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Dáil Éireann debate -
Thursday, 3 Dec 1998

Vol. 497 No. 7

Written Answers - Industrial Development.

Michael Ring

Question:

64 Mr. Ring asked the Tánaiste and Minister for Enterprise, Trade and Employment the way in which she will ensure that the incentives for job creation and inward investment are not disproportionately directed to areas with existing superior infrastructure and political influence which would further discriminate against the qualifying regions whose statistics have been used in the past to secure Objective One status in the event of acceptance by Eurostat of the Government's intended proposal. [25852/98]

The Deputy may be reassured that our incentives for investment, be it domestic or from overseas, are demand driven. In relation to domestic industry, location is determined by where businesses are being started or whether they are expanding. These decisions are made by businesses, not by the Government.

In the case of overseas investment, the agencies introduce companies to various locations with particular strengths or suitable conditions for the projects. Grant levels available are negotiated based on the specifics of the project and on the location. Again, the ultimate decision on where to locate is made by the individual enterprise and not by either the agency or the Government. Every effort is, of course, made to persuade enterprises to consider locating in areas lagging in development or experiencing particular problems of industrial restructuring.
The Deputy will appreciate that regional development is partly about ensuring a good quality of infrastructure everywhere. In such circumstances, individual regions would then have a chance to demonstrate their own strengths and potential when attempting to attract or encourage enterprise development. It is the Government's policy to ensure that the most appropriate support is made available, having regard to the need to secure the economic benefits that are the motive for giving exchequer grants, etc.
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