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Dáil Éireann debate -
Tuesday, 10 Oct 1995

Vol. 456 No. 6

Written Answers. - Access to Finance Scheme.

Robert Molloy

Question:

46 Mr. Molloy asked the Minister for Enterprise and Employment the reason additions to the transport infrastructure are specifically excluded from the subsidised loan scheme in view of the fact that this sector is suffering heavily from lower-taxed United Kingdom competition; and if he will make a statement on the matter. [14445/95]

I assume the subsidised loan scheme to which the Deputy refers is the access to finance scheme which is currently proving very successful in facilitating employment growth and company development in the small business and services sector. The access to finance scheme is the principal measure of the small business operational programme which is delivering a wide range of supports to the small business and services sector. The operational programme had to be approved by the EU Commission in advance as they are providing the bulk of the funding and as such had to meet a variety of EU requirements. One of these relates to the necessity of not infringing EU state aids regulations which provide for the application of an overall aid ceiling as well as the exclusion of state aid to sensitive sectors. Road haulage is one such sector specified in the state aid regulations and is covered by the state aid rules of the common transport policy which provides that the only basis on which aid may be approved by the Commission is "where aid is granted as an exeptional and temporary measure in order to eliminate, as part of a reorganisation plan, excess capacity causing serious structural problems and thus to contribute towards meeting more effectively the needs of the transport market".

I should add that, having received representations from road haulage interests, I am in contact with my colleague the Minister for Transport, Energy and Communications to see whether it is possible for certain types of projects related to the road haulage sector to be considered for inclusion in the access to finance scheme.

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