Written answers

Wednesday, 11 January 2012

Department of Enterprise, Trade and Innovation

Industrial Development

8:00 pm

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Question 299: To ask the Minister for Jobs, Enterprise and Innovation the status each county has regarding grant funding for foreign direct investment; the amount and the type of supports that each county can provide; and when will he negotiate a change in current system as it pertains to each county. [40807/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Regional Aid Guidelines govern the areas in which the enterprise and industrial development agencies in Member States may grant regional aid, more commonly known as investment aid. Under Ireland's current Regional Aid Map, regions covering 50% of the population are entitled to grant Regional Aid. The details of the support in terms of aid intensity for each county are available on my Departments website, and are also listed in the chart at the end of this answer.

Under the Regional Aid Map, the highest rates were afforded to the Border, Midlands and West (BMW) region. For the period of 2007 to the end of 2010, the region qualified for a rate of 30% for large firms; for medium and small firms the rates were 40% and 50% respectively.

In accordance with the Guidelines, a reduced rate of aid for the BMW region is applicable from 1 January 2011: 15% for large companies, 25% and 35% for medium and small firms respectively. The maximum aid rates for eligible regions within the Southern and Eastern Region remain at 10% for large companies, 20% and 30% for medium and small firms respectively.

No scope exists to renegotiate aid rates within the current Guidelines, which are due to expire on 31 December 2013.

To launch the work on the new Guidelines beyond 2013, the European Commission hosted a workshop for Member States in Brussels last March. The purpose of the workshop was to gather information on the operation of the current Guidelines and the experiences of Member States and to give Member States the opportunity to express preliminary views on the issues that should be reviewed in the future framework.

Following consultation with stakeholders, my Department made preliminary submissions to the Commission both in advance and after the workshop. In late December, the European Commission sent my Department its initial thoughts on 2014-2020 Regional Aid Guidelines. These will be discussed at a multilateral meeting of Member States and the Commission on 8-9 February. My Department will continue to liaise with the relevant stakeholders throughout the process with a view to ensuring that Ireland's strategic interests are fully represented at EU level and are reflected in the new Guidelines. Regional Aid Map 2007-2013 – IRELAND (as reviewed by Commission Decision N130/2010 – Official Journal c 226/5 21.8.2010)

BORDER, MIDLANDS and WEST REGION

LARGE FIRMSMEDIUM FIRMSSMALL FIRMS
Period2007-20102011-20132007-20102011-'132007- '102011-'13
Aid Rate (Gross Grant Equivalent)30%15%40%25%50%35%

SOUTHERN & EASTERN REGION

Designated AreasLarge Firms2007-2013Medium Firms2007-2013Small Firms2007-2013
South East sub-Region(Carlow, Kilkenny, Wexford, Waterford, South Tipperary) and designated islands 210%20%30%
2007-2008 2009-20132007-20132007-2013
Mid West(Clare, Limerick, North Tipperary2) Kerry10%20%30%

1Bear, Cleire, Dursey, Heir, Long, Sherkin, Whiddy

2 As a result of Commission Decision N 130/2010, large investment aid and aid for investment projects with eligible expenditure exceeding EUR 25 million is once again permitted for these three counties. Prior to the decision, such aid had only been allowed up until the end of 2008.

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