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Enterprise Support Services

Dáil Éireann Debate, Thursday - 19 May 2022

Thursday, 19 May 2022

Ceisteanna (14)

Brendan Smith

Ceist:

14. Deputy Brendan Smith asked the Tánaiste and Minister for Enterprise, Trade and Employment if specific additional financial supports will be introduced in 2022 to assist in the development of enterprise centres in view of their importance in providing workspace for start-up businesses and small enterprises; and if he will make a statement on the matter. [25361/22]

Amharc ar fhreagra

Freagraí ó Béal (6 píosaí cainte)

The Tánaiste and Minister for Enterprise, Trade and Employment will recall that we discussed recently in this House the need to accelerate the provision of enterprise centres and the development of work space. Enterprise centres have been important in the development of the rural economy.

As the Minister of State, Deputy English, knows, in my own counties of Cavan and Monaghan there have been good development enterprise centres but we need further development. We must develop a new policy, particularly with a dedicated fund to establish such enterprise centres.

I thank Deputy Smith for his question. Enterprise centres provide space and training for entrepreneurs, allowing them to work remotely, access training and network with other business leaders, helping them to scale internationally and attract small-scale foreign direct investment. There is a wide range of funding mechanisms available for these centres.

To date my Department has provided funding of €250 million, administered by Enterprise Ireland, to assist the establishment of some 270 enterprise centres throughout Ireland. In 2022, an additional €5 million will be provided to community enterprise centres through the regional enterprise innovation and scoping scheme. This scheme builds on existing regional initiatives and aims to grant-aid projects to improve the resilience and international competitiveness of enterprise in all regions. Substantial funding will also be made up to 2027 for regional enterprise projects with funding from the European Regional Development Fund and the shared island fund.

Since 2017, Enterprise Ireland has administered departmental funding to 91 projects totalling over €16 million under both the regional enterprise development fund and the community enterprise centre schemes. A further €9 million in grants was administered through Enterprise Ireland for 95 enterprise centres, many of which have been negatively affected by Covid-19, to sustain their businesses, pivot and further develop their services, as well as continuing to assist the development of start-up companies and the provision of remote working spaces. A further €12 million in funding has been sanctioned to assist the completion of projects under the regional enterprise development fund and Border enterprise development fund for schemes that have been delayed or interrupted due to increased construction or construction-related costs. This fund is being administered through Enterprise Ireland.

Nationwide, there is a broad range of other hub-type facilities, both publicly and privately funded, including community enterprise centres, incubators and accelerators. These are included by the national hub network working group in its mapping of a national network of remote working facilities. The Department of Rural and Community Development, which leads this mapping initiative, has also invested significantly in remote working infrastructure through town and village renewal, the rural development fund and the LEADER programme, for example.

I thank the Tánaiste for his reply. I agree that substantial funding has been provided for more than 20 years with the development enterprise centres. Taking the case of my county, we have had a good track record of the local authority developing work spaces, enterprise centres and sites for providing services. They can draw down financial assistance of grant aid towards development but the local contribution is a very hefty demand on a local authority with a low rates base. There is a need for a better funding model to ensure the local authorities can continue to put in place such infrastructure.

I am thankful there are some international companies that started in my county, literally in the backyards of houses and in small enterprises. There is a demand for working space. We all know for a new start-up business, with an operation involving one or two people, the provision of working space is a huge demand in terms of cost. The provision of working space can ensure we continue to generate and create employment in our smaller towns and more rural areas.

I accept the Deputy's point that for some local authorities, particularly those on a low rates base, it can be difficult to find the co-funding that might be available. It is perhaps something we can examine under the regional enterprise development funds. We will have over €100 million over the next couple of years from that for regional enterprise development.

Approximately €100 million has been invested in remote working hubs through the Department of Rural and Community Development, with just €9 million awarded last year through Connected Hubs. These are very good investments and I visit many of them getting around the country. I am keen to see them full and busy. They are not all full, by the way, but if they are busy we can invest in them some more.

I am thinking in particular of space for manufacturing businesses. I am thankful we have a good network hubs developed. We must think about and develop a policy on an all-Ireland basis. Last week I arranged for the Oireachtas Joint Committee on the Implementation of the Good Friday Agreement to meet representatives from Cavan and Monaghan county councils, with a presentation on the development of workspace enterprise centres and working with neighbouring local authorities north of the Border. I am thankful the development of the all-Ireland economy has been phenomenal since the signing of the Good Friday Agreement in 1998 so we can drive forward the all-Ireland economy development with more collaboration between statutory agencies North and South.

An area like Cavan and Monaghan, in the central Border area, would be vulnerable in the face of economic turbulence because we are the least developed part of the Border region. We need that extra incentive. The people will get up and do the work and local entrepreneurs will create jobs but they need particular assistance to ensure the necessary infrastructure and working space is in place.

When it comes to property solutions, what has worked really well is IDA Ireland's regional property programme. It is involved with building advance factories and office blocks and we can then take investors to see them, getting investment and jobs in much more quickly. There is a programme of them across the country. The Deputy is familiar with them in Cavan and Monaghan, with advance building solutions being developed. For indigenous Irish companies we can do more in that space as well. Perhaps there could be funding under regional enterprise plans and it is the best way to go.

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