Vol. 82 No. 4
On the section, the insertion in subsection (4):
Notwithstanding anything in this section the Government may in respect of a particular industrial undertaking permit the making by the Authority of grants under subsection (1) of this section ...
Why is the word "may" used and not "shall"? I thought the whole purpose of the Bill was to give the IDA powers to give grants up to £850,000 without reference to the Government. Maybe I am misreading the subsection or it may just be an enabling clause.
The Bill says:
Notwithstanding anything in this section the Government may in respect of a particular industrial undertaking permit the making by the Authority of grants under subsection (1). ...
That is the exactly the same wording as the original Act except for the substitution of the new figure. It is reasonable because in the final analysis the Government must take the responsibility for decisions made by the IDA. It is correct that the Government should have the power, if they see fit, to restrict the IDA's authority at any particular time should some difficult situation arise. It would not be wise for the legislation to make it mandatory on the Government to delegate such powers to the IDA without any comeback.
I accept that, although it seems contrary to the purpose of the Bill. In the last two lines it refers to the percentage limit specified in subsection (2) of this section. What are the percentage limits?
I will read subsection (2) of section 38 of the Industrial Development Act, 1969:
The amount of a grant under this section shall not exceed 35 per cent of the cost of a fixed asset in the case of an industrial undertaking in a designated area or 25 per cent of the cost of the fixed asset in the case of an industrial undertaking elsewhere than in a designated area.
Does that mean that the limit up to £850,000 is circumscribed by this percentage? In other words, it cannot by more than 35 percent.
Yes.
That does not seem right. They cannot give grants up to £850,000.
They can, of course. But suppose they make a grant of £850,000, that must represent, in the case of a designated area, 35 per cent of the cost of the fixed assets.
Not more than 35 per cent.
Not more than 35 per cent of the cost.
If it is more than 35 per cent they cannot give £850,000?
No. Of course the grants relate to the total amount of fixed assets invested.
I do not think that is quite clear from the Bill.
Surely the position as regards the first query raised by Senator Russell is that the word "may" there is referring only to cases where the Government decide that the IDA may give grants exceeding £850,000. The previous subsection fixes the limit which was £350,000 at £850,000. That is the limit up to which the IDA may give in a particular case without reference to the Government. The next subsection says that the Government may authorise the IDA in a particular case to exceed the limit.
