Vol. 571 No. 4
189 Mr. McGuinness asked the Tánaiste and Minister for Enterprise, Trade and Employment the total shortfall in funding grants sanctioned by county enterprise boards; if a separate allocation will be made to each board to cover grants already notified to small business and applications sanctioned and awaiting payment; the advice given to boards by her Department in relation to this issue; and if she will make a statement on the matter. [22310/03]
Early this year my Department advised each city and county enterprise board, CEB, of its budget allocations for 2003, including funds to meet grant commitments. It is the responsibility of each board to manage within the funds provided. The Department also retained some limited funds to enable it address contingencies arising during the year.
During the year my Department became aware that some boards were estimating that they would require additional funds if the grant commitments projected to fall due for payment before the end of the year were to materialise in full. It should be noted that it is not possible to estimate precisely the full extent and timing of all commitments as these are often contingent on the speed with which projects proceed. In addition, projects approved sometimes do not proceed leading to decommittals of grant approvals.
In the light of the emerging situation, my Department has been reviewing the overall position and, based on the most up-to-date information available, it appears that in addition to the funds already allocated to them earlier in the year, the CEBs would require up to €1.7 million extra to meet the estimated level of grant commitments, including grants to enterprise centres, likely to fall due for payment this year. The Department is currently in the process of determining the appropriate allocation of the additional funds available and is confident that each board will be in a position to meet all its commitments.
In July this year my Department also instructed each CEB not to approve any new projects unless the projected drawdown for the year could be met from within the existing cash allocation to the board and the total commitments in respect of 2004 and later years did not exceed 50% of the cash allocation provided for the board for 2003. This instruction, which remains in place, should ensure that the pressures on the CEBs' funding are contained.
