Dáil Éireann Debate, Thursday - 22 November 2012
5. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation the progress made in the establishment of local enterprise offices including the role of individual Irish small and medium enterprises and SME representative groups as part of the committee overseeing the development of the local enterprise offices. [52082/12]
Amharc ar fhreagraThe Deputy will be aware that as part of the action plan for jobs, the Government announced a plan for a major reform of the existing support structure for micro and small enterprises in February this year. The aim is to create a centre of excellence within Enterprise Ireland for small business support; to establish a first-stop shop at local level for the support of small and micro business; to integrate local authority business support services with local enterprise supports; and to create a network of local enterprise offices delivered from within the local authority working under a service level agreement with Enterprise Ireland.
There has been a series of consultations during the development of these proposals. They were discussed at the nationwide consultative meetings on the action plan for jobs. On foot of the Government decision in April to dissolve the county enterprise boards and transfer the functions, assets and liabilities to Enterprise Ireland, an implementation working group was formed, chaired by the Department. It has involved representatives of the key services that need to be integrated into this new model. It is developing the plans for the detailed implementation of the decision including the role of the Enterprise Ireland division as a centre of excellence; the range of services to be delivered; the service level agreement; and staffing and other issues. This implementation group is a management group to work out the details of the proposed reforms and does not include representative associations.
Our plans for the support of small and micro businesses have also been with the advisory group for small business, subsequent to which some of the members of the advisory group met the implementation group. The advisory group is also being consulted on the action plan for jobs 2013.
The Minister and I yesterday published a consultation paper which sets out the roadmap for the implementation of this reform process. I am keen to receive the opinions from the micro and small business sector across Ireland, particularly on how the changes to be brought about can best provide support to the right people, at the right time and at the right level.
I was looking at the action plan for jobs recently and action 1.38 outlined that there would be a new system of strategic dialogue that will align funding of higher education institutions to performance in the achievement of national objectives for a system development and priorities in relation to skills development commencing in 2012 and it will be fully rolled out in the coming years. People want reform on upward only rents but instead they get nebulous delivery of an action of that sort.
I welcome the fact the Minister of State and Minister have finally listened to Sinn Féin and the representatives of small businesses around the State and brought them into the process when replacing the LEOs. It is a year too late, because the process started a year ago. We know the whole system of county enterprise boards is suffering from inertia, as stated by the Irish Exporters Association, and it is necessary to resolve that problem. The new enterprise system should be built around entrepreneurs, who should have been part of the process from the beginning, not at its end. It is unbelievable they are only now being brought in.
Since those enterprise organisations have set their face against the centralising of the county enterprise boards in the local authorities, will the Minister of State confirm today that he will listen to the representatives of those enterprise organisations and that there is scope for a reversal of some of the more negative aspects of his legislation? Will these entrepreneurial representatives have an influence over this process or is the Minister of State going full steam ahead?
It is not possible to consult in a vacuum. We are consulting with people to best define the needs of small businesses. If the Deputy has read the consultation paper in depth, he has been very quick in stating that it is a climb down by the Government to engage in consultation. It is very difficult to go out and discuss an issue without a major document on which we have worked tirelessly in the past 12 months. We have a very clear plan for Enterprise Ireland and how jobs will be established in local enterprise offices. The Deputy has been very critical from the very start on every point. The fact that we are bringing businesspeople-----
It is not just me - it is the enterprise organisations.
It must be just the Deputy, because they are not saying it to me.
They are saying it to me.
Representatives of ISME and the SFA told the committee they were completely opposed to this.
I have met representatives of ISME several times and the Deputy should look at the statement it issued yesterday. The county enterprise boards have been very effective. Our job at the moment is the consultation process. We are bringing businesspeople into the heart of decision making locally involving representatives of business and local government. The Deputy will know from his county how effective local government can be. It is important that we are integrating the best knowledge within every county with a centre of excellence with a very strong service level agreement with Enterprise Ireland. We are taking submissions at the moment and are refining clear objectives as outlined in the consultation paper the Deputy received yesterday. The intention is to roll out that plan next year. We need to implement it in every local authority area and it will be delivered effectively.
Small businesses see the local authorities as cost centres, regarding planning applications, rates, enforcement etc. They do not regard local authorities as having a culture of enterprise. Representatives of the SFA and ISME have told the committee that it would be disastrous if this proceeds. The Minister of State has left it very late to consult these organisations, but given that he is consulting them, will he give scope for a new direction with regard to how enterprise support will develop?
Some 250 SMEs close every week yet Enterprise Ireland has had a €13 million underspend this year. How can that be the case given the difficulties being experienced by small businesses?
There is no inertia with enterprise boards. An additional €3.5 million was allocated to enterprise boards last week. They are working actively at the moment. We are not changing Government policy - we are listening in order to refine the policy. We are setting up centres of excellence and a one-stop shop for business in every county. Our job is to integrate the best of Enterprise Ireland, the county enterprise boards and local government. I am very confident the plan of action will be successful.
