asked the Minister for Industry and Commerce if he has satisfied himself with the two-tier grant system being operated by the IDA in relation to small industry; and if he will make a statement on the matter.
Written Answers. - IDA Grant System.
50.
In 1987 I ordered a review of the incentive package for small industry. Following this review a new two-tier system of grant assistance was put in place at the beginning of this year and I am satisfied that the system is operating satisfactorily.
The new system simplifies grant procedures for very small firms at an early stage of development and thereby encourages increased growth in the sector. The basic level of assistance is in the form of employment grants up to £5,000 for each new job created in worth-while projects in viable small firms employing up to 15 people. A more extensive range of incentives, including capital grants, is available to firms that demonstrate strong or exceptional growth potential.
I understand that in the first nine months of the year there has been an increase of 23 per cent in the number of jobs approved under the Small Industries Programme compared with the same period last year, with a reduction of 9 per cent in the average grant per job.