John Deasy
Question:314. Deputy John Deasy asked the Minister for Jobs, Enterprise and Innovation the way the regional or investment aid thresholds for different regions were calculated for the 2007-2013 period. [2471/13]
View answerTuesday, 22 January 2013
Questions (314, 315)
John Deasy
Question:315. Deputy John Deasy asked the Minister for Jobs, Enterprise and Innovation the amendments to the regional aid map that have been made from the period 2007 to date; and the rationale behind those amendments. [2472/13]
View answerWritten answers
I propose to take Questions Nos. 314 and 315 together.
Under the terms of the 2007-2013 Regional Aid Guidelines, Ireland notified the Commission of its Regional Aid Map on 13 July 2006. The aid intensity thresholds for each category of region are predetermined in the Guidelines by the Commission. The purpose of regional aid is to support investment and job creation and encourage firms to set up new establishments in Europe's most disadvantaged regions. As a result, the thresholds reduce on a sliding scale basis, with the highest rates available to the most severely disadvantaged or geographically isolated regions of the EU.
Under the Guidelines, the Mid-West NUTS 3 sub-region lost the right to grant investment aid to large firms at the end of 2008. Following a Mid-term Review in 2010, the Commission accepted a case for the restoration of regional investment aid to the Mid-West sub region on the basis of the rapid increase in unemployment, exacerbated by the job losses in Dell and also the lower GDP per capita figures when compared to the national average and other comparable regions. This means that aid for large investment projects is again allowed for the counties in the Mid-West sub region (Clare, Limerick, North Tipperary) at an aid rate of 10%.
The details of the support in terms of aid intensity currently available for each county are available on my Department's website, and are also listed in the following tables.
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 |
MEDIUM 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 |
MEDIUM FIRMS |
SMALL FIRMS |
|||
|
South East sub region (Carlow, Kilkenny, Wexford, Waterford, South Tipperary) and designated islands1 |
2007-2013 |
2007-2013 |
2007-2013 |
|||
|
10% |
20% |
30% |
||||
|
2007-2008 |
2009-2013 |
2007-2013 |
2007-2013 |
|||
|
Mid West (Clare, Limerick, North Tipperary2) Kerry, Cork Urban Regeneration Area |
10% |
20% |
30% |
|||
|
10% |
0% |
20%3 |
30%3 |
|||
|
Cork (apart from Urban Regeneration Area) |
10% |
0% |
2007-2008 |
2009-2013 |
2007-2008 |
2009-2013 |
|
20% |
0% |
30% |
0% |
|||
Lower aid rates apply to Large Investment Projects (i.e. > €50 million)
1Bear, Cleire, Dursey, Heir, Long, Sherkin, Whiddy
2As 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.
3From 2009-2013 no aid may be awarded in these counties for investment projects with eligible expenditure exceeding €25 million.