asked the Minister for Industry and Commerce the extent to which the reduction in IDA grant-aid for the current year is more a reflection of declining business activity rather than a cut in grant levels.
Written Answers. - IDA Grant-aid.
24.
The primary aim of the Government's economic policy is to create an environment conducive to growth and investment. This the Government have done through their rigorous action on the public finances. The Government's budget strategy necessitated an equitable spread of expenditure reductions across all sectors of the economy. The Industrial Development Authority, like other State agencies, contributed to the achievement of the Government's budget targets through reduced expenditure allocations in both 1987 and 1988.
On returning to office in March 1987 the pipeline of projects in manufacturing industry was almost empty. This situation has been substantially reversed as a result of renewed confidence in the economy. This is reflected in a 14 per cent increase in IDA assisted manufacturing investment in 1987 and the creation of 11,000 new first time jobs.
The IDA target for actual job creation over the next three years is 37,000 new jobs. This represents a 20 per cent increase on the average activity levels of the past five years. I am confident that not only will this target be achieved but it will occur against a backdrop of reduced resources reflecting more selective targeting of those resources.