Written answers

Tuesday, 2 October 2012

Department of Jobs, Enterprise and Innovation

EU Funding

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael)
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To ask the Minister for Jobs, Enterprise and Innovation if County Kerry's status for grant aid will be more favourable in view of the lack of foreign direct investment in the county; if he will acknowledge that County Kerry is a very poor neighbour to the bordering counties of Cork and Limerick in the context of foreign direct investment; if any follow ups have been made by the Industrial Development Agency to companies that have relocated from County Kerry to the far east such as those (details supplied) to ascertain if there is any possibility of a return to County Kerry due to unforeseen difficulties at the new locations; and if he will make a statement on the matter. [41253/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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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 current Regional Aid Map for 2007-13 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.


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


The process of Member States agreeing the 2014-2021 Regional Aid Guidelines has begun. The Commission is due to forward proposals to Member States in the coming months documenting the structure and provisions that will form the basis of the revised Guidelines. My Department is leading an interagency group that is currently examining issues around the new guidelines, including which counties could be included in the next map. The group will be examining all counties without prejudice as to their status in the revised group.


In accordance with its Horizon 2020 Strategy, IDA Ireland is aiming to create 63,000 direct jobs in 640 investments over the period 2010 to 2014, with 50% of these investments located outside of Dublin and Cork. The Agency has pointed out that, as it competes for high quality foreign direct investment (FDI), the concept of scale is crucial. Leading global corporations require a significant population pool, access to qualified talent, world standard physical and digital infrastructure coupled with the availability of sophisticated professional and business support services. Ireland has only one Metro Region, the Greater Dublin area, so, in order to achieve regional economic development, IDA prioritises the marketing of Gateway locations within each Region as the locations of critical mass (i.e. sufficient scale of population, skills, infrastructure, companies, business services etc.) and highlights the opportunities provided by other locations on an opportunistic basis, which are within commuting distances of these Gateways. The Gateways in the Mid-West and South West Regions include Limerick and Cork. With continuing enhancement and improvements in physical and digital infrastructure, an FDI project secured for one Gateway Economic Region has a positive impact on other Gateway Economic Regions and their surrounding areas.


At the end of 2011 there were 12 IDA Ireland supported companies in Kerry employing in the region of 1,300 people. IDA Ireland has assured me that it will continue to promote Kerry in response to specific client queries and on an opportunistic basis. Approximately 70% of all FDI secured for Ireland is from the existing base of multinationals. Accordingly, IDA Ireland has retained strong relationships with its existing client base across the country and will continue to work closely with them to ensure their long term sustainability and to encourage their growth, development and the broadening of their mandate with a view to continuing re-investment in their sites.


When IDA becomes aware that one of its client companies is considering downsizing or closing down its activities in Ireland, IDA engages with senior management in the company is question, both at local and corporate level, in an effort to persuade that company to alter its decision. However, in all cases it is the company who makes the final decision.

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