Dáil Éireann Debate, Wednesday - 20 February 2013
146. Deputy Ciara Conway asked the Minister for Jobs, Enterprise and Innovation if he will seek EU approval to have the EU regional aid grant rates increased from 10% to 15% in the south east; and if he will make a statement on the matter. [9259/13]
View answerThe Deputy will be aware that 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. The aid intensity thresholds for each category of region are pre-determined in the Guidelines by the Commission. 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.
Ireland’s Border, Midlands and West region automatically qualified for designation on the basis of being the least developed region of Ireland. Thus the BMW region is currently entitled to the highest investment aid rates in Ireland of 15% for large companies, that is, those with 250 employees or more, and 25% and 35% for medium and small-sized enterprises respectively.
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 chart at the end of this answer.
The process of Member States agreeing the 2014-2021 Regional Aid Guidelines is underway and 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 such as unemployment and Gross Domestic Product for all counties will once again be analysed afresh when deciding which counties will be designated for Regional Aid.
A revised Irish Regional Aid Map will have to be submitted to and approved by the Commission by the end of this year.
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
|
Period |
2007-2010 |
2011-2013 |
|
Aid Rate (Gross Grant Equivalent) |
30% |
15% |
Medium Firms
|
Period |
2007-2010 |
2011-2013 |
|
Aid Rate (Gross Grant Equivalent) |
40% |
25% |
Small Firms
|
Period |
2007- 2010 |
2011-2013 |
|
Aid Rate (Gross Grant Equivalent) |
50% |
35% |
SOUTHERN & EASTERN REGION
LARGE FIRMS
|
Area |
Period |
Aid Rate (Gross Grant Equivalent) |
|
South East sub-Region (Carlow, Kilkenny, Wexford, Waterford, South Tipperary) and designated islands1 |
2007-2013 |
10% |
|
Mid West (Clare, Limerick, North Tipperary2 ) |
2007-2013 |
10% |
|
Kerry, Cork (entire county) |
2007-2008 |
10% |
|
2009-2013 |
0% |
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.
Medium Firms
|
Area |
Period |
Aid Rate (Gross Grant Equivalent) |
|
South East sub-Region (Carlow, Kilkenny, Wexford, Waterford, South Tipperary) and designated islands |
2007 - 2013 |
20% |
|
Mid West (Clare, Limerick, North Tipperary) |
2007 - 2013 |
20% |
|
Kerry, Cork Urban Regeneration Area |
2007 - 2013 |
20%3 |
|
Cork (apart from Urban Regeneration Area) |
2007-2008 |
20% |
|
2009-2013 |
0% |
Small Firms
|
Area |
Period |
Aid Rate (Gross Grant Equivalent) |
|
South East sub-Region (Carlow, Kilkenny, Wexford, Waterford, South Tipperary) and designated islands |
2007-2013 |
30% |
|
Mid-West (Clare, Limerick, North Tipperary) |
2007 - 2013 |
30% |
|
Kerry, Cork Urban Regeneration Area |
2007 - 2013 |
30%3 |
|
Cork (apart from Urban Regeneration Area) |
2007-2008 |
30% |
|
2009-2013 |
0% |
Lower aid rates apply to Large Investment Projects (i. e. > €50 million
3From 2009-2013 no aid may be awarded in these counties for investment projects with eligible expenditure exceeding EUR 25 million
