Vol. 576 No. 5
134 Ms Burton asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason the allocation for Enterprise Ireland grants to industry, has been reduced by 15% in her Department's Estimate for 2004; the way in which this reduction is to be achieved; and if she will make a statement on the matter. [29902/03]
A total of €53,788,000 in Exchequer funding is being allocated to Enterprise Ireland's D2 subhead in respect of grants to industry for 2004 compared with €62,943,000 in 2003. This represents a year on year decrease of Exchequer funding amounting to €9,155,000.
First, Enterprise Ireland's supports are demand led by clients. The expected 2003 outturn was taken into consideration to calculate the likely 2004 demand by clients. It is estimated that Enterprise Ireland will draw down approximately €52.6 million in 2003, primarily reflecting lower than expected claims from clients and some delays in capital infrastructure spending. The Exchequer contribution to the D2 subhead budget in 2004 of €53,788,000 represents a slight increase on the expected 2003 outturn of the Exchequer contribution.
Second, in deciding the 2004 Exchequer allocation, careful consideration was given to national priorities and the fact that resources are limited. Although the Exchequer contribution to Enterprise Ireland in respect of the D2 subhead represents a budgetary reduction, Exchequer funding towards Enterprise Ireland's science and technology budget was significantly increased from €74,285,000 in 2003 to €82,880,000 in 2004, a rise of €8,595,000 year on year. The Exchequer contribution, which forms part of the F subhead, reflects the ongoing change in the direction of industrial policy to support innovation, research and development and increase the flow of applied research from third level institutions. The increase in the research and development programmes being delivered by Enterprise Ireland also reflect the increased Government commitment to increasing competitiveness and innovation within Irish industry.
