Jack Wall (Kildare South, Labour)
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Question 150: To ask the Minister for Enterprise, Trade and Employment his plans to extend the grant aid system of the Border Midland Western region to cover other areas adjacent to such regions in view of the fact that such areas are finding it difficult to attract industry against the competition of the BMW region; and if he will make a statement on the matter. [22959/06]

Micheál Martin (Cork South Central, Fianna Fail)
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On 21 December 2005, the European Commission adopted new Regional Aid Guidelines for 2007-2013. The Regional Aid Guidelines govern the areas in which Member States may grant regional aid, more commonly known as investment aid. Investment aid is intended to promote the economic development of certain disadvantaged areas within the European Union in order to redress regional disparities. The Guidelines specify rules for the selection of regions that are eligible for regional aid and define the maximum permitted levels of this aid. In line with EU cohesion policy and European Council requests for less and better targeted state aid, the new Guidelines re-focus regional aid on the most deprived regions of the enlarged Union.

Given Ireland's economic performance since the current Regional Aid Map was approved by the European Commission in 1999, it was to be expected that our scope to designate areas for regional aid for 2007-2013 would be significantly reduced. Nevertheless, Ireland has secured entitlement under the new Guidelines to maintain regional aid qualification for areas accounting for 50% of the country's population for the period 2007-2013. The BMW Region qualifies automatically as a result of its level of economic development. The South East sub-region also qualifies automatically for designation on the basis of unemployment criteria specified in the Guidelines.

The remaining areas that may qualify for designation for 2007-2013, within the permitted 50% population threshold, must meet the strict requirement in the Guidelines that they are relatively more in need of economic development than other areas on the basis of recognised economic indicators. The Southern & Eastern Regional Assembly was consulted by my Department in relation to this designation. To ensure that the most deserving regions are designated in line with the Guidelines, Member States have to submit their proposals for designation to the European Commission for approval. Details of the Regional Aid Map for 2007-2013 will be published following approval by the Commission.

Any area no longer entitled to Regional Aid will continue to qualify for other forms of State aid, including SME Aid, Aid for Research and Development, Training Aid, Employment Aid and Aid for Environmental Protection, which will continue to be available in all areas.