Dáil Éireann debate -
Tuesday, 30 Jun 1998

Vol. 493 No. 3

Written Answers. - Grant Aid.

Michael D'Arcy

Question:

30 Mr. D'Arcy asked the Tánaiste and Minister for Enterprise, Trade and Employment the impact, if any, the changes in funding grants by the IDA as required by the EU Commission is having on grant allocations; and if she has instructed the IDA to conduct a policy of rationing grants in view of future changes in maximum grant levels. [15745/98]

Seán Barrett

Question:

66 Mr. Barrett asked the Tánaiste and Minister for Enterprise, Trade and Employment the impact, if any, the changes in funding grants by the IDA as required by the EU Commission is having on grant allocations; and if she has instructed the IDA to conduct a policy of rationing grants in view of future changes in maximum grant levels. [15744/98]

Nora Owen

Question:

94 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment the impact, if any, the changes in funding grants by the IDA as required by the EU Commission is having on grant allocations; and if she has instructed the IDA to conduct a policy of rationing grants in view of future changes in maximum grant levels. [15755/98]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I propose to take Questions Nos. 30, 66 and 94 together.

IDA Ireland grants are, at present, entirely funded by the Exchequer. During the last year, the modest EU co-financing from Structural Funds for the Inward Investment Sub-Programme for the 1994-99 Industry Operational Programme was terminated by my Department and EU funds transferred to other programmes.

Under new Regional State Aid Rules adopted by the Commission in December 1997, IDA Ireland schemes will operate under maxima yet to be determined with the Commission.

It is expected that the new ceilings for Ireland will be agreed with the Commission in the first half of 1999.

I would emphasis that, in most cases, IDA Ireland aid levels are well within the existing limits. It is my intention that, regardless of any future changes in maximum grant levels, Ireland will continue to be in a position to attract the high levels of inward investment by virtue of the continuing attractiveness of Ireland to foreign companies in terms of grant packages, a vibrant and pro-business business environment and our highly educated English speaking workforce.

As regards the notion of rationing grants, IDA Ireland is obliged to ration grants as part of its normal operations to ensure that the country receives value for money for public supports to inward investment.