Dáil Éireann debate -
Tuesday, 9 Feb 1999

Vol. 500 No. 1

Written Answers - Rural Renewal Schemes.

John Perry

Question:

193 Mr. Perry asked the Minister for Finance the reason for the delay on the agreement of terms between his Department and the EU Commission for the commercial development of the rural renewal scheme; and if he will make a statement on the matter. [3216/99]

John Perry

Question:

194 Mr. Perry asked the Minister for Finance if his attention has been drawn to the confusion that has been caused to the rural renewal commercial scheme in view of the fact it was announced in the budget that this scheme would be extended; if he will clarify the exact position without making any reference to the urban renewal scheme; and if he will make a statement on the matter. [3217/99]

Minister for Finance (Mr. McCreevy)

I propose to take Questions Nos. 193 and 194 together.

In my Budget Statement of 2 December 1998 I announced that I would look at the possibility of extending the scheme on a targeted basis to other areas when EU Commission approval for the business elements of the scheme was received.

The latest position is that the Commission has written to my Department with several queries arising from our initial application. The reply to them is currently being prepared. Some of the questions are of a standard nature relating to the types of enterprises that may be permitted under EU state aids rules. Other questions relate to the interaction of operating aid with the new regional aid guidelines published by the Commission, including the link between the nature of the handicaps addressed by the operating aid and the nature of the aid. There are further questions about aid intensity ceilings. It will be necessary to have discussions between my Department, and the Departments of the Environment and Local Government and Enterprise, Trade and Employment before finalising the Irish response to all questions.

I would stress that this is part of the normal process associated with obtaining EU approval and that the procedure may take some time to complete. Any final decision made by the Commission in this context will be announced at the appropriate time.