Dáil Éireann Debate, Tuesday - 4 December 2018
58. Deputy Peter Burke asked the Minister for Business, Enterprise and Innovation the steps she has taken in budget 2019 to support the small and medium enterprise, SME, sector; and if she will make a statement on the matter. [50526/18]
View answerI ask the Minister what steps were taken in budget 2019 to support the SME sector, and if she will make a statement on the matter.
My Department and its agencies continue to be centrally involved in supporting businesses through these challenging times. Brexit is undoubtedly the most significant challenge to have faced Irish enterprise in more than 50 years. With less than four months to go, I am determined to deliver on the commitments in budget 2019 which have Brexit at their core, building on the many measures we have already introduced and responding to the evolving needs of business. We started this process with the introduction of a suite of measures in budget 2017 and further measures in budget 2018.
In allocating my Department’s budget for 2019, I am once again stepping up our response to Brexit. My decisions are based on an extensive body of research and direct feedback from the sector.
To start, I am allocating an extra €14 million to the enterprise agencies and regulatory bodies under my Department, which work with firms at the coalface to develop their supports for business.
As part of the increase to my Department for 2019, I am allocating an additional €3 million to Enterprise Ireland and €2 million to IDA Ireland to enhance our global footprint. This will help companies to diversify into new markets as the United Kingdom leaves the European Union. I am also providing additional funding of €3 million to regulatory bodies, including the National Standards Authority of Ireland, the Health and Safety Authority and the Competition and Consumer Protection Commission, and my Department to enhance their existing functions in the context of Brexit.
I am providing an extra €1 million in capital funding for InterTradeIreland, representing an increase of 17.5%. InterTradeIreland has a vital role to play as part of Ireland's Brexit response. This additional funding will enable the body to meet demand in existing programmes, develop initiatives and support SMEs affected by Brexit.
The local enterprise offices are present in every single county and provide crucial supports for SMEs and start-ups throughout the country. This year, I am allocating an additional €5 million, which is an increase of 22% on 2018. This extra funding will help deliver supports to more SMEs, particularly in the current changing landscape.
I also announced, as part of budget 2019, a longer-term loan facility, the future growth scheme, of up to €300 million to support capital investment by business. This involves collaboration with the Department of Agriculture, Food and Marine, the Department of Finance, the European Investment Bank group and the Strategic Banking Corporation of Ireland.
I welcome the additional measures announced by the Minister for Finance, Deputy Donohoe, as part of budget 2019 that will enhance a number of the taxation supports targeted specifically at our businesses.
Additional information not given on the floor of the House
The redesign of the employment investment incentive scheme, EIIS, and enhancements to the key employee engagement programme, KEEP, share option scheme show the level of commitment from this Government to indigenous enterprise.
To further my commitment to the future growth of our SME sector, my Department, in conjunction with the OECD earlier this year, commenced a review of SME and entrepreneurship policies and issues in Ireland. This will be a seminal 18-month project that will see a comprehensive review of the SME business ecosystem and policies, using OECD expertise in a structured and defined process. The resulting recommendations and issues identified by the report will then form the basis of a long-term Department-led SME strategy for Ireland. The delivery of the review document and the strategy roadmap will be completed by the OECD within 18 months of commencement. To this end, I will continue to ensure that we are supporting the development needs of SMEs by providing them with the tools and incentives to grow their businesses in Ireland.
I thank the Minister for her reply. It is an undisputed fact that SMEs are the backbone of our economy. The sector is the main contributor to our employment. Over 99% of businesses are in the sector. Almost 70% of people are employed by SMEs. SMEs are often overlooked, with greater focus being placed on foreign direct investment and large multinationals receiving a lot of media attention ahead of the smaller companies that create the economies in our cities, suburbs, towns and villages.
In County Clare, there is a strong multinational footprint. We are sixth in the country. We have a thriving SME sector which continues to grow, with businesses going from strength to strength. In addition, there are new start-ups. Furthermore, our restaurants, hotels and retailers continue to employ hundreds and create economic activity by providing quality services.
Emphasis is often placed on new start-ups in establishing new businesses, and rightly so, but we also need to work on supporting existing businesses and helping them to remain profitable and to diversify when they experience difficulties. What plans does the Minister have to continue to support the SME sector in rural and regional Ireland?
The SME sector is the backbone of local economies throughout the country. I want to ensure SMEs are supported, and that is why I allocated an extra €5 million for our local enterprise offices in the budget. That represents an increase of 22%. We have 31 local enterprise offices, and they do great work throughout the country. They can provide grants to businesses with ten or fewer employees, but they can also provide advice and soft support to other SMEs. Sometimes that is a big help to businesses in increasing productivity, which in turn increases their competitiveness. I refer to where they receive the soft supports to improve their management skills.
Future Jobs is a new strategy being developed by my Department. I chaired a session specifically on productivity at the launch in the Aviva Stadium. We need to consider how to improve productivity among SMEs so they will be ready and able to adapt in a changing world. That will be a key focus of the Future Jobs initiative, which will be launched in early 2019.
I compliment the local enterprise office in County Clare, which is under the stewardship of Mr. Padraic McElwee and his team. They work very closely with the SME sector, including new start-ups. They have very good figures and results. It is encouraging to hear that an additional €5 million has been provided for the local enterprise offices throughout the State, representing an increase of 22%.
Does the Minister envisage further investment in the local enterprise offices, thereby expanding their remit and improving their operations even more? I would like to hear the Minister's thoughts on that.
Like the Deputy, I recognise the great work the local enterprise offices do. I am committed to supporting them. The increase in budget 2019 of €5 million was considerable and it was very much welcomed.
With regard to the Deputy's area, Enterprise Ireland-supported job announcements in 2017 and 2018 in the mid-west included 80 jobs in CAE Parc Aviation in Shannon and Dublin in May 2017, 150 jobs in H&MV Engineering in Limerick in January 2018, and 18 jobs in Croom Precision in Limerick in July 2018. Enterprise Ireland client companies saw an increase in employment in the mid-west of 7% in 2017 by comparison with the national average of 5%. Only last Monday, I announced the regional enterprise development fund. In that, there was €1.7 million for a project in County Clare concerning the Shannon Estuary with a view to providing specialist infrastructure for maritime-related training and field research support. This helps the indigenous companies to consider more innovation and research. We need to support our indigenous companies with research and development.
