merrion street

The Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, announced today [Monday] that his Department’s budget will be broadly maintained in 2012, with current spending at €366million slightly lower than its 2011 allocation but capital spending at a record high of €514million. Over the next two years, the Government will commit approximately €1billion in enterprise capital supports.

The Government recently committed to a multi-annual Action Plan on Jobs, with quarterly targets and a strict implementation process. This will be key to delivering a rolling set of reforms across the economy and Government to support the Government’s number one priority of job-retention and creation.

At €880million, the Department’s overall budget will be marginally down on the 2011 allocation.

The increased capital budget will, in 2012, allow:

· A 4% increase in the Enterprise Ireland capital budget

· Maintenance of the IDA capital budget

· Maintenance of the County Enterprise Boards’ capital budget

· A 10% increase in the number of high potential start-up Irish companies supported

· €18million spend on Innovation Fund Ireland to further improve the Irish venture capital industry

· New technology centres in Cloud, E-learning and Financial Services to be commenced

· A 20% increase in the number of Innovation Partnerships

· Delivery of the Partial Loan Guarantee Scheme and Micro Finance Loan Fund

· Support for the SFI research community of over 3,000 researchers, including research teams working with over 500 industry partners

· Maintenance of the Programme for Research in Third Level Institutions

· Doubling the number of Technology Innovation Development Awards to 200

The Minister said:

"This Government is determined that, alongside the very painful budgetary decisions we have to make, we must implement our plan for economic recovery and job creation. As the Taoiseach said last night, jobs are the top priority for this government and are at the centre of our four-year strategy.

"That is why, at a time of declining resources, the Enterprise budget is being broadly protected. Of course my Department, like all others, will find savings across its current expenditure, including in administration and pay budgets.

"However crucially, as previously announced, capital spending on job-creating programmes will be increased in 2012. This will mean that my Department and its agencies will be able to continue current levels of spending on job-creation, as well as increasing the scope of some crucial programmes and implementing some new measures.

"In relation to future years, changes to the way capital budgets will be managed in my Department in future will mean that, with proper management, there will be substantially more funding to spend than the Exchequer allocation. I am satisfied that, as a result of these changes, my Department’s capital budget in 2013 can remain at or within 5% of its 2012 levels, with a total of €1billion to spend on Enterprise capital programmes over 2012-13.

"This Government, in the context of declining resources, has to make choices. We have made clear a choice to prioritise jobs and enterprise, and today’s announcement is the tangible result of that choice. I am confident that the measures announced by the Minister for Finance tomorrow, in a constrained fiscal environment, will show a continuing commitment protecting and creating jobs".