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Local Enterprise Offices Establishment

Dáil Éireann Debate, Wednesday - 24 April 2013

Wednesday, 24 April 2013

Questions (116)

Luke 'Ming' Flanagan

Question:

116. Deputy Luke 'Ming' Flanagan asked the Minister for Jobs, Enterprise and Innovation the way in which the proposal to maintain in excess of 30 LEOs meets the criteria of reducing the number of quangos in the McCarthy report; the way in which the suggested structure of new enterprise offices based on local authorities reporting to county managers with a service level agreement with Enterprise Ireland, that is, adding the complexity of local authorities, does not in fact create another layer for businesses to deal with; if he will explain the way the proposed new structure and the reporting requirements within it are enterprise focused; and if he will outline the reason start up businesses should see why engaging with a local authority that sets and demands rates is a positive and innovative reform. [19467/13]

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Written answers

The CEB restructuring project is the first radical reform of the system for the delivery of State support to micro and small businesses since the establishment of the County and City Enterprise Boards (CEBs). This reform will bring about a new level of engagement and interaction at both national and local level in relation to enterprise support and economic recovery and growth. The proposed reforms offer a huge opportunity to leverage the skills and experience of the CEBs, Local Authorities and local business community to create a national approach to the sector allowing for seamless progression, innovative performance and increased employment.

The creation of a First-Stop-Shop at local level for the support of small and micro business will bring local enterprise support into an integrated national network of Local Enterprise Offices (LEOs) delivering enterprise policy to the highest standards, offering seamless progression for small business with potential to the existing national programmes run by Enterprise Ireland (EI). The LEOs will deliver the combined functions of CEBs and the Local Authority business support functions as well as developing an enhanced service to business at local level.

The new Micro Enterprise and Small Business Division in Enterprise Ireland will develop a world-class Centre of Excellence providing best-in-class support to entrepreneurs and small business in the execution of a national micro enterprise policy. The LEOs will report into this new Micro Enterprise and Small Business division.

The EI Centre of Excellence will be responsible for developing an improved environment for small and micro business and bringing this sector into the heart of national enterprise policy. It will build on the success of the CEBs by developing new thinking and best practice with regard to supports for small and micro business and ensuring their delivery. Some of the strengths and advantages that EI will display are an enhanced insight to the opportunities for development of key and emerging sectors, clusters and networks; a back-stop of technical expertise to assist in the assessment of potential investment projects and access to a central reservoir of information, benchmarking programme performance and assessing international best practice. The LEOs will have a close on going working and reporting relationship with EI in terms of design and deliver of appropriate national training and management development programmes and financial supports, management and monitoring of LEO metrics including the measurement of customer/entrepreneur experience/satisfaction, progressing LEO clients to the EI portfolio, preparation of Enterprise Development Plans for each LEO etc.

The current 35 separate Board structure will be dissolved – thereby removing much of the high level administrative requirements normally associated with Non Commercial State Sponsored Bodies and eliminating duplication or overlap arising from the individual Board structure - and their functions delivered by the Local Authority, through the LEO, on behalf of EI. The LEOs will form a stand-alone unit within the local authority structure and through Framework Service Level Agreement (SLA) between EI and the Local Authorities will be answerable to me as Minister for Jobs, Enterprise and Innovation for all enterprise policy and budgetary matters. I will shortly publish the SLA.

Local Authorities have worked with business to support investment and business development at local level, and to the extent that it has been part of their remit hitherto, promoting and fostering entrepreneurship. They deliver essential services to business and can respond to the needs of local businesses speedily and efficiently, as well as advising on the requirements placed on business in relation to matters such as planning, building, fire and safety, business rates, and licensing.

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