Vol. 495 No. 7
53 Mr. Ferris asked the Tánaiste and Minister for Enterprise, Trade and Employment the current position of her review of the local employment service; the plans, if any, she has to merge the local employment scheme with the FÁS employment service; and the way in which the new merged service will be resourced for the whole country. [21154/98]
An independent evaluation of the local employment service was completed recently by the consultants Eustace Patterson. This evaluation was wide-ranging and detailed in its analysis and officials in my Department are currently reviewing the contents in consultation with the LES areas with a view to assessing how best to progress the recommendations. The evaluation report has been circulated to all LES areas and relevant partnership companies and copies are available in my Department to all interested parties.
Clearly there should be better integration between the two main arms of the employment services, the FÁS service and the LES. In this connection, the national employment action plan, adopted by the Government in April this year, outlined a major reorientation and strengthening of our employment services which would focus and integrate the roles of FÁS and the local employment service, while preserving the local dimension of each LES and ensuring that the role of partnerships in the LES remains undiminished. My Department is currently meeting with relevant interests, through the local employment service policy advisory committee to examine the options in relation to the best model which should be adopted in terms of the overall organisational framework and I hope to be in a position to take a decision on this in the not too distant future.
I can assure the Deputy that, in so far as the enhanced employment services are concerned, both FÁS and the local employment service will have sufficient financial and staffing resources available to ensure that their roles can be carried out.
54 Proinsias De Rossa asked the Tánaiste and Minister for Enterprise, Trade and Employment the implication, if any, dividing the country into two separate regions for the next round of EU Structural Funds would have on services provided by FÁS, the level of grant aid available for industrial development and so on and on any other programmes administered by or on behalf of her Department; and if she will make a statement on the matter. [21634/98]
92 Mr. Farrelly asked the Tánaiste and Minister for Enterprise, Trade and Employment the effects, if any, the securing of Objective I status for some parts of the country will have for the remainder of the country in relation to industrial grant aid; the other grant assistance, if any, which may be affected if Objective I status is secured; and if she will make a statement on the matter. [20162/98]
94 Mr. Creed asked the Tánaiste and Minister for Enterprise, Trade and Employment the consequences of regionalisation for the level of grant aid available for industrial development for the areas outside Objective 1 status. [21623/98]
105 Mr. Timmins asked the Tánaiste and Minister for Enterprise, Trade and Employment the implications, if any, for industrial grant aid if the country is regionalised for the next tranche of Structural Funds; and if she will make a statement on the matter. [21704/98]
I propose to take Questions Nos. 54, 92, 94 and 105 together.
Government support to enterprise must conform to the limits set by the EU regional aid guidelines, the latest version of which will come into effect, generally, in January, 2000.
At present the development agencies can offer assistance to enterprises of up to 57 per cent of investment costs in the non-designated areas, up to 71 per cent in the designated areas and up to 75 per cent in Gaeltacht areas. In practice, of course, the assistance offered is well below these limits.
Under the latest EU regulations, Ireland will be treated as comprising 8 Article 92(3)(c) regions (our regional authority areas) and each will have a ceiling on the aid which can be offered to enterprise. The limit for each area will depend on its GDP/unemployment rate, but may not exceed 20 per cent of investment costs, with a top-up of up to 10 per cent for SMEs. Not only is the Commission limiting aid payable across the Union to curb harmful competitive bidding between member states, but the new rules reflect Ireland's much improved economic status, i.e., we are no longer one of the poorest areas of the EU.
