asked the Minister for Industry and Commerce the number of industries which have benefited from the employment grants given to industry under the Industrial Development Act, 1986; and if he will make a statement on the effectiveness of these grants.
Ceisteanna — Questions. Oral Answers. - Employment Grants.
1.
The Industrial Development (No. 2) Act, 1981, provided for the making of employment grants to international services projects by the Industrial Development Authority. This provision was retained in the Industrial Development Act, 1986, and the availability of employment grants was extended also to small industry projects.
I am informed by the Industrial Development Authority that 59 companies have been approved employment grants under the international services programme since the commencement of the 1986 Act. In addition employment grants have been approved for approximately 70 small industry projects.
For small industry projects employment grants are an alternative to capital grants and offer greater flexibility to promoters. They are particularly attractive to companies with high working capital requirements and to those wishing to use secondhand machinery which is not eligible for grant assistance. The grants are an important addition to the range of incentives available to manufacturing and internationally traded services industries in Ireland and have the benefit of making the industrial package more employment-orientated.
Would the Minister elaborate slightly on the 59 grants? How many jobs have emerged from that investment and what is the per capita cost per job? Does he propose to continue that scheme or to change it in any way?
The information regarding the number of jobs is not on the file since it was not part of the original question. I will communicate that information to the Deputy.
What is the Minister's attitude to the scheme?
I will be looking for value for money. In the past job projections have not been tied down in relation to grants. That position has been more or less rectified and in the future the number of jobs will be more tightly aligned to the money expended.
Will the Minister be looking for tighter relativities?
Absolutely.
So there will be some modifications.
I have not the exact number of jobs involved in the 59 projects.
I am talking about the Minister's professed desire to ensure closer examination of investment in terms of the number of jobs created and the putting in place of some kind of monitoring system.
Particular attention will be paid to closer monitoring, better value for money and money expended. There is also the cost-benefit analysis to the economy. An indigenous industry would naturally give a better overall return.
Would the Minister not agree that the whole purpose of facilitating the changes in the Industrial Development Act with reference to small companies was to allow them get money towards softer assets such as the purchase of secondhand equipment and that the vehicle of employment grants which facilitates small companies should be retained?
I agree.