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Western Development Commission

Dáil Éireann Debate, Tuesday - 25 September 2018

Tuesday, 25 September 2018

Questions (77)

Tony McLoughlin

Question:

77. Deputy Tony McLoughlin asked the Minister for Rural and Community Development if in the engagement he has had with the Western Development Commission the operation and administration of the western investment fund has been raised; and if the provision of additional resources to enhance the operation of the fund is being considered. [38324/18]

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Oral answers (6 contributions)

Has the operation and administration of the western investment fund been raised during the Minister's engagement with the Western Development Commission? Is consideration being given to the provision of additional funding to enhance the operation of the fund?

The Western Development Commission, WDC, operates the western investment fund, which contributes to the development of the region by investing through equity or loans in business startups, growth-oriented small and medium-sized enterprises and community-based measures to encourage enterprise development. The western investment fund was established as a revolving fund. The WDC uses the moneys revolving back into the fund to support new investments. To date, the western investment fund has invested €48 million in 140 enterprises, supported 2,500 direct jobs and leveraged more than €280 million in additional investment. At the beginning of 2018, the western investment fund had €21.4 million available for reinvestment in small and medium-sized enterprises, microenterprises and community and social enterprises in the western region. The Deputy will agree that this represents a huge opportunity to support job creation in the west.

When I met members of the board of the WDC last May, they raised with me their view that additional staff were required to maximise the potential of the western investment fund and the benefits it can bring to the western region. The Deputy will appreciate that any question of increased resources is a matter for consideration in the context of the annual Estimates process, which is taking place at present. The possibility of securing extra resources for the WDC will be examined in that context. I appreciate and understand that additional staff resources would help to maximise the positive impact and effect of the western investment fund. Such resources have been sought by the board. I congratulate the new chief executive officer of the WDC, Mr. Tomás Ó Síocháin, who is taking up his new position this week. I commend the outgoing acting chief executive officer, Mr. Ian Brannigan, on his work over recent times. The WDC has a huge role to play. It is important for the Government to support this important fund by maximising the potential for it to create jobs.

I thank the Minister of State. As he mentioned, up to the end of 2017 the western investment fund had invested approximately €48.5 million in 135 enterprises. I would like to focus on the demand for enterprises as we go forward. The Minister of State rightly mentioned small and medium-sized enterprises and community-based measures to encourage additional enterprise development. What are the plans? Is staffing going to be an issue? The amount of money available for reinvestment in small and medium-sized enterprises in the western development area, which I am talking about, is vital.

Perhaps the Minister of State might elaborate on that.

The potential is great. The investment in these companies to provide loans and secure share capital has the potential to ensure the WDC investment fund can continue to grow. As it grows and as some companies spin out, make money and repay their loans, the return on investment is considerable for the Western Development Commission. The potential for the fund to grow is great. The board has requested, however, that it needs extra staff to realise this. This case has been made to me. There is an ongoing Estimates process and we cannot pre-empt the discussions. I will certainly be advocating for extra resources for the Western Development Commission so it can increase its number of staff. This is its top requirement.

With the success of recent years, there has been an increase in demand for the fund, particularly given the number of entrepreneurs and various others who wish to avail of it. It is vital that the staff is in place. Perhaps this will be a priority of the Minister of State. Without an adequate number of staff, it will be very difficult to administer and provide what is needed. Across the western region, people are crying out for investment. The enterprises that have availed of funding over the years have been well served. It is vital to address the issue of staffing. I agree with the Minister of State on the appointment of the new CEO. Perhaps additional staff are required fairly quickly.

There is a new CEO, a new chairman of the board and a new board has been in place over the last period. There is potential. There have been a number of success stories and initiatives, including the western regional audiovisual producers, WRAP, fund, under the Western Development Commission and local authorities. It was launched last year and it has been a great success. It has generated enthusiasm across the sector. There is potential, and continued support by the Government is important. I will certainly continue to work with the board, the new CEO and the team to continue to drive investment in the western region. That is why the commission was set up. It has a positive track record. We can continue to enhance its importance and secure its future based on its experience and the new ideas, innovation and input of people.

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