Dáil Éireann Debate, Thursday - 17 January 2013
107. Deputy John Deasy asked the Minister for Jobs, Enterprise and Innovation if he will increase the amount of regional investment aid for those parts of the country that are experiencing the highest levels of unemployment. [2266/13]
View answer108. Deputy John Deasy asked the Minister for Jobs, Enterprise and Innovation the stakeholders he consulted with before making a submission to the EU Commission regarding regional or investment aid. [2267/13]
View answer109. Deputy John Deasy asked the Minister for Jobs, Enterprise and Innovation the amounts of regional aid that can be applied for in the south-east region. [2268/13]
View answerI propose to take Questions Nos. 107 to 109, inclusive, together.
Regional Aid, also known as investment aid, is paid in the form of grants by the industrial development agencies to support new investment and new employment in productive projects. Such aid must be in accordance with the Regional Aid Map 2007-13 approved by the European Commission. This Map was drawn up in accordance with the Commission’s Regional Aid Guidelines 2007-2013. The eligible regions and applicable aid rates in Ireland for the 7 year period are set out in the Irish map. The Commission’s Regional Aid Guidelines afford the possibility to Member States to amend the list of regions eligible for Regional Aid or the applicable aid intensities only once during the relevant 7 year period, by way of a mid-term review. Hence, there is no scope to increase population coverage under the current RAGs.
In selecting the areas within the overall Southern and Eastern (NUTS) Level II Region (Nomenclature of Territorial Units for Statistics) that could, in addition to the BMW (Border, Midlands and West) Region, be designated for the Regional Aid Map 2007-2013, Ireland had to observe a strict EU requirement that the areas selected be relatively more in need of economic development than the better off regions of the EU. The Southern & Eastern Regional Assembly was consulted for its views. The Assembly accepted the findings of an independent report, which it commissioned from the National Institute for Spatial and Regional Analysis at NUI Maynooth. The Assembly’s proposals were included in the proposed Regional Aid Map that the European Commission approved in 2006.
The process of Member States agreeing the 2014-2021 Regional Aid Guidelines is underway and initial multilateral discussions between Member States and the Commission, which has responsibility for the Regional Aid Guidelines, have taken place. For the 2014-2021 Regional Aid Map, economic data for all counties will once again be analysed afresh. My Department is actively engaged in this process and has consulted relevant stakeholders including various Government Departments, the industrial development agencies, Údarás na Gaeltachta, Forfás, the Central Statistics Office, the Border Midland and Western Regional Assembly, the Southern and Eastern Regional Assembly, and the eight Regional Authorities.
The Commission issued a non paper setting out its initial orientations in December 2011, which was followed by a multilateral meeting in March 2012. The Commission subsequently forwarded further proposals to Member States on 14 January 2013, documenting the structure and provisions that will form the basis of the revised Guidelines. Details of these proposals can be accessed at the following weblink; http://ec.europa.eu/competition/consultations/2013_regional_aid_guidelines/index_en.html. Further discussions are due to take place on 11 and 12 of February.
The details of the support in terms of aid intensity currently available for each county are available on my Departments website, and are also listed in the chart. It is important to note that all of the Country, including those areas not entitled to Regional Aid, can qualify for other forms of aid e.g. Research, Development & Innovation Aid, SME Investment Aid, Training Aid, and Aid for Environmental protection etc.
Regional Aid Map 2007-2013 – IRELAND (as reviewed by Commission Decision N130/2010 – Official Journal c 226/5 21.8.2010)
BORDER, MIDLANDS and WEST REGION
|
- |
Large Firms |
Large Firms |
Medium Firms |
Medium Firms |
Small Firms |
Small Firms |
|
Period |
2007-2010 |
2011-2013 |
2007-2010 |
2011-‘13 |
2007-‘10 |
2011-‘13 |
|
Aid Rate (Gross Grant Equivalent) |
30% |
15% |
40% |
25% |
50% |
35% |
SOUTHERN & EASTERN REGION
|
Designated Areas |
LARGE FIRMS |
LARGE FIRMS |
MEDIUM FIRMS |
MEDIUM FIRMS |
SMALL FIRMS |
SMALL FIRMS |
|
South East |
2007-2013 |
2007-2013 |
2007-2013 |
2007-2013 |
2007-2013 |
2007-2013 |
|
sub region (Carlow, Kilkenny, Wexford, Waterford, South Tipperary) and designated islands1 |
10% |
10% |
20% |
20% |
30% |
30% |
|
- |
2007-2008 |
2009-2013 |
2007-2013 |
2007-2013 |
2007-2013 |
2007-2013 |
|
Mid West |
10% |
10% |
20% |
20% |
30% |
30% |
|
(Clare, Limerick, North Tipperary2) Kerry, Cork Urban Regeneration Area |
10% |
0% |
20%3 |
20%3 |
30%3 |
30%3 |
|
- |
- |
- |
2007-2008 |
2009-2013 |
2007-2008 |
2009-2013 |
|
Cork (apart from Urban Regeneration Area) |
10% |
0% |
20% |
0% |
30% |
0% |
1 Lower aid rates apply to Large Investment Projects (i.e. > €50 million)
Bear, Cleire, Dursey, Heir, Long, Sherkin, Whiddy
2 As a result of Commission Decision N 130/2010, large investment aid and aid for investment projects with eligible expenditure exceeding EUR 25 million is once again permitted for these three counties. Prior to the decision, such aid had only been allowed up until the end of 2008.
3 From 2009-2013 no aid may be awarded in these counties for investment projects with eligible expenditure exceeding EUR 25 million.
