I wish to reassure the Deputy that there will be no reduction in the maximum grant of €80,000 for financial assistance to projects. The ultimate aim of the reform of the existing micro and small enterprise support structures is to create an enhanced and integrated national micro-enterprise support model designed to deliver tailored supports to the highest standards, benchmarked by Enterprise Ireland and delivered in partnership with the Local Authorities. With enabling legislation, Enterprise Ireland (EI) will be given responsibility to deliver a high quality local enterprise support system through Local Enterprise Offices (LEOs) in Local Authorities areas.
All projects being considered for financial support will be evaluated by a locally appointed Evaluation and Approvals Committee, and all projects under €40,000 may be approved by this Committee in line with overall Government policy for supporting enterprise development. All projects over €40,000 will be evaluated and, if endorsed by the local Evaluations and Approvals Committee, will be referred to the Enterprise Ireland Jobs Expansion Fund Committee for final approval. Projects seeking approval in excess of a cumulative €80,000 over a 3 year period will also be approved by Enterprise Ireland in the same manner.
Only a very small number of projects per annum exceed the €40,000 threshold. These are likely to be the kind of projects which are considered to have high growth and export potential and fall into the progression pathway for companies seeking further support measures from Enterprise Ireland.
I believe that the €40,000 threshold for local approval is seen as an appropriate tiering of the State’s financial support instruments, and simultaneously ensures that clear progression pathways for support are established for businesses, as outlined in the Government decision to establish the LEO Network. Finally, in line with the terms of the Framework SLA, the approvals threshold will be reviewed in July 2014.
