Tom McEllistrim (Kerry North, Fianna Fail)
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I call on the Minister for Enterprise, Trade and Employment, Deputy Martin, to ensure that the funding application for a community enterprise centre in Farranfore be given priority in the interests of balanced regional development.

Farranfore is unique in that it is the only location in the country with access to an airport, national roads and a railway. Kerry County Council has designated it as being crucial to the development of the Tralee-Killarney hub under the national spatial strategy, but it is a CLÁR area due to its depopulation since the foundation of the State. Recently, a group of active stakeholders, including local community groups and the local development partnership with the support of the council, Kerry County Enterprise Board, Leader and many other actors, submitted an application for funding under the 2007 community enterprise scheme to Enterprise Ireland. It is imperative that the funding be secured during this round, as the window of opportunity is open for development. If the initiative gets support, it will be a catalyst for excellent enterprise development in County Kerry and the mid-Kerry area in particular. At full capacity, the centre will generate more than 60 jobs on site.

The initiative has the support of many local stakeholders, including the management of the airport, which has gone from strength to strength in recent years. As part of a local twinning project that has received local government and EU support, business development associations in Brittany have been consulted with to develop international trade links. Discussions to date have been positive in that regard.

Many areas of Kerry have good histories in terms of enterprise development, but Farranfore and mid-Kerry do not. Developing the facility in question would be timely. If funding is secured from Enterprise Ireland, it will ensure the development of employment opportunities in that strategic location.

The department of regional and urban planning at University College, Dublin, produced a comprehensive study on the period 2002 to 2022. Consultants developed and recommended the concept of an economic and development triangle between Tralee, Killarney and Castleisland centred on Farranfore and mid-Kerry. Quoting the economic spatial development perspective, the study claims that such a development centred on the Farranfore transportation hub would facilitate a more balanced system of urban-rural relationships utilising links between international, national, regional and local transport networks while promoting the role of gateway and hub towns. The study's summary recommendations outlined the objective of developing Farranfore as an industrial hub for the region by capitalising on road, air, rail and telecommunications infrastructure. The study recommended that the location and consequent advantages should be marketed as providing distinct advantages for businesses and industry. Current enterprise space in Tralee and Killarney is at full occupancy. While there is an adequate supply of large industrial units, especially in Tralee, there is a gap in facilities provision for companies seeking flexible space and the option of light industrial and, or, distribution centres.

I was a member of the Kerry County Enterprise Board for five years from 1999 to 2004 while a member of Kerry County Council. I am aware therefore of an obvious latent demand for space in the mid-Kerry area generally. Given the number of inquiries to existing centres and the continued growth in requests for support from the enterprise board and other development agencies, there is a clear need to ensure the enterprise centre initiative receives as much support as possible at this stage.

If and when new businesses locate in a facility, they will be given ongoing, positive support to help them grow and develop. Already, a number of new and growing enterprises have expressed great interest in Farranfore as a location. A great opportunity exists for all involved to demonstrate support for employment in the regions from Government and State agencies down to local level. I urge the Minister for Enterprise, Trade and Employment, Deputy Martin, to ensure in the interests of balanced regional development that the application for a community enterprise centre at Farranfore, County Kerry, is given due priority and consideration.

Micheál Martin (Cork South Central, Fianna Fail)
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I thank Deputy McEllistrim for raising this matter on the Adjournment. I am well aware of his determination, commitment and support for the community enterprise centre at Farranfore, County Kerry.

Enterprise Ireland is administering, under section 7 of the Industrial Development (Enterprise Ireland) Act 1998, a community-led enterprise support programme called the community enterprise centre scheme 2007. I authorised the scheme some time ago. Enterprise Ireland will work in close co-operation with FÁS, local authorities, county and city enterprise boards and county and city development boards, where relevant, to implement the initiative. An additional CEC scheme is desirable on foot of the success of the previous schemes and the anticipated demand to establish new centres and expand existing ones. I concur with much of what Deputy McEllistrim said in this context. The availability of business space is a fundamental infrastructural requirement for businesses to establish and grow in any location. Community enterprise centres provide space in a supportive environment for budding entrepreneurs and serve to help the development of entrepreneurship locally in urban and rural locations.

Since 1989, Enterprise Ireland and its predecessors have administered four schemes supporting community enterprise centres. A total of €44 million has been approved for 147 such projects nationally. The last approvals were made in June 2006. To date, 105 centres have been built and 32 are either under construction or have been recently approved. In 2005, Enterprise Ireland carried out a survey of the 95 community enterprise centres then operating. The top line results of the survey show a very positive use of the investment as reflected in occupancy rates, numbers employed and the number of manufacturing and traded service enterprises. The survey revealed that the centres have been successful in achieving an average occupancy rate of 86% with over 840 businesses employing more than 3,800 people in the centres. The survey also found that 15% of the tenants who responded were involved in export markets to some degree.

Funding of €21 million will be provided over three years for the community enterprise scheme. There will be a minimum of three calls for applications in the period 2007 to 2009. Due to the limited funding available, applications will be competitive and it may not be possible to award aid to all eligible projects. The selection of successful projects will be based solely on the ranking of the projects as set out in the community enterprise centre scheme outline. The inclusion of a number of tranches in the scheme gives communities the opportunity to put together a strong plan or application. Therefore, Enterprise Ireland strongly recommends that the fund be serialised into a number of calls for proposals and we scheduled three.

Achieving balanced regional development is a key aim of the enterprise development agencies under the remit of my Department. The scheme forms part of the regional strategy. I appeal to the Deputy to work with his local community to ensure their submission is a good one. It would be useful to examine previous successful community enterprise applications nationally in that context. Partnership with local authorities is vital. New job gains associated with Enterprise Ireland clients have been very strong in the regions. In 1998, 62% of employment gains were in client companies located in all regions outside Dublin with this proportion climbing by 2006 to 68%. Many of Ireland's high potential start-up companies and those involving research and development investment have originated at enterprise incubation facilities at enterprise centres.

I appreciate the Deputy's concerns. The closing date in respect of the last call for proposals was August 2007. The assessment process is under way and the Farranfore application is being considered with all others. A decision is expected shortly.