Dáil Éireann Debate, Thursday - 10 October 2013
11. Deputy Mary Lou McDonald asked the Minister for Jobs, Enterprise and Innovation the number of posts that were expected to be created in 2012 for which €2.8 million of employment grants were returned to the Industrial Development Agency. [42587/13]
View answerWhen approving financial assistance for a company, IDA Ireland enters into a legal and binding contract with the company involved. The contract, which is confidential between IDA Ireland and the company, includes conditions and milestones with which the company is required to comply before any financial assistance is paid. All IDA clients enter into formal Grant Agreements in full knowledge that the penalty for non-performance is a pro-rata repayment of grants.
Employment Grants for approved job creation projects are only paid following investment incurred by IDA approved clients and the creation of actual jobs. Where a shortfall in job numbers arises, IDA will review the case and seek recovery of grant where appropriate.
IDA monitors job creation in individual client companies on an on-going basis. In addition the Annual Employment Survey, which is carried out by Forfás, is utilised by IDA as a further tool of verification of job numbers in IDA sponsored companies. In addition, at the time of a grant claim, IDA also seeks formal verification of job numbers, prior to payment of the grant.
I am informed by IDA that during 2012 the Agency received employment grant refunds totalling €2.8m from 8 client companies. Approximately 30% of the amount refunded related to company closures with the loss of approximately 220 jobs in total. The balance of funds recouped related to existing IDA Ireland client companies who are still operating in Ireland, but who did not fully comply with all the terms of the grant agreements. This could be, for example, because a particular product or service that formed part of the business case for the grant has ceased production/provision for market reasons.
IDA Ireland continues to work closely with these companies in order to win new forms of business and to encourage them to transform their operations in Ireland to ensure that they remain viable, competitive and embedded in the economy.
