asked the Minister for Industry, Trade, Commerce and Tourism when he proposes to introduce legislation to designate areas in Cork city for increased grant aid.
Ceisteanna—Questions. Oral Answers. - Cork City Grant Aid.
8.
All changes in State aids to industry must be notified in advance to the EC Commission in accordance with Article 93 (3) of the Treaty of Rome.
The Commission is at present considering the formal notification of our intention to designate certain industrial estates in the greater Cork area for higher grant purposes and a decision is expected within the next month. I propose to designate these industrial estates immediately I receive the Commission's agreement.
Is the Minister aware that claims have been made in recent times by Opposition Members that jobs are being lost in Cork because of the delay in implementing this scheme? Will the Minister rebut such statements?
The Deputy is a good little boy.
This matter is being dealt with as speedily as possible but there are certain requirements for changes of this nature to have EC consent. Immediately we made the decision to do this we submitted an application to the EC. I would be perfectly happy to pursue this matter with the EC if I thought there was any question of unreasonable delay on their part in dealing with it but, as it happens, I am quite confident that we will have a decision fairly soon.
When did the Minister apply to the EC to have this necessary legislation dealt with?
Virtually immediately after the decision was taken. There was no delay.
Is the Minister saying that it was done last May?
No.
The decision was announced on 11 May 1984. How soon after that date did the Minister apply?
A formal notification of our intention was made to the EC Commission on 10 July 1984.
Will the Minister say if the delay of two months from the date of the announcement to the date of the application to the EC was detrimental or otherwise to Cork?
I do not think it was detrimental because in practice this change is something that is almost certainly — unless there is a problem with the EC — going to come into effect. In any event, people making industrial projects know that there is a certain leave time between having the project ready and the grant falling to be paid. For instance, if we had been able to designate those estates the day after nobody would have been in a position to avail of them for about six months because it would have taken that amount of time to bring forward the type of projects that would avail of them, that would not have gone ahead if they were not there. It is only those that would not have gone ahead without designation that are in any sense delayed by not designating. The others would have gone ahead in any event.
Will the Minister agree that the non-implementation of the scheme to date is not affecting the IDA's programme in attracting industry to the Cork region, an impression that has been created in Cork?
Let us be realistic about this. Clearly this measure is going to give additional help to the IDA's industrialisation programme in Cork. I would agree with all concerned that the sooner it is introduced the better because it will mean that that acceleration or addition to the IDA activities will come on stream sooner. We will pursue this as vigorously as possible and I am happy that we will have a decision within a reasonable time in regard to this.
This has been going on for five months already.
Is the Minister aware that more than three years ago, before the impact of the disastrous Government policies on Cork surfaced as they have done, the EC Commission had in train proposals to support developments for industry in Cork?
What did the Deputy's party do about it in 1982?
I can refer the Minister to the names of people in the various directives. In view of the fact that the Commission more than three years ago announced that they were ready to help Cork when they needed such aid less than they do now how can the Minister condone the Government's delay in seeking the urgent support and recognition from the Commission?
I do not accept that there has been any undue delay in regard to this matter. In making a submission to the EC in regard to designation it is necessary to produce a fairly substantial amount of socio-economic data in support of the application. It is not simply a question of making a decision on 10 May and writing a two-line letter to Vice-President Davignon, or whoever, saying. "By the way, Stevie, we want this thing through next week". Things cannot be done that way.
I should like to refer the Minister to a gentleman named Crowe who knows more about regional policy——
There are ways of doing these things and the Minister should be aware of them.
I did not interrupt the Deputy when he was speaking. We are doing something about the problem but the Deputy and his colleagues when in office only talked about it.
Will the Minister agree that it is five months since the Government announced their decision to redesignate part of Cork? Will the Minister agree that a similar redesignation application in 1982 was dealt with in a much shorter time at EC level? The fact that the Minister has already allowed a delay of two months in effect puts the date of a decision back.
The Government do not know their business.
Is the Minister aware that a decision can be obtained in a less complicated fashion than he is trying to suggest to the House?
I do not accept that.
The Minister should look at the records of Dublin.
The EC are particularly vigilant in regard to new forms of State aid because they want to avoid a situation where rich countries compete with poorer countries in the EC for the attraction of investment by giving additional aids that are beyond the purse of the smaller countries. Any applications for designation have to meet stringent requirements. We are one of the poorer countries in the EC and it is in our interest that they should be vigilant in this matter. I do not accept there has been any delay.
It is five months.
The whole country will be classified as a disaster area before the year is over.