Dáil Éireann Debate, Tuesday - 21 February 2017
639. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the EU funds her Department accesses; the plans she is putting in place to access these funds to a greater degree in view of Brexit, or if she will outline initiatives she is pursuing to establish access to new funds in view of the challenge of Brexit; and if she will make a statement on the matter. [8809/17]
View answerThe current phase of the European Structural and Investment Funds covers the period 2014-2020. The European Regional Development Fund (ERDF) forms one component of the wider European Structural and Investment (ESI) Fund. Within Ireland the Minister for Public Expenditure & Reform has overall responsibility for EU Cohesion Policy and primary responsibility for the ERDF. Two agencies under the aegis of my Department (Science Foundation Ireland and Enterprise Ireland) are key contributors to two Operational Programmes (OPs) to implement the strategic priorities set out in our Partnership Agreements with the European Commission. These OPs are co-funded by the ERDF under the auspices of the Department of Public Expenditure & Reform - one for the Southern region and one for the Northern and Western region.
The focus of these programmes is on jobs and growth; combatting unemployment and social exclusion; promoting research, technological development and innovation (RTDI) and information and communications technology investment and the competitiveness of the business sector; and promoting an environmentally friendly and resource-efficient economy.
The total programmed expenditure for the ERDF operational programmes will be €818 million, with an ERDF contribution of 50%, i.e. €409 million. My own Department has responsibility for €406.2 million (€177m from SFI and €229.2m from EI) of this programmed expenditure with a return of €203.1 million. Total programme expenditure is broken down as follows:
Southern & Eastern NUTS II Region - total expenditure of €498 million (ERDF contribution of €249 million); and
BMW NUTS II Region – total expenditure of €320 million (ERDF contribution of €160 million).
The current ESI phase which is scheduled to run between 2014 and 2020 has been agreed with the Commission and is not open to amendment. No additional funding mechanisms under the ESI are anticipated during this period.
The activities of the Local Enterprise Offices (LEOs) are funded through the Irish Exchequer, and up to 50% co-funded by the EU European Regional Development Fund on a retrospective basis.
As set out in the Action Plan for Jobs 2017, the LEOs will be focused on supporting companies in navigating the challenges presented by Brexit, including:
- Technical assistance support for exporting microenterprises;
- Roll out of a national Lean for Micro initiative to drive firm level competitiveness;
- Targeted mentoring and training initiatives; and
- Local level awareness raising and information sharing.
The EU Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME) runs from 2014 to 2020, with an overall budget of €2.3bn.
COSME's objective includes facilitating access to finance for Small and Medium-sized Enterprises (SMEs) and to increase the sustainable competitiveness of EU companies and help small businesses operate outside their home countries. It is also hoped that COSME will create an environment which is favourable to business creation and growth, and encourage an entrepreneurial culture in Europe.
One of the means by which this objective can be achieved is through the use of EU financial instruments, which are a key component of the COSME programme. The Strategic Banking Corporation of Ireland (SBCI), which comes under the remit of the Department of Finance has recently signed the first COSME agreement in Ireland with the European Investment Fund. This transaction is guaranteed by the European Fund for Strategic Investment (EFSI), the heart of the investment plan for Europe. This agreement will allow SBCI to support €100m of loans to SMEs in Ireland over the next three years and support attractive loans to around 2,000 SMEs through risk sharing initiatives.
My Department is currently working with the SBCI utilising the terms of the Credit Guarantee (Amendment) Act 2016 to see if there are other mechanisms by which we can leverage additional EIB/EIF funds through risk sharing instruments. I am confident that this work will lead to the development of additional products to facilitate the flow of credit to Irish SMEs. In addition, Microfinance Ireland benefits from a guarantee funded by the European Union under the Programme for Employment and Social Inclusion (EASI) Programme.
My Department is actively involved with our Northern Ireland counterpart in the Research and Innovation strand of the EU's INTERREG VA Programme, a cross border initiative which will benefit colleges and companies in Ireland, Northern Ireland and, in some cases, Western Scotland. The two Departments contribute the 'match funding' required, i.e. 15% of the total, with the EU contributing 85%. Arrangements have been put in place which will ensure that this programme can continue despite the closure date of 2023 being after the likely date at which the UK will leave the EU. The overall financial envelope for the full programme (the total EU allocation for this Research and Innovation strand is €60m), was settled by the EU quite some time ago, being part of their wider Territorial Cooperation initiative, so the level of funding for this programme cannot be increased at this stage.
