Radical shake-up of EI funding

ENTERPRISE Ireland (EI) has announced a new €10 million fund to help build business competitiveness overseas.

The announcement carries a strong health warning however as EI boss Dan Flinter warns that 2003 looks like being another bad year for job losses in Irish owned firms.

Pressed on the issue Mr Flinter said: "My honest view is that I don't see it

being worse than last year" when the 3,000 firms under EI's remit lost 4,000 more jobs than they generated in a very tough year for the sector.

Announcing the most radical shake-up of EI funding in 10 years, EI said: "The needs of our clients are at the forefront of our thinking in revising our funding approach."

Gone under the new five- point funding plan are grants for job creation and a stronger focus on research and development where grants of up to €650,000 will be available to firms interested in generating new product lines. Previously, the amount for R&D for any given project was €440,000.

EI has identified five funding categories in response to the changing market place and as a means of making its services more understandable and user friendly.

In future, those intended for funding will be those who qualify under the following headings: firms exploring new opportunities; high potential start-up companies; firms planning expansion; those investing to build international competitiveness and those who commit to research and development.

Business organisation ISME welcomed the changed strategy, in particular the launch of the competitiveness fund of €10 million.

Chief executive ISME Mark Fielding said: "The association has vigorously lobbied for this initiative in order to refocus attention on and address the difficulties facing indigenous business particularly in manufacturing who have not previously received support."

Tánaiste and Minister for Enterprise Trade and Employment Mary Harney welcomed the revised refunding structure which applies also to clients of Shannon Development.

"The key element of this simplified approach by Enterprise Ireland is its clarity and transparency so that potential applicants for financial support from EI will clearly understand what exactly is available, how they might qualify, how to apply and the decision-making involved."

Ms Harney said she believed the organisation had adopted a "far-seeing, radical and innovative approach to rationalising its financial supports and by making the whole process transparent".

In its announcement, EI said it has skewed its new financing arrangements to give greater support to firms outside the eastern region in order to support the National Development Strategy of achieving a greater business spread into the border, midland and west region, the southeast, south was and midwest regions.