a whole will increasingly be driven by innovation and knowledge. Global competition is creating pressure for improvements in efficiency, quality and productivity and points to an ever growing need to innovate. Increased and continuing investments in science, technology and innovation activities will be crucial to maintaining future economic stability and improving Ireland's competitive position. The Government has made a significant commitment to investing in this area through the strategy for science, technology and innovation which was launched in June 2006. The strategy constitutes one of the principal pillars of the new national development plan and has at its core a vision of Ireland being internationally renowned for the excellence of its research and at the forefront of using new knowledge for economic and social progress. Over the lifetime of the plan the State will invest €6.1 billion in science, technology and innovation, of which the enterprise element amounts to €1.29 billion. Gross Exchequer funding for science, technology and innovation in my Department's Estimate for 2007, including the Department's own administrative and support costs, will amount to €298.3 million. This represents an increase of just under €42 million, or 16%, on the 2006 outturn and reflects the objective of making a quantum leap forward in the area of research and development. In addition, a sum of €8.992 million will be available for this programme area from the carryover of unspent capital allocations in 2006.

Funding in my Department's Estimate will primarily be used by Science Foundation Ireland and Enterprise Ireland to develop sustainable world class research systems, increase research and development in firms, and encourage stronger links between the higher education sector and industry. The costs of the Patents Office are also included in the funding allocated. Funding for the discover science and engineering programme will also be increased. The fruits of our investment in the science strategy are already beginning to be seen. A total of 54 research and development investment projects were supported by the IDA in 2006. Already this year we have seen the announcement of over 1,100 new jobs in high end industries and services. The IDA proposes to fund a further 50 research and development projects this year. During 2006 over 550 companies spent €100,000 or more on research and development projects. The objective for 2007, as set out in the annual output statement, is to increase the number of companies investing in this level of research and development to 617.

Over 40 companies spent in excess of €2 million on research and development activity in 2006. The aim is to maintain this level of engagement this year. A total of 115 projects were supported under Enterprise Ireland's commercialisation fund, the purpose of which is to support research projects to develop products with commercial potential to a point where companies can take them up. Science Foundation Ireland made a total of 468 awards across all of its main programmes in 2006 and supported 234 bio and ICT principal investigators, leading world-class research teams. This year the agency aims to process 500 new awards to higher education institutions and to maintain the number of principal investigators in the fields of bio and ICT research at around the same level. It will also continue to fund seven existing centres for science, engineering and technology and plans to make awards to two new centres. In addition, it will support four new strategic research clusters. A further objective for the current year is to promote awareness of the new EU seventh framework programme, with a view to optimising Ireland's involvement in the programme. To this end, a national director's office has been established. There will also be 35 contact points around the country to promote the framework programme. Overall, investment in science and technology for industry in the Department's Estimate will enhance innovation and competitiveness, increase output and promote employment.

Competitiveness and employment will be further underpinned by the Department's investment in the development of the labour force. The availability of a well educated and highly skilled labour force has been a major contributory factor in Ireland's economic success. We wish to contribute to continued economic success by supporting the ongoing training and upskilling of the labour force. Employment grew by 86,700 in 2006, taking the total number in work above 2 million.

Public expenditure for labour force development in 2007 will amount to more than €1.09 billion gross, including a contribution of €395 million from the national training fund, NTF. That represents an overall increase of 9%, or €92 million, on the 2006 outturn, with the NTF component rising by 12%. Funding under that programme area has provided for training and employment programmes operated by the Department, FÁS, Skillnets, Enterprise Ireland, IDA Ireland, Shannon Development, and several other agencies. The NTF also provides funding for the FÁS skills and labour market research unit, and the expert group on future skills needs, which last month presented proposals on a national skills strategy to the Minister for Education and Science, Deputy Hanafin, and me.

The skills strategy sets out clear, long-term objectives for education and training performance to develop Ireland as a knowledge-based, innovation-driven, participative and inclusive economy with a highly skilled workforce. In that context, the skills strategy is complementary to that for science, technology and innovation. The skills strategy places strong emphasis on the need to upskill the labour force, something on which we have focused in recent years; we will continue to do so in 2007.

Funding for the apprenticeship programme has been increased by €17 million in 2007, including a €2 million carry-over of capital savings from 2006. The additional funding will help alleviate existing pressures in the system and allow entry waiting times to be reduced. Total funding for apprenticeships in 2007 will amount to €128 million and will support 19,600 apprenticeship places at FÁS and in the institutes of technology.

In addition to upskilling those already in employment, FÁS will continue to provide support and skills for those seeking to enter the workforce. Measures to assist the long-term unemployed will continue to be well resourced in 2007, with more than €415 million allocated to FÁS employment programmes. Average participation levels in those programmes in 2007 are expected to be of the order of 24,000. In addition, it is projected that 55,000 seeking to enter the workforce will be referred to FÁS training programmes and employment services support.

The Department has placed special emphasis on facilitating access to the labour market for people with disabilities. Such people benefit from the full range of mainstream FÁS training services and programmes. In addition, FÁS provides an extensive range of schemes and grants specifically promoting the employment of people with disabilities in the private sector. A provision of €52 million has been made in the 2007 FÁS budget for the vocational training of people with disabilities by specialist providers in the disability sector. That represents an increase of €5.8 million on the 2006 budget. A provision of €19 million has been made for employment programmes for people with disabilities, including €10.5 million for the wage subsidy scheme and €8.5 million for the supported employment programme.

Achieving high employment rates is the ultimate objective of the Department's labour market programmes, and as the annual output statement indicates, the target is set to achieve an overall employment rate of 69% in 2007, with employment rates for women and older workers of 59% and 53%, respectively.

As the number of people in employment continues to grow, my Department has an important role in protecting workers' rights. Significant commitments were made under the social partnership agreement Towards 2016 to enhance employment rights and compliance, and funding to meet those commitments is provided for in the Department's Estimate for 2007. Exchequer funding for the employment rights and industrial relations programme area in 2007, as set out in the annual output statement, will amount to €34 million gross, representing an increase of more than €11.8 million, or 53%, on the 2006 outturn. That programme area funds the activities of the Labour Relations Commission, the Labour Court, the Employment Appeals Tribunal, the new national employment rights authority and some activities aimed directly at promoting social partnership

The establishment and resourcing of the national employment rights authority is a key priority for the Department in 2007. The authority will be established formally by the employment law compliance Bill, which is at an advanced stage of preparation. Pending the statutory establishment of the authority, the body is operating on an interim basis and is preparing for the expansion of services hitherto provided by the labour inspectorate and other sections of the Department.

A director has been appointed and a management team is now substantially in place. Recruitment and assignment of the remaining staff, including a progressive increase in the number of labour inspectors from the current level of 31 to 90 by the end of 2007, is happening in the context of the authority's decentralisation to Carlow. When fully staffed, the national employment rights authority will have 141 posts. In keeping with the commitment to establish the labour inspectorate on a regionalised basis, the national employment rights authority will have offices in Dublin, Cork, Shannon and Sligo in addition to its Carlow headquarters. The Office of Public Works has begun the process of securing appropriate accommodation in all of these locations. In parallel with an increase in inspection activity, the authority intends to run three public awareness campaigns this year to inform workers of their rights under employment law.

The National Employment Rights Authority, the Employment Appeals Tribunal, the Labour Court and the Labour Relations Commission services all form part of the employment rights and industrial relations mechanisms under my Department's remit. Commitments have also been made in Towards 2016 to strengthen the resources in these bodies. This is reflected in the allocation for the employment rights and industrial relations programme area outlined in the annual output statement.

The number of cases dealt with in any year by the employment redress and industrial relations bodies varies from year to year. Their role is to be available to provide services or interventions as required. However, the Labour Relations Commission's conciliation services expect to deal with 1,500 referrals this year. Its advisory services anticipate 150 referrals. The Rights Commissioners' services will handle 6,500 cases this year.

The promotion of partnership in the workplace can contribute in a positive way to reducing the number of cases which end up with the redress bodies. Last year a new subhead, O2, was established in my Department's Vote to support the promotion of partnership at enterprise level under the workplace innovation fund. The establishment of the fund was a recommendation of the national workplace strategy and is aimed at building a commitment to workplace innovation through partnership. The fund contains two strands, one of which is accessible by the social partners, while the second which commences operation this year will provide financial support for companies which seek to improve their competitiveness and productivity by introducing new organisational processes, practises and arrangements. The allocation for the fund this year is €950,000, a substantial increase on the 2006 outturn of €301,000 which reflects an increase in activity in 2007.

My Department's investment in areas such as enterprise and innovation is underpinned by ensuring markets operate in a fair and efficient manner. Effective competition policy encourages businesses to develop and prosper by eliminating unwarranted constraints. As the economy continues to thrive and people have greater levels of disposable income, it is also important to ensure consumers are protected from unscrupulous practices by rogue traders. The objective under the commerce, competition and consumers affairs priority heading in my Department's annual output statement is to uphold high standards of corporate governance, promote efficient and competitive markets and protect the interests of consumers. This programme area finances the activities of the Competition Authority, the Office of the Director of Consumer Affairs, the interim National Consumer Agency, the Office of the Director of Corporate Enforcement, the Companies Registration Office, the Registry of Friendly Societies and the Irish Auditing and Accounting Supervisory Authority. A small grant is also made to the Consumers Association of Ireland. Gross Exchequer funding for this priority will amount to €41.519 million this year.

Members will be aware that a key priority for me this year is the establishment of the National Consumer Agency on a statutory basis and the implementation of the legislative basis for new consumer policy. This committee considered the Consumer Protection Bill in detail on 13 March. It is worth recalling that the Bill represents a fundamental realignment of national consumer policy by establishing a new agency with much expanded and enhanced powers, in effect trading a forceful new advocate for the consumer. It also replaces nine existing pieces of primary legislation with a single statute. I established the National Consumer Agency on an interim basis in June 2005 and appointed a board and interim executive chairperson to begin putting in place the infrastructure of the new organisation. As a result, the new agency will be in a position to hit the ground running when the Bill is enacted following its passage through the Oireachtas. The agency has prepared a corporate plan which has been considered by my Department. One of the objectives set out in the annual output statement for this year is approval of a corporate plan for the statutory agency and to obtain approval from the Department of Finance for the resources required to run the statutory agency on a multi-annual budgets basis. In the meantime, my Department's expenditure on consumer affairs this year will increase by €2.5 million or 43% to just under €8.4 million. This allocation will continue to fund the work of the Office of the Director of Consumer Affairs pending the establishment of the national consumer agency on a statutory basis, as well as supporting the activities of the interim board.

The Competition Authority also has an important role to play in protecting consumers and businesses from unfair competition. The authority's main achievement in 2006 was the securing of the first criminal convictions in Europe following a jury trial for competition law offences. Between February and December 2006, the authority, through prosecutions brought by the Director of Public Prosecutions, secured 17 criminal convictions arising from its investigation into a price fixing cartel in the home heating oil sector in the west. Fines totalling €122,000 were imposed and one defendant received a six month term of imprisonment, suspended for one year. The authority also initiated proceedings against an individual relating to aiding and abetting the fixing of prices in the motor trade. The defendant entered a plea of guilty in respect of the charge and was subsequently sentenced in the Central Criminal Court to 12 months imprisonment suspended for five years and fined €30,000.

The Competition Authority intends to build on its successes in securing criminal convictions for cartel offences by focusing on other sectors of the economy. This approach will be facilitated by the allocation of extra resources for investigations into cartel activity which I made to the authority last year. The proactive work undertaken by the authority, the Office of the Director of Corporate Enforcement and the National Consumer Agency will help to demonstrate to consumers that real change is under way to protect their interests.

My Department funds a number of other bodies under the commerce, competition and consumer affairs priority heading. These include the Companies Registration Office, the Office of the Director of Corporate Enforcement and the Irish Auditing and Accounting Supervisory Authority. The Office of the Director of Corporate Enforcement will continue to build on its activities and successes in addressing its twin objectives of encouraging compliance with the obligations of company law and bringing to account those who breach these obligations. This year eight additional staff will be assigned to the director by my Department to strengthen the office's resources. As part of its activities, the office will continue to provide information on and raise awareness of the legal obligations of companies, directors, secretaries and auditors. A new guidance book on the governance of property management companies will be prepared and issued. The office will continue to pursue its detection and enforcement activities and expects to initiate 50 new criminal, civil and other proceedings, including seven further major cases, and achieve 100 criminal convictions, civil disqualifications or other outcomes by the end of the year. In a further 350 cases decisions will be made to avoid, correct or sanction potential non-compliance. The persistent misconduct of phoenix-type companies will also receive attention this year.

The Companies Registration Office will continue to ensure the enforcement of the requirement under the Companies Act for companies to file returns. In 2006 the office generated income of almost €33 million from fines for late filing of returns by companies. However, the compliance rate has been increasing and the office hopes to increase it from 88% of companies in 2006 to 89.5% this year with a consequent decrease in the level of fines imposed.

Occupational health and safety is a stand-alone priority in my Department's annual output statement for 2007. The programme area sets out funding for the activities of the Health and Safety Authority. Gross Exchequer funding for the authority this year will amount to €23.3 million which will be supplemented by a small amount from own resource income generated by the authority's activities. Health and safety at work is in the interests not only of employers and workers, but also of society in general, including the families of those at risk of injury or death in workplace accidents. Last year 50 workplace fatalities were reported. While this figure was down significantly from the 74 deaths reported in 2005, every workplace fatality is one too many for families and others.

The Health and Safety Authority's remit is to improve and enforce health and safety at work. It performs its tasks by promoting good standards, carrying out inspections to monitor compliance with legislation, investigating serious occupational accidents and publishing codes of practice, guidance and information. In 2006 it increased its inspection rate by 13% and ran focused campaigns in the high risk agriculture, construction, mines and quarries sectors. A total of 15,365 inspections were carried out in 2006, which number the authority plans to increase to 16,000 this year. It pursued 39 prosecutions in 2006, media coverage of which served as a caution to employers and employees on workplace safety, health and welfare issues.

A major development in health and safety in 2006 was the launch of the code of practice for preventing injury and occupational ill-health in agriculture. The code has been delivered to 160,000 farmers nationally and aims to provide practical guidance to help prevent and reduce the incidence of accidents, fatalities and ill-health on farms. Agriculture continues to have one of the highest workplace fatality rates of any sector in the economy. Of the 50 reported workplace fatalities in 2006, the highest number — 18 — was recorded in the agriculture sector. These 18 fatalities account for 36% of all workplace fatalities. The publication of the code of practice is, therefore, an important development in our efforts to improve safety on farms. The code was developed by the farm safety advisory committee of the Health and Safety Authority and the project was jointly funded by the authority and the Department of Agriculture and Food. A public awareness campaign on the code was launched in January and training is being provided for farmers by Teagasc and other approved trainers. It is planned to invite approximately 20,000 farmers to attend training this year

Other sectors which will be prioritised by the Health and Safety Authority for attention this year include construction, mines and quarries, the health service, local authorities and processing industries. Unfortunately, as employment and economic activity in these and other areas increase, accidents will occur. The target set in the annual output statement for 2007 is a decrease in the number incurring occupational injuries or becoming ill from the 2006 level of 60 workers per 1,000.

The remit of the Health and Safety Authority was expanded in 2006 as a result of the Government's decision to designate the authority as the competent body for the European Union's REACH chemicals regulation which will enter into force on 1 June. Pre-registration of chemicals with the new European Chemicals Agency in Helsinki will be required by the end of November 2008. Drafting will begin this year on new enforcement legislation for REACH which must be in place by November 2008. The authority's campaign to inform industry of its obligations under REACH is under way and additional staff have been recruited to carry out the authority's work under the new regulation. Other priorities for the Health and Safety Authority this year, as set out in the annual output statement, will be the publication of regulations on quarrying and the finalisation of a revised code of practice on the prevention of bullying in the workplace.

In addition to the key programme areas I have outlined, my Department's Estimate for 2007 under the heading of "Other Services" provides funding for a number of diverse activities, including the cost of research studies for the Department; subscriptions to international organisations; funding for commissions, committees and special inquiries; superannuation for members of the Labour Court and the Competition Authority; refund to the Exchequer of export credit insurance; and other miscellaneous payments. The total Exchequer allocation for this area this year is €20.243 million. My Department's priorities in this area are to ensure Ireland fulfils its obligations to contribute to international organisations such as the ILO, the European Space Agency and the World Intellectual Property Organisation; to provide funding to support the work of committees such as the company law review group, joint labour committees and the Business Regulation Forum; to provide funding for the pensions of former members of the Labour Court and the Competition Authority; and to ensure resources are available for other miscellaneous charges on the Department, including potential legal costs.

Following my comments last year, I wish to update the committee on the progress being made by my Department on decentralisation. Under the Government's decentralisation programme, 288 posts from my Department are due to move to Carlow. It has been agreed that approximately 100 staff from the National Employment Rights Authority and the Companies Office, with a number of support staff, will participate in an advance move to Carlow around the middle of this year. This advance move will take place on a voluntary basis to facilitate staff. Assignments are being made in accordance with the protocols agreed between the Department of Finance and unions. Levels of interest in the advance move are promising. As at 29 March, 83 staff had confirmed they would participate in the initial advance move. The remaining posts will be filled by competitive interview.

I thank the Chairman and committee members for giving me the opportunity to outline my Department's Estimate for 2007 and the key objectives for the use of the funding allocated. I will be happy to answer any questions about the Estimate.

I thank the Minister. Deputies Nolan and Hogan will be pleased to hear of the advance move to Carlow.

We have heard about it for some time. I welcome the introduction of the new system for looking at accounts introduced by the Department which provides details on a programme of work under each heading for the forthcoming year. That is a significant improvement in helping us to see the likely outputs in terms of expenditure from the Department Vote this year.

We are into a more challenging economic environment. It is slightly worrying that some of the global operations in this country are reviewing their staff costs. I continue to be optimistic, however, about economic activity here in terms of economic growth, notwithstanding the recent ESRI prediction that the rate would be revised downwards on the outturn for 2006. We have had a strong and sustained period of growth for a number of years. I am sure the input of the construction industry, in particular, has resulted in a significant level of enhanced activity than would otherwise have been the case.

This is an opportunity to reflect on how we can offset some of possible fall-off in the construction sector with jobs in manufacturing or services. For that reason I welcome the recent announcement by the Minister on the upskilling of the labour force. Fine Gael and the Labour Party issued a joint statement some time ago calling on him to do this. Greater educational attainment, in addition to the upskilling of the existing workforce, and the role of migrants in the economy are important issues. We must ensure compatibility with skill requirements. The number of apprenticeships has always been problematic. We all have found it difficult to find a plumber or electrician when we needed one for a small job. However, there is still considerable demand for such skills in every community, and I welcome the additional resources put into the apprenticeships programme through FÁS. The family unification system currently operated to fulfil the needs of migrants is still causing some difficulties for such workers, particularly for those who await work permits or the end of the asylum process or who are on temporary visas. Perhaps the Minister might elucidate the implementation of those recent changes in the law. Are there now many requests in the Department arising from the decision to assist families to remain united when one parent might work in this jurisdiction?

I welcome the extra resources for the Competition Authority, which I have sought for some time. I am happy to see that and the extra activity in the authority which is leading to much more court action. The 17 recent cases the Minister mentioned are welcome. There has been much talk of taking on cartels and issues relating to competition and 2006 shows a marked improvement, especially regarding the high-profile topics of motor vehicles and sales and the oil depots around the western counties. They are a clear example of what is required, and the court action taken will yield fruit and ensure that consumers are not ripped off by such activities. As the Minister is aware, Fine Gael sought exemptions on VAT and audits. While he may not always have agreed with me, he has now implemented those changes.

The Minister's predecessor, Deputy Harney, was against doing anything regarding audit exemptions, and the Minister of State, Deputy Michael Ahern, had difficulty in persuading her of its necessity. However, Deputy Martin was kinder to the Minister for Finance on that recommendation, which we had advocated for a considerable period, through this committee and as a political party. The Minister for Finance moved in the last budget to implement the Small Business Forum's proposals on audit exemptions and a certain level of VAT exemptions, and I welcome that now, just as I did at the time.

The excess regulation and higher costs of doing business in Ireland are worrying. There has been much discussion of what we must do to reduce regulation, but we have not seen any meaningful reduction. I have been strongly critical of regulators, who seem to be out of control, operating as independent entities without paying any attention to their impact on business or consumers. They must be reined in.

The criteria by which they were established and remit within which they serve must be examined, something particularly true of the Commission for Energy Regulation, CER. The CER was before the committee some weeks ago, and its representatives were less than satisfactory in their attempts to explain how they operate. They seemed to have very little understanding of the impact of decisions on the high cost of doing business and the reduction in domestic householders' disposable income. A review of the regulator and the regulatory regime is necessary to allow greater co-ordination between them. In that way, we might eliminate empire-building and achieve more cross-cutting compliance regarding many of the policy issues that come before us.

The principle of the National Consumer Agency has now been established in law, and I welcome the fact that it will be set up later this year. The consumer has been largely forgotten in any dialogue about costs and implementing policies, particularly the stealth taxes and charges imposed in recent years. I am pleased to see that we now have an agency that can act as an advocate on consumers' behalf and inform policy-making at ministerial and Oireachtas level regarding the main issues affecting them. The executive chairperson, Ms Fitzgerald, has already outlined certain priorities in her advocacy on consumers' behalf, particularly regarding management companies, which are springing up everywhere and having a major impact on consumers in the household and residential sector. There is no justification for some of the charges being imposed on such consumers.

The Minister referred to decentralisation. Will he clarify the position on the Health and Safety Authority? Notwithstanding the fact that temporary offices are being set up for REACH in Kilkenny city, I would like to hear what progress or otherwise has been made on the site in Thomastown, County Kilkenny, where I have an appropriate personal interest, as the Minister might expect.

I note the Minister got money back in recent times from FÁS in respect of a site in Birr. It is rare for this to happen in the context of a decentralisation programme. There must be a difficulty in site acquisition in Birr. Will the Minister clarify the position? When Mr. Molloy, the chief executive of FÁS, appeared before the joint committee recently, he indicated difficulties in coming to terms with the decentralisation programme announced for County Offaly. I doubt this will happen to the same extent that we were led to believe some years ago.

We would do well to analyse the stage of development of the Internal Market in services. Our Commissioner, Mr McCreevy, is in charge of the Internal Market. He is playing a leading role in trying to ensure consumers in this jurisdiction and across Europe will be able to shop around for various services, especially in the financial sector. I would welcome the opening up of markets in this jurisdiction, especially in the insurance sector, given that we have four or five main players which appear to be enhancing their profits considerably in spite of the work done by the joint committee. We introduced legislation to assist the consumer through the setting up of the Personal Injuries Assessment Board, the Civil Liability and Courts Act and the elimination of exaggerated claims. Not all of the benefits of the actions we have taken to help insurance companies reduce costs have been passed on sufficiently to consumers. The profitability of the insurance business reached a figure of approximately €1 billion in 2005. That is a clear indication that more remains to be done in cutting insurance premia, especially liability insurance premiums. Motor insurance premiums have come down but employers' liability and public liability insurance premiums are still causing considerable difficulties in many sectors. There is a need to create further competition in the financial services sector by completing the enhanced programme on the Internal Market on services.

There is no doubt future employment opportunities will capitalise on the work of Science Foundation Ireland and Enterprise Ireland. The economic environment will be much more competitive in attracting foreign direct investment. I approve of the support for the indigenous sector through the reorientation of some of the Enterprise Ireland programmes and its strategic plan but much more could be done in commercialising research and development and the work of Science Foundation Ireland. Many patents have been created, while good work has been done in studying enhanced product development but more imaginative policies are required, for example, through the business expansion scheme which the Minister improved considerably in the recent budget. This approach would provide us with sustainability in terms of future employment, as we cannot depend to the same extent on foreign direct investment.

At local level, county enterprise boards are doing good work. Their chief executives are temporary employees and have no certainty in terms of their contracts which operate on a rolling basis for two years. Either we stick with the approach of using county enterprise boards or we get rid of them. If we decide to retain them, certainty should be provided for staff. Otherwise, we should decide to incorporate them with the community and enterprise directorates in the local authority system. We have to decide on one approach or the other. It will not be possible to retain good staff in chief executive positions if we do not provide longer term contracts. I urge the Minister to examine this issue.

Deputy Quinn and I have raised the following issue on a number of occasions. There was a presentation by Junior Achievement Ireland on its great work which is done on a voluntary basis to develop entrepreneurship through the education system. People with a high profile in the community go in on a voluntary basis. Ms Clancy, who attended the committee, made a very strong case for us to support entrepreneurship in the education system through the organisation. Junior Achievement Ireland is a stand-alone voluntary group dedicated to the task. It functions in the same way as the Consumers Association of Ireland, which over many years from scratch created some awareness of consumers' needs, receiving little or no money and relying on voluntary help. The former receives little support except from the subscriptions it receives from business. The State should help in some way.

It has received support from the State.

I did not see that.

It was on specific projects.

Junior Achievement Ireland.

There was that one last week. It was on a specific project, however, and I believe that the group is seeking core funding.

The Minister will respond later; Mr. Hogan is concluding in any case.

That was by way of clarification.

Let us wait until we are ready.

The administrative costs of such an organisation are not large, particularly when it relies on volunteers and does not need a core staff. That one or two people should run it, largely from their private houses, is unacceptable, given their great work to enhance entrepreneurship. Not enough is happening in second level education, and the Minister should consider granting core funding.

There are several figures I would like to query. Many appear to show increases of 30% or 40% on last year, and perhaps we might have some elucidation, particularly regarding administration, where I see many incidental expenses and consultancy fees. Such matters can often be very important, but I doubt whether that is the case. I would like the Minister to examine the increases of 30%, 40% or 50% sanctioned for several areas and give more details. For commissions, committees and special inquiries, there is an increase of 98%. In the course of our examination of the subheads, perhaps the Minister might give further information on those figures.

Perhaps the Minister might respond to that short intervention from my colleague, Mr. Hogan.

I call on the Deputy to make his address, after which I will call the Minister to respond.

Is that the format?

That is the format that we will carry through. Otherwise we will continue all day and all night, as the member knows.

I seek guidance on this.

That is no problem.

Is the intention that I make one intervention, after which the Minister will respond?

That is correct. Thereafter, we will move on to the subheads, with members' permission.

Thank you.

I could say many things regarding the various subheads. I vividly recall the establishment of the county enterprise boards when the Progressive Democrats-Fianna Fáil Government came to power, with former Deputy Albert Reynolds as Taoiseach. I believe Deputy Treacy was the Minister directly responsible. It was a time of great economic uncertainty, when unemployment hovered around the 300,000 mark. There was no venture capital available and great currency turbulence. Black Wednesday occurred in September 1992, and the county enterprise boards had been announced, to much bemusement, around August. I hope that my memory serves me right; if not, the Minister's colleagues may be able to correct me.

I wonder whether we still need such boards. Some €18 million is being spent by them. They were designed to provide for a period when one could not borrow money. At the end of the currency crisis, overnight rates for small firms were hitting 60% or 70%. The figures I have before me show €80 million, and no one could borrow money for anything of a business nature, especially without a track record. One of the determining characteristics of a good Administration is the ability to recognise that a programme may have run its course and that it may be time to wind it down. I do not suggest that it be cut off arbitrarily, but I wonder whether there has been a fundamental review.

What is being done by the enterprise boards that is not being done by the private sector, the financial sector or a much more entrepreneurial environment which, happily, we have created? More venture capital is available in diverse forms from the release of equity from homes, for example, than was possible in 1993. By and large, people are wealthier than they were before. They may be cash stricken in terms of outturns but their assets are greater. If the Minister had €18 million on his desk, as distinct from locked up in the enterprise boards, would there be other areas on which he would spend it? That is my first question before I address the subheads. I am curious as I was involved with this at the very early stages. I set up the first enterprise venture capital fund with the ICC Bank, which I see is now coming to an end. Has the Minister examined the position of the enterprise boards and does he believe they still have a function? What is the job creation outturn for them?

Shall I respond to the questions from Deputy Hogan?

We had agreed to take the opening statements from Deputies Hogan and Quinn for Fine Gael and the Labour Party and we would then address the subheads. If the Minister wishes he can respond now or wait until the subheads are discussed.

The Deputies inquired about three issues and it may be useful to concentrate on them now.

Please do.

Deputy Hogan welcomed broad aspects of the output statement and the Estimate, which I do not intend to address, other than to point out that the last six months of 2006 were one of the best six month periods for foreign direct investment for approximately six years. The most recent live register figures show a further decrease. The employment position looks most positive.

Deputy Hogan inquired about decentralisation of FÁS and the Health and Safety Authority. He stated an advance party had gone to Kilkenny as part of the REACH initiative under the Health and Safety Authority. A total of 41 people have indicated Thomastown as their first preference for transfer in the decentralisation programme through the central applications facility. The current estimated timeline for the availability for occupancy of the site in Thomastown is late 2008 or early 2009. The OPW has indicated the site procurement process is in its final stages. Deputy Hogan may be aware of this. The Health and Safety Authority established an interim office in Kilkenny city in August 2006 when 15 staff were recruited for the REACH strategy. That number will increase to 18. Any future staff recruited for the implementation of the EU chemicals directive, REACH, will be located in Kilkenny city initially and then Thomastown.

Approximately 102 FÁS staff have expressed an interest in relocating to Birr. A contract was signed by FÁS in May 2006 for the purchase of a site but the vendor subsequently withdrew from the sale due to delays around the agreement for the provision of road access to the FÁS site. The purchase site of €1.5 million, plus €24,000 in interest, was returned to FÁS and refunded to the Department in December 2006. The FÁS site is part of a larger site of approximately 25 acres in total which appears to be in the process of being sold to another purchaser. FÁS is currently exploring whether there is an option to purchase the original site from the new owners. There is an ongoing saga in terms of buying a site.

Is FÁS definitely moving to Birr?

There is no question but it is moving to Birr. An advance party is moving to Birr also.

I am a strong advocate of county and city enterprise boards. As Deputy Quinn stated, in the early 1990s, access to finance was always a key issue. This is a continuing issue. It was raised again at the Small Business Forum, even though the environment for accessing finance is far better now than it was 15 to 17 years ago. The county enterprise boards now offer a broad range of supports and are not predominantly focused on giving grants. They offer soft supports to micro enterprises ranging from consultancy advice, management supports and programmes. What has changed is the mindset, now there is an entrepreneurial mindset. The schools programme conducted by the enterprise boards is phenomenal and is having a very significant impact. It also hosts an annual competition in Tullamore.

An evaluation of the continuation of the county enterprise boards was carried out and is documented in the Fitzpatrick report. The enterprise strategy group looked at the broader industrial policy in its report and recommended a better continuum between county and city enterprise boards and Enterprise Ireland. Enterprise Ireland and the IDA deal with companies that are export driven. The group recommended that decisions should not be based on rigid demarcation of the number of employees but on the potential of the company. That is now happening in many places. I have been impressed with the quality of the enterprise boards at micro level. What has happened at micro level has been the most significant development in the small and medium enterprise sector in the past decade and accounts for much employment.

The Small Business Forum identified the management capability of small business as an issue that must be addressed. I think the future of the economy will be entrepreneurial. One in 11 people working in Ireland is involved in one form or another of entrepreneurial activity and this was responsible for creating some 2,000 jobs in 2006. We want to see that increase in the coming years.

At €28 million?

They have supported 32,000 jobs since 1993. Fitzpatrick Consultants conducted a fundamental review and concluded that the CEBs discharged important functions at local level and this was endorsed by the enterprise strategy group report.

May I ask a supplementary question?

We have agreed on a procedure and I want to proceed to the heads.

The average cost per job by CEBs is about €5,483, which is less than a job created by the major agencies.

Does that answer the Deputy's question?

I will be guided by the Chairman. If the Chairman wishes to proceed seriatim through the heads, I will raise questions as we go.

That will assist the Chair. We now come to subheads A1 to A12.

There is a very significant increase in subhead A3, incidental expenses, for staff training and development. What type of training and development is involved?

There is extra cost of €260,000 for senior management training. The subhead is being increased from €1,210,000 to €1,583,000.

Staff training has increased from an outturn of €582,000 to €785,000, an increase of approximately €200,000. I am all in favour of staff training.

Is that subhead A3?

It is subhead A3, incidental expenses. I am working off this document.

The figure is 31% higher than the outturn. There were savings of €247,000 in 2006 under subhead A3. When these saving were taken into account, the 2007 Estimate of €1,583,000 for subhead A3 is a more normal 8.6% higher than the estimated budget of €1,457,000. It is higher than the estimated budget of €1.47 million.

I am not querying the figure. I am curious to know—

It is to cover the cost of a senior management development programme for assistant principals and principal officers scheduled to commence in 2007 bringing the provision for training and development to €800,000, more than half of the budget provided under the subhead.

What type of training will they receive and how and where will they receive it?

I can furnish the Deputy with those details.

If the Minister does not have them to hand, one of his officials can forward them to me.

The details can be furnished to the Deputy in due course. We now come to Subheads B1 to I, enterprise agencies, science and technology. As there are no questions arising from these subheads, we will move on to subheads K1 to M5 dealing with labour force development.

I raised a question on subhead G which I was unable to pursue in deference to the manner in which that subhead was dealt with.

The Minister stated in an earlier reply that Fitzpatrick Consultants considered the county enterprise operation to be good value for money. The total amount provided for in the outturn for 2006 was €28 million, including current pay, non-pay and capital. The amount provided in the Estimates for the current year is €31 million. How many sustainable jobs will be created from that allocation?

Approximately 2,000 new jobs were created last year. We hope in excess of 2,000 jobs will be created this year. This is not the only benchmark by which that is judged.

I know that. Going back to my earlier point, does the whole county enterprise board—

In terms of the enterprise boards, we have several performance indicators in line with the output targets for 2007. Approximately 1,000 enterprises will be supported by the county enterprise boards in 2007. The number of students engaging in enterprise education organised under the aegis of the county enterprise boards is expected to be 12,000. Attendees at county enterprise board sponsored training events will be approximately 16,000. I do not have a benchmark indicator for the number of jobs likely to be created. However, we would expect approximately 2,000 jobs to be created.

The representatives of Junior Achievement Ireland who appeared before the joint committee, with whom I believe the Minister of State, Deputy Killeen, met separately, operates a fairly hands-on and engaging programme which complements what is being done by the country enterprise boards. My understanding, having spoken yesterday to Ms Della Clancy, is that she has not been notified of any increase in the support for which she applied. I also understand the Minister met her recently and informed her he is supporting the enterprise programmes through the county enterprise boards which undertake broad education. However, Junior Achievement Ireland has the capacity to do a great deal more at a fraction of the cost being charged by the county enterprise boards. I wonder if the Minister has discretion within the Estimates to reconsider the application made by Junior Achievement Ireland with a view to responding more generously in that regard.

It is erroneous to suggest we informed Junior Achievement Ireland that everything must happen through the city or county enterprise boards. I did not say that. Interestingly, I attended an event in Cork involving a number of schools from the county and several multinational companies which had been engaged by the schools. It is a contribution by the private sector by way of manpower and personnel. It was an excellent programme around the science agenda, of which I am very supportive. That was supported by the Department through the discover science and engineering programme. That was not transparently acknowledged to the extent one would expect. Rather, it was stated that there was no funding. However the programme being launched was funded through an avenue within the Department. My Department is not like other Departments that have residual funds hanging in a subhead. Our money is allocated to agencies such as Enterprise Ireland or Science Foundation Ireland. I am disposed to support Junior Achievement Ireland. I like what it does, particularly the fact that employees from a number of companies give freely of their time to work with young people on enterprise and science. The debate is about the mechanism through which support can be given. I will take on board the views of Deputies Quinn and Hogan. Given that we are in a value for money era, rather than getting into core funding, we might support and encourage agencies under the Department's remit. If the private sector sets up an organisation, there is a case to be made for maintaining that private sector input as contributing to the broader economic success of Ireland and the broader objectives we share with the private sector in terms of an entrepreneurial culture and greater emphasis on science, technology and engineering, which was the aim of the programme in which I was involved.

Does the Minister have discretion within the Estimates to increase the amount of money he could make available to Junior Achievement Ireland in the current financial year, or is all the money spoken for?

There is always room to work with agencies.

Deputy Hogan has had to go to the funeral of a colleague in Carlow. At his request I apologise on his behalf for his absence. In light of the representations made, will the Minister revisit Junior Achievement Ireland's application?

If there is an application for core funding, I will examine it.

The Minister will find there is an application for funding.

I am open to discussion on this, but I would prefer to fund specific projects, to recommend that the various agencies give consideration to specific projects. It is not entirely appropriate to make affirmative responses at this stage.

I respect that. I simply want to know whether the Minister has discretion to increase funding.

I am supportive of Junior Achievement Ireland. I have met the group and have officiated at some of its events. I would like to think that is indicative of a supportive approach. Sometimes agencies become territorial about their domains, but I will talk to the agencies. I see Junior Achievement Ireland as having a complementary role.

I accept that.

We will now deal with subheads K1 to M5, labour force development.

I welcome the employment programme for people with disability. It is very necessary. There are people with disabilities all over the country who have attended course after course and still cannot get employment. It is too easy for non-nationals to take up the types of jobs that would suit people with disability. Employers are, therefore, very slow to take on people with disabilities. I accept the Minister has provided extra funding but an extra push is needed to help people with disabilities who have gone to the trouble of taking courses but still find it nearly impossible to get employment.

Arising from the workway programme the wage subsidy scheme was introduced with the intention of providing an incentive to employers to take on people with disabilities. Initially, the take-up was disappointing. We have been working on pilot projects and FÁS has been working, particularly with IBEC, to disseminate information about the scheme and to encourage employers to employ people with disabilities. There have been some positive outcomes, particularly with the support of the employment services policy unit.

I welcome that.

How many people are currently employed under community employment and job initiative schemes?

Approximately 22,000 are employed on CE schemes and approximately 2,500 under the jobs initiative scheme. The social economy is now the responsibility of the Department of Community, Rural and Gaeltacht Affairs.

Does the Minister recall how many are employed under the social economy initiative?

All three initiatives employed approximately 25,000 people.

Was that the total for all three?

Yes. That is my recollection. In 2006, CE schemes employed 22,281 and 1,757 were employed under the jobs initiative scheme. In 2005, the last year in which my Department was responsible for it, the social economy initiative had 1,919.

I am interested in orders of magnitude rather than precise figures.

Am I correct in thinking that the live register figures which are due to be published will show that approximately 30,000 people are long-term unemployed, that is, they have been unemployed for 12 months or more?

The Department of Social and Family Affairs has the live register figures for this week, which are the most recent. I do not have them with me. I prefer not to rely on my own recollection. I will send the figures to Deputy Quinn.

I thank the Minister.

Subheads N to P deal with employment rights and industrial relations. Subheads Q to S2 deal with commerce, consumers and competition. Subhead T deals with health and safety.

I welcome the emphasis on safety on farms. In his opening remarks, the Minister reminded us that farm work is a dangerous area. The work now being done on farms is more dangerous than in the past. I welcome the emphasis on making life on farms safer.

Fatalities can occur on agricultural holdings. Subheads U to X4 cover other services.

We are paying €13.2 million to the European Space Agency. What are we getting in return for this? Under subhead V, which covers work-life balance, we are paying out €278,000. This is not a great deal of money but nevertheless I wonder what we are getting for it. I see that one third of a staff member's time is devoted the evaluation of value for money. The Minister has a substantial budget of more than €1.2 billion. Should he not allocate more than €18,000 to evaluating value for money? What are we getting for expenditure on the European Space Agency? Similarly, what is the expenditure on work-life balance for, because it is for salaried staff? What is the Department's internal ability to ascertain value for money?

Ireland pays an annual subscription to the European Space Agency. The objective is to assist Irish companies to commercially exploit European Space Agency participation in global space and non-space markets. Key benefits include support for in-house research by companies and product qualification. More than 20 Irish companies secured new European Space Agency contracts in 2006. The spin-off business arising from Irish participation in the agency is estimated to exceed €25 million. Irish companies expanded their involvement in the EU Galileo satellite navigation programme with seven securing ESA development contracts in 2006. The subscription is about access for Irish companies.

Is it the case that if we do not pay our membership dues, Irish companies cannot tender for projects?

I am not saying that. We have obligations as a member state of the European Union and it is desirable that we support cutting edge technology.

I am not being critical. I am trying to understand how the system works. Our membership due is €13.2 million. In return, eligible and capable Irish companies may bid for projects financed through the European space programme. It seems they have done so to a significant extent. Is the ability to tender restricted to European companies or can American, Japanese and other companies bid?

I will check the regulatory conditions. I made the points about company participation and success to demonstrate that membership of global organisations can open up horizons for Irish companies and people and secure access to programmes, science and technology. That is the context in which I made my remarks.

I am very comfortable with that.

I will check the regulatory conditions on tendering for the Deputy.

When the Minister's colleagues revert to me, I would appreciate if they could indicate whether a company must be from a contributing state to tender for ESA projects. The USA operates very restrictive practices in respect of its projects. I have no problem with the subscription but merely wish to establish the facts.

It is a fair comment. The purpose of the work-life balance subhead to is to provide funding for the activities of the national framework committee for work-life balance which is chaired by the Department. It was established under Sustaining Progress.

Some of the work of the framework committee addresses ways to facilitate the participation of women in the workplace and other issues. Its work used to be directed almost exclusively at family-friendly policies, but there is currently an acknowledgement that people in the workplace have other interests besides family and caring. Current policy is directed to ensuring that the workplace is more worker friendly in its recognition of outside interests. The context of policy is the idea of the workplace of the future and the work of the high level group.

The fund is €278,000. I want an example of the work the framework committee carries out other than the poster sent to me in the post for free.

The principal event funded is the annual work-life balance day. The committee seeks also to encourage enterprises to pursue work-life balance policies through social partnership and the provision of information for employers. There is a general fear that work-life balance policies may impact negatively on productivity, which a panel of experts is available to address in individual workplaces.

In the scale of all the Minister is spending, this is chickenfeed, but the approach appears to be unfocused. The Minister of State knows what it costs to run an election, as do all of us who are elected politicians. The sum of €278,000 is a hell of a lot of money. What exactly is it spent on? It is not current pay. It cannot be on the posters I got free of charge through the post.

There is a good deal of cost involved in publication and dissemination but there is also a cost involved in providing the panel of consultants who are available to help workplaces that are prepared to take on these policies. Another separate fund is operated under the workplace of the future initiative which has a much wider application. The intention is to ensure employers have access to best practice in regard to work-life balance policies. I regard the sum as a small amount in terms of what is seeking to be achieved. A document was published this year with the title, Work Life Balance; A Planned and Systematic Approach at Enterprise Level, and this is available to employers and employees.

Is the Minister of State saying if I had a small enterprise and I wanted to restructure the way we function I could apply to the Department and get a consultant to advise me on how to achieve a better work-life balance for my workforce?

The first thing an employer would receive is a copy of the document to which I referred. Subsequent to that, if an employer wanted to pursue the issue further, a panel of consultants is available to provide guidance and assistance to enhance work-life balance arrangements.

I invite the Minister to make his concluding comments.

Deputy Quinn raised the issue of value for money. This is a subhead that is available for use by any section of the Department that needs to commission skills, knowledge or expertise not available within the Department. It is available to them to undertake a value for money or policy review. The objectives of the value for money or policy reviews are to analyse Exchequer spending in a particular area in a systematic manner and to provide a basis on which more informed decisions can be made on priorities within and between programmes.

For example, a value for money study was carried out on spending on science and technology in 2006 and another study is under way on investments by Science Foundation Ireland which is due for completion in December 2007. Some of the agencies carry out their own value for money reports from within their own administrative resources or they may commission external experts to carry out value for money reports for them. If we were to do additional work, we would have to add to the allocation. For example, if we wanted to carry out a value for money report on FÁS or another agency. The allocation is to cover work this section may do on a specific project in any given year. It is not a broad sweeping value for money operation.

At €18,000, it certainly is not.

Do Members have any concluding remarks?

I note the Minister said he would return to questions I asked at the outset. I support the Department and the notion of staff training. The Minister is proposing to spend an extra €200,000 on staff training in the current year. Will he outline what kind of staff training is envisaged?

I am concerned about the appropriateness of the county enterprise boards. I wonder if we are getting the type of value for money the Minister thinks we are getting from it. This area needs to be revisited. In all our administrations, we have a tendency to establish projects that never get terminated. They become short-term responses to a particular crisis and then they take on a life of their own. I am not looking for the termination of the county enterprise boards but I wonder if they are carrying out the function for which they were originally set up, and if that function needs to be done in the way it is currently being done. The sum of €28 million is a significant amount of money and I can think of numerous schools around the country that could do with €500,000 for an extension they cannot get.

With a budget of €1.3 billion, one needs to have a more rigorous internal value for money assessment. I am addressing my comments to the officials, irrespective of the Minister leading the Department. With the scale of the sums involved we need to be rigorous in our assessment of value for money. I invite the Department, under the leadership of Deputy Martin, to look vigorously at the internal policing of value for money. It seems ludicrous to allocate one third of the time of an official on a salary of €18,000 to this important role. I would be embarrassed to include a figure in the Estimate for one third of a salary of €18,000.

I welcome the introduction of the output statement as an addition to the presentation of the Estimates. Many of the agencies under the aegis of the Department for Enterprise, Trade and Employment have set ambitious performance indicator targets. The output statement is an excellent document, which details not only the allocation of money to particular subheads but the outcomes in each department. The Irish economy has done extremely well and the Department has played a key role in that transformation. The agencies under its remit have played a significant role in attracting inward investment. Among the strands encapsulated in the output statement is the thrust of Enterprise Ireland's strategic new direction leading to a knowledge-based economy and achieving the benchmarks it has set itself in terms of supporting indigenous enterprise. The central message of the output statement is that we have moved from being an investment-driven to a knowledge-driven economy with a concentration on brain power, innovation and upskilling.

I am a strong supporter of the enterprise boards. I have seen how they operate in different parts of the country and realise they are a very important part of the infrastructure we have to encourage entrepreneurial activity. They have been an outstanding success story. I have seen enterprises that have grown since their start up with the support of enterprise boards become large companies. The CEBs have become far more sophisticated since they started out and provide a broader range of supports They are promoting and supporting the concept of enterprise at the micro level, where it must be encouraged. The mindset is changing. When one addresses a class of apprentices or graduates, as I did recently, students are no longer just thinking about getting a job but about setting up a company. In the days when I went to school, the idea of setting up a company was foreign to what went on in the classroom, but the culture has changed dramatically and I think the enterprise boards have had a contributory role to play in that transformation. Times change and the role changes but if it was not for the role of the enterprise boards we may not have thousands of schools involved in the young enterprise programme. Work remains to be done in embedding it into the mainstream curriculum. I am very supportive of the process.

I thank the Minister for attending.

Top
Share