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Local Enterprise Offices

Dáil Éireann Debate, Tuesday - 20 October 2015

Tuesday, 20 October 2015

Questions (297)

Finian McGrath

Question:

297. Deputy Finian McGrath asked the Minister for Jobs, Enterprise and Innovation further to Parliamentary Question No. 318 of 6 October 2015, his views on correspondence (details supplied) regarding a small tourist business that is creating employment and uses an innovative model, and yet receives no support; and if he will make a statement on the matter. [36163/15]

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Written answers

As I stated in my response to Parliamentary Question No. 318 of 6 October 2015 in relation to this matter, the reasons for a refusal by a Local Enterprise Office (LEO) of a grant application are a matter between the LEO and the applicant, in which I have no function. An independent evaluations committee makes such decisions.

In general, the LEOs may offer financial support to unique tourism services projects that are focused predominantly on generating revenues from overseas visitors and which do not give rise to deadweight and/or displacement in the local economy. In that regard, State funding should not be used to support jobs if the consequence might be to displace jobs elsewhere in the sector.

The potential for job displacement exists where a new business could only prosper by diverting sales, output, or employment away from existing local businesses already providing essentially the same offering, thus placing existing jobs and the viability of existing businesses at risk.

From the correspondence supplied as part of Parliamentary Question No. 318 of 6 October 2015 and this one, it is apparent that the applicant has been notified by the LEO Dublin City as to the steps that need to be taken should he wish to pursue the application; that is, for the applicant to provide new information, such as in the form of a letter of support from Fáilte Éireann, citing evidence of the need for this service, to support reconsideration of the claim. If the applicant wishes to appeal the decision, or should he want further information as to any other options available to him, then he should contact the Head of the LEO Dublin City directly.

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