Address by Minister Michael Ahern to the CEBs Dinner, Tullamore

Address by Michael Ahern TD, Minister For Trade and Commerce, at the City and County Enterprise Boards Dinner For Board Chairpersons and CEOs Tullamore Court Hotel, 17 November 2005

Board Chairpersons, Chief Executives, Ladies and Gentlemen

I am delighted to be here this evening. I am particularly pleased to have this opportunity to address the Chairs of each of the Boards or their representatives. While I know the Department meets with the CEOs on a frequent basis, it is not often that we get the chance to meet with Board members and to acknowledge the important work being done by them around the country. I am always amazed at the extent of the voluntary effort that underpins the County Enterprise Board (CEB) network.

We have nearly 500 board members and another 200 evaluation committee members giving generously of their time to ensure that the CEB network performs as well as it does. This is one of the key strengths and distinguishing feature of the CEB system. It ensures that the network is firmly rooted in the local economies throughout the country.

As you all know the CEBs were established a little over a decade ago against the background of an economy that was not in good shape. At that time, we had low economic growth and unemployment stood at nearly 16% - a level that is scarcely believable in today’s climate. In the intervening period, the Irish economy has been transformed utterly. Today, Ireland ranks amongst the top performing, fastest growing and richest countries on the globe. I believe that the CEBs have played their part in making this transformation happen.

However, we cannot, for one moment, take our current national prosperity for granted. Complacency will most assuredly put the march of our economic progress into reverse gear. While we proceed to implement the ideas and recommendations emanating from the Enterprise Strategy Group, we must continue the search to see what else needs to be done. International competitive forces are a constant threat: innovation is key to our competitive advantage now and in the future, especially for small enterprises. At State level we need to constantly evaluate the adequacy of our public policy responses and the relevance and effectiveness of our enterprise agency support mechanisms and structures.

It was in this context that the Enterprise Strategy Group was established by my department. The ESG has prescribed a course of action for the entire enterprise sector that is designed to meet the needs of 21^st century Ireland.

It is important that all strands of Government activity work towards the common goal of ensuring the sustainability and continued growth in the economy.

In this regard, we must ensure that the services and programmes now being offered by the CEBs remain properly and appropriately focussed. We must ensure that the supports are furthering the broader economic agenda of building a strong, durable economy. This was also the context for the Fitzpatricks review. Among the key conclusions of this review was a recommendation for a renewed focus on the Board’s core enterprise and enterprise culture mission with a lesser focus on wider local economic development activities. The environment in which CEBs now operate is radically different than in 1993 when they were established. At that time, the key issue was job creation.

In present circumstances, it is more important that Boards increasingly focus on the quality of projects, on the potential of projects to grow and to ensure that they will contribute to increased economic activity at a local, regional and even national level. This year’s National Enterprise Awards clearly demonstrates that most Boards have already responded to the changed environment. The range and quality of the finalists was a shining example of what the network is, and should be, about.

As we go forward, it seems clear that our future prosperity will increasingly be dependent on our ability to foster and develop a strong indigenous enterprise sector. The CEBs have been playing an important role in fostering a culture of entrepreneurship throughout the country – a culture that is essential if we are to succeed. We need the CEBs to help in the job of accelerating the pace, quality and output of applied entrepreneurial endeavour.

We need the CEBs to intensify their search for business projects which demonstrate potential to achieve good growth, which have the capability to innovate and embrace new technologies, which are export driven, which are sustainable and which are most likely to maximise productive return on the support interventions committed to them by the CEBs.

However, just as we need the CEBs to play their part in the delivery of this important national objective, there is an onus on the Government to provide the CEB network with the level of support and back-up that will enable the network operate to the highest standards of effectiveness and efficiency. This is the motivation for the decision to establish the Central Support Unit (CSU). It is designed to help individual CEBs identify and adopt best practice, to provide clear guidelines on the eligibility criteria, to provide a system of quality assurance across the network, to create an improved structure which would allow the CEBs to deliver greater added value and enhanced effectiveness on the back of a proven and well-resourced support system.

I know that you have discussed the implementation of this proposal in some detail earlier today. I also know that there are some concerns about this proposal. However, I do not believe that this proposal represents any threat to the status or independence of the CEBs. On the contrary, I believe that it represents an exciting opportunity to develop and strengthen the network, to strategically position the Boards for their next phase of development.

Another initiative that may well impinge on the CEB network is the Small Business Forum. The Forum was established by my colleague, Minister Martin in the summer and is now deep in its deliberations on the needs of the small business sector. The Forum has been asked to consider the environment for small business generally and to see if there are ways in which this environment can be improved in a manner that will support economic growth.

As you know, the CEBs are represented on the Forum through Michael Johnson, Chairman of the CEO Association. I am sure that Michael will be putting forward the CEB perspective in a forceful and insightful manner. I also know that the CEO Association has made a submission to the Forum, as have a number of individuals within the network. A number of the other members of the Forum also have strong connections to the CEBs, so I think we can be confident that the CEB position will be strongly represented within the Forum. While we will not see the fruits of the Forum’s deliberations until the Spring, it seems likely that it will recommend some changes and developments to the way in which the State supports the small business sector. Clearly this could bring further changes for the CEB network. However, just as I believe that the establishment of the CSU will be a positive development for the network, so too do I believe that we can all look forward to the report of the Forum with enthusiasm.

Finally, I would like to conclude by again expressing my deepest appreciation for the tireless commitment of personal energy given by Chairpersons, Board and Evaluation Committee members of the CEBs. It is my view that it is this voluntary effort that sets the CEBs apart. I am very conscious of, and most grateful for, the huge voluntary input and personal sacrifice of time that underlie this commitment. Of course, all that energy would be squandered and wasted were it not for the professional support provided to the Boards by their Chief Executive Officers and staff.

Well done to all and enjoy the rest of your evening.

Ends

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