asked the Minister for Industry, Commerce and Energy if he will outline the changes which have taken place and which are likely to take place, in respect of designated underdeveloped areas; the areas affected; the employment prospects; the type of grants and State and generally that is available in these areas; and why it was found necessary to make such changes.
Ceisteanna—Questions. Oral Answers. - Underdeveloped Areas.
18.
During the past year there have been two changes in the delimitation of areas designated under the Industrial Development Act, 1969. In April 1978 because of the unprecedented loss of jobs as a result of the closure of the Ferenka factory, Limerick city and its surrounding areas were designated for a period of one year; and in September 1978 it was no longer necessary to continue the designation of the Ballingarry area, County Tipperary, which was originally designated for a period of one year in September 1972 following the closure of the Ballingarry coal mines.
So far as the Limerick area is concerned, continuing efforts are being made to promote new projects there and the employment prospects overall for this area are expected to improve. There have been a very significant improvement in the employment prospects of the Ballingarry area, arising from the proposed re-opening of the Ballingarry coal mines which have an employment creation potential of about 160 by the end of next year, and the construction by Bord na Mona of a briquette factory near Killenaule, which has an employment potential of over 100.
Industries in all parts of the country are eligible to benefit from export sales relief and from a very full range of other industrial incentives. However, projects locating in designated areas may receive a higher level of capital grant towards the cost of fixed assets—in the case of a new industry the upper limits are 60 per cent and 45 per cent in the designated and non-designated areas, respectively.
No further changes in the designated areas are envisaged at the present time.
Could the Minister indicate to the House which criteria are used in nominating designated areas? Is it purely an ad hoc response, or are criteria laid down about levels of unemployment over a period? Would the Minister agree, looking at the national situation, that there appears to be a continuation of the myth long after the problem in the area which gave rise to the designation?
As happened in the past few months, where I felt an area had reached a stage of development where it no longer required designation I de-designated it.
According to what criteria?
On the basis that the employment situation was back at the stage where it was before the closure which led to the original designation took place.
If the policy strictures and criteria are still ad hoc, can the Minister say whether, for example, Gorey will be designated in the same area as Limerick having regard to the situation in which 40 per cent of the labour force in Gorey will shortly be out of work?
That is a matter that one would consider.
In other words, the Minister would do that in so far as Gorey is concerned?
I am not saying what I would or would not do if and when that problem should arise.
Is not now the time to act?
No.