Dáil Éireann díospóireacht -
Tuesday, 3 Jul 2001

Vol. 540 No. 1

Written Answers. - County Enterprise Boards.

John McGuinness

Ceist:

149 Mr. McGuinness asked the Tánaiste and Minister for Enterprise, Trade and Employment the reasons the overall budget allocated to Kilkenny Enterprise Board has been reduced; the further reason the cash allocation was increased by only 1%; the reason the approval capacity under measure 1 has been cut by 25%; if her attention has been drawn to the fact that the cash allocation under measure 1 will not meet the needs of the board in 2001; if her attention has further been drawn to the fact that the plan for programmes under measure 2 will have to be scaled back due to lack of proper funding; her views on the success or otherwise of the repayable grant concept; and if she will make a statement on the matter. [19943/01]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

I am aware that a number of the 35 city and county enterprise boards have reported to our Department potential difficulties in relation to their 2001 cash allocations.

As a result of a mid-term review, we have arranged that an extra £1 million (1.269 million) be provided immediately for the capital expenditure of the boards. This equates to an increase of 6% of the capital expenditure for the boards for 2001. Capital expenditure covers:

Measure 1 –Financial Intervention (capital, employment and feasibility study grants); and

Measure 2 –Entrepreneurial and Capability Development (advice, training mentoring, etc.).

Our officials are also taking other measures to increase the flexibility in managing the funds already allocated.

The matter will be kept under review by our officials and myself, in consultation with the 35 enterprise boards and appropriate action taken to ensure that the boards are in a position to discharge fully their work, which is vitally important for the economic well-being of the State, especially in the micro-enterprise area.

Repayable grants offer, in the longer term, a unique opportunity for boards to make additional funding for measure 1 grants available to them in the years ahead.