Tuesday, 23 July 2019

Questions (1008)

Robert Troy


1008. Deputy Robert Troy asked the Minister for Business, Enterprise and Innovation further to Parliamentary Question No. 419 of 11 July 2019, if potential businesses can apply for direct grant aid under the rescue and restructuring scheme; if so, if the grant aid per undertaking over a three-year period will conform with the financial ceilings set under state aid rules as per regulation Regulation (EU) No. 1407/2013; and the loan and equity financing options under the scheme. [32880/19]

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Written answers (Question to Business)

Rescue and Restructuring Aid (including Temporary Restructuring aid) and De Minimis Aid are governed by very separate rules within the State Aid Framework. The Rescue and Restructuring scheme operates under the EU Rescue and Restructuring Guidelines and De Minims Aid operates under the rules governed by Regulation EU 1407/2013.

Under the Rescue and Restructuring Scheme, businesses may apply for restructuring aid in the form of equity support or, in the case of Temporary Restructuring aid, support in the form of a loan repayable over a period of 18 months. The maximum amount of aid that can be awarded to any one undertaking, either in the form of rescue aid or temporary restructuring aid, is €10m. The scheme respects the “one time, last time” principle meaning that no restructuring or temporary restructuring support may have been received by the applicant in the previous 10 years or for another 10 years following receipt of aid under this scheme.

Separately, the De Minimis Regulation EU 1407/2013 provides for small amounts of aid which cannot exceed a €200,000 threshold over any three fiscal years and may be granted to any enterprise, irrespective of size or location. De Minimis aid can take the form of grants or equity supports or, in accordance with Section 16 of the Regulation, in the form of loans. The entire €200,000 may be awarded in one transaction or over a number of transactions as long as the threshold is observed. The Commission considers that such small amounts of aid falls outside the category of State aid that is banned by the EC Treaty as it does not have the potential to distort competition.

Enterprises in receipt of De Minimis aid up to and including the threshold in the previous three fiscal years are not precluded from applying for Rescue and Restructuring Aid should the need arise.