Marian Harkin (Sligo-Leitrim, Independent)
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157. To ask the Minister for Enterprise, Trade and Employment the way that small and medium enterprises in areas of the country will benefit from higher aid intensity (details supplied);; and if he will make a statement on the matter. [18329/22]

Leo Varadkar (Dublin West, Fine Gael)
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The revised Regional Aid Guidelines (RAG), adopted by the Commission on 19 April 2021 and in force since 1 January 2022, enable Member States to support the less advantaged European regions in catching up and reducing disparities in terms of economic well-being, income and unemployment – cohesion objectives that are at the heart of the Union. They also provide increased possibilities for Member States to support regions facing transition or structural challenges.

The RAGs require each Member State to have a map identifying areas where Regional Investment Aid can be granted. The RAGs also set out the criteria that Member States must use to identify areas on a Regional Aid Map eligible for regional investment aid.

The Commission approved Ireland's Regional Aid Map on 22 March 2022 and the Map identifies areas eligible for regional investment aid. The Map also establishes the maximum aid intensities that apply in eligible area. Aid intensity is the maximum amount of State aid that can be granted per enterprise, expressed as a percentage of eligible investment costs.

The aid intensity rate that applies to an area on the Map depends on the criterion of the RAGs under which that area has been approved for inclusion on the Map. The base rate of assistance for an area eligible under Criterion 1, of the relevant section of the Guidelines, is 15%. The base rate of assistance for an area eligible under Criterion 5 or Criterion 3 (islands), is 10%. The base rate applies to all enterprises, irrespective of their size. The maximum aid intensities can be increased by 10% for investments made by medium-sized enterprises and by 20% for investments made by small enterprises, for their initial investments with eligible costs up to €50 million.

While the Map identifies areas where Regional Aid can be granted, inclusion of an area on the Regional Aid Map does not in itself mean that Aid will be granted in that area, furthermore, an enterprise operating in an excluded area can still be supported in a number of other of ways by Enterprise Ireland, IDA or other State Agencies or Departments.

A full list of the LEAs included on the map and the base aid intensity rates are provided in the tables below.

LEAs included under Criterion 1 on the Map

Inhabited Islands included under Criterion 3 on the Map

LEAs included under Criterion 5 on the Map