Submission on Behalf of the Network of County and City Enterprise Boards Rural Development Programme 2014-2020 Submitted on 18/2/2014 ...
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Submission on Behalf of the Network of County and
City Enterprise Boards
Rural Development Programme 2014-2020
Submitted on 18/2/2014.
11. Introduction and Summary.
This summary document sets out the position of the County and
City Enterprise Board Network (CEB Network) with respect to the
proposed Rural Development Programme 2014-2020.
The County and City Network have over the past rural
development programmes worked in close so-operation with local
LEADER companies at local level and with the respective
Government Departments, with the overall objective of ensuring
that within the delivery framework agreed at national level, local
communities in rural areas received the funding available.
However over the most recent programme, with the lack of an
agreed national framework document and thus a local framework,
there emerged within many counties and local “LEADER areas”
many occasions when there were issues around competition to
fund local enterprises, duplication of CEB activities by local
LEADER companies and the provision of grants at rates
significantly in excess of the national levels applied by CEBs and
with no requirement to have regard to job creation and which has
in many situations resulted in a significant waste of public funding.
The County and City Enterprise Boards have over the last twenty
years been the statutory agencies at local level with responsibility
for enterprise promotion and for assisting new and existing micro
businesses in both rural and urban areas.
The current restructuring of the County and City Enterprise Boards
into Local Enterprise Offices operating within the local authorities
and under a Service Level Agreement with Enterprise Ireland,
provides an ideal opportunity for Ireland to develop and
2implement a new and efficient support structure for all local small
and micro enterprises in rural areas and to ensure balanced local
economic development throughout the country.
The CEB Network submits that the delivery of all Enterprise
Development and Enterprise support measures under the Rural
Development Programme 2014-2020 should be through the new
Local Enterprise Offices (LEOs) operating within the local
authorities at local level.
This can be achieved by enabling the Local Authorities, via the
LEOs, to be considered as suitable delivery mechanisms of the
enterprise measures under the next round of LEADER. To enable
the LEOs deliver the programme additional staff resources will be
required and this can be achieved by either open competition
with positions funded under the LEADER programme or by way of
a transfer of staff from existing local development companies to
the Local Authority and assigned to the LEO. The latter approach
would see the retention of the experience and skills of the local
LEADER executives and administrative staff and ensure a smooth
transfer of responsibilities and delivery.
The areas of Enterprise Development that should be included
under the next programme include artisan food, marine tourism
and technologies, rural tourism, renewable energies (new
products and unique services), rural tourism, sustainable social
enterprises and arts and heritage projects. These should be
supported by a suite of business-focussed supports which will be
delivered to ensure maximum sustainability of viable projects and
job creation.
32. Rural Development Programme 2007-2013.
The Rural Development Programme (2007-2013) was structured
around three core axes which aimed at (a) improving the
competitiveness of agriculture, (b) improving the environment
and (c) improving the quality of rural life. Within these three axes
there were further individual measures and the proposed delivery
mechanism as defined in a fourth axis Axes 4.
Of particular relevance and concern to the County and City
Enterprise Board Network were the objectives of Axis 3 which
were focussed on improving the quality of rural life and
encouraging the diversification of local economic activity in rural
areas including supports for non-agricultural activities. Included in
the measures under Axis 3 were “supports for business creation
and development”, the “encouragement of tourism activities” and
“training and Information measures for economic actors in the
fields covered by Axis 3”.
As previously indicated, under the most recent programme and in
spite of good local working relationships at local level in many
areas, there was duplication of actions by Local Development
Companies in relation to developing similar suites of business
supports to that of the local Enterprise Board, numerous cases of
“grant shopping” by promoters, competition for clients for grant
aid with both local Enterprise Boards and in some cases Enterprise
Ireland, contrary to the LEADER guidelines the provision of grant
rates in excess of those on offer from the statutory agencies with
regard to business support and in many cases a lack of due
diligence, a lack of adequate evaluation as to the commercial
viability and sustainability of projects for grant aid or their ability
to create employment. In many instances promoters were enticed
4by active offerings of higher grant rates from a local LEADER
company thus resulting in grant shopping and in the award of
significantly higher levels of grant aid than were required to assist
a project.
3. Role of County and City Enterprise Boards.
County and City Enterprise Boards (CEBs) are the statutory
agencies with responsibility for the promotion of enterprise and
entrepreneurship at local level and for supporting new and
existing micro businesses. They were established by the Irish
Government, funded by the Irish Government and the European
Union and report to Government. . They are supported by the
Central Co-Ordination Unit in Enterprise Ireland and are part of
the established national framework to support enterprise and
entrepreneurship in Ireland. 50% of the delivery supports of the
CEBs have been successfully drawn down from the European
Union through the CCCU in Enterprise Ireland with limited issues
around ineligibility of expenditure occurring over the years.
The CEBs have since their establishment operated as the “First
Point of Contact” at local level for anyone thinking about starting
a business or anyone in business looking for help. In their
operation, the CEBs have been focussed on job creation through
supporting commercially viable businesses, both new and existing.
Outside of the major urban centres the vast majority of these
businesses have been in rural areas.
The CEBs have assisted in job creation through the micro business
sector at a cost per job of an average of €5,500. They have also
assisted over 1,000 micro businesses per annum through direct
grant aid and assisted over 25,000 owner managers per annum to
5develop their management and business skills through training,
mentoring and management development programmes.
4. Proposed Local Enterprise Offices (LEOs).
In 2012 the Irish Government decided to re-structure the County and
City Enterprise Boards as part of the Local Authority structures while
broadening their remit, in particular in relation to having a more
comprehensive advisory and referral role and also into areas of
broader economic development, while maintaining their core focus
on local business development. This is the most fundamental change
to the policy and support system for micro and small businesses in
twenty years and represents a unique opportunity to maximise and
co-ordinate the services available to the sector and to eliminate
duplication and the waste of limited resources.
The role and functions for the Local Enterprise Offices, as outlined in
the Service Level Agreement under which they will function within
the Local Authority system are:
Business Information and Advisory Services: acting as the ‘first
point of contact’ for businesses, to include provision of a local
business referral service relating to licensing, regulation,
planning, etc.;
Enterprise Support and Development Services : the provision
of a suite of supports to new and existing small and micro
businesses including financial assistance, access to micro
finance loans, Start Your Own Business programmes, training
and management development programmes training ,
mentoring, procurement training and advice, progression
pathways for high-growth companies to EI supports, etc.;
Entrepreneurship Support Services: actions to support greater
levels of entrepreneurship at local level including business
6networks, female entrepreneurship programmes, student
entrepreneurship, enterprise promotional activities, etc.;
Local Economic Development Services : engagement in a
range of local actions and programmes to encourage and
facilitate greater levels of local economic development
including actions in the following areas:
o Strategic e.g. development and implementation of local
economic plans, input into County Development Plan,
partnerships with relevant local/regional/national
development agencies, North/South development
o Promotional e.g. identifying and developing projects and
programmes to develop enterprise, employment and the
local economy; leveraging and maximising resources to
implement these plans and programmes
o Operational e.g. development of appropriate
business/economic infrastructure/environment (including
workspace/business related facilities) at county/city level;
management of local authority enterprise
infrastructure/assets (e.g. enterprise parks); development
of programmes to address local needs including via
funding procured from non-core resources (e.g. cross-
border, EU initiatives, etc.); acting as an enhanced
resource for Government to undertake one-off initiatives.
The establishment of the Local Enterprise Office system and in
particular through using the well-established and tried and tested
system and expertise that has developed within the CEBs, the LEOs
7will provide a more integrated national system to support small and
micro enterprises at local level, both urban and rural.
5. The Opportunity under the Rural Development Programme.
The development and implementation of a new national Rural
Development Programme (RDP) and the establishment of the LEOs
provides a unique opportunity during this time of change and
transition for a change in the delivery system of supports to
businesses and business promoters under the RDP. The restructuring
of the CEBs into LEOs and the additional support framework
proposed provides the ideal mechanism through which these
supports can be provided efficiently and effectively.
As part of the current restructuring of CEBs the Central Co-
Ordination Unit in Enterprise Ireland will become “a centre of
excellence” for small business development drawing from national
and international best practice and sharing and embedding these
practices and programmes within and through the LEOs. Additionally
the Minster for Enterprise, Jobs and Innovation and his Department
will be articulating a national policy for enterprise and business
development, and set within a European context, which will establish
the framework and national policies within which the LEOs will
operate along with and supported by Enterprise Ireland.
These changes and in particular the re-structuring of the CEBs and
the broadening of their roles and functions at local level provides an
ideal opportunity for Ireland to develop and implement a well-
defined policy and an effective and efficient support structure for all
local small and micro enterprises. The LEO network as part of the
Local authority structures will provide this structure working
alongside Enterprise Ireland at national level and the local authorities
8at local level. In this context it is proposed that the delivery of all
Enterprise Development and Enterprise support measures under
the Rural Development Programme 2014-2020 should be through
the Local Enterprise Offices (LEOs). The non-enterprise elements
should to be delivered by the local authority or other suitable
delivery channels.
This can be achieved by enabling the Local Authorities, via the
LEOs, to be considered as suitable delivery mechanisms of the
enterprise measures under the next round of LEADER. To enable
the LEOs deliver the programme additional staff resources will be
required and this can be achieved by either open competition with
positions funded under the LEADER programme or by way of a
transfer of staff from existing local development companies to the
Local Authority and assigned to the LEO. The latter approach would
see the retention of the experience and skills of the local LEADER
executives and administrative staff and ensure a smooth transfer of
responsibilities and delivery.
The Local Authority will provide the financial framework to support
the delivery of the enterprise measure under the Rural Development
Programme in line with what they will be doing in support of the
Local Enterprise Offices. This will lead to significant reductions in
costs and overheads and greater efficiencies and integration of
services and reporting.
The provision of a single delivery system for enterprise support will
ensure:
- The effective and co-ordinated use of all available resources in
support of rural development.
- The consistent application of the Government’s decision that the
LEOs will be the First Point of Contact for business support.
9- A single point of access for all enterprise supports at local level.
- The removal of any confusion as to roles and responsibilities with
regard to assisting small and micro businesses.
- A reduction in delivery costs.
- The application and integration of national and local policies and
strategies in support of business and job creation and
development.
- A common approach to the evaluation of business propositions
across the sectors including manufacturing, craft, food, local
services, tourism etc.
- The application of consistent nationally agreed rates of support
in relation to grant aid and the avoidance of conflicting grant
schemes.
- The removal of “grant shopping”.
- The removal of the potential for duplication and deadweight
brought about by the necessity to spend monies.
- Significant reductions in overheads and administrative costs.
- Balanced and co-ordinated economic development within rural
areas.
6. Enterprise Development 2014-2020.
Within the Rural Development Programme, LEADER will be primarily
focussed on addressing Priority 6: promoting social inclusion, poverty
reduction and economic development in rural areas. However, the
CEB network also believe that LEADER as a measure could contribute
to other priorities such as promoting resource efficiency and a shift
towards a low carbon on climate resilient economy as well as
enhancing farm viability and competitiveness through business skills
10training and management programmes and through improving the
sustainability of on-farm added-value diversification.
As previously articulated the delivery of all Enterprise Development
and Enterprise support measures under the Rural Development
Programme 2014-2020 should be through the Local Enterprise
Offices (LEOs). The non-enterprise elements should to be delivered
by the local authority or other delivery channels.
The CEB Network recommends that in the context of the need for
job creation throughout our economy that this is a key performance
metric which should be incorporated within the next round of
LEADER under priority 6 and every investment should have a jobs
output and driven by a cost per job of no more than €10,000.
By delivering the LEADER programme through the LEOs effective and
co-ordinated use of all available resources (LEO, LEADER, Local
Authority) to support local development in rural areas can be
achieved. This will also enable one of the three key strategic
objectives of the EU Rural Development Policy 2014-2012 i.e.
balanced territorial development of rural areas, to be achieved.
The areas of Enterprise Development and Job Creation under the
RDP which the CEBs/LEOs believe should be delivered by the LEOs
are as follows, and are presented as a holistic approach to enterprise
support. This approach is based on the 20 years of extensive and
intensive experience of the CEBs:
1 Stage 2 Stage 3 Stage
Artisan Food Business Training, Grant aid and
(including on-farm advice and mentoring and access to micro
and off-farm guidance access to finance.
enterprises and networking
shellfish) opportunities.
11Marine(tourism, Business Training, Grant aid and
marine technology Advice and mentoring and access to micro
and engineering) guidance networking finance.
opportunities.
Renewable Business Training and Grant aid and
Energies( new advice and mentoring and access to micro-
products and guidance networking finance.
innovative opportunities.
services)
Creative Business Training, Grant aid and
Industries(internet advice and mentoring and access to micro
and technology guidance networking finance.
based as well as opportunities.
knowledge based)
Crafts Business Training, Grant aid and
advice and mentoring and access to micro
guidance networking finance.
opportunities.
Rural Tourism that Business Training and Grant aid and
adds sustainable Advice and mentoring. access to micro
attractions or guidance. finance.
activities.
Sustainable social Business Training and Grant aid and
enterprises that advice and mentoring pre access to
address identified guidance and post additional
local or regional project sources of
needs. development. funding.
Arts and Heritage( Business Training, Grant aid and
sustainable advice and mentoring and access to micro
projects that add guidance. networking finance.
value to the local, opportunities.
regional or
national heritage
or cultural offering)
12The LEOs are also best positioned to delivery dedicated programmes
to promote rural enterprise within identified sections of the
community such as YOUTH, 50+ and FEMALES. Indeed the CEBs/LEOs
have delivered a range of such programmes over the years and
continue to do so, on an on-going basis.
Given the significant involvement of Local Authorities in the area of
broadband delivery, it is suggested that the Local Authorities are the
ideal delivery mechanism for the further expansion and
enhancement of broadband within rural areas, either as a direct
delivery agent or as a managing agent. The operation of the LEO
within the Local Authority structure will ensure that the on-going
needs of rural enterprise will be kept to the fore.
Similarly, Local Authorities have built up a significant reservoir of
skills and expertise in the area of community development and
facilitation through the County Development Boards over the past
fifteen years and are well placed to deliver the animation and
capacity building measures within LEADER under the next
programme.
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