I understand that the World Economic Forum report on competitiveness suggests that the rate of increase in machinery and equipment prices is somewhat higher in Ireland than in most other European countries. However, I should point out that the report does not differentiate between new and second hand equipment.
The reasons for excluding second-hand machinery and equipment generally from capital grant assistance are as follows:
—New equipment helps companies to progress to World Class Manufacturing.
—New equipment increases a company's efficiency by having state of the art technology and assists companies to gain ISO Certification.
It eliminates the risk of companies having obsolete or poor quality equipment which will inhibit their development.
It further increases the opportunities for companies based in Ireland to obtain contracts with multinational companies who may not deal with suppliers who do not have the most up to date equipment.
I understand that from time to time high quality second-hand equipment may be available and in such cases assistance could be offered by the industrial development agencies under the employment grant scheme. The agencies do not discourage the purchase of second-hand equipment by companies willing to do so.
