James Leonard
Question:55 Mr. Leonard asked the Minister for Finance if it is intended to support small and medium-sized industries in the Border region which have a cross-Border content under the INTERREG programmes.
Written Answers. - Border Industries Support.
The joint Ireland Northern Ireland INTERREG programme, involving total expenditure of over £100 million of which £58 million is expected to come from the EC Structural Funds, finances actions under five sub-programmes. These five sub-programmes are tourism, agriculture, forestry, fisheries, human resources, environmental protection and regional development. All of these sub-programmes by encouraging economic development in the Border regions, support industry in one way or another in the areas concerned.
The main EC co-financed support for industry in Ireland is provided under the Operational Programme for Industrial Development 1989-1993 (Industry OP) which encompasses assistance for a broad range of measures including capital grants, research and development, marketing, training and employment grants. This OP covers all of Ireland including the Border counties and provides the main thrust for support for small and medium-sized industries in the internationally traded good and service sector.
As regards small and medium-sized industries, INTERREG is intended to support and complement the measures taking place under the Industry OP.
The economic development measures under INTERREG has as one of its objectives the development of SMEs in the Border areas. In Ireland projects with a genuine cross-Border content which provide a development impact in the INTERREG area and which meet the standard criteria of the appropriate development agency, e.g. IDA, FáS, CTT etc. may be considered for support in the form of, for example, grants for joint marketing or for the sharing of R & D facilities. Aid rates to such projects will vary depending on the recipient body and the nature of the project and upon the availability of resources under the programme. For private sector firms the aid rate will be below 50 per cent.
As regards Northern Ireland only, INTERREG will part finance Selective Financial Assistance Packages to SMEs in the Border areas. There is no provision on the Southern side of the Border for capital and employment grants of this nature as such assistance is already provided for under the Industry OP.