asked the Minister for Industry and Commerce if the grantgiving powers of any of the State agencies under his aegis will be in any way affected by the reform of the Structural Funds currently being undertaken by the European Community; if the reformed Structural Funds will allow individual enterprises in Ireland to apply directly to the Commission for funds, bypassing agencies here; and if he will outline the type of assistance that the Commission proposes to provide under its most recent proposals (details supplied) in this regard.
Ceisteanna — Questions Oral Answers - Reform of Structural Funds.
61.
The EC Commission's proposals for the co-ordinating and implementing regulations for the Structural Funds are currently under consideration by the Council of Ministers. Until such time as their discussions are completed it will not be possible to say precisely what new arrangements will apply.
I do not expect that the reform of the Structural Funds will materially affect the grant-giving powers of the State agencies under my aegis. As the Deputy will be aware, a much greater proportion of the industry budget is now being directed towards areas of perceived weakness of Irish industry such as management development, marketing expertise and technological capability as well as the direct support of new job creation. It is my intention that all of the main measures and programmes being undertaken by my Department and their State agencies will be included in the national plan which is being drawn up for submission for Structural Fund assistance.
Normally assistance from the funds will come through the part financing of national aid schemes. The Community may directly support enterprises which supply services to small and medium-sized enterprises and FEOGA projects. It is unlikely that the Community would wish to directly support an investment in industry which is not being supported by the State. The present arrangement whereby all applications for support from the Structural Funds must be submitted through the national authority will continue.
The Commission has proposed that Community funding would be available towards, inter alia, the following activities:
From the Regional Development Fund:
—investment in firms which leads to the creation or maintenance of permanent jobs;
—infrastructural measures which contribute to economic development;
—specialist measures to promote small and medium-sized enterprises.
From the Social Fund:
—vocational training measures;
—recruitment subsidies.
From the FEOGA Guidance Fund:
—measures to imporve the marketing and processing of agricultural, forestry and fishery products.
Assistance from the funds towards measures undertaken in the less developed regions, which includes Ireland, may be as high as 75 per cent of public expenditure depending on the financial capacity of the member state and the seriousness of the regional or social problems to be tackled. It will be the Government's aim, because of our development needs, to achieve the highest rate of Community support.
I would ask Deputy Bruton to co-operate with the Chair in respect of my desire for brevity so that I may deal with the questions nominated for priority before the prescribed time of 3.45 p.m. Some Deputies do not seem to understand the request the Chair has made.
I certainly do.
Will the Minister indicate if the criteria outlined by him or the Commission whereby the Commission will give aid for firms which create jobs includes sectors which are not currently grant-aided by the IDA, namely, the services sector and, if so, if he will be extending the remit of the IDA to include the entire scope of the proposed aid from the Commission under the proposal?
It is not envisaged at this stage anyway.
What is not envisaged?
Question No. 62, please.
What is not envisaged?
I answered the question.
I have called the next question.
That is a ridiculous answer.