Dáil Éireann debate -
Tuesday, 14 Dec 1999

Vol. 512 No. 6

Written Answers. - Industrial Development.

Cecilia Keaveney

Question:

94 Cecilia Keaveney asked the Tánaiste and Minister for Enterprise, Trade and Employment the advantages an Objective One region has over non-Objective One regions for attracting industry; and if she will make a statement on the matter. [27114/99]

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

The Objective One or BMW region, has great advantages in terms of excellent people and also benefits from the same favourable tax regime as the rest of the State. However, as was acknowledged in the national development plan, the southern-eastern region – Objective One in transition – is considerably more developed economically than the BMW region. This is particularly the case in the areas of physical infrastructure such as transport and telecommunications. To this extent the transition region can be said to have a definite advantage for attracting mobile investment.

However, the dramatic development of Galway city and its hinterland, together with increased investment in towns like Sligo, Ballina and Castlebar, show that locations in the Objective One region can attract mobile projects. It is my intention that they should be able to attract an even greater share in the planning period to 2006.

Recognition is given to existing regional disparities in the new regional aid limits for assistance to enterprise recently agreed with the EU Commission, a copy of which follows for information. I am confident that the new limits will be of considerable assistance to the development agencies in promoting a greater regional balance in economic activity.

A central feature of the NDP is investment aimed at removing infrastructural disadvantages, but public investment and location incentives are only one element in genuine, sustainable regional development. Government is but one important participant in a much more complex process and much will depend on the response of the individual regions and localities

Table

Grant aid intensities (NGE%) for new industrial investment for regions in Ireland

‘C' Region	2000*	2001*	2002*	2003*
South-East	37	31	26	20
Mid-West	37	31	26	20	plus
South-West	37	31	26	20	10%
Mid-East	35	29	23	18	for
Dublin	17.5	17.5	17.5	17.5	SMEs
‘A' Region
Border,Midlands, West	40	40	40	40	plus 15%for SMEs

* For regions south east, mid west, south west and mid east, the operative date for application of the new intensities is 31 December each year. For Dublin and the A region, the operative date is 1 January. Accordingly, the intensity applicable during the year 2000 in the regions south east, mid west, south west and mid east is 40%.