Dáil Éireann Debate, Tuesday - 5 October 2004
170 Mr. Hogan asked the Minister for Community, Rural and Gaeltacht Affairs the amount allocated to date to the investment fund of the Western Development Commission; the number of projects funded; the number of jobs created by firms funded by the investment fund; and if he will make a statement on the matter. [22687/04]
Amharc ar fhreagraThe western investment fund, WIF, was established under the Western Development Commission Act 1998. The Western Development Commission, WDC, is the statutory body charged with promoting, fostering and encouraging economic and social development in the western region comprising counties Donegal, Sligo, Leitrim, Mayo, Roscommon, Galway and Clare. As part of this remit the WDC operates the western investment fund of €32 million.
The WIF was established by the Government to fill the equity gap that existed in the western region whereby businesses, communities and other projects had little or no access to private sector risk capital funding mechanisms. A key objective of the WIF is therefore to address this market failure. Another goal is to create a venture capital culture in the region and to demonstrate the potential investment opportunity that exists. This equity gap continues to exist in the western region, with only 6% of the funds invested by the members of the Irish Venture Capital Association, IVCA, going to the western region in 2001. The overall level of venture capital funding fell in 2002 by 40% on the 2000 spend.
The WIF provides funding by way of ordinary share capital, preference share capital and loan stock or combinations thereof. The WIF does not provide grant aid. The WIF will contribute to the strategic development of the area through investments in growth-oriented small and medium-sized enterprises, SMEs, at the start-up-development stage, community owned enterprises and flagship projects.
To date, 60 projects have been approved for assistance totalling €12.7 million. Of this €9.8 million has been disbursed from the fund to aid 50 of these projects. This has created 791 jobs to date, 541 of which are either strategic or in small to medium-sized enterprises and 250 are in community projects.
