The IDA are the main executive agency with statutory responsibility for overseas industrial promotion. In addition to the availability of the 10 per cent rate of corporation tax for manufacturing and certain internationally traded service industries, the IDA provide a range of financial and advisory supports to both new and existing overseas industry. Financial incentives available include capital grants, employment grants, training grants and research and development grants. The IDA have a selective approach to attracting foreign investment, targeting sectors producing sophisticated and high value products which offer the best growth potential to the economy.
Payment of capital grants in the case of overseas projects is phased in relation to actual performance, usually job-related, and grant claw-back arrangements are included in the case of large upfront investment. Other grant conditions may include the provision of a parent company guarantee and a grant matching condition which requires the company to match the IDA investment with equity. Such measures are basically designed to ensure that projects represent good value to the Irish taxpayer.
A review of industrial policy is currently taking place and while this is intended to address particularly the internationally trading indigenous industrial sector, it will not be confined to this area. In advance of completion of the review, it is not possible to say whether changes in the incentives available to foreign industrialists will be necessary after January 1992.