Written answers

Wednesday, 11 January 2012

Department of Enterprise, Trade and Innovation

EU Funding

8:00 pm

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
Link to this: Individually | In context

Question 312: To ask the Minister for Jobs, Enterprise and Innovation if he will meet with Kerry County Council at an early date to commence the process of having Kerry categorised with the mid-west region from the point of view of securing EU regional grant aid; and if he will make a statement on the matter. [1053/12]

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
Link to this: Individually | In context

Question 313: To ask the Minister for Jobs, Enterprise and Innovation if he will immediately commence the process of having Kerry categorised with the mid-west region from the point of view of securing EU regional grant aid; and if he will make a statement on the matter. [1054/12]

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
Link to this: Individually | In context

Question 314: To ask the Minister for Jobs, Enterprise and Innovation the EU regional grant aid, support, capital and employment grants that are available to companies who wish to locate in County Kerry; and if he will make a statement on the matter. [1055/12]

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
Link to this: Individually | In context

Question 315: To ask the Minister for Jobs, Enterprise and Innovation the way EU regional grant aid, support, capital and employment grants that are available to companies who locate to other regions compare to what is available to companies who wish to locate in County Kerry; and if he will make a statement on the matter. [1056/12]

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
Link to this: Individually | In context

Question 318: To ask the Minister for Jobs, Enterprise and Innovation if he will review a matter (details supplied) regarding EU aid grants; and if he will make a statement on the matter. [1268/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

I propose to take Questions Nos. 312, 313, 314, 315 and 318 together.

The position in relation to State aid is that aid for investment in companies in the various regions of Ireland must be in accordance with the Regional Aid Map 2007-13 approved by the European Commission. This Map was drawn up in accordance with the Commission's Regional Aid Guidelines. 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 approved Map, Kerry does not currently qualify for regional aid for large investment projects, following the expiry of transitional arrangements at the end of 2008. However, it does continue to qualify for regional investment aid to SMEs at a rate of 20% for medium sized companies (50 to 249 employees) and 30% for small companies (under 50 employees).

In selecting the areas within the overall Southern and Eastern Nomenclature of Territorial Units for Statistics (NUTS) Level II Region that could, in addition to the BMW Region, be designated for the new Regional Aid Map, Ireland had to observe a strict EU requirement that the areas selected be relatively more in need of economic development. Accordingly, the Southern & Eastern Regional Assembly was consulted for its views. The Assembly accepted the findings of an independent report, which it commissioned from the National Institute for Spatial and Regional Analysis at NUI Maynooth. The Assembly's proposals were included in the proposed Regional Aid Map that the European Commission approved in 2006.

Under the approved map, Kerry, Limerick, Clare, North Tipperary and the Cork Urban Regeneration Area retained entitlement to Regional Aid from 2007-2013 for small and medium sized firms at the higher aid rates permitted for such firms under the Regional Aid Guidelines.

Ireland also benefited from transitional arrangements in the Guidelines, which allowed regional aid at 10% for large firms for the period from 1 January 2007 to 31 December 2008 in designated regions that were losing their eligibility for regional investment aid. The result of this was that Kerry, Limerick, Clare, Cork, and Cork City and North Tipperary were eligible for regional aid at 10% for large firms for this two-year period.

The Commission's Regional Aid Guidelines affords the possibility to Member States to amend the list of regions eligible for regional aid or the applicable aid intensities in a mid-term review provided there is no increase in population coverage.

In 2010, Ireland successfully made a submission to the Commission in the context of the mid- term review, and sought the restoration of the ability to grant aid to large investment projects in the Mid-West Region.

Ireland's 2010 submission relied heavily on the impact of the jobs losses in Dell on unemployment in the region. Emerging negative unemployment data for the Mid West NUTS III region was also used. Unemployment in the corresponding South West NUTS III region, which contains Kerry, was actually lower than both the State average and Mid-West NUTS III sub-region average in 2009 overall, and for Quarter 4 of 2009.

In addition, while the Mid West NUTS III Gross Domestic Product (GDP) per capita was below the national average and other regions of the overall Southern and Eastern NUTS III region, GDP per capita in the South West region containing Kerry was higher than both the State average, and that of the Mid West region.

The current configuration of regional authorities is set-out in the Local Government Act 1991 (Regional Authorities)(Establishment) Order 1993. My colleague, Mr Phil Hogan, Minister for the Environment, Community and Local Government intends to bring comprehensive policy proposals to Government shortly in relation to local government structures generally at regional, county, and sub-county levels.

The current configuration of regional authorities is set-out in the Local Government Act 1991 (Regional Authorities)(Establishment) Order 1993. My colleague, Mr Phil Hogan, Minister for the Environment, Community and Local Government intends to bring comprehensive policy proposals to Government shortly in relation to local government structures generally at regional, county, and sub-county levels.

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 FirmsMedium FirmsSmall Firms
South East sub-Region(Carlow, Kilkenny, Wexford, Waterford, South Tipperary) and designated islands 12007 - 201310%2007 - 201320%2007 - 201330%
2007 - 2008 2009 - 20132007 - 20132007 - 2013
Mid West(Clare, Limerick, North Tipperary2)Kerry, Cork Urban, Regeneration Area10%20%30%
10% 0%20%330%3
2007 - 2008 2009 - 20132007 - 2008 2009 - 2013
Cork (apart from Urban Regeneration Area)10% 0%20% 0%30% 0%

Lower aid rates apply to Large Investment Projects (i.e. >€50 million

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. 3 From 2009-2013 no aid may be awarded in these counties for investment projects with eligible expenditure exceeding EUR 25 million.

Comments

No comments

Log in or join to post a public comment.