Written answers

Wednesday, 25 January 2006

Department of Enterprise, Trade and Employment

Grant Payments

8:00 pm

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Question 773: To ask the Minister for Enterprise, Trade and Employment the discussions he has had with a company (details supplied) in County Wicklow since 1 January 2006; the outcome of these discussions; and if he will make a statement on the matter. [2478/06]

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Question 774: To ask the Minister for Enterprise, Trade and Employment the grants a company (details supplied) in County Wicklow received since its establishment; the basis on which it received same; the conditions attached; and if he will make a statement on the matter. [2479/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 773 and 774 together. Executives of IDA Ireland met parent company representatives on 12 January 2006 to discuss the restructuring which is taking place within the company in question. The meeting confirmed the company's commitment to its operations in Arklow and Cherrywood, County Dublin, and to developing sales in the European market. I understand Arklow will be one of two processing centres of excellence for the company's business and is a key element of its future strategy. The Irish employees have been briefed on the company's future plans.

The company in question has been paid grants amounting to €1.1 million. These grants were paid subject to IDA Ireland's normal grant conditions and on the basis of 343 jobs being created. It is envisaged that the company will maintain a minimum of 350 jobs. Current employment stands at 372 in Arklow and 54 in Cherrywood. Consultations regarding the redundancies required by the company are ongoing between the company itself and its business focus forum, which comprises representatives of staff and management. These consultations are expected to conclude shortly.

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Question 775: To ask the Minister for Enterprise, Trade and Employment the amount of grant assistance given to assist job creation directly in 2005; and if he will make a statement on the matter. [2480/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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A range of financial supports and non-financial supports are provided to clients annually by the enterprise development agencies in support of various objectives such as improving competitiveness, improving client export capability, improving research and development and innovation, and improving employee skill levels, all of which combined result in stronger and healthier companies capable of retaining and increasing levels of employment as business grows. While agencies may provide direct grant assistance for the purpose of job creation, it should be noted that the assistance is generally part of a suite of supports which are mutually reinforcing.

Figures for 2005, across the agencies, will only be available later in the year when accounts are finalised for 2005. However, the agencies have provided provisional figures for 2005. Enterprise Ireland reports that it approved €85.5 million, including research and development and equity supports, in 2005 and made payments of circa €68 million, including research and development and equity supports, to its client companies. The total funding approved in 2005 for employment grants amounted to €4.5 million while €3.3 million was paid directly to companies in the form of employment grants in this period. Employment grants reflect just one element of the comprehensive Enterprise Ireland business development offer.

In 2005, IDA Ireland approved grants totalling €173.4 million, which will give rise to payments being made over a number of years. I understand provisional figures for IDA Ireland for 2005 show €84.4 million was paid in grant-aid to client companies during the year. Of this amount, €73.0 million was paid from the agency's Exchequer allocation and the balance of €11.4 million from own resources. Shannon Development reports that €6.9 million was approved and €7.7 million paid in grants for its clients in 2005. Of this, €263,000 was in respect of employment grant approvals and €993,000 was paid in respect of employment grant.

Initial statistics for 2005 indicate the 35 county and city enterprise boards, CEBs, approved €12.5 million and paid €10.8 million in grant assistance to 948 projects and contributed to the creation of an additional 1,897 full-time and 697 part-time jobs throughout the country. The total number currently employed in CEB assisted companies from the establishment of the boards in 1993 to 31 December 2005 now stands at 32,518 full-time and 9,240 part-time jobs. Provisional figures for 2005 indicate the CEBs approved employment grants to more than 280 projects nationally throughout the year.

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