Tuesday, 25 June 2013

Questions (345)

Paudie Coffey

Question:

345. Deputy Paudie Coffey asked the Minister for Jobs, Enterprise and Innovation the maximum grant aid available to potential Industrial Development Agency clients for locating in each of the nine gateways identified in the national spatial strategy; if he will detail the criteria and process used in designating each gateway with different IDA grant aid; and if he will make a statement on the matter. [30740/13]

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Written answers (Question to Jobs)

Regional Aid, also known as investment aid, is paid in the form of grants by the industrial development agencies to businesses in order to support new investment and new employment in productive projects in Europe's most disadvantaged regions.

Such aid must be in accordance with the Regional Aid Map 2007-13. This Map, which was drawn up by my Department in accordance with the European Commission’s Regional Aid Guidelines 2007-2013 following extensive consultation, was approved by the European Commission which has responsibility for the Regional Aid Guidelines.

The eligible regions and applicable aid rates in Ireland for the 7 year period as set out in the Irish Map are contained in the tabular statement below. Individual counties rather than gateways were designated in the Irish Map, which is available on my Department’s website.

The Regional Aid Guidelines for 2014-2020 were adopted by the European Commission on 19 June 2013. The guidelines will enter into force on 1 July 2014. Consequently, the current guidelines, which were due to expire at the end of this year, are to be extended for six month transition period.

The Regional Aid Guidelines 2014-2020 were adopted after extensive consultations by the Commission with many stakeholders and with the European Parliament, the Committee of Regions and the European Economic and Social Committee.

In the light of these guidelines, a revised Irish Regional Aid Map will be submitted to, and approved by, the Commission before the end of June 2014. In drawing up this 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.

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 islands 1

2007-2013

10%

Mid West

(Clare, Limerick, North Tipperary 2)

2007-2013

10%

Kerry,

Cork (entire county)

2007-2008

10%

-

2009-2013

0%

1 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.

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

3. From 2009-2013 no aid may be awarded in these counties for investment projects with eligible expenditure exceeding EUR 25 million