Dáil Éireann debate -
Tuesday, 22 Jun 1993

Vol. 432 No. 6

Written Answers. - Job Creation Grants.

Jim Mitchell

Question:

34 Mr. J. Mitchell asked the Minister for Enterprise and Employment if he has satisfied himself that the present grant payments are sufficiently linked to actual job creation achieved; the proportion of grants initially approved that were not paid because job targets were not met; and if he will make a statement on the matter.

Minister for Enterprise and Employment (Mr. Quinn)

IDA grant payments are linked to the job creation performance of companies in a variety of ways. In the case of capital grants, all new grant agreements since 1988 provide for a formal annual review of a company's growth and job creation performance vis-à-vis agreed targets. The release of further grants, or the revocation of grants already paid, is then based on the results of this review. With respect to employment grants, half of the moneys are paid to the company on creation of the job and half one year later, if the job is still in existence.

Some grants which have been approved by the IDA are never paid out or are not paid according to the original timescale. Such instances arise for a variety of reasons — the project does not start at all, for example, or it proceeds at a slower rate than originally envisaged, the company does not draw down its approved grant aid, and so on. I understand that, due to the variety of reasons why grants approved might not be paid, the IDA is not in a position to analyse the non-payments which are attributable only to a company not achieving its job performance targets.