Red tape hindering jobs
BUSINESSES in Laois that are trying to expand, create or even maintain jobs have had their futures left to the mercy of red tape ordered by the Government.
In a week when the Laois EXPO was held in Portlaoise to promote local enterprise which has been left battered by the recession, it has been confirmed that companies which have had grants approved by the Laois Enterprise Board will not receive the badly needed cash until given the seal of approval from Dublin.
The grants can vary from n75,000 to as little as n650 but, amazingly, the Department of Finance must check every grant and has the power to withdraw funding at the stroke of a pen, without actually seeing details of what a business wants to do or how many jobs could be created. It appears that the Department is only concerned with money.
The policy move was confirmed by the Laois Enterprise Board's chief executive Maria Callinan. "In March the procedure was changed. Now, following board approval we need to seek an additional approval from the Department of Finance, what they call a 'final approval'," she said.
Last month, eleven projects were approved for funds but all had to be reviewed in Dublin. "They (Department of Finance) didn't scrutinise the files. They are just looking at the total costs - they don't have the file," said Ms Callinan.
Ms Callinan was sure the measure will have delayed investment and job creation. "Certainly, one of our criteria for evaluating an application is job creation. They (applicants) are all solid and sound businesses and ideas. We are interested in winners, and those that will be there for the long term," she said.
The Enterprise Board chief executive said all plans are already scrutinised closely by her board. Ms Callinan was not in favour of the new measure. "Local decisions are best left to locals but we have to live with the rules," she said.
Charlie Flanagan TD was critical of the measure which, he said, had caused "grave anxiety" among business people and also threatens jobs.
"It is impossible to say what projects will be approved and it is likely that some would fall victim to cuts," he said. "Given the low levels of job creation across Laois this is most worrying. Instead of obstructing jobs in Laois the Department should be engaged in the active creation and maintenance of jobs," said the Fine Gael TD who said he had raised the problem with the Minister for Finance.
The local board are apprehensive about what might happen next year and fear the restrictions on grants may be increased. The strict new rules date back to February when all local enterprise boards were told that "no contractual commitments of any kind should be entered into without Department of Finance approval.”
Grants are mainly given to manufacturing and exporting businesses. The maximum grant for equipment is €75,000 for some type of machinery. Employment grants of up to €7,500 are also awarded and the body will also award up to €650 to a business that wants to do a feasibility study. Website grants are also issued, as are trade fair funds. A portion of the grants are refunded to the board.
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Monday 21 May 2012
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