Seamus Kirk
Question:113 Mr. Kirk asked the Minister for Enterprise and Employment if he will establish an industrial zone in the Dundalk/Newry catchment area; and if he will make a statement on the matter. [1713/95]
Written Answers. - Establishment of Industrial Zone.
I presume that the Deputy's question relates to the provision of special incentives for the attraction of industrial development to the area referred to.
In so far as the Deputy has in mind that industrial projects locating there qualify for a higher rate of grant, I am afraid I have no plans to propose designation of the area for such purposes under the Industrial Development Acts. The approval of the European Commission would in any event be required for any such proposal.
Under the designation system, industrial projects in designated areas are eligible for a maximum fixed asset grant rate of 60 per cent. This contrasts with projects in non-designated areas where the maximum grant rate available is 45 per cent. In addition, industries in designated areas may get a two thirds remission of rates of ten years at the discretion of the local authority. However, the fact of designation does not automatically guarantee support at the maximum rate, nor does it guarantee rates remission.
The importance and impact of designation in industrial policy has lessened in recent years and maximum rates of fixed asset grants are seldom given. The grant level proposed for any project increasingly depends upon the economic benefits in individual projects. There is also a major shift away from fixed asset grants to supporting other areas of perceived business weakness e.g. marketing, R & D, and management development. Support and grants in these areas are not differentiated on the basis of designation.
I believe that the primary role of our industrial policy which is to secure as many sustainable jobs as possible within the economy can be achieved through the optimum use of the existing range of industrial supports, rather than seeking to extend this range to particular areas. I am assured by the Industrial Development agencies, Forbairt and IDA Ireland, that they will continue to use the very wide range of supports at their disposal to promote the area referred to by the Deputy for further industrial development.
The Deputy may also have in mind that the area or part of it be designated under the urban renewal scheme for which my colleagues the Ministers for Environment and Finance have primary responsibility. I understand that new areas of Dundalk are included in the new scheme which was announced in July 1994. I am informed that the new scheme provides for special tax break and rates remission incentives aimed at encouraging the location of industrial units in the areas designated. These incentives would be additional to the supports available from the industrial development agencies for eligible projects.
Finally, the area can be expected to benefit in general economic terms from the various initiatives which the Deputy will be aware are currently under consideration as part of the general response to the Peace Process.