A new competitiveness fund is a central part of a revised package of grant aid and support for indigenous industry currently being prepared by Enterprise Ireland.

The new fund will form part of a broader reform of all grant and supports from the agency, which is responsible for assisting the indigenous sector.

The competitiveness fund will be aimed particularly at helping older small and medium-sized companies in more traditional sectors to upgrade their operations. It will offer support for new manufacturing and other processes, in a bid to improve the performance of a sector which has been losing jobs.

Firms have been under pressure from rising costs and the increasing euro, which has seriously hit competitiveness over the past year and damaged export performance. The new supports from Enterprise Ireland are understood to be designed to help companies to improve all aspects of their operations, including introducing the most modern manufacturing, logistics and research expertise.

Enterprise Ireland is likely to announce the package over the next few weeks and is not releasing any details about its make-up. Industry sources believe that the competitiveness fund will be significant, totalling around €10 million in possible support initially, to be drawn down over a period of about two years. Companies are likely to be invited to apply through newspaper advertisements, as well as through Enterprise Ireland's normal contacts and the package is likely to be presented as a part of an overall Government effort to attack the competitiveness problems now affecting the economy.

The revised package will also aim to encourage firms to move into exporting for the first time.

Enterprise Ireland aims to support Irish industry in all aspects of its operations. It administers an annual support budget of some €300 million and has offices across the Republic and in 30 locations worldwide.