Dáil Éireann díospóireacht -
Tuesday, 4 Feb 1997

Vol. 474 No. 3

Written Answers. - Small Business Sector.

Ivor Callely

Ceist:

38 Mr. Callely asked the Minister for Enterprise and Employment the proposals and initiatives, if any, for the small business sector in 1997; the progress, if any, with the implementation of all the recommendations of the task force on small businesses; and if he will make a statement on the matter. [2878/97]

Minister for Enterprise and Employment (Mr. R. Bruton)

This Government fully recognises the crucial role which the small business sector plays in the Irish economy and has made very significant progress in assisting that sector, particularly through the substantial reductions in its taxation burden which have been effected in successive budgets. Further evidence of the high level of commitment which exists is to be found in the inclusion in Partnership 2000 of a separate chapter on action to assist small business, which is an unprecedented step in recognition of the importance of this sector. I intend to progress the commitments contained in Partnership 2000 at the earliest possible date.

Over the coming months, I will be introducing several new initiatives for small business. As the Deputy will be aware, on 5 November last the Government gave formal approval to proposals submitted by me to have a prompt payment Bill drafted. The purpose of the Bill is to ensure the prompt payment of amounts due to suppliers of goods and services by public sector purchasers and by sub-contractors on public sector contracts. I will be bringing forward legislation on this issue at the earliest possible date.

Later this month I intend to publish my proposed strategy on services. The strategy will review the impact and growth of the services sector on the structure of production and employment in the Irish economy, and will examine the factors which affect the growth and development of services. It will also review the current balance and types of State supports to ascertain whether these are appropriate and adequate. As a large proportion of services businesses are small, the strategy will be of particular relevance in the context of small business.

I am currently reviewing the success of the access to finance scheme and identifying the scope for introducing new finance measures for small companies. All £208 million which was available under the AFS was fully drawn down by the end of 1996. One thousand four hundred small businesses benefited through subsidised long-term loans over a seven year period and 8,000 additional jobs will be generated in the process.

In the context of the strategic management initiative, work is already in train on the preparation of a broader strategy on administrative simplification to ensure a measured reduction in administrative burdens over time and, furthermore, to ensure that the administration requirements of new measures are kept to an absolute minimum. During 1997, I will also be taking steps to achieve progress in the area identified in Partnership 2000 for administrative simplification.

In addition to the various measures which are already up and running under the small business operational programme, certain new areas will be addressed under the programme in the near future. A range of initiatives will be implemented which will help small business to identify new supply and service opportunities and will assist in improving the professionalism and expertise of public purchasers. For example, an initiative on public procurement, which will come on stream over the next few months, will provide for the appointment of six full-time public procurement specialists to a joint Forbairt/An Bord Tráchtála programme. Other initiatives which will shortly be introduced in this area include the publication of a directory of public sector buyers, together with workships and training to assist small firms in accessing these markets.

A patron programme for the services industry is being established under the operational programme. Forbairt will select a group of companies to act as patrons and will broker contacts with small service companies. During 1997 it is planned to launch the programme to 20 to 30 companies. A consultant has already been engaged by Forbairt to determine the availability of suitable patrons and the most appropriate operational structure. The consultant's report is planned for completion by the end of March next, at which stage the implementation process can be initiated.

In recognition of the importance of information for prospective and existing entrepreneurs in small business, my Department will, later this year, publish two guides in areas of particular relevance to them. One will concern the starting up of a business, the other will concern financing and will incorporate full information on the important matter of available grant assistance. These projects will also be assisted under the operational programme.

The Deputy will be aware of the importance of the Plato project, which is a business training and networking project under which larger businesses assist local SMEs in their development. The expansion of the Plato network to three new areas in 1997 — Dublin North, Dún Laoghaire-Rathdown-Wicklow and Donegal — is being supported by the county enterprise boards with the active involvement of local business organisations. The Donegal Plato programme is being undertaken as a cross-Border initiative.

Expenditure on management development by the county enterprise boards during 1997 will amount to £2 million. This level of expenditure represents a doubling of the resources available for this type of soft support activity by the CEBs compared with 1996. In addition to all of these initiatives, I should also stress that the White Paper on Human Resources Development will include detailed proposals for the development of the human resources potential of small indigenous companies in order to improve their competitiveness both in the local and international markets.

In regard to progress in implementing the recommendations of the task force on small business, the position is that, to-date, over 50 per cent have been implemented in full or in part. The task force made 121 recommendations of which 39 have been fully implemented and substantial progress had been made with the implementation of a further 29 recommendations. Details of these recommendations were furnished by me in response to a question from Deputy O'Rourke on 28 January 1997 — Question No. 268, ref. No. 2037/97.

The systematic examination and implementation of the recommendations is being pursued by the small business and services division of my Department which has assessed all the recommendations and is actively pursuing their implementation. I am satisfied that, building on the work which has already taken place, very significant additional progress in this regard will be achieved in 1997.