Struggling exporters get lifeline of €100m
Enterprise Ireland has been charged with the management of a new €100m fund aimed at helping exporters through the downturn.
Called the Enterprise Stabilisation Fund, it will provide targeted support to otherwise robust indigenous companies who are suffering as a result of the global economic crisis. The fund will make €50m available to firms this year and another €50m is earmarked for 2010.
Particular attention will be paid to small and medium-sized enterprises engaged in exporting, the Department of Finance said in a statement last night.
To qualify for assistance, companies must not have been in difficulty on July 1 last year, but may now be facing difficulties as a result of the global and financial economic crisis, the statement added.
The Department of Enterprise, Trade and Employment said it ringfenced a total of €500m in funding through yesterday's emergency Budget.
The investment will be made through IDA Ireland, Enterprise Ireland, the county and city enterprise boards and Science Foundation Ireland. The lion's share of the funding was announced in October's Budget.
For example, the €295m that will be administered by Enterprise Ireland and Science Foundation Ireland for the development of R&D projects.
Other investments include €73.5m for IDA Ireland to develop foreign direct investment projects.
A further €20.2m will be made available to county and city enterprise boards.
In a bid to boost the "smart economy", additional tax changes have also been made to support Ireland as a centre for the development of intellectual property, while the Government has also set a target to spend 2.5pc of GNP on R&D investments and incentives by 2013.
"It is not just a matter of saving jobs where we can but of re-orienting the economy to produce the export-led growth we must achieve," Finance Minister Brian Cowen said yesterday.
Difficulties
But some commentators were left cold following the enterprise announcement and said that the cash flow issue for small businesses was not addressed.
Eamonn Siggins, chief executive of the Institute of Certified Public Accountants in Ireland said: "Micro businesses are in meltdown due to severe cash flow problems and the inability to source working capital.
"Regrettably there is nothing in this Budget to support entrepreneurs and existing businesses in cash flow difficulties. Some form of micro loan guarantee scheme was expected to allow the banks prudently provide working capital or start up capital. Without it, we will continue to see businesses close and our dole queues grow longer."
- Pat Boyle
