Dáil Éireann Debate, Tuesday - 18 February 2014
336. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation the position regarding County Kerry's status for grant aid for foreign direct investment; and if he will make a statement on the matter. [7772/14]
View answerThe State’s industrial development agencies can provide support to both Irish and Foreign companies under a range of State Aid measures, including Research, Development and Innovation Aid, Environmental Aid, Risk Finance, and Training Aid etc.
In addition, of particular importance regarding foreign direct investment strategy are the Guidelines on Regional Aid (also known as Investment Aid), which were adopted by the European Commission on 19 June 2013.
The Regional Aid Guidelines enable the State’s industrial development agencies to pay grants, at enhanced rates, to businesses in order to support new investment and new employment in productive projects in Ireland's most disadvantaged regions. This helps the convergence of these regions with the more advantaged regions of the European Union. All such grants come from the exchequer, i.e. there is no EU or other external funding.
The guidelines for 2014 to 2020 were adopted by the Commission on 19 June 2013, and will enter into force on 1 July 2014. As a result, changes to Regional Aid grant rules will not be possible until 2021.
As things stand, Kerry qualifies for regional investment aid for SME’s under the current 2007-2013 Regional Aid Map, at a rate of 20% for medium sized companies (50 to 249 employees) and 30% for small companies (under 50 employees). Since January 2009, Kerry no longer qualifies for regional aid for investment projects by large companies.
For the 2014-2020 Irish Regional Aid Map, economic data such as unemployment and Gross Domestic Product for all counties, including Kerry, will once again be analysed afresh when deciding which counties will be designated for Regional Aid.
If Kerry, or any other Irish region, was to be designated, aid to all categories of companies would be allowed. The rates for SME’s would be the same as those that apply in 2007-2013. The rates for investment by large companies would be 10% for certain activities only.
My officials are currently compiling the most up to date economic data for each county in order to determine which counties will qualify for inclusion in a revised Regional Aid Map for Ireland. Once this data has been compiled and analysed, qualifying regions up to a maximum of 51.28% of the total population will be included in the new map. This must be agreed by Government and submitted to the European Commission by the end of June, 2014.
It is important to note that all of the Country, including those areas not entitled to Regional Aid, can qualify for other forms of State investment e.g. Research & Development Aid, SME Investment Aid, Training Aid, and Aid for Environmental protection etc.
