Speech by the Tánaiste at the Publication of Enterprise Ireland’s Annual Report & Accounts 2007

It gives me great pleasure to be invited here today to welcome the publication of Enterprise Ireland’s Annual Report and Accounts for 2007.

The mission statement of Enterprise Ireland is “to accelerate the development of world - class Irish companies to achieve strong positions in global markets resulting in increased national and regional prosperity.” Three years ago Enterprise Ireland devised a medium term strategy to implement this mission statement and on the evidence of this annual report they have more than achieved their aim. In that strategy they set themselves targets for export sales, research and development, high potential start-up companies and productivity improvement.

Frank’s presentation just now and this annual report show that Enterprise Ireland met or exceeded their targets on all fronts. Of particular note is the fact that Enterprise Ireland client companies gained nearly 50% more than the three-year target of €3 billion in new export sales. Overall, this is a remarkable achievement and worth celebrating today.

These achievements are all the more significant given the highly competitive structure of international markets and the increasing pressures brought about by turbulent financial markets, exchange rates and oil prices globally.

Enterprise Ireland and its innovative clients are to be congratulated on this achievement. It is very satisfying to see Irish owned enterprise taking a core position as a major contributor to our economy. This contribution deserves recognition and my Department will continue to work with Enterprise Ireland to ensure that this remains the case.

The structure of the Irish enterprise base continues to evolve. The last number of years has seen the decline of lower-value, established sectors (for example textiles) in line with international trends.

These are being replaced by modern, high value sectors such as life sciences and internationally-traded services sectors (ICT and software technologies, digital media and telecommunications etc) and these areas are the focus of the supports provided by my Department through Enterprise Ireland.

The shifting nature of the industrial base requires that companies adopt new business models and policies have been developed within my Department to address the requirements of companies facing a changing future. For example the International selling programme operated by Enterprise Ireland followed on from the recommendations made by the Enterprise Strategy Group and aims to increase the number of sales professionals within client companies.

Another example is the Enterprise Ireland Growth Fund, which aims at increasing the competitiveness of SMEs through business innovation and is designed to assist SME clients to gain greater competitiveness by improving their export potential.  This will be achieved by increasing both their gross output and gross productivity.

If the only constant in today’s business environment is change, Irish companies have shown themselves to be remarkably adaptable in managing it. Not only are existing companies adept in responding but Ireland is also seeing strong growth in the number of energetic and innovative entrepreneurs starting high value added, high export growth potential companies in areas such as software, medical devices, engineering, food and biotechnology.

Of course economic conditions change but if change poses a question, then innovation and R&D capability is the answer. This has been a crucial factor in the outstanding success of Irish enterprises. To compete successfully in overseas markets companies need to be innovative, dynamic and knowledge-driven. To this end EI plays a lead role in delivering the Government’s Strategy for Science, Technology and Innovation 2006–2013.

R&D and the application of knowledge will be a critical driver for the future success of Irish industry. It is therefore imperative that Ireland focuses on promoting the level, quality and commercial applicability of all R&D undertaken, ensuring that industry leads the response to rapid changes in customer needs.

The importance of supporting indigenous industry is particularly clear in relation to key concerns of economic sustainability – growing indigenous exports and indigenous company capabilities will prove crucial to maintaining the economic success that has characterised Ireland for the past decade.

It is therefore important that Enterprise Ireland that it continues to develop and implement strategies that will underpin and grow a strong, sustainable, export-oriented, indigenous business sector.

To this end, Enterprise Ireland launched a new medium term strategy just as it did three years ago. The core of the 2008-2010 strategy is that to grow export sales, Irish firms need to develop robust growth strategies, underpinned by strong leadership, a highly innovative culture and a drive for efficiency and productivity.

There is an early focus on the ability of companies, including high potential start-ups (HPSUs) to grow to scale. EI will challenge and support Irish companies to reach their growth potential. The 2008-2010 strategy is informed by government policy, including the Strategy for Science Technology and Innovation.

Enterprise Ireland has set new ambitious targets for itself for this new strategy period. We must recognise that it is a more challenging economic environment they will have to work in but I am sure they have the capability and drive to succeed.

Balanced regional development and thriving entrepreneurship in all parts of Ireland are fundamental to the country’s economic growth and therefore a key strategic objective for Enterprise Ireland.

Enterprise Ireland works with Country Enterprise Boards, Business Incubation Centres and third level institutions to actively promote the establishment of high potential start-ups throughout Ireland.

Enterprise Ireland works in partnership with the regional development bodies to facilitate entrepreneurship in local and rural communities and supports the development of the infrastructural and business space necessary for new enterprise development. In this regard the new Community Enterprise Centre scheme launched in 2007 is very welcome. This scheme is expected to generate 330 new businesses creating over 1,500 new jobs. Existing centres currently host 1,000 businesses employing 4,850 people.

All of this contributes to the generation of economic activity at every level throughout the country.

I wish Enterprise Ireland well in their endeavours, as I am sure you do and hope they will be as successful in implementing it, as they have been to date with the present strategy. I anticipate welcoming future annual reports with successful results that match or surpass the one I have read today.

I would like to thank the Chairman of Enterprise Ireland, Mr Patrick Molloy, and the CEO, Mr Frank Ryan for their commendable endeavours in producing such welcome results. I would like to thank the Secretary General of my Department, Mr Sean Gorman, for his excellent work in developing policies to bring these results to fruition in collaboration with Enterprise Ireland. Finally I would like to thank all the staff who have worked so very hard to produce such a noteworthy achievement.

ENDS/1916