Phil Hogan
Question:103 Mr. Hogan asked the Tánaiste and Minister for Enterprise, Trade and Employment if there will be an industry programme in the National Development Plan, 2000-2006; and if she will make a statement on the matter. [11729/99]
Written Answers. - Industrial Development.
Decisions have yet to be taken on the structure of the forthcoming national development plan, due in part to continuing discussions with the EU Commission on the approach to be adopted in areas to be co-financed from the community support framework, CSF.
The number of operational programmes under the CSF is to be reduced, partly due to a reduction in Structural Funds, and it may be that support for enterprise development will form part of a broader operational programme for productive investment. While we no longer use Structural Fund moneys to co-finance inward investment, financing for inward investment will, of course, form part of the national development plan.
Phil Hogan
Question:104 Mr. Hogan asked the Tánaiste and Minister for Enterprise, Trade and Employment the industrial incentives which will be available for companies which establish in the south-east region in the context of regionalisation proposals and the National Development Plan, 2000-2006. [11730/99]
Assistance to companies establishing in the south-east, and elsewhere, after January 2000 must conform to the new EU regional aid guidelines – RAGs – announced at the end of 1997. Under these guidelines the south-east has ‘C' status and as such will be subject to a ceiling of 20 per cent of investment costs plus a top-up of up to 10 per cent for SMEs. The present limit is 57 per cent of investment costs but in practice our grant levels tend to be much lower than this. The reduced aid limits will apply across the EU.
The specific limit to apply in each of the Irish ‘C' regions, subject to the 20 per cent ceiling, is at present being negotiated with the EU Commission and transition to the new limits may take place over a four year period.