John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

313. To ask the Minister for Jobs, Enterprise and Innovation if he will detail the amounts of regional aid that can be applied for in the South East Region and if they are less than those in regions with lower levels of unemployment. [2470/13]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The maximum aid rates for the South East NUTS 3 Sub Region are 10% for large companies, and 20% and 30% for medium and small firms respectively. The only area with higher aid rates is the Border Midlands and West (BMW) NUTS 2 Region. The maximum aid rates available for large firms in the BMW region from 2007-2010 were 30%; for medium and small firms the rates they were 40% and 50% respectively. For the period 2011-2013 maximum aid rates available for large firms are 15%; for medium and small firms the rates they are 25% and 35% respectively.

The reason for the higher rates in the BMW region is due to it being classified under the Regional Aid Guidelines at the time of designation in 2006 as an “economic development region”. This status was due to the region having the category of an ‘A’ region in the 2000-2006 map. ‘A’ regions are those with GDP of less than 75% of the EU average. The unemployment rates included in the CSO Quarter 3 2012 National Quarterly Household Survey were 16.7% for the BMW NUTS 2 Region and 19.4% for the South East NUTS 3 Sub Region.

John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

314. To ask the Minister for Jobs, Enterprise and Innovation the way the regional or investment aid thresholds for different regions were calculated for the 2007-2013 period. [2471/13]

John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

315. To ask the Minister for Jobs, Enterprise and Innovation the amendments to the regional aid map that have been made from the period 2007 to date; and the rationale behind those amendments. [2472/13]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 314 and 315 together.

Under the terms of the 2007-2013 Regional Aid Guidelines, Ireland notified the Commission of its Regional Aid Map on 13 July 2006. The aid intensity thresholds for each category of region are predetermined in the Guidelines by the Commission. The purpose of regional aid is to support investment and job creation and encourage firms to set up new establishments in Europe's most disadvantaged regions. As a result, the thresholds reduce on a sliding scale basis, with the highest rates available to the most severely disadvantaged or geographically isolated regions of the EU.

Under the Guidelines, the Mid-West NUTS 3 sub-region lost the right to grant investment aid to large firms at the end of 2008. Following a Mid-term Review in 2010, the Commission accepted a case for the restoration of regional investment aid to the Mid-West sub region on the basis of the rapid increase in unemployment, exacerbated by the job losses in Dell and also the lower GDP per capita figures when compared to the national average and other comparable regions. This means that aid for large investment projects is again allowed for the counties in the Mid-West sub region (Clare, Limerick, North Tipperary) at an aid rate of 10%.

The details of the support in terms of aid intensity currently available for each county are available on my Department's website, and are also listed in the following tables.

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 FIRMS

MEDIUM FIRMS

SMALL FIRMS

SOUTHERN & EASTERN REGION

LARGE FIRMS

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

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

2As 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.

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