Dáil Éireann Debate, Wednesday - 5 March 2014
84. Deputy Derek Nolan asked the Minister for Jobs, Enterprise and Innovation if he will review State funding for new or existing enterprises in the service industry; and if he will make a statement on the matter. [11013/14]
View answerAnyone interested in starting or expanding their own business should in the first instance contact their local County and City Enterprise Board (CEB). The CEBs support the indigenous micro-enterprise sector in the start-up and expansion phases and stimulate enterprise potential at local level. They are the first port of call in terms of advice, direction, training and grant support for anyone who wishes to start or expand their business. Contact details for the CEBs are available on www.enterpriseboards.ie.
The CEBs generally only grant assist enterprises in the manufacturing or Internationally Traded Services sector, which over time can develop into strong export entities and graduate to the Enterprise Ireland portfolio. Retail enterprises are ineligible for direct financial support from the CEBs due to concerns over displacement (where grant-assisted projects simply displace business from other players in the local market). It should be noted that Enterprise Ireland is also legally precluded under its remit from providing direct financial assistance to retail enterprises.
Any start-up can also use the CEBs as a gateway to accessing finance from Micro Finance Ireland, which offers support in the form of loans of up to €25,000 to start-up, newly established or growing microenterprises employing less than 10 people with viable business propositions that do not meet the conventional risk criteria applied by the banks. The Fund has a significant entrepreneurship focus and is open to anyone with a viable business proposal. Applications for the Microfinance Fund should be channelled through the local CEB.
In addition, locally trading businesses, including start-ups can avail of non-financial assistance from their CEB in the form of a wide range of business advice and information services, management capability training and development programmes, e-Commerce training initiatives etc. Training courses include such topics as start-your-own-business, taxation for beginners, internet marketing, ideas generation and negotiation skills.
The Deputy may wish to note that the system for delivery of State supports to micro and small enterprises is being reformed and that the 35 existing County and City Enterprise Boards (CEBs) will be dissolved and new Local Enterprise Offices (LEOs) will be created. 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 target date for the legal dissolution of the CEBs and the formal launch of the LEOs is mid-April, 2014.
The Quarterly National Household Survey, Quarter 3 2013 employment figure showed continued growth in the Accommodation and Food Service Activities sector which now employs almost 138,000 people. The Republic of Ireland attracted almost 7 million overseas visits in 2013, an increase of 7.2% compared to 2012. This continued strong performance was aided by the Government’s decision in 2011 to introduce a temporary reduced VAT rate of 9% for tourist-related services. The introduction of the 9% VAT rate has helped to create and retain jobs in the Accommodation and Food Service sector where employment has increased by 16,600 between Quarter 3 2011 and Quarter 3 2013. While the 9% rate was due to expire in December 2013, Budget 2014 confirmed the retention of the 9% rate for hotel and catering services.
