The Government has appointed Mr Dan Flinter as chief executive designate of the new super State agency, Enterprise Ireland. His job will be to merge Forbairt, which exists to support Irish-owned industry, with An Bord Trachtala, which helps exporters, and with the industrial training division of FAS. The three elements overlap to a small degree in the assistance they provide but each is quite focussed on what it exists to do.
Will the same be said for Enterprise Ireland? It will have a budget of £150 million a year and 1,000 employees. In essence, it is Forbairt with a few bits added on. If that is how it will function, then it will fail. On the other hand, if most of An Bord Trachtala, in effect, continues on as a separate division of Enterprise Ireland (and maybe it should, if its marketing expertise is not to be diluted) then why have the merger at all?
The Tanaiste and Minister for Enterprise, Trade and Employment, Ms Mary Harney, said when announcing the merger plan that the focus which the IDA brings to nurturing foreign-owned industry does not exist for the indigenous sector. She might have added that the whole development sector is overcrowded what with county enterprise boards, area partnership boards and numerous LEADER programmes. Ms Harney was correct when she pointed out that the main agencies, between them, run too many schemes aimed at the business sector. She said that the supply-driven support structure should be replaced by a "streamlined, client-centred approach". No-one would argue with that but a larger multi-function agency will find it difficult to deliver streamlining and sharper focus. There is also the considerable risk of disruption of services while the three elements try to bed down together.
Much will depend on how Enterprise Ireland is structured and on this Mr Flinter and his chairman designate, Mr Pat Molloy, will have to tread carefully. Forbairt provides a range of science and technology services. It is not essential that they remain under the umbrella of the new body. An Bord Trachtala provides development assistance which, clearly, could amalgamate with the Forbairt development programmes. The inclusion of the industrial training division of FAS is another matter. It is closer, in function, to the agency it is leaving then to the agency it is joining.
The indigenous sector is stronger than it has ever been but it still has its weaknesses. It is not strong on research and development, nothing like the foreign-owned firms, and its human resources function is under-funded and undervalued. The indigenous sector puts training and reskilling well down its list of priorities despite indisputable evidence that it has suffered as a consequence. As has the economy; the skills shortage in software development, for example, is acute. Hopefully Ms Harney will next turn her attention to FAS and give it assistance to place more emphasis on training people for the vacancies which exist.
If Enterprise Ireland can manifest the dynamism that is necessary to tackle the entrenched problems afflicting the indigenous sector, then indeed it will serve its purpose. But bigger is not necessarily better and the sceptics will be waiting to prove that this is change just for the sake of change. And we have had plenty of that before.