Kenny & Bruton introduce job support plan today
It will take a while to absorb this integrated list of actions on creating jobs announced today by the Coalition government.
As a supplier to the county and enterprise boards I am interested in what is going to replace them, and when.
35 CEBs with 35 CEOs and 35 deputy CEOs never seemed to make sense to me. But it is internationally acknowledged that advisory services to micro businesses are best delivered locally. Enterprise Ireland has raised its game in supporting exporting companies, but what about the 90% plus of businesses who don’t export? And delivering business support through the network of local authorities? An unreformed section of the Civil Service – with a culture far far away from an ordinary decent S , M or E! No futher comment until the details are revealed.
The Government has launched an ambitious jobs plan that aims to create 100,000 new positions by 2016 and a further 100,000 by 2020.
The full programme includes a total of 270 measures (download from the department site at http://www.djei.ie/publications/2012APJ.pdf ) to be delivered this year in 15 Government Departments and 36 State agencies.
The process will be policed by a monitoring committee of three Departments with think-tank Forfás.
In an effort to address the difficulties small companies face accessing credit, the State is to guarantee 75% of loans to small and medium businesses. That measure is expected to be operational by the second quarter of this year.
The plan will include a Development Capital Scheme for companies with prospects of jobs and export growth. It will be backed by €50m State investment, which is expected to leverage up to €100m.
A new Micro Finance Fund will supply investment in small companies seeking less than €25,000. The fund will be €10m every year for ten years. The European Investment Bank will supply some of the equity.
The plan proposes a finders’ fee of “up to €4,000” for people of Irish extraction abroad who succeed in bringing major job projects to Ireland.
The Taoiseach said that people who wanted to introduce a business would contact an appointed operator. The new company would have to be one that is not already working with the IDA. [tokenistic if not simplistic activity, which will cost more to manage then it will produce – BL]
There will also be a facility for the diaspora to contribute to investment in new enterprises, which is modelled on a similar scheme in Israel.
The plan includes steps to encourage more mobile international entrepreneurs to start businesses in Ireland through a €10m State fund for investment in start-ups, improvement in immigration arrangements, a targeted marketing campaign and greater use of IDA network.
A Strategic Investment Fund will match private sector investment with money from the National Pension Reserve Fund. The NPRF will commit €250m and a further €1bn will be sought from institutional investors in Ireland and overseas for infrastructural investment.
A corporation tax exemption will be extended for start up companies until 2014.
City and country enterprise boards will be dissolved and a new unit will be created in Enterprise Ireland that will work with local authorities in aiding firms.
The Government will establish a health innovation hub to encourage transforming new technologies in health and life sciences into commercial enterprises.
Checkout www.rte.ie for further updates and www.djei.ie
Billy Linehan is MD of Celtar business consultants, and has worked with small business owners and directors for 25 years.
(Experience includes; Certified Management Consultant, mentor for Dublin City Enterprise Board, Enterprise Ireland mentor, Intertrade Ireland industry expert. Previously manager of consultancy services for a central London Business Link, manager of enterprise agency in east London & programme manager at London based training and enterprise council)