CEBs Role To Be Changed

Minister To Put CEB Restructuring Plan Before Government Within Weeks

Enterprise, Trade and Innovation Minister Batt O'Keeffe TD, is planning to restructure Ireland's network of 35 County Enterprise Boards (CEBs) to reduce administration and overhead costs while  improving  client services through better recruiting and central administration.

Speaking at the official opening of the new offices of the North Cork Enterprise Board in Mallow,  Minister O'Keeffe said it was timely to examine whether the CEB model is performing optimally.

He said the separate legal structures of the 35 independent CEBs present challenges in terms of staffing and recruitment rigidities, resource maximisation, and general corporate governance issues with consequential effects on standardisation of service provision across the networks.

"In the context of the recommendations of the McCarthy Report and continuing pressures on the public finances and staffing resources, I am evaluating the appropriateness of the current structures of the 35 CEBs.

"In these difficult times, it is imperative that we strive to exploit fully the potential for reducing administration and overhead costs, while ensuring that the provision of financial and other services to clients is maximised.'

"Specifically, I am considering the extent to which the structure of CEBs inhibits, for example, the roll-out of centralised resources and reductions in costs arising from the requirement for separate auditing in achieving efficiencies in the recruitment of staff, a re-balancing in staff complements having regard to both the moratorium on staff numbers and client needs, and consistency in corporate governance across the 35 CEBs.

The Minister continued: "The performance of the small business sector is an important contributor to the overall quality of life and standard of living in this country. CEBs play a crucial role in supporting entrepreneurship and in supporting growth and productivity in micro-enterprise. Their local focus and agile ability to respond quickly to local needs is a key aspect of the service which they provide to micro-enterprises.

"I believe that dedicated State support for the micro-enterprise sector should continue to be provided and such support should be delivered as close to the client as possible. An examination of the role and structures of the CEB network brings into focus whether maintaining a network of 35 boards is ideal," said Minister O'Keeffe.

He pointed out that CEBs have played a pivotal role in stimulating local economic development, helping to create 30,726 jobs in CEB-supported firms between 1993 and 2009 as well as providing training and other servies essential to startups.

"Significant numbers of people were supported in various management training and capability development programmes. Notwithstanding these successes, the time is now right for us to examinethe model and ask whether it is fit for purpose in these challenging times. I will bring proposals to Government on this before the summer break," said Minister O'Keeffe.

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