John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

The regional aid guidelines established enable the State's industrial development agencies to pay grants at enhanced rates to businesses to support new investment and employment in productive projects in Ireland's most disadvantaged regions. All such grants come from the Exchequer. The priorities during the regional aid guidelines negotiation process were to maintain population coverage, ensure aid could be given to all categories of companies regardless of their size and to maintain aid intensity rates.

The initial proposal from the Commission presented significant challenges for Ireland. The proposal prohibited aid to large enterprises, but the Minister, Deputy Bruton, got this changed . It reduced our population coverage from 50% to 25% and reduced aid intensity rates. Following sustained engagement with the Commission and like-minded member states at all levels, Ireland secured entitlement to increase regional aid qualification to 51.25% of the country's population. Another issue in the negotiations was the prospect of not being allowed to grant aid large enterprises. Ireland was part of a group of member states which successfully negotiated a compromise whereby it will be possible to provide investment to large enterprises.

My Department is tasked with developing a single regional aid map applicable from July 2014 to December 2020. An inter-agency group has been working since 2011 to develop an overall position and to assess the implications of any proposed changes. The process is now complete and my Department has issued the proposed regional aid map for Ireland to the Commission for consideration and approval. The Department will publish the results of this submission once the Commission has finalised its consideration of the matter. In essence, the final version of the regional aid guidelines represents an important step in ensuring Ireland, along with the EU in general, is positioned to maintain the ability to strengthen the EU economy and to promote cohesion between regions.

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