AQW 7241/17-22
Mr Andrew Muir
Alliance Party
North Down
Tabled Date: 18/09/2020
Answered On Date: 06/10/2020
Priority Written: No
Question:
To ask the Minister for the Economy whether she intends to bring forward a Capital Funding Scheme to support Local Enterprise Agencies to (i) acquire land; (ii) construct new buildings.
Answer:
I recognise the important work that the Local Enterprise Agency network is carrying out, in particular their focus on supporting small enterprises through these difficult times. Given the nature of the NI economy, with the grass roots development of the micro and small businesses that make up a considerable portion of it, the viability of these sectors is important. Local Enterprise Agencies are typically supported at a local Council level, reflecting the economic development remit that was passed to councils in 2015 following the Review of Public Administration. I therefore have no plans to bring forward a capital funding scheme at a local level, but Invest NI has done some relevant work in this area. In April 2019 Invest NI launched a Flexible Workspace Scheme offering loans of up to 40% of the total cost of developing new start-up and early stage business accommodation of up to 35,000 sq ft in size. The costs associated with land acquisition were, however, excluded. The Scheme was developed following an approach from a Local Enterprise Agency seeking support for its expansion plans. An economic appraisal commissioned by Invest NI concluded there was sufficient evidence to support a Northern Ireland wide pilot exercise. Whilst support for such projects would normally fall within the remit of Councils, Invest NI agreed that it would take the lead with responsibility for any future schemes sitting with each local authority. By the deadline of 30 August 2019 Invest NI had received a total of 14 expressions of interest including four from Local Enterprise Agencies. Whilst two of the LEA applications were not considered to be eligible for support Invest NI continues to engage with the proposers of the remaining two projects. Invest NI has no plans to reopen the scheme to new applications.
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