Dáil Éireann Debate, Thursday - 12 March 2015
126. Deputy Martin Heydon asked the Minister for Jobs, Enterprise and Innovation the impact of the extension of the regional aid map to include Athy, County Kildare; if this has led to direct State aid to new or existing companies in the area to date; the efforts that have been taken to advertise this incentive for the area; and if he will make a statement on the matter. [10940/15]
View answerThe Regional Aid Guidelines enable the State to grant State Aid, 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 Union. Regional Aid is also provided under Schemes for tourism grants, marine tourism, urban and rural renewal and other tax-based development schemes. All such aid come from the exchequer, i.e. there is no EU or other external funding.
The 2014-2020 Regional Aid Guidelines entered into force on 1 July 2014. Areas accounting for 51.28% of Ireland’s population are now eligible for assistance under the Regional Aid Guidelines. This represents a substantial increase from the 25% originally proposed by the Commission, and an increase from the 50% under the 2007-2013 Map.
Athy is included in the 2014-2020 Regional Aid Map for Ireland, with the exception of the Electoral District of Ballymore Eustace (population of 1,475). Ballymore Eustace was excluded from the designated map in order to ensure Ireland adhered to its overall allocated national coverage of 51.28% of population.
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 support e.g. Research & Development Aid, SME Investment Aid, Training Aid, and Aid for Environmental protection etc.
In respect of Athy, the Deputy is correct in acknowledging an improvement in the aid rate applicable for eligible projects. This specifically relates to the aid rates for Capital Employment support under the Regional Aid Guidelines of 10%, 20% and 30% for small medium and large companies for the period 2014-2020. All projects are subjects to assessment in terms of commercial, technical and market due diligence and should represent value for money in terms of the State’s investment. Five companies in the Athy region were approved payments by Enterprise Ireland. Enterprise Ireland also organised a presentation for the Athy Chamber in September 2014 with reference to the changes in the Regional Aid Map. For reasons of confidentiality, Enterprise Ireland does not give details of individual grants approved to clients.
The Local Enterprise Offices (LEOs) in the Counties covered by the Regional Aid Programme, including Kildare, are fully apprised of the Guidelines. All LEOs provide a signposting and referral service for their clients to supports available from other State Agencies and this would encompass information on the Regional Aid Schemes operated by Agencies such as Enterprise Ireland and Údarás na Gaeltachta, etc.
In April 2014, IDA Ireland issued a press release welcoming the publication of the new Regional Aid Map and highlighting the new areas being encompassed, including Athy. Engagement with regional media followed, explaining how the scheme worked and its benefit as an added incentive. There was also engagement on the subject with a number of elected representatives in regions. It is to be expected that the change will take time to translate into direct State aid to either IDA client companies or to new companies in the new regions included. For reasons of confidentiality, IDA does not provide details of individual grants approved to companies. Grant aid has been provided to IDA client companies in County Kildare but not to date in Athy in the period since 1 July 2014.
