HARNEY LAUNCHES ENTERPRISE IRELAND "SOLUTIONS NOT PROGRAMMES" - TÁNAISTE

Tánaiste and Minister for Enterprise, Trade and Employment Mary Harney today (Thursday 23rd July, 1998) announced that she had established "Enterprise Ireland" and unveiled her policy guidelines for the new development agency. This represented the implementation of a major commitment in the Programme for Government "An Action Programme for the Millennium".

"Enterprise Ireland is much more than just a new agency" said the Tánaiste. "It represents a fresh approach in helping Irish industry develop the full range of competencies to meet the challenges of rapidly changing global markets. I want the Agency to be very clear about its strategic mandate. That mandate is set out in detail in the Policy Statement which I issued to the Board of Enterprise Ireland when it held its inaugural meeting this morning".

The Tánaiste said that her overall strategic approach could be summed up in two short phrases: "solutions, not programmes" and "sustainable competitive advantage". The Tánaiste said that Enterprise Ireland would mark an end to the multiplicity of agency schemes and the beginning of "a more flexible approach concentrating on providing solutions" to the developmental problems faced by growth oriented firms.

The Tánaiste also stressed sustainable competitive advantage. "I want to see Enterprise Ireland concentrating on those companies that have the innovative potential and the drive to deliver products and services that customers are willing to choose in preference to those of competitors".

"Today's Ireland is transformed", she remarked, "having developed a confidence and vision with almost limitless potential. Our best companies are now taking on global competition and winning. We need to encourage these dynamic entrepreneurial firms, to help them overcome the challenges of growth and to reach the stage where they neither need nor want further State support".

"The traditional capital and employment grants are blunt instruments", said the Tánaiste "The real sources of competitive advantage are in technology and innovation, in human resources and in the ability to explore and penetrate new markets. For the first time in the history of our industrial development, an agency responsible for indigenous industry, Enterprise Ireland, will have the competence in all of these areas and will be able to bring those skills to bear in an integrated, client driven way", she said.

The Tánaiste confirmed that agreement had been reached on a severance package for the outgoing Chief Executive of An Bord Trachtála, Mr. Oliver Tattan. The Tánaiste thanked Mr. Tattan for his work at the Trade Board and said that the strong client focus which he had brought to that organisation would provide a valuable input to the new approach to be pursued by Enterprise Ireland. "I wish Mr. Tattan well in his future endeavours," the Tánaiste added.

The Tánaiste announced that the Board of the agency, headed up by former Bank of Ireland Chief Executive, Pat Molloy, had appointed Dan Flinter as CEO at its inaugural meeting this morning.

She said that: "The successful implementation by the new CEO of the strategy set out in my policy guidelines will require a very different approach to that pursued by its component parts. Enterprise Ireland will therefore be critically dependent on its staff."

The Tánaiste said that she was aware of the concerns expressed by the staff in regard to the multiplicity of grades in Enterprise Ireland: "I know that this concern is shared by the Chief Executive who is fully committed to developing a simplified grading structure which reflects the distinctive business needs of the agency". The Tánaiste encouraged the staff and their representatives to engage in dialogue with the management of Enterprise Ireland on the issue as she wanted: "to ensure that Enterprise Ireland has the full scope to implement a human resources policy which fosters a strong sense of identification with its new mission and strategy".

"The policies which I have set out are the seedbed from which Enterprise Ireland can grow into a dynamic, innovative and flexible organisation providing real solutions to business needs", said the Tánaiste. She wished the Board and Chief Executive well in the challenging and exciting task ahead.