asked the Minister for Industry and Commerce the total amount paid in grants to (a) Irish-owned industry in Ireland and (b) foreign-owned industry in Ireland; and the amount of grant per employee on average in (a) and (b) for the years 1986 and 1987.
Ceisteanna—Questions. Oral Answers. - Industrial Grants.
10.
I am informed by the Industrial Development Authority, Shannon Development Company Ltd. and Córas Tráchtála that the total amount paid in grants to Irish-owned industry in Ireland in 1986 was approximately £60 million. In the case of foreign-owned industry in Ireland, the total amount paid in grants was approximately £90 million.
I am informed by the Industrial Development Authority that the cost per job sustained in the seven-year period ending 1986 of new overseas industry was £22,550. The corresponding figure for Irish-owned industry was £26,730.
Figures in respect of 1987 have not yet been published by the State development agencies, but I understand informally that the indications are that the share of expenditure on indigenous industry visá-vis foreign-owned industry will show an increase over the 1986 figure, a situation in accord with Government policy.
Since the per capita grant to foreign-based industry in Ireland is almost twice the per capita grant to Irish industry, would the Minister agree that indigenous industries are suffering a handicap as a result of the way these grants are paid out? Do the Government intend to address this matter in 1988 given that, in the Minister's words, there were some improvements in 1987?
I should like to inform the Deputy that, arising out of our Programme for National Recovery and the targets set for the various development agencies, we already put in place earlier this year new policy directives and a new reorganisation of the IDA in relation to the operation of grants, the insertion of performance clauses and the insertion of parent-company guarantees to ensure that indigenous industries are more favoured than they used to be in the past.
In relation to the grant per capita to both indigenous and foreign-based industry in Ireland, could the Minister tell the House if there is constant monitoring of these grants to ensure that they give value for money and create productive jobs worth paying for?
The new initiatives that have been put in place will do what the Deputy has said in relation to value for money. Grants will not be paid and there will be no grant approvals other than those already in place. That is the way it is going to be. For too long we have been paying grants and giving grant approvals and this area has been tightened up significantly. There have been reductions in IDA grants and in their day-to-day spending and this clearly shows that they will have to get more for less. The IDA are responding in that regard and they have reorganised their organisation so as to achieve the targets set with less money.
Did I mishear the Minister's reply or did he say that the grant cost per job for indigenous companies was £26,000 as against £22,000 for foreign companies so that the foreign companies were less costly?
The figures I gave were for the seven-year period ending 1986. The cost per job sustained by overseas industry in the seven-year period ending 1986 was £22,500 and the corresponding figure for Irish-owned industry during the same period was £26,730.
Are Irish-owned industries more expensive in grant terms?
During that seven-year period.