Vol. 449 No. 2
27 Miss Harney asked the Minister for Enterprise and Employment his views on whether Irish companies are given substantially less grant-aid per job than foreign companies locating in Ireland in view of the fact that the State demands equity in Irish companies which is not sought from foreign companies; and if he will make a statement on the matter. [3389/95]
Over the years there has tended to be a significant disparity in the sustained cost per job for overseas and indigenous industry, although in recent years there has been a noticeable closing of the gap. The most recent figures show that the cost per job sustained in Forbairt companies in the period 1988-94 was £9,930 at constant 1994 prices, while that for IDA Ireland companies was £12,786.
To the extent that Forbairt attempts to achieve repayability and value for money in assisting indigenous companies, in line with the Culliton recommendations endorsed by the Government, this would tend to reduce the net cost to the Exchequer of these jobs vis-á-vis jobs in overseas companies.
The overall higher cost per job figure for overseas industry reflects the fact that IDA Ireland operates in an intensely competitive world market for mobile investment and that foreign industry projects tend to be more capital intensive reflecting a higher level of technology and associated cost.
Ultimately, the cost per job for foreign industry is a function of the IDA having to pay the "going rate" to secure projects, a point the Culliton report also recognised. However, I would emphasise that State financial support for inward investment is not given at the expense of support for the development of indigenous industry which is the primary focus of industrial policy. The commitment to the development of indigenous industry is reflected in the resources being allocated to indigenous industry in the new operational programme for industrial development which I announced recently. Over the period of the programme, 1994 to 1999, funding to improve the capabilities of indigenous industry will be increased by 29 per cent compared to the previous programme, whereas spending on inward investment will decline by 18 per cent.
