andMiss Harney asked the Minister for Industry, Trade, Commerce and Tourism if he will ask the Industrial Development Authority to approve a modernisation scheme grant to a firm (details supplied) in view of the fact that other newspapers have availed of similar grant-aid and that the growing share of the Irish market is being taken up by non-Irish daily and Sunday newspapers.
Ceisteanna—Questions. Oral Answers. - Grant-Aid for Firm.
12.
In accordance with the provisions of the Industrial Development Act, the question of providing grant aid to any industrial sector or to any particular firm is a matter for the Industrial Development Authority and under the legislation there is no provision for direct intervention by me in such matters.
Following its earlier announcement on 14 March 1984, the IDA issued on 18 April 1984, a further statement as follows:
The Industrial Development Authority at its meeting yesterday, 17 April, 1984, considered its policy on grant assistance to the newspaper industry. The Authority re-affirmed its refusal to approve capital grants for essentially re-equipment type purposes. As previously indicated (14 March, 1984) the IDA is prepared to consider assisting new proposals with clear economic benefits such as extra export earnings. In addition, the Authority is prepared to make a limited contribution to the re-training of key operatives in the use of computerised photo composition equipment, because of the strategic importance of moving to the new technology. The IDA would expect the major portion of the re-training funds to come from the European Social Funds or the industry itself.
I am satisfied that the present policy of the IDA on the appropriate criteria governing assistance to the newspaper industry was adopted after thorough appraisal and discussion of all the relevant circumstances.
Is the Minister aware that other newspapers receive substantial adaptation grants? Is he further aware that a massive number of foreign newspapers are taking a greater share of the market? Is he allowing the IDA to capitulate in the face of this increased competition? The allegation of dumping has been referred to here today and that also is an element in newspaper competition. As a consequence, will he initiate immediate discussions with the IDA to allow this group of newspapers to have the same level of competitiveness with other newspapers, especially in relation to foreign imports?
It is the primary responsibility of the IDA to make decisions with regard to the industrial sector. The Deputy referred to other newspapers getting re-equipment grants. As the Deputy is aware, these grants were terminated by a Government decision on 23 December 1981. However, during the currency of the re-equipment grants scheme, the IDA worked closely with the group of newspapers mentioned by the Deputy in an effort to have a development plan drawn up which would permit grant assistance to be provided for the re-equipment and modernisation of the operation. Despite streneous efforts and prolonged discussions with the company management from 1971 to 1978, the company failed to provide the IDA with any future plans.
The company now have proposals before the IDA for adaptation and modernisation of their plant. In those circumstances, would the Minister request the IDA to look favourably at this application? I should also like the Minister to look at the growing share of the market which has been cornered by foreign newspapers, daily and Sunday. Is he satisfied that this should be allowed to continue?
I do not like repeating myself but this is primarily the responsibility of the IDA. There have been allegations of dumping of foreign newspapers and, if proof can be supplied, the matter will be taken up with the Commission in Brussels. With regard to a change of policy by the IDA with regard to grant aiding industries, I will have the Deputy's opinions brought to their attention.