Dáil Éireann debate -
Thursday, 30 Jan 1992

Vol. 415 No. 2

Written Answers. - Business Expansion Scheme.

Bernard J. Durkan

Question:

51 Mr. Durkan asked the Minister for Industry and Commerce if he will outline (a) the total number of applications submitted to the various industrial agencies by community or other groups under the business expansion scheme for advance factory buildings, (b) the number of these applications which have been approved for business expansion scheme funding, (c) the number which have been refused to date and the most common reasons for refusal, (d) his policy toward such groups endeavouring to promote local enterprise and self reliance, (e) whether there is currently a shortage of advance factory space in the east region, (f) if he has been requested to amend the business expansion scheme guidelines for advance factory buildings to facilitate proposals for local enterprise submitted to the IDA, (g) whether his attention has been drawn to an application to the IDA under this heading from Clane Community Council, Clane, County Kildare, (h) the response to date to this application and (i) whether he expects to revise the guidelines to facilitate a re-examination of the case in view of the need to respond positively to job creation proposals; and if he will make a statement on the matter.

Minister for Industry and Commerce (Mr. O'Malley)

There have been three formal applications for provision of advance factory buildings under the business expansion scheme. One of these proposals was approved by the IDA. The other two applications were unsuccessful because they did not meet with the criteria established for the scheme.

I have been advised by the IDA that in the east region as a whole, there is an adequate supply of industrial buildings with the exception of west and north-west Dublin, where IDA are actively pursuing provision of such buildings by the private sector. I, of course, support development groups endeavouring to promote local enterprise and self-reliance.

I am aware of the application in respect of Clane. I am informed by the IDA that this application was unsuccessful because Clane is not more than 25 miles from Dublin city and is less then ten miles from Naas whose population is greater than 10,000 people, which are both relevant criteria for the scheme.

I do not propose to seek any revision in the BES guidelines as applied to the construction of advance factory buildings. In arriving at this conclusion, I have taken account of the advice of the IDA and the need to restrict tax incentives in the context of the overall Government programme of tax reform. The BES facilities for advance factories are intended only to be used to encourage construction in more remote rural areas away from areas of large population concentration.