Peadar Tóibín
Question:47. Deputy Peadar Tóibín asked the Minister for Jobs; Enterprise and Innovation if he will outline when the new local enterprise offices will be established and operational. [41825/12]
View answerTuesday, 2 October 2012
Questions (47)
Oral answers (20 contributions)
I congratulate Deputy Calleary on his appointment to this important area of responsibility.
Micro and small businesses are crucial parts of our economy. Ensuring more such businesses can start up, expand and export is a key pillar of our plans for jobs and growth. For this reason, the Government has decided to implement an ambitious reform of the delivery of services to small and micro businesses. This will include the development of a new small and microbusiness division within Enterprise Ireland as a centre of excellence in the provision of supports to that sector; the dissolution of the county and city enterprise boards, CEBs, and the transfer of their functions, assets and liabilities to Enterprise Ireland; the establishment of local enterprise offices, LEOs, to provide a high quality, innovative, one-stop shop support service for small businesses within local authorities and early access to services provided by national bodies; the integration of key local authority business services into the LEOs; and the promotion of a local environment in which enterprise can thrive.
Not only is it important that this restructuring be conducted as a priority, we must also ensure the new model is fit for purpose. A high level implementation working group chaired by my Department is progressing the range of issues involved, including a focus on functions, structures and staffing, all of which will form the basis of a detailed and ambitious service level agreement between Enterprise Ireland and the local authorities. A project plan is in preparation that will set out clear milestones and timelines for implementation. I intend to complete the process as rapidly as possible.
In tandem with the work of the implementation working group, my Department is engaged with the Office of the Attorney General regarding the detailed primary legislation that will be necessary to implement the new arrangements. My ambition is to give administrative effect to the new structures as soon as possible and in advance of the formal enactment of legislation. To this end, I plan to deliver a series of significant interim milestones during the transitional arrangement. These are in preparation.
The beginning of the jobs plan states that governments do not create jobs. That is certainly true of this Government. The majority of the State's employment is found in small to medium-sized enterprises, SMEs. Some 2,200 new businesses open every month. However, 1,400 businesses also close every month. Whenever we discuss this issue with the Government, it tells us that steps forward are being taken. While there have been some steps forward, for example, in terms of foreign direct investment, there have also been major steps back. On balance, the latter worsen the State's unemployment situation.
Last week, the Oireachtas Committee on Jobs, Enterprise and Innovation received evidence from the Irish Exporters Association, IEA. Like us, it has seen a vacuum develop within the supports for SMEs. The city and county enterprise boards, CEBs have been in a state of chaotic limbo since Mr. Batt O'Keeffe was the Minister for Enterprise, Trade and Innovation. The evidence to the committee suggests this situation is costing jobs.
I do not mean this personally, but there is a vacuum in this area because there is a vacuum in the Department. Ineptitude in the Minister of State's small enterprise section is allowing a critical sector that is heavily dependent on job creation to flounder. We are dealing not only with significant economic challenges, but also with a lack of leadership on the part of the Minister of State. The Government has been in power for nearly 18 months, yet he was unable to provide a date for when the new regime would be in place. Will he show some leadership today and indicate the date on which the regime will start?
Much work has been done and the role of county enterprise boards is still very effective. I attended the national ploughing championships last week and I noted a certain number of start-up businesses getting on with their enterprise. There have been closures but there are also some very high-potential start-up businesses. There has been an establishment of the first-time exports division and the microfinance fund will be rolled out through county and city enterprise boards. This is about the evaluation and management of enterprise in every sense and potential in the market.
It is important to note that the new interim milestones relate to the determination of local enterprise offices and accommodation plans; this is taken with enterprise officers on the ground, the centralisation of services and roll-out of services for small companies. The backbone of the economy is made up of small enterprises, and these take in manufacturing as well as high-potential start-up companies. All these are doing exceptionally well. I have been all over the country meeting the people in all these companies. Enterprise Ireland has a very focused working plan and this was not a simple shift from county and city enterprise boards. The working group has formulated a strong level service agreement that will establish a one-stop shop for business.
With regard to the timeframe, the legislation has been formulated, as I noted in the initial reply, and it will go the Attorney General. I expect the local enterprise offices will be up and running in the second quarter of 2013.
The Minister of State mentioned a number of bureaucratic changes but the fact is that with the interaction of businesses at the coal face, and where it counts, the exporters' association has indicated that chief executive officers have not been replaced in county enterprise boards and there is considerable inertia in the system. Companies and small businesses are paying for this. Currently, confidence in being able to do this job is seeping away so will the Minister of State give some timeframe to small businesses in order to end this inertia?
I disagree that there is inertia.
That is coming from the enterprise boards.
There is a big commitment from within the enterprise sector, and even in the county and city enterprise boards, to be effective on the ground. The advisory groups are dealing with business people who are coming in, and there is an allocation of budget for each county.
That is not the view of the county enterprise boards.
That is the view I have from meeting the people involved. The restructuring process will tackle the local enterprise office process that has operated since 1993. The microfinance fund will be operational and people with an idea can go to a local enterprise office and seek up to €25,000. In the short term that will be operated by enterprise offices.
The next question is in the name of Deputy John Browne but he is not in attendance so we will move on.
It has been nominated to me.
I beg your pardon.
I thought Question No. 58 would be taken with Question No. 48. It is very similar and both questions concern youth unemployment.
I have no objection to that.
The Minister is responsible for the groupings. Does he feel up to answering both of the questions together?
Unfortunately, the grouping has already been determined. These are taken in order as people have won priority. I must answer them in order. This question is specifically about the youth guarantee and the EU Presidency, and therefore it has not been grouped with other questions on youth unemployment. Questions that relate just to youth unemployment have been grouped.
The Deputy could ask a supplementary question anyway.
The Minister might accept a supplementary question.
That is fine.