Dáil Éireann debate -
Wednesday, 4 Nov 1992

Vol. 424 No. 9

Written Answers. - Investment within EC.

Bernard J. Durkan

Question:

49 Mr. Durkan asked the Minister for Industry and Commerce whether he believes that Ireland is likely to achieve equal opportunity in terms of attraction of investment within the EC; and if he will make a statement on the matter.

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

It is assumed that in referring to "equal opportunity in terms of attraction of investment within the EC" the Deputy is referring to the various State aids paid to manufacturing industry by member states.

Three of the most developed Member States (Germany, France and Italy) account for close on 70 per cent of all State aid within the EC, with the UK accounting for a further 10 per cent. Consequently, Ireland's primary objective is to see a reduction in the level and availability of these aids in richer member states, 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 Ireland take a more pro-active role towards achieving this objective and my Department is currently considering ways of giving effect to this. In particular, we now take the view that their effect on economic and social cohesion should be the predominant criterion in looking at State aid cases. In this regard, I welcome the EC Commission's recent acknowledgement of the importance of State aid control for cohesion purposes in its recently published 3rd Survey on State Aids.