Dáil Éireann Debate, Thursday - 17 June 2004
8 Mr. Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans she has to review the eligibility criteria for funding from county enterprise boards; and if she will make a statement on the matter. [17955/04]
View answerMy Department, through Forfás, recently commissioned an independent review of the role of the city and county enterprise boards, CEBs. This review was conducted by Fitzpatricks Associates. It involved consultations with all relevant interested parties and represents an in-depth, objective study of the work of the boards.
Notwithstanding the success of the county enterprise boards in promoting entrepreneurship and development of new micro-enterprises over the ten years of their existence, it was considered timely to review their operation against the background of the major economic changes which took place in Ireland over the period. The review largely endorsed the role of the boards and concluded that there is justification for continued State support for micro-enterprises and that the county enterprise board network should continue to play a useful role in the overall national enterprise development policy.
There are a series of recommendations contained within the review relating to the future activities and structure of the county enterprise boards. These include recommendations for county enterprise boards to renew the focus on the core enterprise mission, tighten the criteria on the provision of financial support so as to address the issues of potential deadweight, displacement and duplication more systematically, and move more towards the use of repayable funding.
The City and County Enterprise Board Network represents only one element of the national enterprise policy and I am considering the Fitzpatricks report and its findings with a view to bringing recommendations to the Government at an early date.
I welcome the conclusions of the report that there is a role for county enterprise boards in micro-enterprises in various counties. We are aware of the opportunities that have grown from small beginnings, particularly from seed capital from the county enterprise boards. I hope the Tánaiste will be recommending to Government a role for the county enterprise boards.
Several enterprise boards have been in contact seeking greater certainty about their future and their financial viability. Would the Tánaiste consider, in the context of the 2005 Estimates, that there will be an increased role and extra funds available to county enterprise boards? Could they be brought more into the mainstream of local authority activities and become more directly accountable to local authorities? There is representation.
I am in favour of accountability through public representatives but not through people who are unelected. Public representatives have a role and are directly elected by the people. Would the Tánaiste consider that in the context of the devolution of powers and greater accountability through public representatives regarding the work being done at county enterprise board level?
I cannot anticipate how the 2004 Estimates process for 2005 will pan out. There will be a great deal of competition for the resources in health and education, and several other areas, including this one.
There are plenty of resources coming from the Revenue Commissioners.
For what Department is the Tánaiste arguing?
I will be arguing for all the appropriate priorities.
It will be a trade mission.
Interesting.
One of the interesting conclusions in the report is that the boards need to be more focused on supporting enterprise that does not displace other enterprise. It cites several examples of where it was simply dead weight, the activity would have happened anyway or it affected someone else nearby. It said that the retail sector should not be supported.
That happens in Kerry.
It says hairdressers and gardeners should not be supported, or accountants and solicitors who, believe it or not, were supported in some places. Professional services such as gardeners were supported.
That is why I asked the question.
If I had answered this question six months ago in advance of the report which I read only last week, I would have been very favourably disposed to seeing the responsibility go to the local authorities. When the local development committees were being established I expressed the view that they be amalgamated with the county enterprise boards. This report strongly suggests that the accountability should be in a national rather than a localised process if we are to achieve uniformity and best value for money. It suggests bringing it into the wider family of enterprise policy, keeping the boards separate but having them working more closely with Enterprise Ireland, for example, so the two fit in together.
So much for devolution.
It may be a good idea for me to submit this report to the appropriate Oireachtas committee.
That is a good idea.
Before the Tánaiste leaves office.
I would be interested in hearing the Deputies' views before I bring proposals to Cabinet.
The Deputy's party won so many seats in the local elections it wants to take over the enterprise boards.
I feel strongly about this particular issue. I do not say this in a political way but if we are to have any respect for public representatives we must give them a role. There will be no respect for public representation at local level if it is not given a meaningful role. Many of the actions identified in that report such as the funding of endeavours that should not be funded, do not come from local government. They come from central government without proper procedures being adopted. There is no virtue in going over that at this stage.
Deputy Hogan has won that one already.
There are many quangos in local government
I suppose that is because Fine Gael has won so many extra seats.
I am trying to be constructive but the Minister of State does not want to listen.
We know what the Deputy and his party are at.
If the Minister of State has learned nothing from his party's experience in the past week, that is fine but at least we have a slightly stronger mandate with which to address the Government.
Deputy Ahern should allow Deputy Hogan to ask a question.
Would the Tánaiste consider all the groups associated with enterprise and local government in the context of the review of the county enterprise boards? If there is an amalgamation, public representatives might play a meaningful role in terms of accountability, through local authorities, in the context of the recommendations she will make on foot of the report. I welcome her assertion that she will bring the report in draft form to the committee before final decisions are made.
It would be useful given that the boards have existed for ten or 12 years. It is estimated they have supported 16,000 projects and 30,000 jobs and received grant aid of €179 million, which is very good value for money if that is the case. They need, however, to be more focused. I am aware of examples where a nursing home was supported because it was on one side of the road in County X, but the home on the other side of the road was not supported. One can imagine the confusion, upset and difficulties that causes. We need greater uniformity. The report is finalised and I will send it to the Oireachtas Joint Committee on Enterprise and Small Business for consideration.
