Written answers

Tuesday, 5 February 2008

Department of Enterprise, Trade and Employment

Employment Support Services

9:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 415: To ask the Minister for Enterprise, Trade and Employment his views on introducing criteria which would prohibit the issuing of employment grant aid to companies who have made workers redundant in the past two years, even when those companies were returning a profit at the end of each year. [3591/08]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I am conscious of the need to ensure that employment grants are restricted to additional jobs and am satisfied that the schemes operated by the industrial development agencies under my Department, IDA Ireland, Enterprise Ireland and Shannon Development reflect this need.

A condition of approval obliges recipient companies to maintain employment at specified levels. Where employment falls below these levels it gives rise to grant recovery for non-compliance. First time applications from eligible companies submitting eligible investment programmes will be considered and evaluated on the basis of their prevailing employment base at the time of consideration/approval.

Regardless of strategic decisions applicant companies might have made in the past, once the applicant company falls within the agency's legislative and policy requirements the proposal for funding will be considered on its particular merits. This includes the impact it will have on future employment and value creation within the State. Past employment levels and sustained profitability prior to a first time application would not therefore necessarily militate against the applicant company.

In the light of the eligibility criteria already in place and the thorough assessment process engaged in by the agencies, I see no need to introduce additional criteria along the lines envisaged in the Question.

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