I thank the Chairman and members for providing me with the opportunity to attend this meeting and make a contribution. I am honoured to be joined by colleagues from the other organisations represented at this meeting, the purpose of which is to further the discussion on this matter. The Chairman kindly introduced my colleagues, Mr. Feargal Ó Móráin and Mr. Neil Cooney.
It is perhaps apt to begin by referring to the challenges we face. However, it is best to do so in the context of some of the more positive aspects of that position, with particular regard to indigenous enterprise. There is no doubt that the economy faces some difficult truths in the short term. It is clear, however, that the global downturn has sparked a renewed resolve to build a prosperous and sustainable economy. The fruit of a similarly global economic and social challenge 60 years ago was the European Union, the framework relating to which has assisted in engendering trade and co-operation since.
When the European model was first proclaimed in 1950, in the light of their central importance to a fractured and rebuilding Europe, the core trade elements concerned were coal and steel. Europe is now presented with a number of opportunities. It is clear that innovative environment products and services, including those in the areas of renewable energy and efficiency, are this generation's coal. Likewise, advanced economies are now built on technologies such as those relating to information and communications, rather than steel. I assure the committee that Enterprise Ireland is extremely focused on supporting the indigenous enterprise base in order to target these emerging sectors of opportunity. We are well placed to do so.
In the light of the challenges we face, it is possible to overlook the advantages the economy possesses. As a small, open economy on a much larger stage, Ireland has tremendous assets in the context of its recently acquired economic and business infrastructure, its enterprises and people. The answer to the challenges we face is a return to export-led growth which drove the economy forward in the foundation stages of the boom. A fillip for Ireland is the fact that more indigenous enterprises than ever before are regularly exporting to international markets. In 2008 and even in the downturn Irish enterprises grew their exports. These companies are targeting markets — Brazil, India, China and, of course, the enlarged European market — which were thought barely accessible to Irish enterprise heretofore.
I refer the committee to the famous words of Jean Monnet, "We unite people, not states." These sentiments are evident today in that there is a European-wide market, consistent with the principle of unfettered access. Within this market, 500 million consumers make daily choices regarding the products and services they consume. This has been vital for the growth of the Irish export base. It has also proved to be a bridge to third countries beyond our European borders. The Commission's policy strategy for 2010, while setting out issues at the core of economic recovery, also has an eye on pragmatic issues relating to future development and on measures to encourage innovation and competitiveness. I will deal directly with some strategic elements of the Commission's policy which have an impact on enterprise and trade.
A key element of the Commission's strategy is putting into effect the European economic recovery plan. In that context, I draw attention to the enterprise stabilisation fund administered by Enterprise Ireland and approved by the Commission under the temporary measures. Irish companies in the manufacturing and internationally traded services sectors are experiencing tough market conditions, notwithstanding the fact that many of them have viable products and processes and sound business models. There is an obvious need to support those companies which are capable of growth. The introduction of the enterprise stabilisation fund is a key step in securing the future of Irish companies and sustaining employment. As the administrator of the fund, Enterprise Ireland, supported by guidance from the European Commission, will ensure this initiative is aimed at viable but vulnerable exporting companies. Finance will be available to support companies in the development and implementation of a business plan that will map the actions to enable them to survive and reposition.
The environment is given high priority in them European Commission's objectives. Its focus is on helping to drive forward associated industries, notably the clean-tech sector, and is a welcome strategy, given the Government's commitments to the smart economy and the approach of Enterprise Ireland, in which a clean-tech division has been established to support a growing base of companies trading internationally. There is also an onus on companies to become more efficient in their energy use, waste capture and so forth. Enterprise Ireland has a long established green offer, including the green-tech support pack which is designed to help take advantage of the opportunities presented by integrating environmental sustainability into business.
Enterprise Ireland also welcomes the European Commission's support for structural investment projects under the European energy programme for recovery. The programme outlines funding measures for gas and electricity interconnection projects, offshore wind energy projects and projects for carbon capture and storage. Better and more efficient energy networks will significantly increase the international competitiveness of European exporting companies.
It is imperative that Ireland continues to focus on promoting the level of quality and commercial applicability of all research and development undertaken, ensuring industry leads the response to rapid changes in customer needs. The seventh framework programme, FP7, is a large multi-annual research programme with a budget of over €50 billion. It provides funding for academic researchers, large enterprises and SMEs to engage in collaborative research partnerships. FP7 is key to ensuring Irish researchers and enterprises achieve the targets set out in the strategy for science, technology and innovation. Enterprise Ireland manages the programme's support network in Ireland and welcomes the provision of additional substantial funding for the programme.
From the commencement of the programme in December 2006 to December 2008, 1,794 applicants from Irish-based organisations took part in proposals and submissions requesting European funding. Up to 418 applicants were successful and received €107 million, giving an overall Irish success rate of 23.3%, above the EU member state average of 21.76%. The high level of activity of Irish researchers, both academic and industrial, and their success rates are positive indicators of the prospects for Irish participation in the programme and in line with targets set out at national level.
Our universities and institutes of technology are keenly focused on delivering a competitive knowledge-led economy. The research being carried out in delivering commercial benefits to Irish companies with Enterprise Ireland's support is through technology transfer, the spin-out of high potential start-ups, collaborative research networks and innovation vouchers.
Ireland will continue to be eligible under the regional competitiveness and employment objective for 2007 to 2013. It can expect to receive approximately €901 million in Structural Funds from the European Union, with €375 million coming from the European Regional Development Fund and €375 million from the European Social Fund. The remaining €151 million is for territorial co-operation programmes, including the PEACE II programme. Structural Funds are designed to raise the long-term growth potential of the economies which receive them. The European Commission's decision to increase the financial resources being allocated to cohesion for growth and employment by €980 million can be welcomed.
The Commissioner for Enterprise and Industry, Günter Verheugen, recently attended the joint committee to discuss the EU strategy for growth and jobs and his comments reflected the need for the European Union to bolster its competitiveness once more. In this regard, the European Commission's strategy is an important element in achieving this objective.
The European Commission's annual strategy outlines many other initiatives linked to increased economic integration and sustainability, including a Community patent and patent litigation system, a modernisation of trade mark and copyright systems and an integrated approach to the digital services economy. Enterprise Ireland, through the Department of Enterprise, Trade and Employment, is actively engaged with the European Commission and supports its policies, as they will contribute to the sustainability and growth of Irish exporting enterprises.
I thank the Chairman and committee members.