Dáil Éireann debate -
Wednesday, 7 Oct 1992

Vol. 423 No. 1

Written Answers. - Grant Aid to Industry.

Jim Higgins

Question:

54 Mr. J. Higgins asked the Minister for Industry and Commerce if he will outline the amount of grant aid paid to (a) foreign owned industries and (b) Irish-owned industries from 1980 to 1990; the number of such industries which subsequently closed down or went out of business; the amount of grant-aid paid in such cases; and if he will make a statement on the matter.

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

An analysis by my Department for the period 1981 to 1990 inclusive shows that a total of £1,626 million in 1990 price terms was paid in grants by the IDA, SFADCo and Údarás na Gaeltachta. Of this total £957 million went to overseas firms and £669 million went to Irish owned firms.

2,243 grant aided firms which existed at end 1980 or which established in the period 1981 to 1990 had closed by end 1990. 331 of these firms were overseas owned and 1,912 were Irish owned.

The grant payments in respect of these closed firms were £161 million in the case of overseas firms and £152 million in the case of Irish owned firms.

An Bord Tráchtála provides grant assistance to firms which have their marketing control function located in Ireland: it does not discriminate on the basis of the nationality of ownership of firms. ABT estimates that in the period 1980 to 1990 a gross total of £42.2m was paid out in marketing grants. Of this amount, some £5.4m has been repaid or is due to be repaid, leaving net grant payments for the period at £36.8m. The Bord estimates that some 10-15 per cent of grant-aided companies subsequently ceased trading, with the majority of these firms receiving smaller grants and employing less than 25 persons. It is also estimated that some £3.5m in grant aid was paid to companies which subsequently ceased trading.