The Tánaiste and Minister for Enterprise, Trade and Employment has defended a cut of more than 5 per cent in her Department's budget but has admitted that support for industry would be affected.
In Brussels where she was attending a ministerial meeting, Ms Harney described Cabinet discussions preceding the publication of the Estimates as intense. "It has been a very difficult period in Government in the past couple of weeks. We had a huge debate about this around the Cabinet table."
While the Industrial Development Authority is to receive a slight increase, to €90.3 million, in its grants to industry programme for next year, about half of that relates to two major projects to which funding is already committed.
Enterprise Ireland's grants to indigenous industries are to be reduced by 18 per cent to €63 million, while the County Enterprise Boards are to have their funding cut by 13 per cent to €31 million.
"While we must acknowledge the reality of the changed economic circumstances in which we are currently operating, it is equally vital that we protect our economic competitiveness and retain the capacity to generate employment in key sectors. I believe that we have achieved that balance," Ms Harney said.
Some 5,000 places will be cut from Community Employment Schemes. "This level of investment is consistent with the Government's decision in 1999 to restructure community employment and reflects also the significant reduction in recent years in the numbers of long-term unemployed . . . FÁS will continue to prioritise projects in the areas of greatest need."
"Drugs task force activity and the provision of childcare and health-related services are ring-fenced and projects in RAPID areas [Revitalising Areas by Planning, Investment and Development\] are given top priority."
Community employment schemes are open to people aged 25 and over who have been on social welfare for a year or more. The schemes have been successful in helping people to get back into mainstream jobs and provide an important source of funding for community-based projects.
Supervisors of the schemes said the cut was not as bad as had been feared. Schemes which could be vulnerable, however, include those relating to heritage, the arts, culture, tourism and sport.