Mary Lou McDonald (Dublin Central, Sinn Fein)
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Question 40: To ask the Minister for Jobs, Enterprise and Innovation the steps that he has taken to renegotiate the regional aid guidelines that govern the areas in which the enterprise and industrial development agencies in member states may grant regional aid; and when the new fairer guidelines will be in place. [11317/12]

Richard 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. Investment aid is intended to discriminate in favour of certain disadvantaged areas within the European Union in order to redress regional disparities by promoting the economic development of such areas. The Guidelines specify rules for the selection of regions that are eligible for regional aid and define the maximum permitted levels of this 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.

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 extensive consultation with the relevant stakeholders, my Department made preliminary submissions to the Commission both in advance and after the workshop. In December, the European Commission sent my Department its initial thoughts on 2014-2020 Regional Aid Guidelines. These Guidelines were discussed at a multilateral meeting of Member States and the Commission on 8-9 February 2012. Another multilateral meeting is scheduled to take place later this year, with the adoption of the new Regional Aid Guidelines scheduled for 2013. My Department will continue to liaise with the relevant stakeholders throughout this process and will seek to ensure that Irelands interest are articulated at EU Level.

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

SOUTHERN & EASTERN REGION

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