The rationale for rationalising the agencies is simple: stamp out duplication and make it easier for indigenous industry to get assistance to grow their businesses.
However, whether the Minister for Enterprise, Trade and Employment, Ms Harney can ensure that this is delivered by the agencies involved, without serious disruption to existing clients is another matter. It will be a huge task to restructure three organisations and seamlessly blend their various operations, which range from marketing to financial support.
In a briefing on the proposals yesterday, Ms Harney held up IDA Ireland as a shining example of what an agency with a clear focus can achieve for firms. The IDA was now winning 16 per cent of all US investment into Europe, she said.
The IDA was established in 1993, when Eolas and the Industrial Development Authority were restructured. Ms Harney argues that the same focus is not being achieved to help indigenous industry and there are too many schemes and agencies.
Under the Minister's plans, the existing "supply-driven enterprise support structure" will be replaced by a "streamlined, client-centred approach" to the State's "interaction with business".
The background briefing paper says the new agency will have six key business functions. These includes the grandiosely titled "strategy assessment and formulation", research development and design, marketing and distribution, human resources and finance.
It is envisaged that the agency will be broken into different business units and a team of "client development executives" will draw on these specialist resources for clients.
Ms Harney made great play of the fact that companies now won't have to go around knocking on agency doors "trying to find the person who can address their particular problem".
It is expected that the new agency will have an annual budget of around £150 million and will employ around 1,000 staff. Managing an organisation of that size will be quite a task in itself.
Although broadly welcomed by industry groups, some feared last night that some functions which the existing organisations currently carry out - most notably the trade board's marketing operations - may be diluted.
Yesterday, Ms Harney said the indigenous sector was very weak on two key aspects of business development - research and development and the human resources function, particularly training and reskilling staff. Some sources last night cast doubt on whether the new agency can make an impact on reversing this. However, others conceded that if it did, this would be a very positive development.
Ms Harney said the new organisation would be a dynamic one, once it was up and running. She conceded it would not be an easy task, but it was the right approach, she said. "I would be surprised if anyone splits it up again," she said.
