asked the Minister for Industry, Trade, Commerce and Tourism if he will give a detailed list of the number of industries which the IDA find to be ineligible for grant assistance because their products are sensitive in the view of the IDA; and if he will give a detailed breakdown of the products now on the IDA's sensitive list, giving the reasons for the sensitivity in each case.
Ceisteanna—Questions. Written Answers. - Industries Ineligible for Grants.
524.
The general grant-giving powers of the Industrial Development Authority as contained in section 33 of the Industrial Development Act, 1969, require the Authority to be satisfied than an undertaking to which it proposes to make grant assistance available meet certain criteria as follows—
(a) it would be likely to provide or maintain employment in the State,
(b) financial assistance is necessary to ensure its establishment, maintenance or development, and
(c) it is of a reasonably permanent nature and will be carried on efficiently.
Certain sensitive product categories have been identified by the IDA for the purpose of ensuring that State resources are not used to enable firms to compete against each other in the home market when sufficient production capacity for the needs of that market already exists. This is an issue which arises, for the most part, in connection with the small industry programme. The following is a list of the categories currently regarded as sensitive with the reasons attributed by the IDA for sensitivity in each case:
1. Bread Baking & Flour Confectionery: The bread baking industry has excess production capacity supplying a static market. In the flour confectionery sector, there is sufficient capacity for the production of fresh cakes.
2. Broiler Processing: This industry has sufficient production capacity to meet existing and likely future demands, and is unlikely to achieve success in export markets. Present grant policies permit grant aid only for companies producing more than one million birds per annum.
3. Concrete Products: No grant aid is provided principally because the industry is not, in general, subject to international competition. However, projects involving concrete products which are new to the market and/or replacing imports can be considered on their merits.
4. General Printing: There is excess capacity and little competition from imports.
5. Joinery: A recent IDA study confirmed that there is over-capacity in this sector.
6. Furniture: No new companies are being grant assisted for home market sales, because of over-capacity in the industry. Grant aid will be considered for existing firms where plans involve upgrading the level of design, marketing and production techniques with a view to increasing export sales and for specific evidence of import displacement.
7. Plastics: There is adequate capacity for film extrusion-conversion and pipe extrusion. Adequate capacity also exists for trade moulding in the area of medium to low quality mouldings. Grant assistance may, however, be provided towards developments aimed at servicing the high quality sector of the market.
8. Soft Drinks-Bottling: Grant assistance may be provided towards expansion proposals on the basis of a grant of £4,000 per new job created.
9. Structural Steel: Market opportunities are limited.
10. Tyre Remoulds: This industry had adequate production capacity except in the area of remoulding for heavy duty or contractors' vehicles.
Even if an undertaking or a project is in a sensitive product category its ability to demonstrate clearly the potential of its product for export or for import substitution may allow for its being grantaided. Furthermore, within a broad category regarded as sensitive a particular sub-category may be eligible for assistance.
The list of sensitive product categories as set out above is kept under continuing review and may be revised from time to time if changed market conditions so require.