Dáil Éireann debate -
Wednesday, 3 Jun 1992

Vol. 420 No. 6

Written Answers. - Job Creation Costs Study.

Jim O'Keeffe

Question:

46 Mr. J. O'Keeffe asked the Minister for Industry and Commerce whether any comparative study has been carried out of the costs involved in encouraging industrial jobs in other countries; and the way in which the figures compare with ours.

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

It is assumed that the Deputy's Question refers to State aid paid to manufacturing industry. In an EC context the most comprehensive source of comparative data available on the volume of State aids on offer are EC Commission surveys published in 1989 and 1990 and which covered the periods 1981-1985 and 1986-1988 respectively. A third survey, covering the period 1989-1990 is currently being complied by the Commission.

The 1986-1988 Survey shows that the Yearly Averages of Total aids to manufacturing in those years in the Community as a whole was 33,714 MECU (approximately IR£26 billion).

The following is a breakdown by Member States:

	Million ECU
Belgium	1,054
Denmark	275
Germany	7,639
Greece	1,043
Spain	2,930
France	5,664
Ireland	408
Italy	9,563
Luxembourg	34
Netherlands	1,070
Portugal	462
UK	3,570
EUR 12	33,714

Three of the most developed Member States (Germany, France and Italy) accounted for close on 70 per cent of this, with the UK accounting for a further 10 per cent. Consequently, Ireland's primary objective in so far as State aids is concerned is to see a reduction in the level and availability of State aids in the richer countries, both to make our aids more attractive by comparison and to allow us to minimise the cost of our aids to the Exchequer.

The Culliton Review Group recommended that we take a more pro-active role towards achieving this objective and my Department is currently considering ways of giving effect to this.