Dáil Éireann debate -
Wednesday, 20 Mar 2002

Vol. 550 No. 4

Written Answers. - Industrial Development.

Phil Hogan

Question:

108 Mr. Hogan asked the Tánaiste and Minister for Enterprise, Trade and Employment the total State investment made in each region since June 1997 in respect of industrial development; and if she will make a statement on the matter. [8944/02]

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

I should point out that the provision of State support in respect of industrial development is a day to day matter for the industrial development agencies under the aegis of my Department and not one for which I, as Minister, would have a direct function. The relevant agencies are IDA Ireland, Enterprise Ireland, Shannon Development, FÁS and the county enterprise boards.

It is not clear from the text of the question what the term "region" means in this context. I assume the Deputy is referring to the Objective 1 and Objective 2 regions, which only took effect from 1 January 2000 under the provisions of the National Development Plan 2000-2006. On that basis, the information is therefore presented on the basis of the two regions from 2000 to 2001 and on the basis of all one region from 1997 to 1999. It should also be noted that figures for 1997 are cumulative for that year – it is not possible to provide a breakdown of the information from June 1997. Figures for 2002 are not yet available.

The information sought by the Deputy is contained in the tabular statements which are included in the Official Report. Agency expenditure in support of industrial enterprises takes the form of direct grants to companies and, where appropriate, financial support for capital expenditure, including property. All figures are shown in punt equivalents as this was the currency that pertained during the period 1997-2001.

Agency Expenditure (Grants to Industry) 1997-1999 (National Expenditure)

	Grants 1997	Grants 1998	Grants 1999
	£m	£m	£m
IDA Ireland	141.000	138.000	129.000
EnterpriseIreland	100.567	101.896	101.038
Shannon Development (SFZ only)	3.451	6.380	7.500
City & County Enterprise Boards (CEBs)	13.787	14.086	13.484
FÁS	37.75	43.033	52.63

Figures for IDA Ireland and Enterprise Ireland include transfers to other agencies, including Údarás na Gaeltachta and Shannon Development. Shannon Development figures, in the table above, relate only to the Shannon free zone – SFZ.

Agency Expenditure Grants to Industry (BMW Region)

2000-2001

Border, Midlands & West(BMW) Region	Grants 2000	Grants 2001
	£m	£m
IDA Ireland	38.000	14.176
Enterprise Ireland	23.907	24.493
City & County Enterprise Boards	4.500	6.000
FÁS	17.407	22.340

Agency Expenditure – Grants to Industry (S&E Region)

2000-2001

South & East (S&E)	Grants 2000	Grants 2001
	£m	£m
IDA Ireland	81.000	71.668
Enterprise Ireland	73.276	85.120
Shannon Development (SFZonly)	3.253	.050
City & County Enterprise Boards	7.100	11.000
FAS	55.908	77.34

It should be noted that, due to budgetary constraints, the Exchequer grant to Shannon Development was reduced to a nominal amount of £50,000 for 2001. Figures for IDA Ireland and Enterprise Ireland include transfers to other agencies, including Údarás na Gaeltachta and Shannon Development. Shannon Development figures in the table above relate only to the Shannon free zone – SFZ. IDA Ireland and Shannon Development also maintain industrial property portfolios for industrial development purposes. Exchequer expenditure on property by these agencies during the years 1997-2001 is detailed in the following table.

Agency Property Expenditure 1997-1999

(National Expenditure)

Property Expenditure	1997	1998	1999
	£m	£m	£m
IDA Ireland	9.0	16.0	26.0
Shannon Development	4.112	3.0	2.5

Agency Property Expenditure 2000-2001 (S&E Region)

Southern & Eastern (S&E) Region	2000	2001
	£m	£m
IDA Ireland	37.0	8.0
Shannon Development	1.314	N/A*

Agency Property Expenditure 2000-2001 (BMW Region)

Border, Midlands & West (BMW)	2000	2001
	£m	£m
IDA Ireland	16.000	20.000
Shannon Development	0.185	N/A*

* Not Applicable.

It should be noted that Exchequer funding to Shannon Development, for the purpose of capital expenditure on property, was made available directly from the Department of Finance until 2000, inclusive. This funding was phased out with effect from 2001 and Shannon Development property expenditure is now funded entirely from the company's own resources.